* Children’s H.E.L.P.’s Affordable Housing Plan abides by the restrictions and requirements of Mortgagee Letter 00-08, and Mortgagee Letter 2002-01.  These requirements are in effect now and shall remain in effect at all times while a H.U.D./FHA-approved nonprofit. *

Nonprofit’s Organizational Flowchart

Board of Directors > CEO > Initiatives < Affordable Housing < Community Housing < Home Revitalization Program

Organization by the Numbers

Children’s Health, Education and Leadership Project
a.k.a. “Children’s H.E.L.P.”
31103 Rancho Viejo Rd. #2328, San Juan Capistrano, CA 92675
Contact: Dr. Tim James, CEO
C: (909) 702-3220
F: (949) 218-5412

CA Nonprofit Corp #: 2157815
IRS 501(c)(3) Letter of Determination dated: 1999
EIN: 33-0847988
DUNS #: 196042746
SBA #: P1649029

Geographic Area Served

  • Established:

The 10 counties of So. California: Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura. Click here to view our current service area’s list of cities and zip codes.

  • Under Development:

We are currently recruiting broker-partners and negotiating with asset managers to locate opportunities in the following areas:  Arizona, Minnesota, Nevada and Ohio.

Purpose for Participation in H.U.D./FHA Programs

The sub-prime loan debacle combined with variable rate loan resets, falling home prices and the recessionary economic cycle led to a housing crisis that resulted in the displacement of children of low- and moderate-income families.  Children’s H.E.L.P. pursued an initiative to help mitigate this housing quagmire and to solve its devastating affects on children with its Affordable Housing Initiative. To date, the nonprofit has been successful by employing private investor funds – and because there was an abundance of foreclosed homes available to purchase at very low prices.  However, as home prices and interest rates demanded by our private lender resources inflate – and because opportunities to buy very cheap homes to revitalize at numbers that make sound business sense have declined – the nonprofit needed to begin working with H.U.D./FHA programs – specifically programs such as First Look and those that sell homes at discounts to nonprofits.  We need that competitive advantage to continue helping provide affordable housing for low- to moderate-income families.

The Nonprofit’s Funding Sources

  • Private Investor Financial Capacity

Children’s H.E.L.P. has access to $5M to $7M of private investor funds (see below) specifically for the nonprofit to buy and fix dilapidated, vacant homes for re-sale to low- and moderate-income families and individuals.

  • Current Funding – Source and Stability

Click here to view our Proof of Funds, Letter of Credit, etc.

Our private investor sources have pledged to continue working with us, however as inflation kicks in and the economic cycle rebounds, competition for private funds are expected to increase and our borrowing costs – already expensive – are expected to rise even higher.  So, while access to funds is stable, without access to H.U.D./FHA programs, this nonprofit will not be able to sustain its affordable housing efforts.

  • Community Development Block Grant Program (CDBG) 

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses.  The CDBG program provides annual grants on a formula basis.

Click here to go to’s page for the various options included under the Community Development Block Grant Program.

  • Neighborhood Stabilization Program (NSP)

NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements. NSP grantees develop their own programs and funding priorities.

NSP funds may be used for activities which include, but are not limited to:

  • Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
  • Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
  • Establish land banks for foreclosed homes;
  • Demolish blighted structures;
  • Redevelop demolished or vacant properties

Click here to go to’s page for the Neighborhood Stabilization Programs.

  • National Community Stabilization Trust (NCST) – First Look 

H.U.D./FHA actively sought non-profit and private sector partners in its effort to make NSP successful. The National First Look Program is a public-private partnership agreement between HUD and the National Community Stabilization Trust (Stabilization Trust).  In collaboration with Fannie Mae, Freddie Mac and FHA colleagues, the First Look program is intended to give communities and nonprofits participating in NSP a brief exclusive opportunity to purchase bank-owned properties in NSP target neighborhoods so these homes can either be rehabilitated, rented, resold or demolished. First Look gives NSP grantees an exclusive 12-to-14 day period to evaluate and bid on properties before others can do so.

First Look aims to maximize the impact of NSP dollars in the hardest-hit neighborhoods – making it more likely the properties that communities want to buy are strategically chosen and cutting in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties.

NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. HUD seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under NSP receive homeownership counseling and obtain a mortgage loan from a lender who agrees to comply with sound lending practices.

Click here to go to the National Community Stabilization Trust website.

Benefits to low- to moderate-income children and their families

Our Affordable Housing Plan will capitalize on our real estate and home rehabilitation experience and benefit low- to moderate-income families by providing them freshly revitalized homes – shelter in which to raise and protect their children. Our plan will work coordinate with other agencies to facilitate a smooth transition into their newly revitalized home.

Passing savings derived from H.U.D./FHA programs to low-income families and individuals

Our Plan will pass-along the proportional cost-to-purchase and cost-to-repair benefit we receive from H.U.D./FHA programs to the low- to moderate-income families and individuals who purchase our revitalized homes.

Ensuring that mortgage payments are affordable to first-time home buyers

Our Affordable Housing Plan will help guide purchase-candidates to credit repair specialists when and where indicated because we understand that when it comes to qualifying for preferred mortgage rates and terms, credit worthiness is critical.  Our Plan will help prospective buyers as they work with their FHA-approved lender.

  • H.U.D./FHA 2012 Home Program Income Limits

To compare a household’s annual income information to the official HOME Program Income Limits, follow these steps

  • For the appropriate state, find the geographic area in which the PJ is located on the HOME Program Income Limit chart.
  • Find the column that corresponds to the number of persons in the household.
  • Compare the verified annual (gross) income of the household with the income limit for that geographic area and household size.

Click here to view the H.U.D./FHA 2014 Home Program Income Limits.

Click here to view the 2014 Home Program Income Limits map of U.S.

Where will our Plan locate the low- and moderate-income families and individuals who will participate and benefit from our program?  

Our Affordable Housing Initiative currently locates buy-opportunities by monitoring MLS listings, newspaper and ads, word-of-mouth tips from Realtors® and the public at-large, and by monitoring sites such as RealtyTrac® and ForeclosureRadar®.

Our Affordable Housing Plan will also reach out to other government agencies and develop a cooperative referral network for identifying and inviting pre-qualified prospective buyers.  We will also advertise in neighborhood and community newspapers, and on various popular online sites such as  And when we cause properties to be listed in an MLS, we will use approved verbiage to let agents know the listed improved property is a H.U.D./FHA-approved home.

Homeownership Education & Counseling 

When and where indicated, our Plan includes homeownership education & counseling. We also refer prospective buyers to HUD sites and programs for connecting with other homeownership counseling experts and agencies. We also distribute information – brochures and pamphlets created specifically for homeownership counseling purposes.

Click here to link to our Homeownership Education & Counseling page.

Our existing Affordable Housing Initiative

This nonprofit does not currently hold any Community Home Revitalization Program homes in its inventory.

As soon as we identify a property to acquire  we assign it out for marketing so that we can quickly identify interested parties and to enroll qualified buyers in our Homeownership Education & Counseling program.  We are very time sensitive.  We typically give our teams of rehab contractors just 3 to 4 weeks to complete improvements, and we try to turnaround each project in less than 60 days. Our goal is to efficiently find, fix and resell our revitalized homes to low- and middle-income families and individuals.  Holding inventory is impractical with the high cost we pay for our money.

Expected dollar amount of developer fees?

From our experience, the cost of improvements required range from $5,000 to $50,000 depending on what the home needs to bring it to code, and to a safe and secure habitable standard. Our contractor and developer fees are stringently negotiated on a per-home-rehabilitation-project basis.

Percentage of Selling Price our Plan intends to charge on a per-unit basis?

Our Plan does not charge on a per-unit basis. Our nonprofit’s Plan will retain 10% of the after-cost net. And we budget 6% of the Selling Price for our Plan’s listing broker fees, although in select cases we are able to negotiate the listing price down to 5% of the Selling Price.

Number of units our nonprofit agency expects to purchase, and where? 

We are constantly searching the So. California region, but opportunities making sound financial sense are getting fewer and harder to find. We would like to purchase, fix and re-sell 4 to 5 units per month – 48 to 60 units, annually.

