Civic Intelligence

Affordable Community Environments

990 • Fiscal year 2013 • EIN 91-1898061

Jan 01, 2013 to Dec 31, 2013 • Filed on Sep 29, 2014

4150 SW Moody Avenue97239

(503) 231-0682

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

68th percentile

0.41x

Higher debt load relative to assets than 68% of similar nonprofits.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Source year 2013

Liabilities / Revenue

95th percentile

8.42x

Higher debt load relative to revenue than 95% of similar nonprofits.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Source year 2013

Net Margin

8th percentile

-32%

Higher net margin than 8% of similar nonprofits.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Source year 2013

Top Officer Pay

22nd percentile

$0

Higher top officer pay than 22% of similar nonprofits.

Top officer pay equals 0.0% of source-year revenue.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Source year 2013

Asset Growth

41st percentile

0.6%

Faster asset growth than 41% of similar nonprofits.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Annualized from 2012 to 2013

Revenue Growth

33rd percentile

-1.3%

Faster revenue growth than 33% of similar nonprofits.

2013 filings • 501(c)3 • $5M-$10M nonprofits • Annualized from 2012 to 2013

Assets

Flat

$9,379,793

Flat from 2013

Net Assets

Flat

$5,496,852

Flat from 2013

Liabilities

Flat

$3,882,941

Flat from 2013

Revenue

Flat

$461,177

Flat from 2013

Expenses

Flat

$610,265

Flat from 2013

Net Income

Flat

-$149,088

Flat from 2013

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$10M$5.0M$0Assets 2011: $8,622,083Liabilities 2011: $2,973,233Net Assets 2011: $5,648,8502011Assets 2012: $9,319,786Liabilities 2012: $3,575,460Net Assets 2012: $5,744,3262012Assets 2013: $9,379,793Liabilities 2013: $3,882,941Net Assets 2013: $5,496,8522013Assets 2013: $9,379,793Liabilities 2013: $3,882,941Net Assets 2013: $5,496,8522013Assets 2014: $9,288,325Liabilities 2014: $3,782,132Net Assets 2014: $5,506,1932014Assets 2015: $8,915,062Liabilities 2015: $3,203,842Net Assets 2015: $5,711,2202015

Highlighted filing

2013

Assets$9,379,793
Liabilities$3,882,941
Net Assets$5,496,852

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$1.0M$500K$0-$500KRevenue 2011: $897,798Expenses 2011: $652,693Net Income 2011: $245,1052011Revenue 2012: $467,408Expenses 2012: $676,762Net Income 2012: -$209,3542012Revenue 2013: $461,177Expenses 2013: $610,265Net Income 2013: -$149,0882013Revenue 2013: $461,177Expenses 2013: $610,265Net Income 2013: -$149,0882013Revenue 2014: $683,239Expenses 2014: $673,898Net Income 2014: $9,3412014Revenue 2015: $724,102Expenses 2015: $519,075Net Income 2015: $205,0272015

Highlighted filing

2013

Revenue$461,177
Expenses$610,265
Net Income-$149,088
Jump To
Filing Snapshot
Filing Period
Jan 1, 2013 to Dec 31, 2013
Signed
Sep 29, 2014
Return Version
2013v3.1
Gross Receipts
$461,177
Mission and Program Overview

