HomeMy WebLinkAboutBayside Housing - Woodley Place $194,556 Received 122122
2022-23 Jefferson County 1590 Funding Application Narrative
Bayside Housing & Services (BHS)
PROJECT and PROGRAM DESCRIPTION
Name of Project: Woodley Place Building Operations, Maintenance & Supportive Services
Amount Requested: $194,556.00
Brief Description of the Project:
The requested funding will support some of the ongoing costs not covered by our previous 148
funding request for building operations and maintenance, as well as expenses related to our
program participant services for Transitional Supportive Housing at BHS’s “Woodley Place”
facility, formerly the Port Hadlock Motel. Woodley Place was acquired on December 12, 2022
and will initially open with 17 units of Transitional Supportive Housing, including 16
Efficiency/Studio apartments and 1 4-bedroom manufactured home. These will add much needed
homes to allow between 17 and 34 unhoused on unstably housed people in the 0-50% AMI
bracket to immediately gain shelter and start receiving program services. As additional
renovation funding becomes available, which BHS actively seeks, Woodley Place will also serve
as the first site for our upcoming Permanent Supportive Housing program.
Specify the Program goals and expected outcomes. Specify the methods by which the
Project or Program will be measured and assessed:
The immediate project goal is to supply more emergency housing to individuals and families
with children in Jefferson County who are unhoused or living in unsafe or unsuitable situations.
This multi-phase project will increase our service capacity to quickly move people from the
perils of homelessness into safe and secure living quarters. This activity is encapsulated by the
term “bed nights” which measure the running count of each day of safety and personal progress
accumulated by all BHS program participants and recalibrated monthly by case management
staff. This fundamental shift forms the critical foundation for program participants to begin the
process of life stabilization and restoration.
The long-term goal of BHS’s transitional supportive housing program is to empower participants
to personally achieve greater life stability, to reenter the social and professional mainstream as
desired, and to secure their own permanent housing. A successful outcome for that process is
measured by the “placements into permanent housing” count achieved by BHS program
participants and compiled by case management staff. In 2021, BHS successfully moved 28
transitional supportive housing program participants into permanent housing. Despite the lack of
permanent housing options in Jefferson County, we have already placed 36 program participants
in 2022 to date – which exceeds our anticipated year-end goal of 30 successful placements. Once
we’re able to convert some or all of the Woodley Place units to Permanent Supportive Housing,
we will also be able to contribute significantly to the County’s affordable supportive housing
stock.
Specify the number of units of housing to be created or number of individuals who will be
served by the Project or Program:
Woodley Place will provide 17 new units of housing for the BHS program with capability of
housing up to 34 individuals at any one time. Considering unit turnover and based on our service
averages, up to twice that number (68) men, women and children could be sheltered at Woodley
Place in the first year. With additional funding that we are currently seeking, Woodley Place also
has significant potential for expansion to provide several additional units in future phases of the
project.
Specify the eligible use under 1590 for which the Project or Program qualifies:
1C. Funding the operations and maintenance costs of new units of affordable housing and
facilities where housing-related programs are provided...
2. The remaining proceeds shall be used for the operation, delivery and evaluation of…housing-
related services.
4. For purposes of this provision, “eligible households” means persons within any of the
following population groups whose income is at or below sixty percent of median income:
Persons with mental illness
Veterans
Senior citizens
Homeless (or at-risk of being homeless) families with children
Unaccompanied homeless youth or young adults
Persons with disabilities
Domestic violence survivors
A. CAPACITY - Experience Providing similar Program or Developing Similar
Projects (15 Points)
Provide a brief description of the recent (within the last 5 years), relevant (same or similar
Project or Program), and successful (goals and objectives met) experiences of the
organization. If the organization has previously received funds from the 1590 Fund
provide a brief update. (LIMIT 300 WORDS)
Bayside Housing & Services celebrated 6 years of service in April 2022. Over that time we’ve
provided over 62,008 bed nights of safety to 241 program participants. Of past program
participants, over 72% have been placed into stable long-term housing. As of December 9, 2022
there were 11 children ranging in age from 0 year to 17 years in age; 5 Veterans, 2 Transition-
Age Youth (ages 18-20), 17 Seniors (55+), and 18 people fleeing domestic violence situations. In
the last year we began taking an increasing number of referrals from a local Domestic Violence
Shelter to help house that population.
Over almost 6-1/2 years of operation, BHS has provided transitional housing and wraparound
case management services that have enabled 124 program participants to reach the overall goal
of establishing new lives through successful placement in permanent housing. Achieving this
level of housing security will be critical to productive futures for those individuals and families.
Accordingly, the Permanent Supportive Housing service model that will be initiated at Woodley
Place will provide ongoing yet voluntary case management services to assist tenants as they learn
to navigate and problem-solve the responsibilities of tenancy, strengthening their prospects for
sustaining that tenancy.
On the organizational side, BHS has added staff to appropriately align the case manager/client
ratio, to diversify potential funding sourced by the development staff, and to more closely
manage BHS operations as they evolve to meet program participants’ needs.
If this is a collaborative Project or Program, identify the other partners involved, their
role, and your role. If you are partnering with another agency/agencies, attach their letter
of commitment and any MOUs.
Though BHS collaborates with many local social service organizations whenever necessary to
meet program participant needs, this phase of the Woodley Place endeavor will be handled solely
by BHS. This funding will directly support the BHS mission and its program participants.
Financial Capacity – See attached
2022 Board approved Budget
2022 BHS Annual Impact Report
2020-2021 Audited Financials
B. ALIGNMENT – Aligns with the 5-year Housing Plan and includes community
outreach (15 Points) (LIMIT 400 words)
Describe how the project aligns with Jefferson County’s Homeless Crisis and Housing
Response and 5 Year Plan
Objectives 1 & 2: BHS identifies program participants through a referral partnership with local
social service organizations. We also post our application online to facilitate self-referral. Upon
receipt, all applications are entered into our database to be followed by a detailed interview
process. Focused interviews and questionnaires are completed to determine needs. Applicants are
then rated on a vulnerability index to further prioritize those most in need of immediate services.
