Orange Senior Housing Inc

What it reported doing in 2024

During 2024, OSH continued in its role as the managing general partner of the Triangle Terrace Affordable Limited Partnership (the LP), which owns a 75-unit senior affordable apartment community that was constructed for OSH in the 1980s, then recapitalized into a tax credit partnership and renovated during 2015-2016. A wholly owned, for-profit limited liability company (LLC) represents OSH in the LP. There is a staff services agreement between OSH and its subsidiary LLC. There were no extraordinary events in the operation of the property during 2023. Tenant occupancy exceeded 95%. A Resident Services Coordinator assists the low-income elderly residents to live independently for as long as practical before moving to housing that provides care; the RSC is funded by a grant from HUD. The subsidiary LLC collects (i) an annual partnership management from the LP and (ii) 50% of surplus cash from the operation of the property. The LLC pays OSH a staff services fee. OSH also collects an annual interest-only payment from the LP for its $1.5 million purchase money loan to the partnership. OSH also continued the process of co-developing a new community of senior affordable apartments named Katella Terrace on 1.54 acres of land that is owned by the City of Orange. Entitlement for plans to construct 74 apartment homes on the site was approved by the Orange City Council in September 2019. In December 2022, the California Tax Credit Allocation Committee (CTCAC) awarded the project state and federal tax credits with an estimated value of $26,974,000, which completed the financing plan for the project. In February 2023, architectural and engineering plans were completed, and an application for a building permit was delivered to the City of Orange. In June 2023, the City of Orange issued a permit for construction; and in July, general contractor Portrait Construction, Inc. (Portrait) commenced the construction of underground utilities for the project. In January 2024, wood framing for the apartment building began. On December 23, the Architect issued a Certificate of Substantial Completion for the building. Occupancy of the building will follow the testing and approval of all fire and life safety systems by the City of Orange.

Financial Efficiency

• Mission deployment rate: 1.1%; rating input score 1
• Program expense ratio: 88.9%; rating input score 89
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 4 of 7 controls in place; rating input score 57
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Fail
  • Document-retention policy: Pass
  • 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: 96.9%; rating input score 100; 100th percentile among comparable filings
• Total-asset coverage ratio: 488.32; rating input score 100; 100th percentile among comparable filings
• Liabilities to assets ratio: 0.07; rating input score 30; 30th percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 69; 69th percentile among comparable filings

Growth

• Program expense growth: 11.6% per year; rating input score 100; 73rd percentile among comparable filings
• Revenue growth: -11.4% per year; rating input score 0; 5th percentile among comparable filings
• Asset growth: 8.1% per year; rating input score 100; 60th percentile among comparable filings