THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2019 and 2018
As of December 31, 2019 and 2018, all other mortgage notes payable are solely collateralized by the respective rental properties owned by the affiliated entities responsible for each mortgage. NHPF has provided no underlying guarantees on other mortgage notes, other than standard guarantees for fraud and other “bad boy” acts. Principal and interest are payable monthly on all mortgage notes except those financed with tax-exempt bonds. On tax-exempt bond financing, the bond payments are made in accordance with the various bond agreements. All loan agreements require various periodic escrow
deposits for taxes, insurance and replacement of property assets. Total principal payments on mortgage notes are due as follows: Year ending December 31,
Total
2020 2021 2022 2023 2024
$
54,851,756 6,024,355 90,985,425 37,854,494 3,209,641 366,325,167 559,250,838
Thereafter
Unamortized debt issuance costs
(11,387,110)
$
547,863,728
For the years ended December 31, 2019 and 2018, total interest costs of $18,101,701 and $15,997,980, respectively, were incurred, of which $542,797 and $1,167,263, respectively, were capitalized and $17,558,904 and $15,631,737, respectively, were expensed. For the years ended December 31, 2019 and 2018, amortization of debt issuance costs of $945,649 and $1,331,641, respectively, were included in total interest costs expensed. For the years ended December 31, 2019 and 2018, the unrealized (loss) gain on the interest rate liability of ($359,016) and $366,243, respectively, were included in total interest costs expensed. Debt issuance costs, net of accumulated amortization, as of December 31, 2019 and 2018, totaled $11,387,110 and $12,418,979, respectively, and are related to the mortgage notes payable. Amortization of the debt issuance costs on the above notes results in an effective yield between 1.78% to 8.40%. Interest Rate Swap Contracts To manage risk and the economic impact related to interest rate movements on loans funded with variable rate tax-exempt bonds, two affiliated entities, Foxwood Preservation and St. Luke’s Preservation, have entered into swap contracts. Under Foxwood Preservation’s contract, Foxwood
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