jmc

Write the area of pentagon $ABCDE$ as sum the areas of square $ABDE$ and triangle $BCD$. Since square $ABDE$ has area $4^2=16$ square units, triangle $BCD$ has area $40-16=24$ square units. If $h$ is the $y$-coordinate of point $C$, the height of triangle $BCD$ is $h-4$ units and its base is $4$ units. Solving $\frac{1}{2}(4)(h-4)=24$, we find $h=\boxed{16}$.