Objective 3: BHS has increased its Transitional Supportive Housing unit count at Bayside
Tower from 6 in 2016 to 20-23. Our two Tiny Shelter Villages in Jefferson County offer a
combined 25 units (including site monitor housing), allowing BHS to double its service capacity
in 2021-2022. This was our response to the growing need in the county, evidenced by rising
waitlist numbers. A lack of affordable permanent housing options in the area forces program
participants to stay in transitional housing much longer than optimal. That fact substantiates the
need for our transitional housing services and has guided BHS’s decision to begin a Permanent
Supportive Housing (PSH) program at Woodley Place. Our wraparound case management
services are available to all 50+ participants, allowing them to connect with services, improve
mental and physical health, and strengthen educational and economic prospects. Similar,
however voluntary, case management support will be available for residents in PSH at Woodley
Place. These services will be specifically focused on education and skill-building to ensure
sustainable tenancy. Recent studies (WA Health Care Authority, 2020) indicate that supportive
housing, particularly the Foundational Community Support model we anticipate using, lead to
significant increases in transitions out of homelessness.
Objective 5: BHS designs and runs trauma-informed and client-centered programs to address the
circumstances and background of each program participant. This goal guides our case
management training and is based not merely on a policy of non-discrimination and
inclusiveness based on race, gender or ethnicity, but extends to developing culturally-sensitive
services for our diverse pool of program participants. Past program participants have ranged in
age (0-88), including BIPOC community members and those identifying as LGBTQ+. All are
welcome at Bayside.
Objective 6: BHS participates in the annual PIT Count and provides information to the
Homeless Management Information System. Accurate up-to-date data informs our internal
policies and enables cross-connection to ally agencies and organizations working to end
homelessness. BHS staff and board members are active in community groups working toward
housing improvements and frequently participate in advocacy efforts.
C. APPROACH – Completeness of Proposal and Readiness (20 points) (LIMIT 400
WORDS)
Is the project or program ready to use the funding now or are there actions to be taken
before the Project or Program can begin? If so, what are those actions?
Purchase of the Hadlock Motel has been finalized. It is a turn-key project for transitional
housing. Now that we have possession of the property, we have begun assessing the process and
timeline for transitioning current program participants from Bayside Tower to Woodley Place.
Case Managers will also immediately begin to evaluate prospective Woodley Place participants
from the current BHS waitlist. A small amount of rehabilitation is required to prepare the
existing units to become suitable for use in our new Permanent Supportive Housing program.
That work will include installation of modular kitchenette units and some cabinetry. This work
will begin as soon as additional funding is secured.
Will the requested funds fully fund the Project or Program. If not, how does the
organization intend to fill the gap?
The requested funds will not cover the entire Woodley Place project. For the property
acquisition, the majority of the purchase cost is covered by a $2,000,000 Local Community
Project legislative appropriation (minus $60,000 in fees) sponsored by Rep. Steve Tharinger,
which was awarded to BHS in March 2022. Those funds were administered by the Housing Trust
Fund and we successfully closed on the property on 12/9/22. Acquisition gap (fees plus closing
costs) and rehabilitation expenses are being sought through an upcoming Rapid Capital
Acquisition grant from WA Dept. of Commerce. We are currently preparing an application for
those funds, due January 12, 2023. Alternative sources are also being considered, including a
series of small foundation grant applications and/or donor requests. A mixture of public grants -
including an active request for 148 funds to cover building operations and maintenance – along
with private grants and donor funding will also be used to cover the balance of operating and
service costs anticipated in 2023. As an example of the donor support that BHS has already
secured, an anonymous donor has given $100,000 designated for the Woodley Place purchase
costs, and an additional $250,000 for BHS General Operations.
Could the Project or Program be scaled (include the per unit cost of the Project or
Program)?
The per unit cost of operations at Woodley Place is approximately $15,153 per year.
The project could be scaled by changing the conversion pacing from Transitional to Permanent
Supportive Housing. However, we don’t anticipate any need to scale as the program already
exists in our current operations.
Have additional funds been requested or will be requested? Identify the sources for those
requests and the status of the requests.
As mentioned, the acquisition is covered by an LCP appropriation and an anonymous gift to
cover remaining closing costs. BHS has submitted an application for 148 funds to cover building
maintenance and operations. And 1590 funds are requested to cover the balance of that building
operations and maintenance, as to contribute towards the program service costs associated with
the supportive housing program at Woodley Place.
As described above, additional funds are also being sought to complete the next phase, including
the rehabilitation expenses described herein.
D. IMPACT OF FUNDS - Leverage of Other Funds and Number of Persons Assisted
(25Points) (LIMIT 400 WORDS)
Are you using any matching funds? If yes, what is the source?
We are not using any funds that qualify as “matching”, although we do have an anonymous
donor who has contributed $250,000 toward our General Operating Fund, with the understanding
that we will work to match that with additional donor contributions in 2023.
Are the requested funds to be used as a match for this Program or Project? If yes, provide
a description of the Project or Program to be matched and how it relates to the goals and
priorities of the Five-Year Plan. Also, provide a budget for the entire Project or Program
including funding from all sources and identify what portion of the Project or Program
these funds will support.
These funds are not intended to be used as a match.
Specify the number of housing units that will be created or the number of individuals who
will be assisted with this Project or Program in the first year.
Woodley Place will provide 17 new units of housing for the BHS program with capability of
housing up to 34 individuals at any one time. Considering unit turnover and based on our service
averages, up to twice that number (68) men, women and children could be sheltered at Woodley
Place in the first year.
Discuss how this Project or Program will be sustained after these funds are exhausted.
With additional funding that BHS is seeking today, some or all of the units at Woodley Place
will be upgraded with kitchenettes and additional cabinetry to prepare them for conversion to
Permanent Supportive Housing (PSH) as quickly as possible. We hope to complete this work
within the first year. This work will bring us closer to eligibility for various PSH-related funding
opportunities, including Medicaid reimbursements, Foundational Community Supports, and
housing vouchers. We also intend to apply for upcoming rounds of Dept. of Commerce funding,
beginning with the Office of Supportive Housing and Housing Finance Unit sponsored grants for
PSH operations, maintenance and supportive services; and Rapid Capital Acquisition funding.
E. PROJECT or PROGRAM BUDGET – A Feasible Financial Plan (25 Points)
PROGRAM OPERATING BUDGET
January 1, 2023 – December 31, 2023
Budget Categories Program Proposal Justification Priority
Salaries (includ.
