THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017
Properties included in the Fund as of December 31, 2018 are as follows:
New Countryside LLC (Countryside)
New Exchange Place LLC (Exchange Place) New Flanders LLC (Flanders) Lancaster Owner, LLC (Lancaster)
On August 9, 2017, NHPF Foundation-Urban Atlantic Fund I LLC and Columbia Housing SLP Corporation sold their limited partnership interests to NHPF/UA Bolton, LLC.
NOTE 14 - RESTRICTIONS AND LIMITATIONS ON NET ASSETS During the years ended December 31, 2018 and 2017, net assets released from temporary donor restrictions and the events and transactions which caused the restrictions to expire are $26,692 and $216,872, respectively, for expenses incurred for donor specified purposes. As of December 31, 2018, and 2017, the balance of donor restricted net assets was $51,124 and $58,696, respectively, which is comprised of gifts and other unexpended revenue restricted to specific programs. NOTE 15 - PROPERTY MANAGEMENT The NHP Foundation uses third party property management companies to manage the day-to-day operations of its properties
NOTE 16 - COMMITMENTS AND CONTINGENCIES Guarantees
During the normal course of owning, rehabilitating and operating multifamily affordable housing properties, NHPF makes certain guarantees and enters into agreements containing certain obligations. The typical guarantees are: Operating Deficit Guarantee With the exception of Forest, NHPF is obligated to fund operating deficits beginning at a specified time, frequently rental stabilization not to exceed a specified time and amount. In the case of Forest, NHPF has guaranteed the property will operate at a sustainable level for the entire 15-year tax credit compliance period. Tax Credit Recapture These are summarized below: Under certain circumstances, the GP may be required to repurchase the equity investor’s interest if the property does not generate the promised amount of housing tax credits on schedule.
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