Westhab Inc.

“Minutes of the board meetings are written and adopted by the board at subsequent meetings. Actions of the executive committee are written and ratified by the full board at subsequent meetings. The executive committee, which consists of the officers of the corporation who also serve on the board of directors, has authority to act for the board between board meetings.”

“The form 990 is reviewed and approved by the organization's senior vice president-finance and administration, chief operating officer and chief executive officer and is then distributed to board members for review prior to filing.”

“Conflict of interest policy requires annual disclosure of conflicts by board members and key employees. In addition, if and when business transactions involving interested persons come before the board, the appropriate directors recuse themselves and leave the meeting during any discussion of the business in question. Robert petrocelli, 1st vice chair, acts as broker for several of westhab's employee benefit programs and earns a standard industry commission directly from the provider. This engagement precedes mr. Petrocelli's tenure on the board and is duly disclosed and handled in accordance with westhab's conflict of interest policy.”

“Westhab engaged an outside compensation consultant in 2022 to conduct a compensation analysis for the ceo and each member of the leadership team. An outside consultant will be engaged at least every three years. Annually, the ceo is requested by the chair of the board to provide the compensation committee with a recommendation and justification for a compensation increase, decrease or a recommendation to remain the same. The compensation committee reviews the ceo's recommendation and the analysis from the compensation consultant. The ceo determines the compensation of officers and key employees based on comparability information and performance reviews in conjunction with the organization's human resource vice president and input from the compensation committee of the board.”

“The organization's annual report is distributed to all funders and donors and is available through our website and upon request. Our governing documents and conflict of interest policy are distributed upon request to all funders and donors and are available upon request to members of the public.”

“Housing services and operations: westhab's mission is: building communities. Changing lives. Westhab builds communities by creating high-quality affordable and supportive housing. Westhab changes lives by delivering the services and support that people and communities need to thrive. The sum of these efforts is comprehensive community development impact. Westhab was founded in 1981 to address the affordable housing crisis in westchester county. Since then, it has become westchester's largest provider of housing and services for the homeless and its largest nonprofit developer of affordable and supportive housing. Westhab has also grown a substantial portfolio in new york city where we deliver all aspects of our mission - permanent affordable and supportive housing, transitional housing, employment services, and youth services. Since westhab's founding, it has built 1,094 affordable housing units, moved 10,749 households from homelessness into affordable housing, placed 11,837 people into employment, and delivered services to over 10,000 homeless and at-risk youth. Westhab currently operates 4,043 transitional, affordable, and supportive homes across westchester and new york city. In 2023, westhab placed 898 homeless households into permanent housing and placed 2,209 job seekers into employment. Westhab continuously evolves our service models to develop new solutions and meet presenting community needs. We advocate for our tenants and clients and work to evolve systems to deliver the best outcomes for the people and communities that we proudly serve.”

“Shelter operations: westhab has developed a unique capacity to deliver effective programs designed to help families and singles experiencing homelessness secure permanent housing and get back on their feet. Westhab has adapted the housing first concept to meet local needs, working to ensure that homelessness is a brief and one-time experience. Westhab helped to create the homeless system in westchester county, innovating new solutions like the emergency housing apartment program and creating full-service shelters that provide individualized services to meet each client's needs. Westhab's family shelters minimize school interruptions for students and provide comprehensive out-of-school time programs and on- site childcare support. Over the years, westhab, through its partnership with the westchester county department of social services, has successfully reduced the need for homeless facilities in westchester, closing two shelters and shifting our focus to developing permanent affordable and supportive housing. Westhab participates actively in the westchester continuum of care for the homeless partnership, which has developed hundreds of units of permanent supportive housing for special needs populations. Westhab's portfolio in new york city has grown substantially in recent years. At year end 2023, westhab operated 19 transitional housing programs in the city serving about 2,500 households. Each program is customized to best meet the needs of its tenants, which include singles, families with children, and adult families. In addition to developing comprehensive youth services programs in its family shelters to meet the myriad academic, enrichment and social needs of young people, westhab now also operates 7 community-based youth centers in yonkers (1), the bronx (3) and manhattan (3) to meet the needs of at-risk young people in distressed neighborhoods.”

