This annual report contains forward-looking
statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as "may", "should", "expects", "plans", "anticipates",
"believes", "estimates", "predicts", "potential" or "continue" or the negative
of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, any
of which may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Forward looking statements are made based on
management's beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances should change. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to
update any of the forward-looking statements to conform these statements to actual results.
Our financial statements are stated in United
States dollars and are prepared in accordance with United States generally accepted accounting principles. In this annual report,
unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common stock"
refer to the common shares in our capital stock. As used in this annual report, the terms "we", "us", "our"
and "China Inc" mean " China Inc" unless otherwise indicated.
ITEM 1: DESCRIPTION OF BUSINESS
Vanjia Corporation is a start-up company
incorporated in Texas on August 19, 2011. Our aim to build affordable housing in the city of Houston's designated HOPE and Workforce
neighborhoods. Our future homes will have a variety of floor plans, be energy efficient, and conveniently located. We have already
acquired a vacant lot in the Workforce neighborhoods. By providing affordable housing options, our future homes will enrich the
communities of Houston and revitalize the local economy.
PRODUCTS and SERVICES
Our product is to build affordable homes
in Houston’s designated Houston Hope and Work Force Neighborhoods. The Houston Hope and Work force neighborhoods were created
by the Houston Housing and Community Development Department (HHCD). The Houston HOPE Program strives to build strong and stable
communities. Houston HOPE provides financial assistance to potential home buyers who are in designated Houston HOPE areas. We believe
our future homes would be available for down payment assistance to our potential clients who meet the specific criteria outlined
by the HHCD.
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In order to qualify for the program, applicants must demonstrate
the ability to obtain a mortgage loan, demonstrate credit worthiness. The family's combined income must be at or below 80% of the
area's median income. Approved applicants must also complete eight hours of home buyer education from a HUD-approved Housing Counseling
Agency. The applicant must buy a new or existing home from a list of approved structures, invest at least $500 into the home-buying
transaction, and live in the home for 10 years to satisfy the program eligibility criteria. Mortgage financing options through
various selected lenders make it easier for new home buyers to get the assistance they need. Families are eligible for up to $30,000
in down payment assistance if they are not currently a property owner.
We will conduct affordable housing seminars
to educate and draw publicity to our future homes build in those designated neighborhoods. We intend to draw the attention of first-time
buyers to buy homes in the Hope of Workforce neighborhoods. The regular seminars will focus on home buyer education and related
topics. Home Buyer Education classes will strive to provide first time and repeat home buyers the information they need to make
decisions when buying a home.
CITY OF HOUSTON'S DOWNPAYMENT ASSISTANCE PROGRAMS
The Housing and Community Development
Department (HCDD) Down Payment Assistance Programs is currently accepting applications for the Houston Homebuyer Assistance, Houston
HOPE and Workforce Housing. In order to be considered for funding, all potential clients are required to contact and obtain mortgage
financing through one of the mortgage companies listed on our Approved Lending Partners List. Under each mortgage company, only
the listed loan officer(s) are allowed to originate loan(s) and submit grant request(s) on behalf of the client(s). The application
process is open to the public and assistance will be granted on a first come, first serve basis.
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Houston
Homebuyer
Assistance
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Houston HOPE
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Workforce Housing
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Sales Price Maximum
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$200,160
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$200,160
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$150,000
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Area Median Income (AMI) Limit
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Up to 80% AMI
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Up to 80% AMI
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80 to 110% AMI
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Qualifying Areas
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City-Wide
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Houston Hope and Revitalization Areas - only
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Houston Hope and Revitalization Areas - only
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Funding Amount(s)
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$19,500
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$30,000
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$30,000
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Property Age
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New or Existing Properties
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New or Existing Properties
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New Properties
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Affordability Period
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10 Years
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10 Years
|
10 Years
|
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HOUSTON
HOPE PROGRAM
City of Houston (City) Housing and Community
Development Department (HCDD) has designed the Houston HOPE to provide financial assistance to low-to-moderate income homebuyers
who are in the Houston HOPE areas or any area/neighborhood designated by the Mayor of Houston for revitalization. HCDD
staff will administer Houston HOPE according to the policy and procedures set forth in the administrative guidelines. Funding for
Houston HOPE will be available through the HOME Investment Partnerships (HOME) Program and the American Dream Down Payment Initiative
(ADDI) Houston HOPE will provide direct financial assistance to offset portions of the down payment, closing costs, pre-paid items
and principal required for home purchase.,
MARKETING AND PROMOTION
We will employ several marketing techniques
to promote our homes during and after the building phase.
One marketing strategy will be on the
grassroots level through "farming" in the targeted neighborhoods. The term "farming" implies growing something.
That's what you do when you farm your local neighborhoods. You plant the seeds of future business with potential purchasers of
our home homes in these targeted neighborhoods. The term "targeted neighborhoods "will be used to describe neighborhoods
in which the average income of the residences matches the eligibility requirements for the Houston HOPE program. Approximately,
300-500 fliers will be printed, outlining the special features of these designated neighborhoods. We believe that the fliers will
not only convey the quality of our homes, but also briefly outline the financial options available to eligible participants. We
believe that the fliers will draw the attention of possible buyers, if ten percent of these filers will be posted in community
hubs such as local coffee shops, school yards and church lobbies.