Payroll taxes)
$179,760 $179,760 Case mgmt, Site mgmt,
housekeeping, Maintenance,
Enrichment/Lived Exp., Dir. of
Housing (partial allocation)
1
Benefits $29,592 $14,796 1a
Rental Subsidies $0 $0
Utilities $62,390 $0 Health, safety and comfort 2
Insurance $18,000 $0 Liability coverage for stability 3
Food/Supplies $0 $0
Furnishing/Equipment $26,100 $0 Beds and bedding 5
Repairs/Maintenance $18,000 $0 Maintenance ensures longevity 4
Transportation $0 $0
Subtotal $333,842 $194,556
Administration (10%
max)
$33,384 $0 Support staff and supplies
(bookkeeping, exec, admin,
development)
6
TOTAL $367,226 $194,556
If your Project or Program includes salaries and benefits, please list position(s) and FTE to be
paid by these funds (FTE should be that percentage of time the employee is dedicated to this
Project or Program)
Position Salary Benefits FTE
Site Manager $41,800 $4,932 1.00
Lived Experience Enrichment Coordinator $17,880 $4,932 0.50
Housekeeper $8,520 $4,932 0.25
Maintenance $21,000 $4,932 0.50
Case Manager $41,800 $4,932 1.00
Director of Housing $28,080 $4,932 0.45
FUNDING SOURCES FOR THE PROGRAM IN 2022-23
Funding Sources Awards 2022 Awards 2023 Indicate if
Committed or
Application has
been made.
Public Sources (State
or Federal Funds)
$35,000 Requested - no notice
of award yet (148
funds)
Private Donations $62,500 $81,920 $250K Rec’d:
General Operations
(all programs) – 25%
($62,500) allocated
for Woodley Place
Foundation Grants $5,750 $12,500 2022: $23K
Received; 25%
applied to Woodley
Place project. 2023:
$50K Applied, not
yet received. Gen
Ops. 25 % allocated
for Woodley Place
United Campaigns $10,000 Campaign in progress
for 2023 Gen Ops.
100% allocated for
Woodley Place
Total $103,250 $104,420
Please include any budget narrative that is descriptive or helpful, to explain any part of
your proposed expenditures. For instance, if you are requesting furnishings or appliances
specifically for housing included in your Project or Program, what are the items you are
requesting? (LIMIT 300 WORDS)
In this funding request, as compared to our recent 148 Fund application, we have included all
Woodley Place program expenses – including projected building maintenance and operations
costs, projected salaries (with payroll taxes and benefits) and some other expenses for the
supportive housing program at Woodley Place. Not included are acquisition expenses, capital
improvement/renovation expenses and permits planned in 2023, transportation costs, meals, and
any rental subsidy calculations. The described sources above do not include additional sources
for acquisition or those anticipated for BHS’s overall project and program budgets at our other
housing sites. With the limits inherent in the current 1590 Fund allocation ($250,000), and
without knowing whether other housing organizations will be applying for these funds, we opted
to represent the majority of our project budget. Any dollars not received from these two funding
sources (148 and 1590) must be sought elsewhere (note projected sources above).
This request overlaps with BHS’s previous 148 Fund application, as we have not yet received
any notification regarding that award. If any of the 148 Fund request is awarded, those
dollars should be subtracted from any award received from this 1590 Fund application.
Since the time of our 148 Fund application, we have gained ownership of Woodley Place (as of
12/9/22), resulting in more accurate budget projections. Please note that previous projections
submitted with the 148 funding request for Insurance and Repairs/Maintenance are adjusted as a
result.
2:28 PM
January 21, 2022
Accrual Basis
2022 Budget with
Hadlock Motel
Purchase
Ordinary Income/Expense
Income
300 · Income
305 · Program Income 208,440
330 · Events Income 38,038
350 · Contributions 656,656
380 · Grant Income 2,505,836
Total 300 · Income 3,408,970
Expense
500 · Expense
420 · Fees 5,340
501 · Lease Expense 302,004
505 · Administrative Expense 17,508
510 · Advertising, Fundraising & Mkt 14,760
521 · Bad Debt Expense 4,032
524 · Dues, Subs, Licenses, Permits 6,612
525 · Fees - Service, Bank 300
526 · Insurance Expense 50,136
527 · Interest Expense 5,892
528 · IT & Computer Expense 19,472
530 · Payroll (in expenses) 380,000
560 · Professional Fees 60,000
565 · Program Expense 256,000
570 · Repairs & Maintenance 45,000
586 · Taxes 1,076
587 · Telephone/Internet/WiFi/Cable 12,000
588 · Travel, Meals & Entertainment 7,104
590 · Utilities 65,000
599.9 · Contingency Expense 10,000
Subtotal 500 · Expense 1,262,236
Net Ordinary Income (before motel purchase) 2,146,734
Hadlock Motel purchase 2,000,000
Title expense 3,000
Excise tax to county 24,337
TOTAL PURCHASE COSTS 2,027,337
Total Expense 3,289,573
Total Net Income (after Motel purchase)119,397
Bayside Housing & Services
2022 TOTAL PROGAM BUDGET
Page 1 of 1
BAY S IDE H OUSIN G & SE RVIC ES
I M P A C T
R E P O R T
2 0 2 2
b a y s i d e h o u s i n g .o r g
P O Bo x 92 7
3 10 Ha dl o c k Ba y R o ad
P ort H a d lock , WA 983 3 9
(3 6 0 ) 3 8 5 -4 6 3 7
Execut i v e D i r e c tor: G a ry K e i st e r
ww w.ba ys i de ho u si n g.org
Ba ys i de H ou s in g & S erv ice s
a t T he Old A l c o hol Plan t I n n
My name is Rich Conrad. I have been on the Board of Directors for Bayside Housing & Services for 6 years and I've served as President for the last year and a
half. The mission of Bayside is to strengthen community through housing, advocacy, and human services supporting social and economic independence.
Bayside began over 8 years ago when our founders purchased and renovated the Old Alcohol Plant property, a hotel/restaurant/art gallery/event space; and
established a nonprofit organization, Bayside Housing & Services, using a creative social-enterprise approach. The plan was to form a unique sustainable
partnership. A business in the hospitality field could generate revenue to help fund transitional housing for low-income individuals and families.
In April, 2016, we initially opened 6 rooms for transitional housing. Over the next 6+ years, through grants and donor support from people like you, we now
operate 23 rooms at Bayside Tower, including 4 larger rooms for families. Originally, the hope was that people could be assisted into permanent, affordable
housing within a few months. But the demand for affordable housing in Jefferson County exploded, along with the wait-list at Bayside. Once again our
community came together. Over the last 3 years, community donations paid for the materials, at a discount from local suppliers, and the permitting and
infrastructure to build 26 tiny shelters, constructed by volunteers from Community Build and the Community Boat Project. They were built on the lawns at the
Evangelical Methodist Church in Port Townsend, and Community United Methodist Church in Port Hadlock. Twenty-three of those shelters were then placed
to become transitional homes for 25 people at Peter's Place and Pat's Place. Three more shelters have now been built by Community Boat Project and are
awaiting placement. And next month Bayside will acquire the Hadlock Motel, with support from a grant sponsored by Rep. Steve Tharinger to help ease our
housing crisis. It really does take a village.
