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HomeMy WebLinkAbout0017_6_CDBG - FY 2017-2018 Allocation - Exhibit E Habitat for Humanity ApplicationCOUNTY OF RIVERSIDE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FOR CITY OF rake Elsinore 2017- 2018 CITY CDBG ALLOCATION I. GENERAL INFORMATION Applying Organization Name: Habitat for Humanity Inland Valley Type of Organization: Non -Profit Organization Faith Based Organization ❑ For -Profit Organization ❑ Institution of Higher Education ❑ Organization Address: 41615 Winchester Rd, Ste 214 city: Temecula Zip Code: 92590 Mailing Address: 27475 Ynez Rd #390 City: Temecula Zip Code: 92591 Telephone Number: 951-296-3362 Fax Number: 951-296-3363 Executive Director: Tammy Marine Telephone Number: 951-296-3362 E-mail: tammy@habitativ.org Program Manager: Mary Stein Telephone Number: 951-296-3362 E-mail: mary@habitativ.org Grant Writer: Tammy Marine Address (if different from above): Telephone Number: 951-296-3362 E-mail: tammy@habitativ.org II. ORGANIZATIONAL HISTORY (This is applicable only if you are a non-profit organization) Date Organization founded: 1991 Date Organization incorporated as a non-profit organization(Attach Articles ofincorporation and Bylaws): 2-21-91 Federal identification number: 33-0461604 DUNS Number: 002247341 Organization Web Address: www.habitativ.org Does your Organization expend $750,000 or more a year in federal funds? Y ❑ or N ❑■ Number of paid staff: 18 Number of volunteers: 1,392 Members/Board of Directors (Attach): F Ill. PROJECT ACTIVITY A. Name of Project: Critical Home Repairs & Maintenance Project B. Specific Location of Project (Attach Project Map -include street address; if a street address has not been assigned provide APN) Street or APN: City: C. CDBG Funds Requested: $50,000 Zip Code: (total amount for the project only) D. Where will the proposed activity occur (be specific as to the geographic boundaries)? If the project involves a new or existing facility, what is the proposed service/benefit area for the facility? For funding received from the City of Lake Elsinore, projects will be completed for Lake Elsinore residents, within City limits. E. In which City (ies)/Communities does the activity occur? City lies): Lake Elsinore (for the purposes of this grant) We also serve Murrieta, Temecula, Wildomar, Menifee and Perris. Community lies): NOTE: EDA will make the final determination of the appropriate service area of all proposals. F. If this project benefits residents of more than one community or jurisdiction, have requests been submitted to those other entitlement jurisdictions? (i.e., County district(s) 1'` 2nd 3,d 4`h, and/or 51h, City of Palm Springs, City of Moreno Valley, City of Riverside, etc.) Yes, we plan on submitting requests directly to the County of Riverside, and the Cities of Temecula, Menifee, Canyon Lake and Perris. 1 G. Check ONLY the applicable category your application represents. 0 Public Service ❑ Homeless Activities ❑ Real Property Acquisition (Must consult with EDA rn for to submitting application) ❑ Housing ❑ Rehabilitation/Preservation (please provide picture of structure) ❑ Public Facilities (construction) ❑ Infrastructure (i.e. Streets, Sewer, Sidewalk, etc.) ❑ Other: (provide description) H. Respond to A& 8 only if this application is for a public service project. (a) Is this a NEW service provided by your agency? Yes ❑ No ❑� (b) if service is not new, will the existing public service activity level be substantially increased or improved? Each year new applicants are in need of affordable and free housing repairs. IV. PROJECT NARRATIVE A. Provide a detailed Proiect Description. The description should only address or discuss the specific activities, services, or project that is to be assisted with CDBG funds. If CDBG funds will assist the entire program or activity, then provide a description of the entire program or activity: Through the Critical Home Maintenance and Repairs Program, Habitat for Humanity Inland Valley is providing both major and minor home repair and maintenance services to Lake Elsinore residents. The goal of this project is to help keep homes affordable and to keep families, seniors and veterans secure. These repairs lessen the financial impact that unexpected or needed maintenance takes on household resources to keep homes affordable and lower costs. We serve those most at risk for becoming homeless, particularly those with income between 50-80% of the AMI as defined by HUD. Over 85% of our clients are senior and/or veterans, and it has been reported that 1/3 of the homeless population is made of families, making us painfully aware of how vulnerable those in need of affordable housing are in need of our services. Examples of types of projects that we will provide through this program include: landscaping, window replacement, exterior painting, wheelchair ramp installation, fence repair, weed abatement, and minor exterior fascia repair. Larger, more critical repairs include roof repair, furnace or A/C installation. B. Provide a detailed description of the proposed use of the CDBG funds only (e.g. client scholarships, purchase of specific equipment, rent, supplies, utilities, salaries, etc.): CDBG funds from the City of Lake Elsinore will be used in part with volunteer labor to serve low to moderate income homeowners within the City of Lake Elsinore. With volunteer labor, our efforts and resources go farther and can reach more residents. CDBG funds will be used to provide staffing, skilled labor, local subcontractors, construction materials for repairs and maintenance projects, transportation expenses related to projects and fees/permits required for projects. C. What are the goals and objectives of the project, service, or activity? How will you measure and evaluate the success of the project to meet these goals and objectives (measures should be qualitative)? Through this project, our goal is to serve between 15-30 individuals with 10-15 projects. In the past we have proposed a higher number of individuals to be served, but we have found that roughly 85% of those seeking services are either seniors or veterans with only one individual within the home. As a result, our project numbers are higher, but individuals served is lower. We will measure and evaluate our success based upon services rendered and the number of clients served. We utilize a client database system which helps us track each client, types of services rendered and detailed costs so that we can understand what our community really needs and how we can best deliver those services. Because of our client management tracking software and accounting practices, we will know when we reach our goal of serving 15-30 individuals with these services, providing 10-15 projects. We expect the majority of our clients will be seniors and/or veterans. D. Please identify the project milestones using an Estimated Timeline for Project Implementation: We will serve 15-30 individuals with 10-15 no -cost home maintenance and/or home repair projects between July 1, 2017 and June 30, 2018. Once again, we anticipate that the program will be most accessed by seniors, creating high project numbers and low individual participation since many seniors only have 1-2 residents living within the home. V. PROJECT BENEFIT A. Indicate the number of people or households that will directly benefit from your proposal using CDBG funds: Note: This is based on the expected number of clients to be served if the County funds your project for the requested amount. 15-30 individuals, 10-15 projects B. Indicate the number of unduplicated clients that will be served (An unduplicated client is counted only once, no matter how many direct services the client receives during a funding year): 15-30 individuals. Typically we serve 3-4 clients per project, but as mentioned previously, when seniors or veterans seek our services, we typically only serve 1 or 2 individual clients per project. We will also provide 10-15 projects. C. length of proposed CDBG-funded activities or service (weeks, months, year): 52 weeks D. Service will be provided to (check one or more): Q Men ❑Q Women ❑Q Children (Range of children's ages : 0-16 ) ❑ Homeless (Number of beds at facility:_) El ❑■ Seniors ■❑ Severely Disabled Adults ❑ Migrant Farm Workers M Families E. What methods will be used for community involvement to assure that all who might benefit from the project are provided an opportunity to participate? This program will be advertised through our website, fliers and our outreach campaigns. Oftentimes we will identify and target neighborhoods where blight and low-income dictates living conditions and canvass neighborhoods with fliers. F. What evidence is there of a long-term commitment to the proposal? Describe how you plan to continue the work (project) after the CDBG funds are expended? Habitat has been providing similiar services since 2005 with minor home repair projects and since 2013 with major home repair projects. Due to the success, and the increased need within our community, we have expanded the concept to serve more residents with larger projects. Since 1991, we have been committed to protecting, developing and preserving home affordability. VI. National Obiective All CDBG-funded activities must meet at least one of the following National Objectives of the CDBG program. Indicate the category of National Objective to be met by your activity. CATEGORY A: Benefit to low -moderate income persons (must be documented). Please choose either subcategory 1 or 2: 1. Limited Clientele: The project serves clientele that will provide documentation of their family size, income, and ethnicity. Identify the procedure you currently have in place to document that at least 51% of the clientele you serve are low -moderate income persons. Clients must be making less than 80% of the median income in Riverside County, as determined by HUD guidelines. Income verification and residency is required, through a client intake process, to participate in the program. 