I¥F GUAM HOUSING CORPORATION

GUAM HOUSING CORPORATION REGULAR BOARD OF DIRECTORS MEETING OF Wednesday, February 25, 2015 AGENDA

I. Call to Order II. Roll Call III. Approval of Board Minutes - Regular Board of Directors Meeting of January 21, 2015 IV. Legal Report V. New Business 1) Clarification Affidavit ref: Grant Deed to Maeda Pacific Corporation “Maeda” 2) Changes to Board of Director’s Meeting Date and Time VI. Reports 1) President’s Report 2) Management Reports (Dec ’14 and Jan ’15) A. Accounting Report B. QAO Report C. Loan Activity Report D. Rental Report VII. Public Participation VIII. Miscellaneous IX. Adjournment

AGENDA; REGULAR BOD MEETING OF February 25, 2015

GUAM HOUSING CORPORATION BOARD OF DIRECTORS REGULAR MEETING HELD 21 JANUARY 2015

MINUTES OF REGULAR MEETING

I. Call to Order:

The regular meeting of the Guam Housing Corporation Board of Directors was called to order on 21 January 2015 at 1535 at GHC Offices, Tamuning, Guam.

II. Roll Call of Directors:

Members present included the following;

Francisco Florig, GHC Chairman Romeo Angel, Member Sandra Bordallo, Member Tom Flores, Member

For Management and Employees;

Martin Benavente, President Michael Martinez, Manager Alysia Leon Guerrero, Acctg Manager Carolyn Panes, ASO Clyde Beaver, Q.A.O. Lorretta Iriarte, Clerk Typist II Board Coordinator

Also present was legal counsel Fisher & Associates by attorney Thomas J. Fisher

III. Approval of Board Minutes

Upon motion duly made, seconded and carried, the Board approved the minutes of the Guam Housing Corporation Board of Directors regular meeting of25 November 2014.

IV. Legal Report

Legal counsel deferred to the President's Report

V. New Business

The Board discussed an amendment to the present Corporation budget to allow additional compensation for the President to include retroactive pay. Upon consideration of the application, a motion was made to amend the budget to provide an additional $44,425.30 in compensation for that person. The motion was duly seconded and passed without objection. A motion was made to approve Guam Housing Corporation Resolution 01-2015, A Resolution Approving Passage of Legislation Amending §41004 ofArticle 10, Title 12 ofthe Guam Code Annotated, That Resolution is attached hereto and incorporated in these minutes as iffully set forth herein. The Motion was seconded and passed without objection.

VI. Reports.

A. President's Report. The President updated the First Time Homebuyers Assistance Program. It was reported that the Corporation had issued 239 First Time Homeowners Assistance Program certificates totaling $1,704,337.81. The President reported that the Rental Department's vacancy rate was at 14.62 per cent. The President reported that the net income of the Loan Department for November 2014 was $11, 933.09. The President reported that the Corporation would celebrate its 50th anniversary of existence on 21 August 2015. The President's Report of 05 January 20 IS is attached hereto and incorporated in these minutes as if fully set forth herein.

B. Management Report. A written report was submitted for review.

VII. Public Participation.

None

VIII. Miscellaneous.

None

IX. Adjournment

A motion was then made to adjourn the meeting. This was duly seconded and carried unanimously.

WHEREFORE the Board meeting adjourned.

Approved and accepted as to form and content;

For the Board of Directors;

2 CLARIFICATION AFFIDAVIT

This CLARIFICATION AFFIDAVIT is dated February __,2015, and is by Guam Housing Corporation, an instrumentality of the Government of Guam, whose mailing address is Post Office Box 3457, Hagatna, Guam 96932, ("GHC").

RECITALS: Whereas, GHC executed a Grant Deed to Maeda Pacific Corporation ("Maeda"), as recorded in the Department of Land Management, Government of Guam, under instrument no. 831095;

Whereas, the said Grant Deed transferred to Maeda title to the following "property" described below;

Whereas, the purpose of the transfer was to settle a dispute and to allow for the development of affordable housing for the people of Guam;

Whereas, title to the property is now in the name of parties as set forth below and is now being developed into a project for affordable homes and related beneficial uses;

Whereas, GHC desires to correct and clarify a clause in the said Grant Deed to allow for the development of affordable homes;

NOW THEREFORE, GHC by its representative as set forth below, hereby states and declares the following:

1. Any reference to the Grant Deed shall mean the following:

That Grant Deed With Continuing Conditions and Restrictions, instrument no. 831095, from Guam Housing Corporation, conveying to Maeda Pacific Corporation, the following property:

Lot no. 10120-14, containing an area of32,455 ± s.m. (8.020 acres), Dededo, Guam, as shown on Land Management Drawing No. 14-9IT395, Map Drawing No. PRB90-138, recorded under Instrument No. 450102; and

Lot no. 10120-16, Dededo, Guam; containing an area of 154,395 ± s.m. (38.152 acres), Dededo, Guam, as shown on Land Management Drawing No. 14-9IT395, Map Drawing No. PRB90-138, recorded under Instrument No. 450102.

2. The Grant Deed is hereby clarified by: I A. Adding "or for rent" to section 1, Build houses, first sentence, on page 2, to read as follows:

"In consideration of conveying the within Property to Grantee, the Grantee agrees that it will build and offer for sale or for rent houses on the subject Property all in accordance with Public Law ..."

B. Adding "multi-family dwellings, community center, other amenities and uses, including a rental community as allowed by law" to the last line in the paragraph designated as section 5.1, on page 5 of the Grant Deed, to as follows:

" ... , nor shall such premises be used for any other purpose whatsoever except for the purpose of providing a private single-family dwelling or residence, multi-ramify dwellings. community center. other amenities and uses. including a rental community as allowed by law."

3. Satisfaction of Conditions. GHC has reviewed the proposed development, including the completed portions of the development, and GHC acknowledges that the entire development has met all the requirements of public law and section 3 of the Grant Deed, instrument no. 831095.

END OF CLARIFICATION.

GHC, by and through its authorized representative as set forth below hereby state and declare that the above is true and correct.

GUAM HOUSING CORPORATION

By: ______

Its authorized representative

We, the undersigned owners, or parties having a fee simple ownership interest in the above lots, hereby agree with said correction and clarification.

