Prudential Checklist

THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2019 and 2018

NOTE 7 - INVESTMENTS IN OPERATING ENTITIES As of December 31, 2019 and 2018, NHPF and its affiliates have investments in operating entities that it accounts for under the cost or equity method. These investments are summarized in the table below:

Date of Initial Investment

Accounting Method

Operating Entity

12/31/2019

12/31/2018

Housing Partnership Equity Trust, LLC NHPF-Shore Hill Investor, LLC NHPF-Shore Hill Manager, LLC NHPF-Harbor Hill Manager, LLC NHPF-Sunset Gardens Manager, LLC

Various

Cost Cost Cost Cost Cost

$

172,209

$

184,030

2018 2018 2019 2019

1,506,320

1,515,320

2,520

2,530

153,705

- -

54,612

1,889,366

1,701,880

Total cost method investments

CHA LLC

2016 2011 2015 2016 2017 2016

Equity Equity Equity Equity Equity Equity

$

(36)

(36)

Cherry Estates Eagles Landing NHPF/UA, LLC NHPF/UA II, LLC NHPF / WFH, LLC

1,601

1,821

37,957

44,339

(36,717)

627,685

(1,257,543)

33,585

(344,873)

(32,500) 674,894

Total equity method investments

(1,599,611)

$

289,755

$

2,376,774

Total cost and equity method investments

The combined equity investments as of and for the years ended December 31, 2019 and 2018 are summarized below:

Investments in operating entities at January 1, 2018

$

(39,812)

Capital contributions paid

381,550

Distributions received

(55,678)

Equity in income of Operating Entities

388,834

Investments in operating entities at December 31, 2018

$

674,894

Deficit transferred in Distributions received

(2,113,805)

(290,333)

Equity in losses of operating entities

129,633

Investments in operating entities at December 31, 2019

$

(1,599,611)

The combined summary financial information of the equity investments as of December 31, 2019 and 2018 and for the years then ended, are as follows:

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