HomeMy Public PortalAboutCDP Cape Housing Institute CPC Application (900
community development partnership
December 1, 2017
Paul Ruchinskas
Chair, Brewster Community Preservation Committee
Brewster Town Hall
2198 Main Street
Brewster, MA 02631- 1898
RE : 2017 CPA PROJECT FUNDING REQUEST : Caoe Housing Institute ,
Dear Mr . Ruchinskas :
I am pleased to enclose 12 copies of an application from the Lower Cape Cod Community Development
Corporation d/ b/a the Community Development Partnership ( CDP ) in submission for 2017 CPA Project
Funding . I have also enclosed a thumb drive containing the complete application .
The CDP is excited about expanding our Cape Housing Institute in Year 2 ( 2018 ) to offer this training
opportunity to municipal officials and town staff in Brewster along with advanced level topics for those
who will have already attended the Cape Housing Institute in Year 1 ( 2017 ) . The Cape Housing Institute
is a much needed continuing education opportunity as evidenced by the 73 Lower Cape officials who
registered for our first annual 2017 Institute . These participants currently include members of the
Brewster Community Preservation Committee, Brewster Finance Committee, Brewster Housing
Partnership, Brewster Planning Board , Brewster Open Space Committee and staff from the Departments
of Town Administration , Police and Planning . In total, eleven municipal officials and town staff from
Brewster participated in the 2017 Cape Housing Institute .
With 25 years of experience in managing and developing affordable housing, the CDP understands that
creating more affordable housing in our region is complicated . That's why we created the Cape Housing
Institute to demystify the process and support towns in creating and implementing a comprehensive
housing supply strategy to meet current housing needs and plan for future growth .
We look forward to the Committee' s response and please feel free to contact me with questions or
comments .
Sincerely,
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Jay Cob�ur n
C ief Ed edutive Officer
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3 Main Street Mercantile, Unit 7, Eastham, MA 02642 ph : 508 . 240 . 7873 800 . 220 . 6202 fx : 508 . 240 . 5085
contact@capecdp . org www . capecdp . org www . facebook. com/capecdp
Brewster • Chatham • Eastham • Harwich • Orleans • Provincetown • Truro • Wellfleet
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APPLICATION FOR COMMUNITY PRESERVATION ACT FUNDING
Date Application Submitted : December 1 , 2017
Name of Project Applicant : Community Development Partnership
Name of Co-Applicant(s) , if applicable :
Name of Contact Person : Ann Robinson , Chief Program Officer
Contact Person ' s Mailing Address * 3 Main Street Mercantile , Unit 7 , Eastham , 02642
Contact Person ' s Daytime Phone Number : ( 5 0 8 ) 240 - 7873 x13
Contact Person ' s email Address : ANN@CAPECDP . ORG
Proposed Project Name : Cape Housing Institute
Project Address (or assessor' s parcel ID) : Not applicable
Project Synopsis :
The Community Development Partnership seeks funding to support the second year
of the Cape Housing Institute , a 6 - week training that equips local elected and
appointed officials with the knowledge and skills needed to support the
creation of more year - round housing in the Lower Cape , including Brewster .
Category : ❑ Open Space ❑ Historic Preservation ❑ Recreation N Community Housing
CPA funding requested $ $ 151000a00 Total Cost of Proposed Proj ect $ 17 5 , 0 0 0
PROJECT DESCRIPTION
See attached Project Description
Form 1111012015 Community Preservation Committee Application 3
I
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
Project Description
1 . Project Description
The lack of affordable housing on Cape Cod is a crisis that places considerable strain on year round
residents and impedes economic development in the region due to the lack of housing for the
workforce . Affordable year- round rentals are in short supply, rental stock is limited due to the
premium placed on high- priced summer vacation rentals, and lower-wage workers cannot afford
market rate rents for year- round housing . In the US, 31% of housing units are occupied by renters,
while on Cape Cod only 13% of housing units are available for year- round renters . Between 2010
and 2015, the Cape lost 3, 800 year- round housing units while gaining 5,000 seasonal units . To meet
current needs, the Cape Cod Commission estimates that the Lower Cape needs 1, 100 new units of
housing affordable to working families . Our proposed program , the Cape Housing Institute, will
assist the Town of Brewster in responding to this crisis by supporting the creation of affordable
housing in its town .
The Cape Housing Institute is a component of the Cape Community Housing Partnership — a
comprehensive response to insufficient affordable housing in Brewster and throughout Barnstable
County. The region' s ability to respond to this housing crisis is hindered by land use policies that
encourage sprawl and discourage smart growth oriented multi-family housing . Existing zoning has
resulted in a housing monoculture : over 80% of the Cape' s housing is single family, detached homes
on one acre lots . Local elected and appointed municipal officials and town staff are in need of
training and technical assistance in the complexity of developing and managing housing that is
affordable to year round residents in order to address this situation .
Another major factor hindering the creation of affordable housing in the region has been
community resistance to specific proposals to build affordable housing . Many voters have
misconceptions and harbor stereotypes about working families in need of affordable housing. Few
voters understand the economics of development and the need for density to reduce costs and
impact on the environment .
In June of 2017, the Community Development Partnership ( CDP ) launched a comprehensive
community- based strategy entitled the Cape Community Housing Partnership ( CGRP ) in partnership
with Housing Assistance Corporation . It is designed to build public support for affordable housing
and equip LMI residents, business and community leaders, and local elected and appointed officials
with the knowledge and skills to support the creation of more year- round housing. The CDP is
responsible for implementing the CCHP on the Lower and Outer Cape while Housing Assistance
Corporation is responsible for implementation on the Upper and Mid -Cape .
The CCHP will help overcome many of the barriers to developing more affordable housing in the
region in order to better meet the housing needs of working families . Without an informed
electorate, skilled and knowledgeable volunteer officials, and town staff with expertise in affordable
housing development, little progress can be made in addressing the region's affordable and year-
round housing challenges . The CCHP will address these barriers through traditional community
organizing and leadership development strategies in three ways :
1
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
Strateev 1 : Cane Housine Institute
In October 2017, the CDP offered the first of what will be an annual Cape Housing Institute (CHI ) to
educate at least 40 local elected and appointed officials across each town on the Lower and Outer
Cape including the Town of Brewster. Training consists of a series of six workshops that equip
officials with the knowledge and skills to support affordable housing development in their towns .
Each workshop is held two times per week, once in each sub- region ( Lower Cape and Outer Cape ) to
make the CHI accessible to both retirees and working people . We have collaborated with Mass
Housing Partnership ( MHP ) and the Cape Cod Commission to develop the curriculum . Both
organizations provide guest speakers and advice on the project.
The Cape Housing Institute covers the following topics :
1. Session 1 : Introduction to Housing
a . Defining affordability
b . Overview of the Chapter 40B process
c . Review of the Cape Cod Commission's 2017 Regional Housing Market Analysis and 10"
Year Forecast of Housing Supply and Demand for Barnstable County
2 . Session 2 : Planning & Needs Assessment
a . Developing a Housing Supply Strategy (going beyond a Housing Production Pian to
create housing for all income levels )
b. Funding and technical assistance available to support development of a Housing Supply
Strategy
3 . Session 3 : Zoning & Site Selection
a . Current Cape Zoning and housing types
b . Missing housing stock and housing types
c. Site selection & Infrastructure issues
4. Session 4 : Financing 101 & Development
a . Building affordably without subsidy and public subsidies in other forms
b. Understanding an Operating Pro Forma for a Mixed -Income Rental Project
c. Phases of Development
5 . Session 5 : Making the Case for Affordable Housing
a . What is Fair Housing? Why is it important to build strong communities and when does it
apply?
b . The RFP process & issues that arise
c. Chapter 30B Procurement rules
6 . Session 6 : Developing an Action Plan
a . Regionalism : How towns can work together to solve their affordable housing problems
b. Developing an Action Plan in your town
Strateev 2 : Advocate Training
Lower Cape residents concerned about the lack of affordable housing will be trained to develop
leadership, organizing and public speaking skills to effectively engage in public hearings and Town
Meetings. Participants will gain an understanding of how affordable housing is created and how
decisions are made at a town level that affect the development of affordable housing. Training will
launch in February 2018 .
2
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
Strateev 3 : Public Education Campaien
Most municipal decisions affecting affordable housing development require a town meeting vote .
Therefore, it is critical to develop broad support for affordable housing. This campaign is designed
to dispel stereotypes about Low- Moderate Income residents of affordable housing developments .
The CCHP will implement a media campaign that will launch in March 2018 and will utilize print,
broadcast and social media to build broader support for affordable housing on the Cape .
At the end of Year 1, the CDP will have already developed the curriculum and received feedback
from a graduating class of municipal officials and staff making this project entirely feasible . The CDP
will be poised to offer a second annual Cape Housing Institute building on lessons learned . As
participants share their experience with colleagues, we are confident that demand for the Cape
Housing Institute will increase . It is our goal to provide training to all town officials and staff who are
interested .
This application seeks funding to support Year Two of the Cape Housing Institute (July 1, 2018
through June 30, 2019) . Given regular turnover among elected and appointed officials , and the
existence of a pool of over 400 eligible participants, the Cape Housing Institute will be offered
annually . In addition , we will develop a program of quarterly half-day workshops for graduates of
the Cape Housing Institute, designed to cover more advanced topics related to housing production
and planning. To ensure knowledge stays current, participants of the Institute will receive
communications regarding important information related to affordable housing . It is necessary that
the Cape Housing Institute continues to build momentum from the previous year to address the
urgency of meeting the housing needs of our Lower Cape towns . At this time, the CDP is the only
organization offering affordable housing training and resources to Lower Cape towns through a
regional approach and with a local, Cape Cod focus .
