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					                                                       Rita O’Flynn
                                                   1766 Union Street
                                                         Suite E
                                               San Francisco, CA 94123


14 June 2011


Department of the Treasury
Internal Revenue Service
MC94910
1100 Commerce Street
Dallas, TX 75242


Assessor-Recorder Real Estate Watchdog Program
City and County of San Francisco
1 Dr. Carlton B. Goodlett Place, City Hall, Room 190
San Francisco, CA 94102-4698


RE: Additional Documentation and Follow Up to the Report of the Tenderloin Housing Clinic’s Potential Non-
Compliance with CCSF-Required Real Estate Transfer Tax Fees and Accounting Principles Generally Accepted
(GAAP) in the United State of America; est. value +$20,000,000 in Undeclared Assets


Department of Treasury Reference: See attached letter from the Department of Treasury to Rita O’Flynn dated 12
May 2011


Assessor-Recorder Real Estate Watchdog Program Reference: See Tracking Number 899752 and attached copy
of the on-line report of 13 June 2011


Dear Sir/Madame of the US Department of Treasury Internal Revenue Service and the City and County of San
Francisco Assessor-Recorder Real Estate Watchdog Program


In follow up to reports of potential recording and reporting non-compliance on the part of the Tenderloin Housing
Clinic ( a non-for profit organization) enclosed please find the audited financial statements for the Fiscal Year (FY)
ending 2008, 2009, and 2010.


In 2007, the THC received a gift of land with an appraised value of $20,000,000 (see FY report of 2008-Note 0, page
20). As you will see, for the past three years, the THC has been made aware that in reference to this donation and in
the opinion of its auditors, that GAAP “requires that such donated property be recorded at fair value”. THC has
repeatedly failed to do so citing its belief that it has no measureable value can until final zoning is approved (see FY
report of 2010, Note K, page 17) which apparently has been pending since 2007.
Furthermore, in as noted in the FY reports of 2008 (see Note C, page 13) and 2009 (see Note F, page 15), the THC
purchased 50% interest in a building in 126 Hyde Street and rents most of the building for its office space. On 14
January 2008 (approximately 14 years after purchase), THC finally perfected title to its 50% ownership in 126 Hyde
Street but at it 1995 value which it claims as an asset rather than the properties current value as a real asset.


The THC receives approximately $100,000,000 in City, State, and Federal grants. The failure the THC to properly
report/record assets offers an unfair advantage to the THC when it completes against other non-for-profits for grants
where the THC’s grossly under recorded assets may be taken into consideration and also deprives the public of
much needed revenue.


With Kind Regards,


Rita O’Flynn


CC:      SF Mayor Ed Lee
         CCSF Board of Supervisors
         Fiona Ma
         Tom Amiano
         Barbara Boxer
         Diane Feinstein
         Nancy Pelosi
         Jackie Speer

				
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