2013-05-07T15:14:46-05:00 2012-06-30 420714325 MCGLADREY LLP 221 THIRD AVENUE SE STE 300 CEDAR RAPIDS IA 524011512 990 2011-07-01 208640691 AFFORDABLE HOUSING NETWORK INC AFFO 3193656247 5400 KIRKWOOD BOULEVARD SW CEDAR RAPIDS IA 52404 JAMES A ERNST 3193656247 2013-05-02 1 KAY HEGARTY P00091057 3192985333 2011 2016-02-25 16:41:14Z JAMES A ERNST 5400 KIRKWOOD BOULEVARD SW CEDAR RAPIDS IA 52404 5474079 0 X WWW.AFFORDABLEHOUSINGNETWORK.ORG X 2007 IA TO PROVIDE AFFORDABLE HOUSING TO INDIVIDUALS AND FAMILIES IN NEED. 13 12 28 40 0 0 10169315 2587580 2234392 2878544 13097 7955 0 0 12416804 5474079 4251282 3638186 0 0 624089 745594 0 0 0 2899439 2893557 7774810 7277337 4641994 -1803258 25413118 23161509 13350994 12839176 12062124 10322333 X TO PROVIDE AFFORDABLE HOUSING TO INDIVIDUALS AND FAMILIES IN NEED. 1 1 3094677 0 2878544 AFFORDABLE HOUSING RENTALS: AHNI OWNS 463 AFFORDABLE HOUSING RENTAL UNITS AND MANAGES 85 AFFORDABLE HOUSING RENTAL UNITS, FOR A TOTAL OF 548 RENTAL UNITS INTENDED TO BE RENTED TO INDIVIDUALS AND FAMILIES WITH LOW TO VERY LOW INCOME. INCOME BETWEEN 50% AND 80% OF AREA MEDIAN INCOME (AMI) IS "LOW INCOME" AND INCOME BETWEEN 30% AND 50% OF AMI IS "VERY LOW INCOME." AHNI PROVIDES THE FOLLOWING SERVICES TO INSURE A STABLE AND CLEAN LIVING ENVIRONMENT: RENTAL AGENT SERVICES AND FACILITY MAINTENANCE. 3638186 3638186 BLOCK BY BLOCK: DURING THE YEAR ENDED JUNE 30, 2010 AHNI BEGAN A FLOOD REHABILITATION PROGRAM USING PRIVATELY DONATED DOLLARS TO REBUILD HOMES THAT WERE AFFECTED BY THE FLOODING IN CEDAR RAPIDS, IOWA IN 2008. AFTER THE PROGRAM HAD BEGUN THE PROGRAM RECEIVED A GRANT FROM THE IOWA FINANCE AUTHORITY TO ASSIST WITH THE COSTS INCURRED FOR PROPERTIES THAT THE PROGRAM PURCHASED TO REBUILD THEMSELVES. THE PURCHASED PROPERTIES ARE REHABILITATED AND PLACED FOR SALE IN ORDER TO PROVIDE AFFORDABLE HOUSING IN CEDAR RAPIDS. BUYERS MUST BE AT OR BELOW 80% AVERAGE MEDIAN INCOME (AMI) IN ORDER TO QUALIFY TO PURCHASE A HOME UNDER THIS PROGRAM. 120251 WELLINGTON HEIGHTS: IN JANUARY 2012, AHNI BEGAN A NEW PROJECT IN THE WELLINGTON HEIGHTS NEIGHBORHOOD OF CEDAR RAPIDS DESIGNED TO REDUCE RENTAL DENSITY, INCREASE THE NUMBER OF HOME OWNERS AND RETURN A NEIGHBORHOOD BACK TO THE MAJESTIC AND STABLE PLACE IT ONCE WAS. AHNI'S GOAL IS TO ACQUIRE AND FIX 100 PROPERTIES AND OFFER IMPROVED RENTALS, RENT-TO-OWN, AND REHABBED HOMES FOR SALE WITH THE ULTIMATE GOAL OF GUIDING CHILDREN AND FAMILIES TO SUCCESSFUL OUTCOMES AND STRENGTHENING THE COMMUNITY. 