ANNUAL REPORT 1996
AFL-CIO
HOUSING INVESTMENT
TRUST
Performance Highlights 1996 1995
Net Assets $1,383 million $1,167 million
New Investment $ 198 million $ 60 million
Reinvestment of
Dividends $ 78 million $ 68 million
Investment Fundings $ 470 million $ 407 million
New Commitments $ 361 million $ 328 million
Total Participants 395 387
Figures are as of December 31<PAGE>
<PAGE>02
AFL-CIO HOUSING INVESTMENT TRUST
ANNUAL REPORT 1996
[Picture of John J. Sweeney
President, AFL-CIO here]
A MESSAGE FROM THE PRESIDENT OF THE AFL-CIO
In the record-breaking year of 1996, the AFL-CIO Housing Investment Trust
made a strong mark on communities across this nation through its investments
in union-built housing, while maintaining the security of the pension dollars
invested in it.
The Trust's accomplishments in 1996 serve as a clear illustration of the
AFL-CIO's commitment to working families and their communities. With more
than $1.38 billion in net assets under management, the Trust is a respected
leader in increasing the nation's supply of decent and affordable housing. It
has become a much sought-after resource for community development--not just
as a growing source of investment capital, but also for its technical capacity
to help structure sound financing arrangements. The investment partnerships
it has formed across the country are catalysts for good jobs and economic
development. At the same time, HIT continues to produce highly competitive
returns which help secure the future for pension beneficiaries.
The Trust's well-managed investment program complements the work we are
doing at the AFL-CIO to improve the lives of working Americans. This is one
reason why all three of the new AFL-CIO officers--Secretary-Treasurer Richard
Trumka, Executive Vice President Linda Chavez-Thompson, and myself--have
chosen to take active roles in HIT. We are proud of what the Trust has
achieved, and will continue to achieve, for its participants and communities
across the nation.
/s/ John J. Sweeney
John J. Sweeney
<PAGE>
<PAGE>03
REPORT TO PARTICIPANTS
[Picture of Richard Ravitch
Chairman, Board of Trustees here]
By every important measure, 1996 was one of the most successful years in
the history of the AFL-CIO Housing Investment Trust. Impressive performance
in a year of market volatility demonstrated once again why the Trust is one of
the most attractive fixed-income investment options available to eligible
pension plans.
As we report in the following pages, the Trust in 1996 continued its
history of strong, long-term returns for participants, outperforming the
standard industry benchmarks. The Trust issued a record volume of loan
commitments, and investors showed their confidence with an unsurpassed level
of new investment in HIT.
But we refuse to rest on past achievements. The most important issue for
our participants is not where the Trust has been, but where it's going.
Guided by a prudent management plan and an active investment strategy,
the Trust is firmly on track for continued strong results in 1997 and beyond.
Its future is grounded in its highly professional staff and comprehensive
financial information system, its nationwide network of bankers, brokers, and
other investment partners, and its steady pipeline of attractive investment
opportunities. As the Trust's assets have grown, so have its financial
capabilities. Today the Trust has a wider range of resources at its disposal
than ever before, and these resources are fully focused on meeting the long-
term needs of you, our investors.
With this solid foundation, we enter 1997 well-prepared to maintain the
competitive position of the Trust. With your continued support, we fully
expect this to be another successful year.
/s/ Richard Ravitch
Richard Ravitch
<PAGE>
<PAGE>04
PERFORMANCE
COMPETITIVE WITH INDUSTRY BENCHMARKS
The impressive performance of the AFL-CIO Housing Investment Trust in
1996 showed once again why the Trust is such an attractive choice for pension
investors. Despite fluctuations in the financial markets that some analysts
likened to a roller coaster, the Trust finished the year with highly
competitive returns for its participants.
The Trust's total gross rate of return for the year was a strong 5.59
percent, as compared to 5.4 percent for the Salomon Brothers Mortgage Index
and 3.6 percent for the Lehman Brothers Aggregate Bond Index. Over longer
periods of time, HIT's performance also compared favorably to these indices,
as shown in the accompanying table.
HIT's total net rates of return for the one-, three-, five-, and ten-year
periods ending December 31, 1996, were 5.13 percent, 6.94 percent, 7.24
percent, and 8.83 percent, respectively.
<TABLE>
<CAPTION>
Total Gross Rates of Return for HIT and Industry Benchmarks
As of December 31, 1996
1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AFL-CIO HOUSING INVESTMENT TRUST 5.59% 7.46% 7.75% 9.39%
SALOMON BROTHERS MORTGAGE INDEX 5.4% 6.7% 6.9% 8.8%
LEHMAN BROTHERS AGGREGATE BOND INDEX 3.6% 6.0% 7.0% 8.5%
</TABLE>
<TABLE>
<CAPTION>
LOAN PRODUCTION - NUMBER OF UNITS CREATED
YEAR SINGLE FAMILY MULTI-FAMILY TOTAL
----------------------------------------------------------------
<C> <C> <C> <C>
1990 - 1,123 1,123
1991 245 2,500 2,745
1992 916 1,708 2,624
1993 366 1,800 2,166
1994 510 2,862 3,372
1995 659 6,580 7,239
1996 337 6,057 6,394
</TABLE>
GROWTH
SURPASSING HISTORIC LEVELS
As a clear signal of investor confidence, participants brought an
unprecedented $198 million in new investment to the Housing Investment Trust
in 1996. This represented more than triple the $60 million received in the
previous year.
Twenty-two new participants in HIT contributed $108 million of that
record investment amount. Three of these new participants were large plans
that contributed over $10 million each. The remaining $90 million in new
funds came from existing participants who chose to increase their
participation in the Trust.
At year-end, the Trust had $1.38 billion in total net assets under
management. This reflected $216 million in growth during 1996--an increase
of 19 percent since the end of 1995. The number of participants, too, reached
a new high of 395.
<PAGE>
<PAGE>05
REPORT TO PARTICIPANTS
PORTFOLIO
MANAGED FOR LONG-TERM GAINS
The Trust was able to maximize returns to participants through active
management of the portfolio, taking advantage of opportunities arising in the
volatile mortgage interest rate environment. Strategic portfolio management
decisions were made throughout the year to preserve net value and mitigate
losses as interest rates fluctuated. Overall duration of the portfolio was
carefully monitored. To mitigate the negative impact on the value of the
portfolio as interest rates increased, the Trust lowered duration by
increasing investments in single family housing and selectively sold off lower
yielding, high duration securities. These positive steps are reflected in the
performance of the Trust.
