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CC - Item 4A - Public Hearing on the Fiscal Year 2018-19 Annual Action Plan for Federally-Funded Programs
ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGEkW DATE: FEBRUARY 13, 2018 SUBJECT: PUBLIC HEARING ON THE FISCAL YEAR 2018-19 ANNUAL ACTION PLAN FOR FEDERALLY -FUNDED PROGRAMS The City Council will conduct its required annual public hearing regarding the projected use of federal Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds for the upcoming 2018-19 fiscal year. The U.S. Department of Housing and Urban Development (HUD) has not yet announced the final amounts to be allocated to participating communities; however, cities continue to be warned that Congress may again make cuts to these programs. BACKGROUND The City of Rosemead is a federal entitlement grant recipient of CDBG and HOME funds from HUD. As part of the process to receive funding, the City must undertake development of a Consolidated Plan and Annual Action Plan. It is called a Consolidated Plan because it consolidates the application process for HUD's four entitlement grants into one consolidated plan and application. The four grants are: CDBG, HOME, Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Shelter Grant (ESG). All four grants are driven by an entitlement formula process set by the federal government. The City is eligible to participate in two of these programs (CDBG and HOME). As part of the requirements of the federal Consolidated Plan process, the City is required to hold a public hearing regarding the projected use of funds prior to adoption of its Consolidated Plan and Annual Action Plan. In order to receive the FY 2018-19 allocations, the City must comply with the following requirements of the Consolidated Plan final rule regarding pre -submission requirements: ➢ Fulfill citizen participation requirements by conducting a public hearing to receive citizen input regarding annual funding needs; ➢ Publish a draft Plan and Annual Action Plan for a 30 -day comment period in order to receive citizen input regarding the final document; and ➢ Conduct a public hearing adopting the final Plan and the Annual Action Plan. ITEM NUMBER: Li A City Council Meeting February 13, 2018 Paee 2 of 3 The Annual Action Plan is a part of the Consolidated Plan, which takes all HUD requirements regarding planning, needs analysis, reporting, budgeting, citizen participation and certifications and incorporates them into one process. The full Consolidated Plan must be completed once every five years and the Annual Action Plan must be completed annually. STAFF RECOMMENDATION Staff recommends that the City Council conduct a public hearing and take public testimony on the Annual Action Plan covering the period July 1, 2018 — June 30, 2019. No farther City Council action is necessary. ANALYSIS The Federal government is currently working on allocating CDBG and HOME funding awards for FY 2018-19 and has not yet announced the final amounts to each participating community. However, cuts to the CDBG and HOME program appear to be an ongoing discussion by Congress each year. While the City has not yet been notified of the grant amounts that will be available to meet identified needs within Rosemead for the FY 2018-19, it is anticipated that the City will receive decreases in its current $646,913 allocation of CDBG funds and $234,004 allocation of HOME funds, but will not be certain until federal notification of awards. In conducting this public hearing, written invitations were sent to and received from the three non-profit organizations (Family Promise, Family Service, and Housing Rights Center) that are currently receiving CDBG funding and the one Community Housing Development Organization (Rio Hondo Community Development Corporation) currently receiving HOME funding. Copies of the written proposals received from each organizations have been included in Attachment A. It is expected that all the organizations requesting funding will be represented at the public hearing. The hearing is also open to the general public and anyone present can submit a funding request for the Council's consideration. However, in accepting these recommendations only three broad funding categories are considered eligible under CDBG regulations. A project must either provide benefits to low or moderate -income persons, eliminate slum or blighted conditions, or is an urgent need. In addition, of the CDBG funds received, no more than 15% of the annual grant amount can be used for social service activities and no more than 20% of the grant amount can be used for administrative and program delivery activities. More than 70% of all funds received must be used for low -to -moderate income activities. Of the HOME funds received, no more than 10% can be used for administrative and program delivery activities and 15% must be set aside for a Community Housing Development Organization (CHDO), as constituted under the regulations. The balance of funds can only be used for housing activities. Due to limited resources and potential cuts in funding; it may not be possible for the Council to endorse all of the projects that have been submitted by the various parties that attend the public hearing. In addition, due to the federal funding restrictions discussed above, the Council will be City Council Meeting February 13, 2018 Page 3 of 3 limited in the amount of funds available for social service activities. To properly evaluate all proposed projects, it is recommended that the Council defer making any recommendations this evening until the City has received confirmation of our grant amounts with HUD. A summary of all funding requests and staff recommendations will be provided to the Council for review at a future meeting. FISCAL IMPACT - None STRATEGIC PLAN IMPACT —None PUBLIC NOTICE PROCESS Notice of the public hearing was published in the Rosemead Reader on February 1, 2018, as well as through the regular agenda notification process. Prepared by: Michelle G. Ramirez, D&or of Public Works Attachment: Funding Requests Attachment Funding Requests FAMILY PROMISE CITY OF ROSEMEAD EAD 8838 E. Valley Boulevard Rosemead, CA 99770 (626) 569-2102 ppi atzCcityot'roserneacl.orcl NON-PROFIT COMMUNITY SERVICE ORGANIZATION TION RE QUEST FOR FUNDING FISCAL YEAR 2018-19 Legal Name of Organization: Family Promise of San Gabriel Valley Tax ID #: 27-0315194 Address: DUNS 9: I orf; cin r,nhnP.I Rivd_ Rosemead, Ca 91770 Executive Director: Contact Name:_ Telephone: Fax: Karen Roberson Karen Roberson 626 354-6514 Email: karen.roberson@fpsgv.org Purpose of Organization: Tn accict homeless children and their families regain stable housing and employment within a supportive volunteer -driven community Enter "X" by the appropriate designation: X Non-profit organization ^ For-profit organization Enter "X" by all that apply: _ A faith -based organization An institution of higher education X Not Applicable TOTAL UNDUPLICATED ROSE IMEADCLI.ENTS: FY 16-17 c� 8 (Please Complete Attached Backup – Performance Repot) (Est.) FY 17-18 — 10 10 000 ROSEMEAD FY 2017-18 FINANCIAL SUPPORT: $5,000 FY 2018-19 I• INANCIAL RE, QUEST FROM CITY OF RO5EMEAD: $5,000 AGENCY TOTAL BUDGET FOR FISCAL YEAR 2018-19: 231,830_ Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block GrantsiEntitlement Grants State the Agency's mission, goals and major objectives. In addition, describe programs designed to meet goals and objectives. Attach any recent evaluations of programs or needs assessments. Missions Statement: To help homeless children by assisting their families to stay intact and to regain stable housing and employment within a supportive, volunteer -driven community Goals: Family Promise aims to assist 10 Rosemead residents to: Provide a safe place to sleep overnight, three nutritious meals a day and other material support Intervene to reverse the downward spiral of homelessness and societal alienation for the children am Assist parents to get meaningful employment Help families obtain stable housing Objectives: Provide shelter Assess client system and barriers to stable housing Devise individualized case plan to address barriers Assist families to locate, apply for and obtain housing Assist with development of employment resumes, conduct job searches, obtain interview attire Provide counseling and support Programs designed to ntcet goals and objects: Case management services -assessment and implementation Collaboration with rapid rehousing programs, landlords and ott human services agencies Rost network to provide sleeping space and meals 2. Briefly explain any new progn ams or services to Rosemead residents during FY 2017-18. Are any Planned for FY 2018-19? Alhambra Promise program in Alhambra Unified School district is available to Rosemead resident students attending Alhambra schools 3. How are clients referred to your agency? Clients are referred to our program by 411 LA County Info Line, by Community members, by other social service agencies, by School McKinney=Vento workers, via Internet website, and community outreach efforts 4. List and explain any major changes in funding patterns or expenditures There are no major changes in funding pi however, we are increasing our outreach foundations and corporate entities, Catalog of Federal Domestic Assistance (¢FDA) Number: 14.218 CFDA Title: Community Development Bloci<Grants/Entitlement Grants 2 5. List major sources of funding and the amount (i.e. cities, county, state, federal, fandraising, eto.) individuals and community organizations fund, congregations and service clubs. Major grants from _events -that -net approx $20,000.T 6. What facilities in Rosemead are used to conduct services? we lease space for our HOPe Center and offices from Evergreen Baptist Church. _ 7. The proposed Community Service Nvould be provided to: Mark each that apply X Low and Moderate -Income persons or households Abused Children Handicapped Persons Illiterate Persons Battered Spouses x 1-Iomeless Persons Migrant Farm Workers Llderly Persons S. flow many Rosemead citizens do you project will benefihfirom your program/project: 10 to Is Provide a specific example or case study of a client that exemplifies how program objectives Nvere achieved during the past year: (Attach additional page if necessary) Enrolled a mother and two children in program. She was employed as a school aide but had inadequate inco Yo pay rent. Provided shelter, transportation assistance, case management. She was able to _focus on empfoyrdenfirst: through -contact wit# auFvolunteers at eongregatiensche-was-offered housing in exchange for light caregiving for an aging relative of the volunteer. In addition she was offered to reniafa fow �a en caregiving was no longer nee e e a so go emp oyment a a ocal business. �.uccessfulfy graduated from program ecithauibaving tamove-chi[drer�from-school.–She-instill in contact and is doing well. Has enrolled in GAIN program that we referred her to in order to upgrade her job. 9. Has your organization conducted the proposed activity before? Yes —XNo 10. Describe your organization's experience with CDBG Family Promise has been a recipient of a CDBG grant from City of Rosemead for the past 4 year In prior years we have also received a CDBG grant from City of Monterey Park 11. Do you charge any fees to your clients? If so, rNfiat is the fee structure? No. All services are free of charge to clients catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: community Development Block Grants/Entitlement Grants 3 FAMILY PROMISE OF SAN GABRIEL VALLEY Employee Benefits $ 7,126.00 $ 8,000.00 $ 8,000.00 Employee Payroll Taxes $ 15,387.00 $ 18,100.00 $ 18,000.00 Profes & Consultant Fees $ 14,448.00 $ 4,565.00 $ 5,000.00 Supplies $ 6,223,00 '$ '8,.500:00 $ 8.;000.00 Telephone $ 2,780.00 $ 2,000.00 $ 2,000.00 Posting & Printing ' ' $ 1,810.00 $ 41000.00 $ 4;000.00 Occupancy & Utilities $ 5,769.00 $ 5,850.00 $ 6,000.00 Rental & Maint.of Equip Printing & Publishing $ 5,473.00 $ 5,000.00 $ 5,000.00 Travel & Transportation $ 3,931.00 $ 7,500.00. $ 10;000.00 Conferences $ - $ 1,400.00 $ 1,500.00 Specific Assist to Individuals $ 3,11.2.00 $ 7;500.00 $ 5,000.00 Membership Dues $ 1,609.00 $ 2,000.00 $ 2,000.00 Awards & Grants Insurance $ 5,920.00 $ 5,250.00 $ 4,500.00 Equip Purchased - $ - $ 3,750.00 '$ 2,500.00 Misc Exp $ 188.00 Transfer to Other. Fund Dues to National Org $ 3,768.00 $ 1,800.00 $ 1,800.00 Other Exp $ 3,340.00 Total $ 221,082.98 $ 234,465.00 $ 2310830.00 Numbers above have been converted to Fiscal Year (FY), which is from July 9 to June 30 of the f .7 ® grrc CERTIFICATE ®F LIABILITY rNsuRarvGE DAYS(MWDD/YYYY) 1/18/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement, A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsements . PRODUCER Arthur J. Gallagher & Co. Insurance Brokers of CA. LIC. # 0726293 505 N Brand Blvd, Suite 600 Glendale CA 91203 cuAQpc' Danielle Donohue NA _ PHONE 818 539.8605 1 la c Nol: �818 539 87015 •M ILgS Danielle Donohue@ajg.com INSURENSI AFFORDING COVERAGE _ NAIC 0 INSURERA:Philadelphia Indemnity insurance Compan 18058 INSURED Family Promise of San Gabriel Valley 1005 E. Las Tunas Dr., #525 San Gabriel, CA 91775 INSURER a: INSURER C: . INSURERD: INSURERS: INSURERF: GUVCKAUMC VORI -.,.—...._ .__.._._-. ____... THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. _ !NSR LTR TYPE OF INSURANCE AUDI: INSD SUSIR D POLICY NUMBER PLpp/FF IMIoO/YYX LIMITS A X I COMMERCIAL GENEItNL LIABIDTY PHPK1731176 12/26/2017 92/2612010 EACH OCCURRENCE $1,000,000 DARENTED PREMISES ( Ea occu a ce) $1,000000 CLAIMS -MAGE ❑X OCCUR MED EXP(Anyone parson) $20,000 PERSONAL&ADV INJURY $1000,000. GEN'L AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $2,000,000 PRODUCTS-COMP/OPAGG $2000,000 X ❑LOG POLICY❑jEOT OTHER: A AUTOMOBILE LIABILITY PHPK1731176 12126/2017 12/26/2618 Ee.Wden SNG E T $1000,000 BODILY INJURY (Per person) $ X ANYAUTO BODILY INJURY(Per acddent) $ OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED — PROPE ..0. .GE- $ Per acddenf X AUTOS ONLY % AUTOS ONLY UMBRELLA LIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESSLIAB CLAIMS -MADE $ OED RETENTION WORKERS COMPENSATION STATUTE OTH- EL. EACH ACCIDENT $ AND EMPLOYERS'LIABILITY YIN ANY PROPRIETOR/PARTNERIEXECUTIVE _ EL. DISEASE -EA EMPLOYE $ OFFICER/MEMBER EXCLUDED? ❑NIA (Mandatory in NH) E.L. DISEASE -POLICY LIMIT $ If yes descnbe under DEMRIPTiON OF OPERATIONS below A Director and officers Liability PH$D1294951 IW28/2017 12/26/2018 Per Claim $1,000,000 Aggregate Limit $1,000,000 DESCRIPTION OF OPERATIONS/ LOCATIONS I VEHIOLES (ACORD 101, Additional Remarks Schedute, may be attached If more space Ia required) Coverage : Professional Liability Policy #PHPK1731178 Carrier :Phlladelphis Indemnity Insurance Company Term :12/26/2017 to 12!26/2018 Each Occurrence: $1,000,000; Aggregate Limit: $2,000,000 Evidence of Coverage. CANCELLATION CERTIFICATE HOLDER SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Rosemead THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 8838 E. V&Iley Blvd, ACCORDANCE WITH THE POLICY PROVISIONS. - Rosemead CA 91770 AAUT'H^OnR.I;.E,pREP ESENTATIVE 0 1968-ZUTD AGORD CORPVRA I M., r 1110111o.-- ACORD o., r— ACORD 26 (2015103) The ACORD name and logo are registered marks of ACORD FAMILY SERVICE Reserved CITY OI+'.I OSEMEAD 8838 E. Valley Boulevard Rosemead, CA 91770 (626)589-2102 ppian@oltyoirosemead.org NON-PROFIT COMMUNITY SERVICE ORGANIZATION REQUEST FOR "DING FISCAL YEAR 2018-19 Legal Name of Organization: Santa Anita Famlly Service Tax ID #: 95-1816014 DUNS #: Address: 605 S Myrtle Ave Monr vn isCA 91016 -- -- Executive Director: George NalbachJ%D. Contact Name: Danae Powers, LMFT Telephone: (626) 359-9358 Fax: (626)358 7647 Email: dance»Osantaartitafathilyservice ora Purpose of Organization: Santa Anita Family Service was founded in 1951 to foster well-being of the San Gabriel Valley creating healthier familles and comm1,181 ies throueis Professional leadership and the provision of high duality educational. to atal health and social service nroarams, Enter "X" by the appropriate designation: X Non-profit organization For-profit organization Enter "X" by all that apply: A faith -based organization An institution of higher education S Not Applicable TOTAL UNDUPLICATED ROSEMEAD CLIENTS: FY 16-17 7 (124 counseling hours) (Please Complete Attaehed Backup —Performance Report) (Est,) FY 17-18 15 ROSEMEAD FY 2017.18 FINANCIAL SUPPORT: Exhibit A FY 201819 FINANCIAL REQUEST FROM CITY OF ROSEMEAD: 91200 AGENCX TOTAL BUDGET FOR FISCAL YEAR 2018-19: Exltibit B Catalog of Fedora[ nomastle Aesistanoe (CFOA) Number: 14.218 CFDATitle: CommunitydevelopmentnloaKGrantatE:ntltlementGranta 1 State the Agency's mission, goals and me1or objectives. In addition, describe programs designed to meet goals and objectives. Attach any reoeut evaluations of programs or needs assessments, Missions Statement: Santa Anita Family Service was founded in 1951 to foster well-being of the Son Gabriel Valley creating healthier families and communities through professional leadership and the provision of high-quality educational, mental health and social service programs. Goads; • Support Family Stability e Sober Living • Drug -Free Lifestyle • Violence -Free Lifestyle • Child Abuse Prevention and Intervention • older Adults Stability and Independence • Emotional Well -Being of Adults and Children Objectives; Provide, o Individual, group, family, and conjoint treatment o ParentEduention o Drug and Alcohol Treatment o Domestic Violence Treatment o Case Management o Linkages o Information and Referrals for Housing, Food, b -Home Snpporiivo Services, Child Care, etc. Programs designed to meet goals and object&. • Adolescent Drug Prevention, klurly intervention, and Iatervention Groups • Adolescent Groups • Adult Chemical Dependency Groups & Counseling • Arcadia Unified School District Counseling • Counseling Community Services Block Grant • Domestic Violence Batterers Groups • Domestic Violence Victims Empowerment Groups • Domestic Violence Prevention & Intervention Community Services Block Grant • Family Caregiver Support & Counseling • Parenting Groups • PC -1000 Drug Diversion Classes • Rosemead Community Development Block Grant • Senior Center • Seniors & Disabled Adults' Services Community Services Block Grant • Veteran Families Support & Counseling Program 2, Briefly explain any neon nrro rR ams or services to Rosetnead residents during FY 2017 - 18. Are any planned for FY 2018-19`t We did not add any new programs or services during FY 2017-18. We intend to apply for all appropriate, social service grants which come up for bid for 2018-19. Catalog of Federal DamesGc-Assistanoe (CFRA) Number: 14.218 CFDA MOW Community Dovolopm2nt Slock QMASIEnutlamant Grants 3, How are clients referred to your agency? Community agencies, schools, police departments, Department of Children and Family' Services, 2-1-1, Residents of Rosemead 4, List and explain any major changes in funding patterns or expenditures. our Family Preservation contract through County of Los Angeles Department of Children and Family Services expired on August 31, 2017, 5. List major sources of funding and the amount (i.e. cities, county, state, federal, fundraising, etc,) L.A. County (from Federal pass-through dollars) $838,194 Gain on sale of property $583,580 Program service fees $ 88,005 6. What facilities in Rosemead are used to conduct services? Services are provided out of our Monrovia office. We have made past attempts to work with the local schools to provide a variety of services, such as parent education and conflict resolution; however, space is often an issue and the families are frequently able to commute to our Monrovia office where the services are already being provided. 7. The proposed Community Service would be provided to: Mark each that apply X Low and Moderate -Income persons or households X Abused Children X Handicapped Persons X Illiterate Persons X Battered Spouses X Homeless Persons X Migrant Farm Workers X 131derly Persons 8. Ilow many Rosemead citizens do you project will benefit from your program/project; 15 Provide a specific example or case study of a client that exemplifies how program objectives were achieved during the past year: (Attach additional page if necessary) A seventeen -year-old Caucasian female, who had been physicaIIy, emotionally and psychologically abused in earlier childhood* and was a recent victim of sexual abuse within her home, came to Santa Anita Family Service for court-ordered for individual therapy with an open Department of Child and Family Service case. She was withdrawn and did not trust other people. Over the course of therapy, she became less withdrawn and began to be able to think about her future, her thoughts no longer mired in the abuse she had suffered. Though still having difficulty trusting others, she was able to find her own voice to begin expressing herself to both her therapist and her mother. She was able to begin making positive decisions regarding her own welfare and, before terminating treatment, she obtained a job and had begun making I lans for her future, rather than just "allowing life to happen" to her. 10. Has your organization conducted the proposed activity before? Yes -XNO Catalog of Federal Domestic Assistance (CFDA) Number: 14.279 CFDATitle: Community Development Black oramslEntltlemontGrants 3 11. Describe your orgallizatiog's experience with CDDQ Santa Anita Family Service has had an -extensive experience with CDBG. For over 29 years we have worked with one or more of .the following CDBGs. Azusa, - Baldwin Park, Monterey Park, Rosemead, Gloria Molina's office. In addition, Santa Anita Family Service also works with 4 CSBG grants-, two eachao provide seniors and disabled adults services, and one each to provide youth counseling and domestic violence prevention and intervention. 12. Do you charge any fees to your clients? 1£ so, what is the fee structure? Rosemead clients are not typically charged for services. However, they may be asked fora smalleo-payment for service (usaally less than $10.00). Catalog of Federal Domestic Asslstanco(CFDA) Number: 14.298 CFDATIaa; Community Dev91opmeent910ckOrantslEnatiemgntOrants I� h m p O M N � N y 8 �y E In N uo e8 of 44 121U b P 84 t4 0 g 6 ro E E � � N �i k O od O tY3Eo"• a o ti N 0 d� .Q v Z }q4 a o X H o O N *" � (cl �E G. .x I� h M N � N y 8 �y E In N uo e8 of 121U b P 84 t4 0 g i ro E �x I� h ® \- j \ \\k\\ §2 9 a a )� 0 IL � $� q §� k E . r ;Lt00 ® § /» )/ e � * � _ cq ] 4 PBOGRAM BUDGET tT.... ILVU. 1n ".1laru (*b"IW Please explain Changes Greater than 15% between FY 2016-17 and FY 2017.18 and/or FY 2017-18 and FY 2018-19. We lost some Los Angeles County contracts and reduced expenses. Please explain what expenses are included in the "Other" Category. Program Sub -Contractors 253328 1,872 10,872 Special Events 8,778 0 Interest 1,280 172 0 Catalog of Federal Domestic Assistance (CFDA) Number: 94.218 CFDATitle: Community DevolopmentglockGrantslEntitlementGrante 7 MOV f. a FY 2016-17 (Actual) Current Operating Year FY 2017-18 Proposed Budget FY 2018-19 CD13G SBAPE FY 2018-19 Expense Salaries -4 1,380,989 965,620 965,620 4,552 Employee Benefits 19,958 21,270 21,270 100 Em tolrees, Payroll Taxes 103,470 74,850 74,850 348 Profes. & Consultant Fees 104,482 40,900 40,900 0 Supplies 14,350 8,320 85320 Telephone & Fax 36,191 34,000 34,000 0 Postage & Sbipping Shipping 1,627 1,240 1,240 0 Occu anc & Utilities 284,910 176,000 176,000 0 Rental & Maint. of Equip. 52,478 36,500 36,500 0 Printin & Publishing 754 0 0 0 Travel and Trans oriation 20,451 14,800 14,800 0 Conferences 437 0 0 0 Specifio Assist. To 11,436 10,300 10,300 0 Individuals MembershipDues 1,409 800 800 0 Awards & Grants0 0 0 0 Insurance 103,591 81,560 81,560 0 Equipment Purchased 0 0 0 0 Mise. Expenses 9,830 71000 77000 0 Transfer to Other Funds 0 0 0 0 Dues to National 0 0 4 0 Or anizations Other Expenses 35,386 2,044 11872 0 Please explain Changes Greater than 15% between FY 2016-17 and FY 2017.18 and/or FY 2017-18 and FY 2018-19. We lost some Los Angeles County contracts and reduced expenses. Please explain what expenses are included in the "Other" Category. Program Sub -Contractors 253328 1,872 10,872 Special Events 8,778 0 Interest 1,280 172 0 Catalog of Federal Domestic Assistance (CFDA) Number: 94.218 CFDATitle: Community DevolopmentglockGrantslEntitlementGrante 7 1'RoGkAM REVEN CE Please explain Changes Greater than 15% between FY 2015-17 and FY 2017-18 and(or FY 201718 and FY 2018-19. We lost some T1A County contracts (funded by Federal dollars) in 2017-18. We did not hold a fundraising event in 201718. Catalog of Federal Domestic Assistance (CFDA) Number. 