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community development partnership
November 30, 2018
Faythe Ellis
Vice Chair, Brewster Community Preservation Committee
Brewster Town Hall
2198 Main Street
Brewster, MA 026314898
RE : 2018 CPA PROJECT FUNDING REQUEST : Cape Housing Institute ,
Dear Ms . Ellis .
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 2018 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 3 ( 2019 ) 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 Years 1 and 2 . 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 and the 55 registered this year. These participants 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, twenty municipal officials and town
staff from Brewster participated in the 2017 and 2018 Cape Housing Institutes .
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,
Jay Coburn
Chief Executive Officer
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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2018 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
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 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 ( CCHP) 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 :
Strategy 1 : Cape Housing Institute, Quarterly Peer Groups and Advanced Training
For the past two years, CDP has offered an annual Cape Housing Institute ( CHI ) to educate at least 40
local elected and appointed officials from each town on the Lower Cape including the Town of Brewster.
In 2017 seventy (70 ) Lower Cape officials attended and in 2018 fifty-three (53 ) Lower Cape officials
attended . Nineteen ( 19 ) Brewster officials have attended the Housing Institute over the past two years .
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2018 CPA PROJECT FUNDING REQUEST : Cape Housing Institute
The training consists of a series of six workshops that equip officials with the knowledge and skills to
support affordable housing development in their towns . In 2019, each workshop will be held in a
centralized Lower Cape location to be accessible to participants from all eight Lower Cape towns . Our
collaboration with the Mass Housing Partnership ( MHP ) and the Cape Cod Commission to refine and
deliver the curriculum will continue .
The Cape Housing Institute covers a wide range of topics outlined in ATTACHMENT B . As a result of
receiving training, Harwich will be better positioned to implement changes in zoning by- laws that
support affordable housing development and 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 affordable housing and make optimal use of the town ' s newly
established Affordable Housing Trust .
Peer Group Meetings are held each quarter on the Lower Cape and Outer Cape . These 2 - hour meetings
are open to Town staff involved in housing issues ( i . e . Town managers, planners, housing specialists ),
elected and appointed officials and Housing Institute participants/graduates . The meetings provide an
opportunity for the exchange of ideas and the development of regional solutions to address the Lower
and Outer Cape' s affordable housing crisis .
The Housing Institute is designed to provide participants with a comprehensive foundation of
knowledge and skills to address affordable housing issues . However, many topics are covered only at a
basic level . To provide more in depth knowledge of issues such as affordable housing finance, zoning
reform and development of community housing, quarterly trainings are offered on in -depth topics for
elected and appointed officials and Housing Institute participants/graduates .
Strategy 2 : Cape Housing Advocacy Training
Lower Cape residents concerned about the lack of affordable housing are trained to develop leadership,
organizing and public speaking skills to effectively engage in public hearings and Town Meetings .
Participants 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 .
Strategy 3 : Public Education Campaign
Most municipal decisions affecting affordable housing development require a town meeting vote
making it critical to develop broad support for affordable housing . This campaign is designed to dispel
stereotypes about Low- Moderate Income residents of affordable housing developments .
This application seeks funding to support the 2019 Cape Housing Institute, Quarterly Peer Groups and
Advanced Trainings .
2 , For Historic Preservation oroiects
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
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2018 CPA PROJECT FUNDING REQUEST : Cape Housing Institute
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 .
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 CateRory 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
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2018 CPA PROJECT FUNDING REQUEST : Cape Housing Institute
• 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
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 looks at how Chapter 40B
can be used to increase a town ' s SHI . Session three provides an overview of the different types of
planning tools available to meet specific needs .
Session four focuses on understanding the complex financing required to develop affordable
housing as well as the phases of development as they pertain to the town . Participants learn about
funding sources and municipal subsidies that can support these processes and attract high quality
developments .
The Cape Housing Institute dedicates session five to pre -development aspects of a project including
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 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 .
In Session six we 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 .
4 . Communitv 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.
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 .
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2018 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
• 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 . Communitv Support
The CDP has collected feedback from municipal officials and staff who have participated 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 291h,
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 3 and beyond . The CDP and HAC are currently deliberating over the evaluation
results to develop Year 3 programming that directly responds to participant feedback .
6 . Timeline
July — October, 2019 Cape Housing Institute planning
Revise curriculum and recruit speakers
Secure training venues
Recruit participants
Plan, and schedule quarterly trainings
July, 2019 Quarterly Training
August, 2019 Peer Group Meetings
October — November, 2019 Cape Housing Institute
Hold six 2 . 5 hour sessions
November, 2019 Peer Group Meetings
January, 2020 Quarterly Training
February, 2020 Peer Group Meetings
April , 2020 Quarterly Training
May, 2020 Peer Group Meetings
Before the project start date, the CDP will have already evaluated the first two years 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 2019 . 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.
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2018 CPA PROJECT FUNDING REQUEST: Cape Housing Institute
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 .
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 salaries and
direct costs, and will directly benefit the Town of Brewster . Costs are based on actual costs from the
2018 Cape Housing Institute .
No commitments have been received for funding for the third year of the Cape Housing Institute .
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
Ferring Foundation , The CDP will commit funds from its Cape and Island license plate proceeds .
9 . Maintenance
Not applicable .
10. Site Control
Not applicable .
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2019 ( FY2020 ) Cape Housing Institute Budget
Income Year 3
Major Donors $ 10, 000
United Way of the Cape & Islands — application due 12 . 1 . 18 $ 15, 000
Cape & Islands Plate Fund $ 34, 900
Provincetown CPC Funds $ 71500
Truro CPC Funds $ 71500
Wellfleet CPC Funds $ 71500
Eastham CPC Funds $ 71500
Orleans CPC Funds $ 71500
Brewster CPC Funds $ 71500
Harwich CPC Funds $ 71500
Chatham CPC Funds $ 7, 500
Total $ 119,900
Expenses
Salaries & Benefits — Project Director @80% & Program Officer @ 10 % $ 79, 000
Project Implementation - 10 training sessions at $ 3 , 000/session to cover $ 30, 000
venue fees, speakers, travel , training materials, marketing & consultants
Overhead ( 10% ) $ 10, 900
Total $ 119. 900
2018 Cape Housing Institute Curriculum
The Cape Community Housing Partnership held its second annual Cape Housing Institute during the fall of
2018 from October 3 to November 7 . Once again , we offered identical Institutes, one in each sub - region as
follows :
Lower Cape Housing Institute
The Lower Cape Housing Institute served the towns of Orleans, Brewster, Harwich and Chatham and was held
I
n Harwich on Wednesdays from fpm - 3 : 30pm .
