EQ Housing Advisors

What it reported doing in 2024

The past, present, and future activities of the Corporation focus on investing in, acquiring, building, , rehabilitating, and owning affordable housing for low-, very low-, moderate-, and workforce-income families and individuals. In compliance with IRS Revenue Procedure 1996-32, for each rental housing facility developed or acquired by the Corporation:1. At least 75 percent of the units will be occupied by residents earning no more than 80 percent of the area's median income (AMI), as computed and published by the Department of Housing and Urban Development (HUD).2. Additionally, either: a) At least 20 percent of the units will be occupied by residents earning no more than 50 percent of AMI as published by HUD; orb) At least 40 percent of the units will be occupied by residents earning no more than 60 percent of AMI as published by HUD.For multifamily rental housing projects, the Corporation will adhere to a broader mission that provides for much needed workforce housing at 80-120% of AMI to address workforce housing needs in its target markets. These units are intended to provide affordable housing options for individuals and families who earn above traditional affordable housing thresholds but still face challenges accessing market-rate housing.For for-sale housing projects, the Corporation intends to sell housing units to residents/owners earning between 80 percent and 120 percent of AMI, as computed and published by HUD. These workforce housing investments align with the Corporation's mission to expand access to affordable housing across a broader income spectrum while addressing critical gaps in housing affordability.The Corporation's activities reflect its commitment to serving households earning between 30 percent and 120 percent of AMI through a combination of rental housing developments and acquisitions, for-sale housing initiatives, and workforce housing investments. These efforts are designed to meet diverse community needs while maintaining compliance with applicable IRS requirements and broadening our mission.The activities of the Corporation will be conducted by the Board of Directors and officers of the Corporation and a management company as described in Part V, Question 7, which the Corporation anticipates contracting with after it receives tax-exempt status. The Corporation will conduct its activities in the United States, with an initial focus on the Atlanta metro area. 100 percent of the Corporations time will be allocated to its charitable activities. The Corporation's activities will be funded by charitable grants from governmental entities, individuals, and private foundations, equity and/or debt from financial institutions, investment income, and rents and fees from tenants living in the Corporations facilities. Rent and fees will be reasonable and the Corporation intends to charge a monthly rental fee as determined by HUD annually. The monthly rental fee schedule will be determined on a facility by facility basis and will be in an amount sufficient to repay any indebtedness in connection with the facility, maintain adequate reserves for the upkeep of the facility and pay all other reasonable costs associated with running a quality affordable housing facility. It is the Corporation's intention to operate its facilities at the lowest feasible cost consistent with its financial obligations and charitable purposes. The Corporation will attempt to make arrangements for payment plans that follow HUD rules in the event a tenant is unable to pay his or her portion of rent or other fees. If a tenant is still unable to make payments after a payment plan is put in place, then the Corporation will follow HUD rules and local landlord tenant laws for notices and processing of eviction. 100 percent of the Corporation's revenue and expenses will be allocated to it's activities.The activities of the Corporation will further its tax exempt purposes by providing affordable, quality housing to low income individuals and

Financial Efficiency

• Mission deployment rate: 24%; rating input score 24
• Program expense ratio: 97.5%; rating input score 97
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 16th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 3 of 7 controls in place; rating input score 43
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Fail
  • Document-retention policy: Fail
  • CEO compensation review process: NotApplicable
  • 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: 75.5%; rating input score 97; 97th percentile among comparable filings
• Total-asset coverage ratio: 15.61; rating input score 95; 95th percentile among comparable filings
• Liabilities to assets ratio: 0.46; rating input score 17; 17th percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 81; 81st percentile among comparable filings

Growth

• Program expense growth: 150% per year; rating input score 100; 100th percentile among comparable filings
• Revenue growth: 61.1% per year; rating input score 100; 98th percentile among comparable filings
• Asset growth: 110.1% per year; rating input score 100; 99th percentile among comparable filings