14.248 CFDA Title: Community owotopment Block Grants/Bntitlement Grants I HAVE BEEN AUTHORIZED To SUBMIT REQUEST FOR FUNDING Signature Name Dann Powers IWff' Print Name Director of Clinical Services Title danaen(ti)santaanitafamilyserOggi ort= Email Address (626) 359-9358 ext 5684 Phone Number Santa Anita Family Service Organization 2018-01-25 Date DO NOT COMPLETE THIS SECTION — FOR CITY USE ONLY Date Application Received: Date Reviewed by Rosemead Staff: Approved or Declined: Date Notification Letter Sent to Applicant: catalog of Federal Domestic Assistance (CFDA) number: 14.218 CFDA Title: Community Development Block GrantslEnlitlement Grants 9 HOUSING RIGHTS CENTER Reserved WORKING FOR JUSTICE AND EQUALITY IN HOUSING January 24, 2018 Pat Platt Management Analyst City of Rosemead Community Development Department 8838 E. Valley Blvd. Rosemead, CA 91770 Dear Mr. Piatt, Attached please find the Housing Rights Center's Funding Application for the 2018-2019 Program Year. HRC respectfully requests $10,000 from the City of Rosemead for the Fait Housing Program. The Housing Rights Center appreciates this opportunity to continue out commitment to the City of Rosemead and its residents. Please do not hesitate to contact me with any questions. I can be reached at (213) 387-8400 x1111 or via e-mail at calmansour@housingrightscenter.org. Sincerely, 1112 Chancela Al -Mansour Executive Director Enclosures: Request for Funding Application Certificate of Liability Insurance Audited Financial Statement 2016 CITY OF ROSEMEAD 8838 E. Valley Boulevard Rosemead, CA 91770 (626) 569-2102 ppiatt@eityofrosemead.org NON-PROFIT COMMUNITY SERVICE ORGANIZATION REQUEST FOR FUNDING FISCAL YEAR 2018-2019 Legal Name of Organization: Southern California Housing Rights Center Tax ID #: 95-2572642 DUNS #: 944936798 Address: 3255 Wilshire Blvd Suite 1150 Los Angeles CA 90010 Executive Director: Chancela At -Mansour Contact Name: Chancela AI -Mansour Telephone: {213) 387-8400 ext 1111 Fax: Email: calmansour a housingr:-ht------r org Proposal) Enter "X" by the appropriate designation: —X—Non-profit organization _ For-profit organization Enter "X" by all that apply: A faith -based organization _X_ Not Applicable TOTAL UNDUPLICATED ROSEMEAD CLIENTS: (Please Complete Attached Backup - Performance Report) (Est.) ROSEMEAD FY 2017-2018 FINANCIAL SUPPORT: An institution of higher education FY 16-17 139 FY 17-18 150 $10,000 FY 2018 - 2019 FINANCIAL REQUEST FROM CITY OF ROSEMEAD: $10,000 AGENCY TOTAL BUDGET FOR FISCAL YEAR 2018-2019: 2,041,000 Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants 1 1. State the Agency's mission, goals and major objectives. In addition, describe programs designed to meet goals and objectives. Attach any recent evaluations of programs or needs assessments. Mission Statement: The Housing Rights Center's mission is to actively support and promote fair housing through education and advocacy, to the end that all persons have the opportunity to secure the housing they desire and can afford, without discrimination based on their race, color, religion, gender, sexual orientation, national in familial status, marital status, disability, ancestry, age, source of income, or other characteristics protected by law. Goals: (1) HRC will assist a minimum of 100 Rosemead residents with housing discrimination and landlord/tenant concerns; (2) At least 12% of Rosemead clients will be assisted in languages other than English; and, (3) At least 90% of Rosemead residents who complete an evaluation about Rosemead housing rights workshop will rate the information provided as being useful. Objectives: To educate/inform as many Rosemead residents as possible about the fair housing laws. Programs designed to meet goals and objects: 1. Documelntation of Activities HRC's comprehensive intake database includes a reporting component that makes the production of statistics and other diagnostic data aectuate and efficient. Statistical reports will include all demographic and complaint issue data, which will facilitate the analysis of trends and emerging needs. HRC also tracks all outreach activities in a database that allows us to track our activities by event type. 2, Documentation of Discrimination Complaints HRC will continue our practice of maintaining complete and organized case files. Our case files adhere to a strict format, which facilitates case management and review. Case files include all relevant documents and materials produced in the investigation and resolution of our cases. 2. Briefly explain any new programs or services to Rosemead residents during FY 2017-2018. Are any planned for FY 2018-20197 In January 2018, HRC was awarded a HUD FHIP grant that will enable it to conduct more random audit testing in and around Rosemead to determine if Rosemead residents face housing discrimination of which they may be unaware. HRC will: conduct on-site and phone systemic testing in areas within L.A. County; recruit and train fair housing testers; refer cases to HUD that show evidence of housing discrimination; perform disability related testing to determine if the deaf and hard of hearing are being discriminated against in rental application housing and to perform more outreach and education activities, If a Rosemead resident contacts HRC to complain about potential discrimination and does not want to be named or identified to the landlord, HRC can use these non -Rosemead CDBG funds to investigate the alleged discriminatory activity. In 2018, HRC will continue to update its website to provide more materials and information in non- English languages and to make filing a complaint with HRC even easier for Rosemead residents. 3. How are clients referred to your agency? Clients find their way to HRC via: 1, City Of Rosemead staff and partner agency referrals; 2. HRC Website (www housin rightseel tor.org) which can be found in a variety of ways, for example, by going to the city's webpage "At Your Service/Housing/Fair Housing Services" and clicking on our link or by using an internet search engine; Phone Listing, Outreach Events, Community Organizations, Public Service Announcements and Press Releases, literature distribution, ward -of -mouth. Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants 2 4. List and explain any major changes in funding patterns or expenditures There have been no major changes in funding patterns or expenditures. 5. List major sources of funding and the amount (i.e. cities, county, state, federal, fundraising, etc.) 6. What facilities in Rosemead are used to conduct services? HRC conducts Fair Housing and Housing Rights Workshops at the handicap accessible Garvey Community Center. Additionally, HRC distributes fair housing literature to other city locations including city hall, the public library, chamber of commerce, and local CBOs. 7. The proposed Community Set -vice would be provided to: Mark each that apply X X X Low and Moderate -Income persons or households Abused Children Handicapped Persons Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants 3 17/18 Alhambra $25,000 17118 Baldwin Park $7,500 17/18 Burbank $20,000 17/18 Carson $35,330 17/18 EI Monte $25,000 17/18 FHIP Grant — HUD $300,000 17118 FHIP Grant — Regional— $0 17/18 Glendale $20,000 17/18 Glendora $15,000 17118 Hawthorne $30,000 17/18 In lewood $58,000 17/18 Lancaster $35,000 17118 Los Angeles Cit $736,750 17/18 Los Angeles Count $200,000 17/18 Montebello $20,000 17/18 Monterey Park $10,000 17/18 Oxnard $29,000 17/18 Palmdale $30,261 17118 Pasadena $50,400 17/18 Pasadena $15,000 17/18 Pico Rivera $10,500 Pomona $30,000 Redondo Beach $22,000 Rosemead $10,000 M17/1 Santa Clarita $20,000 Ventura Cit $10,000 Ventura County $54,409 17/18 West Covina $10,000 17/18 Whittier $10,000 17/18 Fundraising, Training Fees, etc. $84,000 6. What facilities in Rosemead are used to conduct services? HRC conducts Fair Housing and Housing Rights Workshops at the handicap accessible Garvey Community Center. Additionally, HRC distributes fair housing literature to other city locations including city hall, the public library, chamber of commerce, and local CBOs. 7. The proposed Community Set -vice would be provided to: Mark each that apply X X X Low and Moderate -Income persons or households Abused Children Handicapped Persons Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants 3 X Illiterate Persons X7— Battered Spouses Homeless Persons x Migrant Farm Workers X Elderly Persons 8, How many Rosemead citizens do you project will benefit from your program/project: More than 100, Provide a specific example or case study of a client that exemplifies how program objectives were achieved during the past year: (Attach additional page if necessary) HRC recently conciliated a case involving a Rosemead resident. The resident was served a 90 -day notice after living at the property for 29 years. The resident explains that she and her son suffer from disabilities and that, at present, her son is hospitalized due to his conditions; therefore, vacating within the 90 day term would not be feasible on account of their limitations. When HRC communicated with the onsite manager of the need for an additional 90 days for the residents to vacate, the manager argued that the notice had been served due to behavioral problems caused by the resident's son and his interactions with both the manager and other neighbors. Furthermore, the manager added that they had no longer accepted further subsidy payments on behalf of the resident so they could no extend the tenancy any further. Thereafter, the resident provided medical documentation that clarified that she would actually benefit from an extension anywhere between 90 to 180 days. When HRC brought this to the attention of the manager, she explained that the resident had already received 30 additional days and that it was their contention that 120 days would suffice. The manager indicated that she would need to present the accommodation to the owners directly. However, HRC did not receive any further communication from the management. Towards the end of the month, the resident's daughter contacted HRC and explained that they had come to an agreement with the manager on their own following NRC's communication and that HRC could withdraw the case due to a favorable outcome. 9. Has your organization conducted the proposed activity before? Yes x_. No 10. Describe your organization's experience with CDBG The Housing Rights Center has over 37 years of experience working with CDBG grants to provide fair housing services to local cities and counties. These cities and counties conduct of r"o Ammatic and financial reviews. HRC has always received excellent reviews. 11. Do you charge any fees to your clients? If so, what is the fee structure? is able to provide its vast array of services tree or cnarge. Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA1itle: Community DevelopmentBlockGrants/EntitlementGrants 4 kl p� O N M r OD QOQO K 3 L9 4 � o0 d 14 p Q i-7 0 T N N Ci a 0 j > r o da y 8 3 q° N p pr0-10 M C W 7 d N ® LO C14 M ti CL � T °) co O O CO O r O V N p O L O z b � � U 0 mm■ �m N $ Im I- !« I$ I,() (- I- Im ] \ § IT, �!/{% \ / f©/& - j§ �(\\/ r \� « 2� / \ k}�(\-� \\ \\ d \ §E m ` o§ q ° « 4 z �m N $ Im I- !« I$ I,() (- I- Im ] \ PROGRAM BUDGET .r__ �.,ti _■,. n,.n....� nnr., please explain Changes Greater than 15% between FY 2016-17 and FY 2017-18 and/or FY 2017-18 and FY 2018-19. Please explain what expenses are included in the "Other" Category. Miscellaneous expenses includes Testing and Trairan internet services, subscription and taxes and licenses. processing, Catalog of Federal Domestic Assistance (CFDA) Number: 14.298 CFDA Title: Community Development Block Grants/Entitlement Grants 7 Ube YYIIVIU L"".I FY 2016-2017 v -j Current Operating Year FY 2017-2018 Proposed Budget FY 2018-2019 CDBG SHARE FY 2018-19 Ex ense Salaries 1,400,069 15341,139 1,3455150 71250 Em loyee Benefits 1757088 172,996 168,647 420 580 Employees Payroll Taxes 116,733 113,097 113,435 Profes. & Consultant Fees 10,000 10,500 10,500 80 100 Su plies 16,370 14,775 18,975 Telephone & Fax 43,646 38,400 38,400 175 Postage & Shipping 8,623 10,050 10,950 25 800 occupancy & Utilities 177,511 178,476 177,946 260 Rental &Maint. of Equip. 67,213 52,490 54,500 Printing & Publishing Travel and Transportation 18,499 15,800 15,800 40 Conferences 2,702 1,080 3,000 15 Specific Assist. To Individuals Membership Dues Awards & Grants 20,017 20,800 20,800 80 Insurance Equipment Purchased 58,738 51,432 48,950 175 Misc. Expenses Transfer to Other Funds Dues to National Organizations Other Expenses please explain Changes Greater than 15% between FY 2016-17 and FY 2017-18 and/or FY 2017-18 and FY 2018-19. Please explain what expenses are included in the "Other" Category. Miscellaneous expenses includes Testing and Trairan internet services, subscription and taxes and licenses. processing, Catalog of Federal Domestic Assistance (CFDA) Number: 14.298 CFDA Title: Community Development Block Grants/Entitlement Grants 7 PROGRAM REVENUE Use Whole Dollars FY 2016-2017 Public Foundation & Private Grants Fundraising/ special Events Legacies and Bequests Other Federated Org. United Way Misc. Organizations Other Government 70 Other Revenue NmbershiDu Dues Investment Income Transfer From Other Fund All Other Revenue TOTAL REVENUE Current Operating Year FY 2017-2018 7 750 ,750 Proposed for 1 please explain Changes Greater than 15% between FY 2016-17 and FY 2017-18 and/or FY 2017-18 and FY 2018-19. The changes were less than 15% between FY 2016-17 and FY 2017-18 and /or FY 2017-18 and FY Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Developme nt Block Grants/Entitlement Grants I HAVE BEEN AUTHORIZED TO SUBMIT REQUEST FOR FUNDING 1 41 /Z/ Z Signature Chancela Al -Mansour Print Name Executive Director Title calmansourna housingriglitscenter.org Email Address (213) 387-8400 ext. 1111 Phone Number Housing Rights Center Organization January 26, 2018 Date DO NOT COMPLETE THIS SECTION - FOR CITY USE ONLY Date Application Received: Date Reviewed by Rosemead Staff: Approved or Declined: Date Notification Letter Sent to Applicant: Catalog of Federal Domestic Assistance (CFDA) Number: 14.218 CFDA Title: Community Development Block Grants/Entitlement Grants 9 DATE (MMIOD/YYYYI CERTIFICATE OF LIABILITY INSURANCE 6/27/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED SY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ios) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). CONTACT PRODUCER Ra E; Hannah Reneau PHONE (626}792-7654 N6 No: Arroyo Insurance Services (626)589-0839 etc, N_o.hen E-MAIL :henna hannahr@arroyoins. com (Binney, Chase and Van Horne) ADDRESS 11 W. Del Mar Blvd., Suite 200 INSURERS) AFFORDING COVERAGE NAICN Pasadena CA 91105 INSURER Philadel his Indemnity Ins, Co. INSURED INSURER B MTRUST Southern California Housing Rights Center, Inc. INSURERC.Chubb GrOuP Of Ins. Co 3255 Wilshire Blvd. INsuRERD: suite 1150 INSURERE: '-- Los Angeles CA 90010-1409 tnsuRERF: �..,,,aavvna. COVERAGES CERTIFICATE NUMBI-K:11111 rxy, n'—, •-I••- •-•-•-•-• ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD THIS IS TO CERTIFY THAY THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IITR ApOt R POwCYEFF POLICY EXP LIMITS TYPE OF INSURANCE POLiCYNUMBER MMIGb M IDD/YYYY 1,000,000 X COMMERCIAL GENERAL LIABILITY EAOHOCCURRENCE $ D TO RENTED 100.000 ❑X OCCUR PREMISES Eacccunence $ A CLAIMS -MADE X PILPHIGS274A 7/1/2017 7/1/2018 MEDEXP(Anyoneperson) $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GENERAL AGGREGATE 8 3,000,000 GENT AGGREGATE LIMIT APPLIES PER: X LOG PRODUCTS-COMP/OP AGG S 3,000,000 POLICY❑JEO- EmPIOYee Benen $ 1,000,000 OTHER: MBI ED SINGLE LIMIT S 1,000,000 AUTOMOBILE LIABILITY Eaamdenl BODILY INJURY(Perperaon) $ ��]RK1652744 A ANY AUTO ALLOWNED SCHEDULED X 7/1/2017 7/1/2018 BODILY INJURY (Per accident) S IT PROPERTY DAMAGE S X X AUTO WNED per accident HIRED AUTOS S EACH OCCURRENCE S 1,000,000 X UMBRELLA LIAa OCCUR AGGREGATE S 1,000,000 A EXCESS LIAB CLAIMS -MADE $ PHUB583612 7/1/2017 7/1/2018 DED R TENTION X 8 A UTE ORH WORKERS COMPENSATION E.L. EACH ACCIDENT S 1,000,000 AND EMPLOYERS' LIABILITY YIN A0NY CERIMEIMBER EXCLUDED? ECUTIVE ❑ N I A TWC3642466 7/1/2017 7/1/2018 E.L. DISEASE - FA EMPLOYE S 1 000 000 E.L. DISEASE -POLICY LIMIT S 1,000,000 B IMandatory In NH) If yes, descdbe under DESCRIPTION OF OPERATIONS below $1,000,000 C Professional Liability 8246-2211 7/1/2017 7/1/2018 Umlt 10,000 Rslanllon DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Addittonal Remarks Schedule, may boaltachad if Moro space is required) defined in the form if required in a Certificate holder is named as an additional insured as policy written agreement. Additional Insured shall be: "The City of Rosemead named additional insured." City of Rosemead Attn: Michelle Ramirez 8838 E. Valley Blvd., Rosemead, CA 91770 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. D REPRESENTATIVE Reneau/HANREN 't�^'^`CJ •'�� All rights reserved. ACORD 26 (2014101) The AGORD name and logo are registered marks of ACORD INS025 r201400 HOUSING RIGHTS CENTER, INC. FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2016 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) TABLE OF CONTENTS Page FINANCIAL SECTION Independent Auditors' Report Financial Statements: Statement of Financial Position Statement of Activities Statement of Functional Expenses Statement of Cash Flows Notes to Financial Statements GOVERNMENT AUDIT INFORMATION SECTION Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAudiring Standards Independent Auditors' Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance Schedule of Expenditures of Federal Awards Notes to schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Current and Prior Years Findings and Questioned Costs 1-1 1-3 1-4 1-5 1-6 1-7 2-1 2-3 2-5 2-6 2-7 2-8 VASIN, HEYN & COMPANY AN ACCOUNTANCY CORPORATION INDEPENDENT AUDITORS' REPORT To the Board of Directors of Housing Rights Center, Inc. (A California Non -Profit Corporation) Los Angeles, California Report on the Financial Statements We have audited the accompanying financial statements of Housing Rights Center, Inc. (A California Non -Profit Corporation) which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, functional expenses and cash flows for the yearthen ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentA uditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In malting those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also Includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit Opinion. 1-1 INDEPENDENT AUDITORS' REPORT - Continued Opinion In our opinion, the financial statements referred to abovepresent fairly, in all material respects, the financial position of Housing Rights Center, Inc. as of June 30, 2016, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report ori Summarized Comparative Information We previously audited Housing Rights Center, Inc.'s 2015 financial statements, and we expressed an unmodified opinion on those audited financial statements in our report dated March 23, 2016. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015, is consistent, in all material respects, with the audited financial statements from which it has been derived. The summary financial statements do not contain all the disclosures required by accounting principles generally accepted in the United States of America. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Housing Rights Center, Inc. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code ofPederal Regulations (CFR)Part 200, Uniform Administrative Requirements, Costprincipleg, andAuditRequirementsforFederalAtivards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information dnectly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fatly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by GovernmentAuditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2017, on our consideration of Housing Rights Center, Inc.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The Purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditingStandards in considering Housing Rights Center, Inc.'s internal control over financial reporting and compliance. Calabasas, California March 27, 2017 1-2 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 (WITH COMPARATIVE TOTALS FOR 2015) 2016 2015 ASSETS Cash and cash equivalents $ 423,895 $ 597,882 Contracts receivable 1,012,655 933,629 Case -related receivables 67,006 29,020 Deposits and prepaid expenses 44,171 16,795 1,547,727 1,577,326 Property and equipment Ftuniture and fixtures 73,362 73,362 Less accumulated depreciation (62,532) (55,280 Net, property and equipment 10,830 18,082 Total assets $1,558,557 $1,595,408 LIABILITIES Accounts payable and accrued expenses $ 33,323 $ 27,208 Accrued payroll and related liabilities 111,633 135,635 Total liabilities 144,956 162,843 NET ASSETS Unrestricted 1,413,601 1,432,565 Total net assets 1,413,601 1,432,565 Total liabilities and net assets $1,558,557 $1,595,408 See accompanying auditors' reports and notes to financial statements. 1-3 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 (WITH COMPARATIVE TOTALS FOR 2015) 2016 2015 REVENUE AND SUPPORT $ 1,953,485 $ ],959,253 Governmental service contracts 218,696 305,815 Case awards 51,825 47,010 Contributions and grants 21,514 16,558 Fees for services 593 1,179 Interest income 082 29,_ 9,060 Other income 6,773 Contract settlements $ 1,413,601 $ 1,432,565 Total revenue and support 2,275,195 2,332,102 EXPENSES 2,253,815 2,176,583 Program expenses 40,344 35,433 Support services Total expenses 2,294,159 2,212,016 CHANGE IN NET ASSETS (18,964) 120,086 1,432,565 1,312,479 NET ASSETS »beginning of year NET ASSETS - end of year $ 1,413,601 $ 1,432,565 See accompanying auditors' reports and notes to financial statements. 1-4 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2016 (WITH COMPARATIVE TOTALS FOR 2015) See accompanying auditors' reports and notes to financial statements. 1-5 2016 2015 Program Support Total Total Expenses Services Expenses Expenses Salaries and related expenses Salaries and wages $ 1,483,766 $ $ 1,483,766 $ 1,406,276 Payroll taxes 129,981 129,981 119,998 Employee benefits 186,553 1,248 187,801 177,396 1,800,300 1,248 1,801, 548 1,703,670 Other expenses Advertising 15,639 - 15,639 19,741 Conferences and meetings 3,264 5,019 8,283 8,219 Dues and subscriptions 4,875 - 4,875 4,850 Education and training 386 - 386 241 Equipment rental and maintenance 34,793 645 35,438 31,547 Insurance 17,106 - 17,106 20,548 Miscellaneous expenses 18,168 29,934 48,102 33,736 Office supplies 6,517 - 6,517 6,228 Outside services 21,912 - 21,912 23,332 Postage and delivery 19,209 69 19,278 17,986 Professional fees 10,270 - 10,270 25,648 Public relations - 38 38 - Pcut 175,418 - 175,418 160,779 Repairs and maintenance 3,006 - 3,006 4,753 Supplies 18,564 2,192 20,756 25,150 Taxes and licenses 4,852 150 5,002 5,763 Telephone 42,453. 110 42,563 28,330 Testing costs 20,845 581 21,426 68,617 Travel 28,986 358 29,344 15,626 2,246,563 40,344 2,286,907 2,204,764 Depreciation 7,252 - 7,252 7,252 Total expenses $ 2,253,815 $ 40,344 $ 2,294,159 $ 2,212,016 See accompanying auditors' reports and notes to financial statements. 1-5 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED NNE 30, 2016 (WITH COMPARATIVE TOTALS FOR 2015) 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 18,964 $ 12Q086 Adjustments to reconcile change in net assets to net cash provided by operating activities 7,252 7,252 Depreciation (Increase) decrease in: (79,026) (221,865) Contracts receivable (37,986) 40,623 Case -related receivables (27,376) 343 Deposits and prepaid expenses Increase (deerease)in: 6,115 (55,842) Accounts payable and accrued expenses (24,002 9,652 Accrued payroll and related liabilities Total adjustments (155,023) (219,837) Net cash provided (used) by operating Activities (173.987) (99,751) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (173,987) (99,751) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 597,882 697,633 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 4231895 $ 597,882 See accompanying auditors' reports and notes to financial statements. 