In this report, you'll find some details about the numbers of people impacted by Bayside's work, and the types of services we provide. But we know that, like
us, it's not "the data" that really drives you to support the housing and services that our exceptional community is working together to create. When we see
lives changed, children spared the impacts of a legacy of trauma, people re-connecting and finding purpose in our community, and neighbors reaching out
to help alleviate each other's suffering - this is what motivates us to do more.
This is why our operations focus not only on building housing, but on
providing personalized case management to each program participant,
based on their current needs. As more residents move through Bayside
programs over time, we've recognized the vital role that trauma-informed
case management plays in meeting the complex needs of individuals
experiencing homelessness. This includes everything from intake, needs
assessment, service planning, linkage to services, continuous monitoring
and advocacy. In addition, case managers give direct services like
emotional support, education and skill building to prepare our residents as
they move into permanent housing, employment and community. With this
kind of support, research has shown improved housing stability, reduced
Emergency Room visits and shorter hospitalizations, improved mental
health, reduced drug and alcohol use, and improved overall quality of life
for individuals experiencing homelessness. The stories that you'll find in this
year's report are the reasons why I have chosen to be part of Bayside.
If you're like me, these stories are the reason why you want to help, too.
Supporting Bayside's ongoing operations is a way for us all to band
together as a community, to change the future and to make room for
everyone to thrive. Please join us!
From Our President
BHS & OAP: A Productive Relationship
When Bayside Housing & Services opened at the Old Alcohol Plant Inn in 2016, an innovative social enterprise partnership began with a common goal: to
immediately house some of our most vulnerable community members who had been formerly and chronically experiencing homelessness. This alliance
between a for-profit business and a nonprofit social service organization, established a strong foundation for the Bayside mission. As the hotel and restaurant
thrive, they contribute a portion of profits to BHS programs. In turn, patrons know that the money they spend at OAP is also strengthening BHS’s capacity to
provide homes, healing and vital social services. Employment opportunities are available for BHS program participants as well, allowing them to build
income and work experience. And during a time of acute worker shortage, OAP grows a larger pool of prospective employees to meet its needs. This is
“social” and “enterprise” at their best!
During late November 2018, program participants were invited to a Thanksgiving buffet in the community room. Thus began the BHS meal program,
sparked by Chef Troy Murrell. Occurring weekly at first, and now daily, meals are provided to individuals and families at the Tower and are also available to
those who live at the two Tiny Shelter Villages. Fresh and nutritious food, some grown onsite, is prepared in the kitchen and comes as a welcome offering to
those getting by on a limited income. The extensive gardens that surround the hotel are a delight to the senses and support the farm-to-table production
model at Spirit’s Bar & Grill, using local organic produce. The fruits and vegetables become part of the Bayside meals and are provided in bulk for pick-up in
the community room, and at our new Bayside Farm Stand. Gardeners, Patrick Ryland and Kira Mardikes, create opportunities for Bayside program
participants to work alongside them as part of the garden production team - offering a special peace and harmony that only nature can provide.
BHS program participants have always been invited to attend fundraising events held onsite. The spirit of inclusiveness helps to build a sense of trust and
community between participants, staff and attending donors. This year’s Music on the Lawn event in early July hosted a diverse group of supporters and
beneficiaries, united in celebration of the lives that are transformed here. We invite you to join us again on October 1st for Townsend Bay Music Festival,
where you’ll enjoy a great line up of music, fresh food, a full bar and the fulfillment in knowing that you’re helping to Bring More People Home! We hope to
see you there!
"Until you have none, it is probably not possible to adequately understand the value of
community. Humans are designed for connection, belonging, cooperation, and yes,
love. When every aspect of your life is in constant flux, you start to become
disregulated. Even a bit feral (a consequence of no privacy.) When you make it up five
minutes in advance, your life has no structure, beyond what you impose on it. Every
human encounter is with a stranger, and without the stability of place, and community,
your ability to integrate, to connect deeply, slips away. As the memories of a home
recede with time, life without one just becomes your new normal. The mere logistics of
life's demands - food, safety, money, shelter, hygiene - can be insurmountable. Once
you've fallen far enough, just getting back to that first rung on the ladder can seem,
(and often is), unachievable. Purpose fades. Hope just hurts.
All of which is why Pat's Place is such a promising concept, to my way of thinking. It is
designed to foster community. To help those who manage to..... transition back into
society and housing, by first transitioning back into community. To learn, or dust off
long disused skills and attitudes, and yes, recivilize.
Brilliant! A very warm thank you to all of you. I feel lucky to be here."
- a current Peter's Place resident, in support of building Pat's Place
“Being at Bayside has allowed us the opportunity to build a foundation for our future,
along with support and direction in placing applications for housing.We have made
more progress in 3 months than in over 1-1/2 years prior. Not having to change
campgrounds regularly; worry about storing food; worry about our belongings while
we’re looking for or at work; worry about laundry and being presentable for work or
safety in general. All this has been a huge blessing here at Bayside.”
-Kyle & Crystal
From Our Program Participants “I’m a single mom that left a DV (domestic violence) situation. I
moved back to Washington and started my own business. We
had little money and were living in a small travel trailer that
would not be great when he (baby) started moving around.
Now, we have a safe place to live as he learns to crawl. A
stepping-stone on our journey to having a home.”
-Claire
Meeting Susan
- by a former Program Participant, currently living in long-term housing
Soon after coming to live at Bayside Tower in 2017, I noticed the presence in the community room of a
certain lady with soft white hair. She was there frequently throughout the week, mostly just sitting and listening,
talking quietly with the people who were living in transitional housing. I thought it was very kind and generous for someone from the world outside to come
and spend their day with residents, getting to know them and learning about their lives. I watched from a distance wondering who this might be. What I did
know for sure was she projected a profound sense of gentleness and warmth in her speech and manner and provided a vital source of respect for those she
was with. She was able to settle emotions and reorient people to more positive thoughts. I have known other people who exhibit those qualities, but
something about her surpassed previous examples. One day I noticed she had a well-behaved and friendly dog with her, a German Shepard. I like to meet
all animals I encounter so I followed the two of them out to the parking lot. I reached to pet the dog and she made the introduction, referring to him as
“Doc.“ She said her name was Susan and that she was involved with the hotel operation.
