1. Corporate Documents 2. Red Book Analysis 3. Management Fee

1. LWV
June 10, 2008
Residents Voice
06/10/08 Residents Voice 1

2. “Following the Money”
06/10/08 Residents Voice 2

3. Review of
Corporate Documents
06/10/08 Residents Voice 3

4. Trusts & Regulatory Agreement
Desc Trust Agmt Other
Original Trust 3/6/64 9
Original Reg Agmt – GRF & HUD 3/2/64 10
Amendment to Orig Trust 4/6/64 11
Original Reg Agmt – ULHM & HUD 7/1/64 12
HUD loses funding 1968/9 13
Amendment – Co-op & Condo = same 1/9/69 14
Amendment – Co-op & Condo = same 10/13/71 15
06/10/08 Residents Voice 4

5. Original Trust 5
(3/6/64)
• Excerpt from trust.
06/10/08 Residents Voice 5

6. Original Regulatory Agreement 5
(3/2/64)
• Original Reg Agmt – GRF & HUD
• Excerpt from GRF Regulatory Agreement
• Exerpt from ULHM Regulatory Agreement
06/10/08 Residents Voice 6

7. Amended Original Trust 5
(4/6/64)
• Amendment to Orig Trust
06/10/08 Residents Voice 7

8. Original Regulatory Agreement 5
(7/1/64)
• Original Reg Agmt – ULHM & HUD
06/10/08 Residents Voice 8

9. Congress Closes HUD 5
(1968/69)
• HUD loses funding
• Co-ops no longer funded by HUD
06/10/08 Residents Voice 9

10. Trust Clarification 5
5
(1/9/69)
• Amendment to the Trust defines the terms “Co-op” &
“Condo” as interchangeable.
06/10/08 Residents Voice 10

11. Further Trust Clarification
(10/13/71)
• Additional Amendment to the Trust further defines the
terms “Co-op” & “Condo” as interchangeable.
06/10/08 Residents Voice 11

12. 2008 Total Budget
Mutual Mutual Amt GRF Amt Total
United $32,533,847 $15,528,272 $48,062,119
Third $24,467,165 $14,985,532 $39,452,697
Fifty $5,303,943 $763,766 $6,067,709
Total $62,304,955 $31,277,570 $93,582,525
(GRF Op) $26,539,778
(GRF Reserve)
$4,737,792
06/10/08 Residents Voice 12

13. Layout of Red Book
• 1st Third defines the Headcount & Costs
by Division & Work Center
• Middle Third defines the Costs by Mutual
• Back Third contains the Business Plans
for the Mutuals.
06/10/08 Residents Voice 13

14. Consolidated Financial
Statement
• Defines the costs that make up the
Management Fee.
– The only money that is paid to PCM.
– Their costs to provide Milt Johns services.
06/10/08 Residents Voice 14

15. % Increase for 2002-2007
74%
60%
53.33%
50%
40%
30% % Inc
20%
10% 5.26%
2.83% 1.83% 2.70% 1.63%
0.00% 0.00%
0%
2001 2002 2003 2004 2005 2006 2007 2008
06/10/08 Residents Voice 15

16. Total $ per Year
$200,000 increase 2006-2007
$600 562 572
$550
$500
$450
$400 348 367
K Dollars
324 324 333 339
$350
$300 K $ Total
$250 -
$200
$150
$100
$50
$0
2001 2002 2003 2004 2005 2006 2007 2008
year
06/10/08 Residents Voice 16

17. Pension Plans
• Includes the Union Contract for union
employees.
• In 2006-7 a 401K plan was included for
non union employees.
• Total Cost to the Mutuals:
– 2006 = $1,395,000
– 2007 = $1,425,000
06/10/08 Residents Voice 17

18. THE END
06/10/08 Residents Voice 18