Presidio Gate Apartments

“The project is managed by episcopal senior communities with financial management performed by lytton gardens senior communities, an affiliate of the project, pursuant to a hud approved management agreement dated january 31, 1997. The current management agreement provides for a management fee of 3.78% of the monthly rental income. Management fees charged to operations for the fiscal year ended march 31, 2014 were $42,000.”

“Lytton garden senior communities, a california nonprofit public benefit corporation is the sole member of presidio gate apartments.”

“The function of the member shall be to elect the board of directors of the corporation and to perform other duties as set forth in the bylaws. The board of directors consisted of a 9 member board of presidio gate apartments (pga) and is identical to the board of lytton gardens senior communities which is the sole member of presidio gate apartments.”

“The member shall have the right to vote on the following matters: (1) election of directors; (2) amendment or restatement of the articles of incorporation or these bylaws; (3) merger, consolidation, reorganization or dissolution of the corporation; and (4) disposition of all or substantially all assets of the corporation. In addition to the rights described in these bylaws, the member of this corporation shall have any other rights afforded voting members under the california nonprofit public benefit corporation law.”

“Presidio gate apartments shares board members with all other related lytton entities. Decisions are shared and require majority vote across all board members.”

“The cfo, management personnel, and finance committee of presidio gate apartments review the 990 information return before filing with the internal revenue service.”

“Board members are asked on an annual basis if there are any activities and/or affiliations that would pose a conflict with their ability to serve on the board or items that they will need to recuse themselves from voting on.”

“Compensation of all employees of presidio gate apartments (pga) is paid by a related organization, episcopal senior,communities (esc), and then allocated to pga and various other related organizations based on where work is performed. W-2s/w-3s are issued by esc. Esc uses an independent consultant who analyzes and reports on reasonability of compensation every two years. The consultant is independent of management and reports directly to the chairman of the board. The consultant reviews and provides a report on any issues with the compensation the ceo and/or the cfo receive including any issues around excess compensation. Additionally, all key executives compensation are reviewed by the consultant. This review includes total cash compensation and benefits including retirement plans. Every year, the vice president of human resource reviews the compensation for all management against market analysis guidelines and recommends changes. This review also includes a test of benefits against similar companies.”

“The governing documents, conflict of interest policy, and financial statements are available to the public upon request.”

“Audit committee and oversight of the consolidated audited financial statements - there have been no changes to this process from prior year.”