Presidio Gate Apartments

“The project is managed by covia communities with financial management performed by covia affordable 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, 2019 were $47,772.”

“Presidio gate apartments has amended their governing documents. The significant changes made to the governing documents include: added vice chair to the listing of officers, revised the membership rights of the sole member, and revised the provisions to amend the bylaws.”

“Covia affordable communities, a california nonprofit public benefit corporation is the sole member of presidio gate apartments.”

“Covia affordable communities has the right to appoint and remove a majority of directors of the presidio gate apartments (pga) board, provided that covia affordable communities shall only make appointments to the pga board from the nominees of the pga nominating committee.”

“Presidio gate apartments (pga) bylaws may only be amended upon (a) the approval of a majority of the pga board and (b) the approval of covia affordable communities, as pga's sole corporate member.”

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

“Officers and 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 its parent corporation, covia affordable communities. W2s/w3s are issued by covia affordable communities. Senior management employees listed in part vii are employees of covia communities, a related organization. They are paid and issued w-2s by covia communities. The salaries reported on part vii of the 990 and schedule j are in part supported through management fees remitted to covia affordable communities. Covia communities 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.”