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Joint Board Chair & CEO MessageWe are honored to present A Community of Friends’ (ACOF) Annual Report for FY 2015-2016. For nearly 30 years, ACOF has been dedicated to ending homelessness for people with mental illness. Through our expanding portfolio and our rich services programming for tenants, including more than 600 children, we are continuing to fulfill our mission today and the years ahead.

For the completed fiscal year, our housing production was as busy as ever with the following results: we completed Cedar Springs, a supportive housing development in partnership with David and Margaret Youth & Family Services, primarily for young adults transitioning from foster care. This amazing project achieved the highest level of sustainability with a LEED Platinum rating, due in large part to many innovative features including the county’s first greywater system that supplies reclaimed water for irrigation and lavatory purposes. Additionally, we started construction on three projects in the City of Los Angeles – Silver Star Apartments, Arlington Square, and Beverly Terrace, the latter in partnership with St. Anne’s Maternity Home. These three buildings will serve some of the most vulnerable people in our community when completed - formerly homeless adults, veterans, young families, people with HIV/AIDS and transitional age youth. We also purchased two new sites for future projects – one in Huntington Park and the other in Redlands.

On our services side we continue to make remarkable progress due to our productive partnerships – both continuing and new. New partners this year include Imagine LA, USC School of Social Work, and The Way Forward. Together, we are now helping nearly 2,500 tenants.

ACOF also began its new FY16—FY18 Strategic Plan, and along with the Board and management we are implementing four strategic priorities that will strengthen the organization in the years to come. They include increasing and sustaining the supply of permanent supportive housing in a responsible manner; expanding and deepening ACOF’s quality services to tenants; ensuring the organization’s long-term sustainability by raising funds from both traditional and non-traditional means; and increasing and broadening ACOF’s visibility. These strategies will ensure ACOF remains an industry leader.

We thank you for your enduring support and we look forward to working with you in 2017.

Highlights for FY2016A Community of Friends enduring commitment to project development, asset and property management, and residential services enhances the lives of our tenants in our effort to end homelessness for people with mental illness.

• Adopted a Three-Year Strategic Plan

• Started construction on three projects (Beverly Terrace, Arlington Square, and Silver Star Apartments), totaling 137 units

• Completed Cedar Springs Apartments (pictured on cover), achieved LEED Platinum rating, highest sustainability rating

• Acquired two new sites for development - Huntington Park (Huntington Square) and Redlands (Liberty Lane)

• Awarded new funding source for the Liberty Lane project (VHHP)

• Entered into new partnership with the USC School of Social Work, Imagine LA, and The Way Forward

• Increased number of Tenant Advisory Council members from 9 to 15

• Welcomed two new Board Members (Thuong Luong and Gary Lee Moore, pictured right)

Helena L. Jubany, Board Chair

Dora Leong Gallo, CEO

Breaking Ground at the Silver Star Apartments with the support of Johanna Gullick (Union Bank), Dora Gallo (CEO, A Community of Friends), Marqueece Harris-Dawson (Council Member, Eighth District), Dr. Robin Kay (LA County Department of Mental Health), Stephen Peck (U.S. Veterans Initiative), Helana Jubany (Board Chair, A Community of Friends), and Rushmore Cervantes (Los Angeles Housing and Community Investment Department).

Housing DevelopmentNew construction, new financial partners, building rehabilitation, and expanded commitment to energy efficiency continues to be a priority for the Housing Department in FY2016.

The start of 2016 was a time for breaking ground for three projects: Arlington Square, Silver Star Apartments and Beverly Terrace. Arlington Square, 48 units, and Silver Star, 49 units, will provide housing to veterans who are homeless. Beverly Terrace, in partnership with St. Anne’s, will provide an early learning center and 40 units for young unwed mothers, who have at least one child under the age of six, and homeless families. Each project will be rich in services that will be provided on site for its tenants. Each project is designed with highly sustainable design components and is targeting LEED for Homes Platinum Certification.

Construction on Cedar Springs, which is a 36-unit residential and commercial retail space in the City of La Verne, has been completed. This is ACOF’s first partnership with David & Margaret Youth and Family Services.

