Agenda packet — Placentia City Council, June 6, 2023 (part 5 of 9)

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City of Placentia -Affordable Housing Development Opportunity Section E: Conceptual Development Program Baker Street
Local Preference and Target Population
MHC has worked with local jurisdictions to implement targeted marketing processes or local preferences. The City of San Francisco has a HUD -approved local preference that MHC has implemented on many of its projects.

Mercy has also worked with the City of San Lorenzo to create a local preference for the Arbor at Hesperian, a senior housing project. This preference was created for this project, with input from the City of San Lorenzo and the County of Alameda. This process involved referring to legal counsel, to ensure an acceptable program. The lottery system gave preference to local applicants but was not exclusive to local applicants. The result of this lottery led to 62 local applicants within the initial 100 tenants selected. Through creating this process from scratch, we were able to understand what works best for lease -up process and for the city. At Villa de Vida Poway, we worked closely with many local community groups during the marketing and lease -up. The 55 -units at Villa de Vida Poway are all supported by San Diego County vouchers and could not be restricted by a local preference. Through intensive local outreach, work with our community partners, and providing application support, 36 of the units were occupied by Poway residents.

Orange County does allow local preference with its funding, although the PBVs preclude local preference for the vouchers. The PSH units would not be eligible for an explicit local preference. We would work with the City to understand and implement a local preference for the remainder of the units. Depending on the structure and goals of the City, our team can approach this preference in a variety of ways, as evidenced by our experience.

We had conversations the County Office of Care Coordination about ways that residents exiting the PATH Navigation Center would be able to be prioritized for the units at Baker Street. This includes support in registering and being active in the Coordinated Entry System, which is used for placement. The Office of Care Coordination also let us know that placement is typically done within the Service Planning Areas of the County, so the focus would be on eligible residents from those areas. We discuss our management and resident selection approach in more detail in Section H, including a sample resident selection criteria agreement in the County of San Mateo.

The remainder of the units will be intended for low-income families and individuals. As discussed, the building will have play areas for a wide range of ages. The location of the project, near the future Metrolink Station and the parks, schools, and amenities of Old Town Placentia make this a wonderful location to provide affordable housing for families.

Phase II
TCA also considered the addition of the other parcels on Baker Street. MHC would actively pursue acquiring these as a Phase II project. The Phase II design is included in the design package (at the end of this section).

Phase II mimics Phase I in height and style and is intended to seamlessly integrate with the original phase. Phase II would add an additional 33 of parking spaces and 40 units in five stories. The lobby and offices of Phase I would be shared with Phase II, requiring no additional management space. Phase II would have additional open and amenity space constructed, to meet zoning requirements. MHMG would operate the projects as one and would need 2 FTE in additional staffing to serve these additional units. i
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Conceptual Development Plan

PHASE 1 PHASE 2

SITE INFORMATION
ASSESSOR PARCEL # (339-392-19, -14, -15 )8, (339-391-15, -14)

ADDRESS

SITE AREA
323,300/ 307, 312,314 Baker St.
43,729 SF

1.004 AC

DEVELOPMENT PARAMETERS

PERMITTED/REQUIRED PROPOSED
ZONING

SETBACKS
FAR
FLOOR AREA*
MAX. BLDG HEIGHT

DENSITY BONUS

NUMBER OF UNITS

DENSITY

DENSITY BONUS
(RAILROAD/FRONT/SIDE/REAR/STREET SIDE)
(PER ZONING)
11'
(65 UNITS PER ACRE)
35% INCREASE
High Residential - Old Town Placentia
Revitalization Plan
0'/5'-15'/0'/0'/5'-15'

3.00 131,187 SF
55'
66'
66 66 DU/AC
89 High Residential - Old Town Placentia
Revitalization Plan
0'/5'-15'/0'/0'/5'-15'
66'
68 68 DU/AC
* Floor area includes...

UNIT SUMMARY

UNIT TYPE
1 Bedroom:

Al
Average Total
SF* Units
593 26
Unit Mix
Total
Net Rent.

38.2% 15,418
2 Bedrooms:

B1
893 24

35.3% 21,432
3 Bedrooms:

Cl
C2
1,018 14
1,350
Sub -Total 18

20.6%

5.9%

26.5%
14,252
5,400
19,652
TOTAL
831 68
100.0% 56,502

FLOOR AREA SUMMARY
Residential Floor Area
Lobby
Res. Services
Mail/ PKG.

Offices
Conference Rm
Community Rm
Community Rm - Restroom
Laundry Rooms
72,438
373
302
229
645
753
896
265
1,160

PARKING SUMMARY
77,061
REQUIRED PARKING per Density Bonus PROVIDED PARKING
Unit Type
1 -Bedroom
2 -Bedrooms
3 -Bedrooms
Guest
Units
21 18
0 Ratio

1.0 1.5

1.5 Not Required
Total LEVEL
9 Within Building - Office
32 27 Within Building -Residents
0 Off Site
48 68
Tandem Standard - 9019 Total
2 2 4
45 23
45 23
Sub -Total 68
PSH Units -1 bedroom 17 no parkmng req'd per AB1763 TOTAL PSH Units - 2 bedroom 3 no parkmng req'd per AB1763
TOTAL 20 Units 0
Office Parking
TOTAL 72 ADA Stalls - Residential
ADA Stalls - Guest/Employees
4 per 1000 4
2 70 72

ADA PARKING - RESIDENTIAL REQUIRED/PROVIDED
Percentage #Stalls
2 68
5 4
Total

2.0 1.0
3 BICYCLE PARKING - RESIDENTIAL REQUIRED/PROVIDED EV PARKING - RESIDENTIAL REQUIRED/PROVIDED Short-term
Long -Term
Ratio # Units
1 per 5 units 68
2 per 5 units 68
Total Percentage B Stalls
14 EV Stalls 40 72
27 EV Aisle 1 per 25 29
TOTAL 41

OPEN SPACE SUMMARY
Total
29 2

COMMON REQUIRED PROVIDED COMMON
SF per unit B Units
Total LEVEL Total
Total Units 50
68 3,400 SF Courtyard at 5th Floor
Density Bonus Reduction
SUB - TOTAL 3,400 SF
20% 680 SF
TOTAL 2,720 SF
2,7205F
2,7205F

PRIVATE REQUIRED PROVIDED COMMON
SF per unit # Units
Total Total
Total Units
64 68
4,352SF Units 4,352 SF

SITE INFORMATION
SITE AREA - Approximate numbers
19,4925F

0.447 AC

DEVELOPMENT PARAMETERS

PERMITTED/REQUIRED PROPOSED
ZONING

SETBACKS
FAR
FLOOR AREA*
MAX. BLDG HEIGHT

DENSITY BONUS

NUMBER OF UNITS

DENSITY

DENSITY BONUS
(FRONT/SIDE/REAR/STREET SIDE)
(PER ZONING)
11'
(65 UNITS PER ACRE)
35% INCREASE
High Residential - Old Town Placentia
Revitalization Plan
5'-15'/0'/0'/5'-15'

3.00 58,476 SF
55'
66'
30 67 DU/AC
41 High Residential - Old Town Placentia
Revitalization Plan
5'-15'/0'/0'/5'-15'
66'
40 89 DU/AC
* Floor area includes...

UNIT SUMMARY

UNIT TYPE
1 Bedroom:

Al
A2
Average Total#
SF° Units
593 12
586 0
Unit Mix

30.0%

0.0%

30.0% 7,116
Total
Net Rent.
7,116
0 Sub -Total 12
2 Bedrooms:

B1
893 16

40.0% 14,288
3 Bedrooms:

Cl
1,018 12

30.0% 12,216
TOTAL
535 40
100.0% 21,404

FLOOR AREA SUMMARY
Residential Floor Area
Amenity
Laundry Rooms
27,441
1,085
964

PARKING SUMMARY
29,490
REQUIRED PARKING per Density Bonus PROVIDED PARKING
Unit Type
1 -Bedroom
2 -Bedrooms
3 -Bedrooms
Guest
# Units Ratio
3 1.0
8 1.5
12 1.5
0 Not Required
Total LEVEL
3 Within Building- Residents
12 18
0 Tandem Standard - 9x19 Total
33 33
23 33 TOTAL
33 33
PSH Units -1 bedroom 9 no parking req'd per AB1763 ADA PARKING - RESIDENTIAL REQUIRED/PROVIDED PSH Units - 2 bedroom
8 no parkng req'd per AB1763
TOTAL 17 Units 0 ADA Stalls -Residential

BICYCLE PARKING - RESIDENTIAL REQUIRED/PROVIDED
Ratio B Units
Short-term 1 per 5 units 40
Long -Term 2 per 5 units 40
Percentage B Stalls
2 33
Total

1.0 EV PARKING - RESIDENTIAL REQUIRED/PROVIDED
Total
8 EV Stalls
16 EV Aisle
TOTAL 24

OPEN SPACE SUMMARY
Percentage B Stalls
40 33
1 per 25 13
Total
13 1

COMMON REQUIRED PROVIDED COMMON
SF per unit B Units
Total LEVEL Total
Total Units
50 40 2,000 SF Courtyard at 2nd Floor
Density Bonus Reduction

SUB - TOTAL
2,368 SF
2,000 SF 2,368 SF
20% 400SF
TOTAL 1,600 SF

PRIVATE REQUIRED PROVIDED COMMON
SF per unit B Units
Total Total
Total Units
64 40 2,560 SF Units
TOTAL 2,560 SF
2,560 SF
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ARCH ITECTS
TOTAL 4,352 SF

ILLUSTRATIVE SITE PLAN

KEY NOTES
1 RESIDENT COURTYARD AT PODIUM
2 AT GRADE COURTYARD
3 ROOF DECK
4 SURFACE PARKING
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ARCIITECTSMIM

SECTION
A
(and,

FIRST FLOOR PLAN
0' 10' 20' 40'

COURTYARD
(Not part of Open Space req'd)
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ELEC.
344 SF
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MECHANICAL
346 SF

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REQ'D

SECTION
A

SECOND FLOOR PLAN
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0' 10' 20' 40'
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A

SECTIONAL
/
A
/
THIRD - FOURTH FLOOR 20'

TOP OF PARAPET
ROOF
5TH STORY
4TH STORY
STORY
2ND STORY
1ST STORY
Fire Lane/ arking Entry
211.
0 Units

SECTION A
0' 10' 20' 40'
Building Beyond
m
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0-
C
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m 0
PHIA
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Phase 2 - Courtyard
Parking
J
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A
,
,
,
,
/
/

SECAION
A

FIFTH FLOOR PLAN
Lnits
PH
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1 Res. Services
Parking
r
r
0' 10' 20' 40'
TOP OF PARAPE�
ROOF
5TH STORY
4TH STORY
3RD STORY n
T 2ND STORY nV
1ST STORY n
Melrose St.

PHASE 2
PHASE
- - -` - COMMUNITY
ROOM
838 SF
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ARCH ITECTS

PHASE 1
ir VIEW TOWARDS PROJECT

KEY PLAN
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Section F: Financing Strategy

City of Placentia -Affordable Housing Development Opportunity Section F: Financing Strategy Baker Street
Section F: Financing Strategy
MHC is proposing a 68 -unit, mixed population community that will serve low-income families and adults exiting homelessness. It will create an opportunity for guests of the City's Navigation Center to move into a permanent housing setting while also providing essential housing to working families. We believe this mix addresses the priorities expressed through the RFP document and is also responsive to the needs identified in the city's 6th Cycle Housing Element. To successfully implement Baker Street, MHC will:
1) Create multiple pathways to funding success: In today's environment, it is critical that projects consider multiple paths to funding and clearly communicate those paths to our public partners. MHC's Veterans Villas at San Antonio (in Norwalk), for example, began as a 4%/VHHP/MHP project. MHC identified an opportunity within the Los Angeles County 9% system to switch the funding approach and worked with HCD to modify our MHP award. MHC was successful in securing 9% credits and the project broke ground earlier this year. We would approach Baker Street similarly and have created two scenarios that can fully fund Baker St. We have also identified the risks with each scenario and steps that could be considered to improve competitiveness.
2) Aggressively pursue local resources: MHC has been in communication with the Orange County Housing and Community Development team. We expect that a $67 million NOFA will be released later this month, with a priority on funding supportive housing for homeless individuals and families. The NOFA is effectively first come, first served though Project Homekey applications will have first priority.

Described in more detail below, based on the County's 2020 NOFA, Baker Street would meet the appropriate readiness criteria, as it does not require completed entitlements, and we would propose to apply by May 30th, 2023. Though we understand our design will need to go through development plan review, we believe that our existing site/floor plans would be sufficient to support submitting an application. If we do not pursue these funds now, the project will need to identify another local source in order to maintain reasonable competitiveness for State funds. OC HCD does not typically release NOFAs annually; the most recent previous NOFA was in 2020. 3) Design a potential two-phase development that, if able to be fully realized, will effectively function as a single cohesive community: Our architect, TCA, has thoughtfully created a cohesive two-phase project that concentrates office, activity and entrance/lobby spaces for both phases. If we are successful in securing the additional site, we believe it will work effectively as a small 9% or 4%/bond application and will benefit from shared management and service staffing/expense. The community will read as a single, integrated development and build upon the city's vision for a transit village in the Old Town area.

As noted, MHC operates twenty (20) mixed population communities throughout the State, serving an incredibly diverse range of people with complex needs. Our experience in these settings points to the importance of establishing the high impact service provider relationships, creating appropriate alignments within housing referral systems, and ensuring the property is set up with correct tools to successfully identify and screen residents for this housing setting. This is what has created success at MHC's other mixed population communities, such as Baldwin Rose Apartments where 22 formerly homeless single adults are mixed with 32 apartments for low-income veteran families. At Baker Street, our selection of a service provider and partner is a critical decision. While PATH currently operates the Navigation Center, it is not on the County's list of approved service providers for MHSA funding. Our goal will be to create alignment between the referral agency and the Baker Street service provider. We want our service provider to know our community well and to know the clients it is referring into Baker Street so that our residents have the best chance for housing retention and mercyHousING

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City of Placentia -Affordable Housing Development Opportunity Section F: Financing Strategy Baker Street
success. We would work closely with the County Health Care Agency in selecting a service partner and in defining the process through which clients are referred to Baker St. From our conversation with the County Office of Care Coordination, we understand that Baker Street can focus on clients from the North Service Planning Area, which includes the Placentia and Buena Park navigation centers. Importantly, as an operator of over 2,400 PSH apartments across California, we know how important it is to have alignment between our service partner and our management company. Our management company shares the Mercy Housing mission of housing stability and works extremely hard to keep our residents permanently housed. MHMG's high retention rate of 97% across its supportive housing portfolio demonstrates the success of this collaborative effort.

Baker Street aligns well with MHC's real estate development business plan and overall real estate strategy for Southern California. MHC continues to focus on opportunities in Orange County and adding a second community to our existing Placentia Veterans Village allows us to deepen our ties and impact in the city and region. We are an experienced mixed population developer, owner and property manager and come into this opportunity understanding the questions that must be asked to build and sustain a successful community.

When proposing the financing strategy for Baker Street it was important to keep the current and future financing environment in mind. Capital and tax credit financing has become increasingly competitive over the last few years and will likely to continue to be quite competitive. This is due to much more affordable housing development and construction, but also due to a reduction in availability of statewide capital sources. The most reliable programs from the California Department of Housing and Community Development (HCD) are facing shortages, including MHP and IIG. The bond that funded MHP in 2018 will be fully allocated next year, and until a new bond is on the ballot, any MHP funds will need to be allocated through the Governor's budget.

Assemblymember Wicks is currently working to get that bond on the statewide ballot, but it may not make the ballot until 2024. The City has been a great partner creating a community for veterans, and the Veterans Homelessness and Housing Prevention (VHHP) Program does tend to be undersubscribed, so there are opportunities in VHHP, but we didn't feel that the goals of this RFP matched with restricting units to homeless veterans. Below is a chart showing a rough overview of the availability of capital financing from HCD and the level of subscription for each of the sources.

Amount
available in
2022
SuperNOFA
Amount
Applied for in
2022
SuperNOFA
Anticipated
Amount Available
in 2023 SuperNOFA
Anticipated
Timing of Next
SuperNOFA
Anticipated Amount
Available in 2024
(from bonds or
budget)
MHP
$257 MM
$2.9 B
$220 MM
June 2023
$225 MM
IIG
$200 MM
$414 MM
$135 MM
June 2023
$200MM
VHHP
$95 MM
$118 MM
$50 MM
June 2023
$50MM
MHC is a leader in policy and financing and plays an active role in advocating and evaluating the financing landscape. We use this knowledge and experience to ensure that we are evaluating and creating financing scenarios that match the current environment but are flexible to changes. In creating our financing approach, we have evaluated two primary funding models:
1) 9%, HCD Infill and Infrastructure Grant (IIG), County funds, City land donation 2) 4%/Bonds, IIG, HCD Multifamily Housing Program (MHP), County funds, City land donation "mercyHous I NG
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Section F: Financing Strategy
City of Placentia -Affordable Housing Development Opportunity Baker Street
In the absence of another local source, both scenarios require at least one State HCD funding source, the IIG program. This program funds capital improvements such as site preparation, drainage, streetscape work, and structured parking. IIG is a grant that is available in construction and as a permanent source. We have evaluated scores from the last four rounds for 9% tax credits (Orange County pool), the first round of the HCD SuperNOFA (IIG/MHP) and the last two rounds tax exempt bonds. The table below summarizes the results for 9% and SuperNOFA scoring and compares them to the scoring for our proposal at Baker Street. Our CDLAC/bond analysis is provided below and, due to eligibility for multiple pool, is not summarized in the table. A discussion of the details of the scoring is below and a full analysis is included in the Appendix. 9%

MHP/IIG
IIG Only
Max Baker St. Points
109
105
105
Baker St. Tiebreaker

50.5%

92.70%

92.70%
Highest funded score

78.15%
111
111
Lowest funded score

43.08%
111

88.5 Avg. funded score

63.13%
111
103.67
# applicants
20 48
35 # projects funded at/below Baker St. Score
13 0
8 # funded at/below Baker St. tiebreaker
4 0
5 funded at/below Baker St. Score
65%
0%
23%
funded at/below Baker St. tiebreaker
20%
0%
14%
# funded at 106 points HCD
0 18
funded at 106 points HCD
0%
86%
# funded at 106 at/below Baker St. TB
0 14
funded at 106 at/below Baker St. TB
0%
67%
With the exception of Affordable Housing and Sustainable Community (AHSC) funds, HCD sources have been unified in the SuperNOFA process, including IIG and MHP. The most recent SuperNOFA was oversubscribed 10:1, so these funds are highly competitive. The maximum points available for projects is 113 points. Five of those points are for projects in High and Highest Resource Areas, on the TCAC Resource Area map, and two of those points are for projects that are state-owned surplus land. The maximum points possible for this site would be 106 points.

However, this site is only scoring 105 points, as it is not close enough to "High Quality Transit," as defined in the 2022 SuperNOFA. The definition of High Quality Transit is the intersection of two bus lines, with 15 minute headways or less, and the required distance to score for this access is a 0.25 mile walk. The nearest bus stop to the site is a 0.5 mile walk, at Chapman Ave. and Melrose St. There are two bus lines that intersect here, but the headways are not often enough. Mercy Housing, along with many of our housing associations, are advocating to change this transit score requirement from a 0.25 mile walk to a 0.5 mile walk. However, Baker Street would still be missing out on a point for the SuperNOFA due to the low frequency of transit. As you can see above, the loss of this transit amenity point has a material impact on project competitiveness as projects with this extra point were nearly 4X more likely to receive an IIG award than those with 105 points. Gaining this additional point, in "mercyHous I NG
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City of Placentia -Affordable Housing Development Opportunity Section F: Financing Strategy Baker Street
the last round, increased the likelihood of funding for IIG only from 23% to 86%. Importantly, it did not increase the likelihood of an MHP/IIG combined award, as those funded projects all received maximum points of 111 or higher. We would like to work with the City/OCTA to understand if there are any plans in the future to increase frequency at the Chapman Ave. and Melrose St. stop. We will also continue to advocate for a reduction in the high transit proximity distance for HCD. If we are able to secure this additional point, scenario 1 becomes a very likely funding pathway. Without the extra point it, though, it still has a reasonable chance of securing IIG.

Scenario 1 is currently the strongest, and with the existing status of regulations and funding sources, the most realistic option. With, or without, the additional amenity point for transit, the tiebreaker for the 9% IIG-only project is within the range of awarded scores. The 9% tiebreaker itself is also within the range of awarded projects.

As the regulations currently stand, it is unlikely that this project, as proposed, would be awarded MHP and IIG funds. The project is not eligible for specific pools, including the MHP Senior set -aside nor the non -tax credit pool. This evaluation is based off the most recent knowledge that we have, as HCD has not released updated guidelines for the upcoming, second round of the SuperNOFA. This project would not be ready to apply to the SuperNOFA until 2024, which allows us to observe and learn from an additional round of applications and awards. There is considerable advocacy around the state for a variety of changes and clarity from HCD regarding the guidelines and regulations. The County NOFA is the important goal to achieve now, because of the less -than - annual NOFA calendar. Once we have applied for that award, we will have flexibility to respond to any changes in financing at the state level and move towards a 4% or 9% scenario, depending on which is optimal at that time.

The 9% tax credit scenario includes state credits and IIG as well as funding from the Orange County Department of Housing and Community Development. Orange County receives a relatively small amount of 9% tax credit allocation. It is typically enough for two larger projects or three to four small projects. This project would require the full Orange County allocation per round, with state and federal credits. In the last four years, four additional Orange County projects have been awarded off the waiting list with the average tiebreaker at 37.43%.

We also show capital and operating subsidy support from Orange County. Villa St. Joseph has both capital financing and project -based vouchers from Orange County as well as additional case management support for the homeless units. Capital support is for permanent supportive housing units, at $150,000 per unit. In both scenarios, $3,000,000 is shown as the Orange County funding amount. The NOFA looks to equivalent support from local jurisdictions and the carryback loan from the City of Placentia for site acquisition would be a form of that support.

The operating subsidy from Orange County comes in the form of project -based vouchers, which are assumed on 19 permanent supportive housing units. Additionally, with MHSA funding from Orange County, there is also operating support to pay for supportive services for those units. The unit set -aside for the family from HIS House does not show support from project -based vouchers or tax credits. In order to exclusively set this unit aside, it needs to be outside of the regulatory controls of many of our funding sources. This unit is a two -bedroom unit with rent set at the equivalent to 15% of AMI. For our analysis we have also excluded this unit from tax credit eligibility. Our assumption is that this unit is for the sole benefit of HIS House, though further conversations with HIS House, the city and county may allow us to add this unit back in. We will work with Placentia and HIS House to ensure that this unit is structured appropriately for their clients. "mercyHous I NG
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City of Placentia -Affordable Housing Development Opportunity Section F: Financing Strategy Baker Street
The 4% scenario includes funding from HCD MHP as well as the IIG funds and OC HCD funds discussed above.

The affordability levels and local support of the project should allow it to have competitive tiebreakers for CDLAC, though as noted it would struggle for competitiveness for IIG/MHP . The 4% CDLAC tiebreaker score would be 102.1% and the SuperNOFA tiebreaker score would be 92.57%. As discussed above, the current structure and competitiveness make this pathway unlikely, but we would pursue it if we see or anticipate changes to the HCD SuperNOFA program. 4% tax credits have been highly competitive in the last few years, so optimizing the CDLAC tiebreaker is important. The most recent round was oversubscribed 2.5:1. As with the SuperNOFA scoring, there is an additional point for projects in High and Highest Resource Areas. However, of the projects receiving 119 points, this tiebreaker would have been the highest in the Coastal region in the past two CDLAC rounds. Local support and the ability to have a lower average affordability are key. This project would also compete in the ELI/VLI and the homeless set -asides for CDLAC, however those set -asides are much more competitive, and it is unlikely that the current tiebreaker score would be awarded. This does mean that this site has three opportunities to be awarded.

While this project could look to state tax credits to replace MHP or significantly lower the MHP amount requested, this would greatly affect the CDLAC tiebreaker score. Applying for the maximum available state credit amount would almost halve the tiebreaker score, to 67%. As that is not a competitive score for the region, or the relevant set -asides, we did not consider this option for scenario 2.

The California Land Acquisition Fund (Land Fund), described in Section D, will be a key part of the financing and development strategy for Baker Street. The Land Fund is able to execute a purchase and sale agreement with existing property owners (who we have not contacted) for the adjacent Baker Street sites and has readily available capital for the purchase, carrying costs, and due diligence items. Because of the structure of the Land Fund, our team would be able to offer more competitive timing terms to the adjacent property owners.

Phase II
We have included a sample pro forma for Phase II, at 40 units. The size of this building would be optimal for a 9% project and would only request $1.6 million of annual federal credits. The structure proposed would be very similar in proposed population, operations, and financing to Phase I. Phase II would realized efficiencies in operations by only adding two additional FTE in staff as well as other operating efficiencies in the project. This would allow it to operate soundly as a smaller project. We assumed the land cost to be at the same price per square foot as the city site.

Detailed sources and uses are included with the pro formas at the end of this section. "mercyHous I NG
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Scenario 1: 9% Phase I Proforma

SOURCES AND USES
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

CONSTRUCTION SOURCES OF FUNDS
Bank Construction Loan
N/A
Tax Credit Equity
AHP
MHP
IIG
Land/Building Donation
Expenses Paid at Conversion to Perm
GP Contributions
Deferred Dev. Fee
GP Equity

TOTAL CONSTRUCTION SOURCES

PERMANENT SOURCES OF FUNDS
Conventional Amortizing Loan
Section 8 Backed Mortgage
Tax Credit Equity
AHP
MHP
Orange County
IIG
DDS Capital
Land/Building Donation
GP Contributions
Deferred Dev. Fee
GP Equity

TOTAL PERMANENT SOURCES

USES OF FUNDS
Acquisition
Hard Costs
Architectural
Engineering
Constr. Int and Fees
Permanent Financing
Legal
Reserves
Contingencies
Other Costs
Developer Costs
Syndication

TOTAL USES
Amount
29,200,895
3,874,895
1,250,000
3,986,357
3,049,990
974,576
42,336,714
Amount
5,217,734
25,832,633
1,250,000
3,000,000
3,986,357
3,049,990
$ 42,336,713 $
3,049,990
27,602,445
1,228,309
200,000
2,650,573
97,177
100,000
922,723
2,021,616
2,138,880
2,200,000
125,000
42,336,714
Per Unit % of TDC
429,425 69%
0%
56,984 9%
18,382 3%
0%
58,623 9%
44,853 7%
14,332 2%
- C%
Cr/0
622,599 100%
Per Unit % of TDC
76,731 12%
Cr/0
379,892 61%
18,382 3%
Cr/0
44,118 7%
- 0%
58,623 9%
- 0%
44853
7%
0%
0%
622,599 100%
44,853
405,918
18,063
2,941
38,979
1,429
1,471
13,569
29,730
31,454
32,353
1,838
622,599

7.2%

65.2%

2.9%

0.5%

6.3%

0.2%

2.2%

4.8%

5.1%

5.2%

0.3%
100.0%
SURPLUS/GAP $

Page 1 of 8 ends

UNIT MIX
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
IMAX RENT (Gross per month; assume 1.5 persons/bdrm)
LIHTC Income Level
His House (non-LIHTC)
UNITS AT 81% AMI
15%
AMI
30%
AMI
40%
AMI
50%
AMI
60%
AMI
80%
AMI
90%
AMI
110%
AMI
120%
AMI
130%
AMI
Studio/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
353 706 941 1,177
378 756 1,008 1,261
453 907 1,210 1,513
524 1,048 1,398 1,748
585 1,170 1,560 1,951
1,412
1,513
1,815
2,097
2,341
1,883
2,017
2,420
2,796
3,121
2,118
2,269
2,723
3,146
3,511
2,589
2,774
3,328
3,845
4,292
2,824
3,026
3,631
4,195
4,682
3,060
3,278
3,933
4,544
5,072
His House (non-LIHTC)
UNITS AT 81% AMI

APARTMENT MIX
# of Apts
Sq. Ft.

Per Apt
15% 30% 40% 50% 60% 80%

AMI AMI AMI AMI AMI AMI
90%
110%
120%

AMI AMI AMI
130%
AMI
Unit Type Distribution
SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
0 27
23 17
0 1
500 0 0 0 0 0 0
593 0 17 2 3 5 0
893 1 2 3 5 12 0
1121 0 2 9 6 0
0 0 0 0 0 0
893
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0

0.0%

39.7%

33.8%

25.0%

0.0%

1.5%
TOTAL
68 1
19 7
17 23
0 1
0 0
0 100.0%
% of units

1.5% 28.4% 10.4% 25.4%

34.3%

0.0%

1.5%

0.0%

RENT SCHEDULE
Income Restriction Unit Type # of Apts
Sq. Ft. Sq. Ft. Gross Uti1 Effective Total
Per Apt Total Rent Allow Rent Ann'l Rent
30% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
40% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
50% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
60% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
His House Unit @ 15% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
TOTAL
17 2
2 3
2 3
5 9
5 12
6 1
1 68
500 - 706 46 660
593 10,081 756 62 694 141,576
893 1,786 907 78 829 19,896
1,121 - 1,048 98 950
1,170 123 1,047
500 - 941 46 895
593 1,186 1,008 62 946 22,704
893 2,679 1,210 78 1,132 40,752
1,121 2,242 1,398 98 1,300 31,200
- - 1,560 123 1,437 -
500 - 1,177 46 1,131 -
593 1,779 1,261 62 1,199 43,164
893 4,465 1,513 78 1,435 86,100
1,121 10,089 1,748 98 1,650 178,200
- - 1,951 123 1,828
500 - 1,412 46 1,366
593 2,965 1,513 62 1,451 87,060
893 10,716 1,815 78 1,737 250,128
1,121 6,726 2,097 98 1,999 143,928
- - 2,341 123 2,218
500 - 353 46 307
593 378 62 316
893 893 453 78 375 4,500
1,121 - 524 98 426
- - 585 123 462
893 893
56,500 $92,568 $5,134 $87,434 $1,049,208

SPECIAL NEEDS UNITS / RENT SUBSIDY
Percent of Units 19
# of Apts FMR /Contract Rent Utility Allowance Effective Contract Rent Subsidy PUPM Total Annual Subsidy - 1,939 46 1,893 - -
17 2,113 62 2,051 1,357 276,828
2 2,539 106 2,433 1,604 38,496
- 3,448 136 3,312
3,519 123 3,396
- 1,939 46 1,893
- 2,113 62 2,051
- 2,539 78 2,461
3,448 98 3,350
- 3,519 123 3,396
- 1,939 46 1,893
- 2,113 62 2,051
2,539 78 2,461
- 3,448 98 3,350
- 3,519 123 3,396
- 1,939 46 1,893
- 2,113 62 2,051
2,539 78 2,461
- 3,448 98 3,350
- 3,519 123 3,396
- 1,939 46 1,893
2,113 62 2,051
2,539 78 2,461
3,448 98 3,350
3,519 123 3,396
19 135580 315,324
Common/Utility Areas
TOTAL RES. AREA
20,559
77,059
$1,014,612
Other Income
Laundry/Vending Income
Other Income (Enter Here)
Total Other Income
68 Units $5.00 Month
4,080
4,080

POTENTIAL GROSS INCOME
1,368,612
Total
$1,364,532

Page 2 of 8 ends

DEVELOPMENT COSTS
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

ACQUISITION
Total Land Cost or Value
Carrying Cost
Total Building Cost or Value

TOTAL ACQUISITION

CONSTRUCTION / REHABILITATION
Demolition
Site Work/Landscape/Surface parking
Structures, Residential

TOTAL NEW CONSTRUCTION

ARCHITECTURAL FEES
TOTAL SURVEY and ENGINEERING

ENVIRONMENTAL MITIGATION
CONST. INTEREST & FEES
Const. Loan Interest
Bond Issuance
Origination Fee
Taxes During Construction
Performance Bond Premium
Lender Inspections
Title and Recording
Builders Risk Insurance
Contractor Insurance
TOTAL CONST. INTEREST & FEES

PERMANENT FINANCING
Loan Origination Fee
Title and Recording
Other

TOTAL PERMANENT FINANCING

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees

TOTAL OTHER FINANCING

LEGAL FEES
Constr. Related (includes lender legal)
Perm. Related (includes lender legal)

TOTAL LEGAL FEES
unit cost Total Project Cost
$82
$0
$358
4%

0.75%

1.25%

0.50%

1.00%
4%
3,049,990
3,049,990
27,552,445
27,602,445
1,228,309
150,000
50,000
2,151,133
219,007
57,187
30,000
45,000
148,246
2,650,573
52,177
20,000
25,000
97,177
127,880
127,880
50,000
50,000
100,000

Page 3 of 8 ends

DEVELOPMENT COSTS

RESERVES
Capitalized Operating
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement

TOTAL RESERVES

CONTINGENCIES
Construction Contingency
Soft Cost Contingency

TOTAL CONTINGENCIES
PERMITS & GOV. FEES
school impact fee
other impact fees
building permit, plan check, other fees
Capital Fees (utility fees & hook-up charges)

TOTAL PERMITS & FEES

THIRD PARTY REPORTS
Environmental Reports
Appraisal
Market Study
Title/Escrow/Closing

TOTAL THIRD PARTY REPORTS

OTHER OWNER COSTS
Financial Consultant
Cost Cert/Accounting
Construction Mang./Oversight/Testing

TOTAL OTHER OWNER COSTS

MANAGEMENT COSTS
Marketing/Leasing
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up)

TOTAL MANAGEMENT COSTS

SUBTOTAL

DEVELOPER COSTS
Developer Fee

TOTAL DEVELOPER COSTS

TOTAL SYNDICATION COSTS

TOTAL PROJECT COST

GRAND TOTAL DEVELOPMENT COSTS
6 months 607,399
5%
10%
315,324
922,723
1,380,122
641,494
2,021,616
$15,000 1,020,000
$5,000 340,000
$2,000 136,000
1,496,000
$2,500
15,000
15,000
10,000
40,000
30,000
30,000
145,000
205,000
170,000
100,000
270,000
40,011,714
2,200,000
2,200,000
125,000
42,336,714
$42,336,714

Page 4 of 8 ends

FINANCING
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
First Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.25%
30 30

1.15 385,518
$5,217,734
$5,217,734
Section 8 Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.25%
15 15

1.15 $0
$0

CONSTRUCTION PERIOD INTEREST CALCULATION
Construction
Lease-up/Conversion
Taxable Tail
Lease-up/Conversion
Total
Total Development Cost
42,336,714
42,336,714
Conventional construction loan amt
29,200,895
29,200,895
-
-
LTC

69.0%

0.0%
Months outstanding
18 4
18 4
Average % outstanding
50%
100%
50%
100%
Rate

6.8%

6.8%
Total Interest Estimate
1,489,246
661,887
50% Bond Test
Tax Exempt Financing
Depreciable Basis + Acquisition
Ratio
$39,978,040
0%
CDLAC Allocation Test
Total Limit
Passes? Yes
38,894,000
0 0 2,151,133
Constr/Rehab Acquisition

TAX CREDIT EQUITY CALCULATION
Basis
Deduct grant amounts
Eligible Basis
36,928,050
36,928,050
Threshold Basis Limits
Studio
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
MGR
Total
Threshold Basis Limit Adjustments
Prevailing Wage
Structured Parking
Daycare
100% special needs
Elevator
Type I Construction
Type III Construction
Energy efficiency/resource conservation/indoor air quality Seismic Upgrades or Environmental Mitigation
Affordability Adjustment (4% projects only)
Add Impact Fees
Opportunity Map High or Highest Resource Area
Adjusted Theshold Basis Limits
341,094
393,278
474,400
607,232
676,494
474,400
# of units
o
27 23
17 0
1 68
20%
10%
2%
2%
10%
15%
10%
0%
0%
93%
0%
Basis
0 10,618,506
10,911,200
10,322,944
0 474,400
32,327,050
6,465,410
3,232,705
0 0
3,232,705
0 0
0 1,020,000
46,277,870
0 0
Allowable Basis (Lesser of Actual or Adjusted Basis Limits) 36,928,050 0 Voluntary Reduction
Effective Reduction
Total Requested Unadjusted Eligible Basis
High Cost Area Adjustment (DDA or QCT)
Total Adjusted Eligible Basis
Applicable Fraction
Total Qualified Basis
Credit Reduction
Final Basis Amount
LIHTC Credit Rate
LIHTC Credit
10 year value
Net raise $/ Tax Credit
Federal Credit Equity
22%
99%
0%

9.00%

0.94 8,000,000
8,000,000
28,928,050
0 28,928,050
28,502,637
28,502,637
0 28,502,637

9.00%
2,500,000
25,000,000

0.94 23,500,000
8,000,000

9.00%
0 o

0.94 0
State Credit
State Credit $/credit
State Credit Equity
Total Net Equity to Project
2,915,791

0.80 2,332,633
25,832,633
8,550,791
I'age b of 6

OPERATING BUDGET
PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
Units 68

PAYROLL/PAYROLL TAXES
Admin Payroll
Operations and Maintenance Payroll
Other Personnel Expenses
Taxes and Benefits

TOTAL PAYROLL EXPENSES

ADMINISTRATIVE EXPENSE
Administrative Expenses
Advertising
Marketing
Audit Fees
Bookkeeping and Accounting Fee

TOTAL ADMINISTRATIVE EXPENSE

UTILITIES EXPENSES
Electricity
Water
Gas
Sewer
Other

TOTAL UTILITIES EXPENSES

OPERATING AND MAINTENANCE
Operations and Matinenance
Garbage/Trash Removal

TOTAL OPERATING EXPENSES

REAL ESTATE TAXES

INSURANCE

RESIDENT SERVICES

MANAGEMENT FEE

TOTAL OPERATING BUDGET
Yearly Expense PUPA
128,790 1,894
106,718 1,569
3,100 46
58,877 866
297,485 4,375
28,568 420
680 10
14,892 219
7,752 114
51,892 763
17,903 263
16,116 237
12,784 188
5,984 88
52,787 776
50,585 744
10,000 147
60,585 891
10,000 147
136,000 1,200
124,987 1,838
48,960 720
782,696 11,510

Page 6 of 8 ends

PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

CASH FLOW

POTENTIAL GROSS INCOME
Resident Rent - Conventional
Resident Rent - Special Needs
Rent Subsidy
Other Income

POTENTIAL GROSS INCOME

VACANCY LOSS
Resident - Conventional
Resident - Special Needs
Rent Subsidy
Commercial
Total Vacancy Loss

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

NET OPERATING INCOME

RESERVES
Replacement Reserve
Operating Reserve
Total Reserve Deposits

INCOME BEFORE DEBT SERVICE

DEBT SERVICE
First Mortgage
HCD/Other Debt Service
Bond Monitoring Fee
Total Debt Service

NET CASH FLOW
Inflation Initial Year
Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11

2.5% 75,636 13,348 907,632 930,323 953,581 977,420 1,001,856 1,026,902 1,052,575 1,078,889 1,105,861 1,133,508 1,161,846

2.5% 11,798 2,082 141,576 145,115 148,743 152,462 156,273 160,180 164,185 168,289 172,497 176,809 181,229

2.5% 26,277 4,637 315,324 323,207 331,287 339,569 348,059 356,760 365,679 374,821 384,192 393,796 403,641

2.5% 340 60 4,080 4,182 4,287 4,394 4,504 4,616 4,732 4,850 4,971 5,095 5,223 114,051 20,127 1,368,612 1,402,827 1,437,898 1,473,845 1,510,692 1,548,459 1,587,170 1,626,850 1,667,521 1,709,209 1,751,939

5.0% (3,782) (667) (45,382) (46,516) (47,679) (48,871) (50,093) (51,345) (52,629) (53,944) (55,293) (56,675) (58,092)

10.0% (1,180) (208) (14,158) (14,512) (14,874) (15,246) (15,627) (16,018) (16,418) (16,829) (17,250) (17,681) (18,123)

10.0% (2,628) (464) (31,532) (32,321) (33,129) (33,957) (34,806) (35,676) (36,568) (37,482) (38,419) (39,380) (40,364)

25.0% - - - - - - - - - - - - -
(7,589) (1,339) (91,072) (93,348) (95,682) (98,074) (100,526) (103,039) (105,615) (108,256) (110,962) (113,736) (116,579)

3.5%
106,462 18,787 1,277,540 1,309,479 1,342,216 1,375, 771 1,410,166 1,445,420 1,481,555 1,518,594 1,556,559 1,595,473 1,635,360 (65,223) (11,510) (782,680) (810,074) (838,426) (867,771) (898,143) (929,578) (962,114) (995,788) (1,030,640) (1,066,713) (1,104,047) 41,238 7,277 494,860 499,405 503,789 508,000 512,022 515,841 519,442 522,807 525,919 528,760 531,312 (2,833) (500) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (2,833) (500) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) 38,405 6,777 460,860 465,405 469,789 474,000 478,022 481,841 485,442 488,807 491,919 494,760 497,312

1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.24 1.25
(32,126) (5,669) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (1,050) (185) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (33,176) (5,855) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) 5,229 923 62,743 67,287 71,672 75,882 79,904 83,724 87,324 90,689 93,801 96,643 99,194

Page 7 of 8 ends

CASH FLOW
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1,190,892 1,220,664 1,251,181 1,282,460 1,314,522 1,347,385 1,381,069 1,415,596 1,450,986 1,487,261 1,524,442 1,562,553 1,601,617 1,641,658 1,682,699 1,724,766 1,767,886 1,812,083 1,857,385 185,760 190,404 195,164 200,043 205,044 210,170 215,425 220,810 226,330 231,989 237,788 243,733 249,827 256,072 262,474 269,036 275,762 282,656 289,722 413,732 424,076 434,678 445,545 456,683 468,100 479,803 491,798 504,093 516,695 529,612 542,853 556,424 570,335 584,593 599,208 614,188 629,543 645,281 5,353 5,487 5,624 5,765 5,909 6,057 6,208 6,363 6,522 6,686 6,853 7,024 7,200 7,380 7,564 7,753 7,947 8,146 8,349 1,795,738 1,840,631 1,886,647 1,933,813 1,982,158 2,031,712 2,082,505 2,134,568 2,187,932 2,242,630 2,298,696 2,356,163 2,415,067 2,475,444 2,537,330 2,600,763 2,665,782 2,732,427 2,800,738 (59,545) (61,033) (62,559) (64,123) (65,726) (67,369) (69,053) (70,780) (72,549) (74,363) (76,222) (78,128) (80,081) (82,083) (84,135) (86,238) (88,394) (90,604) (92,869) (18,576) (19,040) (19,516) (20,004) (20,504) (21,017) (21,542) (22,081) (22,633) (23,199) (23,779) (24,373) (24,983) (25,607) (26,247) (26,904) (27,576) (28,266) (28,972) (41,373) (42,408) (43,468) (44,554) (45,668) (46,810) (47,980) (49,180) (50,409) (51,670) (52,961) (54,285) (55,642) (57,033) (58,459) (59,921) (61,419) (62,954) (64,528) - - - - - - - - - - - - - - - - - - -
(119,494) (122,481) (125,543) (128,682) (131,899) (135,196) (138,576) (142,041) (145,592) (149,231) (152,962) (156,786) (160,706) (164,724) (168,842) (173,063) (177,389) (181,824) (186,370) 1,676,244 1,718,150 1,761,104 1,805,131 1,850,259 1,896,516 1,943,929 1,992,527 2,042,340 2,093,399 2,145,734 2,199,377 2,254,361 2,310,720 2,368,488 2,427,701 2,488,393 2,550,603 2,614,368 (1,142,689) (1,182,683) (1,224,077) (1,266,920) (1,311,262) (1,357,156) (1,404,657) (1,453,820) (1,504,703) (1,557,368) (1,611,876) (1,668,291) (1,726,682) (1,787,116) (1,849,665) (1,914,403) (1,981,407) (2,050,756) (2,122,533) 533,555 535,467 537,026 538,211 538,997 539,360 539,272 538,707 537,637 536,031 533,858 531,086 527,680 523,605 518,824 513,298 506,986 499,847 491,835 (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) 499,555 501,467 503,026 504,211 504,997 505,360 505,272 504,707 503,637 502,031 499,858 497,086 493,680 489,605 484,824 479,298 472,986 465,847 457,835

1.25 1.26 1.26 1.27 1.27 1.27 1.27 1.27 1.27 1.26 1.26 1.25 1.24 1.23 1.22 1.20 1.19 1.17 1.15 (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (385,518) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (12,600) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) (398,118) 101,437 103,349 104,909 106,094 106,880 107,242 107,154 106,590 105,519 103,913 101,740 98,968 95,562 91,487 86,706 81,180 74,868 67,729 59,718

Page 8 of 8 ends

Scenario 2: 4% Phase I Pro Forma

SOURCES AND USES
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California

CONSTRUCTION SOURCES OF FUNDS
TE Bond -Backed Construction Loan
Taxable Construction Loan
Tax Credit Equity
AHP
MHP
IIG
Land/Building Donation
Expenses Paid at Conversion to Perm
GP Contributions
Deferred Dev. Fee
GP Equity

TOTAL CONSTRUCTION SOURCES

PERMANENT SOURCES OF FUNDS
TE Bond -Backed Amortizing Loan
Section 8 Backed Mortgage
Tax Credit Equity
AHP
MHP
Orange County
IIG
DDS Capital
Land/Building Donation
GP Contributions
Deferred Dev. Fee
GP Equity

TOTAL PERMANENT SOURCES

USES OF FUNDS
Acquisition
Hard Costs
Architectural
Engineering
Constr. Int and Fees
Permanent Financing
Legal
Reserves
Contingencies
Other Costs
Developer Costs
Syndication

TOTAL USES
Amount Per Unit
23,777,044 349,662
7,264,366 106,829
2,266,208 33,327
1,250,000 18,382
3,981,440 58,551
3,049,990 44,853
1,283,580 18,876
2,741,000 40,309
45,613,628 630,480
Amount Per Unit
4,411,435 64,874
15,108,056 222,177
1,250,000 18,382
12,071,708 177,525
3,000,000 44,118
3,981,440 58,551
3,049,990 44853
2,741,000 40,309
$ 45,613,628 $ 670,789
3,049,990 44,853
27,602,445 405,918
1,228,309 18,063
200,000 2,941
2,892,953 42,543
89,114 1,311
165,000 2,426
921,709 13,555
2,043,155 30,046
2,054,952 30,220
5,241,000 77,074
125,000 1,838
45,613,628 670,789
SURPLUS/GAP $

Page 1 of 7 ends

UNIT MIX
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California
(0)
IMAX RENT (Gross per month; assume 1.5 persons/bdrm)
LIHTC Income Level
His House (non-LIHTC)
UNITS AT 81% AMI
15%
AMI
30%
AMI
40%
AMI
50%
AMI
60%
AMI
80%
AMI
90%
AMI
110%
AMI
120%
AMI
130%
AMI
Studio/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
353 706 941 1,177
378 756 1,008 1,261
453 907 1,210 1,513
524 1,048 1,398 1,748
585 1,170 1,560 1,951
1,412
1,513
1,815
2,097
2,341
1,883
2,017
2,420
2,796
3,121
2,118
2,269
2,723
3,146
3,511
2,589
2,774
3,328
3,845
4,292
2,824
3,026
3,631
4,195
4,682
3,060
3,278
3,933
4,544
5,072
His House (non-LIHTC)
UNITS AT 81% AMI

APARTMENT MIX
# of Apts
Sq. Ft.