Core Tech Development, LLC Summer Town Estates DE, LLC

~~~t:....-.-~-~7 .".--"--- By: ~7 By: ~ Ho SangEfuI Ho SangE Its Managing Member Its Mana ng Member

Summer Town Estates II, LLC

BY: --=:;~ ____---r- __ Ho SangEun Its Mana . g Member

2 Territory of Guam ) ) ss: City of Hagatna )

On this __ day of February, 2015, before me, the undersigned notary, personally appeared ______,' the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it as the authorized representative of Guam Housing Comoration , and he signed it voluntarily for its stated purpose.

Notary Public

Territory of Guam ) ) ss: City of Hagatna )

On this f q *day of February, 2015, before me, the undersigned notary, personally appeared Ho Sang Eun, the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it as the Managing Member of Core Tech Development, LLC , and he signed it voluntarily for its stated purpose.

Otali Public AVELINA T. BALDO NOTARY PUBLIC In and for Guam, U.S.A. My Commission Expires: March 04,2017 206 Kayen Che'op MIdmnao DedecIo, Guam 96929

3 Territory of Guam ) ) ss: City of Hagatna )

On this __ day of February, 2015, before me, the undersigned notary, personally appeared Ho Sang Eun, the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it as the Managing Member of Summer Town Estates DE. LLC , and he signed it voluntarily for its stated purpose.

Notary Public

Territory of Guam ) ) ss: City of Hagatna )

On this I q fI'-day of February, 2015, before me, the undersigned notary, personally appeared Ho Sang Eun, the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it as the Managing Member of Summer Town Estates II. LLC ,and he signed it voluntarily for its stated purpose.

lJ6tary Public AVELINA T. BALDO NOTARY PUBLIC In and for GUBJD, U.S.A. My Commission Expires: March 04, 2017 206 Kaym (1le'op Machanao Dededo, Owm 96929

4 Guam Housing Corporation December 2014 Financial Summary Financial Highlights Loans Closed Direct Loan Total Qt.}' Amount Disbursement Oct-14 0 0.00 0.00 Nov-14 1 131,200.00 131,200.00 Dec-14 1 180,000.00 186,750.00 Year to Date - Direct 2 311,200.00 317,950.00

6% Loan Total Qty Amount Disbursement Oct-14 0 0.00 68,580.00 Nov-14 1 150,000.00 177,000.00 Dec-14 0 0.00 49,860.00 Year to Date - 6% 1 150,000.00 295,440.00

Cahat Loan Total Qty Amount Disbursement Oct-14 1 40,000.00 40,000.00 Nov-14 0 0.00 0.00 Dec-14 0 0.00 0.00 Year to Date - CAHAT 1 40,000.00 40,000.00

Combine Total Oct-14 1 40,000.00 108,580.00 Nov-14 2 281,200.00 308,200.00 Dec-14 1 180,000.00 236,610.00 Year to Date Total 4 501,200.00 653,390.00

First Time Home Owners __ Qty Funds from Disbursed Oct-14 8 DOA 60,373.08 Nov-14 8 DOA 52,709.06 Dec-14 15 DOA 116,208.44 Year to Date Total 31 229,290.58

FY 2012 FTHO Disbursements 15 GHC 107,513.31 FY 2013 FTHO Disbursements 50 GHC 357,106.08 FY 2013 FTHO Disbursements 34 DOA 243,058.30 FY 2014 FTHO Disbursements 102 DOA 708,628.13 Disbursed prior years 201 1,416,305.82

Total Disbursed 232 1,645,596.40

Total Disbursed FY 2012 & FY 2013 65 GHC 464,619.39 Total Disbursed FY 2013, FY 2014 & FY 2015 167 DOA 1,180,977.01 232 1,645,596.40

Committed as of Dec-2014 2 GHC 19,054.14 Committed as of Dec-2014 31 DOA 225,679.03 Total Committed Dec-2014 33 244,733.17

Total Committed & disbursed as of Dec-2014 265 1,890,329.57

Funds received from DOA June 13, 2013 1,228,771.42 Funds received from DOA December 05, 2014 900,000.00 Less DOA funds disbursed as of Dec-2014 (1,180,977.01 ) Less DOA funds committed as of Dec-2014 (225,679.03) Funds available under DOA 722,115.38

1 of 7 --,------~Y~e-a-rt~o~D~a~t-e---- - One payoff during the month under GHC's portfolio Month Qty Amount Total principal collected 15,156.29 2 43,690.59 Interest collected 379.76 584.24

No payoffs during the month under the Cahat portfolio Total principal collected o 0.00

No payoffs during the month under the Down Payment Program Total principal collected 3,417.60

Total Payoffs - Principal Collected 15,156.29 3 47.108.19 1

Foreclosures- Principal Balance at time of foreclosure o 0.00

Loans written off (Principal written off) 15,458.61 15,458.61 Settlement for a CAHAT loan. Approved by the Board during the 8/14/2014 board meeting. Received $30,000 1212212014 - applied to as follows: AIR Legal 16,635.41 Loan Receivables - Cahat 11,534.59 AIR Appraisals 1,830.00 $30,000.00

Adjusted the Investment and Cash with trustees Decreased the Interest Income for Investment held by by bond trustee to equal to market value (10,969.97)

Increased the rebate liability. Increase effected by adj. in market value. Which decrease the interest income by 0.00 Note: Arbitrage Yield 5.229417% . Interest earned this month 8,103.81

Note: One employee's salaries & benefits has been being accrued since 216/2013 to 12131/2014 123,917.03 Annual Leave as of PPE 12127/2014 (723 bal.) 16,925.43 Sick Leave as of PPE 12127/2014 (1,892 bal.) 22,145.86 Legal Fees paid from January 2013 - December 2014 22,118.39 Total as of December 2014 185,106.71

December December GHC Loan Portfolio decreased from last year 2014 2013 Difference Loans Receivable - Unrestricted 27,817,628.52 22,965,644.78 4,851,983.74 Loans Receivable - Restricted 0.00 6,039,698.97 (6,039,698.97) 27,817,628.52 29,005,343.75 (1,187,715.23)

Principal payoffs between the two periods (1,023,984.83) Foreclosures - Principal amount between the two periods 0.00 Write Offs - Principal amount between the two periods (369.94) Total loan disbursements between the two periods 919,537.00 Difference (regular payments) 1,082,897.46 Average monthly payments 90,241.46

Interest income on loans receivable to decreased compared to last year 397,572.26 418,118.84 (20,546.58)

Weighted average interest rate decrease compared to last year 5.72214% 5.83111% -0.10897%

2 of 7 Interest income on bank deRosits decreased comRared to last llear 3,435.19 3,505.23 (70.04) due to the decrease in cash at FHLB ($291,832) Weighted average interest rate on TCDs & Treasury Bills 0.31780% 0.30421% 0.01359% Weighted average interest rate on FHLB account 0.014% 0.001% 0.013%

Notes Payables decreased by 0.00 820,716.74 820,716.74 Average monthly principal payments 68,393.06 FHLB note was paid off 8/1/2014

Causing a decrease in Interest Expense compared to last year 0.00 15,131 .36 (15,131.36)

Investments and cash with trustees decreased 3,822,779.46 4,130,136.91 (307,357.45)

Interest earned between the two fiscal years 101,868.28 Total adjustment to Market Value between the two fiscal years 5,876.27 Disbursements for principal payments on bond between the two fiscal years (150,000.00) Disbursements for interest payments on bond between the two fiscal years (251,895.00) Disbursement for trustee fees between the two fiscal years (13,207.00) Rebate Liability paid between the two fiscal years 0.00 (307,357.45) (0.00)

Interest on investments held by bond trustees decreased 25,446.54 44,775.08 (19,328.54)

Interest earned 23,946.92 27,703.43 (3,756.51) Adjustment to market value 1,499.62 28 ,562.95 (27,063.33) Adjustment to the rebate liability 0.00 (11,491.30) 11,491.30 Adjustment due to the Interim Arbitrage Rebate Analysis Report 0.00 0.00 0.00 25,446.54 44,775.08 (19,328.54)

Foreclosed assets held for resale increased 399,949.01 399,949.01 0.00 Number of units 5 5 0

Acquired 0 houses through foreclosures or deed between the two periods 0.00 Sold 0 properties between the two periods 0.00 Adjustment to appraised value 0.00 Added cost less adjustments 0.00 0.00

Allowance for loan losses decreased (576,417.71) (629,987.92) (53,570.21 )

Adjustment to decrease Allowance to 2 % of Loan Portfolio (37,741.66) Used between the two periods - (for two loans) (15,828.55) Credits between the two periods 0.00 (53,570.21 ) (0.00)

3 of 7 December December 2014 2013 Difference Salaries increased due to increments, temporary hire & President's raise 342,674.95 336,843.85 5,831.10 Number of Employees 27.00 25.00 2.00 Number of Working Days 22.00 22.00 0.00 Break down Salaries 339,617.37 312,804.62 26,812.75 Merit 0.00 6,469.66 (6,469.66) Defer for Loan Origination (2,418.39) (713.40) (1,704.99) Annual Leave Taken (31,064.97) (15,534.97) (15,530.00) Sick Leave Taken (50% of DC Members only) (6,994.87) (3,425.16) (3,569.71) Annual Leave Earned 33,802.19 30,566.15 3,236.04 Sick Leave Earned 9,733.62 6,676.95 3,056.67 342,674.95 336,843.85 5,831.10 0.00 0.00 0.00

Net income for the month of November 2014 11,933.09 Net loss for the month of December 2014 (73,207.66) Difference (85,140.75)

Decrease caused by: Decrease in Interest on Investment due to the decrease in market value (16,681.35) Decrease in Loan Origination Fee. One less loan closed in Dec-2014 (2,024.00) Increase in Salaries due to the accrual of the President's retro & less annual leave taken in December 2014. (30,195.12) Increase in Retirement due to the increase in Salaries (4,266.40) Paid in December 2014 COLA $36,000 & Supplemental $22,197.93. Expense is for Oct-2014 through Dec-2014 (14,549.46) Increase in Contractual Expense (telephone, garbage removal, motor vehicle repair & paid for two typewriters to be fixed) (2,663.89) Adjustment to made to Inventory based on actual count $18,691.86. Note: the inventory report for December 2014 was not completed, so December's issued is not included in Dec-2014 financials (14,274.78) Total (84,655.00) (485.75)

Net income year to date (55,346.14) 24,345.30 (79,691.44)

Housing Rental Total Net income/(Ioss) year to date 16,804.91 (72,151.05) (55,346.14)

Loss due to: Vacancy year to date (41,798.94) Vacancy rate 14.69%

Salaries - FY 2015 salaries expense for John P. (18,066.46) (Accrual for John P. as of Dec-2014 - $123,917.03 plus annual leave $16,925.43, sick leave $22,145.86 & legal fees $22,118.39)

Increase in salaries due to President increase, Temporary hire & increments (8,750.85)

Increase in Retired Employee's expense due to increase in COLA (5,034.54)

Increase in depreciation due to renovations at Lada (2,991.12)

Emergency Housing Expense (2,179.43)

Increase in Maintenance Expense due to changing of doors at Lada & Inventory adjustment to actual materials in office ($18,691.86) (27,230.78)

Payment for power & water due to renovations, vacancies & homeless (2,235.61)

4 of 7 Budget Prorated Budget 12/14 Actual Difference Operating Revenue 685,949.34 689,641.06 3,691.72 Non Operating Revenue/Expense 113,342.67 6,580.76 (106,761.91) Total Revenue 799,292.01 696,221.82 (103,070.19)

Expenses 799,070.31 751,567.96 (47,502.35) Net Gain (Loss) 221.70 (55,346.14) (55,567.84)

Specific Budget Concerns 2014 (Over)/Under Budget Actual Budget Interest on loans receivable 398,559.84 397,572.26 987.58 2015 Budget - loan portfolio $30,910,035 at 5.73%. Actual $27,817,629 at 5.72% budget delinquency rate 10%. Actual delinquency rate 17.8%

Interest on investments held by bond 28,032.99 25,446.54 2,586.45 Due to a decrease in market value

Loan origination fees 10,332.51 10,024.00 308.51 Less loans closed than budgeted

Late fees, service fees & return check fees 11,160.00 10,872.20 287.80 Decrease in late fee collections

Salaries 335,694.00 342,674.95 (6,980.95) Due to lump sum payment to President for retro pay. Budget is prorated

Maintenance Expense 16,324.95 32,637.25 (16,312.30) A physical inventory was completed in Dec-2014. There was $18,691.86 worth of materials on the inventory report but was not at the Rental Office.

Other Income 111,087.42 3,144.90 107,942.52 Budget income from Housing Trust Fund $249,811.70/12 *3 = $62,452.92 Actual - no income from source year to date. Also budget to adjust the Reserve for Loan Loss by $192,487.92. 192,487.92/12 = $16,040.66 * 3 = $48,121.98 No adjustment has been made yet

5 of 7 Portfolio At-A-Glance December 2014 Principal No. of Portfolio Balance Balance Loans SRF (Direct) 15,4 70,560. 70 152 RF (Direct) 38,505.84 6 R5 (Revolving Loan Fund) 12,308,561.98 157 Subtotal GHC 27,817,628.52 315

Hazard Mitigation 10,435.22 1 Cahat 1,797,382.00 74 Down pymt (Not included when calculating delinquency %) 252,286.16 31 2,060,103.38 106

Total 29,877,731.90 421

Principal Number Current delinquency (GHC portfolio only) Balance % of loans 30 to 59 days delinquent 1,986,627.88 8.0289% 20 60 to 89 days delinquent 101,081.57 0.4085% 2 90 days to 119 days 0.00 0.0000% 0 120 days & over 0.00 0.0000% 0 Total Delinquent ""2]87,709.45 8.4374% 22

Referred to Legal 3,074,190.91 11.0512% 36 Total Delinquent & referred to legal 5,161,900.36 18.5562% 58

Current delinquency (HM & Cahat) % 30 to 59 days delinquent 46,666.81 2.6388% 2 60 to 89 days delinquent 0.00 0.0000% 0 90 days to 119 days 0.00 0.0000% 0 120 days & over 36,111 .15 2.0419% 1 Total Delinquent 82,777.96 4.6808% 3

Referred to Legal 39,342.61 2.1762% 3 Total Delinquent & referred to legal 122,120.57 6.7551% 6

Total Delinquency (Does not include Down Payment Loans) % 30 to 59 days delinquent 2,033,294.69 7.6694% 22 60 to 89 days delinquent 101,081 .57 0.3813% 2 90 days to 119 days 0.00 0.0000% 0 120 days & over 36,111.15 0.1362% 1 Total Delinquent 2,170,487.41 8.1868% 25

Referred to Legal 3,113,533.52 10.5097% 39 Total Delinquent & referred to legal 5,284,020.93 17.8361% 64

6 of 7 Tenant Accounts Recievables FY 2015 FY 2014 Difference Lada 104,075.11 81,483.11 22,592.00 As-Atdas 34,563.51 22,165.03 12,398.48 Sagan 16,218.01 1,888.10 14,329.91 , Total 154,856.63 105,536.24 49,320.39

Allowance for Uncollectibles Lada (63,968.63) (32,796.00) (31,172.63)1 As-Atdas (24,068.00) (6,528.00) (17,540.00)1 Sagan (9,104.99) (600.00) (8,504.99)1 Total (97,141 .62) (39,924.00) (57,217.62)

Net Tenant Receivable less Allowance for Uncollectibles 57,715.01 65,612.24 (42,887.71) % of Receivable 62.73% 37.83%

Fiscal Year 2015 Rental Vacancy Net Income Lada 224,325.00 (25,959.30) 198,365.70 As-Atdas 43,200.00 (12,328.05) 30,871.95 Sagan 17,100.00 (3,511.59) 13,588.41 Subtotal 284,625.00 (41,798.94) 242,826.0Ef

Oreo properties 2,900.00 2,900.00 Total 287,525.00 (41,798.94) 245,726.06 •

---- Fiscal Year 2014 Rental Vacancy Net Income Lada 204,975.00 (17,390.00) 187,585.00 As-Atdas 40,800.00 (4,866.62) 35,933.38 Sagan 17,100.00 (6,621.53) 10,478.47 Subtotal 262,875.00 (28,878.15) 233,996.85

Oreo properties 3,100.00 3,100.00 Total 265,975.00 (28,878.15) 237,096.85

2015 2014 Difference Vacancy Rate 14.69% 10.99% 3.70011%

7 of 7 Guam Housing Corporation Statement of Net Position As of 12/31/2014

Current Year Pnor Year

Assets Unrestricted Assets Cash and cash equivalents 2,878,535.28 3,244,976.02 Self-insurance fund 998,251.65 910,765.71 Loans receivable 27,817,628.52 22,965,644.78 Net deferred origination expo & rev. 0.00 2,995.38 Allowance for loan losses (576,417.71) (629,987.92) Tenant receivable, net 57,840.01 66,158.52 other receivables (22,880.74) 2,574.90 Accrued interest receivable 69,423.06 76,671.39 Prepaid expenses and other 126,543.38 129,155.73

Foreclosed assets held for resale 399,949.01 399L9'\2.01 Total Unrestricted Assets 31,748,872.46 27,168,903.52 Restricted Assets Cash and cash equivalents 3,066,513.25 2,143,316.63 Investments with trustee 3,822,779.46 4,130,136.91 Foreclosure Fund 501,000.00 500,242.86 Loans receivable 0.00 6,039,698.97 other loans receivables (CAHAT, Sagan, DPCCA & HM) 2J 06O ,103.38 2,185,810.46 Total Restricted Assets 9,450,396.09 14,999,205.83 Capital assets, net 6,676,663.04 6,685,528.24 Total Assets 47,875,931.59 48,853,637.59

