Castillo Homes 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 RECEIVES 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 emmet hawkes and 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 emmet hawkes and cindy young devoted approximately .2 hours per week to other related organizations. See schedule r part ii items (2) - (9).emmet hawkes and cindy young devoted 40 hours per week to santa barbara community housing corp., a related organization. See schedule r part ii item (1).emmet hawkes and cindy young devoted approximately 3 hours per week to other related related organizations. See schedule r part ii items (2) - (9).”

“During the year ended december 31, 2016, the organization, as a result of the revised loan agreement with the city of santa barbara, determined that the liability for accrued interest payable was overstated due to interest being recorded on a compound basis as opposed to interest being recorded on a simple interest method. As a result, the orgnization recorded an adjustment that reduced accrued interest payable by $600,628 at december 31, 2015 and increased unrestricted net assets by $600,628.”