Homestead Affordable Development Corporation

Nonprofit profile at a glance

EIN
471656765
IRS 990 coverage
2017–2020
Forms available
Form 990 2020, Form 990-N 2016
Location
Chicago, IL, USA
Phone
3122220777
Rating
80
Verdict
STRONG
Rating confidence
Moderate
Sector
Community, Neighborhood Development

Official website

Reported finances

Revenue
$241,500
Expenses
$1,981,900
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

4 people listed

Executive titles in this filing

  • MONICA MAKIN (EXECUTIVE DIRECTOR)
  • HOWARD CONANT (PRESIDENT/TREASURER)

Highest reported compensation

  • MONICA MAKIN (EXECUTIVE DIRECTOR): $38,400 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

HADC'S mission is to provide affordable housing to moderate and low income families and seniors in the Midwest region of the United States. One of the most pressing problems in the Midwest, and across the U.S., has been and continues to be providing adequate, safe and clean affordable housing for the very low, low and moderate income families and senior citizens. As the U.S. economy improves, it has left in its wake a larger divide in rental prices and the "Housing Wage."

What it reported doing in 2020

CHICAGO HOUSE PROJECT: Chicago House has partnered with Homestead Affordable Development Corp to develop a multi-use facility at 6001 N. Clark St. in Chicago, Illinois. The site currently consists of a vacant, single-story building with an adjacent parking lot. The property currently is owned by a commercial enterprise that operates several grocery stores in the Chicagoland area and the owner has expressed his interest in operating a grocery store on the first floor of this property following development. Chicago House and Homestead plan to acquire ownership of the property from the investor and then construct at least two additional stories on top of the existing structure. The completed project would include office space for Chicago House on the second floor and affordable housing units for Chicago House clients on the third floor.

Operating model

Revenue model
Investment-supported. 100% of the money available for current operations came from recurring investment income.
Distribution model
Grant intermediary. The nonprofit sent 98% of its reported program spending out as grants.

The verdict

STRONG - 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: 87
  • Transparency & Controls: 93
  • Accountability: 74
  • Sustainability: 5
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 93.6%; rating input score 94
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 99.6%; rating input score 100; 57th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

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: -720.7%; rating input score 0; 0th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 1.9%; rating input score 42; 42nd percentile among comparable filings

Growth

  • Program expense growth: 102.8% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: -91.2% per year; rating input score 0; 0th percentile among comparable filings
  • Asset growth: -39.1% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 93.6% of spending went to programs
  • Governance: 3 of 3 board members independent · 3 of 8 filing controls reported
  • Programs: 3 filed program accomplishments · $1.9M in reported program spending
  • Leadership: top reported pay $38K · 4 people listed
  • Consistency: 18 of 18 current checks pass
  • Schedules: 5 filed schedules · includes grants
  • Filing history: 4 filing years from 2017 to 2020
  • Contacts: How to reach this organization
  • Money network: 30 filed money-flow records
  • Related organizations: 28 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 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Officer compensation ratio scored 42/100.