2. Clientele presumed to be principally low- and moderate -income persons: The following groups are presumed by HUD to meet this criterion. You will be required to submit a certification from the client (s) that they fall into one of the following presumed categories. The activity will benefit (check one or more) ❑ Abused children ❑ Battered spouses ❑ Elderly persons ❑ Severely disabled adults ❑ Homeless persons ❑ Illiterate adults ❑ Persons living with AIDS ❑ Migrant Farm workers a. Describe the clientele above to be served by this activity: Clients must be making less than 80% of the median income in Riverside County, as determined by HUD guidelines. Income verification and residency is required, through a client intake process, to participate in the program. b. Discuss how this proiect directly benefits low- and moderate- income residents: 100°/% of our clients have incomes lower than 80% of the AMI. Those who we serve include those who are surviving paycheck to paycheck, disabled veterans, and seniors struggling with the basic necessities of life and cannot afford extensive repairs and maintenance to their homes. We provide a hand -up not a hand-out to assist homeowners in the upkeep of maintenance and more home repairs. This programs helps homeowners stay in their homes and concentrates on providing a stable home environment. CATEGORY B: Area Benefit - The project or facility serves, or is available to, ALL persons located within an area where at least 51% of the residents are low/moderate-income. (Applicant is welcome to contact a County of Riverside, EDA CDBG Program Manager for Census Information) 2010 Census Tract and Block Group numbers: Total population in Census Tract(s) / block group(s): Total percentage of low -moderate population in Census Tract(s) / block group(s): CATEGORY C: Activities undertaken to create or retain permanent jobs, at least 51% of which will be made available to or held by low/moderate-income persons. Proposed Job Creation/Retention Total Jobs Expected to Create: Total Jobs Expected to Retain: CATEGORY D: Activities that provide assistance to micro -enterprise owners/developers who are low/moderate-income. Proposed Assistance to Businesses New Businesses expected to assist: Existing Businesses expected to assist: Enter Total Businesses expected to assist: VII. FINANCIAL INFORMATION A. Proposed Project Budget Complete the following annual program budget to begin July 1, 2017. If your proposed CDBG-funded activity will start on a date other than July 1, 2017, please indicate starting date. Provide total Budget information and distribution of CDBG funds in the proposed budget. The budgeted items are for the specific activity for which you are requesting CDBG funding - NOT for the budget of the "entire" organization or agency. (Note: CDBG funds requested must match amount requested in Project Activity, C above.) (EXAMPLE: The Valley Senior Center is requesting funding for a new Senior Nutritional Program. The total cost of the program is $15,000 and $10,000 in CDBG funds is being requested for operating expenses associated with the proposed activity. The total Activity/Project Budget will include $5,000 of other non-CDBG funding and $10,000 in CDBG funds for a Grand Total of $15,000). TOTAL ACTIVITY/ PROJECT BUDGET (Include non-CDBG Funds and CDBG Funds) Personnel A. Salaries & Wages B. Fringe Benefits C. Consultants & Contract Services PERSONNEL SUB -TOTAL 7 CDBG FUNDS REQUESTED -Only $ 153,704 $15,000 $ 29,581 $ 3,150 $ 188,725 $ 20,450 $ 372,010 $ 38,600 I. Non -Personnel A. Space Costs $ 8,100 $ 900 B. Rental, Lease or Purchase of Equipment $4,000 $1,500 C. Consumable Supplies $46,740 $ 5,000 D. Travel $6,500 $ 1,500 E. Telephone $1,260 $ 500 F. Utilities $ $ G. Other Costs $ 26,100 $ 2,000 NON -PERSONNEL SUB -TOTAL: $ 92,700 $ 11,400 III. Other A. Architectural/Engineering Design $ $ B. Acquisition of Real Property $ $ C. Construction/Rehabilitation $ $ D. Indirect Costs $ $ E. Other $ $ OTHER SUB -TOTAL: $ $ GRAND TOTAL: $ 464,710 $ 50,000 B. Leveraging List other funding sources and amounts (commitments or applications) which will assist in the implementation of this activity. Current and pending evidence of leveraging commitments/applications must be submitted with application. (Attach) Federal: State/Local: Private: United Way Inland Valley $15,000 Weingart Foundation $100,000 (general operating support) Fees: Donations: Other: 0 C. What type of long-term financial commitment is there to the proposal? Describe how you plan to continue the work (project) after the CDBG funds are expended? Habitat has been providing similiar services since 2005, with minor home repair projects. We have collaborations and partnerships with other agencies and organizations for in-kind donations and volunteer labor. D. Provide a summary byline item of your organization's previous year's income and expense statement. (Attach) IV] E. Does this project benefit residents of more than one community or jurisdiction, have requests been submitted to those other jurisdictions? Yes ❑■ No ❑ If yes, identify sources and indicate outcome. We plan on submitting a CDBG application for 2016-2017 to the County of Riverside, and the cities of Temecula, Canyon Lake, Perris and Menifee. If no, please explain. F. Was this project or activity previously funded with CDBG? Yes ❑■ No ❑ If yes, when? 7-1-2014 Is this activity a continuation of a previously funded (CDBG) project? Yes M No ❑ If yes, explain: Poverty and affordable housing are a continual need, and new residents need assistance each year. VIII. MANAGEMENT CAPACITY A. Describe your organization's experience in managing and operating project or activities funded with CDBG or other Federal funds. Habitat for Humanity Inland Valley has been very successful with managing federal funds through the Neighborhood Stabilization Program (NSP) and through CDBG funds awarded in the amount of over $3.2 million dollars. B. Management Systems Does your organization have written and adopted management systems (i.e., policies and procedures) including personnel, procurement, property management, record keeping, financial management, etc.? Habitat for Humanity Inland Valley has board -adopted management systems in place to ensure efficient and accountable business practices including those for personnel, volunteer management, property management, site management, project management, financial responsibility and procurement. C. Capacity Please provide the names and qualifications of the person(s) that will be primarily responsible for the implementation and completion of the proposed project. Tammy Marine, Executive Director, will be primarily responsible for the implementation and completion of this project. Mary Stein, Programs/Accounting Manager will assist. With over 25 years in the non-profit sector, Tammy has served as the Executive Director since 2005. Under her direction, the affiliate has negotiated and received over $3.2 million in federal funds that were directly invested into the community. In addition, the agency has undergone tremendous growth under her leadership. 10 IX. APPLICATION CERTIFICATION Undersigned hereby certifies that (check box after reading each statement and digitally sign the document): 1. The information contained in the project application is complete and accurate. x 2. The applicant agrees to comply with all Federal and County policies and requirements imposed upon the project or activity funded by the CDBG program. x 3. The applicant acknowledges that the Federal assistance made available through the CDBG program funding will not be used to substantially reduce prior levels of local, (NON-CDBG) financial support for community development activities. x 4. The applicant fully understands that any facility built or equipment purchased with CDBG funds shall be maintained and/or operated for the approved use throughout its economic life, pursuant to CDBG regulation. x 5. If CDBG funds are approved, the applicant acknowledges that sufficient non-CDBG funds are available or will be available to complete the project as described within a reasonable timeframe. x 6. On behalf of the applying organization, I have obtained authorization to submit this application for CDBG funding. (DOCUMENTATION ATTACHED Minute Action and/or written Board Approval signed by the Board President) x DATE: 10-3-16 Signature: Print Name/Title Tammy Marine, Executive Director Authorized Representative: 11 CHECK -LIST: The following required documents listed below have been attached. Any missing documentation to the application will be cause for the application to be reviewed as INELIGIBLE. Yes No ATTACHMENT ❑ ❑ 1. Members/Board of Directors 0 ❑ 2. Articles of Incorporation and Bylaws 0 ❑ 3. Project Activity Map ❑ ❑ 4. Project Benefit, Category B, Low Mod Area Maps (Attach if applicable) ❑ ❑ S. Leveraging (Current evidence of commitment) ❑ ❑ 6. Income and Expense Statement 0 ❑ 7. Management Capacity (Detailed organizational chart) ❑ ❑ 8. Board Written Authorization approving submission of application 12 Attachment 1: Board of Directors List Inland Valley • ' • Habitat for Humanity' Current Board of Directors As of February 2016 Executive Committee (3 year limit): Estella Cline, President, EXIT Realty Gary Thornhill, Vice President, Tierra Building Consultants David Neault, Secretary, Landscape Architect Lori Schulenberg, Treasurer, First Vice President; Security Bank of California Board Members: Mary Ann Cunningham, VP/Customer Service Mngr., California Bank & Trust Craig Evans, Retired Fire Captain David French, Treasurer, Founder, Temecula Methodist Church Connie French, Founder, Temecula Methodist Church Steve Galvez, Red Hawk Development Christopher Hart, Thrivent Financial Jeannette Hartmann, American Pacific Mortgage Luanne Jobgen, Retired Vicki Puterbaugh, Rancon Realty Paul Villamil, Apple One Senior Management: Tammy Marine, Executive Director Advisory Board: Lt. Colonel Daniel Boone Dave Blake Brad Eskildsen All of our board members, advisory board and senior management can be reached initially through the following means: Phone: 951-296-3362 Mail: 27475 Ynez Road, Suite 390,Temecula, CA 92591 Email: info@habitat4inlandvalley.org Attachment 2: Articles of Incorporation and Bylaws ss-/ '1.1tll'r�LTIIC(, �.