2012-12-10T16:27:17-06:00 2011-12-31 133385019 O'CONNOR DAVIES MUNNS & DOBBINS LLP 500 MAMARONECK AVENUE HARRISON NY 105281633 990 2011-01-01 133627750 COMMUNITY HOUSING INNOVATIONS INC COMM 9146831010 190 EAST POST ROAD WHITE PLAINS NY 10601 JEROME J AUGUST 9146831010 2012-12-07 1 GARRETT HIGGINS P00543209 9143818900 2011 2016-02-24 21:20:13Z ALEXANDER H ROBERTS 190 EAST POST ROAD WHITE PLAINS NY 10601 20029856 0 X WWW.CHIGRANTS.ORG X 1991 NY TO ESTABLISH, MAINTAIN AND OPERATE TRANSITIONAL HOUSING AND TO DEVELOP PERMANENT HOUSING FOR HOMELESS AND LOW-INCOME INDIVIDUALS AND FAMILIES. 6 5 240 5 0 0 3183719 3960512 12748139 14314352 165086 172866 572336 252784 16669280 18700514 746100 1001400 0 0 6497273 7283024 0 0 0 9284943 10122263 16528316 18406687 140964 293827 31177274 31140044 26798913 25777479 4378361 5362565 X COMMUNITY HOUSING INNOVATIONS, INC. (CHI), FOUNDED IN 1991, IS A NOT-FOR-PROFIT ORGANIZATION SERVING FIVE NEW YORK STATE COUNTIES. CHI'S MISSION IS TO "PROVIDE LOW AND MODERATE INCOME FAMILIES AND INDIVIDUALS WITH THE HOUSING AND HUMAN SERVICES THAT ENABLE THEM TO ACHIEVE THE GREATEST SOCIAL AND ECONOMIC INDEPENDENCE AT THE LOWEST COST TO SOCIETY." 0 0 9992117 10312201 THROUGH THE SUFFOLK COUNTY DEPARTMENT OF SOCIAL SERVICES, CHI OPERATES 13 CONGREGATE SUPERVISED FAMILY RESIDENCES (SFRS) AND ONE CONGREGATE SUPERVISED SINGLES RESIDENCE (SSR) WHICH IS LICENSED BY NEW YORK STATE. ALL HAVE STAFF AVAILABLE 24 HOURS PER DAY, 365 DAY PER YEAR. THROUGH ON-SITE CASE MANAGEMENT AND REFERRALS TO COMMUNITY SERVICES THE HOMELESS PERSONS ARE ASSISTED IN BECOMING PERSONALLY AND ECONOMICALLY SELF-SUFFICIENT. THE SEARCH FOR PERMANENT HOUSING IS THE PRIMARY GOAL FOR ALL SHELTER RESIDENTS AND CHI PROMOTES AND ASSISTS WITH THE HOUSING SEARCH. PARENTS, SINGLE INDIVIDUALS AND CHILDREN ARE PROVIDED WITH A SAFE HOME AND ACCESS TO EDUCATIONAL, VOCATIONAL, EMPLOYMENT AND OTHER COMMUNITY SERVICES BASED UPON THE GOALS THEY SET FOR THEMSELVES. THIS ALSO INCLUDES REFERRALS TO RESOURCES FOR THOSE WITH MENTAL ILLNESSES, HISTORIES OF SUBSTANCE ABUSE, PHYSICAL DISABILITIES AND OTHER SPECIALIZED NEEDS. CHI HAS IMPLEMENTED A TUTORING INITIATIVE FOR PARENTS WORKING TOWARDS A GED.THE 13 SUPERVISED FAMILY RESIDENCES SERVE ONLY FAMILIES AND ARE LOCATED IN LARGE HOMES IN RESIDENTIAL COMMUNITIES. THE LICENSED SSR PROGRAM SERVES 31 SINGLE MALES. DURING THE PAST YEAR, THE PROGRAMS SERVED 620 INDIVIDUALS INCLUDING THE CHILDREN. 71% WERE FEMALE AND OF THOSE, 50% WERE SINGLE PARENTS. 5% WERE SINGLE PARENT MALES. 13% OF THE TOTAL DESCRIBED THEMSELVES AS TWO-PARENT FAMILIES. THE MAJORITY RANGED IN THE AGES BETWEEN 21 AND 30 (47%) AND THE NEXT LARGEST GROUP WAS 21% AGED 31 TO 40 WITH 17% AGED 41 TO 50. 