Compliance
All non-profit organizations receive periodic IRS audits to verify compliance with governing regulations. In 2006 AHF operations covering tax returns from 2002 through 2005 were audited. Because of the scope of AHF operations, this was a six month process covering thousands of documents. The final IRS determination was as follows:
Our examination of the information returns(s) indicated above discloses that your organization continues to qualify for exemption from Federal Income Tax. Accordingly, we accept the return(s) as filed.
This no change opinion from the National Office of the IRS equates to the GOOD HOUSEKEEPING SEAL OF APPROVAL FOR any charitable organization, and for an organization of the size and complexity of AHF is quite remarkable. The opinion also stands as solid testament to the sound accounting and business practices of the AHF organization.
Innovation
Programs demonstrating innovative solutions include:
Student Housing and Educational Opportunity (EOP) Plan
In October of 2002 AHF received a Private Letter Ruling (PLR) from the IRS. The PLR allowed AHF to develop both on and off campus student housing and to issue tax exempt housing bonds.
AHF was the first non-profit organization to be allowed to issue the tax exempt student housing bonds without being sponsored or connected to the university.
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Innovation (continued)
A part of the PLR approval was for AHF's Educational Opportunity Plan "EOP" for scholarships. The EOP scholarships are for (1) first generation students, (2) students whose families are at 60% of median income or less and (3) single parents.
To date AHF has built $36,000,000 in student housing property. The student housing property, its future value, and all the related cash flow is restricted to the EOP scholarship fund. From January 2004 through June 2006 AHF has awarded the following Scholarship funds:
Dallas Housing Authority,
Phoenix Scholarship Fund
$780,000
Johnson & Wales University,
Charlotte, NC
$100,000
Hillsborough County, Florida,
Take Stock In Children
$100,000
Santa Rosa County, Florida,
Take Stock in Children
$75,000
Pensacola Jr. College, Univ. of West Florida, College Reach Out Program $75,000
Escambia County, Florida,
Take Stock in Children
$50,000
University of Wyoming,
Laramie, Wyoming
$25,000
Travis County, Texas
(Allocated, Funding in 2007)
$300,000
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Innovation (continued)
Community Development
In 2003 AHF requested and received approval as a Community Development Entity (CDE) from the United States Department of Treasury. The purpose of the CDE designation was to allow AHF to develop commercial properties in Qualified Census
Tracts (QCT) and rural areas as part of its charitable mission.
Child Care Facilities
On site child care facilities have been developed and are annually funded at multiple AHF properties.
Medical Facilities
Using the CDE Program, AHF was able to address a need for medical care facilities in rural areas and to date has developed the following facilities (no contributions or grants were requested or utilized):
Rural medical clinics in Snyder, Lamesa, & Andrews, Texas that are operated by the Sisters of St. George of Orange County, California and Covenant Health Care Systems;
Medical clinic in Carlsbad, New Mexico that is operated by the Sisters of St. George of Orange County, California and Covenant Health Care Systems;
Medical Clinic in Oklahoma City, operated through Sooner Care and Oklahoma Community Action Agency;
HUD approved Neighborhood Network Center in Austin, Texas.
Home Ownership
Home ownership is a basic element of the American dream, but this dream is often considered to be out of reach by many low income families. In response, AHF supports home buyer education programs as well as a New Markets Tax Credit (NMTC) program that, to date, has developed 175 single family homes. The goal is to create 25 new low income home buyers annually through the continuation of this program.
Other Community Development
AHF was certified by the Texas Department of Housing and Community Affairs "TDHCA" as a Community Development Housing Organization "CHDO". AHF's recent expenditures for CHDO program properties and residents is summarized as follows:
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2003 |
2004 |
2005 |
Capital Improvements |
$6,867,446 |
$11,994,850 |
$4,866,250 |
Rental Reductions |
$6,569,292 |
$14,167,582 |
$29,000,597 |
Resident Services |
$2,651,133 |
$2,959,304 |
$5,107,239 |
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