Preferred timeline from purchase to rehabilitation to resale 

Once a target property is located, we require 48-72 hours to complete our initial survey:  the “as-is” value, and the estimated cost-to-rehabilitate.  In just a few days, we are able to decide whether or not to move forward with an offer to purchase.

Because we have immediate access to investor capital, we close our traditional and foreclosed REO purchases in 15-30 days.  Short sale purchases depend entirely on the seller’s lender and can drag out several months.

Once our acquisition escrow closes, we already have our construction teams ready to get to work. We push to have all rehabilitation work completed in 30 days or less.  We also list the property for sale with a broker, and start to market the property “as-improved”.

And our goal is to have each revitalized home under contract (sold) to a low- or middle-income buyer within 30 to 45 days from our acquisition.

We have extensive experience in this business.  We know what causes delays and, where we can, we work hard to expedite the buyer’s ability to complete the purchase.

Our Homeownership Education & Counseling program helps prepare buyers for homeownership.  Where indicated, we suggest courses on credit-repair, and to the appropriate resources for financing their purchase.

Does our Plan have a Lease-purchase program?

To date, we have not needed to enter into lease-purchase contracts. However, depending on market forces, we might. Our Plan views our role as an extension of government needs, and we exercise sound business principals to maximize cost-saving efficiencies.

Administrative and Marketing Capacity at the far reaches of the required 200-mile radius from our Plan’s relevant office

  • Administrative Capacity 

Children’s H.E.L.P. has the administrative capacity to develop and carry out its FHA-approved homeownership plans in a timely and successful manner throughout our Plan’s defined service area.

  • Marketing Capacity

The nonprofit’s CEO, Dr. Tim James, and the Just say “Home, James!”® real estate agency (See: is already familiar with working the So. CA real estate market and has a network of general contractors, inspectors and skilled specialists standing-by to help the nonprofit evaluate and improve homes throughout the region.

Board of Directors

As with most nonprofit organizations, the composition of the volunteer Board of Directors changes from time-to-time depending on the nature and location of our current projects, and availability of the respective board members. In alphabetical order, our current board and key personnel include:

1. Rodger Barnett
Children’s H.E.L.P. 501(c)(3) – Board Member since 1999
Medical Support International 501(c)(3) – Board Chairman
Career snapshot: Rodger Barnett Home Improvements

2. Jeanne James
Children’s H.E.L.P. 501(c)(3) – Board Member since 1999, Secretary-Treasurer Career snapshot: UCI Medical Center, Private Physicians Group Billing Manager (Radiology, Pathology)
Career snapshot: owner, Spoolies® hair curlers

Disclosure – Jeanne is spouse of Dr. Tim.

3. Dr. Tim James
Children’s H.E.L.P. 501(c)(3) – Board Member since 1999, CEO
Career snapshot: Foot & Ankle Surgeon 1977 – retired pvt practice 1999
Career snapshot: Nonprofit administration 1999 – present
Career snapshot: CA DRE licensee since 2007; real estate broker since 2011; owner-partner of “Just say ‘Home, James!®” real estate agency.

Disclosure – Jeff James (son) is a CA DRE-licensed salesperson 01816299. And Jon James (son) recently let his CA DRE license 01844573 expire (Jon’s career: software programmer). Neither Jeff nor Jon are involved with Children’s H.E.L.P.’s Affordable Housing Plan.

4. Ted Mooschekian
Children’s H.E.L.P. 501(c)(3) – Board Member since 1999
Career snapshot: Ted Mooschekian (Property) Management – managing partner of several apartment complexes throughout the So. California. Ted is over 80 years old; and many years ago, he was a CA DRE-licensed real estate broker.

Disclosure – Mark Mooschekian (son) is a lawyer.

5. Daniel Schmitz
Children’s H.E.L.P. 501(c)(3) – Board Member since 2011
Career snapshot: Partner at Opulenza Global Investment Banking
Career snapshot: former CA DRE licensee (expired); commercial real estate at Lee & Associates.

Disclosure – Dan Schmitz is Jeanne James’ nephew.