47% IDENTIFIED THEMSELVES AS BLACK/AFRICAN AMERICANS AND 44% INDICATED THEY WERE WHITE/CAUCASIAN. WITH THE CONSTANT, INTENSIVE CASE MANAGEMENT AND SUPERVISION BY HIGHLY QUALIFIED SOCIAL WORKERS AND OTHER STAFF, SHELTER RESIDENTS ARE HELPED TO SECURE THEIR PERMANENT HOUSING OR OTHER APPROPRIATE RESIDENCE IF THEY ARE DETERMINED TO HAVE SPECIAL NEEDS. PARENTS ARE COUNSELED AND CHILDREN ARE ENCOURAGED TO ATTEND SCHOOL AND COMPLETE HOMEWORK. WORKSHOPS ARE FREQUENTLY PROVIDED OFFERING GUIDANCE IN AREAS SUCH AS NUTRITION AND PARENTING. THE SERVICES PROVIDED DURING THE SHELTER STAY ARE DESIGNED TO ASSIST PARTICIPANTS WITH FINDING AND RETAINING THEIR PERMANENT HOUSING. 4061852 3625378 THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) AWARDS FUNDING TO AGENCIES FOR THE ACQUISITION, REHABILITATION, OPERATION AND PROVISION OF SUPPORTIVE SERVICES FOR HOMELESS FAMILIES AND INDIVIDUALS. ALL OF THE PARTICIPANTS MUST HAVE A DISABLING CONDITION AS PART OF THEIR ELIGIBILITY.THE SHP PROGRAM IS A VALUABLE TOOL IN THE EFFORT TO END HOMELESSNESS. COMMUNITY HOUSING INNOVATIONS, INC. (CHI) IS THE LARGEST PROVIDER OF THE SHP PROGRAMS ON LONG ISLAND, COVERING BOTH NASSAU AND SUFFOLK COUNTIES. SOME GRANTS ARE IN PARTNERSHIP WITH OTHER AGENCIES. THESE PARTNERSHIPS DRAW ON THE EXPERTISE OF CHI AND OTHER AGENCIES TO PROVIDE SUPPORTIVE SERVICES WHILE CHI ACTS AS THE HOUSING DEVELOPER AND PROPERTY MANAGER. DURING THE PAST 15 YEARS, CHI HAS BEEN AWARDED $18.6 MILLION BY HUD FOR THE ACQUISITION, REHABILITATION, OPERATIONS AND PROVISION OF SERVICES. PRIVATE LENDERS COMMITTED MORTGAGES OF $3.5 MILLION TO AUGMENT THE COSTS OF ACQUISITION AND REHABILITATION. ADDITIONAL FUNDS HAVE BEEN OBTAINED AT VARIOUS TIMES THROUGH THE NASSAU AND SUFFOLK COUNTY OFFICES OF COMMUNITY DEVELOPMENT FOR REHABILITATION AND MAINTENANCE OF THE HOUSING. USING THIS MODEL, CHIS BI-COUNTY SHP PROGRAMS CREATED PERMANENT HOUSING WHICH ON ANY GIVEN DAY, SERVES 49 SINGLES AND 30 FAMILIES WHO WERE FORMERLY HOMELESS. THE HOUSING PERMANENCY AND SUPPORTIVE SERVICES HAVE ENABLED THEM TO DEVELOP PERSONAL AND ECONOMIC GROWTH AND INDEPENDENCE. INCLUDING THE CHILDREN, DURING THE PAST YEAR THESE HOMES HAVE SHELTERED 1,200 FORMERLY HOMELESS PERSONS. ON AVERAGE, 46% OF THE RESIDENTS HAVE A MENTAL HEALTH OR DUAL DIAGNOSIS, 47% A HISTORY OF CHRONIC SUBSTANCE ABUSE AND 6% A DEVELOPMENTAL DISABILITY AND 1% A BROAD-SPECTRUM DIAGNOSIS. THE MAJORITY OF THE TENANTS ARE NOT MARRIED. 42% DESCRIBE THEMSELVES AS CAUCASIAN AND 52% AS BLACK OR AFRICAN AMERICAN. 4.5% INDICATE THEY ARE VETERANS. 