Detroit Affordable Homes Inc

Nonprofit profile at a glance

EIN
611595858
IRS 990 coverage
2014–2024
Forms available
Form 990 2024
Location
Berkley, MI, USA
Phone
2486299155
Rating
78
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Low-Income & Subsidized Rental Housing

Reported finances

Revenue
$397,246
Expenses
$738,068
Assets
$2,862,224
Liabilities
$667,103

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

5 people listed

Executive titles in this filing

  • Kirk Bruce (Executive Director)
  • David T Dorsey III (Director, President)

Highest reported compensation

  • Kirk Bruce (Executive Director): $553,330 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To develop and/or preserve affordable housing for Extremely Low Income ELI, Very Low Income VLI and Low Income LI families, seniors, disabled and disadvantaged populations, asset management of existing stabilized projects, underwriting new projects, overseeing construction, and applying for government incentives.

What it reported doing in 2024

New Programs Nevada RD Portfolio, Emerald Apartments, Wild Rose Senior Housing, Theressa James Manor Apartments, and ADI Preservation Portfolio. During the tax year, the organization began the process of preserving 370 units of affordable rental housing across four states in underserved neighborhoods, These projects will be financed through a combination of LIHTC, HUD HOME grants, HUD HNTF grants, AHP grants, Federal Solar tax credits, USDA 538 construction and permanent debt, USDA 515 assumable permanent debt, HUD 221d4 and 223f construction and permanent financing, construction tax exempt bonds, and conventional debt. 8.5m of grants were applied for in 2024. The organization is overseeing all phases of development including site acquisition, community engagement, architect design and supervision, construction, property management, and asset management. All units are reserved for households earning at or below 60 of the Area Median Income with the majority of the units set aside for extremely low income household populations of which many are seniors and/or disabled.

Operating model

Revenue model
Other-operating. 99% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 88
  • Transparency & Controls: 71
  • Accountability: 74
  • Sustainability: 25
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 97.9%; rating input score 98
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Scored; rating input score 0

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -85.8%; rating input score 3; 3rd percentile among comparable filings
  • Total-asset coverage ratio: 3.88; rating input score 74; 74th percentile among comparable filings
  • Liabilities to assets ratio: 0.23; rating input score 18; 18th percentile among comparable filings
  • Officer compensation ratio: 75%; rating input score 1; 1st percentile among comparable filings

Growth

  • Program expense growth: 17.3% per year; rating input score 100; 82nd percentile among comparable filings
  • Revenue growth: 14.5% per year; rating input score 100; 81st percentile among comparable filings
  • Asset growth: 19.1% per year; rating input score 100; 83rd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 97.9% of spending went to programs
  • Governance: 4 of 4 board members independent · 3 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $722K in reported program spending
  • Leadership: top reported pay $553K · 5 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 18 of 18 current checks pass
  • Schedules: 5 filed schedules · includes executive pay and related organizations
  • Filing history: 10 filing years from 2014 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 10 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • High — Sustainability: Operating margin scored 3/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 1/100.
  • High — Sustainability: Liabilities to assets ratio scored 18/100.