Atrium Apartments Inc.

“Review steps of the tax returns include: the board of directors reviews the reviewed financial statements prior to the preparation of the tax returns. Next, a draft of the entire tax return is distributed to the president and executive director for a preliminary review where any adjustments and corrections are noted and addressed. Copies of the completed returns are then distributed to the entire governing body for review and approval prior to submission with the applicable taxing authorities.”

“The organization regularly reviews its written conflict of interest policy and financial transactions with certain vendors and its affiliates. At the beginning of each fiscal year, all of the board members are required to sign a conflict of interest policy and disclosure form. By signing the form, they agree that they received a copy of the organization's conflict of interest policy, read and understand the policy, and agree to comply with the policy.”

“The board of directors periodically reviews the reasonableness of the compensation of the executive director compared to other exempt organizations within the santa barbara area.”

“The organization's governing documents, conflict of interest policy and financial statements are made available to the public upon request.”

“Section A. officers, directors, trustee, key employees, and highest compensated employeesTHIS ENTITY IS A LOW INCOME HOUSING PROJECT CONTROLLED AND MANAGED BY THE BOARD OF DIRECTORS AND EXECUTIVE DIRECTOR OF THE SANTA BARBARA COMMUNITY HOUSING CORP. FEIN 95-2954450, A TAX EXEMPT ENTITY, WHICH OVERSEES VARIOUS LOW INCOME HOUSING PROJECTS.THE EXECUTIVE DIRECTOR RECEIVES COMPENSATION FROM THE SANTA BARBARA COMMUNITY HOUSING CORP., BUT DOES NOT RECEIVE COMPENSATION FROM THIS ENTITY. NONE OF THE MEMBERS OF THE BOARD OF DIRECTORS RECEIVE ANY COMPENSATION FROM THE SANTA BARBARA COMMUNITY HOUSING CORP. OR THIS ENTITY.”

“Name and hours devoted to related organizationsall of the persons listed in part vii section a (a) other than cindy young devoted approximately 2 hours per week to santa barbara community housing corp., a related organization. See schedule r part ii item (1).all of the persons listed in part vii section a (a) other than cindy young devoted approximately .2 hours per week to other related organizations. See schedule r part ii items (2)+ .cindy young devoted 40 hours per week to santa barbara community housing corp., a related organization. See schedule r part ii item (1).cindy young devoted approximately 3 hours per week to other related related organizations. See schedule r part ii items (2)+.”

“The organization borrowed from a commercial lender in 2006. Approximately 50% of the loan proceeds were used by the entity to acquire a portion of the land and building that was owned by another entity. The other approximate 50% of the loan proceeds was loaned to a related non profit entity aka debtor. A $307,291 loan receivable is reported on the balance sheet to account for this.the debtor is allowed to postpone principal and interest payments if cash flows do not provide the cash necessary for timely payments. The entity makes principal and interest payments to the commercial lender each month and the mortgage payable balance declines accordingly. However, the portion of commercial debt that relates to the loan receivable is deemed to decline only when the debtor makes principal payments. Accordingly the commercial debt outstanding related to the loan receivable, which is acquisition debt, is $307,291.”