Prudential Checklist

THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2017 and 2016 __________

2017

2016

Cash flows from operating activities: Excess (deficit) of revenue over expenses

$

24,571,607

$

(9,752,409)

Adjustments to reconcile excess (deficit) of revenue over expenses to cash (used in) provided by operating activities: Depreciation and amortization

12,487,774

10,819,886

Bad debt expense

711,050 896,215

566,722 846,999

Amortization of debt issuance costs

Unrealized loss on swap

(248,448)

(878,170)

(Gain) Loss on sale of properties Other (income) losses in housing funds Increase (decrease) in operating assets: Accrued interest on notes receivable Prepaid expenses and other assets

(40,264,074)

(348)

(323)

71,659

38,169

(38,384) (962,158) (79,474) (263,445)

(5,178,306)

Tenants’ security deposits

(8,655)

Due from affiliates Grant receivable

(7,178,132)

41,096

188,349

(Increase) decrease in operating liabilities: Accounts payable and accrued expenses

2,359,924 (933,192) (107,999)

(317,966) 1,996,395

Other liabilities

Tenants’ security deposits

178,011 391,127 10,041

Accrued interest on mortgage, notes and construction loan payable

319,441

Accounts payable - affiliates

-

Net cash (used in) provided by operating activities

(12,493,853)

2,776,835

Cash flows from investing activities: Proceeds from repayment of notes receivable

854,220

587,628

Issuance of notes receivable

(102,978)

(2,000,000) (72,545,173)

Purchase of land, buildings, improvements and equipment

(65,495,318)

Purchase of other assets

(460,878)

(25,256) (37,695)

Net payment (advances) of working capital

21,314

Net deferred development costs (additions)/ reimbursements

(3,699,459) 2,587,576 43,081,429

1,704,258

Cash acquired from equity transfer Proceeds from sale of rental property

460,931

Net proceeds from (purchase of) investment in housing funds

789,922

(390,936)

Net deposits to mortgage escrow and utility deposits

(3,296,738)

(3,929,468) (855,749)

Net (deposits to) withdrawals from replacement reserves

(89,069) (6,312)

Net sales (purchases) of investments

550

Net cash used in investing activities

(25,816,291)

(77,030,910)

Cash flows from financing activities: Capital contributions received from noncontrolling interests

28,340,587

6,391,478

Net payment of advances from affiliates

715,926

-

Proceeds from mortgages, notes and construction loans payable Principal payments on mortgages, notes and construction loans payable

79,452,489 (33,536,079) (4,279,647)

107,488,360 (39,177,500) (2,670,204)

Payments for debt issuance costs

Net cash provided by financing activities

70,693,276

72,032,134

Net increase (decrease) in cash and cash equivalents

32,383,132

(2,221,941)

Cash and cash equivalents, beginning

13,241,078

15,463,019

Cash and cash equivalents, ending

$

45,624,210

$

13,241,078

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