The project will be expanded , beginning in Year 2, by adopting a model in existence in suburban
Boston whereby 5 towns have joined forces to establish a regional affordable housing office to
provide technical and planning services to towns around affordable housing production . By hiring
consultants to work with individual towns on their specific needs, we will boost internal capacity and
foster multi -town collaboration on affordable housing initiatives . As a non - profit, the CDP can more
efficiently provide these services rather than having Towns contract for such services themselves .
The CDP will seek Community Preservation Funds from each of the towns to provide these services .
2 . For Historic Preservation projects
Not applicable
3 . CPA Goals/Criteria
The Cape Housing Institute is specifically designed to assist the Town of Brewster in creating,
preserving and supporting community housing for low-to- moderate income residents including
families and seniors . As such, this project is eligible for CPA funds under the Community Housing
eligible use . By attending the Cape Housing Institute and advanced training, Town officials and staff
will have the knowledge and tools that they need to make decisions and implement strategies that
increase affordable housing in a way that is appropriate for the town . Furthermore, Brewster will be
better positioned to support the creation of affordable housing in a way that protects open space,
maintains its historic character and enhances recreational use of land .
3
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
Alignment with the Brewster CPC General Criteria
• Boost the vitality of the Town
Reducing the burden of housing costs for residents is a critical component of community
wellness and vitality. Cost burdened families experience greater financial and personal
stress with a cascade of associated negative impacts to these families . Residents who are
able to afford a safe and appropriate home are better able to engage with and contribute to
the local economy .
• Enhance the quality of life for Brewster residents
Safe and decent housing is the most important aspect of life quality. Creating affordable
housing for residents directly impacts their quality of life .
• Serve a currently under-served Town population
The primary beneficiaries of the Cape Housing Institute are local elected and appointed
municipal officials who are involved in decisions that affect housing production . Municipal
officials lack continuing education opportunities . The Cape Housing Institute is the only local
training opportunity related to increasing the production of affordable housing .
• Demonstrate practicality and feasibility, and ability to implement within budget
The Community Development Partnership has developed the program expansion and
budget based on actual year 1 costs and participants feedback. The CDP has a track record
of high quality program delivery.
• Leverage additional public and/or private funds
The CDP has applied for private and public funding to support year 2 of the Cape Housing
Institute . Additionally, the CDP will contribute reserve funds to fill the funding gap as
necessary .
• Preserve, enhance or better utilize existing Town resources
The Cape . Housing Institute is designed to support town staff in better focusing their priorities and
resources to implement strategies that have the highest potential for impact . As part of the
year 2 expansion, the CDP will seek and pay for consultants to support town in
accomplishing their specific affordable housing production goals .
Alignment with the Brewster CPC Category Specific Criteria for Communitv Housing Proposals
• Contribute to the goal of achieving 10 percent affordable housing
• Promote a socioeconomic environment that encourages diversity
• Provide housing that is harmonious in design and scale with the surrounding neighborhood
• Ensure long-term affordability
• Promote use of existing buildings or construction on previously-developed or Town- owned
sites
• Convert market rate to public subsidized units
• Provide an appropriate mix of rental and ownership housing
• Give priority to local residents, town employees, employees of local business as allowed by
law
4
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
The purpose of the Cape Housing Institute is to provide Brewster elected and appointed officials,
and staff with the knowledge and skills necessary to increase the supply of affordable housing in
their town . By definition, these units will add to Brewster' s Subsidized Housing Inventory (SHI )
thereby getting closer to meeting the Commonwealth' s 10% affordability goal . However, the
Institute will go further by teaching participants how to exceed this goal by planning for the future
needs of town residents at all income levels . The Cape Housing Institute will support the Town of
Brewster in determining its affordable housing needs and implementing strategies to meet those
needs in a way that is place- based and contextual .
Session one of the Cape Housing Institute lays the foundation for the institute by reviewing regional
and town- level data on the current and future housing needs . Session two provides an overview of
the different types of planning tools available to meet specific needs .
The Cape Housing Institute will dedicate an entire session (three ) to Zoning and Site Selection .
Understanding housing types as well as analyzing the housing stock that is missing in your town is
critical to making informed decisions about the range of zoning tools available to meet production
goals . A local affordable housing developer and architect will provide a unique perspective to zoning
options and how they can help or hinder a town in utilizing zoning options that attract the type of
development that Brewster desires and requires to reach 10% of affordable housing stock.
Session three will also provide alternatives to current zoning and case studies that demonstrate how
the town can meet housing needs in a way that is appropriate for Brewster. Throughout the
Institute, we will be focusing on reducing sprawl and protecting open spaces by encouraging village
housing close to infrastructure and amenities, which residents prefer.
Session four will focus on understanding the complex financing required to develop affordable
housing as well as the phases of development as they pertain to the town . In sessions two and four,
participants will learn about funding sources and municipal subsidies that can support these
processes and attract high quality developments .
In Session five we will review the historical policies that have led to the homogenous population that
we have on the Cape and the resulting Fair Housing regulations that towns must abide by .
Participants will understand why each town is legally obligated to take action to increase diversity in
our region .
Session six will discuss regionalism and the utility of sharing housing staff and knowledge across
towns to leverage limited resources and share solutions across the region . This session will also
support Brewster participants in identifying concrete action items that are specific to the Town of
Brewster such as the goals above . Progress on these goals can be supported by strengthening
communication with neighboring towns who are striving toward the same goal or who are hoping to
do so . Therefore, participants will be led through a process to identify opportunities for cross
collaboration .
4. Community Benefits
As a result of receiving training, Brewster will be better positioned to implement changes in zoning
by- laws that support affordable housing development . These changes will ultimately increase the
number of affordable units in Brewster's Subsidized Housing Inventory. Furthermore, Brewster will
increase its utilization of Community Preservation Act funding for community housing.
S
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
The success of the Cape Housing Institute will be measured against the following short -term and
long-term outcomes :
• 40 local elected and appointed officials will have a solid knowledge of affordable housing
development solutions and strategies .
• Broad public support will exist for the development of affordable housing units .
• Towns will implement changes in zoning by-laws that support affordable housing
development .
• There will be an increase in the number of affordable units to each town' s Subsidized
Housing Inventory.
• Towns will utilize Community Preservation Act funding for affordable housing.
S . Community Support
The CDP has collected preliminary feedback from municipal officials and staff who are participating
in the Cape Housing Institute . Participants were asked to state the value of the Cape Housing
Institute from the following options : Very valuable, Valuable, Fairly valuable or Not valuable . As of
November 29th, 100% of respondents indicate that the sessions are either Very valuable or Valuable .
We have also received anecdotal praise for the Cape Housing Institute and how it empowers
municipal officials to work toward their affordable housing goals . At the end of the Institute, all
participants were asked to complete a final evaluation to provide feedback on how we can
strengthen the Cape Housing Institute in year 2 and beyond . The CDP and HAC are currently
deliberating over the evaluation results to develop Year 2 programming that directly responds to
participant feedback .
6 . Timeline
October 2018 — November 2018 Second Cape Housing Institute
February 2019 — March 2019 Second Advocate Training
July 2018 — June 2019 Public Education Campaign
Before the project start date, the CDP will have already evaluated the first year of the Cape Housing
Institute and improved the curriculum and session design by incorporating lessons learned .
Attendee recruitment will be conducted during the summer of 2018 . Recruitment will include
outreach to an extensive email list comprised of all potential participants .
7 . Credentials
Chief Program Officer, Ann C. Robinson, will oversee the Cape Housing Institute . Ann graduated
from Dartmouth College with an A . B . in government and then earned a law degree from Boston
University. Before joining the CDP, Ann was the Executive Director of Bridgeport Neighborhood and
Commercial Services, Bridgeport Neighborhood Fund and Bridgeport Neighborhood Trust, and
Community Capital Fund, all located in Bridgeport, CT.
Ann Robinson will directly supervise the CDP ' s Director of Housing Advocacy, Andrea Aldana , who is
responsible for implementing the Cape Housing Institute as well as the broader Cape Community
Housing Partnership throughout the eight towns of the Lower Cape including Brewster. Andrea
holds a BA in Metropolitan Studies from New York University with a minor in Environmental Science .
6
2017 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
Andrea has been with the CDP for over six years and also runs the First Time Homebuyer Education
program .
8 . Budget/ Need for Public Funds
See attached budget and recent audited financial report . CPA funds would be used for town
consultants and salaries and will directly benefit the Town of Brewster. Costs are based on actual
costs from the 2017 Cape Housing Institute .
One commitment of $ 15 ,000 has been received for funding for the second year of the Cape
Community Housing Partnership from the Ferring Foundation . Each of the eight towns of the Lower
and Outer Cape is being asked to commit CPA funds to this project . In addition, requests have been
made to the United Way, the Cape Cod Foundation and the Kelley Foundation . The CDP will commit
funds from its Cape and Island license plate proceeds .
9. Maintenance
Not applicable .
10. Site Control
Not applicable .
7
2018 Cape Housing Institute Budget
The proposed budget for the Cape Housing Institute is $ 175,000, with the following breakdown :
Income Year 2
Major Donors — $ 15, 000 committed and $ 10, 000 applied for $ 25,000
Cape & Islands Plate Fund — flexible funds can increase if Major Donor funds decrease $ 35,000
Town Community Preservation Funds : includes $ 15, 000 from Town of Brewster $ 115, 000
Total
$ 175,000
Expenses
Salaries & Benefits — Project Director @80% & Program Officer @ 10% $ 79,000
Project implementation - training venues, speakers, travel, training materials $ 200000
venues, speakers, travel, training materials
Consultants - to provide services for towns $ 60, 091
Overhead ( 10%) $ 15, 909
Total $ 175,000
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL
INFORMATION
For the Years Ended June 30 , 2015 and .2015
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Table of Contents
For the Years Ended June 30, 2016 and 2015
Page
INDEPENDENT AUDITOR'S REPORT 1 - 2
FINANCIAL STATEMENTS :
Consolidated Statements of Financial Position 3
Consolidated Statements of Activities 4
Consolidated Statements of Functional Expenses 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7 - 24
SUPPLEMENTAL INFORMATION :
Schedule of Expenditures of Federal Awards 25 - 26
REPORT ON INTERNAL :CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT .OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS 27 - 28
INDEPENDENT AUDITORS REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD . HAVE A . DIRECT AND MATERIAL EFFECT ON EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH UNIFORM GUIDANCE 29 - 30
AUDITOR'S STATEMENT OF FINDINGS AND QUESTIONED COSTS 3142 32
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SANDERS , WALSH & EATON, LLP
CERTIFIED PUBLIC ACCOUNTANTS .