1-6 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 1. ORGANIZATION Housing Rights Center, Inc. serves as an advocate in encouraging the existence and maintenance of multiethnic neighborhoods where all people can live and exist in harmony. Housing Rights Center, Inc. provides leadership and coordination for the elimination of illegal discrimination against individuals seeking housing. Housing Rights Center, Inc. promotes every person's right to exercise unqualified free choice in the selection of housing. Housing Rights Center, Inc. is organized as a California non-profit corporation. The majority of its funding is received from federal financial assistance pass-through awards originating with the United States Department of Housing and Urban Development. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Housing Rights Center, Inc. prepares its financial statements in accordance with generally accepted accounting principles (GAAP) promulgated inthe United States ofAmerica. The significant accounting and reporting policies used by Housing Rights Center, Inc. are described below to enhance the usefulness and understandability of the financial statements. Financial Statement Presentation The financial statements are presented based on Accounting Standards Codification (ASC) Topic 958, Not for - Profit Entities. ASC Topic 958, Sections 210 and225 requires classification of Housing Rights Center, Inc.'s net assets, revenues as well as expenses based on the existence or absence of donor -imposed restrictions. The statement requires presentation of the amounts for each ofthe three classes of net assets—permanently restricted, temporarily restricted, and unrestricted—in the statement of financial position and the amounts of change in each of those classes of net assets in the statement of activities. NetAssets The financial statements report net assets and changes in net assets in three classes that are based upon the existence or absence of restrictions on use that are placed by its donors, as follows: • Unrestricted net assets. Unrestricted net assets are resources available to support operations. The only limits on the use of unrestricted net assets are the broad limits resulting for the nature of the organization, the environment in which it operates, the purposes specified in its corporate documents and its application for tax-exempt status, and any limits resulting fitom contractual agreements with creditors and others that are entered into in the course of its operations. 1-7 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued • Temporarily restricted net assets. Temporarily restricted net assets are resources that are restricted by a donor for use for a particular purpose or in a particular future period. Housing Rights Center, Inc.'s unspent contributions are classified in this class if the donor limited their use, as are the unspent appreciation of its donor -restricted funds. When a donor's restriction is satisfied, either by using the resources in the manner specified by the donor or by the passage of time, the expiration of the restriction is reported in the financial statements by reclassifying the net assets from temporarily restricted to unrestricted net assets. Net assets restricted for acquisition of buildings or equipment (or less commonly, the contribution of those assets directly) are reported as temporarily restricted until the specified asset is placed in service by Housing Rights Center, Inc., unless the donorprovides more specific directions about the period of its use. Housing Rights Center, Inc. did not have any temporary restricted net assets at June 30, 2016. • Permanently restricted net assets. Permanently restricted net assets are resources whose use by Housing Rights Center, Inc, is limited by donor -imposed restrictions that neither expire by being used in accordance with a donor's restriction nor by the passage of time. Housing Rights Center, Inc. did not have any permanently restricted net assets at June 30, 2016. All revenues and net gains are reported as increases in unrestricted net assets in the statement of activities unless the use of the related resources is subject to temporary or permanent donor restrictions. All expenses and net losses are reported as decreases in unrestricted net assets. Cash and Cash Equivalents Cash and cash equivalents are short term, interest bearing, highly liquid investments with original maturities of three months or less, unless the investments are held for meeting restrictions of a capital or endowment nature. Receivables Receivables consist of contracts, case -related, employee insurance, and other miscellaneous amounts and are stated at the amount management expects to collect from outstanding balances. Contracts receivables are primarily unsecured amounts due on costreimbursement or performance contracts. Any amount that is denied for reimbursement is written off when Housing Rights Center, Inc. receives notification from the grantor agency. Housing Rights Center, Inc. uses the allowance method of accounting for its account receivables that are determined to be potentially uncollectable. In management's opinion, all contracts receivable were collectible at year-end. No allowance for doubtful accounts for contracts and accounts receivable is considered necessary at June 30, 2016. Deposits and prepaid Expenses Deposits, prepaid expenses and other costs are expensed ratably over their respective terms of agreement. 1-8 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued Accounting for Contributions Contributions, including unconditional promises to give, are recognized when received. All contributions are reported as increases in unrestricted net assets unless use ofthe contributed assets is specifically restricted by the donor. Amounts received that are restricted by the donor to use in future periods or for specific purposes are reported as increases in eithertemporarily restricted or permanently restricted net assets, consistent with the nature ofthe restriction. Unconditional promises with payments due in future years have an implied restriction to be used in the year the payment is due, and therefore are reported as temporarily restricted until the payment is due unless the contribution is clearly intended to support activities of the current fiscal year or is received with permanent restrictions. Conditional promises, such as matching grants, are not recognized until they become unconditional, that is, rmtil all conditions on which they depend are substantially met. Contributed Goods and Services Contributions of goods received that are measurable are recorded as revenue at their estimated fair value when received. Contributions of services are recognized if the services received meet any of these criteria: (1) if they create or enhance nonfinancial assets and (2) if they require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. No amounts have been included in the accompanying financial statements for. donated services except for in-kind contributions required under government contracts which are recorded as revenue and expense in equal amounts at fair value. No contributed goods and services qualified for recognition during the year ended June 30, 2016. Government Revenue Government revenue is recognized when the qualifying costs are incurred for cost -reimbursement grants or contracts or when a unit of service is provided for performance grants. Government revenue from federal agencies is subject to independent audit under the Uniform Guidance and review by grantor agencies. The review could result in the disallowance of expenditures under the terms ofthe grant or reductions of future grant funds. Based on prior experience, Housing Rights Center, Inc.'s management believes that costs ultimately disallowed, if any, would not materially affect the financial position of Housing Rights Center, Inc. Revenue Recognition Revenues from government agencies, service fees, and other third -party payors for services provided under such contracts are recognized when earned by Housing Rights Center, Inc, Alt gifts, bequests, and other public support are included in unrestricted net assets rmless specifically restricted by the donor or the terms of the gift or grant instrument. Revenue received where the restriction is met in the same fiscal year is reported under unrestricted net assets. Amounts received in excess of balances earned are recognized as liabilities. 1-9 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED .JUNE 30, 2016 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued Vacation Policy Vacation benefits are accrued on a monthly basis. Full -Time and Part -Time Employees accrue vacation time based upon years of service to Housing Rights Center, Inc. Unused vacation leave will be paid at the time of termination. Total accrued vacation at June 30, 2016, was $76,174. Property and Equipment Land, buildings, property, and equipment are reported in the statement of financial position at cost, if purchased, and at fair value at the date of donation, if donated. All assets purchased over $5,000 with useful life over one year will be capitalized and depreciated using straight-line method. Repairs and maintenance that do not significantly increase the useful life of the asset are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Furniture and Equipment 5 years Property and equipment are reviewed for impairment when a significant change in the asset's use or another indicator of possible impairment is present. No impairment losses were recognized in the financial statements in the current period. Fully depreciated assets are retained in the accounts at their estimated salvage value until their retirement. Income Taxes HousingRights Center, Inc. is exemptfrom Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and California income taxes under section23701(d) of the California Revenue and Taxation Code. The IRS classified the organization as one that is not a private foundation within the meaning of section 509(a) ofthe Code because it is an organization described in section(s) 509(a)(1) and 170(b)(1)(A)(vi). Housing Rights Center, Inc. has adopted Financial Accounting Standards Board Accounting Standards Codification (ASC) Section 740-10, which clarifies the accounting for uncertainty in income taxes. ASC Section 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Section 740-10 requires that an organization recognize in the financial statements the impact of the tax position if that position will more likely than not be sustained on audit, based on the technical merits ofthe position. As of and for the year ended June 30, 2016, Housing Rights Center, Inc. had no material unrecognized tax benefits, tax penalties or interest. Housing Rights Center, Ine.'s Forms 990, Return of Organization Axemptfrom Income Tax, for each of the tax years ended June 30; 2015, 2014, and 2013 are subject to examination by the IRS, generally for 3 years after they were filed. 1-10 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Contract Settlements Governmental contract funds received during the year ended June 30, 2016 applicable to a contract performed during a prior fiscal year but not subjected to the contracting agency's close-out procedures until the current fiscal year has been recognized in the financial statements as unrestricted general fluid income for the year ended June 30, 2016 and is not reported as program or other income for the current contract period. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period and the reported amounts of assets and liabilities at the date ofthe financial statements. On an ongoing basis, Housing Rights Center, Inc.'s management evaluates the estimates and assumptions based upon historical experience and various other factors and circumstances. Housing Rights Center, Inc.'s management believes that the estimates and assumptions are reasonable in the circumstances; however, the actual results could differ from those estimates. Expense Recognition andAllocation The cost of providing Housing Rights Center, Inc.'s programs and other activities is summarized on a functionat basis in the statement of activities and statement of functional expenses. Expenses that can be identified with a specific program or support service are charged directly to that program or support service. Costs common to multiple functions have been allocated among the various functions benefited. General and administrative expenses include those costs that are not directly identifiable with any specific program, but which provide for the overall support of Housing Rights Center, Inc. Fundralsing costs are expensed as incurred, even though they may result in contributions received in firture years. Housing Rights Center, Inc. generally does not conduct its fundraising activities in conjunction with its other activities. In the few cases in which it does, such as when the annual report or donor acknowtedgements contain requests for contributions, joint costs have been allocated between fundraising and management and general expenses in accordance with standards for accounting for costs of activities that include fundraising. Additionally, advertising costs are expensed as inured. There were no fundraising costs for the year ended June 30, 2016. Reclassifications Certain amounts inthe 2015 comparative totals have been reclassified to conform withthe 2016 reporting format. Comparative Totals The financial statements include certain prior -year summarized comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with Housing Rights Center, Inc.'s financial statements for the year ended June 30, 2015, from whicli the summarized information was derived. HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Fair Paltte Measurements Housing Rights Center, Inc. reports its fair value measures using a three-level hierarchy that prioritizes the inputs used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal or most advantageous market at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. Inputs used to determine fair value refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available. This hierarchy, established by GAAP, requires that entities maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows: Level 1 - Quoted prices for identical assets or liabilities in active markets to which Housing Rights Center, Inc. has access at the measurement date. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; observable inputs other than quoted prices for the asset or liability (for example, interest rates and yield curves); and inputs derived principally from, or corroborated by, observable market data by correlation or by other means. • Level -Unobservable inputs for the asset or liability. Unobservable inputs should be used to measure the fair value to the extent that observable inputs are not available. The carrying amounts of cash and cash equivalents and receivables approximate fair value because of the terms and relatively short maturity of these financial instruments. The carrying amounts of liabilities, approximate fair value because of the relatively short maturity of these financial instruments. When available, Housing Rights Center, Inc, measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. 1-12 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATE' MENTS FOR THE YEAR ENDED JUNE 30, 2016 (CONTINUED) 3. CONTRACTS RECEIVABLE' Contracts receivable at June 30, 2016 is comprised of the following: Contractor June 30, 2016 City of Alhambra $ 2,084 City of Baldwin Park 1,320 City of Carson 7,825 City of El Monte 18,000 City of Glendale 2,600 City of Glendora 1,340 City of Hawthorne 17,750 HUD-FHW 267,920 City of Inglewood 4,833 City of Lancaster 6,607 City of Los Angeles 490,089 County of Los Angeles 88,252 City of Montebello 19,998 City of Monterey Park 2,500 City of Oxnard 2,418 City of Palmdale 2,291 City of Pasadena 37,499 Pasadena Mediation 1,830 City of Pico Rivera 1,365 City of Pomona 5,182 City of Redondo Beach 7,248 City of Rosemead 2,594 City of San Buenaventura 2,649 County of Ventura 15,950 City of West Covina 1,691 City of Whittier 820 Total $ 1.012.655 In management's opinion, all contracts receivables were collectible at year-end and therefore no allowance has been established. 1-13 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 (CON'T'INUED) 4. PROPERTY AND EQUIPMENT Property and equipment at June 30, 2016 consists of the following: Equipment and Furniture $ 73.362 73,362 Less: Accumulated depreciation (6532) Property and equipment, net $ 10,830 Depreciation expense for the year ended June 30, 2016 was $7,252. 5. OBLIGATIONS UNDER OPERATING LEASE During June 2012 the agency entered into a new operating lease agreement with Wilshire Center, Inc. which commenced December 1, 2012 and expires November 30,2024. The lease calls for monthly payments of $11,419 for the fust six years; thereafter the monthly payments will increase 7% every three years. During May 2013 the agency entered into a new operating five year lease agreement with Sam & Sam, Inc. forthe agency's Van Nuys office, The lease rtexpires lease for monthly payments of $850 fo the first year; thereafter he monthly payments will increase 3% everyp Housing Rights Center, Inc. is obligated under an operating lease with the City of Pasadena. The lease calls for monthly payments of $225 and expired June 30, 2012. As of June 30,2o 12 the lease is on a month to month basis. Future minimum lease payments are as follows for the year ended June 30: 1-14 $ 177,331 2017 171,070 2018 165,435 2019 169,826 2020 339.652 2021 and thereafter _ &I.L23 314 Total Total rent expense for the year ended June 30, 2016 was $175,418. 1-14 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 5. OBLIGATIONS UNDER OPERATING LEASE - Continued Housing Rights Center, Inc. leases office equipment under several operating leases with terms expiring June 30, 2021, In January 2016 the agency entered into a 60 month operating lease agreement with Cell Business Equipment. Future minimum equipment lease payments are as follows for the year ended June 30: 2017 $ 37,219 2018 18,804 2019 15,609 2020 15,609 2021 8,428 Total 95,669 Total equipment rental expense for the year ended Tune 30, 2016 was $35,438. 6. CONTINGENCIES a) Grants - Housing Rights Center, Inc. has received federal and local government funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances tinder the terms ofthe grants, it is believed by management that any required reimbursements will not be significant to the financial position of Housing Rights Center, Inc. b) Risk and Uncertainties - Housing Rights Center, Inc. receives funding from certain governmental agencies including the U.S. Department ofHousing and Urban Development and local governments. Such agencies are subject to legislative changes and may require Housing Rights Center, Inc. to meet certain criteria, or renew term agreements. Should the amounts received from such government agencies change or cease for any reason, the financial activities of Housing Rights Center, Inc. could be adversely impacted. c) Legal- In the ordinary course of business, Housing Rights Center, Inc. maybe subjectio certain lawsuits and other potential legal actions, Management represents that as of June 30, 2016, any liability to Housing Rights Center, Inc, for existing matters is unlikely. 1-15 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 (CONTINUED) 7. EMPLOYEE BE, PLAN Housing Rights Center, Inc. participates in a single -employer defined contribution 403(b) retirement plan (Plan) covering all full-time, continuous employees. Monthly contributions of 4.5%, based upon an employee's gross salary, are funded by Housing Rights Center, Inc. on a current basis. The Plan contribution expense was $43,034 for the year ended June 30, 2016. In addition, Housing Rights Center, Inc. also participates in a deferred contribution pian (Plan), as set forth in section 457 of the Internal Revenue Code of 1986, forthe highly compensated employees. The Plan contribution expense was $0 for the year ended June 30, 2016. S. SPECIAL PROJECTS Housing Rights Center, Inc. has continuously contractedwith the City ofPasadenato provide mediation services and with the Urban Institute to perform housing discrimination studies. During the fiscal year, Housing Rights Center, Inc. conducted rental audit testing, research and data analysis in the City of Rosemead for its Analysis of Impediments (AI) Study. It also worked with JWA Urban Consultants, Inc. to provide the same fair housing services for the City of Monterey Park. Housing Rights Center, Inc. provided assistance to Engaging Solutions, Inc. in its testing recruitment and gaining for the Indiana Statewide Testing Project. It provided similartechnical assistance to the Bay Area Legal Aid organization in Oakland, California. The National Fair Housing Alliance, early in the fiscal year, provided a legal staff gaining grant to Housing Rights Center, Inc. The expenditures incurred from services to these agencies are recorded as special projects. The total projects revenues and expenses recorded for June 30, 2016 is as follows; City of Palmdale Fair Housing Training $ 18,000 5,000 City of Lancaster, Fair Housing Training 3,110 Pasadena Mediation, Mediation Services 5,000 National Community Reinvestment Coalition Tester Training Engaging Solutions Technical Assistance 1.725 $ 32 835 Total Revenue 17,461 Total Expenses 1-16 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 (CONTINUED) 9. CONCENTRATION RISK Amounts held in financial institutions occasionally are in excess of the Federal Deposit insurance Corporation and Securities Investor Protection Corporation limits. Housing Rights Center, Inc. deposits its cash with high quality financial institutions, and management believes the organization is not exposed to significant credit risk on those amounts. The majority of Housing Bights Center, Inc.'s contributions and grants are received from corporations, foundations, and individuals and from California and federal governmental entities. As such, Housing Rights Center, Inc.'s ability to generate resources via contributions and grants is dependent upon the economic health of that area and of the state of California. An economic downturn could cause a decrease in contributions and grants that coincides with an increase in demand for Housing Rights Center, Inn's services. 10. SUBSEQUENT EVENTS Housing Rights Center, Inc. has evaluated events subsequent to June 30, 2016 to assess the need for potential recognition or disclosure inthe financial statements. Such events were evaluated through March 27, 2017, the date the financial statements were available to be issued. Events occurring after that date have not been evaluated to determine whether a change in the financial statements would be required. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements. 