Liabilities Payable from unrestricted assets Accounts payable and accrued expenses 211,742.59 198,023.64 Accrued compensated absences 357,617.93 320,506.60 Unearned revenue 45,730.72 52,776.24 Total Payable from unrestricted assets 615,091.24 571,306.48 Payable from restricted assets Accounts payable 947,794.41 813,004.44 Bonds payable 4,415,000.00 4,565,000.00 Notes payable 0.00 820,716.74 Accrued interest payable 81,290.00 88,524.44 Security deposits 61,999.93 63,321.93 Deposits by borrowers 541,200.22 455,575.36 Loans held in trust 253,346.43 278,296.38

Rebate liability 741 070.12 78928.24

Total Payable from restricted assets 6}374701.11 711&1367.53 Total Liabilities 6,989,292.35 7,7I1t674.01

Net position Invested in capital assets, net of related debt 6,706,125.86 6,696,232.76 Restricted 3,284,430.92 7,521,754.04 Unrestricted 30,895,582.46 26,900,976.78

Total Net position 40,886,139.24 411 118,963.58

Total liabilities and net position 47,875,931.59 48,853,637.59

Date: 1/26/1511:01:45 AM Page: 1 Guam Housing Corporation Statement of Net Position As of 12/31/2014

Housing Division Rental Division Total

Assets Unrestricted Assets Cash and cash equivalents 1,835,761.48 1,042,773.80 2,878,535.28 Self-insurance fund 0.00 998,251.65 998,251.65 Loans receivable 27,817,628.52 0.00 27,817,628.52 Net deferred origination expo & rev. 0.00 0.00 0.00 Allowance for loan losses (576,417.71) 0.00 (576,417.71) Tenant receivable, net (750,000.94) 807,840.95 57,840.01 Other receivables (22,880.74) 0.00 (22,880.74) Accrued interest receivable 68,015.86 1,407.20 69,423.06 Prepaid expenses and other 64,560.81 61,982.57 126,543.38 Foreclosed assets held for resale 399,949 .01 0.00 399,949.01 Total Unrestricted Assets 28,836,616.29 2,912,256.17 31,748,872.46 Restricted Assets Cash and cash equivalents 2,956,074.21 110,439.04 3,066,5l3.25 Investments with trustee 3,822,779.46 0.00 3,822,779.46 Foreclosure Fund 501,000.00 0.00 501,000.00 Loans receivable 0.00 0.00 0.00 Other loans receivables (CAHAT, 2,060,103.38 0.00 2,060,103.38 Sagan, DPCCA & HM) Total Restricted Assets 9,339,957.05 110,439.04 9,450,396.09 Capital assets, net 0.00 6[676[663.04 6[676,663.04 Total Assets 38,176,573.34 9,699,358.25 47,875,931.59

Liabilities Payable from unrestricted assets Accounts payable and accrued 57,306.04 154,436.55 211,742.59 expenses Accrued compensated absences 189,177.14 168,440.79 357,617.93 Unearned revenue 43[200.76 2[529.96 45.130.72 Total Payable from unrestricted assets 289,683.94 325,407.30 615,091.24 Payable from restricted assets Accounts payable 947,794.41 0.00 947,794.41 Bonds payable 4,415,000.00 0.00 4,415,000.00 Notes payable 0.00 0.00 0.00 Accrued interest payable 81,290.00 0.00 81,290.00 Security deposits 900.00 61,099.93 61,999.93 Deposits by borrowers 541,200.22 0.00 541,200.22 Loans held in trust 253,346.43 0.00 253,346.43 Rebate liability 74,070.12 0.00 74,070.12 Total Payable from restricted assets 6,3l3,601.18 61 [099.93 6[374[701.11 Total Liabilities 6[603[285.12 386,507.23 6,989,792.35

Net position Invested in capital assets, net of related debt 0.00 6,706,125.86 6,706,125.86 Restricted 3,241,395.58 43,035.34 3,284,430.92 Unrestricted 28,331,892.64 2[563[689.82 30,895,582.46 Total Net position 31,573,288.22 9,312,851.02 40,886,l39.24

Total liabilities and net position 38,176,573.34 9,699,358.25 47,875,931.59

Date: 1126115 10:48:38 AM Page: 1 Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 121112014 Through 12/3112014

Prior Year Current Current Period Actual Period Actual

Operating Revenues: Interest on Inans receivahle 120"+LJ5 .50 152..+29 15 Rental Illcollle ~ I ,tWLJ. ~2 7Y .D5 .()O

Interest Oil investments held hy h(lf1(ltrustee~ (\I~,'i"+X) 18.,'i6tJ.O'+ Loan origination fees ,,600.00 o.O() Late fees. service fees & return check fees 3 ,OY6 .LJ.+ '+.2'+0. 10 Tutal Operating Re\'enue~: 205,RI6.28 25-t.+ 70.2l}

Operating Expenses: Interest expense MRS 20.122.50 20. LJY 1.25 Interest expense nutes payahle 0.00 .+.55LJ"+'+

Salarie~ 125,Y35 .66 IOLJJR2.6'+ Bad dehts and pnl\ i\ion fur luan lusses 0.00 0.00 Retirement contrihuti()n~ 36.604 .67 33,761.26

Retiree supplemental. cola & health henefit~ 2~,446AO 17.l)OX.OO First Time Hlllllell\\ ner\ A~sistallce Program Il.OO (l.OO Depreciation 14.712.3LJ 13.741UX Contractual ~er\'iC\:\ ~,382.6Y 6,17,'i.,'iO Professional servicc~ (1 •.'iY4.37 4.Y52.67 Rent ~.75-UO X.75'+.50 Othcr 2.874 .62 .".82IU5 Loan 01 igination co~t~ 672..+3 O.I){) Travel (l.OO 0.00 Employee henefits. uther than retirement 7 .2X UO 5. Y07 .1)7 tvlaintenance I X.% 1.(iO XOX.O'+ Bond tru:-.tee Ices I.ILJUn 1.()X3.,'iO Director~' fees 150.00 200.00 Loss on disposal of asset~ 0.00 0.00 Total Operating Expen~es: 280,885.36 132,045.50

Non-operating Revenue (Expen~es) Interest income on bank deposits 1,252..+8 57.7'+ Gain/(Ioss) on assets 0.00 0.00 Other income 608.9.+ 200.00 Total Non-operating Revenue (Expenses) 1,861.'+2 257.7'+

Change in net position (73,207.66) 22,682.53 Total net position at beginning of month 40,959,346.90 41,096,281.05

Net position at end of year 40,886,139.24 41 ,118,963.58 Guam Housing Corporation Statement of RevenLle~, Expen~es and Changes in Net Po~ition From 12/1/2014 Through 12/31/2014

Housing Division Rental Di\ ision Total

Operating Revenues: Interest on loans receivahle 120,495.50 0.00 120,495.50 Rental Income 1.000.00 80.H09.32 81.809.32 Inten:st un investments held hy h()nd trustees (3.1 H5.-+H) 0.00 LU 85.4H) Loan origination fees l600.00 () .00 HiOO.nO Late rces. ser\'ice fees & relllrn check fees 2.736.94 ·W).OO 3J)Y6.Y4 Total Operating Re\,enues: 124,646.% 81.169.32 205,816.2H

Operating Expenses: Interest expense MRB 20,322 5n 0.00 20.322.50 Interest expense notes payahle 0.00 0.00 0.00 Salaries n . 19H.YY 52.736.67 125.935.66 Bao dehb and prm i~ion ror loan lo~~e~ 0.00 n.oo n.oo Retirement cnntrihution, 21.032.74 15.571.Y3 '6.6n4.67 Retiree ,upplelllentai. cola & health henelits 2(U 15.08 H.131 ,2 2H.446'-+0 Depreciation 0.00 14.712.39 14.712.3Y Contractual ,en icc, 3.73Y.67 4.643.02 H.3H2.6Y Prore~sional ,en icc, 5.536.70 1.057.67 6.5Y4J7 Relll 8.754.50 000 H.754.50 Other 4H2.90 2,391.72 2.874.62 Loan origination co,!,> 672.43 0.00 672.-+, Employee henel'it,. \lthel than rClirement ·+.419.53 2.H62.17 7. 2H l.70 Maintenance 0.00 18.961.60 I X.lJ61.60 Bond tru~tee ree, I.IY un 0.00 I.ILJ I.H3 DirectlJl'~' fee~ 150.00 0.00 150.00 Total Operating Expenses: I WH 16.X7 121 J)68 4Y 2X(l.XX5 ,6

Non-operating Re\enue (Expenses) Interest income on hank deposits H11.63 440.85 1,252.48 Other income 20.00 588.94 608.94 Total Non-operating Revenue (Expenses) 831.63 1,029.79 1,861.42

Change in net position (14.338.28 ) (38,869.38) (73,207.66) Total net position at heginning of month 31,607,626.50 9,351,720AO 40,959,346.90

Net position at end of year 31 ,573,288.22 9,312,851.02 40,886, 139.24

!latc 1I1fl115 10 ~tl·'i1 AM Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 10/112014 Through 12/3112014

Current Year Actual Prior Year Actual

Operating Revenues: Interest on loans receivable 397,572.26 418,118.84 Rental Income 245,726.06 237,096.85 Interest on investments held by bond trustees 25,446.54 44,775.08 Loan origination fees 10,024.00 7,064.61 Late fees, service fees & return check fees 10,872.20 11,571.77 Total Operating Revenues: 689,641.06 718,627.15

Operating Expenses: Interest expense MRB 60,967.50 62,973.75 Interest expense notes payable 0.00 15,131.36 Salaries 342,674.95 336,843.85 Bad debts and provision for loan losses 0.00 0.00 Retirement contributions 105,917.44 100,602.24 Retiree supplemental, cola & health benefits 56,240.28 37,574.80 First Time Homeowner's Assistance Program 0.00 0.00 Depreciation 44,070.83 41,079.91 Contractual services 23,005.22 22,489.69 Professional services 22,436.14 14,936.00 Rent 26,263.50 26,263.50 Other 9,795.76 9,199.82 Loan origination costs 2,927.46 4,389.28 Travel 0.00 0.00 Employee benefits, other than retirement 20,656.14 17,495.91 Maintenance 32,637.25 5,406.47 Bond trustee fees 3,575.49 3,250.50 Directors' fees 400.00 400.00 Total Operating Expenses: 751,567.96 698,037.08

Non-operating Revenue (Expenses) Interest income on bank deposits 3,435.86 3,505.23 Gainl(loss) on sale of assets 0.00 0.00 Other income 3,144.90 250.00 Loss on disposal of assets 0.00 0.00 Total Non-operating Revenue (Expenses) 6,580.76 3,755.23

Change in net position (55,346.14) 24,345.30 Total net position at beginning of year 40,94 I ,485.38 41,094,618.28

Total net position of end of year 40,886,139.24 41,118,963.58

Date: 1126115 10:57:06 AM Guam Housing Corporation Statement of Revenues, Expense~ and Changes in Net Position From 1011 /2014 Through 12/31/2014

Hou!>ing Di\ bion Rental Dh'ision Tolal

Operaling Revenues: Inieresl Oil loans receivahle ,\l)7 , 'i 7 ~ .26 () .()() 307 ,5 72 .26 Relltal Income ~ , 90().OO 2'+2 .H26 .06 2'+5 .72(1 .06 InlereSI on investments held hy bond InlsteL''' ~5A'+6 . 54 000 25.4.+6.5.+ Loan nriginalion rees I (),O~H)O o.on 10.02.+.00 Lale rees. service fees & return check fees 0,~02.20 1,670.00 10,872 .20 Total Operating Revenues: .+.+5.1.+5.00 2.+.+ ,'+96J)(1 689 ,6'+ 1.06

Operating Expenses: Interest expense rvlRB 60.lJ6 7.50 () 00 6().lJ67 .50 Inlerest expense notes payahle 0.00 (LOO OJ)() Salaries 104 ,%8.92 1'+7 .706.m 3-12 .674 .95 Bad deblS and provision for luan losses ( l.O() () .00 0.00 Retirement contrihutions 00.476.65 -15,-1-1070 I 05.LJ 17.4-1 Retiree supplemenlal. cola & health henefits 36 .%5.16 10,275.12 56.240.28 Dcprecialion 0.00 -I-I .070.ln -14,070.83 C()nlraclUal serviees 10,001.50 12.01372 2'\.()O5 .22 Professional services 19.587.14 2.8-10.00 22.436. 1-1 ReOI 26.263.50 0.00 26 .263 .50 ( llher 2. llJlJ.30 7.5%. '\7 LJ .7lJ5 .76 Loan originalilln cosls 2,lJ27 .46 (l.()O 2.lJ27 .46

EllIpltl)'eL' hL'ncfits. other Ihan retirement 12 .311.66 tU.+.+ -18 ~() .o56 . 1'+ Maintenance 0.00 '\2 .6·n.25 ,2.0'\7.25 Bllnd IrU~ICC ree~ o .O() '\.575 ...\0 DircL·tlll·" Iee~ -100.00 0.00 -IOO .O() Total (lperating E'(pen~e" -I '\O.TI-I. '\7 '\20.83 '\.5lJ 751.5fl7.%

Non-operaling Revenue (Expenses) [nterest income on bank deposits 2,12-1.28 1,311.58 3,435.86 Olher income 270.00 2,874 .90 3, 1-1-1 .90 Tolal Non-operaling Revenue (Expenses) 2,39-1 .28 '+ ,186.'+8 6,58().76

Change in nel position 16,804.91 (72, [5 1.05) (55,346,14) Total nel position al beginning of year 31,556,483.31 9,185,002.07 -10,941,485.38

Total net position of end of year 3 [,573,288.22 9,3 [2,85 [ .02 40,886,139.24 Guam Housing Corporation Budg.:t \, ALtual hom 1011 /2014 Through 12/31/2014

Total Budg.:t <, - ) TI) Budget" - Cum:nt Year (hel (Und':l) R.:mallllng Original OnginJI Actual Budget \ ananL': Balancc

Operating Rcn:nucs: Interest on loans recci vahle 1.594.239.30 398 ..~:;t).84 397.572.26 (9X7j~) !o.2401)';1 ) 1.196.667.04 Rental Income 951.45600 2~7.864.00 245.726.06 7.862.06 3JOOO,;} 705.729.94 Interest un in\'cstl1lcnts held hy hund 112.132.00 2X .032 1.)9 25,44654 (2.586A~) (

LO~ll1 urigination rt.!t.!~ 41.330.00 1(1.3.12.51 10.024 (10 ('OS.51) (2 9S(lOS, 1 31.JOb.OO Lat.: J\:cs. scrvice J\:es 8: return check J\:cs -14.(,-1000 II 1('000 10 S72 20 (2S7 SO) _ J.2~'-~)Q';i ) - 3J:Zf>7 ..l!0 Total Orclating Re\enue,: 2.741 797 10 6';" 4) Or, 'Nil 72 1l5 .~S2 ';; 2 (J~-I.15(' . 2-1

Operating Expcnses: Interest c.\pens.: /\'I R H 2-11.622AI {10,405.60 60.%7 ~(I (~(, I ')4.00 342.(,74 J'1I\'i,illn 1'''1' I"an IllS,CS lJS.7(JO.OO 2-1.675.01l O(l() 24.1>7~ 00 (lllO.OOOO',j 1 9X.700.00 RetirL'lIlelll contrihution, 42 I 07 ..11>0,42

Retiree supplelllentai. cllia & healt h 22~.321.r,H ~6.3J() -I, 5h.240.2X 1)0.15 (0.1 (,OW; ) 1(,'1.0~1.40 benefits

Dcprcciation IlJl.144.n 47.7SI> 1'1 44.070.113 ,71:UIl 17.nOO" ) I 47.07J.l)(I

C(lntra~tllal ;..t.'n iL'L'~ 127 ..171.1>7 11 ::;-12% 23.005.22 ii.S.177-1 (27 .75(JO'; 1 IO-l ..~hh.-I5

Prllll:!\~i(Jnal ~t.!n iL't.!~ 105.2(>0.00 21> .1141)X 22,43(1.14 3.X7S.X-I tI4.7400',; 1 X2.X2Uo Rent 15(J.X70.00 '7.717~O 26.263.50 I 1.454.()O 130.3I>OOt;; 1 124.606.50 Other X7,444.70 21 S(, I 2-1 lJ.7'15.7(1 12.0(,54X 1:'5 . Il)OO '.'1 n.Il-ls.lJ-I Loan nriginaliun L~lhl~ 24.000.00 I>.O()OOO 2.1)27.-10 1.On 5.J 151.200(J':; 1 21.072.5.J Tr;J\cl n.oo D.OO 11.00 0.00 0.0000';; O.()() ElIlplu)'l!e bendil,. (llhcr Ihall Icillellleni XC>.292.00 21.572 1J7 20.651>.1.J 112 ..~OI l}<).92()()',j .12.002.75

Bond trllst~c i'cc, Ih ..J(ln.O(J -I.I()()OI 1.575 ..Jl} "\24.52 112.71)()(J',; 1 12.X2.J51 ))if'\.'t,:IIIIS' kc:-. .J.2Dn.OO I.IJ5(1 (JO .J(J(J.OO (J50 00 .1 (d.l)(lIl!)'; 1 .l.X~)(J.OII Total Ul'eraling !:\PC'lhC, .'.ll)C>.2R(I.H5 71}I}.070.31 751.5C>7.% .J7 . ~02 3~ (5 . 1)~4N I 2. .J44.712.~9

NUII-opcraling Revenu.: I 1'\[1ell,e, 1 InlereSi inCtllllC on bank lkposih 1).021 D() 2.25) 2' ~A '\5 gh 1.1 SO.61 ~2 l.JOO' 5.5X5 I.J ()lhcl incolllc' .J-I4. ~.Jl) h2 111.mn -12 '.1-I.J911 I I (J7.'!.J2 'i21 IlJ7 IhOO' .J.J 1.20.J 72 lOlal i\un-operating ({C\CIIUC 11'.\l'cn,.:, I .J5J.J70.C>2 II '.1.J2 ('7 (,.'iXO 7h IIOb.7!> I Iii 1 Il).J 1919' 4.J6.7XlJ Xh

Change in nct position SR7.07 221 70 (55.3.J6.1.J) (55.567 S.J) (2506.J.J 190' 56.233.21 ,';;1', 1 I~V ~~;m;:{)1 ~IN~II :;'ltr.(I

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17 I Oe!1 Ele I JO S\i 'iMOl.::l 4SUJ JO lUdllldlB1S uoneJodJoJ ~ulsnoH lUen~ GUAM HOUSING CORPORATION DAIL Y CASH POSITION

FOR THE PERIOD ENDED December 31, 2014

CASH ON HAND = CHANGE FUND 50 .00 PETIY CASH FUND 200.00 Total cash on Hand $200.00

CASH IN BANK - TCD AND TRUST ACCOUNT: ACCRUED DATE DATE NO . INTEREST TCDfTRUST ACCT. BANK PURCHASED MATURED DAYS RATE AMOUNT EARNED

0 CMA - Operations· Cash MC 5MC·152334 30·Nov·14 31·Dec·14 31 0.00000 0 000 0.00 0 CMA Oper Deutsche Bk FDIC Ins DelMC 5MC·152334 30·Nov·14 31 Dec· 14 31 000000 0 45 69 0.00

TCDs . Operations

a 4569 000

0 CMA ACCT· T/F MC 5MC-189914 30·Nov-14 31·Dec·14 31 0.00000 0 000 0.00 0 CMA - TF Deutsche Bk FDIC Ins. Dep MC 5MC·189914 30·Nov·14 31 Dec·14 31 000000 0 20798 0.00

0 Bankunlted Nail Assn MC 5MC·189906 19·Dec·14 19Jun 15 182 030000 0 135 000.00 201.95 0 Bank of Baroda MC 5MC·189906 09·Dec·14 09·Sep·15 274 0.40000 0 136,000 00 408.37 271,20798 201.95

CMA . Cahat . Cash MC 5MC·152763 30·Nov·14 31·Dec-14 31 0000000 0.00 0.00

0 0.60 0.00

CMA . Revolving Loan Fund Cash MC 5MC-I46229 30·Nov·I4 31·Dec·I4 31 0.00000 0 0.00 0.00 0 CMA - RLF Deutsche Bk FDIC Ins Dep MC 5MC·146229 30·Nov·14 31-Dec-14 31 000000 0 21.02 0.00 TCDs . Revolving Loan Fund

0 2102 000

0 CMA - Foreclosure Fund Cash MC 5MC-I89906 30-Nov-I4 31-Dec-I4 31 000000 0 0.00 000 0 CMA - FPF Deutsche Bk FDIC Ins Dep MC 5MC-I89906 30-Nov·I4 31-Dec-I4 31 000000 0 (0.00) 000

0 Firslbank P R Sanlurce MC 5MC·I89906 08-Dec·I4 05-Jun-I5 179 040000 0 96 .000 .00 18832 0 Goldmans Sachs Bk USA New York MC 5MC-I89906 27-Aug-I4 27-Aug·I5 365 0.40000 0 250,000.00 1,000.00 0 Goldman Sachs BK USA New York MC 5MC·189906 lO-Dec-I4 10·Dec·I5 365 040000 0 155.000.00 620.00 2 I 18832 ·soTooo-- _.- .Dci'.- 3 S772,274.69 $139027 Cahat (PL21-136) Checking Account: AlC 0601-022867 168,647.49 202,618.00 FTH-RF (PL24-180) Checking Account: AlC 0031-033250 o FTH-RF (PL31-166) Savings Account: CF AlC 144340-01 100.08 HMRLF (Grant JV2011-174 5/2011) Checking Account: BOG AlC 0602-010855 151,532.10 FHLB of SEATTLE FUND AlC 990020019 4148693 NOTES PAY. FUND BOG Operations Fund/Checking Account: Beginning Balance, 11/30/2014 BOG = AlC 601-018773 51,880,706.61 o 419,795.09 Deposits (IN-TRANSIT) 331.76 Disbursements ----.--.-.•. --..•. -.-. LOANS (186,750.00) INTERFUND (78.82071 ) ALL OTHERS (241,21632) 1506787.03) Approved Disbursements· Loans 000 NET SRF MONEY Approved Disbursements - All Others 0.00 51,794,046,43 $892,732.79

