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.”

“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 accounting 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 2022, 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 december 2022. This review and a determination of the executive director's compensation was documented in the board minutes in december 2022.”

“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 accounting manager.”

“Tchdc has one program, which is the development, operation and ownership of affordable rental housing. During 2022 tchdc oversaw the ownership of 22 properties with a total of 1059 units located in the metro area and in owatonna. In march 2022 tchdc closed on the permanent financing and mhfa housing infrastructure bonds (hib) for the substantial rehabilitation of maplewood gardens, a property acquired in 2019. Construction commenced immediately, continued throughout 2022 and will be complete in 2023. In december 2022 tchdc closed on the permanent financing and housing tax credits for the substantial rehabilitation of selby wilkins, lllp, a property acquired in 2020, which includes wilkins townhomes in 2020 and other assets acquired from selby commons. Construction commenced immediately and will be complete in 2024. In december 2022 tchdc sold two single family homes and four duplexes owned by selby commons limited partnership to another non-profit organization. During 2022 tchdc continued to develop the plans for the substantial rehabilitation of a property (parkview heights) in owatonna which has been awarded funding and is expected to close in 2023.”

“The tax return includes twin cities housing development corporation and 26 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.”

“Net partnership reorganizations 1,478,814. Intercompany net asset eliminations -105,741.”