The Virginia United Methodist Housing Development Corporation (“VUMHDC”) is a sponsor and developer of affordable housing throughout Virginia. VUMHDC was founded in 1975 through authorization by the Virginia Annual Conference of the United Methodist Church. We have operated since that time as an independent 501 (c)(4) non-profit corporation, both as owners and partners in multi-family apartment communities for seniors and families.

Since our founding, VUMHDC has grown to where we are now owners and operators of eighteen (18) properties and partners in seventeen (17) other properties in partnership with other private market developers. Taken together, these properties offer approximately 2,100 housing units that are classified as “affordable” through various programs sponsored by HUD and VHDA. These properties are open to any and all people who qualify under the applicable affordable housing programs.

The mission of VUMHDC is to serve low and moderate income persons and families in Virginia by developing, owning, operating and sustaining quality affordable housing communities and to partner with and assist others seeking to engage in that mission.

The creation of VUMHDC was in response to a study by the Virginia United Methodist Church in the early 1970’s, which confirmed that many families and persons, including seniors, lacked viable options for quality affordable housing. This need for affordable housing has not diminished over time. Accordingly, VUMHDC remains committed to our mission of providing, sustaining and expanding quality affordable housing opportunities to all Virginians.

Q1 2020 Briefing

The period 2018 to early 2020 stretched our capacity with six transactions and three rehabs, with the transactions including working through a “Purchase Option” on one property and sale of GP assets on two properties, none of which we had done before. We also completed substantial corporate governance and financial changes.

With strong endorsement from the Board, the period of 2020-2021 will continue the transition of the corporation to a sustainable business model. High priorities will be recruitment of new Directors and/or Advisors with strong affordable housing backgrounds, preparing our eight(8) HUD financed properties for conversion to tax credit financing through VHDA, adding several employees to begin taking on the heavy lifting, and leveraging our newly strengthened balance sheet to advance a new round of property acquisitions and financing of new developments. In addition, we will begin planning a marketing strategy around our new 501.C(3) status to produce a stronger and clearer corporate identity.

Challenges:

Challenge #1 – Transitioning VUMHDC operating structure from an active President plus engaged Board, to a sustainable corporate organization managed by employees, with the Board taking on an advisory role.  Doing this within the next 3-5 years since three of the four primary active players are currently 66 years old.

Challenge #2 – Asset Management – For 42 of our 45 years as a corporation we failed to see that our ownership role included effective asset management, nor did we have any understanding of what that would look like.  So how do we move from our current status to become great asset managers?

Challenge #3 – Because none of our current active participants have long-term experience in affordable housing, we often feel like we are stuck in a rut of “we don’t know what we don’t know”. What are some new approaches and trends in affordable housing planning and design?

Challenge #4 – We have operated as a 501.C(4) since inception. We expect to bring a new related entity on board in 2020 that has a 501.C(3) designation, enabling us for the first time to receive contributions, grants, property, etc and extend a charitable deduction to the contributor.  With no experience in this area, how can we best use that 501.C(3) status to enhance our financial condition?

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You are an Strategic Planner/Advisor for The Virginia United Methodist Housing Development Corporation (“VUMHDC”).  After reading their 1^st Quarter Briefing, Advise them on how they should proceed with the 10 questions listed:

 

1. When a 45-year old corporation re-invents itself, how should we best reconcile the need to behave like a start-up venture, while respecting the legacy that we are building on?

 

2. There will be a process (with some trepidation) of handing over the “keys to the kingdom” to new employees and advisors. What likely stumbling blocks, pitfalls, successes and milestones should we expect to encounter?

 

3. What are potential strategies for maintaining our faith-based mission of expanding supply of affordable housing in balance with aspiring to excellence in our business fundamentals?

 

4. What qualities, approaches or outcomes represent best-in-class asset management practices for affordable housing?

 

5. What types of new project models are reaching populations in new ways?

 

6. Are non-profits having success in developing blended projects (part affordable – part market rate) that do not conflict with non-profit status overall? What are potential pitfalls of such blended projects?

 

7. What new approaches to financing traditional affordable projects are emerging?

 

8. How might we use our UMC affiliation to generate interest?

 

9. What would be some likely fundraising approaches?

 

10. What potential pitfalls are out there as we balance reaching out using our UMC affiliation, yet appeal to the broader population that may see that affiliation as a down side?Bottom of Form