Jm Apartments Inc

“All management duties such as tenant screening, fiscal management, janitorial, and facilities management are contracted for with the parent company, Gateway Healthcare, Inc.”

“Gateway Healthcare, Inc. (Gateway) is the sole corporate member of JM. Effective July 1, 2013, Lifespan Corporation (Lifespan) became the sole corporate member of Gateway.”

“The bylaws of JM confer certain reserved powers of Lifespan to provide it with the means of effective oversight, coordination and support of the system. Powers reserved to Lifespan include: to elect and remove trustees and to approve the election of and removal of certain officers. At each annual meeting of JM's Board of Trustees, a list is compiled of the names of those persons selected to serve as Trustees of JM so that it can be approved and submitted to Lifespan for ratification and election.”

“Lifespan has the responsibility for planning, directing, and establishing policy to assure the development and delivery of quality health and social services on an integrated, cost effective basis with each organization directly or indirectly owned or controlled by Lifespan. Powers reserved to Lifespan, in addition to those noted above, include: to approve amendment of the Articles of Incorporation and Bylaws and other Charter documents; strategic plans; to approve investment policies and any capital or operating budgets or material non-budgeted expenditures; and to authorize incurrence or guaranty of material indebtedness.”

“The preparation and filing of the Form 990 and supporting schedules is the responsibility of the Chief Financial Officer (CFO) of Gateway Healthcare, Inc. and Affiliates (Gateway). Preparation of the Form 990 is initiated by the Gateway Finance Department staff upon completion of the annual independent financial statement audit. A draft of the Form 990 is then provided to the Lifespan Tax Compliance Manager for further review and then provided to the organizations independent external accounting firm, KPMG. Once the draft Form 990 is complete, the Gateway CFO receives the return with all supporting worksheets and recommendations from KPMG for final management review. During the final management review, the Form 990 is provided to the CFO of Lifespan Corporation and Affiliates for feedback and any questions are discussed with KPMG, if necessary. Prior to filing Form 990 with the Internal Revenue Service, the CFO of Gateway will provide an electronic copy of the tax return to the Board and address the highlights of the organization for the year covered. Questions and comments from the Board to the CFO are then addressed prior to filing of the tax return. The Form 990 is then finalized to include any modifications based on comments of the Board and the Gateway CFO is authorized to file the Form 990.”

“Lifespan Corporation has a Conflict of Interest Policy that is applicable to all affiliates, including JM, and administered by Lifespan's Corporate Compliance Department as follows: Each designated person subject to Lifespan's conflict of interest policy is required to provide Lifespan with an initial disclosure statement and thereafter an annual statement attesting that: (i) the designated person has read and is familiar with this policy, and (ii) the designated person and, to the best of his/her knowledge, family members, have not in the past engaged in, are not presently engaging in, or plan to engage in, any activity which contravenes this policy.If, at any time during the course of employment or association, a designated person has reason to believe that an existing or contemplated activity may contravene this policy, the person shall submit a full written description of the activity to the Lifespan Compliance Officer or the Office of the General Counsel to seek a determination as to whether the contemplated activity does or does not contravene this policy. This requirement shall be acknowledged as part of the annual performance evaluation process. If the activity in question involves either the Chief Executive Officer, the Senior Vice President and General Counsel, or a Trustee, a full written disclosure must be made to, and a determination sought from, the Chairman of the Board of Directors of Lifespan Corporation.Annually, the Lifespan Compliance Officer shall review and report to the Lifespan Executive Corporate Compliance Committee and to the Lifespan Audit and Compliance Committee on the administration of this policy.Failure on the part of any designated person to comply with this policy, including failure to submit in a timely fashion the conflict of interest disclosure statement, will be grounds for removal from his/her position and/or termination of his/her employment with Lifespan.”

“The organization makes its governing documents, conflict of interest policies, financial statements, and Form 990 returns available upon request. The organization will furnish copies to people who come to the administrative office during normal business hours or request a copy by U.S. mail.”

“Refundable Advance = -$1899004”

“JM Apartments (JM) is organized for charitable purposes to provide handicapped persons with low income housing facilities and access to services which are specifically designed to meet their physical, social, and physiological needs and to promote their health, security, and happiness.”

“JM is organized for charitable purposes to provide elderly persons and handicapped persons with low income housing facilities and access to services which are specifically designed to meet their physical, social, and physiological needs and to promote their health, security, and happiness.”

“In 2014, JM elected to change its method of accounting related to an interest-free capital advance received from the United States Department of Housing and Urban Development (HUD). Previously, JM had recorded the capital advance within unrestricted net assets on the basis that the possibility of certain conditions imposed by HUD not being met was deemed to be remote. JM has elected to reclassify the HUD capital advance as a non-current liability. While the historical approach used was considered acceptable, management of JM believe that the change in accounting method is preferable and more appropriate in light of HUD's compliance requirements, as it recognizes the obligation to meet these requirements. As a result of the accounting methodology change, JM has recorded a non-current liability of $1,899,004, correspondingly reducing beginning unrestricted net assets by the same amount.”