Outer Cape Housing Institute
The Outer Cape Housing Institute served the towns of Provincetown , Truro, Wellfleet and Eastham and was
held in Eastham on Wednesdays from 6pm - 8 : 30pm .
Session 1 : Cape Cod Housing Needs & Your Data Story
Session one will set the tone for the Institute by putting a face on our neighbors who live in or need affordable
housing by having community members share their housing stories . We will offer an overview on the " Housing
State of the Cape" focusing on the status of subsidized housing inventories ( SHI ) and major housing initiatives
for each Cape Cod town . The session will also include a state policy & legislative update . Participants will
engage in a " Housing Market Study Scavenger hunt" in small groups to understand the Cape Cod
Commission ' s data with a focus on understanding their own town ' s data story and how to communicate that
story through a narrative . Participants will leave understanding how critical the Cape' s need for affordable
housing is as well as the baseline information that informs this need .
Session 2 : Chapter 40B Overview
Session two will address the basics of Chapter 40B and how it can help increase a town ' s SHI . We will discuss
Cape examples of "friendly" and " unfriendly" 4013' s along with best practices to ease the process . Participants
will increase their understanding of the town ' s role in a comprehensive permit process and how towns can
partner with developers on these projects .
Session 3 ; Planning & Community Engagement
Session three will cover the various planning document options and benefits of each with a focus on models
that plan for residents at 80% - 120 % area median income . We will review the process of developing a Housing
Production Plan but also explore other models that go further by developing a housing supply strategy for
residents at all income levels . We will discuss community engagement and why is it critical to start as early as
the planning stage . Finally, we will offer best practices for community education and local strategies that have
been successful .
Session 4 : Financing
Session four will provide an overview of funding sources including understanding tax credits, reviewing a pro
forma for an actual development and using CPA funding . We will focus on understanding the economics of a
development from a developer' s perspective so that towns can be sure to select sites and issue RFPs that
maintain the economic feasibility of a project . Participants will learn who pays for housing development and
how developers profit . They will also have a better understanding of the cost of housing development and the
funding sources available to developers . Ultimately, participants will learn about how a town can encourage
good affordable housing development by decreasing the cost of development .
Session S : Development
Whereas last year we talked about the overall development timeline, this year we are focusing on the pre -
development aspects that the town has control over . We will explain the connection between zoning bylaws,
planning design and density . Participants will come to understand why site selection is a critical town decision
to support housing development . We will talk about housing types, including infill possibilities and housing
preference . Towns will learn how to align their goals with a developer' s goals through an RFP . We will also
cover how long it takes to develop a site and the town ' s role in the process .
Session 6 : Fair Housing & Advocacy
In Session six we will discuss the historical origins of the Fair Housing Act and the history of land use on Cape
Cod . Participants will gain an understanding of who has a right to housing and why this right needs to be
actively enforced . We will also discuss the pros and cons of using local preference . Due to significant feedback
from past participants, we have added Advocacy to the Institute . We will cover the common arguments
against multifamily housing ( NIMBY) and the best strategies and messages to respond to NIMBYism . Towns
will understand how they can be proactive about combatting NIMBYism in their town . At the end of this
session , participants will receive a Certificate of Completion .
Session 7 : Post- Institute Town Wrap - Up
Municipal officials and staff have commented on the lack of communication within their own town . In order to
address this issue, we will convene a group session inviting all of the boards and committees within each town
to share lessons learned from the Cape Housing Institute and facilitate communication within the town . The
content will be led by the participants but some topics may include : the benefits of having housing staff,
housing program successes and challenges on Cape Cod and in -depth examples of effective housing strategies .
These wrap - ups will provide closure for Institute participants, allow towns to development plans of action and
explore opportunities for ongoing communication within the town .
All Sessions will include :
• Cape Cod case studies to make the topics relevant to participants
• Resources and handouts shared electronically and in hard copy for those who request a binder
• Surveys to evaluate the impact of each session
After the Cape Housing Institute, we will hold our fall quarterly sub - regional Peer Group Meetings to continue
to facilitate sub - regional communication and support municipal officials . Additionally, we continue to work
with Mass Housing Partnership to offer Advanced Trainings on the Cape covering topics relevant to Cape
Housing Institute and Peer Group participants .
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL
INFORMATION
For the Years Ended June 30 , 2017 and 2016
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
t� Table of Contents
For the Years Ended June 30, 2017 and 2016
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 31
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SANDERS , WALSH & EATON , LLC
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,
2017 and 2016, 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 Financial 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 or error.
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
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 not for 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, 2017 and 2016, 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.
