HOMES

COMMUNITY

HOPE

®a non-profit housing initiative since 1976

Elva M. CerdaAHSTI Board President

Greetings!

Every two years, Affordable Homes of South Texas, Inc. (AHSTI), publishes its Biennial Report, which provides an opportunity for AHSTI to look back on the accomplishments of the last two years.

With the completion of the FY 2014 year, Affordable Homes of South Texas, Inc. (AHSTI) posted the second highest number of homes completed in its’ 38 year history. A number of these homes were the result of AHSTI’s participation in the Disaster Recovery Program, which provided reconstruction of damaged homes to those families ill affected by Hurricane Dolly.

AHSTI is also proud of its recent efforts in the green and energy saving arenas. Our HomeOwnership Center was Energy Star Certified in 2013 & 2014 and is the only Energy Star Certified Commercial building in the Rio Grande Valley (FY 2014). AHSTI was also designated as a Green Organization by NeighborWorks® America. The designation represents AHSTI’s efforts over the last couple of years to green the organization through its operations, programs, and procedures. Going green is an important issue for AHSTI as we believe it creates a healthy

environment for employees, reduces unnecessary waste. We believe it is important for AHSTI to lead the way for social change.

The Home Buyer’s Fair also experienced continued success these last two years, with FY 2014 marking the first time that the event sold out on exhibitor booth spaces. More importantly, this event helps us reach out and assist families that need to learn about the home buying process in a friendly non-intimidating environment. We will continue to expand the Home Buyer’s Fair and also use other resources to provide information about our programs to families in South Texas.

Beginning with FY 2013, AHSTI embarked on new ventures as well with the launching of a unique social enterprise that involved opening a Blimpie Sub Sandwich Shop in Weslaco. This venture not only created jobs in the area but earnings will be dedicated towards our mission of providing affordable homes to hard working families in South Texas.

Our “thinking outside the box” continued in FY 2014 as AHSTI created new entities to fill a gap

in services for individuals and families that were not eligible for the AHSTI homeownership program but could still not meet criteria required for a traditional mortgage. The new entities will expand our homeownership services and also provide a supplemental source of revenue to the non-profit thereby adding to its’ sustainability.

Please take a moment review our Biennial Report and walk the journey with some of our homeowners from buying their first home to making the final payment on their mortgage.

We are grateful to all of our supporters and to the families that have been a part of our success. We remain fully committed to our mission and look forward to the future and new opportunities.

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AHSTINeighborWorks®

HomeOwnership Center

2013 & 2014 ENERGY STAR Certified Building*

*Only Energy Star Certified Building in Rio Grande Valley for FY2014 according to EnergyStar.gov

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®

The Home Buyer’s Fair experiences steady growth last two years

Only event dedicated to prospective home buyers

FY 2013 and 2014 were great growth years for The Home Buyer’s Fair (HBF).The event, which is free to the public, offers attendees an opportunity to shop lenders, builders, realtors, insurance companies and more all under one roof.

Adding to the experience is the opportunity to learn about the home buying process through free bilingual seminars. These seminars consist of learning the basics of qualifying for a mortgage loan, how to rebuild credit, and how to choose the right builder.

The Home Buyer’s Fair is held twice a year. The first is held in June in McAllen and is currently in its 17th year. The Mid-Valley Home Buyer’s Fair is held in September and is currenlty in its 6th year.

For the first time in its’ history, both HBF events sold out on exhibitor spaces in 2014.

SAVE THE DATE

®

17th Annual

Saturday, June 20, 2015McAllen Convention Center

FY2013 & FY2014 combined

180+ Exhibitors

2100+ Attendees

18 FREE Bilingual Seminars

Highlights: • Increase in Exhibitors at events

• Mid-Valley HBF doubled in attendance

• Sold out on exhibitor spaces

• Furniture & Appliance giveaway valued at over $5,000

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Total $ of property taxes paid on behalf of homeowners

FY 2013

$46.5 million

AT A GLANCE

$42.9 million

$5.3 million

$2.1million

$2.3 million

$8.1 million

Total $ value of loan portfolio

Total $ of mortgages financed

Every home AHSTI builds is Energy Star Certified, Green Built Rio Grande Valley Certified, and comes with a 2-10 Home Buyer’s Warranty

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266

$5 million

$9.3million

FY 2013 FY 2013

$13 million

AT A GLANCE

$5.8million

Total $ paid to subcontractors (construction only)

Total $ contributed to local property tax base

# of jobs created and/or retained

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30 yrs

Average length of an AHSTI mortgage loan

“Every year we applied our income tax refund to the principal. It was a sacrifice, but it was worth it! ”

- Alaniz FamilyPaid off home in 2014

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Mrs. Martinez ceremoniously rips up her Mortgage note after making her final house payment at AHSTI.