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Community Development Partnership
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Community Development Partnership and
Thankful Chase Pathways , LLC, which comprise the consolidated statements of financial position as of June 30,
2016 and 2015 , and the related consolidated statements of activities, functional expenses and cash flows for the
years then ended, and the related notes to the financial statements.
Management 's Responsibility for the Financia! Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with accounting principles generally accepted in the United States of America , this includes the design,
Implementation , and maintenance of Internal control relevant to the preparation and fair presentation of consolidated
financial statements that are free from material misstatement, whether due to fraud orerror,
Auditor's Responsibility
Our responsibility Is to express an opinion on these consolidated financial statements based on our audits, We
conducted our audits in accordance with audited standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, Issued by the Comptroller
- - - General of the United States. Those standards require that we plan and perform the audit to obtain reasonable f
assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Consolidated financial statements . The procedures selected depend on the auditor's Judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements , whether due to fraud or
error. In making those risk assessments, the auditor considers Internal control relevant to the entity's preparation
and fair presentation of the consolidated financial statements in order to design audit procedures that are
appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's
Internal control, Accordingly, we express no such opinion : An audit also includes evaluating the appropriateness
of accounting policies used and reasonableness of significant accounting estimates made by management, as well
as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion , the consolidated financial statements referred to above present fairly, in all material respects , the
consolidated financial position of Community Development Partnership and Thankful Chase Pathways, LLC as of
June 30 , 2016 and 2015 , and the changes in its net assets and its cash flows for the years then ended in accordance
with accounting principles generally accepted in the United States of America.
i
Other Matters
Other Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a
whole. The accompanying schedule of expenditures of federal awards , as required by Title 2 U.S. Code of Federal
Regulations .(CFR) Part 200, Uniform Administrative Requirements, Cost Principles , and Audit Requirements for
Federal Awards, is presented for purposes of additional analysis and Is not a required part of the consolidated
financial statements, Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the consolidated financial statements. The
Information has been subjeq�tadcWbeaudi"ArculLogogppjkt*ddn,g)gD4pug4atA.92gonsolidated financial
P.Q. Box F • Asterville, MA 02655 * Tel: 508P2890790 . 877A28.1040 • Fax; 508.428.6150
Q 66 00000 6906066066 coo * **
Member • American instmrte ofCenifed PoblkAccountants • Massachusetts Society ofCertiried Public AccountanO
Community Development Partnership and Thankful Chase Pathways, LLC Page 2
statements and certain additional procedures, including comparing and reconciling such Information directly to the
underlying accounting and other records used to prepare the consolidated financial statements or to the
consolidated financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted In the United States of America, In our opinion , the information is fairly stated , in all
material respects , in relation to the consolidated financial statements as a whole,
Other Reporting Required by Govemment Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated November 30, 2018 , on
our consideration of Community Development Partnership and Thankful Chase Pathways , LLC"s Internal control
over financial reporting and on our tests of its compliance with certain provisions of laws , regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing , and not to provide an opinion
on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Community Development Partnership and Thankful
Chase Pathways , LLC's internal control over financial reporting and compliance .
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Osterviile , Massachusetts
November 30 , 2016
2
1
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , .LLC
Consolidated Statements of Financial Position
June 30, 2016 and 2015
ASSETS
2016 2015
Current Assets :
Cash Accounts $ 11165 , 564 $ 818 , 270
Restricted Capital Reserve Cash Accounts 413, 090 458 , 674
Escrow Accounts 116 ,606 231 ,490
Accounts Receivables 357 , 078 473 , 550
Rent Receivables 10, 359 33 , 939
Prepaid expenses 55,233 57 , 306
Security deposits 38 , 999 37 , 987
Loans receivable, current portion 138 ,471 85 , 502
Total Current Assets : 21285 ,400 21196 , 718
Fixed Assets .
Land 10129 , 203 10129, 203
Buildings and equipment 91931 , 801 9 , 81311. 11
Total Fixed Assets 11 , 061 , 004 10 ;9421314
Accumulated depreciation (31036 , 010) (21707 , 552)
Net Fixed Assets 8 , 0241994 80234 , 762
. Other Assets:
Inventory: Fishing permits 6001000 600 ; 000
Loans receivable, long term (net of allowances for
loan losses of $31 ,623 and $40 , 860 respectively) 272, 919 209 , 040
Total Other Assets 872, 919 809 , 040
Total Assets $ 111183 , 313 $ 11 , 240 , 520
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts payable $ 106 , 719 $ 217, 173
Accrued expenses 110, 335 83 , 174
Advance on grant contracts 440, 253 543 ,261
Deposits payable 39 , 626 35, 920
Mortgage and Note payable , current portion 58 , 300 54 , 000
Total Current Liabilities 755 ,233 933 , 528
Long-Term Liabilities:
Mortgage Payable Private and Government 2 ,4621066 2 ,492 , 075
Note Payable - Scallop Quota Loan 441 , 318 477 , 210
Government Mortgages : - Deferred Financing 513891011 51389 , 011
Total Long-Term Liabilities 81292 , 395 8 , 358 , 296
Total Liabilities 91047, 628 9, 2911824
Net Assets :
Unrestricted 21135 , 685 109480696
Total Net Assets 21135, 685 1 ,948, 696
Total Liabilities and Net Assets $ 111183 , 313 $ 11 , 240, 520
The accompanying notes are an integral part of these financial statements
3
3
F
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
; Consolidated Statements of Activities
For the Years Ended June .30 , 2016 and 2015
2016 2015
_Changes in unrestricted net assets
Grant income $ 1 ; 950,747 $ 1 ,2101766
Program incomo 846,842 769 , 509
Contributions 495 ,630 392, 514
Special events 221674 18, 849
Interest income 31551 31920
. Other income 59,296 16,853
Total Revenues and Support 3 , 378, 740 . 2,4110411
Expenses ,
Program 3 , 056 , 881 11990,469
General and administrative 381390 41 , 285
Fundraising 96,479 76 , 511
Total Expenses 3191 , 751 21108 ,265
Increase in Net Assets 186, 989 303, 146
. Net Assets , Beginning of Year 1 , 948, 696 11646 , 550
Net Assets, End of Year $ 2 , 136,685 $ 1 , 948,696
The accompanying notes are an integral part of these financial statements
4
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Consolidated Statements of Functional Expenses
For the Year Ended June 30 , 2016 and 2015
2016
General and
Program .Administrative Fund-Raising Total
Salaries, benefits, and payroll
taxes $ 694 , 918 $ 1494295 $ 4908 $ 894 ; 111
Advertising 18 , 677 23 , 660 1 ,1. , 504 53 ;841
Depreciation and amortization 329 , 519 51678 278 335 ,475
Dues and memberships 4 , 525 1 , 106 397 61026
Insurance 63 ,497 41324 726 68 , 547.
Interest 185, 251 1 , 048 111 186 ,410
Licenses, permits and fees 5 , 772 839 21193 81804
Maintenance and repairs 186 , 887 10 , 916 1 , 737 199 , 540
Office supplies and equipment 23 , 362 61902 6, 967 37 ,231
Professional fees 69 , 502 161465 7,620 93 , 587
Real estate tax 15 , 551 210 1 15 , 762
Rent (Office expense) 15, 006 3,015 497 18 , 518
.Special program 11174, 085 720 1 ; 174 , 805
Training 61580 21040 154 81774
Travel 91510 806 577 10. , 893
Utilities 76, 581 31499 346 79 ,426
Subtotal 21878,223 2294802 83 , 726 31191 , 751
Allocation of G&A costs 178 ,658 ( 191 ,412 ) 12,754 -
Total $ 31056 , 881 $ 38 , 390 $ 96, 479 $ 31191 , 751
. 2015
General and
Program Administrative Fund4Raising Total
Salaries, benefits, and payroll
taxes $ 525 , 055 $ 132 ,630 $ 32 , 541 $ 6900226
Advertising 17 , 154 21 , 982. 11638 40, 774
Depreciation and amortization 314 ,902 4 $ 07 151 3191560
Dues and memberships 3 , 872 1 ,078 . 253 51203
Insurance 610171 41405 471 66 , 047
Interest 172, 277 141 8 172 ,426
Licenses , permits and fees 61447 708 996 80151
Maintenance and repairs 100 , 667 41254 422 105 , 343
Office supplies and equipment 49 , 213 38 , 950 70672 951835
Professional fees 86 , 518 9 , 013 18 ; 605 114 , 136
Real estate tax 14, 355 - - 14 , 355
Rent (Office expense) 19 , 285 018 21087 25 , 690
Special program 363, 225 - - 363 , 225
Training 1 , 856 2 ,678 253 41787
Travel 6 , 377 11039 177 7, 593
Utilities 71 , 555 3 , 104 255 74 , 914
Subtotal 11813; 929 228 , 807 651529 21108 , 265
Allocation of G &A costs 176, 540 (187 , 522 ) 10, 982 6
Total $ 11990 ,469 $ 41 , 285 $ 76 , 511 $ 2 , 1081265
Tile accompanying notes are an integral part of these financial statements
5
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f
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Consolidated Statements of Cash Flows
For the Years Ended June 30, 2016 and 2015
2016 2015
Cash Flows from Operating Activities:
Increase/( Decrease) in net assets $ 186 , 989 $ 303 , 146
Adjustments to reconcile changes in net
assets provided by operating activities:
Depreciation 328;458 316 , 697
( Increase) decrease in :
Accounts receivable 116 ,472 (374 , 585)
Rents receivable 23, 584 ( 141416)
Loan receivables ( 116 , 848) (31 ,221 )
Escrow accounts 114, 884 (33, 315)
Security deposits ( 11012 ) (31020)
Prepaid expenses 21073 ( 13 , 379)
Increase (decrease) in:
Accounts payable (110 ,455) 152 ; 146
Deposits payable 3, 706 313
Accrued expenses 27, 161 12 ,757
Advance on grant contracts ( 103, 008) 283 , 261
Net Cash Provided by Operating Activities 472 , 000 598 , 384
Cash Flows from Investing Activities:
Net deposits to reserves 45, 584 (27, 488 )
Purchase of property and equipment. ( 118 ,690) (368 , 770)
Net Cash Used in Investing Activities (73 , 106) ( 396 , 258)
Cash Flows from Financing Activitles:
Proceeds from loans 74 ,280
Repayments of mortgage payable ( 135, 880) (95 , 696)
Net Cash Used in Financing Activities (61 , 600) (95 , 896)
Net increase in Cash 4337, 294 106 , 230
Cash , Beginning of Year 8181270 712 , 040
Cash , End of Year $ 11155, 564 $ 818 , 270
Supplemental Cash Flow Information
Interest costs incurred $ 186 ,410 $ 172 ,426
Interest subsidy credited (45 , 762) (45 ,762 )
Interest Costs Paid $ 140 , 648 $ 126 ,664
Noncash Financing and Investing Activities;
Government interest subsidies credited towards debt service
requirements $ 45 , 762 $ 45 , 762
Noncash Financing and Investing Activities: $ 45, 762 $ 45 , 762
{
The accompanying notes are an integral part of these financial statements
6
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ,
Oraanization '
The Community Development Partnership d/b/a Community Development Partnership (CDP) was organized
July 1 , 1992 , as a nonprofit corporation under the Massachusetts General Laws Chapter 180 and was formed to
promote and assist commun (ty-based development organizations and Individuals in their efforts to address the
needs of low, and moderate income residents in the Lower Cape Cod Area.
Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in
its Accounting Standards Codification (ASC) No. 958-320, Accounting for Certain Investments Held by Not-for-
Profit Organizations . As a result the financial activity for Thankful Chase Pathway, LLC (TCP) a for"profit
company owned 100% by CDP have been consolidated with the financial activity of CDP for the years ended
June 30, 2016 and 2015 . TCP was formed for the purpose of Investment and holding of a leasehold interest in ,
and development of, real estate and interests therein , including, but not limited to , the leasing , acquiring ,
operating , selling , financing , refinancing , disposing of and otherwise dealing with interests in real estate , directly
or indirectly through joint ventures , partnerships or other entities, specifically those associated with the property
known as 35 Main Street Extension , Harwich , Massachusetts, to be known as Thankful Chase Pathway, with
the specific intention of holding the property as affordable housing , and to engage in any activities directly or
indirectly related or incidental thereto .
Basis of Accountina
The accompanying financial statements have been prepared on the accrual basis of accounting . The significant
accounting policies are described below to enhance the usefulness of the financial statements to the reader,
Basis of Presentation
The consolidated financial statements include the accounts CDP and . TCP (for-profit company) ; its 100% wholly
owned subsidiary, All significant intercompany balances and transactions were eliminated in consolidation . The
organization have common control and an element of economic interest. in accordance with the American
Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 94-3 , consolidation Is required .
Financial statement presentation follows the professional recommendations. Under professional
recommendations , the .Corporation reports information regarding its financial position and activities according to
three classes of net assets: unrestricted net assets , temporarily restricted net assets, and permanently
restricted netassets.
Net assets of the two restricted classes are created only by donor imposed restrictions on their use . All other
. net assets are legally unrestricted and are reported as part of the unrestricted class.
There were no temporarily or permanently restricted net assets or activities as of June 30 , 2016 and 2015.
7
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2016 and 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period . Actual results could differ from those estimates,
Functional Allocation of Expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in
the statement of activities . Accordingly, certain administrative and general costs have been allocated among
the program and supporting services benefited .
Tax Exempt Status
The CDP is a not-for-profit organization exempt from taxes under Internal Revenue Code .501 (c)(3) and Is
defined as a social welfare organization .
Cash and Cash Eauivalents
For the purposes of the statements of cash flows , the CDP considers all highly liquid debt instruments
purchased with a maturity of three months or less to be cash equivalents.
Property and Equipment .
Donated capital assets and property and equipment are recorded at cost. Expenditures for maintenance and
repairs'. are charged against operations . Donations of property and equipment are recorded at their estimated
fair market value. Such donations are reported as unrestricted support unless the donor has restricted the
donated asset to a specific purpose. Property and equipment are . depreciated using the straight-line method
over their estimated useful lives of three to ten years for equipment and five to thirty years for buildings and
V
mprovements.
In Kind Revenue and Expenses
CDP receives support in the form of donated goods and services . These goods and services are recorded at
their fair market values at the time received and are reflected in the financial statements as both support and
F .expense. Total in-kind contributions amounted to $45 , 572 and $74 , 047 for the year ended June 30, 2016 and
2015 , respectively.
Allowance for Bad Debts
Accounts and loan receivables are stated at unpaid balances, less an allowance for doubtful accounts , The
CDP provides for losses on accounts and loan receivable using the allowance method . The allowance is based
on experience and other circumstances. It is CDP's policy to charge off uncollectible accounts receivable when
management determines the receivable will not be collected .
8
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) .
Advertising
CDP follows the policy of charging the costs of advertising to expense as incurred. Advertising expense for the
.years ended June .30, 2016 and 2015 were $53 , 841 and $40, 774, respectively.
Combensated Absences .
Compensated absences have been accrued in the amount of $48 , 903 and $43 ,291 as of June 30, 2016 and
2015, respectively ,
NOTE B - CASH AND CASH EQUIVALENTS ,
Cash and cash equivalents at June 30 consist of the following ;
2016 2015
General operating fund $ 641 , 846 $ ;359 , 257
Money market funds 513 , 718 4590013
Total cash and cash equivalents $ 10155 , 564 $ 818 ,270
Included in total cash and cash , equivalents Is restricted cash for the Micro loan program at June 30 consists of
the following.
2016 2015
Money market funds $ 1051665 $ 121 , 865
NOTE C RESTRICTED DEPOSITS AND FUNDED RESERVES :
Replacement Reserve and Solar Reserve
In accordance with the terms of the MHP's regulatory agreement TCP funds and maintains a replacement
reserve fund . The replacement reserve balance was $ 33 , 164 and $21 , 981 as of June 30, 2016 and 2015
respectively, The Solar reserve balance was $22, 140 and $22 , 076. as of June 30 2016 and 2015 respectively.
ODeratina Reserve
In accordance with the terms of the MHP`s regulatory agreement, TCP will maintain a revenue fund account for
its operations , starting March 31 , 2011 , held by MHP . The revenue fund amount at June 30 , 2016 and 2015
was $ 14, 048 and $ 14 , 005, respectively.
Rental Property Reserve Accounts
CDP maintains funded reserves for various rental properties for future capital improvements . The reserves
account balances were $343 , 738 and $400,612 as of June 30 , 2016 and 2015 respectively.
9
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE C - RESTRICTED DEPOSITS AND FUNDED RESERVES (continued) ,
Escrow Reserve Accounts
Escrow reserve accounts were comprised of the following as of June 30 , 2016 and 201. 5 :
2016 2015
Mass Ground Fish Loan Fund $ 67 , 559 $ 1201256
Real estate escrow reserves - 743
MHP Escrow Reserve-TCP 9 , 027 41520
CDBG - Housing Rehabilitation Fund 40 , 020 105, 971
$ 116 , 606 $ 231 ,490
NOTE D - INVENTORIES :.
Inventories consist of three ( 3) fishing permits purchased for resale/lease . They are stated at the lower of cost
or market. The inventory balance was $600 , 000 and $600; 000+ as of June 30 , 2016 and 2015 , respectively.
NOTE E - LINE OF CREDIT ,
.CDP has entered into credit agreements with banks that allow the Corporation to borrow an amount not to
exceed $75, 000 . The credit line bears interest at prime plus 1 % . The loan is not secured by the assets of the
Corporation . The outstanding balance as of June 30 , 2016 and 2015 was $0 and $ 0, respectively.
CDP has entered into a seven (7) year credit agreement with Massachusetts Growth Capital Corporation
(MGCC) , a Massachusetts .quasi-public lending agency, that allows CDP to borrow an amount not to exceed
$250,000 for the purpose of providing capital to fund microloans to qualified businesses . The credit line bears
interest only of 3 .25% for three (3) years . Outstanding principal balance at the end of the three (3) year period Is
amortized over a four (4) year period with a maturity date of January 29 , 2021 . The outstanding balance as of
June 30 , 2016 and 2015 was $0 and $0, respectively. ?
NOTE F - RENTAL REHABILITATION AND HOUSING REHABILITATION LOAN PROGRAM :
The CDP has received pass-through grants from the Towns of Welifieet, Truro, Eastham and Dennis to
administer rehabilitation loans to eligible property owners or investors under the United States Department of
Housing and Urban Development Small Cities Program . Loans are now capped at $35 ,000 per unit, and for
loans 'issued through fiscal year 1999 , repayment of the outstanding balance is forgiven at the rate of 10% per
year provided that . the borrower is in compliance with loan provisions . Loans issued between fiscal year 2000
and . 2001 are deferred for ten years with no annual loan forgiveness while loans after fiscal year 2002 are
deferred for fifteen years with no annual loan forgiveness. The loans secured through a ten or fifteen year
property lien .
