Monday, February 06, 2012

MHEHF :: Director's Message

FROM THE DESK OF... EXECUTIVE DIRECTOR John L. Baker

July, 2010

In my undergraduate days I took a number of art classes that required free-hand drawing. Probably the most important principles that I still carry from those hours invested were to maintain one’s sense of scale and perspective.

When I think of the scale of what this Board has accomplished, I am both proud and disappointed. We have had several very productive years and a strong track record. I can point to approximately $400,000,000 in new transactions and over 8,000 units financed. I can also point to 9,000 households currently benefiting from our property tax relief program. These are noteworthy achievements.

Every year, Tennessee Housing Development Agency rates counties for their affordable multifamily housing need. For years, Shelby County has held the position of number one. Still today, by some accounts, over 27% of our multifamily units are in poor or below average condition. We see a community still in need of all we can do.

As our Chair points out in his letter, we are in a time of major economic re-setting and recovery. From a local perspective, we are not exempt from the international economic crisis. We want to remember that we have an important role to play in this community, helping those who are getting hit the hardest by the downturn of the financial markets. From an external perspective - we need to work on every opportunity to secure and stabilize the transactions we have done, and look for any opportunity for more good development.

From an internal perspective – The downturn that hit many sectors of the national and local economies was slower reaching our Board. But it did arrive. We have felt it in the area of new transactions by the absence of a credit enhancer where Fannie Mae and Freddie Mac once served.

In these financial doldrums, perhaps the best question that can be considered is “How can we make the best use of a slow market?” Here at the Board, we have decided that this was a good time to refine some of our internal and administrative operations. Toward that end, we have stepped up our utilization of hardware and software – toward greater functional efficiency.

While we know this Board will not turn the economy around, we are investing time and effort to be ready for the turnaround when it does come. We are re-tooling to improve internal processes and procedures that will pay dividends in making us more efficient and user-friendly than ever.

So what do you call it when a small board finances $400,000,000 to build or rehab 8,000 units and assists 9,000 units with tax relief? Let’s keep our scale and perspective and call it a nice start…