�,-�r t� r.+ l .I �.. I r Sa ran r. u U Pno^.e 1916,` aa5.2C20 `+t lPnw»`P '5&rrl etarI,YT Of r fnfc STATEMENT BY DOMESTIC NONPROFIT CORPORATION THISSTATEMENTMUST EE FILED WITH CALIFORNIA SECRETARY OF STATE (SECTIONS 6210, 6210, 9660 CORPORATIONS CODE) THE $5 FILING FEE MUST ACCOMPANY THIS STATEMENT. 1' C1681922 PB DUE. DATE 02=29-92 02901N HABITAT FOR HLPANITY INLAND VALLEY, INC. 3526 LAKECREST DRIVE LAXE ELSINORE, CA 92330 DO NOT ALTER THE 2, STREET ADDRESS OF PI I IIF NONE, COMPLETE 3-: none IP.O. Box 0755. NAME. IP rTHM 1 15 BLANK PLEASE ENTER CbRPORATE FILED SACFAI=rI!Te. CALIF FFs 2� '92 �I/ h•'1_t:. '!i t'tl SGL. MLFC:H r'v'+S E'.7 SECRE 'RYCFSTATE DO NOT WRITE IN +AIS SPACE . OFFICE. 'ISVITE OR ROOM 2A., 28. BO% N6, ` CITU "'D STATE. - ZIP CC InVITE Ofl ROOMI 3A, , 30 . '. i. .Murrieta, GA. 192564 'THE NAMES OF THE FOLLOWING OFFICERS ARE. a. 4A.. Ir 4a 6c. Kim glean 1355 E- Cooley Drive Colton, CA. 1923.24 VCI _ CIIEF E%ECVTNZ FCER BUSINESS OR REAOENCE 4C iRE95 100 NOT USE PO. SO%1. Cl" AND STATE ; _IIo CO[IE Ronald Bolt 42988 Paseo Sonrisa del.. S61 Temecula, CA 92591 Susan Dell1 22316.Bear Creek. Drive So. ( Murrieta, CA ,92562 IE CNF PIN6.CIAL OGFlCER {sumNESS OR 4EY0£NC£ A=Io.r" (o NOP JS£ PO BO%I CM AND 5TATE jr, CODE DESIGNATED�AGENT FOR SERVICE OF PROCESS PLuw . r b > . B M We W WDS ae F.uux! IN.A 61H({T AODRYS'S W ARENI 19 4N INOIVR AL �, N)T 119q FO PJYI Di'�, -AW! LWnlf.t O /.OYIIf If f QfMN.aThN 1355 E: Cooley Drive, Colton, CA 92324 ARC . ww111 G\4MInGG T-1 AYJ I.'. .G' 1 .11 r./J M1'LGD6f aNG Bf�IP.I N iY rt, 212!;'92 Chief Financial Officer Susan. I- Dell U[TE^ VILE T'iY[ Cil PRnY[ MAIC CC` ,Wv9YA6 OF11CR OR AGENT �' RMOOiYglD. R1LlD ARTICLES OF INCORPORATION I or FEB 21 1991 HABITAT FOR HUMANITY INLAND VALLEY, INC. .. .. I. NAME �WIG;ItUINlEItblonMrA� The name of.the corporation is HABITAT FOR HUMANITY INLAND VALLEY, INC. II. PURP05ES This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for publid and charitable purposes. The public and charitable purposes of the corporation are: (a) To witness to and implement the Gospel of Jesus Christ in California and throughout the United states and the world by working with economically disadvantaged people to help them create a better human habitat in Which to live and work; (b) To cooperate with other charitable organizations, through grants and otherwise, which are working to develop a better human habitat for economically disadvantaged people; (c) To communicate the Gospel of Jesus Christ by means of the spoken and written word; (d) To receive, maintain, and accept as assets of -the corporation, any property, whether real, personal, or mixed, by way of gift, bequest, devise, or purchase from any person, firm, trust, or corporation, to be held, administered, and disposed of. exclusively for charitable, religious, educational, and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, as amended, and in accordance with and pursuant to the provisions of these Articles of Incorporation; but no gift, bequest, devise, or purchase of any such property shall be received or made and accepted if it is conditioned or limited in such manner as shall require the disposition of income or principal to any organization other than a "charitable organization" or for any purposes other than a "charitable purpose" which would jeopardize the status of the Corporation as an entity exempt from federal income tax pursuant to the relevant provisions of the Internal Revenue Code, as amended; and (e) To exclusively promote and carry on any other religious, charitable, or educational purposes and activities for which corporations may be organized and operated under the relevant provisions of the Internal Revenue Code, as amended, and under the California Nonprofit Corporation Code. III. INITIAL AGENT FOR SERVICE OF PROCESS The name of the initial agent of the corporation for service of process is DENNIS KIM QUON whose complete business address is 117 South Main Street, Suite 203, Lake Elsinore, California 92330. IV. (a)This corporation is organized and operated exclusively for charitable purposes within the meaning of Section 5O1(c)(3) of the Internal Revenue Code. 4b) No substantial part of the activities bf this corporation shall consist of carrying on propaganda, or otherwise, attempting to influence legislation, and the corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. V. (a) No part of the net earnings of the Corporation shall inure to the benefit of, or be distributable to its members, trustees, directors, officers, or other private persons, except that the Corporation shall be authorized and empowered to pay reasonable compensations for services rendered and to make. payments and distributions in furtherance of the purposes set forth in these Articles of Incorporation. (b) Apything contained in these Articles of Incorporation to any contrary notwithstanding, the Corproation shall not carry on or otherwise engage in any activities not permitted to be carried on or engaged in by (i) a corporation exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as amended, or any corresponding section of any future tax code; (ii) a corporation, contributions to which ave deductible under Section 170(c)(2) of the Internal Revenue Code,. as amended, or any corresponding section of any future tax code; or (iii) a corporation 'organized and existing under the California Nonprofit Corporation Code. (c) In the event of the dissolution and liquidation of this Corporation, to the extent allowed or permitted under applicable laws, the property and assets of the Corporation shall be, as determined by the Board of Directors, distributed to or sold and the proceeds of such sales distributed to (i) Habitat for Humanity International, Inc., a Georgia Nonprofit Corporation and a corporation exempt from taxation under Section 501(e)(3) of the Internal Revenue Code, as amended, -or (ii) any other organization(s) organized and operating for the same purposes for which the Corporation is organized and operating or any organization(s), foundation(s), fund(s), or corporation(s) organized and operating exclusively for religious, charitable, -2- scientific, or educational, or other purposes permitted by section 501(c)(3) of the Internal Revenue Code, as amended, ,all of which such organizations, foundations, funds, or corporations • ..shall, be exempt under Section 501(c)(3) of the Internal Revenue Code, as amended. In the event that any assets are hot disposed of in accordance with the provisions of these Articles of Incorporation or that the Corporation shall fail to act within a reasonable time in the manner provided in these Articles of incorporation, the Court of Riverside County shall, upon application of one or more persons having a real interest in the Corporation or its assets, make such distribution(s) as provided in these Articles of Incorporation. Dated-. ., DENNIS KIM QUON, Incorporator I hereby declare that I am the person who executed the foregoing Articles of Incorporation, which execution is my act and deed. DENNIS KIM QUON, Incorporator -3- Bylaws of Habitat for Humanity Inland Valley, Inc. Revision 1—Approved by the Board of Directors January 15, 2009 Article I - Name, Form of Organization, and Purposes 1.1 Name. The name of this California Corporation is Habitat for Humanity Inland Valley, Inc. 1.2 Nonprofit and. tax exempt status The corporation is organized as a nonprofit corporation under the California Nonprofit Corporation Law and as a tax exempt organization under Section 501 (c)(3) of the Internal Revenue Code, as amended. 1.3 No Members The corporation will have no members. 1.4 Purposes The corporation is an ecumenical Christian housing ministry organized for the following purposes: ' l 1.4.1 To work with economically disadvantaged people to help them create a better human habitat in which to live and work. 1.4.2 To cooperate with other charitable organizations, through grants and otherwise, which are working to develop a better human habitat for economically disadvantaged people. 1.4.3 To build and/or rehabilitate low-cost homes or apartments and sell such housing at no interest and at no profit. 1.4.4 To provide minor repair and cleanup services to other low-income, senior, or disabled homeowners as deemed appropriate by the board of directors. 1.4.5 To develop a sense of community involvement among the people involved in Habitat work. 1.4.6 To encourage the growth of small industries and creation of new jobs for the economically disadvantaged. 1.4.7 To engage in fundraising and other activities to accomplish the above. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 2 of 17 Revision 1- Approved by the Board of Directors January 15, 2409 1.4.8 To share a minimum often percent (10%) of the corporation's general income with Habitat for Humanity International to help fund sponsored projects in developing countries. Note: This 10% share will not include funds restricted by the donors to be used for specific programs. 1.4.9 To receive, maintain, and accept as assets of the corporation, any property, whether real, personal, or mixed, by way of gift, bequest, devise or purchase from any person, firm, trust, or corporation, to be held, administered, and disposed of exclusively for charitable, religious, educational, and scientific purposes within the meaning of Section 501(e)(3) of the Internal Revenue Code, as amended, and in accordance with and pursuant to the provisions of these articles of incorporation; but no gift, bequest, devise or purchase of any such property will be received or made and accepted if it is conditioned or limited in such manner as will require the disposition of income or principal to any organization other than a charitable organization or for any purposes of the charitable purposes which would jeopardize the status of the corporation as an entity exempt from federal income tax pursuant to the relevant provisions of the Internal Revenue Code, as amended. 