Per Apt
15% 30% 40% 50%

AMI AMI AMI AMI
60% 80%
AMI
90%

AMI AMI
110%
AMI
120%
AMI
130%
AMI
Unit Type Distribution
SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
0 27
23 17
0 1
500 0 0 0 0 0 0
593 0 17 2 3 5 0
893 1 2 3 7 10 0
1121 0 2 7 8 0
0 0 0 0 0 0
893
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0

0.0%

39.7%

33.8%

25.0%

0.0%

1.5%
TOTAL 68
1 19 7 17
23 0
1 0
0 0
100.0%
% of units

1.5% 28.4% 10.4% 25.4% 34.3% 0.0%
Target Apportionment (hide) 25.0%
target units (hide)
30% 45%

17.0 0 20 30 0 0
His House Unit

1.5% 0.0%
0 0%
0 0.0% 0.0%
0%
0 0%
0 RENT SCHEDULE
Income Restriction Unit Type # of Apts
Sq. Ft. Sq. Ft. Gross Util Effective Total
Per Apt Total Rent Allow Rent Ann'l Rent
30% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
40% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
50% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
60% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
His House Unit @ 15% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
TOTAL
17 2
2 3
2 3
7 7
5 10
8 1
1 68
500 - 706 46 660 -
593 10,081 756 62 694 141,576
893 1,786 907 78 829 19,896
1,121 - 1,048 98 950 -
1,170 123 1,047 -
500 - 941 46 895 -
593 1,186 1,008 62 946 22,704
893 2,679 1,210 78 1,132 40,752
1,121 2,242 1,398 98 1,300 31,200
- - 1,560 123 1,437 -
500 - 1,177 46 1,131 -
593 1,779 1,261 62 1,199 43,164
893 6,251 1,513 78 1,435 120,540
1,121 7,847 1,748 98 1,650 138,600
- - 1,951 123 1,828 -
500 - 1,412 46 1,366 -
593 2,965 1,513 62 1,451 87,060
893 8,930 1,815 78 1,737 208,440
1,121 8,968 2,097 98 1,999 191,904
- - 2,341 123 2,218 -
500 - 353 46 307 -
593 - 378 62 316 -
893 893 453 78 375
1,121 - 524 98 426
- - 585 123 462
893 893
56,500 $92,662 $5,134 $87,528 $1,045,836

SPECIAL NEEDS UNITS / RENT SUBSIDY
Percent of Units
# of Apts FMR /Contract Rent Utility Allowance
1,939
17 2,113
2 2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
19 135580
19 46
57 106
136
123
46 62
78 98
123
46 62
78 98
123
46 62
78 98
123
46 62
78 98
123
Effective Contract Rent
1,893
2,056
2,433
3,312
3,396
1,893
2,051
2,461
3,350
3,396
1,893
2,051
2,461
3,350
3,396
1,893
2,051
2,461
3,350
3,396
1,893
2,051
2,461
3,350
3,396
Subsidy PUPM Total Annual Subsidy
1,362 277,848
1,604 38,496
316,344
Common/Utility Areas
TOTAL RES. AREA
20,559
77,059
$1,014,612
Other Income
Laundry/Vending Income
Other Income (Enter Here)
Total Other Income
68 Units $5.00 Month
4,080
4,080

POTENTIAL GROSS INCOME
1,366,260
Total
$1,362,180

Page 2 of 7 ends

DEVELOPMENT COSTS
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California

ACQUISITION
Total Land Cost or Value
Carrying Cost
Total Building Cost or Value

TOTAL ACQUISITION

CONSTRUCTION / REHABILITATION
Off -Site Improvements
Structures, Residential

TOTAL NEW CONSTRUCTION

ARCHITECTURAL FEES
TOTAL SURVEY and ENGINEERING

PERMANENT FINANCING
Loan Origination Fee
Title and Recording
Other

TOTAL PERMANENT FINANCING

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees

TOTAL OTHER FINANCING

LEGAL FEES
Constr. Related (includes lender legal)
Perm. Related (includes lender legal)

TOTAL LEGAL FEES
unit cost Total Project Cost
$82
$358

4.5%

0.75%

1.25%

0.50%

1.00%
3,049,990
3,049,990
50,000
27,552,445
27,602,445
1,228,309
150,000
50,000
2,353,974
80,236
178,328
57,187
30,000
45,000
148,229
2,892,953
44,114
20,000
25,000
89,114
1% 43,952
43,952
100,000
65,000
165,000

Page 3 of 7 ends

DEVELOPMENT COSTS

RESERVES
Capitalized Operating
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement

TOTAL RESERVES

CONTINGENCIES
Construction Contingency
Soft Cost Contingency

TOTAL CONTINGENCIES
PERMITS & GOV. FEES
school impact fee
other impact fees
building permit, plan check, other fees
Capital Fees (utility fees & hook-up charges)

TOTAL PERMITS & FEES

THIRD PARTY REPORTS
Environmental Reports
Appraisal
Market Study
Title/Escrow/Closing

TOTAL THIRD PARTY REPORTS

OTHER OWNER COSTS
Financial Consultant
Cost Cert/Accounting
Construction Mang./Oversight/Testing

TOTAL OTHER OWNER COSTS

MANAGEMENT COSTS
Marketing/Leasing
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up)

TOTAL MANAGEMENT COSTS

SUBTOTAL

DEVELOPER COSTS
Developer Fee

TOTAL DEVELOPER COSTS

TOTAL SYNDICATION COSTS
6 months
5%
10%
605,365
316,344
921,709
1,380,122
663,033
2,043,155
$15,000 1,020,000
$5,000 340,000
$2,000 136,000
1,496,000
$2,500
15,000
15,000
10,000
40,000
30,000
30,000
145,000
205,000
170,000
100,000
270,000
40,247,629
5,241,000
5,241,000
125,000
TOTAL PROJECT COST 45,613,628

Page 4 of 7 ends

OPERATING BUDGET
PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California
Units 68

PAYROLL/PAYROLL TAXES
Admin Payroll
Operations and Maintenance Payroll
Other Personnel Expenses
Taxes and Benefits

TOTAL PAYROLL EXPENSES

ADMINISTRATIVE EXPENSE
Administrative Expenses
Advertising
Marketing
Audit Fees
Bookkeeping and Accounting Fee

TOTAL ADMINISTRATIVE EXPENSE

UTILITIES EXPENSES
Electricity
Water
Gas
Sewer
Other

TOTAL UTILITIES EXPENSES

OPERATING AND MAINTENANCE
Operating Contracts
Operating Supplies
Garbage/Trash Removal
HVAC Repairs &Contracts
Maintenance Contracts
Maintenance Supplies
Maintenance Equip. & Tools
Other

TOTAL OPERATING EXPENSES

REAL ESTATE TAXES

INSURANCE

RESIDENT SERVICES

MANAGEMENT FEE

Page 5 of 7 ends

FINANCING
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California
First Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.75%
30 30

1.15 343,350
$4,411,435
$4,411,435
Section 8 Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.75%
15 15

1.15 $0
$0

CONSTRUCTION PERIOD INTEREST CALCULATION
Construction
Lease-up/Conversion
Taxable Tail
Lease-up/Conversion
Total
Total Development Cost
45,613,628
45,613,628
Conventional construction loan amt
23,777,044
23,777,044
7,264,366
7,264,366
LTC

52.1%

15.9%
Months outstanding
18 4
18 4
Average % outstanding
50%
100%
50%
100%
Rate

7.0%

7.0%
Total Interest Estimate
1,248,295
554,798
50% Bond Test
Tax Exempt Financing
Depreciable Basis + Acquisition
Ratio
23,777,044
$43,230,989
55%
CDLAC Allocation Test
Total Limit
Passes? Yes
38,894,000
381,379
169,502
2,353,974
Constr/Rehab Acquisition

TAX CREDIT EQUITY CALCULATION
Basis
Deduct grant amounts
Eligible Basis
40,180,999
40,180,999
Threshold Basis Limits
Studio
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
MGR
Total
Threshold Basis Limit Adjustments
Prevailing Wage
Structured Parking
Daycare
100% special needs
Elevator
Type I Construction
Type III Construction
Energy efficiency/resource conservation/indoor air quality Seismic Upgrades or Environmental Mitigation
Affordability Adjustment (4% projects only)
Add Impact Fees
Opportunity Map High or Highest Resource Area
Adjusted Theshold Basis Limits
396,888
457,608
552,000
706,560
787,152
552,000
# of units
o
27 23
17 0
1 68
20%
10%
2%
2%
10%
15%
10%
0%
0%
93%
0%
Basis
0 12,355,416
12,696,000
12,011,520
0 552,000
37,614,936
7,522,987
3,761,494
0 0
3,761,494
0 0
0 34,807,851
1,020,000
88,488,762
0 0
Allowable Basis (Lesser of Actual or Adjusted Basis Limits) 40,180,999 Voluntary Reduction
Effective Reduction
Total Requested Unadjusted Eligible Basis
High Cost Area Adjustment (DDA or QCT)
Total Adjusted Eligible Basis
Applicable Fraction
Total Qualified Basis
Credit Reduction
Final Basis Amount
LIHTC Credit Rate
LIHTC Credit
10 year value
Net raise $/ Tax Credit
Federal Credit Equity
0%
100%
0%

4.00%

0.94 40,180,999
0 40,180,999
40,180,999
40,180,999
0 40,180,999

4.00%
1,607,240
16,072,400

0.94 15,108,056
State Credit
State Credit $/credit
State Credit Equity
Total Net Equity to Project

0.00 0
15,108,056
rage b of I

CASH FLOW
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California

POTENTIAL GROSS INCOME
Resident Rent - Conventional
Resident Rent - Special Needs
Rent Subsidy
Other Income

POTENTIAL GROSS INCOME

VACANCY LOSS
Resident - Conventional
Resident - Special Needs
Rent Subsidy
Commercial
Total Vacancy Loss

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

NET OPERATING INCOME

RESERVES
Replacement Reserve
Operating Reserve
Total Reserve Deposits

INCOME BEFORE DEBT SERVICE

DEBT SERVICE
First Mortgage
HCD/Other Debt Service
Bond Monitoring Fee
Total Debt Service

NET CASH FLOW
Inflation Initial Year
Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11

2.5% 75,355 13,298 904,260 926,867 950,038 973,789 998,134 1,023,087 1,048,664 1,074,881 1,101,753 1,129,297 1,157,529

2.5% 11,798 2,082 141,576 145,115 148,743 152,462 156,273 160,180 164,185 168,289 172,497 176,809 181,229

2.5% 26,362 4,652 316,344 324,253 332,359 340,668 349,185 357,914 366,862 376,034 385,434 395,070 404,947

2.5% 340 60 4,080 4,182 4,287 4,394 4,504 4,616 4,732 4,850 4,971 5,095 5,223 113,855 20,092 1,366,260 1,400,417 1,435,427 1,471,313 1,508,095 1,545,798 1,584,443 1,624,054 1,664,655 1,706,272 1,748,928

5.0% (3,768) (665) (45,213) (46,343) (47,502) (48,689) (49,907) (51,154) (52,433) (53,744) (55,088) (56,465) (57,876)

10.0% (1,180) (208) (14,158) (14,512) (14,874) (15,246) (15,627) (16,018) (16,418) (16,829) (17,250) (17,681) (18,123)

10.0% (2,636) (465) (31,634) (32,425) (33,236) (34,067) (34,918) (35,791) (36,686) (37,603) (38,543) (39,507) (40,495)

25.0% - - - - - - - - - - - - -
(7,584) (1,338) (91,005) (93,280) (95,612) (98,002) (100,452) (102,964) (105,538) (108,176) (110,881) (113,653) (116,494) 106,271 18,754 1,275,255 1,307,136 1,339,815 1,373,310 1,407,643 1,442,834 1,478,905 1,515,877 1,553,774 1,592,619 1,632,434

3.5% (65,223) (11,510) (782,680) (810,074) (838,426) (867,771) (898,143) (929,578) (962,114) (995,788) (1,030,640) (1,066,713) (1,104,047) 41,048 7,244 492,575 497,063 501,388 505,539 509,500 513,256 516,791 520,090 523,134 525,906 528,387 (2,833) (500) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (2,833) (500) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) 38,215 6,744 458,575 463,063 467,388 471,539 475,500 479,256 482,791 486,090 489,134 491,906 494,387

1.16 1.18 1.19 1.20 1.21 1.22 1.23 1.23 1.24 1.25 1.25
(28,612) (5,049) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (4,225) (746) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (32,838) (5,795) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) 5,377 949 64,524 69,012 73,337 77,488 81,449 85,205 88,740 92,039 95,083 97,855 100,336

Page 1 of 2 ends

CASH FLOW
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1,186,467 1,216,129 1,246,532 1,277,696 1,309,638 1,342,379 1,375,939 1,410,337 1,445,595 1,481, 735 1,518,779 1,556,748 1,595,667 1,635,559 1,676,447 1,718,359 1,761,318 1,805,351 1,850,484 185,760 190,404 195,164 200,043 205,044 210,170 215,425 220,810 226,330 231,989 237,788 243,733 249,827 256,072 262,474 269,036 275,762 282,656 289,722 415,071 425,448 436,084 446,986 458,160 469,614 481,355 493,389 505,723 518,366 531,326 544,609 558,224 572,180 586,484 601,146 616,175 631,579 647,369 5,353 5,487 5,624 5,765 5,909 6,057 6,208 6,363 6,522 6,686 6,853 7,024 7,200 7,380 7,564 7,753 7,947 8,146 8,349 1,792,652 1,837,468 1,883,405 1,930,490 1,978,752 2,028,221 2,078,926 2,130,899 2,184,172 2,238,776 2,294,746 2,352,114 2,410,917 2,471,190 2,532,970 2,596,294 2,661,201 2,727,731 2,795,925 (59,323) (60,806) (62,327) (63,885) (65,482) (67,119) (68,797) (70,517) (72,280) (74,087) (75,939) (77,837) (79,783) (81,778) (83,822) (85,918) (88,066) (90,268) (92,524) (18,576) (19,040) (19,516) (20,004) (20,504) (21,017) (21,542) (22,081) (22,633) (23,199) (23,779) (24,373) (24,983) (25,607) (26,247) (26,904) (27,576) (28,266) (28,972) (41,507) (42,545) (43,608) (44,699) (45,816) (46,961) (48,135) (49,339) (50,572) (51,837) (53,133) (54,461) (55,822) (57,218) (58,648) (60,115) (61,617) (63,158) (64,737) - - - - - - - - - - - - - - - - - - -
(119,406) (122,392) (125,451) (128,588) (131,802) (135,097) (138,475) (141,937) (145,485) (149,122) (152,850) (156,672) (160,588) (164,603) (168,718) (172,936) (177,260) (181,691) (186,233) 1,673,245 1,715,076 1,757,953 1,801,902 1,846,949 1,893,123 1,940,451 1,988,963 2,038,687 2,089,654 2,141,895 2,195,443 2,250,329 2,306,587 2,364,251 2,423,358 2,483,942 2,546,040 2,609,691 (1,142,689) (1,182,683) (1,224,077) (1,266,920) (1,311,262) (1,357,156) (1,404,657) (1,453,820) (1,504,703) (1,557,368) (1,611,876) (1,668,291) (1,726,682) (1,787,116) (1,849,665) (1,914,403) (1,981,407) (2,050,756) (2,122,533) 530,556 532,393 533,876 534,982 535,687 535,967 535,795 535,143 533,983 532,286 530,019 527,151 523,647 519,471 514,587 508,955 502,535 495,284 487,159 (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) (34,000) 496,556 498,393 499,876 500,982 501,687 501,967 501,795 501,143 499,983 498,286 496,019 493,151 489,647 485,471 480,587 474,955 468,535 461,284 453,159

1.26 1.26 1.27 1.27 1.27 1.27 1.27 1.27 1.27 1.26 1.26 1.25 1.24 1.23 1.22 1.21 1.19 1.17 1.15 (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (343,350) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (50,701) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) (394,051) 102,505 104,342 105,825 106,931 107,636 107,916 107,744 107,092 105,932 104,235 101,968 99,100 95,596 91,420 86,536 80,904 74,484 67,233 59,108

Page 2 of 2 ends

Phase II Pro Forma

SOURCES AND USES
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

CONSTRUCTION SOURCES OF FUNDS
Bank Construction Loan
N/A
Tax Credit Equity
AHP
MHP
0 IIG
Land/Building Donation
Expenses Paid at Conversion to Perm
GP Contributions
Deferred Dev. Fee
GP Equity

TOTAL CONSTRUCTION SOURCES

TOTAL PERMANENT SOURCES

USES OF FUNDS
Acquisition
Hard Costs
Architectural
Engineering
Constr. Int and Fees
Permanent Financing
Legal
Reserves
Contingencies
Other Costs
Developer Costs
Syndication

TOTAL USES
Amount
18,576,356
2,068,495
780,000
2,371,354
1,596,648
769,025
26,161,878
Amount
5,073,909
13,789,967
780,000
2,550,000
2,371,354
1,596,648
$ 26,161,878 $
1,596,648
16,097,947
716,359
200,000
1,700,149
95,739
100,000
703,826
1,226,130
1,400,081
2,200,000
125,000
26,161,878
Per Unit % of TDC
464,409 71%
0%
51,712 8%
19,500 3%
0%
- 0%
59,284
39,916
19,226
9%
6%
3%
0%
0%
654,047 100%
Per Unit % of TDC
126,848 19%
- 0%
344,749 53%
19,500 3%
- 0%
63,750 10%
- 0%
59,284 9%
- 0%
39916 6%
0%
0%
654,047 100%
39,916 6.1%
402,449 61.5%
17,909 2.7%
5,000 0.8%
42,504 6.5%
2,393 0.4%
2,500 0.4%
17,596 2.7%
30,653 4.7%
35,002 5.4%
55,000 8.4%
3,125 0.5%
654,047 100.0%
SURPLUS/GAP $

Page 1 of 8 ends

0 $ o

UNIT MIX
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
IMAX RENT (Gross per month; assume 1.5 persons/bdrm)
LIHTC Income Level
N/A
UNITS AT 81% AMI
30%
AMI
N/A
AMI
40% 50% 60%

AMI AMI AMI

N/A N/A N/A

AMI AMI AMI
80%
AMI
N/A
AMI
15%
AMI
N/A
AMI
110%
AMI
N/A
AMI
120%
AMI
N/A
AMI
130%
AMI
N/A
AMI
Studio/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
706 941 1,177 1,412 1,883
756 1,008 1,261 1,513 2,017
907 1,210 1,513 1,815 2,420
1,048 1,398 1,748 2,097 2,796
1,170 1,560 1,951 2,341 3,121
353
378
453
524
585
2,589
2,774
3,328
3,845
4,292
2,824
3,026
3,631
4,195
4,682
3,060
3,278
3,933
4,544
5,072
UNITS AT 81% AMI

APARTMENT MIX
# of Apts
Sq. Ft.

Per Apt
30% 40% 50% 60% 80% 15%
110%

AMI AMI AMI AMI AMI AMI AMI
120%
AMI
130%
AMI
Unit Type Distribution
SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
0 12
15 12
0 1
500 0 0 0 0 0
593 9 0 3 0
893 8 2 5 0
1018 2 10 0
0 0 0 0 0
893
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0.0%

30.0%

37.5%

30.0%

0.0%

2.5%
TOTAL 40
17 0 4 18 0
0 0
0 0
100.0%
% of units

43.6% 0.0% 10.3% 46.2% 0.0% 0.0% 0.0%

0.0% 0.0%
Avg LIHTC Affordability=46% N/A
Passes Affordability Test
100%

RENT SCHEDULE
Income Restriction Unit Type # of Apts
Sq. Ft. Sq. Ft. Gross Util Effective Total
Per Apt Total Rent Allow Rent Ann'l Rent
30% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
40% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
50% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
60% of AMI SRO/Efficiency
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
Manager Unit
TOTAL
9 8
2 2
3 5
10 1
40 500 - 706 46 660 -
593 5,337 756 62 694 74,952
893 7,144 907 78 829 79,584
1,018 - 1,048 98 950 -
1,170 123 1,047 -
500 - 941 46 895 -
593 - 1,008 62 946 -
893 - 1,210 78 1,132 -
1,018 - 1,398 98 1,300 -
- - 1,560 123 1,437 -
500 - 1,177 46 1,131 -
593 - 1,261 62 1,199 -
893 1,786 1,513 78 1,435 34,440
1,018 2,036 1,748 98 1,650 39,600
- - 1,951 123 1,828 -
500 - 1,412 46 1,366 -
593 1,779 1,513 62 1,451 52,236
893 4,465 1,815 78 1,737 104,220
1,018 10,180 2,097 98 1,999 239,880
- - 2,341 123 2,218 -
893 893
33,620 $55,166 $3,090 $52,076 $624,912

SPECIAL NEEDS UNITS / RENT SUBSIDY
Percent of Units
# of Apts FMR /Contract Rent Utility Allowance
1,939
9 2,113
8 2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
1,939
2,113
2,539
3,448
3,519
17 135580
17 46
62 106
136
123
46 62
78 98
123
46 62
78 98
123
46 62
78 98
123
Effective Contract Rent
1,893
2,051
2,433
3,312
3,396
1,893
2,051
2,461
3,350
3,396
1,893
2,051
2,461
3,350
3,396
1,893
2,051
2,461
3,350
3,396
Subsidy PUPM Total Annual Subsidy
1,357 146,556
1,604 153,984
300,540
Common/Utility Areas
TOTAL RES. AREA
25% 11,207
44,827
$1,014,612
Other Income
Laundry/Vending Income
Other Income (Enter Here)
Total Other Income
40 Units
$5.00 Month 2,400
2,400

POTENTIAL GROSS INCOME
927,852
Total
$925,452

Page 2 of 8 ends

DEVELOPMENT COSTS
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

ACQUISITION
Total Land Cost or Value
Carrying Cost
Total Building Cost or Value

TOTAL ACQUISITION

CONSTRUCTION / REHABILITATION
Off -Site Improvements
Structures, Residential

TOTAL NEW CONSTRUCTION

ARCHITECTURAL FEES
TOTAL SURVEY and ENGINEERING

PERMANENT FINANCING
Loan Origination Fee
Title and Recording
Other

TOTAL PERMANENT FINANCING

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees

TOTAL OTHER FINANCING

LEGAL FEES
Constr. Related (includes lender legal)
Perm. Related (includes lender legal)

TOTAL LEGAL FEES
unit cost Total Project Cost
$82
$358
4%

0.75%

1.25%

0.50%

1.00%
1,596,648
1,596,648
50,000
16,047,947
16,097,947
716,359
150,000
50,000
1,368,458
139,323
29,937
30,000
45,000
87,431
1,700,149
50,739
20,000
25,000
95,739
4% 75,081
75,081
50,000
50,000
100,000

Page 3 of 8 ends

DEVELOPMENT COSTS

RESERVES
Capitalized Operating
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement

TOTAL RESERVES

CONTINGENCIES
Construction Contingency
Soft Cost Contingency

TOTAL CONTINGENCIES
PERMITS & GOV. FEES
school impact fee
other impact fees
building permit, plan check, other fees
Capital Fees (utility fees & hook-up charges)

TOTAL PERMITS & FEES

THIRD PARTY REPORTS
Environmental Reports
Appraisal
Market Study
Title/Escrow/Closing

TOTAL THIRD PARTY REPORTS

OTHER OWNER COSTS
Financial Consultant
Cost Cert/Accounting
Construction Mang./Oversight/Testing

TOTAL OTHER OWNER COSTS

MANAGEMENT COSTS
Marketing/Leasing
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up)

TOTAL MANAGEMENT COSTS

SUBTOTAL

DEVELOPER COSTS
Developer Fee

TOTAL DEVELOPER COSTS

TOTAL SYNDICATION COSTS

TOTAL PROJECT COST

GRAND TOTAL DEVELOPMENT COSTS
6 months
5%
10%
$15,000
$5,000
$2,000
$2,500
403,286
300,540
703,826
804,897
421,233
1,226,130
600,000
200,000
80,000
880,000
15,000
15,000
10,000
40,000
30,000
30,000
145,000
205,000
100,000
100,000
200,000
23,836,878
2,200,000
2,200,000
125,000
26,161,878
$26,161,878

Page 4 of 8 ends

OPERATING BUDGET
PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
Units 40

PAYROLL/PAYROLL TAXES
Admin Payroll
Operations and Maintenance Payroll
Other Personnel Expenses
Taxes and Benefits

TOTAL PAYROLL EXPENSES

ADMINISTRATIVE EXPENSE
Administrative Expenses
Advertising
Marketing
Audit Fees
Bookkeeping and Accounting Fee

TOTAL ADMINISTRATIVE EXPENSE

UTILITIES EXPENSES
Electricity
Water
Gas
Sewer
Other

TOTAL UTILITIES EXPENSES

OPERATING AND MAINTENANCE
Operating Contracts
Operating Supplies
Garbage/Trash Removal
HVAC Repairs &Contracts
Maintenance Contracts
Maintenance Supplies
Maintenance Equip. & Tools
Other

TOTAL OPERATING EXPENSES

REAL ESTATE TAXES

INSURANCE

RESIDENT SERVICES

MANAGEMENT FEE

TOTAL OPERATING BUDGET
Yearly Expense
PUPA
49,000 1,225
47,350 1,184
3,100 78
24,088 602
123,538 3,088
21,180 530
400 10
8,760 219
4,560 114
34,900 873
10,696 267
9,480 237
7,520 188
3,520 88
31,216 780
36,220
7,000
906
175
43,220 1,081
5,000 125
80,000 2,000
65,000 1,625
28,800 720
411,674 10,292

Page 5 of 8 ends

FINANCING
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
First Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.25%
30 30

1.15 374,891
$5,073,909
$5,073,909
Section 8 Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount

6.25%
15 15

1.15 $0
$0

CONSTRUCTION PERIOD INTEREST CALCULATION
Construction
Lease-up/Conversion
Taxable Tail
Lease-up/Conversion
Total
Total Development Cost
26,161,878
26,161,878
Conventional construction loan amt
18,576,356
18,576,356
-
-
LTC

71.0%

0.0%
Months outstanding
18 4
18 4
Average % outstanding
50%
100%
50%
100%
Rate

6.8%

6.8%
Total Interest Estimate
947,394
421,064
50% Bond Test
Tax Exempt Financing
Depreciable Basis + Acquisition
Ratio
$24,396,845
0%
CDLAC Allocation Test
Total Limit
Passes? Yes
22,897,500
0 0 1,368,458
Constr/Rehab Acquisition

TAX CREDIT EQUITY CALCULATION
Basis
Deduct grant amounts
Eligible Basis
22,800,197
22,800,197
Threshold Basis Limits
Studio
1 Bdrm
2 Bdrm
3 Bdrm
4 Bdrm
MGR
Total
Threshold Basis Limit Adjustments
Prevailing Wage
Structured Parking
Daycare
100% special needs
Elevator
Type I Construction
Type III Construction
Energy efficiency/resource conservation/indoor air quality Seismic Upgrades or Environmental Mitigation
Affordability Adjustment (4% projects only)
Add Impact Fees
Opportunity Map High or Highest Resource Area
Adjusted Theshold Basis Limits
396,888
457,608
552,000
706,560
787,152
552,000
# of units
Basis
o
12 15
12 0
1 40
20%
10%
2%
2%
10%
15%
10%
0%
0%
97%
0 5,491,296
8,280,000
8,478,720
0 552,000
22,802,016
4,560,403
2,280,202
0 0
2,280,202
0 0
0 600,000
0% -
32,522,822
0 0
Allowable Basis (Lesser of Actual or Adjusted Basis Limits) 22,800,197 0 Voluntary Reduction
Effective Reduction
Total Requested Unadjusted Eligible Basis
High Cost Area Adjustment (DDA or QCT)
Total Adjusted Eligible Basis
Applicable Fraction
Total Qualified Basis
Credit Reduction
Final Basis Amount
LIHTC Credit Rate
LIHTC Credit
10 year value
Net raise $/ Tax Credit
Federal Credit Equity
29%
100%
0%

9.00%

0.94 6,500,000
6,500,000
16,300,197
0 16,300,197
16,300,197
16,300,197
0 16,300,197

9.00%
1,467,018
14,670,178

0.94 13,789,967
6,500,000

9.00%
0 o

0.94 0
State Credit
State Credit $/credit
State Credit Equity
Total Net Equity to Project
0 0.00
0 13,789,967
I'age b of 6

CASH FLOW
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

POTENTIAL GROSS INCOME
Resident Rent - Conventional
Resident Rent - Special Needs
Rent Subsidy
Other Income

POTENTIAL GROSS INCOME

VACANCY LOSS
Resident - Conventional
Resident - Special Needs
Rent Subsidy
Commercial
Total Vacancy Loss

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

GROUND LEASE PAYMENTS

NET OPERATING INCOME

RESERVES
Replacement Reserve
Operating Reserve
Total Reserve Deposits

INCOME BEFORE DEBT SERVICE

DEBT SERVICE
First Mortgage
HCD/Other Debt Service
Bond Monitoring Fee
Total Debt Service

NET CASH FLOW
Inflation Initial Year
Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11

2.5% 45,830 13,749 549,960 563,709 577,802 592,247 607,053 622,229 637,785 653,730 670,073 686,825 703,995

2.5% 6,246 1,874 74,952 76,826 78,746 80,715 82,733 84,801 86,921 89,094 91,322 93,605 95,945

2.5% 25,045 7,514 300,540 308,054 315,755 323,649 331,740 340,033 348,534 357,248 366,179 375,333 384,717

2.5% 200 60 2,400 2,460 2,522 2,585 2,649 2,715 2,783 2,853 2,924 2,997 3,072 77,321 23,196 927,852 951,048 974,825 999,195 1,024,175 1,049,779 1,076,024 1,102,924 1,130,498 1,158,760 1,187,729

5.0% (2,292) (687) (27,498) (28,185) (28,890) (29,612) (30,353) (31,111) (31,889) (32,686) (33,504) (34,341) (35,200)

10.0% (625) (187) (7,495) (7,683) (7,875) (8,072) (8,273) (8,480) (8,692) (8,909) (9,132) (9,360) (9,594)

10.0% (2,505) (751) (30,054) (30,805) (31,575) (32,365) (33,174) (34,003) (34,853) (35,725) (36,618) (37,533) (38,472)

25.0% - - - - - - - - - - - - -
(5,421) (1,626) (65,047) (66,673) (68,340) (70,049) (71,800) (73,595) (75,435) (77,321) (79,254) (81,235) (83,266) 71,900 21,570 862,805 884,375 906,484 929,146 952,375 976,184 1,000,589 1,025,604 1,051,244 1,077,525 1,104,463

3.5% (34,307) (10,292) (411,680) (426,089) (441,002) (456,437) (472,412) (488,947) (506,060) (523,772) (542,104) (561,078) (580,715) 37,594 11,278 451,125 458,286 465,482 472,709 479,963 487,238 494,529 501,832 509,140 516,447 523,748 (1,667) (500) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (1,667) (500) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) 35,927 10,778 431,125 438,286 445,482 452,709 459,963 467,238 474,529 481,832 489,140 496,447 503,748

1.15 1.17 1.19 1.21 1.23 1.25 1.27 1.29 1.30 1.32 1.34
(31,241) (9,372) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (31,241) (9,372) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) 4,686 1,406 56,234 63,395 70,591 77,818 85,072 92,347 99,638 106,941 114,249 121,556 128,857

Page 7 of 8 ends

CASH FLOW
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 721,595 739,635 758,126 777,079 796,506 816,419 836,829 857,750 879,194 901,173 923,703 946,795 970,465 994,727 1,019,595 1,045,085 1,071,212 1,097,992 1,125,442 98,344 100,802 103,322 105,905 108,553 111,267 114,048 116,900 119,822 122,818 125,888 129,035 132,261 135,568 138,957 142,431 145,992 149,641 153,382 394,335 404,193 414,298 424,655 435,272 446,153 457,307 468,740 480,458 492,470 504,782 517,401 530,336 543,594 557,184 571,114 585,392 600,027 615,027 3,149 3,228 3,308 3,391 3,476 3,563 3,652 3,743 3,837 3,933 4,031 4,132 4,235 4,341 4,449 4,561 4,675 4,792 4,911 1,217,422 1,247,858 1,279,054 1,311,031 1,343,806 1,377,402 1,411,837 1,447,132 1,483,311 1,520,394 1,558,403 1,597,363 1,637,298 1,678,230 1,720,186 1,763,190 1,807,270 1,852,452 1,898,763 (36,080) (36,982) (37,906) (38,854) (39,825) (40,821) (41,841) (42,887) (43,960) (45,059) (46,185) (47,340) (48,523) (49,736) (50,980) (52,254) (53,561) (54,900) (56,272) (9,834) (10,080) (10,332) (10,591) (10,855) (11,127) (11,405) (11,690) (11,982) (12,282) (12,589) (12,904) (13,226) (13,557) (13,896) (14,243) (14,599) (14,964) (15,338) (39,433) (40,419) (41,430) (42,466) (43,527) (44,615) (45,731) (46,874) (48,046) (49,247) (50,478) (51,740) (53,034) (54,359) (55,718) (57,111) (58,539) (60,003) (61,503) - - - - - - - - - - - - - - - - - - (85,348) (87,481) (89,668) (91,910) (94,208) (96,563) (98,977) (101,451) (103,988) (106,587) (109,252) (111,983) (114,783) (117,653) (120,594) (123,609) (126,699) (129,866) (133,113) 1,132,075 1,160,377 1,189,386 1,219,121 1,249,599 1,280,839 1,312,860 1,345,681 1,379,323 1,413,806 1,449,151 1,485,380 1,522,515 1,560,577 1,599,592 1,639,582 1,680,571 1,722,585 1,765,650 (601,040) (622,077) (643,849) (666,384) (689,708) (713,847) (738,832) (764,691) (791,455) (819,156) (847,827) (877,501) (908,213) (940,001) (972,901) (1,006,952) (1,042,196) (1,078,672) (1,116,426) 531,034 538,300 545,537 552,736 559,891 566,991 574,028 580,990 587,868 594,650 601,325 607,879 614,301 620,577 626,691 632,629 638,376 643,913 649,224 (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) 511,034 518,300 525,537 532,736 539,891 546,991 554,028 560,990 567,868 574,650 581,325 587,879 594,301 600,577 606,691 612,629 618,376 623,913 629,224

1.36 1.38 1.40 1.42 1.44 1.46 1.48 1.50 1.51 1.53 1.55 1.57 1.59 1.60 1.62 1.63 1.65 1.66 1.68 (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) - - - - - - - - - - - - - - - - - - -
(374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) (374,891) 136,143 143,409 150,645 157,845 165,000 172,100 179,136 186,099 192,977 199,759 206,433 212,988 219,410 225,686 231,800 237,738 243,485 249,022 254,333

Page 8 of 8 ends

Section G: Financial Capability

City of Placentia -Affordable Housing Development Opportunity Section G: Financial Capability Baker Street
Section G: Financial Capability
As one of the largest nonprofit developers of affordable housing in California, with an exceptionally strong national organizational and financial standing, MHC is consistently successful in financing and delivering affordable housing in complex, dynamic environments. MHC brings the expertise needed to quickly adapt projects in response to regulatory and market changes, to drive financial innovation, and to take advantage of newly emerging resources. We are engaged with innovative financing models and regulatory changes at every level, including as a member of the CDLAC Regulations Working Group and the California Housing Consortium.

With over 125 tax credit awards, MHC is a highly successful developer using well -tested affordable housing finance programs and because of its record and relationships is able to leverage the most advantageous terms from lenders and investors. As the 4% tax credits have become competitive, MHC has been at the forefront of adapting to changes and maintaining competitiveness of our projects, which includes the first California Housing Accelerator project to begin construction, with an additional two more CHA projects closing this year.

In 2021 and 2022, with tiebreaker regulations changing rapidly, MHC was awarded ten CDLAC bond awards.

MHC uses conventional debt for most of its developments and has strong relationships in the lending community. Construction and permanent lenders on MHC developments have included: Bank of America; JPMorgan Chase, Wells Fargo; Union Bank; US Bank; Citibank, California Bank and Trust, and Bank of the West.

MHC is consistently successful in leveraging other funding sources, through state and local funding programs.

MHC has received over 50 awards from state programs such as: No Place Like Home, Multifamily Housing Program, Infill Incentive Grants, Transit Oriented Development Program, and Affordable Housing and Sustainable Communities. Since 2019, MHC has been awarded $46.6 million in Multifamily Housing Programs and over $19 million in Infill Infrastructure Grant funds. MHC has received six awards, totaling nearly $120 million, from the competitive and complex AHSC program.

MHC has access to the following facilities to cover pre development costs:
• $15 million operating line of credit with California Bank & Trust. • $12 million pre -development line of credit with US Bank. • $3 million operating line of credit with US Bank.

In 2022, Mercy Housing California announced the launch of the California Land Acquisition Fund, created to bring the speed and impact of private equity funds to the non-profit affordable housing space. The $47 million Fund was launched with significant participation from JPMorgan Chase, Morgan Stanley, The California Endowment, Wells Fargo, CommonSpirit Health, California Community Foundation, and the Weingart Foundation. The Fund allows Mercy Housing California to aggressively pursue land acquisition with limited risk to the organization. The Fund holds the land until construction closing, allowing MHC to pursue land with aggressive offers and escrow timing. We are able to close as quickly as one hundred and five (105) days, assuming favorable due diligence and a satisfactory appraisal. The Land Fund will hold the site for up to five years and sells the project at cost, including reasonable carrying costs, to the Mercy Housing development entity. It also allows us the flexibility to pursue land assemblages. The Land Fund is currently in escrow on a property in downtown Long Beach and in Claremont and is evaluating additional sites in southern California.

Please see the detail project profiles for contact information for all debt, equity, and public financing sources for our relevant projects. Financial statements for Mercy Housing California are included under separate cover in the appendix. Mercy Housing California has never defaulted on financial obligations, nor had any developments that were foreclosed upon, nor filed bankruptcy. A listing of responsive litigation for MHC and MHMG is included at the end of this section.
*mercy HousING
Live in Hope

Page 18 of 30 ends

Responsive Litigation
Adams, Iris
Mercy Housing California
5/23/2022 Premises Liability
Superior Court
San Francisco
CGC-22-599734
5/20/2022 No
Open
Zhou, Fongkok
Mercy Housing California
6/9/2020 Housing
Superior Court
San Francisco
CGC-20-584533
5/21/2020 No
Open
Sowary, Seku
Mercy Housing Management Group Inc.
9/12/2018 Employment
Superior Court
San Francisco
CgC-18-568984
8/17/2018 No
Open
Melton, Denise
Mercy Housing Management Group Inc.
7/29/2020 Housing
City of Chicago
20-H-46
7/22/2020 No
Open
Freeman, Sherri
Mercy Housing Management Group Inc.
4/28/2016 Employment
Superior Court of California
Sacramento
34-2015-00184209
9/14/2015 No
Open
Helms, Ellen
Mercy Housing Management Group Inc.
8/27/2018 Housing
San Francisco Human Rights Commission
FY19-H-003
8/27/2018 No
Open
Bridgeman, Evian
Mercy Housing Management Group Inc.
8/13/2021 Housing
Chicago Commission on Human Relations
21-H-62
8/13/2021 No
Open
Smith, Tanya
Mercy Housing Management Group Inc.
7/29/2021 Housing
San Francisco Human Rights Commission
FY22-H-001
7/29/2021 No
Open
Thompson, La Jeans
Mercy Housing Management Group Inc.
6/27/2022 Housing
DFEH
202204-16611405
6/9/2022 No
Open
Brown,Jalilah
Mercy Housing Management Group Inc.
11/25/2019 Employment
DFEH
201908-07344427
11/5/2019 No
Open
McDonald, Lonnie
Mercy Housing Management Group Inc.
8/23/2022 Housing
San Francisco Human Rights Commission
FY23-H-001
8/23/2022 No
Open
Green, Rodney, Sr.

Mercy Housing Management Group Inc.
8/15/2019 Housing
U.S. District Court, N. District of CA
18-4888
8/11/2018 Yes
Open
Kaapa, Michael John and Michael Charles
Mercy Housing Management Group Inc.
7/21/2017 Negligence
State Court
Chatham
S40/1701205
7/18/2017 Yes
Open
Thomas, Erinn
Mercy Housing Management Group Inc.
6/21/2022 Premises Liability
District Court
Douglas
1220001051
2/11/2022 Yes
Open
Brown -Blackwell, Daisha
Mercy Housing Management Group Inc.
3/7/2022 Premises Liability
Georgia State Court
Dekalb
ga-30032-5955
1/3/2022 Yes
Open
Estate of Joseph Finley, et al
Mercy Housing Management Group Inc.
4/19/2021 Negligence
Circuit Court
Cook
21 L 003295
Yes
Open
Hall, Veda
Mercy Housing Management Group Inc.
4/7/2021 Employment
EEOC
480-2020-04460
3/30/2021 No
Closed
2/1/2023
Williams, Helene
Mercy Housing Management Group Inc.
11/28/2017 Housing
Illinois Department of Human Rights
2018CH0911
11/14/2017
Closed
4/6/2018
Him, Than
Mercy Housing Management Group Inc.
12/27/2017 Housing
City of Tacoma, Office of Equity& Human Rights
4842
12/18/2017
Closed
5/11/2018
Gamble, Suzanne
Mercy Housing Management Group Inc.
8/25/2017 Housing
DFEH
874256-283889
8/14/2017
Closed
5/24/2018
Trombello, Linda
Mercy Housing Management Group Inc.
9/11/2017 Housing
Illinois Department of Human Rights
2018CH0291
8/28/2017
Closed
5/29/2018
Provencio, Peter
Mercy Housing Management Group Inc.
10/26/2017 Housing
DFEH
892349-291388
10/3/2017
Closed
5/30/2018
Champion, Robin
Mercy Housing Management Group Inc.
1/23/2018 Housing
Colorado Civil Rights Division
FH2018391360
1/23/2018
Closed
5/31/2018
Glasby, Calvin, et al
Mercy Housing Management Group Inc.

Merry Housing California
5/1/2017 Housing
US District Court Northern District of California
Alameda County
4:17-cv-2153 DMR
4/19/2017
Closed
7/3/2018
Geran, to Ann
Mercy Housing Management Group Inc.
4/26/2018 Housing
HUD
09-18-2305-8
4/19/2018
Closed
7/24/2018
Hernandez, Deissy
Mercy Housing Management Group Inc.
8/21/2017 Housing
DFEH
935222-299218
7/31/2017
Closed
8/3/2018
Lee, Laura
Mercy Housing Management Group Inc.
6/4/2018 Housing
Wisconsin Equal Rights Division
CR201801518
5/30/2018
Closed
8/6/2018
Wade, lamie
Mercy Housing Management Group Inc.
3/19/2018 Employment
City of Tacoma
4843
3/12/2018
Closed
8/23/2018
Huggins,Alana
Mercy Housing Management Group Inc.
6/4/2018 Housing
DFEH
201801-00873822
5/30/2018
Closed
9/4/2018
Siegfried, Deb and Tom
Mercy Housing Management Group Inc.
8/11/2016 Other
Superior Court
Maricopa
2016-006124
8/11/2016
Closed
9/11/2018
Najarro, Norma
Mercy Housing California
8/21/2017 Premises Liability
Superior Court
San Mateo
17CIV03369
7/26/2017
Closed
11/8/2018
Ogletree, Deborah
Mercy Housing Management Group Inc.
9/9/2016 Premises Liability
State Court
Dekalb
16a61408
9/6/2016
Closed
11/21/2018
DeAnda, Sophia
Mercy Housing Management Group Inc.
5/14/2018 Housing
DFEH
201805-02254115
5/14/2018
Closed
12/5/2018
Thomas, Chanel
Mercy Housing Management Group Inc.

Breach of Contract
State Court
Chatham
5tcy1800435
3/14/2018
Closed
12/27/2018
Peterson, Adriel
Mercy Housing Management Group Inc.
5/11/2018 Housing
Ohio Civil Rights Commission
DAY H6 (27223)05102018
5/10/2018
Closed
2/21/2019
White, Andrea
Mercy Housing Management Group Inc.
3/6/2019 Housing
DFEH
201903-05309401
3/6/2019
Closed
3/15/2019
Miller, William Edward
Mercy Housing Management Group Inc.
3/18/2019 Housing
Ohio Civil Rights Commission
TOLH6 27731 12272018
12/28/2018
Closed
5/13/2019
Spivey -Washington, Tearra
Mercy Housing Management Group Inc.
6/25/2018 Housing
Illinois Department of Human Rights
2018CH2525
6/8/2018
Closed
5/29/2019
Penson, Laura
Mercy Housing Management Group Inc.
11/28/2018 Negligence
U.S. District Court Northern District, IL
1:18<v-04540
Closed
6/13/2019
Joseph, Alice
Mercy Housing Management Group Inc.
7/26/2017 Housing
San Francisco Human Rights Commission
San Francisco
FY18-H-001
7/13/2017
Closed
7/16/2019
McAdams, Dwight
Mercy Housing Management Group Inc.
5/23/2019 Housing
HUD
09-19-6720
5/23/2019
Closed
8/7/2019
Roberts, Bailey (class action)
Mercy Housing Management Group Inc.
11/17/2016 Employment
Circuit Court
Cook
2016ch14905
11/15/2016
Closed
1/9/2020
Simmons, Dorothy
Mercy Housing Management Group Inc.
6/25/2019 Housing
HUD
Inquiry 8584469
6/25/2019
Closed
1/24/2020
Williams, Helene
Mercy Housing Management Group Inc.
11/19/2018 Housing
Illinois Department of Human Rights
2019CH0633
11/7/2019
Closed
2/25/2020
Spotted Elk, Juanita
Mercy Housing Management Group Inc.
7/5/2018 Housing
Seattle Office for Civil Rights
2018 -00952 -HO
7/5/2018
Closed
3/30/2020
Truninger-Hanley, Alecsandra
Mercy Housing Management Group Inc.
10/28/2019 Employment
Colorado Civil Rights Division
32A-2020-00058
10/14/2019
Closed
5/26/2020
Ferguson, Star
Mercy Housing Management Group Inc.
2/4/2019 Premises Liability
District Court
Denver County
20190v30398
2/1/2019
Closed
5/27/2020
Howard, Raymond
Mercy Housing Management Group Inc.
7/24/2019 Employment
Illinois Department of Human Rights
2020CF0071 & 2020CN0072
7/19/2019
Closed
6/4/2020
Bowers, Lori
Mercy Housing Management Group Inc.
3/10/2020 Housing
Iowa Civil Rights Commission
03-20-74829
2/12/2020
Closed
8/6/2020
Carradine, Chanelle
Mercy Housing Management Group Inc.
6/25/2020 Housing
DFEH
202005-10166114
5/13/2020
Closed
8/11/2020
Cobb, Linda
Mercy Housing Management Group Inc.
3/27/2020 Employment
EEOC
440-2020-03796
3/27/2020
Closed
8/26/2020
Booker, Nancy Ann
Mercy Housing Management Group Inc.
8/31/2020 Housing
DFEH
201912-08542610
8/25/2020
Closed
10/14/2020
Gabriel, Emma
Mercy Housing Management Group Inc.
10/1/2018 Housing
San Francisco Human Rights Commission
FY19-H-006
10/1/2018
Closed
10/20/2020
Johnson, Derrick
Mercy Housing Management Group Inc.

Employment

US DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

OAKLAND
4:198-cy-40531ST
Closed
10/27/2020
Hunt, leron
Mercy Housing Management Group Inc.
7/13/2020 Housing
HUD
04-20-2470-8
7/7/2020
Closed
11/19/2020
Hollenbeck, Mark
Mercy Housing Management Group Inc.
5/24/2018 Negligence
Superior Court
Whatcom
18-20100437
5/17/2018
Closed
12/11/2020
Pulera, Mary Kay
Mercy Housing Management Group Inc.
2/11/2020 Housing
Wisconsin Department of Workforce Development
CR202000327
1/30/2020
Closed
1/25/2021
Digby, Charles and Carrie
Mercy Housing Management Group Inc.
1/11/2021 Housing
HUD
04/21/4689/8
12/16/2020
Closed
3/24/2021
Brown, Rosunda as parent forlyrik Brown
Mercy Housing Management Group Inc.
12/21/2017 Other
State Court
Dekalb County
17a67239
12/5/2017
Closed
3/31/2021
Castex, Reginald
Mercy Housing Management Group Inc.
5/7/2020 Employment
DFEH
202001-08831909
4/29/2020
Closed
4/7/2021
Djands, Julie & Poku, Kwasi
Mercy Housing Management Group Inc.
11/10/2020 Employment
Washington Human Rights Commission
34HR-0157-20-1
6/15/2020
Closed
4/23/2021
O'Shea, Susan
Mercy Housing Management Group Inc.
5/17/2021 Housing
HUD
09-21-5302-8
4/21/2021
Closed
5/17/2021
Dlamini, Hope
Mercy Housing Management Group Inc.
6/2/2021 Employment
EEOC
410-2021-02661
6/2/2021
Closed
6/22/2021
Ford, Ka mil
Mercy Housing Management Group Inc.
10/12/2020 Housing
Nebraska Equal Opportunity Commission
2-20/21-9-3626-H
9/28/2020
Closed
7/16/2021
Cheeks, Theris
Mercy Housing Management Group Inc.
10/27/2020 Housing
South Carolina Human Affairs Commission
H-2-21-030
10/17/2020
Closed
7/22/2021
McClendon, Cheri
Mercy Housing Management Group Inc.
7/7/2020 Employment
EEOC
550-2020-00730
5/16/2020
Closed
7/30/2021
McLendon, Cheri
Mercy Housing Management Group Inc.
7/7/2020 Employment
EEOC
550-2020-00730
7/7/2020
Closed
7/30/2021
Cooper, Felicity
Mercy Housing Management Group Inc.
2/18/2021 Housing
Colorado Civil Rights Division
H2100011159
2/8/2021
Closed
8/12/2021
Palacol, Celestine
Mercy Housing Management Group Inc.
11/9/2020 Housing
DFEH
202005-10237123
10/29/2020
Closed
9/3/2021
Camby, Lewis
Mercy Housing Management Group Inc.
10/21/2020 Housing
Seattle Office for Civil Rights
2020 -01291 -HO
10/14/2020
Closed
10/19/2021
Smith, Tanya
Mercy Housing Management Group Inc.

Mercy Housing California
3/16/2020 Negligence
Superior Court
San Francisco
CGC-20-582275
1/17/2019
Closed
10/20/2021
Palomo, Bertha Isabel
Mercy Housing Management Group Inc.

Employment
Superior Court
King
20-2-16942-1
Closed
10/27/2021
Smith, Tanya
Mercy Housing Management Group Inc.
8/19/2021 Housing
DFEH
202104-13344323
8/19/2021
Closed
11/1/2021
Shaw, Winnell
Mercy Housing Management Group Inc.
10/21/2020 Housing
HUD
04-21-3815-8
10/7/2020
Closed
11/5/2021
Jordan, Ricky
Mercy Housing Management Group Inc.
7/22/2021 Employment
Seattle Office of Labor Standards
CAS -2021-00275
7/19/2021
Closed
12/2/2021
Jointer, Cheryl
Mercy Housing Management Group Inc.
11/23/2020 Employment
EEOC
440-2021-00246
11/23/2020
Closed
12/28/2021
Parker, Kimberly
Mercy Housing Management Group Inc.
11/12/2020 Other
State Court
Dekalb
20A83301
11/10/2020
Closed
1/13/2022
Carradine, Chanelle
Mercy Housing Management Group Inc.
4/12/2021 Housing
DFEH
202102-12534105
4/7/2021
Closed
2/17/2022
Woods, Stephanie
Mercy Housing Management Group Inc.
5/18/2021 Housing
City of Lincoln Commission on Human Rights
21-0518-006-H
5/26/2021
Closed
2/24/2022
Souza, Eli
Mercy Housing Management Group Inc.
8/10/2021 Housing
Washington Human Rights Commission
27HFS-0420-20-1
Closed
2/25/2022
Schiro, Danisha
Mercy Housing Management Group Inc.
1/5/2022 Housing
Colorado Civil Rights Division
H2200014279
12/27/2021
Closed
3/8/2022
Beckwith, Lacoria
Mercy Housing California
10/2/2020 Other
Superior Court
San Francisco
cgc 20-586127
8/21/2020
Closed
3/24/2022
Doss, Brenda
Mercy Housing Management Group Inc.
11/16/2021 Housing `
Arizona Attorney General
CRD-2021-1017
11/17/2021
Closed
3/29/2022
1075 Market Street Owners' Association
Mercy Housing California
11/15/2019 Code Violation
District Court
San Francisco
3:19-cv-7313
11/6/2019
Closed
4/21/2022

Fuller, Michael Mercy Housing Management Group Inc. 2/27/2021 Employment Wilson, Sharon
Rivera, Rebecca
Ramirez, Mario
Morrow, Daniel &Jessica
Khaton, Jasmine
Tucker, Alison
Gary Mitchell
Burgos, Luz
Clark, Tanecia
Gary D. Nelson Associates, Inc.

Skochko, Sydney
White, Christine
Burgos, Luz
Perry, Russell
Booker, Nancy Ann
Heath, Ebonee
Lee, Elliott
Dover -Andrews, Ca ndis
Tanner, Jina
Yglesias, April
Andereson, Brenda
City of Oakland
Hendricks, Martine
Dunn, Sienna
Skochko, Sydney
Brown, Tiffany
Jones, Jacqueline
Mitchell, Gary
McBride, Paris
Arnold, Michael et al
Hess, Jon
Kilisi, Siotalima Mercy Housing Management Group Inc. 7/26/2021 Housing Cruz, Reina Zuniga et al Mercy Housing California
Hemphill, Roosevelt
Taylor, William Mercy Housing Management Group Inc. 7/5/2018 Housing Frazier, Rodney et al
Lewis, Michael
Robbins, Milton
EEOC
Illinois Department of Human Rights
Colorado Civil Rights Division
Superior Court
Washington State Human Rights Commission
DFEH
EEOC
Mercy Housing Management Group Inc. 6/14/2021 Housing
Mercy Housing Management Group Inc. 3/2/2022 Housing
Mercy Housing California
Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc. Mercy Housing California Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc. Mercy Housing California 6/11/2020 Housing Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc.

Mercy Housing California
Mercy Housing California
Mercy Housing California
Mercy Housing California
Mercy Housing California
Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc. Mercy Housing California 8/9/2019 Housing Mercy Housing Management Group Inc. 5/13/2014 Housing
Mercy Housing Management Group Inc. 5/16/2013 Premises Liability Mercy Housing Management Group Inc. 3/26/2020 Employment Mercy Housing Management Group Inc. 4/16/2014 Employment Mercy Housing Management Group Inc. 3/27/2019 Premises Liability Mercy Housing Management Group Inc. 2/19/2021 Housing
12/5/2019 Premises Liability
4/26/2022 Housing
9/22/2021 Housing
5/16/2022 Employment
555-2021-00507
2021CH1525
H2200014796
2/27/2021 Closed 4/27/2022
5/5/2021
3/2/2022
11/4/2019
4/18/2022
9/16/2021
5/16/2022
3/14/2022
10/12/2021
6/10/2016
9/9/2021
San Francisco CGC-19-580351
31HD-0124-21-2
202104-13416830
440-2022-05766
2:22-cv-00479-1CC-JRC
202104-13422230
Employment
King
10/15/2021 Employment
DFEH
Superior Court
Superior Court
U.S District Court
HUD
superior court
Nebraska EOC
US District Court
HUD
DFEH
Washington State Human Rights Commission
Superior court
Superior Court
Superior Court
1/23/2017 Negligence
Breach of Contact
Housing
4/25/2022 Housing
1/19/2022 Employment
5/27/2022 Housing
Closed 5/18/2022
Closed 5/19/2022
Closed 6/28/2022
Closed 8/2/2022
Closed 8/10/2022
Closed 8/16/2022
Closed 9/20/2022
Closed 9/20/2022
Closed 10/17/2022
Closed 11/1/2022
Closed 11/4/2022
Closed 11/7/2022
Closed 11/15/2022
Closed 11/28/2022
Closed 12/13/2022
Closed 1/23/2023
Closed 1/23/2023
Closed 2/24/2023
Closed 10/24/2022
Closed
Closed
Closed
Closed
Closed
Closed 1/29/2023
Sacramento 34-2015-00195787
Sacramento 34 -2021 -00307670 -CU -PO -GDS
3:20-cv-08659-JSC
10-22-8718-8
4/21/2022
12/15/2021
5/24/2022
6/10/2020
4/22/2022
Los Angeles 218mcv01933
5/11/2022 Housing
4/21/2022 Housing
8/31/2022 Housing
1/13/2022 Other
NEB 2-21/22-5-3735-H
4:20-cv-03777-KAW
Inquiry 8680114
202112-15651616
17HD-0020-22-3
Oakland
4/9/2022
7/7/2022
San Francisco CSG-21-596406
Alameda
San Francisco CGC 16-554248
Alameda County rg21086119
Alameda
San Francisco CGC-18-566429
Alameda
11/29/2021 No
Negligence
18915622
8/6/2018
10/3/2016
1/20/2021
4/30/2019
10/20/2016 Housing
Other
Housing
Superior Court
Superior Court
Superior Court
HUD
Magistrate Court of Chatham County
Washington State Human Rights Commission
Superior Court
Circuit Court
Superior Court
HUD
Superior Court
Superior Court
Indiana Civil Rights Commission
Superior Court
Superior Court
Superior Court
RG19017026
5/16/2018 Breach of Contract
5/9/2018
RG19027714
09-14-0705-8 and 09-14-0705-4
MGCV1305863
551-2020-01317
RG14721287
No
5/12/2014 Closed
5/2/2013 Closed
3/26/2020 Closed
Chatham
6/13/2019 Other
Mercy Housing California 1/4/2021 Negligence
Alameda
Cook County 2019L003067
San Francisco CAC -21-588740
Closed
3/21/2019 Closed
09-21-6171-8
San Francisco 570252
San Francisco cgc-20-588453
Mercy Housing Management Group Inc. 8/13/2010 Premises Liability Mercy Housing Management Group Inc. 1/13/2010 Premises Liability Mercy Housing Management Group Inc. 12/4/2019 Premises Liability 1/7/2021 No
Closed 2/17/2023
7/19/2021 Closed
5/13/2019 Yes
12/16/2020 Yes
Closed 7/28/2022
Closed 1/18/2023
Closed 11/13/2018
Hose18060318
Sacramento 34-2010-00079642
San Francisco CAC -10-495777
Floyd County 19CV024861FL002
6/6/2018 Yes
6/4/2010 Closed
1/5/2010 Closed
12/3/2019 Closed
03/15/2023

Section H: Comparable Development/Property Management
Experience

Section H: Comparable Development/
City of Placentia -Affordable Housing Development Opportunity Property Management Experience Baker Street
Section H: Comparable Development/Property Management Experience Please see the end of this section for relevant experience for Mercy Housing California and Mercy Housing Management.

Mercy Housing Management Group
Mercy Housing Management Group ("MHMG") is committed to enhancing the quality and value of the Mercy Housing portfolio through sound operating discipline. Since the time of its establishment in 1983, MHMG has provided property services that has become a national model of effective management for resident- focused, affordable housing programs.

MHC fundamentally believes that its affordable housing developments are a long-term investment in the community. MHC is committed both to effective management and to ensuring that residents have access to the services they need in order to foster personal growth and increased independence and self- sufficiency. To that end MHC works very closely with MHMG during all stages of development to ensure a high quality, viable and sustainable development.

Currently MHMG manages a total of 328 affordable housing developments nationwide, 148 properties in California, and 48 properties in Southern California. MHMG provides sound property operation and coordinates a wide variety of supportive services and community enrichments for all of its over 24,000 units (which have a 95% rent collection rate by month's end) —and does so with the perspective of an owner and not a third party, unaffiliated management company. MHMG property management personnel ensure that the property itself is well managed and maintained — a place where residents can take pride in their homes and communities. MHMG strives to ensure that every property is:
well -managed and properly maintained to provide decent, safe and sanitary living conditions for its residents;
a permanent, affordable housing resource in the community; a pleasant and secure living environment for its residents and the surrounding neighborhood; a catalyst for positive relationships among the residents, management staff and surrounding communities;
and a financially stable enterprise that successfully operates within its budget so that all expenses, debt service and reserve payments are covered by operating income.

MHMG manages over 200 tax credit properties nationwide, with most of those having a variety of other state and local funding and regulatory agreements. This includes funding programs ranging from HUD 202 to local operating subsidies. MHMG manages all of the properties that MHC has developed with HCD funding. They are a skilled partner in ensuring that our properties continue to meet all regulations.

MHMG has a large breadth of experience with formerly homeless individuals and families. In California, MHMG manages 550 units of supportive housing serving the formerly homeless. Regardless of the population, MHMG's first goal is always housing retention. Constant communication between property management and the mercyHousI NG
Live in Hope

Page 19 of 30 ends

Section H: Comparable Development/ City of Placentia -Affordable Housing Development Opportunity Property Management Experience
Baker Street
supportive service provider(s) is essential to keep formerly homeless residents housed in a safe environment.

MHMG's high retention rate of 97% across its supportive housing portfolio demonstrates the success of this collaborative effort.

MHC's approach to property management begins
early in the project timeline, during
predevelopment where we engage our operations
team during project design to understand the
functional aspects of the building. Our decision to
locate offices, trash, community space, bike racks
and mailrooms (for example) come after extensive
discussions with our management, resident
service, and asset management teams. We spend
considerable time during this period developing
an operating budget and staffing approach to
ensure appropriate site coverage and that
residents are receiving the site -specific services
that will help them thrive. This is also the period
when initial drafts of service and management
plans are circulated as part of our financing applications. This gives our team, and the City, the first opportunity to iron out any concerns or issues in the operations approach. •
•
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It is during this development period that MHC will work to select, or at least narrow down, its service partner.