Mission

Ace developes and nutures sustainable and affordable housing communities in southwest washington that provide residents with stability, support and opportunities for growth.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$4,185,024$4,080,743▼ $104,281
Other Notes and Loans Receivable, Net$2,169,501$2,193,294▲ $23,793
Investments Program Related$2,084,844$2,159,464▲ $74,620
Savings and Temporary Cash Investments$270,220$255,287▼ $14,933
Cash and Non-Interest-Bearing Accounts$138,361$108,739▼ $29,622
Accounts Receivable$83,016$30,724▼ $52,292
Pledges and Grants Receivable$28,326$17,723▼ $10,603
Prepaid Expenses and Deferred Charges$1,704$6,231▲ $4,527
Total Assets$9,319,786$9,379,793▲ $60,007
Other Assets Total$358,790$527,588▲ $168,798
Liabilities
Mortgage Notes Payable Secured by Investment Property$3,441,015$3,425,307▼ $15,708
Other Liabilities$99,388$415,811▲ $316,423
Accounts Payable and Accrued Expenses$35,057$41,823▲ $6,766
Total Liabilities$3,575,460$3,882,941▲ $307,481
Net Assets / Fund Balance
Unrestricted Net Assets$463,050$3,293,722▲ $2,830,672
Temporarily Rstr Net Assets$5,281,276$2,203,130▼ $3,078,146
Total Net Assets Fund Balance$5,744,326$5,496,852▼ $247,474
Total Liabilities and Net Assets / Fund Balance$9,319,786$9,379,793▲ $60,007

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$3,546,374$338,054$3,884,428
Land$455,354-$455,354
Leasehold Improvements$67,536$8,920$76,456
Equipment$11,479$4,317$15,796
Investment Program Related Org$23--
Other Assets Org$9,398--
Compensation and Service Providers

Board Members and Trustees

NameTitle
Kevin Wingate-pearsePresident
Bambi ScatesDirector
Brett SheehanDirector
Rhetta DrennanTreasurer
David SacamanoVice Preside
Revenue and Support

Revenue Composition

Contributions and Grants
$47,415
Program Service Revenue
$359,220
Investment Income
$36,935
Other Revenue
$17,607
All Other Contributions
$23,073
Change in Net Assets
$-149,088
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$610,265
Total Fundraising Expense$8,149
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Salaries, Compensation, and Employee Benefits$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Occupancy$125,423$3,920-$129,343
Depreciation Depletion$98,352$10,429-$108,781
Office Expenses$18,008$23,918$1,175$43,101
Fees for Services Management$18,026$23,120-$41,146
Fees for Services Other$7,916$1,459$2,500$11,875
Fees for Services Legal-$11,531-$11,531
Fees for Services Accounting$3,389$6,895-$10,284
All Other Expenses$2,242$1,559$70$3,871
Insurance-$2,901-$2,901
Other Expenses$2,110$2,962$10$2,110
Advertising$327$249-$576
Total Functional Expenses$425,842$176,274$8,149$610,265
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
A/p Construction$242,156
S/t Predev Loan (ts)$75,000
S/t Predev Loan (sen Hsg)$72,136
Accrued Interest$14,398
Tenant Security Deposits$8,003
Prepaid Rent$4,118
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
Yes
Compensation from other sources disclosed
No
CEO compensation reviewed
No
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
Yes

Governance Explanations

Form 990, Page 6, Part VI, Line 3

Reach community development inc provides ace administrative service for general operating needs, development services to oversee the development of new, or rehabilitation of existing affordable housing, and certain asset management services for rental properties onwed by affiliated entities.

Form 990, Page 6, Part VI, Line 4

Affordable community environments amended it articles and bylaws to change from a non-member to a member organization.

Form 990, Page 6, Part VI, Line 6

Reach community development inc is the sole member of affordable community environments.

Form 990, Page 6, Part VI, Line 7A

Reach community development inc has the authority to elect the board of directors.

Form 990, Page 6, Part VI, Line 7B

Reach community development inc has the authority to retain approval over contracts and other financial matters.

Form 990, Page 6, Part VI, Line 11B

The portfoilio management and development committee will review the form 990 and recommend the board of directors accept it at the following board meeting.