6853114 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 0 0 1 67 0 1 28 1 0 0 0 0 0 0 0 0 0 0 X 13 12 0 1 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 X SCOTT KRCHAK 3193640259 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 X GARY BECKER 2.00 X X 0 0 0 GREG CLEVELAND 1.00 X 0 0 0 LAURIE DAWLEY 1.00 X 0 0 0 KARL HOFFMAN 1.00 X X 0 0 0 ROBB VIZECKY 1.00 X 0 0 0 BEN HENDERSON 1.00 X X 0 0 0 BILL FLETCHER 1.00 X 0 0 0 SAM BERGUS 1.00 X 0 0 0 GAIL CUDWORTH 1.00 X 0 0 0 JERRY MCGRANE 1.00 X 0 0 0 EMILY MEYER 1.00 X 0 0 0 KATHI MOSS 1.00 X 0 0 0 MARTY STOLL 1.00 X 0 0 0 TEENA SELLERS 1.00 X 0 0 0 JODY STOFFEL 1.00 X 0 0 0 JAMES A ERNST 50.00 X 0 193285 67322 TAMI GILLMORE 50.00 X 0 117806 22060 JOE LOCK 50.00 X 72281 0 11220 72281 311091 100602 0 0 1 0 OLMSTEAD CONSTRUCTION 2210 A ST SW CEDAR RAPIDS IA 52404 CONSTRUCTION 551928 PATE ASPHALT SYSTEMS 3285 3RD AVE MARION IA 52302 CONSTRUCTION 421235 ECO-BUILDING SOLUTIONS PO BOX 9512 CEDAR RAPIDS IA 52404 CONSTRUCTION 314556 HANNA PLUMBING AND HEATING 1155 3RD AVE MARION IA 52302 CONSTRUCTION 290083 BETTER BUILT HOME ENHANCEMENTS PO BOX 196 WALFORD IA 52351 CONSTRUCTION 247583 18 742629 1782747 62204 2587580 RENTAL INCOME 531110 2274658 2274658 DEVELOPMENT FEE 236000 275929 275929 AUXILIARY RENTAL INCOM 531390 242825 242825 AFFILIATE SERVICES 531310 85132 85132 2878544 7955 7955 5474079 2878544 0 7955 3373305 3373305 264881 264881 75876 45735 30141 555348 437441 117907 18498 15386 3112 45626 33506 12120 50246 38969 11277 109704 109704 94948 7425 87523 74765 39044 35721 129265 77185 52080 6870 6595 275 24619 21959 2660 378310 362111 16199 39853 39662 191 555977 555977 784785 784785 134019 131804 2215 BLOCK BY BLOCK EXPENSE 184213 184213 REPAIRS AND MAINTENANCE 181264 181264 PROVISION FOR BAD DEBT 59990 59990 STAFF DEVELOPMENT 2791 242 2549 132184 81931 50253 7277337 6853114 424223 0 3559931 1871571 1552699 0 243437 39416 176493 140374 1434 1434 42712 31050 23271373 3925580 18191356 19345793 1353984 1417451 291072 314420 25413118 23161509 719275 93507 352960 0 10860317 10675548 279000 994217 835736 854243 303706 221661 13350994 12839176 X 9482123 9486281 2580001 836052 12062124 10322333 25413118 23161509 X -1803258 63467 X 0 1 1 X 1 1 X 74292 23499307 16909977 10169315 2587580 53240471 669494 1780398 2448294 2234392 2878544 10011122 743786 25279705 19358271 12403707 5466124 63251593 54292 39359 1000000 742629 1836280 221188 221188 54292 39359 1000000 963817 2057468 61194125 125 1268 8037 13097 7955 30482 125 1268 8037 13097 7955 30482 888 75474 63845 140207 744799 25356447 19430153 12416804 5474079 63422282 0.96490 0.00050 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1938962 1938962 20522154 3897368 16624786 80059 28212 51847 730198 730198 19345793 INVESTMENT IN RELATED ENTITY - BROWN APARTMENTS, LP 209801 C INVESTMENT IN RELATED ENTITY - AHNI HOLDINGS 1207650 