Fairfax Education Association Retirement

“The project is managed by polinger company, an unrelated party. The management fees are computed at 3.5% of gross rental collections, payable monthly from project funds. The agreement is in effect beginning on january 1, 2022 and shall remain in effect until terminated by either party. For the year ended december 31, 2024, property management fees of $171,799 were incurred and paid.”

“The draft tax return is sent to the board of directors for review and approval prior to finalizing. During the review process, the board of directors discuss any questions resulting from the review. Once all the questions have been resolved, the tax return is approved by the board.”

“At each annual meeting and when new directors are elected, a copy of the conflict-of-interest resolution is distributed. Each director and/or officer are required to disclose to the board of directors any actual or potential conflicts of interest. Individuals party to any conflicts of interest are precluded from voting on any matters associated with the arrangement or transaction involving such conflict.”

“The organization makes its governing documents and financial statements available to the public upon request.”

“Provide affordable housing for retired educators, elderly persons, and handicapped persons in a 274 unit apartment building.”

“Mortgage interest $ 1,046,449 contracts 235,162 repairs & maintenance 538,817 property & liability insurance 112,887 utilities 287,977 rent 221,603 ___________ total occupancy expense $ 2,442,895”

“The fairfax education association retirement housing refinanced the mortgage on december 20, 2016 in order to generate funds to rehabilitate several units within the project. The corporation was obligated under the terms of a construction loan to vhda, in the original amount of $19,000,000. Loan proceeds were advanced throughout the duration of construction. On june 21, 2019, the construction loan was converted to a permanent first mortgage. The mortgage bears interest at a nominal rate of 5.94% per annum and an effective interest rate of 6.11% per annum. Interest reduction payments under section 236 of the national housing act was suspended during the rehabilitation of the property and resumed on august 1, 2019 with the conversion of the construction loan to permanent financing and will continue through september 1, 2025. Annual interest reduction subsidy payments for are not to exceed $447,198 in any given year. In accordance with the terms of the regulatory agreement, the project is required to fund a replacement reserve account with vhda. The regulatory agreement provides for monthly deposits of $7,149 and requires written authority from vhda for the use of the funds for maintenance and replacement costs. As of december 31, 2024, the replacement reserve balance was $1,855,868.”