54% OF THE PARTICIPANTS REPORT HAVING EITHER A HIGH SCHOOL DIPLOMA OR GED AND 14% POST SECONDARY EDUCATION. THERE IS LITTLE TURNOVER IN THESE UNITS WHERE TENANTS PAY NO MORE THAN 30% OF THEIR ADJUSTED GROSS INCOME. FOR A SINGLE INDIVIDUAL ON SSI OR PUBLIC ASSISTANCE, THIS MEANS A RENTAL PAYMENT OF $288 OR LESS. THE AVERAGE 'FAIR MARKET' MONTHLY RENT FOR AN EFFICIENCY APARTMENT IS $1,014. A ONE-BEDROOM APARTMENT IS $1,285 IN BOTH NASSAU COUNTY AND SUFFOLK COUNTIES, A TWO-BEDROOM IT IS $1,583, AND FOR A THREE-BEDROOM IT IS $2,058. THIS IS A CAUSATIVE FACTOR IN THE CREATION OF HOMELESSNESS AND AN INDIVIDUALS INABILITY TO SECURE PERMANENT HOUSING. THE TENANTS RANGE IN AGE FROM UNDER 17 TO OVER 71 YEARS OF AGE WITH THE MAJORITY BEING 20 TO 50 YEAR OLDS. 1666602 1001400 FIRST-TIME HOME BUYER GRANTS:CHI ADMINISTERED FIRST TIME HOME BUYER GRANTS FOR FAMILIES AND INDIVIDUALS IN 2011. THE GRANTS ARE PROVIDED BY NEW YORK STATE AGENCIES. CHI DISTRIBUTED 49 GRANTS THAT SERVED FAMILIES IN WESTCHESTER COUNTY, SUFFOLK COUNTY AND ORANGE COUNTY. IN ADDITION TO THE GRANT ADMINISTRATION CHI PROVIDES COUNSELING SERVICES TO THE 49 GRANT RECIPIENTS AND OTHER CLIENTS TO HELP THEM THROUGH THE HOME PURCHASE PROCESS. 1388325 376773 CHI OPERATES OTHER SMALLER PROGRAMS TO HELP LOW TO MODERATE INCOME INDIVIDUALS AND FAMILIES ACHIEVE GREATER SELF-SUFFICIENCY. 1388325 376773 17108896 1 1 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 1 164 0 1 240 1 0 0 0 0 0 1 1 0 0 0 0 X 6 5 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X X JEROME J AUGUST 9146831010 190 EAST POST ROAD WHITE PLAINS NY 10601 ALEXANDER H ROBERTS 40.00 X X 214913 0 17294 STEVEN BRILL 0.30 X X 0 0 0 GERRY E FEINBERG 0.30 X 0 0 0 MARY BRINSON 0.30 X X 0 0 0 SHARLETTE N FRALEY 0.30 X 0 0 0 JEREMY N INGPEN 0.30 X 0 0 0 JEROME J AUGUST 40.00 X 139475 0 12554 ELIZABETH THOMAS 40.00 X 141376 0 12221 ROSEMARY DEHLOW 40.00 X 128104 0 15315 DEBORAH POST 40.00 X 141799 0 11801 LYNN MITCHELL 40.00 X 100924 0 4905 866591 0 74090 6 0 1 0 ARROW SECURITY 60 KNICKERBOCKER AVE BOHEMIA NY 11716 SECURITY SERVICES 591794 LAZZ DEVELOPMENT CO LLC 8 HILLTOP DRIVE PORT CHESTER NY 10573 RENOVATIONS 230000 JE ACTIVITIES PO BOX 206 BRONX NY 10475 RENOVATIONS 206338 37 AVENUE CONTRACTING CORPORATION PO BOX 9569 PHILADELPHIA PA 19124 MAINTENANCE SERVICES 182340 LATO SUPPLY CORPORATION PO BOX 14830 PHOENIX AZ 85063 MAINTENANCE SERVICES 157184 10 49867 2951752 958893 561881 3960512 SCATTERED SITE HOUSING 532000 10312201 10312201 RENTAL INCOME 532000 3625378 3625378 ENERGY AUDITS 900099 187268 187268 MGMT & SOCIAL SERV FEE 531390 161507 161507 JOB PLACEMENT SERVICES 531390 21092 21092 6906 6906 14314352 5691 5691 1454492 1287317 167175 167175 167175 10098 49867 42025 -31927 -31927 1156 0 1156 1156 DEVELOPMENT FEE INCOME 