2023-06-08T16:38:30-05:00 2022-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2022-01-01 411687873 MODEL CITIES OF ST PAUL INC MODE 6516328350 839 UNIVERSITY AVE W ST PAUL MN 55104 KIZZY L DOWNIE CEO 6516328349 2023-06-05 1 KIZZY DOWNIE 999009999 0 SARAH REICHLING P01587996 6123764500 2023-06-05 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z KIZZY L DOWNIE 839 UNIVERSITY AVE W ST PAUL MN 55104 2319636 0 X WWW.MODELCITIES.ORG X 1989 MN TO PROMOTE SOCIAL AND ECONOMIC PROSPERITY BY PROVIDING ACCESS TO OPPORTUNITIES THAT DEVELOP AND STABILIZE FAMILIES AND COMMUNITIES. 9 9 22 30 0 0 2740419 1997720 62120 63718 1663 1632 211395 256566 3015597 2319636 29405 13362 0 0 1438495 1498573 0 0 12986 783494 855872 2251394 2367807 764203 -48171 3500285 3330695 905017 776585 2595268 2554110 X TO PROMOTE SOCIAL AND ECONOMIC PROSPERITY BY PROVIDING ACCESS TO OPPORTUNITIES THAT DEVELOP AND STABILIZE FAMILIES AND COMMUNITIES. 0 0 1844652 13362 320284 IN 2022, WE SERVED 2,450 PEOPLE AGENCYWIDE, AMONG WHOM 78% LIVE AT OR BELOW THE FEDERAL POVERTY LEVEL; 66% ARE MALE, 33% FEMALE, AND 1% NONBINARY; 48% ARE BLACK, 32% WHITE, 6% LATINX, 7% MORE THAN ONE RACE/ETHNICITY, 4% ASIAN, AND 3% AMERICAN INDIAN; AND 58% OF HOUSING PARTICIPANTS REPORT A DISABILITY. 100% OF OUR SERVICE-ENRICHED HOUSING TENANTS HAVE A HISTORY OF HOMELESSNESS.HOUSING SUPPORT SERVICES (HSS): ADDRESSING HOUSING INSTABILITY REQUIRES A WHOLE-PERSON APPROACH WITH A CONTINUUM OF SERVICES TO MEET A HOUSEHOLD'S HOLISTIC NEEDS AND HELP THEM ACCESS RESOURCES TO BUILD SKILLS AND BECOME SELF-SUFFICIENT. IN 2022, HOUSING SUPPORT SERVICES WERE PROVIDED TO HOUSEHOLDS THROUGH THE FOLLOWING: FAMILIES FIRST SUPPORTIVE HOUSING (FFSH) - FFSH PROVIDES PERMANENT HOUSING TO HOMELESS FAMILIES WITH ONE OR MORE MEMBERS ENDURING A CHRONIC DISABILITY AND/OR THE HEAD-OF-HOUSEHOLD IS RECOVERING FROM CHEMICAL ADDICTION. SANKOFA SUPPORTIVE HOUSING PROVIDES PERMANENT HOUSING TO YOUNG ADULTS AGES 17-25 YEARS OLD WHO ARE EITHER PREGNANT OR PARENTING A CHILD UNDER THE AGE OF THREE YEARS OLD.YOUTH SERVICES: MODEL CITIES ALSO PROVIDES SERVICES TO YOUTH. PROGRAMMING PROVIDED THOUGH THE YOUTH SERVICES DEPARTMENT PROVIDES YOUTH WITH SUPPORTIVE RELATIONSHIPS, EDUCATIONAL OPPORTUNITIES, AND ACCESS TO COMMUNITY-BASED RESOURCES. YOUTH FROM MODEL CITIES' SUPPORTIVE HOUSING, COMMUNITY COACHING, FAMILY COACHING, AND COMMERCIAL TENANTS RECEIVED BACKPACKS. YOUTH SERVICES SUPPORTED YOUTH AND THEIR FAMILIES IN BUILDING HEALTHY RELATIONSHIPS, PROVIDING ACCESS TO OPPORTUNITIES, AND LIFE AND