So I had my first conversation with Foundation Source and the bottom line is, try again.
Apparently there are a number of different entities that will support charitable activities that allow one to become a 501-C3. There is the public charity, which may be right for me, still trying to determine, and then there is the foundation.
Foundation Source helps people who are creating a foundation, but only if it is what is referred to as a "non-operating" foundation. In a non-operating foundation the funds are directed towards other groups and charities, rather than towards its own day to day operations. Because I am hosting the primary activities of the Community House Network, and in particular since we will begin as three properties being held by the foundation, the very helpful Erik Larson advised me that I should set up as an operating foundation and that he was not the man to do it for me.
So back to the drawing board. The newest lead is... Foundation Group!
Their website is: www.501c3.org
Whew! When this is done, I should be an expert.