FY 2021 Annual Report


Facing the Future Together

FY 2021 was one of great challenges: how to meet the affordable housing needs of our community despite the COVID-19 pandemic, natural disasters, and an exponential rise in the price of lumber. The Housing Development Alliance met those challenges by holding fast to its commitment to serve 1,000 families in this decade alone and never stopped building. Through our Homeownership, Home Repair, Affordable Rentals, and Hope Building programs, 83 local families received an affordable housing solution resulting in better homes and greater financial stability.

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On the Level

with Executive Director Scott McReynolds

Scott McReynolds, HDA Executive Director

Like most of you, we’ve experienced a year full of obstacles and curve balls, which challenged us and forced us to make some changes in the way we do our work. However, through it all, the steadfast support of our funders, donors, and supporters helped us continue our work through closures, natural disasters, and financial challenges. 

Lucky for us, the state of Kentucky deemed housing and nonprofit organizations as essential; so, as a nonprofit affordable housing developer, the Housing Development Alliance never closed its office and continued helping our community as safely as possible. 

We did a few initial things to adjust to our new circumstances. To enable employees to stay home when needed and avoid any disruptions to income, we gave all employees their Paid Time Off (PTO) a full year in advance. More than half of our staff are front line workers who cannot do their work from home. We made use of an office vestibule, where we could interact with our clients safely through a window and collect rent/loan payments and other documentation.

Our staff in the field were also busy. In April 2020, we experienced a destructive windstorm that meant we repaired over 20 roofs. We’ve also had two ice storms and a flood since then. Our rehab work made sure that people’s homes were a safe place to be during the pandemic. To keep our staff protected, that work was limited to only outdoors for several months, and we took it upon ourselves to supply hand sanitizer and wipes for the construction crew.

A few of our office staff already had access to VPNs, and we worked to find enough laptops for the other office staff to be able to work remotely. Despite how unreliable the internet is in our area, we were able to have Zoom meetings and keep processing housing applications by receiving documentation through email. Going forward, we will likely continue offering remote work and flexible work hours. Virtual meetings with other organizations and agencies have also saved us time, where we would otherwise have to commute long distances.

The pandemic is an ongoing, ever-evolving thing and has taught us a lot about how we could be better prepared for another business interruption event. The remaining challenge is finding the energy to make those changes – for example, moving our servers to the cloud.

Our first Paycheck Protection Program (PPP) loan covered salaries, and the flexibility to use those funds within six months was very helpful. Because our new housing production dropped in 2020 (in FY 2021, we built 11 houses, which is far below our normal output of 17-19 homes), we were able to get a second PPP loan, which kept us strong and confident and allowed us to hire even more people. We started to open up slowly this summer but have become more restrictive again with the Delta variant sweeping through our area. Due, in part, to pent up demand, 2021 is our most productive year yet; by late summer, we had already started construction on 19 new homes!


R. Scott McReynolds, Executive Director


How We've Helped Our Community

  • 11 New Homes Built & Sold

    The pandemic kept us under our usual production output of 17-19 new homes, but we didn't stop building. Now, 11 more low-income families are homeowners in East Kentucky!

  • 66 Homes Repaired

    The pandemic cast a spotlight on the importance of a good home in ways we haven't seen before. We rehabbed more homes than anticipated, improving the homes of 66 low-income homeowners!

  • 5 New Rentals Developed

    The need for good, healthy, affordable places to rent is greater than ever. While no new rental units were built, we did develop 5 new units for low-income individuals and families in Perry County!

  • 1 Hope Building Home Sold

    Our Hope Building Program welcomed 6 new trainees and continued work in residential construction and home repair. A new home was sold to a middle-income family in Perry County!

  • Allais Project Entered Phase 2

    A first of its kind project for us, the Allais Redevelopment Project entered into construction phase! In partnership with the City of Hazard, the walls were raised on the first 3 of 15 new homes.

  • 83 Families Served

    On our journey to serving our next 1,000 families (in just 10 years!), an additional 83 families received an affordable housing solution in FY 2021. That brings our total to 172 and counting!

HDA Assistant Director Chris Doll (at far right) presents a check to the Johnson family to help purchase new appliances for their HDA-built home.

