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 was 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.
| |
Houston
Homebuyer
Assistance |
Houston HOPE |
Workforce Housing |
| Sales Price Maximum |
$200,160 |
$200,160 |
$150,000 |
| Area Median Income (AMI) Limit |
Up to 80% AMI |
Up to 80% AMI |
80 to 110% AMI |
| Qualifying Areas |
City-Wide |
Houston Hope and Revitalization Areas - only |
Houston Hope and Revitalization Areas - only |
| Funding Amount(s) |
$19,500 |
$30,000 |
$30,000 |
| Property Age |
New or Existing Properties |
New or Existing Properties |
New Properties |
| Affordability Period |
10 Years |
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
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 eligibility 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.