This project design is among the most sustainable projects that ACOF has developed. The project includes the first greywater system in Southern California that supplies water to toilets as well

as landscaping. It is the first affordable housing project in Southern California that is carbon neutral for operational energy. Cedar Springs is an all-electric site (no natural gas, no fossil fuels), offset by nearly 100% renewable energy.

Cedar Springs Apartments is the first project that establishes ACOF’s presence in Pomona Valley. Since its development, sites have been acquired in Riverside and Redlands which will provide housing for seniors and veterans who are homeless in addition to low income families.

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Arlington Square

Beverly Terrace

Silver Star Apartments

Asset and Property ManagementFY 2016 was a busy one for ADA compliance and security upgrades for Asset and Property Management.

With a renewed focus by ACOF’s staff and its lenders, the Asset and Property Management team completed several ADA compliance projects at some of its properties during FY 2016. This included the installation of a wheelchair ramp at Figueroa Court for easy tenant entrance/ exit accessibility. Another project was at Vista Nueva Apartments where several

unit upgrades included new configuration spaces for kitchens and bathrooms.

These renovation projects were advised by CASp (Certified Access Specialist Program) inspectors who worked with the Asset and Property Management team to ensure these initiatives were in ADA compliance. The engagement with CASp inspectors included reviewing

select properties and providing recommendations.

ACOF also upgraded new security cameras at several properties to supplement security measures for the tenants.

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The following are some of the highlights of our Services Department for 2016:

• Began our new partnership with USC/MSW internship program that launched with two interns.

• Completed our second year of a three-year collaborative partnership SAMHSA grant with the CLARE Foundation, “Bridges to Recovery Hope, & Home.” By the end of 2016 we enrolled 42 individuals in the program to work on mental health and substance abuse issues utilizing evidence based practices such as Critical Time Intervention (CTI), Motivational Interviewing (MI), and Stages of Change. Out of the 42 enrolled, 40 are still housed in their ACOF unit and participating in services.

• Transitioned all Service Coordinators to Case Managers after a 10-month training program.

• Increased our Substance Abuse Recovery staff from two to three employees.

• Provided an end-of the-year holiday party for each building that consisted of a full dinner. For our family buildings, each child received a holiday present.

Residential Services More than 2,000 tenants and their families are served by our Residential Services Staff, who are dedicated to their ongoing success.

misc

fundraising

admin

in-kind

interest

loan interest

income (loss) from acquisition of partnership

foundation grants

fees

rental

government grants

62.69% Earned Income

19.04% Government Grants

6.68% Foundation Grants

8.31% Other

3.28% Rent

Revenue Sources

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Financial Summary

STATEMENT OF ACTIVITIES 2016 2015

Total Revenue $ 9,638,919 $ 9,415,305

Total Expense 8,237,455 7,970,210

Change in net assets $ 1,401,464 $ 1,445,095

STATEMENT OF FINANCIAL POSITION 2016 2015

Current assets $ 8,136,174 $ 6,547,238

Land, building and equipment net of depreciation 3,487,958 3,698,948

Other long term assets 27,353,168 26,398,126

Total assets $ 38,977,300 $ 36,644,312

Current liabilities 1,496,441 2,183,391

Long term liabilities 25,000,276 23,381,802

Total liabilities $ 26,496,717 $ 25,565,193

Unrestricted net assets $ 12,116,333 $10,765,425

Temporarily restricted net assets 194,250 213,694

Permanently restricted assets 170,000 100,000

Total net assets $ 12,480,583 $11,079,119

TOTAL LIABILITIES AND NET ASSETS $ 38,977,300 $ 36,644,312

A Community of Friends had a positive change in net assets in the amount of $1,401,464 for the fiscal year ended June 30, 2016, which represents an decrease of 3% from the prior fiscal year.

However, the prior fiscal year income included the sale of a rental property to an affiliated Limited Partnership for the purposes of rehabilitation, which did not occur in the current fiscal year.

Note: Financial data based on ACOF’s audited financial statements.

