Foundation for Eldercare

“Jordan M Halperin, our newest trustee, is the grandson of John Berg, our executive director”

“The document is circulated electronically to all Trustees to be reviewed and vetted before a final draft is filed and published”

“All persons are advised that such documents are available by notice printed on our website”

“Deborah A Wissman is the married name of Deborah A Begatto, a person previously identified as a trustee. Ms. Wissman's name is also shown replacing "Begatto" on Schedule "L"; Part II, line (1)”

“Prior period from 990 showed debt to Rocco Crescenzo at $340,418. That figure was incorrect. The correct opening balance was $481,418”

“Supplies & Materials- $8,010. (Mgmt & Gen) Appraisal Fees- $2,020 (Mgmt & Gen) Other Housing Repair & Maintenance- $23,805 of which $11,877 (Prog Svc Exp) $11,928 (Mgmt & Gen) Real Estate Taxes- $365,536(Mgmt & Gen) Total: $399,371 Prg Svc Exp: $11,877 Mgmt & Gen: $387,494 Foundation had been in litigation with the several PA counties in which it owns and operates senior housing for confirmation of its entitlement to exemption from real estate taxes. All county boards of assessment agreed to abide by a final decision in the ongoing litigation between Foundation and the Dauphin County Board of Adjustment. On May 8, 2018 the Commonwealth Court of Pennsylvania handed down its decision confirming the denial by the Board of Adjustment of Foundation's right to a real estate tax exemption. The Supreme Court of Pennsylvania declined to review the decision and, thus, Foundation's obligation to pay delinquent real estate taxes in the amount of $365,536 became certain. Foundation has created a liability in that amount and charged the liability to non-programmatic expenses since programmatic expenses are on a cash basis and non-programmatic expenses are on an accrual basis. Approximately $240,000 of the total due will be paid in monthly payments of $10,000 by agreement with the collection agent for these taxes. The balance, $126,000, will be paid in September 2019. Real estate taxes for tax year 2020 and 2021 will be paid the year following their statutory payment with interest and fees. Foundation will pay it s 2022 real estate taxes when due since the note payments referred above will be completed. Predicated on current calculations, Foundation's low-income, senior leasing will operate at an annual loss of about $85,000 thereafter. As described elsewhere in this document, with the funds provided under section 524 of the USDA funding Act, Foundation will begin the business of creating low income residential lots and from those lots, construct and sell houses to low-income, USDA qualified, home buyers in Lower Delaware and Somerset County, MD. It will use the profits from this activity, currently estimated to be about $30,000 per month commencing in June 2019, to pay the delinquent and then current real estate taxes incurred in its senior home leasing operation. In August 2019 Foundation intends to apply to all Chester, Dauphin, Lancaster, Montgomery and York counties (all in PA) for exemption from real estate taxes which would be levied in TY 2020 and thereafter predicated on alterations to its leasing operation which it must affect in order to respond to the Court's findings in the previous litigation. Foundation has decided to continue its senior leasing operations at an annual loss of $85,000 in the event it is unsuccessful in its applications in August 2019 and to fund those losses from the expected, annual income of $360,000 from its creation, construction and sale of low-income homes with section 524, USDA financing. Foundation currently has land sufficient for 103 low income, new homes in Lower Delaware and Somerset County, MD. It also owns and is in the process of completing subdivision engineering for another 176 homes in Cecil County, MD. Thus, Foundation estimates it has a four-year inventory of land qualified for USDA funding and believes it can increase that inventory at an annual pace at least equal to its currently projected annual construction and sales estimates.”

“$3,373 Prior period Adjustment”