2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 1/8 Consolidated Community Funding Application
Redwood City, San Mateo County, and S. San Francisco
Application for New Funding for FY 2022-23
GENERAL INFORMATION
1. Organization Name: Human Investment Project (HIP Housing)
2. Project Title: Home Sharing Program
We are applying for funding from:
Redwood City City of San Mateo South San Francisco County of San Mateo Budget/Client Summary (Auto-populated from Budget, below) Jurisdictions
receiving this application
Amount
Requested
% of Program
Budget
Proposed # of
Served % of Served
Total $
Per
South San Francisco $12,000 0% 8 100% $1,500.00
Total $12,000 0% 8 100% $1,500.00
Grant Funded Programs:
We are applying for a Public Services Program
CDBG National Objective Eligibility - How are you serving low income populations? Service to low income clients verified through income documentation.
Income Verification: Describe how you obtain, verify, and maintain proof of income and presumed benefit status.
Third party documentation or client signatures on the certification forms must be available on file for review at all times.
As a requirement of participation in the program, applicants must provide documentation of their source(s) of income, including: paycheck stubs, bank statements, tax returns, income award letters, confirmation of support from family or other sources, etc. Additionally, applicants sign an Income Documentation form confirming their source(s) of income and annual income amount.
3. Project
Address:
800 S. Claremont #210 City: San Mateo Zip: 94402-1450
4. Provide a one sentence project summary:
HIP Housing’s Home Sharing Program interviews and screens individuals who are searching for a housemate, and struggling renters who are searching for an affordable place to live, and matches them in affordable home sharing arrangements, while also providing housing assistance and resources to low-income individuals and families throughout San Mateo County.
Organization
Address:
800 S. Claremont #210 City: San Mateo Zip: 94402-1450
Organization
Phone:
650-348-6660 Website:
http://www.hiphousing.org/
Type of Applicant: Non-Profit Our agency serves:
5. Contact Person
/ Project
Administrator:
Name: Laura Fanucchi Title: Director of Programs Telephone: 650-348-6660 Contact Email: [email protected] Fax:
6. Name of
Agency Director:
Kate Comfort Harr
2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 2/8
7. Fiscal Officer: Name: Ghion Dessie
Email:
[email protected]
Telephone: 650-348-6660
Fiscal Officer
Address:
800 S. Claremont #210 City: San Mateo Zip: 94402-1450
8. Authorized
Signatory:
Name: Kate Comfort Harr
Email:
[email protected]
Telephone: 650-348-6660
Authorized
Signatory Address:
800 S. Claremont #210 City: San Mateo Zip: 94402-1450
9. Please provide days and hours of regularly scheduled operation:
Our business hours are 8:30 am to 5:00 pm, Monday through Friday.
10. DUNS Number: 120811997 Federal EIN/TIN Number: 94-2154614
11. HUD Activity: Choose the HUD activity that most closely matches your service:
05 - Public Services
12. Project Specific Narrative: Provide a narrative description of the specific activities to be carried out with the requested funds. This should also include program objectives and key priorities for each specific jurisdiction.
HIP Housing’s Home Sharing Program prevents homelessness, counters displacement, and creates new affordable housing in South San Francisco and across San Mateo County by matching people who have space in their home to share, with people who are searching for an affordable place to live. This innovative program enables low-income workers to live in South San Francisco, while also helping renters and those with special needs to remain in their home.
Program activities include: interviewing and screening applicants for the Home Sharing Program; checking references; documenting income; generating home sharing referrals for active clients; guiding clients through the process of interviewing and screening potential housemates and completing a Living Together Agreement; and providing mediation services and ongoing support after a home sharing match is made.
With your support in FY 2022-2023, Home Sharing staff will:
Provide housing assistance and community resources to 100-120 individuals who contact our agency for information.
Interview, screen, and provide housing assistance to 60-80 people who live or work in South San Francisco who are in need of a home sharing arrangement.
Place 7 individuals in a new home sharing arrangement.
Provide ongoing follow-up support to 30 residents who entered home sharing matches in previous years.
13. Assessment of Need - South San Francisco: Briefly describe how you determined the need for your program for each specific jurisdiction that you are applying for funds. Identify target population(s) and area(s) served.
Please state the source(s) and date(s) of information. Identify any similar programs in the community.
The City of South San Francisco is a global hub for biotechnology and innovation. Yet, the housing supply in the City has not kept pace with job growth or the Peninsula’s high cost of living. The average rent for an apartment in South San Francisco is $2,832 per month, according to Rentcafé.com. An employee earning minimum wage in the City would need to work 173 hours in a month just to afford this price.
HIP Housing’s Home Sharing Program provides a practical, affordable housing alternative for South San Francisco residents. In FY 2020-2021, program staff:
Provided housing assistance and community resources to 92 individuals in South San Francisco who contacted our agency for information.
Interviewed, screened, and provided housing assistance to 73 South San Francisco residents and 12 individuals working in the City.
Placed 18 individuals in a new home sharing arrangement in South San Francisco.
Provided ongoing follow-up support to 40-50 clients who entered into home sharing matches in previous years.
With your continued support in FY 2022-2023, HIP Housing’s Home Sharing Program will help make South San Francisco a place where everyone can live, work, and thrive.
14. Timeline: Provide a brief timetable for project implementation and achievement of projected goals and how you plan to expend your funds in a timely manner by the end of the fiscal year.
Please note that all program activities are ongoing during the year.
1.) Respond to inquiries received via phone or email: 10-12 inquiries/month 2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 3/8
2.) Interview, screen, and process client applications: 5-6 applications/month from residents of and persons who work in South San Francisco
3.) Search for and provide housemate referrals and community resource information: weekly
4.) Create and send out an e-blast that includes affordable housing waitlist openings and other community resources: 4 times a month
5.) Match income-eligible Home Providers and Home Seekers in a home sharing arrangement: 1-2/month
6.) Facilitate the completion of a Living Together Agreement: 1-2/month
7.) Contact matched Home Sharing clients to provide support, mediation, or connection to community resources: 1- 2/month
8.) Conduct community outreach to raise awareness of the program: 2-3 activities in South San Francisco per month
Expenses are billed quarterly and we disburse funds by the end of the fiscal year.
15. Evaluation: Briefly describe how you will determine and measure the success of your program and whether or not program goals were met? If your program is currently receiving grant funds please describe accomplishments of goals to date.
The Home Sharing Program is evaluated based on the:
Number of clients and households served
Number of intake calls and referrals provided
Number of clients placed in home sharing arrangements
Income level of matched clients
Affordability of housing
Length of time client remains in a home sharing arrangement Year-to-date goals include:
1.) Responded to 62 inquiries from South San Francisco residents
2.) Interviewed, screened, and processed 68 client applications
3.) Searched for and provided housemate referrals and community resource information
4.) Created and sent out 24 e-blasts that included affordable housing waitlist openings and other community resources
5.) Matched 3 income-eligible Home Providers and Home Seekers in a home sharing arrangement
6.) Facilitated the completion of 2 Living Together Agreements
7.) Contacted 32 matched Home Sharing clients on a quarterly basis to provide support, mediation, or connection to community resources
8.) Conducted community outreach:
a. Home Sharing flyers posted at and emailed to: FedEx, Gunther’s Restaurant, Warm Solutions, City Clerk, libraries, YMCA, South San Francisco school districts, faith-based organizations, Magnolia Senior Center, City Council
b. Networking events attended: HOPE IAC, New Beginnings Coalition, Redwood City Interagency Forum, Pacifica Collaborative, Daly City Partnership, San Mateo County Office of
16. Collaboration: Describe partnerships with other organizations/agencies, the nature of the partnership, and how it relates to the proposed project.
Finding a safe, affordable place to live is only one piece of the puzzle for our clients. We have built strong partnerships with a number of organizations that provide a wide variety of resources to those we serve. We, in turn, provide affordable housing information, resources, and opportunities to individuals and families referred to us by other agencies.
We receive Home Sharing Program client referrals from: Able Works, CORE Community Centers, Life Moves, JobTrain, San Mateo County School and Community College Districts, San Mateo County Housing Authority and Human Resource Department, and Star Vista.
Other programs we work closely with include:
• Cal State East Bay and Eastside College Preparatory School – provide interns • CORE Community Centers – provide rent assistance, shelter referrals, etc. • Legal Aid and Project Sentinel – provide legal advice regarding notices to move, rent disputes, etc. • Peninsula Conflict Resolution Center – provides conflict resolution training for Home Sharing Coordinators • Life Moves – provides housing resources for shelter clients and Life Moves staff • smchousingsearch.org – post information about HIP Housing’s Home Providers We also partner with the County Office of Education to advertise housing opportunities for educators by providing content for a webpage on the SMCOE website.
17. Impact: : Discuss any general trends and conditions that have affected or impacted your service levels or 2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 4/8 service populations. For New Applicants – describe what these funds would allow your agency to do that you may not be able to do now. For Continuing Applicants – describe how your program would be impacted without these funds.
This fiscal year, South San Francisco residents have cited high housing and motel costs, homelessness, the need to live close to medical providers or work, overcrowded living conditions, and safety as reasons to home share. A high percentage of Home Seekers need to move from their current housing because their landlord sold the home and left the area, or because the client’s room was needed by a family member. This scenario is especially difficult for older adults who have been in stable housing for years, but are suddenly plunged into a challenging housing market.
An unusually high number of older adults have passed away this year, some of whom have been home sharing through our program for over 20 years. Anecdotally, we know that through home sharing, these older adults were able to age in place, while also receiving companionship and a sense of security.
With funding from the City of South San Francisco, HIP Housing will:
Provide housing assistance and community resources to 100-120 individuals who contact our agency for information.
Interview, screen, and provide housing assistance to 60-80 people who live or work in South San Francisco who are in need of a home sharing arrangement.
Place 7 individuals in a new home sharing arrangement.
Provide ongoing follow-up support to 30 residents who entered home sharing matches in previous years.
The impact of our Home Sharing Program in South San Francisco wil
18. Project Beneficiaries/Quantifiable Measurement: Indicate the expected number of beneficiaries to be served by the program. For each response below please indicate both the number of households and number of individuals. Refer to the San Mateo County Income Limits. a. Indicate the total number of low-income beneficiaries you expect to serve with this program for each jurisdiction application for funding. *Low-income is 80% of Area Median Income or below. See AMI table b. Indicate the total number of beneficiaries you expect to serve with this program in each jurisdiction - regardless of income.
Jurisdiction
a. Number of low-income beneficiaries
to be served per grant jurisdiction
application. **Low-income** is 80% of
Area Median Income or below.
b. All beneficiaries to be served per
grant jurisdiction application
regardless of income
Persons Households Persons Households
Daly City 6 5 8 7
Redwood City 7 6 9 8
City of San Mateo 14 13 16 15
County of San Mateo 30 20 36 24
South San Francisco 7 6 8 7
Totals 64 50 77 61
19. Populations Served: Check the boxes below if they describe a significant population served by your program.
These categories are not considered "presumed benefit" by HUD, and require income verification.
Persons exiting incarceration
Low-income youth
Other Homeless, At-risk of becoming homeless, Seniors
20. Affirmative Outreach:
a. Use the demographics from your previous program year to provide an analysis of the population you serve relative to the demographics in the table. NOTE: If you are a new applicant please provide your best estimation.
Race & Ethnicity
South San
Francisco
Population
South San
Francisco % by
Ethnicity
Low Income by
Ethnicity served
by your Program
Your Program %
by Ethnicity
Total 63,632 100% 7 100%
White and not Hispanic 23,760 37.34% 4 57.14%
White and Hispanic 21,645 34.02% 0.00%
Asian 23,293 36.61% 0.00%
African American 1,625 2.55% 0.00%
2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 5/8 Pacific Islander 1,111 1.75% 2 28.57%
Native American 395 0.62% 0.00%
Other 9,598 15.08% 1 14.29%
b. Based on the percentages that you indicate your organization served describe your efforts to improve affirmative outreach to groups that may be underserved by your program and the result of your efforts:
To ensure that our programs are informed by the populations we serve, we conduct multiple client surveys that provide insight into which aspects of our programs work well and where we can improve. Additionally, our agency is always searching for opportunities that will enable us to share information about our programs with a broader audience via outreach activities to all ethnic and racial groups in San Mateo County. Outreach activities include:
Posted program information at the WTU 1555 Latino Caucus Staff member Laura Moya serves on the Latin X Oye Conference committee Presented to members of the New Beginnings Coalition
Held an in-service training with the San Mateo County Aging & Adult Services Oasis Program Networked with Anamatangi Polynesian Voices and the Center for the Independence of Persons with Disabilities Additionally, Home Sharing Program materials are available in Spanish, English, Mandarin, Cantonese, and Tagalog.
21. Leveraging: Describe your fundraising efforts and additional sources of revenue for this project and your organization. Please state whether any of these fund sources are already committed and in what amount.
HIP Housing operates on a robust and sustainable earned-income model, which allows us to generate a substantial amount of our income through property development and management fees, as well as rent. Today, we generate enough earned income to cover all of our administrative costs.
