Chelmsford Housing Opportunities for Intergenerational Community

“Choice center llc has entered into an agreement with the chelmsford housing authority (cha) to provide property management services. The cha receives an annual fee equal to 5% of gross revenues from the project. For the year ended june 30, 2020, choice center llc paid management fees in the amount of $26,728. Choice, inc. Has also entered into an agreement with the cha to provide property management services for the residences at 4 james street. The cha receives an annual fee equal to 6.00% of net effective income. For the year ended june 30, 2020, choice, inc. Paid management fees related to the residences at 4 james street in the amount of $5,748. Choice, inc. As also entered into an agreement with the cha to provide property management services for the great elms project in harvard, ma. The cha receives an annual fee equal to 6.00% of net effective ncome. For the year ended june 30, 2020, choice, inc. Paid management fees related togreat elms in the amount of $7,328. Choice, inc. Has also entered into an agreement with the cha to provide property management services for the brianna lyn estates project in north chelmsford, massachusetts. The cha receives an annual fee equal to 6.00% of net effective income, as defined. For the year ended june 30, 2020, choice, inc. Paid management fees related to the brianna lyn estates in the amount of $8,129. Additionally, in conjunction with the management agreements, choice, inc. And choice center llc have reimbursed the chelmsford housing authority for salaries and related payroll taxes and benefits. The amounts reimbursed for the year ended june 30, 2020 totaled $775,430.”

“Organization's process to review form 990 the board of directors reviews a copy of the 990 with the director of finance and executive director before it is filed.”

“All board members are required to fill out a conflict of interest statement identifying any business or personal obligations which potentially create a conflict of interest with choice. These statements were filled out upon adoption of the conflict of interest policy or upon becoming a member. These statements are updated annually and members are also encouraged to identify any conflict they feel might appy to another member. If a board member believes he or she may have a potential conflict on a given manner they should speak up during the course of the meeting to reference to the conflict. Those members in conflict are not allowed to participate in any discussion relative to the matter in question, other than to respond to direct inquiries made by other board members. They will also not be allowed to vote on the matter, but will be counted as a part of a quorum in the voting process. The minutes of the meeting shall reflect their abstention from the discussion and the vote. If there is question as to whether a conflict exists, the member should raise the question in the meeting. The chair will make the determination, and insure the appropriate processes are followed.”

“The organization makes its governing documents, conflict of interest policy and financial statements available upon written request.”

“Although the organization does not have a formal joint venture policy in place, they only do projects that strictly fit their mission - 100% affordable housing development with supportive services.”

“Connie donahue comtois is provided with retirement and health insurance benefits through chelmsford housing authority. The organization has been unable to determione at this time the total cost to chelmsford housing authority for these benefits to connie donahue comtois as the health insurance paid to the gic is billed a total quarterly amount rather than breaking down by employee. Similarly, retirement costs are paid by chelmsford housing authority to the middlesex retirement annually and they are billed in total rather than being provided a breakdown of costs per employee.”

“Mgmt services - reimbursed salaries: program service expenses 395,528. Management and general expenses 37,553. Fundraising expenses 0. Total expenses 433,081. Mgmt services - reimbursed benefits: program service expenses 326,557. Management and general expenses 28,397. Fundraising expenses 0. Total expenses 354,954. Contracts: program service expenses 34,962. Management and general expenses 0. Fundraising expenses 0. Total expenses 34,962.”

“The organization's affiliate, choice center, llc had previously recognized section 1602 tax credit funds received from dhcd for the purpose of financing the development of the project as grant revenue on its financial statements. The funding agreement is written as a loan and requires various terms and conditions be met over its term, which terminates fifteen years from construction completion. As such, long term debt had been incorrectly recognized as grant revenue prior to the completion of the compliance period. The prior period adjustment for the period ending june 30, 2020 aggregated $4,461,889 which represents an increase in loans payable and decrease in net assets. Fhlb of boston for the purpose of financing the development of the elms project as net assets without donor restrictions. The funding agreement is written as a loan and requires various terms and conditions be met over its term, which terminates fifteen years from construction completion. As such, long term debt had been incorrectly recognized as net assets without donor restrictions prior to the completion of the compliance period. The prior period adjustment for the period ending june 30, 2020 aggregated $500,000 which represents an increase in loans payable and decrease in net assets without donor restrictions.”