Our staff will distribute the remaining
fliers on foot, spending several afternoons knocking on the doors of residences in targeted neighborhoods, as well as residences
already in designated HOPE and Workforce areas. Speaking with potential buyers directly is the best way to inform and engage the
communities. When speaking to residents, we will explain the Houston HOPE and Workforce programs, specifically mentioning how these
programs can benefit them as future owners of Vanjia Corporation. We will then outline in further detail the government assistance
option available to them. The government can offer up to $30,000 for down payments and unlike renting, home ownership allows one
to build up home equity. We understand that many of these low-income families are aging and facing mounting financial pressures.
By highlighting statistics like this, not only can we inform, but also inform potential buyers about the home-ownership opportunities
available to them.
We also plan to leverage the influence of community leaders
in the area. Churches present an excellent venue for reaching potential buyers as pastors have a large network and have concern
for the well-being of their constituents. In low-income communities, life often centers around the church. Pastors are usually
aware of those members of their congregation who are in need of government-subsidized housing. By educating the Pastor about the
opportunities presented by Vanjia Corporation, we can easily reach and influence many potential buyers.
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Another strategy will be to identify
veterans who have already received down payment assistance from the Veteran Administration. VA home loans are available to veterans
who meet specific eligibility requirements. Qualified veterans will have served at least 90 days of active duties and have not
been dishonorably discharged. If a veteran has served less than 90 days, but was discharged for a service-related disability they
may still qualify. Those surviving spouses who have not remarried and spouses of POW or MIA service personnel are qualified. In
addition to regular VA loans, there are VA loans available for qualifying disabled veterans are eligible for additional assistance
f qualified veterans. Veterans who are currently receiving VA home loans make excellent candidates for Vanjia Corporation as they
are able to receive up to $30,000 down payment on top of their current veteran eligibilities benefits. Once aware of the financial
opportunities available to them, veterans will realize that home ownership in Houston Hope and Workforce neighborhoods is in their
best interest.
Another strategy will be on the working
relationship between home builders and real estate agents. There is a strong incentive for real estate agents to refer qualified
buyers to our homes. Real estate agents will typically receive up to 3% commission once the transaction is completed. By working
together, we can expand our exposure and client base, while giving real estate agents a chance to increase their sales.
Our final strategy for marketing and
promoting our homes will be through regular visits to the Section 8 offices in Houston. The purpose of the visits will be to educate
Section 8 tenants about their housing options. Currently, Section 8 rental vouchers are for low to moderate-income families, persons
with disabilities, and senior citizens. Under the Section 8 program, the tenant usually pays around 30% of their rent and the U.S.
government subsidizes the rest in the form of a voucher. In some cases, however, tenants may be eligible for the government to
pay their entire monthly rent. Many Section 8 residents are unaware that they are able to convert their Sect. 8 rental vouchers
into a Sect. 8 home-ownership voucher. For more details about eligibility requirements and the conversion process, current Section
8 residents can schedule a meeting with their local Section 8 housing counselors.
HOME DESIGN AND DESIGN CENTERS
We are dedicated to provide quality, well-designed
homes meeting the demands of today’s home buyers. The product line offered depends upon many factors, including the supply
of existing housing and the demand for new housing in the general area. In order to ensure that we meet the demand in the marketplace,
we will conduct qualitative and quantitative market research, including consumer focus groups after the effectiveness of this registration
statement. This research will enable us to improve the linkage between the design of our homes and the community development and
meet the specific lifestyle demands of our targeted home buyer. Our sources of raw building materials will mainly from local building
material suppliers such as Home Depots, Lowe's. Home Depots and Lowe's are both publicly traded companies. Home Depots and Lowe's
do not set a minimum purchase requirement for building materials and home appliances for homebuilders. We do not have any material
contracts or exclusive agreements with Home Depots nor Lowe's.
Our product is designed to appeal to the potential
home buyers. We will use external consultants that we believe are experts in their field to help perfect our homes, often utilizing
experts with knowledge in regional architecture, exterior finishes and selections, or floor plan solutions that give our product
an added edge. We take a focus and design products not only specific to the city in which they will be built, but to the individual
neighborhood. Our aim is to provide each home with features that make it appeal to a specific lifestyle segment, while giving the
plan flexibility through options and/or elevation variety that will appeal to our home buyers. This will allow our home buyers
to feel as if we designed the house just for them.
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COMPETITION
The home building industry is competitive.
We compete with numerous home builders of varying sizes, ranging from local to national in scope, some of which have better financial
resources than we have. We anticipate building homes in several community redevelopment neighborhoods with federal, state and cities
incentives to lessen the competition from other builders. Most custom builders do not want to build in targeted neighborhoods that
have ceilings on selling prices such as the Houston HOPE neighborhoods. We anticipate to build new single-family homes that sell
for $98,000 or more and duplexes that sell for $165,000 in these community redevelopment neighborhoods. We also face competition
from existing resale homes and, to a lesser extent, condominiums and rental housing. Competitions among local homebuilders are
based on a number of interrelated factors, including location, reputation, amenities, design, quality and price. Builders of new
homes compete not only for homebuyers, but also for quality of construction and workmanship, locations, financing, raw material
and skilled subcontractors.
REGULATION AND ENVIRONMENT MATTERS
We are subject to various local, state
and federal statutes, ordinances, rules and regulations concerning zoning, building design, construction and similar matters, including
local regulations which impose restrictive zoning and density requirements. City of Houston does not have zoning laws but it enforces
deed restrictions in certain neighborhoods. We anticipate to complying with applicable building codes and zoning laws in our remodeling
and building activities. As of December 31, 2014, compliance with such ordinances and related matters has not materially affected
our operations, although it may do so in the future.