<TABLE>
<CAPTION>
PORTFOLIO ALLOCATION AS OF DECEMBER 31, 1996
<S> <C>
MORTGAGE BACKED SECURITIES 41.5%
LOCAL INITIATIVES .9%
SHORT TERM 6.4%
FHA MORTGAGES 34.5%
FHA CONSTRUCTION LOANS 16.7%
</TABLE>
At December 31, 1996, the investment portfolio included mortgage-backed
securities, 41.5 percent; FHA mortgages, 34.5 percent; FHA construction loans,
16.7 percent; and local initiatives, 0.9 percent. Short-term investments were
held to 6.4 percent, consistent with the Trust's strategic plan.
At the close of the year, the net asset value of the Trust was $1,072.98
per unit, which represented a 2 percent decrease from the prior year.
The Trust's management structure continued to operate in a highly
cost-effective manner, with the ratio of expenses to average net assets
dropping to
46 basis points. Total cost per unit for expenses edged down to $4.99 from
$5.38 in 1995.
Ninety-nine percent of the Trust's long-term investments, including
construction loans, continued to be insured or guaranteed by the U.S.
government or government-sponsored enterprises at year end.
<TABLE>
<CAPTION>
LOAN PRODUCTION VOLUME
YEAR DOLLAR VALUE (IN MILLIONS)
SINGLE FAMILY MULTI-FAMILY TOTAL
----------------------------------------------------------------
<C> <C> <C> <C>
1990 - $59 $59
1991 $26 85 111
1992 102 67 169
1993 42 103 145
1994 51 161 212
1995 70 258 328
1996 35 328 363
</TABLE>
<PAGE>
<PAGE>06
INVESTMENT
STRONG FINANCING CAPACITY
Capitalizing on its capacity for loan production, the Trust was able to
move expeditiously in placing its funds into sound investment instruments.
The result was a record-setting $363 million in new loan commitments and $470
million in total project financing in 1996. HIT's 1996 new loan commitments
represented an 11 percent increase over the $328 million issued in 1995.
Of the new financing commitments in 1996, $328 million went to 26
multi-family projects and $35 million to single family housing. Together,
these commitments are expected to generate more than 6,300 housing units and
more than 4,300 new jobs in construction and related industries.
Projects financed by the Trust were as diverse as the housing needs of
this country, illustrated by the New York high-rise, the Southwest-style
clusters in El Paso, and the family apartments on a San Francisco
hillside.
The 42-floor City Lights at Queens Landing apartment co-op is part of a
mixed income development in the Queens borough of New York City. It offers
affordable co-ops with grand views across the East River to the United Nations
building on the opposite shore and the rest of Manhattan beyond. Queens
Landing is also HIT's largest financing to date, with $86 million in
construction and permanent loans that are secured by FHA insurance. The
522-unit high-rise tower is part of a $2.3 billion revitalization of the East
River waterfront.
Corona del Valle is a project taking shape in El Paso, on a site
overlooking the Rio Grande. As part of the Trust's Border Initiative, the
project will provide decent, affordable dwellings for 100 families, as well as
on-site community support services. HIT's $2.8 million in financing is
secured through Fannie Mae. The project sets an example for design of
affordable housing in its use of smaller buildings and plenty of open space.
Masonry insignia of the Bricklayers union are set into the exterior wall above
each front door to commemorate that union's active role in developing the
project.
[drawings of Corona del Valle and City Lights at Queens Landing projects here]
<PAGE>
<PAGE>07
REPORT TO PARTICIPANTS
[drawing of Market Heights project here]
The Market Heights family apartments nestle into a steeply sloped San
Francisco hillside above the thriving Farmers' Market. Improvements were
completed in the spring of 1996, and the three low-rise buildings are now
fully occupied by 46 mixed-income families. The development includes open
areas for children's play and barbequing. The Trust furnished $2.3 million
in permanent financing, securitized by Fannie Mae, as part of the project's
nearly $10 million total development cost.
Through its growing national network of investment partners, HIT has been
able to engage public and private resources in new ways to meet the country's
growing housing needs.
Service-enriched housing is one of these innovations. Recognizing that
low-income residents often lack the support services they need to improve
their lives, HIT often works with local partners who will deliver needed
services right at the housing project. In Atlanta's renovated Imperial
Hotel, for example, an experienced agency will provide on-site case
management and comprehensive services to formerly homeless individuals.
On-site classrooms and training programs are designed into the Umoja
Apartments in Los Angeles.
Many HIT-financed projects are making a noteworthy contribution to the
way in which neighborhoods are revitalized. In District Heights,
Maryland, the Woodland Springs Apartments project is completely
transforming a dense, deteriorated housing development into a livable,
open, lower-density complex. In a seven-city rehabilitation project in
New Jersey, the Trust is replacing abandoned buildings with renovated
housing for HIV/AIDS patients and their families. This New Jersey
initiative will also offer vital medical and social services on-site.
The principal vehicle for HIT's efforts to mobilize investment continued to be
the National Partnership for Community Investment--the initiative established
four years ago by the AFL-CIO Investment Program. HIT has enjoyed tremendous
success in bringing together a wide variety of organizations under the
National Partnership umbrella, from
<TABLE>
<CAPTION>
LOAN PRODUCTION - NUMBER OF PROJECTS
YEAR SINGLE FAMILY MULTI-FAMILY TOTAL
----------------------------------------------------------------
<C> <C> <C> <C>
1990 - 10 10
1991 1 20 21
1992 6 16 22
1993 4 14 18
1994 3 18 21
1995 3 24 27
1996 2 24 26
</TABLE> <PAGE>
<PAGE>08
national-level agencies like the U.S. Department of Housing and Urban
Development, Fannie Mae, and Freddie Mac, to state and local housing finance
agencies, private nonprofits, and financial institutions. State and local
labor organizations usually play a prominent role in these partnerships, and
many have formed lasting relationships with other partners that share their
goals for decent housing and jobs.
As part of its National Partnership activities, the Trust participated in
the Section 8 Community Investment Demonstration Program, a federal program
designed to encourage pension investment in affordable housing. Nineteen
innovative HIT-financed projects were designated by the Trust to receive $115
million in project-based Section 8 assistance through this program.