10
COMMUNITY DEVELOPMENT PARTNERSHIP
; AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE F - RENTAL REHABILITATION AND HOUSING REHABILITATION LOAN PROGRAM (continued) .
The CDP does not expect to collect on a substantial portion of these loans and any loans collected because of
default of grant terms and conditions would be remitted to the grant awarding authorities and do not represent
available resources to the CDP. Therefore, the issuance of these loans is considered anon-exchange
transaction and is recorded as . a grant/program expense in the financial statements and no receivable is
recorded . Grant revenue andexpense was $ 1 , 158 , 320 and $317, 933 for the years ended June 30 ; 2016 and
2016 respectively.
NOTE G - LOANS RECEIVABLE;
The CDP microioan fund was funded originally With a pass-through grant from the Town of Chatham to
administer a small business revolving loan program under the United States Department of Housing and Urban
Development Small Cities 'program, These micro-loans of up to $40 , 000 are issued to eligible Individuals to
, start up or expand small, private businesses in the Lower Cape Cod area . Principal and interest is repayable,
monthly at interest rates of prime plus 2%; and the loan maturities do not exceed a five year term. An allowance
for doubtful accounts is estimated each year based on specific identification of at risk loans. Uncollectible loans
are charged off when the business declares bankruptcy.
The CDP Ground Fish Revolving loan fund was funded by a $250, 000 federal pass through grant from the
Massachusetts Department of Marine . Fisheries , The Ground fish revolving loans of up to $50 , 000 are issued to
eligible individuals to encourage the continued profitability of small-scale ground fish fishing businesses' with
leasing `ground fish quota.
The CDP Shellfish Microioan .fund was capitalized by a $60, 000 contribution from Weilfleet SPAT. Loans are
made to eligible applicants that are Wellfleet based shellfish and aquaculture businesses .
In addition to the microioan , ground fish revolving loan and shellfish microloan funds , CDP has also issued
short-term business loans , using its own funds to fund various small businesses such as scallop leases to buy
quota licenses .
Loans receivables are carried at unpaid principal balances , less an allowance for loan losses and net deferred
loan fees . Management's periodic evaluation of the adequacy of the allowance is based on past loan loss
experience , specific impaired loans, adverse situations that may affect the borrower's abilltyto repay and current
economic conditions .
Loan receivables were comprised of the following at June 30 , 2016 and 2016 ,
2016 2015
Microloans $ 244 , 157 $ 203 , 015
Ground fish loans 184, 640 129 ,445
Shellfish microloans 12 , 709 -
Scallop lease to buy loans 11507 21942
443, 013 335, 402
Less allowance for uncollected accounts (31 ,623) (40 , 860)
Net Loan Receivable 411 03v 4i 2941o4z
11
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
:For the Years Ended June .30, 2016 and 2015
NOTE H - GRANT INCOME :
CDP receives a substantial amount of its support from the United States Department of Housing and Urban
Development on a pass-through basis under cost reimbursement , contracts , which are based on approved
budgets . Additional funding is received directly from the United States Department of Agriculture as rent
; subsidies and through fees charged by the Registry of Motor Vehicles associated with the issuance of Cape and
Islands license plates , net of related direct costs . Under Massachusetts General Law Chapter 90, Section 2 , the
CDP receives 20 % of the net fees of these license plates in amounts proportional to the . number of vehicles
registered in Barnstable County in order to promote tourism or economic development.
Support received under cost reimbursement contracts and grants is recorded as grant revenue and grant
receivable in unrestricted net assets when the related costs are incurred or billed . Cost reimbursement+ grant
revenue in excess of costs incurred are recorded as a liability "advance on grant contracts" , until costs are
incurred and the revenue earned . Support received under rent subsidies and the Cape and Islands license
plate program are recorded as grant revenue and grant receivables when the underlying transaction generating
. these grant amounts occur. Cape and Islands license plate revenue is allocated for the use among CDP
programs by the Board of Directors .
A summary of CDP's significant grant programs for the years ended June 30 2016 ad +2016 are as follows:
2016 2015
U . S . Department of Housing and Urban Development $ 11413 ,477 $ 444 , 810
U . S . Department of Agriculture 229,436 196 , 504
Mass Growth and Capital Corp. 83 , 125 96, 305
Towns and Barnstable County - 290, 854
Com EOHED 300000 -
Cape and Islands Plates 194 , 709 182 , 293
$ 11950 , 747 $ 11210 ,766
NOTE 1 - MORTGAGES AND NOTES PAYABLE : 2016 2015
Mortgages payable :
Note payable to US Department of Agriculture ( USDA) , 6 . 75%
interest and principal payment of $2 , 183 payable monthly, final
payment due September, 2032 , collateralized by property located at
324 Old Kings . Highway, Welifleet, MA. $ 973 , 116 $ 978 , 643
Note payable to Cape Cod Five Cent Savings Bank, 5 . 03% interest
and principal payment of $ 1 , 616 payable monthly, final payment due
October, 2025 , collateralized by property located at 836 Main Street,
Harwich , MA. 138 , 854 150, 944
12
COMMUNITY' DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2016 and 2015
NOTE 1 - MORTGAGES AND NOTES PAYABLE (continued ) . 2016 2015
Note payable to the Cape Cod Five Cents . Savings Bank, 9 . 00%0
Interest and principal payment of $961 payable monthly , final
payment due August, 2020, collateralized by property Located at Gull
Cottages , Eastham . 95 ,759 98 , 369
Note payable to Seamen's Bank, 5 .0% interest and principal payment
of $724 payable monthly, final payment due August, 2037 ,
collateralized by property located at 27 Nelson Ave . , Provincetown ;
MA. 112, 393 115 , 290
Note payable to TD Bank , 4 .22% interest and principal payment of
$2 , 401 payable monthly, final payment due May, . 2027 , collateralized
by property located at 17 & 19 Robert Lane and 836 Route 28,
Harwich , MA; 249 , 396 267 , 098
Note payable to Cape Cod Five Cents Savings Bank, 7,30% interest
and principal payment of $515 payable monthly , final payment due
December, 2Q25 , collateralized by property located at Unit 7 Main
Street Mercantile, Eastham , MA . 46 , 068 50 ,677
Note payable to TD Bank, 4. 0% interest and principal payment of
$500 payable monthly, final payment due March , 2033 , collateralized
by property located. at 1475 State Highway, Eastham , MA. 88, 738 92 ,3 .58
Note payable to Cape Cod Five Cents Savings Bank, 4 . 20% interest
and principal payment of $328 payable monthly, final payment due
July, 2033, collateralized by property located at Gull Cottages ,
Eastham , MA. 47 , 694 49 ; 550
Note payable to Santander Bank (formerly the Sovereign Bank) ,
7.42% interest and principal payment of .$374 payable monthly, final
payment due April, 2018 , collateralized by property located at 71 .
Canal Rd . , Orleans, MA . - $7, 946
Note payable to Town of Eastham , 5 . 00 % Interest and principal
payment of $2 , 315 payable semi-annually, final payment due
November, 2019, collateralized by property located at Gull Cottages ,
Eastham . 61615 81268
f
13
COMMUNITY DEVELOPMENT PARTNERSHIP
ARID THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2016 and 2015
NOTE I- MORTGAGES AND NOTES PAYABLE (continued) : 2016 2015
Note payable to the Massachusetts Housing Partnership (MHP) , 6 . 58
interest and principal payment .of $4 , 653 payable monthly, final
payment due August 25 , 2031 , collateralized by property located at
Thankful Chase Pathway, 686 , 662 696 , 942
Note payable to Seaman's Bank, 4. 0% interest and principal payment
of $219 payable monthly, final payment due August 13 , . 2020,
collateralized by property located at 3 Main Street Mercantile, Unit
18A. 34 , 947 -
Note payable to Seaman 's Bank, 4 : 0% interest and principal payment
of $244 payable monthly, final , payment due January 7 , 2021 ,
collateralized by property located at 3 MainStreet Mercantile, Unit 6 . 39 , 333 -
Total Mortgages Payable 24520 , 365 21546, 075
Note Payable :
Note payable to Cape Cod Commercial Hook Fishermen's
Association , Inc. . 3 . 0% interest and principal payment of $4 , 143
payable monthly, final payment due October, 2026 , collateralized by
1hree(3) Northeast f=ederal Fishery Permits . 441 , 318 477,210
Total Note Payable 441 , 318 477, 210
Total Mortgages and Note Payable 2 , 9611683 31023 , 285
Current portion 58 , 300 54 , 000
Long term portion $ 21903, 383 $ 21969 , 285
The following is a maturity schedule for the above mentioned mortgages and note payables:
June 30
2017 58, 300
2018 .63, 000
2019 681000
2020 73 , 000
2021 781500
Thereafter 2 ,6201883
$ 21961_ 1683
The CDP incurred interest costs totaling $ 186 ,410 and $ 172 ,426 for the years ended June 30 , 2016 and 2015,
respectively, all of which were charged to operations .
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC.
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE J '- GOVERNMENT MORTGAGES - DEFERRED
2016 2015
CDP - Deferred Financing provided by HUD
Note payable to the Dept. of Housing and Community Development
( DHCD) thru the Cape Cod Commission under the HOME !
Investments Partnership Program , 0. 00% interest and balloon
payment of $ 170 , 000 due March , 2037 , collateralized by property
located at 71 Canal Rd . , Orleans , MA . $ 170 , 000 $ 170 , 000
Note payable to the Barnstable County thru the Cape Cod
Commission under the HOME Investment Partnership Program ,
0. 00% interest and balloon payment of $ 120, 000 due March , 2037,
' collateralized by property located at 71 Canal Rd „ Orleans , MA , 120 , 000 120 ,000
Note payable to ' Barnstable County thru the Cape Cod Commission
. under the HOME Investments Partnership Program ; 0 . 00% interest
and balloon payment of $ 166 , 000 due August, 2040, collateralized by
property located at Gull Cottages , Eastham , 1667000 166 , 000
Note payable to Barnstable County thru the Cape Cod Commission
under the HOME Investment Partnership Program , 0 . 00 % interest
and balloon payment of $60 , 000 due June , 2041 , collateralized. by
property located at 27 .Nelson Ave. , Provincetown , MA . 60 , 000 601000
E
. Note payable to DHCD under the HOME Investments Partnership `
: Program , 0. 00 % interest and balloon payment of $ 550 ; 000 due: Aprli , .