WORK-READINESS SKILLS NEEDED FOR POSITIVE DEVELOPMENT.HOMEOWNERSHIP SERVICES: MODEL CITIES PROVIDES BOTH HOMEBUYER EDUCATION AND PRE-PURCHASE COUNSELING SERVICES TO FAMILIES WHO NEED SUPPORT WITH LEARNING HOW TO SUCCESSFULLY NAVIGATE THE HOMEBUYING PROCESS. SERVICES INCLUDE:THE HOME STRETCH WORKSHOP IS AN 8-HOUR EDUCATIONAL COURSE OFFERED IN A DAY-LONG SESSION ON WEEKENDS AND WEEKDAYS TO ACCOMMODATE A VARIETY OF SCHEDULES. IN ADDITION TO INFORMATION ON CHOOSING THE RIGHT MORTGAGE, AVOIDING SCAMS AND PREPARING FOR A CLOSING, COURSE MATERIALS ARE DELIVERED IN AN INTERACTIVE WAY THAT INCORPORATES DISCUSSION, MULTI-MEDIA, ADDITIONAL RESOURCE MATERIALS, AND PRESENTATIONS FROM VOLUNTEER PROFESSIONALS WHO HAVE EXPERIENCE IN HOUSING, LENDING AND REAL ESTATE.PRE-PURCHASE COUNSELING IS DESIGNED TO ASSIST HOUSEHOLDS WITH UNDERSTANDING BARRIERS TO BECOMING A HOMEOWNER. THE HOMEOWNERSHIP ADVISOR MEETS ONE-ON-ONE WITH HOUSEHOLDS TO ANALYZE THEIR INCOME, CREDIT, DEBT AND WORK HISTORY IN ORDER TO MAP OUT A STRATEGY TO OVERCOME ANY HOMEOWNERSHIP OBSTACLES. FISCALLY FIT PROVIDES FINANCIAL WELLNESS SERVICES TO SMALL BUSINESS OWNERS, YOUTH, INDIVIDUALS AND LOW-INCOME HOUSEHOLDS, WITH A GOAL OF ELIMINATING ECONOMIC DISPARITIES WHILE FOSTERING FINANCIAL HEALTH AND WELLNESS. SHELTER SERVICES: IN NOVEMBER 2019, MODEL CITIES BEGAN OPERATING SAFE SPACE, AN EMERGENCY SHELTER LOCATED AT 160 EAST KELLOGG BOULEVARD IN DOWNTOWN ST. PAUL. EMERGENCY SHELTER SERVICES ARE PROVIDED FOR UP TO 64 MEN AND WOMEN ON A NIGHTLY BASIS AND THE SHELTER OPERATES DAILY FROM 10:00 P.M. TO 9:00 A.M. SAFE SPACE IS CONSIDERED A LOW-BARRIER, TEMPORARY SHELTER WHERE POLICE AND OTHER AUTHORIZED ORGANIZATIONS BRING HOMELESS INDIVIDUALS WHO ARE FOUND SLEEPING OUTSIDE ON THE LIGHT RAIL, IN SKYWAYS, OR IN OTHER UNAUTHORIZED BUILDINGS. THE ULTIMATE GOAL AT SAFE SPACE IS TO ENSURE UNSHELTERED INDIVIDUALS HAVE A SAFE PLACE TO STAY WHILE THEY LOOK FOR OTHER LONG-TERM SOLUTIONS TO AFFORDABLE HOUSING. BROWNSTONE SERVICES: SINCE OPENING IN 2017, BROWNSTONE HAS BEEN AT OR NEAR 100 PERCENT OCCUPANCY (APPROXIMATELY 97% ON AVERAGE EACH YEAR) FOR THE 35 UNITS OF AFFORDABLE HOUSING INCLUDED IN THE PROJECT. THE POPULATION OF RESIDENTS IS DIVERSE WITH A MIX OF RACES, AGES, AND FAMILIES RESIDING AT BROWNSTONE. INTEREST CONTINUES TO REMAIN HIGH IN THE RESIDENCE AS WE TYPICALLY GET MULTIPLE APPLICATIONS FOR VACANCIES WHEN THEY ARISE. IN ADDITION TO APARTMENT UNITS, MODEL CITIES LEASES AFFORDABLE RETAIL SPACE TO COMMERCIAL TENANTS AT BROWNSTONE. IN 2022, 4 OF 5 RETAIL SPACES WERE OPERATED BY BIPOC ENTREPRENEURS. ONE NEW ENTREPRENEUR OPENED A CARIBBEAN RESTAURANT AT BROWNSTONE IN 2022. THESE FOUR BUSINESSES ALSO EMPLOY COMMUNITY RESIDENTS AND OTHERS FROM THE AREA, AND THERE HAS EVEN BEEN A MODEL CITIES YOUTH RESIDENT WHO WAS AN INITIAL VOLUNTEER AT THE BARBER SHOP AND HAS NOW GONE ON TO BECOME A LICENSED BARBER. 