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 subjeM& t64t sMfti dUi r �dePA4h6#& urdkt �9 &aConsolidated financial
P.O. Box F • Osterville, A 655 • Tel: 508 28.0 9 • 677.428,11040 • Fax; 508.428.6150
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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 Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2017 , 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
T 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 , internal l over financial reporting and compliance ,
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Osterville , Massachusetts
December 14, 2017
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS, LLC
€ a Consolidated Statements of Financial Position
June 30 , 2017 and 2016
ASSETS
€� 2017 2016
Current Assets:
Cash Accounts $ 11193 , 120 $ 1 , 1551564
Restricted Capital Reserve Cash Accounts 388 , 385 4137090
Escrow Accounts 140 ,296 116, 606
Accounts Receivables 314 ,626 357,078
Rent Receivables 22 , 127 10 , 359
Prepaid expenses 65 , 644 55 ,233
Security deposits 41 , 983 38 , 999
Loans receivable, current portion 155 , 560 138,471
Total Current Assets 2 , 3211741 21285 , 400
Fixed Assets:
Land 11129,203 11129 , 203
Buildings and equipment 10 , 007 ,334 9, 931 , 801
Total Fixed Assets 110136 , 537 111061 , 004
Accumulated depreciation (3 , 376, 726) (31036 , 010)
Net Fixed Assets 70759 , 811 81024 , 994
Other Assets,
Inventory, Fishing permits 600, 000 600, 000
Loans receivable, long term (net of allowances for
loan losses of $ 18, 719 and $31 ,623 respectively) 242 ,754 272 , 919
Total Other Assets 842 , 754 872 , 919
Total Assets $ 10 , 924 , 306 $ 11 , 183 , 313
LIABILITIES AND NET ASSNS
Current Liabilities.
Accounts payable $ 118, 887 $ 106 , 719
Accrued expenses 115 ,413 110 , 335
Advance on grant contracts 355, 814 440 , 253
Deposits payable 41 ,279 39 , 626
Mortgage and Note payable, current portion 109, 008 58 , 300
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Total Current Liabilities 740 ,401 755 ,233
Long-Term Liabilities.
Mortgage Payable - Private and Government 21380 , 980 21462 , 066
- Note Payable - Scallop Quota Loan 366 ,212 441 , 318
Government Mortgages - Deferred Financing 51389, 011 51389, 011
Total Lang-Term Liabilities 81136 ,203 81292 , 395
Total Liabilities 8 , 8761604 9,047 ,628
Net Assets ,
Unrestricted 21047, 702 2 , 1351685
Total Net Assets 21047 , 702 2 , 135, 685
Total Liabilities and Net Assets $ 10,924, 306 $ 11 , 183 , 313
The accompanying notes are an integral part of these financial statements
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS ] LLC
T' Consolidated Statements of Activities
For the Years Ended June 30 , 2017 and 2016
2017 2016
Changes in unrestricted net assets
Grant Income $ 11947,270 $ 11950, 747
Program income 814„356 846, 842
Contributions, 325 , 382 495 , 630
Special events 353572 22 , 674
Interest income 41327 31551
Other income 24, 743 59,296
- Total Revenues and Support 31151 , 650 31378, 740
Expenses:
Program 31082,413 31056 , 881
General and administrative 33 ,380 38 , 390
Fundraising 1235840 96, 479
Total Expenses 3 , 239 ,633 31191 , 751
Increase in Net Assets (87, 983) 186, 989
Net Assets , Beginning of Year 21135, 685 1 ,948 ,696
Net Assets , End of Year $ 21047, 702 $ 21135,685
L. r
The accompanying notes are an integral part of these financial statements
4
R
1 _ COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Consolidated Statements of Functional Expenses
For the Year Ended June 30, 2017 and 2016
r� 2017
General and
Program Administrative Fund-Ralsing Total
Salaries, benefits, and payroll
taxes $ 752 ,421 $ 167 , 170 $ 66,676 $ 986, 267
Advertising 15, 775 20, 406 101591 461772
Depreciation and amortization 333 ,451 61453 438 340 , 342
�- Dues and memberships 41689 11037 567 61293
Insurance 60, 722 41327 772 65 , 821
Interest 161 , 849 1 ,886 96 163 ,831
Licenses, permits and fees 51420 11513 21685 91618
Maintenance and repairs 1391689 9, 372 11735 150,796
Office supplies and equipment 36, 013 71754 61872 50,639
Professional fees 63 , 476 31390 11 , 133 77, 999
Real estate tax 15, 685 - - 151685
Rent (Office expense) 71255 - 21000 91255
Special program 11220,229 188 869 11221 , 286
Training 11961 51576 1 ,436 81973
Travel 11 ,941 943 11161 14, 045
Utilities 67,005 43483 523 72 , 011
Subtotal 21897, 581 234 ,498 107, 554 31239, 633
Allocation of G&A costs 184, 832 (201 , 118) 16,286 -
Total $ 31082,413 $ 33, 380 $ 123,, 840 $ 3,239,633
2016
General and
Program Administrative Fund-Ra€sing Total
Salaries, benefits , and payroll
taxes $ 694,918 $ 149,295 $ 49, 898 $ 8941111
Advertising 18,677 23,660 11 , 504 53, 841
Depreciation and amortization 329,519 51678 278 335,475
Dues and memberships 41525 11106 397 61028
Insurance 631497 41324 726 68 , 547
Interest 185 , 251 11048 111 1861410
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 16 ,465 71620 93, 587
Real estate tax 15, 551 210 _ 15 , 761
Rent (Office expense) 151006 31015 498 18 ,519
Special program 1 , 1741085 - 720 1 , 1741805
Training 61580 21040 154 83774
Travel 9, 510 806 577 10 , 893
Utilities 75 , 581 31499 346 79,426
Subtotal 21878,223 229, 802 831726 31191 , 751
Allocation of G&A costs 178 , 658 (191 ,412) 12 , 754
Total $ 310561881 $ 38 , 390 $ 96, 479 $ 3 , 191 , 751
The accompanying notes are an Integral park of these financial statements
5
. J
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Consolidated Statements of Cash Flows
For the Years Ended June 30 , 2017 and 2016
'M
2017 2016
Cash Flows from Operating Activities :
Increase/(Decrease) in net assets $ (87, 983) $ 186 , 989
Adjustments to reconcile changes In net
assets provided by operating activities :
Depreciation 340, 716 328 ,458
(increase) decrease in :
Accounts receivable 42 ,452 116 ,472
Rents receivable ( 11 , 768) 23, 580
Loan receivables 13 , 076 (116 , 848)
Escrow accounts (23,690) 114 , 884
Security deposits (21984) ( 11012)
Prepaid expenses (10 ,411 ) 21073
increase (decrease) in :
Accounts payable 12, 168 ( 110 ,455)
Deposits payable 11653 31706
Accrued expenses 51078 27 , 161
Advance on grant contracts (84 , 439) ( 103 ,008)
Net Cash Provided by Operating Activities 193 ,868 4722000
Cash Flows from Investing Activities:
Net deposits to reserves 24 , 705 45 , 584
Purchase of property and equipment (75 , 533) ( 118,690)
Net Cash Used in investing Activities (50, 828) (73, 106)
Cash Flows from Financing Activities :
Proceeds from loans 74,280
Repayments of mortgage payable ( 105 ,484) ( 135, 880)
Net Cash Used in Financing Activities (105, 484) (61 , 600)
Net increase in Cash 37,556 337,294
s Cash , Beginning of Year ` 11155, 564 818, 270
Cash , End of Year $ 1 , 193 , 120 $ 1 , 1651564
Supplemental Cash Flow Information
Interest costs incurred $ 163 , 831 $ 186 ,410
Interest subsidy credited (45 , 762) (45, 762)
Interest Costs Paid $ 1181069 $ 140 , 648
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
� I
1
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2046
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ,
Oroanization
The Lower Cape Cod Community Development Corporation 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 community-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, 2017 and 2016. 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 entitles, 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,
BasisW Accountino
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 net assets.