1-17 GOVERNMENT AUDIT INFORMATION SECTION VASIN, HEYN & COMPANY AN ACCOUNTANCY CORPORATION CERTIFIED PUBLIC ACCOUNTAMS AN D MANAGEMENT CONSULTANTSRT INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARD,S To the Board of Directors of Housing Rights Center, Inc. (A California Non -Profit Corporation) Los Angeles, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Housing Rights Center, Inc. (A California Non -Profit Corporation), which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, functional expenses and cash flows for the yearthen ended, and the related notes to the financial statements, and have issued our report thereon dated March 27, 2017, Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Hous! ng Rights Center, Inc•'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Housing Rights Center, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, suchthat there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on atimely basis. Asignifrcant deficiency is adeficiency, or a combination Of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Giventhese limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 2-1 Compliance and Other Matters As part of obtaining reasonable assurance about whether Housing Rights Center, Inc.'s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions ordingly, we do not e dislts of our tests closedno ne insnot an tances ofve of our audit, and lothermatterequired quredtobeer d poundxpress such an opinion. ehGovernmentAuditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in consideringthe organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. N v�' � h `TN + l0. Calabasas, California Maeh 27, 2017 2-2 VASIN, HEYN & COMPANY AN ACCOUNTANCY CORPORATION INDEPENDENT AUDITORS' REPORT ON COMPLIANCE OVPR COMPLIANCE REQUIREDB ITHE UNIFORM GUIDANCM AND ON INTERNAL E + To the Board of Directors of Housing Rights Center, Inc. (A California Non -Profit Corporation) Los Angeles, California Report on Compliance for Each Major Federal Program We have audited Housing Rights Center, Inc. (A California Non -Profit Corporation) compliance with the types of compliance requirements described inthe OMB Compliance Sapplementthat could have a direct and material effect on each of Housing Rights Center, Inc.'s major federal programs for the year ended June 30, 2016. Housing Rights Center, Inc.'s major federal programs are identified inthe summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors' Respansthility Our responsibility is to express an opinion on compliance for each of Housing Rights Center, Inc.'s major federal programs based on our audit of the types of compliance requirements referred to above, We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S, Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on atest basis, evidence about Housing Rights Center, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Housing Rights Center, Inc.'s compliance. 2-3 Opinion on Each Mq/or Federal Program In our opinion, Housing Rights Center, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. Report on internal Control Over Compliance Management of Housing Rights Center, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above, In planning and performing our audit of compliance, we considered Housing Rights Center, Inc.'s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate inthe circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion onthe effectiveness of Housing Rights Center, Inc.'s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, inthe normal course of performing their assigned functions, to prevent, or detect and connect, noncompliance with a type of compliance requirement of a federal program on atimely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, ininternaL control over compliance with atype of compliance requirement of afederal program that is less severe than amateriat weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report oninternal control over compliance is solely to describe thescope ofourtesting of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. N � u °y,. + G. Calabasas, California March 27, 2017 2-4 A { a [I H pp p p N� xMn m� r�i � vmi o O M N P N vOi N� M N O o� 0 o Mp m� yOj � a N N w m.o .o .o m.o .o `Oe em.oemw �mebe ion roe � o S -8 m o o 8 h m� r r r r i� � r bry Vw N W s pAN V O (rAz� to a a a a d F tV T.h NAA � A 6 v m m m m m m m m m m m m m m m m m m m m m m m m ti p m �.so.W��i wUz ch 0 Upa w p a � c d 6A W w �y' Cry s ,�. aM q � ySsdq d eo yq. Q 6 GO➢ y�0 O9 C OD (4 G p a l�+ O O O OD 4, mmen5 .$ o - g x oWwN ion. o °�' . o °0 w 'a x x x xL° .�tl �' vas' xy d �°a33 w k¢wc�iw�c�x�-�io,��� �aaaceam w�z C�9 F t 79 o 0 0 o v o 0 0 0 o o 0 0 0 0 0 0 0 0 o 0 o x O caro 08�F U'� 086�U"v�i�c�c��c� w da HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) NOTES TO SCHEDULE OF FEDERAL AWARDS FOR THE YEAR ENDED .TUNE 30, 2016 1, BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of Housing Rights Center, Inc. under programs of the federal government for the year ended June 30, 2016. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion ofthe operations of Housing Rights Center, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Housing Rights Center, Inc. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2U.S. Code offederalRegulationsPart 200, Uniform Administrative Requirements, Cost Principles, an"uditRequirements for FederalAwards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. 3. DE MINIMIS INDIRECT COST RATE Housing Rights Center, Inc. did not elect to use the 10% de minimis indirect cost rate for the year ended June 30, 2016. A. LOAN AND LOAN GUARANTEE Housing Rights Center, Inc, did not have any balances of loan and loan guarantee programs outstanding at June 30, 2016 for loans described in 2 CFR section 200.50(b). 2-6 HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED J CINE 30, 2016 Section 1- Summary of Auditors' Results Financial Stalemen/s Type of auditors' report issued on whether the financial statements were prepared in accordance with GAAP: Unmodified. Internal control over financial reporting: • Material weakness(es) identified? _ • Significant deficiency(ics) identified? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: • Material weaknesses) identified? • Significant deficieney(ies) identified? Type of auditors'report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with 2CFR200.516(a)? Identification of major programs: CFDANuntber(s) 14.218 14.408 Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as tow -risk auditee? Section II - Financial Statement Findines No matters were reported. Section III - Federal Award Findings and Questioned Costs No matters were reported. 2-7 Unmodified. Yes X No Yes X None Reported Yes X No Yes X No Yes X None Reported Yes X No Name of Federal Program or Cluster Community Development Block GrantstEntitlement Grants Fair Housing Initiatives Program $750,000 X Yes No a HOUSING RIGHTS CENTER, INC. (A California Non -Profit Corporation) CURRENT AND PRIOR YEARS FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2016 CURRENT YEAR FINDINGS: 2016 Findings: There were no 2016 findings noted. 2016 Questioned Costs: There were no 2016 questioned costs noted. PRIOR YEARS FINDINGS: 2015 Findings: There were no 2015 findings noted. 2015 Questioned Costs: There were no 2015 questioned costs noted. 2014 Findings: There were no 2014 findings noted. 2014 Questioned Costs: There were no 2014 questioned costs noted. 2-8 RTO HONDO CDC Reseived (S)RIO COMMUNITY DEVELOPMENT CORPORATION January 25, 2018 Michelle G. Ramirez Community Development Director City of Rosemead 8838 E. Valley Blvd Rosemead, CA 91770 RE: HOME Partnership Program 2018-2019 Fiscal Year Application Dear Ms, Ramirez, Rio Hondo Community Dev. Corp. is grateful to be considered for 2018-2019 HOME Funds. Please find the enclosed documents along with the certification form as requested. The City of Rosemead and Rio Hondo CDC partnership has proven successful in providing low-income housing for many years. With a history of development, new construction, acquisition rehab and sound community support / involvement, Rio Hondo CDC continues to offer much needed shelter / housing to families in the San Gabriel Valley. Please feel free to contact me with any questions or if you require additional documentation. I look forward to attending the City Council Meeting on the evening of February 13, 2018. Please consider providing operating costs again for the fiscal year 2018-2019. Sincerely, Kenneth Ferreira I Executive Director Rio Hondo Community Development Corp. WWW,RIOHONDOCDCiOrg 11706?RAMONA BLVD >1.A0? e.E MONTEr.::CA 9 173 2 +626'4 0:1.17 Community Dousing Development Organization Certification Application 2018-2019 www.RIOHONDOCDC org 11706 RAMONA 8LVO • v 107 • EL MONTE, CA 91752 • 626.401 2784 City of Rosemead 8838 E. Valley Boulevard Rosemead, CA 91770 (626)508-2102 polatt@cityofrosemead.orp • • • B • • �'r • . •. (CHDO) Certification Application Fiscal Year 2018-19 Legal Name of Organizations _- Rio Hondo Community Development Corporation J _ Tax ID #: 01.0740130 DUNS #: Address; .. 11706 Ramona Blvd 11107, EI Monte, CA 01732 --..__. Executive Direotor. Kenneth Forralra _........ Contact Name: Kenneth Ferrels Telephone:,__6264011-2764 1-.... _...-_......_.,...-----.—__.---... Fax:..... - ..— — .._....... Ren ter@riohondoode.org Email:._._. The following documentation most be submitted with certification form in order for the applying organization to he considered for Community Housing Development Organization (CHDO) designation. Please indicate in the spaces provided the section in the application package and the page number containing each of the requirements. Please indicate page number. - 1. The organization must provide Rosemead with each of the followingt • Articles of Incorporation o Bylaws A provision to provide decent and affordable housing to very low- and low-income persons must be included in the Articles of Incorporation. 46 Evidence that the organization has been conditionally designated or has received sol(c) tax-exempt status from the United States internal Revenue Service. 1 Catalog of Federal Domoet o As•latonca (CFDA) Number: 16.759 CFDA Title: HDt1E Investment Partnerships program 50 Documentatlon from the California Secretary of State that the Organization is in good standings, if the organization is newly created and is less than one year old, certification will suffice, Indicate the organization's service area (i.e., city, town, or county). This must be included in the Articles and/or Bylaws. 6, 60 A certification from a Certified Public Accountant that the organization meets standards of financial management and accountability that conform to Attachment F of OMB Circular A-110 (24 CFR Fart 84), A-133 and A-122, 7, 74 _ A signed resolution from the applicant organization's Board of Directors approving the submittal of this a pplleation, H 75 A listing of the CHDO Board of Directors. Each director must be Identified by name, occupation, employer and which sector (private, public or low-income) he/she will represent. In addition, board members who are to represent low-income residents must supply verification that they are either row -income themselves, a resident of a low-income neighborhood or an elected representative of a low-income neighborhood ororganization, a At a minimum, one-third of the board must be comprised of low- income representatives and a maximum of one-third of the board may be public officials, appointees or employees of the City of Rosemead. Furthermore, this board composition requirement and election procedure must be Included In the bylaws, • Each director may only represent a single sector (i,e„ low-income or public official, but not both), g 77 A description of the formal process the organization has established for low-income beneficiaries to advise the CHDO on project design, location of sites, development and management of affordable housing, This process must be Included in the bylaws. lo. A projected five-year strategic business plan to include all anticipated funding sources. The business plan must be delineated by year and contain specific, measurable goals regarding affordable housing unit productlop and number of households to be assisted, as wolf as other long-range individual and community development goals of the Ci DO. 2 Catalog of Federal Domestic Assistance ICFDA] Humbert 14,290 OFDA T11W HOME InvestmentAartnerships Program 12. 80 A list and description of the community service and affordable housing experience of the organization, Its key personnel and board, and/or consultants, Including both successful and non -successful projects. s If the applicant organization has been in existence for fess than one year, it must demonstrate that its parent organization (if applicable) has at least one year's experience serving the community. If the CHOO Applicant is sponsored or created by a for-profit entity, please talk to Pat Platt, senior Management Analyst, for additional information at {626) 869-2102. The undersigned does hereby certify that to the best of his/her knowledge, the above assertions and document submissions are true and accurate.. Further, the undersigned certifies to the best of hls/her knowledge that said agency is in compliance with all HOME Program regulations, Chief Execidtfive Officer Bate The City of Rosemead is supported by Federal HUD funds, Applicants and their representatives are subject to penalties for false or fraudulent statements as set forth by U.S4, Title 98, Section 1089: "Whoever, In any matter within the jurisdiction of any department or agency of the United States, knowingly and wilifully falsiflas or makes false, fictitious or fraudulent statements or representation, or makes or iisoa any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more that $10,000, or Imprisoned notmore than five years, orboth." DO NOT COMPLETE THIS SECTION — FOR CITY USE ONLY Date Application Received. ______,_ Date Reviewed by Rosemead Staff; Approved or Declined, __ Date Notification Letter Sent to Applicant; 3 Catalog of Federal Domestic, Aseletanoe, (CFDA) Number! 14.239 OFOATNIat HOW bweatrnentPartnorabipt+Program BYLAWS OF Section`';wincipalonice principal office of the corporation The Bpi tha"sktion of itsbwIftegs is located a044011 Valley Boulcvard;' Suite 201, El Monte;h, 91731 in County- of Los Angeles, Change of Address cThe ity o f the Po. w amendment of theSoBylaws and not otherwise: The Bpard o£Directots may, ge the Plw, �ccfrom160AP s and dv0 ate blow,and so amendment of these yaws, Xn accordance ivii-h. this Section, the corporation's Board of Dkeetors, at its SI0p'*.t#;b0 28, 2011 meeting approved change N .. al qjJI'vo location from the lop.004 64ginallY PrOWd.in "."Section 1. Principal :0116n" a 4ve. to &W location, 11704 Ramona Boulevard Shite -197, EI v Octobee.1, 2011. .Seqitpo:Ibthcr Offices The Board of Direciors may establish branch or subordinate office s --ht such other to do*, business as lac I qualified 'T ito. a its business may require. Article ,T tYii urpo soctil9g. 1. Obj jectim a4d,P.p' ses The p preserve he housing promote denqy, chronic 11roW ons; totion and V distress, Section 2. Community Housing WYOPP" Organization It is intended that this corporation qualify; as a Community Housing Development I , 11 Section Organization (CHDO) as defined PFR ection 92.2, Section L Number The corporation shall havg between Hire and thirteen directors and collectively they shall h by amendment of this be known as the of �,'.ffiq.qiah number may change as provided in these Bylaw, or by I of 416'.(jw of a new Bylaw, , Bylaws. Section 2, Coujpositiojj of t1je Board of.frr"rg A rniniriruni of ane-third{er feu of the el ervip g,on.the Board shall 'Directors g I - j its Pound at 94 CFR satisfy the CHDO U)*Mq0'w ca . P community representative" is - iflus Section, 92.2. For the P1409es -'-i —, 6" go this i any omeT 3;pp;) and Bylaws members; if la or ctors servingion "public official" . [ by the shall be -A- conducted and all Corporate, powers shall be exercised by and under the direction of the Board of Directors, sktion 4. Duties It s40 be the duties of the Directors to,, perform any and all duties imposed on ilienit0eefively and individually by law, by.,the Articles of Incorplo.ratiou of this corporation or by these Bylaws; Appoint and remove discharge, and, as otherwise provided in employ and 0 except these.Bylaws, prc4 duties and fix the compensation; lf-any, of all officers, agents 40 employees Of tfi0oorpomdow, supervise all officers, agents andemploy'e es the corporation to assure that their duties are pefformed piopetly; Meet at such times and a -Tlaces as required by'fheseByl%ws; Register their addresses with the Swretary;of. the corporation and notices of meetings mailed, telegraphed, or hand -delivered to them at such addresses shall be valid notices thprcoC Sk:tiou S. Terms of Office Each director shall hold office until the next annual.meeting For election of the: Board of Directors as specified in, these Bylaws, and until. his or her successor is elected and Soetion 6. Compensation Dir cgoTs shall serve wi,put compiensot'-t.o.texcept for Tm:6h'ible aiadvancement t and roIm, e pntkexpen4es`incurred to pMqeQf their aUesas spedfied in Secteort of rhes Article Directors may not. he tqmpeaOated for rendenng seiviees to the ration In any capacity other ".Al �i4 ss. sqqh,MPT .... C her compensation is reasonable and Section 7. R"tried 611 It pgardinglutemte Di " t ors, Notwithstanding anyo#ler provisions of thos6,'tylaws, not more than fogy -nine percent (4k, 4 the persons i serving on the Board of biectcirs may be interested Persons. For the purposes this :Section, "interested pe mom eithen Any pepobeuueatly being compensated by the corporation for services Tendered it within the ptevious.twolve (12) months, whether as a full- or part-time officer or other tet. employee, independent contractor, or otherwise, excluding any reasonable compensation paid to a director as director; or Any brother, sister,.'ancestor, descendant, spouse; brother. -in-law, sister in-law, SOU -ill -law, daughter: aw, mother -in -laid, or father-in-law of any suchperson. Section S. Place otgreetings Meetings shall be held the prinolpal offices of the corporation unless otherwise provided by the Board ar, at such place within or Without the State of California, which has been designated :frum: time to time by ltcs4ntion of the Board of Directors, In the absence of such desrg iali6n, =y meeting, not held at the principal o.Mce of the corporation shall be valla only if held on the written consent of all of the directors either before of after the meeting and.fIed with the Sectetary of the corporation or after all Board members have been given Written notice of th6..meeting as hereinafter provided. for special meetings of the Board. Any meeting, regular or special, may be bW by conference telepjrone, electronic video screen comtntpicaiion, or other communications equipment Participation in the meeting through the nsa of caiiference telephone constitutes presence in person at that meeting so long as all-'lireetors participating in the meeting are z able to hear one another. participationtti the meeting tluough.use of eleetronie video screen communication or other comminukation equipment.(other than conference tel hone) constitutes Pres Once person if all of the followil h :dtreeeior partici directors con4luxerEly; the meetingcan comtitunieate with all other hijsiness day; If this corporation makes no, directors held on the.ittond N beginning in-the.yea�!;r - �603 shall not bepOrMitted. 7.Me cand1,_.teg.,.,rc;�. ., - - I I. eshall1, 1. number of directors to he elected be voting being by ballotonly. Section 10. Spotlit Meetings :Special Meetings..of Board of Dired b di President, the.,Secrotary, .or Y aqyjWq . place; within iffibut the Staic:of :q calling the, meeting and in the corporation, Section 11, N"Omeetings for members, then, at the annual meeting of ih ScOiomber of each cale4da 1 r year at -7-410M, 6111,.6 elected by the Board of Directors in P b directors::kor the ol6otion of directors voting'by e - cry , to 1 8 , the highest. , , number , of votes up to the Each dirc,. 9tbF shallne cast o vote, With ko, may, be called by; the President, the Vice outoiis, and such mectings.zhall be held at the ifomia, designated_ by the person ox persons ittcli;:deslgnation, at. e Prinelp th al office of the Regular meetings of,the Board way'.6e held, without notice. Board shall be held, upon four (4) days? -4fitton notice sent b eight (4$)bqurs',%notiC, delivered poigbriaby or by telephone 01 or tot ii ,� " egrop " the. c noticpsboll be deemed to be delivered on its its delivery ,toAheiel ph company"Sue notices shall bo I a, � his or hot thee address6,617 e pot as sown on the boo,, poratiom N Of 0 rued meeting 46� be t tisca on Apt given 0 a placeo peting aree-ft0dat the faced ' meeting i0joui _;, meeting is held : no more than t�y-At'.Jlqpr. (24).hours from meeting. Notree shall be given of.pn d V*, _y a Uurfted To' OrIA absent from the opgiiial.meeting if th:•id*- qo meeting U.1 Special meetings of the Pr*cIass mail or forty - telegraph. If sent by mail lcposit in the mails or on b=d to each director at fici of the time and place directors if ft-, time and k�d-ind if such adjourned ih:* time of the original P,hd meeting to direc - tors ld ore than (24)ho= Section 12, Contitnts of Notice Notice of any meeting for which the. giving of notice is required herein. shall specify the 9�v place, 6y Hour of the meeting, 'The purpose of any Board: need not be specified in the,notice. Section 13. Waiver of Notice and-ConSCUt tQ, Hold Meetings Notice of a meeting need not be given to any, director ji-Aw, either before or after the meeting sips a waiver of notice, a consent to hold the, meeting, of an approval of the J3; C) 0 A -N minutes thereof. All such waivers, consents, or approvals "It be filed with the corporate records. or made part of the minutes of the meeting. Notice of a meeting need not be Oven to any director ireptor who attends the meeting and who, before or at the beginning ofthc meeting, does not protest the lack of notice to him orhem The transactions of any meeting, however called or noticed. or whenever hold, are, valid as though, the nawting had been duly held after proper call and notice, provided a quorum, as hereinafter defined, is present Section 14� Quorum for Meetings A quorum shall consist of a: simple majority of the Diri ftcept as:otherwise provided in these Bylaws or in:t, corporation, or by law, no business shalt be consider which a quorum is not present and 4he only motion: such- inoodrig is a motion to adjourn, However, a mAJI 'I a meeting may adjourn from'flme to time until the tim of the Board. ir,leg of Incorporation of this the Board at any meeting at i the Chair shall entertain at rthe directors present at such I for the next regular meeting When a.tneeting is adjourned for lack, of a quorum. it shall not be necessary: to give any notice of the time and place of the adjourned meeting:or of the business to be transacted atsoohnieefing, other than byarmouncehisArticlo. entatthe mp�atwWohth��adj7oumaientis ft '. takon',-owtirt as provided in Necflon:7lE �1 The;;directors present at, a Diing. dire * 10 a WrOldra, boafter taken must be a] Ming 6lir'such greater mpariitiian or, ]Bylaws. at Nowls, majority Act E*ory, act or decision itmade-..I one Or held,at which quorum is present is 4� Jn66rpu*ioA or Bylaws of ihis�., 01 - . 1. � I I,:� - t public Bendfit Corporation law,.pajI of niiiiittees (Section 5212), jjV has 52380), require a greater pereenisge the BoarcL ,d. and hold meeting at which quormi h I is initially smess notwithstanding the loss of a qu6iat the -eetors &m 66:.'tnzedn& provided that,,, any action P at least a J f66 required quohim for such as may b0 required by Nw., or theAqietes of nation. wd Action )y majority of tfi6':dj-re . Otots present at arneeting duty i got of the Nard':vf Director-� unless the Articles of potation, o I r provisions of the California Nonprofit icalarly thowprpvisioni rotating to the ippointment >val of contracts , , ot.trignsaetions in whi6 a director titin 5233) anti indoinnification of dir&tors'.