2024-11-12T15:35:02-06:00 2023-12-31 420714325 RSM US LLP 920 5TH AVENUE SUITE 2800 SEATTLE WA 98104 990 2023-01-01 911662698 CRAFT3 CRAF 8882312170 42 7TH STREET 100 ASTORIA OR 97103 MARK STEVENSON CHIEF FINANCIAL OFFICER 8882312170 2024-11-11 1 0 SUE ROBISON P00560072 2062814444 2024-11-11 2023 2024-10-15 13:58:12Z BRUCE BROOKS 42 7TH STREET 100 ASTORIA OR 97103 32060164 0 X WWW.CRAFT3.ORG X 1994 WA TO BUILD A THRIVING, JUST AND EMPOWERED PACIFIC NORTHWEST USING CAPITAL, RELATIONSHIPS AND VOICE. 12 12 96 12 0 0 6269398 19354025 12060240 10940089 889621 1766050 0 0 19219259 32060164 248949 270253 0 0 10413156 11834538 0 0 453319 5330685 8515968 15992790 20620759 3226469 11439405 182110281 222022332 111734376 140216519 70375905 81805813 TO BUILD A THRIVING, JUST AND EMPOWERED PACIFIC NORTHWEST USING CAPITAL, RELATIONSHIPS AND VOICE. 0 0 15591481 270253 10430177 LENDING ACTIVITIES: PROVIDING BUSINESS SUPPORT, MARKETING ASSISTANCE AND HIGH RISK NON-BANK CREDIT TO BUSINESSES AND INDIVIDUALS IN WASHINGTON AND OREGON. IMPROVING THE PHYSICAL AND ECONOMIC ENVIRONMENTS THROUGH REDUCTION OF WASTE, ENERGY AND CHEMICAL USAGE THROUGH MISSION BASED LENDING. 828367 509912 PROGRAM CONSULTING: PROVIDING EXPERT GUIDANCE IN STRATEGIC PLANNING, ORGANIZATIONAL DEVELOPMENT, ECONOMIC DEVELOPMENT, AND REAL ESTATE DEVELOPMENT. THE SERVICES ARE DESIGNED TO ASSIST BUSINESSES, NON-PROFIT ORGANIZATIONS AND LOCAL GOVERNMENTS IN ACCOMPLISHING THEIR GOALS. 16419848 1 1 0 1 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 98 0 1 96 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 12 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 OR X X MARK STEVENSON CFO 8882312170 42 7TH STREET 100 ASTORIA OR 97103 PAUL BENOIT BOARD CHAIR 2.00 1.00 X X 0 0 0 JO ANN KAUFFMAN BOARD MEMBER 2.00 1.00 X 0 0 0 RONALD GRZYWINSKI BOARD MEMBER 2.00 1.00 X 0 0 0 ALEXA KELLY BOARD MEMBER 2.00 1.00 X 0 0 0 ALAN OKAGAKI BOARD MEMBER 2.00 1.00 X 0 0 0 STAN AMY BOARD MEMBER 2.00 1.00 X 0 0 0 WALT KRUMBHOLZ BOARD MEMBER 2.00 1.00 X 0 0 0 SHIVON BRITE BOARD MEMBER 2.00 1.00 X 0 0 0 MARY HOUGHTON BOARD MEMBER 2.00 1.00 X 0 0 0 LINDA NETTKOVEN BOARD MEMBER 2.00 1.00 X 0 0 0 ANDREA CAUPAIN SANDERSON BOARD MEMBER 2.00 1.00 X 0 0 0 LEE WINSLETT BOARD MEMBER 2.00 1.00 X 0 0 0 ADAM ZIMMERMAN CHIEF EXECUTIVE OFFICER 40.00 4.00 X 301065 0 24311 BRUCE BROOKS PRESIDENT 40.00 4.00 X 218814 0 31950 RONALENE MONTEITH CHIEF CREDIT OFFICER, EVP 40.00 4.00 X 175002 0 30103 MARK STEVENSON NEW MARKETS TAX CREDIT DIRECTOR, EVP 40.00 4.00 X 163438 0 36225 JANE REPENSEK CHIEF FINANCIAL OFFICER, EVP 40.00 4.00 X 147160 0 5283 SONYA LYNN CHIEF OPERATING OFFICER 40.00 4.00 X 143849 0 24915 MICHAEL DICKERSON INNOVATION AND EVALUATION DIRECTOR 40.00 4.00 X 208803 0 14551 JAMES GALBRAITH LEGAL COUNSEL, VP 40.00 0.00 X 176243 0 13855 TURNER WASKOM COMMERCIAL LENDING DIRECTOR, SVP 40.00 0.00 X 158081 0 4693 MICHAEL WU IT DIRECTOR, VP 40.00 0.00 X 149033 0 27562 MARGARET WEILAND DEVELOPMENT DIRECTOR, SVP 40.00 0.00 X 143390 0 34877 TERESA PARRIETT CONTROLLER, VP 40.00 0.00 X 144383 0 14113 DESIREE MICHIELS CONSUMER LENDING DIRECTOR, SVP 40.00 0.00 X 137424 0 17292 SAIF HAKIM COMMERCIAL LENDING TEAM MANAGER, VP 40.00 0.00 X 142108 0 3531 2408793 0 283261 35 0 1 0 