Frazier Revitalization Inc.

“The board meets periodically to review financial statements and to provide guidance and governance for FRI.”

“Process used by management or governing body to review Form 990: A draft of Form 990 is emailed to all board members for their review. The final version will be provided to each board member prior to filing.”

“Description of process to monitor transaction for conflicts of interest: A questionnaire is provided to each board member to determine conflicts of interest. Each board member fills out and returns questionnaire. The officer will evaluate for potential or stated conflicts, and they are disclosed in the financial statements and Form 990. If a conflict is found to exist, the person or persons to which the conflict applies are prohibited from voting on any matters to which conflict relates by the board.”

“Officers & positions FRI annual is approved by the board. Part of the annual budget is the salary of the President/CEO.”

“Conflict of interest policy and financial statements to general public: FRI provides the conflict of interest policy, financial statements and governing documents upon request.”

“The Organization continued to strategically assemble land in accordance with the comprehensive revitalization plan adopted by the City of Dallas. FRI, continues to work toward a planned development at the corner of Hatcher (now Elsie Faye Heggins) and Scyene to be the catalyst transit oriented development (TOD) as prescribed in the comprehensive revitalization plan of the City and community, and TOD study also adopted by the City. In August 2014, the Dallas Development Fund (DDF) awarded a $15,000,000 New Markets Tax Credit (NMTC) allocation to the Organization for the construction of an approximately 44,000 square foot medical facility in the Frazier area. The transaction closed in August 2014, with the DDF and JPMorgan Chase, N.A. (Chase). As the NMTC Equity investor, Chase provided approximately $4.89 million in NMTC Equity. Chase provided a $11.7 term loan (Senior Loan) to the Organization, part of which was used to fund a $10.45 million "Leverage Loan" from the Organization to Chase Investment Fund (CIF), a special purpose investment fund entity. Chase is responsible for the management of CIF. The NMTC Equity and Leverage Loan was combined to capitalize the CIF, which in turn made a Qualified Equity Investment (QEI) of $15 million into a subsidiary of DDF ("Sub-CDE"). DDF, through the aforementioned Sub-CDE, made two Qualified Low Income Community Investment (QLICI) loans to an affiliate of the Organization. The affiliate of the Organization, Hatcher at Scyene Title Holding Company, is a Qualified Active Low-Income Community business. Construction of the facility was completed in April 2015 and opened in May 2015. The Organization also continues its community outreach as part of the overall comprehensive redevelopment plan. In 2015 the Organization branded the initiative as Partners in Progress, and laid a platform for an out of school time network of provider organizations, to provide quality out of school time programming to youth in the Frazier neighborhoods.”

“Just a note on presentation, on the audited financial statements deferred financing costs are capitalized and amortized on a straight line basis over the life of the loan. Deferred financing costs, net of accumulated amortization are netted against Notes Payable. This presentation change is a result of the FASB issued Accounting Standards Update 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentaton of Debt Issuance Costs. The amendments require the debt issuance costs related to recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability. This new requirement was presented on the audited financial statements in 2016, and 2015 was adjusted for consistent presentation. On this tax return, the presentation is consistent with the audited financial statements, but the tax return for 2015 was not adjusted.”