900099 233345 233345 OTHER INCOME 900099 31386 31386 INSURANCE PROCEEDS 900099 12280 12280 6544 6544 283555 18700514 14314352 0 425650 1001400 1001400 553045 80007 473038 5638566 5365088 273478 115911 107532 8379 277384 253701 23683 698118 599869 98249 114686 114686 47500 47500 1020210 953674 66536 21114 15537 5577 384117 261420 122697 4994055 4936096 57959 194611 183789 10822 37587 19276 18311 871295 858665 12630 246250 237635 8615 REPAIRS AND MAINTENANCE 1707835 1645815 62020 FOOD 286744 286744 MISCELLANEOUS 108856 100991 7865 LETTER OF CREDIT FEES 52010 52010 35393 34961 432 18406687 17108896 1297791 0 436092 821211 429071 435051 2945681 3089909 4506 78672 31607401 7450493 24161926 24156908 61798 623582 3138200 1934711 31177274 31140044 2210699 2065540 11463182 11171955 230783 235937 11612598 11266263 1281651 1037784 26798913 25777479 X 4328361 5080709 50000 281856 4378361 5362565 31177274 31140044 X 293827 690377 X X 0 1 1 X 0 X 87476 58775 2435240 3183719 3960512 9725722 12483758 14135999 12128914 12748139 14325606 65822416 12571234 14194774 14564154 15931858 18286118 75548138 20000 28500 14250 33750 96500 0 20000 28500 14250 33750 96500 75451638 29570 18173 6817 3616 5691 63867 29570 18173 6817 3616 5691 63867 452466 216059 572335 283555 1524415 12600804 14665413 14787030 16507809 18575364 77136420 0.97820 0.98030 0.00080 0.00140 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 2220644 2220644 2162159 26764375 7228530 21698004 35622 19060 16562 49532 13596 35936 375069 189307 185762 24156908 BOND SINKING FUND 77936 SECURITY DEPOSITS AND OTHER ASSETS 260913 DUE FROM RELATED ORGANIZATIONS 1424457 DEFERRED FINANCING FEES 171405 1934711 INTEREST PAYABLE 2750 DUE TO RELATED ORGANIZATIONS 1032334 NOTE PAYABLE TO RELATED PARTY 2700 1037784 18700514 18406687 293827 690377 690377 984204 19244215 49267 1166458 1215725 18028490 672024 672024 18700514 18953273 49267 607462 656729 18296544 110143 110143 18406687 PART IV, LINE 2B: THE ORGANIZATION HOLDS SECURITY DEPOSITS FROM TENANTS IN AN ESCROW ACCOUNT. THESE DEPOSITS ARE RETURNED TO THE TENANTS ONCE THEY MOVE OUT OF THE APARTMENT. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: CHI RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT CHI HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. CHI IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR YEARS PRIOR TO DECEMBER 31, 2008. PART XI, LINE 8 - OTHER ADJUSTMENTS: CAPITAL ASSETS RELEASED FROM REGULATORY LIEN 770,474. CHANGE IN NORTH KENSICO INVESTMENT -97. DECREASE IN VALUE OF PROPERTY HELD FOR RESALE -80,000. TOTAL TO SCHEDULE D, PART XI, LINE 8: 690,377. PART XII, LINE 2D - OTHER ADJUSTMENTS: INCOME ATTRIBUTABLE TO RELATED ENTITIES 1,166,458. PART XII, LINE 4B - OTHER ADJUSTMENTS: ELIMINATIONS ON CONSOLIDATED FINANCIAL STATEMENTS 672,024. PART XIII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES ATTRIBUTABLE TO RELATED ENTITIES 607,462. PART XIII, LINE 4B - OTHER ADJUSTMENTS: ELIMINATIONS ON CONSOLIDATED FINANCIAL STATEMENTS 110,143. 