Houston Area Community Development Corporation

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

“The Directors of HACDC are elected by the sole 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 reviews, with input from Treasurer/CFO, and comparative data is used. President/CEO reviews Treasurer/CFO, Vice President of Onsite Operations, Vice President of Real Estate Development, Vice President of Fund Development and Communications, and Director of Human Relations. Other employees are reviewed by direct supervisors, with final approval of President/CEO. All employees (except new hires) were reviewed in 2022.”

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

“See "Part VII and IX" explanation in Schedule O for allocation of Joy Horak-Brown's time to HACDC. Form 990, Part VII, Compensation Explanation - Emily Abeln: The compensation reflected in Part VII for Emily Abeln pertains to her role as Director of Real Estate Development, not Assistant Secretary. See "Parts VII and IX" explanation in Schedule O for allocation of Emily Abeln's time to HACDC. Form 990, Parts VII and IX: The 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 year 2022. Approximately 40% of Joy Horak-Brown's time is spent providing services to HACDC and 100% of Emily Abeln's time is spent providing services to HACDC. Form 990, Part VII, Section B - Independent Contractors: The amount reported on Part VII as compensation to Camden Builders was paid by HACDC on behalf of Harrisburg SRO, Ltd and NHH at Reed Ltd, related organizations shown in Schedule R.”

“New Hope Housing's core purpose is to provide life-stabilizing, affordable, permanent housing with support services for people who live on very limited incomes. The nonprofit organization owns and operates single room occupancy (SRO) for individuals and affordable housing for families with children. Currently, we have four properties in pre-development, one for families and three for seniors. Without permanent housing in a safe and nurturing environment, these men, women, and children might become unhoused or live in severely substandard conditions. The residents at New Hope's SROs and supportive housing for previously homeless families earn an average of $800 a month, a direct indicator that New Hope serves Houston's citizens most at risk of becoming unhoused. Approximately 65% of our supportive housing population is formerly homeless, and many are formerly chronic 'street' homeless coping with mental health disabilities and chronic health conditions. Together with our partners, New Hope helps people come home. Our core purpose is to provide lifestabilizing, affordable, permanent housing with support services for people who live on very limited incomes. The vision for New Hope grew out of the ministry of Christ Church Cathedral-Episcopal in 1993. We are committed to carrying forward that vision by providing high-quality Housing + Services, which lay the foundation of hope for a stable life. The rental rates at all affordable housing properties operated by New Hope Housing, Inc. and its affiliates include free utilities, cable TV access, on-site support services, and, in some instances, highspeed internet. At each of the SRO properties, the front desk is staffed 24 hours a day, 7 days a week.”

“Resident Services Program New Hope Housing offers permanent supportive housing to people who have a long-range need for lowcost, supportive housing. Of course, there are residents who prefer to live at a New Hope property during a transitional time in their lives, later reuniting with family, or moving into market rate housing. As part of providing a supportive environment, New Hope operates the Resident Services Program, a four-pronged initiative that includes: (1) Assistance from the on-site Case Managers and Community Support Specialists who coordinate access to social services and to whom residents can turn if they are facing special difficulties. (2) Direct assistance with basic necessities, financial services, and food security that promote stability in the lives of residents. (3) Educational opportunities, life skills training, social activities, and healthcare access for spiritual, social, and physical well-being, and for equitable opportunities. (4) A Resident Feedback Collaborative, which closes feedback loops and amplifies residents' voices, ensuring New Hope's Housing + Services are meeting true resident needs. More people have been housed in Houston, Texas since 2012 than ever before thanks to a strongly supported housing system. Yet much work remains to fill the approximately 195,000 shortage of affordable homes. This drives New Hope's intent to be an enduring institution serving people in Houston experiencing homelessness and those at risk of becoming unhoused.”

“NHH at Brays Crossing - 149 units The City of Houston approached New Hope to develop Brays Crossing - what was once the dilapidated HouTex Inn. To facilitate the development, the City of Houston made a performance-based grant to Houston Area Community Development Corporation, who, in turn, loaned the funds to FDI-Houston SRO, Ltd. The development also includes financing from Housing Tax Credits, allocated by the Texas Department of Housing and Community Affairs, and funds from private charitable contributors, including the Houston Endowment Inc., The Meadows Foundation, and the United Way of Greater Houston. 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. The property serves as a foundation for a large public art display that is integral to the building design. Brays Crossing opened in February 2010.”

“NHH at Congress - 57 units This 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. 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.”

“Restatement of intercompany balances -1,282,037.”