2019-03-21T19:27:01-05:00 2018-06-30 953132551 JGD & ASSOCIATES LLP 9191 TOWNE CENTRE DRIVE SUITE 340 SAN DIEGO CA 921221274 990 2017-07-01 330259190 SAN DIEGO HABITAT FOR HUMANITY INC SAND 6192834663 8128 MERCURY COURT SAN DIEGO CA 92111 LORI HOLT PFEILER PRESIDENT & CEO 6192834663 2019-03-21 1 DANIEL P SCHREIBER P00089202 8585871000 209.64.10.130 2019-03-21 13:59:51 PD P CAAC54616B7FE908780F5375B7624EC2482EA4DE 73DE9A6BCF57105685024D59C3ECD826133684EA 2017 2019-02-21 02:37:17Z MARK EMCH 8128 MERCURY COURT SAN DIEGO CA 92111 8125792 0 X WWW.SANDIEGOHABITAT.ORG X 1988 CA SAN DIEGO HABITAT PARTNERS WITH PEOPLE IN NEED OF IMPROVED HOUSING TO BUILD AND REPAIR HOMES. 20 20 62 5900 0 0 4418142 4195391 5788914 1393220 2275851 109042 -72750 -78587 12410157 5619066 40000 44000 0 0 2426246 2651823 0 0 825915 8490980 3460942 10957226 6156765 1452931 -537699 17394421 19050542 8682477 10786808 8711944 8263734 X SEEKING TO PUT GOD'S LOVE INTO ACTION, SAN DIEGO HABITAT FOR HUMANITY BRINGS PEOPLE TOGETHER TO BUILD HOMES, COMMUNITIES, AND HOPE. 0 0 2575507 1475506 PEOPLE IN OUR COMMUNITY AND ALL OVER THE WORLD PARTNER WITH HABITAT FOR HUMANITY TO BUILD OR IMPROVE A PLACE THEY CAN CALL HOME. HABITAT HOMEOWNERS HELP BUILD THEIR OWN HOMES ALONGSIDE VOLUNTEERS AND PAY AN AFFORDABLE MORTGAGE. WITH OUR HELP, HABITAT HOMEOWNERS ACHIEVE THE STRENGTH, STABILITY, AND INDEPENDENCE THEY NEED TO BUILD A BETTER LIFE FOR THEMSELVES AND THEIR FAMILIES. SAN DIEGO HABITAT FOR HUMANITY IS THE LOCAL, INDEPENDENT AFFILIATE OF HABITAT FOR HUMANITY INTERNATIONAL. WE ARE GOVERNED, RAISE FUNDS, AND BUILD LOCALLY IN SAN DIEGO COUNTY.IN FISCAL YEAR 2018, SAN DIEGO HABITAT SOLD TWO HOMES IN OCEANSIDE. THESE WERE HOMES THAT HABITAT BUILT PREVIOUSLY, BUT HAD THE OPPORTUNITY TO RECAPTURE AND SELL TO OTHER QUALIFYING HOMEOWNERS. WE ALSO CONTINUED WORK ON 11 NEW HOMES IN THE SOUTHEAST SAN DIEGO COMMUNITY OF LOGAN HEIGHTS, AND BROKE GROUND ON FOUR NEW HOMES IN THE CITY OF EL CAJON. MANY OF SAN DIEGO HABITAT'S NEW CONSTRUCTION SITES ARE NESTLED INTO OLDER NEIGHBORHOODS THAT ARE IN NEED OF SOME ATTENTION AND CARE. THROUGH ITS NEIGHBORHOOD REVITALIZATION (NR) PROGRAM, SAN DIEGO HABITAT TAKES A HOLISTIC APPROACH TO ENTIRE COMMUNITY TRANSFORMATION BY CREATING NEIGHBORHOOD PARTNERSHIPS THAT FORM VIBRANT, SAFE, AND INVITING COMMUNITIES FOR CURRENT AND FUTURE RESIDENTS. THE PROGRAM SUPPORTS FAMILIES WHO ALREADY OWN THEIR HOMES, AND OFFERS AN ARRAY OF HOUSING SOLUTIONS INCLUDING HOME REPAIR, WEATHERIZATION, AND HOME PRESERVATION. HABITAT HAS IMPLEMENTED MAJOR MULTI-YEAR NR EFFORTS IN THE COMMUNITIES OF ESCONDIDO, IMPERIAL BEACH, LOGAN HEIGHTS, AND EL CAJON, AND WILL CONTINUE TO WORK IN NEIGHBORHOODS WHERE IT BUILDS NEW HOUSES. IN THE LAST FISCAL YEAR, 11 HOMES WERE REPAIRED AND