THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2019 and 2018
However, certain subsequent events have occurred that require disclosure as discussed in the following paragraphs:
On January 8, 2020, the Anacostia Gardens Owner, LLC property, located in Washington, DC, closed into a LIHTC transaction with intent to rehabilitate the property utilizing total funding of $13,819,186. The sources for rehabilitation include a Series 2019 tax-exempt bond funded for $4,150,000, a District of Columbia Department of Housing and Community Development loan for $8,865,000, and LIHTC Equity of $804,186. On April 17, 2020, Lot 13 Owner, LLC, a subsidiary of NHPF, sold the New China Café, at 600 Division Ave., NE Washington, DC, to Ming Wei Zhang for a nominal sum of $10. The construction and sale of the New China Café was agreed to in the Property Exchange and Development Agreement between Ming Wei Zhang, The Warrenton Group, and NHPF signed on July 12, 2017. The agreement was later amended and assigned to Lot 13 Owner, LLC. On April 29, 2020, Hollander Ridge Investor, LLC, consisting of 94 single family homes operating as one multifamily entity located in Maryland, closed into a LIHTC transaction with intent to rehabilitate the property utilizing total funding of $14,945,723. The sources for rehabilitation include a Tax Exempt Multifamily Revenue Note for $10,961,417, a Baltimore Affordable Housing Development, Inc. Loan for $2,379,000 and LIHTC equity of $1,605,305. On May 17, 2020, a membership interest in 17 Mississippi Avenue, a vacant property in Southeast Washington, DC, was acquired for a purchase price of $1,200,000 and was purchased into NHPF Mississippi Manager, LLC. NHPF now retains 75% ownership controlling interest in the property. The property has received a funding commitment from Washington, DC for $8,000,000 through the Housing Production Trust Fund (“HPTF”). 17 Mississippi Owner, LLC entered into a loan agreement for $2,100,000 to fund the purchase price and predevelopment expenditures through Local Initiatives Support Corporation (“LISC”), with an interest rate of 6% and requiring interest-only payments. NHPF is a guarantor on the LISC loan. Additionally, in early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. As a result, events have occurred including mandates from federal, state and local authorities leading to an overall decline in economic activity which could result in a loss of revenue and other material adverse effects to the Organization’s financial position, results of operations, and cash flows. While the Organization is not able to reliably estimate the length or severity of this outbreak and the related financial impact, management believes that it took all the necessary steps to ensure business continuity.
- 43 -
Powered by FlippingBook