1.4.10 To promote and carry on any other religious, charitable, or educational purposes and activities for which corporations may be organized and operated under the relevant provisions of the Internal Revenue Code, as amended under the California Nonprofit Corporation Code. Article II — Offices 2.1 Principal office The principal office of the corporation will be located in Temecula, California at the address designated in the most recent annual report filed with the California Secretary of State. The corporation will maintain at its principal office a copy of the corporate records specified in Section 7.5 of Article VII. 2.2 Registered office and agent The registered office of the corporation required by law to be maintained in the state of California may, but need not, be identical with the principal office. The corporation will maintain a registered agent whose office is identical with the registered office. The corporation may change its registered office or registered agent from time to time in the manner required by law. 23 Other offices The corporation may have offices at such other places within the state of California as the board of directors from time to time may determine, or as the affairs of the corporation may require. _.__.___ . -_11 ..g., _.. Revision 1- Approved by the Board of Direclars January 15, 2009 Article III—Board of Directors 3.1 General powers and authority of the board All corporate powers shall be exercised by or under the authority of, and the affairs of the corporation managed under the direction of the board of directors. 3.2 Number, term, and qualifications The authorized number of directors of the corporation will be not less than twelve (12) nor more than twenty-four (24), as a majority of the board of directors will determine from time to time. Each director may serve for a term of four (4) years and until his or her successor is elected and qualified or until such director's earlier death, resignation, incapacity to serve, or removal. Directors must be individual residents of the state of California. A duly elected and qualified director may serve no more than eight (9) consecutive years but may be elected again after a one-year interval. Under extraordinary circumstances, the board of directors may make a temporary exception to the eight-year term limit requirement. 3.3 Election of directors Except as provided in Section 3.6 below relating to vacancies, directors will be elected by the board of directors at a meeting of the board of directors, or by a special vote conducted by the Board Secretary. Those persons who receive a plurality of the votes cast by the board of directors will be deemed to have been elected. If any director then holding office so demands, the election of directors will be by secret ballot. 3.4 Resignation of directors A director may resign by notifying the board of directors, president, secretary, or executive director of the corporation. A resignation is effective when the notice is received unless the notice specifies a later effective date. If a resignation is made effective at a later date, the board of directors mayfill the pending vacancy before the effective date if the board provides that the successor does not take office until the effective date. 3.5 Removal of directors A director may be removed without cause by the vote of two-thirds (2/3) of the directors then in office. In addition, a director will be removed for failing to attend at least 50% of the regular meetings of the board of directors over a one-year period, as certified to the board of directors by the corporation's secretary. An exception to this requirement may be made by the board president in the case of a director experiencing a significant, unusual, pressing need such as illness or emergency requiring the director to take a temporary leave of absence from attendance at board meetings. �1 Bylaws of Habitat for Humanity Inland Valley, Inc. Page 4 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 3.6 Vacancies / \ All vacancies shall be filled by the board of directors. A director elected to fill a vacancy will hold office until the next annual meeting of the board of directors, if the board so provides at the time the vacancy if filled, or until the end of the unexpired term that such director is filling' or until such director's death, resignation, removal or disqualification, or until such director's successor is elected and qualifies. 3.7 President and Vice President The president of the corporation will serve as the chairperson of the board of directors and will preside at all meetings of the board of directors and perform other duties as may be prescribed from time to time by the board. The vice president will serve as vice chairperson of the board of directors, and in the absence of the president, or in the event of death, inability or refusal to act of the president, will preside at all meetings of the board. 3.8 No compensation The board of directors will not permit compensation of directors for their services as such. Article IV — Meetings of Directors \ 4.1 Place of meetings Meetings of the board of directors will be held in Temecula, California at such place as the board of directors may determine, or if the board does not set the location, by the chairman of the board. 4.2 Annual meeting The annual meeting of the board of directors, for the purpose of electing directors, appointing officers, approving a budget for the year, and transacting other business, will be held in May or at such other time as the board of directors may determine. 4.3 Regular meetings Additional regular meeting of the board of directors will be held on the third Thursday of each month or at such other time as the board of directors may determine. 4.4 Special meetings Special meetings of the board of directors may be called by or at the request of the president or twenty percent (201/o) of the directors then in office. Such meetings will be held in Temecula, California or at such place the chairman of the board will determine. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 5 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 4.5 Notice of meetings Regular meetings of the board of directors may be held without notice if the date, time and place of the meeting previously have been fixed by the board. Otherwise, regular meetings must be preceded by at least two (2) days' notice to each director of date, time and place, but not the purpose, of the meeting. Special meetings of the board of directors must be preceded by at least two (2) days' notice to each director of the date, time, place and purpose of the meeting. Notice required by the foregoing provisions may be given by any usual means of communication and may be oral or written. However, any board action to remove a director or to approve a matter that would require approval by the members if the corporation had members, will not be valid unless each director is given at least seven (7) days' written notice that the matter will be voted upon at a directors' meeting or unless notice is waived pursuant to Section 4.6 below. Oral notice or electronic notice is effective when communicated, if communicated in a clear and comprehensible manner and is actually received by the director. Written notice, if in a comprehensible form, is effective at the earliest of one of the following: 4.5.1 When received 4.5.2 Five (5) days after its deposit in the United States mail, as evidenced by the postmark, if mailed correctly by certified mail, return receipt requested, and the receipt is signed by or on behalf of the addressee 4.5.3 Thirty (30) days after its deposit in -the United States mail, as evidenced by the postmark, if mailed correctly addressed and with other than first class, registered or certified postage fixed Written notice is correctly addressed to a director if addressed to the director's address shown in the corporation's current list of directors. 4.6 Waiver of notice A director may at any time waive any notice required by law or these bylaws. Except as hereinafter provided in this section, the waiver must be in writing, signed by the director entitled to the notice, and filed with the minutes or the corporate records. A director's attendance at or participation in a meeting waives any required notice of the meeting unless the director upon arriving at the meeting or prior to the vote on a matter not noticed in conformity with law or these bylaws objects to lack of notice and does not thereafter vote for or assent to the objected to action. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 6 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 4.7 Quorum A quorum of the board of directors consists of a majority of the directors in office immediately before a meeting begins; provided that in no event will a quorum consist of fewer than two (2) directors. 4.8 Manner of acting If a quorum is present when a vote is taken, the affirmative vote of a majority of directors present is the act of the board of directors, unless the vote of a greater number of directors is required by law or these bylaws. 4.9 Presumption of assent A director of the corporation who is present at a meeting of the board of directors or a committee of the board of directors when corporate action is taken is deemed to have assented to the action taken unless: 4.9.1 Such director objects at the beginning of the meeting (or promptly upon arrival) to holding or transacting business at the meeting. 4.9.2 Such director's dissent or abstention from the action taken is entered in the minutes of the meeting. 4.9.3 Such director delivers written notice of dissent or abstention to the presiding officer of the meeting before adjournment or to the corporation immediately after adjournment of J \ the meeting. The right of dissent or abstention is not available to a director who votes in favor of the action taken. 