THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2018 and 2017
The LIIF line specified a period of three years from the Closing Date during which funds could be drawn from the line (“the Origination Period”). The Origination Period ended during 2018.
NOTE 18 - CONCENTRATION OF CREDIT RISK The Organization and its affiliated entities maintain its cash balances at various financial institutions. The institutions are members of the Federal Deposit Insurance Corporation (FDIC). Money market fund balances, classified as cash and cash equivalents or restricted cash on the consolidated statements of financial position, are protected by the Securities Investor Protection Corporation (SIPC). During 2018 and 2017, the balance in these accounts may have, from time-to-time, exceeded the FDIC and SIPC insurance limits; however, the Organization and its affiliated entities have not experienced any losses with respect to these balances in excess of the government provided insurance. Management believes that no significant concentration of credit risk exists with respect to these cash and cash equivalent balances at December 31, 2018 and 2017. NOTE 19 - SUBSEQUENT EVENTS Events that occur after the consolidated statement of financial position date but before the consolidated financial statements were available to be issued must be evaluated for recognition or disclosure. The effects of the subsequent events that provide evidence about conditions that existed at the consolidated statement of financial position date are recognized in the accompanying consolidated financial statements. Subsequent events which provide evidence about conditions that existed after the consolidated statement of financial position date require disclosure in the accompanying notes. Management evaluated the activity of the Organization through October 15, 2019 (the date the consolidated financial statements were available to be issued) and concluded that no subsequent events have occurred that could require recognition in the consolidated financial statements. However, certain subsequent events have occurred that require disclosure as discussed in the following paragraphs: On February 26, 2019, NHPF acquired Ridgecrest Courts, a 272-unit property located in Washington DC for a purchase price of $25,560,000, funded through a $21,075,000 loan from JP Morgan Chase and a loan of $7,500,000 from Capital Impact Partners. On April 17, 2019, NHPF purchased Center City, a 49-unit multifamily affordable housing property located in Newark NJ for a purchase price of $3,416,197 funded through a $4,488,400 loan from Orix Real Estate Capital. On April 17, 2019, NHPF acquired Irvine Turner, a 93-unit multifamily affordable housing property located in Newark, NJ, for a purchase price of $6,553,803 funded with a $8,871,000 loan from Orix Real Estate Capital.
- 40 -
Powered by FlippingBook