6. Dr. Sergio Stone
Children’s H.E.L.P. 501(c)(3) – Board Member since 2000
Career: Physician, Ob-Gyn

7. Dr. Bill Sears
Children’s H.E.L.P. 501(c)(3) – Board Member since 2001
Career: Physician, Pediatrics

Children’s H.E.L.P. certifies that the members of its Board of Directors serve on a voluntary basis and receive no compensation for their services (other than reimbursement for expenses). Furthermore, no part of the nonprofit’s net earnings is passed on to any individual, corporation, or other entity.

CA DRE-licensed Key Administrators and Managers 

Disclosure – Certain volunteer board members and key administrative and management personnel are CA DRE (Dept. of Real Estate) licensees. 

Dr. Tim James – CA DRE 01816298
CEO at Children’s H.E.L.P.
Director, Children’s H.E.L.P.’s Home Revitalization Program

These key persons guide Children’s H.E.L.P.’s Affordable Housing and Community Home Revitalization programs.

Our volunteer leadership team brings experience and expertise in aspects of real estate and real estate finance, which uniquely empowers the nonprofit’s Affordable Housing initiative.  They are compassionate individuals whose volunteer-contributions benefit the nonprofit’s stakeholders and constituents: the children of families at risk of losing their homes due to bad credit, variable -rate mortgage cost increases, and diminished market valuation challenges.

It would be a conflict of interest for the nonprofit to employ staff who also work for and receive financial benefits from a for-profit entity that is providing the nonprofit with services related to the nonprofit’s affordable housing plan. It would not, however, be a violation of our conflict of interest policies should such services be donated to benefit the low- and middle-income families and individuals our Affordable Housing Plan exists to serve.

Conflicts of Interest Policy and Prohibitions

No employee, officer, elected or appointed official, nor anybody otherwise in a position to participate in the decision-making process or gain information with regard to the lease or purchase of property pursuant to Children’s H.E.L.P.’s Affordable Housing Plan may obtain a personal or financial interest or benefit from any lease or purchase transaction, or have an interest in any contract, subcontract, or agreement with respect thereto or the proceeds thereunder – either for himself/herself, or for those with whom he or she has family or business ties – during his or her tenure, or for one year thereafter.

* HUD strictly prohibits the sale or lease of properties with FHA financing and/or discounted HUD Homes – to any of the nonprofit’s officers, directors, elected or appointed officials, employees, or business associates, either during their tenure or for one year thereafter, or to any individual who is related by blood, marriage, or law to any of the above. *

Consultant Services

However, from time-to-time the nonprofit reaches out to specialists for expert opinions and advice.  We always try to recruit volunteers, but sometimes we need to hire individuals or firms that possess the specialist knowledge or skills required at the time. In such incidents, Children’s H.E.L.P.’s Affordable Housing Program will continue operating independent of the influence, control, or direction of the consultant or any other outside party – particularly those consultants who could seek to derive profit or gain from a proposed project (such as landowners, real estate brokers, mortgage brokers, bankers, contractors, builders, or consultants). But frankly, we already possess, in-house, a lot of the expertise other nonprofits would have to hire from outside sources.

Procedure for Finding, Buying, Fixing and Re-selling Homes

1. Finding Properties

Children’s H.E.L.P.’s Home Revitalization Program searches home-buying opportunities from many source including listings posted in MLSs and newspapers, on web-sources such as, RealtyTrac®, ForeclosureRadar®, and from Realtors®, lender asset managers, and H.U.D./FHA sites.

2. Preliminary Feasibility Research and Data Analysis

Once a promising prospect is located,

  • Director of the Home Revitalization Program causes the performance of an Agent’s Visual Inspection, and orders:
  • the Broker’s Professional Opinion (BPO) or Appraisal to establish the property’s “as-is” value for Children’s H.E.L.P. ,
  • a General Contractor’s (GC’s) inspection and valuation to determine the extent of rehabilitation required, and
  • a rough estimate of the Cost and Extent of work, and
  • projects an “after-improved” market value for the property.


Accurate, up-to-date bookkeeping records are the responsibility of the Director of Children’s H.E.L.P.’s Home Revitalization Program.

The Director causes a report summarizing all the above, including his statement of his opinion of the risk – and then presents his report to Dr. Tim James, CEO and/or the Property Control Committee.