Through the National Partnership, the Trust continued to target selected
metropolitan areas to spur new investment in housing. In San Francisco, for
example, the Trust took part in the Mayor's Economic Summit with key public
and private sector leaders and pledged $100 million in investment to address
the city's housing needs.
Shortly before year-end, the Trust became the first labor partner in the
National Partners in Homeownership--an impressive coalition of leaders in
housing, financing, and community development whose goal is to increase
homeownership opportunities. Over the next five years, HIT will commit $250
million toward helping to fill the nation's serious shortage of decent,
affordable homes.
<TABLE>
<CAPTION>
AVERAGE DOLLARS INVESTED PER PROJECT: MULTI-FAMILY (IN MILLIONS)
YEAR DOLLARS PER PROJECT(IN MILLIONS)
- ---------------------------------------------------------
<S> <C>
1990 $5.90
1991 4.25
1992 4.19
1993 7.36
1994 8.94
1995 10.75
1996 13.67
</TABLE>
<TABLE>
<CAPTION>
AVERAGE UNITS PER PROJECT: MULTI-FAMILY
YEAR AVERAGE UNITS PER PROJECT
- ---------------------------------------------------
<S> <C>
1990 112
1991 125
1992 107
1993 129
1994 159
1995 274
1996 252
</TABLE>
LOOKING AHEAD
CONFIDENT OF THE FUTURE
Housing--especially affordable housing--remains one of our nation's
most critical needs. The Housing Investment Trust expects to play a prominent
role in pursuing innovative solutions to national housing needs, in
cooperation with HUD, Fannie Mae, Freddie Mac, state housing finance agencies,
and other partners. As we do that, we will take advantage of opportunities to
put pension funds to work in creating good jobs, revitalizing communities, and
providing competitive returns to our investors and the working men and women
who are our ultimate beneficiaries.
<PAGE>
<PAGE>09
1996 PARTICIPANTS MEETING
The 1996 Annual Meeting of Participants was held in Washington D.C. on June
24, 1996. The following matters were put to a vote of Participants, through
the solicitation of proxies, at the meeting:
Richard Ravitch was re-elected to chair the Board of Trustees by a vote
of 767,998.7922 for, 539.3588 against, 0 abstentions, and 358,302.4286
votes not cast.
The following table details votes pertaining to Trustees who were
elected at the Annual Meeting:
<TABLE>
Trustee Votes For Votes Against Votes Abstained Votes not Cast
- ------- --------- ------------- --------------- --------------
<S> <C> <C> <C> <C>
Richard L. Trumka 768,528.1510 0 10.0000 358,302.4286
Linda Chavez-
Thompson 768,538.1510 0 0 358,302.4286
Frank Hanley 752,582.8636 2,461.2779 13,494.0095 358,302.4286
Walter Kardy 751,996.3709 2,927.0239 13,614.7562 358,302.4286
George Latimer 751,298.2365 2,035.6897 15,204.2248 358,302.4286
H. D. LaVere 737,401.6993 17,511.6955 13,624.7562 358,302.4286
</TABLE>
Trustees Arthur A. Coia, Terrence R. Duvernay, Alfred J. Fleischer,
Robert A. Georgine, Frank Hurt, John T. Joyce, A.L. Monroe, Jack F.
Moore, Marlyn J. Spear, Tony Stanley, John J. Sweeney and Patricia F.
Wiegert were not up for election in 1996. Their terms continued after
the date of the Annual Meeting. Trustee George A. Miller, whose term
ended at the 1996 Annual Meeting and who did not stand for election in
1996, was appointed by the Board of Trustees to fill the remaining year
of the term of the late Anthony R. Presutto.
KPMG Peat Marwick LLP was ratified as the Trust's Public Accountants by
a vote of 754,211.8666 for, 466.0560 against, 13,860.2284 abstentions,
and 358,302.4286 votes not cast.
<PAGE>
<PAGE>10
AMERICAN FEDERATION OF LABOR AND CONGRESS OF
INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 1996
-----------------
(With Independent
Auditor's Report
Thereon)
<PAGE>
<PAGE>11
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
Assets
Investments, at value
(amortized cost $1,358,215,169) $1,379,431,358
Cash 1,063,559
Accrued interest receivable 9,776,240
Accounts receivable 725,609
Prepaid expenses and other assets 882,119
--------------
Total assets 1,391,878,885
Liabilities
Accounts payable and accrued expenses 589,236
Redemptions payable 3,746,338
Refundable deposits 754,378
Income distribution payable, net
of dividends reinvested of $20,656,160 3,625,767
-------------
Total liabilities 8,715,719
-------------
Net assets applicable to
participants' equity -
certificates of participation;
authorized unlimited; outstanding
1,289,082 units) (note 5) $1,383,163,166
--------------
Net asset value per unit
of participation $1,072.98
See accompanying notes to --------------
financial statements.