4.10 Meeting via communications equipment The board of directors may permit any or all directors to participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all directors participating may simultaneously hear each other during the meeting. A director participating in a meeting by this means is deemed to be present in person at the meeting. 4.11 Action without meeting Action required or permitted by law or these bylaws to be taken at a meeting of the board of directors may be taken without a meeting if the action is taken by all of the duly elected and qualified directors of the corporation The action must be evidenced by one or more written consents describing the action taken, signed by each director and included in the minutes filed with the corporate records reflecting the action taken. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 7 of 17 Revision I - Approved by the Board of Directors January 15, 2009 Action taken under this section is effective when the last director signs the consent, unless the (�1 consent specifies a different effective date. A consent signed tinder this section thus has the effect of a meeting vote and may be described as such in any document. 4.12 Director conflict of interest transactions 4.12.1 A conflict of interest transaction is a transaction with the corporation in which a director of the corporation has a direct or indirect financial interest. For purposes of this section, a director has an indirect financial interest in a transaction if. (a) Another entity in which a director has a material financial interest or in which the director is a general partner is a party to the transaction. -OR- (b) Another entity of which the director is a director, officer, or trustee is party to the transaction. A conflict of interest transaction is not voidable on the basis for imposing liability on the director if the transaction was fair at the time it was entered into or is approved in advance as hereinafter provided. 4.12.2 A transaction in which a director has a conflict of interest may be approved in advance by a vote of the board of directors or a committee of the board if: (a) The material facts of the transaction and the directors' interest are disclosed or known to the board of committee of the board. -AND- (b) The directors approving the transaction in good faith reasonably believe that the transaction is fair to the corporation. For the purposes of this section, a conflict of interest transaction is approved if it receives the affirmative vote of a majority of the directors on the board or on the committee, who have no direct or indirect interest in the transaction, but a transaction may not be approved under this section by a single director. If a majority of the directors on the board who have neither direct nor indirect interest in the transaction vote to approve the transaction, a quorum is present for the purpose of taking action under this section. The presence of or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under this section if the transaction is otherwise approved as hereinabove provided. Article V — Officers 5.1 Number The officers of the corporation will consist of a president, vice president, secretary, treasurer, and such assistant secretaries, treasurer and other officers as are appointed by the. board of directors from time to time. No more than one (1) of the four (4) principal offices may be held by the same person. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 8 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 5.2 Appointment and term The principal officers of the corporation will be appointed by the board of directors at its annual meeting. The nominating committee will present a slate of nominees for appointment. Nominations may also be made from the floor. All nominees for the four (4) principal offices (President, Vice President, Secretary, and Treasurer) must be members of the board of directors. Each officer will hold office for a period of one (1) year, or until such officer's death, resignation, or removal, or until such officer's successor is elected and qualifies. Principal officers appointed at the annual meeting will assume their positions on July I and serve through June 30 of the following year. The'principal officers may not be appointed to serve for more than three (3) successive terms. The board of directors may appoint assistant secretaries, assistant treasurers and other officers at such time or times as the need may arise. A vacancy occurring in a position of officer of the corporation may be filled at any time by the board of directors. The term of an officer elected to Hill a vacancy will expire at the end of the unexpired term that such officer is filling. 5.3 Resignation and removal An officer may resign at any time by notifying the corporation. A resignation is effective when the notice is effective unless the notice specifies a future effective date. , If a resignation is made effective at a future effective date, and the board of directors accepts the future effective date, the board of directors may fill the pending vacancy before the effective date if the board provides that the successor does not take office until the effective date. The board of directors may remove any officer at any time with or without cause. 5.4 Contract rights of officers The appointment of an officer does not itself create contract rights. An officer's removal does not affect the officer's contract rights, if any, with the corporation. 5.5 President The president is the chief executive officer of the corporation and, subject to the control of the board of directors, supervises and controls management of the corporation in accordance with these bylaws. The president may sign, with the secretary or any other proper officer of.the corporation so authorized by the board of directors, any deeds, leases, mortgages, bonds, contracts, or other instruments which lawfully may be executed on behalf of the corporation, except where signing and execution thereof expressly is delegated by the board of directors to some other officer or agent of the corporation, or where required by law to be otherwise signed and executed. Bylaws of Habitat for Humanity Inland Valley, Inc. Revision 1- Approved by the Board of Directors January 15, 2009 Page 9 of 17 The president serves as the chairperson of the board of directors and presides at all meetings of the board of directors. The president performs, in general, all duties incident to the office of president and such other duties as may be prescribed from time to time by the board of directors. 5.6 Vice president In absence of the president, or in the death, inability, or refusal to act of the president, the vice president, unless otherwise determined by the board of directors, performs the duties of the president and, when so acting, has all the powers of and is subject to all the restrictions upon the president. The vice president serves as vice chairperson of the board of directors and, in the absence of the president, or in the event of the death, inability, or refusal to act of the president, presides at all meetings of the board. The vice president performs such other duties as may be assigned from time to time by the president or the board of directors. 5.7 Secretary The duties of the secretary include: 5.7.1 Preparing or overseeing preparation of minutes of all meetings of the board of directors and the executive committee 5.7.2 Authenticating records of the corporation when requested to do so 5.7.3 Giving notices required by law and by these bylaws 5.7.4 Having general charge of the corporate books and records and of the corporate seal, and affixing the corporate seal to any lawfully executed instrument requiring it 5.7.5 Signing such instruments as may require signature 5.7.6 Causing such corporate reports as may be required by state law to be prepared and filed in a timely manner 5.7.7 Performing all duties incident to the office of secretary and such other duties as may be assigned from time to time by the president or the board of directors 5.8 Assistant secretaries The assistant secretaries perform duties that may be assigned to them by the secretary, the president, or the board of directors. In the absence of the secretary or in the event of death, inability, or refusal to act by the secretary, the assistant secretaries, in the order of their length of service as assistant secretaries, unless otherwise determined by the board of directors, perform the duties of the secretary and, when so ( acting, have all the powers of and are subject to all the restrictions upon the secretary. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 10 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 5.9 Treasurer The duties of tate treasurer include: 5.9.1 Overseeing custody of all funds and securities belonging to the corporation including receipt, deposit or disbursement of the same under the direction of the board of directors 5.9.2 Overseeing full and accurate accounting of the finances of the corporation in books especially provided for that purpose 5.9.3 Causing such returns, reports and/or schedules as may be required by the Internal Revenue Service and the state taxing authorities to be prepared and filed in a timely manner 5.9.4 Causing a true balance sheet (statement of the assets, liabilities and fund balance) of the corporation at the close of each fiscal year and true statements of activity (support & revenue, expenses, and changes in fund balance), functional expenses, and cash flows for such fiscal year, all in reasonable detail, to be prepared and submitted to the board of directors 5.9.5 Performing all duties incident to the office of treasurer and such other duties as may be assigned from time to time by the president or the board of directors 5.10 Assistant treasurers Assistant treasurers perform duties that may be assigned to them by the treasurer, the president, or 1 the board of directors. In the absence of the treasurer or in the event of death, inability, or refusal to act of the treasurer, the assistant treasurers, in the order of their length of service as assistant treasurers, unless otherwise determined by the board of directors, perform the duties of the treasurer and, when so acting, have all the powers of and are subject to all the restrictions upon the treasurer. 