Note:  The nonprofit does not want to spend money for appraisals and repair specifications (plans) only to discover that the market value of the improved property will be less than the purchase price + costs of improvements + closing costs (+ profit margin when private investor funds are employed).

3. Offer, Purchase (Offer) is prepared by the nonprofit’s licensed Realtor®, presented to the listing agent and/or Seller and negotiated, Accepted, and escrow is opened.

  • If project will be funded by a private investor, a Proof of Funds and Letter of Pre-approval will be issued to be presented when the nonprofit submits its purchase offer.
  • The nonprofit’s offer will contain, when appropriate, the following disclosure: “Buyer is a 501(c)(3) nonprofit” … and, if so: “Buyer has applied for Section 203(k) financing”, and “Contract is contingent upon loan approval and Buyer’s acceptance of additional required improvements as determined by H.U.D./FHA or the Buyer’s lender.”

4. Children’s H.E.L.P. selects its lender.

“Lender” may be a private investor, or a government agency.

The following step-by-step discussion covers the sequence when a H.U.D./FHA-insured and/or 203(k) loan is employed.

5. Consultant prepares design elevations, extent of work write-ups, and cost estimates.

“Consultant” preparing mandatory reports include an architect or general contractor as required by lenders.

Other consultant reports might include preliminary reports from an appraiser or a BPO, and/or other specialist consultants as might be prudent depending on the location and condition of the property.

6. If a H.U.D./FHA loan is being employed for the purchase – upon the lender’s acceptance of the architectural exhibits, the lender requests

  • the H.U.D. Case Number,
  • the Plan Review
  • the Appraisal, and
  • the Inspection

7. Fee Consultant visits the property

Next, the Director of Children’s H.E.L.P.’s Home Revitalization Program and the GC meet with the Fee Consultant to ensure that the architectural exhibits are acceptable, and that all program requirements have been properly shown in the exhibits.

8. Lender’s appraisal performed

9. Lender reviews the application and the appraisal 

The appraisal is reviewed to determine the maximum insurable mortgage amount for the project.

10. Lender issues its Conditional Commitment / Statement of Appraised Value

This establishes the maximum insurable mortgage amount for the project.

11. Lender Prepares the Firm Commitment Application

By this point, Buyer has submitted any required credit reports, bank balances verified, and anything else lender requires proving the nonprofit’s ability to repay the loan.

12. Lender Issues the Firm Commitment Letter

13. Mortgage Loan Closing

After issuance of the Firm Commitment Letter, the lender prepares for the closing. This includes the preparation of the Rehab Loan Agreement if a separate loan is dedicated for the improvements (like a 203(k) loan). The agreement is executed between the lender and Children’s H.E.L.P. establishing the conditions under which the lender will release funds from the Rehab Escrow Account.

Following closing, Children’s H.E.L.P. is required to begin making payments on the entire principal amount of the purchase portion of the loan, as well as the full amount allocated to the Rehab portion, even though it has yet to be disbursed.

Mortgage Insurance Endorsement

Following loan closing, the lender submits copies of the mortgage documents to the H.U.D. office for mortgage insurance endorsement. H.U.D. reviews the submission and, when found acceptable, issues a Mortgage Insurance Certificate to the lender.

14. Revitalization Construction begins

Also following loan closing, the mortgage funds are disbursed to pay off the property seller, and the Rehab Escrow Account (funds control) is established. At this point, rehab construction is permitted to begin.

When a 203(k) loan is employed for the improvements portion, Children’s H.E.L.P. has up to 6 months to complete the work. However, our model requires all improvements to be completed in 4 weeks, at the longest!

15. Quality Control / Funds Release from Rehab Escrow Account

As construction progresses, the GC prepares a Draw Request (H.U.D. Form 9746A). David Kassler reviews and approves.

The 203(k) funds are released only after the work is inspected by a H.U.D.-approved inspector.

16. Completion of Work / Final Inspection

When all work is completed according to the approved architectural exhibits and change orders, Children’s H.E.L.P. provides a letter indicating such and announcing that it’s ready for H.U.D.’s final inspection. If the H.U.D.-approved inspector agrees, the final draw may be released, minus the required 10% holdback.