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
FHA Mortgages (34.5%) Interest Maturity Face Amortized Value
Rates Date Amount Cost
-------- -------- ------ --------- -----
<S> <C> <C> <C> <C> <C>
Single Family 7.75% 07/21-08/21 $2,208,118 2,208,118 2,201,263
8.00% 07/21 2,115,615 2,125,375 2,138,455
10.31% 02/16 79,363 79,363 86,350
11.31% 03/16 90,226 90,226 100,149
----------- --------- ---------
4,493,322 4,503,082 4,526,217
---------- --------- ---------
/TABLE
<PAGE>
<PAGE>12
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
FHA Mortgages Interest Maturity Face Amortized Value
(34.5%) Rates Date Amount Cost
-------- -------- ------ --------- ------
<S> <C> <C> <C> <C> <C>
Multi-family 6.50% 08/04 $20,143,847 20,143,847 19,308,155
7.25% 12/28-09/36 46,408,948 46,607,939 45,098,174
7.43% 05/23 18,173,807 18,570,374 17,875,755
7.50% 11/22-07/36 15,175,761 15,329,293 14,850,762
7.55% 08/12 989,581 729,251 976,069
7.63% 04/31 33,277,751 33,285,603 33,259,398
7.75% 04/29 23,400,343 23,407,473 23,585,827
7.93% 07/35 19,751,642 19,761,028 20,143,432
8.00% 09/31-09/34 11,795,368 11,828,853 12,022,689
8.13% 08/29 13,146,800 13,086,073 13,433,765
8.25% 02/26-09/35 36,761,991 36,790,538 37,494,163
8.30% 08/33 4,697,603 4,700,102 4,835,180
8.38% 01/27-11/34 39,505,585 39,527,369 40,960,664
8.40% 04/12-01/28 14,886,421 14,515,908 15,446,183
8.50% 04/12-02/35 13,305,667 13,146,973 13,855,616
8.60% 01/28 2,071,253 2,074,545 2,189,994
8.63% 12/29 4,281,850 4,285,477 4,475,249
8.64% 09/28 4,321,494 4,321,494 4,407,924
8.65% 07/22 1,444,409 1,445,242 1,514,625
8.70% 01/27-02/33 13,369,507 13,598,554 13,745,042
8.75% 09/36 8,499,028 8,363,610 8,923,980
8.80% 10/32 5,681,018 5,684,323 5,965,069
8.88% 09/29-06/36 32,395,728 32,308,162 34,506,184
9.00% 03/29-06/34 15,372,333 15,282,147 16,279,069
9.13% 04/31-05/35 16,504,725 16,509,637 17,398,700
9.25% 06/98-06/34 17,029,840 17,147,116 17,616,625
9.31% 12/32 184,657 181,378 193,890
9.38% 06/32-06/34 6,841,622 6,926,439 7,277,984
9.50% 07/27 382,707 393,235 409,496
9.73% 01/35 6,451,970 6,453,710 6,581,009
9.75% 04/17-01/33 6,745,399 6,720,246 7,191,704
10.00% 05/02-03/31 5,913,378 5,913,378 6,031,029
10.15% 03/34 1,973,776 1,973,776 2,111,940
10.45% 01/30 1,225,983 1,227,362 1,262,763
11.39% 09/28 376,040 371,329 376,040
----------- ----------- -----------
462,487,832 462,611,784 471,604,148
----------- ----------- -----------
Total FHA Mortgages $466,981,154 467,114,866 476,130,365
----------- ----------- -----------
/TABLE
<PAGE>
<PAGE>13
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
FHA
Construction
Loans (16.7%) Interest Rates Maturity Commitment Face Amortized Value
Perm Const Date* Amount Amount Cost
---- ----- ------- --------- ---------- ------------ -----------
<C> <C> <C> <C> <C> <C> <C>
6.75% 6.75% 03/21 1,141,200 0 0 391,193
6.75% 6.75% 03/38 3,123,100 0 0 336,508
7.50% 7.50% 05/37 10,145,100 4,134,005 4,134,005 3,666,297
7.55% 7.55% 11/37 9,225,000 2,285,235 2,298,055 1,901,186
7.63% 7.63% 12/27 33,989,100 8,792,484 8,759,439 8,330,931
7.63% 7.63% 04/37 12,068,000 5,444,094 5,429,396 5,027,646
7.63% 7.63% 06/37 12,105,000 5,067,534 5,072,874 4,774,984
7.70% 7.95% 04/38 85,621,900 47,023,781 45,114,764 44,726,568
7.75% 7.75% 10/37 3,050,000 3,050,000 3,045,905 2,959,043
7.75% 7.75% 01/38 7,218,200 378,926 378,926 (189,710)
7.80% 7.80% 02/38 21,801,000 0 0 (473,404)
7.85% 7.85% 01/38 2,621,100 302,936 302,936 (59,026)
7.88% 7.88% 01/37 13,714,100 12,313,920 12,515,921 12,079,366
7.88% 7.88% 03/37 4,275,000 2,995,524 2,999,420 2,923,362
7.90% 8.13% 02/38 41,836,000 13,019,012 12,818,291 12,384,249
7.91% 7.91% 08/38 27,431,600 0 0 (321,382)
8.00% 8.00% 07/38 7,600,000 4,731,132 4,582,037 4,767,247
8.13% 8.13% 08/37 15,013,200 11,401,327 11,409,769 11,554,983
8.18% 8.65% 02/36 4,247,200 3,524,930 3,465,116 3,565,484
8.18% 8.65% 11/36 26,999,500 23,218,424 22,835,992 23,471,645
8.18% 8.65% 11/36 10,079,100 9,156,776 9,038,439 9,251,305
8.25% 8.25% 11/36 3,645,000 2,347,738 2,350,851 2,439,073
8.25% 8.50% 02/37 5,265,000 3,343,299 3,348,142 3,499,615
8.30% 8.30% 06/36 2,702,300 2,523,644 2,523,868 2,594,258
8.31% 8.31% 03/38 22,998,400 1,200,857 1,206,239 1,966,451
8.75% 8.75% 05/36 3,861,700 3,451,913 3,466,883 3,699,062
8.75% 8.80% 03/37 29,095,200 23,704,738 23,710,887 25,247,261
9.00% 9.00% 11/35 7,306,500 7,171,131 7,077,113 7,684,233
9.25% 9.25% 05/36 20,599,900 19,329,145 19,334,949 20,771,138
9.40% 9.40% 01/36 9,706,400 7,520,831 7,526,504 8,491,471
9.90% 10.00% 10/32 2,261,500 2,185,854 2,188,927 2,344,159
---------- ---------- -----------
Total FHA Construction Loans $ 229,619,190 226,935,648 229,805,196
* Permanent mortgage maturity date.