. 2032 , collateralized by property located at 324 Old Kings Highway ,
Welifleet, MA , 550 , 000 550 , 000
E
Note payable to Barnstable County thru the Cape Cod Commission.
under the HOME Investments Partnership Program , 0 . 00% interest
and balloon payment of $175 , 000 due April , 2042, collateralized by
property located at 324 Old Kings Highway, Welifleet, MA. 175, 000 175 , 000
Note payable to Barnstable County thru the Cape Cod Commission
under the HOME Investments Partnership Program, 0. 00% Interest
and balloon payment of $ 160, 000 due July, 2044 , collateralized by
property located at 58 Harry Kemp Way, Provincetown ; MA. 1601000 160 , 000
15
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COMMI,INITY DEVELOPMENT PARTNERSHIP
ANIS THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, _2016 and 2015
E
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING (continued)
2016 2015
Note payable to the Barnstable County thru the , Cape Cod
Commission under the HOME ' Investments Partnership Program ,
0. 00% interest and balloon payment of $ 117,714 due October, 2055,
collateralized by property located at 836 Main Street, Harwich, MA, 117 ,714 117,714
Note payable to the Barnstable County thru the Cape Cod
Commission under the HOME Investments Partnership Program ,
0. 00% interest and balloon payment of $37, 286 due October, 2055,
collateralized by property located at 836 Main Street, Harwich, MA, 37 ,286 37 ,286
Note payable to DCHD thru the Town of Provincetown under the .
Housing Development Support Program CDBG , 0 .00% interest and
balloon payment of $ 176 , 373 due August, 2041 , collateralized by
property located at 27 Nelson Ave. , Provincetown ,. .MA . 176 , 373 116 , 373
Note payable to DCHD ihru the Town of Harwich under the Housing
Development Support Program CDBG , 0. 00 % Interest and balloon
. payment of $493, 000 due November, 2052, collateralized by property
located at 17 & 19 Robert Lane, Harwich , MA . 4931000 493,000
Note payable to DCHD thru the Town of Eastham under the Housing
Development Support Program CbBG , 0.00% Interest and balloon
payment of $248,400 due April, 2052, collateralized by property
located at 1475 State Highway; Eastham , MA . 248 ,400 248 ,400
Note payable to the Massachusetts Housing Fund Board under the
HOME Investment Partnership program , 0. 00% interest and balloon
.payment of $400 , 040 due October, 2055 , collateralized by property
located at 836 Main Street, Harwich, MA, 400, 000 400,000
Default Conditional Note payable to The Resource , Inc. thru Housing
. Rehab Loan Program, 0. 00% interest and payment In the amount of
$40 , 163 due June, 2020, collateralized by property located at 836
Main Street, Harwich , MA. (Forgiven at due date if loan conditions
met. } 40, 163 40 , 163
Total CDP Deferred Financing provided by HUD 21913 , 936 21913 , 936
16
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F
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2016 and 201. 5
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING (continued ) ,
2016 2015
TCP - Deferred Financing provided by HUD
Note payable to the Barnstable County thru the Cape Cod
• Commission under the HOME Investments Partnership Program ,
0. 00% Interest and balloon payment of $ 550 , 500 due March , 2041 ,
• collateralized by property located at Thankful Chase Pathway, 550 , 000 5500000
Note payable to the Barnstable County thru the Cape Cod
. Commission under the HOME Investments Partnership Program ,
0 . 00 % interest and balloon payment of $ 1. 50 , 000 due February 26,
2060 , collateralized by property located at Thankful Chase . Pathway, 150 , 000 150 , 000
Total TCP Deferred Financing provided by HUD 700 , 000 .700 , 000
Total Deferred Financing provided by HUD 31613 ,936 3 , 6131936
CDP Other governmental agencies deferred loans ,
Note payable ' to Massachusetts DHCD under the Housing
Stabilization Program , 0. 00 % interest and balloon payment of
$ 159, 750 due July, 2044,, collateralized by property located at 68
HarryKemp Way, Provincetown , MA, 159 , 760 150, 750
Note payable to the Massachusetts DHCD under the Affordable
Housing Trust, 0,00% interest and balloon payment . of $265 , 325 due
October, 2035 , collateralized by property , located at 836 Main Street;
Harwich , MA. 265 , 325 265 , 325
CDP Other governmental agencies deferred loans , 425 , 075 425 , 075
Total GDP deferred governmental Financing 4 , 039, 011 41039 , 011
TCP - Other governmental agencies deferred loans :
Thankful Chase Pathways, LLC secured financing from a
Massachusetts Corporation , Community Economic Development
Assistance Corporation (CEDAC) , for a maximum amount of
$ 350 , 000 due March 31 , 2041 . In the requirements of the Housing
Innovations Funds are met, CEDAC may extend the maturity date for
another ten ( 10) years period until March 31 , 2051 . Principal and
interest payments are not required before the maturity dates unless
the cash flow generated by the project exceeds 105% of the capital
expenditures of the project. This loan is collateralized by property
located at Thankful Chase Pathway, 350 , 000 350 , 000
17
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'MMMUNITY DEVELOPMENT PARTNERSHIP I
I
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years . Ended June 30, 2016 and 2015
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING ( continued ) .
2016 2015
Note payable to the Massachusetts Housing Partnership (MHP) at 0%
Interest, final payment due March 31 , 2031 , collateralized by . property
located at Thankful Chase Pathway. 400 , 000 400 ,000
Note payable to the Affordable Housing Trust, 0, 00 % Interest and
balloon payment of $600, 000 due March , 2041 , collateralized by
property located at Thankful Chase Pathway. 600 , 000 600 , 000
Total TCP - Other governmental agencies deferred loans . 11350, 000 1 , 350 ,000
Total Government Mortgages - Deferred Financing . $ 51389 , 011 $ 51389 , 011
The following is a maturity schedule for the above-mentioned government mortgage payables:
, June 30
2011 $ -
2018 -
2019 -
2020 -
2021 -
Thereafter 5,389 ,011
$ 5,389 ,01 ,1
The CDP incurred interest costs on the deferred governmental mortgages totaling $0. and .$ 0 for the Years
ended June 30 , 2016 and 2015, respectively.
The property located at 324 Old King's Highway in Wellfleet, Massachusetts consists of buildings ,
improvements and program equipment. The land is owned by the Wellfleet Housing Authority and leased to
CDSthrough November, 2061 at no cost.
NOTE K. - RELATED PARTY TRANSACTIONS :
Board members also include employees of Cape Cod Five Cents Savings Bank and Seamen's Bank, which
hold mortgage loans on property owned by CDP . These Board members do not have positions which affect the
lending of funds. to CDP.
18
t
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years .nded June 30, 2016 and 2015
s
NOTE L - ECONOMIC DEPENDENCY:
The CDP receives substantially all of its funding from federal, state , and county agencies. A loss in a funding
source would have an adverse material effect on the Corporation . A summary of the significant funding
categories and the governmental agencies follows;
2016 2015
United States Department of Agriculture - Direct Loans $ 973 , 116 $ 978 , 643
United States Department of Agriculture - Mortgage Interest Subsidy 45 , 762 45 ,762
United States Department of Agriculture - Rental Assistance '105 , 363 , 105 , 743
United States Department of Agriculture - Rural Enterprise Grant 781311 50 , 1)00
United States Department of HUD-HOME Direct Loans Permanent 21656 , 000 21656 , 000
United States Department of MUD-CDBG Direct Loans Permanent 957 , 936 9571936
United States Department of HUD-CDBG Housing Rehab Grants 1 ,413 , 477 4440 $ 10
United States Department of HUD-Section 8 Rental Assistance 175,634 157 ,609
United States Department of NOAA-NMFS Revolving Loan Fund 30 , 869 96 , 501
Massachusetts DHCD-Housing Stabilization Direct Loan Permanent 159 ;750 159 ,750
Massachusetts DHCD-Affordable Housing Trust Direct Loan Perm . 865 , 325 865 , 325
Massachusetts CEDAC-Affordable Housing Deferred Direct Loan 350, 000 350, 000
Massachusetts MHP-Affordable Housing Deferred Direct Loan 400, 000 400 , 000
$ 80211 , 643 $ 7, 268 , 079
NOTE M - LEASES :
CDP leased two office spaces; Unit 18A as a tenant at will and Unit 6 for $250 under non-cancelable operating
leases, which expired October 31 ; 2015. For the years ended June 30 , 2016 and 2015 total rent expense
amounted to $4 , 879 and $ 12 , 774 , respectively. CDP purchased unit 6 In January 2016 and unit 18A in August
:2015 .
NOTE N - SIGNIFICANT" CONCENTRATIONS OF CREDIT RISK.
Concentrations of credit risk with respect to trade receivables and note receivables are limited du6p to the large
number of 'customers comprising the CDP's customer base and their dispersion across differing industries and
geographic areas . The CDP maintains its cash balances in various financial institutions that are Insured by the
Federal Deposit Insurance Corporation ( FDIC ) up to $250 , 000 for each institution . The CDP's uninsured cash
balances totaled $0 and $0 at June 30 , 2016 and 2015, respectively.