UPGRADED, SERVING A TOTAL OF 21 CHILDREN AND ADULTS.SAN DIEGO COUNTY IS HOME TO MORE THAN 400,000 VETERANS, AND HAS ONE OF THE LARGEST POPULATIONS OF MILITARY PERSONNEL IN THE COUNTRY. HABITAT MADE A STRATEGIC DECISION IN 2012 TO SERVE THIS MILITARY COMMUNITY AND IMPLEMENTED PROGRAMS THAT PROVIDE NEW HOMEOWNERSHIP OPPORTUNITIES AND CRITICAL HOME REPAIR TO VETERANS AND THEIR FAMILIES. WE REPAIRED EIGHT VETERAN HOMES IN FISCAL YEAR 2018.IN ORDER TO BUILD AND REPAIR ALL OF THESE HOMES, HABITAT UTILIZES VOLUNTEERS. APROXIMATELY 5,900 DEDICATED VOLUNTEERS PARTICIPATED IN FISCAL YEAR 2018. ANYONE WHO IS WILLING TO LEND TIME AND ENERGY CAN HELP BUILD A HOME. 2106937 IN ADDITION TO BUILDING AND REPAIRING HOMES, HABITAT FOR HUMANITY OPERATES RESTORES, DISCOUNT HOME IMPROVEMENT CENTERS, LOCATED IN SAN DIEGO, ESCONDIDO, NATIONAL CITY, AND CARLSBAD THAT ACCEPT DONATIONS OF NEW AND USED BUILDING MATERIALS AND HOME FURNISHINGS TO SELL TO THE PUBLIC IN SUPPORT OF HABITAT'S HOMEBUILDING MISSION. 44000 44000 0 FINALLY, ACKNOWLEDGING GOD'S ABUNDANT PROVISION, SAN DIEGO HABITAT FOR HUMANITY SHARES ITS FIRST-FRUITS THROUGH THE PRACTICE OF TITHING A DISCRETIONARY PORTION OF UNDESIGNATED CASH CONTRIBUTIONS TOWARD HABITAT FOR HUMANITY INTERNATIONAL'S WORLDWIDE HOUSE-BUILDING EFFORTS. IN FISCAL YEAR 2018, OUR TITHING SUPPORTED HOUSE BUILDING IN THE SMALL, LANDLOCKED AFRICAN COUNTRY OF LESOTHO. 4726444 1 1 0 0 0 0 0 0 1 1 1 0 1 1 1 1 0 1 0 0 0 1 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 43 0 1 62 1 0 0 0 0 0 0 0 0 0 0 X 20 20 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 CA X X GARY PEKALA 6192834663 8128 MERCURY COURT SAN DIEGO CA 92111 MARK EMCH CHAIR 2.00 X X 0 0 0 PAUL YONG VICE CHAIR 2.00 X X 0 0 0 ANDREA PETRAY SECRETARY 2.00 X X 0 0 0 JAMES MASTROGANY TREASURER 2.00 X X 0 0 0 XIOMARA ARROYO BOARD MEMBER 1.00 X 0 0 0 PAUL BARNES BOARD MEMBER 1.00 X 0 0 0 OLYMPIA BELTRAN BOARD MEMBER 1.00 X 0 0 0 PAVEL CONSUEGRA BOARD MEMBER 1.00 X 0 0 0 PAUL CUNNINGHAM BOARD MEMBER 1.00 X 0 0 0 TIMOTHY DALQUIST BOARD MEMBER 1.00 X 0 0 0 RANDY FRISCH BOARD MEMBER 1.00 X 0 0 0 JACOB GILLETTE BOARD MEMBER 1.00 X 0 0 0 CHERYL JOHNSON BOARD MEMBER 0.08 X 0 0 0 BERNARD A KULCHIN BOARD MEMBER 1.00 X 0 0 0 CHARLES LICKEL BOARD MEMBER 1.00 X 0 0 0 WENDY LOPEZ BOARD MEMBER 1.00 X 0 0 0 CAMI MATTSON BOARD MEMBER 1.00 X 0 0 0 DAN MCALLISTER BOARD MEMBER 1.00 X 0 0 0 ALEYDA ORTIZ BOARD MEMBER 1.00 X 0 0 0 KAREN COLE ROBBINS BOARD MEMBER 1.00 X 0 0 0 STACY WEBER BOARD MEMBER 1.00 X 0 0 0 LORI HOLT PFEILER PRESIDENT & CEO 40.00 X 160807 0 7106 GARY PEKALA CFO 40.00 X 106509 0 7835 KAREN BEGIN DIRECTOR OF DEVELOPMENT 40.00 X 112344 0 6101 ANN KILPATRICK CHIEF ADMINISTRATIVE OFFICER 40.00 X 116826 0 12661 496486 0 33703 4 0 1 0 310 COMMERCIAL HOLDINGS