New Hope Housing Inc.

“During 2015, the bylaws were amended to create officer capacity (President, Treasurer, and Vice President) at the management level instead of the board level.”

“Finance committee reviews and approves Form 990. Form 990 is distributed to governing body via email prior to filing.”

“Annual written disclosure by all officers, directors and key employees is required. If any conflicts are identified, the board of directors takes appropriate action.”

“The Executive Committee reviews the Executive Director's compensation using comparative data from similar organizations.”

“President/CEO reviews Treasurer/CFO , with input from the Chairman; comparative data is used. President/CEO also reviews Vice President of Onsite Operations, Vice President of Fund Development, Director of Real Estate Development and Office Manager. Other employees reviewed by direct supervisor, with final approval of President/CEO. All employees (except new hires) were reviewed in 2015.”

“Governing documents are made available upon reasonable request and at the corporate office.”

“OTHER PROGRAM SERVICES 4: NHH at Congress 57 unitsThis property is owned and operated by Houston Area Community Development Corporation (HACDC). In 2002, HACDC became an affiliate of New Hope Housing, when the original board of directors passed governance to NHHI. The building is a moderate rehabilitation and modification of the Powell Hotel, which was established in 1925. The original renovation of the Congress property was completed in 1997 and received the Greater Houston Preservation Alliance Good Brick Award. In 2012, the U.S. Commerce Association honored 1414 Congress with the Best of Local Business Award, Individual & Family Services. At the end of October 2007, this property was temporarily closed for an intensive renovation and reopened in October 2010 to house the chronic homeless with disabilities. The original rehabilitation of the property performed before NHHI assumed governance was undercapitalized, and the contractor declared bankruptcy shortly after the original renovation was completed. Thus, the structure required substantial renovation and structural upgrades. OTHER PROGRAM SERVICES 5: NHH at Brays 149 unitsThe City of Houston approached New Hope to develop Brays Crossing what was once the dilapidated HouTex Inn. In late 2007, FDI-Houston SRO, Ltd. purchased the property located at 6311 Gulf Freeway, I-45 at the Griggs Road exit. NHH at Brays Crossing, LLC is the general partner of FDI-Houston SRO, Ltd. New Hope Housing, Inc. is the developer of the Brays Crossing project that now offers efficiency apartment housing for individuals with low incomes. It also serves as a foundation for a large public art display that is integral to the building design. This site was financed with a combination of Housing Tax Credits, allocated by the Texas Department of Housing and Community Affairs, and funds from the City of Houston, as well as private charitable contributors, including the Houston Endowment Inc., The Meadows Foundation, and the United Way of Greater Houston. The property opened in February 2010. Brays Crossing has received numerous awards including: 2011 ULI Award for Excellence - North and South America; 2011 ULI-Houston Development of Distinction Award; two national Builders Choice Design & Planning Awards issued by the National Association of Homebuilders; two Houston Business Journal Landmark Awards; an AIA-Houston Design Award; a 2010 Mayors Proud Partner Award; and, most recently, a 2015 Texas Architect Design Award. OTHER PROGRAM SERVICES 6: NHH at Sakowitz 166 units Sakowitz is the first LEED certified affordable housing in the State of Texas, and it is also Houstons first green multifamily housing development. Situated in Greater Fifth Ward/Denver Harbor, the Sakowitz development opened in October 2010. This site was financed with a combination of Housing Tax Credits, allocated by the Texas Department of Housing and Community Affairs, and funds from the City of Houston, as well as private charitable contributors, including the Houston Endowment Inc., The Brown Foundation, The Fondren Foundation and other foundations and corporations. Sakowitz has also received several distinguished awards. The National Association of Housing and Redevelopment Officials (NAHRO) honored Sakowitz with an Award of Excellence, one of four affordable housing properties recognized nationally. The U.S. Green Building Council (USGBC) named New Hope Housing the 2011 LEED for Homes Outstanding Affordable Developer, honoring the development of 2424 Sakowitz, which is LEED platinum. Additionally, Sakowitz won a 2011 Houston Business Journal Landmark Award. OTHER PROGRAM SERVICES 7: NHH at Perry 160 unitsNew Hope opened 4415 Perry in late October 2012. Perry is financed through a public/private partnership that leverages tax credit investments with funds from the City of Houston as well as private charitable donors, including the Federal Home Loan Bank of Chicago, JPMorgan Chase Foundation, and other foundations and corporation”

“Adjustment to record prior year expenses allocable to HACDC = $167039”

“Restatement of intercompany balances = $236656”