B THOMPSON CONSTRUCTION DBA BAY SHORE CO 2103 HARRISON AVE NW 2774 OLYMPIA WA 98502 CONSTRUCTION SERVICES 673848 JEREMY SMITHSON DBA PUGET SOUND SOLAR LL 805 RAINIER AVE S SEATTLE WA 98144 CONSTRUCTION SERVICES 267340 SIMPLIFILE LC 4844 NORTH 300 WEST SUITE 202 PROVO UT 84604 ELECTRONIC DOCUMENT SERVICES 254021 SCIDPDA BUS HOTEL COMMERICAL 409 MAYNARD AVE S SEATTLE WA 98104 RENT 249733 B-ELITE DBA A-BELL EXCAVATING PO BOX 815 GRAHAM WA 98338 CONSTRUCTION SERVICES 168418 18 18701265 652760 19354025 LENDING ACTIVITIES 522291 10430177 10430177 PROGRAM CONSULTING 522291 509912 509912 10940089 1766050 1766050 32060164 10940089 0 1766050 33334 33334 236919 236919 1878340 1538717 285172 54451 7849413 6448626 1170034 230753 364810 291034 64557 9219 928327 740591 164277 23459 813648 649104 143983 20561 16110 6260 8825 1025 130068 50542 71253 8273 928405 455120 456326 16959 49275 9969 39218 88 242565 79826 159766 2973 769174 512783 225624 30767 258773 172515 75907 10351 249568 132731 105049 11788 195195 39490 155357 348 2588472 2588472 350032 233354 102676 14002 126363 84242 37066 5055 LOAN COSTS 1965734 1965734 TAXES & LICENSES 140856 93904 41318 5634 PROFESSIONAL DEVELOPMEN 72993 14767 58096 130 SPONSORSHIPS 35589 7200 28326 63 396796 34614 354762 7420 20620759 16419848 3747592 453319 2654762 2116035 10010298 34753607 1078178 976919 1149037 1341421 130127521 149807124 385872 389541 1256991 724560 1096508 532431 29094146 23789769 967853 968483 5546106 7347002 182110281 222022332 1759630 3681550 1053377 849091 157404 149045 107811568 134064871 952397 1471962 111734376 140216519 X 67086212 67131662 3289693 14674151 70375905 81805813 182110281 222022332 X 11439405 834460 -843957 X 0 1 X 1 1 1 X 4918716 19224522 13992572 6269398 19354025 63759233 4918716 19224522 13992572 6269398 19354025 63759233 6723478 57035755 454393 399564 297741 561076 1766050 3478824 67238057 0.84830 0.80270 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 20620759 20620759 1000000 250000 0 0 1000000 879152 949640 1000000 3828792 5743188 79432 56400 135832 250000 219788 237410 250000 957198 1435797 0 1 X 650966 340794 310172 404540 353606 50934 201485 30160 171325 532431 LEASE LIABILITIES 1297921 DEFERRED COMPENSATION LIABILITIES 174041 1471962 X PART IV, LINE 2B: THE ESCROW PAYABLE ACCOUNT IS A PASS-THROUGH FOR BORROWERS FOR WHICH CRAFT3 COLLECTS INSURANCE OR TAX FUNDS SIMULTANEOUSLY WITH THEIR MONTHLY LOAN PAYMENTS AND THEN REMITS THESE FUNDS FOR THEIR TAXES OR INSURANCE. PART X, LINE 2: CRAFT3 IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. CRAFT3 IS SUBJECT TO CERTAIN BUSINESS AND OCCUPATION TAXES, WHICH APPLY EQUALLY TO FOR-PROFIT AND NONPROFIT BUSINESSES, IMPOSED BY STATE AND LOCAL TAXING AUTHORITIES. THE TAXES ARE ASSESSED ON A PERCENTAGE OF CRAFT3'S REVENUES. CRAFT3 HAD NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2023 AND 2022. UNRELATED BUSINESS INCOME TAX, IF ANY, IS INSIGNIFICANT AND NO TAX PROVISION HAS BEEN MADE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. ALL CRAFT3 SUBSIDIARIES ARE ORGANIZED AS LLCS. NET INCOME FROM THE LLCS IS PASSED THROUGH TO CRAFT3, WHICH IS A NONPROFIT CORPORATION ORGANIZED UNDER INTERNAL REVENUE CODE SECTION 501(C)(3). NO LIABILITY HAS BEEN RECORDED FOR UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2023 OR 2022, AND MANAGEMENT BELIEVES NO MATERIAL UNCERTAIN TAX POSITIONS HAVE BEEN TAKEN. 