NEXT STEP NETWORK 2015 ANNUAL REPORT

PRESIDENT & BOARD CHAIR MESSAGE

With 2015, we celebrate serving more families than ever. To date, we have impacted over 1,300 households with new homes and preserved communities through our nonprofit members and industry programs.

This has been a year of new strategic direction and growth in membership, training and production. Our focus included training and technical assistance delivered to our network and SmartMH partners, outreach to new partners, and building internal capacity.

In 2015, membership in the Next Step Network grew by 50% to include nonprofit affordable housing providers serving a range of rural, suburban and urban markets. We delivered 120 new ENERGY STAR homes, an 84% increase from the prior year. Members preserved affordable homes, with 1,037 homeowners under nonprofit community ownership and management, providing secure land tenure and enhanced resident services.

Next Step’s efforts to raise awareness and provide training on why manufactured housing is a viable affordable housing solution is paying dividends, with more nonprofits and industry partners actively pursuing the strategy. Last year, our members provided homebuyer education to 7,000 homebuyers and made 72 manufactured home loans.

In 2016, Next Step will harness this momentum to keep delivering on its mission of putting sustainable homeownership within reach of everyone, while transforming the manufactured industry through consumer education, affordability and energy efficiency.

We expect membership growth, particularly in the Southeast, and as we deliver more tools and training support, we expect higher production. Our pipeline is strong, as many members are bringing new projects online. We will also convene new partners in this field who believe that manufactured housing is a sound, viable option for affordable housing.

This year, we will also focus on piloting manufactured housing homebuyer education with eHome America. Prepared and supported homebuyers are an essential component of the Next Step System, so we want to ensure buyers have the information to make informed decisions on better homes, better loans and better strategies for success. Our membership is uniquely positioned to prepare homebuyers who otherwise might not have the opportunity to achieve the American Dream of homeownership.

We invite you to join us in making this dream come true for more Americans in a sound, sustainable and affordable way by making a donation to Next Step online at www.nextstepus.org/donations.

Stacey Epperson, CEO of Next Step Network

Stacey Epperson, President & Founder of Next Step Network

Kathryn Gwatkin Goulding, Next Step Network Board Chairperson

Kathryn Gwatkin Goulding, Next Step Network Board Chairperson

Click to see our Impact

IMPACT TO DATE

29

States and the District of Columbia

network_members
47

Members

factory
6

Manufacturers

house
455

ENERGY STAR Factory-Built Homes Ordered

jobs_created
455

Jobs Created

light-bulb
$136K

Annual Utility Costs Savings

forest
841

Tons of Greenhouse Gas Emissions Reduced

community
1037

Affordable Homes Preserved in Manufactured Housing Communities

training
529

Organizations Trained on Manufactured Housing Done Right®

IMPACT IN 2015

house
120

new ENERGY STAR factory-built homes ordered through Next Step programs, an 84% increase from 2014

line-graph
50%

growth in membership in the Next Step Network, with 23 new members joining in 2015

mortarboard
>7,000

homebuyers received education and counseling through Network Members

$88K

in rebates provided to Network Members through Revenue Sharing model

SMARTMH

Launched a cross-sector initiative aimed at transforming the Kentucky marketplace by increasing ENERGY STAR home production from 1% to 50% in two years. Eight independent retail stores, 2 nonprofit retailers and 5 lending partners have joined. We have begun exploring the feasability of replicating in additional markets. www.smartmh.org

handshakeRETAIL DIRECT

Launched an alternative model where a Network Member partners with a Retailer to prepare customers who order homes through the Retailer, while the Member acts as the customer’s trusted advisor.

NEXT COMMUNITIES

Piloted an initiative to preserve manufactured housing communities through nonprofit ownership, ensuring secure land tenure, improved infrastructure, enhanced resident services, and superior management and maintenance, all while maintaining affordability.

WHYMH

Launched a suite of marketing materials aimed at assisting organizations in educating consumers on the many benefits of purchasing a factory-built home. They can be viewed at: www.whymh.org

Click to see our Family Story

FAMILY STORY: LEE & LUCILLE ALLEN

When you walk through Lee and Lucille Allen’s front door, it feels like home.

Family photos stand on every shelf, a motif of red apples brightens every corner of the kitchen and a handmade quilt is draped over a chair.

Lee is a bluegrass musician who played with Ralph Stanley and The Clinch Mountain Boys, a retired police officer and a natural storyteller. Lucille is a hairdresser at a local funeral home, a volunteer at the nursing home and an avid quilter.

Lee and Lucille are also the very first Next Step homeowners. Longtime residents of Campton, Kentucky, they bought a new ENERGY STAR manufactured home from Frontier Housing in 2005. At the time, Next Step was still a concept that Frontier was testing regionally. As they began to see success in delivering quality factory-built housing, they established Next Step as a subsidiary to scale the program nationally. Homeowners like Lee and Lucille laid the foundation upon which the national program would be built.