C 1417451 ACCOUNTS PAYABLE-RELATED ORGANIZATIONS 85119 DEPOSITS 136542 221661 5474079 7277337 -1803258 63467 63467 -1739791 4781825 2996162 2996162 1785663 3688416 3688416 5474079 6664706 3075785 3075785 3588921 3688416 3688416 7277337 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: AFFORDABLE HOUSING NETWORK, INC. AND AHNI HOLDINGS ARE RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THESE AGENCIES MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAXES ON ANY NET INCOME FROM UNRELATED BUSINESS ACTIVITIES. THESE AGENCIES FILE FORMS 990 (RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX) ANNUALLY AND UNRELATED BUSINESS INCOME (UBI) IS REPORTED ON FORM 990-T, AS APPROPRIATE. AHNI PROPERTIES, INC. IS A TAXABLE CORPORATION UNDER THE INTERNAL REVENUE CODE REGULATIONS. BROWN APARTMENTS, LP IS TREATED AS A PARTNERSHIP FOR TAX PURPOSES. Y&Z PROPERTIES IS A DISREGARDED ENTITY FOR TAX PURPOSES. MANAGEMENT HAS EVALUATED THEIR MATERIAL TAX POSITIONS, WHICH INCLUDE SUCH MATTERS AS THE TAX EXEMPT STATUS AND VARIOUS POSITIONS RELATIVE TO POTENTIAL SOURCES OF UBI. AS OF JUNE 30, 2012 AND 2011, THERE WERE NO UNCERTAIN TAX BENEFITS IDENTIFIED AND RECORDED AS A LIABILITY. FORMS 990 AND 990-T FILED BY THE AHNI ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR THE FISCAL YEARS ENDED JUNE 30, 2008 AND PRIOR. PART XI, LINE 8 - OTHER ADJUSTMENTS: NET LOSS OF RELATED ENTITY - BROWN APARTMENTS, LP -145,724. NET INCOME OF RELATED ENTITY - AHNI HOLDINGS 66,101. NONCONTROLLING INTEREST IN NET LOSS OF PARTNERSHIP - BROWN APARTMENTS, LP 143,090. TOTAL TO SCHEDULE D, PART XI, LINE 8: 63,467. PART XII, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF RELATED ENTITY - BROWN APARTMENTS, LP 72,194. REVENUE OF RELATED ENTITY - AHNI HOLDINGS 2,923,968. PART XII, LINE 4B - OTHER ADJUSTMENTS: INTERCOMPANY ELIMINATIONS FOR CONSOLIDATED AUDIT REPORT 3,688,416. PART XIII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF RELATED ENTITY - BROWN APARTMENTS, LP 217,918. EXPENSES OF RELATED ENTITY - AHNI HOLDINGS 2,857,867. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INTERCOMPANY ELIMINATIONS FOR CONSOLIDATED AUDIT REPORT 3,688,416. PART XI, LINE 10 - RECONCILIATION TO EXCESS FOR THE YEAR PER AUDITED FINANCIAL STATEMENTS: CHANGE IN NET ASSETS BEFORE NONCONTROLLING INTEREST IN NET LOSS OF PARTNERSHIP PER CONSOLIDATED AUDITED FINANCIAL STATEMENTS: -1,882,881 PLUS - NONCONTROLLING INTEREST IN NET LOSS OF PARTNERSHIP: 143,090 EQUALS - PART XI, LINE 10, CHANGE IN NET ASSETS PER CONSOLIDATED AUDITIED FINANCIAL STATEMENTS: -1,739,791 1 AHNI HOLDINGS 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 271786138 501(C)(3) 2923968 N/A N/A