LLC 340 NATIONAL CITY BLVD NATIONAL CITY CA 91950 RENT, TAXES AND INSURANCE 140520 ADECCO EMPLOYMENT SERVICES DEPT LA 21403 PASADENA CA 91185 TEMPORARY STAFFING 130894 2 149483 299060 3746848 1967361 4195391 SALE OF HOMES 531390 937000 937000 MORTGAGE LOAN DISCOUNT AMORTIZATI 531390 365673 365673 OTHER PROGRAM REVENUE 531390 90547 90547 1393220 26756 26756 756016 673730 82286 82286 82286 0 149483 32652 -32652 -32652 1754409 1800344 -45935 -45935 5619066 1475506 0 -51831 44000 44000 575854 205167 167355 203332 1708323 1182125 192906 333292 181307 128582 28822 23903 186339 118171 26761 41407 11506 11506 32500 32500 370774 311032 35917 23825 153029 131331 21698 232252 144381 36468 51403 398039 376853 12233 8953 125695 113375 4225 8095 3884 905 2278 701 274533 250162 17526 6845 25000 25000 233307 214754 11970 6583 137493 117306 13059 7128 COST OF HOMES SOLD 600887 600887 CONSTRUCTION MATERIALS 374525 374525 MORTGAGE DISCOUNT SUBSI 281395 281395 CORPORATE PARTNERSHIP P 84773 11959 72814 121350 94534 10880 15936 6156765 4726444 604406 825915 2803246 1232882 68462 161461 5226765 4713015 417650 398432 57375 46424 6444332 536515 5438411 5907817 0 1210508 3382512 5380003 17394421 19050542 481529 610531 22292 8001 7958220 10005910 220436 162366 8682477 10786808 X 8295618 7883625 113267 77050 303059 303059 8711944 8263734 17394421 19050542 X -537699 124290 -34801 X X 0 1 X 1 1 1 X 2598551 3233031 3130082 4418142 4195391 17575197 2598551 3233031 3130082 4418142 4195391 17575197 17575197 52294 1855 685 39909 24330 119073 17694270 0.99330 0.99260 X 0 1 X 345588 23364 14774 1754 352424 323621 38675 15060 1648 345588 345689 -5456 15022 1590 323621 358285 2293 13166 1723 345689 326256 48339 14607 1703 358285 0.86000 0.14000 1 0 1874778 1874778 3865477 3865477 649240 536515 112725 54837 54837 5907817 INVESTMENT IN NEW MARKET TAX CREDIT PROGRAM 1210508 C 1210508 BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FNDN 352424 FINISHED HOMES FOR SALE 598984 CONSTRUCTION IN PROCESS 4116166 DEPOSITS 29800 RECEIVABLE FROM SDHFH COMMUNITY HOUSING CORPORATION 162366 OTHER ASSETS 120263 5380003 REFUNDABLE ADVANCES 162366 162366 X 5795643 148105 30898 179003 5616640 2426 2426 5619066 6211478 23815 30898 54713 6156765 0 6156765 PART IV, LINE 2B: AS PART OF THE MORTGAGE SERVICING PROCESS, SDHFH COLLECTS MONTHLY AMOUNTS FOR PROPERTY TAXES AND INSURANCE FROM THE HOMEOWNERS, ALONG WITH THEIR MONTHLY MORTGAGE PAYMENTS. SDHFH THEN REMITS THE PROPERTY TAXES AND INSURANCE, WHEN DUE, TO THE COUNTY TAX COLLECTOR AND INSURANCE PROVIDERS, USING THE IMPOUNDED FUNDS. PART X, LINE 2: SDHFH, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED, AND THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. FOR THE YEARS ENDED JUNE 30, 2018 AND 2017, MANAGEMENT OF