Little did I know that she was Susan Keister, a founding member of the Board, and wife to Gary Keister, a co-founder and the Executive Director of Bayside
Housing & Services. I came to know her more closely as time went on, especially during the art classes that she held for Bayside residents. She generously
provided art materials for participants, and offered her time to instruct, assist, or just be a positive and encouraging critic. Classes were loose in structure,
allowing freedom to find individual creativity, to try new techniques and mediums without fear of judgement, and to take full advantage of this vital outlet for
self-expression. Doc would usually accompany Susan and spend most of his time sleeping under the art table, awakening periodically to bark at trucks in the
parking lot. Along with producing all types of artistic creations, the classes demonstrated even more important values. It became a time for focus and
calmness, curiosity and experimentation, discovery and delight, and built community through mutual engagement around a common task. The stresses and
worries for those with uncertain futures could be set aside during class time, and minds shifted toward fulfillment in the moment. It was “Art Therapy”,
understated but very impactful. People left feeling stimulated, productive, and valued, and it often turned out to be the bright spot of the week. We're so
grateful to Susan for offering so much restorative time to help Bayside residents heal.
In Loving Memory
of
Susan Michele Keister
June 6, 1941 - August 22, 2022
Chimacum Corner Farmstand
Cotton Redi-Mix
Shold Excavating, Inc.
Shold Landscape Products
Corvus Crafts
T h a n k Y o u !
We know that our housing crisis won't be solved by any one
agency or individual, but by a collective effort - of volunteers,
nonprofits, government partners, foundations, individual and
corporate donors, and every citizen - like you - who cares
about building community.
Thank you to everyone, those listed and not listed here, who
make this work possible.
Townsend Bay Music Festival Sponsors &
Impact Report Advertisers:
Funders, advocates and
community partners:
Over 500 donors like you in
2021-22
Representative Steve Tharinger
Jefferson County
Community Build
Community Boat Project
City of Port Townsend
Community United Methodist
Church
Evangelical Methodist Church
OlyCAP
WA Dept. of Commerce
Dove House
Housing Solutions Network
Robert W. & Susan T. Brown
Family Foundation
FEMA Emergency Food & Shelter
Program
BHS Board of Directors:
Rich Conrad, President
Terry Umbreit, Vice President
Steve Moore, Treasurer
Carolyn Eagan, Secretary
Jean Camfield
Joanne Rittmueller
Rita Kerr
Michelle Sandoval
Marcia Hildebrandt
Bill Reid
Vince Verneuil, Director Emeritus
Chris Eagan, Director Emeritus
Susan Keister, Director in Memoriam
BHS Staff:
Gary Keister, Executive Director
Linnie Clark, Executive Assistant
Mike Moore, Dir. Housing/Asset Mg.
Heather Dudley-Nollette, Dir. of Dev.
Bill Reid, Development Associate
Mike Schleckser, Case Mgr.
Kathy Howard, Case Mgr.
Elaynee (Eden) Wilson, Case Mgr.
Fawn Music, Bookkeeper
Glenn Greenhalgh, Site Monitor
SPECIAL THANKS TO OAP STAFF!!
What is #BringMorePeopleHome and How Can I Participate?
Bayside is holding a TEAM FUNDRAISING COMPETITION this year as a fun way to help
us grow our base of support and achieve our goal to BRING MORE PEOPLE HOME,
into transitional and permanent supportive housing.
Go to www.baysidehousing.org/BringMorePeopleHome and start your individual fundraiser.
Get your tickets to Townsend Bay Music Festival (OCTOBER 1st) at
www.baysidehousing.org/TBMF to kick off the fun (and to pick up your #BringMorePeopleHome
Team Fundraising packets. Attendance not required, but it'll be great fun!)
Recruit friends, family and colleagues across the world to HELP YOUR TEAM WIN PRIZES!
Start raising funds and keep going until GIVING TUESDAY, on NOVEMBER 29th.
Celebrate with your team as you claim your prizes, knowing that you've made it possible for
more people to move into safe transitional and permanent housing, with the services they need
to eventually heal and reconnect with community. BEST FUNDRAISING TEAM EVER!
1.
2.
3.
4.
5.
BAYSIDE HOUSING & SERVICES
A Washington Not For Profit Organization
Financial Statements
For the Years Ended December 31, 2021 and 2020
TABLE OF CONTENTS
Independent Auditor’s Report .......................................................................................................... 1
Financial Statements:
Statement of Financial Position ............................................................................................ 3
Statement of Activities and Changes in Net Assets-2021 ..................................................... 4
Statement of Activities and Changes in Net Assets-2020 ..................................................... 5
Statement of Functional Expenses-2021 ............................................................................... 6
Statement of Functional Expenses-2020 ............................................................................... 7
Statement of Cash Flows ....................................................................................................... 8
Notes to the Financial Statements ......................................................................................... 9
1
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor’s Report
To the Board of Directors
Bayside Housing and Services
Port Hadlock, WA
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Bayside Housing and Services (the Organization), which
comprise the statements of financial position as of December 31, 2021 and 2020, and the related statements
of activities, functional expenses, and cash flows for the years then ended, and the related notes to the
financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Organization as of December 31, 2021 and 2020, 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.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Organization and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Organization’s ability to continue
as a going concern for one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement
when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
2
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 Organization’s internal control. Accordingly, no such
opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization’s ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control–related matters
that we identified during the audit.
Aiken & Sanders, Inc., PS
Certified Public Accountants
& Consultants
May 17, 2022
Montesano, WA
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Financial Position
As of December 31, 2021 and 2020
Assets
2021 2020
Current Assets:
Cash and cash equivalents 317,062$ 260,840$
Accounts receivable 49,518 29,511
Current portion: pledges receivable - 10,000
Prepaid expenses 2,864 14,623
Total Current Assets 369,444 314,974
Fixed Assets:
Furniture and equipment 8,499 8,499
Office equipment 6,902 1,263
Buildings and improvements 482,019 160,529
Less: Accumulated depreciation (25,666) (3,611)
Fixed Assets, Net 471,754 166,680
Other Assets:
Long term pledges receivable: net of discount 707,483 707,483
Total Other Assets 707,483 707,483
Total Assets 1,548,681$ 1,189,137$
Liabilities and Net Assets
Current Liabilities:
Accounts payable 66,765$ 27,160$
Payroll and related accrued expenses 6,646 4,167
Deferred revenue - 7,528
Current portion: notes payable 86,183 80,283
Total Current Liabilities 159,594 119,138
Long Term Liabilities:
Notes payable-net of current portion 205,000 205,000
Total Long Term Liabilities 205,000 205,000
Net Assets:
With donor restrictions - 72,512
Without donor restrictions 1,184,087 792,487
Total Net Assets 1,184,087 864,999
Total Liabilities and Net Assets 1,548,681$ 1,189,137$
The accompanying notes are an integral part of these financial statements.
