2024-08-07T23:52:30-05:00 2023-12-31 560571159 BERNARD ROBINSON & COMPANY LLP PO BOX 19608 GREENSBORO NC 274199608 990 2023-01-01 561924027 NORTHWESTERN HOUSING ENTERPRISES INC NORT 8282646683 PO BOX 2510 BOONE NC 28607 LUKE FOWLER INTERIM DIRECTOR 8282646683 2024-08-07 1 0 IRISH THURSTON P01662190 3362944494 2024-08-06 2023 2024-08-08 14:25:15Z EDWARD G FOWLER PO BOX 2510 BOONE NC 28607 5970809 0 X N/A X 1995 NC AFFORDABLE HOUSING 8 8 0 8 0 0 4792309 4715734 697411 1036495 89505 -34095 73733 211319 5652958 5929453 0 0 0 0 0 0 0 0 0 2536055 3356425 2536055 3356425 3116903 2573028 20131226 24704956 13742218 15746497 6389008 8958459 AFFORDABLE HOUSING 0 0 2842463 1247814 DEVELOPING AND MAINTAINING AFFORDABLE HOUSING UNITS:SEVENTEEN (17) AFFORDABLE HOUSING DEVELOPMENTS HAVE BEEN COMPLETED, INCLUDING FOUR SPECIAL NEEDS FACILITIES PROVIDING HOUSING FOR 30 PHYSICALLY OR MENTALLY DISABLED LOW INCOME INDIVIDUALS; 29 HOMES HAVE BEEN SOLD AT ADVANTAGED PRICES TO LOW INCOME FAMILIES; 220 AFFORDABLE RENTAL UNITS ARE OWNED, MAINTAINED, MANAGED; 207 ADDITIONAL AFFORDABLE RENTAL UNITS HAVE BEEN DEVELOPED, WITH 127 OF THESE BEING ACTIVELY MANAGED (THE OTHER 80 WERE DEVELOPED FOR UNAFFILIATED COMPANIES AND ARE INDEPENDENTLY MANAGED); CERTAIN PRIVATE GRANT FUNDS HAVE BEEN USED FOR CAPACITY BUILDING PURPOSES. 2842463 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 X 16 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 0 1 1 1 1 0 X LUKE FOWLER 8282646683 PO BOX 2510 BOONE NC 28607 X JOHN BENJAMIN JAK REEVES CHAIRMAN 0.00 X X 0 0 280 JACK BOONE VICE CHAIRMAN 0.00 X X 0 0 540 TAMARA C DIVENERE BOARD MEMBER 0.00 X 0 0 405 DAVID BLANKENSHIP BOARD MEMBER 0.00 X 0 0 572 SAM DEYTON BOARD MEMBER 0.00 X 0 0 572 JOHN MYERS BOARD MEMBER 0.00 X 0 0 382 JOHN GREENE BOARD MEMBER 0.00 X 0 0 437 DAVID CHOATE BOARD MEMBER 0.00 X 0 0 479 EG NED FOWLER PRESIDENT/CEO 1.00 40.00 X 0 138520 0 AURELIA LEONARD VICE PRESIDENT/SECRETARY 1.00 40.00 X 0 113948 0 MORGAN HESS TREASURER/CFO 1.00 40.00 X 0 99517 0 AMY BUTLER ASSISTANT SECRETARY 1.00 40.00 X 0 61173 0 0 413158 3667 0 0 0 0 0 1691142 3024592 4715734 RENTAL INCOME 531110 995328 995328 TENANT CHARGES 531110 24307 24307 LAUNDRY AND VENDING 531110 16860 16860 1036495 7261 7261 41356 -41356 -41356 -41356 OTHER INCOME 900099 160172 160172 SECTION 8 CONVERSION C 900099 40389 40389 COMPANY MANAGEMENT FEE 900099 10758 10758 211319 5929453 1247814 0 -34095 X 354101 354101 80529 80529 37200 37200 764901 722769 42132 235884 235884 572357 572357 633340 633340 98184 98184 CONTRACTS 407227 407227 SUPPLIES 74301 74301 COMMUNICATIONS 57249 57249 BAD DEBT 41057 41057 95 95 3356425 2842463 513962 0 2147030 3262862 1007283 1039953 2512159 2515523 18808350 5718549 11987790 13089801 114826 113909 2362138 4682908 20131226 24704956 912852 731566 444602 296561 8994593 11078487 3390171 3639883 13742218 15746497 X 6389008 8958459 6389008 8958459 20131226 24704956 X 2573028 -3577 X X 0 1 X 0 0 X X 1 NORTHWESTERN REGIONAL HOUSING AUTHORITY 561243312 6 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 