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, 2017 and 2016.
L ,
7
i._,
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
r�
r NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) .
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
r 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 voulantary health and 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.
Pronertv and Equipment
14 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
improvements .
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 j
expense. Total in-kind contributions amounted to $50 , 216 and $45 , 572 for the year ended June 30 , 2017 and
2016, 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.
s
a
8
M i
F
,t
ti
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS, LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) .
Advertisina
CDP follows the policy of charging the costs of advertising to expense as Incurred , Advertising expense for the
years ended June 30 , 2017 and 2016 were $46 , 771 and $ 53 , 841 , respectively.
Comaensated Absences
Compensated absences have been accrued in the amount of $46,648 and $48 , 903 as of June 30, 2017 and
2016 , respectively,
NOTE B - CASH AND CASH EQUIVALENTS :
Cash and cash equivalents at June 30 consist of the following:
2017 2016
General operating fund $ 411 , 870 $ 641 , 846
Money market funds 781 , 250 513 , 718
Total cash and cash equivalents $ 1 , 1931120 $ 1 , 155 , 564
Included in total cash and cash equivalents is restricted cash for the Micro loan program at June 30 consists of
the following ;
2017 2016
Money market funds $ 169 ,402 $ 105,655
NOTE C » RESTRICTED DEPOSITS AND FUNDED RESERVES .
Reolacement 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 $39 , 641 and $33 , 164 as of June 30, 2017 and 2016,
respectively, The Solar reserve balance was $22, 311 and $22 , 140 as of June 30 2017 and 2016 , respectively,
Ooeratinci 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, 2017 and 2016
was $ 14 , 154 and $ 14, 048 , respectively,
Rental Property Reserve Accounts
CDP maintains funded reserves for various rental properties for future capital improvements. The reserves
account balances were $312, 278 and $343,738 as of June 30 , 2017 and 2016, respectively,
_1
9
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
NOTE C - RESTRICTED DEPOSITS AND FUNDED RESERVES (continued) .
Escrow Reserve Accounts
Escrow reserve accounts were comprised of the following as of June 30 , 2017 and 2016:
2017 2016
Mass Ground Fish loan Fund $ 119,428 $ 67, 559
MHP Escrow Reserve-TCP 81780 91027
CDBG - Housing Rehabilitation Fund 12, 088 40 , 020
$ 140,296 $ 116 , 606
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 , 2017 and 2016, 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 , 2017 and 2016 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 , 2017 and 2016 was $0 and $0 , respectively.
NOTE F - RENTAL REHABILITATION AND HOUSING REHABILITATION LOAN PROGRAM :
L. .
The CDP has received pass-through grants from the Towns of Wellfleet, 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
` l 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
L 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 ,
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10
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS, LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
NOTE 1~ - RENTAL REHABILITATION AND HOUSING REHABILITATION LOAN PROGRAM (continued) :
The CDP does not expect to collect on a substantial portion of these bans 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 a non-exchange
transaction and is recorded as a grant/program expense in the financial statements and no receivable Is
recorded. Grant revenue and expense was $ 1 , 196 ,709 and $ 1 , 158, 320 for the years ended June 30 , 2017 and
2016 respectively.
NOTE G w LOANS RECEIVABLE :
The CDP microloan fund was funded originally with a pass-through grant from the Town of Chatham to
administer a small business revolving ban 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 ban 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 Microloan fund was capitalized by a $60 , 000 contribution from Wellfieet SPAT, Loans are
made to eligible applicants that are Wellfleet based shellfish and aquaculture businesses .
In addition to the microloan , ground fish revolving loan and shellfish microloan funds , CDP has also issued
short4erm 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 ability to repay and current
economic conditions ,
Loan receivables were comprised of the following at June 30, 2017 and 2016 ,
2017 2016
Microloans $ 178 , 196 $ 244 , 157
Ground fish loans 164 ,405 184,640
Shellfish microloans 34 ,483 12 ,709
-' Scallop lease to buy loans 39 , 949 11507
417 ,033 443, 013
Less allowance for uncollected accounts (18, 719 (31 ,623)
Net Loan Receivable to syts , 64i 4011t ;3UU
11
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
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 2017 ad 2016 are as follows:
2017 2016
U . S . Department of Housing and Urban Development $ 11467 , 500 $ 11413,477
U . S . Department of Agriculture 235, 115 229 , 436
Mass Growth and Capital Corp . 41 , 905 83 , 125
Commonwealth Corp . 11500
Com EOHED 21 , 250 30 , 000
Cape and Islands Plates 180, 000 194, 709
$ 11947, 270 $ 11950, 747
NOTE I MORTGAGES AND NOTES PAYABLE : 2017 2016
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. $ 966 ,631 $ 973, 116
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. 126 , 244 138 , 854
12
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE [ - MORTGAGES AND NOTES PAYABLE (continued): 2017 2016
Note payable to the Cape Cod Five Cents' 1Savings "Bank; 9:00% ' "' " " " " " I "'- ' •
Interest and principal payment of $ 961 payable monthly, final
payment due August, 2020, collateralized by property located at Gull
Cottages , Eastham . 92 , 886 95 , 759
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 ,
109 , 315 112 , 393
MA.
