Last year was like no other at NHS Phoenix. From mortgages

originated and closed to the number of homes rehabbed – from

foreclosure ‘saves’ to homeowners created – our outputs far

exceeded, not only our goals, but what we thought was our

capacity. Our production numbers were ‘off the charts’ thanks not

only to the tenacity and diligence of our staff, but to the generosity

of our partners who made houses available and mortgages and

down payment assistance accessible to our low-to-moderate

income clients.

For NHS Phoenix, our 2012 stats tell a story of exceeding

expectations through tireless effort, trusted partnerships and

dedicated staff. But, for our clients, 2012 tells a much richer

narrative:

Based on all our hard work, our OUTPUTS are certainly gratifying.

It’s our client’s stories, however, the IMPACTS of our hard work,

which make it all worthwhile!

Patricia Garcia Duarte

President & CEO

“I want to take a moment to thank NHS Phoenix for making my

dream come true. I moved into my new home on June 22 and I am

proud and privileged to be a first time homeowner. I think this

program is amazing and all your staff were very courteous and

professional during the whole transaction,” exclaims Gloria R.

“I’m so happy that we now have a chance to improve our kids’ lives.

We won’t be throwing money away anymore; we have our own

house to do what we want,” boasts Rohollah and Veronica T.

“Thank you for all the hard work I know you did to get us into our

home! This is truly a dream, a fantasy, a prayer answered for us. We

thank you so very much,” appreciatively reports Gilbert & Melissa B.

MISSION: Neighborhood Housing Services of Phoenix is

dedicated to the revitalization of Phoenix neighborhoods by

providing a full range of programs and services that encourage,

create and support homeownership.

“We help hard-working families realize the dream of financially-

stable homeownership.”

CONSOLIDATED STATEMENT OF ACTIVITIES (AUDITED)12/31/11 12/31/12

Public Support & RevenueGovernment grants $2,070,797 $512,224Nongovernment grants & contributions 815,032 3,669,776Contributions in-kind 21,939 58,189Fee income 1,660,465 2,543,916Interest income on mortgages 180,864 114,372Investment income 1,089 1,253Bad debt recoveries - 55,027

Total public support & revenue 4,750,186 6,954,757

Operating expensesProgram services

Homebuyer education 1,258,271 1,460,589Loan services 696,726 3,752,036Affordable housing development 816,061 358,545Agency funds 97,708 109,953Phoenix Housing Partnership 191,579 7,625La Cuidad, LLC 194,499 192,222Sub-total program services 3,254,844 5,880,970

Supporting servicesManagement & general 541,271 771,888Community outreach 42,961 66,906Resource development 95,781 91,904Total supporting services 680,013 930,698

Total operating expenses 3,934,857 6,811,668Net operating income (Loss) $815,329 $143,089

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (AUDITED)Assets Current assets

Cash and cash equivalents $3,368,876 $3,481,116Restricted cash 949,942 868,631Government receivables 532,749 562,407Promised to give 0 0Other receivables 146,344 169,287Property held for re-sale 2,905,630 5,316,227Prepaid expenses and deposits 47,515 49,845Mortgage loans receivable, current 43,553 47,164

Total current assets 7,994,609 10,494,677

Property and equipment, net 2,990,785 2,813,669

Other assetsMortgage loan receivable, net 2,805,121 2,761,048Escrow reserve deposit 251,865 197,415Total other assets 3,056,986 2,958,463

Total assets 14,042,380 16,266,809

Liabilities and Net AssetsCurrent liabilitiesAccounts payable and accued expenses 301,512 292,410Accued compensated absences 54,005 78,160Due to City of Phoenix 1,688,613 4,125,981Advances on contracts 8,913 4,941Loan impounds and client deposits 912,491 1,027,131Deferred revenue 33,467 538,457Notes payable, current 1,062,870 275,000Total current liabilities 4,061,871 6,342,080

Notes payable, net of current 1,605,779 1,406,910Total liabilities 5,667,650 7,748,990Total net assets 8,374,730 8,517,819Total liabilities and net assets $14,042,380 $16,266,809

SHATTERING RECORDS2012 ANNUAL REPORT

1405 E. McDowell Road, Suite 100Phoenix, Arizona 85006Phone: (602) 258-1659FAX: (602) 258-1666www.nhsphoenix.org

INPUTS

This MODEL represents our road map and essentially, our theory of change. It is a visual way to presentthe relationships among our resources, our activities and the changes we hope to achieve.