SDHFH BELIEVES IT HAS ADEQUATE SUPPORT FOR ALL MATERIAL TAX POSITIONS AND THAT IT IS MORE LIKELY THAN NOT, BASED ON THE TECHNICAL MERITS, THAT THE POSITIONS WILL BE SUSTAINED UPON EXAMINATION. SDHFH HAS ANALYZED THE TAX POSITIONS TAKEN IN ITS FILINGS WITH THE INTERNAL REVENUE SERVICE AND THE CALIFORNIA FRANCHISE TAX BOARD. SDHFH BELIEVES THAT ITS INCOME TAX FILING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DOES NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON THE SDHFH'S FINANCIAL CONDITION, RESULTS OF OPERATIONS OR CASH FLOWS. ACCORDINGLY, SDHFH HAS NOT RECORDED ANY RESERVES, OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS AT JUNE 30, 2018 AND 2017. THE ORGANIZATION'S FEDERAL AND STATE INCOME TAX RETURNS PRIOR TO FISCAL YEARS 2015 AND 2014, RESPECTIVELY, ARE CLOSED. MANAGEMENT CONTINUALLY EVALUATES EXPIRING STATUTES OF LIMITATIONS, AUDITS, PROPOSED SETTLEMENTS, CHANGES IN TAX LAW AND NEW AUTHORITATIVE RULINGS. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 32,652. BENEFICIAL INTEREST -1,754. PART XI, LINE 4B - OTHER ADJUSTMENTS: NEW MARKET TAX CREDIT K-1 INTEREST INCOME 2,426. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 32,652. BENEFICIAL INTEREST -1,754. 0 0 0 0 0 0 0 0 0 SUB-SAHARAN AFRICA - ANGOLA, BENIN, BOTSWANA, BURKINA FASO, TO HELP PROVIDE A DECENT PLACE TO LIVE IN LESOTHO. 44000 CHECK FMV 0 0 0 0 0 0 PART I, LINE 2: SAN DIEGO HABITAT FOR HUMANITY, INC. PARTICIPATES IN THE HFHI TITHE PROGRAM, IN WHICH SDHFH WRITES A CHECK TO HABITAT FOR HUMANITY INTERNATIONAL AND DESIGNATES THE COUNTRY OR COUNTRIES THAT IT WOULD LIKE TO HELP. HFHI AGGREGATES THE AMOUNTS PROVIDED BY THE VARIOUS HFH AFFILIATES AND DISBURSES THE FUNDS TO THE APPLICABLE COUNTRIES. WOMEN BUILD 149483 149483 3134 18801 10717 149483 149483 3134 18801 10717 32652 -32652 X X X 0 0 0 0 0 0 0 0 0 LORI HOLT PFEILER PRESIDENT & CEO 160807 0 0 0 0 0 0 0 7106 0 167913 0 0 0 X 2 7596 FMV X 15 19330 FMV X BUILDING ITEMS FOR RESALE 5166 1681353 FMV X CONSTRUCTION SUPPLIES AND MATERIALS 59 234615 FMV X FIXED ASSETS 3 12949 FMV X SUPPLIES 8 4039 FMV X APPLIANCES 2 2992 FMV X OTHER PROMOTIONAL ITEMS 7 2918 FMV X EQUIPMENT RENTALS 2 875 FMV X SIGNS 1 694 FMV 0 1 0 FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE A COMMITTEE THAT HAS THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BOARD. FORM 990, PART VI, SECTION B, LINE 11B THE FINANCE COMMITTEE WILL REVIEW AND DISCUSS THE 990 PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE BOARD SECRETARY SHALL DISTRIBUTE A CONFLICT OF INTEREST QUESTIONNAIRE TO EACH DIRECTOR, OFFICER, AND PRESIDENT AND CHIEF EXECUTIVE OFFICER . EACH INTERESTED PERSON MUST COMPLETE AND RETURN THE QUESTIONNAIRE IN A TIMELY MANNER. ANY CONFLICTS DISCLOSED ON THE QUESTIONNAIRE SHALL BE RESOLVED