</TABLE>
<PAGE>
<PAGE>14
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
GNMA Securities Interest Maturity Face Amortized Value
(25.7%) Rates Date Amount Cost
-------- -------- ------ --------- -----------
<S> <C> <C> <C> <C> <C>
Single family 7.00% 04/26 $ 9,825,788 9,728,159 9,621,596
7.50% 11/25-12/26 14,099,671 14,316,548 14,085,374
8.00% 03/17-12/26 80,771,915 82,320,523 82,280,345
8.50% 07/21-08/25 76,605,099 79,530,314 79,872,260
8.75% 03/25 2,578,361 2,678,167 2,697,207
9.00% 05/16-06/25 26,926,424 28,139,732 28,481,400
9.25% 05/16-01/25 1,410,457 1,476,907 1,506,727
9.50% 08/16-09/21 7,656,682 8,003,542 8,301,374
10.00% 06/19 49,887 49,887 54,237
11.00% 07/15-09/16 251,800 251,800 286,443
11.25% 10/15 90,236 90,236 104,182
12.00% 04/15-06/15 69,530 69,530 82,358
12.25% 04/15 10,262 10,262 12,134
13.00% 07/14 6,254 6,255 7,601
13.25% 12/14 8,204 8,204 10,045
13.50% 08/14 7,600 7,600 9,395
--------- -------- --------
220,368,170 226,687,666 227,412,678
- ------------------------------------------------------------------------------
Multi-family 6.75% 11/28 13,212,931 13,252,295 12,798,856
6.88% 01/29 22,540,146 22,619,957 21,770,610
7.75% 07/36 7,975,097 7,677,903 8,047,441
8.25% 05/32 4,641,246 4,718,365 4,660,196
8.50% 01/27-07/29 13,436,445 13,553,400 14,064,278
8.75% 12/26 4,424,589 4,424,589 4,563,964
9.00% 06/30-05/31 12,756,376 12,145,505 13,649,322
9.25% 12/30 10,857,015 10,801,401 10,911,300
9.50% 11/27 4,624,699 4,624,699 4,855,934
9.75% 10/32 9,713,891 9,715,797 10,250,815
9.80% 03/28 4,227,731 4,227,730 4,346,635
9.88% 07/31 4,761,032 4,721,771 4,975,278
10.05% 05/26 1,267,015 1,267,015 1,300,274
10.25% 11/25 3,902,473 3,843,326 4,000,034
12.55% 06/25 6,144,174 6,045,865 6,316,979
----------- ----------- -----------
124,484,858 123,639,918 126,511,916
----------- ----------- -----------
Total GNMA Securities $344,853,028 350,327,284 353,924,594
----------- ----------- -----------
</TABLE> <PAGE>
<PAGE>15
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
GNMA
Construction
Loans (1.1%) Interest Rates Maturity Commitment Face Amortized Value
Perm Const Date* Amount Amount Cost
---- ----- ------- --------- ---------- ---------- --------
<C> <C> <C> <C> <C> <C> <C>
Multi-family 6.75% 6.75% 01/34 $3,733,300 3,105,898 2,591,701 2,913,332
7.50% 7.50% 05/38 5,440,000 2,013,812 2,016,470 1,820,857
7.63% 7.63% 10/37 7,615,000 490,258 418,543 366,896
7.70% 7.85% 04/37 9,041,900 6,115,991 6,147,898 6,147,387
8.25% 8.25% 09/36 3,272,600 2,833,950 2,833,950 2,906,252
8.25% 8.25% 09/37 9,934,800 1,039,116 1,042,892 1,322,559
--------- --------- ---------
Total GNMA Construction Loans $15,599,025 15,051,454 15,477,283
* Permanent mortgage maturity date.
</TABLE>
<TABLE>
<CAPTION>
FNMA Securities
(11.3%) Interest Maturity Commitment Face Amortized Value
Rates Date Amount Amount Cost
--------- ------- --------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Single family 7.00% 05/26-09/26 $ 5,590,702 5,639,153 5,471,026
7.50% 07/24-01/27 22,784,875 23,197,031 22,788,435
8.00% 05/25-10/26 41,427,681 41,616,946 42,230,343
8.25% 10/21 251,454 248,658 258,526
8.50% 08/21-10/26 23,034,536 23,496,124 23,883,934
9.00% 01/24 1,538,949 1,614,292 1,623,111
----------- ----------- ---------
94,628,197 95,812,204 96,255,375
------------ ---------- ----------
- ------------------------------------------------------------------------------------
Multi-family 7.63% 04/12 $1,488,900 0 0 7,342
7.75% 04/12 1,110,800 0 0 28,680
7.88% 02/13-04/27 4,222,900 0 0 30,225
8.00% 07/13 785,557 0 0 7,191
8.00% 11/19-05/20 7,315,202 7,265,556 7,640,584
8.13% 05/20 8,471,806 8,406,102 8,769,727
8.25% 03/14-07/28 6,124,232 0 0 264,456
8.25% 06/08 1,183,000 1,157,196 1,230,320
8.50% 08/06-05/12 2,850,541 0 0 96,440
8.63% 09/06 778,085 768,539 815,610
8.75% 09/25 10,939,000 10,939,000 11,420,316
8.88% 09/25 7,342,000 4,952,843 4,960,650 5,375,008
9.00% 08/21 1,138,553 0 0 34,187
9.13% 09/15 4,285,371 4,246,044 4,619,630
9.13% 05/22 551,375 0 0 19,203
9.13% 07/12 8,804,176 8,804,176 9,420,469
9.25% 06/18-09/26 7,027,074 6,976,759 7,675,234
9.75% 02/23 1,995,360 1,970,470 2,194,895
----------- ---------- ----------
55,751,917 55,494,492 59,649,517
----------- ----------- ----------
Total FNMA Securities $150,380,114 151,306,696 155,904,892
----------- ----------- -----------
</TABLE> <PAGE>
<PAGE>16
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
FHLMC Securities Interest Maturity Face Amortized Value
(3.4%) Rates Date Amount Cost
-------- -------- ------ --------- -----------
<S> <C> <C> <C> <C> <C>
Single family 7.00% 02/26 $ 1,381,330 1,391,603 1,355,646
7.50% 11/03-11/26 10,078,945 10,178,078 10,154,294
8.00% 06/24-11/26 12,979,777 13,153,086 13,213,008
8.25% 12/22 666,468 662,067 685,629
8.50% 07/24-06/25 10,079,004 10,161,719 10,456,967
9.00% 03/25 2,285,766 2,323,607 2,415,055
---------- ---------- ----------
37,471,290 37,870,160 38,280,599
- ------------------------------------------------------------------------------
Multi-family 8.00% 02/09 8,709,319 8,723,037 8,883,505
---------- ---------- ----------
Total FHLMC Securities $46,180,609 46,593,197 47,164,104
----------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Local Initiatives
(11.3%) Interest Maturity Commitment Face Amortized Value
Rates Date Amount Amount Cost
------- ------- --------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Multi-family 8.00% 12/23-05/25 5,963,013 5,941,699 5,889,375
8.38% 02/07 $ 995,894 995,894 1,022,779 984,569
8.50% 01/05 1,016,160 0 0 37,387
8.63% 01/08-09/12 1,254,849 0 0 25,297
8.63% 06/25 1,452,806 1,452,806 1,461,231
9.13% 05/17 711,710 717,704 740,916
9.50% 12/11-04/24 3,130,806 3,150,773 3,287,346
---------- ---------- ----------