For FY 2021-2022 to date, we have received support from municipal governments across San Mateo County, as well as foundations and corporations, including:
General Support:
Atkinson Foundation: $15,000
Bank of America: $30,000
BBVA: $5,000
Chan Zuckerberg Initiative: $62,500
David and Lucile Packard Foundation: $75,000
Leslie Family Foundation: $1,000
Mervyn L. Brenner Foundation: $1,500
Sobrato Family Foundation: $90,000
Wells Fargo: $15,000
YWCA of the Peninsula: $15,000
Home Sharing Program:
Bank of the West: $25,000
Mills Peninsula: $35,000
MUFG Union Bank: $7,500
Self Sufficiency Program:
Community Foundation of San Carlos: $6,000
JH Robbins Foundation: $5,000
Sobrato Family Foundation: $150,000
Sunlight Giving: $50,000
At present, we are in the middle of an extraordinarily successful Annual Appeal. In May, we plan a return to our inperson annual fundraising gala, after a two-year hiatus made necessary by the pandemic. Finally, we are considering launching
Staff List
List below key staff members who work on this program
Position Title
Name of Staff
Person
Job Responsibilities Qualifications
Director of Programs Laura Fanucchi Oversees the activities of the Home Sharing Program, including: staffing,
Laura has been part of the
HIP Housing team since
1992. She holds a
2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 6/8 training, volunteer coordination, reporting,
and outreach.
Bachelor’s degree in
psychology from the
University of San Francisco,
and is a graduate of the
Chamber Leadership
Program and Nonprofit
Management Institute. She
is currently Vice President of
the National Shared
Housing Resource Center.
Home Sharing
Program Manager
Laura Moya
Manages Home Sharing staff and special
outreach and collaboration for the
program, and provides support.
Laura holds a BA in
Hispanic Studies with a
Multicultural Studies
concentration. She is a
graduate of a 40-hour
domestic violence training
program, as well as
Toastmasters, the Engaged
Latina Leadership Activists
(ELLA) Program, and the
Chamber Leadership
Program. She is also a
member of the Latina
Coalition of Silicon Valley
and a mentor for the ELLA
Program. Laura is bilingual
in Spanish and English.
Senior Home Sharing
Coordinator (South
County)
Barbara Liedtke
Coordinates South County Home Sharing
activities and conducts outreach for the
area. Provides counseling for clients.
Supervises and provides support to the
North County Home Sharing Coordinator.
Barbara has nearly 30 years
of experience in social work.
She holds a BA from San
Francisco State University
and completed graduate
coursework at Universidad
Iberomericana in Santo
Domingo. She is trilingual in
English, Spanish, and
German.
Senior Home Sharing
Coordinator (MidCounty)Debra Smith
Coordinates Mid-County County Home
Sharing activities and conducts outreach
for the area. Provides counseling for
clients. Supervises and provides support
to the Coastside Home Sharing
Coordinator.
Debra has nearly 20 years
of experience as a Home
Sharing Coordinator. She is
a graduate of the Chamber
Leadership Program and a
Notary Public.
Coastside Home
Sharing Coordinator
Dania Delgadillo
Coordinates Coastside Home Sharing
activities and conducts outreach for the
area. Provides counseling for clients.
Dania holds Bachelor’s and
Master’s degree in Social
Work from San Jose State
University, and has been
part of the Home Sharing
team since 2015. She is
bilingual in English and
Spanish.
North County Home
Sharing Coordinator
Esperanza
Jacuinde
Coordinates North County Home Sharing
activities and conducts outreach for the
area. Provides counseling for clients.
Esperanza joined the Home
Sharing team in January
2020. She holds a
Bachelor’s degree in
Criminal Justice. She has
six years of experience
working with foster youth as
an independent living skills
case manager, facility
manager, and residential
program manager. She is
bilingual in English and
Spanish.
2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 7/8 PROPOSED PROGRAM BUDGET FOR FY 2022-23
South San
Francisco
Total
Jurisdictions
Budget Line Item
Agency
Total
Pgm%
Program
Total
% Requested Pgm% Requested
Labor
North County Coordinator
(EJ)
$57,779 100% $57,779 8% $4,514 8% $4,514
Office Manager & Program
Assistant (SK & BR)
$62,121 100% $62,121 2% $1,043 2% $1,043
South County Coordinator
(BL)
$74,574 100% $74,574 2% $1,165 2% $1,165
Coastside Coordinator (DD) $60,707 100% $60,707 0% $148 0% $148 Accounting/Audit/Controlling $128,928 100% $128,928 1% $1,500 1% $1,500 Program Director $110,033 100% $110,033 0% $529 0% $529 Other Staff Salaries $1,251,911 99% $1,245,112 0% $2,047 0% $2,047 Taxes/Benefits $388,226 98% $380,614 0% $1,054 0% $1,054 Administration $1,082,577 98% $1,061,350 0% $0 0% $0
TOTAL $3,216,856 99% $3,181,218 0% $12,000 0% $12,000
Number of Individual Beneficiaries 8 8
Cost per Individual $1,500.00 $1,500.00
Attachments
1. Resolution authorizing application and designation of signatory, by the Board of Directors
2021-22_HIP_Housing_Signer_Resolution.pdf
2. Proof of 501(c)3 / tax-exempt status
IRS_Determination_Letter_June_7_2006.pdf
3. By-laws HIP_Housing_Bylaws.pdf
4. Articles of Incorporation HIP_Housing_Articles_of_Incorporation.pdf
5. Board roster, including:
Name, Company, Years on Board
Meeting dates for previous 12 months
Number of years allowed for each board term
HIP_Housing_FY_2021-
2022_Board_of_Directors.docx
6. Organizational chart for entire organization HIP_Housing_Org_Chart_1-2-22.pdf
7. Certified financial audit no more that 1 fiscal year old, prepared by a CPA, and:
Management letters (if applicable)
A-122 and A-133 Single Audit (for entities that receive more than $750,000 in federal funding) OR
A letter from your Executive Director or Chief Financial Officer certifying that agency does not receive more than $750,000 in federal funds and is not subject to the Single Audit.
Human_Investment_Project_Inc._HIP_Housing_6-
30-21_DRAFT_Audit.pdf
Kate_Comfort_Harr_audit_certification_letter.pdf
8. The following are required:
Current (FY21-22) Agency Operating Budget
Proposed (FY22-23) Agency Operating Budget
HIP_Programs_Budget_21-22_and_22-23.xlsx
9. Mission Statement Mission_Statement.docx
10. Non-discrimination policy for Staff and Clients Non-Discrimination_Policy.docx
11. Reasonable Accommodations Policy for Staff and
Clients
Reasonable_Accomodations_Policy.docx
2/4/22, 6:45 PM City Data Services - South San Francisco https://www.citydataservices.net/cities/smatca/app2022arc.pl?rpt=C10834&prop=12 8/8
12. Conflict of Interest Policy. (If not available, please indicate when you will submit)
13. Other -
Download All Attachments
Program Manager Signature Katherine Goodman
Date Signed 01/12/2022
Initially submitted: Jan 12, 2022 - 08:53:45
lnternal Revenue Service
Department of the Treasury ' P. O. Box 2508
Date: June 7, 2006 Gincinnati, OH 45201
Person to Contact:
HUMAN INVESTMENT PROJECT INC Ms Bradshaw #31-02167
364 S RAILROAD AVE Customer Service Representative
SAN MATEO CA 94401-4024 Toll Free Telephone Number:
877-829-5500
Federal ldentification Number:
94-2154614
Dear Sir or Madam:
This is in response to your request of June 7, 2006, regarding your organization's taxexempt status. ln August 1972 we issued a determination letter that recognized your organization as exempt from federal income tax. Our records indicate that your organization is currently exempt under section 501(cX3) of the Internal Revenue Code.
Our records indicate that your organization is also classified as a public charity under sections 509(a)(1) and 170(bxl XAXvi) of the Internal Revenue Code.
Our records indicate that contributions to your organization are deductible under section 170 of the Code, and that you are qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the lnternal Revenue Code. lf you have any questions, please call us at the telephone number shown in the heading of this letter.
Sincerely,
fr*Ye-/,,
Janna K. Skufca, Director, TE/GE
Customer Account Services
Amended and Restated Bylaws
March 2015
1. Name
The name of this corporation is Human Investment Project, Inc. (“HIP Housing”).
2. Membership
HIP Housing shall have no members, as defined in Section 5056 of the California Nonprofit Public Benefit Corporation Law, as amended (the “Nonprofit Corporation Law”). HIP Housing may from time to time use the term “members” to refer to persons associated with it, but such persons shall not be members within the meaning of Section 5056 of the Nonprofit Corporation Law.
3. Board of Directors
3.1 Powers
Subject to the provisions of the Nonprofit Corporation Law, Articles of Incorporation, and these Bylaws, HIP Housing’s activities and affairs shall be conducted, and all corporate powers shall be exercised, by or under the direction of the Board of Directors of HIP Housing (the “Board”). Directors shall have no power as individual directors and shall act only as members of the Board.
3.2 Number of Directors
The number of authorized directors of HIP Housing shall be not less than 11 nor more than 25, with the exact number of authorized directors to be fixed by resolution of the Board from time to time.
3.3 Qualification of Directors
No more than forty-nine percent (49%) of the directors serving on the Board may be interested persons, as defined in Section 5227 of the Nonprofit Corporation Law.
However, any violation of this Section 3.3 shall not affect the validity or enforceability of any transaction entered into by HIP Housing.
3.4 Election and Term of Office
The Board shall elect directors to serve for three-year terms. Election shall require approval of a majority of directors present at a meeting at which a quorum is present.
A director may not serve for more than three (3) consecutive terms, unless otherwise determined by the Board. However, a director may be elected to the Board to serve for any number of additional terms so long as there is at least a one-year break between sets of three (3) consecutive terms. An in-office director shall hold office until a successor has been elected and duly qualified or until that director’s earlier resignation or removal in accordance with these Bylaws. To the extent practicable, the directors’ terms shall be established such that approximately one-third of the in-office directors’ terms expire each year.
3.5 Vacancies
A vacancy or vacancies on the Board shall exist in the event that the actual number of directors is less than the authorized number for any reason. In addition, the Board may declare by resolution a vacancy in the office of any director who has been declared of unsound mind by an order of court, convicted of a felony, or found by final order or judgment of any court to have breached a duty under Article 3 of Chapter 2 of the Nonprofit Corporation Law.
2 3.6 Resignation
Except as provided below, any director may resign at any time by giving written notice to the President or the Executive Director (as each is defined in Section 6.1). The resignation shall take effect upon receipt of notice or at any later time specified in the notice. Unless otherwise specified in the notice, the resignation need not be accepted to be effective. If a director’s resignation is effective at a later time, the Board may elect a successor to take office as of the date when the resignation becomes effective.
Except on notice to the Attorney General of California, no director may resign if HIP Housing would be left without a duly elected director or directors.
3.7 Removal
A director may be removed from office at any time, with or without cause, by approval of at least two-thirds of the directors then in office, provided that a quorum is present.
No reduction in the authorized number of directors shall have the effect of removing any director before that director’s term of office expires unless the reduction also provides for the removal of that specified director in accordance with these Bylaws and the Nonprofit Corporation Law.
3.8 Filling Vacancies
Vacancies on the Board may be filled, at a regular or special meeting of the Board, by approval of the Board or, if the number of directors then in office is less than a quorum, by (i) unanimous written consent of the directors then in office, (ii) a vote of a majority of the directors then in office at a meeting held with notice in accordance with Section
4.4 or waiver of notice in accordance with Section 4.6, or (iii) a sole remaining director.
A director elected to fill an existing vacancy shall hold office for the unexpired portion of the term, or until his or her death, resignation, or removal from office.
3.9 Compensation and Reimbursement
Directors shall not receive any compensation for their services as directors. The Board may authorize the advancement or reimbursement to a director of actual reasonable expenses incurred in carrying out his or her duties as a director.
3.10 Conflict of Interest Policy
The Board shall adopt a policy that requires directors and officers to disclose interests that constitute or could result in a conflict of interest (the “Conflict of Interest Policy”).
The Conflict of Interest Policy shall also specify, in accordance with Sections 5233 and 5234 of the Nonprofit Corporation Law, the procedures the Board will follow in reviewing transactions that constitute a self-dealing transaction under Section 5233 of the Nonprofit Corporation Law or could otherwise involve a conflict of interest. The Board shall monitor compliance with the Conflict of Interest Policy.
4. Board Meetings
4.1 Regular Meetings
Regular meetings of the Board shall be held at such dates, times, and places as determined by the Board. Each year, the Board shall hold at least one meeting, and shall hold at least one meeting the agenda for which includes filling vacancies on the Board, if any, arising from expiration of terms.
4.2 Special Meetings
Special meetings of the Board, for any purpose, may be called at any time by the President, the Executive Director, or any two directors. The meeting shall be held at a place within California as designated by the person or persons calling the meeting, and in the absence of such designation, at the principal office of HIP Housing. 3 4.3 Telephone and Electronic Meetings
Any meeting may be held by conference telephone, electronic video screen, or similar communication equipment, as long as all directors participating in the meeting can hear one another. All such directors shall be deemed to be present in person at such a meeting.
