Preserving Affordable Housing Longterm

“Members of the organization ("PAHALI") have the right to elect Directors comprising five-ninths (5/9) of the Board of Directors. PAHALI's voting members are categorized as the following: "Lessee Members," who are leasing land or housing from the organization; and "General Members," who have applied for membership, paid dues, and reside within the geographical area served by the organization. PAHALI's Board of Directors consists of three (3) categories of Directors, each comprising one-third (1/3) of the total Board: "Lessee Representatives," "Technical Representatives," "Public Agency Representatives." Of these categories of Directors, Lessee Members have the right to elect all Lessee Representatives, and both Lessee Members and General Members (collectively "Regular Members") have the right to elect two-thirds (2/3) of the Public Agency Representatives.”

“The following governance decisions require the approval of two-thirds (2/3) of the Regular Members present at a regular or special Membership Meeting: the sale of a parcel of land; the adoption or alteration of a resale formula policy (which restricts the price that ground lessees may receive when they sell housing and other improvements located on the land that is leased to them by the organization); amendments to the Articles of Incorporation or the Bylaws; and dissolution of the organization. Moreover, a majority of the Lessee Members may vote to remove a Lessee Director with or without cause; and a majority of the General Members may vote to remove a member-nominated Technical Director.”

“Upon completing the draft of this Form 990, the organization's Executive Director emailed each of the five (5) Directors to provide an attached PDF copy of the drafted Form 990 and its Schedules, to inform them of their opportunity to review and provide feedback prior to its filing, and to ask them to provide any comments or questions in a timely manner. No responses were received from any Directors.”

“As set forth in the organization's Conflict of Interest Policy and bylaws, each new Director is given a copy of the Conflict of Interest Policy and must sign a document stating they have read and understand the Conflict of Interest Policy and agree to comply with it. On an annual basis, each Director and each member of any committee with Board-delegated powers must sign the Conflict of Interest Statement and Disclosure Form stating they have read and understand the Conflict of Interest Policy, and when necessary disclosing any possible or actual conflicts under the policy. The Board, by itself or with outside experts, is required to conduct periodic reviews of the following: (a) whether compensation arrangements (including benefits) with disqualified persons and interested Directors are reasonable, are based on competent survey information, and are the results of arm's length bargaining; and (b) whether partnerships, joint ventures, and arrangements with management organizations conform to the organization's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, an excess benefit transaction, or a self-dealing transaction. If the Board has reasonable cause to believe any disqualified person or interested Director has failed to disclose a possible or actual conflict of interest, it will inform that person of the basis for such belief and provide them an opportunity to explain. If the explanation is insufficient and the Board determines this person has failed to disclose an actual or possible conflict of interest, the Board will take appropriate disciplinary and corrective action.”

“The organization's governing documents, conflict of interest policy, and financial statements were made available to the public upon request.”