3
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Activities and Changes in Net Assets
For the Year Ended December 31, 2021
Without Donor With Donor 2021
Restrictions Restrictions Totals
Support and Revenues:
Contributions 583,890$ -$ 583,890$
Inkind contributions 256,882 - 256,882
Grant revenue 318,949 - 318,949
Rental revenue 97,336 - 97,336
Special event revenue 17,176 - 17,176
Investment revenue 1,951 - 1,951
Service fees and other revenue 99,186 - 99,186
Released from restrictions 72,512 (72,512) -
Total Support and Revenue 1,447,882 (72,512) 1,375,370
Expenses:
Program services 724,290 - 724,290
Management and general 212,679 - 212,679
Fundraising 119,313 - 119,313
Total Expenses 1,056,282 - 1,056,282
Change in Net Assets 391,600 (72,512) 319,088
Net Assets, Beginning of Year 792,487 72,512 864,999
Net Assets, End of Year 1,184,087$ -$ 1,184,087$
The accompanying notes are an integral part of these financial statements.
4
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Activities and Changes in Net Assets
For the Year Ended December 31, 2020
Without Donor With Donor 2020
Restrictions Restrictions Totals
Support and Revenues:
Contributions 330,948$ 72,512$ 403,460$
Inkind contributions 73,670 - 73,670
Grant revenue 202,914 - 202,914
Rental revenue 98,932 - 98,932
Special event revenue 5,541 - 5,541
Investment revenue 831 - 831
Service fees and other revenue 22,514 - 22,514
Total Support and Revenue 735,350 72,512 807,862
Expenses:
Program services 456,025 - 456,025
Management and general 89,392 - 89,392
Fundraising 18,122 - 18,122
Total Expenses 563,539 - 563,539
Change in Net Assets 171,811 72,512 244,323
Net Assets, Beginning of Year 620,676 - 620,676
Net Assets, End of Year 792,487$ 72,512$ 864,999$
The accompanying notes are an integral part of these financial statements.
5
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Functional Expenses
For the Year Ended December 31, 2021
Management
Program and General Fundraising Total
Salaries and wages 110,461$ 73,619$ 54,413$ 238,493$
Payroll taxes 11,195 7,461 5,515 24,171
Benefits 1,775 1,183 874 3,832
Bank fees and charges 1,022 1,614 1,016 3,652
Professional services 16,849 50,110 2,696 69,655
Repairs and maintenance 29,958 - - 29,958
Property tax 2,152 - - 2,152
Travel 5,121 - - 5,121
Depreciation and amortization 19,849 2,206 - 22,055
Occupancy 279,140 32,840 16,420 328,400
Technology 6,823 803 401 8,027
Insurance 7,339 863 432 8,634
Interest 5,900 - - 5,900
Dues & subscriptions 4,971 2,712 4,480 12,163
Advertising - - 9,746 9,746
Program expense 130,630 - - 130,630
Inkind expense 91,105 31,878 23,320 146,303
Bad debt expense - 3,143 - 3,143
Miscellaneous expense - 4,247 - 4,247
Total Expenses 724,290$ 212,679$ 119,313$ 1,056,282$
The accompanying notes are an integral part of these financial statements.
6
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Functional Expenses
For the Year Ended December 31, 2020
Management
Program and General Fundraising Total
Salaries and wages 84,291$ 9,365$ -$ 93,656$
Payroll taxes 11,428 1,269 - 12,697
Bank fees and charges - 382 910 1,292
Professional services 39,152 47,120 3,960 90,232
Repairs and maintenance 17,602 - - 17,602
Office expenses - 709 352 1,061
Property tax 2,214 - - 2,214
Travel 734 - - 734
Depreciation and amortization 696 253 - 949
Occupancy 236,366 26,252 - 262,618
Technology 4,507 501 - 5,008
Insurance 4,669 519 - 5,188
Interest 6,098 - - 6,098
Dues & subscriptions - 1,511 - 1,511
Advertising - 437 11,105 11,542
Program expense 48,072 - - 48,072
Miscellaneous expense 196 1,074 1,795 3,065
Total Expenses 456,025$ 89,392$ 18,122$ 563,539$
The accompanying notes are an integral part of these financial statements.
7
2021 2020
Cash flows from operating activities:
Cash received from grantors, donors and customers 1,095,859$ 698,506$
Cash paid to vendors and suppliers (561,021) (498,996)
Cash paid to and on behalf of employees (264,017) (105,308)
Cash received from interest 1,951 831
Net cash provided (used) by operating activities 272,772 95,033
Cash flows from investing activities:
Cash paid for capital assets (216,550) (92,433)
Net cash provided (used) by investing activities (216,550) (92,433)
Cash flows from financing activities:
Cash received from loans - 150,000
Cash paid to loans - (9,023)
Net cash provided (used) by financing activities - 140,977
Net increase (decrease) in cash & cash equivalents 56,222 143,577
Cash & cash equivalents at beginning of year 260,840 117,263
Cash & cash equivalents at end of year 317,062$ 260,840$
Reconciliation of increase (decrease) in net assets to net cash
provided (used) by operating activities:
Increase (decrease) in net assets: 319,088$ 244,323$
Adjustments:
Depreciation and amortization 22,055 949
Bad debts 3,143 -
Capitalized inkind donations (110,579) (73,670)
Change in pledge discount - (4,810)
Interest expense additions to loans payable 5,900 5,214
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (23,149) (26,688)
(Increase) decrease in pledges receivable 10,000 (10,000)
(Increase) decrease in prepaid expense 11,758 5,173
Increase (decrease) in accounts payable 39,605 (54,031)
Increase (decrease) in payroll and related expense 2,479 1,045
Increase (decrease) in deferred revenue (7,528) 7,528
Net cash provided (used) by operating activities 272,772$ 95,033$
The accompanying notes are an integral part of these financial statements.
