Telacu Housing El Monte II Inc.

“Telacu el encanto is managed by telacu residential management, inc., a professional property management company. Telacu residential management, inc. Has a project owner's and management agent's certification for multifamily housing projects with the u.s. Department of housing and urban development. Under this certification, hud has approved telacu residential management, inc. To manage the telacu el encanto project. The management contract encompasses the day to day operations of the project including, but not limited to, collection of rents, maintenance of facilities, supervision of staff, and ongoing support for both the owners and tenants as needed in order to establish a safe, sanitary and affordable environment. None of the officers or directors listed in part vii are compensated by telacu residential management, inc.”

“The directors of the corporation shall, at all times, be limited to individuals who have been designated by telacu (sponsor). In the event the aforesaid designation of the sponsor is withdrawn, then such shall constitute automatic resignation as a director of the corporation.”

“Bylaws, including a bylaw fixing or changing the authorized number of directors may be adopted, amended or repealed by the board of directors subject to the prior written approval of telacu.”

“The auditing firm sends a draft of the return to the management company. The management company forwards a copy of the return to each board member for their comments prior to filing. Additional meetings will occur if necessary.”

“Review the policy on a regular basis with the board of directors to make sure that everyone is in compliance.”

“The compensation policy is determined based upon occasional compensation studies performed by an independent compensation consultant.”

“The form 990 and all related financial and policy information are made available to the public upon written request.”

“Average number of hours worked all of the officers, directors, and employees listed in part vii, section a perform similar duties and have similar responsibilities for related organizations as they do for this organization. That is, they make major decisions and provide management services. While the duties and responsibilities are similar, those listed in part vii, section a do not spend the same amount of time on each type of related entity. The hours worked per week are not recorded for officers; 48 hours is being reported as the amount worked for related organizations. While 48 hours per week is listed, the officers often work more than 48 hours per week.”

“Additional compensation disclosure--michael lizarraga in addition to the $25,000 401(k) plan, the president will receive an executive retirement benefit payable upon retirement of $175,000 a year for life. As of 12/31/2019, mr. Lizarraga was 25% vested in the benefit.”

“Additional compensation disclosure--paul samuel in addition to the $25,000 401(k) plan, mr. Samuel will receive a deferred compensation lump sum payment with a current value of approximately $98,724. As of 12/31/2019 mr. Samuel was 100% vested.”

“Oversight of auditing function the management company receives a copy of the audit. Prior to the finalization of the audit, a copy of the audit is given to all of the board members for their comments. When the audit is up for bid, the board discusses the relationship with the current auditors and makes a determination as to whether to maintain this relationship or change to a new auditing firm.”