BLOCK BY BLOCK PROGRAM AGING SERVICES 317 7TH AVE SE SUITE 302 CEDAR RAPIDS IA 52401 237085316 501(C)(3) 15657 N/A N/A SSBG GRANT SUBRECIPIENT: TO PERFORM REPAIR PROJECTS FOR FLOOD-AFFECTED SENIORS IOWA LEGAL AID 317 7TH AVE SE SUITE 404 CEDAR RAPIDS IA 52401 421079227 501(C)(3) 8293 N/A N/A SSBG GRANT SUBRECIPIENT: TO PROVIDE LEGAL ASSISTANCE FOR FLOOD-AFFECTED FAMILIES HOPE COMMUNITY DEVELOPMENT ASSOCIATION PO BOX 10261 CEDAR RAPIDS IA 52401 272950701 501(C)(3) 29554 N/A N/A SSBG GRANT SUBRECIPIENT: TO PROVIDE ASSISTANCE TO FLOOD AFFECTED FAMILIES BY REPAIRING HOMES MATTHEW 25 MINISTRY HUB 225 K AVE NW NO G CEDAR RAPIDS IA 52405 260467321 501(C)(3) 260664 N/A N/A BLOCK BY BLOCK PROGRAM MATTHEW 25 MINISTRY HUB 225 K AVE NW NO G CEDAR RAPIDS IA 52405 260467321 501(C)(3) 26833 0 N/A N/A WELLS FARGO GRANT SUBRECIPIENT: FOR BUYING DOWN HOMEBUYER MORTGAGES, REHAB OF EXISTING HOMES, BLOCK ORGANIZING, & NORTHWEST NEIGHBORHOOD ASSOCIATION YOUTH CEDAR VALLEY HABITAT FOR HUMANITY 350 6TH AVE SE CEDAR RAPIDS IA 52401 421320296 501(C)(3) 26833 0 N/A N/A WELLS FARGO GRANT SUBRECIPIENT: FOR SINGLE-FAMILY NEW HOME CONSTRUCTION, REHAB OF EXISTING HOMES, & PARTNER FAMILY SUPPORT AND EDUCATION NEIGHBORHOOD DEVELOPMENT CORP 210 DES MOINES ST DES MOINES IA 50309 421489223 501(C)(3) 15000 0 N/A N/A WELLS FARGO GRANT SUBRECIPIENT: FOR BUYING DOWN HOMEBUYER MORTGAGE 7 SSBG - HOMEOWNERS 20 264881 0 N/A N/A PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: BLOCK BY BLOCK PROGRAM GRANTS: BLOCK BY BLOCK IS A FLOOD REHABILITATION PROGRAM THAT PURCHASES, REHABILITATES, AND SELLS HOUSES TO LOW INCOME INDIVIDUALS. AHNI HOLDINGS IS A SEPARATE ENTITY FORMED FOR THE PURPOSE OF HOLDING TITLE TO THE HOUSES PURCHASED FOR THIS PROGRAM. THE FILING ORGANIZATION IS THE SOLE MEMBER OF AHNI HOLDINGS. THEREFORE, ALL FUNDS TRANSFERRED TO AHNI HOLDINGS REMAIN UNDER THE SUPERVISION OF THE FILING ORGANIZATION AND SEPARATE GRANT FUND MONITORING PROCEDURES ARE NOT APPLICABLE. THE BLOCK BY BLOCK GRANT TO MATTHEW 25 MINISTRY HUB IS REQUIRED TO BE USED FOR FLOOD REHABILIATION PURPOSES SPECIFIED IN THE GUIDELINES OF THE FUNDING GRANT PROGRAMS AND WRITTEN AGREEMENT. SOCIAL SERVICES BLOCK GRANTS (SSBG): THE ORGANIZATION VERIFIES INVOICES ITEMIZING REHABILITATION, REPAIR, OR LEGAL WORK PERFORMED PRIOR TO PAYMENT OF FUNDS TO PARTICIPATING INDIVIDUALS AND AGENCIES. UNDER THE TERMS OF THE GRANT CONTRACT WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, THE ORGANIZATION IS REQUIRED TO SUBMIT REPORTS DETAILING THE USE OF FUNDS AND INDIVIDUALS SERVED. IN ADDITION, SEVERAL AUDITS, MONITORING VISITS, ETC. WERE CONDUCTED IN FY12. WELLS FARGO GRANTS TO SUBRECIPIENTS: EACH SUBRECIPIENT HAS A SIGNED GRANT AGREEMENT TO USE THE GRANT FUNDS IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL LAWS, AND ONLY FOR COSTS ASSOCIATED WITH THE PROJECT AS DESCRIBED IN THE APPLICATION. 