20TH ANNIVERSARY CELEBRATION 59965 49867 10098 10100 31925 59965 49867 10098 10100 31925 42025 -31927 1 FIRST TIME HOME BUYER DOWN PAYMENT ASSISTANCE AND REHABILITATION WORK DONE ON THEIR HOMES 49 1001400 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ALL INDIVIDUALS THAT ARE INTERESTED IN APPLYING FOR A GRANT MUST FIRST ATTEND AN ORIENTATION MEETING. ORIENTATION MEETINGS ARE HELD AT LEAST ONCE PER MONTH. AT THE ORIENTATION MEETING, PARTICIPANTS ARE GIVEN THE GRANT APPLICATION, WHICH IS COMPLETED AT HOME AND SUBMITTED TO CHI. WHEN AN APPLICATION IS SUBMITTED TO CHI, IT IS LOGGED IN AND PUT ON A WAITING LIST. HOUSING COUNSELORS GO DOWN THE LIST IN ORDER AND REVIEW THE APPLICATION. UPON THE COUNSELOR'S DETERMINATION THAT THE APPLICATION IS COMPLETE, THE APPLICANT ATTENDS A GRANT CERTIFICATE MEETING. AT THIS MEETING, THE APPLICANT IS APPRISED OF ALL THE GRANT REQUIREMENTS AND IS GIVEN A GRANT CERTIFICATE. THE CERTIFICATE HOLDER THEN HAS 60 DAYS TO FIND A HOUSE TO PURCHASE. TWO 14-DAY EXTENSIONS MAY BE REQUESTED. WHEN A HOME TO PURCHASE IS FOUND, AN AFFORDABILITY ANALYSIS IS PERFORMED BY THE COUNSELOR. IF THE HOME IS AFFORDABLE, AN ALLOCATION OF GRANT FUNDS IS MADE TO THE PURCHASER AND THE PURCHASER SIGNS A CONTRACT TO PURCHASE THE HOME. CHI'S PROCEDURES FOR MONITORING GRANTS GIVEN TO FIRST TIME HOME BUYERS: CHI THROUGH THE NEW YORK STATE AFFORDABLE HOUSING CORPORATION AND THE NEW YORK STATE TRUST FUND CORPORATION'S HOME PROGRAM OFFERS FIRST-TIME HOME BUYER ASSISTANCE TO COVER DOWN PAYMENT AND/OR CLOSING COSTS PLUS REHABILITATION EXPENSES WITH THE USE OF GRANT FUNDS. THE GRANTS ARE DEFERRED FORGIVABLE LOANS THAT DECLINE OVER TIME FOR A PERIOD OF 10 YEARS. COMMUNITY HOUSING INNOVATIONS, INC. HAS A CONTINUING RESPONSIBILITY TO MONITOR HOME OWNER OCCUPANCY REQUIREMENTS UNDER THE NYS HOUSING TRUST FUND CORPORATION'S HOME PROGRAM, THE NYS AFFORDABLE HOUSING CORPORATION'S PROGRAM AND/OR THE FEDERAL HOME LOAN BANK'S PROGRAM. EVERY YEAR, EACH PROGRAM RECIPIENT IS SENT A HOME MONITORING LETTER REQUIRING THEM TO CERTIFY THE HOME PURCHASED UNDER THESE PROGRAMS IS THEIR PRINCIPAL RESIDENCE. FURTHER, PURSUANT TO THE TERMS OF THE GRANT ASSISTANCE THEY RECEIVED, THEY MUST MAINTAIN HOME OWNER'S INSURANCE NAMING COMMUNITY HOUSING INNOVATIONS, INC., 190 EAST POST ROAD, WHITE PLAINS, NEW YORK 10601, AS SECOND MORTGAGEE. IF THE PROPERTY