5.11 No compensation The principal and assistant officers of the corporation described in the foregoing sections will not be compensated for their services as such. 5.12 Executive director The board of directors may appoint an executive director, who serves as the chief operating officer of the corporation and, subject to the control of the board of directors, has overall responsibility for the routine management of the affairs of the corporation.. The board of directors approves compensation and benefits for the executive director. The executive director may not be elected to serve on the board of directors. Bylaws of Habitat for Humanity Inland Valley, Inc. Revision 1- Approved by the Board of Directors January 15, 2009 Page 11 of 17 The executive director reports to the board of directors and works closely with the president of the corporation. Duties of the executive director include: 5.12.1 Managing day-to-day operations of the corporation 5.12.2 Coordinating the activities of the operating committees 5.12.3 Representing the corporation in the community 5.12.4 Overseeing the building projects of the corporation 5.12.5 Supervising the administrative functions of the corporation 5.12.6 Performing such other duties as may be assigned from time to time by the president or the board of directors Article VI—Committees 6.1 Board committees in general The board of directors may create one or more committees of the board, in addition to the executive committee established by these bylaws. Committees of the board will be composed solely of individuals currently serving as duly elected and qualified directors of the corporation. Each committee of the board will have two or more directors, who will be appointed by and serve at the pleasure of the board. The creation of a committee of the board and appointment of members to it must be approved by a majority of all the directors in office when the action is taken. The provisions of Article N of these bylaws, which govern meetings of the board of directors, will apply to committees of the board and their members as well, except that no committee of the board will be required to have an annual meeting or scheduled regular meetings. To the extent specified or authorized by the board of directors or in these bylaws, each committee of the board may exercise the authority of the board. However, a committee of the board may not: ■ Authorize distributions of cash, property, or other assets. • Approve or recommend dissolution, merger or the sale, pledge or transfer of all or substantially all of the corporation's assets. • Elect, appoint or remove directors or fill vacancies on the board or on any committee of the board. • Adopt, amend, or repeal the articles of incorporation or any bylaws. r1 Bylaws of Habitat for Humanity Inlaid Valley, Inc. Page 12 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 6.2 Executive committee The executive committee, which is a committee of the board, consists of the four principal officers of the corporation, the past president, and the executive director. The president serves as the chairperson of the executive committee and presides at all of its meetings. Except to the extent. prohibited or limited by Section 6.1 above or by resolution of the board of directors, the executive committee may exercise the authority of the board of directors at such times as the board is not in session. In addition, the executive committee will perform the functions described below. 6.2.1 Finance and budget functions: • Overseeing the implementation and administration of policies and procedures for handling and accounting for the finances of the corporation. • Preparing an annual revenue and expense budget for submission to the full board of directors. • Working closely with the fundraising committee to coordinate development of the resources needed to meet the revenue goals of the budget. ■ Monitoring the implementation of the budget. • Making recommendations when necessary to the board of directors regarding adjustments to the budget. 6.2.2 Human resources functions Overseeing implementation and administration of policies and procedures relating to �1 volunteers and employees, if any, of the corporation. 6.2.3 Strategic and long-range planning functions • Coordinating strategic and long-range planning activities • Monitoring and evaluating the performance of the corporation with respect to the achievement of its mission, purposes and goals. 6.3 Nominating committee The nominating committee consists of at least five (5) members, all of whom are directors of the corporation. Committee members are confirmed by a vote of the board of directors at the annual meeting of the board. Nominating committee members serve for one year but can be appointed to successive terms. The current board president may not be a member of this committee. A vacancy on this committee may be filled by the board of directors at any time. Duties of the nominating committee include: • Identifying and recruiting prospective directors of the corporation. • Presenting a slate of nominees for election as directors at the annual meeting and throughout the year as vacancies arise. Bylaws of Habitat for Humanity inland Valley, Inc. Revision 1- Approved by the Board of Directors January 15, 2009 Page 13 of 17 • Presenting a slate of nominees for appointment as principal officers of the corporation. In addition, the nominating committee may make recommendations for chairpersons of the operating committees. 6.4 Non -board committees in general The board of directors may create one or more non -board committees, in addition to the operating committees established by these bylaws, and delegate non -board functions to such committees. Non -board committees may include both directors and individuals who are not directors of the corporation. Non -board committees may not exercise the authority of the board. 6.5 Operating committees Within thirty (30) days after the annual meeting each year, the president appoints chairpersons for current operating committees. The names of the chairpersons so appointed are submitted for ratification by the directors at the next meeting of the board of directors. A vacancy occurring in the position of an operating committee chairperson is filled in like manner, appointment by the president and ratification by the board of directors. The chairperson of each operating committee, in consultation with the president, appoints the members of the committee. . New members of the operating committees may be appointed at any time. Each director of the corporation is expected to serve on at least one (1) of the operating committees. Operating committee chairpersons are expected to attend the regular meeting of the board of directors for the purpose of reporting on the Work of their committees, receiving direction and guidance from the board, and seeking approval of actions proposed by their committees which require board approval. The number/types of operating committees active at any given time will vary based on the existing needs/activities of the corporation. Additional committees may be created from time to time by the president or the board of directors. The operating committees perform the functions described below and such other functions as the board of directors may provide. 6.5.1 Family selection committee This committee is responsible for drafting and updating the selection criteria, recruiting applicants, screening applications, interviewing applicants, and recommending applicants to the board of directors for approval as prospective homeowners. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 14 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 6.5.2 Family support committee This committee is responsible for providing Habitat homeowners and prospective homeowners with a mutual support system, educational opportunities, and a forum for discussions pertaining to homeownership and maintenance, all for the purpose of helping families to break the poverty cycle and become independent. 6.5.3 Resource development This committee is responsible for coordinating the raising of funds needed to conduct the business of the corporation. The tasks to be coordinated by the committee, in partnership with the full board, includes fundraising campaigns, grant proposal writing, special fundraising events, and cultivation of major donors. 6.5.4 Church relations committee The church relations committee seeks to strengthen the support of the affiliate's work by gaining volunteers, prayer, and financial resources from all community churches. The church relations committee is the liaison between the affiliate and the faith community, facilitating communication and developing partnerships. 6.5.5 Site selection committee This committee is responsible for targeting the areas or areas of the comTnunity for projects. This includes investigating and researching the availability of property and (, recommending property to the board of directors for acquisition. The committee works Y in conjunction with the building committee to evaluate the suitability of potential sites prior to acquisition. 6.5.6 Construction committee This committee is responsible for planning and implementing corporation construction projects. The tasks to be directed by this committee include developing or obtaining house plans, soliciting appropriate professional construction help when needed, developing lists of needed building materials and assisting the resource development committee in obtaining these, developing a building schedule and coordinating volunteers, and supervising construction. Article VII — General Provisions 7.1 Corporate seal The corporate seal will be in such form as the board of directors may from time to time determine. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 15 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 7.2 Amendments These bylaws may be amended or repealed and new bylaws may be adopted by the board of directors. The corporation will provide at least seven (7) days' written notice of any meeting of directors at which an amendment is to be approved, unless notice is waived pursuant to Section 4.6 above. The notice must state that the purpose, or one of the purposes, of the meeting is to consider a proposed amendment to the bylaws and contain or be accompanied by a copy or summary of the amendment or state the general nature of the amendment. Any amendment must be approved by two-thirds (2/3) of the directors in office at the time the amendment must be approved, and by at least a majority of the directors in office at the time the amendment is adopted. 73 Fiscal year This fiscal year of the corporation begins on July 1 and ends on June 30 of each year. 7.4 Financial reports The books of the corporation will be closed as of the end of each fiscal year and financial statements prepared and submitted to the board of directors. At the discretion of the board of directors, the corporation may engage an independent certified public accountant to audit or ( review the financial statements. t 7.5 Corporate minutes and records The corporation will keep as permanent records minutes: ■ All meetings of its board of directors. • A record of all actions taken by the directors without a meeting. • A record of all actions taken by the executive committee and any other committees of the board of directors. The corporation will maintain its records in written form or in another form capable of conversion into written form within a reasonable time. The corporation will keep a copy of the following records at its principal office: • Its articles of incorporation or restated articles of incorporation and all amendments to them currently in effect. ■ Its bylaws or restated bylaws and all amendments to them currently in effect. • A list of the names and business or home addresses of its current directors and officers. • Its most recent annual report delivered to the secretary of state, as required by the California Nonprofit Corporation Code. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 16 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 The minutes and records described above will be made available for inspection by current f directors of the corporation during normal business hours. In addition to the extent required by applicable law, the corporation will make available for inspection during regular business hours, copies of: • Any application filed with any letter or other document issued by the Internal Revenue Service with respect to the tax exempt status of the corporation • The annual returns filed with the internal Revenue Service for the three most recent years (to the extent the corporation is required to file such returns); provided that the names and addresses of contributors to the corporation may be kept confidential. 7.6 Investments The corporation has the right to retain all or any part of any securities or property acquired by it in whatever manner, and to invest and reinvest any funds held by it, according to the judgment of the board of directors without being restricted to the class of investments which a director or trustee is or may hereafter be permitted by law to make or any similar restriction; provided that no action shall be taken by or on behalf of the corporation if such action is a forbidden activity or would result in the denial of tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as amended. 7.7 Checks and.drafts All checks, drafts or other orders for the payment of money issued in the name of the corporation will be signed by such officer or officers, agent or agents of the corporation and in such manner as will from time to time be determined by resolution of the board of directors provided that any check, draft or other order for the payment of an amount in excess of five hundred dollars ($500) will require two (2) authorized signatures. 7.8 Prohibited activities The corporation is organized as a nonprofit corporation exclusively for charitable, religious, educational and scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, as Amended. No part of the net earnings of the corporation will inure to the benefit of, or be distributable to its members, trustees, directors, officers, or other private persons, except that the corporation will be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in these bylaws. No substantial part of the activities of the corporation will be the carrying on of propaganda, or otherwise attempting to influence legislation. The corporation will not participate in or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Anything contained in these bylaws to the contrary notwithstanding, the corporation will not carry on or otherwise engage in any activities not permitted to be carried on or engaged in by a corporation: • Exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as amended, or any corresponding section of the future tax code. Bylaws of Habitat for Humanity Inland Valley, Inc. Page 17 of 17 Revision 1- Approved by the Board of Directors January 15, 2009 ■ Contributions to which are deductible under Section 170(c)(2) of the Internal Revenue code, as amended, or any corresponding section of any future tax code. Organized and existing under the California Nonprofit Corporation Code. 7.9 No loans to or guaranties for directors The corporation may not lend money to or guarantee the obligation of a director or officer of the corporation, but the fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan. 7.10 Indemnification The corporation will indemnify a director who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the director was a party because he or she is or was a director of the corporation, against reasonable expenses actually incurred by the director in connection with the extant as a director. In addition, if an individual is made a party to a proceeding because the individual is or was a director, officer, employee or agent of the corporation, the board of directors may, to the extent permitted by law, authorize the corporation to advance expenses to such individual and/or indemnify such individual against liability incurred in the proceeding. Attachment 3: Project Activity Map Location Map Habitat serves within southwest Riverside County. OREGON ' Slsklyou Modoc Trinity Shasta Lassen San San Mono a eked aesa s �o Tulare Monterey Kings San Luls Obispo Kern Santa Barbara PACIFIC OCEAN CALIFORNIA`S 58 COUNTIES Los Angeles inyo San Bernardino San Diego Imperial MEXICO Tehama Plumes Icino --- Glenn Butia q p Slorra ,Q o° Co use soles vada �e w Lake a° oaCe1 a We EI Dorado Napa c& _ A10m San San Mono a eked aesa s �o Tulare Monterey Kings San Luls Obispo Kern Santa Barbara PACIFIC OCEAN CALIFORNIA`S 58 COUNTIES Los Angeles inyo San Bernardino San Diego Imperial MEXICO Attachment 4: n/a Attachment 5: Leveraging Commitment LIVE UNITED July 7, 2015 Tammy Marine Executive Director United Way Habitat for Humanity Inland Valley of the Inland Valleys 27475 Ynez Road, #390 WWW.UWNARG Temecula, CA 92591 Subject: 2015.2016 Extended Funding Agreement Dear Tammy, We are pleased to inform you of the total amount your agency will receive per program for 2015-2016 Extended Funding: Habitat for Humanity Inland Valley (Critical Home Maintenance & Repairs Program - ($15,000.00) Funding recommendations were made by the Community Impact Committee and approved by the Board of Directors. (The total distribution does not include campaign designations made directly to your agency). Equal payments of the Extended Funding amounts will be mailed monthly, beginning in July 2015. Subsequent payments will be released after the Extended Funding Agreements have been signed and returned to United Way of the Inland Valleys. Enclosed are two signed copies of the Strategic Funding Agreement by the UWIV Board Chair and President & CEO. Additionally, we have provided helpful reviewer comments regarding your submitted application. Please review carefully the provisions of the agreement, including the timeline for submitting reports and consequences for non-compliance. Please have your Executive Director and Board Chair sign both copies of theagreement and return ONE signed copy to United Way of the Inland Valleys ("UWIV"). United Way of the Inland Valleys must receive the signed agreement before August tat in order for the August and subsequent allocation checks to be released. Below are the reviewer comments regarding your Extended Funding Application: • The reviewer appreciates the great work that is being done in the community through this program. We look forward to partnering with you to improve the quality of life in Western Riverside County. Sincerely, Gail Ousley Vice President, Development & Community Impact Home Office: 6215 River Crest Dr., Suite B • Riverside, CA 92507 • Tel 951.697.4700 • Fax 951.656.8210 Southwest Office: 25109 Jefferson Ave., Suite 225-A - Murrieta, CA 92562 • Tel 951.233.4315 www.uwiv.org WEINGART FOUNDATION June 19, 2015 File No. 15 CS 509 Ms. Tammy Marine Executive Director Habitat for Humanity International Inc 41615 Winchester Road, Suite 214 Temecula, CA 92591 Dear Ms. Marine: Thank you for returning the signed Grant Agreement. I am pleased to transmit a check from the Weingart Foundation in the sum of $100,000, which represents the payment of a grant to Habitat for Humanity International Inc, to be used toward core support for Habitat for Humanity Inland Valley. The reporting requirements were sent to you with the Grant Agreement. Should you have any questions regarding these reporting requirements, please contact your Program Officer. Sincerely, Fred J. Ali President and Chief Executive Officer Enclosures: Check 1055 West Seventh Street, Suite 3200 4 Los Angeles, California 90017-2305 (213) 688-7799 • Fax: (213) 688-1515 www.weingartfnd.org Attachment 6: Audit (including income and expense statement) HABITAT FOR HUMANITY INLAND VALLEY, INC. s ,LUNE 30, 2015 Habitat for Humanity Inland Valley, Inc. Table of Contents June 30. 