1844652 1 1 0 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 22 0 1 22 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X KASAYE AYENEW 6516328349 839 UNIVERSITY AVE W ST PAUL MN 55104 KIZZY DOWNIE CEO/BOARD SECRETARY 20.00 25.00 X X 108226 0 0 OSBORNE STRICKLAND CHAIR 1.00 2.00 X X 0 0 0 BRENDA BAILEY TREASURER 1.00 2.00 X X 0 0 0 JUDITH AMINMENTSE DIRECTOR 0.50 0.50 X 0 0 0 DANIEL ATUNAHJAY DIRECTOR 0.50 0.50 X 0 0 0 BRENDA BOLAR-FORD DIRECTOR 0.50 0.50 X 0 0 0 PETER MAY DIRECTOR 0.50 0.50 X 0 0 0 JULIET MITCHELL DIRECTOR 0.50 0.50 X 0 0 0 MARILYN PORTER DIRECTOR 0.50 0.50 X 0 0 0 108226 0 0 1 0 0 0 RS EXECUTIVE PROTECTION LLC PO BOX 241131 APPLE VALLEY MN 55124 SECURITY SERVICES FOR MULTIPLE FACILITIE 128674 1 155510 1263519 578691 1997720 SERVICE FEES 624100 63668 63668 RENTAL INCOME 532000 50 50 63718 1632 1632 INTERCOMPANY ADMINISTR 624100 229228 229228 OTHER INCOME 624100 27338 27338 256566 2319636 320284 0 1632 X 13362 13362 100239 25060 75179 1175098 940001 235097 128393 83455 44938 94843 71621 23222 8998 8998 243908 239500 3556 852 6473 6473 26390 9675 16715 14359 12249 2110 349793 333081 16712 17939 1676 16263 18203 16045 2158 10652 10455 197 15176 12881 2295 MISCELLANEOUS EXPENSES 116083 46329 57620 12134 REPAIRS & MAINTENANCE 27898 22789 5109 0 2367807 1844652 510169 12986 263779 345903 240000 0 316366 305777 0 38394 268626 214662 20905 53964 502128 607800 1823521 1823521 333586 155336 3500285 3330695 320308 236797 5200 579509 539788 905017 776585 X 2595268 2554110 2595268 2554110 3500285 3330695 -48171 7013 X X 0 1 X 0 0 X 1058832 1329143 1885751 2740419 1997720 9011865 1058832 1329143 1885751 2740419 1997720 9011865 1272751 7739114 1536 3155 1724 1663 1632 9710 237372 201532 191124 211395 256636 1098059 10119634 438437 0.76480 0.77780 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INSURANCE RECOVERY DEVELOPER FEE RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 249485 195521 53964 19141 19141 0 53964 590305 F CERTIFICATES OF DEPOSIT 17495 C 607800 INVESTMENT IN NON-PROFIT SUBSIDIARY 1823521 C 1823521 X 3045297 1220311 1220311 1824986 494650 494650 2319636 3618577 1745420 1745420 1873157 494650 494650 2367807 PART X, LINE 2: MODEL CITIES OF ST. PAUL IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SIMILAR STATE INCOME TAX LAWS. THE ENTITY IS A PUBLIC CHARITY AND CONTRIBUTIONS TO THE ENTITY QUALIFY AS A CHARITABLE TAX DEDUCTION BY THE CONTRIBUTOR. THE CONSOLIDATED LLC IS A DISREGARDED ENTITY FOR TAX PURPOSES AND IS NOT SUBJECT TO FEDERAL INCOME TAXES. THE ORGANIZATION FOLLOWS GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE ORGANIZATION REVIEWS AND ASSESSES ITS TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN TAX RETURNS. BASED ON THIS ASSESSMENT THE ORGANIZATION DETERMINES WHETHER IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WOULD BE SUSTAINED UPON EXAMINATION BY TAX AUTHORITIES. THE ORGANIZATION'S ASSESSMENT HAS NOT IDENTIFIED ANY SIGNIFICANT POSITIONS THAT IT BELIEVES WOULD NOT BE SUSTAINED UNDER EXAMINATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUES OF BROWNSTONE ASSOCIATION REPORTED ON A SEPARATE RETURN 60,634. REVENUE OF MODEL CITIES COMMUNITY DEVEL. CORP. REPORTED ON A SEPARATE RETUR REVENUES OF MODEL CITIES PROPERTIES REPORTED ON A SEPARATE RETURN 855,395. REVENUES OF BROWNSTONE RESIDENTIAL REPORTED ON A SEPARATE RETURN 304,282. PART XI, LINE 4B - OTHER ADJUSTMENTS: INTERCOMPANY ELIMINATIONS 494,650. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSE OF BROWNSTONE ASSOCIATION REPORTED ON A SEPARATE RETURN 48,610. EXPENSE OF MODEL CITIES COMMUNITY DEVEL. CORP. REPORTED ON A SEPARATE RETUR EXPENSE OF MODEL CITIES PROPERTIES REPORTED ON A SEPARATE RETURN 1,060,143. EXPENSE OF BROWNSTONE RESIDENTIAL REPORTED ON A SEPARATE RETURN 636,667. PART XII, LINE 4B - OTHER ADJUSTMENTS: INTERCOMPANY ELIMINATIONS 494,650. 1 CLIENT ASSISTANCE 2450 13362 N/A N/A PART I, LINE 2: REQUESTS FOR CLIENT ASSISTANCE VOUCHERS WILL BE HANDLED VIA PURCHASE ORDER WITH ATTACHED DOCUMENTATION, CURRENT AUDIT, AND/OR MEMO EXPLAINING REASON FOR THE REQUEST. UPON RECEIPT OF VOUCHERS, THE DIRECTOR OF PROGRAMS AND SERVICES, OR ASSIGNEE, WILL MAINTAIN AN AUDIT SHEET SO THAT THE CLIENT ASSISTANCE VOUCHERS CAN BE MONITORED ON A MONTHLY BASIS. ALL VOUCHERS ARE TO BE MAINTAINED UNDER LOCK AND KEY IN THE RECORDS ROOM. THESE VOUCHERS ARE RELEASED ONLY TO THE DIRECTOR OF PROGRAMS AND SERVICES OR DESIGNATED PROGRAM MANAGERS. AUDIT FORMS MUST SHOW TWO SIGNATURES WHEN VOUCHERS ARE BEING CHECKED OUT. ONE SIGNATURE MUST BE THAT OF THE DIRECTOR OF PROGRAMS AND SERVICES OR THE ASSIGNED PROGRAM MANAGER. AUDITS ARE PERFORMED MONTHLY BY THE DIRECTOR OF PROGRAMS AND SERVICES. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS EMAILED TO THE FINANCE AND AUDIT COMMITTEE UPON RECEIPT AND AFTER REVIEW BY STAFF. THE COMMITTEE REVIEWS AND MAKES A RECOMMENDATION FOR THE TREASURER TO PRESENT TO THE FULL BOARD. PRIOR TO THE BOARD MEETING, THE FORM 990 IS EMAILED AS A PART OF THE BOARD PACKET. IF APPLICABLE, QUESTIONS ARE DISCUSSED AT THE BOARD MEETING AND A RESOLUTION OFFERED FOR A VOTE TO ADOPT AND THE FORM 990 IS THEN FILED. FORM 990, PART VI, SECTION B, LINE 12C A DISCLOSURE QUESTIONNAIRE IS REQUIRED OF EACH INDIVIDUAL COVERED BY THE POLICY ANNUALLY AND THE FORM IS REVIEWED BY THE CEO TO DETERMINE WHO HAD OR WILL HAVE THE POTENTIAL TO BE INVOLVED IN AN ACTIVITY THAT MIGHT BE INTERPRETED AS A POSSIBLE CONFLICT OF INTEREST. NO BOARD MEMBER, STAFF PERSON, CONSULTANT OR VOLUNTEER SHALL HAVE DIRECT OR INDIRECT FINANCIAL INTEREST IN THE ASSETS, LEASES, BUSINESS TRANSACTIONS, OR PROFESSIONAL SERVICES OF THE AGENCY, EXCEPT AS EXPRESSLY DEFINED IN THE BY-LAWS. THIS DOES NOT PRECLUDE THE BOARD FROM RECRUITING AND ELECTING BOARD MEMBERS WHO ARE VENDORS OR SERVICE PROVIDERS OF THE AGENCY. THE POLICY GOES ON TO SAY THAT NO DIRECTOR SHALL BE THE BLOOD RELATIVE OF THE FIRST ORDER TO ANY AGENCY STAFF PERSON. BOARD MEMBERS CANNOT RECEIVE HONORARIA FOR WORK ON BEHALF OF THE AGENCY, EXCEPT AS SPECIFIED IN THE BY-LAWS. NEITHER THE BOARD MEMBERS, NOR THEIR FAMILY MEMBERS, SHALL BE ENTITLED TO PREFERENTIAL TREATMENT FOR SERVICES. AT ANY TIME WHEN A CONFLICT OF INTEREST EXISTS, THE BOARD DIRECTOR, VOLUNTEER, OR CONSULTANT IS TO DISCLOSE THE RELATIONSHIP AND CANNOT PARTICIPATE IN ANY VOTE OR DECISION TAKEN WITH RESPECT TO SUCH TRANSACTIONS OR SERVICES. SIMILAR RULES APPLY TO STAFF. STAFF SIGNS OFF ON THE EMPLOYEE HANDBOOK THAT STATES NO EMPLOYEE CAN PARTICIPATE IN THE RECRUITMENT, INTERVIEWING, HIRING, OR SUPERVISION OF A RELATIVE. NO TRANSFER OF PROPERTY OR LENDING OF MONEY IS ALLOWED BETWEEN THE AGENCY AND BOARD OFFICERS, DIRECTORS OR STAFF. ALL EMPLOYEES SHALL DISCLOSE ANY CONFLICT OF INTEREST REGARDING HIS/HER WORK, AND SHALL REFRAIN FROM ENGAGING IN ACTIVITIES WHICH MAY BE PERCEIVED AS BEING A CONFLICT OF INTEREST. ALL PROCEEDINGS RELATED TO CONFLICTS OF INTEREST ARE DOCUMENTED IN THE MEETING MINUTES OR AS OTHERWISE APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 15 A COMPARABLE WAGE STUDY IS PERFORMED TO IDENTIFY THE AGENCY'S COMPARABILITY WITH MARKET WAGES AND BENEFITS WITH OTHER SIMILAR NON-PROFIT AGENCIES. FINAL WAGES ARE INFLUENCED BY FUNDS AVAILABLE. THE WAGE STUDY IS PRESENTED TO THE BOARD ALONG WITH MODEL CITIES PAY RANGES. THE