1. HOUSING KITSAP
ANNUAL REPORT 2015
A Message from Housing Kitsap Board Chair,
Val Tollefson
2015 was an extraordinary and exciting year for
Housing Kitsap. It was filled with change
including the first full year with our new Executive
Director, many other staff changes including
hiring a new CFO, the adoption of a new strategic
plan and a renewed focus on growing our
portfolio of affordable housing opportunities
throughout the County. Kitsap County is experiencing unprecedented
demands for housing. On Bainbridge Island, as many as 40% of the
residents, whether renter or homeowner, are housing burdened. In
Poulsbo, a recent survey of available apartment units showed only one
unit vacant and for rent. In Port Orchard, rents are up and vacancies
are down. Of particular concern is the risk of over 500 currently
affordable housing units converting to market rate housing. It has been
gratifying to see how Kitsap County’s local governments have been
responding to these issues in their respective comprehensive planning
efforts, and we can all take pride in how incredibly responsive our public
and non-profit service providers have been. My fellow commissioners
and I are looking forward to working with HK’s dedicated staff and all our
partners to address the need for additional housing
opportunities in the coming year.
HOUSING KITSAP’S
BOARD OF COMMISSIONERS
Val Tollefson, Board Chair and
Councilmember, City of
Bainbridge Island
Ed Wolfe, Board Vice Chair and
Kitsap County Commissioner,
District 3
Becky Erickson, City of Poulsbo
Mayor
Charlotte Garrido, Kitsap
County Commissioner, District 2
Danielle Murphy, Resident
Commissioner
Robert Gelder, Kitsap County
Commissioner, District 1
Rob Putaansuu, City of Port
Orchard Mayor
CONDENSED STATEMENTS OF NET POSITION
June 30, 2015 and December 31, 2014
Housing Kitsap
June 30, 2015
Component Units
December 31, 2014 Total
Assets
Current and Other Assets $ 51,474,747 $ 3,170,654 $ 54,645,401
Capital Assets 26,950,761 29,877,167 56,827,928
Total Assets 78,425,508 33,047,821 111,473,329
Deferred Outflows of Resources 1,030,614 - 1,030,614
Liabilities
Current Liabilities 5,986,925 1,104,277 7,091,202
Noncurrent Liabilities 60,272,726 29,325,871 89,598,597
Total Liabilities 66,259,651 30,430,148 96,689,799
Deferred Inflows of Resources 920,000 - 920,000
Net Position
Net Investment in Capital Assets 10,107,655 5,215,214 15,322,869
Restricted 8,898,069 2,193,139 11,091,208
Unrestricted (6,729,252) (4,790,680) (11,519,932)
Total Net Position $ 12,276,472 $ 2,617,673 $ 14,894,145
CONDENSED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
For the Years Ended June 30, 2015 and December 31, 2014
Housing Kitsap
June 30, 2015
Component Units
December 31, 2014 Total
Revenues
Operating Revenue
Rental Income $ 1,721,976 $ 2,081,469 $ 3,803,445
Operating Grants and Subsidies 2,651,318 1,791,520 4,442,838
HAP Subsidies 2,086,733 - 2,086,733
Other Income 2,782,482 62,704 2,845,186
Non-Operating Revenue
Investment Income 3,005,091 60,437 3,065,528
Gain on Early Extinguishment of Debt 1,129,572 - 1,129,572
Gain (Loss) on Sale of Assets 773,778 - 773,778
Total Revenues 14,150,950 3,996,130 18,147,080
Expenses
Operating Expenses
Administrative Salaries & Benefits 2,679,785 357,654 3,037,439
Repairs and Maintenance 1,784,527 710,361 2,494,888
Grants Made 401,713 - 401,713
Housing Assistance Payments 2,221,939 350 2,222,289
Depreciation and Amortization 848,191 852,069 1,700,260
Other Operating Expenses 1,263,643 1,230,396 2,494,039
Non-Operating Expenses
Interest Expense and Fiscal Charges 1,671,850 1,333,185 3,005,035
Total Expenses 10,871,648 4,484,015 15,355,663
Excess (Deficiency) of Revenues over Expenses 3,279,302 (487,885) 2,791,417
Capital Grants and Contributions Received 731,845 - 731,845
Distributions Made (161,006) (161,006)
Change in Net Position 4,011,147 (648,891) 3,362,256
Net Position, Beginning of Year (Restated) 10,748,347 3,266,564 14,014,911
-
Cumulative Effect on Change in Accounting Principle (2,483,022) - (2,483,022)
Net Position, End of Year $ 12,276,472 $ 2,617,673 $ 14,894,145
Housing Kitsap manages, preserves and builds housing serving individuals,
families and communities throughout Kitsap County.
We focus on (1) meeting all of our regulatory compliance and debt
obligations, (2) rebuilding capacity, both internally and externally, to further
our mission and (3) plan for the future.
The Housing Kitsap is a public body, organized under the Housing Authorities
Law of the State of Washington (RCW 35.82.300). The Authority created in
1982, became the first joint city-county housing authority in the state.