PART IV, SECTION D, LINE 3 NOTE: IN THE FOLLOWING COMMENTS, "SUPPORTED ORGANIZATION" MEANS NORTHWESTERN REGIONAL HOUSING AUTHORITY. SUPPORTED ORGANIZATION APPOINTS THREE OF SUPPORTING ORGANIZATION'S EIGHT DIRECTORS, AND SHARES EXECUTIVE AND FINANCIAL MANAGEMENT PERSONNEL WITH SUPPORTING ORGANIZATION. PURPOSES OF SUPPORTED ORGANIZATION AND SUPPORTING ORGANIZATION ARE IDENTICAL, AND ACTIVITIES OF THE TWO ARE CLOSELY COORDINATED AT BOTH MANAGEMENT AND BOARD LEVELS TO ACHIEVE DESIRED RESULTS AND ACCOMPLISH STATED MISSIONS. SUPPORTED ORGANIZATION THEREBY HAS A "SIGNIFICANT VOICE" IN OPERATION OF SUPPORTING ORGANIZATION. THE SUPPORTED ORGANIZATION PROVIDED $68,035 OF DONATED SERVICES RELATED TO MANAGEMENT OF THE SUPPORTING ORGANIZATION. PART IV, SECTION E, LINE 2A: SUPPORTED ORGANIZATION'S MISSION IS PROVIDING AFFORDABLE HOUSING THROUGH A COMBINATION OF DEVELOPING, OWNING, AND/OR MANAGING AFFORDABLE RENTAL UNITS; ADMINISTERING FEDERAL- AND STATE-FUNDED HOUSING ASSISTANCE TO QUALIFYING HOUSEHOLDS; AND PROVIDING HOUSING COUNSELING SERVICES TO BOTH HOMEOWNERS AND HOMELESS PERSONS. SUPPORTING ORGANIZATION'S MISSION IS SYNONYMOUS WITH THAT OF THE SUPPORTED ORGANIZATION. SUPPORTING ORGANIZATION ASSISTS WITH AND FURTHERS THE SHARED MISSION PRIMARILY BY SERVING AS THE DEVELOPMENT ARM OF THE SUPPORTED ORGANIZATION, PROVIDING ACCESS TO PRIVATE MARKET CAPITAL SOURCES, DEVELOPMENT FUNDING AND EXPERTISE THAT ARE LESS DIRECTLY AVAILABLE TO THE SUPPORTED ORGANIZATION, THEREBY ENABLING SUPPORTED ORGANIZATION TO FOCUS ON MANAGING AFFORDABLE HOUSING PROPERTIES AND ADMINISTERING VARIOUS GOVERNMENT SUBSIDIZED HOUSING ASSISTANCE AND COUNSELING PROGRAMS. SUCH ACTIVITIES COMPRISE ALL OF SUPPORTING ORGANIZATION'S BUSINESS, AND ARE THE SOLE REASON FOR THE COMPANY'S EXISTENCE. PART IV, SECTION E, LINE 2B: SEE COMMMENTS ABOVE RE: LINE 2A. ABSENT SUPPORTING ORGANIZATION'S EFFORTS, SUPPORTED ORGANIZATION WOULD HAVE TO EITHER DIVERT RESOURCES AWAY FROM EFFECTIVE MANAGEMENT AND ADMINISTRATION OF HOUSING ASSISTANCE PROGRAMS SO AS TO ENGAGE DIRECTLY IN DEVELOPING ADDITIONAL HOUSING UNITS, OR WOULD HAVE TO FOREGO, IN WHOLE OR IN PART, EFFORTS TO DEVELOP ADDITIONAL SUCH UNITS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1659361 1659361 16286603 5174669 11111934 133718 82976 50742 728668 460904 267764 13089801 EQUITY INVESTMENT IN AFFILIATED ENTITIES 511220 REAL ESTATE HELD FOR DEVELOPMENT 635185 CONSTRUCTION IN PROGRESS 3536503 4682908 OTHER - AFFILIATES 3568690 TENANT SECURITY DEPOSITS 71193 3639883 X 5997488 68035 68035 5929453 0 5929453 3428037 68035 3577 71612 3356425 0 3356425 PART X, LINE 2: NHE IS A NOT-FOR-PROFIT CORPORATION AND IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE COMPANY FILES INFORMATIONAL RETURNS WITH THE INTERNAL REVENUE SERVICE, BUT IS GENERALLY NOT SUBJECT TO INCOME TAXES. WH, VBH, AND JAH ARE "C CORPORATIONS" UNDER THE INTERNAL REVENUE CODE AND EACH FILES APPROPRIATE RETURNS WITH THE IRS AND THE NORTH CAROLINA DEPARTMENT OF REVENUE. ESTIMATED FEDERAL AND STATE INCOME TAXES DUE ON