When ANHS started in 1981, grants and "sweat equity" from the community were its primary income sources. Twenty-one years later, ANHS has a more diversified income base that includes grants, rental properties, contributions, and earned income. The chart below shows what percent these sources represent of ANHS' total support and revenue for the fiscal year ending June 2002.

Figure 2. Total Support and Revenue Sources for Fiscal Year Ending June 2002

Grants

Grants and loans continue to play a major role as an income source for ANHS. In the fiscal year ending 2002, grants accounted for nearly 43% of all income for the organization. Grants and loans are important to ANHS because they infuse new cash flow into existing flagship programs like the Home Improvement Loan Program. Eventually, ANHS can use these funds as program income for other CDBG-eligible projects. Grants and loans also provide vital seed money for new programs and asset acquisition that later generate income on their own to the benefit of the organization.

ANHS has an outstanding grant and loan acquisition record due to its ability to develop and implement effective programs. Since 1981, nearly $6 million dollars have flowed from such programs as the Small Cities Community Development Block Grant Program, Neighborhood Reinvestment Corporation, the Rental Rehabilitation Loan Program, the Northwest Area Foundation, and the Housing Trust Fund. Future ANHS growth depends a lot on programs like these.

Figure 3. Total Grants, 1993 - 2002

Rental Properties

An important and growing source of income for ANHS comes from its rental properties. While rental income covers only rental property expenses, property management does help cover operational costs. This ensures the basic operation of the organization remains uninterrupted even during potential periods of reduced grant or project income.

ANHS did not aggressively begin acquiring rental properties until 1988 when it purchased and rehabilitated several run-down homes near its original office into what became the Sunrise Court Project. Since then, the ANHS board and staff have made significant progress in adding more properties to their inventory. Rental properties typically become part of ANHS' inventory through mortgage foreclosure or direct purchase. A Housing Assistance Program loan received by ANHS in 1994 is presently adding another 10 single-family rentals to this inventory.

Figure 4. Gross Rental Income, 1993 - 2002

ANHS-owned rentals are good for the community as well. Each rental unit meets HUD Housing Quality Standards, meaning that any renter can expect to live in safe and clean housing. Public demand for these units is high due to the generally poor condition of many rentals serving the low-income community. The Sunrise Court Project receives a project-based Section 8 subsidy from the Housing Authority of Grays Harbor. Many tenants use Section 8 certificates on other ANHS rentals.

Several ANHS-owned properties serve the community in other ways as well. The Twin Harbors Head Start Program rents one unit for its pre-school program serving the Grant Street neighborhood and the Coastal Community Action Program rents a duplex as a transitional shelter for homeless families. As of July 2002, ANHS owns 40 rental units.

Contributions

Contributions have regained an important place in ANHS' financial picture over the past 21 years, as indicated in the table on the following page. Many of the major contributions ANHS received during the last several years have come from financial institutions and insurance companies. Lenders particularly appreciate the important partnership role ANHS fulfills in helping them access low- and moderate-income borrowers. Their contributions to ANHS helps them meet their Community Reinvestment Act (CRA) requirements. ANHS anticipates continuing its fundraising campaign that targets residents, financial institutions, and local businesses.

Figure 5. Cash Contributions Received, 1993 - 2002

Earned Income

Earned income covers a wide range of revenue sources that includes: mortgage and bank interest, fee-for-service income, loan servicing fees, loan origination fees, loan application fees, and miscellaneous income.

There has been a steady upward trend in earned income for ANHS over the years despite low interest rates. ANHS can expect to see continued growth in earned income as its loan portfolio and cash reserves continue to grow. Increased fee-for-service activities could potentially contribute to this trend, too.

Figure 6. Earned Income, 1993 - 2002

A Growing Net Worth

A symbol to ANHS' success is its total net worth. Total net worth for ANHS has increased steadily over the past fifteen years to over $3.6 million. The table below demonstrates this growth trend.

Figure 7. Total Net Worth, 1993 - 2002