FOR WHICH ASSISTANCE PAYMENTS WERE MADE CEASES TO BE THE PRINCIPAL RESIDENCE OF THE FIRST-TIME HOME BUYER (OR THE FAMILY OF THE HOME BUYER), CHI, THE NYS HOUSING TRUST FUND CORPORATION, THE NYS AFFORDABLE HOUSING CORPORATION AND/OR THE FEDERAL HOME LOAN BANK MAY REQUIRE REPAYMENT OF ALL OR A PORTION OF THE ASSISTANCE PAYMENTS THE HOUSEHOLD RECEIVED. X X X 0 0 0 0 0 0 0 0 0 ALEXANDER H ROBERTS 214913 0 0 0 0 0 13380 0 3914 0 232207 0 0 0 JEROME J AUGUST 139475 0 0 0 0 0 8640 0 3914 0 152029 0 0 0 ELIZABETH THOMAS 141376 0 0 0 0 0 8640 0 3581 0 153597 0 0 0 DEBORAH POST 141799 0 0 0 0 0 4562 0 7239 0 153600 0 0 0 X 1 561881 COST BASIS 0 0 1 0 FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION AMENDED ITS BYLAWS IN ORDER TO BECOME RECERTIFIED IN WESTCHESTER COUNTY AS A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION ("CHDO"). THE BYLAWS WERE CHANGED TO STATE THE FOLLOWING: "THE CHDO IS NOT AND WILL NOT BE CONTROLLED BY, NOR RECEIVE DIRECTION FROM INDIVIDUALS, OR ENTITIES SEEKING PROFIT FROM THE ORGANIZATION." IN ADDITION, THE CHDO REQUIREMENTS REGARDING THE STRUCTURE OF THE BOARD WERE UPDATED TO STATE THE FOLLOWING: - THE STATE OR LOCAL GOVERNMENT MAY NOT APPOINT MORE THAN ONE-THIRD OF THE MEMBERSHIP OF THE ORGANIZATION'S GOVERNING BODY; - THE BOARD MEMBERS APPOINTED BY THE STATE OR LOCAL GOVERNMENT MAY NOT, IN TURN, APPOINT THE REMAINING TWO-THIRDS OF THE BOARD MEMBERS; AND - NO MORE THAN ONE-THIRD OF THE GOVERNING BOARDS MEMBERS ARE PUBLIC OFFICIALS. FORM 990, PART VI, SECTION B, LINE 11 A PAPER COPY OF FORM 990 IS SENT VIA CERTIFIED MAIL TO EACH VOTING MEMBER. A NOTE WILL BE ATTACHED INDICATING THAT THE FORM 990 HAS BEEN REVIEWED BY THE EXECUTIVE DIRECTOR, CFO AND AUDIT COMMITTEE; THAT THE AUDIT COMMITTEE WILL PRESENT THE FORM 990 TO THE VOTING BOARD AT THE NEXT SCHEDULED BOARD MEETING (WHICH MAY OR MAY NOT BE AFTER THE FORM 990 HAS BEEN SUBMITTED TO THE IRS). THE VOTING BOARD WILL BE ENCOURAGED TO ASK ANY QUESTIONS ABOUT THE FORM 990 TO THE AUDIT COMMITTEE PRIOR TO THE BOARD MEETING. THE EXECUTIVE DIRECTOR, CFO AND AUDIT COMMITTEE WILL REVIEW THE FORM 990 WITH THE INDEPENDENT AUDITORS PRIOR TO MAILING THE FORM 990 TO EACH BOARD VOTING MEMBER. FORM 990, PART VI, SECTION B, LINE 12C CHI HAS A CONFLICT OF INTEREST POLICY WHICH IS INCLUDED IN THE EMPLOYEE HANDBOOK AND DISCUSSED WITH NEW EMPLOYEES AS PART OF THEIR ORIENTATION PROCESS. THE POLICY INCLUDES "GIFTS AND FAVORS," "FINANCIAL INTERESTS" AND "FAMILY RELATIONSHIPS." THE TOPIC IS ALSO COVERED IN THE SECTION REGARDING "OUTSIDE EMPLOYMENT." CHI ENFORCES THIS POLICY VIGILANTLY. IN THE PAST, ALL BOARD MEMBERS HAVE RECUSED THEMSELVES FROM VOTES THAT MIGHT BE CONSTRUED AS