ACCORDING TO THE GUIDELINES. AN INTERESTED PERSON SHALL MAKE AN APPROPRIATE DISCLOSURE OF ALL MATERIAL FACTS, INCLUDING THE EXISTENCE OF ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST OR ETHICAL QUESTION, WHENEVER SUCH A SITUATION ARISES. SUCH DISCLOSURE SHALL BE MADE FIRST TO THE CHAIR OF THE BOARD; PROVIDED, HOWEVER, THAT IF THE CHAIR HAS THE POTENTIAL CONFLICT, DISCLOSURE SHALL BE MADE TO THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, WHO SHALL TAKE THE MATTER UP WITH THE REMAINING MEMBERS OF THE EXECUTIVE COMMITTEE OF THE BOARD. THE INTERESTED PERSON SHALL BE ENTITLED TO MAKE A PRESENTATION TO THE BOARD IF HE OR SHE BELIEVES THAT THE POTENTIALLY CONFLICTING INTEREST DOES NOT, IN FACT, PRESENT A DISQUALIFYING CONFLICT OF INTEREST. AFTER THE DISCLOSURE REQUIRED OF AN INTERESTED PERSON, AND ANY PRESENTATION MADE TO THE BOARD, A DETERMINATION WILL BE MADE AS TO THE EXISTENCE OF A CONFLICT OF INTEREST. DETERMINATION WILL BE MADE ON A CASE-BY-CASE BASIS WHETHER A CONFLICT EXISTS AND, IF SO, THE APPROPRIATE METHOD FOR PROCEEDING, IN THE SOLE REASONABLE DISCRETION OF THE DETERMINING PERSON OR BODY. FACTORS THE DECISION-MAKING PERSON(S) SHALL CONSIDER WILL INCLUDE THE PROXIMITY OF THE INTERESTED PERSON'S INTEREST TO THE DECISION AT ISSUE, WHETHER THE INTERESTED PERSON'S INTEREST IS DE MINIMIS; THE DEGREE TO WHICH THE INTERESTED PERSON MIGHT PERSONALLY BENEFIT FROM THE TRANSACTION AT ISSUE. IF IT IS DETERMINED THAT AN ACTUAL CONFLICT OF INTEREST EXISTS, THEN THE MATTER CAN ONLY BE RESOLVED BY (I) THE RECUSAL OF THE INTERESTED PERSON FROM ANY DISCUSSION OR OTHER INVOLVEMENT IN THE DECISION THAT IS THE SUBJECT OF OR AFFECTED BY THE CONFLICT; OR (II) WAIVER BY THE BOARD OR PRESIDENT AND CHIEF EXECUTIVE OFFICER, UNDER CIRCUMSTANCES THAT ARE RECORDED IN THE MINUTES OF THE BOARD OR BY MEMORANDUM TO THE BOARD FROM THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, AS APPROPRIATE, OR (III) IF THE TRANSACTION INVOLVES "SELF-DEALING" AS THAT TERM IS USED IN CALIFORNIA CORPORATIONS CODE SECTION 5233, THEN IF THE TRANSACTION IS APPROVED BY A SUPER-MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION CONSISTS OF REVIEWING COMPARABLE SALARIES FOR NON-PROFIT ORGANIZATION POSITIONS IN CONSTRUCTION OR SIMILAR ASSOCIATIONS BASED IN SAN DIEGO COUNTY AND APPROVAL BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 18 THE FORM 990 IS PUBLISHED ON THE ORGANIZATION'S WEBSITE AS WELL AS THE CHARITY NAVIGATOR AND GUIDESTAR WEBSITES. FORM 990, PART VI, SECTION C, LINE 19 - GOVERNING DOCUMENTS ARE ON FILE WITH THE CALIFORNIA SECRETARY OF STATE AND CAN BE ACCESSED BY THE GENERAL PUBLIC - THE CONFLICT OF INTEREST POLICY IS AVAILABLE UPON REQUEST. - AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS OF THE PUBLIC ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XI, LINE 9: EXCESS CONSIDERATION OVER FAIR VALUE OF NET ASSETS ACQUIRED -32,375. NEW MARKET TAX CREDIT K-1 INTEREST INCOME -2,426. SCHEDULE D PART VIII - INVESTMENTS - PROGRAM RELATED IN APRIL 2018, SDHFH PARTICIPATED IN A NEW MARKETS TAX CREDIT ("NMTC") FINANCING TRANSACTION WITH OTHER ENTITIES IN ORDER TO PROCURE FINANCING FOR THE CONSTRUCTION OF 16 HOMES 8 AT COMM22 IN SAN DIEGO, 5 ON BALLANTYNE STREET IN EL CAJON AND 3 ON GROSSMONT AVENUE IN EL CAJON. THE NMTC PROGRAM PERMITS CORPORATE AND INDIVIDUAL TAXPAYERS TO RECEIVE A CREDIT AGAINST FEDERAL INCOME TAXES FOR MAKING QUALIFIED EQUITY INVESTMENTS IN QUALIFIED COMMUNITY DEVELOPMENT ENTITIES ("CDE"). AS A PARTICIPANT IN THIS TRANSACTION, SDHFH INVESTED $1,212,933 INTO HFHI NMTC LEVERAGE LENDER 2018, LLC ("HFHI LEVERAGE LENDER"), CONSISTING OF CASH AND QUALIFIED CONSTRUCTION-IN-PROCESS. THE HFHI LEVERAGE LENDER CONTRIBUTED ITS RESOURCES TO TWAIN INVESTMENT FUND 306, LLC ("INVESTMENT FUND"), WHICH RECEIVED ADDITIONAL INVESTMENT FROM U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION ("BANK") AS THE FEDERAL TAX CREDIT INVESTOR UNDER THE NMTC PROGRAM. AS PART OF THE NMTC PROGRAM, THE INVESTMENT FUND INVESTED IN HFHI NMTC SUB-CDE III, LLC, A QUALIFIED CDE. THE CDE DEPLOYED A LOAN TO SDHFH IN THE AMOUNT OF $1,786,082 AT AN ANNUAL INTEREST RATE OF 0.679239% FOR THE CONSTRUCTION OF HOMES IN A QUALIFIED CENSUS TRACT FOR LOW INCOME PERSONS. SEMI-ANNUAL INTEREST-ONLY PAYMENTS ARE REQUIRED THROUGH APRIL 19, 2025. AFTER APRIL 19, 2025, SDHFH SHALL MAKE SEMI-ANNUAL PAYMENTS IN AN AMOUNT SUFFICIENT TO FULLY AMORTIZE THE REMAINING PRINCIPAL BALANCE OVER TWENTY-THREE YEARS. THE LOAN PROCEEDS ARE TO BE USED SOLELY IN ACCORDANCE WITH NMTC COMPLIANCE REQUIREMENTS. THE INVESTMENT FUND MAY BE SUBJECT TO TAX CREDIT RECAPTURE IF THE NMTC PROGRAM COMPLIANCE REQUIREMENTS ARE NOT MET OVER A SEVEN-YEAR PERIOD. THE ULTIMATE HOLDER OF THE ABOVE LOAN FROM THE CDE TO SDHFH IS THE BANK THROUGH ITS PARTICIPATION IN THE INVESTMENT FUND. IN APRIL 2025, THE BANK HAS THE OPTION TO WAIVE THE PAYMENT OF THE DEBT BY EXERCISING ITS PUT OPTION AGREEMENT. UNDER THE TERMS OF THE PUT OPTION AGREEMENT, THE HFHI LEVERAGE LENDER HAS THE OPTION TO PURCHASE THE BANK'S OWNERSHIP INTEREST IN THE INVESTMENT FUND. IF THE OPTION IS EXERCISED IT WILL EFFECTIVELY EXTINGUISH SDHFH'S OUTSTANDING DEBT TO THE BANK. SDHFH FUNDING COMPANY I LLC 8128 MERCURY CT SAN DIEGO CA 92111 ACQUIRING AND HOLDING MORTGAGE LOANS AND RELATED DOCUMENTS CA 154613 2146270 N/A SAN DIEGO HFH COMMUNITY HOUSING CORP 8128 MERCURY CT SAN DIEGO CA 92111 330902043 FUNDING CA 501(C)(3) LINE 7 N/A 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SAN DIEGO HFH COMMUNITY HOUSING CORP D 162366 COST