Telacu Housing-El Monte Inc.

“Telacu housing - el monte, inc. Is managed by telacu residential management, inc., a professional management company. Telacu residential management, inc. Has a project owner's and management agent's certification for multifamily housing projects with the u.s. Department of housing and urban development. Under this certification, hud has approved telacu residential management, inc. To manage the telacu housing - el monte apartment community. The management contract encompasses the day to day operations of the project including, but not limited to, collection of rents, maintenance of facilities, supervision of staff, and ongoing support for both the owners and tenants as needed in order to establish a safe, sanitary and affordable environment. None of the officers or directors listed in part vii are compensated by telacu residential management, inc.”

“Membership in the corporation shall at all times be limited to individuals who are either members of telacu or who have the approval of telacu.”

“The directors of the corporation shall, at all times, be limited to individuals who are either directors or members of the sponsor entity, telacu, or nonmembers who have the approval of the board of directors of the sponsor.”

“The bylaws may be amended, repealed, or added to, or new bylaws may be adopted by the vote or written consent of the majority of the members entitled to vote at a meeting duly called for that purpose.”

“The auditing firm sends a draft of the return to the management company. The management company forwards a copy of the return to each board member for their comments prior to filing.”

“Review the policy on an annual basis with the board of directors to make sure that everyone is in compliance and additional meetings occur if necessary.”

“The compensation policy is determined based upon occasional compensation studies performed by an independent compensation consultant.”

“The form 990 and all related financial and policy information are made available to the public upon written request.”

“Average number of hours worked all of the officers, directors, and employees listed in part vii, section a perform similar duties and have similar responsibilities for related organizations as they do for this organization. That is, they make major decisions and provide management services. While the duties and responsibilities are similar, those listed in part vii, section a do not spend the same amount of time on each type of related entity. The hours worked per week are not recorded for officers; 48 hours is being reported as the amount worked for related organizations. While 48 hours per week is listed, the officers often work more than 48 hours per week.”

“Additional compensation disclosure--michael lizarraga in addition to the $24,000 401(k) plan, the president will receive an executive retirement benefit payable upon retirement of $175,000 a year for life. As of 12/31/2017, mr. Lizarraga was 25% vested in the benefit.”

“Additional compensation disclosure--paul samuel in addition to the $24,000 401(k) plan, mr. Samuel will receive a deferred compensation lump sum payment with a current value of approximately $80,000 to $90,000. As of 12/31/2017, mr. Samuel was 100% vested.”

“Oversight of auditing function the management company receives a copy of the audit. Prior to the finalization of the audit, a copy of the audit is given to all of the board members for their comments. When the audit is up for bid, the board discusses the relationship with the current auditors and makes a determination as to whether to maintain this relationship or change to a new auditing firm.”