4.4 Notice
Regular meetings may be held without notice if the date, time, and place of the regular meetings are fixed by action of the Board. Notice of the date, time, and place of a special meeting, or of a regular meeting if not designated by the Board, shall be given to each director by one of the following methods: (a) upon four (4) days’ notice if by first-class mail; or (b) forty-eight (48) hours before the meeting if (i) by personal delivery of written notice; (ii) by telephone, whether directly to the director, to a person at the director’s office who would reasonably be expected to communicate that notice promptly to the director, or by voice-messaging system; (iii) by facsimile transmission; or (iv) by e-mail. All such notices shall be given or sent to the director’s address, e-mail address, or telephone number as shown on the records of HIP Housing. The notice shall state the date and time of the meeting, and the place if other than the principal office of HIP Housing. It need not specify the purpose of the meeting.
4.5 Voting
Each director present and voting at a meeting shall have one vote on each matter presented to the Board for action at that meeting. No director may vote at any meeting by proxy.
4.6 Waiver of Notice
Notice of a meeting need not be given to any director who signs a waiver of notice, a written consent to the holding of the meeting, or an approval of the minutes of the meeting, whether before or after the meeting, or attends the meeting without protesting the lack of notice, either before or at the commencement of the meeting. The waiver of notice or consent need not specify the purpose of the meeting. All such waivers, consents, and approvals shall be filed with the corporate records or made a part of the minutes of the meetings.
4.7 Quorum
A majority of the total number of directors then in office (but no fewer than two directors or one-fifth of the authorized number of directors, whichever is greater) shall constitute a quorum. An action taken or decision made by a majority of the directors present at a duly held meeting at which a quorum is present shall be the act of the Board, except as provided by Section 5211 of the Nonprofit Corporation Law or as elsewhere provided in these Bylaws. No business shall be considered by the Board at any meeting at which a quorum is not present. The directors at a duly held meeting at which a quorum is initially present may continue to transact business, despite the departure of directors, if any action taken or decision made is approved by at least a majority of the required quorum for that meeting.
4.8 Adjournment
A majority of the directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. Notice of adjournment to another time or place need not be given unless the original meeting is adjourned for more than twenty-four (24) hours, in which case notice shall be given, before the time of the adjourned meeting, to the directors who were not present at the time of the adjournment. 4 4.9 Action Without a Meeting
Any action that the Board is required or permitted to take may be taken without a meeting if all directors, individually or collectively, consent in writing to the action; provided that the consent of any “interested director” as defined in Section 5233 of the Nonprofit Corporation Law shall not be required for approval of that transaction. Such action by written consent shall have the same force and effect as a unanimous vote of the directors. All such consents shall be filed with the minutes of the proceedings of the Board.
5. Committees
5.1 Board Committees
The Board may, by resolution of a majority of directors then in office, provided that a quorum is present, create, and appoint members to, one (1) or more committees (“Board Committees”), each consisting of two (2) or more directors, to serve at the pleasure of the Board. The Board shall create an audit committee if required by the California Nonprofit Integrity Act of 2004 (the “Nonprofit Integrity Act”). Only directors may serve on any Board Committee. The Board may appoint one (1) or more directors as alternate members of any such Board Committee, who may replace any absent Board Committee member at any meeting of the Board Committee. Any such Board Committee, to the extent provided in the Board resolution, shall have all the authority of the Board, subject to the limitations set out in Section 5212 of the Nonprofit Corporation Law.
5.2 Action of Board Committees
Except as may be contemplated by resolution of the Board, meetings and actions of Board Committees shall be governed by, held, and taken in accordance with the provisions of these Bylaws concerning meetings and other Board actions. Each Board Committee shall keep minutes of each meeting, which shall be kept and filed with the corporate records.
5.3 Advisory Committees
The Board may create and appoint individuals to one (1) or more advisory committees (“Advisory Committees”), each consisting of two (2) or more directors, non-directors, or a combination of directors and non-directors. Advisory Committees may not exercise the authority of the Board to make decisions on behalf of HIP Housing. Advisory Committees shall be restricted to making recommendations to the Board or Board Committees and implementing Board or Board Committee decisions and policies under the supervision and control of the Board or Board Committee. The Board may, at any time, revoke or modify any or all of the responsibilities assigned to the Advisory Committee.
5.4 Honorary Board
The Board may create and appoint individuals to one or more honorary boards, advisory councils, or similar bodies (each, an “Honorary Board”), consisting of persons who are not officers or directors of HIP Housing, to serve at the pleasure of the Board in support of HIP Housing’s mission. Any such Honorary Board shall act only in an advisory capacity to the Board, shall have no legal authority to act for HIP Housing, and shall clearly be held out as an “honorary board.” The Board may, at any time, revoke or modify any or all of the responsibilities assigned to the Honorary Board. 5 6. Officers
6.1 Officers
The officers of HIP Housing shall be a president (the “President”), a chief executive officer who shall be called the executive director (the “Executive Director”), a secretary (the “Secretary”), a treasurer (the “Treasurer”), any number of vice-presidents (each a “Vice-President”), and such other officers as the Board may determine. The President must be a director. Any number of offices may be held by the same person, except that neither the Secretary nor the Treasurer may serve concurrently as either the Executive Director or the President. Any one of these offices may be held by two individuals, in which case any reference to the singular office shall refer to both individuals holding the office.
6.2 Election and Term
The Executive Director shall serve in such office for as long as he or she is employed by HIP Housing as Executive Director. The other officers of HIP Housing shall be elected by the Board at any time for a one-year term and shall serve at the pleasure of the Board, subject to the rights, if any, of any officer under any contract of employment.
6.3 Resignation
Any officer may resign at any time by giving written notice to the President or Executive Director. The resignation shall take effect upon receipt of notice or at any later time specified in the notice. Unless otherwise specified in the notice, the resignation need not be accepted to be effective. Any resignation shall be without prejudice to the rights, if any, of HIP Housing under any contract to which the officer is a party.
6.4 Removal
Any officer may be removed with or without cause by the Board or by any officer on whom the Board may confer that power of removal, without prejudice to any rights of an officer under any contract of employment.
6.5 Vacancies
A vacancy in any office for any reason shall be filled in the manner prescribed in these Bylaws for regular appointments to that office.
6.6 President
The President shall preside at all meetings of the Board, if present, and shall exercise and perform such other powers and duties as the Board or these Bylaws may prescribe.
6.7 Vice-President
The Vice-President shall have such powers and perform such duties as the Board or these Bylaws may prescribe. In the absence of the President, a Vice-President selected by the Board shall preside at Board meetings.
6.8 Executive Director
The Executive Director shall be the general manager and chief executive officer of HIP Housing and shall supervise, direct, and control HIP Housing’s activities and affairs.
The Executive Director shall have such other powers and duties as the Board or these Bylaws may prescribe. Unless the Board is in executive session or unless otherwise directed by the Board or relevant Board committee, the Executive Director may attend all Board and Board Committee meetings.
6 6.9 Secretary
The Secretary shall supervise the maintenance of HIP Housing’s Articles of Incorporation, Bylaws, and minutes and records of the proceedings of the Board and its committees, and the giving of notices as may be proper or necessary. The Secretary shall have such other powers and duties as the Board or these Bylaws may prescribe.
6.10 Treasurer
The Treasurer shall be the chief financial officer of HIP Housing and shall lead the Board’s oversight of the charge and custody of all funds of HIP Housing, the deposit of such funds in the manner determined by the Board, and the keeping and maintaining of adequate and correct accounts of HIP Housing’s properties and business transactions, and shall render reports and accountings as required by law, these Bylaws or by the Board. The Treasurer shall have such other powers and duties as the Board or these Bylaws may prescribe.
6.11 Compensation Review Policy
The Board shall adopt a policy that sets forth guidelines for the determination, review and approval of the compensation of its officers and key employees, in accordance with applicable law.
7. Indemnification and Insurance
7.1 Definitions
For purposes of this Section 7, “Agent” means any person who is or was a director, officer, employee, or other agent of HIP Housing, or is or was serving at the request of HIP Housing as a director, officer, employee, or other agent of another foreign or domestic corporation, partnership, joint venture, trust, or other enterprise, or was a director, officer, employee, or agent of a predecessor corporation of HIP Housing or another enterprise at the request of such predecessor corporation; “Proceeding” means any threatened, pending, or completed action or proceeding, whether civil, criminal, administrative, or investigative; and “Expenses” includes, without limitation, attorneys’ fees and any expenses incurred in establishing a right to indemnification under Section 7.2.
7.2 Right of Indemnity
To the fullest extent permitted by law and as provided by these Bylaws, HIP Housing may indemnify any person who was or is a party or is threatened to be made a party by reason of the fact that such person is or was an Agent of HIP Housing, against all Expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with the Proceeding.
7.3 Approval of Indemnity
On written request to the Board by any Agent seeking indemnification, to the extent that the Agent has been successful on the merits, the Board shall promptly authorize indemnification in accordance with Section 5238(d) of the Nonprofit Corporation Law.
Otherwise, the Board shall promptly determine, by a majority vote of a quorum consisting of directors who are not parties to the Proceeding, whether the applicable standard of conduct set forth in Section 5238(b) or Section 5238(c) of the Nonprofit Corporation Law has been met and, if so, may authorize indemnification. 7 7.4 Advancement of Expenses
The Board may authorize the advance of Expenses incurred by or on behalf of an Agent in defending any Proceeding, before final disposition of the Proceeding, if (i) the Board finds that the requested advances are reasonable in amount under the circumstances, and (ii) the Agent submits a written undertaking to repay the advance unless it is ultimately determined that the Agent is entitled to be indemnified by HIP Housing for those Expenses.
7.5 Insurance
HIP Housing shall have the right to purchase and maintain insurance on behalf of any Agent against any liability asserted against or incurred by the Agent in such capacity or arising out of the Agent’s status as such, whether or not HIP Housing would have the power to indemnify the Agent against such liability under this Section 7, provided, that HIP Housing shall not have the power to purchase and maintain such insurance to indemnify any Agent of HIP Housing for a violation of Section 5233 of the Nonprofit Corporation Law.
8. Records, Reports and Communications
8.1 Inspection by Directors
Every director shall have the right at any reasonable time to inspect HIP Housing’s books, records, documents, and physical properties. The inspection may be made in person or by the director’s agent or attorney. The right of inspection includes the right to copy and make extracts.
8.2 Financial Reporting
HIP Housing shall produce and distribute the financial and other reports required by the Nonprofit Corporation Law, including, without limitation, the annual report required by Section 6321 and the statement of transactions or indemnification required by Section 6322, and if required, produce and make publicly available the financial statements required by the Nonprofit Integrity Act.
8.3 Fiscal Year
The fiscal year of HIP Housing shall end on June 30, unless otherwise determined by the Board.
8.4 Electronic Transmissions
Unless otherwise provided in these Bylaws, and subject to any guidelines and procedures that the Board may adopt from time to time, the terms “written” and “in writing” as used in these Bylaws (including, without limitation, the written consents contemplated by Section 4.9) include any form of recorded message in the English language capable of comprehension by ordinary visual means, and may include electronic transmissions, such as facsimile or e-mail; provided that (i) HIP Housing has obtained a valid written consent from the recipient to the use of such means of communication; (ii) for electronic transmissions to HIP Housing, HIP Housing has in effect reasonable measures to verify that the sender is the individual purporting to have sent such transmission; and (iii) the transmission creates a record that can be retained, retrieved, reviewed, and rendered into clearly legible tangible form.
9. Gifts, Grants and Contracts
9.1 Gifts
The Board or its designee may accept on behalf of HIP Housing any contribution, gift, bequest, or devise for the charitable purposes of HIP Housing. 8 9.2 Grants
The Board shall exercise itself, or delegate, subject to its supervision, control over grants, contributions, and other financial assistance provided by HIP Housing.
9.3 Deposits
All funds of HIP Housing shall be deposited to the credit of HIP Housing in such banks, trust companies, or other depositories or agency organizations as the Board may authorize.
9.4 Contracts
The Board may authorize by Resolution any officer(s) or agent(s), in the name of and on behalf of HIP Housing, to enter into any contract or execute any instrument. Any such authority may be general or confined to specific instances, or otherwise limited.
In the absence of any action by the Board to the contrary, the President and the Executive Director are each authorized to execute such instruments on behalf of the corporation.
9.5 Payment of Money
Except as otherwise specifically determined by resolution of the Board, or as otherwise required by law, checks, drafts, promissory notes, orders for the payment of money, and other evidence of indebtedness of HIP Housing may be signed by the President, the Executive Director, or the Treasurer.
10. Office
10.1 Principal Office
The principal office of HIP Housing for the transaction of its business shall be located in San Mateo County, California, or in such other place as may be specified by resolution of the Board.
10.2 Other Offices
HIP Housing may also have branch or subordinate offices at other places, within or outside California, as the Board may determine.