Form 990, Page 6, Part VI, Line 12C

The secretary of the corporation or designee shall review the conflicts of interest policy with each new director and shall assist each new director in understanding and complying with it. On an annual basis, the secretary of the corporation or designee shall develop and maintain a list of insiders who engage in or are reasonably likely to engage in transactions that constitute conflicts of interest with the corporation during the year. The officers, directors and key employees shall each year disclose interests that could give rise to a conflict of interest under this policy. Such disclosure shall be made on a disclosure and acknowledgement form and shall be filed with the corporate secretary or designee. The secretary or designee shall monitor and enforce compliance with this policy be reviewing the list of insiders and the dislcosure and acknowledgment forms each eyar and by bringing potential or actual conflicts to the attention of the president of the board. The secretary of the corporation or designee shall convey the list of insiders identified above to the executive director and shall instruct the executive director to notify the board if the executive director or any employee plans to engage in a transaction with an insider that constitutes a conflict of interest. If so, the board shall monitor the transaction to ensure that it complies with the procedures contained in this policy.

Form 990, Page 6, Part VI, Line 19

Documents are made available upon request.

Filing and Contact Details

Filer

EIN
91-1898061
Phone
5032310682

Signing Officer

Name
Dan Valliere
Title
Chief Executive Officer
Phone
5032310682
Signed
2014-09-29
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Dan Valliere Chief Executive Off
Formed
1998
Legal Domicile
Wa
Voting Board Members
5
Independent Board Members
5
Employees
3
Volunteers
15

Preparer

Preparer
Steven R Bjorklund
Phone
5036436400
Supplemental Narrative

Additional Explanations

Form 990, Page 2, Part III, Line 4D

Ace's community builders program provides free home repairs for homeowners who need help due to age, disability and low income and help homeowners maintain their independence and stay safely in their homes and in their neighborhoods.

