2020-06-23T09:46:23-05:00 2019-12-31 221478099 COHNREZNICK LLP 7501 WISCONSIN AVENUE SUITE 400E BETHESDA MD 20814 990 2019-01-01 841542593 NEIGHBORWORKS CAPITAL CORPORATION NEIG 2408211651 8484 GEORGIA AVENUE SUITE 330 SILVER SPRING MD 20910 JAMES FERRIS CHIEF EXECUTIVE OFFICER 2408211651 2020-05-26 1 GLENN M SHELTON P00228007 3016529100 2020-05-21 209.59.242.35 2020-05-26 12:59:47 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 5977B2EE4F245A7782B73B46A9C42D0275CA7C2B 2019 2020-09-23 17:36:50Z JAMES FERRIS 8484 GEORGIA AVENUE SUITE 330 SILVER SPRING MD 20910 7713397 0 X WWW.NEIGHBORWORKSCAPITAL.ORG X 2000 CO NEIGHBORWORKS CAPITAL DELIVERS THE FLEXIBLE CAPITAL NEEDED BY NEIGHBORWORKS AMERICA AFFILIATES TO PROVIDE AFFORDABLE HOMES AND STRENGTHEN COMMUNITIES. 9 9 14 0 0 0 2315000 2475000 4442269 5188423 13258 46877 501 125 6771028 7710425 90000 30000 0 0 1496220 1624837 0 0 177670 2457377 3230007 4043597 4884844 2727431 2825581 86011852 101967537 43147032 56265937 42864820 45701600 NEIGHBORWORKS CAPITAL DELIVERS THE FLEXIBLE CAPITAL NEEDED BY NEIGHBORWORKS AMERICA AFFILIATES TO PROVIDE AFFORDABLE HOMES AND STRENGTHEN COMMUNITIES. 0 0 4288388 30000 5188548 PROVIDING FINANCING FOR THE ACQUISITION, DEVELOPMENT, AND REHABILITATION OF AFFORDABLE HOMES FOR SALE, RENTAL AND COMMERCIAL PROJECTS. 4288388 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 25 0 1 14 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X JIM FERRIS 2408211651 8484 GEORGIA AVE SUITE 330 SILVER SPRING MD 20910 CAROLINE HORTON DIRECTOR 1.00 X 0 0 0 JEANNE PINADO VICE PRESIDENT 1.00 X X 0 0 0 JEFF REED TREASURER 1.00 X X 0 0 0 KRISTIN FAUST PRESIDENT 1.00 X X 0 0 0 MEGAN TEARE DIRECTOR 1.00 X 0 0 0 MICHAEL CARROLL DIRECTOR 1.00 X 0 0 0 PETER DALY DIRECTOR 1.00 X 0 0 0 REBECCA REGAN DIRECTOR 1.00 X 0 0 0 ROSA RIOS VALDEZ DIRECTOR 1.00 X 0 0 0 JAMES FERRIS CEO 38.00 X 263452 0 29808 STEPHEN PEELOR CHIEF LOAN OFFICER 38.00 X 179740 0 28621 CLARENCE WATSON SENIOR PORTFOLIO MANAGER 38.00 X 130424 0 7662 TAMAR SARKISIAN SENIOR LOAN OFFICER 38.00 X 127244 0 13447 ADAM COILE SENIOR PORTFOLIO MANAGER 38.00 X 110631 0 24062 ELIZABETH O'LEARY CHIEF PORTFOLIO OFFICER 38.00 X 110583 0 5025 922074 0 108625 6 0 1 0 KLEIN HORNIG LLP 1325 G STREET NW SUITE 770 WASHINGTON DC DC 20005 LEGAL SERVICES 159050 COMPASS ADVISORS LLC 4405 EAST-WEST HWY SUITE 306 BETHESDA MD 20814 CONSULTING 143700 2 2475000 2475000 LOAN INTEREST 531390 4508465 4508465 LOAN FEES 531390 676331 676331 LOAN SERVICE FEE 531390 3627 3627 5188423 49849 49849 2972 -2972 -2972 -2972 OTHER REVENUE 900099 125 125 125 7710425 5188548 0 46877 30000 30000 293260 230711 42565 19984 1074533 845347 155962 73224 60318 47453 8755 4110 100763 79272 14625 6866 95963 75495 13928 6540 16918 13654 544 2720 51430 20552 20612 10266 86756 82418 4338 275797 138150 117085 20562 85920 77328 8592 44347 38666 4046 1635 86486 77837 7784 865 107914 86331 16187 5396 104581 88894 5229 10458 7346 6244 1102 1616341 1616341 14267 10700 2854 713 18769 15954 1877 938 IMPAIRMENT OF INVESTMEN 656865 656865 BANK FEES 15882 13500 2382 SERVICE FEE EXPENSE 12346 12346 DUES 9896 8906 990 18146 15424 2259 463 4884844 4288388 418786 177670 2472423 3026103 6730374 3861395 21303 123133 37245 35235 191841 102901 21068 88940 507981 519182 75879441 93990155 342017 323394 86011852 101967537 447074 546188 42699958 55719749 43147032 56265937 X 14857362 17649142 28007458 28052458 42864820 45701600 86011852 101967537 X 2825581 11201 -2 X 0 1 X 1 1 1 X 2438000 3000000 3326905 2315000 2475000 13554905 2438000 3000000 3326905 2315000 2475000 13554905 13554905 7040 9053 6520 13258 49849 85720 501 125 626 13641251 20169219 0.99370 0.99670 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2018 AMOUNT: $ 501. 2019 AMOUNT: $ 125. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8049 3256 4793 125510 49181 76329 58282 50464 7818 88940 LOANS RECEIVABLE 93990155 F 93990155 X 7724598 11201 11201 7713397 -2972 -2972 7710425 4887816 2972 2972 4884844 0 4884844 PART X, LINE 2: THE ORGANIZATION HAS APPLIED FOR AND RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE ("IRS") TO BE TREATED AS A TAX-EXEMPT ENTITY PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. DUE TO ITS TAX-EXEMPT STATUS, THE ORGANIZATION IS NOT SUBJECT TO INCOME TAXES. THE ORGANIZATION IS REQUIRED TO FILE AND DOES FILE TAX RETURNS WITH THE IRS AND OTHER TAXING AUTHORITIES. ACCORDINGLY, THESE FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION FOR INCOME TAXES, AND THE ORGANIZATION HAS NO OTHER TAX POSITIONS WHICH MUST BE CONSIDERED FOR DISCLOSURE. TAX RETURNS FILED BY THE ORGANIZATION ARE SUBJECT TO EXAMINATION BY THE IRS FOR A PERIOD OF THREE YEARS. WHILE NO TAX RETURNS OF THE ORGANIZATION ARE CURRENTLY BEING EXAMINED BY THE IRS, TAX RETURNS FILED SINCE 2016 REMAIN OPEN FOR EXAMINATION. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS, REPORTED WITH EXPENSES ON F/S PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS, REPORTED WITH EXPENSES ON F/S 1 STEWARDS OF AFFORDABLE HOUSING FOR THE FUTURE 750 9TH STREET NW SUITE 650 WASHINGTON DC 20001 061697213 501(C)(3) 30000 PILOT PROGRAM TO ASSESS AND DOCUMENT BEST PRACTICES FOR ENERGY EFFICIENT HVAC SYSTEMS 1 PART I, LINE 2: NEIGHBORWORKS CAPITAL MAINTAINS DOCUMENTATION SUCH AS THE SIGNED AND APPROVED AWARD FUNDING FORM AND DOCUMENTATION FOR THE COST OF REIMBURSEMENT, WHEN APPLICABLE. SELECTION OF GRANTEE IS DETERMINED BY THE LENDING TEAM AND USE OF FUNDS IS NOTED IN THE APPROVED AWARD FUNDING FORM. ADDITIONALLY, NEIGHBORWORKS CAPITAL KEEPS TRACK OF THE FUNDING SOURCES USED TO MAKE THE AWARD TO THE GRANTEE. X X 1 0 0 0 0 0 0 1 0 JAMES FERRIS CEO 237796 0 22500 0 3156 0 15902 0 13906 0 293260 0 0 0 STEPHEN PEELOR CHIEF LOAN OFFICER 163956 0 15000 0 784 0 10949 0 17672 0 208361 0 0 0 PART I, LINE 4A FOR 2019, CLARENCE WATSON RECEIVED A $11,104 SEVERANCE PAYMENT. PART I, LINE 7 ANNUAL PERFORMANCE REVIEW BONUSES BASED ON INDIVIDUAL GOAL ACHIEVEMENT. FORM 990, PART VI, SECTION B, LINE 11B UPON RECEIPT OF THE DRAFT 990, THE FINANCE COMMITTEE, CONSISTING OF AT LEAST ONE FINANCE PROFESSIONAL, REVIEWS THE 990 FOR ACCURACY. THE FORM 990 IS DISTRIBUTED TO ALL MEMBERS OF THE GOVERNING BODY PRIOR TO ITS SUBMISSION TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION ENFORCES A DUTY TO DISCLOSE THAT IN ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS, WHEREUPON A DETERMINATION IS MADE REGARDING WHETHER A CONFLICT OF INTEREST EXISTS BY THE BOARD OR COMMITTEE ONCE THIS DISCLOSURE IS MADE. A WRITTEN AND SIGNED ANNUAL STATEMENT IS REQUIRED OF EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS. PERIODIC REVIEWS ARE CONDUCTED OF THESE ANNUAL STATEMENTS. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY THE CHAIR OF THE NEIGHBORWORKS CAPITAL BOARD OF DIRECTORS GAINS FEEDBACK FROM THE DIRECTORS ON CEO PERFORMANCE AND CONDUCTS AN ANNUAL WRITTEN REVIEW OF THE CEO. IN ADDITION, IT DETERMINES ANY BONUS EARNED AND APPROVES CEO COMPENSATION FOR THE UPCOMING FISCAL YEAR. COMPENSATION INFORMATION USED BY THE BOARD INCLUDES A COMPENSATION SURVEY DONE BY NEIGHBORWORKS CAPITAL'S NATIONAL TRADE ASSOCIATION, OPPORTUNITY FINANCE NETWORK (OFN), AS WELL AS AN EXECUTIVE COMPENSATION REVIEW BY QUATT ASSOCIATES. THIS INCLUDES THE SALARIES OF THE SENIOR MANAGEMENT TEAM IN ADDITION TO THE CEO. THE CEO USES THE QUATT INFORMATION AS A GUIDE FOR THE SENIOR MANAGEMENT COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC ON NEIGHBORWORKS CAPITAL'S WEBSITE. FORM 990, PART XI, LINE 9: OTHER ADJUSTMENT -2.