(Section or different voting rules for approval of a matter by applicable standard of COU4, meeting in "Oil Or bYprM TO the West extent perrnitt,l a specific instance, cxpftsc bylaws in defending r 1 9 any Pt C.OtPDMtiOR before final dis any.. undertaljq: by or, On indemnified by the corporati SECTION 21.,INSURAN11 The Board of Directors iqay of insurance on,,bebalf of agent, employee or other . Of arising out power to it ofth6 Calif SECTION I. NUMBER has bwl i : met and, if so, the members present at the all authorize indemnification. except as Otherwise defe-piiinW, by the board in a person serWrig indemnification under these VA by these byiaws.sbalt be advanced by the a proceeding, on receipt.by the corporation of jai person that the person is entitled to be AGENTS authorizing the or iiiettrred by the iether or not the c( liability wider the f Orpotation Law. ARI3CLE FOUR �OMCERS Lse and maintenance a director, officer, -r than for vl6lating ilia, Nonprofit -Public in suchcapacity or J6,11 would havellw ms of Section 5238 The officers of the corporation thall be aPresident,a 'Vice Prqsidcnt, A Secretary,, and a chief financial officer who:skiallbe dcs,iated the Ttcasur'The corporation may also. have, as determined by tbe,*B'6'04 of,I)i ia-torsl 4 Chairperson of the, Boardi one, or more Assistant. Secretaries, Assistant Treasurers, or other officers, The mine 4r Vice Presidents; numberoto the Secretary nor the Treasuret may serge as the Piesi eat L% f the DOW. SECTION 2. QUALWICATION,.E1 ECTION, AWTERM-OF OFFICE Any person may serve asoarporation. Officep,shall b. o. elected by the. Board of Directors, at any I iniq , , and oach.4cer s1ball, hold office until he or she resigns or is removed or is otherwisq;ified to serve, e, or,until.Als or; her successor "I be elected and qualified, whiche* occrirs First. SECTION 3, SUBORDINATE OFFICERS The Board of Directors may appoint such other officers or agents as it may deem desirable, and:suph officers shall serve such terms, have such authority, and perform such duties as may be 'bed time to time , by the Board of Directors. SECTION 4. REMOVAL AND RMIGNATION The Board of Directors may rttnove any officer, either Any officer may resign at tuty;tine by giving written to the President or Secretary of 'the corporation. Any the date of receipt of suoh Aotice or at any later. i otherwise specified thieroin„ the acceptance of such rt: male it effective. The above. pzovisions of this Si conflicting terms of a contract that has been appy Directors relating to the eniptvymant of any officer of SECTION S. vACANCIEra ith.or without cause, at any time. Lice to the Board of Directors or n resignatioll shall take effect at e specified therein, and, unless pation shall not be necessary to on shall be superseded by any or ratified by the Board of corporation. m iy,vacancy caused by the :4,040.4 0-69114014 removal; dispalification, or otherwise, of tiny ;officer shall be filled by "tYie Board of Directors. In the event of a vacancy in any office other than that of Bresident, such vacancy, -may be filled temporarily by appolictment by rile PKesldent 'until such time as the Board shall fill the vacancy. vacancies occuiriug in offices;trf officers appointed at the deseretion of the board may or may'not Ue filled at the tjisoretipn of the hoard• S1 CTION 4. DUTIES:OF PM' 'DENT :The President shall be the :chief executive officer, of the corporation and shall, subject to the control of the Board. of I)ieectots, supervise and wonirol the affairs of the corporation gild the activities of the o.ffir err. He or she shalt perfottit atl duties incident to his or her Office and such o[herduties'as trey be required by"law, by the Articles bf Incorporation of:this corporation, or. by these Bylaws, or which may be prescribed from tune to time hY the Hoard of Auer tors.; Unless,another person is specifically Appointed asirairpersan of the: Board of Direetors, .lie or she shall pres'tdeat art meetings of the Hoard of Directors. If applicable, the presttleiit stroll _preside at art meStings of thea.members. Except as ort erwlse axpressly piroytded "ly law, by the Articles of hxcorporatian, or by these 33ylativs, he or she shad; in #be name of the corlwratibn, execute sloth deeds, mortgages, t nrFic �c„tructc rhedks: or tither insttuments:�Ylitci►'may from time to tirija be authorized by. ha Board of Duc'etors. SECTION 7. DUTIES :OF VICE Pl2ITSIARN'r it, the absence of the President, or in the event of tis or "Vine President shall perfom ''i thed utics of die Presid till the powers of, and:bc aubject to all rite restrie#i 1?residenk shalt have'oflier powers and petfrirttt such ooh tail, by the Articles ofSncoip"oration, or by these Byla: Board of Directors::- her inability or refusal to act, the ent, andwketr'sq acting shall have ons an, tha President. The vice er dudes as may be prescribed by ws, or as may be prescribed by the Keep at the principal e i�ue of;the corporation or at, sodh other place as the board may detertaupe, a book of gl riutes 4411 meetings of the directors, and, if applicable, meetings of committees o£ citiec)prs and, of members, recox ,rig Therein the time and..piaee of holding, whether regular,or stye Tal, how eatled, flow txotice thereof was given,, the rimes af.tlxt%se present or repzesented at the meeting; and the proceedings thereof. See that all notices duly gt-yon in aecordartce with the:provisiow of these Bylaws or as required by law Be: ieustodian of the xecgr& 40 of the seal;.of the corporation and see that the scat is alAxed to all duly exzeuted.°documents, the execution of which on Behalf of the corporation under its seat;ls authorized by law ortheso Bylaws. Keep at the principal ofce of:the corporation a membership book containing the name and address of cacti agd a.*:members, and, fit The casc where any membership has been terminated, he or she shall. record such fact:ln :the, membership book together with the date on which such membership ceased. Exhibit at all masonable4imes;to any dtcectoebf the corporation, or to his or her agent or attorney, on request therefore, the Bylaws, tiro membership book, andthe minutes of the proceedings of the directors of the corporatton In general, perform all,duties incident to.tbe,bf#'ioe. of Secretary and. such other dutics as may be required by law,, by the Articles of irtcorporatlon of thls corporation, or by these Bylaws, or which may bs assigted to tion tsr her from time to tixae.by the Board of Directors. S.1uCTION 9. UUTFIES MTREASUl2LR Subject to the provisions, rrf these Bylaws ielating to the "Eiecution of Instruments, Detiosits and Funds,'' the'Creasurer shall: Have charge and.,eustody Of,: and be responsible for, all funds and securities of the corporation and deposit all such fiords int the;barno ofthe corporation in such banks, trust companies, or other depositories as shalt be selected by the Board of Directors. Receive, and give receipt for, manes due and payable to the corporation from any source whatsoevcr. Disburse, or cause to be disbursed, the funds of the corporation as may be directed by the Board of Directors, taldng proper vouchers for such disbursements, Ke I ep and maintain adequate and correct accounts of the coTOOOQWs properties and business transactions, including aecaunts of its:Nssets, liabilities, receipts, disbursements, gains and losses. 'Exhibit at all remnablejines the books of account road flamcial records to any director tiftbe corporation, or to hisor her agent of attorii.ey, on request theriforl, Render to the PresidentahA directors, whenever re 4, - ;- 11 quested, an account of any or all of his Or,6r transactions asTreasurer and of tiro :fjdaOeial.condition of the corporation. P or cause to 'bc. prepa qAhtify, - to be certified, the finantial I I repare prepared an4. 01 cause. statements to be included in any required tepoits. In,genexal, perform all duties.lincident to. the 4hec of Treasurerano such other duties as in: le requiredby,law, by. r the potation of the c6rOrati!On, or by these DAMS, or which may benssigncd to: him & hei:frow time to :time. . by the Board of SECTION 10. COWMATION �Officers Shall 400016d above reasonable and -rs. may not, ,ty, other than under the pro, officers of fl ACTS vv oration no f this Cor or Idly h6 *t40 it for reason of their — 111aced £or 21 unless such art shall toe.:rl ion wfldllre RKIR�OR ion, Arm, assi S,:Iave.' a mal contract or that director moron direct I noted in the advancement and, iot as respectively o,servilces to the compensation is in A cases, any tbk and given in 0,.&e Performance. ,.,or other entity itutoial interest; :tion with this pial. interest in officership, or 'Drare known Flt Contract or Y a majority of f the interested insiders and in i not obtain a Section 15: Conduct o(Meetings Meetings of the Board of Directais :shad be presided over by the President of the 'CO in his or her absne, the Vice President P£ thc'coriioration or, in the absence o£ tach of these; pctsans,'by a director 6 Qse . by a majority of the directors present at the meeting. Meetings shall be goOrnod by Robert's Rates of Qrda ftt)m time to..titne, insofar.as such rilies are not neonsist Articles of Incoipgra6ott of this coiparation, or with. Prov Seetlon I?.. Action By Unaaiauioas Written. Consent W An action required or permitted: be taken. by the provision of law.tttay betaken withbut,a meeting, if all Directors'shall individually or collectively consent ill purposes of this section-: only, 'all members of the ,,intemsted:director- as;de6ned iWigection 52B of It Corporation law. Suchtivritten•consegt or conseirts shall proceedings of the Board. Such: action: by written corse: effect as the unanimous vote of the. directors.Any eer any provision of law which relates.to.aetion so taken sW by nr,a>rlr„ous written consent of the. Board of Director. Bylaws oftho.corparation authorizes.lhe directors to so prima facie evidence of such autliwty;. Seetlon I8.'; pcandes Vacancies on die Board Of.Ditectors shall exist removal of ;any director, and (2) whenever the nun increased. The Board of Directors may. dealnx vacant the o declared of unsound mind by a ftnet order of cburt,.ot found by a final order or3udgment of any court to have 5230 and following of the California Nbnpro£tt ]Nblic Bt t rules may be revised these, Bylaws, with the f Directors under any „mbets of the Board of to. such action. For OWI not include any ruia Nonprofit Benefit with the minutes of the ave the same force and r document filed under tat the action was taken a meeting and that the such statement shall be the 'death, resignation or f authorized directors , is director who has beeu d of a felony, or Been any duty under Section ooration Law. If this corporation has any,members, then, if the corporation has less than fifty (50) members, directors be removed without cause by a majority of all memlters> or, if the corpocahan bas,fty (Sul) or more, members, tsy vote bf a majority of the vales represegted: at a ntembciship meefiuig at Whielt a quartrm is present: If this corporation has no irxetritaeas, directors may be removed without cause by a majority of the direatoxs then in yff pe Any director may resign elTective upon giving written notice to the Chairperson of the Board, the President, the. Secretary, or the Board of Directors, unless the notice specifies a later time for the ef%etiveriess of such resignation. No director may resign if the corporatlan would thenn be left With a duly elected director or directors in charge of its affairs, except upon notice to the Attorney General. Vacancies•on the board may filled, by approval of the board or, if the nuriiber of directors Eben iii dffrce is less 6iit a quonun, by (1) the unanimous written consent of the directors ihen itloffice, (2) the fimnatfve vote of a majority of the directors then in office atameeting held.puisuWE to notice or waivers of notice complying vrifh:this Article of these Bylatys, Or {3} a sole reiYtatnng director. I€this `corporation has merabars, however, vacancies created. by the removal of a director. may be, filed only by ilia appro�Val of the members: The merabars, if mry, of this corporation may elect a director at any time to fill any vacancy not filled by the direotors. A person_:eleeted ,to. fill a . ge"c,y as provided by this Section shall hold office until the nerd, annual election,of. tlie`•Board of Directors or until his or het death, resignation or teaioval from office. SECTION 19. -NOW LUJULd'['Y OF )A ECTOIRS The directors shalLnot be personally liable for the debts, liabilities, or other Obligations of 1 thecorporation.: 3ECTI{)N 2{l, IN]D NIPiLFLCATTp1V; i{X.:CORPORATION OF tl MCTORS, OFFICERS?: CMI'I MES 41Y0, 10T To the: fullest t xten@,permitted by laver, this.; corporation. shall iitdeizinify its direaors; officers employees, and other persons described in Corporations Code section 5238{a}; including persons: formerly occupyuig any such posltions, against all expenses; jt}dgments, fines, sett embfits 144 other amounts actpally:and reasonably incurred hy, thein in nonnecg,a with any "proceeding , as that term is used in that section ,and; meludittg an action by or in `the right o£ rite corpozation, by reason of the fact that the person .is ar was;s person deserrbed tri that section "Fjxpeljses," as used in this..byiaw,. shall have tfte satnameaning as m tbgtseatian:of rho Corporations Code: Ori written request to rite board by any, person seeking .indemnification under Corporations Code:=section 5239(b_):6141sectton 5238(c), the Board shall promptly decide whether the applicable standard o£ conduct set forth in ;:Corporations Code section 5238(ti) or seenep 5238{e} has Been` -'z-met and, rf sa, ;the ' beard shall authorize indemnificatran If: the board: aannat authorize nderrtnificaton,' because the number. of directors who are parties:to Aro proceeding vrith respect `to which indezruiificatlon IS sought.PIg,_1nts (lie fartnatipn of a quprum.;o£ directors ivho are lief parties to that proceeding, the board shall p omptly calla ;erecting of members.; At That meeting, the # members shall defermine under Corporations Code section 5238(e} whether the the icorporato,rc I cords, and report the. same to the board from time to time as the board may rouire. SECTION 2. OTHER COMMITTEES The, or_poptiort shall have such Othercorurnittees as may from time to time bedesignated by resolution cf.fhe Board of Ditto;� Wis. Such other committees may consist of persons vMv are notnisoonly , hierribers of thc�booid, These: additlood c o*mmttte*cs shall got in an advisory capacity on I ly to the board and shall be clearly titled. as "advisory' committees. SECTION 1 MEETINGS, AND ACTION OF COMMITMn Meetings'. and,'.action of commiticesAmll be governed, by, noticed, held and taken in aceordance,with. the provisions of these Bylaws concer amg . meetings of the Board of Directors, W * ith such changes in the context of such ByWk provisions as go necessary to sub the ;committee and its members for the�Il6o'-k Nrectors and its members, excqtAut the time for regular racet in gsof ,cominit I t -eep.may:b by resolution of the Board :briectoisorbythe..committm.Ttetime meetings of eomnuitees may,also be; fiked,by the Board of Directors. The Board of Directors may also adopt rules and regizlatioiia pertaining to the.conduct of meetings of oppunittees: to the extent that such nrlcs and regulations aro not,iPconsistentwith the Proitsions of these Bylaws. ARM" 6" , EXECUTION -OF IN 'ST40MENTS; DFTO§ITS ANI) FUNDS SECTXt71V Y.I4 XE CUTION OP INSTRUMENTS LiQa.rd,01,01,rectors, except as otherwise provided jnA*Bylaws; may by resolution Tz9any '0ff1ccrorAgofit:qt thee9wor , ation to enterinto any contract or execute and er airy instiumertt to the;natno of and on behalf of fhe ep[poration, .and such authority 1plpyee sliali have luny power tlr authority to!btnd tho,cgrpeiratio by any eoritraot;tir Mo 0014:2, CHECKS AND-NOT95 SECTION 3. DEPOSI S All fends of. the corporntfon shall be deposited from time totime to the Credit of the 01"ratiou iii: ,such banks, ftWt Companies, :Or other depositories as the Board of Directors may seleot: SECTION 4.:G1FTS The 13oartl 'of Directors -,may accept 'on: behalf of t{ie corporation any 'contribution, gift, beijuest, or devise for the:clraiit ible fir public putXaoses of this corporation. ARTICLE'7,:,. COO ORATEfi'CORD S 1P.ORTS.AND SEAL: SEC ION.I, MAWEOAXCE.OF CORPORATE RECORDS The corporation shall keep at its principal officc in the State of California: a) Minutes of all meetings ofdirectors, committees of the board and, if this corporation has members, of all iueetings of members,,imdicating the time and place of holding such meetings whether regular ar special> Stow called, the notice :given and the :names of those present and the:proceedings thereof b) Adequate and correct books and . records of account, including.Accounts accounts of its properties and business masactions and accounts of its assets, liabilities, receipts, disbursements, pains and losses; c) A record of its members; if any, indicating_llmr names and addresses and, if applicable, the class of m0mbership held hY each member and the termination date of any mcmbership, d} A copy of the corpnratron's Articles of lricorporaiiun and Bylaws as -amended to date, which shall be opeih#o inspection by the imembers, if any, of the cprporation at all SECTION 2. iCO"ORATE SEAL The Board of Directors may adopt, use, and at will alter, a corporate seal. Such seal shall be kept at the principal.. office tif,the corporntton. Fa}luro::tb of x the seal to corporate instraxnents; however; shall not affect the validio*any such instrument 0 disbursements of the corporation for both general and restricted the fiscalyear, ,eiluirtN Section 7 of, A> hcle :affil@ corporation. . if flxis corporation has Jrn* fiscal -year, this corporamembers, in such, mat acebinpanyingreportfroi ,mas specified by the abov SECTIONIANNUAL MBERB accompanied by thereon of independent such report, (certlaOatQ officer of the its were preperecl wtlliollt audit from the books and records then, i Ws cor , p , oration receives TWENTY -FM 5,000), or more;: nvgrOm revenues Or receipts during the shah automatically ;mid the above amual revolt to all at such unit', and Jvith such contents,' including an ependentaccountants: or certification of a corporate officer, isions of this Section relating to the annual report. TRANSACTIONS TO ; This, corporation sbalfm"l 6r deliver to all Airectors and any andiall , !i members a statement, within.ont hundred and twenty (120) days after the close of its fiscal Year that bMly describes the amount and cireumstarices ofany indemnification Or transaction of the following 'Anu sidj� y transaction in which the corporation, 60ts. parent or its i S. b _ay, was a party, and laterial financial interest: folipmang had a d pi.a M�Viiicheither jTmi4ir Any.director or afficec of the corporation, r its pa ent or subs diary (a mere common directorship halltrot. considered a mattriaf fCnarrcalI Any holder of rmore %an ton patent (100A) of -the voting P6*..Qf the corporation, its patient or its subsidiary. The above statement need only be provided with respect to, a hgtisaction during the previous fiscal year. involving more than. FjF;rY MUSAND PQ4 ARS ($50,000) or long which was ane :o .f ::.a number of transactions with the same persons involving, in the aggregate, marc. than MY THOUSAND)JOLLARS ($50,000)::.- Similarly, the 9 , t, ped �;p— b provided with respect to indemnifications or re a advances in OUSW. DOLLARS ($10,000) paid during the previous fiscald'tor or, offi.1o-r, except that no such statementcut need be made if such tidemnilxcaik.wasapprOved1y the members .pursuant to Section n*c) n it �4 inCorporation Law. Any statement required by fllis,Settion 8W briefly d=iiW the names of the interested mt persons invalva in such transactions, stating each perso*s rolatiowhip to the corporation, the nature of such ' 4 * Person A interest in the transaction. and, where practical, the amount of such intere I 1� 4 provided thdio- lk-case of a transaction with a . interest i partnership of which such person is, apartner, theof artu 4� (Oc p ers p need be stated. If thisco,po's rat' has mm e b .orsand provides all -members writh an annual report accordingO f to : Section of this Article, then such annual report shall include the irit k6d by this SECTION 1. The fiscal year Of the corporation shall begin Ltrly I and end on J"no 30 in each year. SECTION 1. ) Subject to any I nonprofit corgi repeated and no a) subject of b) By apptoval oftho members, If . .... *o0f this covorationI Ylaws under stars unless, members, if ftom a fixed ed except as SECTION 1. AMENDMENT { MEMBIii$ Before any members have bee Articles of Incorporation may be SECTION 2. AMENDMENT OF AIk MEMBW. After members, if any, have bee, of Incorporation may be adopte approval of the members ofthis SECTION 3 CERTAIN AME] Notwithstanding the above sect; Articles of Incorporation to alter Incorporation ofthe names and i name and address of its initial 'i delete such statcment after the Profit Corporation" pursuant to Law. PROHIBITION AGAINST AND ASSETS BEFORE ADWSSION OF Aficle, this corporation shall not amend its tint _which appears iri the original Articles of f the first directors. of this corporation, not the pt to correct an et.w in such statement or to has Mcd a "Statoinent by a Domestic Non - ft 6 of the Catifnrlaia Nonprofit Corporation CLE it C( RPORATE.kILOFITS AND ASSETS No membec,,director, ot7icer, employee,; or or any private: individual, shall receive at a profit from the operations of the coi otati6r not. prevent - paymcnt to any ii oWr perst r performed for: the eorporation m :gffectin! provided that such compensation is. dit wi resolution of the Board of DireetoXs and n share in the: distribution of, and:shali. ni dissolution of the corporation All iircm6ers, have expressly. consented and agimd iI{at on of the corporation, whether voluntaiit} -or after all debts have ben satisfied,shall b ineorporation of'.'this corporation and;nC } oth aer person eonneected with this corporation, ,time any of the net earnings or pwumary srovided, however, that this. provision shall of reasonable eopipensation for services any of its public oT charitable purposes, permitted by =these Bylaws and is fixed by mob person or persons shall be entitled. to receive, any. of ,the corporate assets on any, of the. corparation.shall be deemed to A dissolution or vvindingup of the Whirs voluntarily; :the assets of the corporation, distributed .as icgWcd by the Articles of GiAvernrrtental Member- The qualifications fer being a "Governmental" member shall be: (a) The member shall, bea local, state or federal govermuental body,. division, department, sect 6h, unit, agency or instrumentality. Subject to, any'ptnvislons of law applicable to the public benefit;iionprofit corporations, the corporation tnay.; establish additional criteria for each class of :membership. Before any members have been admitted to the.corporation, additional u►einbership criteria may be adopted by, app 01 of the Board of Directors. Aker members, if any, have been admitted to INA,corporation, addWonai membership cdtena may be adopted by the approval of the Bvaad of Directors and .by the approval of the members of this corpora 4 SECTION 3 ADMISSION OF MEMBERS ,A,pplicants shall the admitted to membership upon making mitten application, a detexminattori by the Board of Directors that the- applioant.rneets all of the tlttalifications for rnembersb%p. SECTION,9 PEES, RUES AND ASSESSMENTS a): No fee shall be chard for making application for membership in the cotliCrYAticn. b) The corporation shall not assess annual dues. G) lvienibershSps shall be aonassessable. SEC I°iCQN S. PiI7MliBR OF MEMBERS There is no limit on the number of members the c rxporahort inay admit. SECTION 6. N MAERMIY SOUK The corporation. shall keep a mermberAdp book contatnrug the name and address of each member, . Ter mivation of the .