2019-11-13T13:29:22-06:00 2018-12-31 PRICEWATERHOUSECOOPERS LLP 300 MADISON AVENUE NEW YORK NY 10017 990 2018-01-01 200043817 EHS I INC % JOSEPH LAVACCA EHS 2129777622 55 CLARK STREET BROOKLYN NY 11201 RAMALINGAM GANESH CPA CFO 2129777622 2019-11-12 true LAURA J PARELLO P01080295 6464713000 2019-11-12 207.237.184.83 12991520193175000001 2019-11-13 P 35EE26009C36D26ACC18716EF506AF82E5700BDE C4E514558723D2E82E030BC5EECBB7AC7DAB7CB0 2018 2020-04-17 16:48:07Z JEFFREY LYNFORD 55 CLARK STREET BROOKLYN NY 11201 13638662 false X WWW.STUDENTHOUSING.ORG X 2003 NY THE EHS & SUBSIDIARIES MISSION IS "TO ENHANCE THE NEW YORK CITY COLLEGE EXPERIENCE BY PROVIDING SAFE AND AFFORDABLE HOUSING IN AN ENRICHING STUDENT LIFE ENVIRONMENT" 8 8 0 0 0 0 0 0 13422305 13553247 127 121 16411 85294 13438843 13638662 0 0 0 0 1166836 999745 0 0 0 12704375 13681264 13871211 14681009 -432368 -1042347 16558716 15368324 2804902 2656857 13753814 12711467 THE EHS & SUBSIDIARIES MISSION IS "TO ENHANCE THE NEW YORK CITY COLLEGE EXPERIENCE BY PROVIDING SAFE AND AFFORDABLE HOUSING IN AN ENRICHING STUDENT LIFE ENVIRONMENT". false false 13002030 13553247 TO ACQUIRE BY LEASE OR OTHERWISE, MAINTAIN AND OPERATE, IN THE NEW YORK CITY METRO AREA, QUALITY, SAFE, STATE OF THE ART, AFFORDABLE, RESIDENTIAL FACILITIES FOR STUDENTS AND TEACHERS OF EDUCATIONAL INSTITUTIONS. 13002030 false false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false false false false false false false false false true true true false true 45 0 true 0 false false false false false false false false X 8 8 false false true false true false false true true false false true true true true true true false false false NY X JOSEPH LAVACCA 2129777622 55 CLARK STREET BROOKLYN NY 11201 WILLIAM COCKRUM III BOARD MEMBER 1.0 4.0 X 0 25000 0 JERRY HULTIN CHAIRMAN OF THE BOARD 1.0 4.0 X 0 25000 0 JOHN THOMAS RANDOLPH II Board Member 1.0 4.0 X 0 25000 0 DALE ANNE REISS BOARD MEMBER 1.0 4.0 X 0 25000 0 SAMARA BAREND Board Member 1.0 4.0 X 0 25000 0 DONALD D SHEETS Board Member 1.0 4.0 X 0 25000 0 DENNIS R IRVIN Board Member 1.0 4.0 X 0 25000 0 CARL RICHARD HARTMAN BOARD MEMBER 1.0 4.0 X 0 12500 0 ARIEL DYBNER SR VP GNRL COUNSEL, SECRETARY 0.6 29.4 X 0 142838 48674 JEFFREY LYNFORD PRESIDENT 0.7 34.3 X 0 584187 42764 JOSEPH LA VACCA TREASURER 7.0 28.0 X 0 166235 53652 RAMALINGAM GANESH SENIOR VP/CFO 1.75 33.25 X 0 221936 8633 FAYE BEAN SENIOR VP LEASING & MARKETING 6.3 28.7 X 0 215181 76487 CHRISTY CHATFIELD SENIOR VP STUDENT LIFE 7.0 28.0 X 0 193878 70233 KEVIN GROSS VP FACILITIES & PROPERTY MGMT 8.75 26.25 X 0 140041 16567 ADAM B KAUFMAN SENIOR HOUSING ADVISOR 11.2 23.8 X 0 148847 15998 DARLENE LEWIS CONTROLLER 7.0 28.0 X 0 110216 21981 MATIAS PAGOLA Chief Technology Officer 3.5 31.5 X 0 143621 14450 0 2254480 