Bank of Guam Revolving Loan Fund/Checking Account: Beginning Balance, 11130/2014 BOG =AlC 0601-022902 51 ,166,777.53 Deposits 34,814.08 Disbursements .---. -.... --- -.. LOANS (4986000 Nel R LOAN FUND OTHERS 000 51,151,731.61 $218,993.10 Bank of Guam Trust Fund/Checking Account: add am unl n rlf t d $219,014 Beginning Balance, 11 302014 BOG =AlC 0601-022895 5109,377.22 Deposils 29,95851 Disbursements 1667191 5122,663.82 FTH-RF (PL31-166) Checking account Beginning Balance 11 302014 CFCU = AlC 144340-02 5195,026.67 Deposits 904,495.09 Disbursemenls (119! 32452) 5980,197.24 ..J734,364.07 Bank of Guam Borrower s Deposit/Checking Account: Beginning Balance 11 30 20 11 BOG =AlC 0601-022882 5201 ,687 .52 DepOSits 1535 Disbursements (91,73000) 5109,972.87 TOTAL CASH IN BANK $4,520,379 TOTAL CASH AVAILABLE 55,292,853.26 Less : Borrower's Deposils held In Trust: Trust Fund (Insurance & R.E.Taxes) (43127071) Loan Service (Borrower's Deposits ) ($109,92951) TO TAL BORROWER S DEPOSITS IS541 ,200 22) Less: Loan Commitments Balance: Prior Approval (6) 688.000 = SRF (688 000.00) New Approval 0 o = SRF 000 Prior Approval (91 972 424 = R/5 1972 423 901 New Approva l 0 o = R 5 000 Prior Approval 0 000 = CAHAr 000 New Approval 0 o =C AHAT 000 New Approval 133) o = FTHRF (24473317) RESERVE FOR NEW APPROVAL - DOWN PAYMENT = DPCCA 000 TOTAL COMMITMENT BALANCE (51,905.157.07) Reserve For CAHA T Loans (NET OF INVESTMENT LOSS = $24815769 repllnshed per MEMO 912512009) (202,618.00) Foreclosure Protection Fund INET OF INVESTMENT LOSS = 512407884 repllnsherJ per MEMO 912512009) (500,000 00) Hazard Mitigation Loans (151,532.10) First Time Homeowners (980.297.32) BOND ISSUE / LADA PROJECT (21,500.00) AVAILABLE: FOR FIRST TIME HOMEOWNER RELIEF FUND 186.10 Reserve: GRC Bonding Self·lnsured (Transferred looper. fund as of 7/3197) 0.00 Reserve: SINKING FUND FOR = FHLB NOTES CASH AVAILABLE FOR OPERATIONS 5990,734,65 Less: GRC COLLECTIONS FOR INTERFUND December 31, 2014 (100.00) Less: SAGAN L1NAHYAN (Loans transferred back to GHURA Augus(2004) 000 Less: DPCCA Collections as of December 31, 2014 (1,06027) Less: Unapplied Balance as of December 31 , 2014 (39,34581 ) Less: TYPHOON CLAIMS FOR REFUND 12/31/2014 (3,854,95) (44,361.03) TOTAL $946,373.62 Less: Loan Repaymenls for the month - FHLB 0.00 Memorandum of Underslanding w/ Geda 0.00 Retirement Inv. for early buy oul for 2 former employees 000 GSAIDOA Balance (18,241.17) Monthly Recurring Expenses (15,000.00) NET $913,132_45 NOTE: Deposits to S.R.F. - Due to Interfund Accounts: Borrowers' Deposit (43.36) Trust Fund 37,398.91 Revolving Loan Fund 12/2014 amounllo transfer 39,685.39 Caha11212014 to transfer 33,970.51 First Time Homeowners Assistanls Program 1212014 2,877.70 Hazard M~igation 12/2014 to transfer 322.29 114,211.44 GHC - LADA GARDENS CASH POSITION AS OF DECEMBER 31, 2014

DATE MATURITY INT. AT ACCOUNT NO. TCD-BANK BANK PURCHASED DATE TERM RATE AMOUNT MATURITY TCD 11040216 - 1873 TSD BOG BOG 10/24/2014 01/22/2015 90 0.1200% $38,125.50 -s11.28

TCD #040216 - 3880 EHF BOG BOG 11/03/2014 02/01/2015 90 0.1200% 86,147.17 $25.49

CMA-SIF Money Concepts #5rv1C-152326 MCCP 11/30/2014 12/31/2014 31 0.0000% 0.00 CMA-SIF Deutscile Bank FDIC Insllr Dep. MCCP 11/30/2014 12/31/2014 31 0.0000% 22,251.65 Self Insurance Fuml - TCDs Beal Bank USA Las Vegas Nev. CD MCCP OS/21/2014 OS/20/2015 364 0.2500% 249,000.00 620.79 Discover Bank Greenwood Del. CD MCCP OS/21/2014 OS/21/2015 365 0.2500°/0 166,000.00 415.00 Apple Bank for Svgs. N Y CD MCCP 05/28/2014 05/28/2015 365 0.2500% 249,000.00 622.50 Firstbank P R Santurce CD' MCCP 12/08/2014 06/05/2015 179 0.4000% 21,000.00 41.19 Oriental Bk & TR San Juan P R CD' MCCP 12/2212014 08/21/2015 242 0.5000% 21,000.00 69.62 Goldman Sachs Bk USA New York CD MCCP 09/10/2014 09/10/2015 365 0.4000% 249,000.00 996.00 Bank of China New York City NY CD MCCP 09/10/2014 09/10/2015 365 0.5500% 21,000.00 115.50 998,251.65 2,880.60

CMA-RFR Money Concl"pts ;;5rv1C 152458 MCCP 11/30/2014 12/31/2014 31 0.0000% 0.00 CMA-RFR Deutsche Bank FDIC Inslir Dep MCCP 11/30/2014 12/31/2014 31 0.0000% 824.26 Reserve for Replacement - TCDs Firstbank P R Santurce CD' MCCP 12/16/2014 05/15/2015 150 0.3000% 215,000.00 265.07

215,824.26 265.07

CMA-OPER Money Concepts :;5MC-l/054 MCCP 11/30/2014 12/31/2014 31 0.0000% 0.00 CrvlA-OPER Delltsclle Bank FDIC Insur Dep MCCP 11/30/2014 12/31/2014 31 0.0000% 0.00 I_ada Oper3trons - TCDs

000 0.00 'Pays Monthly 51 ~338,348.58 53,182.44

Operation: Checking Acct #7008033778 Bank Pacific 11/30/2014 57 95,245.4 4 Deposits 49,328.5 1 Disbursements (117,353.17) Sub-Total 727 22078

Less: Restricted Accounts Reserve for Replacement (461,777.44) Reserve for Emergency Housing ( 16,403.28) Self Insurance Fund 0.00 -Prem oTrt . to TCDs-SIF Reserve for Contracts 0.00 Sub-Total (478,180.72) Balance Operations $249,040.06

Tenant Security Deposit: Checking Acct #7008033760 Bank Pacific 11/30/2014 $27,861.98 Deposits 1,328.57 Disbursements (1,300.00) Sub-Total 27,890.55- Balance Tenant Security Deposit Checking Accounts 27,890.55

Total Cash Available 1,615,279_19

Less: Tenant Security Deposit (50,899.93)

Cash Available for Operations and Reserve $1,564,379.26

GRC Restricted Accounts Reserve for Replacement 215,824.26 Operations 0.00 Self Insurance Fund 998,251 .65 Emergency Housing Fund 86,147.17 (1 ,300,223.08)

TOTAL CASH AVAILABLE FOR OPERATIONS 5264,156_18 GHC - GUMA AS-ATDAS CASH POSITION AS OF DECEMBER 31, 2014

Operation: Checking Acct #7008033786 Bank Pacific 11/30/2014 $22,935.31 Deposits 6,201.16 Disbursements (15,554.88)

Balance Operations $13,581.59

Tenant Security Deposit Checking Acct #7008033964 Bank Pacific 11/30/2014 $9,132.07 Deposits 251.13 Disbu rsements (1,250.00)

Balance Tenant Security Deposit Account 8,133.20

Total Cash Available 21,714.79

Less: Tenant Security Deposit (6,950.00)

Cash Available for Operations and Reserve 14,764.79

As-Atdas Restricted Accounts Reserve for Replacement 0.00 Trust Fund (Insurance) 0.00 Self Insurance Fund 0.00 0.00

TOTAL CASH AVAILABLE FOR OPERATIONS $14,764.79 GHC - SAGAN LlNAHYAN CASH POSITION AS OF DECEMBER 31, 2014

Operation: Checking Acct #144340-4 Comm. 1st Fed. Credit Union 11/30/2014 $30,008.04 Deposits 2,978.05 Disbursements (11.57)

Balance Operations $32,974.52

Tenant Security Deposit Checking Acct #144340-6 Comm. 1st Fed. Credit Union 11/30/2014 $3,814.43 Deposits 650.84 Disbursements (1,150.00)

Balance Tenant Security Deposit Account 3,315.27

Total Cash Available 36,289.79

Less: Tenant Security Deposit (3,250.00)

Cash Available for Operations and Reserve 33,039.79

As-Atdas Restricted Accounts Reserve for Replacement 0.00 Trust Fund (Insurance) 0.00 Self Insurance Fund 0.00 0.00

TOTAL CASH AVAILABLE FOR OPERATIONS $33,039.79 Guam Housing Corporatton Other Real Estate Owned Summary Report Estimated as of December 31. 2014 Gain! (Loss) Bad Overl 10% (if saki at DebV Net (Under) Estimated current Loan Date Property OREO Loan Loss AIR Mort. OREO OREO Appraised Book Selling appraised Borrower Co-Borrower Number Foreclosed Location Asset Reserve Deficiencies Assets Expenses Value Asol Appraiser Value Cost value) Anthony C. Samiliano Bemadita A. Samiliano 18301341 July 26.1999 Lot 219, MunICipality 01 Agat 58,048,57 0.00 58.048.57 5.049.18 90.600.00 03/27/2013 Chief Appraisals 27.502.25 9.060.00 18,442.25 2 Anthony E. Eclavea Bobbie C. Eclavea 59302238 July 27. 1999 Lot 89--4-2 Sinajana 95,526.41 95,526.41 0.00 000 41,000.00 04/1812012 Robert & Robert Appraisers. I 41.000.00 4.100.00 36.900.00 3 Juan A. Quidachay 49702395 & 79702395 February 02. 2009 Lot No.09. Block No.25. New Agat 62.424.73 7.424.73 55,000.00 1.741.25 132.000.00 06/06/2014 Robert & Robert Appraisers. II 75.258.75 13.200.00 62.058.75 4 James E. Nelson III 59802430 December 28,2010 Lot No. 26-6-2-1, Municipality of Talololo, Territory of Gl 145,797.78 13.328.50 3,469.28 129,000.00 449344 164 800.00 05/30/2014 Chief Appraisals 31.306.56 16.480.00 14.826.56 5 Rosemarie B. Perez Vincent C Villasoto 11002838 April 27. 2012 Lot 172-1-1, Aga!. Guam, Estate Number 13908. Suburt 14396499 (84093) 000 14480592 1.81065 161.500.00 05129/2014 Chief Appraisals 14.883.43 16.150.00 (1.266.57) 5 Total 505762.48 115,438.71 3.469.28 386,854.49 t3094.52 589.900 00 175.067.56 42.840.00 132.227.56 Qc-2063

27 January 2015

To: President

From: Quality Assurance Officer

Subj: Summary review, with respect to Compliance, of Guam Housing Corporation's statement of finances including its:

a) Financial Posture b) Collateral Position c) Accounting of funds d) Debt Service e) Operations f) Financial report g) Reports due h) Portfolio i) Summary

Reference reports include:

a) the latest unaudited financial report, month ending 31 December 2014 b) cash position as of 31 December 2014 c) projected principal and interest summary as of 31 December 2014 d) budget for fiscal year 2015 e) revenue and expense report fiscal year 2015 to date

Issues of Interest:

The Draft Rules for the Housing Trust Act and Lending Capital Program and funding source initiative has been fine-tuned, we have initiated a resolution readdressing GHC Board of Director's support for these initiatives, will bring the Governor, who stresses support, up to date and are in pursuit of legislative action.

The Draft Rules for the Mortgage Credit Certificate Program are stalled. Collateral position

Of the corporation's $ 29,877,732 portfolio;

Legal; $ 3,320,717 of these have been targeted for foreclosure or other legal action.

There is $ 2,060,103 in program loans.

Accounting of funds

(this review was conducted prior to the compLetion of the month end financial report and may vary with reports initiated by accollnting. These variances may stem primarily from inter-fund transfers. Based on information noted in the "Daily Cash Position"

The corporation holds a number of bank accounts as of 31 December 2014 including:

a) CAHAT: Bank of Guam $ 166,647.49 Money Concepts $ 000.00 to be inter-funded: $ 33,970.51 Committed to new loans ( $ 00,000.00) Available funds ...... $ 200,618.00

b) First Time homeowner Relief Act $ 980,197.24 to be inter-funded: 2,877.70 Committed: ($ 288,447.93) Available funds: ...... $ 693,527.01

c) Hazard Mitigation, Bank of Guam $ 151,854.39

d) Federal Home Loan Bank of Seattle $ 41,486.93 e) Operations:

*Bank of Guam account (gross) $ 1,794,046.43 Committed, ops or inter-fund: Program funds $ ( 44,311.03) For Inter-fund $ ( 114,211.44) 3

Operations $ ( 177,195.70) Reserves $ (21,500.00) Committed to new loans $ ( 688,000.00) Reservations $( 00.00) *Total committed, ops or inter-fund: $( 1,045,218.17)

*Bank of Guam, ops, available funds $ 748,828.26 Merrill Lynch, TCDs $ 00.00 Money Concepts TCDs $ 45.69

Total available funds (for operations ) ...... 748,873.95 e) BoG Revolving Loan Fund (6% loan funds):

Bank of Guam account (gross) $ 1,151,731.61 Funds transfer (inter-fund) $ 39,685.39 Total ...... $ 1,191,417.00 (Committed, new loans) ($ 972,423.90)

Available funds, Bank of Guam ...... $ 218,993.10 Money Concepts $ 21.02

Total available funds ...... $ 219,014.12

f) Borrower's Trust Fund account, restricted:

Bank of Guam $ 122,683.82 Money Concepts TCDs $ 271,207.98 Funds transfer (inter-fund) $ 37,398.91 Total, Borrower's Trust Fund, gross $ 431,270.71

g) BoG Borrowers Deposit, restricted:

Amount to inter-fund $ (43.36) Amount on deposit $ 109,972.87 Total $ 109,929.51

h) TCDs Foreclosure Protection Fund, restricted: $ 501,000.00

The balances in the following accounts are reflected as of 31 December 2014

i) Rent operations, Lada Gardens;

Bank Pacific $ 727,220.78 Money Concepts Reserves $ (487,879.04) TotaL ...... $ 239,341.74 4

Available funds ...... $ 239,341.74

j) Tenant security (restricted)

Bank Pacific $ 27,186.98 Bank of Guam TCD $ 38,125.50 Total...... $ 65,312.48

k) Self-insurance fund (restricted)

Bank of Guam TCD $ 00.00 Money Concepts TCD $ 998,251.65 Bank Pacific $ 000.00 Reserves for Asat-Das/etc $

Total...... $ 998,251.65

1) Reserves for replacement:

Bank of Guam TCD $215,824.26 Bank Pacific $471,475.76 Total $687,300.02

$ 400,000 will be transferred from the RFR for the Asat-Das/Sagan reservation reflecting an available balance of ...... m) Emergency housing fund,

Bank of Guam TCD $ 86,147.17 Bank Pacific $ 16,403.28 Total...... $ 102,550.45 n) As-Atdas Operations, Bank Pacific ...... $ 13,581.59

0) Tenant security deposit (restricted) ...... $ 8,132.07

Total cash available for operations Rental Division ...... $ 239,341.74 5

Summary of Committed funds:

Total committed to Affordable home program ...... $ 500,000? Total committed to Asat-Das/Sagan ...... $ 400,000? Total committed to borrower's mortgages...... $ 1,660,424 Total committed to the FTHOA program...... $ 288,448 Total committed ...... $2.195.204

5) Debt Service and Operations

Operations:

Personnel (incl benefits) $ 163,802 monthly, average Miscellaneous other, recurring $ 21,408 monthly, average retirees, cola, Slip $ 19,867 monthly, average Rental, other $ 25,287 monthly, average

TotaL ...... $ 230,364 mthly, average

CASH outlay for this month includes building renovations, $23,823; plus retiree's benefits of $ 119,204

6) Financials; including Rental assets and liabilities:

A) Balance Sheet;

1) Assets:

Assets total $ 47,875,932 encompassing all monetary instruments and receivables; principal with respect to the "unrestricted" regular portfolio, $ 27,817,629 it may be noted that this is $ 1,187,715 less than the previous year and, as previously noted the corporation has $ 2,095,433 in its program portfolio. It also includes interest, accrued or $ 69,423. The allowance for loan losses equates to $ 576,418. There have been $------in losses written against this account fiscal year to date.

2) Other assets:

The land and land held for development includes foreclosed assets total $ 399,949 other buildings, rental units include $ 6,676,663. 6

3) Investments and Restricted assets:

This includes loans written against the Mortgage Revenue Bond and funds placed with the Bond Trustee with respect to the cost of issuance totaling $ 3,822,779; the Foreclosure Protection Fund at $ 501,000 and $ 6,382,416 in restricted and unrestricted cash for special programs or trust including lending and rental operations and the self-insurance fund.

4) Liabilities

Liabilities, short term and long, $ 253,346 in loans held in trust. Liabilities also include bonds payable around $ 4.42 million, the balance of the liabilities include $ 541,200 & 62,000 (escrow & borrowers deposits and tenant security) funds held in trust; $ 74,070 for the rebate liability with respect to the MRB. Total Liabilities equal $ 6,989,792

5) Net Assets:

Capital assets including buildings, vehicles or furniture at $ 6,706,126; Restricted assets including the revolving loan fund, CAHAT, foreclosure protection fund and escrow funds at $ 9,450,396 and Unrestricted assets including operational cash and loans receivable at $ 30,895,582 for a total of $47,875,932.

B) Income Statement