-ihembership of any member shall be recorded in the book, together with the date of termination of such membership. Such bock shall be kept at the corpomticiA principal office and• shall be available for: hWPcatian by any director or member of ttie corporation dtrting regular business hours_ The record of namesand addresses of the members of Ws co..rporation shall constitute the membership list of this corpor'at'ion and shall not be used, in whole or part, by any person for any purposemot reasonably z ,ed. to a member's interest as a member_ SEC'T'ION 7. I'iONLL&RI.LI T'Y OF MEMRERS.. A member of this corporation is nota as such, patsottally liable for the debts, liabilities, or obligations.oftlte corporation. SECTION 8. NONTRANSFERABIL. OFMEMBE.R811IPs No member may 6aztsfcr.a membership or any, right, arising therefrom, All rights of membership, cease upon the memhei SECTIOIK 9.TERMINATION OF'MEMl4kiks TY a) Graundsfor Tonninafron The;merubershpofa.membershall terminate upon tile occurrence of any of the fallowing events: (1) Upon his or her notice of such termination delivered to the President of Secretary of the corporation personally or by.maii;:such membership to terminate upon the date of delivery of the noticeor.dato of deposit 1ti,tlie mail. (2) upon, a determination by the two thirds _of the Mrectors of that the member has engaged in conduct materially and seriously prejudicial to the interests or purposes of the corporation. (3) If this corporation h failure to renew his date, such terminatio, of delinquency is giv the: cozpoiation A m delinquent dues u{tfli (b) 1?iac�tfi for ce0elled shall be, eq.of dues by member's, upon a y rg dues on or before their due 1). days after a written rr4tification `Such member by the Secretary of niination by paying thc. amount of following the member's receipt of ot:that a member shntrld bo >llowhig procedure shall be,. W mail to the last address of the efitiag forth the,apuls 0n and the lep;§t..fi#tecn (10,41yst)Aefore the opportanity.to be heard, either less<than five (S) days before the tr ngmill be held ,by:ihe Board of yttirrg rules set forth in these or her proposw exjmlsi6n shall state, the:4ate, tjmo, and place of the hearing on WS or her proposed: expulsion, (3) Following the hearing, the Board of , bireptors shall decide whether or not the member shouldexpel]in: Act be suspend edjof sanctioned in some other way. The decision oftht Boardshall be final (4) If this corporption, has provided for the,paymeot of.dueshy members, any person expelled from'4ho,c6rparation shall receive a 1 refund pigduesalready paid. The refund shall: bepqkmed to return Only the_UWOrtied balance remaining for the :Tcriodofthe d*paymenL �SEC ON 10. RJGlrrS ON TERMINATION OFE&WERS]UP All -rights. of a member in rho earporation sh#!Jjcease Oft, terminwion of membership as ....SECWON 11. ALMM"AWNTS. RESU131V7 TERMNATION OF Notwithstanding any .p ,ravision of these ByioWs, if =,v amendment of the Articles Of Incorporation or of the Bylaws of this wipooqpnyould result in the termination of all memberships nambersbips or any 6 1 less of membership, theaIsikliamendment or amendments shall he ,effmted only in amOrdaum with the prDyisiom of Section 5342 of the California Nonprofit -Publi c. Denef ilt, Corporation Law. ARTY MEETINGS 0 ,SECTION I PLAIMOF WETWGS Meetings ofinemberssliall be held At the Prip other place or places 4lihla 6r without the Sit time to jof Dff time byru�licn. the Board of ::.SFCTI0N 2. ANNVA,AND REGULAR , The members shall meet annually on the see ,At 7:30 AN: begixtnigg in 1003, f6r the pt in other business as may, come before the Mee directors shall not be,Perml ittW. The candidg each class of voting members np to the numb voting members shall be elected.. &ch. votili being by ballot ofily, '(heannual meeting 41ae of the Corporation or at such California as may, bj,;fesignated from of Mein wsday of September of each year, electing directors and transacting lulative voting for the election of [ug the highest number of votes in -to.rs to be electW by each class of r shall, cast one vote, with voting MiCrs for the purpose of electing directors shall be,deerned, a: regular meeting and any, reference in these Bylaws to regular meetings of members refers..to. this annual meeting. If the day fixed for the annual meeting falls, on a legal holiday, such meeting shall be held at the same hour and place o.n_the next business day. SECTION 3. sPECUL EETINGS OR MEM 6iRs (a)Persons WknMay Call SpecialMeetin cg Ofhlember*, Special meetings of the Members shallbe called by;the Board ofDirecters orthePresiderito£the corporation. In addition, special,meehngs of the membeis for any, lawful purpose may be called by five Percent (5%) or mora of the members. SECTION 4. NOTICE: Or_VTE TINGS (a) Time of Notice`;%ft Lever members ate required or permitted to talo action at a meeting, a written nptteC of the meeting shall be g"teen by the Secretary of the corporation not less than ten._(lt)) nor "mare than ninety (Sp) days before the date of (be meeting to each member who, oiithe record date for: the. notice of the meeting; is entitled to, vote thereat, provided, however, that. if notice is given by mail, and the notice is not mailed by first-class, registered, or. certified mail, that notice shall be given twen.ty (20) days before the meeting. (b) Manner. of Crivina Notice, Notice of a members' meeting or any repart shall be given either petsonally.or,;by mal;or other means of written communication, addressed to the member at the address .of such member apPeflaiag:A» the books of the,rorporation or given by the member to the corporation for the pwpose of notice; or i f no.addtess appears or is given, at the place where the Prinetpal office of the corporation is located or by Publication of notice oithe meeting at least Once in a newspaper of general circulation in the county in wbio -A0 principal oflire is located. Notice shall be deemed to have been given at the time, when deliyereil personally or deposited infhe mail. or:$enE by Telegram or other means of svrttten co?pmanica ion (c) Contents of Notice Notice of a membership meeting shall statc'tlte place, date, and time oFthe meeG'tjg and (l).;in the rhe ofa specral meeting, the general tiswture of the business to be transacted, and no other business may W transacted;,op(2) in the case of a regWar rneetmg, Those matters which, the "Board at the time noticesis;:given, intends to present for action by ileo mctztbers. Subject to Any provision to the c4ritiaty contained in these Bylaws, ho, ivaver, any proper matter may be presented.. at a .caul 3r meeting for such action_ The noIjce 0£ Any m eeting of members at which directors are;to be elected shall include the Aames. o1`all those; who are nominees at;the time; notice is given to members. (d) Notice of 1yleetincs Called by Members. Ila special meeting is cailSd by members as anthoized by these $ylAwstke request for dre: uieetitig shall be suhtgitted in writing, specifying the genera! nature of the ,business proposed to be transacted and shall be delivered personally or sent Try iegistered mall or"by.tetegraph to the Chairperson of the Board;, President, Vice President or Secret* of the corporafion. The officer receiving the request skull promptly cause notice t4 be given to the members .entitled to vote that a meeting will be held, stating the date of the mecang. The date for such meeting shall be fixed by the Board and shall not be It ss than thirty-five (35) not more than ninety (90) days tftr .the. receipt .4£ the.reqU for the tneeti»g by the oYi'QM If the notice is not wiwenty er (20) days aftthe receipt of the be giventhin tquest persons calling the meeting may give the noticetham§elves. (e) Waiver o_ f I'?ouce ofxvleen»es Cha transactions of any meeting of membzrs, however called'and noticed, and wherever held shall he as xalid as though taken at a meeting duly held,s%tex regular calland:;x once if a quorum sa presbuteither in.person or by proxy, and tY, githar before or alter.thg meeting,;each of ilio perScrns entitled io vote, not present in person or by p, signs a written warvgr:oFnohca or a consent to the holding of the roxy rnee.6g:or.an approvAEof the tivziutes thereof All sueh waivers, consents and approvals shall be. filed. with the 0oApnrate,records or mnde a pact of the minutes of:tlre meeting. 1 tj K of notices or consents need not specify either the business to be tira»sacted or the purpose, of any, regular or .special meeting of xneinbers, except that if aetIon is taken or proposed to be taken fnr:approval of any of the matters specified in subparagraph (f) of this;seofion, the waiver oE...... or eortsent Shall state the general nature 4f the proposal. ( Special Nofiee Butes for Apororrrrp Certain Proposals. If action is proposed to be taken or is taken withlcspert to tha following proposals, such action shall be invalid unless unanimously approved by those entitled t,o vote or unless the,.general nature of the proposal is stated trithe:notiee of meeting ox in any written waiver of nailer; h_ An etc 8ECTION S. A quorum shall canis The members present present may contin'u'e:. due to a withdmwal,ol loss..of a quorutn..mu constitute a quorum. windup as t of a,ruajority of the v - Ai a duly called arid: be approved by. Pers; afl solve the corporation.: members of the corporation. meeting at which. a..quorum is initially ling the loss of a: quorum at the meeting provided that any adtion taken after the a majority of the members required to In the absenw.of a: quorum, any-meeting of the members may be adjourned from time to time by the vote. of a MAJorhy of the vo W represented in person,bi by proxy at the meeting, but:no other business shall be transacted at such When:a meeting adjourned for lack of a Suf . ficient number of members at the meeting or otherwise, it,shall-not be necessary to IWO aIrY notice of.the time. and place of the adjourned meetigg,ar ofthe ,buiiii sto be transacted. at such meeting other than by announcement at the meettrignt Whi6h , the taken o time and place of rmnent is ft the Odjpitincd gieeting; flowev6r, if, after [t i x fo tef,tW64journinen date s fixed r notice tin 4A 1 2 77: Or voting, 4, notice o c adjourned I uptint meeting shall be given46 each member who, on the'recoro date ioMiptice otthe meeting, --titled ti A ting g� is on to vote at Fmee ng, race shall not be 414 for M017* (4,$) days: Notwithstaud�ng .:any: other provision of tIus Article, : Ff ilius cotporatiott authorizes me"ntinp power, ular 'the meeting, s general SECII ............. Every,t aq,,qr_decision -. done or made by a in�ority of voting members presort i ''be$in person or by proxy at a duty.lieldti eet, ing at which 44 Orum is PTCsOAHS the id of the members, unless the law, f , the In greater number. eqto� o- this coM-9milon, or these Bylaws require a All proxies shall proxy given to: nominees at. the, members. 14AM "withhold". election of dirk director, io.the gerioninature of the matter to be voted on and, in the Case of a P for . the election of directors, shall list these persons Who were ru; :tho notice of the vote jk election ot.d66toTs was given to the eIecfion, Of directors, any, proxy which is marked by a member wise marked in*amangier Indicating that tile. authority to vote for the iris withheld: shall not be voted either, for.. against the election of a If membership. voting by proxy is allowed, proxies SW member to,ipecif etwewappyoval , and disapinov y u choice b -1 1—, . P' d-stri U related matters intended, at the, lime' roxy is 1 meeting for which :the proxy is. solicited:. The proxy shA person solicited spoeifies a ohmee with respect to any such SEMON 941, Meetings of Ir. chairQei Vim Presid The scei provided act as So '41DUCT OF MEE1'TNG5 nbers shall be presi in, by the President of the corporition" sm by a majority of of the corporation s G his or her absence, if the Meeting. 1 1 4over by the Cb* of the corporation 01 Or, in the absence .dje.votijig members WR Act as Secootal-3 the presiding officer d an opportunity for the r each matter or group Of to be acted upon at the, aprovide that when the tot, the vote shall be cast rw . n of the Board, or, if there tri his or her absence, by the 'Fidl of these persons, by a iiesent in "Mon or by proxy - meetings Of members, W1 appoint another person to PD2 meetings.shallbe governed by Roberts Rules of Order, as.such rules may be revised from -isofar as such - rues 1 not nconsistea, W. 4, or in conflict with time to tune, lare it Ufl' these Bylaws, With tha: Articles ofMW aofthiscoToo tia, of with any provision of law. SECTION 40. AMON BY VM --., 'EN ,BALLOT.V"_ QUTAMEETING Any action, that pRay be taken aj, regular of special meeting of members may be taken without a meeting if the corporation distr.lutes a written b.illot to each member entitled to vote on,16 matter. 'Che set forth the pro.ji6sed action, provide an d that whore The oppoi�mjty�,.'* Wifopro*al of each FirPPO specify 4pproval. 44141s-1. W, prov! e t t person solicited specifies a choim-witth respect to any such prriposal the vow shall be east in accordance therewith, and proAde a reasonable *e)yiffimwhi6h to return the ballot to the . corpoiatiori. Ballots shall be mail6d Or delivered in the manor required for giving Article. fied i Sc� notice ofmDefings speci. n of this Aff All written ballots shall also indicate the number of respo s needed to meet the quorum requirement and, except for ballots I *01016rig votes for the election of directors, Shan state the percentage of approvals necessary .t.q., paw the measure submitted, The ballots must specify the time by which they must be received by the corporation in order to be counted. Approval of action by written ballot shall be valid :only when the number of votes cast by ballot within„the time period, specified equals or eicceeds the :quorum required to be present at a ineetmg authorizing the action; arid. the number of approvals equals or exceeds the rtuinber of votes that would; be required to approve the action. at a meeting at which the total :number ofrootes cast was the same as the number of vote$ cast by ballot. Directors May eleated by written ballot. Such ballots for the election of directors shall list the persons nominated at the time the ballots are mailed or delivered. If any such ballots are marked "withhold” .or othenvise rnatked I in a manner indicating that the authority to vote for the election ofrditebtors is withheld; they shall not be counted as votes either for or against the election of a director. A written ballot may not be revolted after its receipt by the ,corporation or its deposit in the mail, whichever occurs first, SECTION 1t. RFASONAB LE NOMINATION. AND.ELECTION PROC1EDURFS This corporation shall make availabl_e.tomembers reasonable nomination and election procedures oth, respect to the clection of directors by merribers: Suchprocedures shall be reasonable given the natures size and operations of the corporation, and shall include- (a) A reasonable means of nominatingpersons for election as directors. (h) A reasonable opportunity fora notdince to cazpmun cats to the members the nominees qualifications end the reasons for the aominee's;cafid'6 : (C).-4 zeasoqa Opportunity forall Hoiriinecs to solrcrt yofes.: 2, obtain fi^om the Sceretary; upon written demand and paymph of a reasonable charge, a list of the Warnes, addresses and voting rights of those rnembers.eptitled to vote for the election of di rectors, as of the, most recent record date fort whreh it has been compiled or as of any date ,$ nominee_subsequent tothe date ofriermand. The'demand:shall state ihe,purpose for which the listis requested and the membership list shall be tnadecayailable on or before the later often (10) business. days after the demand is received. or; alter the date .specified, tharein as the date as a wbich the list is to be compiled If the corporation distributes any written election material snliaiting vales for any nominee for 'director. at the oprporalion's expense, .it: shall. make available, at .the torpnrattnn's; eXpeatse, to..eaeh: odxez .riuminee, in or wl(h the san7o material, the same amount of space that is provided ariy oilier nominee, with prominence, to be used by thc;nomuBcb for a piuYw§e ►easonably [elated to the electron. , Generally, aoy, person who is quaiii ed; to be elected to the Board of Directors shall be nominated ai the annual meeting of members held for the purpose of electing directors by any inetnber.-preseat at the meeting,. in person or by proxy however, if the corporation has five hun(500) or miore. members, any of the additional. nomination procedures specified ut, subsections {a) and+(b) of Section 5221 af:fha C"omia Nonprofit Public Benefit C Law inay be, used #o nominate peisom. fcri::clectian to the Board of I?irectors.: If ilris.carporation has f ve. thousand (5,000) or more membem then the nomination and election procedures. speaified.;in Section 5522 of the California Nonprofit Corporation Lavi:sball be'fpllowed by this corporation in nominating and .electing persons to the Board UVrectors, SEC[ ON 12. A,C:TION I1X'YIIV;AMMOUS W1U TTXN ONSENT WITHOUT MEETING Except as otherwise provide& to theso. Bylaws, any aetion.required or permitted to be taken by the members may,,, be taken withouk a meeting, 1... 1, members shall individually or1collective.ly consent sri writing to the action. The writtew.consent or consents shall be filed:;y W rile minutes of the proceedings of the members. The action by written consent shall ha+ tinewrite f, ore effect'as.the unanimous vote of tliemembers. . SECTION 03 :JRECOIW DATE FOR MEETINGS There date for purposes of detinmining the membets.entitled to notice, voting rights, writtep. Eitrilot rights, or any, oll it right with respect to,4 meeting of members or any other lawful.membeiship actitin,:shali bg,fixed pursuant to SoWen 5.611 of the California Nonprofit public Benefit Corporation Law. WRI7CM CONSENT UTA DMECTORS ADOPTING $YLAWS We, the upkrsjgned, aro all oftU persons;named as the ioifW directors in the Arteries of IriCOrpOFation _ of Rio HoW6 C,Gij llUlld}' t)eVB�DIl4=t CDrplifo or'dllDit, a Carnia twnpme'it corporation, and„ lit t4 the autbonty,granted to the directors by these Bylaws to take. action by onanmxaus Vritten consent without a meeting, consent to, and bereby.,do, adopt. ilii 'U nsisft of'28 pages, as the Bylaws of itus cDiporatiDn. Dated; 6119/02 ao# suol}oasueq ssaupnq }anpuoo o} aoeas a%p "pi -oul saaaeWpW AlJaaoad euoweb pue uol}e�adioa sly# u20rAjag ;uaweaatp "?seal lalaua6" ey} 4664xa o} Oolooa}p pug. pozuoy#ine sl inga�ay pi s aq ual}e�ndaoa s!y} }n #uapl$91d eta #ey}'e gN�OA nlOS3?1 P- L W 'VO a}uoWl :`GOZa}in$'puAojnog LalleA 40fr44 }e pp}eoo� acj sjeys uogeaodmo sly; ao) api}lo le PUP ay} XU :idjAjos. 1. s"f 1papya�as lllrip pue ap ua (uoa}oul uod(Y 33WS 301MO'1bdIONtild S3lll:l3dOklc bNOWbt1 t-i.t.IM 1N3W33i��Jb 3S�'I�.t.fl0�}C3,: I3J NO11bi1Ud2100 J N31NdQ J3n3Q 11I4nWW00 OONOH 0121 3H1 Q s" plo32i1a dQ (i21bO8 E1 L dO NOIIMOS321: £00 Zo.*ON U040MVIN �l . NOI M. OdS, 001 N3WdO #3113Q �t LiN(1WWO� t�.CINOFI Ott# 3016P6 0 12057;[A 4402 Ula 4406 W RESQLVED FLY and directed to. tem- of oris pro of this corpoiidi -OF. THE BOARD OF VIREU RUK0 Vr #.nm N,- %AUN JT..Y OEMELOPMENT CORPORA1100 TO ER..,FROM THE CITY:.DV-K M .F RENTAL PROPERTIES AND NEGOTIATE luly, s.mnded, it was oastion acoe pip in4cqnceptthe tranderof the rental PrOPerUBS lonte IoMted:at the fbilmng addreso., r. eproperteal- '.Mont%0A,.917U El Monte, CA 91732 V6nue, EIMOM0. CA, 01732 4,6nue, El Monte, CA- 91739 qwnte M 91132 W -Ell Monte, 911132 Montle, CA. 011,92 F! Monte, CA, 0732 h : at the Executive . Committee of this corporation is Whofted actions deemed necessary and appropriate to negotiate the nefer and make a recarnrnendatlon tothe .full ..board otDirectors #approvaL 1, James W. MUsaenden' Secretary of the Rio Hondo Community D�hve kvAent Corporation, .do hereby testify thit th , a f9PV'"9l ReWutiDn Wa'a 4W and regularly Passed and adopted by the yen's Board of Djjcp*.Ot its'rpeel" held on tW 14. %.da.y of August 2002. OW. Mussenden, Secretary RIO "ONRO COMMDEVELOPMENT CORPORATION RESOLUTION NO, 02-00T RESOLUTION OF THE BOARD, OF DIRECTORS OF THE RIO RONDO COMMUNITY I� DVVFL0,PMEN-T-;COIRPOPATION APPROVING CHARITABLE BENEFICIARY AND AFFORI)Aiili� STANDARDS WHEREAS, dw Rio Ubhdo Cd � M*Wty Development Corporation kas organized for the Purpose a£ itnprbviog 0" '7 "'n' the `housing inventory that is decent and affordable to Iow and moderate peto proinate the social welFaie of the community by reAevingrsons deterioration and pro WHEREAS,, the Board of Directors desires to adopt the fo ..Iloft charitable iqia .itable 4mef -ry and houiing a6 oi staward% m aocqr'dance with 'Safe 114 .Guidelines" es-tablM by the U.S Intomal Revenue savkc at 1-0" Procedure 96-32 for each housing dev6lopment projwt. z 17, 2002 Rio xnndo them in tho RHGDC rm I transcript of page(s) has the record on file:in this office, of be a cop,,'and that it is full, true IN WITNESS WHEREOF, I execute this cer:`t #Icate;and affix the great Seal of ihe:State of California this:day of JoN 17 20D2 C C)RIO COMMUNITY DEVROPMENT CCiR€ MATION Mission Statement our mission at the Rio Hondo Community Development Corporation is to create, improve and preserve quality affordable housing and economic development opportunities for low and moderate income households in the Greater San Gabriel Valley Goals Increase the supply of quality affordable housing Increase economic development opportunities, including development of mixed-use projects Improve organizational effectiveness and efficiency Strengthen and diversify funding and in-kind resources -> ,Ri"(X2 a14D;t"e"OT,i`� � 1��1iP�i�� AL1 t a' 1df� w i E �;i5,2�?�, CA 33rS� PNT>3ZM RWgXN(s SMILE P. o. Box 2500 0INC:tiN M 02 45jo1 Pate: JM 0 8 M RIO Rom CO)OHU M DEVZWPNBNR CMORATION 11401 VAL"Y SM ng 201 M Kom, CA 917,11-3242 ))ear Applicants UEPARTHM7 OF MM TROMMY Employes Identification Number, bi-01740190 Mv- 110s3310040002 Contact peraont MRY L SMINS Io# 31463 contact T4,10hone Numbar: (077) 029^550D Aoeousting Period 5nding: .luno 30 Jroundotion Staters Claaaification: sop (a') (#.) Advance Ruling Period Begins: Jane 17, 90.02 Advance Ruling Period &Wet June 30, 2007 Addendum Applies: No Sasa(i on, information you supplied, and A sumiAg. YQ" operation0 will be an in stated your application for recognition of examptlou, wa have Jo%o=ined you Mrs exempt from federal income tax under section Sol (a) Of the Internal Revenue Code as en organimation described in section 501(0J(3). Becaase you are a newly ceaeted organisation, w8 axe not now 1241n9 a Final determination of your fOUAdation status under sectiou 509(a) of the Code. Howavex, we have determined that you can reesanably expect to be d publicly supported organisation described in aectiens 50.9(a)S1) and 110(b)(1)(Al (vil. Apcordingly, during an ldvimve ruling period you. will be treated as a publicly supported orgahimatidA, and nob 40a private foundation. 'Phis advance ruling period begina and ands on the dates ebown above. Within 90 days efter: the end of send us the information needed to de mente of the applicable support teat establish that you have been a,publi fy you as a section SO (a) M or 509 to meet_ the requirements of 'the appl the public suppart requirements Buri classify -'you as a p#r rete foundetion you as your b loA, we purposes your icable support I ng the advance : for future pear treatyou as a sect -ib 507(d) I period, you must have met the require- rulkri.g .perlod. If you xatioft, we will clasoi- ae. lo}tg as, you continue if you do not meet ,,j period, wet will Also, if we claoaify ,are fou.4antion from prantorg and co7triblit'17 9 may rely am our determination that.you are not a private eol*hdatioA pfixtll 90 days after the end of yppr advaiufe ruling period, tf you send us the ragqyvared irifortsation wi6bin t 90 dare, grantors anis contributors may coiiq A4k Co rely on the advance detarni.sation isle" we make Latter 10.45 Wololl) .2. RIO Ho" CU91iMTY Dov LOPYSNT a final determination of your foundation status, if we publish a notice in the iuteraa orVatnut Dultetiong letin ating that ars ande will JW longer treat you as a publicly supported contributors may ndt rely on this determination attar the dots we publish the notice, Iii addition, if you lase Your status as A publicly sttppertod axgani- oration, and a grantor or contzibutor was responsible for, Or was aware af, the act or failure to Oat, that resulted in your Leas of such status, that person may not rely on this determination tram the date of the act Or failure to act, Also, it a grantor oz contributor leaxnbd that we bad .given notice that YOU would be zoMoVad ITOM that person may not rrelygonithis tdaterminAon an ofuthheerdateabeorzsheau, Bien aognired such knowledge, it you change your sources of support, your purposes, cha=Orsx, or method of operation, lrleaib let us know ao we can consider the affect of the change on your axttvt atatus and foundation- status. i€ You amend your organizational document or bylawa,. please send us a copy of the amended dooument or bylaws. Also, let us know all changes in your nave Or addreag. As of ,ianuary 1, 1994, you are liable for modal security taxes under de the Feral insurenoo Contributions Act on 400unts of $100 or more YOU PAY to each of your amployeea during a calendar Year, You are n,at liablb for the tact isposed Under the Federal Unemployment Tax Act (F=), , oryanizstions that are not private foundations are not subject to the pri- vate foundation "ciao taxes under chapter 42 of the internal Revenue Code. However, you are not, automatically exempt from other faderal exoise taxes. if you have any quoations about exeiss, eaployment, or other feddrai haxea, please let us know. Donors may deduct contributions to you as provided in sectiau 170 of the internal Revenue Code. gequeats, lagaoioa, dayises, trrmafgMs, or gifts to you or for your use are deductible for Federal estate and gift tax purposea if they meet the gpplieable pmvisione of aactions 2055, 2105, and 2522 of the Code• Donaze nay deduct contributions to you +only to the extent that their contributiona are gifts, with no. consideration reasived. Ticket purchases and similar paymuents in gonjunation.with fundraiaing events may not necessarily qualify as deductible contributions, depending on the circumstances. Revenue Ruling b71246, published in eumulative oulletin 1907-2r On page 104, gives guidelines, regarding when taxpayora may dodder payments for admission to, or other participation in, fundraising activities for ohaxi,ty• YOU are not requiredto file Form 990, Return of Orgsnizatian Rxempt Prom %mcosym To, if your gross receipt's each year: are normally $15,000 or lees. tf you receive a Form 990 package i4 the mail, simply attaOh the label provided, check the box in the head ing'tb indicate that Your annual gross receipts are normally 829,000 or less; and sign the ret'Urn. aecauas yoi, ,0111 be trahted as a public charity for return filing purposes during your entire advanca ruling period, you should file Form 990 for eaah year in your advance ruling period hatter 1045 twcgj MI: R10 HCHM COCH9R M UMLOPIMT that you exceed the $25,000 filing tthresp ldfeveninfthour sourc tading othispletter. rt do not satisfy the public suppon Mat T€ a return isrequired,'it timet pe filed by the 13th n�altafCh$2Oaday lt atpnth after the end of Your annual arCot?atfn9 pexiod. R pe Ya is charged when a return is fila& late, unless there is reaednable cause for the delay= However, the maximum Venalty charged cannot exceed is less. ..u,0oor For S poroant of your gross receipta for the Year', whichever penalty organizations with gratis repaipte egae}�ding S1,000,Oe4 is any year, the p is $1Os paY day per return, unlats kijere is ressonahli cause for the delay. The maxinum penalty far an orgsntmatian with gross FeRealaocharged a 51,940,600 shall not exceed $56,000. This penalty mky return is not omplete. 