Across California we have over 25 service partner relationships and our deep experience with so many providers informs our approach to selection. We have many additional questions to discuss with the County and with PATH/Mercy House (the operator of the Buena Park Navigation Center) to help us better understand the referral mechanics between the County, the Navigation Centers and the owner/developer. We would also engage closely with HIS House during development to make sure we understand any household specific supports that will accompany the HIS House unit. Our experience has taught us that these tenant selection details are especially important in a mixed population setting and that all parties need clear alignment of goals and desired outcomes.

Once Baker Street begins construction, we will begin having "Transition Team" meetings between our development, property management, asset management and service partner teams. These meetings allows us to ensure alignment of understanding around AMI targeting, population mixes, referral steps, tenant selection criteria, marketing plans, project start up and leasing, and building operations. Our site staff will be hired with both local and population specific knowledge and once on board, we will work to connect them with the community partners and resources that have helped to create Baker Street. We know that every property hits bumps. The first six months of operations can be particularly difficult as residents work to acclimatize to their new settings and our site staff work to support appropriate boundaries. But our teams, with development, services and property management, strive to maintain open lines of communication with our city/agency partners so that as issues or concerns arise, we can honesty and directly communicate around solutions. We believe accountability and transparency are at the core of successful property operations. mercyHousI NG
Live in Hope

Page 20 of 30 ends

Section H: Comparable Development/ City of Placentia -Affordable Housing Development Opportunity Property Management Experience Baker Street
Included in the Appendix is a sample Supportive Services Plan. Though this does not perfectly represent our approach at Baker St, it is reflective of the level of details needed to ensure clarity of purpose in tenant selection.

Experience in Similar Jurisdictions
In addition to our relatively recent work in Placentia, MHC has worked successfully in other similarly sized cities to complete impactful, award -winning communities that respond directly to our city partner's housing objectives. MHC and its team, including our consultants, truly enjoy working with small and moderate sized cities in California. We find staff to be incredibly responsive, proactive, and solution oriented. Our team works hard to recognize and respect the financial and political contributions our city partners make to create these new housing communities. We are highly collaborative and are always willing to work with our city partners around important considerations like property naming, service partnerships and volunteer opportunities for community members (in addition, of course, to collaboration around design and financing). We view ourselves as part of the fabric of the community and this perspective begins at the earliest stages of development when we engage community stakeholders around the proposed development. Though sites awarded through an RFP can come with a clearer pathway to approvals, as a matter of respect to community members we remain just as engaged with our community stakeholders and would work early on to establish relationships with appropriate community groups and leaders.

Other similar jurisdictions in which MHC has recently created new affordable housing communities include:

Orange, El Monte, Poway, Norwalk, Daly City, Auburn, Roseville, and West Sacramento. In each of these communities we worked extremely closely with staff and elected officials to understand housing goals, incorporate community design preferences and partner on funding strategies to ensure the timeliest completion possible.

Development Team
Mercy Housing California
Mercy Housing California was established in 1988. MHC is a wholly owned affiliate of Mercy Housing, Inc., established in 1981. Each project developed and owned by MHC is established as an LLC, with the managing general partner wholly owned by MHC. MHC is headquartered in San Francisco, with offices in Los Angeles and Sacramento. The staff in the Los Angeles office will be the team for this project.

Mercy Housing Management Group
Mercy Housing Management Group was established in 1983. MHMG is the property management affiliate of Mercy Housing, Inc. and provides property management services nationally for Mercy Housing properties.

MHMG is headquartered in Denver with local staff in Los Angeles, who will operate this property. "mercyHous I NG

Page 21 of 30 ends

Live in Hope

MHC Project Profiles

PROJECT PROFILE
*mercy HOUSING
Placentia Veterans Village
1945 East Veterans Way
Placentia, CA 92870
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Developer Role
Managing General Partner
Current Project Status
Complete
Type of Project
Veterans Housing
Total Number of Residential Units
50 units
Unit Mix
45 1 -BR 15 2 -BR
Total Residential Square Footage
30,770 sf
Population(s) Served
Formerly Homeless Veterans
Construction Type
Type V (wood)
Construction Start Date
December 2018
Construction Completion Date
June 2020
Total Development Cost
$23,933,037
Financing Sources
Entity: City of Placentia
Type: Permanent Loan
Damien Arrula
[email protected]
Entity: US Bank
Type: Construction Loan, Equity
Contact: Jessica Gustafson
[email protected], 303-585-4779
Entity: CCRC
Type: Permanent Loan
Contact: Andy Chan
[email protected], 818-844-3317
Financing
Entity: Orange County
Type: Ground Lease, Permanent
Contact: Julia Bidwell
[email protected]
Narrative:

Placentia Veterans Village first permanent supportive housing development for veterans in Placentia. Through close partnership with the City of Placentia, MHC was able to develop a welcoming community and revitalize a formerly industrial area. The site includes a recreation room, various indoor community spaces, and an outdoor courtyard with a community garden. Historically, the surrounding area has been used for various industrial manufacturing purposes, and is now undergoing extensive redevelopment. The building is located south of Orangethorpe Avenue, a major commercial thoroughfare in the city of Placentia that provides access to shopping and other commercial amenities. With on -site services provided by the United Stated Department of Veterans Affairs (VA), and New Directions for Veterans (ND Vets), Placentia Veterans Village has created a supportive environment for Veterans to heal, find peace, restore dignity and re-engage with their communities.

PROJECT PROFILE
OmercyHOUSING

Baldwin Rose Apartments
EI Monte, CA

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Developer Role
General Partner/Developer, Owner
Current Project Status
Completed
Type of Project
Family housing, set -aside for homeless veterans
Total Number of Residential Units
55 units
Unit Mix
16 1 -BR 121 2 -BR 118 3 -BR
Total Residential Square Footage
84,820 sf
Population(s) Served
Families, Veterans, 30-60% AMI
Construction Type
Type V (wood)
Construction Start Date
December 2017
Construction Completion Date
December 2019
Total Development Cost
$32,704,572
Financing Sources
Entity: City of EI Monte
Type: Construction/Permanent Residual Receipts
Loan/Mitigation Fee Loan/Land Donation
Contact: Carol Averell
[email protected]
Entity: Wells Fargo
Type: Construction Loan and 9% Equity
Contact: Tim McCann
415-801-8520, [email protected]
Entity: CCRC
Type: Permanent Loan
Contact: Andy Chan
818-844-3317, [email protected]
Entity: HCD VHHP
Type: Permanent Residual Receipts Loan
Contact: Lindsey Cash
916-263-5008, [email protected]
Entity: LA County Community Development Commission
Type: Construction/Permanent Residual Receipts Loan
Contact: Lynn Katano
626.586.1806, [email protected]
Narrative:

Baldwin Rose, a 55 -unit community, brings together homeless individuals and families facing a broad array of challenges and connects them to community -based services and resources tailored to provide an opportunity to thrive and engage in the community. MHC has partnered with New Directions for Veterans (NDV) to deliver these supportive services onsite. The intended population for 32 apartments will be families with a veteran head of household, while the remaining 22 units will be set aside for families where the head of household is a veteran experiencing homelessness.

The development is located on two separate parcels (West Parcel and East Parcel), situated on both sides of Baldwin Avenue between Bessie Avenue and Rose Avenue, and measures approximately 3.71 acres. The site plan is designed to utilize these long narrow parcels by organizing the buildings which front Baldwin Ave. as a series of row house type buildings, locating the vehicular access at the rear of the long "bar" building, thus creating a pedestrian friendly street frontage in this mostly single family neighborhood. The plan takes advantage of a pedestrian bridge located on the north side at Bessie Ave. and a sidewalk connection on the south side at Rose Ave.

PROJECT PROFILE
°mercy HOUSING
Veterans Villas at San Antonio Drive
Norwalk, CA
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Current Project Status
In Construction
Developer Role
Managing General Partner
Type of Project
Family Rental
Total Number of Residential Units
60 Unit Mix
1 BR: 20 12 BR: 24 13 BR: 15
Total Square Footage
93,686 sf
Population Served
Families earning between 20% - 50% AMI, Veterans
Construction Start Date
January 2023
Construction Completion Date
Anticipated October 2024
Total Development Cost
$40,191,730
Financing Sources
Entity: City of Norwalk
Type: Land Donation, Construction Loan, Permanent Loan
Entity: NEF
Jesus Gomez
Type: 9% Equity
562-929-5745, [email protected]
Todd Fabian
213-479-4602, [email protected]
Entity: California Department of Housing and Community
Development, Multifamily Housing Program, Veterans Housing Entity: Silicon Valley Bank
and Homelessness Prevention Program
Type: Construction, Permanent Loan, FHLB AHF
Type: Permanent Loan
Deborah Koski
Siyao (Becky) Mo
510-375-2089, [email protected]
[email protected]
Narrative
Veterans Villas at San Antonio Drive is the new construction of 60 affordable rental homes for veterans who have experienced homelessness and families with a veteran head of household. Located at the corner of Foster Road and San Antonio Drive, this new community will provide safe, healthy and affordable apartments with common spaces as well as professional management staff and resident services programming intended to support veterans and their families. The surrounding neighborhood includes single-family homes, senior affordable housing to the south, and a mini -storage site across the street. In the Spring and Fall of 2019, Mercy Housing California (MHC) engaged in an extensive community outreach process with various stakeholders and worked to incorporate community feedback into the design of the building and outdoor spaces. The population mix and concept for the Veterans Villas are based on Baldwin Rose, a thriving community for formerly homeless veterans along with veterans and their families, and the second of two such properties that MHC has completed in the City of El Monte.

PROJECT PROFILE
°mercy HOUSING

Camino del Mar
Los Angeles, CA
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Current Project Status
Complete
Developer Role
Managing General Partner
Type of Project
Family Rental
Total Number of Residential Units
88 Unit Mix
1 BR: 12 12 BR: 24 13 BR: 55
Total Square Footage
83,674 sq. ft.

Population Served
Families earning between 30% - 50% AMI
Construction Start Date
September 2016
Construction Completion Date
October 2018
Total Development Cost
$36,289,334
Financing Sources
Entity: US Bank
Type: 4% Equity
Contact: Christina LaGorio
[email protected], 303-585-4038
Entity: Citibank
Type: Construction Loan and Permanent
Contact: Brian Dale
[email protected], 303-308-7403
Loan
Narrative
Old Dana Strand Village was constructed in 1942 to provide 384 units of housing for shipyard workers supporting the war effort. After the war, HACLA operated the site as veteran housing and eventually acquired the site in 1954.

By the 1990s, the once vibrant 21 acres of Dana Strand Village's deteriorated under the stress of gang activity. In pursuit of a transformation, HACLA was awarded a $2 million HOPE VI demolition grant in 2001 for Dana Strand Village. To complete the development, HACLA entered into a public -private partnership with non-profit housing developers, Mercy Housing Corporation, and Los Angeles Community Design Center (which is now Abode Communities).

The master planning of the New Dana Strand Revitalization included a community outreach process involving the Council Office, Resident Advisory Council, Los Angeles Police Department, neighbors and community stakeholders.

It resulted in a robust mixed- income, mixed -use community consisting of 120 garden- style affordable family homes in Phase I (Harbor View Place); 116 affordable family townhomes coupled with a 10,000 square foot community center in Phase II (Wilmington Townhomes). A 100 -unit affordable senior housing (Dana Strand Senior Apartments) was developed in partnership with ROEM Dev Corp.

While the original vision of the final phase was to develop single family homes, the 2008 economic downturn provided HACLA with an opportunity for developing affordable multi -family rental units on this site, given the great need for such housing in Los Angeles. In Phase IV, HACLA partnered with Mercy Housing and Abode Communities for developing 176 service -enhanced, affordable homes on eight lots, Camino and Vista del Mar.

PROJECT PROFILE
.mercy Housi Ne
West Beamer Place
Woodland, CA
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Current Project Status
Complete
Developer Role
Managing General Partner
Type of Project
Family Rental
Total Number of Residential Units
80 Unit Mix
1 BR: 26 12 BR: 30 13 BR: 24
Total Square Footage
83,039 sq. ft.

Population Served
Families earning between 30% - 50% AMI, MHSA residents
Construction Start Date
March 2017
Construction Completion Date
May 2018
Total Development Cost
$36,289,334
Financing Sources
Entity: US Bank
Type: 4% Equity, Construction Loan
Contact: Jodi Enos
[email protected], 503-464-4584
Entity: California Department of Housing and Community
Development, Multifamily Housing Program -Supportive Housing Type: Permanent Loan
Contact: Tonja Meadows
[email protected]
Entity: Yolo County
Type: Donated Land, PBVs
Contact: Ian Evans
[email protected], 530-669-2219
Entity: CaIHFA MHSA
Type: Construction Loan and Permanent
Loan
Contact: Charlotte Moore
[email protected], 310-342-5402
Narrative
Developed in partnership between Mercy Housing and Yolo County Housing's New Hope Community Development Corporation, West Beamer Apartments provides 80 attractive and affordable apartment homes for Woodland's residents. Located at the northeast corner of West Beamer and North Cottonwood Streets in Woodland, California, on the County -owned site of the former Peterson Clinic and south of the Yolo Adult Day Health Center, the proposed community consists of 80 garden -style apartments in 15 two-story buildings on a four and a half acre parcel. There is a separate, 3,300 sq. ft. community building that will include staff offices, community space (conference room, multipurpose room, and kitchen), laundry facilities, a computer area, and an outdoor terrace.

The proposed development provides permanent supportive housing for 32 MHP Supportive Housing (MHP-SH) qualified Yolo County residents experiencing or at -risk of, homelessness in a residential, integrative manner.

Twenty of these 32 units will be one -bedroom units reserved for MHSA-qualified households. Services for the 20 MHP-SH/MHSA permanent supportive households will be provided by Yolo County and their contract Full Service Partner (FSP).

References

Ann Sewill, General Manager
Tricia Keane, Executive Officer
Daniel Huynh, Assistant General Manager
Anna E. Ortega, Assistant General Manager
Luz C. Santiago, Assistant General Manager
Mr. Ed Holder
Mercy Housing California
1500 South Grand Avenue, Suite 100
Los Angeles, CA 90015
Dear Mr. Holder:

City of Los Angeles
Karen Bass, Mayor
March 16, 2023

LOS ANGELES HOUSING DEPARTMENT
1200 West 7th Street, 9th Floor
Los Angeles, CA 90017
Tel: 213.808.8808
housing.lacity.org
I am pleased to provide this letter of reference for Mercy Housing California (MHC). The Los Angeles Housing Department has worked with MHC in the development of over 500 units of affordable housing and we found Mercy Housing California to be a very skilled, developer and property owner. The staff and leadership are experienced, responsible, and professional.

Mercy Housing is skillful and strategic in managing the development process, whether for an acquisition and rehabilitation or new construction, to ensure that their developments meet both schedule and budget expectations.

Mercy Housing has also complied with all Los Angeles Housing Department requirements in the operation of their developments.

MHC has been an excellent partner in developing permanent supportive housing in Los Angeles. They have three projects and 213 units with Proposition HHH funds, including being part of an HHH Innovation award team. At two of these projects, Whittier and 6th Street Place, MHC has used modular units to deliver these needed PSH units faster and at a lower cost. Modular construction requires sophistication and complex financing structures which the MHC development team has handled adeptly. Each of these projects have supportive service partners, many financing partners, and deeply involved local communities. Mercy Housing has navigated each step of the development process well to bring these projects to fruition.

The Los Angeles Housing Department has had a positive experience with Mercy Housing California in developing quality, safe and affordable housing. If anyone should have questions, please feel free contact us at (213) 808-8808 or [email protected].

Sincerely,
Ann Sewill
General Manager
An Equal Opportunity Employer

DYLAN WRIGHT

DIRECTOR

OC COMMUNITY RESOURCES

CYMANTHA ATKINSON

ASSISTANT DIRECTOR

OC COMMUNITY RESOURCES

JULIE LYONS

DIRECTOR

ADMINISTRATIVE SERVICES

ANDI BERNARD

DIRECTOR

OC ANIMAL CARE

JULIA BIDWELL

DIRECTOR

OC HOUSING & COMMUNITY

DEVELOPMENT

RENEE RAMIREZ

DIRECTOR

OC COMMUNITY SERVICES

PAMELA PASSOW

INTERIM DIRECTOR

OC PARKS

JULIE QUILLMAN

COUNTY LIBRARIAN

OC PUBLIC LIBRARIES

OC HOUSING &

COMMUNITY DEVELOPMENT
1501 E. ST. ANDREW PLACE, 1sT FLOOR
SANTA ANA, CA 92705
PHONE: 714.480.6534
FAX: 714.480.2978
d( Community Resources
March 15, 2023
Ed Holder
Mercy Housing California
1500 S. Grand Ave., Suite 100
Los Angeles, CA 90015
Dear Mr. Holder,
Please consider this letter as a letter of reference for Mercy Housing California (MHC). The Orange County Housing and Community Development Department (OC HCD) has worked with MHC in the development of over 200 units of affordable housing.

Mercy Housing has managed the development process successfully, whether for an acquisition and rehabilitation or new construction, and their developments have met both schedule and budget expectations (that are within their control). Mercy Housing has also complied with all Agency requirements in the operation of their developments.

An example of a collaboration with MHC development is the construction of Placentia Veterans Village which provides critically needed and supportive housing in Placentia for homeless veterans. Placentia Veterans Village was developed on an assemblage of parcels owned by the Orange County Flood Control District and a privately owned site. MHC took on the role of negotiating the purchase of the private site and was successful in navigating the complication of developing with a ground lease and purchased land.

MHC identified a strong services provider, New Directions for Veterans, to provide culturally appropriate support for the residents at the site. By working with OC HCD and their partners, MHC was able to develop the first veterans permanent supportive housing in Placentia.

Mercy Housing California has developed quality, safe and affordable housing in Orange County through partnership with the County. For any questions, please feel free to call me at 714-480-2991 or e-mail at [email protected]
Sincerel
Ju
Director, Housing & Community Development

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March 15, 2023
Ed Holder, Vice President
Mercy Housing California
1500 S. Grand Ave., Suite 100
Los Angeles, CA 90015
Dear Mr. Holder:
11333 Valley Boulevard
O EI Monte. CA 91731
to (626) 258-8626
►r [email protected]
elmonteca.gov
Please consider this letter as a letter of reference for Mercy Housing California (MHC) and its management partner, Mercy Housing Management Group (MHMG). The City of EI Monte has worked with MHC and MHMG on the development and management for over a decade.

MHMG, has demonstrated the skills and experience needed to gain our confidence that the properties they own will be managed with the necessary sensitivity and business acumen to ensure their long-term success, both at meeting the needs of their residents and at protecting the viability of their real estate assets. MHMG is incredibly dedicated to the improvement of residents' quality of life. In addition, Mercy has one of the most sophisticated and mature asset management, regulatory compliance and financial services systems and staff in the affordable housing industry.

An example of a complex and long term success in management is EI Monte Veterans Village. MHC developed the Veterans Village in 2014, for formerly homeless veterans. The community is the first permanent supportive housing development for veterans in the San Gabriel Valley. MHC navigated the end of redevelopment funding. MHC and EI Monte worked together to ensure this project came to fruition. With the careful selection of the veteran services partner, New Direction for Veterans, MHMG has provided a stable, supportive community for the residents. MHMG manages the deep needs of the residents of the building as well as the general operations building well.

The City of EI Monte has had a positive experience with Mercy Housing California in developing quality, safe and affordable housing. If anyone should have questions, please feel free to have them contact me at (626)258-8626 or [email protected].

Sincerely,
Betty Donavanik
Director of Community & Economic Development

CHANGING LIVES
March 9, 2023
Dear Ed:

Please consider this letter as a letter of reference for Mercy Housing California (MHC) and its management partner, Mercy Housing Management Group (MHMG). The Sacramento Housing and Redevelopment Agency has worked with MHC and MHMG on the development and management of over 1,500 units of affordable housing.

An example of a complex and long-term success in management is 7th & H. MHC developed 7th & H in 2013, for formerly homeless residents and low-income small households. The ground floor of 7th & H has a Federally Qualified Health Center and two retail spaces. The unit mix is equally divided between formerly homeless residents and low-income residents. Many of the residents at 7th & H have been very high acuity and the partnership between MHMG, Mercy Housing resident services, and the supportive services providers have allowed the residents at 7th & H to thrive. MHMG manages the deep needs of the residents of the building as well as the general operations of the complex building well.

The Sacramento Housing and Redevelopment Agency has had a positive experience with Mercy Housing California in developing quality, safe and affordable housing. If anyone should have questions, please feel free to have them call me at (916)440-1353 or [email protected].

Sincerely,
Christine Weichert, Director
Development Finance
Equal Housing
Opportunity
Sacramento Housing & Redevelopment Agency 801 12th Street, Sacramento CA 95814 (916) 444-9210 I TTY 711 or 1 (800) 855-7100 I www.shra.org

Section I: Implementation Timeline

City of Placentia -Affordable Housing Development Opportunity Section I: Implementation Timeline Baker Street
Section I: Implementation Timeline
Including at the end of this section is a detailed schedule highlighting critical project milestones. As noted above, our approach to implementation begins with aggressively pursuing the County's upcoming funding NOFA. We have had conversations with the County and expect that the NOFA will follow the guidelines from the last NOFA. We believe Baker Street will be eligible for up to $3,000,000 in Supportive Housing funding from the County for the following reasons:
• The entitlement requirements are simply a letter from the local planning department stating the project is either in compliance with local zoning and General Plan or that there is a path for obtaining any discretionary approvals. Since this project will generally be within compliance of local zoning, with some Density Bonus concessions, we anticipate the zoning department will be able to execute this letter. • The site control required by the NOFA is an executed disposition or development agreement or a purchase and sale or option agreement with the property owner. While aggressive, we believe that we can reach one of these forms by the end of May 2023. MHC has experience working with the city and its legal team and knows how to move quickly under time constraints. Establishing site control on the street dedication part within the needed time could require some creativity. • Matching funds, equivalent to the amount of assistance from the County, are required for entitlement cities. As the land purchase price will be put back into the project, Baker Street would meet this requirement.
• The County NOFA exclusively supports permanent supportive housing units restricted to 30% of AMI as this project is structured to serve.
• Placentia is an entitlement city, so this project would be eligible to apply in the second priority round, giving it a competitive chance for the PBVs and capital financing.

Notably, MHC is currently pursuing a similarly aggressive schedule on a project in Long Beach. We secured site control in October 2022 (site will be acquired through our Land Fund, previously described), met with the city about the concept in November 2022, submitted an application to the City's Housing Authority in January 2023 and received a commitment of vouchers in February 2023. We are submitting for additional capital funding in March and will be submitting for this year's SuperNOFA with vouchers and what we hope will be additional city capital funding.

Securing County funds then sets Baker Street up for two possible funding scenarios, the timing for which is provided below. Note these schedules assume funding in the first attempt for all sources. 9% tax credits are offered twice a year while HCD funds are currently offered once per year. As noted, County funding has historically been released every 2+ years.

Scenario 1: As discussed in Section F, and assuming we are not able to secure the additional transit point, the primary scenario is a 9% project with state credits and IIG. After the County funds, the next major deadline would be the 2024 SuperNOFA application. These are typically due at the end of June with awards announced in December. For a fully competitive SuperNOFA application, the project would need all other soft financing committed, including funds from the City and County, as well as CEQA approval. As discussed in the Conceptual Design section, the design of the site is intended to conform to existing zoning approvals, with Density Bonus concessions. For the SuperNOFA application, all entitlements must be approved, or the city must sign a form stating the project can be approved through by -right zoning. Site control, in the form of an option, a DDA, or an "mercyHous I NG
Live in Hope

Page 27 of 30 ends

City of Placentia -Affordable Housing Development Opportunity Section I: Implementation Timeline Baker Street
ENA is required for the whole site, including the street dedication. With a successful SuperNOFA application, Baker Street would be ready to apply for 9% tax credits and state tax credits in the first round: March 2025. If awarded, it would be ready to start construction by December 2025.

Scenario 2: The second scenario is the 4% tax credit and MHP scenario. As with Scenario 1, Baker Street would need full readiness going into the June 2024 SuperNOFA. The 2024 SuperNOFA would set up the project to apply to CDLAC in Round 1 2025.
"mercyHous I NG
Live in Hope

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MERCY HOUSING CALIFORNIA

BAKER STREET-PLACENTIA

DEVELOPMENT SCHEDULE
YEAR
MONTH
2023
1 2 3 4 5 6 7 8 9 10 11 12
2024
1 2 3
5 6 7 8 9 10 11 12
2025
1 2
5 6 7 8
9 10 11 12
2026
1 2 3
6 7 8 9 10 11 12
2027
1 2 3 4 5 6 7
8 9 10 11 12
.cenario 1: 9% LIHTC
Concept Design (Entitlements Set)
4 5
6 Entitlements
6 7
8 9
10 11
12 Site Control
4 OC HCD Funding and Vouchers
5 6
7 8
9 10
IIG (SuperNOFA) Funding
III
7 8
9 10iiii1
•
9% LIHTC/State Tax Credits
14 5
6 Construction Closing
7 8
9 10
11 12
Construction
1 2
3 4
5 6
7 8
-ff 10
11 12
1 2
3 4
5 6
Lease -Up
4 5
6 7
8 9
Scenario 2: 4% LIHTC
Concept Design (Entitlements Set)
4 5
6 Entitlements
6 7
8 9
10 11
12 Site Control
4 OC HCD Funding and Vouchers
5 6
7 8
9 10
IIG and MHP (SuperNOFA) Funding
6 7
8 9
10 11
12 4% LIHTC/Bonds
2 3
4 5
Construction Closing
6 7
8 9
10 11
Construction
1 8
9 10
11 2
1 2
3 4
5 —
Lease -Up

3 4
5 6
7 8

Section J: Potential Conflicts of Interest

City of Placentia -Affordable Housing Development Opportunity Section J: Conflict of Interest Statement Baker Street
Section J: Conflict of Interest Statement
No member of the development team staff, board of directors, or other governing body is, or has been, a City of Placentia employee or consultant, a City of Placentia City Councilperson, nor a Board or Commission member who has direct influence on the use of public funding.
"mercyHous I NG
Live in Hope

Page 30 of 30 ends

APPENDIX

TCA Experience

LOCATION

IRVINE, CA
CLIENT

ANTON DEVCO

COMPLETION DATE
2017
UNITS
256 (25 DU/AC)

SQUARE FOOTAGE
24,176 SQ FT

CONSTRUCTION TYPE V
100% AFFORDABLE
lc

ARCHITECTS

ANTON PORTOLA
Anton Portola is an affordable community consisting of 12 three-story apartment buildings with a total of 256 apartment units. Additional buildings on the site include a leasing and recreation building, central laundry and maintenance building, carports, and trash enclosures. The site plan for Anton Portola is designed around two large open greens that are centered within the community. The first is used as the main recreational area with the communities' pool. The second houses a large children's play area and a shared laundry facility. The residential homes all work around these two areas, enhancing views and helping to keep eyes on the neighborhood. The homes are two and three stories in height and are based on an early California theme. Massing steps down at the buildings edges to help break down scale. Garages are tucked into the building and hidden from view along drive courts.

LOCATION

EL MONTE, CA
CLIENT

MERCY HOUSING

COMPLETION DATE
2020
UNITS
55 SQUARE FEET
64,698 SQ FT

CONSTRUCTION TYPE V
100% AFFORDABLE

BALDWIN & ROSE
The Baldwin and Rose veterans' housing project brings 54 units of critically needed affordable housing to low-income veterans and their families residing in the San Gabriel Valley, an area with approximately 500-1,000 homeless veterans and 7,800 veteran families. Of these 54 units, 32 houses low-income veterans, and 22 will go specifically to homeless veterans. The project also has an onsite manager's unit. The project provides residents of all ages with ample outdoor space, including a large "commons" area for recreational activities as well as a community garden. Adjacent to the commons is a 1,000 sq. ft. community room that orients a large wrap -around veranda to the outdoor space, creating a sense of integrated indoor -outdoor living and offering multiple vantage points. The City of El Monte will be transferring property rights to the site and is also providing financing in the form of a low -interest loan over a period of 55 years. Funding is also being provided through NOFA and TCAC.

ARCHITECTS

AWARDS
2006 PCBC Gold Nugget Award
Best Senior Housing Project - Attached

LOCATION

NEWPORT BEACH, CA
CLIENT

RELATED COMPANIES

COMPLETION DATE
2005
UNITS
120 (30 DU/AC)

SQUARE FEET
175,600 SQ FT

CONSTRUCTION TYPE V
TYPE
100% AFFORDABLE
Trk

ARCHITECTS

BAYVIEW LANDING SENIOR LIVING
Designed to be reflective of Southwest Mission, Bayview is contemporized with smooth planar walls, simple fenestration, and accent columns. Bayview Landing consists of 120 affordable units with 20% of the units at 50% of AMI and 80% of the units at 60% of AMI, all of which are restricted to tenants aged 62 and older. Situated on five acres, amenities include a 3,000 square foot community center, a central courtyard including a pool, jacuzzi, and an outside fireplace as well as a fitness center, lounge, crafts room, and theater. The buildings were positioned to maximize views of the bay, and provide easy access to the nearby 10 -acre park and walking trail. A bike trail descends to the western edge of the site and connects with the existing trails at Newport Dunes.

LOCATION

ANAHEIM, CA
CLIENT

BRIDGE HOUSING

COMPLETION DATE
2020
UNITS
102 (36 DU/AC)
100% AFFORDABLE

SQUARE FEET
175,172 SO FT

CONSTRUCTION

TYPE III
1Mc

ARCHITECTS

BRIDGE ANAHEIM
The 2.86 acre site is located at the northwest corner of Orangewood Avenue and Manchester Avenue in the city of Anaheim, California. Our building is a 3 -story, on -grade podium with 102 dwelling units comprised of 1, 2 and 3 bedroom plans.

Unit plans average 896 square feet and have generous patios and outdoor spaces.

Architecture wraps down the front edge of the parking structure to disguise it from public view providing extended patios along Manchester and stoops along Orangewood. Our project boasts over 10,000 square feet of resident and community serving amenities. Above the street, the podium consists of several activity nodes that include a tot -lot, pool, bbq and outdoor dining area, meditation courtyard and 2 -story outdoor terrace with views to the linear park.

AWARDS
PCBC Gold Nugget Merit Award 2014, 2015
Best Affordable Housing Project

LOCATION

EL MONTE, CA
CLIENT

MERCY HOUSING

COMPLETION DATE
2014
UNITS
41 (40 DU/AC)

SQUARE FEET
30,695 SQ FT
CONSTRUCTION TYPE V, 100% AFFORDABLE

ADDITIONAL SERVICES PROVIDED
TCA SIGNAGE + WAY -FINDING

EL MONTE VETERANS HOUSING
El Monte Veteran's Village is the San Gabriel Valley's first supportive housing community focusing exclusively on Veterans. TCA utilized the HighDEF product to reach the ideal density and provide a design program compatible with the client's goals. The project came with an allocation of vouchers that provided financial assistance for housing costs and support services through the Department of Veterans Affairs. Through a redevelopment -funded City of Industry allocation, Los Angeles County committed over $2 million in gap funding to the project, in addition to the project based vouchers. The project combines an array of sustainable technologies across the board and exceeds California's Title 24 Energy requirements by over 24%. In addition to the sustainable features of the building, the property includes an edible garden, fruit tree orchards and on on -site composting facility to process yard waste.

ARCHITECT S

AWARDS

MODULAR ARCHITECTURE
PCBC Gold Nugget Merit 2020
Best Supportive / Transitional Housing

LOCATION

LOS ANGELES, CA
CLIENT

MERCY HOUSING

COMPLETION DATE
EXPECTED 2023
UNITS
95 (188 DU/AC)

SQUARE FEET
69,034 SQ FT

CONSTRUCTION TYPE III
100% AFFORDABLE

HARDSCAPE

PAVING TILES
6TH STREET PLACE
The goal of 6th Street Place is to address the widespread homeless population of downtown Los Angeles. The design goal of 6th Street Place is to provide a unique opportunity for homeless residents to contribute to the community by expressing their individuality through artistic means. A resident "art mural" at the ground floor creates opportunities for residents to contribute a piece of art in the form of a wall tile. The mosaic mural will evolve through time as more tiles are infilled. The Art Tiles represent the smallest scale of the singular unit, which collectively forms "the Mural." Inspired by the concepts of modular design, each "unit" represents that very individual and is articulated individually on the facade. Collectively, the individual units comprise the building as a "whole" and collectively forms the architecture. This concept also manifests in the compositions of potential modular architecture.

ARCHITECTS

LOCATION

PLACENTIA, CA
CLIENT

MERCY HOUSING

COMPLETION DATE
2020
UNITS
50 SQUARE FEET
50,975 SQ FT

CONSTRUCTION TYPE V
100% AFFORDABLE

PLACENTIA VETERANS VILLAGE
Placentia Veterans Village offers 50 furnished apartment homes to low-income, disabled veterans residing in Orange County, as well as a manager's unit. Veterans have access to a range of on -site services, including individualized case management and service coordination to connect with education, employment, healthcare, benefits assistance, legal assistance, and family reunification services. Located on

3.66 acres of unimproved land in an industrial/commercial corridor of Placentia, the development enhances the quality of life in the area while helping to meet the need for affordable housing for veterans. Placentia Veterans Village is designed in a traditional Craftsman style using simple expressive forms and articulated massing to create an environment that is both comfortable and familiar. One and two bedroom residences offer amenities such as indoor & outdoor community spaces, private terraces and laundry rooms. The project also provides a community garden and ample green space. The development is designed to achieve LEED Gold certification, utilizing energy efficient design principles and building materials.

ARCHITECTS

LOCATION

SANTA ANA, CA
CLIENT

COMMUNITY DEVELOPMENT PARTNERS

COMPLETION DATE
2021
UNITS
51 (46.55 DU/AC)

SQUARE FEET
90,280 SOFT

CONSTRUCTION

TYPE V PODIUM
MICA

ARCHITECTS

TINY TIM
The existing 2.33 acre site has two existing commercial structures totalling 16,470 SF whose exterior will be aesthetically improved. An existing 1,060 SF automobile service building will be demolished and replaced by a 90,280 SF mixed -use building consisting of 51 affordable dwelling units and space for associated community amenities and services. The 93 stall at -grade parking lot will be replaced by 62 stall parking court and 88 stall enclosed parking garage. Off -site improvements will include public easement vacation and street narrowing of West Fifth Street adjacent to the project site.

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ui 1Ri r� i d
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cr fI'rn RrT r l
ril ' r 1 [1 rr M
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LOCATION

LOS ANGELES, CA
CLIENT

BRIDGE HOUSING

COMPLETION DATE
EXPECTED 2023
UNITS
180 (136 DU/AC)

SQUARE FEET
380,447 SQ FT/ 25,000 SQ FT RETAIL

CONSTRUCTION TYPE III,
100% AFFORDABLE
I'

ARCHITECTS

BRIDGE VERMONT & MANCHESTER

BOARDING
SCHOOL

IHOT A PART OF SCOP E I
Utilizing modular unit construction and a strategic combination of single and double loaded corridors, Vermont and Manchester's unit variation will be dramatically reduced and the constructability and efficiency of the building will be greatly increased. The facade is planar with strategic 'carve -outs' to allow for light into interior courtyards and provide an opportunity for a material and massing break. The open courtyards provide ample light to all units and allows catwalks to be naturally ventilated with a physical and visual connection to the open spaces. Breezeways on the podium will facilitate circulation from one end to the other without having to enter into the corridor. The adjacent parking structure will be 5 stories in height to allow for retail/grocer parking, school parking as well as Metro facility parking. At the ground level, vacating a portion of 85th street provides an opportunity to respect the existing grid by converting the street into a pedestrian plaza. This would create a visual and physical connection to the plaza and welcome the neighborhood into the project. The plaza has a much wider presence along Vermont Ave assisting with articulating the long urban edge while maintaining connection to the boarding school, the 6,000 s.f. restaurant fronting the garage and the 19,000 s.f. supermarket.

Financing Source Data

Recent Funding Source Data Summary
2019-2022 Orange County 9% Scoring
Highest OC awarded TB

78.15%
Average OC awarded TB

63.13%
Lowest OC awarded TB

43.08%
*2020 and older tiebreakers used a slightly different formula, those tiebreakers have been adjusted to match the current calculation Highest awarded off waiting list

65.90%
Average awarded off waiting list

37.43%
Lowest awarded off waiting list

22.60%
2022 SuperNOFA Results (based on self -scores)
IIG Only projects -Southern Region
Applied
13 Awarded
8 Awarded with less than 106 points
2 1 had Community -
Based Developer
priority
Lowest Score
91 Lowest Tiebreaker for less than 106 points

77.0%
IIG and MHP Southern Region
Applied
24 Not including senior
projects, nor non tax
credit projects
Awarded
0 Awarded with less than 106 points
0 Lowest Score
N/A
Lowest Tiebreaker for less than 106 points
N/A
2022 Round 2 and 2023 Round 1 (anticipated) Summary
2022 Round 2
2023 Round 1
Homeless Set -Aside; Minimum % PSH Awarded
49%
49%
Homeless Set -Aside; Minimum TB Awarded (119 points)
96%
82%
ELI/VLI Set -Aside; Minimum TB Awarded (119 points)
110%
122%
Coastal Pool*
79%
97%
*ran out of state credits in ELI/VLI in 2022; TBs are artificially low IIG Only projects -all regions
Applied
36 Awarded
21 Awarded with less than 106 points
8 Lowest Score

88.5 Lowest Tiebreaker for less than 106 points

59.0%
IIG and MHP-all regions
Applied
48 Not including senior
projects, nor non tax
credit projects
Awarded
1 1 had Community -Based
Developer priority
Awarded with less than 106 points
0 Lowest Score
111
Lowest Tiebreaker
111%

Sample Services Plan

COUNTYoFSAN MATEO 4i)
Supportive Services Plan (SSP) §112(c)
Contents
Executive Summary 3
Whole Person Care Background 5
Systems Approach to Supportive Services 6
Whole Person Care Success 8
Performance Measures 8
§112(d)(2) Outreach, Engagement and Retention 9
Tenant Outreach 9
Tenant Engagement 9
Retention Strategies 10
§112(d) (3) List of Required Services 10
(1) Assisting tenants to Medi-Cal and other benefits enrollment 10 (2) Case Management 10
(3) Peer Support Activities 11
(4) Support linking behavior health care 11
(5) Support linking to primary care services 11
(6) Benefits counseling and advocacy 12
(7) Basic housing retention skills 12
(8) Services for persons with co-occurring disabilities/disorders 12 Optional Services 13
(1) Recreational and Social Services 13
(2) Educational Services 13
(3) Employment Services 13
§112(d)(4) Transportation Plan 13
§112(d) (5) Services Competency 14
§112(d) (6) Estimated Itemized Budget 15
1 COUNTYoFSAN MATEO
Budget Narrative and Funding Commitments 16
§112(d)(7)Collaboration of Supportive Services and Property Management Staff 18 §112(d)(8) Communication Protocols 19
2 COU NTYoF SAN MATEO
Executive Summary
According to the U.S. Census, San Mateo County had a population of 718,451 in 2010 and its population is projected to grow by 27% by 2040. San Mateo County is home to major Silicon Valley business and employment hubs, tech firm headquarters, and educational institutions.

The County has and continues to experience tremendous growth in the local economy. The 2019 area median income for a four -person household is $136,800. While the booming economy has created opportunities, there are also troubling consequences. The rate of population growth far exceeds the county's housing production, putting immense strain on residents to find or maintain affordable housing. As of 2017, the county saw a vacancy rate of only 3%. The average rent is more than $3,000 a month, making San Mateo County one of the most expensive places to live in the country. Approximately 52% of renter households are rent burdened (spending more than 30% of their income on housing costs). The 2019 San Mateo County One Day Homeless County determined that 1,512 were experiencing homelessness, an increase of 21% from 2017.

Another significant challenge facing our community is how to provide access to quality, affordable health care for all residents. Despite the overall growth in the local economy and the rising area median income, many residents continue to experience significant health disparities.

Individuals with complex, chronic, and/or co -morbidity health conditions experience homelessness at higher rates — which only exacerbates their vulnerable health conditions — and regularly over utilize costly health services (e.g. emergency department stays).

In the face of these challenges, San Mateo County prides itself in being problem -solvers, highly innovative, strategic, collaborative, and pursuing creative solutions to address some of the most critical needs facing our community. In 2013, after the dissolve of Redevelopment Agencies, the County initiated the Affordable Housing Fund (AHF), recognizing the need for an ongoing, local funding source to facilitate the creation of new, permanent affordable housing development. In 2016, the County launched its Whole Person Care (WPC) pilot program with the vision of integrating the right services at the right time and the right place for the whole person across the continuum of care. Also, in 2016, the County made a commitment to end homelessness in the community by 2020 and created a strategic plan to achieve that goal. The Health Plan of San Mateo (HPSM), a critical partner in this effort, continues to be an innovative leader among health plans, creating special initiatives and programs to meet the housing needs of our community. HPSM understands that without stable housing, members are not going to maintain a level of health that will help them thrive.

The County's leadership and actions, especially within the past several years, has well - positioned the County to pursue critical funding opportunities such as Housing for a Healthy California; existing health and supportive services are funded and provided, partnerships with local homeless and supportive services partners are well -established, and the pipeline of new affordable housing projects continues to expand each year. Furthermore, the County is currently working to develop a county -wide master plan to strategically seek and utilize every funding source available to create healthy, stable housing. A master plan will allow the County 3 COU NTYoF SAN MATEO 1`
to shift away from taking reactive, crisis -based actions and instead, engage more tactical, effective, and cost -saving solutions to serve our all our community's needs.

San Mateo County Health is pleased to be the Lead Service Provider in an application for Housing for a Health California funding for the purposes for the development of Mercy Housing Middlefield Junction. HHC funding will not only facilitate the creation of new permanent supportive housing units for some of our most vulnerable residents, but to also leverage and catalyze our County's current efforts so that all residents can sustain fully healthy, independent, and prosperous lives in our community.
4 COU NTYoF SAN MATEO 1
Whole Person Care Background
While the Whole Person Care Pilots have now ended, the vision and many of the services and system infra -structure changes remain intact. The vision of San Mateo County Health's (County Health) Whole Person Care (WPC) pilot was to integrate the right services, at the right time, and the right place for the whole person across the continuum of care. WPC was designed to improve the health of high -risk, high -utilizing patients through the coordinated delivery of physical health, behavioral health, housing support, food stability, and other critical community services. WPC sought to establish culturally competent patient outreach, engagement, and care coordination as well as other supportive strategies necessary for complex clients who face substantial barriers to accessing and utilizing services appropriately.

One of the programs developed under the WPC pilot, Bridges to Wellness, remains operational through an alternative funding source. This program specializes in working with individuals experiencing homelessness who also experience health and behavioral health co -morbidities including mental health challenges and substance use disorders. This target population is generally unable to access services due to homelessness or lack of stable housing, behavioral health challenges and social determinants of health, primarily poverty, that affects nutrition, transportation and the ability to navigate complex systems of care. As a result, this population experiences high levels of recidivism to jail, psychiatric emergency, and the emergency department.

The Bridges to Wellness Team (BWT) serves the HHC target population by using a field -based, assertive outreach approach to locate and engage clients in the community wherever they may be, whether it's under a bridge, highway underpass, or shelters. BWT staff also receive real time alerts from County Health to locate clients in the emergency department. Additionally, the team collaborates with the Homeless Outreach Team (HOT) to locate hard to reach homeless individuals.

In addition to the Bridges to Wellness team, several other teams support clients who are eligible for Housing for Healthy California. These include the Integrated Medication Assisted Treatment team (IMAT), the Community Care Settings Pilot (CCSP) offered through the Health Plan of San Mateo (HPSM), Full Service Partnerships (FSP) provided by Caminar and Telecare and funded under the Mental Health Services Act (MHSA), as well as intensive to low intensity case management offered through several Behavioral Health clinics and community -based organizations.

The goal of services for these individuals is to provide flexible, individualized, culturally competent care coordination to improve health outcomes by establishing strong linkages to medical and behavioral health homes.
5 COU NTYoF SAN MATEO 40
Staff are selected both by professional qualification and experience which include experience with the homeless population with medical and or behavioral health issues, cultural competency, linguistic abilities, collaborative service delivery and utilization of evidence -based practices. BHRS and PHPP are able to offer staff training or orientation to the following evidence -based practices: Motivational Interviewing, Cognitive Behavioral therapy, Trauma Informed Care, Assertive Community Treatment and Wellness and Recovery Planning.

Systems Approach to Supportive Services
In order to provide supportive services to promote the long-term retention of housing, we propose to utilize a systems approach that brings together various existing supportive housing service providers, throughout County Health, in a centralized committee to assess the needs of each client. This centralized committee will assign each tenant to the most appropriate care team based upon level of need to maintain housing (Figure 1). Following the initial evaluation of need, regular reviews at 4 -6 -month intervals will be held to determine whether a higher or lower level of supportive services are necessary. This will allow us the flexibility to titrate services up or down to meet the needs of the tenant.
6 COUNTYoF SAN MATEO
Figure 1
San Mateo County Health Supportive Services
Continuum
Telecare
Highest
Intensity
Bridges to
Wellness
High intensity
Mental Health
Association
Mid -intensity
BHRS Clinic
based support
Low Intensity
Supportive
Housing Services
Augmented Coordinated
Entry System with BHRS &
Public Health, Policy and
Planning
Integrated
Medication
Assisted
Treatment
Team
Mid -intensity
Caminar
Low to high
intensity
support
Community
Care Settings
Pilot
Mid -intensity
7 COU NTYoF SAN MATEO `
County Health utilizes best practices in supportive housing services that include home visits and focus on supportive counseling and skill development utilizing the models of harm reduction, recovery -based services and the development of self -management skills. Services include but are not limited to;
• Conducting an initial evaluation and developing a housing retention plan • Linking and accessing needed resources/services such as benefits programs, employment, and education
• Financial management/budgeting
• Healthy shopping and nutrition
• Managing relationships with neighbors and landlords
• Managing self -care and Activities of Daily Living (ADL) • Household cleanliness
• Transportation accessibility
• Non -medical medication support
• Support in managing chronic illness
• Reducing social isolation through employment, education, and community engagement • Peer Support
• Case Management
• Benefits support
• Linkage to Primary Care and Behavioral Health
Whole Person Care Success
Our Whole Person Care initiative has been very successful in bringing together our various County Health programs as well as our CBO partners to create collaboration across the system of care. We plan to continue this work with the Housing for a Health California grant by partnering together to provide the health, behavioral health and supportive services the tenant needs to be successful. Attached (Exhibit A) is a success story that highlights the team -based approach that enabled Mr. Dixon to maintain permanent supportive housing and enabled him to go return to fulltime work. The providers listed in the story are employed by various divisions within County Health as well as community -based organizations. These partnerships allow us to provide the right care at the right time to enable persons with complicated needs to reintegrate back into the community and thrive.

Performance Measures
County Health utilizes several performance measures. However, for the purposes of evaluation the following measures and milestones will be used:
• Decrease in Emergency Department utilization from baseline • Increase in primary care usage (annually)
• Percentage of Housing for Healthy California households maintaining their housing for 6 months and 1 year
• Increase in self -management skills, as measured by the Patient Activation Measurement (PAM) tool
8 COU NTYoF SAN MATEO 40
§112(d)(2) Outreach, Engagement and Retention
Property management and service providers share a commitment to "Housing First" principles in the tenant application and selection process and delivery of supportive services for the Housing for Healthy California units at the development. The "Housing First" model will seek to move homeless individuals as quickly as possible into permanent supportive housing without any preconditions associated with participation in services, poor credit or financial history, poor or lack of rental history, criminal convictions unrelated to tenancy, or behaviors that indicate a lack of "housing readiness." With the singular goal of housing stability for its residents, both the developer and service provider will be aligned in efforts to provide housing as the first essential service to ending homelessness for individuals and families. With the supportive services immediately available upon move -in, residents will be engaged directly with efforts to stabilize housing and avoid a return to homelessness. Supportive services are voluntary, strengths - based, and flexible, integrated, individualized and are proactively offered to help tenants achieve and maintain housing stability; however, tenants are not required to participate in services as a condition of tenancy. Services will be individualized and titrated to the level and intensity of support the tenant needs in order to promote the tenant's health, support their personal development, and assist in the maintenance of housing. To engage and assist tenants in addressing behaviors that could lead to eviction, case managers are trained in and actively employ evidence -based practices for client engagement, including, but not limited to, Motivational Interviewing, Assertive Community Treatment/Full Service Partnership (FSP), Cognitive Behavioral Therapy (CBT), Trauma Informed Care, Harm Reduction, as well as Screening Brief Intervention and Referral for Treatment (SBIRT) and Medication Assisted Treatment (MAT).

Tenant Outreach
Tenant outreach will be welcoming and frequent. Supportive housing staff will communicate with tenants in person, through flyers, written information, posters in community areas, telephone messages, emails or texting. Staff will outreach to tenants in the manner that the tenant prefers. Staff will utilize client -centered communication and motivational interviewing techniques in their communications.

Tenant Engagement
To promote tenant engagement, services are geared towards creating a sense of community that is welcoming, comfortable for all, and integrated with the broader community. Staff will engage tenants in a client -centered, strength -based manner. Staff will work with tenants to identify the services and supports that will assist the tenant to be successful in maintaining optimum health and retaining their housing. Staff will make available the needed supports the tenants have identified. Encouragement and recognition of tenant progress will be provided. Staff utilizing motivation interviewing will work to engage tenants in services planning and operations. Tenant feedback will include 9 COUNTYoFSAN MATEO
satisfaction surveys to inform and improve services, building operations and property management.

Retention Strategies
Retention strategies will be based on "Housing First" principles. Education and support will begin at new tenant orientation. Encouragement and recognition of tenant behaviors that promotion retention will be given regularly. Regular communication will take place with the property management residential service coordinator and the case manager regarding any behavioral changes that might impact retention. Outreach to tenants will occur and supports will be provided with the goal of retaining housing.

Housing retention will include skill building in such independent living skills as: financial education including but not limited to budgeting, money management and financial literacy; unit maintenance and upkeep; safe food storage and preparation, meal planning, and grocery shopping; laundry; tenant rights and responsibilities; awareness and understanding of House Rules and lease requirements. Visits may take place in the individual's apartment or in group instruction and include activities such as cooking instruction, grocery shopping, transit orientation, etc. Tenants will also receive an annual living skills assessment with an individualized skill development plan if needed.

Frequent opportunities for service provider contact with tenants will support tenants in their transition from homelessness to housing stability. Services will be designed with the tenant to meet the client needs at any given time and will change as the client's needs and goals evolve. The service provider will conduct an initial needs assessment in independent living skills and how to be a good tenant with each tenant upon move -in and develop an individualized plan with each tenant for skill building and practice of new skills. §112(d) (3) List of Required Services
(1) Assisting tenants to Medi-Cal and other benefits enrollment Each tenant who is not enrolled in Medi-Cal or other benefits such as SSI/SSP will be assisted in applying for and securing medical benefits, CalFresh, and supplemental income including GA, SSI/SSP.

Benefit enrollment for Medical, Cal fresh is 0.3 miles from Middlefield Junction. Social Security is 1.7 miles. Bus fare is $1.00 each way.
(2) Case Management
Each tenant will be assigned to a case manager. The tenant will work with a case manager on a voluntary basis. Case management and care coordination will be flexible, strength - based, and individualized. Services can include assessment, referral and linkage, supportive
10 COU NTYoF SAN MATEO
counseling, psychoeducation, and advocacy. Case managers will coordinate with other team members and service providers to ensure seamless integrated care is received by tenant.

This service is offered on site. Availability M -F 8-5 with access to after hours when needed. (3) Peer Support Activities
Many existing supportive housing providers employ Peer Support Specialists to provide supportive services and these staff will bring their lived experience to the tenant.

Additionally, San Mateo County supports several peer -run organizations that provide a variety of support services including social and vocational activities as well as support groups and evidence -based practices including Wellness Recovery Action Planning (WRAP).

Case managers and peer support specialists will link clients to these services.

Peer Support activities are on site and in many in the community within a mile of Middlefield Junction.
(4) Support linking behavior health care
All tenants with a mental health need will be linked to a mental health clinician either through County BHRS or a community service provider. The range of mental health services includes, assessment, treatment planning and goal setting, crisis intervention, medication management and med monitoring, psychoeducation, psychosocial rehabilitation, individual and group therapy, and peer support groups. Evidence -based practices utilized by clinicians include CBT, Dialectical Behavioral Therapy, Motivational Interviewing, SBIRT, Interview Measure of Social Relationships (ISMR), and trauma informed treatment. Participation is voluntary and the frequency is based on a mutual agreement between the tenant and the treatment team.

Behavioral health is located 1 mile from Middlefield Junction. Bus fare is $1.00 HHC tenants who are members of the Full Service Partnership may receive these services on site if needed and requested by tenant.
(5) Support linking to primary care services
All tenants will be offered services to link with physical healthcare. Primary care, specialty medical services, and dental services are available through our County operated services as well as private community providers. Case Managers and the supportive housing providers will directly link tenants to primary care to ensure assignment to a medical health home.

Case managers will work closely with healthcare providers to ensure that healthcare needs are met in order to maintain a tenant's optimal health which is critical for housing retention.

A county operated primary care clinic is available at Fair Oaks Health Clinic which is 305 feet from Middlefield Junction. Hours are M -F 8am- 5p.m.
11 COUNTYoFSAN MATEO
(6) Benefits counseling and advocacy
All tenants will be offered an assessment of their current income and benefits. Supportive Housing providers will assist those who need to obtain benefits or who need advocacy in clarifying their benefits to link to the Human Services Agency. The Human Services Agency is

0.3 miles from Middlefield Junction. Hours are M -F 8am-5pm. (7) Basic housing retention skills
The tenants will be offered the services that focus on daily living skills that promote good tenancy and housing retention. These services will include an assessment of housing skills and knowledge, development of an individualized instruction plan. Money management and Representative Payee services can be offered if needed. Tenants will be assessed to determine tenant's skills and abilities for independent living and need for services prior to move in as well as regularly throughout the tenancy.
(8) Services for persons with co-occurring disabilities/disorders Property management and the service providers will work with tenants with physical disabilities to ensure that the apartment meets the physical needs of the tenant. All supportive housing providers have experience working with this population and will work closely with medical and behavioral health providers to assist tenants to address the interaction of mental health challenges, physical illnesses and disabilities that may affect their housing retention. We will work closely with property management to ensure that housing is accessible for those with mobility and sensory disabilities.