NOTE 0 - CONTINGENT LIABILITIES ,
The CDP receives a substantialportion of Its revenues from various government contracts ; all of which , are
subject to audit by the . applicable government agency; Should an audit be conducted and result in any
disallowed costs , the CDP would be liable for such disallowed amounts. In management's opinion , liability, if
any, resulting from such an audit would not have a material adverse effect on the CDP's financial position,
Additionally, other contracts entered into with the agency contain compliance provisions which require the CDP
to .adhere to specified operating methods and procedures . In the event of noncompliance ; the Agency has the
discretion to demand Immediate repayment of the note payable described in Note I .
19
f
! `nm !Vli INITV [IFVF !_ rIPMFNT PARTNERSHIP i
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2016 and 2015,
E
E
NOTE P - PENSION PLAN :
CDP established a SIMPLE IRA Plan as an employeebenefit program as defined under Section 401 ( k) of the
U . S . Internal Revenue Code . Eligible employees are able to elect employee deferred amounts in accordance
with IRS guidelines . CDP matches employee elective deferrals up to a match of 3% of eligible employee
compensation . Pension expense was $ 13 ,435 and $ 10, 317 for the years ended June 30, 2.016 and 2015,
respectively.
3
20
I
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Financial Statements .
For the Years Ended June 30 , 2016 and 2015
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES :
June 30, 2016
CDP TCP TOTAL
Current Assets:
Cash Accounts $ 11074, 363 $ 81 , 201 $ 1 ; 1551564
Restricted Capital Reserve Cash Accounts 3430740 69 , 350 413 , 090
Escrow Accounts 1070579 .91027 7116, 606
Accounts Receivables 357, 078 - 357; 078
Rent Receivables 80266 21093 10 , 359
Prepaid expenses 49, 602 5 , 631 55, 233
Security deposits 3Q , 044 8 , 955 38, 999
Loans receivable , current, portion - - -
Total Current Assets 11970, 672 176, 257 2 , 146, 929
Fixed Assets ; .
Land 1 , 1291203 - 1 , 129, 203
Buildings and equipment 61287 , 115 31644 ,685 91931 , 800
Total Fixed Assets 71416 , 318 31644585 11 , 061 , 003
Accumulated depreciation (21398 , 189) (637, 820) (31036 , 009)
Net Fixed Assets 5 , 018 , 129 3 , 006 , 865 81024, 994
Other Assets :
Inventory: Fishing permits 600 , 000 - 6000000
Loans receivable, long term
(net of loan: losses of $24 , 831
and $40 , 860 respectively) 411 ;390 - 4110390
Total Other Assets 11011 , 390 - 11011 , 390
Total Assets $ 8 , 000 , 191 $ 31183 , 122 $ 11 , 183, 313
Current Liabilities:
Accounts payable $ 95 , 767 $ 10 ,952 $ 106 , 719
Accrued expenses 110 , 335 - 1101335
Advance on grant contracts 440 ,253 - 440 , 253
Deposits payable 30 ,677 8 , 949 39 ,626
Mortgage payable, current portion 58 , 300 - 58 , 300
Total Current Liabilities 735 , 332 19 , 901 755 ,233
21
1
f
rnllAnf1111►11TV E) =% I= l nDOAFRIT DA0TK11= PgjIID
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE Q -' CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued):
For the Year Ended June 30 , 2016
CDP TCP TOTAL
Long-Term Liabilities:
Mortgage Payable - Private and 11775,404 .6861662 21462, 066
Note Payable - Scallop Quota 441 ,318 - 441 , 3.18
Government Mortgages - ` 3 , 339, 011 21050 , 000 51389 , 011
Total Long-Term Liabilities 51555, 733 2 , 7361662 - 81292 ,395
Total Liabilities 6 , 291 , 065 21756 , 563 9, 047 ,628
Net Assets:
Unrestricted 11709 , 126 426 , 559 21135 ,685
TOTAL LIABILITIES AND
NET ASSETS $ 81000J91 $ 31183 , 122 $ 11 , 183, 313
Changes in unrestricted netassets
Grant income $ 11950, 747 $ - $ 11950 , 747
Program income 678 , 882 167 , 960 846 , 842
Contributions 495 , 630 - 495, 630
Special events 22, 674 - 22 , 674
Interest income 31367 184 31551
Other income 59, 070 226 59 , 296
Total Revenues and Support 31210 , 370 168 , 370 3 ;378, 740
Expenses :
Program 21779 , 764 277, 118 31056, 882
General and administrative 381390 - 381390
Fundraising 96 ,479 - 96,479 .
Total Expenses 21914 , 633 277 , 118 3 , 191 , 751
Decrease in Net Assets 295 , 737 ( 108 , 748) 186, 989
Net Assets, Beginning of Year 1 ,413 , 388 535 , 308 11948, 696
Net Assets, End of Year $ 11709, 125 $ 426 , 560 $ 21135 , 685
22
i
COMMUNITY DEVELOPMENT PARTNERSHIP
i
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Financial Statements
For the Years Ended June 30 , 2016 and 2015
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued):
June 30, 2015 i
CDP TCP TOTAL
Current Assets :
Cash Accounts $ 720,236 $ 98 , 034 $ 818 ,270`
Restricted Capital Reserve Cash Accounts 4001612 58 , 062 458 ,674
Escrow Accounts 226 , 970 41520 231 ,490
Accounts Receivables 4730550 - '4730550
Rent Receivables 30, 547 31392 33 ,939
Prepaid expenses 51 ,664 5 , 642 570306
Security deposits 30,214 717.73 37 ,987
Loans receivable, current portion 85 , 502 - 85 , 502
Total Current Assets 2 , 019, 295 177 , 423 2 ; 196 , 718
Fixed Assets :
Land 1; 1294203 - 1 , 1280203
Buildings and equipment 61168 , 426 3 , 644 , 685 9 , 813 , 111
Total Fixed Assets 71297 , 629 31644 , 685 101942 , 314
Accumulated depreciation (2 , 191 , 221 ) (516 , 331 ) (21707 , 552)
Net Fixed Assets 51106 ,408 301281354 80234 , 762
t
Other Assets;
Inventory: Fishing . permits 600, 000 - 60.010.00
Loans receivable , long term
(net of loan losses of $40, 860
and $24 , 831 respectively) 209 , 040 209 , 040
Total Other Assets 8091040 - 809, 040
Total Assets $ 71934 , 743 $ 31305 , 777 $ 11 ,240$ 20
Current Liabilities :
Accounts : payable $ 202 , 364 $ 141809 $ 217 , 173
Accrued : expenses 83 , 174 v83j174
Advance on grant contracts 543,261 - 543 , 261
Deposits payable 27 ; 201 8 ; 719 35, 920
Mortgage payable, current portion. 541000 64 , 000
Total Current Liabilities 910 , 000 23 , 528 933, 528
Long-Term Liabilities :
Mortgage Payable, .: Private and 1 , 795 , 134 696, 941 214921075.
Note Payable - Scallop Quota 477, 210 - 477 , 210
Government Mortgages -
Deferred Financing 3 , 339 , 011 21050 , 000 5 , 3891011
Total Lang-Term Liabilities 51611 , 355 2, 7461941 - 8 , 358, 296
Total Liabilities 61521 , 355 20770 , 469 91291 , 824
23
1
rommi wiTY nFVFI ,nPMFNT PA,RTNFRR IIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Financial Statements
For the Years Ended June 30, 2016 and 2015
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued) :
For the Year Ended June 30, 2015
CDP TCP TOTAL
Net Assets:
Unrestricted 1 ,413 , 388 535 , 308 11948 ,696
TOTAL LIABILITIES AND
NET ASSETS $ 71934 ,743 $ 31305 , 777 $ 11 ,240 , 520
Changes in unrestricted net assets
Grant income $ 11210, 766 $ - $ 11210 , 766
Program income 603 ,497 166, 012, 769 , 509
Contributions 392 , 514 - 392 , 514
Special events 18, 849 - 18, 849
Interest income 3 , 876 44 31920
Other income 14 ,433 11420 15, 853
Total Revenues and. Support 2 , 243, 935 167 ,476 2 ,4111411
Expenses :
Program 1 , 725 ,219 265 , 250 1 ,990 ,469
General and administrative 41 ,285 41 ,285
Fundraising 76 , 511 - 76 , 511
Total Expenses 11843 , 015 265 , 250 2 , 1081265
Decrease in Net Assets 400, 920 (97 , 774) 303 , 146
Net Assets , Beginning of Year 11012 ,468 633 , 082 11645 , 550
Net Assets , End of Year $ 11413 , 388 $ 635, 308 $ 11948 , 696
NOTE R - SUBSEQUENT EVENTS :
CDP has evaluated subsequent .events through November 30 , 2016, the date which the financial statements
were available to be issued, As of November 30 , 2016 there were no other subsequent events to report.
3
24
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Schedule of Expenditures of Federal Awards
For the Year Ended June 8.0 , 2016
Federal Federal
CFDA # Expenditures
Federal Grantor/Pass throuah Grantor/Program or Cluster title
Type A Programs .