Ten years later, Lee and Lucille know they made the right choice.

They recall previous homes that had such little insulation that you could see waves in the linoleum floor when the wind blew hard. In the winter, they would prop propane heaters on the walls to heat just one room.

“Frontier Housing just about saved our lives,” said Lucille. “I feel safer in this home. We’ve been here 10 years and we’ve had wind, hail, everything. And not one time have we felt this house shake.”

Their new home was built to specifications that exceeded ENERGY STAR standards. Extra insulation and energy efficient windows and appliances have increased the comfort and safety of their home while significantly cutting down on their utility costs.

“Compared to where we were, there is no comparison,” said Lee. “It’s been 10 years of good memories.”

Their home sits on a quiet street a few miles from the Bert T. Combs Mountain Parkway. Their back yard slopes down to the edge of thick woods. Lucille picked out the color of the shutters, Kentucky Blue, for her basketball team, the U.K. Wildcats, which pops against the white siding. Lee and Lucille remember their excitement as they walked into their new home for the first time.

“It was like walking into heaven, I guess,” said Lucille. “I just couldn’t stay away from here when they were putting this together.”

“It was the grandest thing, it was like Santa Claus,” added Lee. “I’ve never been as happy in my life as I am now.”

As for what’s next, Lee and Lucille plan to stay in their home, hosting family and friends until they leave for “the chili parlor in the sky” as Lee puts it.

“I’d recommend a home like this to anybody. It’s perfect to me,” said Lucille.

Click to see our Network Member Story

MEMBER STORY: COMMUNITY VENTURES

Community Ventures is a NeighborWorks Organization based in Lexington, Kentucky with the mission to strengthen communities by helping people achieve their dreams of greater economic opportunity. They joined the Next Step Network in 2012 and have delivered 10 affordable, ENERGY STAR factory-built homes across Kentucky since joining.

Last year, an opportunity appeared for Community Ventures to collaborate with SSK Communities, a for-profit manufactured home community in Kentucky. The owner had some vacant lots and wanted to upgrade a few of his parks. The timing was perfect given that Next Step was about to roll out its new Retail Direct Program, and Myron Agnew, Director of Property Management at Community Ventures, was eager to jump on board after hearing about how the program works.

Community Ventures partnered with Clayton Homes of Georgetown, a Next Step vetted retailer, to order nine ENERGY STAR manufactured homes. After being built, these homes were installed in four SSK manufactured housing communities across Kentucky.

Throughout the project, Next Step worked with Community Ventures and Clayton Homes of Georgetown to price the homes and develop a plan for turn-key completion. When the costs came in higher than what Community Ventures’ customers could budget, Next Step worked with the retail center and its vendors to trim some off of the completion costs.

Ultimately, this program allowed Community Ventures to minimize their construction oversight and focus on what they do best: preparing and supporting homeownership-ready buyers.

“This has been a great learning experience for us, and Next Step has allowed our organization to receive an income of more than $4,000 per home to support our mission through the revenue sharing,” said Agnew. “We have sold four of the nine homes already and have several other prospects for the remaining units – and we are ready to get going on our next home orders.”

“Through our partnership with Next Step, Better Homes AHEAD has joined in the mission of ‘transforming the manufactured housing industry, one home at a time.’ Firsts this year include the delivery of new Next Step Energy Star Manufactured Homes in both Vermont and New Hampshire, a pre-1976 mobile home replacement, and our first home sited in a Resident Owned Community (ROC). The beautiful, high quality Next Step homes have exceeded our homebuyers’ expectations in quality and value.”
portrait, primaveria foundation
“Our membership in the Next Step Network has had a tremendous impact on Primavera’s capacity to develop high-quality, affordable, accessible, sustainable homes for hard working families in our community. Next Step has provided us with top-notch technical assistance, training and brokering with the factory-built industry while also responding to the needs and assets of our regional market and local neighborhoods. Our partnership with Next Step has enabled Primavera to make a difference in the lives of families while adding value to neighborhoods.”
“Developing with manufactured housing is hard. Replacement of manufactured housing is even harder. Without the help of the Next Step Network, the nonprofit housing industry will never come to scale. Next Step shows us the way to do it right and saves so many hours in program development and learning the business. When it comes to manufactured housing…Next Step Matters!”
“Previously AHA had taken up to 120 days to get certificate of occupancy for new homes delivered to Pine Tree. That timeline was unacceptable with so many people residing in motels or with family members…With Next Step’s input, we were able to get the CO for the first two pilot homes in less than 35 days.”
“CRHDC’s movement into factory-built homes required a support group with the expertise and knowledge to assist with the intricacies of this product. Next Step has been intimately involved in guiding us through each step of the process and they are phenomenal. Thank you for introducing CRHDC to an affordable product that we can now offer to our clients.”
Click to see our 2015 Financials