Form 990, Part XI, Line 9

Prior period adjustment 98,386

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IRS990/ProgSrvcAccomActy2Grp/Desc0ACE'S HOUSING DEVELOPMENT PROGRAM IS COMMITTED TO ADDRESSING A GROWING NEED FOR AFFORDABLE HOUSING IN THE SOUTHWEST WASHINGTON REGION.
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IRS990/ProgSrvcAccomActy3Grp/Desc0ACE'S RESIDENT SERVICES PROGRAM SUPPORTS FAMILIES AND INDIVIDUALS LIVING IN ACE HOUSING AND THEY IMPROVE THE SOCIAL, ECONOMIC, AND ENVIRONMENTAL CONDITIONS AFFECTING THEIR LIVES. THE PROGRAM OFFERS BETTER ACCESS TO COMMUNITY SERVICES, SKILL BUILDING WORKSHOPS, A RESIDENT NEWSLETTER, AND ACTIVITIES FOR ACE'S YOUTH AND ADULT RESIDENTS.
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IRS990/ProgSrvcAccomActyOtherGrp/Desc0ACE'S COMMUNITY BUILDERS PROGRAM PROVIDES FREE HOME REPAIRS FOR HOMEOWNERS WHO NEED HELP DUE TO AGE, DISABILITY AND LOW INCOME AND HELP HOMEOWNERS MAINTAIN THEIR INDEPENDENCE AND STAY SAFELY IN THEIR HOMES AND IN THEIR NEIGHBORHOODS.
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IRS990/PYSalariesCompEmpBnftPaidAmt0206241
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IRS990/QuidProQuoContributionsInd0false
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IRS990ScheduleA/Form990ScheduleAPartIVGrp/ExplanationTxt0OTHER 54,410
IRS990ScheduleA/Form990ScheduleAPartIVGrp/FormAndLineReferenceDesc0PART II, LINE 12
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IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus1YearAmt045994
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus2YearsAmt0115897
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus3YearsAmt0652547
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/CurrentTaxYearMinus4YearsAmt02130091
IRS990ScheduleA/GiftsGrantsContrisRcvd509Grp/TotalAmt02991944
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearAmt036935
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus1YearAmt024225
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus2YearsAmt030409
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus3YearsAmt013937
IRS990ScheduleA/GrossInvestmentIncome509Grp/CurrentTaxYearMinus4YearsAmt018989
IRS990ScheduleA/GrossInvestmentIncome509Grp/TotalAmt0124495
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearAmt0376827
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearMinus1YearAmt0378750
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearMinus2YearsAmt0737343
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearMinus3YearsAmt0512178
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/CurrentTaxYearMinus4YearsAmt0158975
IRS990ScheduleA/GrossReceiptsAdmissionsGrp/TotalAmt02164073
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IRS990ScheduleA/InvestmentIncomeCYPct00.02000
IRS990ScheduleA/InvestmentIncomePYPct00.02000
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IRS990ScheduleA/OtherIncome509Grp/CurrentTaxYearMinus2YearsAmt014149
IRS990ScheduleA/OtherIncome509Grp/CurrentTaxYearMinus3YearsAmt018768
IRS990ScheduleA/OtherIncome509Grp/CurrentTaxYearMinus4YearsAmt03054
IRS990ScheduleA/OtherIncome509Grp/TotalAmt054410
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IRS990ScheduleA/PublicSupportCY509Pct00.92290
IRS990ScheduleA/PublicSupportPY509Pct00.91190
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IRS990ScheduleA/SubstAndDsqlfyPrsnsTotGrp/CurrentTaxYearMinus3YearsAmt0197113
IRS990ScheduleA/SubstAndDsqlfyPrsnsTotGrp/CurrentTaxYearMinus4YearsAmt035219
IRS990ScheduleA/SubstAndDsqlfyPrsnsTotGrp/TotalAmt0232332
IRS990ScheduleA/SubstantialContributorsAmtGrp/CurrentTaxYearMinus3YearsAmt0197113
IRS990ScheduleA/SubstantialContributorsAmtGrp/CurrentTaxYearMinus4YearsAmt035219