1 COMMUNITY HOUSING FUND 3700 SW MURRAY BLVD 2200 BEAVERTON OR 97005 270049012 501(C)(3) 22000 0 PROGRAM SUPPORT NETWORK FOR OREGON AFFORDABLE HOUSING 12047 SW BROADWAY PORTLAND OR 97205 931037330 501(C)(3) 11334 0 PROGRAM SUPPORT 2 0 DEQ OREGON WILDLIFE RECOVERY 30 206072 DEQ ARPA FINANCIAL AID 8 30847 PART I, LINE 2: CRAFT3 ISSUES FUNDS TO ORGANIZATIONS TO BE USED AT THEIR OWN DISCRETION. CRAFT3 REVIEWS INVOICES AND SUPPORTING DOCUMENTATION PROVIDED BY GRANTEES PRIOR TO THE DISBURSEMENT OF GRANT FUNDS TO INDIVIDUALS IN NEED. X X X X 0 0 0 0 0 0 0 1 0 ADAM ZIMMERMAN CHIEF EXECUTIVE OFFICER 278783 0 21842 0 440 0 16416 0 7895 0 325376 0 0 0 BRUCE BROOKS PRESIDENT 202739 0 15635 0 440 0 14841 0 17109 0 250764 0 0 0 MICHAEL DICKERSON INNOVATION AND EVALUATION DIRECTOR 194443 0 14000 0 360 0 12447 0 2104 0 223354 0 0 0 RONALENE MONTEITH CHIEF CREDIT OFFICER, EVP 161893 0 12669 0 440 0 12445 0 17658 0 205105 0 0 0 MARK STEVENSON NEW MARKETS TAX CREDIT DIRECTOR, EVP 150023 0 12975 0 440 0 11706 0 24519 0 199663 0 0 0 JAMES GALBRAITH LEGAL COUNSEL, VP 166384 0 9419 0 440 0 5698 0 8157 0 190098 0 0 0 MARGARET WEILAND DEVELOPMENT DIRECTOR, SVP 134471 0 8325 0 594 0 8635 0 26242 0 178267 0 0 0 MICHAEL WU IT DIRECTOR, VP 135013 0 11288 0 2732 0 10078 0 17484 0 176595 0 0 0 SONYA LYNN CHIEF OPERATING OFFICER 133129 0 10280 0 440 0 6751 0 18164 0 168764 0 0 0 TURNER WASKOM COMMERCIAL LENDING DIRECTOR, SVP 146723 0 10698 0 660 0 3600 0 1093 0 162774 0 0 0 TERESA PARRIETT CONTROLLER, VP 131900 0 10585 0 1898 0 5246 0 8867 0 158496 0 0 0 DESIREE MICHIELS CONSUMER LENDING DIRECTOR, SVP 127323 0 9661 0 440 0 6768 0 10524 0 154716 0 0 0 JANE REPENSEK CHIEF FINANCIAL OFFICER, EVP 146800 0 0 0 360 0 0 0 5283 0 152443 0 0 0 PART I, LINE 7 THE ORGANIZATION HAS A DISCRETIONARY BONUSING PROGRAM BASED ON THE OVERALL FINANCIAL PERFORMANCE OF THE ORGANIZATION AND INDIVIDUAL PERFORMANCE. THIS BONUSING PROGRAM IS OFFERED TO ALL EMPLOYEES AND OFFICERS EXCEPT THE PRESIDENT AND CEO. THE CEO'S BONUS IS AT THE SOLE DISCRETION OF THE BOARD. THE PRESIDENT'S BONUS IS MANAGED BY THE CEO. BONUSES WERE AWARDED FOR EMPLOYEES, OFFICERS AND THE CEO IN 2023. FORM 990, PART VI, SECTION A, LINE 4 CRAFT3 AMENDED ITS BYLAWS TO UPDATE THE LANGUAGE DESCRIBING THE AUDIT COMMITTEE'S APPOINTMENT AND RESPONSIBILITIES. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY A PUBLIC ACCOUNTING FIRM WITH ASSISTANCE FROM THE CONTROLLER IN PROVIDING DATA. THE RETURN IS THEN REVIEWED BY CRAFT3'S CFO AND CONTROLLER AND PROVIDED TO THE BOARD TO REVIEW BEFORE FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C A CONFLICT OF INTEREST IS A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF AN OFFICER, DIRECTOR, COMMITTEE MEMBER, STAFF, OR CONSULTANTS OF THE ORGANIZATION OR MIGHT RESULT IN A POSSIBLE EXCESS BENEFIT TRANSACTION. IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE SHALL LEAVE THE GOVERNING BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE GOVERNING BOARD OR COMMITTEE MEETING, BUT AFTER THE PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POSSIBLE CONFLICT OF INTEREST. THE