11. Amendment
Except as otherwise provided by law, these Bylaws may be amended or repealed and new bylaws adopted by approval of the Board.
Amended and restated on:_March 17, 2015________________ r''\,. +'4/ b i
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i\R,f TCLES OF II{CORPOITATIoN
OF
iIullAN_ IYIIEST]IENT PROJ ECT OF TIIE .P-ENINSIILA,j,, INC.i., :, " "-'..'
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The name of this corporatiox shall be:
PROJECT OF TFIE PENINSULAT I](C.
HU}IAN U\IVEST}IDNT
II
The purposes for rvhich this corporatio; .is forrued are:
- (a) Tire specific and prinary pu.poses are to alleviate and ir;rrove the coadition of the needl', underprivileged and physically, and mentalll'-handicapped persons, regardless of their a3e, ethnic backgrounrl, sex, political or econonic condition;
(b) The generaJ. purposes and povers are:
(f) To conbat comnunity deterioration and to lessen
neighborl'rood tensions, brl' meeting the needs of the needy an!,/or handicapped persons not then being met by any private or .governrnenta I agclrcy i (2i 'fo e-ctablish and maintain communication with, ancl coordination of, professional groups for the purpose of identifying and setting priorities in the cornnunity concerning unnret neods of the needy and the handicapped;
(r) To conduct an eCucational and informational carrpaign in tlre corrrnunity at large concerning unmet cur-rent problems of the needy and the handicapped;
(4) To foster, pronrote or arrange for community participation in plans, policies and activities aimerl at alleviating and ingrroving the condition of the neecly or. ilre handicapped; (5) To receive funds from private or goverrrmental sources for
of
the purpoge of plannlng, maintalning, and c;rrryJ.ng out programs service, on a non-profit basis, to ilre needy or handicapped -lF tffl5-{l OK
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'r'lrosc necds are not ti'ren being net byanyprivate or .governmantal agency;
( 6 ) To solicit
, collect
, reccive, trcquire, trold and
invest rnoney and property, both real anct pe19onal, -;.nclucling,,_Tilney, , and property received b.r gift, contribution, bequest, or devise'; ',,,. to selr and convert property, boilr real and personar, into cash; and to use tire funds of this corporation and the proceeds, inco'e, rents, issues, and profits derived from any property of tlris corporation for anv of the puqposes for which this corporation is formedl
Q) To purchaser,acqrrire, oun, hold, "eti, assign,
transfer, dispose of, mortgage, pledge, hypothecate, or enctunber, and to deal in shares, bonds, notes, debeutures, or other securities or evidences of indebtedness of any person, firm, corporation, or association and, whire the ordner or holder of them, to exercise al.l rights, powers, and priwileges of ownershipl
(B) To purchase or acquire, owrr, hold, use, lease
(either as lessdr or ressee), sell, exchange, assign, convey, disPose ofr mortgage, hypothecate, or encumber real and personal property;
(9) To bo*ow money, incur indebtednes.s, and to secure
repa)nnerrt by nortgaser oredge, deed of trust, or other hypothecation of property, both real and personall (fO) ?o enter into, make, perform, and carry out con_
tracts of every kind for any larcful purpose without rimit on amountr rrith any person, firm, association or corporation, rmrnicipalityr county, parish, state, territory, government (foreign or domestic), or other municipar or go'ernmentar subdivisionl and (fl) To do aIJ. things necessary, e:cpedient, or appro_ priate to tha accouplishment of any of the obJecta and purposes for rrhich thig corporation is forrred.
-2-
Notrvittrstanding any of thc above statements of purposes and polrers, this corporation shall not on.qage in actlvities that in themselves are not in furtlrerance of the purposes set forth in subparagraph (a) of ttris Article If.
IrI
This corporation is organized pursuant to the General Nonprofit Corporation Larv of the State of Ca1ifornia.
The countv
transaction of
Iiateo Corrrrt;r,
IV
in this state rvhere the principal office for the
business of this corporation is located is San.
The names and addresses cf
the capacity of directors until
are:
l{ilson Brarnch
Kate Bagley
Cynthia }IcKenna
Robert l{ilkinson
I'larian lJranch
Theodore Lude
lti.riam lfaybur
persons rYho are to act in
selection of their successors
6JI gdna l{ay
San l.lateo, Ca. 94402
2tlto Fillmore Street
San Francisco, Ca. 94L1.5
21O Chesterton P1ace
San Mateo, Ca. 944Oi.
273J iloLLand
San Mateo, Ca.
6JI Edna llay
San Mateo, Ca. 944C2
L76 F Street
Rcdwood City, Ca. 94063
544 lfav'rly Street
Ilenlo Park, Ca. 94025
E,frg
the
t:
VI
The number and qualifications of members of the corporatLon, the different clasees of nrembership, J.f anyr and the propertyt the voting, and othor rights and prJ.viloges of oembersr and thoir Iiability to dues or assessoents and tlre method of collection thereof, shall be as set forth in the 'rrylaws.
vIr
This corporatiorr is not orgarnized, nor shull it be operated for pecuniary gain or profitr and it does not contenplate the distribution of gains, profits or dividends to the nambers thereof and is organized solely for non-profit purposes. The propertyt assets, profits and net income of this corporation are irrewocably dedicated to charitable purposss, and no part of the profits or net income of this corporation shall ever inure to the benefit of any d.irector, officer, or menber thereof or to the benefit of'any private sharehold,e; or individual-. Upon the dissolution or rvinding up of this corporationl its assets remaining after payment ofr or provision foi'payment of, aII debts and liabilities of this corporation, shall be distributed to a non-profit fund, founrl::cion or corporaiion, that is or.ganized and operated ezsrusivel-v for charitabl.: Durposes and that lras establfsired it: tax e:<empt, stattts under Section 2iO7 Id of t,'re Ilewcnue an'! l'a:<ation Codo a::rilor Section 5o1(c)(3) of the lnternal Revenue Ccde, or successor statutes tirereto. 'ff tlris corporation holds an'r assets in trustt suclr assets sha}l be clisposed of in such manner as may be di-:,'ected iry dccreee of the Superior Court of the coun+-;r in r.rlrj.ch this cor'- poration's principal office is located, upcn petition tlrereior by tlrc j.tLorney ilener.rl or by arDrperson concerned in tlre liquidati.on.
Iii iiITliOSS t'jitiftlriOlr r r{e, the urirJcr:rgnccl , llein.q tire itr.,rsons
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named above as the first directors, have executed these Artj.cles of Incorporatiorr ttris ; t.i'r-st,.., ZIL , 1972.
l1^-, nu.. Lti a-, l-a,
MIRIAM ITIAYBUR
STATD OF CALIFORT\'IA
co[niTY oF sAN ]rA?Do
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)ss
)
tary
tate of
for
Cali.fornia
On this @r L9?2, before me, the undersigned,
a Notary Public, personally appeared, I'JILSON BRANCII , KATE BAC.LEY, CYNTHIA McKENNAT ROBERT IfILKINSON, IARfAN BITANCH, THEODORE LUDD, and MIRIAIvI lfAYIl[m, knolrn to me to be the persons whose names are subscribed to these Articles of Incorporation, and acknowledged to me that tirey executed them.
OFFICTAL SEAL
WOLFFRED BAUER
NOTARY PUBLIC. CALIFORNIA
SA.N MATEO COUNTY
lly Commlssion Erph es !an. S, 197 3
nSWest 37llr Awnue, San Mateo, Calif. 94403
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cERrrprcAr' pu.suArr ro
flurnan f nve-qtment pro iect , I nc.
, A California
corporation, nakea the following ecetcnent!
( I ) The comprete addreaa of ite office in thie state wherein any entity deeignating it ag agent may be served with proceae ie:
tJuman Invetsiment prcject, frrc. 364 South .Rai lroacl r..ie.
San Mateo, Ct, 944OL
(2) The name of each person employed by it at guch
'.,'hom it authorizee the delivery of a copy of any auch Lois l.1men, Executive f irebtor
(3)
- r connents
thereof to such person at the address designated shall
de!.ivery of any such copy to it, as such agent.
HIJMAN INVESTT-{ENT PROJECT, INC.
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gscTror t505, cA|.tpoRiltA coRgOnATtOlfS coDE
office to
procesa is:
that delivery
const itute
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Ann Madsen, President
Board of Directors
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. 2' Artlolc I of thc Artlclee of hooryoratlon of thlr oorgnrrgon h amended to read er followe:
nrhc tqlo g{lttr eorporatron rha[ ho: HUMAN INvEgrMEr{T PROJECT. IIIC.N 8' Tho lorcaolng Amaadment of Artlelu of lncorporeilon har becn duly apgrovcrd by the Board of Dlrectorr.
4, The crrporailon has no nsnb€n.
Ife further declare under penalty of porJury under the laws ol ths state of callfornla that the matteru s€t forth In thb cortltieats arc true and aomect of orn own knosledge.
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DATBD:
HIP Housing (Human Investment Project, Inc.)
Board of Directors 2021-2022
Board members may serve a nine-year term.
One-year extensions may be granted on a case-by-case basis.
Mr. Aaron Aknin Ms. Rocsana Enriquez
Principal Self Sufficiency Program graduate
Good City Company Board term began 9/2019
Board term began 3/2021
Ms. Kalah Espinoza
SECRETARY VP, Multifamily, Capital Markets
Mr. Joshua Amoroso Colliers International
Executive Vice President Board term began 9/2019
Lockehouse Retail Group, Inc.
Board term began 9/2019 VICE PRESIDENT
Ms. Meris Ota
Mr. Ian Bain Vice President
Vice President, Corporate Communications Project Management Advisors [24]7.ai Board term began 9/2016
Board term began 10/2021
Ms. Carolyn Moore
Ms. Lauren Boro Chief People Officer
Real Estate Attorney InfluxData
Board term began 9/2018 Board term began 9/2015
Ms. Sophia Brink PRESIDENT
Legislative Aide/Project Manager Ms. Shelley Pavela
Office of San Mateo County Supervisor David Canepa Project Manager Board term began 10/2021 Kaiser Permanente
Board term began 9/2012
Ms. LaTisa Brooks
Principal/General Manager Mr. Craig Simmons
Piccadilly Catering & Event Solutions Head of People
Board term began 3/2021 Jupiter Intelligence
Board term began 9/2021
TREASURER
Ms. Nancy Bush Dr. Jennifer Taylor-Mendoza
Senior Vice President President
Beacon Business Bank College of San Mateo
Board term began 9/2017 Board term began 6/2015
Ms. Lisa Diaz Nash
Consultant
Consumer Financial Services/Internet Services
Board term began 3/2021
HIP Housing (Human Investment Project, Inc.)
Board of Directors Meeting Dates, 2021
Tuesday, January 26th, 2021
Tuesday, March 23rd, 2021
Tuesday, May 25th, 2021
Tuesday, June 22nd, 2021
Tuesday, September 28th, 2021
Tuesday, November 18th, 2021
Board Directors
1 Kate Comfort Harr
Executive Director
4 Ghion Dessie
Controller
5 Laura Fanucchi
Director of Programs
5 Katherine Goodman
Senior Fund Development Manager
2 Steven McDonald
VP Property Management
8 Sergio De Leon
Senior Staff Accountant
1 Allan Ocon
Senior Accountant II
2 Katie McDonald
People and Culture Manager
Norma Quiroz
Compliance Officer
Marcy Zamora
Accounting Clerk
Shirley Fok
Self Sufficiency Program Director
2 Laura Moya
Home Sharing Program Manager
3 Daniel Barerra
Community Outreach Specialist
Susan Kallstrom
Office Manager
Suyin Nichols
Resident Services Coordinator
Avneet Bassi
Marketing and Communications A…
Christopher Sturken
Events Coordinator
Jana Cook
Property Manager
1 Jabbar Khan
Property & Maintenance Manager
4 Mario Sanchez
Property Manager
1 Yvette Hackworth
Office Manager
Zeina Hegab
Assistant Property Manager
Nori Jabba
Compliance and Business Develop…
Veronica Satizabal
Property Supervisor
Shaniecia Scott
Assistant Property Manager
Carlos Castro
Staff Accountant
Jessie Huang
Senior Staff Accountant
Dinah Santos
Staff Accountant
Regina Greissinger
Self Sufficiency Program Administ…
James Simmons
Self Sufficiency Program Client Se…
Debra Haynes-Smith
Senior Home Sharing Coordinator …
1 Barbara Liedtke
Senior Home Sharing Coordinator …
1 Bessie Rivera
Home Sharing Assistant
Larry Ma
Maintenance Technician
Derek Brantigan
Maintenance Technician
Otto Morales
Maintenance Technician
Alberto Pasache
Maintenance Technician
Cesar Ramirez
Maintenance Technician
James Illingworth
Maintenance Technician
Dania Delgadillo
Home Sharing Coordinator
Esperanza Jacuinde
Home Sharing Coordinator
HUMAN INVESTMENT PROJECT, INC.