INPUTS + ACTIVITIES = OUTPUTS u OUTCOMES IMPACTSuu

Rod CauchanCentral Phoenix Animal Hospital, Dr. Alicia RuizThe Cheesecake FactoryChicago Title, Nicole WolfChildren’s Museum of Phoenix, Deb GilpinKirin Christianson, Mrs. ArizonaCity Manager’s Office of Arts & Culture, Elizabeth GrajalesCity of Phoenix City Manager’s Office, Sam FeldmanCity of Phoenix Department of Aviation,MaryBeth ThompsonCity of Phoenix Departmentof Transportation, Gail BrinkmannCity of Phoenix Fire Department, Jeff Steinbeck City of Phoenix Housing Department, Zaria AyoolaCity of Phoenix, Law Department, Kimmy HaugCity of Phoenix Neighborhood ServicesDepartment, Berenice Felix-BacaCity of Phoenix, Office of Government Relations, Kathya HidalgoCity of Phoenix Parks and Recreation Department, Susie BakerCity of Phoenix Public Information Office, Stephanie Ribodal RomeroJerry CookElizabeth RosensteelCub Scout Pack #648,Lauren LewisTracey DempseyPatricia Garcia DuarteFirst American Title CompanyFirst American Title Lenders Advantage, Tina Morcomb & Valerie LewisFitness RevolutionLinde Harned & Sylvia RichardsDavid Hilton, Community Legal Services, Foreclosure Law ProjectThe Home DepotHula’s Modern TikiDana JohnsonKnoodles, Rosario CainThe Law Office of Ben Miranda, Maritza Miranda-SaenzMemo LoaizaMarch of Dimes, TerrySpitzMelanie MartinMazana LadiesSam MazeoMi Amigos Mexican GrillMIcrosoft

My Big Fat Greek RestaurantDale OrrPottery BarnYolie RodriguezThe Rose and CrownSam’s CaféVirginia Senior, Urban BeansSRP, Bryanna McHenrySt. Mary’s Food Bank Community Kitchen, Jon WoodgateLa Tolteca, Veronica CardenasTorres Marquez Communications, Tania MarquezVSYMCA, Las Artes,Louisa RodriguezWaste Mgt. PhoenixOpenDoug Zumach

2012 Board ofDirectorsStephen Anderson Dave Brown – Vice ChairReid ButlerAbedon FimbresLisette FloresCecilia FrancisJeffrey GauvinKenja HassanDana JohnsonLydia Lee – SecretaryJerome MillerArt PerezAlicia Ruiz, DVMChester Seabury, Ph.D.– TreasurerBill ScheelRomona TovarErik Walters - ChairGeorge A. Young

Emeritus MembersEugene Grigsby, Ph.D. Don ConradDavid James

Senior StaffPatricia Garcia Duarte President & CEOTodd FrancisChief Operating OfficerCarole KauffmanChief Learning & Development OfficerKrista SchwartzDirector of Real Estate DevelopmentRamiro PompaLending ManagerChris SmithHomeOwnership Center ManagerCheri SauveFinance Manager

OUTCOMESOUTPUTSACTIVITIES

HOUSES ACQUIRED,REHABBED

AND/OR SOLD

MORTGAGESORIGINATED/FACILITATED3,477

1,303

379

562

312

46FORECLOSURE

COUNSELING SAVES

=

HOUSEHOLDSCOUNSELED

HOMEOWNERSCREATED

HOUSEHOLDSEDUCATED

NationalNeighborWorks®PartnersBank of AmericaCHASECITIFannie MaeMorgan StanleyPNCThe AtlanticPhilanthropiesThe Rockefeller FoundationWells Fargo Housing FoundationWhitney Bank

Homeownership Center Partners ($25,000 or more)Bank of AmericaBBVA CompassFreddie MacFannie MaeJPMorgan CHASENordstrom fsbNeighborWorks®America

Corporate,Government andFoundationsAlly BankAZ Foundation for Housingand CommunityOutreachBankers TrustChicago Title AgencyComerica BankConnect Consulting, Education and Training, Inc.First American Title Insurance CompanyGammage & BurnhamGreat American TitleJohnson BankLISCMariSol Federal Credit UnionMutual of AmericaNational Bank of ArizonaNova Home LoansStrategic Employee BenefitsSW GasThunderbird CharitiesU.S. Bancorp FoundationWells Fargo Foundation

IndividualsLaura AmadaDeborah AndersonRex AndersonStephen AndersonJackie BentonKay BigelowArblee BishopTeresa BriceBailey & Jack BrownDavid BrownLeticia de la VaraTim & Dolores Brown

Lisa CapesAngelo CarlosRicardo CortazarRobyn DiazBrendan DoyleJesse DuartePatricia Garcia DuarteKristy EversonAbedon FimbresLisette FloresLydia FlorezCecilia FrancisTodd FrancisJeff GauvinCarla GibsonBruce GrollChris HallettKenja HassanLaurie HerringAdrienne HowellDana JohnsonLesley JohnstoneCarole KauffmanKate KrietorLydia LeeMary LewisThe Lombardi FamilyDominque MargarellaKen MartinTom McDonaldJerome MillerLeo MolinaFelipe MorenoJames PeckArturo PerezSusan PosadaShirley ReitzAlicia RuizChester SeaburyBill ScheelKrista SchwartzEddie SheaJonah SmithRamona TovarCurt UlmanSylvia VilaErik WaltersLeilani WardGeorge YoungCree Zischke

In-Kind 1130 The RestaurantEdgar AcostaPete AlvarezAMC TheatresArizona Culinary Institute,Glenn Humphrey, Alissa Gouker, Evangelina Woolford, Jeff DrGirolamoArizona Office of Tourism, Laura FrenchMaricela BeauregardBest BuyBevMoMaria BrandenburgLisa CapesLaudene CarranzaAventura CateringBetty Arguello CerdaBJC, Liz MyersBlack Chile Mexican Grill

INPUTS + IMPACTS