369439 0 false true false CLEANING BUILDING SERVICES 1133 Broadway Ste 412 NEW YORK NY 10010 CLEANING SERVICE 286368 DOYLE SECURITY SERVICES INC 108 S Franklin Ave VALLEY STREAM NY 11580 Security Service 127733 AARGO SERVICES INC 112-126 E 128TH STREET NEW YORK NY 10035 Security 439823 AM CONTRACTING 140 OCEAN PARKWAY BROOKLYN NY 11218 MAINTENANCE 103703 4 0 HOUSING AND DORMITORY 721310 13553247 13553247 13553247 121 121 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 VENDING MACHINE 900099 8322 8322 REIMBURSEMENT OF SECURITY 900099 70878 70878 MISCELLAENOUS 900099 6094 6094 85294 13638662 13624125 14537 0 0 0 0 184990 184990 0 726155 367226 358929 20614 9360 11254 67986 31680 36306 0 0 17456 17456 35400 35400 0 0 0 82514 82190 324 105598 105598 70220 70220 315690 315690 0 11588971 11516852 72119 20430 20430 0 15226 15226 0 0 266846 213122 53724 165089 144473 20616 REPAIRS & MAINTENANCE 498175 497810 365 STUDENT LIFE EXPENSE 139317 139317 MISCELLANEOUS 19412 19412 BAD DEBT EXPENSE 340920 340920 14681009 13002030 1678979 1248114 1422149 250406 250527 0 0 444649 63364 0 0 0 0 0 0 0 0 0 5550 3292484 3013532 533412 278952 0 0 0 0 0 0 0 0 14082135 13347782 16558716 15368324 76941 93113 0 0 2688775 2548977 0 0 0 0 0 0 0 0 0 0 39186 14767 2804902 2656857 X 13753814 12711467 0 0 0 0 13753814 12711467 16558716 15368324 -1042347 X false true X true false 790614 727746 62868 2501870 2285786 216084 278952 SECURITY DEPOSITS 392553 DUE FROM RELATED PARTIES 12955229 13347782 0 DUE TO RELATED PARTIES 14767 14767 X SCHEDULE D, PART X, LINE 2 FIN 48 THE ORGANIZATION IS TAX-EXEMPT UNDER SECTION 501(C)(2) OF THE INTERNAL REVENUE CODE. THEREFORE, NO PROVISION FOR INCOME TAXES HAS BEEN INCLUDED IN THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS. U.S. GAAP REQUIRES MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE ORGANIZATION AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF THE ORGANIZATION HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT BE SUSTAINED UPON EXAMINATION BY THE RELEVANT TAX AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE ORGANIZATION, AND HAS CONCLUDED THAT, AS OF DECEMBER 31, 2018, THERE ARE NO UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY (OR ASSET) OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. MANAGEMENT BELIEVES THAT ITS TAX-EXEMPT STATUS WOULD BE SUSTAINED UPON EXAMINATION. THE ORGANIZATION FILES INFORMATIONAL TAX RETURNS IN THE UNITED STATES FEDERAL AND NEW YORK STATE JURISDICTIONS. true true false ARIEL DYBNER SR VP GNRL COUNSEL, SECRETARY 0 140338 0 2500 0 0 0 6793 0 41881 0 191512 0 0 JEFFREY LYNFORD PRESIDENT 0 584187 0 0 0 0 0 12446 0 30318 0 626951 0 0 JOSEPH LA VACCA TREASURER 0 163835 0 2400 0 0 0 23334 0 30318 0 219887 0 0 FAYE BEAN SENIOR VP LEASING & MARKETING 0 211981 0 3200 0 0 0 31606 0 44881 0 291668 0 0 CHRISTY CHATFIELD SENIOR VP STUDENT LIFE 0 190978 0 2900 0 0 0 25352 0 44881 0 264111 0 0 KEVIN GROSS VP FACILITIES & PROPERTY MGMT 0 137941 0 2100 0 0 0 16567 0 0 0 156608 0 0 ADAM B KAUFMAN SENIOR HOUSING ADVISOR 0 147547 0 1300 0 0 0 6241 0 9757 0 164845 0 0 RAMALINGAM GANESH SENIOR VP/CFO 0 218636 0 3300 0 0 0 8633 0 0 0 230569 0 0 MATIAS PAGOLA Chief Technology Officer 0 68621 0 0 0 75000 0 3350 0 11100 0 158071 0 0 DEFERRED COMPENSATION PLAN IN 2015, THE BOARD OF DIRECTORS OF THE ORGANIZATION APPROVED A LONG TERM INCENTIVE COMPENSATION PLAN FOR MEMBERS OF THE SENIOR MANAGEMENT TEAM (OTHER THAN THE PRESIDENT) THAT HAVE BEEN WITH THE ORGANIZATION FOR AT LEAST TEN YEARS. THE PLAN COMPENSATES PARTICIPANTS BASED ON ORGANIZATIONAL CRITERIA OF THE FOLLOWING: WHETHER THE ORGANIZATION REACHES $2M IN CASH FLOW FOR THE CURRENT YEAR, WHETHER STUDENT SATISFACTION MEETS CERTAIN BENCHMARKS, INDIVIDUAL CRITERIA OF LONGEVITY WITH THE ORGANIZATION AND WHETHER THE DEPARTMENT THE INDIVIDUAL IS IN CHARGE OF IS WITHIN A CERTAIN PERCENTAGE OF THE PRIOR YEAR EXPENSE BUDGET. IN ADDITION THE PLAN GIVES DISCRETION TO THE BOARD OF DIRECTORS TO VARY FROM THESE CRITERIA. AS OF DECEMBER 31, 2018, THE AMOUNT CALCULATED AS DEFERRED COMPENSATION TO BE PAID TO ELIGIBLE EMPLOYEES OF THE PLAN AFTER EXPIRY OF A VESTING PERIOD OF 5 YEARS WAS $255,748. THE FOLLOWING MEMBERS OF THE SENIOR MANAGEMENT TEAM ARE ELIGIBLE TO PARTICIPATE: SENIOR VICE PRESIDENT OF LEASING AND MARKETING $88,914, SENIOR VICE PRESIDENT OF STUDENT LIFE $66,376, TREASURER $61,275 AND VICE PRESIDENT OF FACILITIES $39,183. AS OF DECEMBER 2018, $187,047 REPRESENTING THE ACCRUED PORTION OF THE PAYABLE OF $255,748 HAS BEEN FUNDED. PART I QUESTION 4A DURING 2018, MATIAS PAGOLA RECEIVED A SEVERANCE PAYMENT OF $75,000 FORM 990, PART VI, LINE 6 MEMBERS OF THE ORGANIZATION THE ORGANIZATION IS THE TYPE OF NOT-FOR-PROFIT CORPORATION THAT IS REQUIRED TO HAVE MEMBERS. THE DIRECTORS OF THE ORGANIZATION ACT AS THE MEMBERS. FORM 990, PART VI, LINE 11B FORM 990 PROVIDED TO GOVERNING BODY THE FORM 990 FOR 2018 WAS PROVIDED TO THE FULL BOARD SUBSEQUENT TO THE SEPTEMBER 2019 BOARD MEETING FOR REVIEW AND COMMENT. APPROVAL VIA BOARD VOTE OF THE FORM 990 IS REQUIRED PRIOR TO FILING THE REPORT TO THE IRS. FORM 990, PART VI, LINE 12C CONFLICT OF INTEREST POLICY EHS' CONFLICT OF INTEREST POLICY REQUIRES THE FILING BY ALL BOARD MEMBERS AND SENIOR OFFICERS OF THE ORGANIZATION OF ANNUAL CONFLICTS DISCLOSURE STATEMENT. THESE STATEMENTS ARE REVIEWED BY THE GOVERNANCE AND COMPENSATION COMMITTEE QUARTERLY FOR ANY CONFLICT. IN DECEMBER 2012, THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK ("OAG") CONCLUDED ITS INVESTIGATION OF THE ORGANIZATION AND