THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017
As of December 31, 2018, and 2017, 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
2019 2020 2021 2022 2023
$
54,217,895 5,435,140 5,678,965 90,623,856 16,547,379 223,960,231 396,463,466
Thereafter
Unamortized debt issuance costs
(12,406,542)
$
384,056,924
For the years ended December 31, 2018 and 2017, total interest costs of $15,997,980 and $10,308,928, respectively, were incurred, of which $1,167,263 and $151,171, respectively, were capitalized and $15,631,737 and $10,157,757, respectively, were expensed. For the years ended December 31, 2018 and 2017, amortization of debt issuance costs of $1,331,641 and $777,252, respectively, were included in total interest costs expensed. For the years ended December 31, 2018 and 2017, the unrealized gains on the interest rate liability of $366,243 and $248,448, respectively, were included in total interest costs expensed. Debt issuance costs, net of accumulated amortization, as of December 31, 2018 and 2017, totaled $12,406,542 and $9,426,003, 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, three affiliated entities, Asmara, Foxwood Preservation and St.
- 33 -
Powered by FlippingBook