Dream of paying off a mortgage came true for many AHSTI familiesFor many homeowners, the realization of owning their own home also means looking forward the the day they pay it off.

In FY 2013 & 2014 a combined 70 AHSTI homowners paid off their mortgage. Some of these homeowners paid their mortgage loan earlier than anticipated, but none as early as the Alanis Family (pictured to left) who paid off their mortgage in a little over 10 years!

A SENSE OF ACCOMPLISHMENT

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AT A GLANCE

1,480hours of

homebuyer education

Provided over Over

280clients received

pre-purchase counseling

Provided over

560hours of

pre-purchase counseling

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AT A GLANCE

1,325hours of

homebuyer education

Provided over Over

260clients received

pre-purchase counseling

Provided over

526hours of

pre-purchase counseling

35 yrs

Average age of clients seeking homeownership through AHSTI

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Decrease in funding leadsto creation of new ventures

Non-profit organizations across the nation have experienced decreases in grant funding

sources and awards. In response, Affordable Homes of South Texas, Inc. began to think

outside the box for innovative ways to bring in additional income to the organization. As a

result, TuCasa Investments, Inc, was born along with some creative concepts.

HCH Realty, LLC HCH Realty was originally launched in 2010 as a division of AHSTI, but in 2014 was moved over under TuCasa Investments, Inc. and converted into a Limited Liability Company (LLC). HCH Realty is a full-service real estate agency dedicated to serving the needs of home buyers and home sellers.

Framework Homes, LLC Framework Homes is a home construction company that builds quality custom homes within an affordable price range for clients that exceed income guidelines of affordable housing options for home construction.

Neighborhood Alliance Management, LLC Neighborhod Alliance Management (NAM) is a property management company with rental properties in Hidalgo County. NAM also provides the service of homeowner association management.

Spirit Mortgage, LLC Spirit Mortgage was created to serve families that exceed income guidelines of affordable housing options but still have challenges qualifying for mainstream lending. Spirit Mortgage is in the development phase and is currently non-operational.

Esperanza on Fifth, LLC Esperanza on Fifth was created in 2013 with the specific intention of becoming the franchisee for Blimpie Sub Shop in Weslaco. The quick serve restaurant was launched in June 2013 and has been well received in the community.

LOOKING FORWARD

dba

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Statistic 1 $0m

Statistic 2 0000

Statistic 3 0000sq/ft

What’s better than great tasting food?When it’s for a great cause!

A Crazy IdeaWhen the idea was originally introduced it was thought of as a crazy idea. What does a non-profit affordable housing organization know about running a restaurant?

The premise was a simple one: A for-profit entity providing a stream of revenue into a non-profit entity while also providing community and economic benefit to the area. The question was how much revenue would there be and would that offset the risk to the non-profit?

Once the options were reviewed and Kahala Brands, owner of the Blimpie Franchise Brand, was chosen, the idea was beginning to look less crazy and more viable. TuCasa Investments, Inc. was then created as the parent entity which then formed Esperanza on Fifth, LLC, the franchisee for Blimpie Weslaco.

Downtown WeslacoWorking hand in hand with Kahala Brands, renovations began on

converting the extra space at AHSTI’s downtown Weslaco building. The location provided an opportunity to minimize start-up costs and would provide a healthy option for students and downtown employees that were within walking distance.

AHSTI was fortunate enough to hire two experienced employees to fill the role of Store Manager and Assistant Store Manager. After hiring two additional crew members, Blimpie Weslaco opened its’ doors in June 2013.

Story continued on pg. 16

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US Veterans and families benefit from Veteran home related programs

U.S. Veteran Eric Horton speaks at the donation ceremony with his wife and son by his side

In 2014, AHSTI was proud to participate in the Texas Home for Heroes program. The program helps US Veterans become homeowners through various loan products or donations of property.

AHSTI, along with Texas State Affordable Housing Corporation (TSAHC), Bank of America and The National Community Stabilization Trust, helped one US Veteran achieve homeownership. Retired Marine Eric Horton, who was honorably discharged in 2009 due to sustaining injuries in Iraq that left him disabled, received the keys to his new home in April 2014.

For its’ part, AHSTI renovated the home and provided homebuyer education for Mr. Horton and his wife.

AHSTI has also had the honor of participating in Operation Finally Home as the builder of a home that will be donated to Sgt. Jacob de la Garza and his family. Operation Finally Home is is a national, non-profit organization dedicated to building homes for wounded, ill or injured veterans. The home is scheduled for completion in January 2015.

Our other special program is our New Beginnings program which is focused on helping elderly homeowners rehabilitate

their home and improve their living conditions considerably.