1) The income for the period, fiscal year' 15 to date reflects a loss of ($ 55,346), the income for the month reflects a loss of ($ 73,208).

2) The interest on loans receivable is exclusive of any accruals beyond 90 days.

C) Cash on Cash

The corporation has completed three month(s) of fiscal year 2015. The corporation's cash available for operations was greater than cash expended including debt service and capital outlays by $ 12,102 average per month, this includes the recovery of $204 or $ 102 average per month in interest previously placed in non-accrual, otherwise interest income was less than forecast by 3.79 %; $ 10,073 or $ 5,036 per month.

( the "cash available for operations" include rent receipts AND is compensating for the lower interest rates in portfolio driven income; the average interest income from loans (portfolio) and other investments (TCD's); is reflected at $ 213,142 with monthly expenses at $ 230,364 or insufficient by $ 12,102

The net increase in the corporate portfolio fiscal year to date is at $ 302,902 7

7) Cash Projections:

8) Reports a) The corporation is required to submit its audited financial report to;

1) Bond Trustee within 180 days of the fiscal years end and,

2) The Speaker of the Guam Legislature;

All reports have been completed on time, communicated via e-mail to addressees and available on the Guam OPA' s web site. b) The corporation is further required to prepare a separate annual report reflecting the performance of its loan portfolio as directed by the: c) Other reports as directed

9) Portfolio

The corporation's portfolio consists of a total of 421 loans encompassing $ 29,877,732 of these, 31 files totaling $ 865,136 are USDA loans; the others, 106 files, totaling $ 2,060,103 in funds accounted for in three (3) other, Interest and non- interest bearing categories: a) First Mortgages

As of 31 December 2014 the corporation's general loan portfolio of first mortgages stood at $ 27,817,629 consisting of315 loans with a weighted average of 5.72 %.

2) Of these, The Revolving Loan Fund encompasses 152 loans with a current principal balance of $ 15,470,561

3) Also, and in partnership with the Rural Development program, the corporation has funded first mortgages for 31 loans within those included above in the 6% Revolving Loan Fund Program reflecting a balance of $ 865,136; (For the most part the corporation funds 20% of the applicants loan while holding rt lien position with the balance or 80% funded by Rural Development). b) Second Mortgages; Third Mortgages, or "other" special category, program loans are as follows:

1) The portfolio for Hazard Mitigation is comprised of one loan or $ 10,435;

2) The Community Affordable Housing Action Trust includes 74 @ $ 1,797,382;

3) Down Payment and Closing Cost Assistance program includes 31 @$ 252,286; 8 c) Grant; (From the First-time Homeowner Relief Act of 1998)

1) The corporation has issued 125 grants totaling $ 423,193. These are not loans however may have recapture provisions as conditions apply. d) Grant; (From the First-time Homeowner Assistance Program of 2012)

From the "Schedule of First-Time Homeowner"-The corporation has issued 232 grants totaling $ 1,743,076 with reservations for 38 more at $ 288,448. These are not loans however do have recapture provisions as conditions apply. e) Mortgage Revenue Bond loans:

1) The corporation has closed or caused to close 57 loans with respect to the Mortgage Revenue Bond program with a current balance just under $ 4,780,000.

10) Funds, (estimated) available (with TeD restrictions or 1 month's reserves for expenses) for new loans:

1) CAHAT, (interest free) * (restricted) $ 168,633 2) Revolving Loan Fund, (6.00 %)* (restricted) $ 179,223 3) Hazard Mitigation * (restricted) $ 151,517 4) Housing Trust Fund (grant) $ (99,987)

Total available for loans or grants, (restricted) ...... $ 399,385

5) Regular Loan Program, (operations act & TCDs) $ 687,287 6) FHLB account $ 41,487

Total available, (Operations, Housing) $ 728,774

7) Available from rents, Lada (Operations, Rental) ($ 307,647)

8) Total Operational Funds (Housing & Rental) ...... $1,036,421

Total funds available,(operations & for loans or special program)...... $ 1.435,806

11) Other Funds, corporate, (Reserved):

1) Foreclosure Protection Fund* $ 501,000 2) Reserves for Replacements, rental $ 687,247 3) Self-Insurance Fund, rental $ 976,688 4) Emergency Housing Fund $ 102,285 9

5) Asat-das $ 22,935

Total RESERVED...... $2,290,155

12) Other Funds, TRUST, (Held-in-Trust):

1) Tenant Security Deposit $ 76,120 2) Borrower's Trust Account $ 410,526 3) Borrower's Deposit $ 201,660

Total TRUST...... $ 687,305

Total, (RESERVED or TRUST) ...... $ 2,977.460

$ 4,413,266.

copy 0: Manag Loan Administrator Accounting Manager

* appropriated and restricted by Public Law LOAN CLOSED - FISCAL YEAR 2015 As of December 31, 2014

Loan Number of Type of Loan Loan Month Program Loans Purchase Construction Amount 03-Oct-14 Cahat 1 1 0 $ 40,000.00 30-Nov-14 Direct 2 2 0 $ 281,200.00 31-Dec-14 Direct 1 1 0 $ 180,000.00

440$ 501,200.00

Average Loan $ 125,300.00

LOAN APPROVALS - FISCAL YEAR 2015 As of December 31, 2014

Month Loan Interest Loan Home Loan Approved Purpose Rate Amount Price Processor 14-Oct-14 Purchase 5.125% 131,200.00 Emily Direct (SRF) 12-Nov-14 Purchase 4.25% 150,000.00 Addie Direct (SRF) 2-Dec-14 Construction 5.09% 78,000.00 Addie Direct (SRF)

$ 359,200.00

Average Loan $ 132,300.00

PRE-APPROVALS FISCAL YEAR 2015 As of December 31, 2014

Month Loan Interest Loan Loan Approved Purpose Rate Amount Processor 31-Oct-14 None 5-Nov-14 Purchase 5.125% $ 180,000.00 Susymae 31-Dec-14 None

$ 180,000.00 FIRST-TIME HOMEOWNER ASSISANCE PROGRAM APPROVAL AND DISBURSED FROM JULY 12, 2012 TO DATE

TOTAL GRANT APPROVALS: 390$ 2,917,943.57 TOTAL GRANT DISBURSED: 232$ 1,630,312.39 GUAM HOUSING CORPORATION i¥f P.O. . Box 3457 Hagatna, Guam 96932 Kotporasion Ginima' Guiihan Janwuy 27, 2015

To: President

Fr: Michael MaItinez GHC, Manager

He: Board Meeting lnfonnarioll

Anaclunenls: Lada and As-Atdas 2014 Delinquent aIld Gross Hcnt Listing I. The following information is for the monlh of DECEMBEH 2014 A) Vacant units al Lada Gardens • 2 two bedroom units ~ 147 NI88 - To be prep,u·cd lor occupancy by SG,JI ~ I 42N232 - Occupied by Homeless • 4 tlu'ce bedroom units ~ 119/ 172 - To be prepared by slalf ~ 180/245 - To be prepaI·cd by slalf ~ 406/215 - Under renovalion by Conmclor ~ IllB/235 - Occupied by Homeless • 4 row' bedroom units ~ 420/211 - To be prepaI-cd for OCCUPaI1Cy by slafl ~ IIIN234 - To be prepared for OCCUpaI1CY by SGIlI }> 234/251 - Under renovation by Contractor ~ 120B/ 227 - Heady for occupancy B) Vacant units at Guma As-Atdas • 1 two bedroom unil.;; ~ B203 - To be prep,u·cd lor occupancy by staff • 3thrcc bedroom tmits ~ B206 - To be prepaI·ed for occupancy by slaiI ~ B207 - To be prepared for occupancy by slall ~ B21 1 - To be prep,ued for occupancy by slalT C) Vacant Units at Sag.u1 Linahyan • lone bedroom unit ~ 5112- To be prepared lor OCCUpaI1CY by staff • 1 Jour bedroom unit ~ 5136- To be prepared for occupancy by swf Sincerely, 1!/:di::f17;7

CC: Loretta lriarte, Board Coordinator

590 S. Marine Co rps Drive, Ste. 514lTC Building, Tamuning, Guam 96931 Telephone Number (671) 647-4143/ 46.Fax Number (671) 649-4144 FY2014 DE LINQUENCY AND GROSS RENT RE PORT AS OF DECEM BER 2014

-DElI--- -NQUENCY- - LADA GARDENS 30DAV 60 DAY 90 DAY 120 DAY 150.DAY MONTH/VEAR #OF ACcrs TOTAL #OF ACcrs TOTAL #OFACcrs TOTAL #OF ACCTS TOTAL #OF ACCT5 TOTAL Jan· 14 33 $ 14,027.55 23 $ 23,648.50 7 $ 12,077.50 8 $ 14,151.12 8 $ 23,482.22 Feb-14 38 $ 16,251.14 27 $ 27,933.33 4 $ 7,046.00 4 $ 9,152.50 7 $ 14,071.84 Mar-14 35 $ 13,648.42 18 $ 17,868.05 3 $ 4,975.00 2 $ 4,870.00 $ 19,689.84 Apr-14 2. $ 14,045.88 12 $ 10,256.59 3 $ 4,290.00 2 $ 4,690.00 •7 $ 25,014.84 May· 14 35 $ 17,713.89 5 $ 3,564-.28 3 $ 4,369.00 1 $ 2,165.00 7 $ 24,784.91 Jun-14 28 $ 13,385.00 11 $ 10,173.79 10 $ 17,679.00 0 $ 4 $ 16,585.00 Jul-14 25 $ 12,624.93 20 $ 20,616.79 11 $ 18,018.31 2 $ 4,154.84 2 $ 8,605.00 Au g-14 25 $ 11,914.18 21 $ 20,638.73 13 $ 21,624.06 3 $ 7,589.28 3 $ 12,199.84 5ep-14 27 $ 13,059.94 21 $ 19,904.85 12 $ 21,188.94 1 $ 2,130.00 5 $ 17,235.00 Oct-14 2. $ 11,887.75 15 $ 14,083.79 3 $ 4,466.00 • $ 14,538.94 5 $ 21.909.84 Nov-14 31 $ 15,633.18 14 $ 13,563.46 8 $ 14,190.00 • $ 12,866.00 7 $ 27,753.78 Dec· 14 30 $ 15,427.40 16 $ 17,901.46 11 $ 18,132.46 4 $ 9,866.00 11 $ 42,268.78

GUMA A5-ATOAS 30 DAY 60DAV 90DAV 120 DAY 150+DAV MONTH/VEAR # OF ACCT5 TOTAL #OFACCTS TOTAL # OF ACCT5 TOTAL # OF ACCTS TOTAL #OFACCTS TOTAL Jan· 14 6 $ 2,040.00 • $ 6,025.00 0 $ 2 $ 4,320.00 2 $ 12,675.05 Feb-14 6 $ 1,710.00 3 $ 2,590.00 2 $ 3,380.00 2 $ 3,680.00 3 $ 10,010.00 Mar-14 3 $ 680.00 1 $ 680.00 3 $ 5,140.00 1 $ 1,880.00 2 S 8,390.00 Apr-14 5 $ 1,570.00 0 $ 1 $ 1,730.00 3 $ 6,660.00 2 $ 9,050.00 Mav·14 2 $ 310.00 3 $ 2,120.00 0 $ 1 $ 2,476.00 3 $ 13,375.00 Jun-14 $ 4,220.00 2 $ 1,550.00 0 $ 1 $ 2,386.00 3 $ 15,450.00 Jul-14 •5 $ 2,160.00 4 $ 3,560.00 3 $ 4,740.00 0 $ 3 $ 10,276.00 Aug-14 6 $ 3,147.00 3 $ 3,010.00 1 $ 1,080.00 3 $ 7,240.00 2 $ 7,076.00 5ep-14 4 $ 1,360.00 4 $ 3,557.00 1 $ 1,365.00 1 $ 1,580.00 5 $ 17,566.00 Oct-14 3 $ 55.00 5 $ 4,617.00 2 $ 3,050.00 0 $ 5 $ 17,221.07 Nov-14 3 $ 620.00 5 $ 4,177.00 1 $ 1,710.00 1 $ 1,600.00 3 $ 14,016.00 Oe c-14 4 $ 1,848.00 4 $ 4,757.00 1 $ 1,400.00 1 $ 2,060.00 4 $ 18,578.00

GR05S RENT (COLLECTED) MONTH/VEAR LADA GARDENS GUMA A5-ATDAS TOTAL Jan· 14 $ 44,935.62 $ 6,778.38 $ 51,714.00 Feb-14 $ 64,740.27 $ 9,625.05 $ 74,365.32 Mar-14 $ 82,326.00 $ 14,695.00 $ 97,021.00 Apr-14 $ 73,436.95 $ 10,321.95 $ 83,758.90 MaV-14 $ 57,070.98 $ 7,239.00 $ 64,309.98 Jun·14 $ 54,775.00 $ 6,315.00 $ 61,090.00 Jul-14 $ 66,950.49 $ 9,243.49 $ 76,193.98 Aug-14 $ 41,724.41 $ 8,896.34 $ SO,620.75 Sep·14 $ 76,530.01 S 7,406.83 $ 83,936.84 Oct-14 $ 75,066.67 $ 9,403.02 $ 84,469.69 Nov·14 $ 48,240.31 $ 6,463.38 $ 54,703.69 Dec· 14 $ 48,705.21 $ 4,798.00 $ 53,S03.21 Guam Housing Corporation January 2015 Financial Summary Financial Highlights

Loans Closed Direct Loan Total Oty Amount Disbursement Oct-14 0 0.00 0.00 Nov-14 1 131,200.00 131,200.00 Dec-14 1 180,000.00 186,750.00 Jan-15 0 0.00 15,000.00 Year to Date - Direct 2 311,200.00 332,950.00

6% Loan Total Oty Amount Disbursement Oct-14 0 0.00 68,580.00 Nov-14 1 150,000.00 177,000.00 Dec-14 0 0.00 49,860.00 Jan-15 1 210,000.00 0.00 Year to Date - 6% 2 360,000.00 295,440.00

Cahat Loan Total Oty Amount Disbursement Oct-14 40,000.00 40,000.00 Nov-14 0 0.00 0.00 Dec-14 0 0.00 0.00 Jan-15 0 0.00 0.00 Year to Date - CAHAT 1 40,000.00 40,000.00

Combine Total Oct-14 1 40,000.00 108,580.00 Nov-14 2 281,200.00 308,200.00 Dec-14 1 180,000.00 236,610.00 Jan-15 1 210,000.00 15,000.00 Year to Date Total 5 711,200.00 668,390.00

1 of 7 First Time Home Owners Qty Funds from Disbursed Oct-14 8 DOA 60,373.08 Nov-14 8 DOA 52,709.06 Dec-14 15 DOA 116,208.44 Jan-15 10 DOA 75,315.48 Year to Date Total 41 304,606.06

Total Disbursed 242 1,720,911.88

Total Disbursed FY 2012 & FY 2013 65 GHC 464,619.39 Total Disbursed FY 2013, FY 2014 & FY 2015 177 DOA 1,256,292.49 242 1,720,911.88

Committed as of Jan-2015 2 GHC 19,054.14 Committed as of Jan-2015 --- 32 DOA 239,675.37 Total Committed Jan-2015 34 258,729.51

Total Committed & disbursed as of Jan-2015 276 1,979,641.39

Funds received from DOA June 13, 2013 1 ,228,771.42 Funds received from DOA December 05, 2014 900,000.00 Less DOA funds disbursed as of Jan-2015 (1,256,292.49) Less DOA funds committed as of Jan-2015 (239,675.37) Funds available under DOA 632,803.56

Year to Date t-- Year to Date Four payoffs during the month under GHC's portfolio Month Qty Amount Total principal collected 19,898.30 I 6 63,588.89 Interest collected 276.17 860.41

No payoffs during the month under the Cahat portfolio Total principal collected 0 0.00

No payoffs during the month under the Down Payment Program Total principal collected 1 3,417.60

Total Payoffs - Principal Collected 19,898.30 7 67,006.49- Foreclosures- Principal Balance at time of foreclosure o 0.00

Loans written off (Principal written off) 0.00 15,458.61

Adjusted the Investment and Cash with trustees Decreased the Interest Income for Investment held by by bond trustee to equal to market value 683.56

Increased the rebate liability. Increase effected by adj. in market value. Which decrease the interest income by 0.00 Note: Arbitrage Yield 5.229417%. Interest earned this month 7,795.93

2 of 7 Note: One employee's salaries & benefits has been being accrued since 2/6/2013 to 01/31/2015 129,939.18 Annual Leave as of PPE 01/24/2015 (739 bal.) 17,299.99 Sick Leave as of PPE 01/24/2015 (1,900 bal.) 22,239.50 Legal Fees paid from January 2013 - January 2015 22,212.14 Total as of December 2014 191,690.81

January January GHC Loan Portfolio decreased from last year 2015 2014 Difference Loans Receivable - Unrestricted 27,717,386.76 22,748,661.55 4,968,725.21- Loans Receivable - Restricted 0.00 5,996,023.27 (5,996,023.27) 27,717,386.76~~--~~~ 28,744,684.82~~~~ (1,027,298.06)

Principal payoffs between the two periods (837,536.17) Foreclosures - Principal amount between the two periods 0.00 Write Offs - Principal amount between the two periods (369.94) Total loan disbursements between the two periods 898,110.00 Difference (regular payments) 1,087,501.95 Average monthly payments 90,625.16

Interest income on loans receivable to decreased compared to last year 513,370.13 560,222.18 (46,852.05)

Weighted average interest rate decrease compared to last year 5.71322% 5.82208% -0.10886%

Interest income on bank deposits increased compared to last year 4,740.79 4,405.42 335.37 due to the increase in cash in TCDs ($90k) and in interest rates Weighted average interest rate on TCDs & Treasury Bills 0.321% 0.306% 0.016% Weighted average interest rate on FHLB account 0.005% 0.000% 0.005%

Notes Payables decreased by 0.00 720,053.48 720,053.48 Average monthly principal payments 60,004.46 FHLB note was paid off 8/1/2014

Causing a decrease in Interest Expense compared to last year 0.00 19,136.13 (19,136.13)

Investments and cash with trustees decreased 3,829,891.83 4,143,442.28 (313,550.45)

Interest earned between the two fiscal years 100,425.93 Total adjustment to Market Value between the two fiscal years 1,125.62 Disbursements for principal payments on bond between the two fiscal years (150,000.00) Disbursements for interest payments on bond between the two fiscal years (251,895.00) Disbursement for trustee fees between the two fiscal years (13,207.00) Rebate Liability paid between the two fiscal years 0.00 (313,550.45) 0.00

Interest on investments held by bond trustees increased 32,529.88 58,046.62 (25,516.74)

Interest earned 31,713.82 36,907.88 (5,194.06) Adjustment to market value 816.06 32,630.04 (31,813.98) Adjustment to the rebate liability 0.00 (11,491.30) 11,491.30 Adjustment due to the Interim Arbitrage Rebate Analysis Report 0.00 0.00 0.00 32,529.88 58,046.62 (25,516.74)

3 of 7 January January 2015 2014 Difference Foreclosed assets held for resale increased 399,949.01 399,949.01 0.00 Number of units 5 5 o

Acquired 0 houses through foreclosures or deed between the two periods 0.00 Sold 0 properties between the two periods 0.00 Adjustment to appraised value 0.00 Added cost less adjustments 0.00 0.00

Allowance for loan losses decreased (576,417.71) (629,987.92) (53,570.21 )