ENTERED INTO AN ASSURANCE OF DISCONTINUANCE ("AOD") WITH THE ORGANIZATION, ITS FORMER CEO AND PRESIDENT AND ITS FORMER BOARD OF DIRECTORS. THE AOD SET FORTH SPECIFIC FINDINGS AND PROSPECTIVE RELIEF WHEREBY THE ORGANIZATION WOULD RECEIVE MONETARY COMPENSATION FROM FUNDS SET ASIDE BY THE OAG AND FUNDED BY THE FORMER CEO AND PRESIDENT, THE FORMER BOARD OF DIRECTORS AND BENEFIT FROM THE RESCINDING OF A CONTRACT WITH A SERVICE PROVIDER ENTERED INTO BY THE FORMER MANAGEMENT OF THE ORGANIZATION. THE NET MONETARY RELIEF PURSUANT TO THE AOD TOTALING $5.3 MILLION WAS TO BE APPLIED BY THE ORGANIZATION FOR THE BENEFIT OF THE ORGANIZATION'S STUDENT RESIDENTS IN THE FORM OF REBATES TOTALING UP TO $1.5 MILLION AND CAPITAL EXPENDITURES OF NOT LESS THAN $3.8 MILLION TO UPGRADE THE ROOMS AND AMENITIES THE ORGANIZATION PROVIDES TO ITS STUDENT RESIDENTS. THE ORGANIZATION UTILIZED AN INDEPENDENT THIRD PARTY VENDOR TO ADMINISTER THE REBATE DISBURSEMENT PROCESS. THE REBATE DISBURSEMENT PROCESS INVOLVED IDENTIFYING AND COMMUNICATING (THROUGH EMAIL AND FIRST CLASS MAIL) WITH STUDENTS WHO WERE RESIDENTS DURING THE YEARS 2012 AND 2013 WHO WOULD BE ELIGIBLE FOR RECEIVING THE REBATES LINKED TO THEIR PERIOD OF THEIR STAY. FOR THE YEARS 2012 AND 2013, CHECKS FOR $505,037 AND $495,012 WERE ISSUED TO 4,758 AND 5,032 STUDENTS RESPECTIVELY. THIS AMOUNTED TO $1,000,049, REPRESENTING 67% OF THE AMOUNT OF $1.5 MILLION SET ASIDE BY THE AOD TO COVER THE ISSUANCE OF REBATES DISBURSED TO ELIGIBLE AND VERIFIED STUDENTS. THE CLAIM PERIOD FOR RECEIVING REBATES AS PER THE AOD HAS ENDED. THEREFORE, PURSUANT TO ARRANGEMENTS MADE WITH THE OAG, THE BALANCE OF $499,951 IS TO BE UTILIZED BY THE ORGANIZATION FOR ADDITIONAL DORMITORY IMPROVEMENTS IN ITS RESIDENCES. IN 2017, IT WAS REPORTED THAT OUT OF THE CHECKS ISSUED IN 2012 AND 2013 TO ELIGIBLE STUDENTS AS DESCRIBED EARLIER, THERE WERE $131K OF UNCASHED (OUTSTANDING) CHECKS WHICH HAVE NOT BEEN PRESENTED FOR PAYMENT. A NEW EFFORT WAS LAUNCHED TO REACH THESE STUDENTS BY EMAIL AND FIRST CLASS MAIL WHICH RESULTED IN AN ADDITIONAL $11K BEING CASHED, LEAVING AN UNCASHED BALANCE OF $120K. THE ORGANIZATION ADVISED THE OAG THAT THIS UNCASHED AMOUNT OF $120K WOULD BE RETURNED TO THE ORGANIZATION TO BE USED FOR FURTHER DORMITORY IMPROVEMENTS. THE ORGANIZATION HAS RECEIVED THESE FUNDS IN JUNE 2018. OVER THE PERIOD FROM 2012-2018, THE ORGANIZATION HAS UPGRADED SEVERAL RESIDENCES WITH IMPROVED WI-FI EQUIPMENT AND INTERNET SERVICES, SECURITY CAMERAS, NEW FURNITURE, STATE OF THE ART COOKING FACILITIES AND UPGRADED COMMON AREA SPACE AT A COST OF APPROXIMATELY $4.3 MILLION. THE ORGANIZATION HAS UTILIZED THE BALANCE OF $130K REMAINING FROM THE AOD FUNDS, WHICH AMOUNT WAS USED FOR CONTINUING UPGRADING ROOMS AND AMENITIES, NEW FLOORING AND BATHROOM