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, 230 , 912 249 , 396
Note payable to Cape Cod Five Cents Savings Bank , 7. 30 % interest
and principal payment of $515 payable monthly, final payment due
December, 2025 , collateralized by property located at Unit 7 Main
Street Mercantile , Eastham , MA. 42 , 815 460858
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, 843958 88 , 738
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. 45, 753 47, 694
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 , 41961 61615
i
13
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
A Notes to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE iw MORTGAGES AND NOTES PAYABLE (continued) : 2017 2016
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, 675 ,687 686 ,662
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. 33,738 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 Main Street Mercantile, Unit 6 , 37, 972 391333
Total Mortgages Payable 21451 , 872 21520, 365
Note Payable,
Note payable to Cape God Commercial Hook Fishermen's
Association , Inc. . 3 . 0%o interest and principal payment of $4, 143
payable monthly, final payment due October, 2026, collateralized by
three(3) Northeast Federal Fishery Permits , 404, 328 441 , 318
Total Note Payable 404, 328 441 , 318
Total Mortgages and Note Payable 21856 ,200 21961 , 683
Current portion 109 , 008 58 , 300
Long term portion $ 21747, 192 $ 21903 , 383
The following is a maturity schedule for the above-mentloned mortgages and note payables:
June 30
2018 109, 008
2019 112 , 291
2020 1151676
2021 119, 163
2022 122, 755
Thereafter 2, 2771307
$ 21856, 200
The CDP incurred interest costs totaling $ 163, 831 and $ 186, 410 for the years ended June 30, 2017 and 2016 ,
respectively, all of which were charged to operations.
14
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COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notestto Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE J - GOVERNMENT MORTGAGES - DEFERRED
2017 2016
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 . $ 170T000 $ 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 , 166, 000 1661000
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 . 601000 60 , 000
Note payable to DHCD under the HOME investments Partnership
Program, 0 .00 % interest and balloon payment of $550,000 due April,
2032 , collateralized by property located at 324 Old Kings Highway,
Wellfleet, MA. 550 , 000 550 , 000
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, Wellfleet, 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 56 Harry Kemp Way, Provincetown , MA, 160 ,000 160, 000
16
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING (continued)
2017 2016
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 , 373 176 , 373
Note payable to DCHD thru 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 . 493, 000 493 , 000
Note payable to DCHD thru the Town of Eastham under the Housing
Development Support Program CDBG, 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, 000 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 407163
Total CDP Deferred Financing provided by HUD 21913, 936 21913, 936
3
16
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL, CHASE PATHWAYS , LLC
Nous to Consolidated Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING (continued):
2017 2016
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, 000 550, 000
Note payable to the Barnstable County thru the Cape Cod
Commission under the HOME Investments Partnership Program,
0.00% Interest and balloon payment of $ 150, 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 ,613 , 936
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 58
Harry Kemp Way, Provincetown , MA. 159, 750 159,750
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 CDP deferred governmental Financing 41039 , 011 4 ,0391011
TCP w 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
J
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
NOTE J - GOVERNMENT MORTGAGES - DEFERRED FINANCING ( continued )
2017 2016
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 : 1 , 350 ,000 1 , 350, 000
Total Government Mortgages = Deferred Financing $ 5 , 389, 011 $ 51389 , 011
The following is a maturity schedule for the above-mentioned government mortgage payables :
June 30
2018 -
2019 -
2020 40 , 163
2021 -
2022
Thereafter 51348 , 848
$ 51389 , 011
The CDP incurred interest costs on the deferred governmental mortgages totaling $ 0 and $0 for the years
ended June 30 , 2017 and 2016 , 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
CDP through 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 .
L .
18 '
I
^7 -
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
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 :
2017 2016
United States Department of Agriculture NOT Direct Loans $ 966,631 $ 973 , 116
United States Department of Agriculture Not Mortgage Interest Subsidy 45, 762 45,762
United States Department of Agriculture NOT Rental Assistance 97, 714 105 , 363
United States Department of Agriculture - Rural Enterprise Grant 91 ,639 78, 311
United States Department of HUD-HOME Direct Loans Permanent 21656, 000 21656, 000
United States Department of HUD-CDBG Direct Loans Permanent 957 , 936 957, 936
United States Department of HUD-CDBG Housing Rehab Grants 11467,500 11413x477
United States Department of HUD,Section 8 Rental Assistance 215, 193 175,634
United states Department of NOAA-NMFS Revolving Loan Fund - 30 , 869
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 MHP4ffordable Housing Deferred Direct Loan 400 , 000 400, 000
$ 81273 ,450 $ 8 ,211 ,543
NOTE M - LEASES :
During FY16, 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 , CDP purchased unit 6 in January 2016 and unit
18A in August 2015. For the years ended June 30, 2017 and 2016, total rent expense for leases amounted to $0
and $2, 381 , respectively,
NOTE N - SIGNIFICANT CONCENTRATIONS OF CREDIT RISK.
Y Concentrations of credit risk with respect to trade receivables and note receivables are limited due 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 has bank balances
at June 30 , 2017 in excess of $250 , 000 at both Seamens Bank and Cape Cod Five Savings Bank. The
balances over $250 , 000 are eoverd by the Depositors Insurance Fund (DIF) , in which Seemens Bank and CC5
Savings Bank have memberships. At June 30, 2017 and 2016, the CDP's uninsured cash balances totaled $0
and $0, respectively.