Total Local Initiatives 12,254,229 12,285,761 12,426,121
---------- ---------- -------------
Total Long-term Investments $1,265,867,349 1,269,614,906 1,290,832,555
</TABLE> <PAGE>
<PAGE>17
SCHEDULE OF PORTFOLIO INVESTMENTS
<TABLE>
<CAPTION>
Short-Term Investments (6.4%)
Interest Face Amortized
Description Rates Amount Cost Value
- ----------- -------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Repurchase Agreement
NationsBank Corp.,
due 1/2/97 5.25% $ 4,100,000 4,100,000 4,100,000
--------- --------- ---------
4,100,000 4,100,000 4,100,000
- ----------------------------------------------------------------------------
Commercial Paper
NationsBank Corp.,
due 1/6/97 5.40% 5,000,000 4,996,250 4,996,250
Washington Gas Light,
due 1/6/97 5.35% 5,000,000 4,996,285 4,996,285
Prudential Funding
Corp., due 1/16/97 5.31% 5,000,000 4,988,938 4,988,938
Morgan Stanley Group,
due 1/17/97 5.33% 5,000,000 4,988,156 4,988,156
American General Corp.,
due 1/17/97 5.32% 5,000,000 4,988,178 4,988,178
Associates Corp. NA,
due 1/31/97 5.32% 5,000,000 4,977,833 4,977,833
CIESCO LP, due 2/3/97 5.28% 5,000,000 4,975,800 4,975,800
Transamerica Finance,
due 2/12/97 5.30% 5,000,000 4,969,083 4,969,083
Corporate Receivable,
due 2/14/97 5.30% 5,000,000 4,967,611 4,967,611
General Reinsurance Corp.,
due 2/14/97 5.31% 5,000,000 4,967,550 4,967,550
American Express Credit
Corp., due 2/20/97 5.34% 5,000,000 4,962,917 4,962,917
Bear Stearns Cos, Inc.,
due 2/25/97 5.30% 5,000,000 4,959,514 4,959,514
General Electric Capital
Corp., due 2/26/97 5.27% 5,000,000 4,959,011 4,959,011
Equitable Resources,
due 2/27/97 5.32% 5,000,000 4,957,883 4,957,883
Merrill Lynch & Co.,
due 2/28/97 5.35% 5,000,000 4,956,903 4,956,903
Ford Motor Credit Corp.,
due 3/31/97 5.34% 5,000,000 4,933,992 4,933,992
------------- ---------- ----------
80,000,000 79,545,904 79,545,904
------------- ---------- ----------
- ----------------------------------------------------------------------------
Bankers Acceptance
SunTrust Banks, Inc.,
due 3/4/97 5.30% 5,000,000 4,954,359 4,952,899
----------- --------- ---------
5,000,000 4,954,359 4,952,899
----------- --------- ---------
Total Short-term Investments $ 89,100,000 88,600,263 88,598,803
------------ ---------- ----------
Total Investments $1,354,967,349 1,358,216,169 1,379,431,358
-------------- ------------- -------------
/TABLE
<PAGE>
<PAGE>18
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
INVESTMENT INCOME:
<S> <C>
Interest:
FHA mortgages $34,794,157
FHA construction loans 17,793,649
GNMA securities 25,634,688
GNMA construction loans 970,685
FNMA securities 9,354,031
FHLMC securities 3,158,055
Local initiatives 1,088,880
Short-term investments 6,226,693
Discount and (premium)
amortization and other
income, net (764,278)
----------
Total income 98,256,560
----------
EXPENSES:
Salaries and fringe benefits 3,402,914
Legal fees 245,133
Consulting fees 100,480
Auditing and tax accounting fees 80,325
Insurance 147,048
Marketing and sales promotion 434,105
Program development 249,417
Trustee expenses 28,832
General expenses 1,134,095
---------
Total expenses 5,822,349
---------
Investment income - net 92,434,211
----------
Net realized gain on sale
of investments 748,269
Net change in unrealized
appreciation and (depreciation)
on investments (note 4) (25,991,014)
------------
Net loss on investments (25,242,745)
------------
Net increase in net assets
resulting from operations $67,191,466
-----------
See accompanying notes to
financial statements.
/TABLE
<PAGE>
<PAGE>19
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Years ended December 31, 1996 and 1995
Increase (Decrease) in
Net Assets from Operations 1996 1995
- --------------------------- ---- ----
<S> <C> <C>
Investment income - net $92,434,211 80,933,040
Net realized gain on sale of investments 748,269 269,303
Net change in unrealized appreciation
and (depreciation) (25,991,014) 105,054,153
------------- -----------
Net increase in net assets
resulting from operations 67,191,466 186,256,496
------------ -----------
Distributions paid to participants
or reinvested from investment
income - net (91,992,173) (80,582,576)
------------ -----------
Increase in net assets from share
transactions: 1996 1995
- --------------------------------- ---- ----
Proceeds from the sale of 186,419
and 57,062 units of participation
in 1996 and 1995, respectively 198,302,502 59,904,702
Dividend reinvestment of 73,296
and 64,132 units of participation
in 1996 and 1995, respectively 78,074,306 68,442,605
Payments for redemption of 32,866
and 2,337 units of participation
in 1996 and 1995, respectively (35,306,406) (2,391,945)
------------ -----------
Net increase from share transactions 241,070,402 125,955,362
------------ -----------
Total increase 216,269,695 231,629,282
------------ -----------
Net assets at beginning of period 1,166,893,471 935,264,189
------------- -------------
Net assets at end of period $1,383,163,166 1,166,893,471
-------------- -------------
See accompanying notes to financial
statements.
/TABLE
<PAGE>
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The American Federation of Labor and Congress of Industrial Organizations
(AFL-CIO) Housing Investment Trust (the Trust) is a common law trust created
under the laws of the District of Columbia and is registered under the
Investment Company Act of 1940 as a no-load, open-end investment company. The
Trust has obtained certain exemptions from the requirements of the Investment
Company Act of 1940 which are described in the Trust's prospectus.
Participation in the Trust is limited to labor organizations and eligible
pension, welfare, and retirement plans which have beneficiaries who are
represented by labor organizations.