A California Nonprofit Public Benefit Corporation
FINANCIAL STATEMENTS
AND INDEPENDENT AUDITOR’S REPORT
June 30, 2021 and 2020
HUMAN INVESTMENT PROJECT, INC.
FINANCIAL STATEMENTS
June 30, 2021 and 2020
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 3
FINANCIAL STATEMENTS
Statements of Financial Position 5
Statements of Activities 6
Statements of Functional Expenses 7
Statements of Cash Flows 8
Notes to Financial Statements 9
SUPPLEMENTARY INFORMATION
Supplementary Information 22
Supplementary Information Required by HCD 27
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed
In Accordance With Government Auditing Standards 32
Certification of Officers and Management Agent 34
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
Human Investment Project, Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of Human Investment Project, Inc., a California non-profit public benefit corporation, which comprise the statements of financial position as of June 30, 2021 and 2020, 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 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with 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.
Those standards require that we plan and perform the audits 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 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 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 on the 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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Human Investment Project, Inc. as of June 30, 2021 and 2020, and the changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
INDEPENDENT AUDITOR’S REPORT (Continued)
Other Matters
Emphasis of Matter
The financial statements of Human Investment Project, Inc. have been prepared without combining the financial statements of related entities under common control. Combined financial statements will also be issued and those statements are the general-purpose financial statements.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information, as required by the California Department of Housing and Community Development and the California Housing Finance Agency, 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 directly 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 fairly stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 3, 2021 on our consideration of Human Investment Project, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Human Investment Project, Inc.’s internal control over financial reporting and compliance.
Lafayette, California
December 3, 2021
The accompanying notes are an integral part of these financial statements. 5 HUMAN INVESTMENT PROJECT, INC.
STATEMENTS OF FINANCIAL POSITION
June 30, 2021 and 2020
Current assets
Cash and cash equivalents $ 595,543 $ 628,945
Designated cash and deposits, current portion (Note B) 111,217 120,124 Investments - marketable securities (Note C) 3,250,741 2,869,877 Tenant rents and other receivables 37,418 56,356
Grants and contracts receivable 171,478 54,038
Receivable from affiliates 90,791 64,093
Prepaid expenses 121,673 77,762
Total current assets 4,378,861 3,871,195
Other assets
Designated cash and deposits, net of current portion (Note B) 319,932 633,393 Property and equipment, net (Note D) 1,191,600 1,234,972 Investment in partnerships (Note E) 68,591 169,365
Notes receivable, including interest (Note F) 9,402,428 9,241,364 Total other assets 10,982,551 11,279,094
Total assets $ 15,361,412 $ 15,150,289
Current liabilities
Accounts payable and accrued expenses $ 248,266 $ 186,498 Payable to affiliates 5,570 4,821
Tenant security deposits 14,483 19,171
Total current liabilities 268,319 210,490
Long-term liabilities
Note payable (Note G) 393,242 357,900
Deferred notes payable (Note H) 833,156 833,156
Accrued interest - notes payable 119,160 124,507
Total long-term liabilities 1,345,558 1,315,563
Total liabilities 1,613,877 1,526,053
Net assets
Net assets with donor restrictions (Note I) 389,911 572,261 Net assets without donor restrictions 13,357,624 13,051,975 Total net assets 13,747,535 13,624,236
Total liabilities and net assets $ 15,361,412 $ 15,150,289
LIABILITIES AND NET ASSETS
2021 2020
ASSETS
The accompanying notes are an integral part of these financial statements. 6 HUMAN INVESTMENT PROJECT, INC.
STATEMENTS OF ACTIVITIES
Years Ended June 30, 2021 and 2020
Net assets without donor restrictions
Support and revenue
Support
Government grants and contracts $ 449,602 $ 398,054
Contributions from affiliates 704,649 743,307
Grants, contributions and fundraising 754,318 468,691
Net assets released from donor restrictions 690,850 1,397,429 Total support 2,599,419 3,007,481
Revenue
Rental property revenue 220,203 215,005
Supportive services fees 32,997 38,248
Asset management fees 53,428 54,404
Interest and investment income 758,204 264,887
Gain upon debt extinguishment 357,900 -
Miscellaneous income (loss) 5,553 (6,323)
Total revenue 1,428,285 566,221
Total support and revenue 4,027,704 3,573,702
Expenses
Program services
Rental property operations 179,049 156,130
Supportive services programs 2,465,456 2,197,790
Fundraising 634,464 550,415
Management and general 358,086 334,260
Unallocated payments to affiliates 85,000 130,000
Total expenses 3,722,055 3,368,595
Change in net assets without donor restrictions 305,649 205,107 Net assets with donor restrictions
Grants, contributions and fundraising 508,500 1,094,180 Net assets released from donor restrictions (690,850) (1,397,429) Change in net assets with donor restrictions (182,350) (303,249) Total change in net assets 123,299 (98,142)
Net assets - beginning of year 13,624,236 13,722,378
Net assets - end of year $ 13,747,535 $ 13,624,236
2021 2020
The accompanying notes are an integral part of these financial statements. 7 HUMAN INVESTMENT PROJECT, INC.
STATEMENTS OF FUNCTIONAL EXPENSES
Years Ended June 30, 2021 and 2020
Total
Expenses
Salaries, payroll taxes, and benefits $ 1,481,097 $ 24,043 $ 435,112 $ 331,387 $ - $ 2,271,639 Rent expense 188,759 - 61,605 15,401 - 265,765
Administrative expenses 627,628 28,566 60,620 10,295 - 727,109 Utilities - 29,142 - - - 29,142
Operating and maintenance 2,852 47,410 - - - 50,262
Taxes and insurance 12,137 4,291 4,012 1,003 - 21,443
Depreciation 35,741 30,879 - - - 66,620
Interest and other financial expenses - 11,918 - - - 11,918 Resident service expenses 117,242 2,800 - - - 120,042
Fundraising expenses - - 73,115 - - 73,115
Donation to affiliate - - - - 85,000 85,000
Total expenses $ 2,465,456 $ 179,049 $ 634,464 $ 358,086 $ 85,000 $ 3,722,055 2021
Supportive
Services
Program Services
Rental
Properties
Unallocated
Payments to
Fundraising Affiliates
Management
and General
Total
Expenses
Salaries, payroll taxes, and benefits $ 1,275,544 $ 22,090 $ 383,206 $ 284,181 $ - $ 1,965,021 Rent expense 180,802 - 59,037 14,759 - 254,598
Administrative expenses 586,186 23,132 69,734 35,042 - 714,094 Utilities - 25,967 - - - 25,967
Operating and maintenance 1,727 30,089 - - - 31,816
Taxes and insurance 3,263 11,207 1,114 278 - 15,862
Depreciation 33,026 31,477 - - - 64,503
Interest and other financial expenses - 11,918 - - - 11,918 Resident service expenses 117,242 250 - - - 117,492
Fundraising expenses - - 37,324 - - 37,324
Donation to affiliate - - - - 130,000 130,000
Total expenses $ 2,197,790 $ 156,130 $ 550,415 $ 334,260 $ 130,000 $ 3,368,595 Payments to
Fundraising and General
2020
Affiliates
Program Services Unallocated
Supportive
Services
Rental
Properties
Management
The accompanying notes are an integral part of these financial statements. 8 HUMAN INVESTMENT PROJECT, INC.
STATEMENTS OF CASH FLOWS
Years Ended June 30, 2021 and 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 123,299 $ (98,142)
Adjustments to reconcile change in net assets
to net cash used by operating activities:
Depreciation 66,620 64,503
Unrealized gain on investments 30,896 30,896
Gain upon debt extinguishment (357,900) -
(Increase) decrease in assets:
Tenant rents and other receivables 18,938 36,864
Grants and contracts receivable (117,440) 157,239
Receivable from affiliates (26,698) 169,279
Prepaid expenses (43,911) (25,579)
Investment in partnerships 100,774 11,970
Notes receivable interest (161,064) (216,078)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 61,768 (20,388)
Payable to affiliates 749 (242,709)
Tenant security deposits (4,688) 2,526
Accrued interest - notes payable (5,347) (25,308)
Net cash used by operating activities (314,004) (154,927)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments - marketable securities (411,760) (101,455) Purchases of property and equipment (23,248) (68,858)
Net cash used by investing activities (435,008) (170,313)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from note payable 393,242 (475,256)
Net cash provided by financing activities 393,242 (475,256) Net increase (decrease) in cash, cash equivalents, designated cash and deposits (355,770) (800,496) Cash, cash equivalents, designated cash and deposits - beginning of year 549,306 1,349,802 Cash, cash equivalents, designated cash and deposits - end of year $ 193,536 $ 549,306 2021 2020
SUMMARY OF CASH, CASH EQUIVALENTS, DESIGNATED CASH AND DEPOSITS Cash and cash equivalents $ 595,543 $ 628,945
Designated cash and deposits 431,149 753,517
Total cash, cash equivalents, designated cash and deposits $ 1,026,692 $ 1,382,462 9 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES Human Investment Project, Inc. (HIP Housing), was formed as a California nonprofit public benefit corporation in 1992, with a mission to improve housing conditions and life skills of people in need through programs, property development, redevelopment and management. HIP Housing provides affordable housing opportunities for those who live, or wish to live, in San Mateo County. HIP Housing receives contributions, including grants, and sponsors construction and management of low-and moderate-income housing projects.
A summary of the significant accounting policies applied in the preparation of the accompanying financial statements is as follows:
1. Basis of Presentation and Accounting
The accompanying financial statements have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America (GAAP). Support and revenues are recorded in the period when earned and expenses when incurred, regardless of the timing of payments.
In addition, the financial position and activities are presented on the basis of net assets without donor restrictions and net assets with donor restrictions predicated on the existence of any donor-imposed restrictions.
The board of directors of HIP Housing shares common directors with HIP Housing Development Corporation (HHDC), a California nonprofit public benefit corporation, which sponsors construction and management of low- and moderate-income housing projects in San Mateo County. The board of directors of HIP also shares common directors with HIP Housing Affordable Ventures, Inc. (HHAV), a California nonprofit public benefit corporation, whose purpose is to benefit and support HIP Housing.
HIP Housing’s financial statements do not include the assets, liabilities, revenue or expenses of the related organizations. The financial statements of HIP Housing have been prepared without combining the financial statements of related entities under common control. Combined financial statements will also be issued and those statements are the general-purpose financial statements of the primary reporting entity.
2. Cash and Cash Equivalents and Concentrations of Credit Risk Cash is defined as cash on hand and demand deposits with banks. All short-term debt securities purchased with a maturity of three months or less considered to be cash equivalents.
As of June 30, 2021 and 2020, HIP Housing has deposits in excess of federally insured limits. HIP Housing has not experienced losses in such accounts and believes it is not exposed to any significant risk of loss.
10 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES (Continued)
3. Designated Cash and Deposits
Designated cash and deposits includes rental property operating accounts, replacement reserves, operating reserves, tenant security deposits, and other reserves required to be segregated by a regulatory agency or the board of directors.
4. Investments – Fair Value
Under GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date.
GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of HIP Housing.
Unobservable inputs, if any, reflects HIP Housing’s assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that HIP Housing has the ability to access at measurement date. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgement.
Level 2 – Valuations based on significant inputs that are observable, either directly or indirectly or quoted prices in markets that are not active, that is, markets in which there are few transactions, the prices are not current or price quotations vary substantially either over time or among market makers.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors, including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed.
5. Investment in Partnership
Investments in uncombined entities, over which Hip Housing’ s Officers and/or Board of Directors are deemed not to have majority control but have significant influence, are accounted for using the equity method of accounting. Under the equity method, the initial investment is recorded at cost and is subsequently increased by HIP Housing’s share of earnings and decreased by its share of losses and distributions.
11 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES (Continued)
6. Allowances for Uncollectible Accounts Receivable
HIP elects to record bad debt for tenant rents receivable using the direct write-off method. GAAP requires that the allowance method be used to reflect bad debts. However, the effect of the use of the direct writeoff method is not materially different from the result that would be obtained had the allowance method been followed.
7. Property and Equipment
Purchased land is carried at cost. Donated land is carried at estimated fair market value at the date of donation.
Property and equipment is stated at cost as of the date of acquisition or construction. The cost of maintenance and repairs are charged to operations when incurred. All major replacements and betterments are capitalized.
Depreciation is provided in amounts sufficient to relate the cost or fair market value of depreciable assets to operations over their estimated service lives using the straight-line method. The useful lives of the assets are estimated as follows:
Buildings and improvements 5 to 27.5 years
Office furniture and equipment 5 to 7 years
In accordance with GAAP, HIP Housing reviews its investment in real estate for impairment whenever events or changes in circumstances indicate that the carrying value of such property may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the real estate to the future net undiscounted cash flow expected to be generated by the rental property including any estimated proceeds from the eventual disposition of the real estate. If the real estate is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the real estate exceeds the fair value of such property. There was no impairment loss recognized in the years ended June 30, 2021 and 2020.
8. Donated Assets
Donated marketable securities and other noncash donations except for in-kind donations for services are recorded as contributions at their estimated fair values at the date of donation.