Family Spotlight

Ellis and Molly Johnson purchased their first new home through our affordable housing program. We sold the Johnsons their new home in February 2021. Prior to becoming homeowners, Ellis and Molly were living in a small apartment – too small for them and their new baby girl. In addition to being a cramped space, the apartment would routinely have leaks and even standing water in it at times.

The Johnsons couldn’t wait to move into their new home! Ellis and Molly are both in recovery and have both spent time incarcerated due to addiction. Now, they are both employed as managers at a fast food restaurant, and each has said they never thought they’d ever own a home.

"We just want to thank you again for all your hard work getting us in our new house. We absolutely love it!"
Ellis & Molly
New Homeowners

The Journey to 1,000

It took 25 years to serve our first 1,000 families.
Since 2019, you’ve been working with us to serve our next 1,000 in just 10 years!

Families Served

Look at the Difference You Made!

July 1, 2020 - June 30, 2021

Grants & Other Revenues

$ 0 .47

Private Donations/Fundraising

$ 0 .75

How We Use Our Funding

Where Does HDA Get Its Money From?

In FY 2021 HDA had an annual budget of $5,870,568.

Housing Development Alliance, Inc. relies on both private and public revenue sources ranging from private donations to federal grant awards to fund its programs and services. Operating funds are provided by developer fees, donations, and grants.

Note that in a normal fiscal year, HDA also receives Volunteer Revenue; however, in FY 2021, our Volunteer Program had to suspend operations due to the COVID-19 pandemic.

What Do We Do With Our Funding?

We are proud to say that over 80% of our funding goes directly to our programs and services that impact the families of our region! The other 20% is spent on general operations, with less than 1% spent on fundraising. For every $1 we spend, $4 of income is generated.

As we grow our programs, we strive to maintain construction quality while also continuing to determine ways to reduce costs. Working to find the most affordable ways to provide the quality of construction that our clients expect and deserve is a key feature of our current plans.

Quick Breakdown of Expenditures

Note: You can find a full rundown of our expenses in our financial statements, which are included with this report.

New Homes
In FY 2021, we spent over 62% of our funding on New Home Construction. We utilized over $2.3 million in building 11 new homes for low & very low-income families!
Rental Units
In the last fiscal year, HDA spent nearly $200,000 - or 5% of our funding - in opening 5 new affordable rentals for low-income individuals and families! 
General Operations
20% of our funding in FY 2021 went to General Operations. We spent just over $779,000 in covering core costs and the costs of running our programs in fulfillment of our mission. 
Less than 1% of our funding was spent on fundraising efforts. With the absence of Repair Affair and Community House Raising (our largest fundraising events) due to the pandemic, we focused mainly on direct mail efforts.
Home Repairs
HDA spent just over 12% of our funding on Home Repairs & Rehabs, utilizing almost $500,000 to repair the homes of 66 local low-income families!


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While many affordable housing agencies now offer manufactured housing, HDA does not, because by continuing to provide stick-built homes, we maximize the local economic impact of our work. Each year, HDA’s work supports 80 living wage jobs with benefits; we buy local, spending $1,500 of every hour of every working day in our local community, which helps area businesses through the purchase of tools and materials and services provided by local subcontractors; and in providing energy efficient homes that save our homeowners nearly $1,000 annually, those homeowners can then spend that money locally, which results in yet another boost to the local economy!

Invested in Local Economy
$ 0 .05

"Affordable housing is a real win-win-win. Homeowners get a safe, decent, affordable house. It's also good for the local economy. At Allais in Hazard, we partnered with the City to tear down an eyesore, and then, we turned it into a community of 15 new homes - that's 15 taxpayers, 15 customers, 15 families that may have children in the local school system. Housing is economic development." 

Scott McReynolds,

Executive Director

Our Successes

New Home Construction

11 Low-Income Families Became Homeowners Thanks to Our Supporters!

Without you, the hope of owning a new home would have remained a dream for these 11 families. Completing months of Housing Counseling to prepare for homeownership and up to 100 hours of sweat equity, these 11 families steadily worked towards the purchase of their HDA home – a home made affordable for them through your support!