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Investments are presented at value. Value determinations are summarized by
specific category of investment as follows:
Long-term investments consisting of permanent mortgages, mortgage-backed
securities, construction loans and participation certificates are valued using
published prices or dealer bids, supported by the present value of the
projected cash flows, discounted using market-based discount and prepayment
rates, developed individually for each security. The market-based discount
rate is composed of a risk-free yield (i.e., a U.S. Treasury Note with a
weighted average life comparable to the security being valued) adjusted for an
appropriate risk premium. The risk premium reflects actual premiums in the
marketplace over the yield on U.S. Treasury securities of a comparable risk
and maturity to the security being valued. On loans for which the Trust
finances the construction and permanent mortgages, value is determined
considering funded and unfunded commitment amounts for the term of the
construction loan plus the permanent mortgage loan. For construction only
loans, the outstanding principal balance of the loan is used to approximate
value, assuming no decline in credit quality.
Short-term investments consisting of repurchase agreements, commercial
paper and banker acceptances that mature less than sixty days from the balance
sheet date are valued at amortized cost, which approximates value. Short-term
investments that mature more than sixty days from the balance sheet date are
valued at the last reported sales price on the last business day of the month
or the mean between the reported bid and ask price if there was no sale.
Short-term investments maturing more than sixty days from the balance sheet
date for which there are no quoted market prices are valued to reflect current
market yields for securities with comparable terms and interest rates.
Additional information relative to investment terms and credit risks are
described more fully in the Trust's prospectus.
FEDERAL INCOME TAXES
The Trust's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and to distribute
all of its taxable income to its shareholders. Therefore, no federal income
tax provision is required.
The total cost of the portfolio of investments for federal income tax
purposes approximates the cost of all investments for financial statement
purposes.
DISTRIBUTIONS TO PARTICIPANTS
At the end of each calendar quarter (March 31, June 30, September 30, and
December 31), pro rata distribution is made to participants of the net
investment income earned during the preceding three-month period. Amounts
distributable, but not disbursed as of the balance sheet date are classified
as income distribution payable.
Participants fully redeeming their units of participation are paid their
pro rata share of undistributed net income accrued through the month-end of
redemption.
The Trust offers an income reinvestment plan which allows current
participants to automatically reinvest their income distribution into Trust
units of participation. Total reinvestment of distributable income
approximated 85 percent for the year ended December 31, 1996.
<PAGE>
<PAGE>21
NOTES TO FINANCIAL STATEMENTS
INVESTMENT INCOME
Interest income is recognized on an accrual basis. Commitment fees, points
and other discounts or premiums resulting from the funding or acquisition of
mortgage loans or mortgage-backed securities are accounted for as an
adjustment to the cost of the investment and amortized over the estimated life
of the mortgage loan or mortgage-backed security using the effective interest
method of amortization. Realized gains and losses from investment
transactions are recorded on the trade date using an identified cost basis.
(2) TRANSACTIONS WITH AFFILIATES
During the year ended December 31, 1996, certain members of the Trust's staff
provided services to the AFL-CIO Building Investment Trust, a Maryland Group
Trust managed by a Maryland state bank insured by the Federal Deposit
Insurance Corporation. The AFL-CIO has granted permission to use its name.
The total cost of these services to the Trust and related expenses, for the
year ended December 31, 1996, amounted to $1,084,885. The Trust was
reimbursed for $777,954 of these costs with the remaining amount of $306,931
included in the accompanying financial statements as accounts receivable.
(3) COMMITMENTS
The assets of the Trust are invested in short-term investments until they are
required to fund commitments for construction loans, mortgage-backed
securities, participation certificates or permanent mortgages. At December
31, 1996, the Trust had remaining unfunded commitments of approximately
$335,400,000 to fund construction and permanent mortgages and other
investments. The Trust is required to maintain a segregated account of
securities in an amount no less than the total unfunded commitments less
short-term investments.
(4) INVESTMENT TRANSACTIONS
A summary of long-term investment transactions, at amortized cost, for the
separate instruments included in the Trust's investment portfolio for the year
ended December 31, 1996, follows:
<TABLE>
<CAPTION>
Investment
Transactions FHA FHA Construc- GNMA GNMA Construc- FNMA FHLMC Local
Mortgages tion Loans Securities tion Loans Securities Securities Initiatives
--------- ------------- ---------- ------------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
January 1,
1996 $391,182,933 193,669,712 325,461,531 9,808,472 90,406,042 37,970,039 12,731,521
Purchases
and construc-
tion loan
advances, net
of discounts 41,307,042 169,051,104 156,000,339 12,944,080 77,612,636 13,540,622 -
Amortization
of discounts
(premiums) (378,468) (1,337,608) 4,732,084 295,015 2,323,764 184,250 21,243
Transfers 119,081,415 (119,081,415) 7,984,399 (7,984,399) - - -
Principal
Reductions (84,078,056) (15,366,145)(143,851,069) (11,714) (19,035,746) (5,101,714) (467,003)
------------ ----------- ----------- ---------- ------------ ----------- -----------
Balance $467,114,866 226,935,648 350,327,284 15,051,454 151,306,696 46,593,197 12,285,761
December
31, 1996
</TABLE>
For the year ended December 31, 1996, the changes in gross unrealized
appreciation and depreciation in the value of investments were:
Unrealized appreciation $ 49,774,940
Unrealized depreciation (75,765,954)
------------
Net unrealized depreciation change $(25,991,014)
As of December 31, 1996, the accumulated unrealized appreciation of
securities was $21,216,189; accumulated undistributed net realized loss on
investment transactions totaled $17,914.
<PAGE>
<PAGE>22
(5) PARTICIPANTS' EQUITY
Participants' equity consisted of the following at December 31, 1996:
Amount invested and reinvested by current participants $1,361,394,640
Excess of redemption over issue price for units
of participation (222,251)
Accumulated unrealized appreciation in the value of
investments 21,216,189
Accumulated undistributed net realized loss
on investments (17,914)
Accumulated undistributed investment income - net 792,502
--------------
$1,383,163,166
--------------
(6) RETIREMENT AND DEFERRED COMPENSATION PLANS
The Trust participates in the AFL CIO Staff Retirement Plan, which is a multi
employer defined benefit pension plan, covering substantially all employees.