Adjustment to decrease Allowance to 2 % of Loan Portfolio (37,741.66) Used between the two periods - (for two loans) (15,828.55) Credits between the two periods 0.00 (53,570.21 ) (0.00)

Salaries increased due to increments & merit bonuses 462,851.12 455,647.59 7,203.53 Number of Employees 27.00 25.00 2.00 Number of Working Days 22.00 22.00 0.00 Break down Salaries 451,370.89 425,367.41 26,003.48 Merit 0.00 7,406.55 (7,406.55) Loan Origination (3,176.30) (713.40) (2,462.90) Annual Leave Taken (36,556.63) (19,858.43) (16,698.20) Sick Leave Taken (50% of DC Members only) (7,462.78) (4,684.27) (2,778.51 ) Annual Leave Earned 42,423.21 39,364.20 3,059.01 Sick Leave Earned 16,252.73 8,765.53 7,487.20 462,851.12 455,647.59 7,203.53 0.00 0.00 (0.00)

Net income for the month of December 2014 (73,207.66) Net income for the month of January 2015 (28,321.96) Difference 44,885.70

Increase caused by: Decrease in Interest on loans receivable - due to the increase in 90 days & ove (4,697.63) Increase in Interest on Investment due to a less of a decrease in market value i 10,268.82 Increase in Loan Origination Fees due to a construction loan closed in Jan-201 2,700.00 Increase in Late Fee Collections 2,075.54 Decrease in Salaries due to the accrual of the President's retro in Dec-2014 5,759.49 Decrease in Retirement expense due to the decrease in salaries 1,976.24 Paid in December 2014 COLA $36,000 & Supplemental $22,197.93 in Dec-2014. Expense for Oct-2014 through Dec-2014 was recorded Dec-2014 9,699.63 Decrease in contractual expense due to the repairs of a vehicle & typewriters in December 2014 834.51 Increase in other expense due to increase in power, water, advertising & Emergency Housing (3,230.62) Adjustment to made to Inventory based on actual count $18,691.86. Note: the inventory report for Dec-14 & Jan-15 was not completed, so December's & January's issued is not included in Dec-14 & Jan-15 financials 18,691.86

Total 44,077.84 807.86

4 of 7 Net income year to date (83,668.10) 21,042.59 (104,710.69)

Housing Rental Total Net income/(Ioss) year to date ----:;6O-;,5;-:;;3~1.~91~- (90,2;;;:':0=0:-0;.0=1'-) -"(8=3O-;,6=6=8 ~.1 ~0)

Loss due to: Vacancy year to date (55,018.92) Vacancy rate 14.50%

Salaries - FY 2015 salaries expense for John P. (24,088.61 ) (Accrual for John P. as of Jan-2015 - $129,939.18 plus annual leave $17,299.99, sick leave $22,239.50 & legal fees $22,212.14)

Increase in salaries due to President increase, Temporary hire & increments (7,217.67)

Increase in Retired Employee's expense due to increase in COLA (6,712.72)

Increase in depreciation due to renovations at Lada (3,878.51)

Emergency Housing Expense (3,811.93)

Increase in Maintenance Expense due to changing of doors at Lada & Inventory adjustment to actual materials in office ($18,691.86) (24,555.56)

Payment for power & water due to renovations, vacancies & homeless (3,803.18)

Budget Prorated Budget 01/15 Actual Difference Operating Revenue 914,599.12 906,839.77 (7,759.35) Non Operating Revenue 151,123.56 8,415.69 (142,707.87) Total Revenue 1,065,722.68 915,255.46 (150,467.22)

Expenses 1,065,427.08 998,923.56 (66,503.52) Net Gain (Loss) 295.60 --(83,668.10) (83,963.70)

Specific Budget Concerns 2015 Over/(Under) Budget Actual Budget Interest on loans receivable 531,413.12 513,370.13 (18,042.99) 2015 Budget - loan portfolio $30,910,035 at 5.73%. Actual $27,717,386 at 5.71% budget delinquency rate 10%. Actual delinquency rate 16%

Interest on investments held by bond 37,377.32 32,529.88 (4,847.44) Due to a decrease in market value

Salaries 447,592.00 462,851.12 15,259.12 Due to lump sum payment to President for retro pay. Budget is prorated

Maintenance Expense 21,766.60 32,940.43 11,173.83 A physical inventory was completed in Dec-2014. There was $18,691.86 worth of materials on the inventory report but was not at the Rental Office.

Other Income 148,116.56 3,674.90 (144,441.66) Budget income from Housing Trust Fund $249,811 .70/12 *4 =$83,270.56 Actual - no income from source year to date. Also budget to adjust the Reserve for Loan Loss by $192,487.92.192,487.92/12 = $16,040.66 * 4 = $64,162.64 No adjustment has been made yet

5 of 7 Portfolio At-A-Glance January 2015 Principal . No. of Portfolio Balance Balance Loans SRF (Direct) 15,418,958.00 150 RF (Direct) 32,194.24 4 R5 (Revolving Loan Fund) 12,266,234.-::::5:::-2 _____---:: 1-;-57c- Subtotal GHC 27,717,386.76 311

Hazard Mitigation 10,149.69 Cahat 1,789,307.34 74 Down Pymt (Not included when calculating delinquency %) 250,398.86 31 2,049,855.89 106

Total 29,767,242.65 417

Principal Number Current delinquency (GHC portfolio only) Balance % of loans 30 to 59 days delinquent 847,585.98 3.4717% 11 60 to 89 days delinquent 402,019.62 1.6467% 4 90 days to 119 days 28,302.46 0.1159% 1 120 days & over 0.00 0.0000% 0 Total Delinquent 1,277,908.06 5.2343% 16

Referred to Legal 3,303,139.77 11.9172% 37 Total Delinquent & referred to legal 4,581,047.83 16.5277% 53

Current delinquency (HM & Cahat) % 30 to 59 days delinquent 34,667.12 1.9693% 2 60 to 89 days delinquent 33,888.76 1.9251% 1 90 days to 119 days 0.00 0.0000% 0 120 days & over 35,444.49 2.0134% 1 Total Delinquent 104,000.37 5.9077% 4

Referred to Legal 39,050.95 2.1702% 3 Total Delinquent & referred to legal 143,051.32 7.9497% 7

Total Delinquency (Does not include Down Payment Loans) % 30 to 59 days delinquent 882,253.10 3.3706% 13 60 to 89 days delinquent 435,908.38 1.6654% 5 90 days to 119 days 28,302.46 0.1081% 1 120 days & over 35,444.49 0.1354% 1 Total Delinquent 1,381,908.43 5.2796% 20

Referred to Legal 3,342,190.72 11.3230% 40 Total Delinquent & referred to legal 4,724,099.15 16.0048% 60

6 of 7 ! Tenant Accounts Recievables FY 2015 FY 2014 Difference Lada 114,376.81 94,421.98 19,954.83 i As-Atdas 38,506.87 27,005.11 11,501.76 ,Sagan 16,752.94 2,627.40 14,125.54 Total 169,636.62 124,054.49 45,582.13

Allowance for Uncollectibles Lada (63,968.63) (35,508.00) (28,460.63) , As-Atdas (24,068.00) (6,912.00) (17,156.00) Sagan (9,104.99) (600.00) (8,504.99) Total (97,141.62) (43,020.00) (54,121.62)

; Net Tenant Receivable less Allowance for Uncollectibles 72,495.00 81,034.49 (8,539.49)1 % of Receivable 57.26% 34.68%

Fiscal Year 2015 Rental Vacancy Net Income Lada 299,100.00 (34,130.92) 264,969.08 As-Atdas 57,600.00 (16,061.34) 41,538.66 Sagan 22,800.00 (4,826.66) 17,973.34 Subtotal - 379,500.00 (55,018.9 ~ 324,481.08

Oreo properties 3,850.00 Total 383,350.00 (55,018.92)

Fiscal Year 2014 Rental Vacancy Income -:t Lada 278,950.00 (23,973.41 ) 254,976.59 1 As-Atdas 55,200.00 (6,996.48) 48,203.52 Sagan 22,800.00 (8,376.62) 14,423.38 1 Subtotal 356,950.00 (39,346.51 ) 317,603.49

Oreo properties 4,000.00 4,000.00 Total --360,950.00 (39,346.51 ) 321,603.49

2015 2014 Difference Vacancy Rate 14.50% 11.02% 3.47476%

7 of 7 Guam Housing Corporation Statement of Net Position As of 1/31/2015

Current Year Prior Year

Assets Unrestricted Assets Cash and cash equivalents 2,938,877.66 3,372,183.99 Self-insurance fund 998,264.41 910,761.57 Loans receivable 27,717,386.76 22,748,661.55 Net deferred origination expo & rev. 0.00 2,995.38 Allowance for loan losses (576,417.71) (629,987.92) Tenant receivable, net 78,920.00 81,755.81 Other receivables (22,669.29) 1,856.09 Accrued interest receivable 56,746.44 79,326.25 Prepaid expenses and other 113,455.76 113,506.40 Foreclosed assets held for resale 399,949.01 399,949.01 Total Unrestricted Assets 31,704,513.04 27,081,008.13 Restricted Assets Cash and cash equivalents 3,054,894.09 2,144,087.16 Investments with trustee 3,829,891.83 4,143,442.28 Foreclosure Fund 501,032.61 500,242.87 Loans receivable 0.00 5,996,023.27 Other loans receivables (CAHAT, Sagan, DPCCA & HM) 2,049,855.89 __ ~~469.0Q Total Restricted Assets 9,435,674.42 14,959,264.58 Capital assets, net 6,665,546.29 ____ 6,673,882.64 Total Assets 47,805,733.75 48,714,155.35

Liabilities Payable from unrestricted assets Accounts payable and accrued expenses 234,414.02 174,079.18 Accrued compensated absences 366,847.15 325,810.66 Unearned revenue 43,268.72 55,649.00 Total Payable from unrestricted assets 644,529.89 555,538.84 Payable from restricted assets Accounts payable 872,478.93 761,815.19 Bonds payable 4,415,000.00 4,565,000.00 Notes payable 0.00 720,053.48 Accrued interest payable 101,612.50 108,961.02 Security deposits 61,574.93 63,721.93 Deposits by borrowers 526,363.94 468,444.19 Loans held in trust 252,286.16 276,031.59 Rebate liability 74,070.12 78,928.24 Total Payable from restricted assets 6,303,386.58 7,042,955.64 Total Liabilities 6,947,916.47 7,598,494.48

Net position Invested in capital assets, net of related debt 6,706,125.86 6,696,232.76 Restricted 3,284,430.92 7,521,754.04 Unrestricted 30,867 ,260.50 26,897,674.07 Total Net position 40,857,817.28 41,115,660.87

Total liabilities and net position 47,805,733.75 48,714,155.35

Date: 21'23/15 11:02:54 AM Page: 1 Guam Housing Corporation Statement of Net Position As of 1/31/2015

Housing Division Rental Division Total

Assets Unrestricted Assets cash and cash equivalents 1,902,206.09 1,036,671.57 2,938,877 .66 Self-insurance fund 0.00 998,264.41 998,264.41 Loans receivable 27,717,386.76 0.00 27,717,386.76 Net deferred origination expo & rev. 0.00 0.00 0.00 Allowance for loan losses (576,417.71) 0.00 (576,417.71) Tenant receivable, net (743,726.30) 822,646.30 78,920.00 Other receivables (22,669.29) 0.00 (22,669.29) Accrued interest receivable 55,098.20 1,648.24 56,746.44 Prepaid expenses and other 51,909.03 61,546.73 113,455.76 Foreclosed assets held for resale 399,949.01 0.00 399,949.01 Total Unrestricted Assets 28,783,735.79 2,920,777.25 31,704,513.04 Restricted Assets Cash and cash equivalents 2,941,302.97 113,591.12 3,054,894.09 Investments with trustee 3,829,891.83 0.00 3,829,891.83 Foreclosure Fund 501,032.61 0.00 501,032.61 Loans receivable 0.00 0.00 0.00 Other loans receivables (CAHAT, 2,049,855.89 0.00 2,049,855.89 Sagan, DPCCA & HM) Total Restricted Assets 9,322,083.30 113,591.12 9,435,674.42 Capital assets, net 0.00 6,665,546.29 6,665,546.29 Total Assets 38,105,819.09 9,699,914.66 47,805,733.75

Liabilities Payable from unrestricted assets Accounts payable and accrued 63,230.44 171,183.58 234,414.02 expenses Accrued compensated absences 194,386.34 172,460.81 366,847.15 Unearned revenue 42,475.44 793.28 43,268.72 Total Payable from unrestricted assets 300,092.22 344,437.67 644,529.89 Payable from restricted assets Accounts payable 872,478.93 0.00 872,478.93 Bonds payable 4,415,000.00 0.00 4,415,000.00 Notes payable 0.00 0.00 0.00 Accrued interest payable 101,612.50 0.00 101,612.50 Security deposits 900.00 60,674.93 61,574.93 Deposits by borrowers 526,363.94 0.00 526,363.94 Loans held in trust 252,286.16 0.00 252,286.16 Rebate liability 74,070.12 0.00 74,070.12 Total Payable from restricted assets 6,242.711.65 60,674.93 6,303,386.58 Total Liabilities 6,542,803.87 405,112.60 6,947,916.47

Net position Invested in capital assets, net of related debt 0.00 6,706,125.86 6,706,125.86 Restricted 3,241,395.58 43,035.34 3,284,430.92 Unrestricted 28,321,619.64 2,545,640.86 30,867,260.50 Total Net position 31,563,015.22 9,294,802.06 40,857,817.28

Total liabilities and net position 38,105,819.09 9,699,914.66 47,805,733.75

Oate: 2{J3/15 11:01:59 AM Page: 1 Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 1/1/2015 Through 1/31/2015

Prior Year Current Current Period Actual Period Actual

Operating Revenues: Interest on loans receivahle 115,797.87 142,IO:n-l Rental Income 82,605.02 84,506.64 Interest on investments held by bond trustees 7,083.34 13,271.54 Loan origination fees 6,300.00 0.00 Late fees, service fees & return check fees 5,412.48 4,844.04 - -- Total Operating Revenues: 217,198.71 244,725 .56

Operating Expenses: Interest expense MRB 20,322.50 20,991.25 Interest expense notes payable 0.00 4,004.77 Salaries 120,176.17 118,803.74 Bad debts and provision for loan losses 0.00 3,096.00 Retirement contrihutions 34,628.43 36,281.43 Retiree supplemental, cola & health benefits 18,746.77 12,558.80 First Time Homeowner's Assistance Program 0.00 0.00 Depreciation 14,739.56 13,852.17 Contractual services 7,548.18 11,096.40 Professional services 5,998.42 4,512.42 Rent 8,754.50 8,754.50 Other 6,105.24 5,158.32 Loan origination costs 928.47 0.00 Travel 0.00 0.00 Employee benefits, other than retirement 7,712.35 6,176.75 Maintenance 303.18 2,978.40 Bond trustee fees 1,191.83 1,083.50 Directors' fees 200.00 200.00 Loss on disposal of assets 0.00 0.00 Total Operating Expenses: 247,355.60 249,548.45

Non-operating Revenue (Expenses) Interest income on bank deposits 1,304.93 900.19 Gain/(loss) on assets 0.00 0.00 Other income 530.00 619.99 Total Non-operating Revenue (Expenses) 1,834.93 1,520.18

Change in net position (28,321.96) (3,302.71) Total net position at beginning of month 40,886,139.24 41,118,963.58

Net position at end of year 40,857 ,817 .28 41 ,115 ,660.87

D.le: 2123/15 11:08:50 AM Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 111/2015 Through 113112015

Housing Division Rental Division Total

Operating Revenues: Interest on loans receivable 115,797.87 0.00 115,797.87 Rental Income 950.00 81,655.02 82,605.02 Interest on investments held by bond trustees 7,083.3-l 0.00 7,083.:H Loan origination fees 6,300.00 0.00 6,300.00 Late fees, service fees & return checl-.. fees 4,812.48 600.00 5,412.48 Total Operating Revenues: 134,943.69 82,255.02 217,198.71

Operating Expenses: Interest expense MRB 20,322.50 0.00 20,322.50 Interest expense notes payable 0.00 0.00 0.00 Salaries 69,351 .55 50,824.62 120,176.17 Bad debts and provision for loan losses 0.00 0.00 0.00 Retirement contribution!> 19,625.31 15,003.12 3-l,628.43 Retiree supplemental, cola & health benel'its 12,321.73 6,425.0-l 18,746.77 Depreciation 0.00 1-l,739.56 14,739.56 Contractual services 2,107.02 5,441.16 7,548.18 Professional services 4,778.75 1,219.67 5,998.42 Rent 8,75-l.50 0.00 8,754.50 Other 1,790.97 4,314.27 6,105.24 Loan origination costs 928.47 0.00 928.47 Employee benefits, other than retirement -l .732.04 2,980.31 7,712.35 Maintenance 0.00 303.18 303.18 Bond trustee fees 1,191.83 0.00 1,191.83 Directors' fees 200.00 0.00 200.00 Total Operating Expenses: 1-l6 104.67 101,250.93 2-l7,355.60

Non-operating Revenue (Expenses) Interest income on bank deposits 867.98 436.95 1,304.93 Other income 20.00 510.00 530.00 Total Non-operating Revenue (Expenses) 887.98 946.95 1,834.93

Change in net position ( 10,273.00) ( 18,048.96) (28,321.96) Total net position at beginning of month 31,573,288.22 9,312,851.02 40,886,139.24

Net position at end of year 31 ,563,015.22 9,294,802.06 40,857,817.28

Dale: 212~f15 IO:5K:03 AM Page I Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 10/1/2014 Through 113112015

Current Year Actual Prior Year Actual

Operating Revenues: Interest on loam, receivable 513,370.13 560,222.18 Rental Income i28,331 .08 321,603.49 Interest on investments held by bond trustees 32,529.88 58,046.62 Loan origination fees 16,324.00 7,064.61 Late fees, service fees & return check fees 16,284.68 16,415.81 ._- Total Operating Revenues: 906,839.77 963,352.71