RENOVATIONS DURING 2018 CONSISTENT WITH THE TERMS OF THE AOD. AS OF DECEMBER 31, 2018 THE ORGANIZATION HAS UTILIZED ALL BALANCES IN IMPROVING THE DORMITORY RESIDENCES FOR ITS STUDENTS AND HAS FULLY COMPLIED WITH THE AOD. FORM 990, PART VI, LINE 15A & 15B COMPENSATION POLICY 990 Part VI-LINE 15A: IN JULY 2015, THE ORGANIZATION, WITH REVIEW AND APPROVAL OF THE GOVERNANCE, FINANCE AND COMPENSATION COMMITTEE AND INPUT FROM OUTSIDE COMPENSATION CONSULTANTS GRANT THORNTON, LLP, EXTENDED THE EMPLOYMENT CONTRACT OF ITS PRESIDENT FOR AN ADDITIONAL TERM OF FIVE YEARS ENDING NOVEMBER 11, 2020. IN ADDITION, THE BOARD APPROVED A ONE TIME SALARY INCREASE OF 7% EFFECTIVE NOVEMBER 12, 2015. PART VI - LINE 15B IN 2018 THE ORGANIZATION RE-ENGAGED GRANT THORNTON LLP TO REVIEW THE COMPENSATION LEVELS OF OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION TO PROVIDE THE BOARD WITH A DETERMINATION OF COMPENSATION FOR THOSE EMPLOYEES. BASED ON THIS REVIEW NO OTHER COMPENSATION DECISIONS WERE MADE FOR ANY OTHER OFFICER OR KEY EMPLOYEES OF THE ORGANIZATION. FORM 990, PART VI, LINE 19 DOCUMENTS AVAILABLE FOR PUBLIC INSPECTION COPIES OF THE ANNUAL FINANCIALS AND OTHER GOVERNING DOCUMENTS ARE SENT TO THE STATE OF NEW YORK, NEW YORK STATE BOND COMMISSION, AND THE BOARD OF DIRECTORS. COPIES ARE ON FILE AND AVAILABLE UPON REQUEST. THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FORM 990 PAYROLL EHS CONTRACTS WITH ADP TOTAL SOURCE FOR THEIR HUMAN RESOURCES/PAYROLL SERVICES. AS SUCH, ALL EMPLOYEES OF EHS BECAME PART OF ADP'S PROFESSIONAL EMPLOYER ORGANIZATION (PEO) GROUP. FOR W-2 PURPOSES, ADP IS LISTED AS THE EMPLOYER OF ALL EHS EMPLOYEES. EHS IS THE SOLE ENTITY THAT PAYS THE EMPLOYEES OF ALL THE RELATED/CONTROLLING ENTITIES. ALLOCATIONS ARE MADE FROM EHS TO THESE ENTITIES BASED ON ACTUAL TIME WORKED BY EACH EMPLOYEE WHEN KNOWN, OR BY AN ALLOCATION OF MANAGEMENT SALARIES BASED UPON THE ESTIMATED TIME WORKED THROUGH THE YEAR ON THESE ENTITIES. HOURS OF BOARD MEMBERS ARE BASED UPON THE QUARTERLY AND MONTHLY MEETINGS INCLUDING REGULAR INTERACTIONS WITH MANAGEMENT IN PERSON AND TELEPHONICALLY AS IT RELATES TO A PARTICULAR ENTITY. PART VI LINE 4A CHANGE TO GOVERNING DOCUMENTS ON JUNE 20, 2018, THE ORGANIZATION'S BOARD OF DIRECTORS AMENDED THE COMPANY BY-LAWS ELIMINATING TERM LIMITS FOR BOARD MEMBERS. EDUCATIONAL HOUSING SERVICES INC 55 CLARK STREET BROOKLYN NY 11201 133411159 STUD. HOUSING NY 501(C)(3) 10 NA false EHS II INC 55 CLARK STREET BROOKLYN NY 11201 200108370 STUD. HOUSING NY 501(C)(2) EHS INC true EHS III INC 55 CLARK STREET BROOKLYN NY 11201 200236647 STUD. HOUSING NY 501(C)(2) EHS INC true false false false false false false false false false false false false false false true false false true true EHS II INC R 85752 OPERATING EXP.