“Employment services: westhab's employment services programs focus on job readiness training, job placement and job retention. We started this service with homeless residents in our shelters, then expanded to serving the larger community in mount vernon and yonkers by opening community resource centers in both communities. In 2016 we expanded our model to work with residents of our new york city homeless programs. In 2016 through a partnership with the city of new rochelle westhab opened the first job source referral center in downtown new rochelle, a one stop shop for community members to receive job readiness training, hard skill training, educational assistance, job placement assistance and job retention services. Westhab's community resource centers enable several thousand residents each year to access job-finding opportunities on the internet, upgrade resumes, obtain interview clothing, and practice interview techniques.”

“Affordable Low Income Housing Development: WESTHAB ACQUIRES PROPERTY AND DEVELOPS HOUSING, USING DIFFERENT FINANCING SOURCES AVAILABLE INCLUDING STATE AND FEDERAL FUNDS, LOW INCOME HOUSING TAX CREDIT FINANCING, AND PRIVATE DEBT FINANCING. WESTHAB PURCHASES VACANT LAND OR UNOCCUPIED BUILDINGS IN WESTCHESTER AND NEW YORK CITY AND FORMULATES A RESIDENTIAL DEVELOPMENT THAT MEETS AN EXISTING NEED IN THE COMMUNITY. WESTHAB ESTABLISHES A DEVELOPMENT TEAM THAT INCLUDES ARCHITECTS, ENGINEERS, ATTORNEYS, CONSULTANTS, AND A GENERAL CONTRACTOR THAT SERVE TO DESIGN AND BUILD THE QUALITY, AFFORDABLE HOUSING DEVELOPMENT. WESTHAB IS NEARING CONSTRUCTION COMPLETION ON SUMMIT ON HUDSON (FORMERLY KNOWN AS HUDSON HILL), A NEW 113-UNIT AFFORDABLE AND SUPPORTIVE RESIDENCE IN YONKERS. SUMMIT ON HUDSON INCORPORATES STATE-OF-ART GREEN TECHNOLOGIES AND WON A NEW YORK STATE / NYSERDA BUILDINGS OF EXCELLENCE AWARD FOR SUSTAINABLE DESIGN. THE BUILDING BUILDS UPON WESTHAB'S REAL ESTATE DEVELOPMENT EXPERIENCE AND WILL PROVIDE EXTENSIVE TENANT AMENITIES AS WELL AS RESOURCES TO THE LARGER COMMUNITY, INCLUDING A COMMUNITY BROADBAND NETWORK AND A PUBLIC SUSTAINABILITY EXHIBIT. SUMMIT IS EXPECTED TO OPEN IN EARLY 2024. IN TOTAL, INCLUDING PROJECTS CURRENTLY IN CONSTRUCTION, WESTHAB HAS DEVELOPED ABOUT 1,500 HOUSING UNITS AT AN INVESTMENT IN EXCESS OF $450,000,000.”

“PRIOR PERIOD ADJUSTMENT AND RESTATEMENT: Subsequent to the issuance of the Company's 2022 consolidated financial statements an error was identified resulting in a prior period adjustment as of January 1, 2022 and a restatement of the 2022 consolidated financial statements. The prior period adjustment and restatement was the result of clarity provided in ASU 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. Based on this guidance the Company determined that amounts previously recorded as net assets with donor restriction should no longer be released from restriction over the related compliance period. Additionally, the Company determined that the barriers to revenue recognition associated with certain capital grants have not been overcome and the amounts received should have been recorded as forgivable mortgage notes payable amounting to approximately $13,832,000. As a result, the Company has recorded a prior period adjustment and restated its 2022 consolidated financial statements as -13,831,649.”

“Other Changes in net assets due to the change in discount rate on financial instruments of $205,048.”

“76 Locust Hill GP, LLC (EIN: 85-2906405) is 100% owned by the tax-exempt entity, Westhab, Inc. As such, 76 Locust Hill GP, LLC is considered a tax-exempt controlled entity as defined in IRC Section 168(h)(6)(F)(ii)(II). 76 Locust Hill GP, LLC hereby elects, pursuant to IRC Section 168(h)(6)(F)(ii)(II), to have its tax-exempt shareholder treat as unrelated business income (under IRC 511) any dividends, interest or gain from sale of stock with respect to this controlled entity. This entitles this tax-exempt controlled entity to not be treated as a tax-exempt entity.”