2020-02-17T10:09:04-06:00 2019-03-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2018-04-01 411670818 Housing Alternatives Development Company HOUS 9524731103 18336 Minnetonka Blvd Ste C Deephaven MN 55391 Brian Weisberg Treasurer 9524731103 2020-02-10 1 Lisa Chaffee CPA P00193453 7012551091 2020-02-10 216.147.180.201 2020-02-10 13:35:24 CS P 38C0D8FF55FA272924E83028D6B9FABEF20E0653 DEA5AAEEBA04E2AF66A8E14BCCBEC2FC2C377148 2018 2020-09-23 17:36:50Z Brian Weisberg 18336 Minnetonka Blvd Ste C Deephaven MN 55391 5346342 0 X N/A X 1997 MN Owns, manages, and operates low to moderate income housing and senior housing. 3 3 239 35 0 0 0 0 3083051 4039461 356262 440655 0 0 3439313 4480116 7325 6743 0 0 1743902 2150668 0 0 0 2311900 2825294 4063127 4982705 -623814 -502589 23054317 22139960 16433556 16279780 6620761 5860180 X Housing Alternatives Development Company (HADC) and its affiliates, through the acquisition, construction, rehabilitation, and operation of a variety of rental housing will strive to:Continued on Schedule O... 0 0 4282945 6743 4039461 The corporation is the sole owner/member of HADC Cloquet, LLC who owns Evergreen Knoll, a 62-unit assisted living facility for elderly in Cloquet, Minnesota. HADC Cloquet, LLC also owns Evergeen Cottages, 24 cottage style quad homes in Cloquet. Evergreen is a Senior Living Campus for adults who want to remain independent while having access to services and amenities. Their goal is to provide quality senior housing options that offer comfortable living environments, with programs and services that encourage continued independence and active retirement combined with preventative and supportive health care.The corporation is the sole owner/member of HADC Wadena, LLC who owns The Meadows of Wadena Senior Living, a 37-unit assisted living and 10-unit memory care facility for elderly in Wadena, Minnesota. The Meadows is an assisted living facility for adults who want to remain independent while having access to services and amenities. Their goal is to provide quality senior housing options that offer comfortable living environments, with programs and services that encourage continued independence and active retirement combined with preventative and supportive health care.The Corporation is the sole owner/member of HADC Services, LLC. HADC Services, LLC was formed to be a licensed home health care provider and employer of on-site personnel for the HADC Ridgeway and HADC Cloquet projects. 4282945 1 0 0 0 0 0 0 0 0 0 1 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 35 0 1 239 1 0 0 0 0 0 0 0 0 0 0 0 0 X 3 3 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 0 0 MN X Brad Stedman CPA 7013563101 PO Box 656 1921 6th St E West Fargo ND 58078 Curtis Geissler Chairman 4.00 1.00 X X 6000 0 0 Brian Weisberg Treasurer 4.00 1.00 X X 6000 0 0 William Hyers Secretary 4.00 1.00 X X 6000 0 0 Paul Abzug CEO/President 45.00 10.00 X 301693 0 10530 Charles L Darth Former Director 16.00 4.00 X 36000 0 0 Louis Stocco Dir of Development (thru Dec)/Former Director 20.00 0.00 X 73347 0 0 Daniel Pakonen Dir of Operation (thru Dec)/Former Director 20.00 0.00 X 69680 0 1750 498720 0 12280 1 1 1 0 Mark Stone Construction Company 414 Bryant Avenue SW Wadena MN 56482 Construction Services 183938 1 Resident Service Rev. 531110 3727646 3727646 Other Program Income 531390 111119 111119 Asset Management Fee 531390 81096 81096 Management Fee Income 531390 66000 66000 TIF Receipts 531390 53600 53600 4039461 206724 206724 1100157 866226 233931 233931 233931 4480116 4039461 0 440655 6743 6743 317865 317865 143167 143167 1459181 1455564 3617 8834 8834 83497 83497 138124 124513 13611 88941 88941 84475 84475 3250 3250 77230 37593 39637 62387 62387 202305 202305 520588 520588 15182 15182 9174 9174 773397 773397 505897 505897 52321 52321 Food Costs 260816 260816 Repairs and Maintenance 79706 79706 Bad Debt 58021 58021 Licenses and Permits 9129 9129 22475 17278 5197 4982705 4282945 699760 0 231037 504929 195358 346347 46656 34582 16511072 4361464 12223852 12149608 7425316 6318034 1393398 1119523 1538700 1666937 23054317 22139960 691221 799639 212005 67667 14737579 14665635 792751 746839 16433556 16279780 X 