Twin Cities Housing Development Corporation

“There are no material differences in voting rights among members of the board of directors and the board of directors has not delegated broad authority to an executive committee or similar committee.”

“Family housing fund ratifies board elections.”

“The audit committee reviews the form 990 at a meeting attended by the tax preparer and makes a recommendation to the board. All board members are given a copy of the form 990 prior to the board meeting at which the audit committee recommendation is considered.”

“Annually, board and staff are required to complete an updated conflict of interest disclosure form. The board and staff are given a copy of the conflict of interest policy at that time to use in identifying potential conflicts. The policy describes potential conflicts in great detail. The executive director and office manager collect these forms and the executive director reviews all forms so that she is aware of potential conflicts. The executive director is responsible for bringing potential conflicts to the attention of the board in addition to individual board members raising potential conflicts that they may have. If the executive director believes that a conflict exists, a memorandum describing the relevant facts is prepared for the board and is included as a part of the minutes. At the meeting at which the conflict is discussed, the tchdc director with the conflict (the tchdc director) is not counted in determining the presence of a quorum for the vote on the related transaction. The tchdc director does not participate in the discussion of the transaction in which he or she is interested unless the tchdc director is aware of material undisclosed facts pertaining to the transaction. The tchdc director may respond to questions, however he or she shall not attempt to exert his or her personal influence with respect to the matter, either at or outside the meeting. The tchdc director will not vote on the transaction and will be recorded as not voting.”

“In 2014, the Board retained a national compensation consultant to review the Executive Director compensation including comparison to the salaries of other Executive Directors of similar organizations. The Board reviewed this written report along with additional information provided by the Executive Director in November 2014. This review and a determination of the Executive Director's compensation was documented in the Board minutes. It was decided that a similar review by an outside consultant will be performed periodically, approximately every two to three years, with annual reviews based on information gathered by the Executive Director using the bi-annual Minnesota Council of Nonprofits survey and other publically available information.”

“The tchdc articles of incorporation, bylaws, financial statements and conflict of interest statement are available upon request. They are maintained in the corporate files and requests are presented to the office manager.”

“TCHDC has one program, which is the development, operation and ownership of affordable rental housing for families in the seven county metro-area. In 2015, TCHDC continued its work related to the substantial rehabilitation of three projects. In 2011, TCHDC entered into a purchase agreement for the acquisition of a 74-unit property in St. Paul known as St. Albans Park. TCHDC also sought and was awarded the funding necessary to acquire and substantially renovate the property. Twenty four of the units have a rental subsidy from HUD and all units will serve low income families. In 2013, the property was acquired and construction began. In 2014, construction was completed and all units were re-occupied. In 2015, the rehabilitation of the commercial space was completed and the construction loan was repaid and the partnership closed on the permanent financing. In June 2013, TCHDC entered into a purchase agreement for the acquisition of a 73-unit property in St. Paul known as Jamestown Homes. All units have a rental subsidy from HUD and all units will serve low-income families. In 2013, TCHDC sought funding necessary to substantially renovate the property. Jamestown Homes was acquired in July 2014 and in October 2014, the project was awarded the funding required for a substantial renovation. Pre-development work continued through 2015 and construction will begin in 2016. On December 31, 2013, TCHDC acquired a 32-unit townhome development in Maple Grove known as Hickory Ridge. All units have a rental subsidy from HUD and all units will serve low income families. TCHDC sought and was awarded funding necessary to substantially renovate the property in October 2014. Pre-development work continued through 2015 and construction will begin in 2016. In addition to developing new properties, TCHDC oversaw the ownership of 18 properties with a total of 919 units located in the metro area. The average income of families served in TCHDC properties is $23,000 and average household size is 3.3 persons. TCHDC operates a resident resource center at one development. While the center focuses primarily on academic enrichment and summer programs for children and youth, other services include employment services, health programs, adult computer training, adult computer labs, distribution of supplemental food for families, and a variety of other programs serving families of the developments and the surrounding area. Programming is provided through partnerships with a variety of organizations' in the metro area including Concordia University, Hamline University, St. Catherines University, Goodwill/Easter Seals, Open Cities Health Care, Second Harvest Heartland and various others. All of the expenses of the organization are related to the provision of affordable rental housing.”

“The tax return includes Twin Cities Housing Development Corporation and 18 disregarded entities. Audited financial statements include Twin Cities Housing Development Corporation and the disregarded entities as well as other related entities. Consequently, there are no separate audited financial statements of the tax return grouping. The components of the tax return grouping, i.e. Twin Cities Housing Development Corporation and the disregarded entities, have been audited within the larger group. The Twin Cities Housing Development Corporation Board reviews both the audited consolidated financial statements and this tax return.”