Bayside Housing & Services
A Washington Not For Profit Organization
Statement of Cash Flows
8
For the Years Ended December 31, 2021 and 2020
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
9
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Nature of Activities--
Bayside Housing & Services (The Organization) is a not-for-profit corporation organized
in 2014. The Organization’s mission is to provide transformative services to people in
need as they improve their quality of life.
The Organization primarily meets its mission by providing interim housing to individuals
as they transition into permanent living situations at a leased facility in Port Hadlock,
WA. Priority for housing is given to seniors, veterans, and underemployed/low wage
workers who need housing to retain employment.
Basis of Accounting--
The Organization's policy is to prepare its financial statements on the accrual basis of
accounting. Revenue is recognized when earned, and expenditures are recognized when
incurred. If an expenditure results in an asset having an estimated useful life which
extends substantially beyond the year of acquisition, the expenditure is capitalized and
depreciated or amortized over the estimated useful life of the asset.
Financial Statement Presentation--
The Organization follows accounting prescribed by the Financial Accounting Standards
Board in its Accounting Standards Codification (ASC) 958 Not-for Profit Entities. Under
ASC 958, The Organization is required to report information regarding its financial
position and activities according to two classes of net assets: with donor restrictions, and
without donor restrictions.
With Donor Restrictions: Net assets that result from contributions whose use by The
Organization is restricted by donor imposed stipulations that may expire with the passage
of time or can be fulfilled or otherwise removed by actions of The Organization.
Without Donor Restrictions: Net assets that are not restricted by donor stipulation.
Gifts of goods and equipment are reported as without donor restrictions unless explicit
donor stipulations specify how the donated assets must be used.
Property and Equipment--
Purchased furniture, equipment, and leasehold improvements are stated at cost. Donated
furniture, equipment, or property is recognized as revenue and capitalized at its estimated
fair value on the date of receipt. The Organization capitalizes assets that have a useful life
greater than one year. Depreciation is computed using the straight-line method based on
estimated useful lives.
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
10
Estimates--
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that effect certain
reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
Expense Allocation--
The Organization records its expenses by function. Program expenses represent expenses
incurred to fulfill The Organization’s exempt purposes. Management and general
expenses support that exempt purpose while fundraising expenses are incurred to raise
resources to carry out program activities. Expenses are recorded, when appropriate, to
the function receiving direct benefit. When expenses benefit more than one function, an
allocation is made based on relative benefits provided to each function.
Cash and Cash Equivalents--
For purposes of the statement of cash flows, The Organization considers all checking and
savings accounts and unrestricted highly liquid investments with an initial maturity of
three months or less to be cash and cash equivalents.
Advertising--
The Organization’s policy is to expense advertising costs as they are incurred.
Inventory--
Inventory is composed of linens for use in housing and is recorded at cost.
Contributions--
Contributions are recognized when received or when a donor makes an unconditional
promise to give to the organization. Contributions that are restricted by the donor are
reported as increases in net assets without donor restrictions if the restrictions expire in
the year in which the contributions are recognized. All other donor restricted
contributions are reported as increases in net assets with donor restrictions. When a
restriction expires, net assets with donor restrictions are reclassified to net assets without
donor restrictions.
Unconditional promises to give (pledges receivable) are recognized as revenues in the
period the pledge is received. Long term pledges (collection expected in greater than one
year) are discounted to the net present value of future cash flows. Conditional promises
to give are recognized only when the conditions on which they depend are substantially
met and the promise becomes unconditional.
If the restrictions on a contribution are met in the same year that the contribution is
received, it is The Organization’s policy to record the contribution as without donor
restriction on the statement of activities and changes in net assets.
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
11
B. ACCOUNTS RECEIVABLE:
Accounts receivable are recorded to the extent of qualifying amounts to be received after
year end.
Historically, bad debts have been immaterial. The Organization uses the direct write-off
method. When an amount becomes uncollectible, it is charged to expense in the year it is
deemed to be uncollectible. During 2021 and 2020 there were bad debts of $3,143 and
$0, respectively. As of December 31, 2021, management estimated that all accounts
receivable were collectible.
The Organization considers accounts more than 90 days outstanding as past due. No
interest is charged on past due receivables. The Organization had $0 past due at
December 31, 2021.
C. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS:
The Organization, although it expects to receive current support to fund operations for
2022 and later years, has $366,580 and $227,839 of financial assets available within one
year of the statement of financial position dates on December 31, 2021 and 2020,
respectively, to meet cash needs for general operating expenditures of The Organization.
2021 2020
Financial assets at year end $ 366,580 $ 300,351
Donor restricted - (72,512)
Financial assets available to meet
cash needs within one year $ 366,580 $ 227,839
D. DEPRECIATION EXPENSE:
Depreciation is provided as follows for 2021 and 2020:
Method Life 2021 2020
Buildings and Improvements Straight Line 5-10 years $ 1,991 $ 234
Equipment Straight Line 3-5 years 20,064 715
Totals:$22,055 $949
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
12
E. LEASES AGREEMENT:
The Organization leases rooms in the Tower Building: a four story, thirty one (31) room
building located at the Historic Old Alcohol Plant in Port Hadlock, WA, from Inn
Properties, LLC (Inn Properties). Inn Properties ownership includes several members
who are also board members of the Organization. The Organization is also entitled to use
the media room on the second floor of the Tower Building, equipped with a kitchenette,
for food preparation and a room in a separate building on the site for an Organization
employee.
The Organization signed a ten (10) year lease with Inn Properties effective January 1,
2016. The lease terms require monthly payments of $5,000 for the first six months (6),
monthly payments of $7,500 for the next twelve months (12), and $10,000 per month for
the remaining one hundred and two months (102) with an annual increase of 3%. The
lease contains an Organization option to extend the lease for one additional ten (10) year
term. The lease was formally amended in January of 2020 to increase the total number of
rooms being leased to 20 and the base lease cost to $14,570 per month. The Organization
is also able to use additional space, based on need and availability. The Organization
recognized $274,249 and $230,642 as rent expense on this lease for 2021 and 2020,
respectively.
The lease also requires the Organization to pay a prorated share of maintenance, utility,
insurance, and property tax costs. The Organization is also reimbursing Inn Properties for
use of housekeeping and maintenance staff, preparation of meals used in program
activities, and other operating costs. The Organization recognized $194,809 and
$121,618 in reimbursed expenses during 2021 and 2020, respectively.