Below, hear from the Halls about becoming new homeowners in Knott County, how their home has helped them financially, and what having a good home in a good location means to their three children.

Home Repairs

66 East Kentucky homeowners in need of repairs now have an improved home!

Our Home Repair program is designed to help very low and low-income households access loans and grants for home repairs completed by HDA carpenters. Repairs range from critical and accessibility repairs to home rehabilitation, which involves two or more major repair projects.

Hear from A Couple of Our Clients!


Home Repair Client - Perry County

"This home was my father’s and was built in 1986. It hasn’t really changed much, if any. All I was really hoping for was a refinanced heat pump, but I ended up with so much more than what I was looking for! My house looks a lot better, and it feels a lot better.

A single woman ain’t got anyone to depend on, but I have been so blessed. The Lord always steps in at the right time. I’m telling everyone I know! It’s all so nice. My grandson and I are thrilled."

Kermit & Eva

Home Repair Clients - Breathitt County

"Calling HDA was the best decision we ever made! We couldn't have afforded this ourselves. We appreciate the help, and the crew did such great work. They really care. The repairs have made a world of difference! We're just so grateful."


5 New Units Opened for Low-Income Families

For some individuals and families, renting is a better housing option because the costs associated with owning and maintaining a home are just not feasible at the time. An affordable rental home gives folks a good, healthy place to live while providing them the time to make a plan to achieve homeownership, pay off any debts, and secure employment that doesn’t require uprooting the family. 

In addition to a shortage of rental units, low-income families who are housed in rentals often pay more than half of their income on monthly rent. We provide income-based rentals and open market rentals that are affordable for local families. Our rentals fill up quickly and typically remain occupied. The need is so great that we have had to maintain a waiting list of qualifying applicants.

All of our rentals are currently located in Hazard (Perry County), but we hope to develop more rental units in Breathitt, Knott, and Leslie counties.

321 Baker Avenue
Hummingbird Lane
Dahlya Lane
Highland Avenue
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Hope Building

Homes for Middle-Income Families

Trainees in our Hope Building Program, under the guidance of two of our master carpenters, built this beautiful home from start to finish in the Ary community of Perry County. The 3-bedroom/2-bath home sold on the open market for just under $140,000. This house, unlike our first Hope Building home, was custom built. New homeowner Donnie chose the two-story “Jake” floorplan for the design of his home. Our Hope Building trainees started the home in August of 2020, and the home sold just after the New Year.

Photo by Shawn Poynter | Poynter Photo Co.

"There is More Work To Be Done"

In the fall of 2020, we were visited by photographer Shawn Poynter, who was working on a project for the Housing Assistance Council (HAC) and the National Endowment for the Arts (NEA) celebrating rural housing. Poynter chose to feature our work in new home construction, home repair, and Hope Building. You can find his report here.

Also, if you haven’t, please be sure to read former Hope Building trainee Terrell’s story!

The Allais Redevelopment Project

Building Community Through a Unique Partnership

Our year ended on an incredibly high note with the start of home construction in the Allais (pronounced “Al-ayz”) section of Hazard. The City of Hazard completed the first phase of the project – demolishing an old strip mall, clearing the land, and preparing it for construction by adding water and sewer lines, sidewalks, and a blacktop access road – and then, after purchasing the land from the City, we raised the first walls on the first home on May 11, 2021 in the newly named Gurney’s Bend, a 15-home affordable housing subdivision! We chose the name of Gurney’s Bend to pay honor to acclaimed writer and former Poet Laureate of Kentucky Gurney Norman, who spent part of his childhood in Allais and often speaks and writes about the area. 

Built on the site of a former coal camp, where workers could not own their homes but were required to live in company-owned houses (and when the mine shut down, those families were left homeless and left the region to find work elsewhere), this $1.7 million project provides an opportunity for East Kentucky families to own their own homes and build generational wealth.

HDA carpenters working on Donna's house, the first home to be built in Gurney's Bend.

Did You Miss the Wall Raising?

No worries! You can catch videos from the LIVE wall-raising event on our YouTube channel. (Don't forget to subscribe!)

Go to Videos!