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$100,000 and AboveNeighborWorks® America Weingart Foundation

$50,000 to $99,999Enterprise Community Partners

$25,000 to $49,999Anonymous FoundationChase FoundationWells Fargo Foundation

$10,000 to $24,999Alpha Construction Company Inc.Bank of America Charitable

FoundationCapital One Services, LLCCindy and Philip FederFidelity National Title Co.Hon. Sheila KuehlJPMorgan ChaseKarsh Family FoundationPaul Hastings LLPUnion Bank

$5,000 to $9,999AMJ Construction ManagementBank of America Merrill LynchBarker Management, Inc.California Community FoundationEgan | Simon architectureElkins Kalt Weintraub Reuben

Gartside LLPEPIC | Edgewood Partners

Insurance CenterErnst & Young LLPHartford Security CompanyKennedy WilsonMitchell B. Menzer and

Wendy WolfSidley Austin LLPU.S. BankWalton Construction ServicesWells Fargo

$2,500 to $4,999Anonymous CorporationBanc of CaliforniaCiti Community CapitalDauby O’Connor & Zaleski, LLCDreyfuss ConstructionFederal Home Loan Bank of San

FranciscoGreen Dinosaur Inc.Helena JubanyHFFHon. Mark Ridley-ThomasJessica and Allen Freeman

Kimball, Tirey & St. John LLPLuigi MajorMonique LawsheS.L. Leonard & Associates, IncVasquez & Co.YM Architects

$1,000 to $2,499Brett ThompsonCentury Housing CorporationComerica BankDE ArchitectsEdward BronsonGary Lee MooreGubb & Barshay LLPICON BuildersJeffrey DomalLee MilmanMarc Binenfeld and Julie MillerMatthew RiklinMesa WestMichael LinskMnemonic ComputersMonique LawsheNational Equity Fund, Inc.Network for GoodNorma DominguezRenae S. DeMentSnyder LangstonThomas NaughtonThuong LuongTroy JonesUnited Way of Greater Los AngelesUrban ConceptsWickersham Family

Below $1,000Adalia RodriguezAmazon PartnersAmber DrainAndrew GindyAnn SewillAnne FriedrichAnne Louise OliverAnonymous Mobile DonorAshley McDufeeBen RosenBernard Altman, ArchitectBing GuerinBrenda ColemanBridget TuckerCalifornia Credit UnionCalifornia Housing Partnership

CorporationCarole SmithChris & Julie GoettChristopher ComstockClaudine R. & James T. Dixon

Clinton FoxCollaborative HouseCraig AdamsCraig Lawson & Co., LLCCraig SpencerCyndi GreeningDana P. & Enrique TrujilloDaphne EllisDavid HeatherlyDavid E. IsenbergDeborah PageDeidre StrohmDena RobertsonDennis BullockDiana E. CardenasDianne & E. Robert Roskind Donald T. BerkusEli GordonElizabeth J. GarciaElizabeth VaughnEmily FederErin WildmanF. Brian HuntFoundation for Affordable HousingFrancisco CovarrubiasFred MagenheimerFriends of Park Mesa HeightsFSY Architects, Inc.Gabrielle CuskellyGeoCon West, Inc.Greg BurnsGwyn McCollHousing Works Ida DambrauskasaJacqueline WaggonerJames J. PreisJames KimJames ZappJanet MarinaccioJeffrey C. Ong-SiongJennifer CasparJennifer ReivydasJesse AlfriendJessica GonzalezJill DominguezJill LemonsJim YacendaJo-E ImmelJohanna GullickJohn BorundaJohn GrayJohn KobaraJolene FisherJon ClarkeJulia NachmanKakarla NaveenKaren KrygierKarina Schaake