BOARD DETERMINES THE COMPENSATION FOR THE CEO BASED ON THE STUDY. THE OFFICE MANAGER PRESENTS THE COMPARABLE WAGE STUDY TO THE CEO FOR REVIEW AND APPROVAL. A LISTING OF ALL JOB TITLES, CURRENT WAGE RANGES, MARKET RANGES, AND RECOMMENDED REVISIONS ARE INCLUDED IN THIS FINAL STUDY. IF APPROVED, THE CEO PRESENTS THE FINAL STUDY TO THE BOARD OF DIRECTORS FOR THEIR ADOPTION. A COMPARABLE WAGE STUDY WAS DONE IN MAY 2021 USING DATA PRESENTED BY THE MINNESOTA NONPROFITS SALARY & BENEFITS SURVEY THAT THEY COLLECTED IN JULY 2020 AND BY THE OCCUPATIONAL EMPLOYMENT STATISTICS SURVEY FROM THE BUREAU OF LABOR STATISTICS AND STATE WORKFORCE AGENCIES WITH THE WAGE RANGES ESTABLISHED BECOMING EFFECTIVE IN JANUARY 2022. THE NEXT WAGE STUDY WILL BE PERFORMED IN 2023 AND WILL BECOME EFFECTIVE IN 2024. FORM 990, PART VI, SECTION C, LINE 19 MODEL CITIES INCLUDES ITS YEAR-END FINANCIAL INFORMATION IN AN ANNUAL REPORT AND THE DISTRIBUTION INCLUDES APPROXIMATELY 1,000 RECIPIENTS AND INCLUDES FUNDERS, DONORS, ORGANIZATIONS, PUBLIC OFFICIALS, ETC. FORM 990, PART IX, LINE 11G OTHER FEES FOR SERVICE: PROGRAM SERVICE EXPENSES 239,500. MANAGEMENT AND GENERAL EXPENSES 3,556. FUNDRAISING EXPENSES 852. TOTAL EXPENSES 243,908. FORM 990, PART XII, LINE 2C: NO CHANGES IN THE CURRENT YEAR MODEL CITIES COMMUNITY DEVELOPMENT CORPORATION 839 UNIVERSITY AVE W ST PAUL MN 55104 411936584 COMMUNITY DEVELOPMENT MN 501(C)(3) LINE 7 MODEL CITIES OF ST PAUL INC 1 MODEL CITIES PROPERTIES 839 UNIVERSITY AVE W ST PAUL MN 55104 364661878 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 12B, II MODEL CITIES OF ST PAUL INC 1 MODEL CITIES BROWNSTONE LIMITED PARTNERSHIP 839 UNIVERSITY AVE W ST PAUL MN 55104 320466342 LEASE MANAGEMENT MN N/A 0 0 BROWNSTONE ASSOCIATION 839 UNIVERSITY AVE W ST PAUL MN 55104 823462293 SUPPORTING ORGANIZATION MN N/A C 0 0 1 0 1 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 MODEL CITIES BROWNSTONE LLC K 150480 BOOK VALUE MODEL CITIES BROWNSTONE LIMITED PARTNERSHIP Q 10080 BOOK VALUE MODEL CITIES PROPERTIES Q 170559 BOOK VALUE MODEL CITIES PROPERTIES P 10348 BOOK VALUE SCHEDULE R, PART II MODEL CITIES PROPERTIES (MCP) IS THE SOLE MEMBER OF TWO LLC ENTITIES, MODEL CITIES SUPPORTIVE HOUSING, LLC AND MODEL CITIES BROWNSTONE COMMERCIAL, LLC. MODEL CITIES SUPPORTIVE HOUSING, LLC IS THE SOLE MEMBER OF TWO LLC ENTITIES, MODEL CITIES FAMILIES FIRST NO.1, LLC AND MODEL CITIES SANKOFA, LLC. THE LLCS LISTED ABOVE ARE TREATED AS DISREGARDED ENTITIES OF MCP AND THE FINANCIAL ACTIVITY IS REPORTED ON THE TAX RETURN FILED BY MCP.