19
. 7
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYSy LLC
Notes to Consolidated Financial Statements
For the Years Ended June 30 , 2017 and 2016
NOTE 0 - CONTINGENT LIABILITIES :
The CDP receives a substantial portion 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 .
NOTE P = PENSION PLAN :
CDP established a SIMPLE IIIA Plan as an employee benefit 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 $ 14 , 677 and $ 13,435 for the years ended June 30 , 2017 and 2016 ,
respectively.
20
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
r Notes to Financial Statements
For the Years Ended June 30, 2017 and 2016
i
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES :
June 30 , 2017
CDP TCP TOTAL
Current Assets:
Cash Accounts $ 11103 ,218 $ 891902 $ 11193 , 120
Restricted Capital Reserve Cash Accounts 312 ,279 76 , 106 388, 385
Escrow Accounts 131 ,516 81780 1401296
Accounts Receivables 312, 138 2, 488 3141626
Rent Receivables 220127 - 22, 127
Prepaid expenses 59 ,796 5 , 848 65 ,644
Security deposits 30 , 806 11 , 177 41 , 983
Loans receivable , current portion 155 , 560 - 155, 560
Total Current Assets 21127,440 194 , 301 21321 ,741
Fixed Assets:
Land 1 , 1291203 - 11129 , 203
Buildings and equipment 6 , 3621649 31644,685 10, 007, 334
Total Fixed Assets 71491 , 852 31644, 685 11 , 136 , 537
Accumulated depreciation (21617 ,416) (759 ,310) (31376, 726 )
Net Fixed Assets 41874,436 21885 , 375 71759 , 811
Other Assets:
Inventory: Fishing permits 6001000 - 600, 000
Loans receivable , long term
( net of loan losses of $ 18 , 719
and $31 , 623 respectively) 242 ,754 - 242 , 754
Total Other Assets 8423754 - 842 , 754
Total Assets $ 71844 ,630 $ 31079 , 676 $ 10, 924, 306
Current Liabilities:
Accounts payable $ 107 , 660 $ 11 , 227 $ 118 , 887
Accrued expenses 115,413 - 115,413
Advance on grant contracts 355 , 814 - 3551814
Deposits payable 30 , 103 11 , 176 41 , 279
Mortgage payable, current
portion 97, 648 11 , 360 109 , 008
Total Current Liabilities 706, 638 33 , 763 740 ,401
J
21
COMMUNITY DEVELOPMENT PARTNERSHIP
S AND THANKFUL CHASE PATHWAYS, LLC
Notes to Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued ) ;
For the Year Ended June 30 , 2017
CDP TCP TOTAL
Long-Term Liabilities:
Mortgage Payable - Private and
Government $ 11716,653 $ 664, 327 $ 21380, 980
Note Payable - Scallop Quota 366 ,212 - 366 , 212
Government Mortgages 3,339 , 011 21050 , 000 51389, 011
Total Long-Term Llabllities 5 ,421 , 876 2 , 714 , 327 - 8 , 136, 203
Total Liabilities 61128, 514 2 , 7481090 81876 , 604
Net Assets,
Unrestricted 11716, 116 331 , 586 21047, 702
TOTAL LIABILITIES AND
NET ASSETS $ 71844,630 $ 31079, 676 $ 10 , 924, 306
Changes in unrestricted net assets
Grant income $ 11947,270 $ - $ 119.47,270
Program income 638, 574 1751782 814, 356
Contributions 324, 782 600 325, 382
Special events 35 , 572 - 35 , 572
Interest income 3,769 558 4 ,327
Other income 24 ,071 672 24 , 743
Total Revenues and Support 21974, 038 177, 612 31151 ,650
Expenses:
Program 21809, 828 272 ,585 31082, 413
General and adminlstrative 33 , 360 - 33, 380
Fundraising 123, 840 123 , 840
Total Expenses 2, 967, 048 272, 585 31239, 633
Decrease in Net Assets 61990 (94, 973) (87, 983)
Net Assets, Beginning of Year 11709, 126 426 , 559 21135, 685
Net Assets, End of Year $ 11716, 116 $ 331 ,586 $ 2 , 047, 702
s 22
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
-ry Notes to Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued) :
June 30 , 2016
CDP TCP TOTAL
Current Assets ,
Cash Accounts $ 11074, 363 $ 81 ,201 $ 11155, 564
Restricted Capital Reserve Cash Accounts 343, 740 69 ,350 413, 090
Escrow Accounts 107,579 9, 027 116,606
Accounts Receivables 357, 078 � 357, 078
Rent Receivables 81266 2 , 093 10 , 359
Prepaid expenses 49, 602 5 ,631 55 , 233
Security deposits 4044 81955 38, 999
Loans receivable, current portion - _
Total Current Assets 11970, 672 176,257 21146, 929
Fixed Assets:
Land 11129, 203 - 11129,203
Buildings and equipment 6,2871115 3 , 644,685 9, 931 , 800
Total Fixed Assets 71416, 318 31644,685 11 , 061 ,003
Accumulated depreciation (2, 3981189) (637 , 820) (31036, 009)
Net Fixed Assets 51018, 129 31006 , 865 81024, 994
Other Assets :
Inventory: Fishing permits 600,000 - 600,000
Loans receivable, long term
(net of loan losses of $40, 860
and $24, 831 respectively) 411 , 390 - 411 , 390
Total Other Assets 11011 , 390 - 13011 , 390
Total Assets $ 81000 , 191 $ 31183, 122 1 $ 11 , 1831313
Current Liabilities:
Accounts payable $ 95, 767 $ 10, 952 $ 106 , 719
Accrued expenses 110 , 335 - 110, 335
Advance on grant contracts 440, 253 - 440, 253
Deposits payable 30, 677 81949 39,626
Mortgage payable, current
portion 58, 300 58, 300
Total Current Liabilities 735, 332 19,901 755 , 233
Long-Term Liabilities :
Mortgage Payable - Private and 1 , 775,404 6860662 21462 , 066
Note Payable - Scallop Quota 441 , 316 - 441 , 318
Government Mortgages -
` ''
Deferred Financing 31339, 011 21050 , 000 51389, 011
Total Long-Term Liabilities 5, 555, 733 21736 , 662 - 81292, 395
Total Liabilities 61291 , 065 21756 , 563 91047,628
23
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Notes to Financial Statements
For the Years Ended June 30, 2017 and 2016
NOTE Q - CONSOLIDATING SCHEDULE OF FINANCIAL POSITION AND ACTIVITIES (continued) ,
For the Year Ended June 30 , 2016
CDP TCP TOTAL
Net Assets :
Unrestricted 11709 , 126 426 , 559 2, 135 , 685
TOTAL LIABILITIES AND
NET ASSETS $ 81000 , 199 $ 31183 , 122 $ 11 , 183 , 313
Changes in unrestricted net assets
Grant income $ 11950 , 747 $ - $ 1 , 9501747
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 30378 , 740
Expenses:
Program 21779, 764 277 , 118 31056, 882
General and administrative 38,390 - 38 , 390
Fundraising 96 ,479 - 96 ,479
Total Expenses 2 , 9141633 277 , 118 31191 , 751
Decrease in Net Assets 295, 737 ( 108 , 748) 186, 989
Net Assets , Beginning of Year 114130388 535 , 308 11948 , 696
Net Assets , End of Year $ 1 , 709, 125 $ 426 , 560 $ 21135, 685
NOTE R - SUBSEQUENT EVENTS:
CDP has evaluated subsequent events through November 30 , 2017 , the date which the financial statements
were available to be issued . As of November 30 , 2017 , there were no other subsequent events to report.