County Health contracts with several substance use providers. These providers offer residential and outpatient treatment. In addition, several of the providers in this collaboration have extensive experience in substance use services. All San Mateo County substance use programs are co-occurring capable, and trauma informed. All providers are trained in motivational interviewing and stages of change. Case managers will actively link tenants to these services should the tenant so choose.

El Centro de La Libertad offering substance abuse treatment is 1.6 miles away from the property and can be accessed through public transportation with a fare of $1.00. 12 COU NTYoF SAN MATEO 40
Optional Services
(1) Recreational and Social Services.

The city of Redwood City operates a Senior Center and daily luncheon site that is less than a quarter mile from Middlefield Junction. Eligible tenants will be introduced to the program and encouraged to participate if they like.

The City recreation department operates a variety of activities throughout the city Social activities are sponsored by community -based organizations under contract with County Health and include the Mental Health Association and Heart and Soul whose activities are within 1.5 miles of the property.
(2) Educational Services
San Mateo County has a long-standing supported education program operated as a collaboration between a community -based organization and the local community colleges.

Tenants interested in furthering their education will be linked to this service. We will ensure that tenants are introduced to this opportunity through presentations by the supported education provider as well as flyers and reminders by supportive housing case managers.

Supportive housing providers will also make tenants aware of other community opportunities for furthering their education through adult education and technical schools.

Redwood City adult education is .7 miles from Middlefield Junction. Bus service is $1.

College of San Mateo is 11.1 mile, also $1.00
(3) Employment Services
San Mateo County has three community -based organizations that provide supported employment services. Two of these agencies focus on persons with mental health challenges and one provider provides services to persons with any type of disability.

Tenants will be assessed for their interest in employment opportunities and linked to these supported employment providers. Tenants will also be provided with information on the existing opportunities for work through the Employment Development Department and other community employment resources.

Vocational Rehabilitation Services and California Club house are 5.5 miles away. They operate M -F 8-5. Bus transportation cost $1 each way.
§112(d)(4) Transportation Plan
Most supportive services will be provided on -site. However, for supportive services that take place off -site from housing, transportation services will be provided to and from each event not in walking distance of 0.5 miles. Services staff will also actively promote the use of public transportation by including local bus stops. (Sam Tans bus route 296 has a stop within 0.3 miles of Middlefield Junction) in their initial building tour for all new tenants and by teaching them how to use the public transportation options' web -based trip planners prior to offsite appointments. Individualized and group training will provide tenants with the skills and 13 COU NTYoF SAN MATEO
confidence required to safely travel on public transportation. The training will be designed to enhance independence through greater mobility options for tenants and provide tenants with essential skills, such as reading a bus/BART schedule, paying fares, boarding and exiting the bus/BART, making a transfer, knowing how to signal the driver to stop or for assistance, making judgments about safety and danger, and using appropriate social and communication skills.

Services staff will also encourage peer support programs that help tenants identify neighbors that can assist and/or accompany them on public transportation to ensure a positive and productive experience. The resident services coordinator/staff will be responsible for coordinating and providing any other transportation needs (non -services related) to all tenants.

Tenants will be assisted to receive discounted bus passes. §112(d) (5) Services Competency
(A) County Health is committed to ensuring the provision of quality and equitable services and supports for all cultural, racial, ethnic, gender and sexual minority groups who call San Mateo County home. County Health is guided by its Office of Diversity and Equity (ODE) which resides within County Health's BHRS division. The ODE's charge is to empower communities; influence policy and system changes; develop strategic and meaningful partnerships; and promote workforce development and transformation. County Health helps to implement this vision by recruiting and retaining qualified, diverse and culturally competent administrative, clinical, and support staff.

The ODE created County Health's policy titled Cultural Humility, Equity, Inclusion Framework; Implementation of Culturally and Linguistically Appropriate Services (CLAS) in Health and Health Care Standards which requires all staff to sign and review on an annual basis. Contract providers are also required to sign the policy or may sign a policy of their own creation that has been approved by ODE. ODE monitors and evaluates the implementation of the policy and provides ongoing education and training to support staff in their ability to deliver high quality culturally -competent services. ODE has staff that oversee the translation of documents, coach and monitor the work of the staff's cultural initiatives, survey staff on cultural needs, arrange or provide cultural training, create cultural competency requirement language for contracts, and promote the evolution of cultural competencies by highlighting unmet needs and emerging issues.
(B) County Health understands that effective communication practices are paramount to ensuring a client's optimum health outcome and therefore, clients will receive services in the language of their choice. Individuals with limited English proficiency (LEP) or sensory disabilities receive the same level of services as our non-LEP, sensory capable clients. All required County Health forms and educational materials are routinely made available in the threshold languages of English, Spanish, Tagalog, and Chinese. County Health has also identified Russian and Tongan as priority languages based on a regional assessment. County staff deliver services in the threshold languages through bilingual staff or through access to contracted interpreter/translation service providers. All translated documents are to be of equal quality 14 COU NTYoF SAN MATEO
and appropriate in the preferred language of the client and County Health Services Policy A.25 guides this process.

County Health has 21 documents that are available in the threshold languages. For example, these include but are not limited to: application for services and consent to treatment, confidentiality, privacy practices, medication consent, and change of clinician. Some documents are in other languages beside the threshold languages. For example, all the Notice of Action forms are in 8 different languages. Announcements of events and classes are available in the threshold languages and in the language that would be spoken at the event.

County Health provides American Sign Language (ASL) to clients who are deaf or hard of hearing. Due to limited ASL interpreters within our existing interpreter contract, County Health decided to hold a separate contract for the provision of ASL interpreters. The goal of this contract is to ensure staff receive requested ASL language support in a timely manner. All County Health facilities and the offices of the contracted providers are accessible to individuals with physical disabilities. Those with sight or auditory disabilities are accommodated through specialized contracts to meet the client need.
(C) Communication among services providers, property managers, and tenants will be linguistically and culturally appropriate as the client self identifies. County Health may offer training to property managers in order to ensure consistent affirming communication. Service providers and property managers will discuss and agree upon policies and procedures regarding communication in their regularly scheduled tenant review meetings. Detail on expectations and protocols for the facilitation of communication between service providers, property management, and tenants will be clearly outlined.
15 COU NTYoF SAN MATEO 40
Budget Narrative and Funding Commitments
The San Mateo County Supportive Services Plan for Housing for a Healthy California will follow the values and goals of the Whole Person Care Pilot by bringing together a number of partners, both county operated services as well as contracted services by Community Based Organizations, who will collaborate to provide to the right service at the right time to ensure successful permanent housing for the most vulnerable residents of San Mateo County. This team of providers all have far more than 5 years of experience directly serving the target population. This collaborative and flexible approach requires a creative budgeting framework which is not is not easily captured within the budget format provided in the application. To better understand our budget, we have listed the partners participating in this effort. These services are currently operational and will be leveraged for the Housing for a Healthy California Grant. Clients eligible and approved for housing through the augmented Coordinated Entry System involving the Center on Homeless, Public Health, Policy and Planning and Behavioral Health and Recovery Services will be assigned to the appropriate team who will then incorporate them into their supportive housing program.

List of Partners:

CBO Partners
Role
Funding Source
Brilliant Corners
Tenancy retention support —
Focus on promoting a positive
landlord/tenant relationship
County tax dollars and Health Plan
of San Mateo
Life Moves
Homeless outreach and location
services
Public Health Policy and Planning
and BHRS
Telecare Corp
Highest Intensity Supportive
Housing services
BHRS and Mental Health Service Act
Caminar
High to low intensity supportive
Housing Services
BHRS, Mental Health Services Act,
Short Doyle Medical
Mental Health Association
Mid intensity Supportive Housing
Services
, Mental Health Services Act, BHRS
Institute on Aging
Mid intensity Supportive Housing
Services
Health Plan of San Mateo
County Partner
Role
Funding Source
Bridges to Wellness, Public
Health — County Health
Outreach and engagement, high
intensity supportive Housing
Services
Public Health, Policy and Planning
Integrated Medication
Assisted Treatment,
Behavioral Health and
Recovery Services - County
Health
Mid Intensity Supportive Housing
Services
BHRS
16 COU NTYoF SAN MATEO 1
Mental Health Clinics,
Behavioral Health and
Recovery Services — County
Health
Low Intensity Supportive Housing
Services
Various State and local funding
sources
Whole Person Care Hub,
Public Health — County
Health
Identify appropriate referrals,
partner with Human Services
Agency Coordinated Entry
System to screen and approve
tenant referrals, assign
appropriate level of supportive
services, data analytics
Public Health, Policy and Planning
Center on Homelessness -
Human Services Agency
Manage Coordinated Entry
System, screen and approve
tenant referrals, assign
appropriate level of supportive
services
Various State and local funding
sources
Behavioral Health and
Recovery Services,
Administration — County
Health
Identify appropriate referrals,
partner with Human Services
Agency Coordinated Entry to
screen and approve tenant
referrals, assign appropriate level
of supportive services, Manage
CBO contracts
Various State and local funding
sources
Budget Narrative:

1. This budget assumes 12 HHC units with 12 adult individuals

2. Based upon our experience with the Whole Person Care population and the building design and mix, we anticipate that tenants with mid -range intensity needs will be housed. This assumes a case management staff to client ratio of 1:20. Level of service will vary depending upon the tenant need. In the initial phase of housing, some tenants will need intensive services and will be seen daily. Over time as tenants become more comfortable with their new housing and their clinical needs are better met, case management time will reduce to match the need of the client. For highly stable tenants, services may be provided on -site no less than monthly. However, in aggregate we anticipate an average of once weekly on -site visits. Hours of service available for mid- range intensity needs are generally Monday -Friday 8am-5pm. However, for those clients who may have after hour's needs, the county currently operates a warm -line as well as 24 hour on -call services.

3. Additional staffing to support the project includes a supervising social worker as well as registered nursing time. The supervising social worker provides oversite and supervision of the case manager to ensure that the appropriate clinical needs are met. The registered nursing time is used for medical consultation with the case manager as well as in -person visits for nursing triage needs.
17 COU NTYoF SAN MATEO 40
Housing First
Clients eligible and approved for housing through the augmented Coordinated Entry System (CES) involving the Center on Homelessness, PHPP, and BHRS will be assigned to the appropriate team who will then incorporate them into their supportive housing program.

Housing First practices (W&I Code section 8255) will be adhered to and include the following:

1. Tenant selection practices shall be done in conjunction with the local Coordinated Entry System and promote the acceptance of Applicants regardless to their sobriety or use of substances, completion of treatment, or agreement to participate in services;

2. Applicants are not rejected based on poor credit or financial history, poor or lack of rental history, or criminal convictions unrelated to tenancy, or behaviors that indicate a lack of "housing readiness";

3. Applicants are assisted in making application for tenancy and reasonable accommodation requests;

4. Supportive Services are flexible and voluntary and focus on housing stability, engagement, and problem solving over therapeutic goals; and

5. The lack of policies or practices regimenting daily activities or limiting privacy, visitors, or the individual's ability to engage freely in community activities, or to manage their own activities of daily living.
§112(d)(7)Collaboration of Supportive Services and Property Management Staff
Supportive services and resident services providers together with property owner and management staff (Project Partners) will work proactively and collaboratively to prevent evictions. All partners are supportive of early, consistent and compassionate intervention with clients who are out of or at risk of being out of compliance with their lease and/or are exhibiting signs of behavioral difficulties. County Health will offer Mental Health 101 training to housing development owners, property management, and resident services staff, including maintenance staff, that will provide an education of the depth and breadth of mental illness, as well as include other mental health related topics such as harm reduction/deescalating strategies and will address operational concerns such as when and how to report client behavioral concerns to supportive services staff. This approach is integral to avoiding escalating problems that lead to disruptions in the development and averting evictions.

Strategies to enhance communications and build relationships between the client and resident services staff will be implemented during the project. Onsite supportive services staff will work closely with property management and maintenance staff to ensure effective operations and to 18 COU NTYoF SAN MATEO 40
promote health, safety and improved quality of life for all residents and staff. Service provider(s) will be available to assist clients with promotion of lease compliance and successful tenancy, assistance in requesting and obtaining reasonable accommodations, implementing procedures to ensure clients receive accurate, appropriate, and timely information from the owner and/or property management.

Finally, partners will work together to find resolutions that avoid eviction of clients whenever possible. The frequency of client review meetings will vary according to each client's respective needs. The supportive service provider representative will meet with property management representative, individual case manager, and other staff as needed to discuss issues such as:
tenant behavior, tenant crises, planning for intervention to reduce eviction risks, service provision coordination and how to effectively address such issues. Participating staff will be trained in confidentiality and HIPAA regulations and conduct information sharing within those parameters. As tenants develop stability in the units, the meeting participants will schedule tenant review meetings accordingly.
§112(d)(8) Communication Protocols
A critical element of supporting tenants in maintaining housing is the communication and relationship between all the service providers and the property management staff. In order to achieve a high quality of life for all tenants and aid in housing retention, there is a need for appropriate role differentiation between property management and supportive services providers. Balance is achieved through clearly delineated roles, responsibilities, communications, policies, and procedures. As such, regularly occurring meetings and communications may include any items related to tenant notices served, behavioral issues and concerns with tenants, housing quality standards issues with tenants, and other service referrals. Initially, Project Partners will meet monthly to discuss the project to review any safety or policy related issues, funding and staffing issues, updates to coordination related policies and procedures, services updates, and project financial status updates. In the case of an emergency, whether personal to the tenant or to the housing property, property management will be directed to contact the tenant's case manager and/or the supervisor of the support team to notify them of the emergency. If attempts to reach these contacts prove unsuccessful, WPC has a centralized triage line that can provide assistance. With a clear delineation of roles and responsibilities between Project Partners, the goal of all communications will be to support tenants' optimum health outcomes and housing retention.

Furthermore, Project Partners, after entering into a formal agreement (MOU), will have access to certain confidential information regarding tenants and the other parties' operations related to this project. The Project Partners shall not disclose confidential information and/or material without the consent of the tenant or Project Partner unless such disclosure is authorized in this MOU or required by law; all HIPAA regulations apply to this project and will be incorporated into the MOU. Unauthorized disclosure of information will be considered a material breach of this MOU. Where appropriate, releases will be secured before confidential information is 19 COU NTYoF SAN MATEO
exchanged. Confidential information will be handled with the utmost discretion and judgment.

All staff delivering services at the Project Sites will receive training in confidentiality.

Project Partners will develop a release of information form for both HIPAA covered and other confidential information that allows sharing of information among County Health, Property Owner, Property Manager, and all Service Providers. The release of information (ROI) form will be created in a manner that empowers tenants to choose which information may be shared and will be included in the application packet. The Project Partners will provide tenant orientations that include a statement that the information provided by tenants at intake and during their stay will be used to assist tenants maintain their housing. 20 MHC Audited Financial Statements

Mercy Housing California
Consolidated Financial Statements
(With Supplementary Information)
and Independent Auditor's Report
December 31, 2020 and 2019
4•-,‘
CohnReznick'<
ADVISORY • ASSURANCE • TAX

Mercy Housing California
Index
Independent Auditor's Report
Consolidated Financial Statements
Consolidated Statements of Financial Position
Consolidated Statements of Activities
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Supplementary Information
Index of Consolidating Financial Information
Page
2 4
6 8
9 11
35 1

CohnReznick LLP
cohnreznick.com
Independent Auditor's Report
Board of Directors
Mercy Housing California
Report on the Financial Statements
CohnReznick0
ADVISORY • ASSURANCE . TAX
We have audited the accompanying consolidated financial statements of Consolidated Mercy Housing California, which comprise the consolidated statements of financial position as of December 31, 2020 and 2019, and the related consolidated statements of activities, changes in net assets, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated statements of financial position of Consolidated Mercy Housing California as of December 31, 2020 and 2019, and the consolidated changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
2 CohnReznick0
Other Matter
As discussed in Note 1 to the consolidated financial statements, Mercy Housing California is controlled by Mercy Housing, Inc., a nonprofit Nebraska corporation. Our opinion is not modified with respect to this matter.

Report on Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information on pages 36 through 104 is presented for purposes of additional analysis and is not a required part of the financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Charlotte, North Carolina
May 25, 2021
3 Mercy Housing California
Consolidated Statements of Financial Position
December 31, 2020 and 2019
2020 2019
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Accounts receivable, net
Due from affiliates, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable,
affiliates
Prepaid expenses and other assets
Total current assets
Property and equipment, net
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates, net
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Other assets, net
Total other long-term assets
$ 37,660,980 $ 40,187,466
3,376,397 3,205,429
17,178,797 16,402,160
2,162,999 3,314,958
10,226,914 4,940,077
62,786,884 53,079,001
9,750,000 12,259,450
63,745 53,182
37,729 204,167
265,271 292,439
2,895,946 2,367,988
146,405,662 136,306,317
1,624,376,010 1,397,013,894
84,268,711
11,085,000
405,000
221,004
13,875,365
2,087,649
2,099,966
6,904,605
19,877,159
79,695,176
12,185,000
525,000
221,004
12,414,800
1,647,882
2,145,849
6,962,601
16,184,483
140,824,459 131,981,795
Total assets $ 1,911,606,131 $ 1,665,302,006
4 Mercy Housing California
Consolidated Statements of Financial Position
December 31, 2020 and 2019
2020 2019
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable, net
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Commitments
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 66,181,669 $ 54,607,067
3,811,584 3,054,427
2,741,545 2,721,552
23,930 13,186
168,632,240 182,824,996
13,571,651 8,752,625
2,729,134 3,136,646
3,500,339 3,282,496
261,192,092 258,392,995
64,066,534
175,770
883,362,201
6,618,312
19,077,651
54,677,678
175,770
804,639,804
4,418,312
19,302,885
973,300,468 883,214,449
1,234,492,560 1,141,607,444
130,113,023 103,609,931
507,762,640 382,009,835
637,875,663 485,619,766
39,237,908 38,074,796
677,113,571 523,694,562
$ 1,911,606,131 $ 1,665,302,006
See Notes to Consolidated Financial Statements.
5 Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2020
Programs
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Release of restricted assets
Property Resident Housing
Operations Services Development
Total
Without Donor With Donor
Restrictions Restrictions
$ 84,609,478 $ $ - $ 84,609,478 $ 84,609,478 $
- 23,680,064 23,680,064 23,680,064
24,905 2,964,051 2,988,956 2,988,956
1,025,293 4,558,140 2,125,235 7,708,668 606,825
4,562,748 21,655,035 26,217,783 26,217,783
- 432,247 537,591 969,838 969,838
1,626,856 6,551 1,105,343 2,738,750 2,738,750
6,111,847 9,265 2,952,606 9,073,718 9,073,718
- - - 5,938,731
Total revenue 97,961,127
Expenses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
7,101,843
(5,938,731)
7,970,254 52,055,874 157,987,255 156,824,143 1,163,112
18,709,222 7,174,441 7,774,577 33,658,240 33,658,240
10,451,337 2,247,266 2,212,188 14,910,791 14,910,791
2,237,018 273,581 592,777 3,103,376 3,103,376
52,998,940 - 215,423 53,214,363 53,214,363
625,987 89,146 2,540,993 3,256,126 3,256,126
26,255,511 2,321 732,683 26,990,515 26,990,515
24,867,814 - 16,162 24,883,976 24,883,976
1,374,267 369,980 85,606 1,829,853 1,829,853
491,792 491,792 491,792
3,118,055 2,605,511 5,723,566 5,723,566
(1,171) - (1,171) (1,171)
(276,293) (214,788) (491,081) (491,081)
Total expenses 137,242,632
Excess (deficiency) of revenue over expense
Consolidated
Attributable to noncontrolling interest
(39,281,505)
(46,831,682)
13,274,790 17,052,924 167,570,346 167,570,346
(5,304,536)
35,002,950 (9,583,091) (10,746,203)
(314) (46,831,996) (46,831,996)
1,163,112
Excess (deficiency) of revenues over expenses attributable to Mercy Housing California $ 7,550,177 $ (5,304,536) $ 35,003,264 $ 37,248,905 $ 36,085,793 $ 1,163,112 6 Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2019
Programs
Property Resident Housing Without Donor With Donor
Operations Services Development Total Restrictions Restrictions Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Release of restricted assets
$ 75,435,830 $ $ $ 75,435,830 $ 75,435,830 $
15, 769, 807 15, 769, 807 15, 769, 807
34,760 2,402,594 2,437,354 2,437,354
125 2,046,537 2,353,406 4,400,068 859,819 3,540,249
993,825 216,480 1,210,305 1,210,305
510,053 595,974 1,106,027 1,106,027
940,261 6,135 1,155,843 2,102,239 2,102,239
9,848,383 16,854 6,433,631 16,298,868 16,298,868
1,785,846
Total revenue 87,253,184
Expenses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses
Excess (deficiency) of revenue over expense
Consolidated
Attributable to noncontrolling interests
4,982,173 26,525,141 118,760,498 117,006,095
(1,785,846)
1,754,403
15,590,434 6,129,749 6,188,042 27,908,225 27,908,225
10,448,056 1,432,255 3,504,377 15,384,688 15,384,688
2,460,783 148,245 663,288 3,272,316 3,272,316
45,927,067 193,512 46,120,579 46,120,579
43,238 96,145 1,573,514 1,712,897 1,712,897
24,523,421 2,974 281,243 24,807,638 24,807,638
21,606,187 41,546 21,647,733 21,647,733
318,385 28,644 111,359 458,388 458,388
649,650 649,650 649,650
3,503,438 1,376,723 4,880,161 4,880,161
3,363,958 (3,778,386) (414,428) (414,428)
124,281,529 11,341,450 10,804,868 146,427,847 146,427,847 (37,028,345) (6,359,277) 15,720,273 (27,667,349) (29,421,752) 1,754,403 (37,136,264) (314) (37,136,578) (37,136,578)
Excess (deficiency) of revenues over expenses attributable to Mercy Housing California $ 107,919 $ (6,359,277) $ 15,720,587 $ 9,469,229 $ 7,714,826 $ 1,754,403 See Notes to Consolidated Financial Statements.
7 Mercy Housing California
Consolidated Statements of Changes in Net Assets
Years Ended December 31, 2020 and 2019
Net Assets Without Donor Restrictions
Net Assets With
Controllinc Noncontrollinc Total Donor Restrictions Total Net Assets Balance, January 1, 2019
Contributions
Distributions
Syndication
Excess (deficiency) of revenues over expenses
Balance, December 31, 2019
Contributions
Distributions
Syndication
Other Transfers
Excess (deficiency) of revenues over expenses
Balance, December 31, 2020
$ 100,688,013 $ 289,385,352 $ 390,073,365 $ 36,320,393 $ 426,393,758 - 130,805,100 130,805,100 130,805,100
(31,250) (128,808) (160,058) (160,058)
(4,761,658) (915,231) (5,676,889) (5,676,889)
7,714,826 (37,136,578) (29,421,752) 1,754,403 (27,667,349) 103,609,931 382,009,835 485,619,766 38,074,796 523,694,562 - 173,125,541 173,125,541 173,125,541
(97,535) (270,739) (368,274) (368,274)
(270,001) (270,001) (270,001)
(9,485,166) - (9,485,166) (9,485,166)
36,085,793 (46,831,996) (10,746,203) 1,163,112 (9,583,091) $ 130,113,023 $ 507,762,640 $ 637,875,663 $ 39,237,908 $ 677,113,571 See Notes to Consolidated Financial Statements.
8 Mercy Housing California
Consolidated Statements of Cash Flows
Years Ended December 31, 2020 and 2019
Operating activities
Changes in net assets
Adjustments to reconcile changes in net assets to net cash provided by (used in) operating activities:

Depreciation and amortization
Amortization of debt issuance costs
Bad debts
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Forgiveness of debt
Land lease expense
Net changes in current assets and liabilities that provided (used) cash from operating activities
Accounts receivable and due from affiliates
Grants and pledges receivable
Prepaid expenses and other assets
Accounts payable and due to affiliates
Accrued interest payable
Deferred revenue and other liabilities
Tenant security deposits liability
Net cash provided by (used in) operating activities
Investing activities
Net change in restricted cash and restricted reserves
Net change in due from affiliates
Payment of tax credit fees
Additions to property and equipment
Net change in investments in limited partnerships
Net change in notes receivable
2020
2019
$ (9,583,091) $ (27,667,349)
53,214,363
1,273,004
1,829,853
(1,171)
(491,081)
(145,281)
135,895
(16,824,573)
1,038,322
(527,958)
1,036,859
9,419,593
(632,746)
217,843
39,959,831
46,120,579
1,042,387
458,388
(414,428)
(43,969)
309,399
(13,620,890)
4,965,628
(5,739)
159,943
8,052,434
(35,043)
270,284
19,591,624
2,380,804 4,993,078
(221,004)
(484,659) (876,829)
(280,325,024) (241,185,428)
51,314
297,485 564,190
Net cash provided by (used in) investing activities (278,080,080) (236,725,993) 9 Mercy Housing California
Consolidated Statements of Cash Flows
Years Ended December 31, 2020 and 2019
Financing activities
Proceeds from notes payable
Principal payments on notes payable
Due to affiliates
Debt issuance costs paid
Capital contributions from investor partners
Syndication costs to investor partners
Distributions to investor partners
Net cash provided by (used in) financing activities
Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash, beginning of year Cash, cash equivalents, and restricted cash, end of year Cash paid for interest, net of amounts capitalized of $4,188,748 and $6,442,055, respectively
Noncash investing and financing activities
Increase in property and equipment from capitalized amortization Capitalized amortization in property and equipment
Increase in property and equipment from capitalized land lease Capitalized land lease in property and equipment
Increase in property and equipment in accounts payable
Increase in accounts payable from property and equipment purchases Increase/(decrease) in property and equipment from notes payable Increase/(decrease) in notes payable from property and equipment Total noncash investing and financing activities
2020
2019
312,920,120 297,127,077
(239,866,207) (191,191,942)
(268,188)
(4,417,431) (6,055,553)
173,125,541 130,805,100
(270,001) (5,676,889)
(368,274) (160,058)
241,123,748 224,579,547
3,003,499
78,173,173
7,445,178
70,727,995
$ 81,176,672 $ 78,173,173
$ 13,710,133 $ 12,054,549
$ 827,634
(827,634)
3,644,137
(3,644,137)
11, 294, 900
(11,294,900)
956,828
(956,828)
$
$ 802,679
(802,679)
173,370
(173,370)
741,582
(741,582)
1,381,563
(1,381,563)
$
See Notes to Consolidated Financial Statements.
10 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 1 - Organization and summary of significant accounting policies Mercy Housing California (MHC) is a 501(c)(3) nonprofit corporation incorporated in 1988 for the purpose of developing affordable housing and providing services to low-income families, elderly, handicapped, homeless, potentially homeless, or otherwise disadvantaged persons in California.

These activities are considered to comprise the major programs of MHC. Accordingly, the consolidated statements of activities include three separate programs, as follows: property operations, resident services and housing development. MHC has been classified as an entity that is not a private foundation within the meaning of Section 509(a). The organization is affiliated with and under common management of Mercy Housing, Inc. (MHI), a nonprofit Nebraska corporation, which develops, finances and operates affordable program -enriched housing for families, seniors and people with special needs who lack the economic resources to access quality, safe housing opportunities. The operating results of the organization may be affected by common management with MHI.

MHC and its affiliates receive significant funding from federal, state, and local government subsidies in various forms, including low-income housing tax credits, low -interest loans, grants, and rent subsidies for qualifying very low, low, and moderate -income tenants.

Principles of consolidation
The accompanying consolidated financial statements include the accounts of MHC and its wholly owned subsidiaries (collectively, the Company). Additionally, the consolidated statements for the years ended December 31, 2020 and 2019 include the accounts of 65 and 60 limited partnerships, respectively, in which MHC has a controlling interest. The entities are included in the consolidation according to accounting principles generally accepted in the United States of America (US GAAP) which require that partnership accounts be consolidated for all limited partnerships which are deemed to be controlled by the Company. All intercompany transactions have been eliminated in consolidation.

The following entities are included in the consolidated financial statements of the Company:

Mercy Housing California (MHC)
Affordable Housing Initiatives
All Hallows Community
Marin Homes for Independent Living (Camino Alto)
Cantebria Senior Homes
Mercy Senior Housing Oxnard (Casa Merced)
Francis of Assisi Community
Gault Street Senior Housing
John W. King Senior Community
Maria B. Freitas Senior Housing Corporation
Marin Housing Corporation (Martinelli House)
Mercy Family Plaza Limited Partnership (Mercy Family Plaza) Mercy Gardens
Notre Dame Senior Housing Corporation
Oceana Senior Housing Corporation (Oceana Terrace)
Presentation Senior Housing Community
Russell Manor
Tierra Del Sol, Inc.

Garden Park Apartment Community
11 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Mercy Oaks Village
Mercy Commercial California

Florin Housing Corporation GP
Mercy Housing California 77, LP (Crossroad Gardens)
Mercy Housing California 80, LP, Consolidated
3425 Orange Grove, LLC
Mercy Housing California 81, LP (Courtyard Inn)
Mercy Mather Veterans 3 LLC
Mercy Housing California 79, LP (Mather Phase 3)
Mercy Housing California Senior Properties (MHCSP)
Bennett House, LP
Dorothy Day Community, LP
Junipero Serra, LP
Monsignor Lyne, LP
St. Andrew Community, LP
Villa Columba Mercy Riverside, LP
Mercy Housing Calwest (MHCW)
Mercy Housing California XXXIX, LP (Gleason Park)
Mercy Housing California XL, LP (Arlington Hotel)
Mercy Housing California XXXVIII, LP (East Leland Courts) Mercy Housing California XLII, LP (Boulevard Court)
Mercy Housing California XLIV, LP (1180 Fourth Street)
Third and LeConte Associates LP (Bayview Hill Gardens)
Caroline Severance LLC
Mercy Housing California XLIII, LP (Caroline Severance Manor) 7th & H GP, LLC
Mercy Housing California 47, LP (7th & H Street)
Madonna Senior Housing LLC
Mercy Housing California 53, LP (Madonna Residences)
Mercy Housing California 52, LP (School House Station -Vista Grande) 1100 Ocean Avenue Limited Partnership (1100 Ocean Avenue Apts.) 55 Laguna, LP (Open House Community at 55 Laguna)
Esparto Family Apartments, LLC
Mercy Housing California 54, LP (Esperanza Crossing)
Sunset Lane Apartments LLC
Mercy Housing California 55, LP (Trailside Terrace)
Mercy Housing California 56, LP (Jefferson Park Terrace) Coastside Senior Housing Limited Partners, LP
EI Monte Veterans Apartments LLC
EI Monte Veterans Apartments, LP
12 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
1028 Howard Street, LLC
Mercy Housing California 60, LP (Quinn Cottages)
Mercy Housing California XI, LP (Madison Place)
Mercy Eden House LLC
Eden House, L.P.

Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Baldwin Rose LLC, GP
Baldwin Rose LP
Mercy Housing California 78, LP (Mission Bay Block 6)
Mercy Housing California 75, LP (Dorothy Day)
Placentia Veterans Village, LLC GP
Placentia Veterans Village, LP
Mercy Housing California 82, LP (Treasure Island)
1064 Mission, LLC GP
1064 Mission Homeless Services Center LLC
833 Bryant, LLC GP
833 Bryant, LP (Tipping Point)
Villa de Vida GP LLC
Villa de Vida
1721 West Capitol LLC
Mercy Housing California 87, LP (West Capitol)
Mercy Housing California 84, LP (Bennett House)
1121 9th Street LLC, GP
Mercy Housing California 94 LLC, GP
Mercy Housing California 94, LP (Sherman Oaks)
Mercy Housing California 83, LP (Bermuda Gardens)
Sunnydale Block 6 Development CO LLC GP
Sunnydale Block 6 Housing Partnership, LP
Mercy Housing California 95 LLC GP (Long Beach GP)
Mercy Housing California 95, LP (Long Beach)
600 7th Street GP
Mercy Housing California 97, LP (600 7th Street)
Mercy HPSY Block 56 LLC
Hunters Point Block 56, LP
Middlefield Junction LLC GP
Mercy Housing California 96, LP (Middlefield Junction)
Mercy Housing California 99 LLC
Mercy Housing California 99, LP (North Auburn)
Mercy Housing California 100 GP
Mercy Housing California 100, LP (Whittier)
7789 La Mancha Way LLC
Mercy Housing California 90, LP (Capital Park)
Mercy Properties California
The Haven*
Leland House*
Osocales (McIntosh Mobile Homes)*
Richmond Hills*
Sycamore Center (Red Bluff)*
San Juan Housing Corporation
Kennedy Estates Housing Associates, LP (Kennedy Estates) Tahoe Valley Townhomes Associates, LP (Tahoe Valley Townhomes) * Not a legal entity but is included as a separate column in Supplementary Information. 14 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Basis of presentation and net assets
US GAAP requires the organization to report information regarding its financial position and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. Program service expenses must be segregated from management and general expenses. Contributions received are recorded as support without donor restrictions or with donor restrictions. Net assets without donor restrictions are those that have no external restrictions. Net assets with donor restrictions are those net assets for which use is limited by donors to a specific time period and/or purpose or for which use is restricted in perpetuity by donors.

Revenue recognition
Rent revenue, principally from short-term leases on apartment units and commercial space, is recognized as rents become due.

MHC recognizes gifts of cash and other assets as revenue without donor restrictions unless they are received with donor stipulations that limit the use of the donated assets. Gifts with restrictions are reported as revenue with donor restrictions. When a donor restriction expires, that is, when a stipulated time restriction ends or a purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restriction and reported in the statement of activities as net assets released from restrictions. Gifts of long-lived assets with restrictions and gifts of cash or other assets that must be used to acquire long-lived assets are reported as revenue with donor restrictions and are reclassified to net assets without donor restrictions on the placed in service date.

Unconditional promises to give are recorded as revenue at estimated net realizable value.

Contributions are recognized when cash, securities or other assets, an unconditional promise to give, or notification of a beneficial interest is received. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return, are not recognized until the conditions on which they depend have been substantially met. The federal and state contracts and grants are conditioned upon certain performance requirements and the incurrence of allowable qualifying expenses. Consequently, at December 31, 2020 and 2019 no conditional contributions have been received in advance, which would have not been recognized in the accompanying consolidated financial statements. Donor -restricted contributions whose restrictions are met in the same reporting period are reported as revenue without donor restrictions in the period of receipt.

Unconditional promises to give with payments due in future periods are discounted to present value and reported as revenue with donor restrictions.

Special event revenues are recognized when the event is held. Contributions received at or related to a special event are recorded as philanthropy in the Consolidated Statements of Activities.

Revenue from developer fees, management fee and other contractual services is recognized when control of the promised service is transferred to MHC's customers, in an amount that depicts the consideration MHC expects to be entitled to in exchange for those services. Revenue is not recognized unless collectability under the contract is considered probable, the contract has commercial substance and the contract has been approved. Additionally, the contract must contain payment terms, as well as the rights and commitments of both parties. 15 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Resident service fee revenue
The Company provides resident services on a contractual basis for owners of residential rental real estate. The Company is compensated for its services through a fixed monthly resident service fee.

Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed.

Development fees
Development fees are recognized ratably over the development period beginning with the admission of an equity partner, as units are delivered or based on the external construction costs incurred as a percentage of the total external construction costs expected, and concluding with the application for final allocation of tax credits. Development fees earned are paid from the project's equity and debt proceeds at the completion of the construction of the project. Any portion of the development fee not expected to be paid using contributions from the equity partner, such as out of cash flow from operations represents variable consideration.

The cumulative amount of development fees earned is updated at each reporting period based on the project's estimate of the variable consideration using best available information. Any difference between the gross amount of the project's developer fee payable and the estimate of variable consideration to which the developer expects to be entitled is eliminated in consolidation.

Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, deposits in money market accounts and certificates of deposit. All highly liquid instruments with maturities of three months of less when purchased are considered to be cash equivalents. All significant balances are insured by the Federal Deposit Insurance Corporation (FDIC).

Restricted cash
MHC and its subsidiaries receive funds that are subject to restrictions and are included in the restricted cash balance.
16 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Many MHC subsidiaries are required to make monthly deposits for replacement of project assets; such deposits are controlled by the Department of Housing and Urban Development (HUD) or other financing authorities. Certain subsidiaries are also required to make yearly deposits of surplus cash, if any, to residual receipts accounts. Use of residual receipt funds is contingent upon the prior written approval of HUD. Replacement reserves and residual receipts are included in the restricted cash balance in our consolidated statement of financial position.

Certain subsidiaries make required monthly escrow deposits for taxes and insurance in separate bank accounts. The mortgagee for the subsidiary controls these escrow deposits. These funds are included in the restricted cash balance on our Consolidated Statement of Financial Position.

Receipts by MHC subsidiaries from HUD and other financing authorities for construction of low- income housing projects are included in the restricted cash balance.

Investments
The Company invests cash in individual certificates of deposits. Securities with maturities greater than 90 days are recorded as investments. Debt instruments are recorded at fair value and realized and unrealized gains and losses are recorded as unrestricted operating income or loss. The Company's policy is to hold the investments to maturity.

Accounts receivable and bad debts
Receivables are charged against an allowance when they are deemed to be uncollectible.

Management's estimate of the allowance is subject to revisions and based on historical collection experience and a review of the current status of the accounts receivable. As of December 31, 2020 and 2019, the balance in allowance for doubtful accounts was $1,603,356 and $755,478, respectively.

Impairment of long-lived assets
In accordance with US GAAP, management continually monitors events and changes in circumstances, which could indicate that the carrying value of real estate exceeds its estimated undiscounted cash flows; the impairment to be recognized is measured by the amount of carrying value of real estate that exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019, respectively. Losses are included in the provision for impaired assets in the consolidated statements of activities.

Predevelopment project costs
The Company incurs costs in connection with properties it is considering for development as well as costs associated with properties in the initial stages of development. These costs include such items as market studies, purchase options, environmental study costs, legal and accounting costs.

Predevelopment project costs are capitalized and recorded as predevelopment project costs until such time as the project is either abandoned or becomes an approved project with independent funding sources. Predevelopment project costs are charged to operations at the time a potential project is no longer considered desirable or feasible.
17 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Allowance for loan losses
The Company allows for loans and notes receivable and accrued interest that may not be ultimately collected. The allowance for uncollectible loans is based upon prior experience and management's assessment of the collectability of existing specific loans. Individual loans are written off against the allowance when they are deemed uncollectible and increases to the allowance are charged to provision for loan losses.

Debt issuance costs
Debt issuance costs, net of accumulated amortization, are reported as a direct deduction from the face amount of the mortgage and notes payable to which such costs relate. Amortization of debt issuance costs is reported as a component of interest expense and is computed using an imputed interest rate on the related loan.

Tax credit fees and related amortization
Tax credit monitoring fees are amortized using the straight-line method over the fifteen -year tax credit compliance period.

Amortization expense for the years ended December 31, 2020 and 2019 was $300,225 and $222,079, respectively. Estimated amortization expense for each of the ensuing years through December 31, 2025 is as follows:

Year Amount
2021 $ 333,554
2022 280,651
2023 259,134
2024 246,785
2025 241,446
Investment in unconsolidated entities
MHC and its subsidiaries hold non -controlling interests in limited partnerships and other entities that are not consolidated. See Note 7 for additional information.

Due from and due to affiliates
Due from and to affiliates, net current, consists of advances or obligations to property affiliates.

These accounts represent a claim or future settlement of cash on a related party basis by affiliated entities. These accounts will eliminate at the top parent level of consolidated MHI.

Due from affiliates, net non -current, consists of the long-term portion of deferred developer fees for affiliated projects with ownership outside of MHC that will eliminate at the top parent level of consolidated MHI. See Note 12 for additional information.

Functional allocation of expenses
The consolidated statements of functional expenses present expenses by function and natural classification. Expenses directly attributable to a specific functional area of MHC are reported as expenses of those functional areas. A portion of shared general and administrative expenses that benefit multiple functional areas (indirect costs) are allocated across programs and corporate operations using a percentage method. Periodically, this methodology and the underlying assumptions are reviewed by management to ascertain continued relevancy and accuracy. 18 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Non -controlling interest in limited partnership
This amount represents the aggregate balance of Limited Partner equity interests in a non -wholly owned limited partnership that is included in the consolidated financial statements. The aggregate negative balances, if any, of Limited Partner interests prior to January 1, 2010 remain in the Company's net assets.

Net assets without donor restrictions
Net assets without donor restrictions are available for use at the discretion of the board of trustees and/or management for general operating purposes. From time to time the board designates a portion of these net assets for specific purposes which makes them unavailable for use at management's discretion. See Note 9 for more information on the composition of net assets without donor restrictions.

Net assets with donor restrictions
Net assets with donor restrictions consist of assets whose use is limited by donor -imposed, time and/or purpose restrictions.

MHC reports gifts of cash and other assets as revenue with donor restrictions if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction is accomplished, the net assets are reclassified as net assets without donor restrictions and reported in the consolidated statements of activities as net assets released from restrictions.

Some net assets with donor restrictions include a stipulation that assets provided be maintained permanently (perpetual in nature) while permitting Mercy to expend the income generated by the assets in accordance with the provisions of additional donor -imposed stipulations or a board approved spending policy.

See Note 10 for more information on the composition of net assets with donor restrictions.

Transfers of net assets
The following is a summary of changes or other transfers for the years ended December 31, 2020 and 2019:

Year Ended
December 31,
2020 2019
Number of consolidated entities added
Number of consolidated entities removed 1
Year Ended
December 31,
2020 2019
Other transfers increase (decrease)
Mercy Midtown, Inc.
1064 Mission, LP
$ (9,481,112) $
(4,054)
Other transfers $
9,485,166) $
19 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Deferred revenue
The Company provides loans to low income families for the purchase of single-family homes as part of the self-help opportunity program. The loans are forgivable over a 15 -year period providing that the families remain in the home. The loans represent additional proceeds to the Company in the event the families sell their homes prior to the end of the restriction period. Given the uncertainty and low probability of this event, the potential proceeds are recorded as deferred revenue and amortized over the restriction period.

The Company has received tax credit exchange (TCE) funds under the ARRA Exchange Program pursuant to Section 1602 of the American Recovery and Reinvestment Act of 2009 (Section 1602).

Section 1602 program funds are intended to assist with payment of development costs of LIHTC properties. In exchange for the funds received, the Company has agreed to operate the properties in accordance with Section 42. The Section 1602 funds are considered government assistance related to assets. The Company has recorded the Section 1602 exchange funds as a deferred liability which will be recognized as income on a straight line basis over the 27.5 year depreciable life of the buildings and improvements.

Developer and consulting fees
Developer and consulting fees are recognized during the construction period based on the percentage of construction completion. Any payments received during the construction period are recorded as deferred revenue until earned. Amounts not received by the completion date are recorded as a receivable. Developer fees that are earned during construction and paid for with investor equity or project debt are capitalized. The deferred developer fees paid from property operations are eliminated in consolidation.

Tenant subsidy payments
A portion of our rental income is in the form of subsidy payments from HUD under Section 8 of the National Housing Act. Tenants are subsidized based upon their level of income. Rent increases require HUD approval.

Income taxes
MHC and its consolidated nonprofit corporations are exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. All nonprofit corporations are required to file tax returns with the Internal Revenue Service (IRS) and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and there are no other tax positions which must be considered for disclosure. For the years ended December 31, 2020 and 2019, the Company did not identify any uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

The Company accounts for income taxes related to the taxable corporate subsidiary under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements.

Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reserve. 20 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
The limited partnerships in which the Company has a partnership interest have elected to be treated as a pass -through entity for income tax purposes and, as such, are not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The partnerships' federal tax statuses are based on their legal status as a partnership. Accordingly, the partnerships are not required to take any tax positions in order to qualify as a pass -through entity. The partnerships are required to file and do file tax returns with the IRS and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the partnerships have no other tax positions which must be considered for disclosure. Income tax returns filed by the entities are subject to examination by the IRS for a period of three years. While no income tax returns are currently being examined by the IRS, tax years since 2017 remain open.

The following entities are corporate subsidiaries of MHC that are not exempt from federal or state taxes:
• Mercy Commercial California
• MCC 1360, LLC
• MPCAL, LLC
Fair value
The carrying amounts of the Company's cash and cash equivalents, receivables, payables and accrued expenses approximate fair value due to the short-term nature of these instruments. The fair value of the Company's long-term notes receivable, due from affiliates and notes payable is assessed by management based on analysis of underlying investments and historical trends.

Impairment reserves are recorded as necessary. It is impracticable to estimate the fair value of the Company's financial guarantees because there are no quoted market prices for transactions that are similar in nature. See Note 17.

Use of estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and the accompanying notes. Actual results could differ from those estimates.

Reclassifications
Reclassifications have been made to the prior year balances to conform to the current year presentation.
21 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 2 - Liquidity and availability of resources
MHC's financial assets available within one year of the consolidated statements of financial position date for general expenditures are as follows:
2020 2019
Cash and cash equivalents, properties and corporate
I nvestments
Accounts receivable, net
Pledges receivable, net
Grants receivable
Restricted deposits and funded reserves
Current portion of notes and interest receivable
Total financial assets available within one year
Less:

Amounts unavailable to management due to restriction or board approval Board designated, property improvements
Management designated, capital expenditures
Net assets with donor restrictions
Total financial assets available to management for general expenditures and operating commitments due within one year of the Statement of Financial Position date
$ 37,660,980 $ 40,187,466
2,162,999 3,314,958
10,226,915 4,940,077
9,750,000 12,259,450
63,745 53,182
2,343,741 3,001,926
303,000 496,606
62,511,380 64,253,665
2,662,999
2,343,741
39,237,908
2,685,000
3,001,926
38,074,796
$ 18,266,732 $ 20,491,943
Amounts related to restricted deposits and funded reserves anticipated to be used more than one year after the statement of financial position date have been excluded from the above amounts. To help mitigate unanticipated liquidity needs, MHC can borrow from MHI, which has committed operating lines of credit totaling $3,000,000, which can be drawn upon at any time. Additionally, MHC has board designated net assets without donor restrictions that, with board approval, could be made available for current operations.

Note 3 - Pledges
Pledges and unconditional promises to give are recorded as revenue at estimated net realizable value based on historical trends. Pledges with payments due in future periods are discounted to present value and are reported as revenue with donor restrictions.

As of December 31, 2020, and 2019, pledges receivable totaled $23,625,365 and $24,674,250, respectively.
22 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
As of December 31, 2020, future pledge payments are as follows:

For the year ended December 31, 2021
2022
2023
2024
2025
Thereafter
Total pledges receivable
Discount and allowance
$ 9,750,000
14,250,000
24,000,000
(374,635)
Total pledges receivable, net $ 23,625,365
Note 4 - Grants receivable
Grants receivable consist of amounts due under grant awards for which revenue has been recognized without donor restrictions or with donor restrictions.

Grants receivable as of December 31, 2020 and 2019, $63,745 and $53,182, respectively, relate to resident service programs and infrastructure grants.

Note 5 - Notes and interest receivable
Notes and interest receivable consists of notes due from various unaffiliated organizations and individuals. Interest rates on the notes receivable range from 0 percent to 3.5 percent. Maturity dates range from 2022 to 2073. At December 31, 2020 and 2019, substantially all of the notes and interest receivable are collateralized by real estate. Allowances for notes receivable totaled $7,642,516 and $7,594,716, respectively, for the years ended December 31, 2020 and 2019.

For each loan, MHC conducts a risk analysis by reviewing the following criteria: financial condition, property performance, development plan, real estate development staff capacity and experience, strong sponsor/guarantor, payment of taxes and insurance, and low-income housing tax credit takeout. When the risk rating on a loan has been assessed as substandard the loan is deemed to not be performing as expected and a loss on a loan is considered possible and recorded if determinable. When the risk rating on a loan has been assessed as doubtful, it is considered to be a partially or fully uncollectible loan. MHC conducts a comprehensive review of all outstanding loans at least annually.
23 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 6 - Property and equipment
Property and equipment at December 31, 2020 and 2019 consisted of the following:

Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Total property and equipment
Less accumulated depreciation
Property and equipment, net
2020
$ 172,258,671
1,425,307,077
42,837,157
19,946,022
279,918,210
1,940,267,137
(315,891,127)
2019
$ 160,016,198
1,342,842,989
39,875,887
15,660,743
102,215,769
1,660,611,586
;263,597,692)
$ 1,624,376,010 $ 1,397,013,894
For the years ended December 31, 2020 and 2019, depreciation expense was $52,914,138 and $45,898,500, respectively.

Note 7 - Investments in unconsolidated entities
MHC and its subsidiaries hold investments in limited partnerships and other entities that do not consolidate. As of December 31, 2020 and 2019, MHC has invested in the following non - consolidating entities:
• 1101 Howard Street Associates (1101 Howard Street Apts.) • 2101 Telegraph Avenue Associates
• Centro Partners, LP
• Mercy Housing California X, LP (The Rose)
• Riverside/Leibrandt Partners, LP
• 1064 Mission, LP
• Sunnydale Development Company LLC
24 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
The Company's investment in unconsolidated entities is as follows:

Investment in unconsolidated entities as of January 1, 2019 Equity in project earnings (losses)
Investment in unconsolidated entities as of December 31, 2019 Distribution
Equity in project earnings (losses)
Other
$ 1,233,454
414,428
1,647,882
(47,260)
491,081
4,054,
Investment in unconsolidated entities as of December 31, 2020 $ 2,087,649 Note 8 - Notes payable
Notes payable consists of notes due to various affiliated and unaffiliated organizations and individuals that provide affordable housing and related services. Stated interest rates on the notes payable range from 0.0 percent to 9.75 percent. Debt issuance costs are also amortized into interest expense resulting in various imputed interest rates. Maturity dates range from years 2021 to 2079. At December 31, 2020 and 2019, substantially all of the notes payable are collateralized by real estate or are made to entities in which the Company has an ownership interest.

Future minimum principal maturities of notes payable are as follows:

For the year ending December 31, 2021
2022
2023
2024
2025
Thereafter
$ 182,203,891
47,162,057
8,732,964
15,543,901
7,077,494
832,599,789
Total maturities 1,093,320,096
Less debt issuance costs, net of accumulated amortization Less current maturities
Notes payable, less current portion
(21,135,692)
(182,203,891)
$ 889,980,513
As of December 31, 2020 and 2019, included in current maturities is $161,996,432 and $166,049,011, respectively, of short term construction debt that has committed sources of repayment including proceeds permanent debt and/or low income housing tax credit equity.

For the years ended December 31, 2020 and 2019, $23,129,726 and $20,106,983 of interest expense, respectively, was incurred and is included in interest and fees on the consolidated statement of activities.
25 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 9 - Net assets without donor restrictions
MHC's net assets without donor restrictions are comprised of undesignated and board designated amounts for the following purposes at December 31, 2020 and 2019:
2020 2019
Net assets without donor restrictions, controlling
Undesignated
Board designated, property improvements
Total net assets without donor restrictions, controlling Net assets without donor restrictions, noncontrolling
Note 10 - Net assets with donor restrictions
$ 127,450,024 $ 100,924,931
2,662,999 2,685,000
130,113,023 103,609,931
507,762,640 382,009,835
$ 637,875,663 $ 485,619,766
At December 31, 2020 and 2019, MHC's net assets with donor restrictions are restricted for the following purposes:

Subject to expenditure for a specified purpose:

Construction of affordable housing
Land for use in affordable housing
Resident services
2020 2019
$ 36,018,858 $ 36,304,796
1,770,000 1,770,000
1,449,050
Net assets with donor restrictions $ 39,237,908 $ 38,074,796 26 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 11 - Lease commitments
The Company leases office space and equipment under non -cancelable operating lease agreements that expire through 2118. Future minimum lease payments as of December 31, 2020 are as follows:

Office and
Equipment Property Land Total Operating
Leases Leases Leases
For the year ending December 31,
2021 $ 513,961 $ 419,331 $ 933,292
2022 526,416 391,465 917,881
2023 540,390 391,465 931,855
2024 552,350 391,466 943,816
2025 517,429 391,466 908,895
Thereafter 1,822,543 27,446,910 29,269,453
Total future minimum lease payments $ 4,473,089 $ 29,432,103 $ 33,905,192 Lease expense for operating leases for the years ended December 31, 2020 and 2019 was $516,054 and $292,566, respectively. As of December 31, 2020, ground leases at eight projects have been prepaid and are amortizing over the related lives through 2115. Prepaid leases as of December 31, 2020 and 2019 were $16,231,952 and $12,668,316, respectively, and are included in other assets, net.

Note 12 - Related party transactions
The Company has significant related party transactions with affiliates. It provides a considerable amount of funding in connection with the development of projects. It also provides development services, fund raising assistance, resident services and administrative services. In certain instances where individual properties may be experiencing cash flow difficulties, the Company provides the property with an advance of funds.

Due from affiliates and notes and interest receivable, affiliates Due from affiliates, net and notes and interest receivable, affiliates consist of development loans and advances to property affiliates. Development loans and advances are generally collateralized with real estate of the funded property. As discussed previously, many of these loans and advances do not require payments until after the scheduled maturity of the related first mortgages. Interest payments generally are subject to available cash flow. In some cases, loans are required to be repaid earlier. This usually occurs in situations where the underlying source of the loan is required to be repaid earlier as well.

Development fee income
Generally, all development fee income is earned in connection with affiliated entities. Development fees which are paid from operating cash flows from affiliated entities are eliminated in consolidation.

Consulting fee income
The Company earns consulting fee income by providing property development services to affiliates. 27 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 13 - Restricted property reserves
Operating reserves
The Company maintains an operating reserve for the purposes of meeting operating expenses in excess of operations for any given year.

Other reserves
The Company maintains other reserves for the purpose of paying insurance, taxes, annual audit fees, and various other capital needs purposes.

Escrow deposits
In accordance with certain regulatory agreements, the Company is required to establish and maintain a tax and insurance escrow. In other instances, lenders and/or limited partners have prefunded escrow accounts to be used to pay for construction costs.