50, plesee be sure your Mtura is eompIs'" before you file it. You are net required to Lilt Caderal income tax returns unless you are subject to the tax on unrelated bueinese income under ae'atian $11 of the Code. If you are subject to this tare, YOU must file an income tax return on Form 990-T, Exempt Organization Husinbas lnpome Tax ReturnXn this ackivisilettter unre-we e not determining whether any of yauz� pftlaont or proposed lated trade or buainoee se defiired in eeetion 513 of the Code. You axe requietd to make yallt curios% isfamation ratuzn. Pore 990 or corm 990 -SZ, available for public Anapettion Sox` three yeaws after the later of the doe date. of the rxetur{i'or the date the return if filed, You arm also required to stake available for public 'itwEkonti u your Copies oft'on kleseaation, any supporting docunwnte, and your ex to ea indiYidwbl upon written or iA docutwM9 are also required to be providedY Person rawest without ebaege other than reasonable fees for copying and postage. You.away fulfill tibjb requirement 1y p7 Ging these documenta on the Internet. Penalties may be 3mpgaed $oi failure to comply with these requirements. Additional info�t$On i availableYin Pu llicaPurtionoll fres Tax-gr*Mt Status for Your Ory, number shown shave. You need an employer iden>;iticatinn Aumhor avan if You have no empjgYams. xf an employer identifica:ti_on Ager wee nes eat4sa3on Your application, we will youu�e an in. Cor enceit. wi`thptheae use Tnternalat number r on to yOU *Ad 44vift you of Revenue Garviae. addendXf um�encloosed is dw 1ai:eyral#partsofotter thAt this lettean atfdendum applies, the Segapfa this letter cpul¢ 1ie1P 'us resolve to -x q"Out aut Ynur axengit status and foundation e you should Regp it In your permanent records, Letter 1045 ('tlaNG) Y wa at _You rag M tilplease Conti t; th a x e nnea d mne rs rc to *Wm ift Sincerely yours, m� Twin o.f er Director, Exempt oroanirxtiong (A) . Boxo fl124C TAttet So4s (MACK CALM=ORNIASTATEOOARp17fEQUAL.PTION . VIZATIONAL 6LEARANCI CERTIFICATE FOR:WgLFARE OR VETERANS' flRGaAN(ZATIOH E7 i~A!IPT.ION OrgaelxallOnal1111gllflali9n Oa[el ptEenllkale� St6�D4 110E ex. No.: 17bA0 Types ChOr)fable Corp, tt) 24285A4'. �t=(scat Year First Ouahfisd; 63.04 ire&27T-OC (Ta03) NOTICE TO.ORGA GENERAL i0oftMAti WELFARE OR VETERAN8 6k( Your claim for an organizafianal Glearanoo Certificate hasbe your organization meets the ;grganizai'ronal requirements;, organizational clearance eertificstz wdl be mailed to the oris The must fi ciaim,frian e Ce 0d pmpisigned, and filed with#tu Ifl THIS caRTIMAIZ NUh/BER MAST 9E SVahBTMO TO A co11NrV WMEN PUNG d CLAW FOR WE07ARE OR VETERAM4' ORCvN11ZtInW(F;xEh:PnON In accordance with section 254.6 of the Revenue and Taxation Code, the Board has determined (hat this organization meets the orgariizaticnai requirements of section 214. ING E)CEI4PTION n reviewed and a deb ,r exemption under ization periodically to board, along with sui i audit or verification c Von has been made that i. 214. A claim for Ina and update information. I documents, in order to rgenization to determine n Code section 214, as rning the organizational fal, Takes [)apartment, Assessment Fotioy apd Standards: 01 Ion, Exertiphons Sestron;;a1:916 445•'56x9.: Th11 a Assessor may not appJ'ove.a property tax exemplion olaim on any property until the.clatmant has boon issued a valid organizational Clearance Certificate under section 264;6.,The Assessor may deny a claim for the exemption, notwithstanding that the ctalmanihas bear, granted an. oreanizattonal clearance certiticate. Claim forms for the wettare or veterans' acquired by an organtzatfOn may be obtained from the Assessor in the county where,the propgdy,is located .: . Annually, claims for the Welfare._and veterans ofgenizatian exemptions and supplemagtai affidavits, if required, must be filed on or before February 15 with the.appiication to the appllcabls Assessor to avoid a late filing penalty under section 270, (A separate,cieim must be tiled for eacli property location,) TIia A,ssessor will review all claims to determine.that the organization continues to uee,Rs property for qualifying purposes and activities, as specified in section 214. Any questions,. relating to -section 214 requfremente:regarding qualifying purposes and uses of the property may be directed to the Assessor. Np•25 (REV:f/20Q7/ cute this certificate of the':S.tate of rSl 09i 2014 HSD I U:t.7h. �Ali� 1V:36AIt� xaooraoaros f U00 MR= SVIZ 5ECROi'A Y OF STATE H,,. ('9144 P. 7"'- 1, .Kevin Shelley, Secretary of State'of .the State of Cagomia, hereby eerdfyx; That tine atfaekted trariscript of A-.- page(s) was Prepared by and in Us office from the.rec{ord OR filet of which it purports to be a'coPy, and that it is full, trine and cormet. IN Yf nWESS IVR'i3` OF, f mcute thus certificate =d affix the Great Seat of the State of Caif(MIA this dA,Y 0f OCT 19 2004 bAt� f�< t Secretary 6f. S[atQ 0 Oct, 25- 2C'11 IU:;bAM UCC a)IBECT VO h.. U944 f, v 2426444 ARITCI&ROFID(CQfiM1RATf4N Too MAaOt � riYQ �t7tiM! Corel, r1t I?Ev�I.oPtvfFtis CUAYU)L!F I1bN dUfi 17 �bP �J x CdifOrAts7?ub►le ll7+e5t;C?rpar�dan �aX�dIW 1 �tL17[11f.� bl( .. The; IIw/C 4I,-line CU1patY'(tQu t5 ti'te 140 Brads' trOlamu,yt)' I)ovelnpmatt Coi(wratioa. A8t'i7iCt�`'C4Y0 WSW 0 n0ogtgfu p4bUa bms6t cvtp0lahan snd fat belt brFaulaed%f the pdYste Rvn 9f ;dY pecseu It is O od analtt die PlvpptVAt,i'41�11e plmedt C440ra90n X nw for+r8aziuklc p il(>dxs [M tocdoglitsa farv�idOh this csburad4fl is atP�oucd ate W. taaaihwt aAd ptcsann kastieg tFet is dewmc tvtd e![otdabh TO ; law Mid Atadeotr i"Oma pgwDg (b) ptom I0te tM' roma we16re of ; hs Ommm RY hY Tole*& Dourly, dcpendaaey,cl�oattunamplaypiedt9ndunddan�TapRtati;utd ,. (a) 00 MW Catbmwty, deteiialadoa rad pmotato Uie tegroeatiea Af a asAtuio I YGAlliytoero2s,cxparlaAtigg cououdcdut[ou.- � ItR'1TCLB'P�RES The ALAR end• eddt In ills $tart@ et CO2410 tt" 9f 1W COWA ,ii01d#.In[ds1 i 0t for t aotviea aI pmasar'is Sttaui kC It401;V#Uc! t>x+14 Suite 201, �! I419Ata, CA i .Holttday, 41731. ,{ ART1Gi.E�I4i , 1 (p),1Ws aorp4iatiOa is argFnl7t'd sad opottO?d eKCitmltbly for cbssitablaugwas+' wittwtdtepuimlugor3eot%au3D}(e�3)efiht:Ta1?�I�YeavaC.ude.,.,�,:,,`,,�q ... (h}i`ratWltl)�tgtYQiq$igFYOt(ZIx 4r{aY QR q�lltsiQ l�itlslttie Me..nY`•""'aG.SWIM omry. p eny tlthcr 3ch ties tto1 poclpt[lcd to bo.Gutttkd �1} Y i t Rm°dOA itzm�pt ROM fc*dfncuatotaxrmdaSctlionf(O�(3)atthllatefrielRcYwue:CadaarC�}�YIL Ihs. eotpaa(iaq aontntiuttgrls to Wltisti 8tq ded0atibiv upddr Swdan 171XO)V) al sNal KevlAas Cade. (a) NO sabstssiid poi of tiie acdyides or thh wptx' do :ball ece�tet of f cicrylp&,aa propmada, ar otbawso ei*fiag to inlllt w4 sad tfts l i Oct. 25. 2011 10136AMAA J I POO oug"o LOU MAM-I -Mm No, 0944 Pv 4'"--' veae III MY DO ultclaalfQf; Of 114 Do �7777 7777 7 - 7,1 TIA 1, n I I f I Qcl, 2;. 2Qi t> 1U:36f+N� lxuuzaya�bo uW ui+}nv c)vo Na. 0444 P. 7— :CRETAW V, STATE ITIFIGAT CTP TATUS AESTIC C{2. PoRATION lary of eta to of the State of Califomle, Webycertify: y of Juni, ;2002; Rio HONDO COMMUNITY RATIO14 :bbc anfe. incorporated undat the; laws of the its ArOdes ot! IACoip9taIton in this office; .LAI state of Cal forma Secretary Of State Statetpsnt of (nfor`.inattraft : 5W9,6773 '(Domestic NonGrcuL credit Union and Censui7 er taapg(Ative Cornbratt a) Ct� FLED Pllfng Fee: 42.01). Ifthis is: ament n aendm, free instructions FI4GD IMPORTANT—READ INSTRUGTIPN$g�FOREOOMPLETINGTFII$FORM intheofttceoreasecreWlyorstale of the State of Callfornia I 1. 'CORHORA:£ NAME -' 1910 HONDO COMMUNITY DEVELOPMENT GgRPgMTION FFR -27 2014 2 CALIFORNIA CORPORATE NUMBER - 0242654.4 ihn yaam ra F;eto+tx Ontr % 'Getnpieie principal Office Address106 not otthrenato dit mmo of trio c4. from 3o?nrnt be a P.O. De.J _ � 9THE�r ADORE330F PRINCIPAI:OEFtr;E IN GALIFORNV4.IFANY CnV. � STATE "TIP WDE 91706 RAMONA 9LYA, 3UnE X707, EL MOfJTC, CAUT732 t. MAtIiNG A1TnRE53`OP YryG COHPDRAi1tlM GTY STATE 'ZIPGODE fitO HONDOCOMMUNITY DEVELOPMENT CORP I9,'r4at-1AMOWILVD SUITE fi TOT £L MONTE,CA,91732 -Names and Complete Addess4t ai the Mtion otVCF1f5f those three'offloom A M402rabw 11#0 for 1110 sped9C t>t�a:ar lneY t!0 aed0d: j1nWpYar, tt1a firaFrmteC 41145 an;1RrS t01n1 mVat nMb,B BltGee,) i DHIEr f%ECL'if�k-OF110EfV ADDRESS— STATE:71P CDo6 ,DONNA L C1UNOAN 9 t 7aD RAMONA BLVO SUtTE.O t07 4A4.UNTi , CA 91732 6, SECRETi.@Y ADDRESS. CITY STATE:YIP Cf?DE SILL $CliIiOEPER.. 5?00I".RWINDALE,tIYENU1;:�tfiWI.NDA1.5 CAtii,TG6 - 7:.CHIFFFIW�yCThLDFFfCE4N AduRESS _ OITY 5T(cTE- �XN GODS I.iLLiAN REY: 1"MULHALLAVE ELMONTE,GA9.1732 heat tar $erviria of PYGGa55 .1[ [ire agent is'nn ItttTinduaLihb agont Irian 6W'6 as$IJ{ 61a ana' Hart% 9 mart be nenpfe 4e to a Coliwfiils Wool Wotan, a R0, Sok sddrbss iY not ameptablo, it 11)0 aw( is _attdiher Epf{IM'Alwn 1110 egenl.IPust 7ifive an file with the CaGfnmk?, Secretary G S"a cetillimlegRsi!gnl'tgCaL',iar+i� CR7wt�ons:Code:loa i 150SaMIWm, 9 muu be tofthlarlk. .. 9.. NMI- OF AdENYTgiYSEfiVI�'[5 PROCESs'`" -ANNA PALM"_: .. .. .... 9. $TFtEEt ADP9ESa OFAOEN7 i4ft SERVICE OT pitDnESSIND:IIFOPNIAIK At1 WDr✓rIWAL CITY SYAT- .Z{PGODE 1.1706 RAMQNA BLvd SUl? X 197 EL MbNTE� GA 97732 f7a4IS.8Nr)In8 Common 9nlbrost Oorelo{Nnea! Act jCa(rtninla C u>f cafe sP.i4on 1359 w ieoJ . . .. : � :: `. in r -T Dhpcti beta if fm WrWown is to abnoda on kmtad is maip a Wmmon Rod""l CevefOpmeril Urstar VM ms—s(kting Camrzwn Inlu9st L_I t»wwamemMa: NDm C&W1$0ass banned to minttf. acamrnon intbket d¢yeloprnnnt o't, also 9f0 a Oil or by Gamnrttn Intbroct "tMvalopmenl AAiadalton {FormSl•CID}05 roVuired 9y.CNiFamla Civil Cadesd,"" its a, Pleutt5re bwWoon, an the rowetse sWa ot9sstoaa . It THEINFL7RMATlON CUNrAMEO HEREINt5TRVEAND CbkREGT ':' 0212712014 ANNA-PALI.ER - :: .6FFI60111ANAGER , k0w. 'DATE FYPFipkiNT NAME0FA9f;Sw.C.0WErING FbftM TITLE S16NATU.R St=1841RUVI btyt8fal' .. .: .. (tppRoyEt? OYSECREIMYOFSTATE 24.CitF 89,2i, Staatiards£oTFinanctni ManagementSystems Certification The Rio Hgr}do,Ggmmunity Development Corporado.n e0tifles that its Policies and procodtires conform to.the financial umuntabillty standards of 2A CRF 84;2; Stairilards for Pim,ancial Management5ystems. R10 HONDO COMMUNITY pEvF-LOPMENT CORPORATION Financial Statements June 30, 2015 and 2014 (WiithIndependent Audhors'Report Thereon) TABLE OF CONTENTS Independent Auditors' Report Financial Statements: Statements of Financial Position Statements ofActivlties statements of Functional Expenses Statements of Cash Flows Notes to Financial Statements Page 5-s 7-13 H KG LLP eertirlad Pabirc Accountants INDEPENDENT AUDITORS` REPORT Board of Directors Rio Hondo Community Development Corporation El Monte, Califomis We have audited the accompanying financial statements of Rio Hondo Community Development Corporation (a non-profit corporation) (the Organization) Which comprise the statements of financial position as of June 30, 2015 and 2014, and the related 'statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of theso financial statements in accordance with accounting principles generally accepted In the United States of America; this includes the design, implementation, and maintenance of Internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility Is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards squire that we plan and perform the. audit to obtaln reasonable assurance about whether the financial statements are free from materia( misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those Oak assessments, the auditor considers internal control relevant to the entity`s preparation and fair presentation of the financial statements In order to dasign audit procedures' that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of th i entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenes's of accounting policies used and the reasorrabteness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements, We believe that the audit evidence we have obtained is sufficient and appropdafe to provide a basis for our audit opinion: Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rio Hondo Community Development Corporation as of dune 30, 2015 and 2014, and the changes In Its net assets and its cash Flows for the year then ended in accordance with accounting principles generally accepted in the United States of America, HK , l_LP Certified Public Accountants Arcadia, California February 2, 2016 So E. Foothffi Blvd„ Tliixd Flan l Arcadia. CA 91006 I ('hone; (626)5850666 i Fax: (626)447.4014 Arcadia I Newport Such I Pasadena RIO HONDO COMMUNITY DEVELOPMENT CORPORATION STATEMENTS OF FINANCIAL POSITION JUNE 30, 2015 AND 2014 ASSETS 2015 Assets: Cash and cash equivalents $ 436.032 Real estate project under development - Office equipment, net of accumulated depreciation Rental propertles, net of accumulated depreciation 2,830,025 Deposits 900 Total assets $ 3,36 6,957 LIABILITIES AND NET ASSETS Liabilities: Accounts payable and accrued expenses Accrued Interest Security deposits Notes payable, net of unamortized discount of $1,784,323 in 2015 and $1,811,735 in 2014 Total liabilities Net assets (deficit): Unrestricted Tempomdly restricted Total net assets Total liabilities and net assets $ 20,503 195,963 23,167 1,232,469 1,472,102 110,532 1,784,323 1,894,855 $ 3,366,957 The accompanying notes are an integmt part ofthese statements 2 2014 $ 270,817 1,537,349 301 2,531,871 14,307 $ 4,354,645 $ 74,856 176,873 2$,471 2,495,488 2,770,668 (227,778) 1,811,735 1,583,957 $ 4,354,645 / [;§ ~ r ; « m > # 2 R !3 R k@ h ! / [;§ ~ r ; O (b N N d z vaarr Zw �v 0 M 60Z p7p OggkW F LL. r' V,QN'�W<b tp a7 esti +�Yc '`prrY-� NC! m y G W M [4 (�Mhi� OO Sf �'�"dMmMNW 41, H p� easy cs � � � r ' R N • � ' P M � < C~1 ' V W � � i , � �N„ a N � Yi _C E 'O Q K w W �j � A ~ b tY hV CWi M W 6i N m a w w El N W f N or M N M r c M M N W W e- W w H iC rn w N W iD IWO W W �Ms�- W W W m w w 3 n rn�'o mco qm.� @ll iUyQ�mm'a c�8 ooE; a'2 aaauaDc D RIO HONDO COMMUNITY DEVELOPMENT CORPORATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2095 AND 2014 The accompanying nates are an integraf part of these statements 6 2015 2014 Cash flows provided by.(used for) operating activideV Changes in net assets $ 310,898 $ (423,935) Adjustments to reconcile changes In net assets to net cash provided by (used for) operating activifes: Depreciation andarrtortizatl0n 60,255 56,913 Amortization of discount on notes payable 27.412 50,672 Contribution of land and building (456,605) Impairment loss 256.M Changes in: Grants receivable 31,552 Real estate project under davetoprnent 1,537,350 (24,612) Deposits 13,407 (4,809) Accounts payable and accrued expenses (54,353) 5,680 Accrued interest 19,030 19,090 Security deposits (304} 92 . Total adjustments 1,146,252 391,255 Net cash provided by (used for) operating activities 1,457,150 (32,680} Cash flows used for Investing activities: improvements to rental properties (1,503) Cash flows used for financing activities: Principal payments on notes payable (1,290,432) (39,091) Not increase (decease) in cash and cash equivalents 165,1215 (71,771) Cash and cash equivalents -beginning of year 270,817 342,588 Cash and cash equivalents - and of year $ _ 436,032 $ 270,817 The accompanying nates are an integraf part of these statements 6 RIO HONDO COMMUNITY DEVELOPMENT CORPORATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2016 AND 2014 (Continued) 2095 2014 Supplemental information: Cash paid for: Interest 5 2 3 $ 2L749 Noncash transactions: Accounts payable incurred for real estate project under development $ $ _ 54,950 Interest written off for real estate project underdevelopment The accompanying notes are an inloomf part of these statements 6 RIO HONDO COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 20116 AND 21114 1. ORGANiZATION ACTIVITY Rio Hchdo Community Development Corporation (the Organization) was incorporated on June 17, 2002, as'a nonprofit corporation to improve, construct and preserve housing that is decent and affordable to low and moderate income individuals. The Organization's primary source of financial support is through govemment grants from the City of Ef Monte and the City of Rosemead and net rental income collected from its rental properties. 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis ofPresentatton The net assets of the Organization are presented in accordance with Financial Accounting Standards Board Accouhfing Standards Codification (FASB ASC) 958, Finariclal Statements of Not -far -profit Organizations. Under FASB ASG 958, the Organization is required to report information regarding its financial position and activities according to three classes of net assets; unrestricted net assets, temporarily .restricted net assets, and permanently restricted net assets. The Organization has no permanently restricted net assets at June 30, 2015 and 2014, afhod ofAccountina The Organization prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Revenue and Pp& Recognition Revenue and profit from sales of real estate are recorded after all requirements of the closing are satisfied, In accordance with FASB ASC 350, Accounting forSelos of Real Estate. Costs are accumulated by specific development and are charged to cost of sales based on square footage. Rental income collected in advance is deferred until the passage of the appropriate rental period and recorded as deferred income. Tenants rent properties on a month-to-month basis. Real Estate Projacts Real estate projects are carried at cost, net of any impairment losses. The Organization annually reviews its real estate projects for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If these assets are considered to be impaired, the impairment toss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets, lass cost to sell, and Is"recognized within the same period that the impairment is identified. The Organization capitalizes preacquisition costs, land and development costs, direct costs of construction, overhead, taxes and other carrying costs incurred. C8aJ2 'afion of lnferesf The Organization capitalizes interest incurred on its projects during the development. For the years ended June 30, 2015 and 2014, the Organization incurred interest costs of $73,985 and $77,819 respectively. No Interest was capitalized. RIO HONDO COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2095 AND 2094 (continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and_Cash Eou&rfenfs The Organization considers all highly liquid debt instruments with a maturity of three months or less from the date purchased to be cash equivalents. Uninsured Cash Baia -goes The Organization maintains balances in its checking and savings accounts at different financial Institutions. The combined balances at the institution periodically exceed the federally insured limit should the institution become Insolvent, The Organization does not believe the risk of loss is material. Qf ice Edufnmaht Office equipment is recorded at cost, if purchased, or atthe approximate fair value at the date ordonation, ff donated, net of accumulated depreciation. Depreciation is computed using the straight fine method, over the estimated useful lives of the respective assets, which range from three to seven years. WMo .-107# :rlf ) Rental properties are carded at Cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of 27 years. Maintenance and repairs are charged to the appropriate expense account In the period in which the expenditure is incurred. Improvements and betterments are capitatized and depreciated. When rental properties are sold, or otherwise disposed of, the asset and accumulated depreciation are removed and any gain or foss is recognized. Fair Vafae of Ffoanciat tastnrments The Organization has financial instruments whereby the fair value of the financial instruments could be different than that recorded on a historical basis on the accompanying statements of financial position. The Organization's financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses, notes payable, security deposits and accrued interest. The carrying amounts of the Organization's financial instruments generally approximate their fair values at June 30, 2075 and 2014. Confrfh EMM Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and nature of any donor restrictions. Support that is not restricted by the donor is reported as an increase In unrestricted net assets. All other donor restricted support Is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (when a stipulated time restriction ends or purpose of restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restriction. Temporarily restricted assets received and used in the same year are considered unrestricted. RIO HONDO COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE. 30, 2045 AND 2014 (continued) 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {continued) Donated Suop%j and Services Donated supplies and services are recognized as contributions at their estimated fair values at the date of donation. Services are recognized as donations If they (a) create or enhance non-financial assets or (b) require specialized skills that are provided by individuals possessing those skills, and would typically need to be purchased N not donated. Supplies are recognized as donations when received. Funotional Atfoc&c—n ofP-anses The organization allocates its expenses on a functional basis among its programs and support services. Expenses that can be identified with a specific program ar support service are allocated directly according to their natural expenditure classification. other expenses that are common to several functions are allocated using various appropriate methods. Income Taxes The Organization follows the provisions of FASB Accounting for Uncertainty in ineome Taxes, which prescribes a minimum recognition threshold and measurement methodology for tax positions taken, or expected to be taken, in a tax return prior to recognition in the financial statements. The standard also provides guidance for derecognition, classification, interest and penalties, and accounting in interim periods, disclosure, and transition. The Organization is exempt from federal Income tax underthe provisions of Section Sol (c)(3) of the Internal Revenue Code, and California Revenue and Taxation Code Sectlon 23701d, and therefore a provision for income taxes Is not Included in the financial statements. Management believes that it has appropriate support for the positions taken on its tax returns and that the exempt status Would be sustained on examination The organization classifies interest and penalties on undarpayroont6 of Income tax, If any, as interest expense and penal#ies, respectively, both of which would be included in general and administrative expenses. Tha organization ties tax returns in the United States federal and California state Jurisdictions. The Organization o no toogar subject to tax examinations for California befare'tax year 2010 (fiscal year ended June 30, 2011) or for United States federal purposes before tax year 2017 (fiscal year ended June 30, 2012). use of awmatas The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America includes the use of estimates that affect the financial statements. Accordingly, actual results could differ from those estimates. Realassi+9ostfon Certain arnonts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the eurrentyear financial statements. There is no effect on net assets. RIO HONDA COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 AND 2014 (continued) 3. OFFICE EQUIPMENT Office equipment consists of the following at June 30: Computer Equipment Less: accumulated depreciation 4. RENTAL PROPERTIES Rental properties consist of the following at June 30: Buildings and improvements Land Less., accumulated depreciation and amortization 2015 2014 $ 3,116 $ 3,116 (3,116} (2,816,61 $ $ 301 2015 2014 $ 1,686,299 $ 1,556,947 1,679,423 1,350,666 3,365,722 2,907,613 (435,697) (375,742) $ 2,830,025 $ 2 531 ,871 During the year ended June 30, 2015. the organization received a donation of )and and building from the City of F1 Manta to be used as a rental property. The fair valua of the donation was estimated to be approximately $456,600. 