Happy Harbor Senior Housing

Nonprofit profile at a glance

EIN
760674922
IRS 990 coverage
2010–2015
Forms available
Form 990 2015, Form 990-N 2009
Location
The Woodlands, TX, USA
Phone
2813632600
Rating
64
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Senior Citizens' Housing/Retirement Communities

Official website

Reported finances

Revenue
$1,076,856
Expenses
$400,944
Assets
$2,630,232
Liabilities
$2,780,374

Source: IRS Form 990. Selected filing: tax year 2015. Amounts in USD.

Leadership & pay

13 people listed

Executive titles in this filing

  • MR RONALD E JENNETTE (PRESIDENT)
  • MR HAROLD ERMSHAR (EXECUTIVE DIRECTOR)
  • MR MATTHEW CURRIE (VP/EXECUTIVE DIRECTOR)

Highest reported compensation

  • MR RONALD E JENNETTE (PRESIDENT): $288,177 total reported compensation
  • MR CHUCK CHILDRESS (SR VP OPERATIONS): $167,743 total reported compensation
  • MR DON STEPHENS (CFO): $162,672 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2015. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The organization is committed to quality living for senior adults in a faith-based environment. The organization takes great pride in being an important part of the broader, local community where it serves seniors and provides local employment in meeting its mission of service ministry to senior adults. The covenant connection with the Texas annual conference of united methodists links the organization to its heritage and origin, though the organization openly accepts persons of all faiths and beliefs; with no discrimination toward residents, staff, board members, volunteers, donors, vendors, etc. The organization accepts donations, usually through the mrc foundation, to assist and retain residents who outlive their resources and run low on funds or eventually even out of money through no fault of their own. The organization provides services, programs, activities, care and housing to seniors in independent/residential living apartments, assisted living apartments, specialty memory sup

What it reported doing in 2015

Happy harbor senior housing (hud project no. 114-11232) (the project) is a tax exempt organization operating a 51-unit apartment complex for the elderly located in la porte, Texas. The project is operated under section 207 of the national housing act and regulated by the united states department of housing and urban development (hud) withrespect to rental charges and operating methods. The project's section 207 hud-insured loan is considered a major program. The project is also subject to section 8 housing assistance payments and service coordinator grant agreements with hud, and a significant portion of the project's rental revenue is received from hud through these agreements. The project's section 8 rent subsidy and the service coordinator grant are considered nonmajor programs. The project is sponsored by methodist retirement communities (mrc), who also appoints the board of directors of the project.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
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 - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 36
  • Transparency & Controls: 84
  • Accountability: 88
  • Sustainability: 73
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 24.6%; rating input score 25
  • Program expense ratio: 66%; rating input score 66
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 80%; rating input score 80; 16th percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 62.8%; rating input score 97; 97th percentile among comparable filings
  • Total-asset coverage ratio: 6.56; rating input score 88; 88th percentile among comparable filings
  • Liabilities to assets ratio: 1.06; rating input score 7; 7th percentile among comparable filings
  • Officer compensation ratio: 25.8%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: -15.7% per year; rating input score 0; 8th percentile among comparable filings
  • Revenue growth: 13.3% per year; rating input score 100; 78th percentile among comparable filings
  • Asset growth: 12.5% per year; rating input score 100; 74th percentile among comparable filings

Details

  • Where the money goes: 24.6% of revenue deployed · 66% of spending went to programs
  • Governance: 4 of 5 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $265K in reported program spending
  • Leadership: top reported pay $288K · 13 people listed · 4 of 6 pay-setting controls reported
  • Consistency: 32 of 32 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 6 filing years from 2010 to 2015
  • Contacts: How to reach this organization
  • Related organizations: 15 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.

  • High — Financial Efficiency: Mission deployment rate scored 25/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 7/100.
  • High — Sustainability: Officer compensation ratio scored 7/100.