EARNINGS OF THESE THREE COMPANIES ARE RECORDED AS EXPENSES AND CURRENT LIABILITIES. REVENUES AND EXPENSES OF THE LIHTC PROJECTS ARE COMBINED WITH THOSE OF NHE IN PREPARING NHE'S IRS FORM 990 AND RELATED SCHEDULES. IT IS THE COMPANY'S POLICY TO EVALUATE ALL TAX POSITIONS TO IDENTIFY ANY THAT MAY BE CONSIDERED UNCERTAIN. ALL IDENTIFIED MATERIAL TAX POSITIONS ARE ASSESSED AND MEASURED BY A MORE-LIKELY-THAN-NOT THRESHOLD TO DETERMINE IF THE TAX POSITION IS UNCERTAIN AND WHAT, IF ANY, EFFECT THE UNCERTAIN TAX POSITIONS MAY HAVE ON THE CONSOLIDATED FINANCIAL STATEMENTS. NO MATERIAL UNCERTAIN TAX POSITIONS WERE IDENTIFIED FOR 2023 OR 2022. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF CONSOLIDATED FOR-PROFIT SUBSIDIARIES INCLUDED 3,577. IN THE AUDITED FINANCIAL STATEMENTS BUT NOT ON THE 990. NOTE: EACH FOR-PROFIT SUBSIDIARY EXCLUDED FROM FORM 990 FILES A FORM 1120 RETURN AND PAYS APPLICABLE FEDERAL INCOME TAXES ON TAXABLE INCOME. 1 X 0 0 0 0 0 0 0 0 0 PART I, LINE 3 CEO (PRESIDENT) RECEIVES NO COMPENSATION FROM FILING ORGANIZATION. COMPENSATION FROM RELATED ORGANIZATION (AS REPORTED ON FORM 990, PART VII, SECTION A, LINE 1A) IS APPROVED BY THE ORGANIZATION'S BOARD OF DIRECTORS. FORM 990, PART V, LINE 1C: BACKUP WITHHOLDING WAS NOT REQUIRED FOR REPORTABLE PAYMENTS TO VENDORS IN 2023. FORM 990, PART VI, SECTION B, LINE 11B COPY OF COMPLETED FORM 990 AND RELATED SCHEDULES WAS PROVIDED TO AND REVIEWED WITH ALL BOARD MEMBERS PRIOR TO FILING WITH IRS. THE REVIEW WAS CONDUCTED BY THE ORGANIZATION'S CHIEF FINANCIAL OFFICER AND PRESIDENT. FORM 990, PART VI, SECTION B, LINE 15 ORGANIZATION HAD NO PAID EMPLOYEES AT ANY TIME DURING 2023. SEE FORM 990, PART VII, SECTION A, LINE 1A, LINES (1)-(4). FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN B: FOWLER, LEONARD, BUTLER AND HESS SPEND/SPENT 25-40 HOURS PER WEEK (IN ADDITION TO AVERAGE HOURS WORKED FOR ORGANIZATION) WORKING FOR RELATED TAX-EXEMPT ORGANIZATION NORTHWESTERN REGIONAL HOUSING AUTHORITY (NRHA). DIRECTORS CHOATE AND REEVES WERE ALSO MEMBERS OF THE NRHA BOARD OF TRUSTEES DURING 2023, AND SPENT AND AN AVERAGE OF ONE HOUR PER WEEK ON NRHA BUSINESS. NO OTHER ORGANIZATION DIRECTOR WAS DIRECTLY INVOLVED WITH NRHA DURING 2023. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN F: AMOUNTS REFLECTED REPRESENT NOMINAL DIRECTORS' FEES ($75 PER MEETING ATTENDED). FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 722,769. MANAGEMENT AND GENERAL EXPENSES 42,132. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 764,901. FORM 990, PART XI, LINE 9: EXPENSES OF FOR-PROFIT SUBSIDIARIES INCLUDED -3,577. IN THE AUDITED FINANCIAL STATEMENTS BUT NOT ON THE 990. FORM 990, PART XII, LINES 2B AND 2C FULL BOARD OF DIRECTORS APPROVES SELECTION OF INDEPENDENT AUDITOR AND DELEGATES ROUTINE OVERSIGHT OF THE AUDIT FUNCTION TO THE CFO AND PRESIDENT, WITH THE EXPECTATION OF TIMELY PROGRESS REPORTS FROM CFO OR PRESIDENT TO THE BOARD, AS WELL AS MEETING OF THE FULL BOARD WITH INDEPENDENT AUDITOR AT CONCLUSION OF THE AUDIT PROCESS. WOODLAND HILLS LLC (FORMERLY WOODLAND