ii
24
i
I
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS , LLC
Schedule of Expenditures of Federal Awards
For the Year Ended June 30 , 2017
Federal Federal
CFDA # Expenditures
Federal Grantor/Pass through Grantor/Program or Cluster title
Type A Programs :
U . S . Department Of Housing and Urban Development
HOME Investment Partnership program deferred non interest
mortgage loans 14 .239 $ 21656 , 000
CDBG - Small Cities Program ; Thru Massachusetts DHCD Housing
Housing Development support program deferred
non interest mortgage loans 14. 228 9579936
CDBG - Small Cities Program ; Thru Massachusetts DHCD Thru
Towns of Dennis and Truro , Massachusetts housing
rehabilitation grants 14 . 228 11467, 500
U . S . Department Of Agriculture
Rural Rental Housing Mortgage Loan 10 .415 966 , 631
Rural Rental Housing Mortgage Loan interest subsidy 10 . 415 45 , 762
Rural Development Rental Assistance Payments 10 .427 97 , 714
Type A Total 611913543
Type B Programs:
U . S . Department Of Housing and Urban Development
Section 8 - Rental Assistance 14. 855 215 , 193
U. S . Department of Agriculture
Rural Business Enterprise Grant 10 . 769 41 , 569
U . S . Department of Agriculture
Farmers Market Promotion Program 11 . 307 50 , 070
Type B Total 306 , 832
Total Federal assistance $ 61498 , 375
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
subreceiplents.
}
The accompanying notes are an integral part of these financial statements
1 25
Y '
l
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS, LLC
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2017
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 , 2017 . 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 Federat 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 AW922 , 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 Guldance . 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, 2017 for loans described in 2 CFR
section 200 , 502 (b) are as follows :
Beginning New loans Outstanding
CFDA # Program name balance as of from 7/9/16- balance as of
6130/96 6/30197 6/30/97
14.239 HOME Investment Partnership program $ 21656, 000 $ - $ 21656 , 000
deferred non interest mortgage loans
14 . 228 Small Cities Program deferred non 957, 936 - 957 , 936
Interest mortgage loans
10 .415 Rural Rental Housing Mortgage Loan 1 , 018, 878 - 1 ,012, 393
and Interest subsidy
Total $ 4, 632 .814 $ - $ 4 .626 . 329
The accompanying notes are an integral part of these financial statements
26
?E14 838 : : 00 : 00 : 00
" SANDERS , WALSH & EATON , LLC
CERTIFIED PUBLIC ACCOUNTANTS
-A
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
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, 2017, 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 December 14 , 2017.
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 do 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 • West Chatham, MA 02869 • Tel: 508.945.0031 . 800.287.1040 s Fax: 508,945,0267
'— P.O. Box F • Osterville, MA 02655 * Tel: 5081Y8,0790 . 877.428,1040 • Fax; 508,428.6150
t;; ; ; c ; C1f3C) � 4) ra4) AC� C3p � ® ® ® � ® ® ® ® 99990 ® 9A! ® 9999999999999l99ii999999 •
Member American Institute ofCartifedPublic Accountants Massachusetts Society of Certified Public Accountants
r
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 GovernmentAuditing Standards
in considering the organization 's internal control and compliance . Accordingly, this communication is not suitable
for any other purpose,
Osterville, Massachusetts
December 14 , 2017
28
i y
l-,
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 , 2017 , 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 aq 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 major 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 , 2017.
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
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 Uniform
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.
29
_ ry
Community Development Partnership and Thankful Chase Pathways , LLC Page 2
In P 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 internal 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 to be material weaknesses. However, material weaknesses may exist that have not
been identified .
The purpose of this reporton 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.
