Fairfax Education Association Retirement Housing Corp T/A Tysons Tower

“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 beginningon january 1, 2019 and ending on december 31, 2020. The property was also obligated to pay polinger company, a monthly fee for services provided in conjuctions with the rehabilitation of the project in the amount of $4,500 per month, which ended may 1, 2019. For the year ended december 31, 2019, property management fees of $182,904 were incurred and paid, including rehabilitation management fees of $18,000.”

“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.”

“Form 990, part vi, section b, 15b: none of the enumerated individuals received compensation from the organization during the tax year.”

“Governing documents available upon request.”

“Mortgage interest $ 951,403 contracts 186,521 repairs & maintenance 526,668 property & liability insurance 70,294 utilities 247,057 ___________ total occupancy expense $ 1,981,943”

“N/a - no changes from prior year”

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

“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 $6,850 and requires written authority from vhda for the use of the funds for maintenance and replacement costs. As of december 31, 2019, the replacement reserve balance was $137,000.”