Recently, our New Beginnings program was able to help Ms. Victoria Zapata, an 82 yr. old blind widow of a WWII Serviceman who died serving our country.

Her home had become unliveable and she needed some help. Fortunately, NewsChannel 5 aired a story about her and AHSTI became aware of her situation.

Demolition began on her home in 2014 with a replacement Energy Star certified home to be completed and replace it in early 2015.

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“This home is a dream come true for our family.” - Eric Horton U.S. Marine Veteran

Sgt. De la Garza and family get ready to break ground on their new home with HEB, AHSTI, and other representatives through Operation Finally Home.

Ms. Zapata (seated) and daughter after meeting with AHSTI’s Rehab Specialist

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Volunteer Income Tax Assistance ProgramAHSTI is highest producing site

Every year, AHSTI participates in the Volunteer Income Tax Assistance (VITA) Program.

The program offers FREE income tax preparation and e-filing services for individuals who earn up to a certain annual income.

AHSTI offers VITA services at both the McAllen and Weslaco location until April 15th.

With appointments during the day and walk-ins during two weekday evenings, VITA income tax preparers help hundreds of individuals prepare their income tax and file it electronically for FREE.

Volunteer Income Tax Assistance Program (VITA) provides FREE income tax preparation and e-filing services

536 Total # of returns

$1.3 Total $ of refunds

826 Total # of returns

$1.6 Total $ of refunds

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A Unique Social EnterpriseThe response from the community was tremendous and soon AHSTI found itself being applauded for thinking outside the box. The crazy idea had turned into “a unique social enterprise.”

Soon, national media outlets heard of Blimpie Weslaco and its’ non-profit connection. AHSTI was featured by The New York Times, Entreprenuer Magazine, and many others.

Customers also embraced our idea and liked the ideas that they could have a great meal at a reasonable price and help the community at the same time.

Day of Giving As the months passed, AHSTI saw an opportunity to help those in need from the community surrounding Blimpie Weslaco, specifically those suffering from Cancer.

As a result, Blimpie Weslaco’s Day of Giving was created. Every month, an individual battling Cancer is honored and is assigned a special day of giving whereby 10% of all gross sales, including catering, are donated to the honoree to help with medical expenses.

Over the past year, Blimpie Weslaco has donated a total of over $3,320 to Day of Giving honorees.

Setting the example Blimpie Weslaco in its’ year and half of operation has set the example for other Blimpie Stores across the nation. In 2014, Blimpie Weslaco was selected as a training store for new Blimpie Store Managers, one of only three across the nation.

Blimpie Weslaco is also the only store in the Blimpie Franchise to offer online ordering and a smart phone app, two features that AHSTI was able to provide by leveraging its technical resources.

Recently presented with two awards from Blimpie corporate that recognizes local store marketing efforts and customer service, Blimpie Weslaco is paving the way for not only non-profit organizations looking to diversify its funding streams but for other Blimpie stores across the nation.

Congratulations to Blimpie Weslaco for winning two

Blimpie Franchise national awards!

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“I wouldn’t even be able to afford to rent a home like the one I bought. I tried to look for homes this size, but they were all too expensive.”

- L. Mata AHSTI Homeowner in 2013

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“My first week living in my home I couldn’t sleep from happiness!”

- M. Vargas AHSTI Homeowner in 2014

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HomeOwnership Center500 S. 15th St. McAllen, TX 78501 NMLS # 346848

Weslaco Branch134 W. 5th St. Weslaco, TX 78596 NMLS # 830294

San Antonio Branch4100 E. Piedras Dr., Suite 260 San Antonio, TX 78228 NMLS # 1234742

SM

N E T W O R K

A M E M B E R O F

Administration Office1420 Erie Ave McAllen, TX 78501

FY 2013 Board of Directors

Paul R. Rodriguez, President

Elva M. Cerda, Vice President

Jason Leal, Secretary

Lorena Castillo, Treasurer

Carmen De Leon

Gracie Silva

Brian Disque

Valerie Cardenas

Humberto Rodriguez

Minnie Lanham

Rudy Salinas

Randy McLelland

Julian Lopez, Jr.

Adan Magallan

Ex-Oficio Piedad Martinez

FY 2014 Board of Directors

Elva M. Cerda, President

Jason Leal, Vice President

Brian Disque, Secretary

Lorena Castillo, Treasurer

Valerie Cardenas

Humberto Rodriguez

Minnie Lanham

Mario De Leon

Miguel Castillo

Randy McLelland

Julian Lopez, Jr.

Adan Magallan

Ex-Oficio Piedad Martinez

HOMES | COMMUNITY | HOPE