The Organization entered into a lease-purchase agreement signed on April 8, 2021, for
land in Jefferson County, Washington, which is the site of Pat’s Place, a tiny home
village built by the Organization to provide housing. The term of the lease is two years,
starting May 1, 2021, with an annual lease payment of $1 and payment of applicable
property taxes on the underlying property. The Organization has the option, prior to the
lease expiration, to purchase the property for fair market value. The Organization intends
to exercise that option.
Future minimum rents, prior to any inkind reductions, for the next five years to be paid
under currently executed leases are as follows for the years ending December 31:
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
13
2022 185,488
2023 191,052
2024 195,784
2025 201,658
2026 -
Total:773,982$
F. SUBSEQUENT EVENTS:
On March 11, 2020, the World Health Organization officially declared COVID-19, the
disease caused by the novel coronavirus, a pandemic. COVID-19 has required the
Organization to make adjustments to operating practice and delivery of services.
Management is closely monitoring the evolution of this pandemic, including how it may
affect the economy and the general population.
The Organization signed a purchase and sale agreement in November of 2021,
committing to the purchase of real property and improvements located in Port Hadlock,
Washington. The property is an existing motel operation which, if the transaction is
completed, is to be used by the Organization to provide housing and housing related
services. The purchase price is $2,000,000 and the transaction is contingent on the ability
of the Organization to secure grant and/or other financing. In 2022, the Organization was
awarded funding from the State of Washington. The purchase is expected to be
completed during 2022.
No other events have occurred through May 17, 2022, which is the date the financial
statements were available to be issued, based on the Organization’s facts and
circumstances, for events requiring recording or disclosure in the financial statements for
the year ended December 31, 2021.
G. INCOME TAX & UNCERTAIN TAX POSITIONS:
The Organization is a tax exempt non-profit organization under the Internal Revenue
Code Section 501(c)(3) and is not classified as a private foundation. Accordingly, the
financial statements do not include any provision for income taxes.
The Organization files income tax returns in the U.S. federal jurisdiction. The
Organization is no longer subject to U.S. federal income tax examinations by tax
authorities for years before 2018. Currently, there is no examination or pending
examination with the Internal Revenue Service (IRS).
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
14
The Organization adopted the provisions of FASB ASC 740-10, Accounting for
Uncertainty in Income Taxes, on January 1, 2015. As of December 31, 2021, there are
no tax positions for which the deductibility is certain but for which there is uncertainty
regarding the timing of such deductibility.
H. NOTES PAYABLE AND RELATED PARTY TRANSACTIONS:
The Organization, detailed in Note E, paid rent and reimbursed costs to Inn Properties.
The Organization received $188,928 and $136,130 in cash contributions from board
members and affiliated individuals during 2021 and 2020, respectively, which
represented approximately 31% and 28% of total contributions received.
The Organization, in addition to cash contributions from board members and affiliated
individuals, also received pledges from the same group in the year ended December 31,
2018. Pledges receivable from 2018 were reaffirmed by these individuals during the year
ended December 31, 2020,with payment expected in 2023.
The future pledge collections have been discounted to present value using a discount rate
of 5%. Future collections of pledges are as follows:
Current
2022 -$
2023 780,000
Discount (72,517)
Total:707,483$
Board members and affiliated organizations have also provided, as of December 31, 2021
and 2020, $141,183 and 135,283 in unsecured loans to The Organization. Notes payable
from related parties was the following at December 31, 2021:
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
15
Notes Payable To Christopher Eagan (Board Past President)
Note dated May 8, 2015. 6% annual interest, due quarterly.
Note due on demand after 5 years from issuance 20,000$
Three separate notes, all at 5% annual interest, due 35,000
on demand. Interest due on January 1 of each year.
Accrued interest payable: 17,178
Total Due to Christopher Eagan 72,178$
Notes Payable To Vincent Verneuil (Board Secretary/Treasurer)
Note dated May 20, 2015. 6% annual interest, due quarterly.
Note due on demand after 5 years from issuance 20,000$
Two separate notes, both at 5% annual interest, due 20,000
on demand. Interest due on January 1 of each year.
Accrued interest payable: 13,255
Total Due to Vincent Verneuil 53,255$
The GK & SK Living Trust (Living Trust of One Original Founder and Board
Member and Spouse Who is a Current Board Member)
Note dated December 31, 2017. 5% interest. Due December 21, 2020 15,000$
Accrued interest payable: 750
Total Due to GK & SK Living Trust 15,750$
Total Related Party Notes Payable 141,183$
Future maturities of notes payable from related parties are as follows for the years ending
December 31:
2022 86,183
2023 -
2024 -
2025 -
2026 -
Thereafter 55,000
Total:141,183$
During 2021 and 2020, the Organization entered into three loan arrangements with the
United States Small Business Administration (SBA).
Bayside Housing & Services
A Washington Not For Profit Organization
Notes to Financial Statements
December 31, 2021 and 2020
16
The Organization received a loan for $19,800 guaranteed by the SBA, funded by Sound
Community Bank, under the paycheck protection loan program, a government loan
program implemented to address the Covid-19 pandemic. The loan carried an initial term
of 24 months, with a stated interest rate of 1%. The loan was eligible for forgiveness if
used for payroll and related costs. The Organization used the loan proceeds for costs that
qualify for loan forgiveness and recorded the $19,800 as grant revenue for 2020. The
loan was formally forgiven in 2021.
The Organization received a loan for $38,359 guaranteed by the SBA, funded by Sound
Community Bank, under the second round of the paycheck protection loan program, a
government loan program implemented to address the Covid-19 pandemic. The loan
carried an initial term of 24 months, with a stated interest rate of 1%. The loan was
eligible for forgiveness if used for payroll and related costs. The Organization used the
loan proceeds for costs that qualify for loan forgiveness and recorded the $38,359 as
grant revenue for 2021. The loan was formally forgiven in 2021.
The Organization received a loan from the SBA under the Economic Impact Disaster
Loan program in June of 2020. The loan amount was $150,000 with a stated interest rate
of 2.75% per year on the outstanding balance. Monthly payments of $641 were due
starting June 17, 2021, with a maturity date of June 17, 2050. The start of the loan
amortization period has been extended by SBA several times since the original loan was
made. Currently the loan is to enter repayment status starting January of 2023. The loan
is secured by future revenue and assets of the Organization. Future principal maturities
for the next five years under this loan arrangement are as follows:
2022 -
2023 3,562
2024 3,657
2025 3,753
2026 3,853
Thereafter 135,175
Total:150,000$