Operating Expenses: Interest expense MRB 81,290.00 83,965.00 Interest expense notes payable 0.00 19,136.13 Salaries 462,851 . 12 455,647.59 Bad debts and provision for loan losses 0.00 3,096.00 Retirement contributions \40,545 .87 136,883.67 Retiree supplemental, cola & health benefits 74,987.05 50,133.60 First Time Homeowner's Assistance Program 0.00 0.00 Depreciation 58,8\0.39 54,932.08 Contractual services 30,553.40 33,586.09 Professional services 28,434.56 19,448.42 Rent 35,018.00 35,018.00 Other \5,901.00 14,358. 1'+ Loan origination costs 3,855 .93 4,389.28 Travel 0.00 0.00 Employee benetits, other than retirement 28,368.49 23 ,672.66 Maintenance 32,940.43 8,384.87 Bond trustee fec~ .+,767.32 4,334.00 Directors' fees 600.00 600.00 Total Operating Expenses: 998,923.56 947,585.53

Non-operating Revenue (Expenses) Interest income on bank deposits 4,740.79 4,405.42 Gain/(Ioss) on sale of assets 0.00 0.00 Other income 3,674.90 869.99 Loss on disposal of assets 0.00 0.00 Total Non-operating Revenue (Expenses) 8,415.69 5,275.41

Change in net position (83,668.10) 21,042.59 Total net position at beginning of year 40,941,485.38 41,094,6\8.28

Total net position of end of year 40,857,817.28 41 ,115,660.87

DaIC: 1123115 II :35:0H AM Guam Housing Corporation Statement of Revenues, Expenses and Changes in Net Position From 10/1/2014 Through 113112015

Housing Division Rental Division Total

Operating Revenues: Interest on loans receivable 513,370.13 0.00 513,370.13 Rental Income 3,850.00 324,481.08 328,331.08 Interest on investments held by bond trustees 32,529.88 0.00 32,529.88 Loan origination fees 16,324.00 0.00 16,324.00 Late fees, service fees & return check fees 14,01-+.68 2,270.00 16,284.68 Total Operating Revenues: 580,088.69 326,751.08 906,839.77

Operating Expenses: Interest expense MRB 81,290.00 0.00 81,290.00 Interest expense notes payable 0.00 0.00 0.00 Salaries 264,320.47 198,530.65 462,851.12 Bad debts and prO\ ision for loan losses 0.00 0.00 0.00 Retirement contributions 80,101.96 60,443.91 140,545.87 Retiree supplemental, cola & health benefits 49,286.89 25,700. Hi 7-+,987.05 Depreciation 0.00 58,810.39 58,810.39 Contractual services 12,198.52 18,354.88 30,553.40 Professional services 24,365.89 4,068.67 28,434.56 Rent 35,018.00 0.00 35,018.00 Other 3,990.36 11,910.6-+ 15,901.00 Loan origination costs 3,855.93 0.00 3,855.93 Employee benefits. other than retirement 17,043.70 11,324.79 28,368.49 Maintenance 0.00 32,940.4:1 32,940.43 Bond trustee fees -+,767.32 0.00 -+,767.32 Directors' fees 600.00 0.00 600.00 Total Operating Expenses: 576,839.04 422,084.52 998,923.56

Non-operating Revenue (Expenses) Interest income on bank deposits 2,992.26 1,748.53 4,740.79 Other income 290.00 3,384.90 3,674.90 Total Non-operating Revenue (Expenses) 3,282.26 5,133.43 8,415.69

Change in net position 6,531.91 (90,200.0 I) (83,668.10) Total net position at beginning of year 31,556,483.31 9,385,002.07 40,941,485.38

Total net position of end of year 31 ,563,015.22 9,294,802.06 40,857,817.28

Date: 2123115 IO:SK ~'AM Guam Housing Corporation Budget vs Actual From 10/1/201-l Through 1131/2015

Total Budget S - YTD Budget S - Current Year Over (Under) Remaining Original Original Actual Budget Variance Balance

Operating Revenues: Interest on loans receivable 1,594,239.30 531.413.12 513,370.13 ( 18,042.99) (3.3900%) 1,080,869.17 Rental Income 951,456.00 317,152.00 328,331.08 11.179.08 3.5200% 623,124.92 InI.:rest on invc,tmcnts held hy bond 112.132.00 37.377.32 32.529.R8 (-l,8-l7,44 ) (12.9600'11 ) 79.602.12 trust.:cs Loan origination fees 41.330.00 13.776.68 16.J2-l.00 2.5-l7.32 I H,4900r, 25.006.00 Late fc.:s. service fe.:s & r.:turn .:heck fees 44.640.00 14.8!l0.00 16.28H8 IAOH8 9.44007< 28.15) 12 Total Operating Revenues: ------2.743. 797 .30 __ ...2.!.i.599.12 906.83UJ.. 0.759.35) (0.8484'7< ) 1.816.9)7 )1

Operating Expenses: Inlerest expense MRB 1-l1.622.-l1 RO.5-l0.80 81.290.00 (7-l9.20) 0.9300'7r 160.331,41 Interest expense notes payable 0.00 0.00 0.00 0.00 0.0000'7c 0.00 Salaries 1.1-l2.775.80 H7.592.00 -l62.851.12 ( 15.259.12) 3.40007< 879.924.68 Bad dehts and prm ision I'm loan losses 98.700.00 11.900.00 0.00 12.900.00 ( 100.0000'11 ) 98.700.00 Retirement contributions -l29,577.86 143.192.6-1 1-10.5-15.87 2.646.77 ( I. 8400'lc) 289.031.99 Retiree supplerm:ntal, cola & health 225.321.68 75.10724 74,987.05 120.19 (O.1600'le) 150,334.63 hcncfits Ocpr.:ciation 191.14-173 63.71-l91 5!l.HIOJ9 -1.90-151 (7.6900'7r ) 131.334.34 Contractual services 117.17167 -I2.457.2R 30.553.40 11.90188 (18 0300r,~) 96.818.27 Professional servi<:es 105,16000 15.0!l6.6-1 2R,43-1.56 6.652.0R ( 18.9500'7r) 76.825.44 R.:nt I 50.R70 00 50.29000 35.018.00 15.27200 (101600'11 ) 115.R51.00 Other H7,44-170 29.148.31 15.901.00 13.1-17.32 (-15 -1400'11) 71.543.70 Loan origination .:ost, 24.000.00 X.OOO 00 3.855.93 -I.1-l407 (51.80007< ) 20.144.07 Travd 0.00 0.00 0.00 0.00 o OOOO'le 0.00 Employee benefits. other than retirement R6.292.00 28.76396 28.368.49 395.47 (1 .37007< ) 57.923.51 Maintenan.:e 65.10000 21.76660 12.9-10,43 111.17lHl) 51 1100'7r 32.359.57 Bond trust.:c fecs 16.40000 5.46668 4.767.32 69916 (1279007<1 11.6.11.68 Directors' fecs -1.200.00 1.400.00 600.00 800.00 (57 1400'7c) 3.600.00 Total Op.:rating bpen,c>. 1.196.1XOR5 1.065.427 OR 99R.923.56 66.)0152 _ (62-1207< ) __ 1.1,'L7 .357 .29

Non-operatlOg Revcnue (Expenses) Interest income on hank deposits 9.021.00 3.00700 -1.7-1079 1.73379 5765007< -1.280.11 Other income -1-14.1-1962 1-18.116,6 3.67-190 ( 1-I-I.4-l1.66) (97 51 OO'k) 440.67-1.72 Total Non-operating Revenue (Expenses) 4)1.1706 I) 1.123 'i6 8:.:!,15.69 (1-l1.70787) .19-1.41117< ) __~~4.954.93

Change in net position 887.07 295.60 (83,668.10) (83,963.70) (28404.4891 %) 84,555.17 Guam Housing Corporation Statement of Cash Flows As of 1/31/2015

Housing Division Rental Division Total

Cash Flows ('rom Operating Activities Net Gain (Loss) 6.531.91 (90.200.0 I) (83.668.10) Depreciation less disposal of asseb 0.00 58.SI0.39 58.SI0.39 (Increase) decrease in accrued interest and other~ 658.IS (9~2.72) (2S~.54) (Increase) decrease in prepaid expenses and others (~S . 951 . 74) (7.142.S9) (56.09~.63) Increase (decrease) in accrued pension costs 0.00 0.00 0.00 Increase (decrease) in other liahilities 588.320.58 ~S.635.27 626.955.S5 Increase (decrease) in deposits by borrower~ (196.909.01 ) (1.51~.08) ( I 98A23.09) Increase (decrease) in loans held in trust (7.19907) 0.00 (7.199.07) Total Cash Flow, from Operating Activitks 342A50 S5 (2.354.04) 3~O.096 SI ------Cash Flows from Investing Activities Net (increase) decrease in loam receivahle, (ISS.7~6.12) 0.00 (18S.746 12) Net (increase) decrease in other receivahle~ 28A9~.26 (42.695.39) (1~.201.\3) (Cost) sale of ('orec\osed houses 0.00 0.00 0.00 (Purchase) disposal of property and equipment 0.00 (IS.230.S2) ( IS.2~0.S2) (Purchase) sale of investment securitie, (n.l)~7.24) 0.00 (32.937.24 ) Total Cash Flows from Investing Activities (193.IS9.10) (60.926.21 ) (25~.115.~1)

Cash Flows from Financing Activities Repayment of notes payable 0.00 (J.OO 0.00 Repayment of bonds payahle 0.00 0.00 0.00 Accrued interest on honds payahle SI.290.00 0.00 81.290.00 Accrut.!d rehatt.! liability 0.00 0.00 0.00 Premium on bonds payablt.! 0.00 0.00 0.00 Total Cash Flows rrom Financing Activitie., SI.290.00 0.00 81.29000

Net increase (decrease) in cash DO.551.75 (63.2S0.25 ) 167.27\.50 Cash at beginning of year 5.113.9S9.92 2.21\.807.35 7.325.797.27

Cash at end of year 5344,541.67 2.148.527.10 7,493.068.77

Date: 2123115 \O:59:5~ AM GUAM HOUSING CORPORATION DAIL Y CASH POSITION

FOR THE PERIOD ENDED January 30, 2015

CASH ON HAND = CHANGE FUND $0.00 PETIY CASH FUND 145.10 Total cash on Hand $145.10

CASH IN BANK - TCD AND TRUST ACCOUNT: ACCRUED DATE DATE NO. INTEREST TCDfTRUST ACCT. BANK PURCHASED MATURED DAYS RATE AMOUNT EARNED

CMA - Operations - Cash MC 5MC-1S2334 31-Dec-14 31-Jan-1S 31 0.00000% 0.00 0.00 CMA - Oper Deutsche Bk FDIC Ins Del MC 5MC-152334 31·Dec-14 31-Jan-15 31 0.00000% 45.69 0.00

TCDs - Opera lions

0 -·----45"'69 - 0.00

CMA ACCT - T/F MC 5MC-189914 31-Dec-14 31-Jan-15 31 O.OOOOO~ , 0.00 0.00 CMA - TF Deutsche Bk FDIC Ins Dep. MC 5MC-189914 31-Dec-14 31-Jan-15 31 0.00000·. 208.84 0.00

Bankunited Nail Assn MC 5MC-189906 19-Dec-14 19-Jun-15 182 0.30000·. 135.000.00 201.95 Bank of Baroda MC 5MC-189906 09-Dec-14 09-Sep-15 274 0.40000~. 136.000.00 408.37 271,208.84 201.95

CMA . Cahat . Cash MC 5MC-152763 31-Dec-14 31·Jan-15 31 0.00000% 0.00 000

0 0.00 0.00

CMA - Revolving Loan Fund - Cash MC 5MC-146229 31-Dec-14 31 -Jan-15 31 0.00000% 0.00 0.00 CMA - RLF Deutsche Bk FDIC Ins. Dep MC 5MC-I46229 31-Dec-14 31-Jan-15 31 0.00000% 21.02 0.00 TCDs - Revolving Loan Fund

0 21.62 0.00

CMA . Foreclosure Fund - Cash MC 5MC-189906 31-Dec-14 31-Jan-15 31 0.00000% 0.00 0.00 CMA - FPF Deutsche Bk FDIC Ins. Dep MC 5MC-189906 31-Dec-14 31-Jan-IS 31 0.00000% 32.61 0.00

Firstbank P R Santurce MC SMC-189906 06-Jan-IS 05-Jun-15 150 0.40000% 96.000.00 157.81 Goldmans Sachs Bk USA New York MC 5MC-189906 27-Aug-14 27-Aug-15 365 0.40000% 250.000.00 1.000.00 Goldman Sachs BK USA New York MC 5MC-189906 10-Dec-14 10-Dec-15 365 0.40000% 155.000.00 620.00 2 501.032.61 1.157.81 3 $772.30816 $1.35976 Cahat (PL21-136) Checking Account: AlC 0601-022867 202,635,30 210,692.66 FTH-RF (PL24-180) Checking Account: AlC 0031-033250 o FTH-RF (PL31-166) Savings Account: CF AlC 144340-01 100,10 HMRLF (Grant JV2011-174 5/2011) Checking Account: BOG AlC 0602-010855 151 ,869.84 FHLB of SEATILE FUND AlC 990020019 41,451.80 NOTES PAY. FUND BOG Operations Fund/Checking Account: Beginning Balance, 12131/2014 BOG =AlC 601-018773 51,794,046.43 o 359,929,24 Deposlls (IN-TRANSIT) 0.00 Disbursements ------.--- LOANS (15,000.00) INTERFUND (114,254.80) ALL OTHERS _....1.:(1.::,64::.c.157 ,37) (293,412.17) Approved Disbursements - Loans 0.00 NET SRF MONEY Approved Disbursements All Others 0,00 51,860,563.50 S.§!2§,788.B4

Bank of Guam Revolving Loan Fund/Checking Account: Beginning Balance, 12131/2014 BOG = AlC 0601-022902 51 ,151,731.61 DepOSits 39 ,802,90 Disbursemenls -.••• -.• _-....••••. -•• LOANS 0,00 Net R LOAN FUND OTHERS 0,00 51,191,534.51 $306 ,320 .56 Bank of Guam Trust Fund/Checking Account: add amount In rlf tcd $306,342 Beginning Balance. 12 31 2014 BOG =AlC 0601-022895 5122,663.82 Deposils 37,412.39 Disbursements 19,252.66) 5140,823.55 FTH-RF (PL31-166) Checking account Beginning Balance, 1231 2014 CFCU = AlC 144340-02 S980,197.24 Deposits 3,119,85 Disbursements (79,681,37) S903,635.72 $643,806.21 Bank of Guam Borrower's Deposit/Checking Account: Beginning Balance. 12131 120 14 BOG = AlC 0601-022882 5109,972.87 Deposils 11,22 Disbursements (30 ,510.00) S79,474.09 TOTAL CASH IN BANK $4,572,088 TOTAL CASH AVAILABLE 55,344,541 .67 Less Borrowe(s Deposits held In Trust Trust Fund (Insurance & R.E Taxes) (446,844.43) Loan Service (Borrowe(s DepOSits ) ($79,51951) TOTAL BORROWER'S DEPOSITS (5526,363,94) Less, Loan Commitments Balance' Prior Approval (5) 673.000 = SRF (673,000,00) New Approval 0 o ~ SRF 0.00 Prior Approval (9) 927.424 = RI5 (927.423.90 New Approval 0 o '" R/5 000 Prior Approval 0 000 = CAHAT 000 New Approval 0 o = CAHAT 000 New Approval (34) o s FTHRF (258,729,51 ) RESERVE FOR NEW APPROVAL - DOWN PAYMENT = DPCCA 0.00 TOTAL COMMITMENT BALANCE (51 ,859 ,153.4 1) Reserve: For CAHA T Loans (NET OF INVESTMENT LOSS =5248 ,157,691 reptinshed per MEMO 9/2512009) (210.692.66) Foreclosure Protection Fund (NET OF INVESTMENT LOSS =5124 ,078 ,841 replinshed per MEMO 9/2512009) (500.000,00) Hazard Mitigation Loans (151,869,84) First Time Homeowners (903,735 82) BOND ISSUE / LADA PROJECT (21 ,500.00) AVAILABLE: FOR FIRST TIME HOMEOWNER RELIEF FUND 186.10 Reserve: GRC Bonding Self-Insured (Transferred to oper. fund as of 7/3/97) 0.00 Reserve: SINKING FUND FOR = FHLB NOTES CASH "YAIIl'ABI!EIF.OR OI'ERATlONS $1,171,412,10 Less: GRC COLLECTIONS FOR INTERFUND January 31, 2015 (100.00) Less: SAGAN LlNAHYAN (Loans transferred back to GHURA August 2004) 0.00 Less: DPCCA Collections as of January 31, 2015 (1,887,30) Less: Unapplied Balance as of January 31, 2015 (38,620.49) Less: TYPHOON CLAIMS FOR REFUND 01/31/2015 (3,854.95) (44,462,74) TQTAl t1~126.$9!3!J Less: Loan Repayments for the month - FHLB 0.00 Memorandum of Understanding wi Geda 0.00 Retirementlnv. for early buyout for 2 former employees 0.00 GSAlDOA Balance (18,241.17) Monthly Recurring Expenses (15,000.00) $1 ,093l7U8!19J NOTE: Deposits to S.R.F. - Due to Interfund Accounts: Borrowers' Deposit 45.42 Trust Fund 34,812.04 Revolving Loan Fund 01/2015 amount to transfer 42,209.95 Cahat 01/2015 to transfer 8,057.36 First Time Homeowners Assistants Program 01/2015 4,123.72 Hazard Mitigation 01/2015 to transfer 322.26 89,570.75 GHC - LADA GARDENS CASH POSITION AS OF JANUARY 31, 2014

DATE MATURITY ACCOUNT NO. TCD-BANK BANK PURCHASED DATE TERM RATE AMOUNT TCD #040216 - 1873 TSD BOG BOG 01/22/2015 04/2212015 90 0.1200% $38,136.78

TCD #040216 - 3880 EHF BOG BOG 11/03/2014 0210112015 90 0.1200% 86,147.17

CMA-SIF Money Concepts #5MC-152326 MCCP 12/31/2014 01/31/2015 31 0.0000% 0.00 CMA-SIF Deutsche Bank FDIC Insur. Dep. MCCP 12/31/2014 01/31/2015 31 0.0000% 264.41 Self Insurance Fund - TCDs' Beal Bank USA Las Vegas Nev. CD MCCP 05/21/2014 05/20/2015 364 0.2500% 249,000.00 Discover Bank Greenwood Del. CO MCCP 05/21/2014 05/21/2015 365 0.2500% 166,000.00 Apple Bank for Svgs. N Y CD MCCP 05/28/2014 05/28/2015 365 0.2500% 249,000.00 Firstbank P R Santurce CD" MCCP 01/06/2015 06/05/2015 150 0.4000% 21 ,000.00 Oriental Bk & TR San Juan P R CD' MCCP 01/2212015 08/21/2015 211 0.5000% 21,000.00 Goldman Sachs Bk USA New York CD MCCP 09/10/2014 09/10/2015 365 0.4000% 249,000.00 Bank of China New York City NY CD MCCP 09/10/2014 09/10/2015 365 0.5500% 21,000.00 Bank Baroda New York City N Y CD MCCP 01/13/2015 01/13/2016 365 0.3500% 22,000.00 998,264.41

CMA-RFR Money Concepts #5MC-152458 MCCP 12/31/2014 01/31/2015 31 0.0000% 0.00 CMA-RFR Deutsche Bank FDIC Insur. Dep. MCCP 12/31/2014 01/31/2015 31 0.0000% 879.10 Reserve for Replacement - TCDs' Firstbank P R Santurce CD" MCCP 01/16/2015 05/15/2015 119 0.3000% 215,000.00

215,879.10

CMA-OPER Money Concepts #5MC-170542 MCCP 12/31 /2014 01 /31 /2015 31 0.0000% 0.00 CMA-OPER Deutsche Bank FDIC Insur. Dep MCCP 12/31 /2014 01/31/2015 31 0.0000% 0.00 Lada Operations - TCDs'

0.00 'Pays Monthly $1 ,338,427.46

Operation: Checking Acct #7008033778 Bank Pacific 12131/2014 $727,220.78 Deposits 57,375.35 Disbursements (56,834.72) Sub-Total 727,761.41

Less: Restricted Accounts: Reserve for Replacement (461,777.44) Reserve for Emergency Housing (15,392.41) Self Insurance Fund 0.00 -Premo Trf. to TC[ Reserve for Contracts 0.00 Sub-Total (477,169.85) Balance Operations $250,591.56

Tenant Security Deposit: Checking Acct #7008033760 Bank Pacific 12131/2014 $27,890.55 Deposits 628.62 Disbursements (550.00) Sub-Total 27,969.17 Balance Tenant Security Deposit Checking Accounts 27,969.17

Total Cash Available 1,616,988.19

Less: Tenant Security Deposit (50,974.93)

Cash Available for Operations and Reserve $1,566,013.26

GRC Restricted Accounts Reserve for Replacement 215,879.10 Operations 0.00 Self Insurance Fund 998,264.41 Emergency Housing Fund 86,147.17 (1,300,290.68)

TOTAL CASH AVAILABLE FOR OPERATIONS $265,722.58 GHC - GUMA AS-ATDAS CASH POSITION AS OF JANUARY 31, 2014

Operation: Checking Acct #7008033786 Bank Pacific 12/31/2014 $13,581.59 Deposits 5,571.99 Disbursements (12,269.69)

Balance Operations $6,883.89

Tenant Security Deposit Checking Acct #7008033964 Bank Pacific 12/31/2014 $8,133.20 Deposits 1.00 Disbursements (500.00)