6620761 5860180 6620761 5860180 23054317 22139960 X -502589 -433493 175501 X 0 1 X 1 0 X 500 500 2601590 2680223 2574169 3083051 4039461 14978494 2602090 2680223 2574169 3083051 4039461 14978994 0 386907 440777 551350 311730 173114 1863878 386907 440777 551350 311730 173114 1863878 13115116 92418 139850 152011 214284 206724 805287 92418 139850 152011 214284 206724 805287 2694508 2820073 2726180 3297335 4246185 15784281 0.83090 0.82720 0.05100 0.04810 X 829455 829455 13581172 3380724 10200448 1083487 679567 403920 1016958 301173 715785 12149608 Trust Accounts 1119523 C 1119523 CASH SURRENDER VALUE LIFE INS. 1602436 SECURITY DEPOSITS 64501 1666937 X 8134186 -433493 4235678 3802185 4332001 148115 148115 4480116 8915938 4081348 4081348 4834590 148115 148115 4982705 Part X, Line 2: The Corporation and its affiliates, with the consent of its sole member, has elected to be taxed under sections of the federal and state income tax laws, which provide that, in lieu of income taxes, the member separately accounts for its share of the Corporation's items of income, deduction, losses, and credits. Therefore, these statements do not include any provision for corporate income taxes. The Corporation and its affiliates sole member is a non-profit corporation organized under section 501(c)(3) of the Internal Revenue Code. The Corporation and its affiliates undergoes an annual analysis of its various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities. As of March 31, 2019 and 2018, the unrecognized tax benefit accrual was zero. The Corporation and its affiliates will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XI, Line 2d - Other Adjustments: HADC Ridgeway Revenue Per Audit Reported as Separate Entity for Tax Purposes 4,107,593. Increase in CSV of Life Insurance - Unrealized 128,085. Part XI, Line 4b - Other Adjustments: Mgmt Fees Intercompany & Ridgeway Eliminating 148,115. Part XII, Line 2d - Other Adjustments: HADC Ridgeway Expense Per Audit Reported as Separate Entity for Tax Purposes 4,081,348. Part XII, Line 4b - Other Adjustments: Mgmt Fees Intercompany & Ridgeway Eliminating 148,115. 1 Wish of a Lifetime 110 16th Street Suite 406 Denver CO 80203 262123649 501(c)(3) 6000 Community Cupid Crew Event 1 0 Part I, Line 2: The organization is supporting the Wish of a Lifetime's annual Cupid Crew Valentine's Day Rose Delivery. The organization will directly assist with delivery of roses to facilities in Cloquet, Wadena and New Ulm, communities that Housing Alternatives Development Company serves. X X X 0 0 0 0 0 0 0 0 0 Paul Abzug CEO/President 296400 0 0 0 5293 0 0 0 10530 0 312223 0 0 0 Charles L Darth Former Director 36000 0 0 0 0 0 0 0 0 0 36000 0 0 0 Louis Stocco Dir of Development (thru Dec)/Former Director 73347 0 0 0 0 0 0 0 427 0 73774 0 0 0 Daniel Pakonen Dir of Operation (thru Dec)/Former Director 69680 0 0 0 0 0 1750 0 427 0 71857 0 0 0 A City of Cloquet Minnesota 416005060 189022BM7 2013-05-10 9231073 83 Unit Sr. Housing Facility; 2013A Current Refunding Bonds Issued 6/30/05 0 0 0 B City of Wadena Minnesota 416005605 930225AF4 2017-01-20 5292609 49-Unit Multifamily Assisted Living Senior Housing; Series 2017A 0 0 0 A 9315000 184621 9046452 2013 1 0 1 1 B 5370000 105852 4971204 215553 2017 0 0 0 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 1 0 0 0 0 0 B 0 0 0 0 0 0 0 0 0 A 0 B 0 Schedule K, Part I Bond A: The issue price shown on Schedule K, Part I does not match the issue price found on Form 8038 because it includes an original issue discount of $83,927. Bond B: The issue price shown on Schedule K, Part I does not match the issue price found on Form 8038 because it includes an original issue discount of $77,391. Schedule K, Part III, Line 9, Part IV, Line 7 and Part V: The Organization has entered into a tax regulatory agreement to provide formal written procedures for monitoring tax-exempt bond compliance and the Organization's general counsel monitors post-issuance compliance on an ongoing basis. Schedule K, Part IV, Line 2c Bond A: The rebate computation was completed May 22, 2018. Part III, Line 1, Description of Organization Mission Continued... -Aid low and moderate income households -Advance