Houston Area Community Development Corporation

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

“HACDC has one member, New Hope Housing, Inc.”

“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 of New Hope Housing, Inc. reviews the Executive Director's compensation using comparative data from similar organizations.”

“President/CEO, with input from Treasurer/CFO; comparative data is used. President/CEO also reviews Vice President Onsite Operations, Director of Real Estate Development and Office Manager. Other employees reviewed by direct supervisor, with final approval of President/CEO.”

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

“OTHER PROGRAM SERVICES 4: NHH at Sakowitz 166 units To facilitate the development of 2424 Sakowitz, the City of Houston made a performance based grant to Houston Area Community Development Corporation, who, in turn, loaned the funds to Sakowitz SRO, Ltd. The development also includes financing from 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 is the first LEED certified affordable housing in the State of Texas, and it is also Houstons first green multifamily housing development. The fact that Sakowitz is supportive housing and that it has achieved platinum certification the highest level makes this recognition even more significant. Situated in Greater Fifth Ward/Denver Harbor, Sakowitz opened in October 2010. OTHER PROGRAM SERVICES 5: NHH at Perry 160 units (for HACDC 990 only)To facilitate the development of 4415 Perry, the City of Houston made a performance based grant to Houston Area Community Development Corporation, who, in turn, loaned the funds to Perry SRO, Ltd. The development also includes financing from 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, JPMorgan Chase Foundation and other foundations and corporations.As a LEED platinum certified property, 4415 Perry is New Hopes second energy-efficient, green property. The building opened in October 2012.Situated in Foster Place, one of Houstons historic neighborhoods, the Perry property is located south of the University of Houston off Griggs Road and Cullen Boulevard. Perry is New Hopes sixth SRO community. OTHER PROGRAM SERVICES 6: NHH at Rittenhouse 160 units To facilitate the development of Rittenhouse, the City of Houston made a performance based grant to Houston Area Community Development Corporation, who, in turn, loaned the funds to Rittenhouse SRO, Ltd. The development also includes financing from Housing Tax Credits, allocated by the Texas Department of Housing and Community Affairs, as well as private charitable contributors, including the Houston Endowment Inc., The Brown Foundation, The Meadows Foundation, and other foundation and corporate supporters. As a LEED platinum certified development, Rittenhouse is New Hopes third energy-efficient, green property. Rittenhouse is New Hopes first property north of Loop 610 and is located off I-45 North at the corner of Stuebner Airline and Rittenhouse Road. Rittenhouse is New Hopes seventh SRO property. The building opened in December 2013, and reached stabilized occupancy in record time, which speaks strongly to the dire community need for this type of housing. OTHER PROGRAM SERVICES 7: HACDC, in concert with New Hope Housing, operates a continuous development cycle where we have 2 to 3 projects in varying stages of development at any given time. We operate to the standards of the for-profit multifamily industry, and our real estate development model is a testament to that work.”

“Prior year expenses paid by NHH for HACDC - see Schedule O = -$167039”

“Restatement of intercompany balances = $330214”

“Other Changes In Net Assets Or Fund BalancesThe 2013 HOME Final Rule changed certain requirements for an organization seeking qualification as a Community Housing Development Organization ("CHDO"). Most importantly in HACDC's case, such an organization must have paid employees with housing experience appropriate to the role the organization expects to play in its housing projects. In the past, the experienced employees providing those services to HACDC were employed directly by New Hope Housing ("NHH") and no portion of their compensation was allocated to HACDC. To demonstrate compliance with these new rules, HACDC has made an allocation of the appropriate amounts of compensation related to services provided to it by NHH for the years 2013-2015. The allocation for the years 2013-2014 is reflected in Part XI, Line 9. The allocation for 2015 is reflected in Part IX as current year expense.”