Agape Houston House Inc.

“Delegate control of management duties: the organization contracts with wedge management, inc., a related taxable corporation, to serve as its management agent for the operational activities of its low income housing property.”

“Document committee meetings and actions: the organization board of directors maintains no committees. However, if committees are appointed, then committee meetings and actions taken would be contemporaneously documented.”

“Form 990 review: the executive director is charged with the timely and accurate preparation and filing of the annual form 990. An independent cpa firm prepares a draft of the form 990. The management company reviews the form 990. The executive director reviews and signs the final form 990, which is then filed. A copy of the form 990 that was filed is provided to the board of directors at the board meeting subsequent to the filing of the form 990.”

“Conflict of interest policy: at the annual meeting of the board members, all are asked to review and sign a new policy statement and advise the board if any conflicts exist.”

“Determination of compensation: housing and community services, inc. (hcs), a 501(c)(3) tax exempt organization, maintains control of the organization by its power to appoint the majority of the members of the board. The executive director of hcs also serves as the compensated executive director (ed) of the organization. The hcs board of directors establishes a compensation committee annually to review compensation for the executive director. Wedge management, inc. (wmi) is a related taxable corporation that provides property management and accounting services to the organization. The ed of the organization is also the ceo of wmi. Together hcs, wmi, the organization, and two other hcs affiliates pay the compensation and benefits (c&b) for the ed. M. Steven henderson is the chief operating officer (coo) for the organization and is also the coo for hcs and wmi. Together hcs and wmi pay the compensation and benefits (c&b) for the coo. The ed with oversight from the hcs compensation committee annually reviews the compensation for the coo. None of the coo compensation is paid by the organization. The chief financial officer (cfo) for the organization is also the cfo for hcs and wmi. Together hcs and wmi pay the compensation and benefits (c&b) for the cfo. The ed with oversight from the hcs compensation committee annually reviews the compensation for the cfo. None of the cfo compensation is paid by the organization.”

“Disclosure of organizational documents and policy to public: all documents are available upon request. The annual form 990 is available on the guidestar website.”

“Officers and directors reportable and other compensation from the organization and related organizations: officers and directors compensation reported in column e was the compensation paid to the top officials of the related management agent required to be reported as if the organizaton had directly paid the compensation, although it had not. Officers and directors other compensation reported in column f was the benefits compensation paid to the top officials of the related management agent. A portion of the other compensation was paid by the organization (see schedule j). Another portion was paid by related organizations and was required to be reported as if the organizaton had directly paid the compensation, although it had not.”

“Organization mission: as a nonprofit corporation, the organization mission is to (1) make adequate housing available to poor and underprivileged residents and to foster the creation and preservation of housing for low and moderate income residents (family households) and (2) to establish, provide, make available, and administer self-improvement and wellness centers and/or such services for the residents of low income housing communities. The organization is an affiliate of housing and community services, inc. (hcs). Hcs qualifies as a statewide community housing development organization (chdo) under the criteria established by the texas department of housing and community affairs. Hcs qualifies as a statewide chdo by virtue of reserving one-third (1/3) of the membership of the organization board of directors for low-income representatives.”

“Exempt purpose acchievments: the organization continued its primary activity of owning and operating the houston house apartments, a 50-unit apartment complex located in victoria, texas under the low income housing preservation and resident homeownership act (lihprha) of 1990 for the benefit of families and individuals needing low-income housing. The organization continued to preserve the project as low-income housing by maintaining property operations in compliance with the regulations of the u. S. Department of housing and urban development (hud). The organization maintained a hud property based section 8 housing assistance payment (hap) rental assistance contract for all 50 units. The hap rent assisted units were made available to families and individuals with incomes of less than 30% of area median income. In addition the organization operations were maintained in accordance with the provisions of a land use restriction agreement (lura) executed between the organization and the texas department of housing and community affairs (tdhca), which remains in effect until december 22, 2044. The organization continued to receive the following tax exemptions: internal revenue service 501(c)(3) income tax exemption. Victoria county, texas, appraisal district 100% property tax exemption. State of texas franchise tax exemption. State of texas sales tax exemption. The organization continued to provide programs, activities, and services for the youth and adult residents. In late 2013 the organization began a rehabilitation project to preserve the houston house apartments (property) as quality low-income housing. In december 2014, the organization closed on a $2,300,000 non-recourse home first lien mortgage payable to the tdhca. Proceeds of the loan were used in 2015 and 2016 for the construction needed to rehabilitate the property. Through 2016 housing and community services, inc. (hcs) advanced $415,000 for costs associated with obtaining the loan and providing construction advance funding. In addition to the tdhca loan for the rehabilitation project, hud approved a subordinate surplus cash note payable to hcs in the amount of $357,053. Finally, with the closing of the tdhca loan, hudson housing capital, llc provided a $46,000 grant solely for the rehabilitation project. The rehabilitation project was completed during 2016.”

“Number of employees reported on w-3: the organization had no employees during the period and does not expect to pay wages in the future. The organization was not required to file a form w-3, because it leased all operating personnel from employers resource management company, a professional employment organization. The organization reported employee leasing costs in form 990, part ix, lines 7 to 10, as applicable, as if the leased employees were directly paid employees of the organization.”

“OTHER LINE 11G AMOUNT EXCEEDS 10% OF COLUMN (A), LINE 25 LIST EXPENSES (TOTAL LINE 11G $52,642): THE ORGANZATION INCURRED $7,500 TO HOUSING AND COMMUNITY SERVICES, INC. (SEE ABOVE) IN ACCORDANCE WITH A PROJECT OVERSIGHT AGREEMENT TO PROVIDE ADMINISTRATIVE OVERSIGHT SERVICES FOR THE ORGANIZATION. THE ORGANZATION INCURRED $5,000 TO LUCAS & ASSOCIATES, L.P., AN UNRELATED FINANCIAL CONSULTANT, IN ACCORDANCE WITH A FINANCIAL MONITORING AGREEMENT TO PROVIDE FINANCIAL MONITORING FOR THE ORGANIZATION. THE ORGANZATION INCURRED $40,142 TO HOUSING AND COMMUNITY SERVICES, INC. (SEE ABOVE) IN ACCORDANCE WITH A resident SERVICES MANAGEMENT AGREEMENT TO PROVIDE OVERSIGHT AND DEVELOPMENT OF COMMUNITY LEARNING CENTER PROGRAMS AND RESIDENT SERVICES FOR THE ORGANIZATION.”

“Audit committee: housing and community services, inc. As the controlling entity maintains a standing audit committee to select the independent auditor. Wedge management, inc. As management agent is charged with providing oversight of the annual audit and reviewing the audit report prepared by the auditor. The organization board of directors meets at a regularly scheduled seminnual meeting after the fiscal year end. Prior to this meeting, the board receives a copy of the audit to be issued. Then at this meeting, the board reviews and approves acceptance of the audit report. Two directors will sign the audit report for the organization. The process has not changed from the prior year.”

“Election out of special depreciation allowance: hcs houston house, inc. Dba houston house apartments 8610 north new braunfels, suite 500 san antonio, tx 78217-6397 identification number: 74-2630744 tax year ended: december 31, 2016 taxpayer elects under irc sec. 168(k)(2)(d)(iii) not claim the special depreciation allowance for all eligible classes of property placed in service during the tax year ended december 31, 2016.”

“Description:resident services contract total fees:40142”

“Description:oversight & monitoring agreemt total fees:12500”