9. Fair Value of Financial Assets and Liabilities
The carrying amounts of cash and cash equivalents, designated cash and deposits approximate fair value due to the relatively short-term maturity of these instruments. It is not practicable for management to estimate the fair value of accounts and notes receivable, notes payable, equity investments and financial guarantees because of the nature of such instruments and lack of readily available market information for financial instruments with similar terms.
12 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES (Continued)
10. Advertising Costs
Advertising costs are charged to operations when incurred.
11. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.
12. Revenue Recognition
Support and Revenue
Contributions received are recorded as net assets without donor restrictions or net assets with donor restrictions, depending on the existence and/or nature of any donor-imposed restrictions. Contributions that are restricted by the donor are reported as an increase in net assets without donor restrictions if the restriction expires in the reporting period in which the contribution is recognized. All other donorrestricted contributions are reported as an increase in net assets with donor restrictions, depending on the nature of restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions.
Unconditional pledges to give are recorded as contributions when pledged at the net present value of the amounts expected to be collected. Unconditional pledges to give that are expected to be received in future periods are discounted annually using the current interest rate the funds would earn.
Amortization of the discount is recorded as contribution revenue.
Donations and fundraising event contributions are recognized as revenue when they are unconditionally received.
HIP Housing receives contract and grant funding from federal, state, and county agencies for the establishment of affordable housing opportunities primarily to benefit low-income households. Revenue from such grants is recognized when earned in accordance with agreements.
Revenue from program service fees are recognized as services are performed and collection is reasonably assured.
13 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES (Continued)
12. Revenue Recognition (Continued)
Rental Housing Revenue
Rental income is recognized as rent becomes due. Rental payments received in advance are deferred until earned. All leases between the projects and tenants of the projects are operating leases. Lease terms are usually one year or less. Therefore, HIP Housing recognizes monthly rent as lease income under ASC Topic 840 Leases. Rental subsidy income is considered part of the lease and is not considered a contribution under ASC 958. This standard indicates that government payments to specifically identified participants are to be considered exchange transactions and potentially subject to ASC 606. HIP Housing believes that both rental and subsidy income streams are exempted from compliance with ASC 606 due to their inclusion under current and future lease standards.
HIP Housing has further determined that any resident services or other services provided to residents that do not relate to the unit rent are not part of the calculation of lease payment. HIP Housing recognizes revenue under these other service lines under ASC Topic 606 Revenue from Contracts with Customers. Revenue streams subject to ASC 606 include: tenant reimbursement of consumption-based costs paid by the projects on behalf of the tenant, such as utilities and other monthly fees. Additional revenue includes laundry, and vending, as well as damages. Such fees are ancillary to the lease process and are recognized as revenue at the point in time such fees are incurred.
13. Functional Allocation of Expenses
The costs of providing program services and supporting services have been summarized on a functional basis in the statements of activities. The statements of functional expenses present the natural classification detail of expense by nature and function. Accordingly, certain costs have been allocated among program services and supporting services based on estimates of employees' time incurred and on usage of resources. Program services include all expenses relating to development, management of properties, and resident services. Supporting services consist of management and general expenses and unallocated payments to affiliates.
14. Income Taxes
HIP Housing has received tax-exempt status under IRC Section 501(c)(3) and the California Franchise Tax Board under the Revenue and Taxation Code 23701(d).
HIP Housing believes that they have appropriate support for any tax positions taken, and as such, do not have any uncertain tax positions that are material to the financial statements. HIP Housing’s federal and state information and income tax returns for the years 2017 through 2020 are subject to examination by regulatory agencies, generally for three years and four years after they were filed for the federal and state returns, respectively.
14 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE A - NATURE OF ACTIVITIES AND SUMMARY OF ACCOUNTING POLICIES (Continued)
15. Risks and Uncertainties
HIP Housing is subject to various risks and uncertainties in the ordinary course of business that could have adverse impacts on its operating results and financial condition. Future operations could be affected by changes in the economy or other conditions in the geographical area where the corporation is located or by changes in federal, state and/or local low-income housing subsidies or the demand for such housing.
HIP Housing is vulnerable to the inherent risks associated with revenue that is substantially dependent on government funding, public support, and contributions. The continued growth and well-being of HIP Housing is contingent upon successful achievement of its long-term revenue-raising goals.
16. Date of Management’s Evaluation and Subsequent Events Management has evaluated subsequent events through December 3, 2021, which is the date the financial statements were available to be issued.
17. Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842). This ASU increases transparency and comparability by recognizing a lessee's rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU will be effective for SAHA for the year ending June 30, 2022. HIP Housing is currently evaluating the impact of this ASU.
18. Previously Adopted Accounting Standards
On July 1, 2019, HIP Housing adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU No. 2018-18, Clarifying the Scope and Accounting Guidance for Contributions Received and Made (Topic 958) that affects the accounting for revenue. HIP Housing’s revenue is mainly derived from leases, developer fees, and management fees. HIP Housing also derives revenues from contributions. Adopting these standards did not have a significant impact on the consolidated financial statements.
The new revenue standard also introduced new guidance for accounting other income, including the sales of real estate. Adopting this standard did not have a significant impact on the consolidated financial statements.
15 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE B – DESIGNATED CASH AND DEPOSITS
As of June 30, designated cash and deposits consist of the following:
Rental property operating funds $ 111,217 120,124
Tenant security deposits and reserves 319,932 633,393
Total designated cash and deposits 431,149 753,517
Less: current portion (111,217) (120,124)
Non-current portion $ 319,932 633,393
2021 2020
NOTE C – INVESTMENTS – MARKETABLE SECURITIES
HIP Housing’s investments measured at fair value on a recurring basis as of June 30, and the fair value hierarchy of the valuation techniques utilized by HIP to determine fair values are as follows:
Fixed income $ 1,497,598 $ 1,540,357
Domestic equity securities 484,955 616,709
Exchange traded funds (ETFs) 680,210 1,093,675
Total investments $ 2,662,763 $ 3,250,741
June 30, 2021 June 30, 2021
Cost as of
Quoted Prices
in Active
Markets for
Identical
Assets (Level
Fixed income $ 1,407,431 $ 1,451,244
Domestic equity securities 417,929 406,625
Exchange traded funds (ETFs) 881,065 1,012,008
Total investments $ 2,706,425 $ 2,869,877
Cost as of
Quoted Prices
in Active
Markets for
Identical
Assets (Level
June 30, 2020 June 30, 2020
16 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE C – INVESTMENTS –Marketable Securities (Continued) The following presents investments by category at fair value as of June 30:
Fixed income:
US treasury notes $ 306,891 $ 514,406
Bond funds 858,508 616,881
Corporate bonds 374,958 319,957
Total fixed income $ 1,540,357 $ 1,451,244
Domestic Equity Securities:
Communication services $ 108,408 $ 66,452
Consumer staples 70,164 62,176
Energy 26,888 19,417
Financials 42,774 25,867
Health care 92,748 85,917
Industrials 37,052 23,882
Information technology 238,675 122,914
Total equity securities $ 616,709 $ 406,625
2021 2020
NOTE D – PROPERTY AND EQUIPMENT
As of June 30, property, equipment, and accumulated depreciation consist of the following:
Land $ 836,000 836,000
Buildings and improvements 1,326,469 1,326,469
Furnishings and equipment 493,940 470,692
Total property and equipment 2,656,409 2,633,161
Less accumulated depreciation expense (1,464,809) (1,398,189) Property and equipment, net $ 1,191,600 1,234,972
2021 2020
NOTE E – INVESTMENT IN PARTNERSHIP
HIP Housing holds a 99% limited partner interest in Redwood Oaks Associates, L.P., a California limited partnership (ROA). The investment is accounted for under the equity method. As of June 30, 2021 and 2020, the amount of HIP Housing’s investment in the partnership is $68,591 and $169,365, respectively. The financial position and activity of ROA is summarized below:
Total assets $ 26,233 $ 615,737
Total liabilities $ 308,561 $ 547,796
Partners' equity (deficit) $ (43,328) $ 67,941
Net income (loss) $ (13,269) $ 7,796
Unaudited
2021 2020
17 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE F – NOTES RECEIVABLE
Note receivable in the amount of $200,000 due from HHDC bears interest at a simple rate of 4.63% per annum, requires annual payments to the extent of annual surplus cash generated by the real property located at 11 Delaware Street owned by HHDC, and matures March 15, 2035. As of June 30, 2021 and 2020, accrued interest receivable totals $150,475 and $141,215, respectively.
Note receivable in the amount of $3,400,000 due from ROA II is non-interest bearing and secured by the real property located at 330 Redwood Avenue in Redwood City, California owned by ROA II. Annual payment from available cash flow are required and all unpaid principal is due in full on December 31, 2076.
Note receivable in the amount of $5,346,799 due from ROA II bears 2.76% compounded interest and secured by real property located at 330 Redwood Avenue in Redwood City, California owned by ROA II. Annual payments from available net cash flow are required and all unpaid principal is due in full on December 31, 2076. As of June 30, 2021 and 2020, accrued interest receivable totals $305,154 and $153,350, respectively.
NOTE G - NOTE PAYABLE - PAYCHECK PROTECTION PROGRAM
On May 4, 2020, HIP Housing received loan proceeds of $357,900 from a promissory note issued by Boston Private Bank & Trust Company, under the Paycheck Protection Program (PPP) which was established under the CARES Act and is administered by the U.S. Small Business Administration. The term of the loan is two years and the annual interest rate is 1%. Payments of principal and interest are deferred for the first six months of the loan. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan proceeds for payroll costs, rent, utility expenses, and the maintenance of workforce and compensation levels with certain limitations. Because forgiveness of the loan was not assured, HIP Housing presented the funds as a note payable as of June 30, 2020.
The PPP Loan was forgiven on May 18, 2021 and HIP Housing recorded a gain upon debt extinguishment in the amount of $357,900.
On March 23, 2021, HIP Housing received loan proceeds of $393,242 from a promissory note issued by Boston Private Bank & Trust Company, under the PPP (PPP2 Loan). The term of the loan is two years and the annual interest rate is 1%. Payments of principal and interest are deferred for the first six months of the loan. Under the terms of the CARES Act, HIP Housing can apply for forgiveness of the PPP2 Loan and be granted forgiveness for all or a portion of the loan proceeds for payroll costs, rent, utility expenses, and the maintenance of workforce and compensation levels with certain limitations. HIP Housing believes the occurrence of qualifying expenditures will result in forgiveness of the PPP2 Loan, the expenditures are subject to review and/or audit under applicable administrative provisions governing the PPP. The PPP2 Loan has not been recognized as revenue as of June 30, 2021 because forgiveness of the loan is not assured and is presented as a note payable as of June 30, 2021. 18 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE H – DEFERRED NOTES PAYABLE
Deferred loans payable to various government agencies and lenders, see detail below, are either non-interest bearing or bear simple interest at rates ranging from 3% to 4.63%, and have varying maturity dates through 2072. Payments are either payable from available residual receipts or surplus cash or are deferred until maturity with the option to renew. For the years ended June 30, 2021 and 2020, interest expense totaled $11,918 and $11,918, respectively. As of June 30, 2021 and 2020, accrued deferred interest totaled $119,160 and 124,507, respectively.
County of San Mateo $ 129,451
City of San Carlos 293,962
California Department of Housing & Community Development 300,856 Related parties (unsecured) 108,887
Total deferred notes payable $ 833,156
Principal payments for the next five years are subject to changes in net cash flow, which is a contingency that cannot reasonably be estimated.
NOTE I –NET ASSETS WITH DONOR RESTRICTIONS
As of June 30, net assets with donor restriction carry the following restrictions:
Purpose restricted:
Housing Opportunity $ 13,130 $ 91,000 $ (99,284) $ 4,846 Self-Sufficiency 203,660 144,000 (192,908) 154,752
Home Sharing 75,000 88,500 (127,500) 36,000
Other programs 155,471 115,000 (146,158) 124,313
Time restricted 125,000 70,000 (125,000) 70,000
Total $ 572,261 $ 508,500 $ (690,850) $ 389,911
Restrictions
Balance
Beginning of year
Released from Balance
2021
Contributions End of year
Purpose restricted:
Housing Opportunity $ 64,510 $ 26,400 $ (77,780) $ 13,130 Self-Sufficiency 215,000 328,600 (339,940) 203,660
Home Sharing 26,000 72,500 (23,500) 75,000
Other programs 50,000 217,180 (111,709) 155,471
Time restricted 520,000 449,500 (844,500) 125,000
Total $ 875,510 $ 1,094,180 $ (1,397,429) $ 572,261
2020
Balance Released from Balance
Beginning of year Contributions Restrictions End of year 19 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE J - RELATED PARTY TRANSACTIONS
Receivable from Affiliates
As of June 30, 2021 and 2020, HIP Housing has a receivable from HHDC for contributions totaling $42,608.
As of June 30, 2021, HIP Housing has a receivable from HHAV for reimbursements of operating expenses totaling $18,165.
As of June 30, 2021 and 2020, HIP Housing has a receivable from ROA II for cash advances totaling $-0- and $5,967, respectively.