Thank You to Our Funders!

in alphabetical order

AEP Foundation – Kentucky Power
Affordable Housing Trust Fund (AHTF)
Appalachian Impact Fund (AIF)
Appalachian Regional Commission (ARC)
Berea College Appalachian Fund
Blue Grass Community Foundation
Delores Barr Weaver Fund
Department for Local Government
Foundation for Appalachian Kentucky (FAKY)
Federal Home Loan Bank (FHLB) of Cincinnati
Housing Assistance Council (HAC)
Kentucky Colonels Foundation
Kentucky Housing Corporation (KHC)
State Farm Foundation
The James Graham Brown Foundation
The Perry County Community Foundation
USDA Rural Development
U.S. Dept. of Energy and KY Energy & Environment Cabinet

Special Thank You to Our Partner

The City of Hazard

Thank You to Our Donors!

in alphabetical order

Adam & Ashley Johnson
AdEast, Inc.
Alison Wells
American Business Systems
Annie Williams
Appalachian Refrigeration, Heating & Cooling 
Ashok Patel, M.D.
Carson Tucker
Cecilia Maggard
Chris Gooch, CPA
Community Trust Bank
Connor & Karrie McBryde
Craig & Helen Favor
Craig’s Heating & Cooling
Dan & Christine Weber
Dexter Melton
Diane Loeffler
Double LL Construction (Marty Lewis)
First Federal Savings & Loan
Fred & Ruth Skaggs
Frieda Mullins
Helen Wells
Jack Rivel
James & Heather East
James & Marcia Brown
Jan Richardson
Jane Rose Britton
Janet Prater-Smith
Jeanne Marie Hibberd
Jeffrey & Marilyn Harris

Jeremy & Evelyn Wood
Jerry & Mary Ann Doll
Krista Glass
Larry & Sally Monroe
Larry King
Margaret Yoke
Martin Douthitt
Matthew & Michelle Doll
Medaris Law Office
Melvin Pollard
Mike & Julie Hodge
Mimi Pickering
Mother of Good Counsel Catholic Church
Pam Short
Peoples Bank & Trust Company
Perry Distributors, Inc.
Randy & Jackie Moon
Robert & Emily Cato
Roger & Barbara Wrisberg
Russell Oliver
Scott & Janet McReynolds
Shane & Nikki Hurley
Terri McReynolds-Gilbert
The Benevity Community Impact Fund
The Mountain Real Estate Company
Timothy J. Dunn
Todd Morgan
Tom & Letha Patterson
Vera Faye Hopper
Vicki Knott

Gifts in Memory Of

Daniel Spokas by Troy & Jennifer Rapp
Ricky Westman by Richard & Gail Westman
Lonnie Miller by Hazard Rotary Club
Greg Wells by Dr. James & Judy Jolly
Bill & Joyce Cornett by Karen Reuter
Jim Doll by Don Doll, Nathan & Shelly Hawthorne, Dave Doll, Diane Bingham, and John & Kathy Doll
Ryan Beaupre by Carl Tierney
Sam & Ann Turner by Lisa Turner-Schikler

Gifts in Honor Of

Jennifer Christian by David C. Christian
Ashley “Howze” Michaud and Mary Clare Dismukes by Jennifer Christian
Scott McReynolds by Deborah Lewis
Troy & Jennifer Rapp by Tammy Talbert
Craig Favor by Otis & Amylyn Crawford-Thornton
Andrew Lunsford by Shawna Jansen
Norm & Donna Vincent by Todd Vincent and Meg Vincent
Chris Doll by Marcia Potthast

Add Your Support!

The work HDA does for low-income families in East Kentucky is not possible without grants and our donors and funders. Your help can give even more families high quality, long-lasting, affordable homes. Help us serve our next 1,000 families in record time!


We build because every East Kentucky family deserves a home they can afford. Give to HDA and help families get a brand-new home or improve the home they have.


Whether you’re from near or far, with HDA, you have the opportunity to build in the hills of East Kentucky and help transform whole families and communities!

Tell Others

Be an ambassador for HDA in your own community and let others know how they can join our cause to bring affordable housing to East Kentucky families in need!

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