2015 Independent Audit Report Financial Statements: Statement of Financial Condition Statement of Activities Statement of Cash Flows Page(s) 3, 4 Notes to Financial Statements 6,7 Thomas A. Ralston Certified Public .Accountant Phone: 951-296-9030 41874 Sixth Sheet Fax: 951-296.9033 Temecula, California 92590 Email: tamralstonep,irt,yahoo.com January 20, 2015 The Board of Directors Habitat for Humanity Inland Valley, Inc. 27475 Ynez Road #390 Temecula, California 92591 INDEPENDENT AUDITOR'S REPORT We have audited the accompanying statement of Financial position of Habitat for Humanity Inland Valley, Inc. (a nonprofit organization) as of June 30, 2015 and the related statements of activities, functional expense, and cash flows for the year then ended. These .financial statements are the responsibility of the management of Habitat for Humanity Inland Valley, Inc. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects. The financial position of Habitat for Humanity Inland Valley, Inc., as of June 30, 2017 and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was made for the purpose of forming an opinion on the basic financial statements of Habitat for Humanity Inland Valley, Inc. taken as whole. The accompanying schedule of direct agency support allocations is presented for the purpose of additional analysis and is not a required part of the financial statements. Such inforination has been subiected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as whole. Sincerely, Thomas A. Ralston Certified Public Accountant INLAND VALLEY IIABP,I'AT FOR I-IUMANIFY STATEMENT OF FINANCIAL POSITION JUNE 30, 2015 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable NSP Grant receivables Supplies Inventory WIP - Work in Progress Total Current Assets 730,452 22,178 3,301 795 15,689 Fixed Assets Property and Equipment 60,549 Less Accumulated Depreciation (Note 2) (36,245) Total Fixed Assets Other Assets Flexcap Deposit 5,140 Security Deposit (Note 1) 11,600 First Trust Deeds (Note .3) 2,339,985 Second Trust Deeds (Note 3) 1,003,583 Total Other Assets Total Assets LIABILITIES AND NET ASSETS LIABILITIES Current Liabilities Deffered Grants Account Payable Credit Cards Escrow Funds Payroll Taxes Sales Tax Payable Total Current Liabilities Long -Term Liabilities Ilabitat Way Street Maintenance Flex Capital Loan Total Long Term liabilities Total Liabilities NET ASSETS Net Assets Unrestricted Net Assets Restricted Total Net Assests Total Liabilities and Net Assets SEE. ACCOUNTANT'S AUDIT REiPORI- $ 40,000 21,483 2,048 9,131 141 7,884 4,090 156,451 3.840,799 75,000 772,415 24,304 3,360,308 $ 4,157,027 80,687 $ 160,541 241,228 3,915,799 $ 4,157.027 INLAND VALLEY HABITAT FOR HUMANITY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015 EXPENSES Advertising/Promotions RES'IORE COMBINED INCOMEEIABII'AT' 37,032 - 37,032 Donations S 10,783 S S 10,783 Fundraising 91,787 91,787 Grints 183,281 - 183,251 Earned Revenues 1,146,892 1,146,892 Other Income 1,399 - 1,399 TOTAL INCOME 287 250 1,146,892 1,434,142 EXPENSES Advertising/Promotions 30,396 - 30,396 Advocacy/Global Support 37,032 - 37,032 Bad Debt Expense 4,669 - 4,669 Conference/Seminars 18,286 - 18,286 Construction Expenses 28,060 - 28,060 Depreciation Expense 7,413 7,413 Dues/Subscriptions 2,535 1,535 Employee ExpensesA3ene6ts 20,413 20,413 Homeowner Services 595 - 595 Insurance 33,509 33,509 Merchant Account Fees 3,709 - 3,709 Miscellaneous 4,293 4,293 Office Expenses 19,541 - 19,541 Outside Services 34,934 - 34,934 Payroll Taxes 25,035 - 25,035 Restore Expenses (Like Elsinore) - 149,476 149,476 Restore Expenses (Temecula/Ebay) - 669,744 669,744 Saleriesllvages 307,317 - 307,317 Second Trust Debt Forgiveness 55,880 55,880 Small Tools 6,415 - 6,41.5 Storage 2,757 - 2,757 Subcontractors 8,935 - 8,935 Taxes 160 - 160 T'eleplione/Intcmet 12,775 - 12,775 3 INLAND VAI,I,EY HABITAT FOR HUMANITY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JIJNE 30, 2015 SEE ACCOUNTANT'S AUDIT REPORT m HABITAT RESTORE COMBINED TOTAL EXPENSES 657,246 S 826,633 S 1,483,879 NET INCREASE (DECREASE) IN NET (369,996) 320,259 (49,737) A S SI3TS NET ASSETS BEGINNING OF THE 2,951,396 1,005,755 1,957,151 YEAR NE ASSETS END OF YEAR BEFORE 2,581,400 1,326,014 3,907,414 PRIOR PERIOD ADJUSTMENT PRIOR PERIOD ADJUSTMENT 8,385 8,385 NET ASSETS END OF YEAR S 2,589,785 S 1,326,014 $ 3,915,799 SEE ACCOUNTANT'S AUDIT REPORT m INLAND VALLEY HABITAT FOR I IUMANITY STATEMENT OP CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2013 CASH PLOWS FROM OPERATING; ACTIVITIES Decrease In Net Assets $ (49,737) Net Decrease in Supplies Inventory 466 Net Increase in WIP (15,689) Net Increase Accounts Receivable (11,021) Net Increase in Accumulated Depreciation 7,413 Net Increase in Flexcap Deposit (5,140) Net Decrease Note Receivable (1st Deeds) 129,380 Net Decrease in Note Receivable (2nd Deeds) 64,529 Not Decrease in Security Deposits 150 Net Decrease Payroll Taxes (2) Net Increase in Escrow Account 4,542 Net Decrease in Accounts Payable (1,640) Net Increase in Sales Tax Payable 3,196 Net Increase in Credit Cards 1,344 Net Increase in Long Term Liabilities 156,831 Net Increase- in Deferred Grants 20,000 Prior Period Adjustment 8,385 $ 313,007 Increase in Cash and Cash Equivalents 313,007 Cash and Cash Equivalents, Beginning of the Year 417,445 Cash and Cash Equivalents, End of the Year $ 730,452 SEE ACCOUNTANTS AUDIT REPORT Habitat for Humanity Inland Valley, Inc. Notes to Financial Statements June 30, 2015 Habitat for Humanity Inland Valley is dedicated to serving families within southwest Riverside County. One of the many ways that the agency accomplishes that is through the building of affordable homes for worthy families. While that is the main focus, they also serve the entire community by participating in neighborhood revitalization and beautification projects, senior minor home repair and most recently reliabilitation of foreclosed homes creating affordable housing for families. In addition, the agency has opened two R,eStore locations, one in Temecula and one in lake Elsinore. Habitat Restore is a unique retail facility, operated by Habitat for Humanity Inland Valley, which offers the community the opportunity to purchase new and used building materials, appliances and household items at greatly reduced prices. The materials and appliances sold are donated by local vendors, construction companies and individuals which are then resold to the public rather than being thrown away and filling up landfills. Families that Habitat f'or Humanity Inland Valley serves are considered low-income by HUD standards. For families to be selected for a Habitat house, they must have income that cannot exceed 80% of the Riverside County median income and they cannot qualify for conventional financing. Additionally, families are selected on need, ability to pay and willingness to partner with Habitat for Humanity. Each family must contribute 300-500 "sweat -equity" hours in the construction of their home, or other Habitat projects. Habitat does not discriminate, nor are families chosen based on race, ethnicity or age. The agency chooses families who meet the criteria set in our selection process and who demonstrate the biggest need for assistance. Habitat for Humanity is dedicated to making affordable housing readily available within southwest Riverside County. The Habitat for Humanity Inland Valley, Inc. is a 501 (c)('3) nonprofit organization. The organization maintains its books on the accrual basis of accounting. NOTE 1: DEPOSITS Rental Deposits on two retail stores located at 27479 Enterprise Circle West, Temecula, California and 570-1 Central Avenue, Lake Elsinore, California. NOTE 2: FIXED ASSETS Fixed Assets are recorded at cost. Depreciation is calculated using MACR7s method of depreciation, which is consistent with Internal Revenue Service calculations. Fixed Assets Consist of: Restore Truck $ 48.213 Tenant Improvements 4,372 Equipment _ 7.964 Total Fixed Assets 60,5!19 Less Accumulated Depreciation (36,,245) Net Fixed Assets R_24 3,04 Habitat for Humanity Inland Valley, Inc. Notes to Financial Statements (cont) June 30, 2015 NOTE 3: NON-INTEREST BEARING NOTES Non -Interest bearing notes are recurred by real property held by Habitat for Humanity. There are certain restrictions that apply to the notes with incentives for the homeowners to stay in the house for a minimum of 5 years. NOTE 3: MATCHING OF REVENUE, AND EXPENSES Habitat for Humanity Inland Valley received seven homes purchased by SPS, a federal government stimulus program, during the 2011 fiscal year. Title to this homes was received in fiscal year 2012 subsequent to this home sales. The program is over as of this statement date. All sales revenue was recognised in the 2012 fiscal year. NOTE 4: Habitat for Humanity Inland Valley, Inc. operates two retail stores. It sells construction and related products. The Lake Elsinore store leases its store for $3,422.00 per month, on a two year lease. The Temecula store leases its store for $9,732.00 a month at statement date. Habitat For Humanity pays no rent for it's office at 41615 Winchester Road in Temecula. California. Attachment 7: Organizational Chart L d-� �) f6 L d C6 L b 0 Qj cc Ln Attachment 8: Board Authorization September 28, 2016 Inland Valley Habitat for Humanity" The Board of Directors of Habitat for Humanity Inland Valley authorizes Tammy Marine, Executive Director, to submit a Community Development Block Grant to the County of Riverside, the Cities of Lake Elsinore, Perris, and the City of Temecula for 2017-2018 Program Year. In addition, the Board authorizes Tammy Marine to act on behalf of Habitat for Humanity Inland Valley in the matter of contracts, billings, contact and reporting. Title