As of June 30, 2021 and 2020, HIP Housing has a receivable from properties owned by affiliated entities totaling $1,176 and $744, respectively, for reimbursement of operating expenses.
Asset Management Fee
HIP Housing earns asset management fees from rental properties owned by HHDC and HHAV. For the years ended June 30, 2021 and 2020, asset management fee earned totaled $53,428 and $54,404, respectively, of which $28,842 and $14,774 is receivable as of June 30, 2021 and 2020.
Payable to Affiliates
As of June 30, 2021 and 2020, HIP Housing has a payable of $3,500 to HHDC for funds advanced from HHDC.
As of June 30, 2021 and 2020, HIP Housing has a payable of $-0- and $1,321 respectively to HHAV for reimbursement of operating expenses.
As of June 30, 2021, HIP Housing has a payable of $2,070 to HHDC for reimbursement of operating expenses.
Contributions from Affiliates
During the year ended June 30, 2021 and 2020, HHAV contributed $131,421 and $107,225 to support HIP Housing’s mission.
During the year ended June 30, 2021 and 2020, HHDC contributed $573,228 and $636,082 to support HIP Housing’s mission.
Donation to Affiliates
During the years ended June 30, 2021 and 2020, HIP Housing donated $85,000 and $130,000, respectively, to HHDC.
Property Management Fees
The properties owned by HIP Housing are managed by HHAV. For the year ending June 30, 2021 and 2020, management fees paid to HHAV totaled $10,216 and $9,740, respectively. 20 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE K – RETIREMENT PLAN
HIP Housing has a defined contribution pension plan that covers employees at least 21 years of age with either one-year of service or previous employment in the nonprofit or health or social service field within a three-year period immediately preceding employment with HIP Housing. The plan requires employer contributions equal to 3% of covered payroll, with an additional 2% if an employee saves 4% towards the plan. Total contributions made to the plan for the years ended June 30, 2021 and 2020 totaled $85,077 and $68,013, respectively.
NOTE L – COMMITMENTS AND CONTINGENCIES
Land Leases
HIP Housing leases land from the City of Redwood City at the site of the Pine-Middlefield residential facility.
The lease is for a term of 49 years at ten dollars per year. The use of the land is restricted for the construction, operation, and maintenance of a home providing shared living which will be available for very low-income persons, as more fully described in the lease agreement.
HIP Housing leases land from the City of Redwood City at the site of the Hilton Street Project. The lease commenced on September 1991 for a term of 49 years at 10 dollars per year. The use of the land is restricted to operating and maintenance of a home providing shared living that will be affordable to low and very low income, and small families as defined in California Health and Safety Code Sections 50079.5 and/or 50105.
Management has determined the fair value of these leases to be nominal due to the restrictions on the use of the land. Management also has determined the fair value of these leases to be nominal as similar agencies enter into similar leasing arrangements with similar public benefit corporations and nonprofit organizations in an effort to proliferate affordable housing within those agencies’ jurisdictions.
COVID-19
In March 2020, the World Health Organization designated COVID-19 as a pandemic. While HIP Housing has taken various actions in response to the COVID-19 pandemic, the ultimate impact on its results of operations, cash flows, financial condition and liquidity will depend on (i) the duration and severity of the pandemic; (ii) the duration and nature of governmental responses to contain the spread of the disease and assist consumers and businesses; (iii) consumer and business responses to the pandemic, including preference for where and how to live and work; and (iv) how quickly and to what extent normal economic and operating conditions can resume.
Due to the rapid development and fluidity of the pandemic, HIP Housing is not able to estimate the expected impact of the COVID-19 pandemic on its future results of operations, cash flows, financial condition, or liquidity.
Management continues to monitor the results of operations to evaluate the economic impact of the pandemic on operations and has proactively taken steps to minimize the impact on their financial position. In addition, federal and state authorities are continuing to pass legislation in support of rent relief programs, which could reduce the potential for a decrease in rent collection.
Grants and loans receivable
In connection with various federal, state, county, and city grants, HIP Housing is obligated to operate in accordance with those grant requirements and is subject to audit by those agencies. In cases of noncompliance, the agencies involved may require that HIP Housing refund payment of program funds. The amount, if any, of expenditures that may be disallowed by the agencies cannot be determined at this time, although HIP Housing expects such amounts, if any, to be immaterial.
21 HUMAN INVESTMENT PROJECT, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 and 2020
NOTE M – LIQUIDITY AND AVAILABILITY
As of June 30, HIP Housing has financial assets available for general expenditures within one year of the balance sheet date consisting of the following:
Cash and cash equivalents $ 595,543 $ 628,945
Tenant rents and other receivables 37,418 56,356
Grants and contracts receivable 171,478 54,038
Receivable from affiliates 90,791 64,093
Total $ 895,230 $ 803,432
2021 2020
Financial assets include amounts that will be used to pay accounts payable, accrued expenses and other distributions from operating cash flow, if any, in the subsequent year. None of the financial assets are subject to grantor or other contractual restrictions that make them unavailable for general expenditure within one year of the balance sheet date.
HIP Housing’s liquidity management policy requires the maintenance of 120 days of operating cash, which is defined as operating revenue minus operating expenses, in its general fund operating account. To help manage unanticipated liquidity needs, HIP Housing has an investment fund with a balance of $3,250,741 as of June 30, 2021.
SUPPLEMENTARY INFORMATION
See Independent Auditor’s Report
22 HUMAN INVESTMENT PROJECT, INC.
DETAILED SCHEDULE OF FINANCIAL POSITION
June 30, 2021 with Comparative Totals for June 30, 2020 Current assets
Cash and cash equivalents $ 595,543 $ - $ - $ 595,543 $ 628,945 Designated cash and deposits, current portion - 111,217 - 111,217 120,124 Investments - marketable securities 3,250,741 - - 3,250,741 2,869,877 Tenant rents and other receivables 18,504 18,914 - 37,418 56,356 Grants and contracts receivable 171,478 - - 171,478 54,038 Receivable from affiliates 132,591 - (41,800) 90,791 64,093 Prepaid expenses 121,119 554 - 121,673 77,762
Total current assets 4,289,976 130,685 (41,800) 4,378,861 3,871,195 Other assets
Designated cash and deposits, net of current portion 68,454 251,478 - 319,932 633,393 Property and equipment, net 109,537 1,082,063 - 1,191,600 1,234,972 Investment in partnerships 68,591 - - 68,591 169,365
Notes receivable, including interest 9,402,428 - - 9,402,428 9,241,364 Total other assets 9,649,010 1,333,541 - 10,982,551 11,279,094 Total assets $ 13,938,986 $ 1,464,226 $ (41,800) $ 15,361,412 $ 15,150,289 HIP Properties
2020
Rental
2021
ASSETS
Eliminations Total Total
See Independent Auditor’s Report
23 HUMAN INVESTMENT PROJECT, INC.
DETAILED SCHEDULE OF FINANCIAL POSITION (Continued)
June 30, 2021 with Comparative Totals for June 30, 2020 Current liabilities
Accounts payable and accrued expenses $ 237,649 $ 10,617 $ - $ 248,266 $ 186,498 Payable to affiliates 431 46,939 (41,800) 5,570 4,821
Tenant security deposits - 14,483 - 14,483 19,171
Total current liabilities 238,080 72,039 (41,800) 268,319 210,490 Long-term liabilities
Note payable 393,242 - - 393,242 357,900
Deferred notes payable 833,156 - 833,156 833,156
Accrued interest - notes payable - 119,160 - 119,160 124,507 Total long-term liabilities 393,242 952,316 - 1,345,558 1,315,563 Total liabilities 631,322 1,024,355 (41,800) 1,613,877 1,526,053 Net assets
Net assets with donor restrictions 389,911 - - 389,911 572,261 Net assets without donor restrictions 12,917,753 439,871 13,357,624 13,051,975 Total net assets 13,307,664 439,871 - 13,747,535 13,624,236 Total liabilities and net assets $ 13,938,986 $ 1,464,226 $ (41,800) $ 15,361,412 $ 15,150,289 HIP Total Total
2020
LIABILITIES AND NET ASSETS
Properties Eliminations
Rental
2021
See Independent Auditor’s Report
24 HUMAN INVESTMENT PROJECT, INC.
DETAILED SCHEDULE OF ACTIVITIES
Year Ended June 30, 2021 with Comparative Totals for the Year Ended June 30, 2020 Net assets without donor restrictions
Support and revenue
Support
Government grants and contracts $ 449,602 $ - $ - $ 449,602 $ 398,054 Contributions from affiliates 748,674 - (44,025) 704,649 743,307 Grants, contributions and fundraising 754,318 - - 754,318 468,691 Net assets released from donor restrictions 690,850 - - 690,850 1,397,429 Total support 2,643,444 - (44,025) 2,599,419 3,007,481
Revenue
Rental property revenue - 220,203 - 220,203 215,005
Supportive services fees 52,497 - (19,500) 32,997 38,248 Asset management fees 59,428 - (6,000) 53,428 54,404
Interest and investment income 757,600 604 - 758,204 264,887 Gain upon debt extinguishment 357,900 - - 357,900 -
Miscellaneous income (loss) (393) 5,946 - 5,553 (6,323) Total revenue 1,227,032 226,753 (25,500) 1,428,285 566,221 Total support and revenue 3,870,476 226,753 (69,525) 4,027,704 3,573,702 Expenses
Program services
Rental property operations - 204,549 (25,500) 179,049 156,130 Supportive services programs 2,465,456 - - 2,465,456 2,197,790 Fundraising and advocacy 634,464 - - 634,464 550,415
Management and general 358,086 - - 358,086 334,260
Unallocated payments to affiliates 85,000 - - 85,000 130,000 Total expenses 3,543,006 204,549 (25,500) 3,722,055 3,368,595 Change in net assets without donor restrictions 327,470 22,204 (44,025) 305,649 205,107 Net assets with donor restrictions
Grants, contributions and fundraising 508,500 - - 508,500 1,094,180 Net assets released from donor restrictions (690,850) - - (690,850) (1,397,429) Change in net assets with donor restrictions (182,350) - - (182,350) (303,249) Total change in net assets 145,120 22,204 (44,025) 123,299 (98,142) Sponsor distributions - (44,025) 44,025 - -
Net assets - beginning of year 13,162,544 461,692 13,624,236 13,722,378 Net assets - end of year $ 13,307,664 $ 439,871 $ - $ 13,747,535 $ 13,624,236 Total
2021 2020
Properties Eliminations Total
Rental
HIP
See Independent Auditor’s Report
25 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTAL SCHEDULE OF NOTES PAYABLE
June 30, 2021 and 2020
Hilton Street
$ 106,808 $ 300,856 $ 115,047 $ 300,856
- 17,885 - 17,885
Total notes payable on Hilton Street $ 106,808 $ 318,741 $ 115,047 $ 318,741 Cedar Street
$ $ - 129,451 $ $ - 129,451
- 293,962 - 293,962
Total notes payable on Cedar Street $ $ - 423,413 $ $ - 423,413 Pine Street
$ 12,352 $ 62,472 $ 9,460 $ 62,472
- 28,530 - 28,530
Total notes payable on Pine Street $ 12,352 $ 91,002 $ 9,460 $ 91,002 2021 2020
Interest
Payable
Interest
Payable
Note payable to the City of San Carlos is non-interest bearing and requires annual payments from surplus cash as defined in the Regulatory Agreement with the County of San Mateo and City of San Carlos. Unpaid principal is due in full in June 2024.
Principal Principal
Unsecured note payable to HHDC bears simple annual
interest of 4.63% and requires annual payments from net cash flow as defined in the Regulatory Agreement with the County of San Mateo. Unpaid principal and interest is due in full in February 2036.
Unsecured note payable to HHDC is non-interest bearing and due in full June 2047.
Note payable to the California Department of Housing and Community Development bears simple annual interest of 3% and requires annual payments from net cash flow as defined in the Regulatory Agreement. Unpaid principal and interest is due in full in February 2036.
Unsecured note payable to HHDC is non-interest bearing and due in full June 2047.
Note payable to the County of San Mateo is non-interest bearing and requires annual payments from surplus cash as defined in the Regulatory Agreement with the County of San Mateo and City of San Carlos. Unpaid principal is due in full in February 2025.
