San Diego Habitat for Humanity Inc

“The organization does not have a committee that has the authority to act on behalf of the governing board.”

“The board will review and discuss the 990 prior to filing the return.”

“Annually, the board secretary shall distribute a conflict of interest questionnaire to each director, officer, and executive director. Each interested person must complete and return the questionnaire in a timely manner. Any conflicts disclosed on the questionnaire shall be resolved according to the guidelines. An interested person shall make an appropriate disclosure of all material facts, including the existence of any actual or potential conflict of interest or ethical question, whenever such a situation arises. Such disclosure shall be made first to the chair of the board; provided, however, that if the chair has the potential conflict, disclosure shall be made to the executive director, who shall take the matter up with the remaining members of the executive committee of the board. The interested person shall be entitled to make a presentation to the board if he or she believes that the potentially conflicting interest does not, in fact, present a disqualifying conflict of interest. After the disclosure required of an interested person, and any presentation made to the board, a determination will be made as to the existence of a conflict of interest. Determination will be made on a case-by-case basis whether a conflict exists and, if so, the appropriate method for proceeding, in the sole reasonable discretion of the determining person or body. Factors the decision-making person(s) shall consider will include the proximity of the interested person's interest to the decision at issue, whether the interested person's interest is de minimis; the degree to which the interested person might personally benefit from the transaction at issue. If it is determined that an actual conflict of interest exists, then the matter can only be resolved by (i) the recusal of the interested person from any discussion or other involvement in the decision that is the subject of or affected by the conflict; or (iii) waiver by the board or executive director, under circumstances that are recorded in the minutes of the board or by memorandum to the board from the executive director, as appropriate, or (iii) if the transaction involves "self-dealing" as that term is used in california corporations code section 5233, then if the transaction is approved by a super-majority vote of the non-interested directors.”

“The process for determining compensation consists of reviewing comparable salaries for non-profit organization positions in construction or similar associations based in san diego county and approval by the board of directors.”

“The form 990 is published on the organization's website as well as the charity navigator and guidestar websites.”

“- governing documents are on file with the california secretary of state and can be accessed by the general public - the conflict of interest policy is available upon request. - audited financial statements are available to members of the public on the organization's website.”

“In april 2018, sdhfh participated in a new markets tax credit ("nmtc") financing transaction with other entities in order to procure financing for the construction of 16 homes 8 at comm22 in san diego, 5 on ballantyne street in el cajon and 3 on grossmont avenue in el cajon. The nmtc program permits corporate and individual taxpayers to receive a credit against federal income taxes for making qualified equity investments in qualified community development entities ("cde"). As a participant in this transaction, sdhfh invested $1,212,933 into hfhi nmtc leverage lender 2018, llc ("hfhi leverage lender"), consisting of cash and qualified construction-in-process. The hfhi leverage lender contributed its resources to twain investment fund 306, llc ("investment fund"), which received additional investment from u.s. Bancorp community development corporation ("bank") as the federal tax credit investor under the nmtc program. As part of the nmtc program, the investment fund invested in hfhi nmtc sub-cde iii, llc, a qualified cde. The cde deployed a loan to sdhfh in the amount of $1,786,082 at an annual interest rate of 0.679239% for the construction of homes in a qualified census tract for low income persons. Semi-annual interest-only payments are required through april 19, 2025. After april 19, 2025, sdhfh shall make semi-annual payments in an amount sufficient to fully amortize the remaining principal balance over twenty-three years. The loan proceeds are to be used solely in accordance with nmtc compliance requirements. The investment fund may be subject to tax credit recapture if the nmtc program compliance requirements are not met over a seven-year period. The ultimate holder of the above loan from the cde to sdhfh is the bank through its participation in the investment fund. In april 2025, the bank has the option to waive the payment of the debt by exercising its put option agreement. Under the terms of the put option agreement, the hfhi leverage lender has the option to purchase the bank's ownership interest in the investment fund. If the option is exercised it will effectively extinguish sdhfh's outstanding debt to the bank.”

“In november 2021, sdhfh entered into a new market tax credit ("nmtc") financing agreement with various other entities in order to procure financing for the construction of 15 homes - 5 in national city and 10 in escondido. The nmtc program permits corporate and individual taxpayers to receive a credit against federal income taxes for making qualified equity investments in qualified community development entities ("cde"). As a participant in this transaction, sdhfh invested $1,679,412 into hfhi nmtc leverage lender 2021, llc ("hfhi leverage lender"), consisting of cash and qualified construction-in-process. The hfhi leverage lender contributed its resources to twain investment fund 544, llc ("investment fund"), which received additional investment from u.s. Bancorp community development corporation ("bank") as the federal tax credit investor under the nmtc program. As part of the nmtc program, the investment fund invested in hfhi nmtc sub-cde iv, llc, a qualified cde. The cde is the conduit for accomplishing the nmtc program specifics of constructing and selling qualified housing properties to low income residents. Under the cde, sdhfh was able to secure a loan in the amount of $2,273,349 at an annual interest rate of 0.737931%. Semi-annual interest-only payments are required through november 5, 2028. After january 1, 2029, sdhfh shall make semi-annual payments in an amount sufficient to fully amortize the remaining principal balance over twenty-three years. The loan proceeds are to be used solely in accordance with nmtc compliance requirements. The investment fund may be subject to tax credit recapture if the nmtc program compliance requirements are not met over a seven-year period. The ultimate holder of the above loan from the cde to sdhfh is the bank through its participation in the investment fund. In november 2028, the bank is expected to waive the payment of the debt so as to participate in the nmtc program by exercising its put option agreement. Under the terms of the put option agreement, the hfhi leverage lender is expected to purchase the bank's ownership interest in the investment fund. Exercise of the option will effectively allow sdhfh to extinguish its outstanding debt to the bank.”