Balance Tenant Security Deposit Account 7,634.20

Total Cash Available 14,518.09

Less: Tenant Security Deposit (6,450.00)

Cash Available for Operations and Reserve 8,068.09

As-Atdas Restricted Accounts Reserve for Replacement 0.00 Trust Fund (Insurance) 0.00 Self Insurance Fund 0.00 0.00

TOTAL CASH AVAILABLE FOR OPERATIONS $8,068.09 GHC - SAGAN LlNAHYAN CASH POSITION AS OF JANUARY 31,2014

Operation: Checking Acct #144340-4 Comm. 1st Fed. Credit Union 12/31/2014 $32,974.52 Deposits 3,858.83 Disbursements (298.35)

Balance Operations $36,535.00

Tenant Security Deposit Checking Acct #144340-6 Comm. 1st Fed. Credit Union 12/31/2014 $3,315.27 Deposits 0.70 Disbursements 0.00

Balance Tenant Security Deposit Account 3,315.97

Total Cash Available 39,850.97

Less: Tenant Security Deposit (3,250.00)

Cash Available for Operations and Reserve 36,600.97

As-Atdas Restricted Accounts Reserve for Replacement 0.00 Trust Fund (Insurance) 0.00 Self Insurance Fund 0.00 0.00

TOTAL CASH AVAILABLE FOR OPERATIONS $36,600.97 Guam Housing Corporation Orher Real Estate Ovmed Summary Roport Estimatod 8501 January 31, 2015 Gain! (loss) Bod Over! 10~a (if saki at OebV Nol (Under) Estimated current loan Date Properly OREO loan loss AIR Mort. OR EO OR EO Appraised Beak Seiling appraisod Borrower Co-Borrower Number Foreclosed locahon Asset Reserve DeHciencies Assets Expenses Value As 01 Appraiser Value Cost value) 1 Anthony C. Samiliaoo Bemadita A. Samiliano 18301341 July26,1999 lot 219, Mumcipality of Agal 58,048.57 0.00 58048.57 5,049.18 90,600.00 03/27/2013 Ciliol Appraisals 27,502.25 9,060.00 18,442.25 2 Anthony E. Eclavea Bobbie C. Eelavea 59302238 July 27, 1999 Lot 89-4·2 SinaJana 95,526.41 95,526.41 0.00 000 41,000.00 04/1812012 Robort & Robort Appraisers, I. 41,000.00 4,100.00 36,900.00 3 Juan A. Ouidachay 49702395 & 79702395 February 02, 2009 lot No.09, Block No.25, New Agal 62,42473 7.42473 55000.00 1741.25 132,000.00 06/06/2014 Robort & Robert Appraisers, h 75,258.75 13,200.00 62,058.75 4 James E. Nelson III 59802430 Docember 28. 2010 lot No. 26-6-2-1, Mumclpality 01 Talololo, Territory of Gl 145,797.78 13,328.50 3.469.28 129.000.00 4.49344 164,800.00 0513012014 Chiol Appraisals 31,306.56 16,480.00 14,826.56 5 Rosemarie B. Perez Vincent C. Villaloto 11002838 April27,2012 lot 172·1·1, Agal, Guam. Estate Number 13908, Suburt 143,964.99 1840.93) 0.00 144.805.92 181065 161,50000 OS/29/2014 Chlol Appraisals 14,883.43 16,150.00 (1,26657J 5 Total 505,762.48 115.43871 3,469.28 386.854.49 1309452 589,900 00 175,067.56 42,840.00 132,227.56

399949.01

Qc-2064

24 February 2015

To: President

From: Quality Assurance Officer

Subj: Summary review, with respect to Compliance, of Guam Housing Corporation’s statement of finances including its:

a) Financial Posture b) Collateral Position c) Accounting of funds d) Debt Service e) Operations f) Financial report g) Reports due h) Portfolio i) Summary

Reference reports include:

a) the latest unaudited financial report, month ending 31 January 2015 b) cash position as of 31 January 2015 c) projected principal and interest summary as of 31 January 2015 d) budget for fiscal year 2015 e) revenue and expense report fiscal year 2015 to date

Issues of Interest:

The Draft Rules for the Housing Trust Act and Lending Capital Program and funding source initiative has been fine-tuned, we have initiated a resolution readdressing GHC Board of Director’s support for these initiatives, will bring the Governor, who stresses support, up to date and are in pursuit of legislative action.

The Draft Rules for the Mortgage Credit Certificate Program are stalled.

Collateral position

Of the corporation’s $ 29,877,732 portfolio;

Legal; $ 3,320,717 of these have been targeted for foreclosure or other legal action.

There is $ 2,060,103 in program loans.

Accounting of funds

(this review was conducted prior to the completion of the month end financial report and may vary with reports initiated by accounting. These variances may stem primarily from inter-fund transfers. Based on information noted in the “Daily Cash Position”

The corporation holds a number of bank accounts as of 31 January 2015 including: a) CAHAT: Bank of Guam $ 202,635.30 Money Concepts $ 000.00 to be inter-funded: $ 8,057.36 Committed to new loans ( $ 00,000.00) Available funds...... $ 210,692.66 b) First Time homeowner Relief Act $ 903,635.72 to be inter-funded: 4,123.72 Committed: ($ 258,729.51) Available funds: ……………………………………… $ 647,929.93 c) Hazard Mitigation, Bank of Guam $ 152,192.10 d) Federal Home Loan Bank of Seattle $ 41,451.80 e) Operations:

*Bank of Guam account (gross) $ 1,836,314.97 Committed, ops or inter-fund: Program funds $ ( 44,462.74) For Inter-fund $ ( 89,570.75) 3

Operations $ ( 177,195.70) Reserves $ ( 21,500.00) Committed to new loans $ ( 673,000.00) Reservations $( 00.00) *Total committed, ops or inter-fund: $( 1,005,729.19)

*Bank of Guam, ops, available funds $ 832,585.78 Merrill Lynch, TCDs $ 00.00 Money Concepts TCDs $ 45.69

Total available funds (for operations )………………...... 832,631.47 e) BoG Revolving Loan Fund (6% loan funds):

Bank of Guam account (gross) $ 1,191,534.51 Funds transfer (inter-fund) $ 42,209.95 Total...... $ 1,233,744.46 (Committed, new loans) ($ 927,423.90)

Available funds, Bank of Guam...... $ 306,320.56 Money Concepts $ 21.02

Total available funds ...... $ 306,341.56

f) Borrower’s Trust Fund account, restricted:

Bank of Guam $ 140,823.55 Money Concepts TCDs $ 271,208.84 Funds transfer (inter-fund) $ 34,812.04 Total, Borrower’s Trust Fund, gross $ 446,844.43

g) BoG Borrowers Deposit, restricted:

Amount to inter-fund $ 45.42 Amount on deposit $ 79,474.09 Total $ 79,519.51

h) TCDs Foreclosure Protection Fund, restricted: $ 501,032.61

The balances in the following accounts are reflected as of 31 January 2015

i) Rent operations, Lada Gardens;

Bank Pacific $ 727,761.41 Money Concepts Reserves $ (486,868.17) Total…………………………… $ 240,890.24 4

Available funds...... $ 240,893.24

j) Tenant security (restricted)

Bank Pacific $ 27,969.17 Bank of Guam TCD $ 38,136.78 Total...... $ 66,105.95

k) Self-insurance fund (restricted)

Bank of Guam TCD $ 00.00 Money Concepts TCD $ 998,264.41 Bank Pacific $ 000.00 Reserves for Asat-Das /etc $

Total...... $ 998,264.41

l) Reserves for replacement:

Bank of Guam TCD $215,879.10 Bank Pacific $471,475.76 Total $687,354.86

$ 400,000 will be transferred from the RFR for the Asat-Das/Sagan reservation reflecting an available balance of ………………………… m) Emergency housing fund,

Bank of Guam TCD $ 86,147.17 Bank Pacific $ 15,392.41 Total...... $ 101,539.58 n) As-Atdas Operations, Bank Pacific ……………………………….. $ 6,883.89 o) Tenant security deposit (restricted) ……………………………….. $ 7,634.20

Total cash available for operations Rental Division ………… $ 240,893.24

Summary of Committed funds:

Total committed to Affordable home program ………………… $ 500,000 ? Total committed to Asat-Das/Sagan …………………………… $ 400,000 ? Total committed to borrower’s mortgages ………………………… $ 1,600,423 Total committed to the FTHOA program …………………………. $ 258,730 Total committed ………………………………………………………………….. $1,859,153

5) Debt Service and Operations

Operations:

Personnel (incl benefits) $ 157,952 monthly, average Miscellaneous other, recurring $ 22,201 monthly, average retirees, cola, sup $ 23,567 monthly, average Rental, other $ 20,410 monthly, average

Total...... $ 224,130 mthly, average

CASH outlay for this month includes building renovations, $23,823; plus retiree’s benefits of $ 141,402

6) Financials; including Rental assets and liabilities:

A) Balance Sheet;

1) Assets:

Assets total $ 47,805,734 encompassing all monetary instruments and receivables; principal with respect to the “unrestricted” regular portfolio, $ 27,717,389 it may be noted that this is $ 1,027,298 less than the previous year and, as previously noted the corporation has $ 2,049,856 in its program portfolio. It also includes interest, accrued or $ 56,746. The allowance for loan losses equates to $ 576,418. There have been $------in losses written against this account fiscal year to date.

2) Other assets:

The land and land held for development includes foreclosed assets total $ 399,949 other buildings, rental units include $ 6,665,546.

3) Investments and Restricted assets:

This includes loans written against the Mortgage Revenue Bond and funds placed with the Bond Trustee with respect to the cost of issuance totaling $ 3,829,892; the Foreclosure Protection Fund at $ 501,033 and $ 6,992,036 in restricted and unrestricted cash for special programs or trust including lending and rental operations and the self-insurance fund.

4) Liabilities

Liabilities, short term and long, $ 252,286 in loans held in trust. Liabilities also include bonds payable around $ 4.42 million, the balance of the liabilities include $ 526,364 & 61,575 (escrow & borrowers deposits and tenant security) funds held in trust; $ 74,070 for the rebate liability with respect to the MRB. Total Liabilities equal $ 6,947,916.

5) Net Assets:

Capital assets including buildings, vehicles or furniture at $ 6,706,126; Restricted assets including the revolving loan fund, CAHAT, foreclosure protection fund and escrow funds at $ 3,284,431 and Unrestricted assets including operational cash and loans receivable at $ 30,867,261 for a total of $47,805,734.

B) Income Statement

1) The income for the period, fiscal year ‘15 to date reflects a loss of ($ 83,668), the income for the month reflects a loss of ($28,322).

2) The interest on loans receivable is exclusive of any accruals beyond 90 days.

C) Cash on Cash

The corporation has completed four month(s) of fiscal year 2015. The corporation’s cash available for operations was less than cash expended including capital outlays by $ 33,632 average per month, this includes the recovery of $860 or $ 215 average per month in interest previously placed in non-accrual, otherwise interest income was less than forecast by 3.66 %; $ 19,473 or $ 4,868 per month.

( the “cash available for operations” include rent receipts AND is compensating for the lower interest rates in portfolio driven income; the average interest income from loans (portfolio) and other investments (TCD’s); is reflected at $ 190,498 with monthly expenses at $ 224,130 or insufficient by $ 33,632

The net increase in the corporate portfolio fiscal year to date is at $ 202,661

7) Cash Projections:

8) Reports

a) The corporation is required to submit its audited financial report to;

1) Bond Trustee within 180 days of the fiscal years end and,

2) The Speaker of the Guam Legislature;

All reports have been completed on time, communicated via e-mail to addressees and available on the Guam OPA’s web site. b) The corporation is further required to prepare a separate annual report reflecting the performance of its loan portfolio as directed.

c) Other reports as directed

9) Portfolio

The corporation’s portfolio consists of a total of 417 loans encompassing $ 29,767,243 of these, 31 files totaling $ 863,837 are USDA loans; the others, 106 files, totaling $ 2,060,103 in funds accounted for in three (3) other, Interest and non- interest bearing categories: a) First Mortgages

As of 31 January 2015 the corporation’s general loan portfolio of first mortgages stood at $ 27,717,387 consisting of 311 loans with a weighted average of 5.71 %.

2) Of these, The Revolving Loan Fund encompasses 150 loans with a current principal balance of $ 15,418,958

3) Also, and in partnership with the Rural Development program, the corporation has funded first mortgages for 31 loans within those included above in the 6% Revolving Loan Fund Program reflecting a balance of $ 863,837; (For the most part the corporation funds 20% of the applicants loan while holding 1st lien position with the balance or 80% funded by Rural Development).

b) Second Mortgages; Third Mortgages, or “other” special category, program loans are as follows:

1) The portfolio for Hazard Mitigation is comprised of one loan or $ 10,150;

2) The Community Affordable Housing Action Trust includes 74 @ $ 1,789,307;

3) Down Payment and Closing Cost Assistance program includes 31 @$ 250,399;

c) Grant; (From the First-time Homeowner Relief Act of 1998)

1) The corporation has issued 125 grants totaling $ 423,193. These are not loans however may have recapture provisions as conditions apply.

d) Grant; (From the First-time Homeowner Assistance Program of 2012)

From the “Schedule of First-Time Homeowner”-The corporation has issued 242 grants totaling $ 1,822,757 with reservations for 38 more at $ 258,730. These are not loans however do have recapture provisions as conditions apply.

e) Mortgage Revenue Bond loans:

1) The corporation has closed or caused to close 57 loans with respect to the Mortgage Revenue Bond program with a current balance just under $ 4,780,000.

10) Funds, (estimated) available (with TCD restrictions or 1 month’s reserves for expenses) for new loans:

1) CAHAT, (interest free)* (restricted) $ 210,693 2) Revolving Loan Fund, (6.00 %)* (restricted) $ 306,342 3) Hazard Mitigation * (restricted) $ 152,192 4) Housing Trust Fund (grant) $ 647,930

Total available for loans or grants, (restricted) ...... $ 1,317,156

5) Regular Loan Program, (operations act & TCDs) $ 832,631 6) FHLB account $ 41,452

Total available, (Operations, Housing) ……………….. $ 874,083

7) Available from rents, Lada (Operations, Rental ) …………… ($ 240,893)

8) Total Operational Funds (Housing & Rental)…………...... $1,114,977

Total funds available,(operations & for loans or special program)……… $ 2,432,133

11) Other Funds, corporate, (Reserved):

1) Foreclosure Protection Fund* $ 501,033 2) Reserves for Replacements, rental $ 687,355 3) Self-Insurance Fund, rental $ 998,264 4) Emergency Housing Fund $ 101,360 9

5) Asat-das $ 6,884

Total RESERVED...... $2,295,075

12) Other Funds, TRUST , (Held-in-Trust):

1) Tenant Security Deposit $ 73,740 2) Borrower’s Trust Account $ 446,844 3) Borrower’s Deposit $ 79,520

Total TRUST...... $ 600,104

Total, (RESERVED or TRUST) ...... $ 2,895,179

Total funds:...... $ 5,327,312

Clyde E. Beaver copy to: Manager Loan Administrator Accounting Manager

* appropriated and restricted by Public Law

LOAN CLOSED - FISCAL YEAR 2015 As of January 31, 2015

Loan Number of Type of Loan Loan Month Program Loans Purchase Construction Amount 03-Oct-14 Cahat 1 1 0 $ 40,000.00 30-Nov-14 Direct 2 2 0 $ 281,200.00 31-Dec-14 Direct 1 1 0 $ 180,000.00 31-Jan-15 None 0 0 0 $ -

4 4 0 $ 501,200.00

Average Loan $ 125,300.00

LOAN APPROVALS - FISCAL YEAR 2015 As of January 31, 2015

Month Loan Interest Loan Home Loan Approved Purpose Rate Amount Price Processor 14-Oct-14 Purchase 5.125% 131,200.00 Emily Direct (SRF) 12-Nov-14 Purchase 4.250% 150,000.00 Addie Direct (SRF) 2-Dec-14 Construction 5.090% 78,000.00 Addie Direct (SRF) 31-Jan-15 None -

$ 359,200.00

Average Loan $ 132,300.00

PRE-APPROVALS FISCAL YEAR 2015 As of January 31, 2015

Month Loan Interest Loan Loan Approved Purpose Rate Amount Processor 31-Oct-14 None 5-Nov-14 Purchase 5.125% $ 180,000.00 Susymae 31-Dec-14 None $ - 31-Jan-15 None $ -

$ 180,000.00 FIRST-TIME HOMEOWNER ASSISANCE PROGRAM APPROVAL AND DISBURSED FROM JULY 12, 2012 TO DATE

TOTAL GRANT APPROVALS: 390 $ 2,917,943.57 TOTAL GRANT DISBURSED: 241 $ 1,707,758.81