0 1 0 0 0 0 0 0 0 JAMES A ERNST 0 152253 0 35000 0 6032 0 60200 0 7122 0 260607 0 0 PART I, LINE 4B JAMES A. ERNST PARTICIPATES IN FOUR OAKS FAMILY AND CHILDREN'S SERVICES' SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE BENEFIT IS ACCRUED OVER THE PERIOD OF ACTIVE EMPLOYMENT AND IS PAYABLE UPON RETIREMENT. THE AGREEMENT HAS NO VESTING AND THE EMPLOYEE WILL FORFEIT PAYMENTS IF SEVERANCE OF EMPLOYMENT OCCURS. $54,500 OF DEFERRED COMPENSATION FROM THIS PLAN WAS ACCRUED DURING THE YEAR AND IS REPORTED IN SCH J, PART II, COL (C). SUPPLEMENTAL INFORMATION PART III PART I, LINE 3, PROCEDURES USED TO ESTABLISH THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR: JAMES A. ERNST, PRESIDENT/CEO IS COMPENSATED BY FOUR OAKS FAMILY & CHILDREN'S SERVICES, A RELATED TAX-EXEMPT ENTITY THAT IS THE SOLE MEMBER OF AHNI. JOE LOCK, EXECUTIVE DIRECTOR IS COMPENSATED BY AHNI, HOWEVER, HIS COMPENSATION IS ESTABLISHED BY FOUR OAKS. IN SETTING EXECUTIVE COMPENSATION FOR BOTH MR. ERNST AND MR. LOCK, FOUR OAKS UTILIZES A COMPENSATION SETTING COMMITTEE, AN INDUSTRY SALARY SURVEY, AND A MARKET REVIEW AND COMPENSATION COMPARISON OBTAINED EVERY THREE YEARS FROM AN INDEPENDENT ACCOUNTING FIRM. FOUR OAKS RETAINS DOCUMENTATION WITH REGARD TO CRITERIA USED TO ARRIVE AT COMPENSATION FOR EXECUTIVES. MR. ERNST DOES NOT RECEIVE ADDITIONAL COMPENSATION FOR THE SERVICES HE PROVIDES TO AHNI. LINN COUNTY IOWA 426004338 2007-05-23 5200000 ACQUISITION OF PROPERTY 0 0 0 LINN COUNTY IOWA 426004338 2009-09-23 6000000 REHAB OF BUILDING CONSTRUCTION 0 0 0 5200000 51343 41185 5107472 2007 0 0 1 1 6000000 33603 73799 5892598 2012 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 1 0 0 0 1 0 0 0 0 0 1 CEDAR RAPIDS BANK & TRUST GARY BECKER, BOARD PRESIDENT IS A KEY EMPLOYEE AT CRBT. 241110 LOAN INTEREST PAID TO CRBT: $240,586INTEREST EARNED ON DEPOSITS AT CRBT: $524 0 NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 SEE DESCRIPTION FOR PART III, LINE 4C: WELLINGTON HEIGHTS CHANGES IN PROGRAM SERVICES FORM 990, PART III, LINE 3 THE JUMPSTART PROGRAM FOR FLOOD-AFFECTED HOME OWNERS AND BUSINESSES ENDED AS OF JUNE 30, 2011. FORM 990, PART VI, SECTION A, LINE 3 AHNI HAS A MANAGEMENT AGREEMENT IN PLACE BY WHICH AHNI PAYS A FEE TO FOUR OAKS FAMILY AND CHILDREN'S SERVICES FOR THE MANAGEMENT OF AHNI'S DAY TO DAY OPERATIONS. FORM 990, PART VI, SECTION A, LINE 6 FOUR OAKS FAMILY AND CHILDREN'S SERVICES IS THE SOLE MEMBER OF AHNI. FORM 990, PART VI, SECTION A, LINE 7A FOUR OAKS, THE SOLE MEMBER OF AHNI, HAS THE POWER TO APPOINT THREE DIRECTORS, WHICH ARE THEN CONFIRMED BY THE AHNI BOARD. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN BOARD ACTIONS ARE SUBJECT TO MEMBER (FOUR OAKS) APPROVAL. FORM 990, PART VI, SECTION B, LINE 11 THE OUTSIDE TAX PREPARER REVIEWS THE FORM 990 IN DRAFT FORM WITH THE EXECUTIVE DIRECTOR, TOP FINANCIAL OFFICIAL, AND COMMITTEE RESPONSIBLE FOR REVIEW OF THE FORM 990. ALL QUESTIONS AND CONCERNS ARE ADDRESSED TO FULL SATISFACTION BEFORE BECOMING FINAL. THE FINAL FORM 990 IS PROVIDED TO THE FULL BOARD PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES ALL OFFICERS, DIRECTORS, AND EMPLOYEES TO SIGN A CONFLICT OF INTEREST STATEMENT ANNUALLY AS WELL AS REPORT ANY DUALITY OF INTEREST AS SOON AS THE INTEREST OCCURS. WHEN HIRING INDEPENDENT CONTRACTORS FOR MAJOR PROJECTS, THE ORGANIZATION SENDS REQUESTS FOR PROPOSAL ("RFPS.") FOR MAJOR RECURRING SERVICE CONTRACTS, RFPS ARE DONE EVERY 3-5 YEARS OR MARKET RATES ARE REVIEWED BY MANAGEMENT TO ENSURE THAT THE TERMS FOR RENEWING THE CONTRACT ARE STILL AT COMPETITIVE MARKET RATES. THROUGHOUT THE PROCESS, ANY INTERESTED BOARD MEMBERS AND/OR COMMITTEE MEMBERS MUST ABSTAIN FROM THE DISCUSSION AND THE SELECTION OF A CONTRACTOR. WHERE MAJOR CONFLICTS EXISTS, THE BOARD MEMBER WILL EITHER RESIGN AS A BOARD MEMBER OR WITHDRAW HIS/HER FIRM FROM CONSIDERATION FOR THE CONTRACT. AS AN ADDITIONAL SAFEGUARD, MANAGEMENT REVIEWS VENDOR LISTS AND BOARD MEMBER LISTS ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 JAMES A. ERNST, PRESIDENT/CEO AND TAMI GILLMORE, TOP FINANCIAL OFFICIAL ARE COMPENSATED BY FOUR OAKS FAMILY & CHILDREN'S SERVICES, A RELATED TAX-EXEMPT ENTITY THAT IS THE SOLE MEMBER OF AHNI. JOE LOCK, EXECUTIVE DIRECTOR IS COMPENSATED BY AHNI, HOWEVER HIS COMPENSATION IS ESTABLISHED BY FOUR OAKS. IN SETTING EXECUTIVE COMPENSATION, FOUR OAKS UTILIZES A COMPENSATION SETTING COMMITTEE, AN INDUSTRY SALARY SURVEY, AND A MARKET REVIEW AND COMPENSATION COMPARISON OBTAINED EVERY THREE YEARS FROM AN INDEPENDENT ACCOUNTING FIRM. FOUR OAKS RETAINS DOCUMENTATION WITH REGARD TO CRITERIA USED TO ARRIVE AT COMPENSATION FOR OFFICERS. MR. ERNST AND MS. GILLMORE DO NOT RECEIVE ADDITIONAL COMPENSATION FOR THE SERVICES THEY PROVIDE TO AHNI. OTHER OFFICERS AND DIRECTORS SERVING ON THE AHNI BOARD ARE UNCOMPENSATED VOLUNTEERS. FORM 990, PART VI, SECTION B, LINE 10A AND 10B: AFFORDABLE HOUSING NETWORK, INC. MANAGES SEVERAL LOW INCOME RESIDENTIAL RENTAL PROPERTIES OF AFFILIATED ENTITIES PURSUANT TO WRITTEN MANAGEMENT AGREEMENTS. ANY AFFILIATED ENTITIES IN WHICH AFFORDABLE HOUSING NETWORK, INC. HAS THE PRESCRIBED AMOUNT OF DIRECT OR INDIRECT OWNERSHIP OR CONTROL ARE