2015 FINANCIALS

REVENUE SOURCES

ORGANIZATIONAL EFFICIENCY

SUMMARY OF OPERATIONS

SOURCE 2015
Contributions and Grants $ 1,208,129
Manufacturer Commissions 106,356
Other Revenue 15,355
TOTAL: 1,329,840
SOURCE 2015
Salaries and Wages $ 436,130
Payroll Taxes 35,107
Employee Benefits 34,979
Professional Fees 108,403
Travel 63,091
Benefits Paid to Members 39,795
Technology 11,168
Rent 9,600
Advertising and Public Relations 8,278
Miscellaneous 8,159
Telephone and Internet 6,021
Depreciation 4,699
Insurance 4,412
Dues and Subscriptions 2,740
Utilities 2,439
Meetings and Conferences 2,031
Office Supplies 1,430
Interest 1,312
Postage 750
TOTAL: 780,544
SOURCE 2015
Unrestricted $ (37,103)
Temporarily Restricted 909,993
TOTAL: 872,830

SUMMARY OF FINANCIAL POSITION

SOURCE 2015
Cash $ 575,007
Accounts Receivable 72,701
Grants Receivable 365,000
Prepaid Expenses 4,869
Furniture and Equipment 27,101
Less Accumulated Depreciation (15,443)
TOTAL: 1,029,235
SOURCE 2015
Line of Credit $ 60,000
Accounts Payable 49,840
Accrued Expenses 25,565
TOTAL: 135,405
Complete financial statements are available upon request. Please fill out the short form below to request complete statements.

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Click to see our Supporters & Partners

SUPPORTERS & PARTNERS

BOARD OF DIRECTORS

Kathryn Gwatkin Goulding, Chairperson
Douglas K. Smith, Vice-Chairperson
John Gillespie, Treasurer
Emanuel Levy, Secretary
David Dangler
Sheila Rice
Frank Olson
Jeff Stern
Damon Allen
George McCarthy
Robin Roy
Kimberly Vermeer

STAFF

Stacey Epperson, President & Founder
Chris Nicely, CEO
Billie Wells, Controller
Amy Barnard, Factory Direct Program Manager
Dave Betler, Retail Direct Program & Membership Manager
Megan Sherehiy, Communications Manager
Cindy George, Executive Assistant
Tyler Mullins, AmeriCorps VISTA

FUNDERS & SUPPORTERS

Ford Foundation
NeighborWorks America
Ashoka
PNC Foundation
US Bancorp Foundation
Sam Swope Family Foundation
Clayton Homes
Rexel Foundation
Anonymous Donors

NETWORK MEMBERS

Affordable Homes of South Texas
Affordable Housing Alliance
Alamo Community Group
Affordable Housing Resources
Augusta Communities
BCL of Texas
Better Homes AHEAD
Builders of Hope
CARE 66
Chicanos Por La Causa
COAP
Community Action Partnership of North Alabama
Community Asset Preservation Corporation
Community Frameworks
Community Housing Partners
Community Resources & Housing Development Corporation
Community Ventures
CommunityWorks in West Virginia
Couleecap
Eastern Eight Community Development Corporation
Frontier Housing
Habitat for Humanity of Greater Los Angeles
Hale Empowerment and Revitalization Organization
HomeOwnership Center
HOPE
Housing Assistance Program of Essex County
Long Island Housing Partnership
Mammoth Lakes Housing
Mercy Housing and Human Development
Mi Casa
Mountain Housing Opportunities
Native Community Homes
Neighborhood Housing Services of the Inland Empire
Neighborhood Housing Services Oklahoma City
Neighborhood Partnership Housing Services
NeighborWorks® Columbus
NeighborWorks® Montana
NeighborWorks® Waco
North East Community Action Corporation
Nuestra Comunidad Development Corporation
Peoples’ Self-Help Housing
Primavera Foundation
RUPCO
Rural Communities Housing Development Corporation
Self-Help Enterprises
Tierra del Sol Housing Corporation
Wyoming Community Development Authority

CORPORATE PARTNERS

Clayton Homes
Champion Homes
Cavco Industries
KIT HomeBuilders West
Rexel
Deer Valley Homebuilders
hybridCore Homes

INDIVIDUAL DONORS

Douglas & Jane Smith
Dale & Ruth Ashby
Kathryn Gwatkin Goulding
Emanuel Levy
Chris Nicely
Lesley Tannahill
Dorcas Wells Rodi-Shryock
Stacey Epperson
Jeffrey Stern
Megan Neff
Lois Starkey
Kristi King
David Dangler
Sheila Rice
Alice Antonelli
Lynn Luallen
Davidson Gwatkin
Darrell Overstreet
Frank Olson
Paul Kealey
Cindy George
David Betler
Amy Barnard
Forrest Barnes
Jason Adams

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