Restricted reserves and escrow deposits are as follows:

December 31,
2020 2019
Replacement reserves
Operating reserves
Residual receipts reserves
Bond investment reserves
Other reserves
Escrow deposits
Escrow deposits - construction
$ 19,087,471 $ 16,620,424
27,582,254 24,489,203
1,668,072 1,597,216
329,029 3,505,151
23,686,462 23,793,807
8,670,076 7,871,571
3,245,347 1,817,804
Total reserves $ 84,268,711 $ 79,695,176
28 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 14 - Consolidated statements of cash flows
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated statements of financial position that sum to the total of the same such amounts in the statements of cash flows.

As of December 31, 2020
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Less: non -qualified restricted cash
Investments
Restricted property reserves
Less: non -qualified restricted cash
Long-term investments
Long-term investments, restricted
Total cash, cash equivalents, and restricted
cash shown in the consolidated statements of
cash flows
As of December 31, 2019
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Less: non -qualified restricted cash
Investments
Restricted property reserves, long term
Less: non -qualified restricted cash
Long-term investments
Long-term investments, restricted
Total cash, cash equivalents, and restricted
cash shown in the consolidated statements of
cash flows
$ 17,178,797
(3,394,297)
84,268,711
(71,566,915)
$ 16,402,160
(8,460,693)
79,695,176
(68,881,323)
$ 37,660,980
3,376,397
13,784,500
2,162,999
12,701,796
11,085,000
405,000
$ 81,176,672
$ 40,187,466
3,205,429
7,941,467
3,314,958
10,813,853
12,185,000
525,000
$ 78,173,173
Amounts included in restricted cash are comprised of security deposits held in trust for the future benefit of tenants upon moving out of the property and other reserves as required by regulatory authority and the partnership and/or operating agreements. 29 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Note 15 - Guarantees
MHC enters into agreements with certain limited partnerships or their affiliated general partners whereby MHC guarantees to loan funds to the partnerships in the event that the partnerships incur operating deficits as defined in the respective partnership agreements or fail to meet their current financial obligations. These agreements expire at various times from 2020 through the terms of the underlying partnership or debt agreements. Loans made pursuant to these guarantees are generally interest -free and unsecured. The maximum potential amount of future payments under these guarantees is equal to the amount guaranteed to the partnerships under the tax indemnification agreements discussed below.

MHC also enters into agreements with certain limited partnerships and limited liability companies or their affiliated general partners or members whereby MHC offers tax indemnification in the event of LIHTC recapture. MHC's potential liability under these agreements is dependent upon IRS audits and final letters of determination of the limited partnerships' qualified basis in tax credit properties.

Management is not aware of any known liability for tax credit recapture. The maximum potential liability under these guarantees as of December 31, 2020 is $1,055,833,750 relating to fifty-seven limited partnerships. MHC has not been required to fund any amounts under these guarantees and has not recorded any liabilities associated with these guarantees.

MHC provides guarantees to certain lenders who provide financing for the acquisition and construction of low-income housing projects developed by certain limited partnerships. Under these guarantees, MHC provides assurance of project completion and provides repayment guarantees for the associated loans. The guarantees terminate when construction is complete and permanent financing repays the construction loans. As of December 31, 2020, MHC had provided guarantees on sixteen construction loans of $509,337,128 of which $186,284,329 was outstanding.

Note 16 - Commitments and contingencies
Grant and property use restrictions
Many of the properties owned and operated by the Company were developed using funds provided by grants and restrictive, low interest rate loans. The terms of these loans restrict the use of the property and generally require it be rented to low-income qualified tenants for the period of the grant or related loan term. Failure to comply with the terms of the grant or the loans would result in a requirement to repay a portion or all of the proceeds received.

Rental assistance contracts
Several properties owned by or affiliated with the Company have entered into rental assistance contracts with HUD. These contracts have various terms and require the affiliate projects to operate as low-income housing properties and to obtain HUD approval of all rent increases.

Surplus cash and residual receipts
Certain properties owned by the Company are subject to HUD regulatory agreements, which restrict the use of the property and limit the use of project cash. Under these regulatory agreements, many of the subsidiaries are precluded from receiving any distributions of operating cash. A surplus cash calculation is required to be prepared annually and any surplus cash, as defined, is required to be deposited in a residual receipts account controlled by HUD. 30 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
Litigation
MHC and its subsidiaries are named in claims and legal actions in the normal course of its business. Based upon the opinion of counsel, management believes the outcome of such matters will not have a material adverse effect on the financial position or changes in the net assets of the Company.

Construction contracts
The Company has entered into construction contracts with various third party contractors to construct and rehabilitate projects in the original amount of $559,410,845 and $641,804,114 as of December 31, 2020 and 2019, respectively. During 2020 and 2019 change orders were $59,690,839 and $41,208,450, respectively. As of December 31, 2020 and 2019, $49,188,948 and $37,824,049 remains payable, respectively, which includes retainage payable of $20,715,667 and $22,588,767, respectively, and is included in accounts payable and accrued expenses.

Note 17 - Fair value
The accounting standard for fair value measurement and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. The accounting standard was applied to the Company's financial assets and liabilities effective January 1, 2008, and to certain non -financial assets and liabilities effective January 1, 2009. Fair value is defined by the accounting standard for fair value measurement and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value the Company uses when measuring fair value:
• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access; • Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and
• Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity's own assumptions as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety. 31 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2020 and 2019
The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of December 31, 2020:

Level 1
Level 2 Level 3 Total
Money market mutual funds $ 12,435,423 $
$ $ 12,435,423
Certificates of deposit $ 50,086,679 $ - $ - $ 50,086,679 The following table presents the financial assets and liabilities that the Company measured at fair value on a recurring basis as of December 31, 2019:

Level 1
Level 2 Level 3 Total
Money market mutual funds $ 21,208,393 $
$ - $ 21,208,393
Certificates of deposit $ 60,165,997 $ - $ - $ 60,165,997 On a recurring basis, the Company measures its money market mutual funds and Bank Certificates of Deposit (CDs) at their estimated fair value. In determining the fair value of the money market mutual funds and certificates of deposit, the Company uses quoted market prices and other relevant information generated by market transactions.

Note 18 - Risks and uncertainties
The following important factors could adversely impact the Company. These factors could cause actual results to differ materially from any forward -looking and other statements that were made in periodic reports, news releases, annual reports and other written reports or communication.

In early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. As a result, events have occurred including mandates from federal, state and local authorities leading to an overall decline in economic activity which could result in a loss of lease revenue and other material adverse effects to the Company's financial position, results of operations, and cash flows.

We are not able to estimate the length or severity of this outbreak and the related financial impact.

The future impact of the outbreak is highly uncertain and cannot be predicted and there is no assurance that the outbreak will not have a material adverse impact on the financial health. The extent of the impact, if any, will depend on future developments, including actions taken to contain the coronavirus. Management plans to adjust its operations accordingly and will continue to assess and monitor the situation as it evolves. If the length of the outbreak and related effects on the operations continue for an extended period of time, the Company may have to seek alternative measures to finance operations. There is no assurance these measures will be successful.

Changes in the current economic and credit market (e.g., a rise in inflation and/or interest rates) environment could increase the cost of capital or limit the ability to access capital. Failure to comply with covenants and conditions imposed by the agreements governing the Company's indebtedness could restrict future borrowing or cause debt to become immediately due and payable. Failure to renew existing loans could impact working capital, capital expenditures, acquisitions, debt service or other business needs.

The Company and its subsidiaries invest in assets consisting of CDs and money market funds which invest in CDs, commercial paper, US Treasury bills, US Agency bonds, notes, and repurchase agreements. Investment policy and guidelines are established by the Finance Committee of the board of trustees. These investments are exposed to various risks, such as interest rate, market and credit. Due to the level of uncertainty related to changes in interest rates, market volatility and credit risks, it is at least reasonably possible that changes in these risks could materially affect the fair value of investments reported in the consolidated statements of financial position as of December 31, 2020. The investment policy and guidelines consider liquidity and risk for each entity and each pool of assets and attempt to diversify asset classes to mitigate risks over the applicable time horizons.

Increased development costs, supply and labor shortages, entitlement delays, uninsured losses from natural disasters and other factors may negatively affect the future results of the Company.

Property operations and development are subject to warranty and liability claims that can be significant.

Note 19 - Subsequent events
Events that occur after the 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 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 Company through May 25, 2021 (the date the consolidated financial statements were available to be issued) and concluded that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the consolidated notes to the financial statements other than as discussed in Note 18. 33 Supplementary Information

Mercy Housing California
Index of Consolidating Financial Information
Mercy Housing California
Mercy Housing California Senior Properties
Mercy Housing Calwest
Mercy Properties California
San Juan Housing Corporation
Page
36 54
57 99
102
35 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Marin Homes for Mercy Senior
Mercy Housing Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi Gault Street Senior California Initiatives Community (Camino Alto) Homes (Casa Merced) Community Housing Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 9,059,384 $
175,826
2,162,999
5,684,170
85,614,100
9,750,000
53,182
37,729
6,162,423
283,462
118,983,275
3,060,518
1,980,087
489,311
9,559,330
(1,049, 043)
$ 158,606 $ 65,766 $ 5,463 $ 5,976 $ 469,972 $ 30,763
12,595 8,744 14,892 12,757 15,033
- 150 - 28,142 10,294
9,257
18,468
4,320 3,099
1,645
4,996
8,775 10,767 10,130 7,637
198,926 87,605 34,371 30,508 498,114 68,723
164,430 389,000 20,827 323,400
4,021,595 2,278,878 5,280,372 4,266,421
1,264,863 184,927 19,879 92,485
(3,204,572) (2,082,840) (3,007,144) (3,399,912)
417,517
4,681,219
75,814
(2,859,469)
14,040,203 - 2,246,316 769,965 2,313,934 1,282,394 417,517 1,897,564 356,506
11,085,000
405,000
17,472,759
13,875,365
(1,625,447)
2,077,966
34,175,718
330,753
77,822,867 330,753
1,368,290 633,186
1,368,290 633,186
$ 210,846,345 $ 330,753 $
64,629 198,258
1,368 201,757
479,657
64,629 198,258 481,025 201,757
3,813,532 $ 1,490,756 $
2,412,934 $ 1,511,160 $
1,396,656 $ 2,168,044
36 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Marin Homes for Mercy Senior
Mercy Housing Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi Gault Street Senior California Initiatives Community (Camino Alto) Homes (Casa Merced) Community Housing Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
$ 3,456,140 $
799,505
65,700
599,745
13,488,199
1,443,490
2,179 $
88,092
19,852,779 90,271
60,000
8,570,000
464,136
800,454
363,278 $ 163,857 $
9,763
14,174 7,936
71,963 35,508
44,260 $
6,916
120 2,683 1,949
12,091 8,244 14,025
80,639 $
32,000
689
12,260
461,626 227,991 67,150 125,588
3,094,195
9,894, 590 3,094,195
1,602,692
2,520
1,602,692 2,520
29,747,369 90,271 3,555,821 1,830,683 69,670 125,588
8,500 $ 54,812
1,142
14,335
8,500 70,289
8,500 70,289
142,659,686 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 2,097,755 142,659,686 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 2,097,755 Net assets with donor restrictions 38,439,290
Total net assets
Total liabilities and net assets
181,098,976 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 2,097,755 $ 210,846,345 $ 330,753 $ 3,813,532 $ 1,490,756 $ 2,412,934 $ 1,511,160 $ 1,396,656 $ 2,168,044 37 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing John W. King Senior Housing Corporation (Mercy Family Housing Corporation Presentation Senior Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Housing Community Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 28,362 $ 131,003 $
28,089 21,851
29,548 300
4,324 5,046
8 $ 209,107 $
37,834
20,079
35,482 $ 6,255 $ 39,935 $ 17,956
6,648 26,883 15,407 38,995
68 - 10,000
451 3,920 2,558 6,093
29,923 17,086 8,004 5,923 16,358 10,893
120,246 175,286
1,084,968 785,749
13,730,004 6,231,784
288,531 211,324
(9,618,072) (5,292,687)
5,485,431 1,936,170
654,499 227,693
31,788
8 275,024 48,572 53,416 78,793 94,832
4,620,398
1,037,824 95,609 2,000,000 400,000 1,797,674
1,638,427 3,933,700 8,634,705 3,738,434 14,277,815
141,334 79,530 294,266 232,867 590,464
(2,324,677) (2,674,412) (7,370,219) (3,568,945) 10,786,997) 492,908 1,434,427 3,558,752 802,356 5,878,956
634,490 88,975 448,252 175,394 1,370,724
654,499 227,693 4,620,398 634,490 88,975 448,252 175,394 1,370,724 $ 6,260,176 $ 2,339,149 $ 4,620,406 $ 1,402,422 $ 1,571,974 $ 4,060,420 $ 1,056,543 $ 7,344,512 38 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing John W. King Senior Housing Corporation (Mercy Family Housing Corporation Presentation Senior Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Housing Community Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 115,029 $ 178,622 $ 3,148 $ 33,965 $ 69,037 $ 212,832 $ 111,601 $ 104,603 11,726 - - 18,727 8,019 - - 184
2,440 -
156,920 -
274 364 184 809 590 242 794
26,834 21,335 37,337 6,150 26,183 14,906 38,495
153,863 200,321 3,148 249,573 84,015 239,605 126,749 144,076 633,541 970,066
263,176 1,060,319 618,235
2,230 1,473 1,142 1,568 997
2,230 1,473 263,176 1,695,002 1,568 1,589,298
156,093 201,794 3,148 512,749 1,779,017 241,173 1,716,047 144,076 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 $ 6,260,176 $ 2,339,149 $ 4,620,406 $ 1,402,422 $ 1,571,974 $ 4,060,420 $ 1,056,543 $ 7,344,512 39 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Garden Park
Apartment Mercy Commercial Central Coast
Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Village California MPCAL, LLC MCC 1360 LLC Housing Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
$ 36,038 $ 2,479 $ 287,628 $ 14,084 $ 317,494 $ 57,217 $ $ 37,481 21,086 22,910 7,351 22,995 - 5,060
10,289 - -
1,298 3,593 28,070 1,696 247,977 163,760 -
- 57,623 - 3,196,572 43,318
15,361 26,081 7,290 17,657 18,294 38,287
73,783 65,352
2,299
330,339 56,432 641,388 259,264 3,196,572 88,158
242,906 1,213,204 596,783 9,960 5,845 211,256
5,705,482 11,891,910 5,230,128 7,840,975 325,339 2,586,820 661,257 388,365 31,415 63,368 91,893 - - 13,971
(5,074,713) (5,999,965) (2,548,904) (4,180,888) (234,559) (419,080) (413,242) 1,262,040 7,136,564 3,341,375 3,761,940 90,780 2,173,585 473,242 548,907
598,158 1,121,462
221,602 881,778
356,178 87,946
45,981
(189,489)
Total other long-term assets 548,907 598,158 1,121,462 221,602 881,778 402,159 - (101,543) Total assets
$ 1,884,730 $ 7,800,074 $ 4,793,176 $ 4,039,974 $ 1,613,946 $ 2,835,008 $ 3,196,572 $ 459,857 40 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Garden Park
Apartment Mercy Commercial Central Coast
Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Village California MPCAL, LLC MCC 1360 LLC Housing Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 57,220 $ 77,548 $ 83,163 $ 47,504 $ 24,745 $ 7,977 $ (833) $ 10,836 11,778 1,476,921 146,670 10,000 2,985,535 18,868 54,167 - - - 268,081 - 66
- 27,218 1,762
96,934 - -
3,006 10,856 29,332 843 16,272 -
20,585 21,682 6,847 22,136 97,045 33,000 4,608
92,589 1,683,941 266,012 80,483 3,123,597 355,144 53,334 17,272 245,215 - 1,229,767 79,779 146,289
- 175,770
356,622 (8,414) 3,081,773 480,221 2,737,498 217,607
- - - - 180,000
563 293,420 394,839 -
602,400 (8,414) 4,311,540 560,000 293,420 3,132,337 719,666 694,989 1,675,527 4,577,552 640,483 3,417,017 3,487,481 53,334 736,938 1,189,741 5,325,929 215,624 3,399,491 (1,803,071) (652,473) 3,143,238 (277,081) 1,189,741 5,325,929 215,624 3,399,491 (1,803,071) (652,473) 3,143,238 (277,081) 798,618
1,189,741 6,124,547 215,624 3,399,491 (1,803,071) (652,473) 3,143,238 (277,081) $ 1,884,730 $ 7,800,074 $ 4,793,176 $ 4,039,974 $ 1,613,946 $ 2,835,008 $ 3,196,572 $ 459,857 41 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Apts.) Consolidated Properties Community) Needs 1500 Page) Mercy Midtown Inc. Corporation GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
$ 153,868 $ 295,318 $
57,353 52,016
811 -
(879)
30,319
3,503
17,099
241,472 367,936
438,540 1,560,000
18,759,635 3,776,013
433,582 31,310
(5,857,433) (1,746,266)
13,774,324 3,621,057
847,532 702,594
40,367
1,273,193
2,377,000
(2,377,000)
$ 442,492 $
73,994
11,924
17,359
50,013
$ 31,332 $
7,860
78,174
16,884 41,225
595,782 16,884
1,168,786
37,414,135
526,234
(5,661,781)
6,992
124,358 41,225
553,919
9,588,685
88,093
(1,176,023)
33,447,374 9,054,674
614,535 763,279
35,941
(13,803)
2,347,800
(2,347,800)
21,581
(7,548,857)
Total other long-term assets 887,899 702,594 1,273,193 650,476 (13,803) 784,860 (7,548,857) Total assets $ 14,903,695 $ 4,691,587 $ 1,273,193 $ 34,693,632 $ 3,081 $ 9,963,892 $ $ (7,507,632) 42 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Apts.) Consolidated Properties Community) Needs 1500 Page) Mercy Midtown Inc. Corporation GP Liabilities
Current liabilities
Accounts payable and accrued expenses $ 99,942 $ 73,258 $ 1,641 $ 141,179 $ 2,780 $ 45,941 $ $ (311) Due to affiliates 30,746 15,992 11,911 22,884 - 48,577
Accrued interest 3,900 -
Accrued interest, affiliates
Current portion of notes payable 84,760
Current portion of notes payable, affiliates -
Deferred revenue and other liabilities 4,180 4,925 7,477 1,212 Tenant security deposits 54,992 51,516 73,494 6,779
Total current liabilities 189,860 234,351 13,552 222,150 25,664 53,932 48,266 Long-term liabilities
Due to affiliates - - -
Accrued interest 3,658,036 1,256,817 253,169
Accrued interest, affiliates -
Notes payable, less current portion, net 7,250,832 3,755,268 19,025,017 3,569,971 Notes payable, less current portion, affiliates - 2,377,000 - Deferred revenue and other liabilities 2,968 1,425 -
Total long-term liabilities 10,911,836 5,013,510 21,655,186 3,569,971 Total liabilities 11,101,696 5,247,861 13,552 21,877,336 25,664 3,623,903 48,266 Net assets
Net assets without donor restrictions, controlling 3,801,999 (556,274) 1,259,641 12,816,296 (22,583) 6,339,989 (7,555,898) Net assets without donor restrictions, noncontrolling - - - - - - - Total net assets without donor restrictions 3,801,999 (556,274) 1,259,641 12,816,296 (22,583) 6,339,989 (7,555,898) Net assets with donor restrictions
Total net assets 3,801,999 (556,274) 1,259,641 12,816,296 (22,583) 6,339,989 (7,555,898) Total liabilities and net assets $ 14,903,695 $ 4,691,587 $ 1,273,193 $ 34,693,632 $ 3,081 $ 9,963,892 $ $ (7,507,632) 43 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Consolidated
California 77, LP Mercy Housing Mercy Housing Mercy Housing Mercy Housing Consolidated (Crossroad California 80, LP 3425 Orange California 81, LP Mercy Mather California 79, LP California Senior Mercy Housing Gardens) Consolidated Grove LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Properties Calwest Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 215,711 $ 128,792 $
48,712 64,149
287,491 269,831
6,281 60,568
62,958
18,608
29,355
576,803 615,653
1,754,172 1,912, 371
14,754, 324 12,700,160
321,730 771,516
(1,571,033) (1,095,866)
15,259,193 14,288,181
615,283 534,201
32,204
100,918
647,487 635,119
$ 127,296 $
18,141
1,866,563
105,934
33,532
$ 201,188 $ 1,953,555 $ 21,652,212
11,237 63,800 2,489,320
387,314 450 14,011,622
122,962 17,569 3,303,399
40,000 794 61 950,396
10,563
25,118
55,120
3,021, 548
2,151,466 40,000 748,613 2,090,555 45,439,060
4,262,630
27,943,586
633,697
(806,532)
32,033,381
(3,682) (8)
126,830
(3,682) 126,830
$ 16,483,483 $ 15,538,953 $ (3,682) $
1,034,466 1,191,304 137,306,555
12,318,102 13,778,600 1,172,171,307
268,988 1,871,850 29,379,728
- - 10,386,692
- - 285,133,774
(935,378) (6,861,981) (199,484,899)
12,686,178 9,979,773 1,434,893,157
42,545
49,404
2,133,455 66,342,120
(3,402,896)
1,397,285
19,423,933
(8) 91,949 2,133,455 83,760,442
34,311,677 $ 39,992 $
13,526,740 $ 14,203,783 $ 1,564,092,659
44 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Consolidated
California 77, LP Mercy Housing Mercy Housing Mercy Housing Mercy Housing Consolidated (Crossroad California 80, LP 3425 Orange California 81, LP Mercy Mather California 79, LP California Senior Mercy Housing Gardens) Consolidated Grove LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Properties Calwest Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 73,177 $ 97,944 $ (311) $ 196,556 $ (221) $ 212,213 $ 1,150,732 $ 58,412,607 214,090 352,564 4,928 1,078,493 44,776 502,600 23,740 25,990,669 - - 10,630 120,763 1,589,805
23,930
6,245,961 348,688 160,828,040
- 5,645,146
242 238 894 10,042 16,261 2,196,288
48,212 62,800 17,368 10,736 59,473 2,504,294
335,721 513,546 4,617 1,293,311 44,555 6,992,182 1,719,657 257,190,779 57,083 4,035,936 107,712 761,142 47,582,791
- - 1,065,337
9,267,229 8,016,909 11,382,448 (15,353) 7,720,644 783,327,585 2,087,284 - - 110,001 - 40,763,327
674,618 - 68,059 32,850,402
12,086,214 12,052,845 11,490,160 94,648 8,549,845 905,589,442 12,421,935 12,566,391 4,617 12,783,471 44,555 7,086,830 10,269,502 1,162,780,221 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 $ 16,483,483 $ 15,538,953 $ (3,682) $ 34,311,677 $ 39,992 $ 13,526,740 $ 14,203,783 $ 1,564,092,659 45 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Consolidated Consolidated San Consolidated
Mercy Properties Juan Housing Mercy Housing
California Corporation Eliminations Califomia
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 887,960 $ 554,797 $ $ 37,660,980
42,237 128,448 3,376,397
- 17,178, 797
2,162,999
2,816 18,281 372,769 10,226,914
976,239 - (28,213,286) 62,786,884
- - 9,750,000
- 63,745
- 37,729
- (5,897,152) 265,271
26,509 44,969 (1,047,719) 2,895,946
1,935,761
746,495 (34,785,388) 146,405,662
5,484,234 1,734,224 - 172,258,671
14,024,049 7,969,934 (28,826,805) 1,425,307,077
165,798 3,790,024 - 42,837,157
- - 19,946,022
- (5,215,564) 279,918,210
(10,954,426) (10,109,028) 6,479,859 (315,891,127)
8,719,655 3,385,154 27,562,510) 1,624,376,010
797,750 635,365
60,000
22,000
879,750
84,268,711
11,085,000
405,000
(17,311,755) 221,004
13,875,365
13,267,885 2,087,649
(4,724,800) 2,099,966
(29,043,653) 6,904,605
19,877,159
635,365 (37,812,323) 140,824,459
$ 11,535,166 $ 4,767,014 $ (100,160,221) $ 1,911,606,131

Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Consolidated Consolidated San
Mercy Properties Juan Housing
California Corporation
Eliminations
Consolidated
Mercy Housing
Califomia
$ 146,942 $ 197,591 $ 19,347 $ 66,181,669
170,523 121,301 (30,501,081) 3,811,584
644,781 13,269 - 2,741,545
- 23,930
88,772 142,903 - 168,632,240
187,104 (5,845,732) 13,571,651
18,467 22,577 (1,067,308) 2,729,134
45,737 126,840 - 3,500,339
1,302,326 624,481 (37,394,774) 261,192,092
- - (60,000) -
580,985 2,468,206 - 64,066,534
(1,065,337) 175,770
3,689,301 6,646,226 (2,347,800) 883,362,201
(39,363,436) 6,618,312
12,500 1,525 (16,033,052) 19,077,651
4,282,786 9,115,957 (58,869,625) 973,300,468
5,585,112 9,740,438 96,264,399) 1,234,492,560
5,950,054 (4,973,424) (511,658,462) 130,113,023
- 507,762,640 507,762,640
5,950,054 (4,973,424) (3,895,822) 637,875,663
Net assets with donor restrictions 39,237,908
Total net assets
Total liabilities and net assets
5,950,054 (4,973,424) (3,895,822) 677,113,571
$ 11,535,166 $ 4,767,014 $ (100,160,221) $ 1,911,606,131

Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Marin Homes for Mercy Senior
Mercy Housing Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi Gault Street Senior California Initiatives Community (Camino Alto) Homes (Casa Merced) Community Housing Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
26,627,732
9,191,677
7,877,088
19,655,035
969,838
1,266,241
3,873,706
Total revenues 69,461,317
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
14,941,525
3,343,445
821,183
198,415
20,447,899
620,587
16,027
598,314
491,792
5,723,566
(176)
$ 1,380,248 $ 422,479 $ 423,654 $ 408,393 $
20,264
5,108
852 6
4,033 2,259
$ 303,310
18 - 20
4,991 480,461 3,005
1,405,620 427,364 425,919 413,402 480,461 306,335
- 295,261 89,043 161,965 122,308
925 81,739 88,112 71,528 69,801
778 31,959 9,429 8,410 52,644
- 262,670 65,623 197,935 157,550
177,538 101,314 121,708 131,824
174,437 101,705 - -
- 961 12,352 778
(20)
6,299
641,894
86,929
69,812
25,150
180,208
102,686
47,202,577 1,683 1,023,604 456,187 573,898 534,905 648,193 464,785 22,258,740 (1,683) 382,016 (28,823) (147,979) (121,503) (167,732) (158,450) 158,840,236 242,165 (124,305) (311,104) 2,491,243 1,507,075 1,393,651 2,256,205 162,237
$ 181,098,976 $ 240,482 $ 257,711 $ (339,927) $ 2,343,264 $ 1,385,572 $ 1,388,156 $ 2,097,755 48 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing John W. King Senior Housing Corporation (Mercy Family Housing Corporation Presentation Senior Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Housing Community Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 1,054,691 $ 666,303 $
315
36,879
174
76,056
1,091,885 742,533
176,821
$ 810,901 $ 263,544 $ 669,119 $ 499,538 $ 1,347,401
171 8 207
10,175 12,835 7,632
176,821 821,247
88 13,738
4,595 16,197
276,387 676,958 504,221 1,377,336
573,484 287,127 - 44,927 84,862 225,637 151,316 611,514 145,168 175,553 14,999 73,389 67,115 111,750 68,617 169,348 11,999 9,793 3,149 8,526 8,230 9,664 17,997 10,938
511,070 227,305 - 146,428 148,908 322,503 164,631 592,884 - 237,322 - - -
277,802 234,719 - 310,054 95,078 218,021 204,385 378,364 75 32,229 31,810 - 36,808 36
1,393 - 9,911 2,244 -
17,948
1,520,916 934,572 255,470 625,464 438,247 905,523 643,754 1,763,084 (429,031) (192,039) (78,649) 195,783 (161,860) (228,565) (139,533) (385,748) 6,533,114 2,329,394 4,695,907 790,427 (45,183) 4,047,812 (519,971) 7,586,184 (96,537) - -
$ 6,104,083 $ 2,137,355 $ 4,617,258 $ 889,673 $ (207,043) $ 3,819,247 $ (659,504) $ 7,200,436 49 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Garden Park
Apartment Mercy Commercial Central Coast
Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Village California MPCAL, LLC MCC 1360 LLC Housing Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 512,632 $ 670,054 $ 411,673 $ 467,884 $ 789,207 $ 194,000 $ 11,661
4,403
6,907 22,343
7,485 492,472
22 27,216 1,544
6,359 177,603 45,281
$ 58,818
43 77
Total revenues 528,696 684,446 926,488 474,265 994,026 240,825 58,938 Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
199,843 281,117 137,813 181,340 126,936 -
78,905 125,796 51,490 81,678 111,164 30,315
9,591 10,720 258,906 49,564 14,073 15,214
209,755 502,147 195,711 298,857 29,193 118,822
- 25,000 - -
179,449 282,755 177,927 146,842 640,092 358,130
10,782 3,959 93,527 5,902 50 121,783
203 395 -
855
2,616
688,325 1,206,697 940,769 764,183 921,508 644,264 3,471 (159,629) (522,251) (14,281) (289,918) 72,518 (403,439) (3,471) Net assets at beginning of year 1,349,370
Other transfers to (from) net assets
Net assets at end of year
6,646,798 229,905 3,689,409 (1,775,589) (349,034) 3,146,709 (100,000) 100,000 -
$ 1,189,741 $ 6,124,547 $ 215,624 $ 3,399,491 $ (1,803,071) $ (652,473) $ 33,092
6,840
9,507
16,543
13,976
7,160
39 87,157
(28,219)
(248,862)
3,143,238 $ (277,081)
50 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Apts.) Consolidated Properties Community) Needs 1500 Page) Mercy Midtown Inc. Corporation GP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
$ 1,057,756 $ 1,051,970 $ $ 1,012,490 $ - $ 181,250 $ $ 119
4,602
10,956
18,520
1,062,477 1,081,446
176,939 192,468
157,136 97,454
89,245 81,620
726,451 342,730
480,792 257,480
198,271 120,070
17,154 -
Total expenses and losses 1,845,988
Excess (deficiency) of revenues over expenses
489
26,676
16,884
1,039,655 16,884
171,756
100 157,247
3,121 99,498
1,498,653
439,664
121,096
35,284
148
1,091,822 3,369
16,939
623
23,862
2,438
20,600
207,550 20,600
25,306
88,776
21,114
293,175
81,092
1,176
20,600
2,523
30 146
2,523,198 17,592 510,639 23,269
(783,511) (10,376) (3,369) (1,483,543)
Net assets at beginning of year 4,585,510
Other transfers to (from) net assets
Net assets at end of year
(545,898)
1,263,010
14,299,839
(708) (303,089) (2,669)
(21,875) 6,643,078 9,763,410 (7,553,229)
(9,763,410)
$ 3,801,999 $ (556,274) $ 1,259,641 $ 12,816,296 $ (22,583) $ 6,339,989 $ - $ (7,555,898) 51 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Consolidated
California 77, LP Mercy Housing Mercy Housing Mercy Housing Mercy Housing Consolidated (Crossroad California 80, LP 3425 Orange California 81, LP Mercy Mather California 79, LP California Senior Mercy Housing Gardens) Consolidated Grove LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Properties Calwest Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 688,757 $ 785,684 $
$ 674,227 $ - $ 606,609 $ 3,916,956 $ 61,703,237
20,000 - 30,748
6,523,160
15,460 3 44 22,708 1,271,012
8,350 39,502 7,043 9,530 162,544 20,378,287
712,567 825,189
195,568 225,118
78,055 125,784
47,459 93,681
524,000 806,858
236,488 299,230
68,440 280,734
15,229
681,270
265,808
54 102,380
1,573 85,926
812,431
163,779
346,868
74 20,000 616,183
4,102,208 89,906,444
221,112 791,418 12,214,009
19,999 83,725 593,768 10,260,521
1,576 96,791 52,107 5,192,958
724,579 929,621 41,909,788
128,561 102,799
120,610 771,029 19,412,052
269,713 480,878 22,046,404
- 588 1,263,422
(19,119)
110 68 (187,529)
1,150, 010 1,846,634 1,737 1,777,266 21,643 1,516,530 3,747,970 112,195, 305 (437,443) (1,021,445) (1,737) (1,095,996) (1,643) (900,347) 354,238 (22,288,861) 4,180,793 2,167,991 (6,562) 2,177,232 (2,920) 1,347,442 3,451,482 279,896,349 318,198 1,826,016 - 20,446,970 5,992,815 128,561 143,704,950 $ 4,061,548 $ 2,972,562 $ (8,299) $ 21,528,206 $ (4,563) $ 6,439,910 $ 3,934,281 $ 401,312,438 52 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Consolidated Consolidated San Consolidated
Mercy Properties Juan Housing Mercy Housing
California Corporation Eliminations Califomia
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 899,705 $ 1,538,075 $ (861,087) $ 84,609,478
- (2,947,668) 23,680,064
(6,290,953) 2,988,956
- (168,420) 7,708,668
215,532 (175,944) 26,217,783
- 969,838
1,012 4,258 (159,832) 2,738,750
1,706,117 42,733 (18,604,236) 9,073,718
2,822,366 1,585,066 (29,208,140) 157,987,255
177,152 365,547 - 33,658,240
851,951 234,545 (3,016,587) 14,910,791
22,119 23,616 (4,218,513) 3,103,376
527,722 441,117 (869,920) 53,214,363
(18,327,349) 3,256,126
318,078 532,829 (895,859) 26,990,515
164,828 290,950 (141,742) 24,883,976
4,292 1,087 (133,828) 1,829,853
491,792
5,723,566
- (1,171)
(303,897) (491,081)
2,066,142 1,889,691 (27,907,695) 167,570,346
756,224 (304,625) (1,300,445) (9,583,091)
5,193,830 (4,668,799) (2,877,677) 523,694,562
282,300 163,002,100
$ 5,950,054 $ (4,973,424) $ (3,895,822 $ 677,113,571

