THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017
Construction Completion NHPF is responsible for any cost overruns relating to development cost, bills, expenses, charges, cost and fees relating to the construction of or rehabilitation completion of the property.
The following table summarizes the guarantees by property.
Operating Deficit Guarantee
Tax Credit Recapture Guarantee
Construction Completion Guarantee
Type
Property
Forest Park
LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC
Yes
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Walnut Square
No No
Foxwood Preservation St. Luke’s Preservation
Yes
Orange Preservation
No
Roundtree
Yes Yes Yes Yes Yes
Bayview Preservation Hollybush Preservation
Plaza B II
Harvest Homes
Cleme Manor
LIHTC Yes – Not yet active
Ships Cove Preservation Wade Road Parkchester Benning Heights Investor
LIHTC LIHTC
Yes Yes
LIHTC Yes – Not yet active LIHTC Yes – Not yet active LIHTC Yes – Not yet active LIHTC Yes – Not yet active
Yes
Woodmont Crossing
N/A Yes Yes
Takoma Place
Bolton North
Litigation In the ordinary course of business, NHPF and its affiliated entities are involved in a number of lawsuits, claims and assessments. In the opinion of management, no loss contingencies are required to be recorded in the accompanying financial statements. NOTE 17 - JOINT AND SEVERAL LIABILITY On March 12, 2015, NHPF through a joint venture with Urban Atlantic, an unrelated party, closed a revolving line of credit for $10,000,000 with the Low-Income Investment Fund (“LIIF”). This facility will be used to purchase multi-family properties where the tenants earn between 80% and 120% of the Area Median Income. The line of credit will be secured by the underlying properties. NHPF and Urban Atlantic have jointly and severally guaranteed the line of credit. As of December 31, 2018, no funds have been drawn on this line of credit. During 2016, the joint venture was modified with Urban Atlantic withdrawing from the joint venture leaving NHPF as the sole guarantor. Also, during 2016, $3,700,000 was drawn against this line and used in the purchase of Pines.
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