2020 was a year like no other. Our teams and our clients showed resilience, compassion, dedication, and flexibility amidst challenges and opportunity.
In 2020, increased need in our community was met with increased commitment, including $3.2 million from the U.S. Department of Treasury Coronavirus Relief Fund. This funding created two new programs: Hotel-to-Home program ($1,500,000) and Avivo Village ($2,600,000). Both are innovative initiatives to address the burgeoning unsheltered homelessness crisis in the Twin Cities. Avivo Village is in part a capital project, with 100 “tiny homes” being built inside a warehouse. The project began in 2020 with completion expected by April 2021. Shelter operations will reach capacity by mid-2021; and the shelter will remain open for two to six years. This revenue was all recognized in 2020; however, the costs of the building and project have been capitalized and therefore not expensed in 2020.
In addition to the above revenue growth, Avivo’s balance sheet was substantially impacted by the capital addition of Avivo Village, as well as the purchase of three transitional recovery housing buildings in the fourth quarter of 2020. Avivo was fortunate to secure Naturally Occurring Affordable Housing (NOAH) funds and optimal financing by partnering with the Greater Minnesota Housing Fund. Avivo also received a $3.2 million Payroll Protection Program loan from the U.S. Small Business Administration in April of 2020 to maintain our program operations. This loan significantly increased the cash assets in 2020.