U .S ,, Department Of Housing and Urban Development
HOME Investment Partnership program deferred non interest mortgage
mortgage loans 14, 239 $ 2, 656 ,000
CDBG " Small Cities Program , Thru Massachusetts DHCD Housing
Housing Development support program deferred
non interest mortgage loans 14 .228 957 ; 936
CDBG -Small Cities Program % Thru Massachusetts DHCD Thru
Towns of Dennis and Truro, Massachusetts housing
rehabilitation grants 14.228 1 ,413 ,477
U . S . Department Of Agriculture
Rural Rental Housing Mortgage Loan 10. 415 9730116
Rural Rental Housing Mortgage Loan interest subsidy 10:415 45,762
Rural Development Rental Assistance Payments 10427 105363
Type A Total 6, 1511654
Type B Programs :
U , S , Department Of Housing and Urban Development
Section 8 - Rental Assistance 14 . 855 175 , 635
U. S . Departmentof Agriculture
Rural Business Enterprise Grant 10. 769 78 , 311
U . S. , Department of Commerce
NOAH- Ground fish Business Loans 11 . 307 30 , 869
Type B Total 284 , 815
Total Federal assistance $ 6,436 ,469
Type A programs are determined to be the larger of $750 , 000 or three (3) percent of . total federal awards
expended if total awards exceed $750 , 000 ; There were no awards received that were passed through to
subrecelpients ,
The accompanying notes are an integral part of these financial statements
26
nnm"i INITY nFVF1 nPMFNT PARTNFRRHIP
AND THANKFUL CHASE PATHWAYS , LLC
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2016
NOTE A. - BASIS. OF PRESENTATION :
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of the Community Development Partnership and Thankful Chase Pathways, LLC under programs of the
federal government for the year ended June 30 , 2016 . The information in this Schedule is presented in
accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform .Administrative
Requirements, Cost Principles_ and Audit Requirements of Federal Awards (Uniform Guidance) . Because the
Schedule presents only a selected portion of the operations of Community Development Partnership and
Thankful Chase Pathways, LLC it is not intended to and does not present the financial position , changes in net
assets , or cash flows of Community Development Partnership and Thankful Chase Pathways , LLC .
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES :
Expenditures reported on the Schedule are reported on the accrual basis of accounting . Such expenditures are
recognized following the cost principles contained in the Uniform Guidance and OMB Circular A422 , Costs
Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
NOTE C - INDIRECT COST RATE :
.Community Development Partnership and Thankful Chase Pathways , LLC has elected not to use the 10% de
minimums indirect cost rate allowed under the Uniform Guidance . There are no cost reimbursement contracts,
NOTE D - FEDERAL AWARDS EXPENDED FOR LOAN OR LOAN GUARANTEE PROGRAMS :
Balances of loans and loan guarantee programs outstanding as of June 30 , 2016 for loans described in 2 CFR
section 200 . 502( b) are as follows :
Beginning New loans Outstanding
CFDA # Program name balance as of from 7/1/15- balance as of
mF 6/30/15 6/30115 6/30/16
14.239 HOME Investment Partnership program 21656t000 $ - 21656 , 000
deferred non interest mortgage loans
14 228 Small Cities Program deferred non 857, 936 - 957 , 936
Interest mortgage loans
10 .415 Rural Rental Housing Mortgage Loan 110241405 - 11018, 878
and interest subsidy
Total $ 4 ,638 . 341 $ $ 4 .632 . 814
The accompanying notes are an integral part of these financial statements
26
00 * 0 * SWE
,ct41 TOGO *
SANDERS , WALSH & EATON , LLP
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON INTERNAL CONTROL OV5R FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED .
iN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Community Development Partnership and Thankful Chase Pathways, LLC
Eastham, Massachusetts .
- We have audited , in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the consolidated financial statements of Community Development
Partnership and Thankful. Chase Pathways, LLC ( nonprofit organizations), which comprise the consolidated
statement of financial position as of June 30, 2016 , and the related consolidated statements of activities , and cash
flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon
dated November 30, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Community Development
Partnership and Thankful Chase Pathways, LLC 's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion
on the financial statements , but not for the purpose of expressing an opinion on the effectiveness of Community
Development Partnership and Thankful Chase Pathways, LLC's internal control . Accordingly, we da not express
an opinion on the effectiveness of Community Development Partnership and Thankful Chase Pathways, LLC 's
Internal control.
A deficiency in infernal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis , A material weakness is a deficiency, or a combination of deficiencies , in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
Will not be prevented , or detected and corrected on a timely basis . A significant deficiency is a deficiency, or a
combination of deficiencies , in Internal control that Is less severe than a material weakness, yet important enough
to merit attention by those charged with governance .
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section
and was not designed to Identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies . Given these limitations, during our audit we did not identify any deficiencies in Internal control that
we consider to be material weaknesses . However, material weaknesses may exist that have not been identified .
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Community Development . Partnership and Thankful
Chase Pathways, LLC 's consolidated financial statements are free from material misstatement; we performed tests
of its compliance with certain provisions of laws , regulations, contracts, and grant agreements, noncompliance with
which could have : a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion, The results of our tests disclosed no Instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards,
P.O. Box 1427 • Wast Chatham; MA02069 >Tel: 506,045,0031 + 600.287:1040 • Fax: 608.9 M267
P.O. Box F • Osterville, MA 02655 • Tel: 502W,0790 . 877A28.1040 * Fax: 50BA28.6150
k: t, K (rooatMoto 060 ® a & i � � � 14b +rAPO ® OmiA � 1► 61
Member Amwaan institute orcerefed Pubb'cAceountants �Messachusetfs Soci* OtCoiVriad Public Accountants
Community Development Partnership and Thankful Chase Pathways , LLC Page 2
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing , and not to provide an opinion on the effectiveness of the organization 's internal control or on
compliance . This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the organization's Internal control and compliance . Accordingly, this communication is not suitable
for any other purpose,
I \hr"j �
Ostervi le Massachusetts
November 30, 2016
f
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frord00 ! !
SANDERS , WALSH & EATON , LLP
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Directors
Community Development Partnership and Thankful Chase Pathways , LLC
Report on Compliance for Each Major Federal Program
We have audited Community Development Partnership and Thankful Chase Pathways, LLC's compliance with the
types of compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of Community Development Partnership and Thankful Chase Pathways , LLC's major federal
programs for the year ended June 30, 2016, Community Development Partnership and Thankful Chase Pathways ,
LLC's major federal programs are Identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs .
Management's Responsibility
Management is responsible for _ compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Community Development ' Partnership and
Thankful Chase Pathways , LLC's major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance In accordance with auditing standards
generally :accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, Issued by the Comptroller General of . the United States; and the audit
requirements of Title 2 U. S , Code of Federal Regulation, Part 200 , Uniform Administrative Requirements , Cost
Principles , and Audit Requirements of Federal Awards (Uniform Guidance). Those standards and the Uniform
Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred . An audit includes examining , on a test basis, evidence about Community Development
Partnership and Thankful Chase Pathways , LLC 's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances,
We believe that our audit provides a reasonable basis for our opinion on compliance for each mojor federal program.
However, our audit does not provide a legal determination on Community Development Partnership and Thankful
Chase Pathways, LLC's compliance.
Opinion of Each Major Federal Program
In our opinion , Community Development Partnership and Thankful Chase Pathways , LLC complied, in all material
respects, with the types of compliance requirements referred to above that could have a direct and material effect
on each of its major federal programs for the year ended June 30, 2016.
Report on Internal Control Over Compliance
Management of Community Development. Partnership and Thankful Chase Pathways , LLC is responsible for
establishing and maintaining effective internal control over compliance with the types of compliance requirements
referred to above, .in planning and performing our audit of compliance, we considered Community Development
Partnership and Thankful Chase Pathways, LLC's internal control over compliance with the types of requirements
that could have a direct and material effect on each major federal program to determine the auditing procedures i
that are appropriate In the circumstances for the purpose of expressing an opinion, on compliance for each major
federal program and, to test and report on Internal control over compliance in accordance with the . Unlform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance,
Accordingly, we do not express an opinion on the effectiveness of Community Development Partnership and
Thankful Chase Pathways, LLC's Internal control over compliance,
P.O. Box 1427 9 west Chatham, MA 02669 • Tel: 508,945.0091 + 800.2871040 # Fax. 500.9453267
P.O. Box r • Ostervilie, MA 02655 + Tel: 50298.0790 . 877.428.1040 • Fax: 508.428.6150
MemberAmericanInstitute ofeerdled PublicAccountants Massachusetts Society ofCertiriedPublic Accountants
3
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Community Development Partnership and Thankful Chase Pathways, LLC Page 2 j
A deficiency in internal control over compliance exists when the, design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis;
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies , in internal
control over compliance , such that there Is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented , or detected and corrected, on a timely basis. A
significant deficiency in intemal control over compliance is a deficiency, or a combination of deficiencies, in Internal
control over compliance with a type of compliance requirement of a federal program that Is less severe than a
material weakness . in internal control over -compliance, yet important enough to merit attention by those charged
with governance .
Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to Identify all deficiencies in the internal control over compliance that might be
material weaknesses or significant deficiencies, We did not identify any deficiencies In internal control over
:compliance that we consider tobe material weaknesses. However, material weaknesses may exist that have . not
been identified .
The purpose of this report on internal control over compliance Is solely to describe the scope of our testing of Internal
control over compliance and the results of that testing based .on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
4sterville , Massachusetts
November 30, 2016
30
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Statement of Findings and Questioned Costs
For the Year Ended June 30, 2016
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued Unmodified opinion
Internal control over financial reporting :
Material weakness(es) identified ? yes x no
Reportable conditions) identified not
considered to be material weaknesses? yes x none reported.
Noncompliance material to financial statements noted ? yes x no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? yes x no
Reportable condition (s) identified not
considered to be material weaknesses? :yes x none reported
Type of auditor's report issued on
compliance with major programs : Unmodified opinion
Any audit findings disclosed that are
required to be reported in accordance with
Uniform Guidance, Section 510(a) ? yes x no
Identification of major programs:
CFDA Number(s ) Name of Federal Program or Cluster
14 .228 Community Development Block Grants/Entitlement Grants - Small Cities
Program
10415 Rural Housing Rental Assistance and Mortgage
Dollar threshold used to distinguish
between Type A and Type B programs: $750 , 000
Auditee qualified for low-risk auditee: x yes no
SECTION II - FINANCIAL STATEMENT FINDINGS
No reportable findings or questioned costs were discovered that required reporting in accordance with
Government Auditing Standards,
31
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Statement of Findings and Questioned Costs
For the Year Ended June 30, 2016
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No reportable findings or questioned costs were discovered that required reporting in accordance with
Government Auditing Standards .
i
32