This plan was funded by employer contributions, at rates approximating 17.7
percent of employees' salaries during the six months ended June 30, 1996, and
16.9 percent of employees' salaries during the six months ended December 31,
1996. The total Trust pension expense for 1996 was approximately $475,000.
The Trust also participates in a deferred compensation plan, referred to
as a 401(k) plan, covering substantially all employees. This plan permits an
employee to defer the lesser of 10 percent of their annual salary or the
applicable IRS limit. The Trust matches dollar-for-dollar the first $1,150 of
an employee's contributions. The Trust's 401(k) matching contribution expense
for 1996 was approximately $52,000.
<PAGE>
<PAGE>23
SUPPLEMENTAL INFORMATION
<TABLE>
<CAPTION>
Selected Per Share Data and Ratios For the Years Ended
December 31, 1996, 1995, 1994, 1993 and 1992
Per Share Data 1996 1995 1994 1993 1992
------ ------ ------- ------ -----
<S> <C> <C> <C> <C> <C>
Investment income $ 84.10 86.50 87.13 91.83 87.28
Expenses (4.99) (5.38) (5.47) (5.90) (5.74)
------ ------ ------- ------ ------
Investment income - net 79.11 81.12 81.66 85.93 81.54
Distributions from
investment income
- net (78.76) (80.77) (81.66) (83.64) (81.54)
Distributions from
realized gains
on investments - - - (2.29) -
Net asset value:
Beginning of period 1,098.53 991.40 1,102.58 1,086.40 1,106.90
Net realized and
unrealized gain
(loss) on invest-
ments. Net in-
crease (decrease)
in net asset value (25.55) 107.13 (111.18) 16.18 (20.50)
---------- ------- --------- ------- --------
End of period $1,072.98 1,098.53 991.40 1,102.58 1,086.40
Ratios 1996 1995 1994 1993 1992
------ ------ ------- ------ -------
<S> <C> <C> <C> <C> <C>
Ratio of expenses to
average net assets .5% .5% .5% .5% .5%
Ratio of net investment
income to average net
assets 7.3% 7.6% 7.8% 7.5% 7.4%
Portfolio turnover rate 20.3% 31.2% 27.5% 24.2% 22.1%
Number of units outstanding
at end of period 1,289,082 1,062,234 943,378 767,101 609,295
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>24
INDEPENDENT AUDITORS' REPORT
To the Participants and Trustees of the American Federation
of Labor and Congress of Industrial Organizations Housing
Investment Trust:
We have audited the accompanying statement of assets and liabilities of
the American Federation of Labor and Congress of Industrial Organizations
Housing Investment Trust, including the schedule of portfolio investments, as
of December 31, 1996, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years
in the period then ended, and the selected per share data and ratios for each
of the five years in the period then ended. These financial statements and
per share data and ratios are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial statements and
per share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
and per share data and ratios are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included verification
by examination, or confirmation by correspondence with the custodians, of
investments owned at December 31, 1996. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the
financial position of the American Federation of Labor and Congress of
Industrial Organizations Housing Investment Trust as of December 31, 1996, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the selected
per share data and ratios for each of the five years in the period then ended,
in conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
January 29, 1997<PAGE>
<PAGE>25
TRUSTEES
- --------------------------
MR. RICHARD RAVITCH, CHAIRMAN MR. WALTER KARDY
Chairman* President
Ravitch, Rice and Company Specialty Contractors
Management, Inc.
MR. JOHN J. SWEENEY
President* MR. GEORGE LATIMER
AFL-CIO Chief Executive Officer
National Equity Fund
MR. RICHARD L. TRUMKA
Secretary-Treasurer MR. H.D. LAVERE
AFL-CIO President
Michigan Carpentry, Inc. &
MS. LINDA CHAVEZ-THOMPSON Thunderbird Homes
Executive Vice President
AFL-CIO Mr. A.L. "MIKE" MONROE
President
MR. ARTHUR A. COIA International Brotherhood of
President Painters & Allied Trades
Laborers' International Union
of North America MR. JACK F. MOORE
Secretary
MR. TERRENCE R. DUVERNAY International Brotherhood of
Legg Mason Public Finance Electrical Workers
MR. ALFRED J. FLEISCHER MS. MARLYN J. SPEAR
Chairman Investment Coordinator
Fleisher-Seeger Construction Milwaukee & Vicinity Building
Company Trades United Pension Trust Fund
MR. ROBERT A. GEORGINE MR. TONY STANLEY
President Vice President*
Building & Construction TransCon Builders, Inc.
Trades Department, AFL-CIO
MR. FRANK HANLEY MS. PATRICIA F. WIEGERT
President Retirement Administrator
International Union Contra Costa County Employees'
of Operating Engineers Retirement Association
MR. FRANK HURT
President
Bakery, Confectionery & Tobacco
Workers International Union
MR. JOHN T. JOYCE *Executive Committee Members
President
International Union of Bricklayers
and Allied Craftsworkers<PAGE>
<PAGE>26
EXECUTIVE OFFICERS REGIONAL OFFICES
[photograph of Stephen Coyle] GREGORY DYSON
STEPHEN COYLE Northeast Regional Executive
Chief Executive Officer 1717 K Street, N.W.
Suite 707
[photograph of Michael M. Arnold] Washington, D.C. 20006
MICHAEL M. ARNOLD (202) 331-8055
Director of Investor Relations
PHIL COUTURE
[photograph of Helen R. Kanovsky] Midwest Regional Executive
HELEN R. KANOVSKY 5660 Southwyck Boulevard
General Counsel Suite 100
Toledo, Ohio 43614
[photograph of James D. Campbell]
JAMES D. CAMPBELL JEFFREY GREENDORFER
Chief Investment Officer Western Regional Executive
650 California Street, 9th Floor
San Francisco, CA 94108
415/433-3044
COUNSEL OF RECORD
Swidler & Berlin, Chartered
Washington, D.C.
CERTIFIED PUBLIC ACCOUNTANTS
KPMG Peat Marwick LLP
Washington, D.C.
INVESTMENT ADVISER
Wellington Management Company
Boston, Massachusetts
VALUATION CONSULTANTS
Chartered Capital Advisers, Inc
New York, New York
William C. Tutt, who served the AFL-CIO Investment
Program from its earliest days in the 1960's, has
retired from his position as the Trust's Financial
Manager. Through the dedication and skill that he
brought to his work, he was instrumental in making
the Housing Investment Trust what it is today.