ABOUT HOUSING KITSAP
Val Tollefson

2. FY 2015 Source of Funds = $14,882,795
A Message from Housing Kitsap’s Executive Director Stuart Grogan
Housing Kitsap is stronger and better able to address its mission than it has been for awhile and the future
looks incredibly exciting. A lot of 2015 was learning, rebuilding and growing together as a team. That is
most clearly expressed in our adopted Strategic Plan. The plan evolved from discussions with the Board
and staff and will guide our activities for the next five years. Housing Kitsap’s work will focus on five goals:
improving our operations to reduce costs, expanding our portfolio, advocating for housing options for low
and moderate income households, investing in our organization, and expanding our resident services
program. Ambitious, you say? When homelessness issues in Kitsap County are critical, federal support and resources
uncertain and declining and the economic pressures on working and low and moderate income households greater than
ever, I think we have to be. Housing Kitsap’s plan shows how we will contribute to that community effort through new
projects and stronger programs. I want to acknowledge the great and thoughtful work of the Board and the
untiring commitment of the staff to our residents and the County!
Housing Kitsap received the “A Helping Hand in Rural America” award. This award selection
was made in partnership with the Rural Community Assistance Corporation (RCAC) and the
United States Department of Agriculture (USDA) at the National Self-Help Housing
Conference in San Antonio, Texas.
“Housing Kitsap is a leader of the Section 523 Grantees in Washington State, building more
homes per year than any other Self-Help group.” confirms Andria Hively on behalf of USDA.
(Pictured right: HK Staff accepting the award)
Working Together to Improve Accommodations
A generous grant funded by Puget Sound Energy’s (PSE) low-income
weatherization program in the amount of $219, 008 was awarded to
Housing Kitsap this year. Used to acquire and install 48 energy-efficient
ductless heat pumps for the Nollwood public housing units in West
Bremerton, the project benefits our tenants in a cost savings of about
27% of monthly heating expenses and, most importantly, healthier air
quality.
Nollwood resident Natalie Nelson boasts, “The heat pumps were a very
nice surprise this summer. Now, I do not want to leave my house [in the
hot summer]. I am very happy to have this in my home and it is surpris-
ingly easy to operate.”
This partnership with PSE and Kitsap Community Resources' (KCR)
weatherization program greatly improved 48 homes with this project.
Housing Stabilization Program
Housing Kitsap’s Housing Stabilization Program (HSP) offers rental assistance and
supportive services to income-qualified households who are homeless or at risk of
homelessness. With the funds granted by the Community Development Block Grant
(CDBG) program, the HSP serves an unique population of households who have no
other resource for this particular need. Housing Kitsap is proud to be the organization
Kitsap County residents in need can turn to for this irreplaceable resource as we are
currently the only entity who offers this solution for households at or below 50% of the
area median income.
For participants like graduate Nicole K., the HSP helped in establishing stability for her and her daughter and even went the
extra mile in turning her small business dream into a reality. With the financial education and guidance Housing Kitsap
make available, Nicole is now thriving as an entrepreneur of a woman-owned cleaning business called, OCD House
Cleaning Services. Nicole laughs as she tells us the name, “Accurately reflects her work standard.”
The purpose of this exceptional program is to reduce and prevent homelessness by guiding participating households to self-
sufficiency and housing stability. We accomplish this in a variety of ways including rental subsidies, partnerships with local
nonprofits such as the Kitsap County Housing Solutions Center and Kitsap Community Resources, for referrals and service
providers and assigning a dedicated staff member to each household for consistency.
Public Housing Beautification Projects an Annual Tradition
The year 2015 marks the beginning of a special new tradition for Housing
Kitsap’s Real Estate Management and Housing Programs (REMHP). Staff
found a way to go the extra mile for tenants of Housing Kitsap’s rental
properties and have fun doing it: Beautification Days. Once a month in the
summer, a day is dedicated to improving a rental property. May it be
landscaping, gardening, painting or something else, participants from all
over gain a joyful pride in their work and in their community.
The REMHP and Maintenance staff spearhead this effort, motivating all
Housing Kitsap staff, residents, friends, family and community members to
join in the excitement. It is no doubt hard work, but certainly worth the effort. With the help and encouragement of our
community members, Housing Kitsap now not only manages, preserves and builds safe, affordable housing. We build and
maintain safe, affordable homes.
“There is a difference between having a place to live and having a home; homes are cultivated through positive relationships
and working together in a partnership with our residents to create a unique community at each property.” says Holly
Paterson, Director of REMHP at Housing Kitsap, “Working with residents to beautify our properties not only shows how
invested Housing Kitsap staff are in our mission, but instills a sense of community pride in each one of us whether staff,
resident or volunteer.”
The overwhelming positive response Housing Kitsap received from residents and surrounding neighbors solidifies that these
events truly make a positive impact in each community.
After the 2015 beautification event successes, it was determined Housing Kitsap will make these local events an annual
tradition. We look forward to many more years of working with our residents and community. We hope to find more unique
ways to ensure each of our properties is a great place to call home.
Conifer Woods, an apartment complex built in Port Orchard in 1992, has been undergoing
improvements over the last few years with Housing Kitsap. A major undertaking was completed
this year through a substantial grant award from the Kitsap County Community Development
Block Grant (CDBG) program. With this funding, Housing Kitsap fully replaced the roofs on
Conifer Woods for the 72-units of households who reside there. With a grand total of about
$186,000, this investment in our community is immensely appreciated and noteworthy.
(Pictured left: Conifer Woods Apartments)
Pictured above: Community Event Participants
Pictured above:
Beautification tradition
participants
Stuart Grogan