IRS990ScheduleA/SubstantialContributorsAmtGrp/TotalAmt0232332
IRS990ScheduleA/ThirtyThrPctSuprtTestsCY509Ind0X
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IRS990ScheduleA/Total509Grp/CurrentTaxYearMinus1YearAmt0424744
IRS990ScheduleA/Total509Grp/CurrentTaxYearMinus2YearsAmt0853240
IRS990ScheduleA/Total509Grp/CurrentTaxYearMinus3YearsAmt01164725
IRS990ScheduleA/Total509Grp/CurrentTaxYearMinus4YearsAmt02289066
IRS990ScheduleA/Total509Grp/TotalAmt05156017
IRS990ScheduleA/TotalSupportCalendarYearGrp/CurrentTaxYearAmt0461177
IRS990ScheduleA/TotalSupportCalendarYearGrp/CurrentTaxYearMinus1YearAmt0467408
IRS990ScheduleA/TotalSupportCalendarYearGrp/CurrentTaxYearMinus2YearsAmt0897798
IRS990ScheduleA/TotalSupportCalendarYearGrp/CurrentTaxYearMinus3YearsAmt01197430
IRS990ScheduleA/TotalSupportCalendarYearGrp/CurrentTaxYearMinus4YearsAmt02311109
IRS990ScheduleA/TotalSupportCalendarYearGrp/TotalAmt05334922
IRS990ScheduleB/ContributorInformationGrp/ContributorBusinessName/BusinessNameLine10RESTRICTED
IRS990ScheduleB/ContributorInformationGrp/ContributorNum0RESTRICTED
IRS990ScheduleB/ContributorInformationGrp/ContributorUSAddress/AddressLine10RESTRICTED
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IRS990ScheduleB/ContributorInformationGrp/ContributorUSAddress/State0RESTRICTED
IRS990ScheduleB/ContributorInformationGrp/ContributorUSAddress/ZIPCode0RESTRICTED
IRS990ScheduleB/ContributorInformationGrp/TotalContributionsAmt0RESTRICTED
IRS990/ScheduleBRequiredInd0true
IRS990ScheduleD/BuildingsGrp/BookValueAmt03546374
IRS990ScheduleD/BuildingsGrp/DepreciationAmt0338054
IRS990ScheduleD/BuildingsGrp/OtherCostOrOtherBasisAmt03884428
IRS990ScheduleD/EquipmentGrp/BookValueAmt011479
IRS990ScheduleD/EquipmentGrp/DepreciationAmt04317
IRS990ScheduleD/EquipmentGrp/OtherCostOrOtherBasisAmt015796
IRS990ScheduleD/InvstProgramRelatedOrgGrp/BookValueAmt01053205
IRS990ScheduleD/InvstProgramRelatedOrgGrp/BookValueAmt1700926
IRS990ScheduleD/InvstProgramRelatedOrgGrp/BookValueAmt2242458
IRS990ScheduleD/InvstProgramRelatedOrgGrp/BookValueAmt3162852
IRS990ScheduleD/InvstProgramRelatedOrgGrp/BookValueAmt423
IRS990ScheduleD/InvstProgramRelatedOrgGrp/Desc0INVESTMENT IN MEWS
IRS990ScheduleD/InvstProgramRelatedOrgGrp/Desc1LAND CCC
IRS990ScheduleD/InvstProgramRelatedOrgGrp/Desc2INVESTMENT IN COVINGTON COMMONS
IRS990ScheduleD/InvstProgramRelatedOrgGrp/Desc3INVESTMENT IN CVA
IRS990ScheduleD/InvstProgramRelatedOrgGrp/Desc4INVESTMENT IN FRUIT VALLEY
IRS990ScheduleD/InvstProgramRelatedOrgGrp/MethodValuationCd0C
IRS990ScheduleD/InvstProgramRelatedOrgGrp/MethodValuationCd1C
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IRS990ScheduleD/LandGrp/BookValueAmt0455354
IRS990ScheduleD/LandGrp/OtherCostOrOtherBasisAmt0455354
IRS990ScheduleD/LeaseholdImprovementsGrp/BookValueAmt067536
IRS990ScheduleD/LeaseholdImprovementsGrp/DepreciationAmt08920
IRS990ScheduleD/LeaseholdImprovementsGrp/OtherCostOrOtherBasisAmt076456
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt0368104
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt180809
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt269277
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt39398
IRS990ScheduleD/OtherAssetsOrgGrp/Desc0CONSTRUCTION IN PROGRESS
IRS990ScheduleD/OtherAssetsOrgGrp/Desc1INTEREST RECEIVABLE ON NOTES
IRS990ScheduleD/OtherAssetsOrgGrp/Desc2DEVELOPMENT FEE RECEIVABLE
IRS990ScheduleD/OtherAssetsOrgGrp/Desc3TENANT DEPOSITS HELD IN TRUST
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt0242156
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt175000
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt272136
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt314398
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt48003
