Allies & Ross Management and Development Corporation

“At year end, three members of the governing body were employed by the housing authority of the city of pittsburgh, and four members of the governing body also served together as board members of clean slate e3, inc.”

“Allies and ross management functions are performed by hacp.”

“There are no sub-committees of the governing body”

“There is no formalized process for the review of the 990; however, the 990 is reviewed by the cfo of the hacp (who is also a board member of allies and ross) prior to being filed.”

“The governing documents and financial statements of the entity are available to the public upon request.”

“Allies and ross is completely under the control of the housing authority of the city of pittsburgh (hacp), and is monitored through hacp's policies and procedures, and therefore individual policy and procedures and reviews for this entity were not deemed necessary.”

“Allies and ross issues both short and long-term loans receivable as part of mixed financing transactions with hacp and private developers in order to facilitate the construction of public housing. Short-term notes receivable are issued to assist in pre-development activities, and are normally re-paid in full within a period of five years. Long-term notes are recorded initially at full value, and will be amortized evenly over their term, usually a period of 40 to 50 years. Interest accrues on these notes but is not due until maturity. It is recorded as loan interest income, but is written off immediately through bad debt expense, as collectability of the interest is unlikely. However, as of year end one long-term loan receivable is expected to be collected and therefore is not being amortized.”

“Allies and ross does not have a separate audit, but its records are included in the annual audit of hacp, as it is considered a component unit of hacp.”

“Armdc - addison terrace ii inc., armdc - addison terrace iii inc., armdc - larimer - east liberty i inc. (entities) hereby elect under section 168(h)(6)(f)(ii) to not be treated as tax-exempt entities for the purposes of applying the rules in section 168(h)(6). The entities are 100% subsidiaries of allies and ross management and development corporation, a nonprofit entity under section 501(c)(3). The purpose of the election is not to treat the property owned by the entities as tax-exempt use property, and to have any gain recognized by its tax-exempt parent (allies and ross management and development corporation) on any disposition of an interest in the entities (and to treat any dividends or interest received or accrued from the taxpayer) as unrelated business taxable income under code section 511.”