CHAIRPERSON OF THE GOVERNING BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER EXERCISING DUE DILIGENCE, THE GOVERNING BOARD OR COMMITTEE SHALL DETERMINE WHETHER THE ORGANIZATION CAN OBTAIN WITH REASONABLE EFFORTS A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE UNDER CIRCUMSTANCES NOT PRODUCING A CONFLICT OF INTEREST, THE GOVERNING BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE ORGANIZATION'S BEST INTEREST, FOR ITS OWN BENEFIT, AND WHETHER IT IS FAIR AND REASONABLE. IN CONFORMITY WITH THE ABOVE DETERMINATION IT SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. IF THE GOVERNING BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE MEMBER'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, THE GOVERNING BOARD OR COMMITTEE DETERMINES THE MEMBER HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. ALL CRAFT3 EMPLOYEES AND DIRECTORS AGREE TO ABIDE BY THE CONFLICT OF INTEREST POLICY RULES BY READING THE EMPLOYEE POLICY HANDBOOK UPON HIRE. ALL EMPLOYEES AND DIRECTORS ARE REQUIRED TO SIGN THE POLICY ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 CRAFT3 UTILIZES A THIRD-PARTY FINANCIAL INDUSTRY SURVEY TO EVALUATE WAGES FOR EACH POSITION. THIS INCLUDES MARKET ANALYSIS, JOB DESCRIPTION ANALYSIS, ETC. THESE ARE RE-EVALUATED ANNUALLY. ADDITIONALLY, ANNUAL PERFORMANCE PLANS ARE COMPLETED BY ALL EMPLOYEES, REVIEWED AND ACCEPTED BY THEIR SUPERVISORS. ANNUAL BONUSES (IF ANY) ARE BASED OFF OF THE RESULTS OF THE INDIVIDUAL'S PERFORMANCE PLAN AS WELL AS COMPANY PERFORMANCE OVERALL. PAY INCREASES ARE DETERMINED BY SUPERVISORS AND THEN APPROVED OR DENIED/MODIFIED BY THE CEO. FOR THE CEO, PAY INCREASES AND BONUSES ARE APPROVED BY THE BOARD AND DOCUMENTED CONTEMPORANEOUSLY IN THE BOARD MINUTES. THIS COMPENSATION REVIEW AND APPROVAL PROCESS IS COMPLETED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST. ANNUAL AUDITED FINANCIAL STATEMENTS ARE ACCESSIBLE ON THE COMPANY WEBSITE: WWW.CRAFT3.ORG FORM 990, PART XI, LINE 9: IMPACT ON NET ASSETS DUE TO ADOPTION OF ASC 326 -843,957. CRAFT3 OTHER OWNED WA PROPERTIES LLC 42 7TH STREET 100 ASTORIA OR 97103 872102127 LENDING WA -595 905 CRAFT3 CRAFT3 OTHER OWNED OR PROPERTIES LLC 42 7TH STREET 100 ASTORIA OR 97103 922520557 LENDING OR 0 0 CRAFT3 CRAFT3 FUTURE FUND 42 7TH ST SUITE 100 ASTORIA OR 97103 455384846 LENDING WA 501(C)(3) LINE 12A, I CRAFT3 1 CRAFT3 INVESTMENT II LLC 42 7TH STREET 100 ASTORIA OR 97103 201179589 LENDING WA CRAFT3 RELATED 0 1 0.99990 CRAFT3 INVESTMENT X LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 813835904 LENDING WA N/A RELATED 18 1178 0 1 0.00010 CRAFT3 INVESTMENT XI LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821550360 LENDING WA N/A RELATED 5 888 0 1 0.00010 CRAFT3 INVESTMENT XII LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821570912 LENDING WA N/A RELATED 6 983 0 1 0.00010 CRAFT3 INVESTMENT XIV LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 850538526 LENDING WA N/A RELATED 10 690 0 1 0.00010 WINDFARM INVESTMENTS 42 7TH STREET 100 ASTORIA OR 97103 271496444 LENDING WA CRAFT3 C 632 1.00000 1 CRAFT3 INVESTMENT XIII LLC 409 MAYNARD AVENUE S SUITE 200 SEATTLE WA 98104 821583020 LENDING WA N/A C 6 1200 0.00010 0 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0