Karl SchlechtKen SofgeKindel GaganKomal BhojwaniKristyann BrodeckiKrogerKyla LeeL.A. Family Housing CorporationLance SimonLane Construction ServicesLauren Koenig-PlonskierLaurie SaffianLorene ChandlerLow Income Investment FundMarc SalletteMarian BarkerMarilyn KingMark DarringtonMark HickeyMarnie BodekMary KaiserMason & AssociatesMatthew KunzMatthew WickershamMaura Johnson McAniffMetropolitan LeasingMichael KaneMichael MyersMichelle EislerMichelle RussoMilo PeinemannMolly RysmanNancy LewisNatina UrbanoNike IrvinPAYPAL Giving FundPeter BarkerPia NavarroRachel & Benjamin Andres-TyschRachel & Shawn RabizadehReagan MaechlingReina & Jeffrey SchafferRobert BuenteRobert NietoRobin KelsoRod LaneRussell S. KennedyRuth KingScott BarshaySean and Gwen LeonardShola GiwaSimon ZiffSonia RahmStacy CodikowStephania RamirezSteven ByrnesSusan BrauneissSuzanne Fitzmorris

Tara BarauskasThe John Stewart CompanyTheresa CunninghamThomas Safran & AssociatesTim KohutTom ConnellyTom GibsonTrevor DaleyValeria ZavalaVictoria HuntVijay Sehgal

In-Kind DonationsAquarium of the PacificDavid & Margaret Youth and

Family ServicesDestination HotelsDisneyland ResortDora and Grey GalloEnterprise Community PartnersEvolution HospitalityHelp-PortraitJeffer Mangels Butler &

Mitchell LLPSan Diego ZooSeaWorld San DiegoShelter PartnershipUniversal Studios HollywoodVania Herrmann, My Boissett

CollectionWalton Construction CompanyThe Wickersham Family

Every donor matters to us. If we have mistakenly omitted you from this list, we apologize and ask you to please contact us at 213-480-0809, x262.

Thank you to all of the Foundations, Corporations and Individuals who supported ACOF’s work in FY 2016.

American Heart Association

Anaheim Supportive Housing

Catholic Charities

CLARE Foundation

David & Margaret Youth and Family Services

Gateways Hospital & Mental Health Center

Help Portrait

Heritage Clinic

Homeless Health Care Los Angeles

HOMES, Inc.

Housing Works

Imagine LA

Jovenes

Kedren Community Mental Health

Los Angeles Christian Health Centers

BOARD OF DIRECTORS (FY15-16)

Helena L. Jubany, FAIA, LEED AP (CHAIR)Corporate Director & Managing PrincipalJubany – NAC | Architecture

Sean L. Leonard (VICE CHAIR)PresidentS.L. LEONARD & Associates, Inc.

Allen Freeman (TREASURER)Sr. Manager, Transaction Advisory ServicesErnst & Young LLP

Mitchell B. Menzer (SECRETARY)Partner, Paul Hastings LLP

Marc Binenfeld BrokerMetropolitan Leasing and Management

Jill Dominguez PrincipalEssergy Consulting

Norma Dominguez Vice PresidentWells Fargo Bank

Suzanne E. FitzmorrisExecutive Director, Development and Programs USC Lusk Center for Real Estate

Philip N. Feder*PartnerPaul Hastings LLP

Elizabeth GarciaHealthcare Financing Consultant

Michael S. Linsk* Real Estate and Management Consultant

Thuong LuongChief Investment OfficerGEHR Hospitality

Gary Lee MooreCity EngineerCity of Los Angeles

Jeff Ong-Siong, CPAPartnerArmanino LLP

James Preis Executive DirectorMental Health Advocacy Services, Inc.

Bridget TuckerHousing SpecialistSCHARP

Elizabeth VaughnCommunity Volunteer

*Former Board Chair

Mental Health Advocacy Services

MJ Housing & Services

New Directions for Veterans

OPCC/LAMP

Orange County Regional Center

Pacific Clinics/Portals

PATH Ventures

Penny Lane Centers

Project Independence

San Fernando Valley Community Mental Health Center

Shelter Partnership

South Central Health and Rehabilitation Program (SCHARP)

Special Service for Groups

St. Anne’s Maternity Home

Step Up on Second

Telecare

Tri-City Mental Health

U.S. VETS

United in Harmony/Camp Harmony

University of California of Los Angeles – Community Service Commission

University of Southern California, School of Social Work

Government EntitiesLos Angeles County Department of Mental Health (LACDMH)

Orange County Healthcare Agency

Services Partners FY15–16

3701 Wilshire Boulevard, Suite 700Los Angeles, CA 90010213.480.0809www.acof.org