Prudential Checklist

THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017

Entities holding seller notes In some cases an affiliated entity initially purchases a property, which is held until the property is refinanced into an LIHTC structure. In order to facilitate the refinancing, that original purchasing entity will take back a seller note.

Legal Entity

Group Other

Partnership

Group LIHTC LIHTC

Cornerstone/Bayview, Inc. "(Cornerstone/Bayview")

Bayview Preservation Partners, LP Benning Heights Investor LLC Cherry Estates Limited Partnership Foxwood Preservation Partners, LP Hollybush Preservation Partners, LP Orange Preservation Partners, LP Plaza Borinquen 88 Owner II LP Preservation Housing II, L.L.C. Preservation Housing IV, L.L.C.

Benning Heights Affordable, LLC ("Benning Affordable") Other

Cherry Affordable Housing, Inc. ("Cherry Affordable") Foxwood Affordable Housing, Inc. ("Foxwood Affordable") Hollybush Affordable Housing, Inc. ("Hollybush Affordable") Orange Affordable Housing, Inc. ("Orange Affordable")

Other Other Other Other Other Other Other Other Other

Not consolidated

LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC

Plaza Borinquen 88 Owner LP ("Plaza B I")

Forest Park Affordable Housing, Inc. ("Forest Affordable") Walnut Affordable Housing, Inc. ("Walnut Affordable") Milliken Affordable Housing, Inc. ("Milliken Affordable") Cornerstone/St. Luke's, Inc. ("Cornerstone St. Luke's")

Ship's Cove Preservation Partners Limited Partnership

St. Luke's Preservation Partners, LP

Investment in operating entities Legal Entity

Group

Ownership %

Accounting Method

Cherry Estates Limited Partnership (Cherry Affordable special limited partner interest) CHA LLC (CHA MM, LLC general partner interest)

Not consolidated Not consolidated

0.01% 0.01%

Equity Method Equity Method

Eagles Landing Apartments, LP (NHPF Eagles Landing GP, LLC general partner interest) RAHF IV Shore Hill, LLC (NHPF-Shore Hill Manager, LLC) (1) RAHF IV Shore Hill, LLC (NHPF-Shore Hill Investor, LLC) (2)

Not consolidated Not consolidated Not consolidated

0.00% 0.01% 3.00%

Equity Method

Cost Cost

(1) NHPF-Shore Hill Manager, LLC is a 50% member in the sole member of the .01% Managing Member of the beneficial owner (RAHF IV Shore Hill, LLC) of Shore Hill. (2) NHPF-Shore Hill Investor, LLC is a 2.995% member in the beneficial owner (RAHF IV Shore Hill, LLC) of Shore Hill.

Joint Ventures Legal Entity

Group

Joint Venture %

Accounting Method

CHA Development, LLC

Not consolidated Not consolidated

50% partner 50% partner 50% partner 40% partner 40% partner

Equity Method Equity Method Consolidated Cost Method Cost Method

CHA JV, LLC

NDFD, LLC ("NDFD") (1)

Other

Nonprofit Housing Preservation RA, Inc. Nonprofit Housing Preservation SB, Inc.

Not consolidated Not consolidated

(1) NDFD is the joint venture member in the joint venture NHPF/UA, LLC listed below under Housing Funds.

Housing Funds Legal Entity NHPF/UA , LLC NHPF/UA II, LLC

Group

Ownership %

Accounting Method

Not consolidated Not consolidated Not consolidated

Equity Method Equity Method

Equity Method Equity Method

Housing Partnership Equity Trust, LLC

0.010%

Cost

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation

In accordance with accounting guidance for consolidations, NHPF has determined the presumption of control for the entities in which NHPF and/or its affiliated entities are the general partner has not been overcome, therefore NHPF has significant control over the major decisions of those entities. As a result, NHPF and/or its affiliated entities are required to consolidate the financial statements of those entities. All significant intercompany accounts and transactions have been eliminated in the consolidation process.

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