First Step Hous First Step House

“There is no committee with authority to act on behalf of the governing body.”

“The draft is first reviewed by management then the draft is presented to the board of directors for board approval.”

“The organization regularly and consistently monitors and enforces compliance with their conflict of interest policy.”

“Compensation is determined by the board and outside resources to determine a reasonable wage for the executive director.”

“The organization makes disclosure of governing documents, policies and financial statements upon request.”

“Effective during the year ended june 30, 2019, first step house became the .01% managing member of 5th east apartments, llc (the llc), an entity created for the purpose of developing, owning, and operating a 75-unit low-income housing tax credit project adjacent to first step house's veteran's recovery campus. First step house made a capital contribution of previously purchased land, which had a cost-basis of $412,381, to the llc. Thus, first step house's investment in the llc is $412,381 as of june 30, 2019. The project has qualified for and been allocated low-income housing tax credits pursuant to the internal revenue code section 42, which regulates the use of the project as to occupant eligibility and unit gross rent, among other requirements. The buildings must meet the provisions of these regulations during each of 15 consecutive years in order to continue to qualify to receive the tax credits. Failure to comply with occupant eligibility and/or unit gross rent, or to correct noncompliance within a specified time period, could result in recapture of the previously taken low-income housing tax credits plus interest. Such potential noncompliance may require an adjustment to the contributed capital by the investor member in the project and is subject to guaranties between first step house and the other members of the llc. The llc has agreed to compensate first step house a developer fee of $1,544,890 for services rendered in developing the project. Of this amount, $1,166,203 is scheduled to be paid from the equity contributions of the 99.99% investor member in the llc. Any amount that is not paid from investor member equity contributions will be subject to payment from the available cash flow of the llc in accordance with the distribution priority of payments for available cash flow as outlined in the llc's operating agreement. If the llc does not have sufficient funds to pay the developer fee by december 31, 2032 (the end of the twelfth year of the tax credit compliance period), first step house is required to make an equity contribution to the llc in the amount of any remaining unpaid fee. For the year ended june 30, 2019, first step house recognized $281,942 of revenue related to developer fees earned through june 30, 2019 based on pro-rata portion of construction completed through june 30, 2019. This amount is included on the statement of activities as housing development income.”

“Amending 990 to reclassify government contract revenue on part viii from contributions and grants, down to program service revenue. The following 990 parts and schedules were updated as a result of this change: 1. 990, part iii, line 4a 2. Schedule a, part ii 2. Schedule b, part i”