See Independent Auditor’s Report
26 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY NET CASH FLOW CALCULATION FOR OWNED PROPERTIES Year Ended June 30, 2021
Operating Revenue
Rental property revenue $ 37,050 $ 65,989 $ 60,531 $ 56,633 Interest and other income 944 1,601 863 3,142
Less restricted interest - (66) (403) (137)
Total operating revenue 37,994 67,524 60,991 59,638
Operating Expenses
Salaries 4,648 6,705 6,384 6,306
Administrative 7,042 8,240 11,117 8,167
Utilities 3,663 13,041 6,615 5,823
Operating and maintenance 5,707 12,426 9,694 19,583
Taxes and insurance 1,430 973 1,056 832
Supportive services 3,600 6,800 5,400 6,500
Total operating expenses 26,090 48,185 40,266 47,211
Other Items
Deposits to replacement reserve - 3,030 2,642 4,000
Deposits to operating reserve - - - -
Total other items - 3,030 2,642 4,000
Net cash flow $ 11,904 $ 16,309 $ 18,083 $ 8,427
Chilco Cedar Hilton Pine
See Independent Auditor’s Report
27 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY INNFORMATION REQUIRED BY
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT HILTON PROJECT No. 91-FHDP-002
Years Ended June 30, 2021 and 2020
SCHEDULES OF OPERATING REVENUES
Rent revenue
5120 Tenant rents $ 7,017 $ 17,027
5121 Tenant assistance payments 57,664 51,595
5100T Gross rent potential 64,681 68,622
Vacancies
5220 Apartments (4,150) (14,732)
5200T Total vacancies (4,150) (14,732)
5152N Net rental revenue 60,531 53,890
Financial revenue
5440 Financial revenue - replacement reserve 403 771
5400T Total financial revenue 403 771
Other revenue
5910 Laundry income 65 63
5920 Tenant charges 395 445
5900T Total other revenue 460 508
5000T Total revenue 61,394 55,169
2021 2020
SCHEDULES OF OPERATING EXPENSES
Administrative expenses
6311 Office supplies 249 2
6311 Telephone and answering service 58 53
6320 Property management fees 2,696 2,558
6320 Asset management fees 1,440 1,440
6330 Manager's salary 3,935 3,506
6350 Audit fees 1,400 1,400
6351 Accounting services 1,716 1,713
6390 Bank service charges - 2
6390 Seminars and training - 11
6390 Supportive service expenses 5,400 5,900
6390 Professional fee expenses 3,138 136
6390 Miscellaneous administrative 420 235
Total administrative expenses 20,452 16,956
See Independent Auditor’s Report
28 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY INNFORMATION REQUIRED BY
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT HILTON PROJECT No. 91-FHDP-002
Years Ended June 30, 2021 and 2020
SCHEDULES OF OPERATING EXPENSES (Continued)
Utilities
6450 Electricity $ 1,216 $ 926
6451 Water 2,591 2,122
6452 Gas 1,774 899
6453 Sewer 1,034 1,117
Total utilities 6,615 5,064
Operating and maintenance
6510 Repairs payroll 922 766
6515 Repairs materials 360 475
6520 Janitorial contracts - 420
6520 Exterminating contracts 1,380 1,380
6520 Ground contracts 2,100 2,100
6520 Repairs contract 4,710 3,949
6525 Trash removal 1,144 1,103
6590 Miscellaneous operating and maintenance - 60
Total operating and maintenance 10,616 10,253
Taxes and insurance
6711 Payroll taxes 372 332
6722 Workers' compensation 103 201
6723 Health insurance and other employee benefits 875 763 6720 Property and liability insurance 1,056 1,968
6720 Earthquake insurance 177 120
Total taxes and insurance 2,583 3,384
Financial expenses
6820 Interest expense - note payable 9,026 9,026
6800T Total financial expenses 9,026 9,026
6000 Total cost of operations before depreciation 49,292 44,683 5060T Operating profit before depreciation 12,102 10,486 6600 Depreciation expense 2,503 2,835
5060N Operating income $ 9,599 $ 7,651
2021 2020
See Independent Auditor’s Report
29 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY INNFORMATION REQUIRED BY
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT HILTON PROJECT No. 91-FHDP-002
Years Ended June 30, 2021 and 2020
CASH ON HAND AND IN BANK
Unrestricted accounts
Operating and savings accounts $ 12,020 $ 16,433
Restricted accounts
Tenant security deposits 4,559 5,405
Operating reserve 29,496 28,396
Replacement reserve 71,843 69,898
Total cash $ 117,918 $ 120,132
2021 2020
Tenant security deposits are held in a separate non-interest bearing bank account in the name of the Property.
RESERVE FOR REPLACEMENTS
In accordance with the HCD Regulatory Agreement, a replacement reserve account has been established to be used for the replacement of property. Releases from the replacement reserve must be approved by the HCD. Accordingly, restricted cash is held as follows:
Balance, July 1 $ 69,898 $ 44,584
Monthly deposits 1,542 1,543
Prior year unauthorized release - 23,000
Interest earned 403 771
Balance, June 30 $ 71,843 $ 69,898
2021 2020
RESERVE FOR OPERATIONS
In accordance with the HCD Regulatory Agreement, an operating reserve account has been established to be used for the operating deficits of property. Releases from the operating reserve must be approved by the HCD. Accordingly, restricted cash is held as follows:
Balance, July 1 $ 28,396 $ 27,666
Deposits 1,100 730
Balance, June 30 $ 29,496 $ 28,396
2021 2020
See Independent Auditor’s Report
30 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY INNFORMATION REQUIRED BY
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT HILTON PROJECT No. 91-FHDP-002
Year Ended June 30, 2021
CHANGES IN PROPERTY
Balance Balance
July 1, 2020 Additions Removals June 30, 2021
Buildings and improvements $ 384,741 $ $ - - $ 384,741
Furnishings and equipment 12,289 - - 12,289
Total property $ 397,030 $ $ - - $ 397,030
Accumulated depreciation $ 379,968 2,503 - 382,471
Cost
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable are payable to vendors which are due within 30 days of year end.
SCHEDULE OF NOTES PAYABLE
Hilton Street
$ 106,808 $ 300,856 $ 115,047 $ 300,856
- 17,885 - 17,885
Total notes payable on Hilton Street $ 106,808 $ 318,741 $ 115,047 $ 318,741 Unsecured note payable to HHDC is non-interest bearing and due in full June 2047.
2021 2020
Interest
Payable
Interest
Payable
Note payable to the California Department of Housing and Community Development bears simple annual interest of 3% and requires annual payments from net cash flow as defined in the Regulatory Agreement. Unpaid principal and interest is due in full in February 2036. Interest expense for the years ended June 30, 2021 and 2020 was $9,026 and $9,026,
respectively. Interest payments made during the years ended June 30, 2021 and 2020 were $17,265 and $32,226,
respectively.
Principal Principal
See Independent Auditor’s Report
31 HUMAN INVESTMENT PROJECT, INC.
SUPPLEMENTARY INNFORMATION REQUIRED BY
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT HILTON PROJECT No. 91-FHDP-002
Year Ended June 30, 2021
GROSS POTENTIAL RENTS
Tenant rental payments $ 6,557 $ 15,394
Housing assistance payments 53,974 38,496
Vacancy loss and concessions 4,150 14,732
Total gross potential rents $ 64,681 $ 68,622
2021 2020
MANAGEMENT FEE
Property management fee of $2,696 was incurred during the year ending June 30, 2021 for services provided by HIP Housing Affordable Ventures, Inc.
SURPLUS CASH/ NET CASH FLOW
In accordance with the HCD Regulatory Agreement, net cash flow and distributions is calculated as follows:
Operating income
Total income $ 61,394
Less interest on reserves (403)
Adjusted operating income $ 60,991
Operating expenses (40,266)
Adjusted net income 20,725
Other activity
Deposits to replacement reserve $ (1,542)
Deposits to operating reserve (1,100)
Total other activity (2,642)
Net operating cash flow $ 18,083
Net cash flow available for distribution
HCD maximum distribution $ 232
HCD deferred loan payment 17,851
$ 18,083
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors
Human Investment Project, Inc.
We have audited, in accordance with 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 Human Investment Project, Inc., a California nonprofit public benefit corporation, which comprise the statement of financial position as of June 30, 2021, and the related statement of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statement, and have issued our report thereon dated December 3, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Human Investment Project, 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 Associates’ internal control. Accordingly, we do not express an opinion on the effectiveness of Human Investment Project, Inc.’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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of Human Investment Project, Inc.’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, 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. Given these 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Human Investment Project, Inc.’s financial statements are free of 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 was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 33 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Continued)
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 Human Investment Project, Inc.’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Human Investment Project, Inc.’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Lafayette, California
December 3, 2021
34 HUMAN INVESTMENT PROJECT, INC.
CERTIFICATION OF OFFICERS
Year Ended June 30, 2021
CERTIFICATION OF OFFICERS
We, as officers of Human Investment Project, Inc., a California nonprofit public benefit corporation, hereby certify that we have examined the accompanying financial statements and supplementary data of Human Investment Project, Inc. as they pertain to the Hilton Project, as of and for the year ended June 30, 2021, and, to the best of our knowledge and belief, these financial statements and supplementary data are complete and accurate. _____________________________________________ December 3, 2021 Don McVey Board Treasurer Date
_____________________________________________ December 3, 2021 Gina Quiney Board Member Date
HUMAN INVESTMENT PROJECT, INC.
Employer ID No. 94-2154614
CERTIFICATION OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying financial statements and supplementary data of Human Investment Project, Inc. as they pertain to the Hilton Project, as of and for the year ended June 30, 2021, and, to the best of my knowledge and belief, these financial statements and supplementary data are complete and accurate. _______________________________________________ December 3, 2021 Kate Comfort Harr Executive Director Date
HIP HOUSING AFFORDABLE VENTURES, INC.
Employer ID No. 91-1868360
FY 2021/2022
Budget
FY 2022/2023
Projection
Income:
Carry Fund balance from 2020/2021 $ 406,023 $ 418,204
San Mateo County CDBG $ 185,657 $ 191,227
Cities within the County * $ 543,242 $ 300,000
Special events $ 232,000 $ 238,960
Fundraising, Grants $ 594,500 $ 650,000
Contribution Individuals $ 225,000 $ 231,750
Support from Affiliates $ 975,000 $ 1,250,000
ERF $ 115,500
Assets Management Fees $ 106,820 $ 110,025
Total Income $ 3,383,742 $ 3,390,165
Expenses:
Direct Cost
Salaries - Direct $ 748,175 $ 770,620
Payroll Taxes & Benefits - Direct $ 219,518 $ 226,103
Total Direct Salary & Benefits $ 967,693 $ 996,724
Salaries - Indirect $ 1,347,300 $ 1,387,719
Payroll Taxes & Benefits - Indirect $ 360,674 $ 371,495 Total Administration $ 1,707,974 $ 1,759,214
Program Service Expenses:
Office Supplies $ 6,000 $ 6,180
Rent - Office $ 262,802 $ 270,686
Calendar expenses $ 11,950 $ 12,309
Annual Appeal $ 10,000 $ 10,300
Audit Expense $ 10,500 $ 10,815
Accounting & Bookkeeping $ 9,068 $ 9,340
Automobile Expense $ 1,350 $ 1,391
Telephone $ 34,388 $ 35,420
Office Equipment $ 7,490 $ 7,715
Bank Service Charges $ 11,973 $ 12,332
Training/ Staff development $ 44,352 $ 45,683
professional Fees $ 17,000 $ 17,510
Printing/Copying/Reproduction $ 17,480 $ 18,004
Dues and Subscriptions $ 5,840 $ 6,015
Postage and Delivery $ 10,260 $ 10,568
Computer Expense $ 32,090 $ 33,053
Office Expenses $ 8,280 $ 8,528
Adv./Promo/Mktg. $ 1,200 $ 1,236
Board expenses $ 8,500 $ 8,755
Communications $ 31,456 $ 32,400
Other Admin Expenses $ 36,700 $ 37,801
Property & Liability Insurance $ 8,726 $ 8,988
Hop Workshop expenses $ 34,160 $ 35,185
Miscellaneous $ 20,400 $ 21,012
Special Events $ 112,200 $ 115,566
Measure "K" $ 82,000 $ 84,460
Planned Giving $ 1,500 $ 1,545
HOP Rental Asst Payment $ 223,685 $ 230,396
Emergency Relief Expenses $ -
Total Program Services $ 1,061,350 $ 1,093,191
Total Expenses $ 3,737,017 $ 3,849,128
Restrict for Next Year $ 3,070,451 $ 3,162,565
NOI $ 2,717,176 $ 2,703,602
HUMAN INVESTMENT PROJECT, INC. (HIP HOUSING)
Mission Statement
HIP Housing’s mission is to invest in human potential by improving the housing and lives of people in our community.
HIP Housing (Human Investment Project, Inc.)
Equal Opportunity Policy
No person shall, on the grounds of race, color, creed, national origin, religious affiliation or non-affiliation, sex, sexual orientation, marital status, age, disability, medical condition, political affiliation or union membership, be excluded from participation in, be denied benefits, or be subjected to discrimination by the Human Investment Project, Inc.
HIP Housing shall insure equal employment opportunity based on objective standards or recruitment, selection, promotion, classification, compensation, performance evaluations, and management relations for all employees.
HIP Housing (Human Investment Project, Inc.)
Reasonable Accommodations Policy
HIP Housing’s Home Sharing Program is available to everyone in the County of San Mateo, including South San Francisco. While our South San Francisco office is currently closed as a result of the COVID pandemic, it is wheelchair accessible and located near public transportation.
Prior to COVID, HIP Housing made home visits to individuals with disabilities and to home-bound senior citizens. We plan to resume this practice as soon as it is safe to do so.