Mercy Housing California Senior Properties
Consolidating Statement of Financial Position
December 31, 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Fumiture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Senior Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP $ 158,366 $ 1,324,443 $ 278,818 $ 71,202 $ 41,880 $ 78,846 $ - 9,750 7,430 20,754 25,866
- - - 450
61 3,298
10,915
852
7,281
6,366
13,317
7,053
1,359
23,607
Eliminations
(1,359)
Consolidated
Mercy Housing
California Senior
Properties
$ 1,953,555
63,800
450
17,569
61 55,120
158,427 1,324,443 302,781 86,765 82,317 137,181
19,791 210,151 614,986 346,376
2,274,234 2,553,040 4,407,401 4,543,925
155,923 768,101 762,211 185,615
(1,037,874) 1,493,756) (2,092,284) (2,238,067)
1,412,074 2,037,536 3,692,314 2,837,849
493,120
688,674 329,000
(1,359) 2,090,555
1,191,304
13,778,600
1,871,850
(6,861,981)
9,979,773
622,661 2,133,455
3,916,715 (3,916,715)
3,916,715
493,120 688,674 329,000 622,661 (3,916,715) 2,133,455
$ 3,916,715 $ 158,427 $ 1,324,443 $ 2,207,975 $ 2,812,975 $ 4,103,631 $ 3,597,691 $ (3,918,074) $ 14,203,783 54 Mercy Housing California Senior Properties
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Senior Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP Eliminations
Consolidated
Mercy Housing
California Senior
Properties
$ 2,780 $ 8,511 $ 4,998 $ 470,906 $ 483,587 $ 67,609 $ 112,341 $ - $ 1,150,732 17,914 - 5,826 1,359 (1,359) 23,740
- - 28,852 18,212 28,292 45,407 - 120,763
75,016 58,672 105,000 110,000 348,688
3,721 3,348 320 8,872 16,261
9,254 6,621 20,213 23,385 59,473
20,694 8,511 10,824 587,749 570,440 221,434 301,364 (1,359) 1,719,657 - 761,142 - 761,142
1,561,774 1,269,573 2,367,276 2,522,021 7,720,644
66,241 1,188 630 68,059
1,628,015 1,269,573 3,129,606 2,522,651 8,549,845
20,694 8,511 10,824 2,215,764 1,840,013 3,351,040 2,824,015 (1,359) 10,269,502 3,896,021 149,916 1,313,619 (7,789) 972,962 752,591 773,676 (3,916,715) 3,934,281 3,896,021 149,916 1,313,619 (7,789) 972,962 752,591 773,676 (3,916,715) 3,934,281 3,896,021 149,916 1,313,619 (7,789) 972,962 752,591 773,676 (3,916,715) 3,934,281 $ 3,916,715 $ 158,427 $ 1,324,443 $ 2,207,975 $ 2,812,975 $ 4,103,631 $ 3,597,691 $ (3,918,074) $ 14,203,783 55 Mercy Housing California Senior Properties
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Senior Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP $ $
391
Total revenues 391
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
Investments in limited partnerships, net
$ 852,773 $ 826,420 $ 1,299,185 $ 938,578 $
- 1,923 5,763 7,176 7,846
3,620 26,239 23,962 12,729 95,603
3,620 880,935
856,145 1,319,090
Eliminations
Consolidated
Mercy Housing
California Senior
Properties
$ 3,916,956
22,708
162,544
1,042,027 4,102,208
- - 184,190 159,135 168,427 279,666
130 1,400 280,073 51,392 137,265 123,508
2,521 9,580 2,499 8,530 6,740 6,945 15,292
- 157,657 261,887 322,143 187,934
- 128,561 - - - -
- - 188,896 95,736 180,981 305,416
438 96,951 72,417 134,930 176,142
- - - 588
791,418
593,768
52,107
929,621
128,561
771,029
480,878
588
(353,320) 353,320
(350,669) 11,418 131,060 916,297 647,307 950,691 1,088,546 353,320 3,747,970 350,669 (11,027) (127,440) (35,362) 208,838 368,399 (46,519) (353,320) 354,238 3,416,791 160,943 1,312,498 27,573 764,124 384,192 820,195 (3,434,834) 3,451,482 128,561 128,561 (128,561) 128,561
$ 3,896,021 $ 149,916 $ 1,313,619 $ (7,789) $ 972,962 $ 752,591 $ 773,676 $ (3,916,715) $ 3,934,281 56 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Third and LeConte
Mercy Housing Mercy Housing California XXXVIII, Mercy Housing Mercy Housing Associates LP Mercy Housing California XXXIX, LP California XL, LP LP (East Leland California XLII, LP California XLIV LP (Bayview Hill Caroline Calwest (Gleason Park) (Arlington Hotel) Courts) (Boulevard Court) (1180 Fourth Street) Gardens) Severance LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
126
110
1,269,104
127,868 $ 339,919 $ 43,250 $ 339,722 $ 693,206 $ 515,971 $ 57,394 47,802 60,672 20,391 130,564 16,831
- - 192,282 69,494 -
6,194 314,529 7,373 2,621 45,887 107,917
- 205 9,227 -
30,298 36,211
27,059 20,110 111,512 46,034
47,568
1,269,340 221,754 738,666 138,354 575,126 1,059,890 686,753 47,568 (51,975,150)
50,000
13,577,249
1,082,249 3,972,090 2,754,496 3,090,021 1,876,368 2,416,056 20,095,787 35,805,378 19,590,560 13,825,757 63,626,763 28,865,848 192,394 2,049,327 336,064 847,781 2,673,574 991,710
(7,863,508) (14,040,058) (10,718,875) (6,177,279) (13,179,939) (9,435,246) 13,506,922 27,786,737 11,962,245 11,586,280 54,996,766 22,838,368 1,593,457 3,585,903
22,827 40,722
(38,347,901) 1,616,284
444,798 3,985,835 1,249,415 932,516
8,366 40,659
3,626,625 453,164
54,697 46,273
4,026,494 1,304,112
(6,495)
978,789 (6,495)
$ (37,078,561) $ 15,344,960 $ 32,152,028 $ 12,553,763 $ 16,187,900 $ 57,360,768 $ 24,503,910 $ 41,073 57 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Third and LeConte
Mercy Housing Mercy Housing California XXXVIII, Mercy Housing Mercy Housing Associates LP Mercy Housing California XXXIX, LP California XL, LP LP (East Leland California XLII, LP California XLIV LP (Bayview Hill Caroline Calwest (Gleason Park) (Arlington Hotel) Courts) (Boulevard Court) (1180 Fourth Street) Gardens) Severance LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 2,780 $ 43,872 $ 233,788 $ 89,735 $ 101,165 $ 238,483 $ 91,122 $ 1,118 1,050,946 26,784 33,240 11,418 121,616 38,712 91,691 64,972 - - 2,746 5,651
47,705 75,760
66,293 447,462 11,206 836,214 343,769 (3,775)
57,706 48,184 60,184 19,716 127,963 16,084
1,053,726 194,655 762,674 222,994 1,078,711 830,338 195,122 66,090 5,855,260 2,271,002 782,909 1,919,663 2,076,605
1,187,838 21,310,719 33,487,882 11,470,164 10,774,237 37,402,021 18,109,118 1,139,500 1,201,238 - - -
2,279 7,455,557 1,544 6,650,003 12,500
2,327,338 22,514,236 46,798,699 13,742,710 18,207,149 39,334,184 20,185,723 3,381,064 22,708,891 47,561,373 13,965,704 19,285,860 40,164,522 20,380,845 66,090 (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) $ (37,078,561) $ 15,344,960 $ 32,152,028 $ 12,553,763 $ 16,187,900 $ 57,360,768 $ 24,503,910 $ 41,073 58 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing 1100 Ocean
Mercy Housing Mercy Housing California 52, LP Avenue Limited 55 Laguna, LP California XLIII, LP Mercy Housing California 53, LP (School House Partnership (1100 (Open House (Caroline California 47, LP Madonna Senior (Madonna Station -Vista Ocean Avenue Community at 55 Severance Manor) 7th & H GP, LLC (7th & H Street) Housing LLC Residences) Grande) Apts.) Laguna) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 113,819 $
96,647
6,627
39,107
132,544
$ 44,185 $
77,560
68,219
50,068
$ 306,694 $ 673,603 $ 193,045 $ 351,947
59,379 84,890 53,525 33,001
- 933,710 152,549
63,323 4,593 49,050 144,587
70,000 9,475 -
10,563
32,420
28,926 38,545
52,461
256,200 132,544 240,032 70,000 461,816 801,487 1,278,438 734,545 3,897,034
27,204,278
502,903
(7,790,974)
4,434,686
36,005,174
936,911
(12,212,752)
5,722 20,714 1,278,420 2,037,195
11,321,773 20,566,496 29,669,712 23,423,671
314,516 181,140 964,152 481,726
(3,866,106) (4,493,158) (5,232,927) (4,489,877)
23,813,241 29,164,019 7,775,905 16,275,192 26,679,357 21,452,715 542,151 - 4,349,030
14,205,777 29,007
48,137 - 53,747
3,755,262 631,818 1,291,811 373,756
1,038,407 9,711
26,572 2,192,993
590,288 14,205,777 4,402,777 29,007 4,793,669 641,529 1,318,383 2,566,749 $ 24,659,729 $ 14,338,321 $ 33,806,828 $ 99,007 $ 13,031,390 $ 17,718,208 $ 29,276,178 $ 24,754,009 59 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing 1100 Ocean
Mercy Housing Mercy Housing California 52, LP Avenue Limited 55 Laguna, LP California XLIII, LP Mercy Housing California 53, LP (School House Partnership (1100 (Open House (Caroline California 47, LP Madonna Senior (Madonna Station -Vista Ocean Avenue Community at 55 Severance Manor) 7th & H GP, LLC (7th & H Street) Housing LLC Residences) Grande) Apts.) Laguna) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 80,256 $ 1,118 $ 247,584 $ 1,118 $ 370,894 $ 260,709 $ 48,002 $ 40,473 48,030 169,166 - 105,429 39,526 48,837 40,874
13,703 - 25,101
200,646 131,051
52,483 4,350 69,701 43,653 3,258 10,750
95,350 76,635 57,881 83,016 52,370 32,277
490,468 170,284 328,569 106,547 498,476 583,056 152,467 124,374 3,317,434 731,989 1,196,986 612,165 1,212,617 1,448,574 - 1,037,718
16,427,305 10,944,343 9,134,371 7,470,454 17,346,998 7,911,151 - - 4,452,969 700,000 -
150,021 1,123 1,116 15,000 150,734
19,894,760 11,676,332 10,332,480 13,574,422 19,274,615 9,510,459 20,385,228 170,284 12,004,901 106,547 10,830,956 14,157,478 19,427,082 9,634,833 4,274,501 14,168,037 21,801,927 (7,540) 2,200,434 3,560,730 9,849,096 15,119,176 4,274,501 14,168,037 21,801,927 (7,540) 2,200,434 3,560,730 9,849,096 15,119,176 4,274,501 14,168,037
21,801,927 (7,540)
2,200,434 3,560,730
9,849,096 15,119,176
$ 24,659,729 $ 14,338,321 $ 33,806,828 $ 99,007 $ 13,031,390 $ 17,718,208 $ 29,276,178 $ 24,754,009 60 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing
California 54, LP Mercy Housing California 56, LP Coastside Senior Esparto Family (Esperanza Sunset Lane California 55, LP (Jefferson Park Housing Limited EI Monte Veterans EI Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
55,959
$ 21,343 $
32,410
9,306
9,917
$ 39,414 $ 64,265 $ 321,816 $
28,114 47,656 13,461
238,742
(58) 3,780 4,417
10,047 13,563 23,461 32,149
55,959 73,106
(342)
2,946,584
8,432,461
181,490
(2,924,517)
9,917 81,033
$ 135,122
35,264
3,880
26,460 30,818
16,814
139,162 610,585 26,460 221,898
1,493,737 1,880,926 675,178
10,301,452 15,036,791 13,057,001
202,287 218,032 403,093
2,467 - -
(2,456,807) (4,416,702) (4,057,675)
8,636,018 9,543,136 12,719,047 10,077,597
1,293,775
10,071, 330
602,016
(2,987,178)
8,979,943
297,518 283,416 249,549 564,433 614,059
(388)
82,362
18,639 19,916 33,532 23,411 - 25,858
(342) 316,157
(388) 303,332 283,081 587,844 82,362 639,917
$ 55,617 $ 9,025,281 $ 9,529 $ 9,927,501 $ 13,141,290 $ 11,276,026 $ 108,822 $ 9,841,758 61 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing
California 54, LP Mercy Housing California 56, LP Coastside Senior Esparto Family (Esperanza Sunset Lane California 55, LP (Jefferson Park Housing Limited EI Monte Veterans EI Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 1,118 $ 81,326 $ 1,118 $ 32,293 $ 119,450 $ 55,846 $ 1,118 $ 37,890 78,647 5,748 31,384 46,042 101,364 23,881 44,726 26,459 2,094 - 1,058 8,500 3,550 -
93,891 21,915 35,718 53,558
2,696 398 17,907 535
31,914 27,439 47,779 12,963 33,967
79,765 217,669 32,502 129,145 330,718 150,333 45,844 98,316 839,397
916,687
944,591
452,766
520,144
4,025,930 4,494,681 5,678,697 3,941,999 - 4,043,066
- - 1,074,176 587,838
174,167 1,201,202
4,865,327 5,411,368 7,871,631 6,183,805 4,563,210
79,765 5,082,996 32,502 5,540,513 8,202,349 6,334,138 45,844 4,661,526 (24,148) 3,942,285 (22,973) 4,386,988 4,938,941 4,941,888 62,978 5,180,232 (24,148) 3,942,285 (22,973) 4,386,988 4,938,941 4,941,888 62,978 5,180,232 (24,148) 3,942,285
(22,973) 4,386,988
4,938,941 4,941,888
62,978 5,180,232
$ 55,617 $ 9,025,281 $ 9,529 $ 9,927,501 $ 13,141,290 $ 11,276,026 $ 108,822 $ 9,841,758 62 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing
1028 Howard California 60, LP California XI, LP Mercy Eden House Transbay Block 6, California 62, LP Sunset Valley Street, LLC (Quinn Cottages) (Madison Place) LLC Eden House, L.P. LLC (280 Beale) Duplexes, LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 169,784 $ 28,949 $ 17,303 $
27,448 9,293 31,742
2,064 5,209 3,009
10,860
27,823 13,733
210,156 71,274
233,982
$ 633,165 $
85,845
3,334
26,218
125,398
$ 517,336 $
63,811
37,304
101,903
25,120
8,500
65,787 233,982 748,562 125,398 745,474 8,500
- 1,120,611 324,803
3,610,847 4,357,818 4,127,890
102,811 302,250 154,890
(1,330,078) (1,614,343) (3,822,670)
2,383,580 4,166,336 784,913
666,730 3,465,288 215,283
11,372
1,060,410
11,326,978
652,629
(2,713,992)
985,629
24,302,115
700,486
199
(3,943,654)
10,326,025 22,044,775
1,989,658 - 807,390
882,340 500,378 - 574,066
690,000 - 166
32,564 - 25,176
666,730 3,476,660 215,283 882,340 2,022,222 1,190,378 832,566 574,232 $ 3,260,466 $ 7,714,270 $ 1,065,983 $ 1,116,322 $ 13,096,809 $ 1,315,776 $ 23,622,815 $ 582,732 63 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing
1028 Howard California 60, LP California XI, LP Mercy Eden House Transbay Block 6, California 62, LP Sunset Valley Street, LLC (Quinn Cottages) (Madison Place) LLC Eden House, L P. LLC (280 Beale) Duplexes, LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 58,288 $ 89,339 $ 26,537 $
5,922 150,146
284 - 1,196
33,375 33,643
480 3,774 3,573
26,948 7,952 32,045
119,375 106,987 247,140
1,336,604 571,019 1,550,860
2,068,853 4,893,294 838,828
6,650 3,318
3,405,457 5,470,963 2,393,006
3,524,832 5,577,950 2,640,146
1,118 $
72,653 $
13,301
131,934
16,151
85,343
1,118 $ 140,157 $
114,727 84,052
- 1,730
33,805
3,168
61,383
1,118
109,302
1,118 319,382 115,845 324,295 110,420
35,491 2,096,150
752,822 -
2,761,580 690,000 14,142,793
3,100,000 - 690,000
4,205 15,000
6,654,098 690,000 16,943,943
1,118 6,973,480 805,845 17,268,238
(264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 (264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 110,420
472,312
472,312
(264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 472,312 $ 3,260,466 $ 7,714,270 $ 1,065,983 $ 1,116,322 $ 13,096,809 $ 1,315,776 $ 23,622,815 $ 582,732 64 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
California 63, LP Mercy Housing Mercy Housing
(Sunset Valley Land Park Woods, California 68, LP Transbay Block 7, California 64, LP Mercy Mather Duplexes) 345 Arguello, LP LLC (Land Park Woods) 1880 Pine, LP LLC (Transbay Block 7) Veterans, LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 127,557 $ 527,270 $
48,447 18,092
127,386
3,173 33,417
19,282
33,010
198,459 739,175
10,289,378 75,402
13,219,953 27,906,509
278,106 486,330
(3,541,968) (3,322,678)
20,245,469 25,145,563
881,317 1,241,757
57,838 894,018
939,155 2,135,775
$ 90,369 $ 634,141 $
58,486 28,229
386,871
111,709 -
5,278 40,878
15,717 54,276
164,572 1,220,504
2,629,622 365,207
9,890,258 32,996,020
445,854 624,527
(2,138,228) (4,050,067)
10,827,506 29,935,687
$ 791,149 $
127,599
2,087
5,283
77,088
40,878 1,003,206
4,147,129
58,942,129
686,247
(4,970,276)
58,805,229
1,148,353 1,379,497 - 617,367
116,731 490,456 120,568
42,581 1,583, 702 61,751
116,731 1,190,934
2,963,199 490,456 679,118 120,568
$ 21,383,083 $ 28,020,513 $ 116,731 $ 12,183,012 $ 34,119,390 $ 531,334 $ 60,487,553 $ 120,568 65 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
California 63, LP Mercy Housing Mercy Housing
(Sunset Valley Land Park Woods, California 68, LP Transbay Block 7, California 64, LP Mercy Mather Duplexes) 345 Arguello, LP LLC (Land Park Woods) 1880 Pine, LP LLC (Transbay Block 7) Veterans, LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
$ 38,155 $ 53,244 $ (311) $ 41,643 $
37,500 43,754 10,125
78,772 -
100,490
499 207
48,434 17,676
124,588 294,143
1,309,253
2,268 -
8,851,202 17,778,404
67,491 500,000
1,691
10, 230, 214 18, 280, 095
10, 354, 802 18,574,238
11,028,281 9,446,275
11,028,281 9,446,275
10,664
57,894
86,574 $
43,754
238,357
110,892
6,316
27,438
(311) $ 108,974 $
49,713 40,878
- 8,292
153,502
9,742
124,545
130
14,231
9,814 110,201 513,331 49,402 445,933 14,361
2,050,533 902,111
4,053,871 22,078,016 - 32,288,361
740,000 1,120,000 1,733,283
21,453 30,000
6,865,857 23,198,016 34,953,755
9,814 6,976,058 23,711,347 49,402 35,399,688 14,361
106,917 5,206,954 10,408,043 481,932 25,087,865 106,207 106,917 5,206,954 10,408,043 481,932 25,087,865 106,207 Total net assets 11,028,281 9,446,275 106,917 5,206,954 10,408,043 481,932 25,087,865 106,207 Total liabilities and net assets
$ 21,383,083 $ 28,020,513 $ 116,731 $
12,183,012 $ 34,119,390 $ 531,334 $
60,487,553 $ 120,568
66 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Laguna Senior
California 61, LP California 65, LP Housing, L.P. (95
(Mather Veterans Mercy Housing (The Arbor at Mercy Laguna LLC, Laguna Senior Village) California 65, LLC Hesperion) Plaza Maria, LLC GP Housing) JFK Tower, LP 2698 California, LP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 187,773 $
7,463
12,078 -
634 102,411
27,603
$ 347,474 $ 125,058 $
65,837 70,041
240,441
18,068 5,252
1,033
30,957
16,922
$ 274,757 $ 209,897 $ 667,982
94,719 24,213 9,946
2,628,289 26,591 46,887
52,880 278,510 6,843
80,383 26,129 9,878
80,634 62,378
24,091
235,551 102,411 702,777 218,306 80,383 3,157,408 611,467 755,749 1,112,787
13,883,195
434,035
(2,123,201)
13,306,816
6,342,004
803
2,991,331 750,000
22,957,399 2,362,713
437,132 7,108
(2,771,158) (1,613,084)
23,614,704 1,506,737
641,807 151,844
134,947
1,700,519 512,587 245,919
37,969,781 50,228,965 26,344,229
643,584 943,205 488,807
(1,767,108) (4,925,853) (2,639,160)
38,546,776 46,758,904 24,439,795
428,210
48,061 48,083 4,420,116
1,341,118 1,016,922
1,879,541 837,802
6,390,065 803 689,890 151,844 134,947 4,848,326 3,220,659 1,854,724 $ 19,932,432 $ 103,214 $ 25,007,371 $ 1,876,887 $ 215,330 $ 46,552,510 $ 50,591,030 $ 27,050,268 67 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Laguna Senior
California 61, LP California 65, LP Housing, L.P. (95
(Mather Veterans Mercy Housing (The Arbor at Mercy Laguna LLC, Laguna Senior Village) California 65, LLC Hesperion) Plaza Maria, LLC GP Housing) JFK Tower, LP 2698 California, LP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 33,983 $ (311) $ 57,879 $ 58,287 $ (311) $ 103,987 $ 95,039 $ 42,271 57,223 116,156 74,460 90,515 889,903 46,856 86,099
- 2,040 22,281 - 269,195 225,937
28,001 111,877 149,318 46,159
1,422 216 29,415 8,332 4,951 3,307
6,085 65,333 69,541 94,319 23,717 8,969
98,713 115,845 227,929 291,401 90,204 1,096,541 589,076 412,742 244,350 2,139,109 2,436,351
4,877,883 14,741,572 5,747,174 20,841,836 31,560,994 17,155,823 1,341,552 - - - - 970,000 400,000
1,233 499,556 1,505,227 399,674
6,463,785 16,880,681 5,748,407 23,777,743 34,036,221 17,955,497 6,562,498 115,845 17,108,610 6,039,808 90,204 24,874,284 34,625,297 18,368,239 13,369,934 (12,631) 7,898,761 (4,162,921) 125,126 21,678,226 15,965,733 8,682,029 13,369,934 (12,631) 7,898,761 (4,162,921) 125,126 21,678,226 15,965,733 8,682,029 13,369,934 (12,631)
7,898,761 (4,162,921)
125,126 21,678,226
15,965,733 8,682,029
$ 19,932,432 $ 103,214 $ 25,007,371 $ 1,876,887 $ 215,330 $ 46,552,510 $ 50,591,030 $ 27,050,268 68 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
California 66, LP Mercy Housing New Dana Strand
(Colma Veterans 455 Fell, LP (Parcel California 67, LP Historic Live Oak Mercy Housing Mercy Housing La IV, LP (Camino Del St Mary's Tower, Village) O) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 492,762 $ 339,283 $ 204,137 $ 49,600 $
26,750 123,973 60,657 8,796
38,926 331,592 -
6,548 37,970 13,442 10,919
38,942
89,578 22,306
3,072
15,914
$ 2,013,073 $
84,921
221,696
60,941
86,789
603,928 922,396 300,542 72,387 15,914 2,467,420
7,303,126 5,862,894 1,302,463 84,914
28,136,631 58,093,384 15,870,992 2,791,081
562,039 934,075 308,821 18,132
(2,042,382) (3,205,516) (3,148,384) (1,224,692)
33,959,414 61,684,837 14,333,892 1,669,435
2,072,976
28,526,712
660,811
(1,937,041)
29,323,458
1,654,302 876,001 415,021 53,481 563,031
(18) (69) (3,864,883)
40,260 65,407 32,973 3,690,452
1,694,562
941,408 447,994 53,481 (18) (69) 4,253,483 (3,864,883)
$ 36,257,904 $ 63,548,641 $ 15,082,428 $ 1,795,303 $
15,896 $ (69) $
36,044,361 $ (3,864,883)
69 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
California 66, LP Mercy Housing New Dana Strand
(Colma Veterans 455 Fell, LP (Parcel California 67, LP Historic Live Oak Mercy Housing Mercy Housing La IV, LP (Camino Del St Mary's Tower, Village) O) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
$ 195,285 $ 909,022 $ 76,433 $ 10,586 $
2 35, 360 1,816,878 17,364 172,233
35,121 19,738 12,754 24
248,772 68,974 66,989 3,960
(311) $
26,733
(311) $
12,681
92,255 $
136,364
55,853
285,777
9,916 6,190 4,250 34 10,370
26,252 123,486 60,147 8,300 85,004
(311)
7,990
750,706 2,944,288 237,937 195,137 26,422 12,370 665,623 7,679 286,521 478,345 157,680 511,984
23,378,333 35,977,456 8,898,633 1,222,591 21,412,768
1,500,000 4,000,000 - -
904,917 524,252 - 1,444,232
24,569,771 38,480,053 13,056,313 1,222,591 23,368,984
25,320,477 41,424,341 13,294,250
1,417,728 26,422 12,370 24,034,607 7,679
10,937,427 22,124,300 1,788,178 377,575 (10,526) (12,439) 12,009,754 (3,872,562) 10,937,427 22,124,300 1,788,178 377,575 (10,526) (12,439) 12,009,754 (3,872,562) Total net assets 10,937,427
Total liabilities and net assets
22,124,300 1,788,178
377,575 (10,526) (12,439) 12,009,754 (3,872,562)
$ 36,257,904 $ 63,548,641 $ 15,082,428 $ 1,795,303 $ 15,896 $ (69) $ 36,044,361 $ (3,864,883) 70 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Mercy Housing California 71, LP (St Francis of Assisi, California 69, LP 3001 24th Street California 59, LP California 48, LP Esperanza Mary's Tower) LLC (Francis of Assisi) LLC GP (Casa de la Mission) 623 Vernon, LLC (Roseville) Crossing II, LLC GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 594,419 $
41,903
20,776
71 50,216
707,385
9,082,485
26,662,804
528,386
(4,216,337)
15,487
$ 862,390 $
37,035
512,419
13,406
437
40,705
15,487 1,466,392
326,298
22,339,848
1,626,619
(4,234,503)
32,057,338 20,058,262
$ 1,256,132 $
109,994
100,000
1,466,126
3,210,595
33,808
17,619,911
56,439
$ 74,369 $
45,127
485,435
960
24,574
56,439 630,465
3,727,256
21,787,900
669,820
(2,273,976)
20,864,314 23,911,000
805,814 - 2,701,394 - 172,824
(29,010,782) (69,539)
112,906 - 59,070
1,425,205
102,000 69,291
46,999
918,720 (29,010,782) 2,760,464 (69,539) 102,000 1,425,205 242,115 46,999 $ 33,683,443 $ (28,995,295) $ 24,285,118 $ (69,539) $ 22,432,440 $ 1,481,644 $ 24,783,580 $ 46,999
71 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Mercy Housing California 71, LP (St Francis of Assisi, California 69, LP 3001 24th Street California 59, LP California 48, LP Esperanza Mary's Tower) LLC (Francis of Assisi) LLC GP (Casa de la Mission) 623 Vernon, LLC (Roseville) Crossing II, LLC GP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
$ 127,866 $ (311) $ 238,526 $
200,680
68,622 - 86,031
332,409 1,284,952
1,371 856
41,403 36,631
571,671 200,369 1,646,996
20,434,974
476,329
25,545,495
483,198
20,911,303 26,028,693
Total liabilities 21,482,974
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
12,200,469
200,369 27,675,689
(29,195,664)
12,200,469 (29,195,664)
12,200,469 (29,195,664)
- $ 3,547,195 $
411 798,564
30,444
10, 511, 380
(311) $
78,243
30,256 $
29,979
3,006
30,546
5,995
42,922
(211)
56,877
411 14,887,583 77,932 142,704 56,666
(295,046)
5,000,000
690,981
6,844,346
2,164,800
4,704,954 9,700,127
411 19,592,537 77,932 9,842,831 56,666
(3,390,571) (69,950)
(3,390,571) (69,950)
(3,390,571) (69,950)
2,839, 903 1,403, 712
2,839, 903 1,403, 712
2,839,903 1,403,712
$ 33,683,443 $ (28,995,295) $ 24,285,118 $ (69,539) $
14,940,749 (9,667)
14,940,749 (9,667)
22,432,440 $ 1,481,644 $
14,940,749 (9,667)
24,783,580 $ 46,999
72 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Candlestick Pointe
California 76, LP Mercy Sunnydale Parcel 11a, a California Mercy New Hope, Mercy Housing (Esperanza Transformation, Q Housing Partners, Limited Partnership 20 North LP (Woodland/180 California 74, LP Pico Robertson Crossing Phase II) LLC GP LP (Candlestick) Cottonwood LLC West Beamer) (Britton Street) LLC, GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 29,800 $
29,527
121,893
4,223
11,223
196,666
1,713,183
9,258,022
181,882
(1,427,583)
9,725,504
$ 1,276,694 $ - $
202,749 4,575
121,471
39,322
387,500
1,640,236 392,075
1,644,910
37,049,990
798,647
(1,358,349)
2,111,116
38,135,198 2,111,116
214,247 806,128
(137)
19,047 115,864
233,294
(137) 921,992
$ 70,491 $ 521,040 $
44,020 72,126
341,816 260,847
2,437 6,074
1,255
30,053 32,151
488,817 893,493
2,883,622 2,786,651
19,510,565 33,781,233
539,400 446,889
(2,211,493) (4,188,589)
20,722,094 32,826,184
2,739,225 1,750,388
(118) (74)
3,473,436
105,628 18,851
3,473,318 2,844,853
1,769,239 (74)
$ 10,155,464 $ (137) $ 40,697,426 $ 2,503,191 $ 3,473,318 $ 24,055,764 $ 35,488,916 $ (74) 73 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Candlestick Pointe
California 76, LP Mercy Sunnydale Parcel 11a, a California Mercy New Hope, Mercy Housing (Esperanza Transformation, Q Housing Partners, Limited Partnership 20 North LP (Woodland/180 California 74, LP Pico Robertson Crossing Phase II) LLC GP LP (Candlestick) Cottonwood LLC West Beamer) (Britton Street) LLC, GP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
$ 25,938 $ (311) $ 351,100 $ 8,765 $ (311) $ 157,816 $ 89,491 $ 171,065 5,652 61,221 14,823 9,219 420,358 1,529,386
5,609 - 44,535
52,410 81,672 - 413,255
- - 3,312 -
2,470 27,290 13,238 29,184
29,032 42,648 41,478 70,044
286,524 5,341 563,931 26,900 8,908 632,890 2,175,895
458,127 704,004 174,276 373,936 1,047,391
- 111,948
6,532,022 17,500,367 2,325,672 5,593,260 24,803,089
50,000 - - 4,255,745 5,005,485
- 1,640
Total long-term liabilities 7,040,149
Total liabilities 7,326,673
Net assets
Net assets without donor restrictions, controlling 2,828,791 Net assets without donor restrictions, noncontrolling - Total net assets without donor restrictions 2,828,791
Net assets with donor restrictions
Total net assets 2,828,791
Total liabilities and net assets
18,204,371 2,499,948 10,334,889 30,857,605
(311)
8,587
8,276
5,341 18,768,302 2,526,848 8,908 10,967,779 33,033,500 8,276 (5,478) 21,929,124 (23,657) 3,464,410 13,087,985 2,455,416 (8,350) (5,478) 21,929,124 (23,657) 3,464,410 13,087,985 2,455,416 (8,350) (5,478) 21,929,124 (23,657) 3,464,410 13,087,985 2,455,416 (8,350) $ 10,155,464 $ (137) $ 40,697,426 $ 2,503,191 $ 3,473,318 $ 24,055,764 $ 35,488,916 $ (74) 74 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
$ 52,353 $
60,000
182,289
117,167
27,945
Baldwin Rose LP
Mercy Housing
California 78, LP Mercy Housing Mercy Housing
(Mission Bay Block California 75, LP Placentia Veterans Placentia Veterans California 82, LP 6) (Dorothy Day) Village, LLC GP Village, LP (Treasure Island) $ 324,314 $ - $ 1,542,492 $
77,693 - 39,852
201,219 280,682 144,790
106,602 - 28,235
6,010
30,428
35,506
439,754 740,256 280,682 1,796,885
926,421
24,988,476
495,821
(311,966)
26,098,752
5,133, 769
25,959,312
420,564
(1,234,088)
55,609
99,876,624
2,145,214
31,171,879
520,443
(1,956,369)
30,279,557 99,932,233 31,881,167
1,021,233
(21) 16
$ 68,859 $
90,643
88,825
2,100
33,313
11,740
350,000
283,740 361,740
3,641,991
16,981,916
567,688
(375,013)
2,301,068
20,816,582 2,301,068
69,877 94,914 49,669 98,288 90,891
69,877
(21) 94,914 49,669 1,119,521
16 90,891
$ 26,608,383 $ (21) $ 31,114,727 $ 100,262,584 $ 34,797,573 $ 16 $ 21,191,213 $ 2,662,808 75 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
$ 2,142,128 $
424,972
41,050
15,890,144
32,837
14,656
Baldwin Rose LP
Mercy Housing
California 78, LP Mercy Housing Mercy Housing
(Mission Bay Block California 75, LP Placentia Veterans Placentia Veterans California 82, LP 6) (Dorothy Day) Village, LLC GP Village, LP (Treasure Island) (311) $ 164,375 $ 11,893,198 $ 115,683 $
7,738 580,046 4,858,643 542,500
- 6,852 48,648 88,327
4,289,988 36,859,675 614,611
1,449,818 2,155 -
20,491 622
74,330 39,352
18,545,787 7,427 6,585,900 53,662,319 1,401,095
252,015
2,573,714
3,800,000
884,379
Total long-term liabilities 7,510,108
Total liabilities
277,997
1,364,007
4,239,894 39,278,648 20,659,771
- 4,511,304
313,092 1,082,436 1,781, 764
4,830,983 46,236,395 22,441,535
26,055,895 7,427 11,416,883 99,898,714 23,842,630
Net assets
Net assets without donor restrictions, controlling 552,488 Net assets without donor restrictions, noncontrolling - Total net assets without donor restrictions 552,488
Net assets with donor restrictions
(7,448) 19,697,844 363,870 10,954,943
(7,448) 19,697,844 363,870 10,954,943
(311) $ 76,955 $ 503,284
6,383 838,900 4,155
30,621
18,628,042 -
109,121
5,018
61,066
6,072 19,640,602 616,560
44,577
619,490
55,869
2,000,000
664,067 2,055,869
6,072 20,304,669 2,672,429
(6,056)
(6,056)
886,544 (9,621)
886,544 (9,621)
Total net assets 552,488 (7,448) 19,697,844 363,870 10,954,943 (6,056) 886,544 (9,621) Total liabilities and net assets
$ 26,608,383 $ (21) $ 31,114,727 $ 100,262,584 $ 34,797,573 $ 16 $ 21,191,213 $ 2,662,808 76 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
1064 Mission
1064 Mission, LLC Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
$ $
349,906 2,190, 793
742,009
3,110
1,095,025 2,190, 793
3,696,442
35,784,163
3,696,442 35,806,663
(4,055) - (6,600)
(4,055)
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
$ $ 3,100 $ $
39,741 75,157
78,929
533
122,303 75,157
22,500 2,695,450
192,134
20,420,700
2,352,753
12,783,745
23,308,284 15,136,498
1,770,795 87,286
43 (113, 804)
114,839 83,704 - 202,506
(6,600) 114,839
43 1,854,499 (113,804) 289,792
$ (4,055) $ 4,791,467 $ (6,600) $ 38,112,295 $ 43 $
25,285,086 $ (113,804) $ 15,501,447
77 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
1064 Mission
1064 Mission, LLC Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
$
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
(311) $ 1,074,601 $ (311) $ 4,803,206 $ (311) $ 3,404,637 $ (311) $ 3,466,073 1,939 4,301 2,534 4,559,857 2,034 534,173 723 532,786
- 22,429 18,257 -
- 28,318,491 11,011,732 -
16,123 181,783 - 24,089
3,000
1,628 1,095,025
2,223 37,885,766
- (1,888,144)
Total long-term liabilities (1,888,144)
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
1,628 1,095,025
(5,683) 3,696,442
(5,683) 3,696,442
(5,683) 3,696,442
2,223 35,997,622
(8,823) 2,114,673
(8,823) 2,114,673
(8,823) 2,114,673
1,723 14,968,799
289,116
7,872,371
549,920
412 4,025,948
133,122
- 8,376,439
850,000
8,711,407 9,359,561
1,723 23,680,206
(1,680) 1,604,880
(1,680) 1,604,880
(1,680) 1,604,880
$ (4,055) $ 4,791,467 $ (6,600) $ 38,112,295 $ 43 $
412 13,385,509
(114,216) 2,115,938
(114,216) 2,115,938
(114,216) 2,115,938
25,285,086 $ (113,804) $ 15,501,447
78 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing Mercy Housing Mercy Housing Sunnydale Block 6 Sunnydale Block 6 California 95 LLC California 84, LP 1121 9th Street California 94 LLC, California 94, LP California 83, LP Development CO Housing GP (Long Beach (Bennett House) LLC, GP GP (Sherman Oaks) (Bermuda Gardens) LLC GP Partnership, LP GP) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 1,148,570 $
26,054
1,140,131
4,083
16,808
$ $ 303,536 $
44,114
97,433 37,804
76,721
17,198
22,051 22,109
$ - $
409,615
23,706
2,357,697 97,433 501,482 433,321
624,581
14,015,349
220,956
(258,604)
2,700,000
1,873,357
14,602,282 4,573,357
1,001,221
4,779,414
125,714
7,999,437
(231,910)
1 550
67,607,479
13,673,876 67,608,030
791,667 1,500,000
100 (1)
(13,710)
15,431 10,653 17,347 66,906
807,098 100
$ 17,767,077 $ 100 $
4 (1) 10,653 1,517,347 (13,710) 66,906 4
(1) $ 4,681,443 $
15,692,705 $ (13,710) $ 68,108,257 $ 4
79 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing Mercy Housing Mercy Housing Sunnydale Block 6 Sunnydale Block 6 California 95 LLC California 84, LP 1121 9th Street California 94 LLC, California 94, LP California 83, LP Development CO Housing GP (Long Beach (Bennett House) LLC, GP GP (Sherman Oaks) (Bermuda Gardens) LLC GP Partnership, LP GP) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
$ 836,971 $ - $ - $ 9,009 $ 2,626,824 $ - $ 14,460,038 $ - 770,401 1,212 311 3,422 2,472,855 612 1,045,835 312
28,212 - - - 10,310 - -
- - - 13,186 -
21,025,277 - - 9,215,744
2,748 2,106,289
6,843 10,194
25,578 39,915
22,696,030 1,212 311 2,131,906 14,375,842 612 15,505,873 312 27,619
(229,770)
972,007
2,727,956
68,026
- (141,574) 2,731,404
2,700,000 1,500,000
3,144
436,484
43,086,870
3,369,890
3,497,812 2,558,426 4,302,574 46,893,244
Total liabilities 26,193,842
Net assets
Net assets without donor restrictions, controlling (8,426,765) Net assets without donor restrictions, noncontrolling - Total net assets without donor restrictions (8,426,765) Net assets with donor restrictions
Total net assets (8,426,765)
Total liabilities and net assets
1,212 311 4,690,332 18,678,416
612 62,399,117 312
(1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) (1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) (1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) $ 17,767,077 $ 100 $
4,681,443 $ 15,692,705 $ (13,710) $ 68,108,257 $ 4
80 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing Cailifornia 96, LP
California 95, LP California 97, LP Mercy HPSY Block Hunters Point Block Middlefield Junction (Middlefield Mercy Housing (Long Beach) 600 7th Street GP (600 7th Street) 56 LLC 56, LP LLC GP Junction) California 99 LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
8,453
$ 2,280 $
165,000
$ 425,452 $
8,453 167,280 425,452
2,207,150
807,437 - 788,769 - 348,053
3,014,587 788,769
103,700
103,700
(1) (2,737)
$ 3,126,740 $
$ $
1,907,759
348,053 1,907,759
(1) (2,737)
956,049 $ (2,737) $
(3) 99
(3) 99
773,505 $ (3) $ 1,907,759 $ 99
81 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing Cailifornia 96, LP
California 95, LP California 97, LP Mercy HPSY Block Hunters Point Block Middlefield Junction (Middlefield Mercy Housing (Long Beach) 600 7th Street GP (600 7th Street) 56 LLC 56, LP LLC GP Junction) California 99 LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 65,519 $ - $ 296,953 $ - $ 217,197 $ - $ 190,341 $
311 874 311 832 311 833
10,744 -
857,012 134 134,347 362,600
2 -
411
933,275 311 297,963 311 352,376 311 553,774 411
(43,584)
2,200,000
7,398
657,071
2,156,416 664,469
3,089,691 311 962,432
37,049 (312) (6,383)
37,049 (312) (6,383)
37,049 (312) (6,383)
315
425,452
425,767
1,381,332
1,381,332
311 778,143 311 1,935,106 411
(3,048) (4,638) (314) (27,347) (312)
(3,048) (4,638) (314) (27,347) (312)
$ 3,126,740 $ (1) $ 956,049 $
(3,048)
(2,737) $
(4,638)
773,505 $
(314)
(3) $
(27,347) (312)
1,907,759 $ 99
82 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Consolidated
California 99, LP Mercy Housing California 100, LP 7789 La Mancha California 90, LP Mercy Housing (North Auburn) California 100 GP (Whittier) Way LLC (Capital Park) Eliminations Calwest Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
$ 59,703 $
1 59,704
10,624,812
$ 12,766 $ 249,444 $
1,036,525
$ $ 21,652,212
2,489,320
14,011,622
152,868 - 3,303,399
800 (1,478,437) 950,396
10,563
313,657 7,500
12,766 1,599,626
2,021,934
249,133
10, 624,812 2,271,067
219,387
1 219,387 1
3,021,548
161,168 (1,478,437) 45,439,060
3,519,749 2,145,039 700,824 137,306,555
11,226,996 7,911,772 - 1,172,171,307
3,803 - 29,379,728
- - - 10,386,692
979,915 7,737,880 285,133,774
(17,008) (199,484,899)
15,713,455 17,794,691 700,824 1,434,893,157
1,340,011
66,342,120
63,056,129 (3,402,896)
(50,000) -
(16,343,566) 1,397,285
107,000 19,423,933
1,447,011
46,662,563 83,760,442
Total assets $ 10,903,903 $ 1 $ 2,283,833 $ 17,313,081 $ 19,402,870 $ 45,884,950 $ 1,564,092,659

Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Consolidated
California 99, LP Mercy Housing California 100, LP 7789 La Mancha California 90, LP Mercy Housing (North Auburn) California 100 GP (Whittier) Way LLC (Capital Park) Eliminations Calwest Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
$ 2,533,793 $
336,626
9,574
27,883
$ 4,399 $ 40,092 $ 699,119 $ (359,383) $ 58,412,607
- 12,516 100,000 (1,784,476) 25,990,669
- 1,589,805
- - - 23,930
- - - - 160,828,040
293,234 6,764 67,734 5,645,146
- 2,196,288
2,504,294
2,907,876 297,633 59,372 866,853 (2,143,859) 257,190,779 4,826,533
- 47,582,791
- (867,038) 1,065,337
1,977,999 14,218,251 783,327, 585
- 1,340,000 (18,904,061) 40,763,327
- 32,850,402
4,826,533 1,977,999
7,734,409 2,275,632
3,169,494 1
3,169,494 1
15,558,251 (19,771,099) 905,589,442
59,372 16,425,104 (21,914,958) 1,162,780,221
8,201 17,253,709 2,977,766 67,799,908 401,312,438
8,201 17,253,709 2,977,766 67,799,908 401,312,438
Total net assets 3,169,494 1 8,201 17,253,709 2,977,766 67,799,908 401,312,438 Total liabilities and net assets $ 10,903,903 $ 1 $ 2,283,833 $ 17,313,081 $ 19,402,870 $ 45,884,950 $ 1,564,092,659

Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Third and LeConte
Mercy Housing Mercy Housing California XXXVIII, Mercy Housing Mercy Housing Associates LP Mercy Housing California XXXIX, LP California XL, LP LP (East Leland California XLII, LP California XLIV LP (Bayview Hill Caroline Calwest (Gleason Park) (Arlington Hotel) Courts) (Boulevard Court) (1180 Fourth Street) Gardens) Severance LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ - $ 711,189 $ 2,050,034 $ 808,687 $ 335,124 $
680,983
422,013 394,939
113,675 60,942 119,944 95 124,189
1,561,171 33,141 146,844 24,291 268,994
2,355,829 805,272 2,738,835 833,073 1,123,246
1,869,902 $
1,712,177 $
6,585 24,311
883,757 13,076
2,760,244
10,508
1,749,564 10,508
- 216,207 555,087 129,223 462,356 587,973 592,143 -
2,100,598 181,866 351,710 140,992 113,779 325,022 156,720 11,362 4,423 111,579 294,213 62,967 98,015 116,472 93,545 1,573 831,323 1,448,600 902,006 555,933 1,697,429 1,179,095
257,872 758,882 348,127 243,078 1,471,175 659,163
772 842,632 288,836 90,818 490,448 375,431
8,278 77,708 46,871 4,503 96,223 27,955
(76,864) 135
2,028,157 1,607,897 4,328,832 1,919,022 1,568,482 4,784,742 3,084,052 13,070 327,672 (802,625) (1,589,997) (1,085,949) (445,236) (2,024,498) (1,334,488) (2,562) (40,658,736) (6,561,306) (13,743,054) (325,992) (2,652,724) 19,220,744 5,457,553 (22,455) (128,561) - (76,294) - - - - -
$ (40,459,625) $ (7,363,931) $ (15,409,345) $ (1,411,941) $ (3,097,960) $ 17,196,246 $ 4,123,065 $ (25,017) 85 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing 1100 Ocean
Mercy Housing Mercy Housing California 52, LP Avenue Limited 55 Laguna, LP California XLIII, LP Mercy Housing California 53, LP (School House Partnership (1100 (Open House (Caroline California 47, LP Madonna Senior (Madonna Station -Vista Ocean Avenue Community at 55 Severance Manor) 7th & H GP, LLC (7th & H Street) Housing LLC Residences) Grande) Apts.) Laguna) Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 1,455,500 $ - $ 1,157,490 $ - $ 934,317 $ 1,458,269 $ 843,620 $ 662,845 6,227
38,193
17,911 - 15,000
1,499,920 17,911
233,914
159,437
168,775
1,089,901
515,752
655,385
26,316
127,748
41,431
1,326,669 15,000
449,706
18,766 196,333
1,593 227,087
1,434,794
514,479
92,464
31,430
119,142
10,086
72 26,676
312,468 467,858
1,063,545 1,770,809
712
27,717
1,338,154 691,274
- 372,105 167,239 212,110 162,808
14,605 133,310 216,069 164,960 131,086
1,573 125,709 83,443 107,349 63,344
424,285 535,902 899,154 1,115,407
455,102 414,503 578,210 245,893
147,570 480,666 255,616 271,038
60,445 62,423 63,008
162 66
2,849,480 20,521 2,946,293 16,244 1,718,526 1,960,245 2,280,407 1,989,576 (1,349,560) (2,610) (1,619,624) (1,244) (654,981) (189,436) (942,253) (1,298,302) 5,624,061 14,170,647 23,421,551 (6,296) 2,855,415 3,750,166 10,791,349 16,417,478 $ 4,274,501 $ 14,168,037 $ 21,801,927 $ (7,540) $ 2,200,434 $ 3,560,730 $ 9,849,096 $ 15,119,176
86 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing
California 54, LP Mercy Housing California 56, LP Coastside Senior Esparto Family (Esperanza Sunset Lane California 55, LP (Jefferson Park Housing Limited EI Monte Veterans EI Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets - - - - - (1,191)
- $ 466,608 $ $ 325,257 $ 696,262 $ 607,980 $ - $ 466,231 8,500 - - 10,741
95 10,150
8,500 476,853
80,837
9,355 59,731
1,593 32,079
366,936
38 170,984
150,130
1,105
10,986 861,802
88 318
42,633 6,244
367,978
5,026
130,049
702,824 743,055
- 74,398 191,867 128,877
854 61,531 101,454 99,066
1,593 33,216 29,886 12,383
- 322,799 623,467 523,750
127,962 229,614 194,519
144,210 229,288 161,070
13,158 64,340 -
339
5,626
10,741 472,196
11,596
1,573
41 26
2,488 777,274 1,469,916 1,119,665
170,112
90,503
87,617
444,013
116,389
75,107
13,195 983,741
(2,486) (384,949) (2,488) (409,296) (767,092) (376,610) (2,454) (511,545) (21,662) 4,327,234 (20,485) 4,796,284 5,706,033 5,318,498 65,432 5,692,968 Net assets at end of year
$ (24,148) $ 3,942,285 $ (22,973) $ 4,386,988 $ 4,938,941 $ 4,941,888 $ 62,978 $ 5,180,232
87 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing Mercy Housing
1028 Howard California 60, LP California XI, LP Mercy Eden House Transbay Block 6, California 62, LP Sunset Valley Street, LLC (Quinn Cottages) (Madison Place) LLC Eden House, L.P. LLC (280 Beale) Duplexes, LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 658,687 $ 172,863 $ 383,107 $
58 107,744 110
9,220 17,695 20,528
Total revenues 667,965
298,302 403,745
$ 1,970,830 $
24,782
19,797
- $
887,253 $
44,238 - 8,500
7,410
464,519
2,015,409 44,238 1,359,182 8,500
Expenses and losses
Compensation 105,278 276,104 102,056 - 263,836 - 90,897 - Administrative 48,687 71,371 52,455 249,031 187,043 50,752 219,944 9,372 Professional services 37,569 15,139 1,212 2,523 136,780 1,573 64,603 1,593 Depreciation and amortization 165,396 218,333 152,227 428,381 - 724,087 Grants - - - -
Facility 167,662 235,161 179,032 506,696 511,723
Interest and fees 64,951 122,851 145,313 287,448 469,618 Bad debts 12,087 3,113 2,746 51,362 84,688
Provision for impaired assets - - -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership (15) 81 68 Total expenses and losses 601,630 942,072 635,041 251,539 1,861,546 52,406 2,165,560 11,033 Excess (deficiency) of revenues over expenses 66,335 (643,770) (231,296) (251,539) 153,863 (8,168) (806,378) (2,533) Net assets at end of year (330,701) 2,741,921 (1,342,867) 1,366,743 6,217,643 518,099 7,160,955 474,845 Other transfers to (from) net assets - 38,169 - (248,177) - - Net assets at end of year $ (264,366) $ 2,136,320 $ (1,574,163) $ 1,115,204 $ 6,123,329 $ 509,931 $ 6,354,577 $ 472,312 88 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing
California 63, LP Mercy Housing Mercy Housing
(Sunset Valley Land Park Woods, California 68, LP Transbay Block 7, California 64, LP Mercy Mather Duplexes) 345 Arguello, LP LLC (Land Park Woods) 1880 Pine, LP LLC (Transbay Block 7) Veterans, LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 673,827 $ 1,279,854 $
- $ 601,733 $ 2,233,524 $
21,854
2,003,189 $
140,878 - 205
25,088 18,790 40,514 21,413 89
11,707 19,619 11,607 17,250 26,796
710,622 1,318,263
21,854 653,854 2,272,187 140,878 2,030,074 205
136,641 207,447 - 144,057 348,879 - 257,506
142,362 150,469 22,708 110,626 205,909 141,677 296,647
74,970 163,215 1,573 67,612 256,550 1,573 171,294
636,901 760,538 - 489,191 918,800 - 1,735,845
- 38,733 - -
237,503 266,858 227,575 736,412 717,609
159,270 494,010 144,653 777,412 663,814
1,711 3,803 21,438 35,229 74,455
55 (19,119) -
1,005
1,573
189 30
1,389,358 2,085,073 24,336 1,205,152 3,260,072 143,439 3,917,170 2,608 (678,736) (766,810) (2,482) (551,298) (987,885) (2,561) (1,887,096) (2,403) 11,707,017 10,346,006 109,399 5,758,252 11,708,616 484,493 25,935,621 108,610 (132,921) - (312,688) - 1,039,340
$ 11,028,281 $ 9,446,275 $ 106,917 $ 5,206,954 $ 10,408,043 $ 481,932 $ 25,087,865 $ 106,207 89 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing Laguna Senior
California 61, LP California 65, LP Housing, L.P. (95
(Mather Veterans Mercy Housing (The Arbor at Mercy Laguna LLC, Laguna Senior Village) California 65, LLC Hesperion) Plaza Maria, LLC GP Housing) JFK Tower, LP 2698 California, LP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 526,695 $
222,595
10,980
914,363 $ 995,158 $
102,411 40,883
13,553
7,045
15,434
1,120,035 $
2,232,637 $ 856,983
253 42,921
120,586 6,200
16,716
3,091
760,270 102,411 934,961 1,010,592 40,883 1,240,874 2,281,758 876,790 230,687 - 203,824 121,636
76,674 103,266 190,515 90,331
109,654 1,573 97,204 8,067
455,596 - 678,992 274,010
151,916 257,065 307,551
92,419 470,711 273,505
1,610 9,841 36,959
- 244,761 288,337 125,118
43,763 146,298 237,787 137,141
1,573 55,969 238,426 94,659
1,205,103 1,376,018 725,645
344,803 631,448 256,677
938,045 865,101 378,011
7,037 15,549 8,017
97 87
1,118,556 104,936 1,908,152 1,112,059 45,423 2,942,016 3,652,666 1,725,268 (358,286) (2,525) (973,191) (101,467) (4,540) (1,701,142) (1,370,908) (848,478) 13,728,220 (10,106) 8,880,359 (3,961,454) 129,666 989,399 17,342,115 9,280,437 (8,407) (100,000) 22,389,969 (5,474) 250,070
$ 13,369,934 $ (12,631) $ 7,898,761 $ (4,162,921) $ 125,126 $ 21,678,226 $ 15,965,733 $ 8,682,029 90 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing
California 66, LP Mercy Housing New Dana Strand
(Colma Veterans 455 Fell, LP (Parcel California 67, LP Historic Live Oak Mercy Housing Mercy Housing La IV, LP (Camino Del St Mary's Tower, Village) O) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 1,886,387 $ 1,394,232 $ 1,088,166 $ 104,941 $
112
8,018 619,163 24,460
1,894,405 2,013,395
23 9,341
1,112, 738 114,305
209,056 365,576 120,150 9,550
259,915 273,685 87,750 25,899
140,033 113,378 127,322 5,787
1,408,639 2,338,852 713,846 69,936
- 64,066 -
446,750 710,965 287,691 47,611
966,386 1,066,895 306,656 576
1,118 7,839 -
15,914
$ 2,311,398 $
996
40,354
15,914 2,352,748
16,769
1,573
112,034
853 227,896
2,523 64,837
750,552
747,275
849,237
45,245
800
623
4 36 46
3,431,897 4,877,190 1,707,481 159,359 18,346 3,412 2,797,076 1,469 (1,537,492) (2,863,795) (594,743) (45,054) (2,432) (3,412) (444,328) (1,469) 156,978 2,607,622 2,524,786 422,629 (8,094) (9,027) 12,454,082 (3,871,093) 12,317,941 22,380,473 (141,865) - - - -
$ 10,937,427 $ 22,124,300 $ 1,788,178 $ 377,575 $ (10,526) $ (12,439) $ 12,009,754 $ (3,872,562) 91 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Mercy Housing California 71, LP (St Francis of Assisi, California 69, LP 3001 24th Street California 59, LP California 48, LP Esperanza Mary's Tower) LLC (Francis of Assisi) LLC GP (Casa de la Mission) 623 Vernon, LLC (Roseville) Crossing II, LLC GP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 2,637,964 $ - $ 4,452,355 $
139
9,824
Total revenues 2,647,927
21,477
76,176
41,000
21,477 4,569,531
Expenses and losses
Compensation 308,593 - 765,262
Administrative 279,462 22,332 221,704
Professional services 174,382 1,573 11,494
Depreciation and amortization 1,074,912 - 1,234,142
Grants - -
Facility 419,810 922,198
Interest and fees 853,965 1,143,618
Bad debts 1,106 -
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership (27)
Total expenses and losses 3,112,230 23,878 4,298,418
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
(464,303) (2,401) 271,113
$ $
56,439
558,480 $
19 54,074
56,439 612,573
158,480
11,076 57,268 103,953
311 5,232 1,573 61,178
1,027,366
672 176,321
217,752
29,745
2 116
313 16,308 59,629 1,774,795
(313) (16,308) (3,190) (1,162,222)
12,262,748 (29,031,026) (3,499,447) (69,637) 2,856,111 1,406,902 15,850,893 402,024 (162,237) (162,237) - 100 - 252,078
800
2,523
48 3,371
(3,371)
(6,296)
$ 12,200,469 $ (29,195,664) $ (3,390,571) $ (69,950) $ 2,839,903 $ 1,403,712 $ 14,940,749 $ (9,667) 92 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Candlestick Pointe
California 76, LP Mercy Sunnydale Parcel 11a, a California Mercy New Hope, Mercy Housing (Esperanza Transformation, Q Housing Partners, Limited Partnership 20 North LP (Woodland/180 California 74, LP Pico Robertson Crossing Phase II) LLC GP LP (Candlestick) Cottonwood LLC West Beamer) (Britton Street) LLC, GP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 451,367 $
26 $ 1,707,417 $
4,538 8,646
Total revenues 455,931
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
56,724
42,581
31,327
459,253
118,975
230,018
1,590
- $ 754,771 $ 2,439,142 $
1,317
1,716,063 1,317
254,540
255,188
1,572 93,298
1,095,681
446,829
1,604,475
19,927
301 20,964
31,117 25,533
786,189 2,485,639
162,285 281,411
55 2,117 137,103 202,972
5,999 1,573 172,235 177,232
1,020,575 1,749,015
311,776 568,024
290,756 1,030,141
61,252 65,446
800
1,573
103 70 72
940,468 1,675 3,769,938 6,054 3,760 2,155,982 4,074,241 2,445 (484,537) (1,675) (2,053,875) (6,054) (2,443) (1,369,793) (1,588,602) (2,445) 3,313,328 (3,803) 1,797,737 (17,603) 3,466,853 14,457,778 (8,857,898) (5,905) 22,185,262 - - 12,901,916 -
$ 2,828,791 $ (5,478) $ 21,929,124 $ (23,657) $ 3,464,410 $ 13,087,985 $ 2,455,416 $ (8,350) 93 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
$ 53,859 $
720
Baldwin Rose LP
Mercy Housing
California 78, LP Mercy Housing Mercy Housing
(Mission Bay Block California 75, LP Placentia Veterans Placentia Veterans California 82, LP 6) (Dorothy Day) Village, LLC GP Village, LP (Treasure Island) $ 904,548 $
10,830
54,579 915,378
65,368
138,990
33,235
313,554
40,470
181,574
118,669
1,066 178,946
1,573 173,397
1,189,553
116,088
340,755
4,831
$ 3,470,128 $
$ 199,110 $
54 -
84,488 142
3,554,670 199,252
729,926
34,511 399,870
4,399 10,997
1,304,230
320,351
1,051,660
31,782
854 110,010
1,573 52,700
377,878
62 34
100,169
195,664
823
4,399
773,191 2,701 2,122,239 38,910 3,817,034 2,461 868,203 _ (718,612) (2,701) (1,206,861) (38,910) (262,364) (2,461) (668,951) 1,226,100 (4,747) 1,936,429 402,780 (6,129,393) (3,595) 724,505 45,000 - 18,968,276 17,346,700 - 830,990 _
$ 552,488 $ (7,44) $ 19,697,844 $ 363,870 $ 10,954,943 $ (6,056) $ 886,544 $ 5,222
(5,222)
(4,399)
(9,621)
94 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
1064 Mission
1064 Mission, LLC Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
$ $
3,706,208
Total revenues 3,706,208
$ $
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
$ - $
33 $ 10,500
51 33 10,551
Expenses and losses
Compensation - - - - -
Administrative - - 1,599 18,529 1,049 127,890 - 224,352 Professional services 1,573 4,399 623 4,399 623 4,399 312 4,399 Depreciation and amortization - - - -
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership 1 2,201 7 43,631 Total expenses and losses 1,574 4,399 4,423 22,928 1,679 132,289 43,943 228,751 Excess (deficiency) of revenues over expenses (1,574) 3,701,809 (4,423) (22,928) (1,679) (132,256) (43,943) (218,200) Net assets at end of year (55) (5,367) (4,399) (4,399) (1) 1,737,136 (70,262) (70,269) Other transfers to (from) net assets (4,054) - (1) 2,142,000 - - (11) 2,404,407 Net assets at end of year $ (5,683) $ 3,696,442 $ (8,823) $ 2,114,673 $ (1,680) $ 1,604,880 $ (114,216) $ 2,115,938 95 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing Mercy Housing Mercy Housing Sunnydale Block 6 Sunnydale Block 6 California 95 LLC California 84, LP 1121 9th Street California 94 LLC, California 94, LP California 83, LP Development CO Housing GP (Long Beach (Bennett House) LLC, GP GP (Sherman Oaks) (Bermuda Gardens) LLC GP Partnership, LP GP) Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 1,821,774 $ 113,700 $
2,077
4,062 32,893
Total revenues 1,827,913
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 1,221,668 $
8,626
146,593 1,230,294
263,485 -
171,745 801
120,302 311
201,113 -
195,040 96,414
706,532 135
312
258,230
91 127,283
4,399 149,497
223,826
283,897
125,065
71,915
301
311
$ $
2,935
4,399
312
1 (4)
1,658,217 97,662 312 4,490 1,239,713 612 7,334 _
169,696 48,931 (312) (4,490) (9,419) (612) (7,334)
(8,596,461) (50,043) (4,399) (2,976,342) (13,710) 3,784,544 - - 50 - 1,931,930 _
$ (8,426,765) $ (1,112) $ (312) $ (8,889) $ (2,985,711) $ (14,322) $ 5,709,140 $ 308
(308)
(308)
96 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing
Mercy Housing Mercy Housing California 96, LP
California 95, LP California 97, LP Mercy HPSY Block Hunters Point Block Middlefield Junction (Middlefield Mercy Housing (Long Beach) 600 7th Street GP (600 7th Street) 56 LLC 56, LP LLC GP Junction) California 99 LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 43,000 $
Total revenues 43,000
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
1,552
4,399
311
$ $
1,984
4,399
311
1 2,737
5,951 312
37,049 (312)
6,383 3,048
$ $
239
4,399
311
$ $
22,948
4,399
311
3 - 1
4,638 314
27,347 312
(6,383) (3,048) (4,638) (314) (27,347) (312)
$ 37,049 $ (312) $ (6,383) $ (3,048) $ (4,638) $ (314) $ (27,347) $ (312) 97 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Mercy Housing Mercy Housing Mercy Housing Consolidated
California 99, LP Mercy Housing California 100, LP 7789 La Mancha California 90, LP Mercy Housing (North Auburn) California 100 GP (Whittier) Way LLC (Capital Park) Eliminations Calwest Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ $
5,912
4,399
10,311
(10,311)
3,179,805 _
$ 3,169,494 $
$ 12,600 $ (6,500) $
2,000,000
14,554,655 _
12,600 16,548,155
$ - $ 61,703,237
(1,167,011) 30,748
6,523,160
11 (108,190) 1,271,012
20,378,287
11 (1,275,201) 89,906,444
8,862 - 12,214,009
- 21,664 - (1,402,939) 10,260,521
4,399 10,850 4,399 - 5,192,958
- 17,008 41,909,788
- 102,799
17,331 - - 19,412,052
646 (214,715) 22,046,404
- 1,263,422
(19,119)
(160,869) (187,529)
4,399 75,715 5,045 (1,778,523) 112,195,305
8,201 16,472,440 (5,034) 503,322 (22,288,861)
66,878,087 279,896,349
781,269 2,982,800 418,499 143,704,950
1 $ 8,201 $ 17,253,709 $ 2,977,766 $ 67,799,908 $ 401,312,438

Mercy Properties California
Consolidating Statement of Financial Position
December 31, 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Fumiture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
$ $ 40,089 $ 503,657 $ 125,933 $
15,005 - 26,726
1,322 - 2,171
988,093 146 -
6,356
3,768
6,529
Richmond Hills
Sycamore Center
(Red Bluff)
85,634 $
5,139
132,647 $
506
(677)
4,717
Eliminations
(12,000)
Consolidated
Mercy Properties
California
$ 887,960
42,237
2,816
976,239
26,509
988,093 62,918 507,425 161,359 90,773 137,193 (12,000) 1,935,761 3,700,000
96,144 658,571 602,623 368,530
685,902 4,394,710 3,667,467 2,640,978
- 105,508 11,660 32,811
(472,553) (3,864,418) (2,823,537) (1,995,205)
3,700,000 309,493 1,294,371 1,458,213 1,047,114
58,366
2,634,992
15,819
1,798,713)
910,464
5,484,234
14,024,049
165,798
(10,954,426)
8,719,655
26,889 215,660 288,879 55,076 211,246 797,750
60,000 - - 60,000
22,000
82,000
26,889 215,660
22,000
288,879 55,076 211,246 879,750
$ 4,770,093 $ 399,300 $ 2,017,456 $ 1,908,451 $ 1,192,963 $ 1,258,903 $ (12,000) $ 11,535,166 99 Mercy Properties California
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
Richmond Hills
Sycamore Center
(Red Bluff)
Eliminations
Consolidated
Mercy Properties
California
$ (416) $ 20,370 $ 62,519 $ 30,978 $ 4,165 $ 17,326 $ 12,000 $ 146,942 12,000 - 158,523 - 170,523
636,051 7,126 - 1,604 644,781
62,524 26,248 - 88,772
83,451 - - - 103,653 - 187,104
10 9,748 6,517 817 1,375 18,467
14,505 - 26,226 5,000 6 45,737
95,035 34,885 708,318 133,371 272,158 46,559 12,000 1,302,326 580,985 580,985
60,000 1,260,000 2,022,912 346,389 3,689,301
12,500 12,500
60,000 1,260,000 2,603,897 358,889 4,282,786
155,035 34,885 1,968,318 2,737,268 272,158 405,448 12,000 5,585,112 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 $ 4,770,093 $ 399,300 $ 2,017,456 $ 1,908,451 $ 1,192,963 $ 1,258,903 $ (12,000) $ 11,535,166 100

Mercy Properties California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
$ - $ 183,953 $
24,000
40 1,657,361 3,536
1,681,361 187,529
10,344 $
39,588
672
4,874
510,565 $
122
2,568
Richmond Hills
Sycamore Center
(Red Bluff)
43,202 $ 151,641 $
175,944
76 102
37,778
Eliminations
(24,000)
Consolidated
Mercy Properties
California
$ 899,705
215,532
1,012
1,706,117
55,478 513,255 219,222 189,521 (24,000) 2,822,366
- 93,100 - 76,163 - 7,889
781,566 22,305 1,050 46,339 35 12,656
2,915 2,993 2,499 7,880 3,332 2,500
24,904 169,061 135,417 96,370 101,970
64,795 29,336 131,065 10,721 82,161
37,800 103,340 5,290 18,398
2,229 - 2,063 -
(12,000)
177,152
851,951
22,119
527,722
318,078
164,828
4,292
784,481 210,326 239,746 502,267 115,748 225,574 (12,000) 2,066,142 896,880 (22,797) (184,268) 10,988 103,474 (36,053) (12,000) 756,224 3,718,178 387,212 233,406 (839,805) 817,331 889,508 (12,000) 5,193,830 $ 4,615,058 $ 364,415 $ 49,138 $ (828,817) $ 920,805 $ 853,455 $ (24,000) $ 5,950,054 101

San Juan Housing Corporation
Consolidating Statement of Financial Position
December 31, 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Fumiture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Tahoe Valley
Kennedy Estates Townhomes
Housing Associates, Associates, LP
San Juan Housing LP (Kennedy (Tahoe Valley
Corporation Estates) Townhomes)
455,420
455,420
(36,211)
$ 380,324 $ 174,473 $
65,446 63,002
13,556
22,759
4,725
22,210
Eliminations
(455,420)
Consolidated San
Juan Housing
Corporation
$ 554,797
128,448
18,281
44,969
482,085 264,410 (455,420) 746,495
809,872 924,352
5,844,681 2,125,253
158,541 3,631,483
(5,102,408) (5,006,620)
1,710,686 1,674,468
1,734,224
7,969,934
3,790,024
(10,109,028)
3,385,154
420,142 215,223 - 635,365
36,211
(36,211) 420,142 215,223 36,211 635,365
$ 419,209 $ 2,612,913 $ 2,154,101 $ (419,209) $ 4,767,014

San Juan Housing Corporation
Consolidating Statement of Financial Position
December 31, 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Tahoe Valley
Kennedy Estates Townhomes
Housing Associates, Associates, LP
San Juan Housing LP (Kennedy (Tahoe Valley
Corporation Estates) Townhomes)
Eliminations
Consolidated San
Juan Housing
Corporation
$ 117,089 $ 58,947 $ 21,555 $ - $ 197,591
121,301 349,179 317,437 (666,616) 121,301
6,399 6,870 13,269
30,356 112,547 142,903
10,396 12,181 22,577
64,948 61,892 126,840
Total current liabilities 238,390
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
520,225 532,482 (666,616) 624,481
632,194
1,836,012
2,468,206
2,472,000 4,174,226 6,646,226
853 672 1,525
3,105,047 6,010,910 9,115,957
238,390 3,625,272 6,543,392 (666,616) 9,740,438
180,819 (1,012,359) (4,389,291) 247,407 (4,973,424)
180,819 (1,012,359) (4,389,291) 247,407 (4,973,424)
180,819
1,012,359) (4,389,291) 247,407 (4,973,424)
$ 419,209 $ 2,612,913 $ 2,154,101 $ (419,209) $ 4,767,014

San Juan Housing Corporation
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Tahoe Valley
Kennedy Estates Townhomes
Housing Associates, Associates, LP
San Juan Housing LP (Kennedy (Tahoe Valley
Corporation Estates) Townhomes)
802,551 $ 735,524 $
Eliminations
Consolidated San
Juan Housing
Corporation
- $
56,035 (56,035)
Total revenues 56,035
778
26,739
3,480
15,994
1,538,075
4,258
42,733
830,068 754,998 (56,035) 1,585,066
Expenses and losses
Compensation 208,370 157,177 - 365,547
Administrative 56,115 129,100 105,453 (56,123) 234,545
Professional services 1,090 12,190 10,336 23,616
Depreciation and amortization - 235,192 205,925 - 441,117 Grants -
Facility - 328,057 204,772 - 532,829
Interest and fees 118,154 172,796 290,950
Bad debts - - 1,087 - 1,087
Provision for impaired assets - -
Project expenses -
Allocation
(Gain) loss on sale of assets - -
(Gain) loss on investment in limited partnership 30 - 30) Total expenses and losses 57,235 1,031,063 857,546 (56,153) 1,889,691 Excess (deficiency) of revenues over expenses (1,200) (200,995) (102,548) 118 (304,625) Net assets at beginning of year 182,019 (811,364) (4,286,743) 247,289 (4,668,799) Other transfers to (from) net assets
Net assets at end of year
$ 180,819 $ (1,012,359) $ (4,389,291) $ 247,407 $ (4,973,424)

CohnReznick✓p
ADVISORY • ASSURANCE • TAX
Independent Member of Nexia International
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Mercy Housing California
Consolidated Financial Statements
(With Supplementary Information)
and Independent Auditor's Report
December 31, 2021 and 2020
4•-,‘
CohnReznick'<
ADVISORY • ASSURANCE • TAX

CohnReznick LLP
cohnreznick.com
Independent Auditor's Report
To the Board of Directors
Mercy Housing California
Opinion
CohnReznick0
ADVISORY • ASSURANCE . TAX
We have audited the accompanying consolidated financial statements of Mercy Housing California, which comprise the consolidated statements of financial position as of December 31, 2021 and 2020, and the related consolidated statements of activities, changes in net assets, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Mercy Housing California as of December 31, 2021 and 2020 and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United Stated of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America ("GAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Mercy Housing California and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Mercy Housing California's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. 2 Charlotte, North Carolina
June 6, 2022
CohnReznick0
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Mercy Housing California's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Mercy Housing California's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit.

Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating financial information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. 3 Mercy Housing California
Consolidated Statements of Financial Position
December 31, 2021 and 2020
2021 2020
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Accounts receivable, net
Due from affiliates, net
Pledges receivable, net
Grants receivable
Notes and interest receivable
Notes and interest receivable, affiliates
Prepaid expenses and other assets
Assets held for sale
Total current assets
Property and equipment, net
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates, net
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Other assets, net
Total other long-term assets
$ 42,024,383 $ 37,660,980
3,857,026 3,376,397
13,447,227 17,178,797
- 2,162,999
13, 966, 883 10, 226, 914
67,671,551 62,786,884
4,932,317 9,750,000
53,183 63,745
48,849 37,729
256,291 265,271
10,625,318 2,895,946
2,056,314 -
158, 939, 342 146,405,662
1,820,643,865 1,624,376,010
102,372,645
9,620,000
465,000
221,003
14,385,621
10,589,473
1,397,354
6,934,238
22,767,787
84,268,711
11,085,000
405,000
221,004
13,875,365
2,087,649
2,099,966
6,904,605
19,877,159
168,753,121 140,824,459
Total assets $ 2,148,336,328 $ 1,911,606,131
4 Mercy Housing California
Consolidated Statements of Financial Position
December 31, 2021 and 2020
2021 2020
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, net
Notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Commitments
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 59,261,460 $ 66,181,669
5,060,706 3,811,584
3,493,985 2,741,545
2,170 23,930
225,418,006 168,632,240
15,621,385 13,571,651
3,389,577 2,729,134
3,927,237 3,500,339
316,174,526 261,192,092
73,045,019
175,770
1,030,541,284
3,918,313
22,152,953
64,066,534
175,770
883,362,201
6,618,312
19,077,651
1,129,833,339 973,300,468
1,446,007,865 1,234,492,560
145,630,385
515,515,004
130,113,023
507,762,640
661,145,389 637,875,663
41,183,074 39,237,908
702,328,463 677,113,571
$ 2,148,336,328 $ 1,911,606,131
See Notes to Consolidated Financial Statements.
5 Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2021
Programs
Property Resident Housing Without Donor With Donor
Operations Services Development Total Restrictions Restrictions Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Unrealized (loss)/gain and interest
Other
Release of restricted assets
$ 91,769,802 $
19,427
1,317,538
9,353,328
(1,678,024)
6,048,609
Total revenue 106,830,680
Expenses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses
Excess (deficiency) of revenue over expense
Consolidated
Attributable to noncontrolling interest
$ $ 91,769,802 $ 91,769,802 $
18,692,099 18,692,099 18,692,099
2,472,088 - 2,491,515 2,491,515
2,704,084 5,491,579 9,513,201 5,620,830
- 1,588,261 10,941,589 10,941,589
699,856 - 699,856 699,856
3,203 460,024 (1,214,797) (1,214,797)
50,194 6,654,753 12,753,556 12,753,556
1,947,205
3,892,371
(1,947,205)
5,929,425 32,886,716 145,646,821 143,701,655 1,945,166
21,127,348 7,866,279 8,201,914 37,195,541 37,195,541
11,987,581 1,970,958 2,306,794 16,265,333 16,265,333
2,646,190 158,917 960,036 3,765,143 3,765,143
60,706,056 - 167,820 60,873,876 60,873,876
273,136 278,779 5,524,580 6,076,495 6,076,495
30,530,055 3,488 626,290 31,159,833 31,159,833
24,855,701 - 4,802 24,860,503 24,860,503
2,103,541 25,487 10,216 2,139,244 2,139,244
437,006 437,006 437,006
3,469,194 2,255,257 5,724,451 5,724,451
7,492 - 7,492 7,492
(857,712) 583,368 (274,344) (274,344)
153,379,388 13,773,102 21,078,083 188,230,573 188,230,573 (46,548,708)
(55,007,822)
(7,843,677)
11,808,633
(52,241)
(42,583,752)
(55,060,063)
(44,528,918)
(55,060,063)
1,945,166
Excess (deficiency) of revenues over expenses, controlling $ 8,459,114 $ (7,843,677) $ 11,860,874 $ 12,476,311 $ 10,531,145 $ 1,945,166 6 Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2020
Programs
Property Resident Housing Without Donor With Donor
Operations Services Development Total Restrictions Restrictions Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Unrealized (loss)/gain and interest
Other
Release of restricted assets
$ 84,609,478 $
24,905
1,025,293
4,562,748
1,626,856
6,111,847
Total revenue 97,961,127
Expenses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses
Excess (deficiency) of revenue over expense
Consolidated
Attributable to noncontrolling interests
2,964,051
4,558,140
432,247
6,551
9,265
23,680,064
2,125,235
21,655,035
537,591
1,105,343
2,952,606
$ 84,609,478 $ 84,609,478 $
23,680,064 23,680,064
2,988,956 2,988,956
7,708,668 606,825
26,217,783 26,217,783
969,838 969,838
2,738,750 2,738,750
9,073,718 9,073,718
5,938,731
7,101, 843
(5,938,731)
7,970,254 52,055,874 157,987,255 156,824,143 1,163,112
18,709,222 7,174,441 7,774,577 33,658,240 33,658,240
10,451,337 2,247,266 2,212,188 14,910,791 14,910,791
2,237,018 273,581 592,777 3,103,376 3,103,376
52,998,940 215,423 53,214,363 53,214,363
625,987 89,146 2,540,993 3,256,126 3,256,126
26,255,511 2,321 732,683 26,990,515 26,990,515
24,867,814 - 16,162 24,883,976 24,883,976
1,374,267 369,980 85,606 1,829,853 1,829,853
- 491,792 491,792 491,792
3,118,055 2,605,511 5,723,566 5,723,566
(1,171) - - (1,171) (1,171)
(276,293) - (214,788) (491,081) (491,081)
137,242, 632 13,274,790 17, 052,924 167, 570,346 167,570, 346 (39,281,505)
(46,831,682)
(5,304,536)
35,002,950 (9,583,091) (10,746,203)
314) (46,831,996) (46,831,996)
1,163,112
Excess (deficiency) of revenues over expenses, controlling $ 7,550,177 $ (5,304,536) $ 35,003,264 $ 37,248,905 $ 36,085,793 $ 1,163,112 See Notes to Consolidated Financial Statements.
7 Mercy Housing California
Consolidated Statements of Changes in Net Assets
Years Ended December 31, 2021 and 2020
Net Assets Without Donor Restrictions
Net Assets With
Controlling Noncontrollinc Total Donor Restrictions Total Net Assets Balance, January 1, 2020
Contributions
Distributions
Syndication
Other Transfers
Excess (deficiency) of revenues over expenses
Balance, December 31, 2020
Contributions
Distributions
Syndication
Other Transfers
Excess (deficiency) of revenues over expenses
Balance, December 31, 2021
$ 103,609,931 $ 382,009,835 $ 485,619,766 $ 38,074,796 $ 523,694,562 173,125,541 173,125,541 173,125,541
(97,535) (270,739) (368,274) (368,274)
(270,001) (270,001) (270,001)
(9,485,166) (9,485,166) (9,485,166)
36,085,793 (46,831,996) (10,746,203) 1,163,112 (9,583,091) 130,113,023 507,762,640 637,875,663 39,237,908 677,113,571 63,331,310 63,331,310 63,331,310
(30,968) (52,135) (83,103) (83,103)
(466, 748) (466, 748) (466, 748)
5,017,185 5,017,185 5,017,185
10,531,145 (55,060,063) (44,528,918) 1,945,166 (42,583,752) $ 145,630,385 $ 515,515,004 $ 661,145,389 $ 41,183,074 $ 702,328,463 See Notes to Consolidated Financial Statements.
8 Mercy Housing California
Consolidated Statements of Cash Flows
Years Ended December 31, 2021 and 2020
2021 2020
Operating activities
Changes in net assets
Adjustments to reconcile changes in net assets to net cash provided by (used in) operating activities:

Depreciation and amortization
Amortization of debt issuance costs
Bad debts
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
(Gain) loss on interest rate swap contracts
Forgiveness of debt
Land lease expense
Net changes in current assets and liabilities that provided (used) cash from operating activities
Accounts receivable and due from affiliates
Grants and pledges receivable
Prepaid expenses and other assets
Accounts payable and due to affiliates
Accrued interest payable
Deferred revenue and other liabilities
Tenant security deposits liability
Net cash provided by (used in) operating activities
Investing activities
Net change in restricted cash and restricted reserves
Payment of tax credit fees
Additions to property and equipment
Net change in investments in limited partnerships
Net change in notes receivable
Grants and pledges receivable
Net cash provided by (used in) investing activities
$ (42,583,752) $ (9,583,091)
60,873,876
914,522
2,139,244
7,492
(274,345)
1,673,185
(5,281)
191,386
(10,763,879)
(2,682,011)
(7,729,372)
11,986,761
9,709,165
3,735,745
426,898
53,214,363
1,273,004
1,829,853
(1,171)
(491,081)
(145,281)
135,895
(16,824,573)
38,322
(527,958)
(3,878,866)
9,419,593
(632,746)
217,843
27,619,634 34,044,106
(4,385,733)
(3,377,789)
(276,621,953)
(3,210,294)
670,839
7,000,000
2,140,935
(484,659)
(275,409,299)
51,314
297,485
1,000,000
(279,924,930) (272,404,224)
9 Mercy Housing California
Consolidated Statements of Cash Flows
Years Ended December 31, 2021 and 2020
2021 2020
Financing activities
Proceeds from notes payable
Principal payments on notes payable
Debt issuance costs paid
Capital contributions from investor partners
Syndication costs to investor partners
Distributions to investor partners
Net cash provided by (used in) financing activities
Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash, beginning of year 298,369,915 312,920,120
(94,740,860) (239,866,207)
(2,842,554) (4,417,431)
63,331,310 173,125,541
(466,748) (270,001)
(83,103) (368,274)
263,567,960 241,123,748
11,262,664 2,763,630
106,543,814 103,780,184
Cash, cash equivalents, and restricted cash, end of year $ 117,806,478 $ 106,543,814 Cash paid for interest, net of amounts capitalized of $5,828,755 and $4,188,748, respectively $ 13,669,205 $ 13,710,133
Noncash investing and financing activities
Increase in property and equipment from capitalized amortization Capitalized amortization in property and equipment
Increase in property and equipment from capitalized land lease Capitalized land lease in property and equipment
Property and equipment in accounts payable
Accounts payable related to property and equipment purchases Increase/(decrease) in property and equipment from notes payable Increase/(decrease) in notes payable from property and equipment Noncash transfers of net assets
Investment in limited partnerships
Increase (decrease) in net assets without donor restrictions Increase in (release of) net assets with donor restrictions Total noncash investing and financing activities
$ 1,121,355 $ 827,634
(1,121,355) (827,634)
3,644,137
(3,644,137)
28,009,988 45,667,836
(28,009,988) (45,667,836)
(1,210,354) 956,828
1,210,354 (956,828)
(5,017,185) 9,485,166
5,017,185 (9,485,166)
1,947,205 5,938,731
(1,947,205) (5,938,731)
$ - $
See Notes to Consolidated Financial Statements.
10 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 1 - Organization and summary of significant accounting policies Mercy Housing California (MHC) is a 501(c)(3) nonprofit corporation incorporated in 1988 for the purpose of developing affordable housing and providing services to low-income families, elderly, handicapped, homeless, potentially homeless, or otherwise disadvantaged persons in California.

Principles of consolidation
The accompanying consolidated financial statements include the accounts of MHC and its wholly owned subsidiaries (collectively, the Company). Additionally, the consolidated statements for the years ended December 31, 2021 and 2020 include the accounts of 69 and 65 limited partnerships, respectively, in which MHC has a controlling interest. The entities are included in the consolidation according to accounting principles generally accepted in the United States of America (US GAAP) which require that partnership accounts be consolidated for all limited partnerships which are deemed to be controlled by the Company. All intercompany transactions have been eliminated in consolidation.

The following entities are included in the consolidated financial statements of the Company:

Mercy Housing California (MHC)
MH California Properties 1 LLC
Affordable Housing Initiatives
All Hallows Community
Marin Homes for Independent Living (Camino Alto)
Cantebria Senior Homes
Mercy Senior Housing Oxnard (Casa Merced)
Francis of Assisi Community
Gault Street Senior Housing
John W. King Senior Community
Maria B. Freitas Senior Housing Corporation
Marin Housing Corporation (Martinelli House)
Mercy Family Plaza Limited Partnership (Mercy Family Plaza) Mercy Gardens
Notre Dame Senior Housing Corporation
Oceana Senior Housing Corporation (Oceana Terrace)
Presentation Senior Housing Community
Russell Manor
11 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Tierra Del Sol, Inc.

Garden Park Apartment Community
Mercy Oaks Village
Mercy Commercial California

MPCAL, LLC
MCC 1360 LLC
Central Coast Housing
Mercy Housing California 58, LP (Neary Lagoon Apts.)
Sycamore Street Consolidated
Mercy Housing California Family Properties
Mercy Housing California 51, LP (Bill Sorro Community)
Mercy Housing California Special Needs
Mercy Housing California 57, LP (1500 Page)
Florin Housing Corporation GP
Crossroad Gardens Consolidated
Mercy Housing California 80, LP, Consolidated
3425 Orange Grove, LLC
Mercy Housing California 81, LP (Courtyard Inn)
Mercy Mather Veterans 3 LLC
Mercy Housing California 79, LP (Mather Phase 3)
Mercy Housing California Senior Properties (MHCSP)
Bennett House, LP
Dorothy Day Community, LP
Junipero Serra, LP
Monsignor Lyne, LP
St. Andrew Community, LP
Villa Columba Mercy Riverside, LP
Mercy Housing Calwest (MHCW)
Mercy Housing California XXXIX, LP (Gleason Park)
Mercy Housing California XL, LP (Arlington Hotel)
Mercy Housing California XXXVIII, LP (East Leland Courts) Mercy Housing California XLII, LP (Boulevard Court)
Mercy Housing California XLIV, LP (1180 Fourth Street)
Third and LeConte Associates LP (Bayview Hill Gardens)
Caroline Severance LLC
Mercy Housing California XLIII, LP (Caroline Severance Manor) 7th & H GP, LLC
Mercy Housing California 47, LP (7th & H Street)
Madonna Senior Housing LLC
Mercy Housing California 53, LP (Madonna Residences)
Mercy Housing California 52, LP (School House Station -Vista Grande) 1100 Ocean Avenue Limited Partnership (1100 Ocean Avenue Apts.) 55 Laguna, LP (Open House Community at 55 Laguna)
Esparto Family Apartments, LLC
Mercy Housing California 54, LP (Esperanza Crossing)
Sunset Lane Apartments LLC
Mercy Housing California 55, LP (Trailside Terrace)
Mercy Housing California 56, LP (Jefferson Park Terrace) Coastside Senior Housing Limited Partners, LP
El Monte Veterans Apartments LLC
12 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
El Monte Veterans Apartments, LP
1028 Howard Street, LLC
Mercy Housing California 60, LP (Quinn Cottages)
Mercy Housing California XI, LP (Madison Place)
Mercy Eden House LLC
Eden House, L.P.

Transbay Block 6, LLC
Mercy Housing California 62, LP (280 Beale)
Sunset Valley Duplexes, LLC
Mercy Housing California 63, LP (Sunset Valley Duplexes) 345 Arguello, LP
Land Park Woods, LLC
Mercy Housing California 68, LP (Land Park Woods)
1880 Pine, LP
Transbay Block 7, LLC
Mercy Housing California 64, LP (Transbay Block 7)
Mercy Mather Veterans, LLC
Mercy Housing California 61, LP (Mather Veterans Village) Mercy Housing California 65, LLC
Mercy Housing California 65, LP (The Arbor at Hesperion) Plaza Maria, LLC
Mercy Laguna LLC, GP
Laguna Senior Housing, L.P. (95 Laguna Senior Housing)
JFK Tower, LP
2698 California, LP
Mercy Housing California 66, LP (Colma Veterans Village) 455 Fell, LP (Parcel O)
Mercy Housing California 67, LP (Columbia Park)
Historic Live Oak (Odd Fellows)
Mercy Housing Camino GP, LLC
Mercy Housing La Cienega, LLC
New Dana Strand IV, LP (Camino Del Mar)
St Mary's Tower, LLC
Mercy Housing California 71, LP (St Mary's Tower)
Francis of Assisi, LLC
Mercy Housing California 69, LP (Francis of Assisi)
3001 24th Street LLC
Mercy Housing California 59, LP (Casa de la Mission)
623 Vernon, LLC
Mercy Housing California 48, LP (Lohse Apartments)
Esperanza Crossing II, LLC GP
Mercy Housing California 76, LP (Esperanza Crossing Phase II) Mercy Transformation, LLC GP
Sunnydale Parcel Q Housing Partners, LP
Candlestick Pointe 11a, a California Limited Partnership (Candlestick) 20 North Cottonwood LLC (GP)
Mercy New Hope, LP (Woodland/180 West Beamer)
Mercy Housing California 74, LP (Britton Street)
Pico Robertson LLC GP
Mercy Housing California 73, LP (Pico Robertson)
13 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Baldwin Rose LLC, GP
Baldwin Rose LP
Mercy Housing California 78, LP (Mission Bay Block 6)
Mercy Housing California 75, LP (Dorothy Day)
Placentia Veterans Village, LLC GP
Placentia Veterans Village, LP
Mercy Housing California 82, LP (Treasure Island)
1064 Mission LLC, GP
1064 Mission Homeless Services Center LLC
833 Bryant, LLC GP
833 Bryant, LP (Tipping Point)
Villa de Vida GP LLC
Villa de Vida
1721 West Capitol LLC
Mercy Housing California 87, LP (West Capitol)
Mercy Housing California 84, LP (Bennett House)
1121 9th Street LLC, GP
Mercy Housing California 90, LP (Capital Park)
Mercy Housing California 94 LLC GP
Mercy Housing California 94, LP (Sherman Oaks)
Mercy Housing California 83, LP (Bermuda Gardens)
Sunnydale Block 6 Development CO LLC GP
Sunnydale Block 6 Housing Partnership, LP
Mercy Housing California 95 LLC GP (Long Beach GP)
Mercy Housing California 95, LP (Long Beach)
600 7th Street GP
Mercy Housing California 97, LP (600 7th Street)
Mercy HPSY Block 56 LLC
Hunters Point Block 56, LP
Middlefield Junction LLC GP
Mercy Housing California 96, LP (Middlefield Junction)
Mercy Housing California 99 LLC
Mercy Housing California 99, LP (North Auburn)
Mercy Housing California 100 GP
Mercy Housing California 100, LP (Whittier)
7789 La Mancha Way LLC
Mercy Housing California 103 GP
Mercy Housing California 103, LP (Laguna Honda)
231 Grant Ave LLC (Palo Alto)
Mercy Kimball Development GP
Mercy Morgan Development GP
Richmond Hacienda GP
Richmond Hacienda
MHCA 89 GP
Mercy Housing California 89 LLC (6th & San Julian)
Transbay 2 Family GP
Transbay 2 Family
Mercy Housing California 105 LLC GP
Mercy Housing California 105 LLC (4995 Stockton)
Mercy Kelsey Civic Center LLC
14 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Kelsey Civic Center L.P.

Sunnydale Block 7 LLC GP
Mercy Properties California
The Haven*
Leland House*
Osocales (McIntosh Mobile Homes)*
Richmond Hills*
Sycamore Center (Red Bluff)*
San Juan Housing Corporation
Kennedy Estates Housing Associates, LP (Kennedy Estates) Tahoe Valley Townhomes Associates, LP (Tahoe Valley Townhomes) * Not a legal entity but is included as a separate column in Supplementary information On February 11, 2022, a change occurred in the controlling boards of Rural California Housing Corporation (RCHC) wherein a majority of the RCHC board directors are now Mercy Housing California affiliates. The RCHC board has the right to appoint the directors of, or otherwise control the governing boards of nine properties in rural California. In accordance with ASC 810 Consolidation, Mercy Housing will present the financial results of these 9 properties in its consolidated financial results and operations for 2022.

Basis of presentation and net assets
US GAAP requires the organization to report information regarding its financial position and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. Program service expenses must be segregated from management and general expenses. Contributions received are recorded as support without donor restrictions or with donor restrictions. Net assets without donor restrictions are those that have no external restrictions. Net assets with donor restrictions are those net assets for which use is limited by donors to a specific time period and/or purpose or for which use is restricted in perpetuity by donors.

Revenue recognition
Rent revenue, principally from short-term leases on apartment units and commercial space, is recognized as rents become due.

Unconditional promises to give are recorded as revenue at estimated net realizable value.

Contributions are recognized when cash, securities or other assets, an unconditional promise to give, or notification of a beneficial interest is received. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return, are not recognized until the conditions on which they depend have been substantially met. The federal and state contracts and 15 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
grants are conditioned upon certain performance requirements and the incurrence of allowable qualifying expenses. Consequently, at December 31, 2021 and 2020 no conditional contributions have been received in advance, which would have not been recognized in the accompanying consolidated financial statements. Donor -restricted contributions whose restrictions are met in the same reporting period are reported as revenue without donor restrictions in the period of receipt.

Unconditional promises to give with payments due in future periods are discounted to present value and reported as revenue with donor restrictions.

Special event revenues are recognized when the event is held. Contributions received at or related to a special event are recorded as philanthropy in the Consolidated Statements of Activities.

Resident service fee revenue
The Company provides resident services on a contractual basis for owners of residential rental real estate. The Company is compensated for its services through a fixed monthly resident service fee.

Consistent with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees associated with the services performed.

The project estimates whether it will be entitled to variable consideration under the terms of the development agreement and includes its estimate of variable consideration in the total development fee amount when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur in accordance with the accounting guidance in ASC Topic 606, Revenue from Contracts with Customers, on constraining estimates of variable consideration, which typically includes the following factors:
• Susceptibility of the consideration amount to factors outside the project's influence, • Sufficiency of equity and debt proceeds at the completion of the construction. • Uncertainty about the consideration amount is not expected to be resolved in the short term. • Company's experience with similar types of agreements. • Changes to payment terms.
• Range of possible consideration amounts.
16 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
The cumulative amount of development fees earned is updated at each reporting period based on the project's estimate of the variable consideration using best available information. Any difference between the gross amount of the project's developer fee payable and the estimate of variable consideration to which the developer expects to be entitled is eliminated in consolidation.

Restricted cash
MHC and its subsidiaries receive funds that are subject to restrictions and are included in the restricted cash balance.

Many MHC subsidiaries are required to make monthly deposits for replacement of project assets; such deposits are controlled by the Department of Housing and Urban Development (HUD) or other financing authorities. Certain subsidiaries are also required to make yearly deposits of surplus cash, if any, to residual receipts accounts. Use of residual receipt funds is contingent upon the prior written approval of HUD. Replacement reserves and residual receipts are included in the restricted cash balance in the Consolidated Statements of Financial Position.

Receipts by MHC subsidiaries from HUD and other financing authorities for construction of low- income housing projects are included in the restricted cash balance.

Accounts receivable and bad debts
Receivables are charged against an allowance when they are deemed to be uncollectible.

Management's estimate of the allowance is subject to revisions and based on historical collection experience and a review of the current status of the tenant and other accounts receivable. As of December 31, 2021 and 2020, the balance in allowance for doubtful accounts was $2,457,522 and $1,603,356, respectively.

Property and equipment
Property and equipment are stated at cost. The provision for depreciation is computed using the straight-line method based on estimated useful lives of the related assets. Buildings and improvements are depreciated over 27.5 to 40 years, equipment is depreciated over 3 to 10 years, and land improvements are depreciated over 15 to 20 years. 17 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Impairment of long-lived assets
In accordance with US GAAP, management continually monitors events and changes in circumstances, which could indicate that the carrying value of real estate exceeds its estimated undiscounted cash flows; the impairment to be recognized is measured by the amount of carrying value of real estate that exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2021 and 2020, respectively. Losses are included in the provision for impaired assets in the Consolidated Statements of Activities.

Assets and liabilities held for sale
Assets and liabilities held for sale represent land, buildings and land improvements less accumulated depreciation. We record assets and liabilities held for sale in accordance with ASC 360 Property, Plant, and Equipment at the lower of carrying value or fair value less cost to sell. Fair value is based on the estimated proceeds from the sale of the asset, or comparable market data.

Our estimate as to fair value is regularly reviewed and subject to change. See Note 6 for additional information.

Allowance for loan losses
The Company allows for loans and notes receivable and accrued interest that may not be ultimately collected. The allowance for uncollectible loans is based upon prior experience and management's assessment of the collectability of existing specific loans. Individual loans are written off against the allowance when they are deemed uncollectible and increases to the allowance are charged to provision for loan losses.

Tax credit fees and related amortization
Tax credit monitoring fees are amortized using the straight-line method over the fifteen -year tax credit compliance period.
18 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Amortization expense for the years ended December 31, 2021 and 2020 was $295,775 and $300,225, respectively. Estimated amortization expense for each of the ensuing years through December 31, 2026 is as follows:

Year Amount
2022 $ 294,607
2023 275,971
2024 261,817
2025 245,880
2026 230,776
Investment in unconsolidated entities
MHC and its subsidiaries hold non -controlling interests in limited partnerships and other entities that are not consolidated. See Note 7 for additional information.

Due from and due to affiliates
Due from and to affiliates, net current, consists of advances or obligations to property affiliates.

These accounts represent a claim or future settlement of cash on a related party basis by affiliated entities. These accounts will eliminate at the top parent level of consolidated MHI.

Non -controlling interest in limited partnership
This amount represents the aggregate balance of Limited Partner equity interests in a non -wholly owned limited partnership that is included in the consolidated financial statements. The aggregate negative balances, if any, of Limited Partner interests prior to January 1, 2010 remain in the Company's net assets.

Net assets with donor restrictions
Net assets with donor restrictions consist of assets whose use is limited by donor -imposed, time and/or purpose restrictions.
19 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
MHC reports gifts of cash and other assets as revenue with donor restrictions if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction is accomplished, the net assets are reclassified as net assets without donor restrictions and reported in the Consolidated Statements of Activities as net assets released from restrictions.

See Note 10 for more information on the composition of net assets with donor restrictions.

Transfers of net assets
The following is a summary of changes or other transfers for the years ended December 31, 2021 and 2020:

Year Ended
December 31,
2021 2020
Number of consolidated entities removed - 1
Year Ended
December 31,
2021 2020
Other transfers increase (decrease)
Mercy Housing California XXVII, LP (Serna Village) $ 5,017,185 $ Mercy Midtown, Inc. -
1064 Mission, LP -
(9,481,112)
(4,054)
Other transfers $ 5,017,185 $ (9,485,166)
Deferred revenue
The Company provides loans to low income families for the purchase of single-family homes as part of the self-help opportunity program. The loans are forgivable over a 15 -year period providing that the families remain in the home. The loans represent additional proceeds to the Company in the event the families sell their homes prior to the end of the restriction period. Given the uncertainty and low probability of this event, the potential proceeds are recorded as deferred revenue and amortized over the restriction period.

The Company has received tax credit exchange (TCE) funds under the ARRA Exchange Program pursuant to Section 1602 of the American Recovery and Reinvestment Act of 2009 (Section 1602).

Under Section 1602, state housing agencies can exchange allocations of low-income housing tax credits (LIHTC) which have been allocated to their state under Section 42 of the Internal Revenue Code (Section 42) for cash at a prescribed rate of up to $.85 for each dollar of LIHTC. The state housing agencies in turn can allocate the Section 1602 funds to properties that qualify for LIHTC. 20 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Section 1602 program funds are intended to assist with payment of development costs of LIHTC properties. In exchange for the funds received, the Company has agreed to operate the properties in accordance with Section 42. The Section 1602 funds are considered government assistance related to assets. The Company has recorded the Section 1602 exchange funds as a deferred liability which will be recognized as income on a straight line basis over the 27.5 year depreciable life of the buildings and improvements.

Income taxes
MHC and its consolidated nonprofit corporations are exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. All nonprofit corporations are required to file tax returns with the Internal Revenue Service (IRS) and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and there are no other tax positions which must be considered for disclosure. For the years ended December 31, 2021 and 2020, the Company did not identify any uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

The limited partnerships in which the Company has a partnership interest have elected to be treated as a pass -through entity for income tax purposes and, as such, are not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The partnerships' federal tax statuses are based on their legal status as a partnership. Accordingly, the partnerships are not required to take any tax positions in order to qualify as a pass -through entity. The partnerships are required to file and do file tax returns with the IRS and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the partnerships have no other tax positions which must be considered for disclosure. Income tax returns filed by the entities are subject to examination by the IRS for a period of three years. While no income tax returns are currently being examined by the IRS, tax years since 2018 remain open. 21 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
The following entities are corporate subsidiaries of MHC that are not exempt from federal or state taxes:
• Mercy Commercial California
• MCC 1360, LLC
• MPCAL, LLC
Fair value
The carrying amounts of the Company's cash and cash equivalents, receivables, payables and accrued expenses approximate fair value due to the short-term nature of these instruments. The fair value of the Company's long-term notes receivable, due from affiliates and notes payable is assessed by management based on analysis of underlying investments and historical trends.

Derivative instruments and hedging activities
During the years ended December 31, 2021 and 2020, the Company had one and zero outstanding interest rate swap contracts, respectively, used to mitigate the economic impact of changes in interest rates. The swaps are designated as cash flow hedges and are used to offset the risk of changes in cash flows associated with benchmark interest payments on variable rate mortgage loans. MHC reassesses the hedge on an ongoing basis to determine effectiveness. As of December 31, 2021 and 2020, there was no hedge ineffectiveness. Changes in the fair value of the interest rate swap contracts are recorded as unrealized gains or losses in the Consolidated Statement of Activities. The swaps are reported in notes payable at fair value on the Consolidated Statements of Financial Position. See Note 17 for additional information.

Reclassifications
Reclassifications have been made to the prior year balances to conform to the current year presentation.
22 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 2 - Liquidity and availability of resources
MHC's financial assets available within one year of the consolidated statements of financial position date for general expenditures are as follows:
2021 2020
Cash and cash equivalents, properties and corporate
I nvestments
Accounts receivable, net
Pledges receivable, net
Grants receivable
Restricted deposits and funded reserves
Current portion of notes and interest receivable
Total financial assets available within one year
Less:

Amounts unavailable to management due to restriction or board approval Internal development commitments
Management designated, capital expenditures
Net assets with donor restrictions
Total financial assets available to management for general expenditures and operating commitments due within one year of the Statement of Financial Position date
$ 42,024,383 $ 37,660,980
2,162,999
13,966,883 10,226,914
4,932,317 9,750,000
53,183 63,745
3,677,821 2,343,741
305,140 303,000
64,959,727 62,511,379
4,738,713 2,662,999
3,677,821 2,343,741
41,183,074 39,237,908
$ 15,360,119 $ 18,266,731
Amounts related to restricted deposits and funded reserves anticipated to be used more than one year after the statement of financial position date have been excluded from the above amounts. To help mitigate unanticipated liquidity needs, MHC can borrow from MHI, which has committed operating lines of credit totaling $3,000,000, which can be drawn upon at any time.

As of December 31, 2021 and 2020, pledges receivable totaled $19,317,938 and $23,625,365, respectively.
23 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
As of December 31, 2021, future pledge payments are as follows:

For the year ended December 31, 2022
2023
2024
2025
2026
Thereafter
Total pledges receivable
Discount and allowance
$ 4,932,317
13,050,000
300,000
1,300,000
19,582,317
(?64,379)
Total pledges receivable, net $ 19,317,938
Note 4 - Grants receivable
Grants receivable consist of amounts due under grant awards for which revenue has been recognized without donor restrictions or with donor restrictions.

Grants receivable as of December 31, 2021 and 2020, $53,183 and $63,745, respectively, relate to resident service programs and infrastructure grants.

Note 5 - Notes and interest receivable
From time to time MHC extends long term or short term funding for affordable housing development to various affiliated organizations. Interest rates on the notes receivable range from 0 percent to 3.5 percent. Maturity dates range from 2022 to 2073. At December 31, 2021 and 2020, substantially all of the notes and interest receivable are collateralized by real estate. Allowances for notes receivable totaled $7,642,731 and $7,642,516, respectively, for the years ended December 31, 2021 and 2020.

For each loan, MHC conducts a risk analysis by reviewing the following criteria: financial condition, property performance, development plan, real estate development staff capacity and experience, strong sponsor/guarantor, payment of taxes and insurance, and low-income housing tax credit takeout. When the risk rating on a loan has been assessed as substandard the loan is deemed to not be performing as expected and a loss on a loan is considered possible and recorded if determinable. When the risk rating on a loan has been assessed as doubtful, it is considered to be a partially or fully uncollectible loan. MHC conducts a comprehensive review of all outstanding loans at least annually.
24 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 6 - Property and equipment
Property and equipment at December 31, 2021 and 2020 consisted of the following:

Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Total property and equipment
Less accumulated depreciation
Property and equipment, net
2021
$ 213,099,889
1,816,269,511
50,356,252
10,624,067
98,237,544
2,188,587,263
(367,943,398)
2020
$ 172,258,671
1,425,307,077
42,837,157
19,946,022
279,918,210
1,940,267,137
;315,891,127)
$ 1,820,643,865 $ 1,624,376,010
For the years ended December 31, 2021 and 2020, depreciation expense was $60,578,101 and $52,914,138, respectively.

Assets held for sale
The following assets have been classified as held for sale as of December 31, 2021:

Leland House
Madison Place
Property and equipment, net $ 1,134,262 $ 639,440
Assets held for sale $ 1,134,262
$ 639,440
The Haven Total
$ 282,612 $ 2,056,314
$ 282,612 $ 2,056,314
No assets were classified as held for sale as of December 31, 2020.

Note 7 - Investments in unconsolidated entities
MHC and its subsidiaries hold non -controlling interests ranging from 0.005% to 50% in limited partnerships and other entities. As of December 31, 2021 and 2020, MHC has invested in the following non -consolidating entities:
• 1101 Howard Street Associates (1101 Howard Street Apts.) • 2101 Telegraph Avenue Associates
• Centro Partners, LP
• Mercy Housing California X, LP (The Rose)
• Riverside/Leibrandt Partners, LP
• 1064 Mission, LP
• Mercy Housing California XXVII, LP (Serna Village)
25 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
• Morgan Towers
• Kimball Tower
• 491 31st Ave
• 1760 Bush
The change in the Company's investment in unconsolidated entities is as follows:

Balance as of January 1, 2020
Distributions
Equity in project earnings (losses)
Other
Balance as of December 31, 2020
Contributions
Distributions
Equity in project earnings (losses)
Membership interest transfers
$ 1,647,882
(47,260)
491,081
(4,054)
2,087,649
3,327,900
(117,605)
274,344
5,017,185
Investment in unconsolidated entities as of December 31, 2021 $ 10,589,473 26 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 8 - Notes payable
Notes payable as of December 31, 2021 and December 31, 2020 consists of notes due to various affiliated and unaffiliated organizations.
2021 2020
Loans secured by properties:

Construction loans, bearing interest from 0% to 6.00%, with both fixed and variable interest rates, to be repaid in full or converted to permanent loans through 2024. Total allowable borrowing under the loans are $839,116,863 and $801,960,155 as of December 31, 2021 and 2020, respectively. Balances available to draw upon are $283,092,834 and $446,122,699 as of December 31, 2021 and 2020, respectively.

Mortgage loans, bearing interest from 0% to 9.75%, generally with principal and interest due monthly, to be repaid in full through 2078. All funds available under these notes are fully drawn as of December 31, 2021 and 2020, respectively.

Total debt
Less deferred financing costs
Total
Less current portion (1)
Non -current portion
$ 556,024,029 $ 355,837,456
741,382,673
737,482,640
1,297,406,702 1,093,320,096
(21,907,714) (21,135,692)
1,275,498,988 1,072,184,404
(241,039,391) (182,203,891)
$ 1,034,459,597 $ 889,980,513
(1) As of December 31, 2021 and 2020, included in current maturities is $217,315,123 and $161,996,432, respectively, of short term construction debt that has committed sources of repayment including proceeds permanent debt and/or low income housing tax credit equity.

For the years ended December 31, 2021 and 2020, $23,378,370 and $23,129,726 of interest expense, respectively, was incurred and is included in interest and fees on the consolidated statement of activities.

On January 6, 2022, the Company formed California Land Acquisition Fund LLC (Land Fund) with Mercy Housing California as its sole member. The Land Fund was formed with the charitable mission to leverage philanthropic and private capital in order to expand and support increased development of affordable housing in California. On April 4, 2022, the Land Fund entered into a loan agreement (Land Fund Facility) with JPMorgan Chase Bank, N.A., Mercy Housing Loan Fund, LP (with limited partner Morgan Stanley Community Investments LLC), The California Endowment, California Community Foundation, Weingart Foundation and affiliates. The total available borrowing capacity under the Land Fund Facility is $47,000,000, of which $8,500,000 is from affiliated sources. Borrowings mature in five years with 2 one-year extensions and interest rates on the Land Fund Facility range from 4% to SOFR+6.40%. Mercy Housing Inc. and Mercy Housing California have jointly entered into payment guarantees for the Land Fund in the amount of $6,750,000. No amounts have been drawn on the Land Fund Facility as of the date of this report. 27 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Future minimum principal maturities of notes payable are as follows:

For the year ending December 31, 2022
2023
2024
2025
2026
Thereafter
$ 241,039,391
62,520,737
23,667,814
8,006,942
9,412,855
952,758,963
Total maturities $ 1,297,406,702
Note 9 - Net assets without donor restrictions
MHC's net assets without donor restrictions are comprised of undesignated and board designated amounts for the following purposes at December 31, 2021 and 2020:

Net assets without donor restrictions, controlling
Undesignated
Internal development commitments
Total net assets without donor restrictions, controlling Net assets without donor restrictions, noncontrolling
Note 10 - Net assets with donor restrictions
2021 2020
$ 140,891,672 $ 127,450,024
4,738,713 2,662,999
145,630,385 130,113,023
515,515,004 507,762,640
$ 661,145,389 $ 637,875,663
At December 31, 2021 and 2020, MHC's net assets with donor restrictions are restricted for the following purposes:

Subject to expenditure for a specified purpose:

Construction of affordable housing
Land for use in affordable housing
Resident services
2021 2020
$ 38,565,844 $ 36,018,858
1,770,000 1,770,000
847,230 1,449,050
Net assets with donor restrictions $ 41,183,074 $ 39,237,908 28 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 11 - Lease commitments
The Company leases office space and equipment under non -cancelable operating lease agreements that expire through 2029. Future minimum lease payments as of December 31, 2021 are as follows:

Office and
Equipment Property Land
Leases Leases
Total
For the year ending December 31,
2022 $ 549,668 $ 764,311 $ 1,313,979
2023 563,642 749,311 1,312,953
2024 575,602 749,311 1,324,913
2025 536,805 749,311 1,286,116
2026 435,637 749,311 1,184,948
Thereafter 1,386,906 41,278,606 42,665,512
Total future minimum lease payments $ 4,048,260 $ 45,040,161 $ 49,088,421 Lease expense for operating leases for the years ended December 31, 2021 and 2020 was $1,094,581 and $740,696, respectively. As of December 31, 2021, ground leases at nine projects have been prepaid and are amortizing over the related lives through 2119. Prepaid leases as of December 31, 2021 and 2020 were $16,040,663 and $16,231,952, respectively, and are included in other assets, net.

Consulting fee income
The Company earns consulting fee income by providing property development services to affiliates. 29 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 13 - Restricted property reserves
Operating reserves
The Company maintains an operating reserve for the purposes of meeting operating expenses in excess of operations for any given year.

Other reserves
The Company maintains other reserves for the purpose of paying insurance, taxes, annual audit fees, and various other capital needs purposes.

Restricted reserves and escrow deposits are as follows:

December 31,
2021 2020
Replacement reserves
Operating reserves
Residual receipts reserves
Bond investment reserves
Other reserves
Escrow deposits
Escrow deposits - construction
$ 21,396,901 $ 19,087,471
27,228,473 27,582,254
1,542,249 1,668,072
1,421,905 329,029
26,395,340 23,686,462
10,104,053 8,670,076
14,283,724 3,245,347
Total reserves $ 102,372,645 $ 84,268,711
30 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 14 - Consolidated statements of cash flows
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated statements of financial position that sum to the total of the same such amounts in the statements of cash flows.

As of December 31, 2021
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Less: non -qualified restricted cash
Investments
Restricted property reserves
Less: non -qualified restricted cash
Long-term investments
Long-term investments, restricted
Total cash, cash equivalents, and restricted
cash shown in the consolidated statements of
cash flows
As of December 31, 2020
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Less: non -qualified restricted cash
Investments
Restricted property reserves, long term
Less: non -qualified restricted cash
Long-term investments
Long-term investments, restricted
Total cash, cash equivalents, and restricted
cash shown in the consolidated statements of
cash flows
$ 13,447,227
(1,737,023)
102,372,645
(52,242,780)
$ 17,178,797
(3,394,297)
84,268,711
(46,199,773)
$ 42,024,383
3,857,026
11,710,204
50,129,865
9,620,000
465,000
$ 117,806,478
$ 37,660,980
3,376,397
13,784,500
2,162,999
38,068,938
11,085,000
405,000
$ 106,543,814
Amounts included in restricted cash are comprised of security deposits held in trust for the future benefit of tenants upon moving out of the property and other reserves as required by regulatory authority and the partnership and/or operating agreements. 31 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Note 15 - Guarantees
MHC enters into agreements with certain limited partnerships or their affiliated general partners whereby MHC guarantees to loan funds to the partnerships in the event that the partnerships incur operating deficits as defined in the respective partnership agreements or fail to meet their current financial obligations. These agreements expire at various times from 2021 through the terms of the underlying partnership or debt agreements. Loans made pursuant to these guarantees are generally interest -free and unsecured. The maximum potential amount of future payments under these guarantees is equal to the amount guaranteed to the partnerships under the tax indemnification agreements discussed below.

Management is not aware of any known liability for tax credit recapture. The maximum potential liability under these guarantees as of December 31, 2021 is $1,124,809,933 relating to fifty-nine limited partnerships. MHC has not been required to fund any amounts under these guarantees and has not recorded any liabilities associated with these guarantees.

MHC provides guarantees to certain lenders who provide financing for the acquisition and construction of low-income housing projects developed by certain limited partnerships. Under these guarantees, MHC provides assurance of project completion and provides repayment guarantees for the associated loans. The guarantees terminate when construction is complete and permanent financing repays the construction loans. As of December 31, 2021, MHC had provided guarantees on twelve construction loans of $551,664,877 of which $367,806,119 was outstanding.

Surplus cash and residual receipts
Certain properties owned by the Company are subject to HUD regulatory agreements, which restrict the use of the property and limit the use of project cash. Under these regulatory agreements, many of the subsidiaries are precluded from receiving any distributions of operating cash. A surplus cash calculation is required to be prepared annually and any surplus cash, as defined, is required to be deposited in a residual receipts account controlled by HUD. 32 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Litigation
MHC and its subsidiaries are named in claims and legal actions in the normal course of its business. Based upon the opinion of counsel, management believes the outcome of such matters will not have a material adverse effect on the financial position or changes in the net assets of the Company.

Construction contracts
The Company has entered into construction contracts with various third party contractors to construct and rehabilitate projects in the original amount of $465,675,696 and $559,410,845 as of December 31, 2021 and 2020, respectively. During 2021 and 2020 change orders were $55,560,825 and $59,690,839, respectively. As of December 31, 2021 and 2020, $34,886,761 and $49,188,948 remains payable, respectively, which includes retainage payable of $14,742,996 and $20,715,667, respectively, and is included in accounts payable and accrued expenses.

MHC's unrealized gain(loss) for the years December 31, 2021 and 2020 is as follows:

Net interest rate swaps
Certificates of deposit
Level 1 Level 2
Level 3 Total
2021 2020 2021 2020 2021 2020 2021 2020
$ - $ - $ 1,673,185 $
(100,163) 243,679
$ $
$ 1,673,185 $ -
(100,163) 243,679
33 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
MHC's financial assets and liabilities measured at fair value as of December 31, 2021 and 2020 are as follows:

Level 1 Level 2
Level 3 Total
2021 2020 2021 2020 2021 2020 2021 2020
Interest rate swaps $ - $ - $ (1,673,185) $
Certificates of deposit 42,469,837 50,086,679 -
Money market investments 6,818,680 12,435,423 -
$ - $
$ (1,673,185) $ -
42,469,837 50,086,679
6,818,680 12,435,423
No other assets or liabilities are measured at fair value as of December 31,2021 and 2020.

On a recurring basis, the Company measures its interest rate swap contracts at their estimated fair value. In determining the fair value of the interest rate swap contracts, the Company uses the present value of expected cash flows based on observable market interest rate yield curves commensurate with the term of the instrument. See "Derivative Instruments and Hedging Activities" in Note 1 for additional information regarding the swaps. In determining the fair value of money market mutual funds and Bank Certificates of Deposit (CDs) at their estimated fair value. In determining the fair value of the money market mutual funds and certificates of deposit, the Company uses quoted market prices and other relevant information generated by market transactions.

We are not able to estimate the length or severity of this outbreak and the related financial impact.

The future impact of the outbreak is highly uncertain and cannot be predicted and there is no assurance that the outbreak will not have a material adverse impact on our financial health. The extent of the impact, if any, will depend on future developments, including actions taken to contain the coronavirus. Management plans to adjust its operations accordingly and will continue to assess and monitor the situation as it evolves. If the length of the outbreak and related effects on our operations continue for an extended period of time, we may have to seek alternative measures to finance our operations. There is no assurance these measures will be successful.

The Company obtains and employs substantial capital and operating subsidies from various federal, state and local governmental agencies, including the federal departments of HUD, USDA and the Veterans Administration. Legislative or regulatory changes in the operations or funding of federal, state and local programs could have a material impact on future results. In addition, the Company obtains funding from private equity groups including national, state and local banks and financial institutions. This funding is also based on a number of government programs, including the Low Income Housing Tax Credit (LIHTC) and the Community Reinvestment Act (CRA). Legislative changes (including changes to Federal Income Tax laws) could impact the level of funding received from these groups and could have a material impact on future results. 34 Mercy Housing California
Notes to Consolidated Financial Statements
December 31, 2021 and 2020
Changes in the current economic and credit market (e.g., a rise in inflation and/or interest rates) environment could increase the cost of capital or limit the ability to access capital. Failure to comply with covenants and conditions imposed by the agreements governing the Company's indebtedness could restrict future borrowing or cause debt to become immediately due and payable. Failure to renew existing loans could impact working capital, capital expenditures, acquisitions, debt service or other business needs.

The Company and its subsidiaries invest in assets consisting of CDs and money market funds which invest in CDs, commercial paper, US Treasury bills, US Agency bonds, notes, and repurchase agreements. Investment policy and guidelines are established by the Finance Committee of the board of trustees. These investments are exposed to various risks, such as interest rate, market and credit. Due to the level of uncertainty related to changes in interest rates, market volatility and credit risks, it is at least reasonably possible that changes in these risks could materially affect the fair value of investments reported in the consolidated statements of financial position as of December 31, 2021. The investment policy and guidelines consider liquidity and risk for each entity and each pool of assets and attempt to diversify asset classes to mitigate risks over the applicable time horizons.

Increased development costs, supply and labor shortages, entitlement delays, uninsured losses from natural disasters and other factors may negatively affect the future results of the Company.

Property operations and development are subject to warranty and liability claims that can be significant.

Management evaluated the activity of the Company through June 6, 2022 (the date the consolidated financial statements were available to be issued) and concluded that two subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements.

The two subsequent events are as discussed in Note 1, the RCHC change in control and as discussed in Note 8 related to the Land Fund.
35 Supplementary Information

Mercy Housing California
Index of Consolidating Financial Information
Mercy Housing California
Mercy Housing California Senior Properties
Mercy Housing Calwest
Mercy Properties California
San Juan Housing Corporation
Page
38 56
59 107
110
37 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Marin Homes for Mercy Senior
Mercy Housing MH California Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi California Properties 1 LLC Initiatives Community (Camino Alto) Homes (Casa Merced) Community Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 8,205,027 $
109,878
8,132,619
93,402,454
4,929,167
53,183
48,849
8,793,302
272,657
$ 495,289 $ 5,260 $ 33,516 $ 22,164 $ 539,087
12,598 8,745 14,602 12,758
- - 28,142
5,728
7,697
869 2,386
17,634 20,827 13,265 12,371
123,947,136 531,249
3,060,518
1,980,087
596,639
10,624,067
(1,216,862)
42,529 62,252
49,679 567,229
217,910 394,875 20,827 323,400
4,559,882 2,278,878 5,280,372 4,292,315
1,331,944 208,347 19,879 92,485
(3,500,667) (2,146,910) (3,205,623) (3,561,078)
15,044,449 2,609,069 735,190 2,115,455 1,147,122
189,495
9,620,000
465,000
18,176,821
14,385,621
(1,625,788)
1,375,354
41,434,597
5,017,185
84,021,100 5,017,185
330,715
1,390,172
330,715 1,390,172
656,748 70,512
417,517
417,517
162,641 1,219
479,657
656,748 70,512 162,641 480,876
$ 223,012,685 $ 5,017,185 $ 330,715 $ 4,530,490 $ 1,434,467 $ 2,248,219 $ 1,359,442 $ 1,465,622 38 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Marin Homes for Mercy Senior
Mercy Housing MH California Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi California Properties 1 LLC Initiatives Community (Camino Alto) Homes (Casa Merced) Community Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 3,665,469 $ - $ 2,179 $ 730,406 $ 173,222 $ 36,579 $ 60,785 $ 1,143,224 201,757 90,278 - 6,916 32,564
- - - 13,861 7,774 - -
- 75,728 37,464
14,787,932 - - -
2,498,942 26,235 3,203 10,846 1,435
- 12,165 8,251 14,101 12,064
22,095,567 201,757 92,457 858,395 229,914 68,442 106,848 60,000
8,570,000
464,136
134,767
3,022,757
70,050
1,569,480
2,142
3,119
3,119
9,228,903 3,092,807 1,569,480 2,142
31,324,470 201,757 92,457 3,951,202 1,799,394 70,584 106,848 3,119 151,285,732 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 151,285,732 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 40,402,483
191,688,215 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 $ 223,012,685 $ 5,017,185 $ 330,715 $ 4,530,490 $ 1,434,467 $ 2,248,219 $ 1,359,442 $ 1,465,622 39 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing Gault Street Senior John W. King Senior Housing Corporation (Mercy Family Housing Corporation Housing Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 17,688 $ 196,854 $ 55,456 $
14,784 27,366 21,864
10,295 29,548 300
2,272 1,066 2,597
10,531
34,028
20,779
9 $
192,737 $
39,478
193
10,214
32,134 $
7,249
268
20,172 $
27,495
4,118 44
7,378
18,538
65,175
15,158
10,000
2,838
13,048
55,570 288,862 100,996 9 242,622 51,147 66,249 106,219
1,084,968 785,749
4,681,219 14,109,498 6,231,784
75,814 316,886 232,899
(3,040,152) (10,159,814) (5,535,420)
1,716,881 5,351,538 1,715,012
230,491
465,790 263,090
4,469,955
1,037,824 95,609 2,000,000 400,000
2,198,103 3,951,568 8,641,805 4,418,247
198,262 79,530 313,919 302,817
(2,562,917) (2,822,006) (7,696,454) (3,754,675)
871,272 1,304,701 3,259,270 1,366,389
268,875 125,966 346,355 197,006
230,491 465,790 263,090 4,469,955 268,875 125,966 346,355 197,006 $ 2,002,942 $ 6,106,190 $ 2,079,098 $ 4,469,964 $ 1,382,769 $ 1,481,814 $ 3,671,874 $ 1,669,614 40 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing Gault Street Senior John W. King Senior Housing Corporation (Mercy Family Housing Corporation Housing Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 68,896 $ 322,412 $ 128,145 $ 3,149 $ 29,388 $ 74,032 $ 170,300 $ 154,244 - 10,431 - 19,569 8,019
- 2,048 -
156,920
1,322 1,972 2,975 3,194 2,054 622 915
14,381 27,335 21,631 39,018 6,751 26,995 14,820
84,599 362,150 152,751 3,149 250,137 90,856 197,917 169,979 665,350 1,006,757
651,624 1,060,319 618,352
1,957 1,119 1,001 1,191 758
1,957 1,119 651,624 1,726,670 1,191 1,625,867
84,599 364,107 153,870 3,149 901,761 1,817,526 199,108 1,795,846 1,918,343 5,742,083 1,925,228 4,466,815 481,008 (335,712) 3,472,766 (126,232) 1,918,343 5,742,083 1,925,228 4,466,815 481,008 (335,712) 3,472,766 (126,232) 1,918,343 5,742,083 1,925,228 4,466,815 481,008 (335,712) 3,472,766 (126,232) $ 2,002,942 $ 6,106,190 $ 2,079,098 $ 4,469,964 $ 1,382,769 $ 1,481,814 $ 3,671,874 $ 1,669,614 41 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Garden Park
Presentation Senior Apartment Mercy Commercial
Housing Community Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Villag California 2,659 $
38,999
29,274 $
20,679
3,751 46,063
519 -
35,167
18,913
81,095 114,929
31,241 $
24,119
10,290
327
4,300
32,287
209,471 $
8,264 $ 238,711 $
5,971 23,546
7,002
10,245
102,564 232,689
MPCAL, LLC MCC 1360 LLC
108,868 $
33,501
2,055 177,763 406,803
54,167 -
18,521
11,177 39,285
52,386 481,818
3,193,106
588,457 3,193,106
1,797,674 242,906 1,213204 617,205 9,960 5,845
14,311,665 5,730,947 11,891,910 5,240,916 7,870,350 325,339 2,586,820 644,896 388,365 31,415 68,868 91,893 -
(11,393,190) (5,282,757) (6,495,591) (2,750,920) (4,476,208) (252,219) (519,407) 5,361,045 1,079,461 6,640,938 3,176,069 3,495,995 73,120 2,073,258 1,506,743 557,405 615,417 1,096,270 244,024 944,074 344,244 33,040
1,506,743 557,405 615,417 1,096,270 244,024 944,074 377,284 $ 6,948,883 $ 1,751,795 $ 7,358,919 $ 4,505,028 $ 3,792,405 $ 1,499,012 $ 3,038,999 $ 3,193,106 42 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Garden Park
Presentation Senior Apartment Mercy Commercial
Housing Community Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Village California MPCAL, LLC MCC 1360 LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 227,894 $ 141,048 $ 50,556 $ 74,304 $ 59,161 $ 151,505 $ 7,206 $ (833) - 11,778 1,476,860 146,670 10,000 2,948,271 192,276 54,167 - - - - - 293,940 -
44,927
- - 96,934 - - - -
1,524 4,135 8,958 2,649 1,341 9,924 -
38,395 19,993 23,694 5,501 22,490 100,045 33,001
267,813 176,954 1,657,002 229,124 92,992 3,209,745 571,350 53,334 255,932 1,256,801 84,779
356,658 (4,375) 3,082,386 480,992 2,686,181
146,064 483,184
612,590 (4,375) 4,339,187 565,771 146,064 3,169,365
267,813 789,544 1,652,627 4,568,311 658,763 3,355,809 3,740,715 53,334 6,681,070 962,251 4,925,701 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 6,681,070 962,251 4,925,701 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 780,591
6,681,070 962,251 5,706,292 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 $ 6,948,883 $ 1,751,795 $ 7,358,919 $ 4,505,028 $ 3,792,405 $ 1,499,012 $ 3,038,999 $ 3,193,106 43 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing Central Coast (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Housing Apts.) Consolidated Properties Community) Needs (1500 Page) Corporation GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 28,507 $ 134,340 $ 355,096 $
5,068 57,139 52,099
- 811
5 42,176
5,190 15,542
2,655 35,838
20,367
$ 348,741 $
71,413
39,463
54,997 - 17,390
61,180
$ 11,264 $
7,550
78,174
3,356
8,876
62,364
78,411 233,318 443,104 54,997 520,797 17,390 109,220 62,364 211,256 455,340 1,560,000
661,257 18,759,635 3,776,013
13,971 433,582 31,310
(429,700) (6,576,683) (2,092,056)
456,784 13,071,874 3,275,267
94,382
(189,532)
869,458 1,011,806
40,134
(95,150) 909,592
1,273,035
2,377,000
(2,377,000)
1,011,806 1,273,035
$ 440,045 $ 14,214,784 $ 4,730,177 $
1,168,786
37,440,347
526,234
(7,156,495)
553,919
9,588,685
88,093
(1,466,415)
31,978,872 8,764,282
628,835 757,482
(13,835)
2,347,800
(2,347,800)
32,869 19,619
1,328,032 $
661,704 (13,835)
33,161,373 $ 3,555 $
(7,549,003)
777,101 (7,549,003)
9,650,603 $ (7,486,639)
44 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing Central Coast (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Housing Apts.) Consolidated Properties Community) Needs (1500 Page) Corporation GP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 11,266 $ 152,843 $ 55,593 $ 1,641 $
6 31,669 16,356 69,480
54 - 3,485 -
1,918 89,876
45 7,843 27,440
4,616 55,775 51,599
17,905 248,130 244,349 71,121
152,589 3,764,264 1,323,717
175,770
215,689 7,250,906 3,669,273
180,000 -
2,256 1,083
724,048 11,017,426 4,994,073
741,953 11,265,556 5,238,422 71,121
(301,908) 2,949,228 (508,245) 1,256,911
(301,908) 2,949,228 (508,245) 1,256,911
132,762 $ 2,780 $
9,567 24,062
12,939
70,915
46,206 $
3,021
7,048
72,239
226,183 26,842 56,275 72,239
343,169
18,970,540
2,377,000
3,571,148
21,690,709 3,571,148
21,916,892 26,842
11,244,481 (23,287)
11,244,481 (23,287)
(301,908) 2,949,228 (508,245) 1,256,911
$ 440,045 $ 14,214,784 $ 4,730,177 $ 1,328,032 $
11,244,481 (23,287)
3,627,423 72,239
6,023,180 (7,558,878)
6,023,180 (7,558,878)
33,161,373 $ 3,555 $
6,023,180 (7,558,878)
9,650,603 $ (7,486,639)
45 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Consolidated Mercy Crossroad Gardens California 80, LP, 3425 Orange California 81, LP Mercy Mather California 79, LP Housing California Consolidated Mercy Consolidated Consolidated Grove, LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Senior Properties Housing Calwest Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 219,650 $ 198,988 $
49,544 64,690
287,491 263,032
2,573
22,695 34,300
579,380 563,583
1,754,172 1,912,371
14,764,308 12,700,160
321,730 771,516
(2,098,354) (1,880,024)
14,741,856 13,504,023
645,473 583,229
29,719 81,090
675,192 664,319
17,353
$ 287,631 $
17,922
239,469
131,861
44,950
$ 172,688 $ 1,038,675 $ 27,567,755
16,547 63,326 2,921,867
79,407 450 12,299,672
64,257 34,666 4,973,644
16,250 1,569 976,524
19,822
66,082 11,116,288
639,440
17,353 721,833 16,250 352,721 1,204,768 60,495,190
(3,784)
4,262,630
27,943,586
977,402
(1,998,222)
31,185,396
1,034,466 1,203,753 178,793,462
12,317,003 14,920,974 1,571,409,781
268,988 2,005,875 36,043,327
99,508,247
(1,615,522) (7,794,797) (244,517,759)
12,004,935 10,335,805 1,641,237,058
478,216 - 2,026,121 2,309,005 81,702,373
117,981
(3,784) 596,197
$ 15,996,428 $ 14,731,925 $ 13,569 $
(4,277) (399,215)
1,397,284
45,778 22,367,557
4,277) 2,071,899 2,309,005 105,067,999
32,503,426 $ 11,973 $
14,429,555 $ 13,849,578 $ 1,806,800,247
46 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Consolidated Mercy Crossroad Gardens California 80, LP, 3425 Orange California 81, LP Mercy Mather California 79, LP Housing California Consolidated Mercy Consolidated Consolidated Grove, LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Senior Properties Housing Calwest Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 83,797 $ 77,517 $ 20 $ 118,752 $ - $ 109,665 $ 1,881,782 $ 49,863,470 214,590 310,258 24,724 26,210 53,396 225,581 20,882 29,765,907 - - - - - - 117,133 2,363,194
2,170
373,688 223,130,313
- - - - - 8,912,198
5,209 2,154 5,334 2,788 12,743 2,413,220
49,201 63,789 17,522 15,438 59,533 2,915,656
352,797 453,718 24,744 167,818 53,396 353,472 2,465,761 319,366,128 57,383 4,282,379 139,104 105,828 787,556 55,710,958
1,283,496
9,324,468 8,014,293 11,383,169 5,964,671 7,353,047 926,234,515 2,087,284 - - 110,001 45,063,326
582,782 - 63,447 37,414,367
12,051,917 12,296,672 11,522,273 6,180,500 8,204,050 1,065,706,662 12,404,714 12,750,390 24,744 11,690,091 53,396 6,533,972 10,669,811 1,385,072,790 3,591,714 1,981,535 (11,175) 20,813,335 (41,423) 7,895,583 3,179,767 421,727,457 3,591,714 1,981,535 (11,175) 20,813,335 (41,423) 7,895,583 3,179,767 421,727,457 3,591,714 1,981,535
(11,175) 20,813,335
(41,423) 7,895,583
3,179,767 421,727,457
$ 15,996,428 $ 14,731,925 $ 13,569 $ 32,503,426 $ 11,973 $ 14,429,555 $ 13,849,578 $ 1,806,800,247 47 Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
Consolidated San
Consolidated Mercy Juan Housing
Properties California Corporation
Consolidated Mercy
Eliminations Housing California
$ 653,888 $ 498,104 $ $ 42,024,383
42,588 138,361 3,857,026
13,447,227
13,953 25,009 (148,827) 13,966,883
75,477 - (30,247,095) 67,671,551
3,150 4,932,317
53,183
48,849
(8,537,011) 256,291
239,502 56,942 (1,721,044) 10,625,318
1,416,874 2,056,314
2,445,432 718,416 (40,653,977) 158,939,342
4,729,519 1,734,224 213,099,889
8,910,029 8,042,034 (35,546,006) 1,816,269,511
60,290 3,819,076 50,356,252
- - 10,624,067
- - (1,270,703) 98,237,544
(6,923,036) (10,561,823) 7,540,358 (367,943,398)
6,776,802 3,033,511 (29,276,351) 1,820,643,865
887,417 702,311 102,372,645
9,620,000
465,000
60,000 (18,015,818) 221,003
14,385,621
13, 753,972 10, 589,473
22,000 (4,724,800) 1,397,354
(36,122,455) 6,934,238
22,767,787
969,417 702,311 (45,109,101) 168,753,121
$ 10,191,651 $ 4,454,238 $ (115,039,429) $ 2,148,336,328