equal housing opportunity -Combat community deterioration and blight through programs fostering housing and economic development to encourage and strengthen integration in housing -Provide quality low and moderate income and senior housing options that offer comfortable living environments, with programs and services that encourage continued independence and active retirement with preventive and supportive health care Housing Alternatives Development Company (HADC) was formed for the purpose of owning, managing, and operating single and multifamily rental housing and elderly housing. The Organization's primary exempt purpose is to provide low and moderate income housing, senior housing, senior assisted living facilities, nursing homes, and student housing, and promote health in the senior community and the general community in underserved communities. The purpose of HADC shall include the acquisition, construction, rehabilitation, ownership, management, operation, leasing, improving, financing, refinancing, pledging and selling facilities to provide these services. Substantially all of the Corporation's revenue is derived from the rental of its housing units and various services provided to the residents. Form 990, Part VI, Section A, line 8b No committees are currently acting on behalf of the full governing board. Form 990, Part VI, Section B, line 11b The draft of the 990 is shared with management, the entire board, and outside exempt organization tax counsel for review and comment. The final return is provided to all board members prior to filing. Form 990, Part VI, Section B, line 12c The 2011 COI Policy applies to the Board and defines both financial conflicts and perceived conflict of interest. Board Members with conflicts are required to make disclosure to the Board and upon concurrence that a conflict of interest exists, the Board Member involved is required to abstain from voting on the issue and is to not participate in the discussion other than to provide factual information about the applicant organization or vendor in question when asked. Any abstentions due to the invocation of the COI Policy are to be recorded in the Minutes of the meeting. This same procedure has been applied to the President/CEO and a updated policy will be adopted in the current tax year to expand the coverage to other executive staff. Form 990, Part VI, Section B, line 15a The prior Board of Directors procured a comparability study for the CEO/President that supported the remuneration provided to the CEO/President in fiscal year ended 3/31/2019. The current Board of Directors procured a robust comparability study for the same position in December 2018. That study supported the remuneration provided in the year ended 3/31/2019, and a separate tax opinion satisfying IRC Section 4958 reasonableness standard for the year end 3/31/2020. Form 990, Part VI, Section C, line 19 The Organization made its governing documents, conflict of interest policy, and financial statements available upon request. Form 990, Part XI, line 9: Decrease in CSV of Life Insurance - Unrealized 128,085. Net Transfer from Related Organization 47,416. HADC Cloquet LLC 18336 Minnetonka Blvd Suite C Deephaven MN 55391 411997556 Multifamily Housing MN 2791934 8649510 Housing Alternatives Development Company HADC Services LLC 18336 Minnetonka Blvd Suite C Deephaven MN 55391 454082840 Management & Administrative Services MN 4196221 392705 Housing Alternatives Development Company HADC Wadena LLC 18336 Minnetonka Blvd Suite C Deephaven MN 55391 814202267 Developing, constructing, owning, and operating of The Meadows. MN 1010622 5902957 Housing Alternatives Development Company HADC Ridgeway 18336 Minnetonka Boulevard Suite C Deephaven MN 55391 411897376 Multifamily Housing MN 501(c)(3) Line 10 Housing Alternatives Development Company 1 HADC Ventures 18336 Minnetonka Boulevard Suite C Deephaven MN 55391 411893867 Multifamily Housing MN 501(c)(3) Line 10 Housing Alternatives Development Company 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 HADC Ridgeway O 2166997 Accrual HADC Ridgeway Q 194937 Accrual HADC Ridgeway R 52584 Accrual HADC Ridgeway S 100000 Accrual