Osterviile , Massachusetts
December 14, 2017
30
COMMUNITY DEVELOPMENT PARTNERSHIP
AND THANKFUL CHASE PATHWAYS, LLC
,r- Statement of Findings and Questioned Costs
For the Year Ended June 30, 2017
r •
r
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued Unmodified opinion
Intemai control over financial reporting :
Material weakness(es) identified ? yes x no
Reportable condition (s)' 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
2 CFR 2000 516 (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
10A15 Rural Housing Rental Assistance and Mortgage
Dollar threshold used to distinguish
between Type A and Type B programs : $750 , 000
Auditee qualified for low�rlsk auditee ; x yes no
SECTION II - FINANCIAL STATEMENT FINDINGS
No reportable findings related to the Financial Statement Audit in accordance with Government Auditing
Standards ,
SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None
31
Ewe.*,
o� °« �9 Town of Brewster
_ +�+. t 2198 Main Street
C Brewster MA 02631 - 1898 Office oa
O � Select Board
r 40 Phone ; (508 ) 896-3701 Town Administrator
Fax ; ( 508 ) 896-8089
Xkm� p��� u um��a�\\�o\`
IMIIIN
January 8 , 2019
Faythe Ellis, Vice Chair
Brewster Community Preservation Committee
Brewster Town Hall
2198 Main Street
Brewster, MA 02631
Re ; CPC Application for FY20
Dear Ms , Ellis ;
I am writing in support of the Community Development Partnership ' s FY20 Community Preservation
Act application for Year 3 of the Cape Housing Institute (CHI) , I attended both the first and second
year CHI and found the training to be of great value in my role as Assistant Town Administrator of
building and overseeing the Housing Program in Brewster , The knowledge that I obtained has allowed
me to make more informed decisions regarding affordable housing in Brewster ,
The affordable housing challenges of the lower Cape, including Brewster, are well documented , The
third CHI will allow the Town to continue meeting the housing needs of its residents by providing its
officials with the knowledge and skills required to create more year-round housing appropriate to
Brewster. Additionally, the CHI has provided a platform for towns to collaborate , discuss common
issues and challenges and share best practices as well present a united front in our shared housing
goals .
I urge the CPC to provide the funds requested so that our Cape town officials, including those from
Brewster, can continue their work developing critically needed housing for working families, elders
and all in need of safe and affordable housing, I intend to attend the third CHI as well as the ongoing
P
mportant trainings that they offer . Thank you for your consideration of the CDP ' s application.
�Sincerely,
Donna J, Kalinick
Assistant Town Administrator
Town of Brewster
dkalimck@,brewster-ma , aov
508496-3701 X1130
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Town Of Brewster
R 2198 Main Street
3 V A D p
s o Brewster, Massachusetts 02631 - 1898
( 508) 896-3701 x1169
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January 8 , 2019
Faythe Ellis, Vice Chair
Brewster Community Preservation Committee
Brewster Town Hall
2198 Main Street
Brewster, MA 02631
Re : CPC Application for FY20
Dear Ms , Ellis :
I am writing in support of the Community Development Partnership ' s FY20 Community Preservation Act
application for Year 3 of the Cape Housing Institute (CHI) . I attended both the first and second year CHI
and found the training to be very helpful in my work as the Brewster Housing Coordinator. Upon attending
the statewide Housing Institute run by Mass Housing Partnership, I further realized the excellent quality
and content of information I learned at the CHI.
The affordable housing challenges of the Lower Cape, including Brewster, are well documented . The third
CHI will allow the Town to continue meeting the housing needs of its residents by providing its officials
with the knowledge and skills required to create more year-round housing appropriate to Brewster . We have
had numerous Brewster officials and committee members attend the CHI and the associated Lower Cape
Housing Peer Group meetings .
I encourage the CPC to provide the funds requested so that our Cape town officials, including those from
Brewster, can continue their work developing critically needed housing for working families, elders and all
in need of safe and affordable housing. Thank you for your consideration of the CDP ' s application .
Sincerely,
1�
1 Scallse
Brewster Housing Coordinator
iscalise a ,brewster-ma . >;ov
508496 -3701 X1169
Community Housing Partnership Initiative
Revenue:
Restricted Giving 25 ,000 4
Unrestricted Major Giving -
Unrestricted Annual Appeals/Donations
Special Events -
Sponsorships -
Program Income/Rent
Energy Credits -
Towns/County - CPC Funds 60,000 I *4
CDBG (Through the Towns) li
C&IP 347900
Fees (Doc Proc, Hsd, Meetings) -
Interest/1nKm' d/Other -
Total Revenue 119,900
Expenses :
Payroll:
Chief Executive Officer 11858
Chief Development & Communications Officer 31650
Communications Coordinator M !I
Chief Financial & Operations Officer 1 ,433
Fiscal Manager
Admin & Office Coordinator -
Chief Program Officer I 16,068
Director of Business & Credit Programs
Director of Housing Advocacy 40,207 80
Rehab Specialist -
Director of Housing Rehab Programs
Housing.Rehab Program Coordinator
Director of Property Management -
Maintenance Tech I-Steve -
Maintenance Tech Il -
Property Management Coordinator -
SALARY � 63,216
Fringe I 155804
Total Personnel I 79,020
Operations
Payroll Service 181
Advertising 98
Audit 635
Depreciation
Equipment I 900
Insurance 11406
Interest 375
Legal
License/fees
Maintenance Comp & Equip 1 ,536
Maintenance Office 1 , 111
Contract Maint Prop
f Condo Fees Prop
Grounds Maint Prop -
Snow Maint Prop
Management Fee -
Marketing 10,083 Ads -
Memberships
Postage 333
Printing 3 ,795 materials -
Prof services 13 ,600 speakers,
Publications
Rent 1 ,500 venues for trainings
Reproduction
Rubbish Removal
Supplies Maintenance
Supplies Office 3 ,332 11, 200 supplies, 1 , 100 food
RE Taxes
Communications
f Training
Travel 1 ,99'7Hotel ( 1,400) and mileage ( 597 )
Utilities
Special Expenses
Subtotal Expenses 1190900
.Allocated indirect
Total Expenses 119,900
Subtotal - Surplus(Deficit) (0)
Replacement Reserve Deposits -
Replacement Resetwe Release
Surplus/Deficit
Ferring Fdn 10, 000
United Way 15, 000
25, 000
- Brewster 71500
Chatham 71500
- Eastham 7, 500
- Harwich 71500
- Orleans 71500
- Provincetown 7, 500
- Wei Ifleet 71500
- Truro 71500
60, 000