HILLS LP) PO BOX 1673 BOONE NC 286071673 561928573 AFFORDABLE RENTAL HOUSING NC 227912 171303 NHE 56-1924027 BOONE WHITE LAUREL LLC PO BOX 1673 BOONE NC 286071673 561974898 AFFORDABLE RENTAL HOUSING NC 619411 2584363 NHE 56-1924027 BLUE RIDGE HOUSING OF JEFFERSON LLC PO BOX 1673 BOONE NC 286071673 562102264 AFFORDABLE RENTAL HOUSING NC 303970 1377222 NHE 56-1924027 BLUE RIDGE HOUSING OF BAKERSVILLE LLC PO BOX 1673 BOONE NC 286071673 562101998 AFFORDABLE RENTAL HOUSING NC 231927 1151982 NHE 56-1924027 BLUE RIDGE HOUSING OF SPARTA LLC PO BOX 1673 BOONE NC 286071673 562164864 AFFORDABLE RENTAL HOUSING NC 301892 1658414 NHE 56-1924027 BLUE RIDGE HOUSING OF ELK PARK LLC PO BOX 1673 BOONE NC 286071673 562292032 AFFORDABLE RENTAL HOUSING NC 472664 2466553 NHE 56-1924027 BLUE RIDGE HOUSING OF BURKE LLC PO BOX 1673 BOONE NC 286071673 872374696 AFFORDABLE RENTAL HOUSING NC 30438 2260090 NHE 56-1924027 NORTHWESTERN REGIONAL HOUSING AUTHORITY PO BOX 2510 BOONE NC 286072510 AFFORDABLE HOUSING NC 170(C)(1) N/A N/A 0 WILKESBORO HOUSING INC PO BOX 1673 BOONE NC 286071673 274481586 AFFORDABLE HOUSING NC NHE C 166 1.00000 1 JEFFERSON ASHE HOUSING INC PO BOX 1673 BOONE NC 286071673 463421446 AFFORDABLE HOUSING NC NHE C 341 10298 1.00000 1 VALDESE BURKE HOUSING INC PO BOX 1673 BOONE NC 286071673 872413047 AFFORDABLE HOUSING NC NHE C 100 1.00000 1 0 1 0 0 1 0 0 0 0 0 1 0 0 1 1 1 0 0 0 NORTHWESTERN REGIONAL HOUSING AUTHORITY E 274063 LOAN BALANCE - SEE PART VII NORTHWESTERN REGIONAL HOUSING AUTHORITY K 4800 CASH PAID - SEE PART VII NORTHWESTERN REGIONAL HOUSING AUTHORITY N 0 SEE PART VII NORTHWESTERN REGIONAL HOUSING AUTHORITY O 68035 FMV - SEE PART VII NORTHWESTERN REGIONAL HOUSING AUTHORITY P 491928 CASH PAID - SEE PART VII FORM 990, SCHEDULE R, PART V, LINE 2: 1) NHRA HAS GUARANTEED CERTAIN OF NHE'S MORTGAGE LOAN FROM COMMERCIAL BANKS. NO NRHA ASSETS ARE PLEDGED IN CONNECTION WITH THESE GUARANTEES. 2) ORGANIZATION'S WOODLAND HILLS LLC PROJECT RENTS OFFICE SPACE FROM NRHA'S YANCEY COUNTY, NC PUBLIC HOUSING DEVELOPMENT AT THE RATE OF $400 PER MONTH. 3) ORGANIZATION'S BUSINESS AFFAIRS ARE CONDUCTED FROM THE CENTRAL ADMINISTRATIVE OFFICES OF NRHA. NO CHARGES ARE ASSESSED BY NRHA. 4) UNDER FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACOCUNTING STANDARDS UPDATE 2013-08, WHICH THE ORGANIZATION IMPLEMENTED BEGINNING IN 2015, ORGANIZATION IS REQUIRED TO RECORD CONTRIBUTED SERVICES INCOME EQUAL TO THE ESTIMATED VALUE OF NRHA MANAGEMENT TIME SPENT ON ORGANIZATION BUSINESS, BUT NOT BILLED TO ORGANIZATION. THE ESTIMATED VALUE OF SUCH SERVICES (BASED ON NHRA'S ACTUAL COSTS), WAS $68,035 IN 2023. 5) REIMBURSEMENT FROM ORGANIZATION TO NRHA FOR COSTS (SALARIES, ADMINISTRATIVE EXPENSES, AND RENTAL CHARGES INCURRED BY NRHA IN SUPPORT OF ORGANIZATION'S ACTIVITIES, AND BILLED TO ORGANIZATION BY NRHA); ALL SUCH REIMBURSEMENTS IN 2023 RELATED TO DISREGARDED ENTITIES WOODLAND HILLS LLC; BOONE WHITE LAUREL LLC; BLUE RIDGE HOUSING OF JEFFERSON LLC; BLUE RIDGE HOUSING OF BAKERSVILLE LLC; AND BLUE RIDGE HOUSING OF SPARTA LLC.