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Amt54118
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc0A/P CONSTRUCTION
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc1S/T PREDEV LOAN (TS)
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc2S/T PREDEV LOAN (SEN HSG)
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc3ACCRUED INTEREST
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc4TENANT SECURITY DEPOSITS
IRS990ScheduleD/OtherLiabilitiesOrgGrp/Desc5PREPAID RENT
IRS990ScheduleD/TotalBookValueLandBuildingsAmt04080743
IRS990ScheduleD/TotalBookValueOtherAssetsAmt0527588
IRS990ScheduleD/TotalBookValueProgramRltdAmt02159464
IRS990ScheduleD/TotalLiabilityAmt0415811
IRS990/ScheduleJRequiredInd0false
IRS990/ScheduleORequiredInd0true
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt0ACE'S COMMUNITY BUILDERS PROGRAM PROVIDES FREE HOME REPAIRS FOR HOMEOWNERS WHO NEED HELP DUE TO AGE, DISABILITY AND LOW INCOME AND HELP HOMEOWNERS MAINTAIN THEIR INDEPENDENCE AND STAY SAFELY IN THEIR HOMES AND IN THEIR NEIGHBORHOODS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt1REACH COMMUNITY DEVELOPMENT INC PROVIDES ACE ADMINISTRATIVE SERVICE FOR GENERAL OPERATING NEEDS, DEVELOPMENT SERVICES TO OVERSEE THE DEVELOPMENT OF NEW, OR REHABILITATION OF EXISTING AFFORDABLE HOUSING, AND CERTAIN ASSET MANAGEMENT SERVICES FOR RENTAL PROPERTIES ONWED BY AFFILIATED ENTITIES.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt2AFFORDABLE COMMUNITY ENVIRONMENTS AMENDED IT ARTICLES AND BYLAWS TO CHANGE FROM A NON-MEMBER TO A MEMBER ORGANIZATION.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt3REACH COMMUNITY DEVELOPMENT INC IS THE SOLE MEMBER OF AFFORDABLE COMMUNITY ENVIRONMENTS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt4REACH COMMUNITY DEVELOPMENT INC HAS THE AUTHORITY TO ELECT THE BOARD OF DIRECTORS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt5REACH COMMUNITY DEVELOPMENT INC HAS THE AUTHORITY TO RETAIN APPROVAL OVER CONTRACTS AND OTHER FINANCIAL MATTERS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt6THE PORTFOILIO MANAGEMENT AND DEVELOPMENT COMMITTEE WILL REVIEW THE FORM 990 AND RECOMMEND THE BOARD OF DIRECTORS ACCEPT IT AT THE FOLLOWING BOARD MEETING.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt7THE SECRETARY OF THE CORPORATION OR DESIGNEE SHALL REVIEW THE CONFLICTS OF INTEREST POLICY WITH EACH NEW DIRECTOR AND SHALL ASSIST EACH NEW DIRECTOR IN UNDERSTANDING AND COMPLYING WITH IT. ON AN ANNUAL BASIS, THE SECRETARY OF THE CORPORATION OR DESIGNEE SHALL DEVELOP AND MAINTAIN A LIST OF INSIDERS WHO ENGAGE IN OR ARE REASONABLY LIKELY TO ENGAGE IN TRANSACTIONS THAT CONSTITUTE CONFLICTS OF INTEREST WITH THE CORPORATION DURING THE YEAR. THE OFFICERS, DIRECTORS AND KEY EMPLOYEES SHALL EACH YEAR DISCLOSE INTERESTS THAT COULD GIVE RISE TO A CONFLICT OF INTEREST UNDER THIS POLICY. SUCH DISCLOSURE SHALL BE MADE ON A DISCLOSURE AND ACKNOWLEDGEMENT FORM AND SHALL BE FILED WITH THE CORPORATE SECRETARY OR DESIGNEE. THE SECRETARY OR DESIGNEE SHALL MONITOR AND ENFORCE COMPLIANCE WITH THIS POLICY BE REVIEWING THE LIST OF INSIDERS AND THE DISLCOSURE AND ACKNOWLEDGMENT FORMS EACH EYAR AND BY BRINGING POTENTIAL OR ACTUAL CONFLICTS TO THE ATTENTION OF THE PRESIDENT OF THE BOARD. THE SECRETARY OF THE CORPORATION OR DESIGNEE SHALL CONVEY THE LIST OF INSIDERS IDENTIFIED ABOVE TO THE EXECUTIVE DIRECTOR AND SHALL INSTRUCT THE EXECUTIVE DIRECTOR TO NOTIFY THE BOARD IF THE EXECUTIVE DIRECTOR OR ANY EMPLOYEE PLANS TO ENGAGE IN A TRANSACTION WITH AN INSIDER THAT CONSTITUTES A CONFLICT OF INTEREST. IF SO, THE BOARD SHALL MONITOR THE TRANSACTION TO ENSURE THAT IT COMPLIES WITH THE PROCEDURES CONTAINED IN THIS POLICY.

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