FRIENDS NON-PROFIT HOUSING CORPORATION
Report to Bethesda Friends Meeting--November 7, 2010
FG is a stable community with a relatively low turnover. Historically, a few tenants move out each year to newly purchased houses or condos. From time to time there are evictions, sometimes because of housekeeping standards but at times due to drug possession or sales by a member of the household. In a recent Montgomery County Human Rights Survey, FG reported, using County categories, that of the 'primary leaseholders,' 34 were Black, 33 Spanish/Latino, 2 white, and 16 'Other' ethnicity.
In October, 2009, rents were increased by 3.5%; no increase is included in the FY2011 budget for the year that began July 1, 2010. Currently, the rent for a two-bedroom apartment is $575 per month; for a three-bedroom $620, and $696 for four bedrooms. These rates, far below the competitive market, are possible because they are set to cover the current costs of the complex without profit and to service the mortgage for construction nearly 40 years ago which cost much less than todays' prices.
The financial basis for FG is sound. Maintenance is up to date, and there are adequate reserves for future maintenance needs. The annual inspection by the county in the spring of 2010 gave a very good rating. The audit report for the year ending June 30, 2010, shows a cash surplus of $12,547 on revenue of $809,681; there were no qualifications or negative 'findings'. The construction mortgage will be paid in full in April, 2012.
With the discharge of the mortgage in April of 2012, the Board can choose to free the project from HUD management. The strategic issue is whether to continue to serve approximately the present number of residents at the lowest possible rents, or to serve more people with somewhat higher rents, probably on a sliding scale. FG does not have apartment sizes for small households. The Board has been seeking to purchase the land behind FG for expansion with one bedroom units and perhaps studio apartments.
Current directors of FNPH are Jim Breiling and Barbara Galloway from Sandy Spring FM; Lewis Smith and Willy Wilson from FMW; Ralph Hofmeister and Richard Mounts from Bethesda FM; and Robin McGrew, an architect without a Friends meeting affiliation. Volunteers and suggestions are welcome; meetings do not directly name members of the board.
For years, the Board has prepared Christmas food bags for distribution to all FG residents and staff. There has been support from area Friends Meetings, particularly from Bethesda FM, both for purchasing the food and for assembling and delivering the bags. In recent years, the budget for food has been about $1,200. The project has been well received by residents; people have related fond memories from years ago. Thank you, Bethesda Friends, for your past support. We hope that you can help us again this year.