10 RIO HONDO COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 AND 2014 (continued) 5. NOTES PAYABLE Notes payable consist of the. following at June 30: 2016 2014 Term loan from the City of EI Monte payable in. monthly installments of $5,147, Including Interest at 6.65%'Per annum. The original principal loan amount was.$846,000. The loan is Secured by a first deed of frust on the rental properties located In the City of EI Monte. Final maturity is $ 464,008 $ 605,366 August 2023. Below -market -interest note from the City of EI Monte, net of unamortized discount of $709,862 in 2015 and $717,666 in 2014 (effective interest rate, 5.21%), is secured by a second deed of trust on the rental properties located in the City of Ei Monte. The face amount of the loan is $954,500. Interest accrues at 2% per annum convening on April 15, 2006. Annual payment equivalent to 60% of the Organization's available surplus cash derived from the operation of the rental properties for the calendar year preceding the date of the payment, as defined, is due on April 15 of each year. No payments have been made as of June 30, 2015 and 2014, respectively, Final maturity is August 2058, As of June 30, 2016 and 2014, accrued intereet totaled $195,963 and 244,638 236,832 $176,873, respectively. Non-interest bearing note, net of unamortlzed discount of $$91,666 In 2015 and $394,344 in 2014 (effective interest rate, 4210A), is secured by a deed of trust on the rental property located in the City of Rosemead. The loan has a face amount of $457,899, of which $213,616 is payable in full at the end of the 55 -year term to the City of Rosemead and $243,284 is forgivable by the Rosemead Community Development Commission if the Organization does not default on the loan prior to the 55 -year term, as defined. 06231 63,555 Final maturity is May 2063. 11 RIO HONDO COMMUNITY DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 AND 2014 (continued) 9. NOTES PAYABLE(CONTINUED) Non-interest bearing note from the City of EI Monte, net of unamortized discount of $306,065 in 2016 and $320,888 in 2014 (effective interest rate, 3.79%), is secured by a deed of trust on the rental property located In the City of EI Monte. The face amount of the loan is $711,965, which Is forgivable by the City of El Monte if the Organization does not default on the loan prior to the 20 -year term, as defined in accordance with the loan agreement. Final maturity is August 2030. Construction loan from the city of EI Monte with a maximum amount of $468,464. The loan was secured by real estate under development. Interest accrued at 4% per annum until the principal balance and all accrued interest is paid in full. During the year ended June 30, 2014 the City agreed to cease the accrual of interest on the loan. The loan was paid in full in April 2015 with the proceeds from the sale of the projecL Below -market -interest note from the City of EI Monte was secured by real estate under development. The principal balance of the note was $879,228. The loan was paid in full in April 2016 with the proceeds from the sale of the project, Non -Interest bearing note, net of unamortized discount of $376,728 in 2016 and $378,835 (effective Interest rate, 4.26%), is secured by a deed of truston the rental property located in the City of Rosemead. The loan has a face amount of $428,400, of which $227,086 is payable in full at the end of the 55 -year term to the City of Rosemead and $201,314 is forgivable by the Rosemead Community Development Commission if the Organization does not default on the loan prior to the 56 -year term, as defined. Final maturity is April 2065. 405,920 391,087 879,228 51,672 49,565 $ 11232,469 $ 2,496,488 The discount on the notes payable is amortized using the effective Interest method over the remaining term of the notes. For the years ended June 30, 2015 and 2014, the Organization recorded amortization of $27,412 and $60,672. 12 Rio HONDO COMMUNITY D!<VELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 AND 2014 (continued) S. NOTES PAYABLE(CONTINUED) principal maturities of notes payable are as follows: Fiscal year ended Amount June 30. 43,750 2016 46,296 20,1,7 48,980 2018 51,821 2019 54,825 2020 886`788 Thereafter $ 1,232,459 8. TEMPORARILY RESTRICTED NET ASSETS The Organization had temporarily restricted net assets available for unamortzod discounts on notes payable. As of June 30, 2015 and 2014, unamortized discounts totaled $1,784,323 and $1,811,735 respectivoly. 7, LEASES The organization leases its office spade on a month to -month hasis from a related party, Total rents paid for the years ended June 30, 2015 and 2014 were $18.720 each year. 8. RELATED PARTY A board member of the Organization is also the owner of the office buitding.(Sea Note 7) 9, SUBSEQUENT EVENTS The organization has evaluated subsequent events through February 2, 2016, the date the financial statements ware available to be issued, 13 RESOLUTION 2098 - 01 Resolution of the Executive Committee of tite Board of Rio Hondo Community Development Corporation (tile Board') Authorizing Commmnity HousingDeveloprnent Organization (C DO) Application and it's Submission to the City of Rosemead and recommending approval to the Board. WHEREAS, on January 2, 2018 the Executive Committee of the Board of Directors of the Rio Hondo Community Development Corporation, review the proposed Community Housing Development Organization of the City of Rosemead, California; and WHEREAS, the Executive Committee considered the proposed 2018-19 Fiscal Year CIIDO application for submission to the City of Rosemead; and WHEREAS, the Executive Committee after consideration approved the proposed 2018-19 Fiscal Year C14DO application for submission to the City of Rosemead: and WHEREAS, the Executive Committee recommend the Board approve 2018-19 Fiscal Year CHDO Application submission to the City of Rosemead and authorize the President of the Rio Hondo Community Development Corporation to execute and submit the application. THEREFORE, THE EXECUTIVE COMMITTEE OF TI3E BOARD OF DIRECTORS OF THE RIO HONDO COMMUNITY DEVELOPMENT CORPORATION RESOLVES: 1. To affirm the above statement; and 2. To recommend the Board approve CHDO application submission to the City of Rosemead and authorize the President of the Rio Hondo Community Development Corporation to execute and submit the application.. PASSED AND ADOPTED THIS 2nd. DAY OF January, 2018 Attest: % l Rex Botengan, President Eugene Moy, TreTY I, Jonathan Hawes, Secretary of the Ilio Hondo Community Development Corporation, do hereby testify thatthe foregoing Resolution was duly and regularly passed and adopted by the Executive Committee of the Board of Directors at its meeting held on January 2, 2018. onathan Hawes, Secretary lo HONL9 € omMUNITY DEVELOPMENT CORPORATION OFFICERS AND DIRECTORS 2016 - 2017 Name / Hoard Member / Title CkllfO Cate¢ory Rea Botenean President Low income Our Savior Center (Aug, 2014) 4368 Santa Anita Ave El Monte, CA 91731 Harold Johanson Piee President Low Income, Retired — City of El Monte (Sept. 2003) 4216 Kerman Avenue, EI Monte CA 91731 Jonatban Hawes Secretary Public City of El Monte (March 2013) 11333 Valley Boulevard, El Monte, CA 91731 Eugene MoyTreasurer Pnvitc Self-employed - Community Redevelopment (June. 2002) 304 North Hidalgo Avenue, Alhambra CA 91801 Opatka L Duncan. Director Private ,Self Ejnployed (Real Estate Services (June 2002) 11706 Ramona Blvd., Suite 107, El Monte, CA 91732 Jody Buah.l7trector Low Income DEMBA (Sept. 2012) 9933 Alesia Street, S El Monte, CA 91733 Wayne He li ctor Private Retired'—Trinity Church (Sept. 2010) 11830 Hemlock Street, Ell Monte, CA 91732 Teresa Velasea Director Public Retired — EI Monte union High School District (Sept 2012) El Monte Historical Musewn 10906 Montecito Drive, El Monte, CA 91731 Lillian Rev. Director El Monte South El Monte Emergency Resources Association (Sept. 2007) 1090 Mullhall St., El Monte, CA 91731 Tina Ly Director 10050 Garvey Ave #107, El Monte, CA 91733 8838 E. Valley Boulevard Rosemead CA 91770 Ken Rausch. Director El Monte / South El Monte (Jan. 2016) Chamber of Commerce 10505 Valley Blvd, Ste. 212 EI Monte, CA 91731 ArtBarrios. Director City of El Monte (March 2016) Chamber of Commerce 12048 Emery St. El Monte, CA 91732 Low Income — 4 (33%) Private — 6 (46%) Public -2 (.21%) Low Income Private Private Private January 25, 2018 www' R14.1I40NDc_)("OC„ovg 11706 RAMONA BLVO ® » 107 o EL MONTE. CA 91732 m 626 401 2784 C)RIO HONPO cooMm nEvELoomEta CORPORATION I ......... . ........ .. RIO HONDO COMMUNITY DEVELOPMENT CORPORATION 2016 / 2017 BUSINESS PLAN Component to Business Plan And CHDO Operating Expense Grant Scope of Work TASK 1: AFFORDABiLITY CERTIFICATION / RECERTIFICATION A principal activity of the Rio Hondo Community Development Corporation during FY 2016 — 2017 will be the annual Affordability Certification I Recertification of Thirty One (31) families as eligible to occupy assisted rental apartments or homes. The subtasks associated with this activity of it include: SUBTASKS: 1, Conduct initial/new tenant eligibility certification pursuant to 24 CFR Part 92 (HOME Program) or the Federal Neighborhood Stabilization Program, as appropriate 2, Prepare Annual Tenant Recertification Packet for existing residents and related Instructions. Train property management company staff on the recertification forms and worksheets, supporting documentation requirements, and the application of the recertification Instructions. A. Peview recertification packet for completeness and recertification worksheets for accuracy. 4. Authorize initial lease or lease renewals. S. Scan and save recertification documents and leases in electronic format per the City requirements, 6. Prepare recertification Summary Report for the City, 7. Submit recerttification Summary Reportand underlying recertification documents to the City 8, Respond to any Chy requests for additional information City of CHDO Operating Expense Grant will be utilize for "Task 1 Affordability Certification t Recertification" TASK 2- ON-GOING ASSETAND PROPERTY MANAGEMENT ASSESMENTS Another significant activity of the Rio Hondo CDC during FY 2016 -2017 will involve the on- going management of the CDCs rental housing program, as more fully described in the below listing of subtasks. Additionally, the CDC will also be conducting a physical needs assessment of the apartment buildings / signal family homes during the upcoming fiscal year. Structures approaching 40 + years the age with several building components warrant replacement or significant repair, RHCDC will also be developing a Replacements/Major Repair Plan and Timeline for ensuring that the Building remains a suitable living environment for families and remains in compliance with local codes and Federal housing quality standards. SUBTASKS: 1. Review and analyze monthly operating statements prepared by property Management Company, 2- Review and consider expenditure requests from property Management company that exceed pre -authorization limits. 3. Conduct monthly inspections of the exterior of each rental property. Follow-up with property Management Company regarding any maintenance and/or rule enforcement matters. 4. Prepare annual rent assessment, rent roll and utility allowances for Board consideration and approval. Page 1 of2 5. Work closely with property Management Company to conduct physical needs assessment of apartment buildings and signal family homes. Develop short and intermediate term plan for building component replacements. 6. Inspect all units by-annually. erty CHDO Operating Expense Grant will be utilized for to "Tssk 2- ort-Going Asset and Preperty Management" TASK 3: HOMEOWNERSHIP PROGRAM- CONSTRUCTION ADMINSTRATiON, HOME SALES, PROPERTY DISPOSITION AND AQUSISTION REHAB During FY 2016 - 2o17, Rio Hondo CDC will continue to construct affordable homes for safe to working families. Secure revenue to facilitate construction projectls). Partner with public and private agencies in providing First-time homebuyer loan program assistance to working families. SUBTA5KS: 1. Perform construction administration and related duties for all Affordable Homeownership Project. 2. Work closely with the City of Rosemead, City of Baldwin Park and City of El Monte staff and our Broker 1 Realtor to market the homes to eligible first-time homebuyers. 3. Work closelywithCity staff toselect first-time homebuyersfor the homes_ 4. Assist City staff in underwriting the City's first-time homebuyer loan. S. Assist City staff, the homebuyer, the Realtor and the Escrow Company in the closing of Escrow. 6. Perform warranty administration work. Ci_yt CHDO operating Expense Grant will be utilized for "Task 4 "Affordable Ho s n rfauelnpment". TASK 4: AFFORDABLE HOUSING DEVELOPMENT Rio Hondo CDC will continue to work to add to the inventory of high quality affordable housing for working families in Rosemead and El Monte, During FY 2016 - 2017, RHCDC will be developing two strategies that will result in the addition of affordable housing opportunities for working families, The first strategy will involve the acquisition of mortgaged foreclosed homes for resale to first-time homebuyers, The second strategy will involve the acquisition and rehabilitation of mortgage foreclosed or otherwise available rental properties in need of rehabilitation for rent to income eligible families. SUBTASKS: 1, Work with City Staff and the RHCDC Board of Directors to refine the Mortgage Foreclosed Acquisition for Resale Strategy and to develop a financing plan for implementing the strategy. 2. Work with City Staff and the RHCDC Board of Directors to refine the Rental Property Acquisition / Rehabilitation 5trategyand to develop a financing plan for implementing the strategy. 3, identify properties appropriate for each strategy. 4. Refine financing plan on a project -by -project basis. 5, Secure financing for each project City CHDO Operating Expense Grant will be utilized for "Task 4. "Affordable Housing Development" Puget vf2 C).RIO HONVO COMMUNITY OEYELOOMENT CORPORATION 002 formed to: organized in 2 ,.:.Rio Hon.do CDC was Improve;,, preserve and expand thq housing invent in San Gob"iel Valley that is decent ,Ory and affordable to lowand moderate income persons; • Gom-batcommunity deterioration and promote the ..restoration of economic vitality to areas experiencing economic distress • -W RunRIPA !VI nval�inq hbm' 0.9110ranio Opp RHCDC Community Service / outreach 2018-2017 Client/ Tenant: (Goal is to provide tenants/ clients with the resources to gain Job training skills, which can increase their economic, stability, potential for improved career opportunities and home ownership) Established relationship with Rio Hondo Community College — goal to Introduce tenants / clients to job training opportunities/ certificate programs through the community college... ability to become economically independent from government subsidized housing • Established relationsbip with Cal poly Pomona — goal to introduce tenants / clients to fob training opportunities / certificate programs through the community coliege...ability to become economically independent from government subsidized housing • Established relationship with EI Monte Promise Foundation—goal to introduce tenants/ clients to job training opportunities / certificate programs through the community college... ability to become economically independentfrom government subsidized housing • Established relationship with San Gabriel / SOAP LA. —goal to introduce tenants / clients to job training opportunities / certificate programs through the community college—ability to become economically independent from government subsidized housing o Established relationship with EI Monte School District(s)— goal to introduce tenants / clients to continued education opportunities/ certificate programs for job training through local programs and/ or higher education institutions ... ability to become economically independent from government subsidized housing o Established relationship with EI Monte Police Dept./ Crime Free Multi -Housing Program —goal to introduce & provide tenants/ clients/ familiesto live in a safe environment. Secure and protect a RHCDC assets. Associations: (Goal is to increase the public awareness of Rio Hondo CDC. This is a long-term approach to improving development opportunities). • EMSEM Chamber of Commerce— Board of Director (active &involved member) • American Red Cross -Coalition Council Member/ Home fire Champaign -Co-chair • San Gabriel Valley Employment Advisory Council —Board of Director • EL Monte Coordinating Council -Chair • Nonprofits Insurance Alliance Group 0 El Monte /San Gabriel Valley Nonprofit Alliance Association (networking group) C)RIO HONVO COMMUtOITY OMLOPME"T CO"OWAYfON Rosemead Properties - 1. 9331 Glendon Way 2. 8628 Landis View Ln EI Monte Properties - 1. 3850 Penn Mar Ave 2. 11154 Bonwood Rd 3. 11332 Coffiefd Ave 4. 91333 Iris Ln S. 11925 Lansdale Ave 6. 4400 - 4402.4406 Maxson Rd Baldwin Park Properties 1. 4600 Oresee Ave ALI =6V A� �® CERTIFICATE OF LIABILITY INSURANCEDAIS(MMMOff"M e126/2016 'MIS CERTIFICATE IS ISSUED ASA MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOE$ NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the pollcypesl must he endorsed, It SUEROGATION IS WAIVED, SUPiect to the terms and conditions of the Policy, certain policies may require an endorsement. A statement on this eeIVIloate does not confer rights to the certkRrate halQer in lieu afsuch endorssmanhs). FRCaUCER Hayward Tilton C. Roldpp Insurance Associates, Inc. CA Dept. of Ins. Lia. #0614365 S88 S. Disneyl tad Dr., Ste 400 Anaheim CA 92802-1946 �� 07 ,Tana GBYret90n /� E (714)905-1923 (714I905a910 E'(a ljaneg@htrinsure. oom itasURER(s)AFFORa1119 OOVERAse rudc4 e0URERANon MQEits Tnsusanoe Alliance Of CA ImUFEO Rio Hondo Commanity Davelapment Corporation 11706 Ramona Blvd. Ste 107 El Monte CA 91732 INSURERa_Sec2sity 144tional Iso@ CO 19879 INSURERC: 1 INSURERD: ImLgzERe; INSLMF: YAVFGAC.PA CFrR'nP1f'ATPNNM8ERr16/17 GL MOA Uh-8 L WC REVISION NUMBER: a THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TC fRE NSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 18 SUBJECT TO ALL THE TERMS, FXCLUSIONSAND CONDDIONSOF SUCH POLICIES, LIMITS SHOWN MAYHAVE SEEN REDUCED BYPAID CLAIMS, LTR TYPEOFNWRANCE SHOULD ANY OFTHE ABOVE OESCRIEED POLICIES 8E CANCELLED BEFORE S L €R M.POLICY � MMICIb LIMIT6 % COMMERCIAL GENB2ALLIARILM Rosmead, 'Ch 91770 Jane Gar retoon(JBG EACH OCCURRENCE S 1,000,000 A CLAIM"VOR Q OCCUR IES ( a OU.UrtsoGet I S SDC, 000 MEOEXP(Pn Boa Parson} 20,000 X 2016141616P0 0/2412016 0/2612017 PERSONX4,ADVIN.URY Y 1,090,000 GENYAGGR'cGATE LIMITAPPLIESPER: GENERAL AG4RFGA78 S 2,000,000 PRODUCTS -COMPO G $ 2.000,00° X FOLICYOZOT LOC LWe,Wmlity $ 1, 090, COD OTHER' AUTOMOB9.E LIABILITY FNp LIMIT $ 1,000,000 BODILY N=y(Par9ala0n) $ A ANY AUTO AM 08 O) AT0ESU �+ NDN-ONNED HIRED PIJTOS ANTICS iC 201$14181leo 0/26/2016 8/2612DII WDILYNJURY(Pv=ijM) 3 PRFecdderH AMAGE $ $ `.{ UMORmLA LMep R EACH OCCURRENCE E 2,000,006 AOGREOATE S 21000,000 A EXCE60 UAB CtA LIADE DEO I R I RETENnmS 10,000 $ 201624i810a6eB0 8/26/2036 0/2672017 B WOPHFRe CoMPBN3AnoN AND EMPLOYERS' LIABILHY API EOM IIM ERIPEJN?T.WRE EWTIY6 Y� (Mandatory In NH) L---' ��f�yyee5. dpp6 %wwor PE6CRIPTION OFOPERKCNSO&w NIA SWI115496 6/2312016 6129/2017 I VAATU+F El EACH ACCIpENT S '000 EL D15Ea -EA EMPLO $ lAO0 Coo E.L OISF+t%-PODCYLIMIT '$ 1,000,00D r1E0CPoPT10N OF OPERATInNBI LOCA170NSIVTDiICL6S iAtoRatm, Aditlmet R+mgha Ss7MdYiq M1Wy be attdchedlrmara spxalar+WlmdS FE: Covered Locations- SEE ATTAdmD Certificate Holder is Inoluded as Additional Insured as required per written oontraot or agreemaant per Farm CG20260413 +CANCII,LATTON: 10 -days Notice for Non -Payment of Premium and/or Non-PAporting of Payroll or 30 days for all other reasons. nco7 F!CATE HALM CANCELLATION (626)304-9210_-. S. SHOULD ANY OFTHE ABOVE OESCRIEED POLICIES 8E CANCELLED BEFORE City Of Rosemead THE EXPIRATION DATE THEREOF, NOTICE WDA. BE DELIVERED 01 O}riclit OS' TH9 CITY CLINK ACCORDANCE VM THE POLICY PROV1910118. 6636 East Valley AUTHORIZEITREPRESENTATIVE Rosmead, 'Ch 91770 Jane Gar retoon(JBG 14)IOVU-2014ACORDCURPORAIIUN, AU0gh18reservea. ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD 1NS026 (201401) POLICY NUMBER: M6-14181 COMMERCIAL GENERAL LIABILITY CG 20 26 0413 THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following; COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional insured PeMonts) Or Organization($)* Any person or arganization that you are required to add as an additional insured on this policy, under a written contract or agreement currently in effect, or becoming effective during the term of this policy The additional insured status will not be afforded with respect to liability arising out of or related to your activities as a real estate manager forthat person or organization. Information required to compiete this Schedule, if not shown above, will be shown in the Declarations. A. Section II --Who Is An Insured is amended to Include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily in ury', "property damage" or "personal and advedis ng Injury' caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf; 1. In the performance of your ongoing operations; or 2. In connection vMh your premises owned byor rented to you. However: 1. The Insurance afforded to such additional Insured only applies to the extent permitted by law; and 2. if coverage provided to the additional insured Is required by a contract or agreement, the Insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. B. W tih respect to the Insurance afforded to these additional insureds, the following is added to Section Ili— Limits Of Insurance: if coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional Insured is the amount of insurenca: 1. Required by the contract or agreement, or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less, This endorsement shall riot increase the applicable Limits of Insurance shown in the Declarations, CG 20 260413 V insurance Services Office, Inc., 2012 Page 1 of 1 C;)RIO HONPO R�, COMMUNITY DEVELOPMENT CORPORAHON This page is blank By Design