CONFLICTS. STARTING IN 2009 ALL BOARD MEMBERS, OFFICERS AND PROFESSIONAL EMPLOYEES, INCLUDING THOSE IN THE KEY POSITIONS OF DIRECTOR OF PROPERTY MANAGEMENT, PROPERTY MANAGER, HUDSON VALLEY PROGRAM DIRECTOR, LONG ISLAND PROGRAM DIRECTOR, DIRECTOR OF HOUSING FINANCE AND REAL ESTATE DEVELOPMENT DIRECTOR, WERE REQUIRED TO SIGN A CERTIFICATION ON AN ANNUAL BASIS INDICATING THAT THEY HAVE READ, UNDERSTAND AND AGREE TO COMPLY WITH THE CONFLICT OF INTEREST POLICY. THE LAST SET OF ANNUAL DISCLOSURES WERE COLLECTED IN MARCH 2012 FOR THE YEAR ENDED DECEMBER 31, 2011. THE POLICY IS MONITORED BY THE DIRECTOR OF HUMAN RESOURCES, AND ANY CONFLICTED ARE TO BE REPORTED TO THEM. FORM 990, PART VI, SECTION B, LINE 15 A. EXECUTIVE DIRECTOR: THE CFO COLLECTS SALARY DATA FROM PUBLISHED SOURCES SUCH AS ROBERT HALF AND THE NY SALARY SURVEY FOR PROFESSIONALS FOR NONPROFITS. THE DATA ALONG WITH A RECOMMENDATION IS PRESENTED TO COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE BRINGS A RECOMMENDATION TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS, EXCLUSIVE OF THE EXECUTIVE DIRECTOR OF THE AGENCY (WHO IS ALSO A BOARD DIRECTOR), VOTES UPON THE COMMITTEE'S RECOMMENDATION. IN ADDITION, THE SALARIES FOR THE CORPORATE OFFICERS ARE DISCLOSED TO THREE COUNTIES IN NEW YORK AND ARE APPROVED BY THOSE COUNTIES THROUGH ANNUAL BUDGET SUBMISSIONS. B. OTHER OFFICERS: THE CFO COLLECTS SALARY DATA FROM PUBLISHED SOURCES SUCH AS ROBERT HALF AND THE NY SALARY SURVEY FOR PROFESSIONALS FOR NONPROFITS. THE DATA ALONG WITH A RECOMMENDATION IS PRESENTED TO COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE BRINGS A RECOMMENDATION TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS VOTES UPON THE COMMITTEE'S RECOMMENDATION. C. OTHER KEY EMPLOYEES: THE CFO COLLECTS SALARY DATA FROM PUBLISHED SOURCES SUCH AS ROBERT HALF AND THE NY SALARY SURVEY FOR PROFESSIONALS FOR NONPROFITS. THE DATA IS DISCUSSED BY THE OFFICERS OF THE AGENCY. THE EXECUTIVE DIRECTOR RECOMMENDS ANY SALARY CHANGES FOR KEY EMPLOYEES TO THE FULL BOARD AND THE BOARD VOTES UPON THE RECOMMENDATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE. THE RETURN IS POSTED ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION, FORM 990, FORM 1023, AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST OR BY CALLING THE ORGANIZATION DIRECTLY. CHI'S CONTLICT OF INTEREST POLICY WAS SUBMITTED TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) ON 1/31/06. IT IS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST AND WAS PLACED ON CHI'S WEBSITE IN 2009. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: CAPITAL ASSETS RELEASED FROM REGULATORY LIEN 770,474. CHANGE IN NORTH KENSICO INVESTMENT -97. DECREASE IN VALUE OF PROPERTY HELD FOR RESALE -80,000. TOTAL TO FORM 990, PART XI, LINE 5: 690,377. FORM 990, PART XII, LINE 2C THE PROCESS RELATED TO THE SELECTION OF THE INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM PRIOR YEARS. EACH YEAR THE AUDIT COMMITTEE REVIEWS THE AUDIT REQUIREMENTS AND RECOMMENDS TO THE VOTING BOARD THE RETENTION OF THE CURRENT AUDIT FIRM OR A PROPOSAL TO SEEK A NEW AUDITOR. CHI HAS ONLY CHANGED AUDIT FIRMS ONCE DUE TO THE PREVIOUS FIRM'S DECISION TO CLOSE ITS PRACTICE. MINERVA PLACE LLC 190 EAST POST ROAD WHITE PLAINS NY 10601 352253361 DEVELOP 14 UNITS OF AFFORDABLE HOUSING NY -99155 938084 COMMUNITY HOUSING INNOVATIONS INC CHI WEST I LLC 190 EAST POST ROAD WHITE PLAINS NY 10601 AFFORDABLE HOUSING NY 0 0 COMMUNITY HOUSING INNOVATIONS INC CHI ARDSLEY LLC 190 EAST POST ROAD WHITE PLAINS NY 10601 800623670 AFFORDABLE HOUSING NY 0 0 COMMUNITY HOUSING INNOVATIONS INC CHI MT VERNON INC 190 EAST POST ROAD SUITE 401 WHITE PLAINS NY 106014922 943482214 PROVIDE HOUSING TO LOW AND MODERATE INCOME FAMILIES NY 501(C)3 7 COMMUNITY HOUSING INNOVATIONS INC 1 CHI YONKERS INC 190 EAST POST ROAD SUITE 401 WHITE PLAINS NY 106014922 943482213 PROVIDE HOUSING TO LOW AND MODERATE INCOME FAMILIES NY 501(C)3 7 COMMUNITY HOUSING INNOVATIONS INC 1 KENSICO LIMITED PARTNERSHIP 190 EAST POST ROAD WHITE PLAINS NY 10601 133879103 OWNER OF MULTI-FAMILY RESIDENTIAL BUILDINGS (74 UNITS) NY NORTH KENSICO CORPORATION RELATED 0 0 0.99000 CHI DEVELOPMENT CORPORATION 190 EAST POST ROAD WHITE PLAINS NY 10601 133899672 PURCHASE & REHABILITATE HOMES NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 NORTH KENSICO CORPORATION 190 EAST POST ROAD WHITE PLAINS NY 10601 133836491 GENERAL PARTNER IN LOW INCOME TAX CREDIT PARTNERSHIP NY COMMUNITY HOUSING INNOVATIONS INC C 1166458 1879402 1.00000 MINERVA PLACE HOUSING DEVELOPMENT FUND CORP 190 EAST POST ROAD WHITE PLAINS NY 10601 133869672 PROVIDE LOW INCOME HOUSING NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 CHI MORTGAGE INC 190 EAST POST ROAD WHITE PLAINS NY 10601 PROVIDE LOW INCOME HOUSING NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 CHI ENERGY INC 190 EAST POST ROAD WHITE PLAINS NY 10601 452654874 PROVIDE LOW INCOME HOUSING NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 CHI WEST I MANAGEMENT CORPORATION 190 EAST POST ROAD WHITE PLAINS NY 10601 800661734 PROVIDE LOW INCOME HOUSING NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 CHI REALTY INC 190 EAST POST ROAD WHITE PLAINS NY 10601 320190641 PROVIDE LOW INCOME HOUSING NY COMMUNITY HOUSING INNOVATIONS INC C 1.00000 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 0 NORTH KENSICO CORPORATION K 110143 COST