LISTED AS RELATED ORGANIZATIONS ON FORM 990, SCHEDULE R, AS APPROPRIATE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. HOURS FOR RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, COLUMN (B): JAMES A. ERNST - 50 HRS/WK TAMI GILLMORE - 50 HRS/WK CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET LOSS OF RELATED ENTITY - BROWN APARTMENTS, LP -145,724. NET INCOME OF RELATED ENTITY - AHNI HOLDINGS 66,101. NONCONTROLLING INTEREST IN NET LOSS OF PARTNERSHIP - BROWN APARTMENTS, LP 143,090. TOTAL TO FORM 990, PART XI, LINE 5: 63,467. HAWTHORNE HILLS LLC 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 263623649 INACTIVE - LOW INCOME RESIDENTIAL REAL ESTATE RENTAL IA 0 0 AFFORDABLE HOUSING NETWORK INC Y & Z PROPERTIES LLC 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 453759118 LOW INCOME RESIDENTIAL REAL ESTATE IA 27538 1047810 AFFORDABLE HOUSING NETWORK INC FOUR OAKS FAMILY AND CHILDREN'S SERVICES 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 420998726 TREATMENT, COUNSELING, PREVENTION IA 501(C)(3) LINE 9 N/A 0 JANE BOYD COMMUNITY HOUSE 943 14TH AVENUE SE CEDAR RAPIDS IA 52401 420680359 INDIVIDUAL AND FAMILY SERVICES IA 501(C)(3) LINE 7 FOUR OAKS FAMILY AND CHILDREN'S SERVICES 0 AHNI HOLDINGS 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 271786138 LOW INCOME HOUSING IA 501(C)(3) LINE 11A, I AFFORDABLE HOUSING NETWORK INC 1 BROWN APARTMENTS LP 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 261195327 LOW INCOME RESIDENTIAL REAL ESTATE RENTAL IA AFFORDABLE HOUSING NETWORK INC RELATED -13 298743 0 1 0.00010 SUGAR CREEK BEND LLLP 14 WEST 21ST ST SPENCER IA 51301 270529358 LOW INCOME RESIDENTIAL REAL ESTATE RENTAL IA AHNI PROPERTIES INC RELATED 19 275993 0 1 0.00010 BLAIRS FERRY LIMITED PARTNERSHIP 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 421421298 LOW INCOME RESIDENTIAL REAL ESTATE RENTAL IA AFFORDABLE HOUSING NETWORK INC RELATED -2887 416660 0 0 0.99990 AHNI PROPERTIES INC 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 263756672 LOW INCOME RESIDENTIAL REAL ESTATE MANAGEMENT IA AFFORDABLE HOUSING NETWORK INC C 19 275993 1.00000 HARBET AVENUE PROPERTIES INC 5400 KIRKWOOD BLVD SW CEDAR RAPIDS IA 52404 264520424 INACTIVE - LOW INCOME RESIDENTIAL REAL ESTATE RENTAL IA AFFORDABLE HOUSING NETWORK INC C 1.00000 1 1 1 1 1 0 0 0 0 0 1 1 0 0 1 1 0 0 BROWN APARTMENTS LP A 6270 WRITTEN AGREEMENT AHNI HOLDINGS B 2923968 CASH BROWN APARTMENTS LP D 250738 WRITTEN AGREEMENT FOUR OAKS FAMILY AND CHILDREN'S SERVICES E 85119 CASH FOUR OAKS FAMILY AND CHILDREN'S SERVICES E 1000000 WRITTEN AGREEMENT (GUARANTEE) FOUR OAKS FAMILY AND CHILDREN'S SERVICES O 200706 COST AHNI HOLDINGS C 742629 CASH