Mercy Housing California
Consolidating Statement of Financial Position
December 31, 2021
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
Consolidated San
Consolidated Mercy Juan Housing
Properties California Corporation
Consolidated Mercy
Eliminations Housing California
$ 139,066 $ 229,124 $ 22,010 $ 59,261,460
172,090 159,696 (32,488,787) 5,060,706
679,735 12,761 - 3,493,985
2,170
1,355,614 151,558 225,418,006
192,416 - (8,368,095) 15,621,385
6,302 15,003 (1,706,710) 3,389,577
44,759 130,755 3,927,237
2,589,982 698,897 (42,541,582) 316,174,526
- - (60,000) -
528,108 2,580,345 - 73,045,019
(1,283,496) 175,770
2,333,687 6,509,304 (2,347,800) 1,030,541,284
- (46,363,434) 3,918,313
11,500 (16,764,715) 22,152,953
2,873,295 9,089,649 (66,819,445) 1,129,833,339
5,463,277 9,788,546 (109,361,027) 1,446,007,865
4,728,374 (5,334,308) (521,193,406) 145,630,385
515,515,004 515,515,004
4,728,374 (5,334,308) (5,678,402) 661,145,389
41,183,074
4,728,374 (5,334,308) (5,678,402) 702,328,463
$ 10,191,651 $ 4,454,238 $ (115,039,429) $ 2,148,336,328

Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Marin Homes for Mercy Senior
Mercy Housing MH California Affordable Housing All Hallows Independent Living Cantebria Senior Housing Oxnard Francis of Assisi California Properties 1 LLC Initiatives Community (Camino Alto) Homes (Casa Merced) Community Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ - $
21,119,417
7,908,201
9,513,201
1,588,261
842,356
825,718
9,889,654
$ 1,401,822 $ 404,306 $ 417,753 $ 422,711 $
(1,230)
30,379
635
2,294
4 4,153
9 4,463
492,927
51,686,808 1,430,971 407,235 421,910 427,183 492,927
16,068,192
3,097,425
813,163
167,820
13,996,001
629,156
4,097
159,917
437,006
5,724,451
- - 292,857 108,625 161,043 127,554
14 941 81,621 39,306 78,164 67,594
201,743 1,245 37,048 8,350 9,956 52,603
- 296,094 64,070 198,479 161,167
232,589 112,136 137,374 151,199
169,185 96,657 -
- 3,091 2,523 44
341 38
210
862,904
41,097,569 201,757 2,224 1,109,394 432,235 587,539 560,161 863,114 10,589,239 (201,757) (2,224) 321,577 (25,000) (165,629) (132,978) (370,187) 181,098,976 - 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 5,017,185 - - - 444,534
$ 191,688,215 $ 4,815,428 $ 238,258 $ 579,288 $ (364,927) $ 2,177,635 $ 1,252,594 $ 1,462,503 50 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Mercy Family Plaza Oceana Senior
Maria B. Freitas Marin Housing Limited Partnership Notre Dame Senior Housing Gault Street Senior John W. King Senior Housing Corporation (Mercy Family Housing Corporation Housing Senior Community Corporation (Martinelli House) Plaza) Mercy Gardens Corporation (Oceana Terrace) Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 316,865 $ 1,172,556 $ 695,643 $
13 226
5,412 35,911
58 176,819
4,474 -
$ 839,152 $ 277,709 $ 654,327 $ 533,676
41 17,407
6 1,594
202
11,904
113
674,745
322,290 1,208,693 700,175 176,819 856,600 279,309 666,433 1,208,534 132,141 587,729
52,768 144,712
24,580 10,926
180,683 541,742
107,533 285,031
3,997
287,269
104,997
26,729
242,733
246,955
553 3,619
327,262
48,354 74,763 296,753 156,150
88,234 41,065 104,240 76,465
8,993 12,468 15,007 12,880
238,240 147,594 326,235 185,730
220,612 98,991
27,592 31,810
603,270 1,287
270,679
207,190
36,807
40 501,702 1,570,693 912,302 327,262 1,235,295 407,978 1,012,914 675,262 (179,412) (362,000) (212,127) (150,443) (378,695) (128,669) (346,481) 533,272 2,097,755 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) (29,970) - -
$ 1,918,343 $ 5,742,083 $ 1,925,228 $ 4,466,815 $ 481,008 $ (335,712) $ 3,472,766 $ (126,232) 51 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Garden Park
Presentation Senior Apartment Mercy Commercial
Housing Community Russell Manor Tierra Del Sol, Inc. Community Mercy Oaks Village California MPCAL, LLC MCC 1360 LLC Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
$ 1,368,520 $ 523,607 $ 703,427 $ 433,562 $ 495,170 $ 687,168 $ 509,365 $ (850) (2,683)
17,337 4,866
Total revenues 1,385,007
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
3,246 (2,775)
9,052 351,406
525,790 715,725
13 (5,204) 60
7,412 156,456 57,553
782,193 502,595 838,420 566,978
669,454 209,306 216,281 148,582 188,548 155,498 -
168,577 94,149 127,599 59,086 81,794 62,595 30,685
16,780 10,007 9,580 282,308 44,747 5,846 6,942
606,193 208,044 495,625 202,016 295,320 17,660 113,268
25,000 -
443,333 220,976 278,042 247,746 152,264 650,547 330,084 36 10,753 6,404 93,271 5,771 135,242
- 45 449 3,091 - -
1,904,373 753,280
850
2,616
1,133,980 1,061,100 768,444 892,146 616,221 3,466
(519,366) (227,490) (418,255) (278,907) (265,849) (53,726) (49,243) (3,466) 7,200,436
1,189,741
6,124,547
215,624
3,399,491
(1,803,071)
(652,473)
3,143,238
$ 6,681,070 $ 962,251 $ 5,706,292 $ (63,283) $ 3,133,642 $ (1,856,797) $ (701,716) $ 3,139,772 52 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Mercy Housing Mercy Housing
California 58, LP Mercy Housing California 51, LP Mercy Housing Mercy Housing Central Coast (Neary Lagoon Sycamore Street California Family (Bill Sorro California Special California 57, LP Florin Housing Housing Apts.) Consolidated Properties Community) Needs (1500 Page) Corporation GP Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 63,621 $ 1,117,448 $ 1,148,941 $
45 1,079
86 5,015
9,051 20,431
64,745 1,126,585
- $
989,427 $
- $ 182,993 $
124,192 17,390
1,174,387 124,192
312
31,901
(1,259)
2,670
21,139
1,021,640 17,390 184,404 21,139
36,462 247,889 165,392 - 130,368 - 43,626 -
6,108 148,870 101,042 124,242 135,110 17,439 57,909 21,139 4,262 91,665 86,649 2,523 102,059 623 20,447 2,834
16,458 719,483 345,790 - 1,497,785 292,353 -
19,223 540,367 289,044
7,016 197,275 122,863
33,807 15,578
43 89,572 1,979,356
(24,827)
157
1,126,358 126,922
(852,771) 48,029
514,157
121,151
92,825
85,701
1,177
32 146
2,593,455 18,094
501,213 24,119
(2,730) (1,571,815) (704) (316,809) (2,980)
(277,081) 3,801,999 (556,274) 1,259,641 12,816,296
(22,583)
6,339,989
(7,555,898)
$ (301,908) $ 2,949,228 $ (508,245) $ 1,256,911 $ 11,244,481 $ (23,287) $ 6,023,180 $ (7,558,878) 53 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Consolidated Mercy Crossroad Gardens California 80, LP, 3425 Orange California 81, LP Mercy Mather California 79, LP Housing California Consolidated Mercy Consolidated Consolidated Grove, LLC (Courtyard Inn) Veterans 3 LLC (Mather Phase 3) Senior Properties Housing Calwest Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
$ 695,584 $ 788,788 $ - $ 1,342,646 $ - $ 683,259 $ 4,044,361 $ 68,033,173 59,948 16,250 31,670
(1,825) 31 (3,463) -
5,692 39,999 17,241 10,000
699,451 828,818 59,948 1,356,424 26,250
9,294,840
(2,280) (1,793) (1,847,663)
7,409 99,429 12,863,253
688,388
4,141,997 88,375,273
206,369 226,661 - 420,783 - 219,628 823,400 14,213,435
81,303 138,970 60,798 221,259 51,260 117,465 461,580 10,730,212 53,437 102,710 1,924 145,186 1,791 101,079 51,243 5,679,150 529,806 787,959 1,200,538 - 683,770 932,816 49,267,625
2,088,780 553,509
223,637 304,114 302,660 - 173,278 696,708 22,735,175
68,740 249,180 87,346 - 169,417 467,402 22,476,926
5,993 10,251 1,322 10,000 7,843 7,551 1,279,759
102 59 206,615
1,169,285 1,819,845 62,824 2,379,094 63,110 1,472,480 5,529,480 127,142,406 (469,834) (991,027) (2,876) (1,022,670) (36,860) (784,092) (1,387,483) (38,767,133) 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 307,799 - 2,239,765 632,969 59,182,152
$ 3,591,714 $ 1,981,535 $ (11,175) $ 20,813,335 $ (41,423) $ 7,895,583 $ 3,179,767 $ 421,727,457 54 Mercy Housing California
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues
Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
Consolidated San
Consolidated Mercy Juan Housing
Properties California Corporation
Consolidated Mercy
Eliminations Housing California
$ 907,994 $ 1,551,486 $ (1,637,258) $ 91,769,802
- - (2,427,318) 18,692,099
(5,687,275) 2,491,515
- 9,513,201
58,488 - 10,941,589
- - (142,500) 699,856
4,561 1,507 (362,492) (1,214,797)
95,191 149,956 (12,379,145) 12,753,556
1,066,234 1,702,949 (22,635,988) 145,646,821
165,525 366,904 - 37,195,541
1,017,185 250,217 (2,079,866) 16,265,333
22,385 19,250 (4,338,591) 3,765,143
518,486 452,794 (1,060,500) 60,873,876
- (11,776,961) 6,076,495
393,570 672,626 (812,864) 31,159,833
155,975 282,735 (164,325) 24,860,503
7,296 19,307 (134,214) 2,139,244
7,492
2,287,914
(1,221,680)
437,006
5,724,451
7,492
(481,877) (274,344)
2,063,833 (20,849,198) 188,230,573
(360,884) (1,786,790) (42,583,752)
5,950,054 (4,973,424) (3,895,822) 677,113,571
4,210 67,798,644
$ 4,728,374 $ (5,334,308) $ (5,678,402) $ 702,328,463

Mercy Housing California Senior Properties
Consolidating Statement of Financial Position
December 31, 2021
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP $ $
$ 181 $ 252,022 $ 207,103 $
9,871 7,000
20 731
1,167
11,828
8,930
553,536 $
20,586
9,680
17,273
25,833 $
25,869
450
24,235
1,569
28,051
Eliminations
(1,167)
Consolidated
Mercy Housing
California Senior
Properties
$ 1,038,675
63,326
450
34,666
1,569
66,082
181 273,741 224,931
601,075 106,007
32,240 210,151 614,986 346,376
2,583,420 2,842,371 4,928,175 4,567,008
155,923 902,126 762,211 185,615
(1,194,646) (1,739,043) (2,434,832) (2,426,276)
1,576,937 2,215,605 3,870,540 2,672,723
(1,167) 1,204,768
1,203,753
14,920,974
2,005,875
(7,794,797)
10,335,805
735,427 586,761 350,192 636,625 2,309,005
3,179,013 (3,179,013)
3,179,013
735,427 586,761 350,192 636,625 (3,179,013) 2,309,005
Total assets $ 3,179,013 $ $ 181 $ 2,586,105 $ 3,027,297 $ 4,821,807 $ 3,415,355 $ (3,180,180) $ 13,849,578 56 Mercy Housing California Senior Properties
Consolidating Statement of Financial Position
December 31, 2021
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP $ 2,780 $
20,882
$
Eliminations
Consolidated
Mercy Housing
California Senior
Properties
$ 684,877 $ 477,055 $ 597,502 $ 119,568 $ - $ 1,881,782 1,167 (1,167) 20,882
29,532 17,477 26,514 43,610 - 117,133
80,016 63,672 115,000 115,000 373,688
4,212 25 349 8,157 12,743
9,367 6,643 20,087 23,436 59,533
23,662
808,004 564,872 760,619 309,771 (1,167) 2,465,761
787,556 787,556
1,486,505 1,202,797 2,247,796 2,415,949 7,353,047
62,544 903 63,447
1,549,049 1,202,797 3,036,255 2,415,949 8,204,050
Total liabilities 23,662
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
2,357,053 1,767,669 3,796,874 2,725,720 (1,167) 10,669,811 3,155,351 181 229,052 1,259,628 1,024,933 689,635 (3,179,013) 3,179,767 3,155,351 181 229,052 1,259,628 1,024,933 689,635 (3,179,013) 3,179,767 3,155,351 181 229,052 1,259,628 1,024,933 689,635 (3,179,013) 3,179,767 Total liabilities and net assets $ 3,179,013 $ $ 181 $ 2,586,105 $ 3,027,297 $ 4,821,807 $ 3,415,355 $ (3,180,180) $ 13,849,578 57 Mercy Housing California Senior Properties
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2021
Revenues
Rent - net of vacancies
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Mercy Housing Villa Columbia
California Senior Dorothy Day Monsignor Lyne, St. Andrew Mercy Riverside, Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP $ 853,801 $ 915,492 $ 1,320,016 $ 955,052 $
1,343 (2,002)
29,089 32,629
(701) (433)
8,860 28,851
Eliminations
Consolidated
Mercy Housing
California Senior
Properties
$ 4,044,361
(1,793)
99,429
Total revenues 884,233 946,119 1,328,175 983,470 4,141,997 Expenses and losses
Compensation
Administrative
Professional services
Depreciation and amortization
Grants
Facility
Interest and fees
Bad debts
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership
Total expenses and losses
Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
Net assets at end of year
425
2,543
1,370,671
4,867
144,691
358
1,944,089
193,422 169,194 168,121 292,663
2,318 62,082 49,350 215,383 132,022
8,254 9,623 12,252 13,704
156,772 245,287 342,548 188,209
130,373 118,002 186,920 261,413
96,489 67,997 130,609 171,949
- - 7,551
823,400
461,580
51,243
932,816
2,088,780
696,708
467,402
7,551
(1,370,671)
1,373,639 149,916 1,946,407 647,392 659,453 1,055,833 1,067,511 (1,370,671) 5,529,480 (1,373,639) (149,916) (1,946,407) 236,841 286,666 272,342 (84,041) 1,370,671 (1,387,483) 3,896,021 149,916 1,313,619 (7,789) 972,962 752,591 773,676 (3,916,715) 3,934,281 632,969 - 632,969 - - - - (632,969) 632,969
$ 3,155,351 $ $ 181 $ 229,052 $ 1,259,628 $ 1,024,933 $ 689,635 $ (3,179,013) $ 3,179,767 58 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Third and LeConte
Mercy Housing Mercy Housing California XXXVIII, Mercy Housing Mercy Housing Associates LP Mercy Housing California XXXIX, LP California XL, LP LP (East Leland California XLII, LP California XLIV, LP (Bayview Hill Caroline Severance Calwest (Gleason Park) (Arlington Hotel) Courts) (Boulevard Court) (1180 Fourth Street) Gardens) LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Fumiture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
126
110
1,494,344
103,333 $ 355,635 $ 40,718 $ 101,563 $ 1,036,376 $ 687,277 $ 57,310 39,565 59,588 25,244 133,524 15,547
- - - 201,782 69,494 -
3,903 56,287 1,372 249,375 86,052 143,634
- - - 122,658 -
37,964 57,793 32,923 27,113 142,175 57,347
58,391
1,494,580 202,510 509,280 134,601 605,077 1,590,279 903,805 58,391 (51,813,647)
50,000
13,685,439
1,082,249 3,972,090 2,754,496 3,090,021 1,876,368 2,416,056 20,095,787 35,842,361 19,590,560 13,825,757 63,842,421 28,865,848 209,399 2,073,484 345,014 855,612 2,684,203 998,220
(8,673,938) (15,371,484) (11,624,352) 6,724,601) (14,889,668) (10,608,835) 12,713,497 26,516,451 11,065,718 11,046,789 53,513,324 21,671,289 1,484,687 3,558,861
11,326
35,411
429,047 3,642,691 1,157,314 973,418
5,856 33,035 47,860 40,489
(6,620)
(38,078,208) 1,496,013 3,594,272 434,903 3,675,726 1,205,174 1,013,907 (6,620) $ (36,583,628) $ 14,412,020 $ 30,620,003 $ 11,635,222 $ 15,327,592 $ 56,308,777 $ 23,589,001 $ 51,771 59 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Third and LeConte
Mercy Housing Mercy Housing California XXXVIII, Mercy Housing Mercy Housing Associates LP Mercy Housing California XXXIX, LP California XL, LP LP (East Leland California XLII, LP California XLIV, LP (Bayview Hill Caroline Severance Calwest (Gleason Park) (Arlington Hotel) Courts) (Boulevard Court) (1180 Fourth Street) Gardens) LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 2,780 $ 95,976 $ 401,700 $ 113,419 $ 121,960 $ 428,554 $ 150,307 $ 1,118 1,149,164 51,382 8,980 11,418 138,372 78,176 166,665 78,238 - - - 2,505 - 5,310 - -
50,459 79,954
23,217 422,176 2,229 598,208 695,643 21,667
57,038 39,178 60,540 24,184 133,042 14,625
1,151,944 227,613 872,034 240,570 882,724 1,420,679 353,264 79,356 6,495,205 2,486,043 857,889 2,272,517 2,367,542
1,187,838 21,311,484 33,495,663 11,431,843 10,779,339 37,332,600 18,110,711 1,139,500 1,201,238 - - - - -
- 2,000 7,033,544 1,355 6,254,839 10,000
2,327,338 22,514,722 47,024,412 13,919,241 17,892,067 39,615,117 20,478,253 3,479,282 22,742,335 47,896,446 14,159,811 18,774,791 41,035,796 20,831,517 79,356 (40,062,910) (8,330,315) (17,276,443) (2,524,589) (3,447,199) 15,272,981 2,757,484 (27,585) (40,062,910) (8,330,315) (17,276,443) (2,524,589) (3,447,199) 15,272,981 2,757,484 (27,585) (40,062,910) (8,330,315) (17,276,443) (2,524,589) (3,447,199) 15,272,981 2,757,484 (27,585) $ (36,583,628) $ 14,412,020 $ 30,620,003 $ 11,635,222 $ 15,327,592 $ 56,308,777 $ 23,589,001 $ 51,771 60 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing 1100 Ocean
Mercy Housing Mercy Housing California 52,LP Avenue Limited 55 Laguna, LP California XLIII, LP Mercy Housing California 53, LP (School House Partnership (1100 (Open House (Caroline Severance California 47, LP Madonna Senior (Madonna Station -Vista Ocean Avenue Community at 55 Manor) 7th & H GP, LLC (7th & H Street) Housing LLC Residences) Grande) Apts.) Laguna) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 101,619 $
102,867
6,058
52,086
151,569
$ 135,181 $
68,478
605
86,264
60,221
85,000
$ 51,548 $ 616,627 $ 221,569 $ 808,333
60,382 90,985 53,618 33,143
- - 933,710 -
261,888 18,341 61,962 130,011
35,526
33,666
48,245
59,264
262,630 151,569 350,749 85,000 409,344 759,619 1,319,104 1,030,751 3,897,034
27,241,564
513,330
(8,893,353)
4,434,686
36,005,174
949,532
(13,641,548)
5,722 20,714 1,278,420 2,037,195
11,321,773 20,582,982 29,669,712 23,423,671
314,516 181,140 982,720 481,726
(4,283,723) (5,021,881) (6,129,965) (5,579,948)
22,758,575 27,747,844 7,358,288 15,762,955 25,800,887 20,362,644 593,981 4,135,711
42,182
14,205,607
636,163 14,205,607
42,815
28,926
4,178,526 28,926
3,778,702 672,468 1,428,849 398,432
1,020,893 5,692 23,673 2,156,907
4,799,595 678,160
1,452,522 2,555,339
$ 23,657,368 $ 14,357,176 $ 32,277,119 $ 113,926 $ 12,567,227 $ 17,200,734 $ 28,572,513 $ 23,948,734 61 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing 1100 Ocean
Mercy Housing Mercy Housing California 52,LP Avenue Limited 55 Laguna, LP California XLIII, LP Mercy Housing California 53, LP (School House Partnership (1100 (Open House (Caroline Severance California 47, LP Madonna Senior (Madonna Station -Vista Ocean Avenue Community at 55 Manor) 7th & H GP, LLC (7th & H Street) Housing LLC Residences) Grande) Apts.) Laguna) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 163,968 $ 1,118 $ 317,546 $ 1,118 $ 615,128 $ 254,309 $ 122,854 $ 62,583 58,853 190,633 122,872 - 54,805 72,247 103,178
12,616 - - 24,525 - -
214,083 137,991
28,073 26,009 29,701 9,963 23,747 4,801
105,272 66,069 56,884 89,488 53,308 30,593
582,865 191,751 409,624 123,990 701,713 571,081 272,156 201,155 3,682,288 813,989 1,344,152 621,243 1,433,898 1,725,979 1,091,478
16,222,103 10,947,009 9,134,371 7,276,525 17,350,137 7,912,073 - - - 4,452,969 700,000 -
150,021 446 848 15,000 148,467
20,054,412 11,760,998 10,478,969 13,443,063 19,499,035 9,786,519 20,637,277 191,751 12,170,622 123,990 11,180,682 14,014,144 19,771,191 9,987,674 3,020,091 14,165,425 20,106,497 (10,064) 1,386,545 3,186,590 8,801,322 13,961,060 3,020,091 14,165,425 20,106,497 (10,064) 1,386,545 3,186,590 8,801,322 13,961,060 3,020,091 14,165,425 20,106,497 (10,064) 1,386,545 3,186,590 8,801,322 13,961,060 $ 23,657,368 $ 14,357,176 $ 32,277,119 $ 113,926 $ 12,567,227 $ 17,200,734 $ 28,572,513 $ 23,948,734 62 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 54, LP Mercy Housing California 56, LP Coastside Senior Esparto Family (Esperanza Sunset Lane California 55, LP (Jefferson Park Housing Limited EI Monte Veterans EI Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
55,959
$ 20,649 $
32,411
1,864
12,426
55,959 67,350
(282)
2,946,584
8,432,461
181,490
(3,287,447)
9,917
$ 27,975 $ 18,913 $ 537,455 $
28,116 51,850 13,735
- - 238,742
607
17,483
28,218
3,610
21,146
23,730
$ 144,833
33,706
11,529
45 21,049
9,917 74,181 98,981 814,688 23,730 211,162
1,493,737 1,880,926 675,178
10,301,452 15,279,985 13,057,001
202,287 218,032 473,093
2,467 -
(2,777,179) (5,020,797) (4,576,060)
8,273,088 9,222,764 12,358,146 9,629,212
1,293,775
10,071,330
602,016
(3,427,643)
8,539,478
301,539 383,300 234,605 574,950 628,424
(433)
15,771 17,036 29,341 52,796
(282) 317,310
82,335
22,626
(433) 400,336 263,946 627,746 82,335 651,050
$ 55,677 $ 8,657,748 $ 9,484 $ 9,697,281 $ 12,721,073 $ 11,071,646 $ 106,065 $ 9,401,690
63 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 54, LP Mercy Housing California 56, LP Coastside Senior Esparto Family (Esperanza Sunset Lane California 55, LP (Jefferson Park Housing Limited EI Monte Veterans EI Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
$
1,118 $ 88,916 $ 1,118 $ 44,296 $ 128,787 $ 197,816 $ 1,118 $ 55,245 81,189 - 33,807 54,543 158,819 25,307 44,418 23,730
- 1,712 - 959 8,327 5,014 - -
98,575 23,126 37,846 56,440
2,771 23,397 9,384 1,994 878
31,425 27,711 50,049 12,920 33,204
82,307 223,399 34,925 174,032 393,212 299,491 45,536 113,057 950,626
3,937,993
1,037,159 1,061,749
539,902
4,479,764 5,647,980 3,925,333
- 1,074,176 587,838
174,167 1,178,070
Total long-term liabilities 4,888,619 5,516,923 7,958,072 6,231,143 Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
591,521
4,043,464
2,883
4,637,868
82,307 5,112,018 34,925 5,690,955 8,351,284 6,530,634 45,536 4,750,925 (26,630) 3,545,730 (25,441) 4,006,326 4,369,789 4,541,012 60,529 4,650,765 (26,630) 3,545,730 (25,441) 4,006,326 4,369,789 4,541,012 60,529 4,650,765 (26,630) 3,545,730 (25,441) 4,006,326 4,369,789 4,541,012 60,529 4,650,765 $ 55,677 $ 8,657,748 $ 9,484 $ 9,697,281 $ 12,721,073 $ 11,071,646 $ 106,065 $ 9,401,690 64 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing
1028 Howard California 60, LP California XI, LP Mercy Eden House Transbay Block 6, California 62, LP Sunset Valley Street, LLC (Quinn Cottages) (Madison Place) LLC Eden House, L.P. LLC 280 Beale) Duplexes, LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 196,484 $ 58,522 $ 30,090 $
27,449 9,284 33,757
2,809 5,373 1,721
14,327 28,554 14,949
639,440
241,069 101,733 719,957
1,216,886
3,610,847 4,398,498
109,838 302,250
1,502,185) (1,807,584)
2,218,500 4,110,050
732,475
110
110
3,066,048 223,233
9,951
230,552
230,552
634,329
$ 424,502 $
83,580
9,849 -
473 170,963
31,988
550,392 170,963
1,060,410
11,326,978
652,629
(3,141,734)
$ 580,484 $
66,449
37,431
118,301
30,507
17,000
833,172 17,000
985,629
24,302,115
700,486
199
(4,671,814)
9,898,283 21,316,615
2,325,796 834,158
500,274
573,994
690,000 61
28,946 22,526
732,475 3,075,999 223,233 634,329 2,354,742 1,190,274 856,684 574,055 $ 3,192,044 $ 7,287,782 $ 943,300 $ 864,881 $ 12,803,417 $ 1,361,237 $ 23,006,471 $ 591,055 65 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing
1028 Howard California 60, LP California XI, LP Mercy Eden House Transbay Block 6, California 62, LP Sunset Valley Street, LLC (Quinn Cottages) (Madison Place) LLC Eden House, L.P. LLC 280 Beale) Duplexes, LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 44,344 $ 77,162 $ 39,639 $ 1,118 $ 104,617 $ 1,118 $ 88,505 $ 1,138 5,922 150,000 - 2,647 162,715 142,473 113,538
208 - 1,035 12,711 - 1,600 -
34,305 35,629 139,057 - 35,397
3,846 4,852 1,734 33,880 10,829
26,949 8,785 32,227 84,852 66,481
109,652 96,721 260,264 1,118 377,764 163,833 345,285 114,676 1,261,614 661,577 1,688,612 40,591 2,516,150
861,012
2,035,999 4,893,724 799,437 2,636,531 690,000 14,131,663 - - - 3,100,000 - 690,000
4,750 2,814 3,335 15,000
3,297,613 5,560,051 2,490,863 6,641,469 690,000 17,352,813 3,407,265 5,656,772 2,751,127 1,118 7,019,233 853,833 17,698,098 114,676 (215,221) 1,631,010 (1,807,827) 863,763 5,784,184 507,404 5,308,373 476,379 (215,221) 1,631,010 (1,807,827) 863,763 5,784,184 507,404 5,308,373 476,379 215,221) 1,631,010 (1,807,827) 863,763 5,784,184 507,404 5,308,373 476,379 $ 3,192,044 $ 7,287,782 $ 943,300 $ 864,881 $ 12,803,417 $ 1,361,237 $ 23,006,471 $ 591,055 66 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
California 63, LP Mercy Housing Mercy Housing
(Sunset Valley Land Park Woods, California 68, LP Transbay Block 7, California 64, LP Mercy Mather Duplexes) 345 Arguello, LP LLC Land Park Woods) 1800 Pine, LP LLC (Transbay Block 7) Veterans, LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 94,127 $ 550,800 $
49,268 18,963
127,386
4,454 12,301
23,822 38,316
171,671 747,766
10,328,013 75,402
13,232,248 27,903,759
278,106 492,038
(4,149,742) (4,080,929)
19,688,625 24,390,270
886,681 1,282,420
51,750 881,995
116,664
$ 72,136 $ 846,699 $
57,149 24,171
386,871
837 17,403
21,490 60,296
167,493
$ 967,134 $
128,724
2,087
9,670
99,224
151,612 1,335,440 167,493 1,206,839
2,629,622 365,207
9,890,258 33,009,794
445,854 624,527
(2,644,369) (4,967,458)
10,321,365 29,032,070
4,147,129
58,948,414
695,097
(6,702,253)
57,088,387
1,157,069 1,457,375 689,367
381,707
38,558 1,563,112 56,676
120,520
938,431 2,164,415 116,664 1,195,627 3,020,487 381,707 746,043 120,520 $ 20,798,727 $ 27,302,451 $ 116,664 $ 11,668,604 $ 33,387,997 $ 549,200 $ 59,041,269 $ 120,520 67 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
California 63, LP Mercy Housing Mercy Housing
(Sunset Valley Land Park Woods, California 68, LP Transbay Block 7, California 64, LP Mercy Mather Duplexes) 345 Arguello, LP LLC Land Park Woods) 1800 Pine, LP LLC (Transbay Block 7) Veterans, LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 52,442 $ 86,752 $ - $ 57,755 $ 92,713 $ - $ 147,190 $ 441 8,500 45,286 12,568 - 89,040 94,435 171,723 16,605
- 187,729 - 396,806 - 7,802 -
104,960 115,906 159,485
1,203 1,312 19,725 8,550 37,713
48,798 18,157 56,645 23,628 130,826
110,943 444,196 12,568 134,125 726,643 94,435 654,739 17,046 1,447,340 2,188,306 1,366,632
2,239 - -
8,851,424 17,740,406 4,055,292 22,195,565 32,158,504
69,758 500,000 740,000 1,120,000 1,733,283
- 1,484 17,348 - 45,000
10,370,761 18,241,890 7,000,946 23,315,565 35,303,419
10,481,704 18,686,086 12,568 7,135,071 24,042,208 94,435 35,958,158 17,046 10,317,023 8,616,365 104,096 4,533,533 9,345,789 454,765 23,083,111 103,474 10,317,023 8,616,365 104,096 4,533,533 9,345,789 454,765 23,083,111 103,474 10,317,023 8,616,365 104,096 4,533,533 9,345,789 454,765 23,083,111 103,474 $ 20,798,727 $ 27,302,451 $ 116,664 $ 11,668,604 $ 33,387,997 $ 549,200 $ 59,041,269 $ 120,520 68 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Laguna Senior
California 61, LP California 65, LP Housing, L.P. (95
(Mather Veterans Mercy Housing (The Arbor at Mercy Laguna LLC, Laguna Senior Village) California 65, LLC Hesperion) Plaza Maria, LLC GP Housing) JFK Tower, LP 2698 California, LP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 241,681 $
11,987
10,481
24,716
102,411
$ 321,374 $ 101,676 $
64,412 72,234
240,441 -
39,764 9,292
38,208
14,357
115,644
$ 376,350 $ 665,546 $ 562,266
92,130 24,962 9,742
2,839,626 - -
58,125
87,099
17,799
71,995
6,365
30,189
288,865 102,411 704,199 197,559 115,644 3,453,330 780,302 608,562 1,112,787
13,883,195
434,035
(2,573,122)
12,856,895
6,272,773
701
2,991,331 750,000
22,957,399 2,390,251
437,132 7,108
(3,445,012) (1,893,651)
22,940,850 1,253,708
738,268 152,426
134,862
1,700,519 512,587 245,919
37,992,233 50,256,565 26,344,229
643,584 943,205 488,807
(2,857,169) (6,314,070) (3,366,200)
37,479,167 45,398,287 23,712,755
476,346
1,383,568 981,168
43,410 43,679 4,288,693 1,855,894 827,164
6,316,183 701 781,947 152,426 134,862 4,765,039 3,239,462 1,808,332 $ 19,461,943 $ 103,112 $ 24,426,996 $ 1,603,693 $ 250,506 $ 45,697,536 $ 49,418,051 $ 26,129,649 69 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Laguna Senior
California 61, LP California 65, LP Housing, L.P. (95
(Mather Veterans Mercy Housing (The Arbor at Mercy Laguna LLC, Laguna Senior Village) California 65, LLC Hesperion) Plaza Maria, LLC GP Housing) JFK Tower, LP 2698 California, LP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$ 59,455 $ - $ 154,329 $ 24,811 $ (311) $ 108,457 $ 118,424 $ 175,921 40,771 67,978 72,060 3,859 128,149 122,696 45,322 45,323 - - 1,913 21,473 - - 337,024 214,481
29,569 117,255 - 155,154 47,920
4,083 (1,263) 386 16,716 - 10,596
11,575 64,082 71,738 90,764 24,487 9,551
115,884 67,978 320,690 239,522 127,838 338,633 680,411 503,792 321,750 2,507,253 3,030,533
4,880,302 14,723,511 5,642,484 20,844,190 31,671,530 17,284,945 1,341,552 - - - 970,000 400,000
- 931 495,047 1,384,705 259,466
6,543,604 17,230,764 5,643,415 24,369,770 34,026,235 17,944,411 6,659,488 67,978 17,551,454 5,882,937 127,838 24,708,403 34,706,646 18,448,203 12,802,455 35,134 6,875,542 (4,279,244) 122,668 20,989,133 14,711,405 7,681,446 12,802,455 35,134 6,875,542 (4,279,244) 122,668 20,989,133 14,711,405 7,681,446 12,802,455 35,134 6,875,542 (4,279,244) 122,668 20,989,133 14,711,405 7,681,446 $ 19,461,943 $ 103,112 $ 24,426,996 $ 1,603,693 $ 250,506 $ 45,697,536 $ 49,418,051 $ 26,129,649 70 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
California 66, LP Mercy Housing New Dana Strand
(Colma Veterans 455 Fell, LP (Parcel California 67, LP Historic Live Oak Mercy Housing Mercy Housing La IV, LP (Camino Del St Mary's Tower, Village) O) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega, LLC Mar) LLC Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 781,227 $ 219,573 $ 157,518 $ 40,719 $
28,151 125,649 60,331 8,931
5,232 248,356 - -
8,375 105,963 20,386 12,665
52,001 107,237
874,986
27,878
806,778 266,113
4,278
32,304
66,593 32,304
7,303,126 5,862,894 1,335,380 84,914
28,146,995 58,122,598 15,878,271 2,791,081
562,016 934,075 308,821 18,132
(3,445,441) (5,535,413) (3,842,612) (1,294,600)
32,566,696 59,384,154 13,679,860 1,599,527
$ 1,879,612 $
84,926
221,697
90,250
94,826
345
84,438
2,371,311 84,783
2,072,976
28,571,399
660,811
(2,726,324)
28,578,862
1,693,902 880,234 405,856 59,671 595,938
(21) (100)
36,882 60,620 27,900 3,631,547
1,730,784
940,854 433,756
59,671 (21)
$ 35,172,466 $ 61,131,786 $ 14,379,729 $ 1,725,791 $
(3,864,903)
(100) 4,227,485 (3,864,903)
32,283 $ (100) $
35,177,658 $ (3,780,120)
71 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
California 66, LP Mercy Housing New Dana Strand
(Colma Veterans 455 Fell, LP (Parcel California 67, LP Historic Live Oak Mercy Housing Mercy Housing La IV, LP (Camino Del St Mary's Tower, Village) O) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega, LLC Mar) LLC Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
$ 86,425 $ 219,763 $ 61,971 $ 11,430 $ - $ - $ 79,907 $ - 241,936 153,741 17,379 157,405 45,547 16,054 88,376 65,040 33,969 19,473 12,544 21 - - 54,995 -
261,865 71,853 69,551 3,999 296,237
22,650 17,352 10,319 2,978 9,656
27,651 123,550 59,832 7,964 80,991
674,496 605,732 231,596 183,797 45,547 16,054 610,162 65,040 679,520 588,399 168,154
23,155,846 35,930,126 8,830,796 1,218,650
- 1,500,000 4,000,000 -
904,917 478,552
530,426
21,144,664
1,175,993
24,740,283 38,497,077 12,998,950 1,218,650 22,851,083
Total liabilities 25,414,779
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
39,102,809 13,230,546
9,757,687 22,028,977
9,757,687 22,028,977
9,757,687 22,028,977
1,402,447 45,547
16,054 23,461,245 65,040
1,149,183 323,344 (13,264) (16,154) 11,716,413 (3,845,160) 1,149,183 323,344 (13,264) (16,154) 11,716,413 (3,845,160) 1,149,183 323,344 (13,264) (16,154) 11,716,413 (3,845,160) $ 35,172,466 $ 61,131,786 $ 14,379,729 $ 1,725,791 $
32,283 $ (100) $
35,177,658 $ (3,780,120)
72 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Mercy Housing California 71, LP (St Francis of Assisi, California 69, LP 3001 24th Street California 59, LP California 48, LP Esperanza Mary's Tower) LLC (Francis of Assisi) LLC (Casa de la Mission) 623 Vernon, LLC (Lohse Apartments) Crossing II, LLC GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 769,887 $
42,525
19,020 -
417 21,993
64,009
$ 919,603 $
36,777
52,167
100,222
47,331
$ 318,203 $
14,648
129,955
170 124,493
8,741
71,029
$ 88,474 $
46,362
91,021
2,338
30,606
1,857
895,858 21,993 1,156,100 170 596,040 71,029 258,801 1,857 9,107,484
26,734,452
536,566
(5,300,121)
333,198
22,416,853
1,685,534
(5,363,304)
31,078,381 19,072,281
4,194,449
24,249,223
405,078
(493,080)
3,727,256
21,788,371
803,217
(3,310,417)
28,355,670 23,008,427
810,230 2,771,337 462,178
103,761
(29,455,279)
54,215
(69,634)
1,425, 089
116,039 64,778
46,949
913,991 (29,455,279) 2,825,552 (69,634) 116,039 1,425,089 526,956 46,949 $ 32,888,230 $ (29,433,286) $ 23,053,933 $ (69,464) $ 29,067,749 $ 1,496,118 $ 23,794,184 $ 48,806
73 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Mercy Housing California 71, LP (St Francis of Assisi, California 69, LP 3001 24th Street California 59, LP California 48, LP Esperanza Mary's Tower) LLC (Francis of Assisi) LLC (Casa de la Mission) 623 Vernon, LLC (Lohse Apartments) Crossing II, LLC GP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
$ 254,191 $ - $ 304,939 $ - $ 202,814 $ - $ 37,394 $ -
209,609 3,192 935,147 95,827 41,246 62,094
67,547 - 82,053 - 64,355 - 2,856 -
345,539 1,333,800 20,604,802 32,398
- - 15,000 -
6,939 12,085 1,520 4,883
41,939 37,366 14,148 44,800
716,155 209,609 1,770,243 3,192 21,837,786 95,827 163,577 62,094 Long-term liabilities
Due to affiliates -
Accrued interest 863,781
Accrued interest, affiliates - -
Notes payable, less current portion, net 20,103,603 24,268,408 (9,784) 6,818,041 Notes payable, less current portion, affiliates - - 5,000,000 2,164,800 Deferred revenue and other liabilities 73,194 482,348 - - Total long-term liabilities 20,176,797 24,750,756 4,990,216 9,846,622 Total liabilities 20,892,952 209,609 26,520,999
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
11,995,278
11,995,278
Total net assets 11,995,278
Total liabilities and net assets
(29,642,895) (3,467,066)
(29,642,895) (3,467,066)
(29,642,895) (3,467,066)
3,192 26,828,002 95,827 10,010,199 62,094
(72,656)
(72,656)
72,656)
2,239,747 1,400,291
2,239,747 1,400,291
2,239,747 1,400,291
13,783,985 (13,288)
13,783,985 (13,288)
$ 32,888,230 $ (29,433,286) $ 23,053,933 $ (69,464) $ 29,067,749 $ 1,496,118 $ 13,783,985 (13,288)
23,794,184 $ 48,806
74 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Candlestick Pointe
California 76, LP Mercy Sunnydale Parcel 11a, a California 20 North Mercy New Hope, Mercy Housing (Esperanza Transformation, LLC Q Housing Partners, Limited Partnership Cottonwood LLC LP (Woodland/180 California 74, LP Pico Robertson Crossing Phase II) GP LP Candlestick) (GP) West Beamer) (Britton Street) LLC GP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
$ 78,983 $
29,528
121,893
3,979
14,256
23,200
$ 1,613,497 $
33,843
144,086
27,086
9,567
44,207
4,575
387,500
248,639 23,200 1,872,286 392,075
1,713,183
9,258,022
181,882
(1,883,643)
Net property and equipment 9,269,444
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
1,644,910
37,049,990
798,647
(2,445,754)
2,178,828
37,047,793 2,178,828
168,230 826,769
(278)
17,582 107,588
Total other long-term assets 185,812
Total assets
(278) 934,357
4,142,950
$ 95,448 $ 829,053 $
48,611 72,241
369,641 164,474
34 12,588
36,163
42,180
549,897 1,120,536
2,883,622 2,786,651
19, 519, 961 33,866,419
559,640 446,889
(3,220,529) (5,935,548)
19,742,694 31,164,411
3,395,695 1,703,002
75,850 55,071
4,142,759 3,471,545
(246)
1,758,073 (246)
$ 9,703,895 $ 22,922 $ 39,854,436 $ 2,570,903 $ 4,142,759 $ 23,764,136 $ 34,043,020 $ (246) 75 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Candlestick Pointe
California 76, LP Mercy Sunnydale Parcel 11a, a California 20 North Mercy New Hope, Mercy Housing (Esperanza Transformation, LLC Q Housing Partners, Limited Partnership Cottonwood LLC LP (Woodland/180 California 74, LP Pico Robertson Crossing Phase II) GP LP Candlestick) (GP) West Beamer) (Britton Street) LLC GP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
$ 38,292 $ - $ 137,390 $ 6,138 $ - $ 106,264 $ 125,389 $ - 109,101 10,172 1,221 19,239 11,591 63,327 62,089 10,960 5,404 - 19,409 - - - 42,460 -
54,933 - 81,672 - 433,357 -
- - 3,408 - -
6,632 58,159 - 2,136 45,546
29,285 33,493 46,042 66,784
Total current liabilities 243,647 10,172 331,344 28,785 11,591 217,769 775,625 Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
604,279
6,478,553
50,000
968,382
241,892
19,114,166 2,325,672
533,989 1,359,268
231,054
5,595,312 24,385,573
4,925,259 5,005,485
10,960
Total long-term liabilities 7,132,832 20,082,548 2,567,564 11,285,614 30,750,326 Total liabilities 7,376,479
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
10,172 20,413,892 2,596,349 11,591 11,503,383 31,525,951 10,960 2,327,416 12,750 19,440,544 (25,446) 4,131,168 12,260,753 2,517,069 (11,206) 2,327,416 12,750 19,440,544 (25,446) 4,131,168 12,260,753 2,517,069 (11,206) Total net assets 2,327,416
Total liabilities and net assets
12,750 19,440,544 (25,446) 4,131,168 12,260,753 2,517,069 (11,206) $ 9,703,895 $ 22,922 $ 39,854,436 $ 2,570,903 $ 4,142,759 $ 23,764,136 $ 34,043,020 $ (246) 76 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
Mercy Housing California 78, LP Mercy Housing Mercy Housing California 73, LP Baldwin Rose LLC, (Mission Bay Block California 75, LP Placentia Veterans Placentia Veterans California 82, LP Pico Robertson) GP Baldwin Rose LP 6) Dorothy Day) Village, LLC GP Village, LP (Treasure Island) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 58,843 $
47,176
6,998
93,075
26,878
33,039
$ 86,691 $ 889,630 $
81,318 186,324
51,719 512,326
5,101 47,784
38,149
110,643
1,779,832 $
41,285
160,066
8,146
40,130
$ 373,889 $
80,833
23,116
800 74,176
48,188
102,433 450,000
232,970 33,039 262,978 1,746,707 2,029,459 800 654,447 498,188 926,421
25,159,556
538,796
(1,399,654)
25,225,119
5,133,769 4,967,385 2,158,784
25,959,312 108,143,564 31,160,772
420,564 1,037,835 520,443
(2,426,540) (3,141,705) (3,229,383)
29,087,105 111,007,079 30,610,616
256,900 417,826
82,670
339,570
3,641,991
17,354,391
585,338
3,243,494
(1,208,052) -
20,373,668 3,243,494
1,071,467 1,013,603
(86) (32)
109,701
106,000 90,372
3,109,112 42,200
(86) 527,527 106,000 1,161,839 (32) 4,122,715 42,200
$ 25,797,659 $ 32,953 $ 29,877,610 $ 112,859,786 $ 33,801,914 $ 768 $ 25,150,830 $ 3,783,882 77 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
Mercy Housing California 78, LP Mercy Housing Mercy Housing California 73, LP Baldwin Rose LLC, (Mission Bay Block California 75, LP Placentia Veterans Placentia Veterans California 82, LP (Pico Robertson) GP Baldwin Rose LP 6) Dorothy Day) Village, LLC GP Village, LP (Treasure Island) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
$ 62,224 $ - $ 148,015 $ 544,316 $ 193,901 $ - $ 70,943 $ 94,692 331,801 44,164 440,016 5,513,534 76,488 9,556 184,775 8,780 - - 12,356 82,706 85,978 - - -
- 85,785 59,896,090 644,025 112,462 -
11,710 103,594 - - - 541,023
14,246 15,967 30,346 2,963 1,827 -
46,676 80,982 185,680 40,783 80,333
466,657 44,164 886,715 66,252,672 1,044,138 9,556 450,340 644,495 119,025
439,370
911,271
4,389,914 9,304,381 39,370,117 20,087,313
3,800,000 - 4,511,304 -
1,223,530 313,092 1,179,940 1,448,536
Total long-term liabilities 9,532,469 10,056,843 45,972,632 21,535,849 Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
9,999,126 44,164 10,943,558 112,225,304 22,579,987
15,798,533 (11,211) 18,934,052 634,482 11,221,927
15,798,533 (11,211) 18,934,052 634,482 11,221,927
Total net assets 15,798,533
Total liabilities and net assets
120,408 125,415
5,672,938
3,535,955
3,028,102
9,329,301 3,153,517
9,556 9,779,641 3,798,012
(8,788)
(8,788)
15,371,189 (14,130)
15,371,189 (14,130)
(11,211) 18,934,052 634,482 11,221,927 (8,788) 15,371,189 (14,130) $ 25,797,659 $ 32,953 $ 29,877,610 $ 112,859,786 $ 33,801,914 $ 768 $ 25,150,830 $ 3,783,882 78 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
1064 Mission
1064 Mission LLC, Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
$ $ - $ $ 353,013 $
11,000
333 165,491
1,597,560 51,982
(4,060)
3,654
1,597,893 585,140
10,681,484
1,878,121
52,001,891
1,082,615
(243,309)
10,681,484 54,719,318
(6,626)
(4,060)
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
$ 240,094 $
73,112
167,029
89,661
15,332
$ 8,104
212,116
187,933
585,228 408,153
6,222,001
18,827,351
495,810
(441,475)
3,136,290
28,010,998
438,147
(189,950)
25,103,687 31,395,485
3,843,894 2,464,571 44,576
27,377
(6,626) 3,871,271
$ (4,060) $ 12,279,377 $ (6,626) $
(10)
101,404
1,557,756
135,067
(10) 2,565,975 1,557,756 179,643
59,175,729 $ (10) $
28,254,890 $ 1,557,756 $ 31,983,281
79 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
1064 Mission
1064 Mission LLC, Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
$
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
- $ 1,486,902 $ (311) $ 2,120,249 $ - $ 355,782 $ - $ 4,885,416 3,362 110,991 5,985 6,462,737 4,528 527,547 4,413 1,284,988 - - - 309,804 - 28,493 - 26,317
50,646,739 16,802,047 - 18,614,603
- - 25,010
2,253 4,847 457
12,327 74,626 32,633
3,362 1,597,893 5,674 59,554,109 4,528 17,793,342 4,413 24,869,424 (2,158,104)
Total long-term liabilities (2,158,104)
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
3,362 1,597,893
5,674 57,396,005
(7,422) 10,681,484 (12,300) 1,779,724
(7,422) 10,681,484 (12,300) 1,779,724
7,422) 10,681,484 (12,300) 1,779,724
$ (4,060) $ 12,279,377 $ (6,626) $
484,970
8,672,419
599,997
3,166,371
850,000
9,757,386 4,016,371
4,528 27,550,728
(4,538) 704,162
(4,538) 704,162
(4,538) 704,162
59,175,729 $ (10) $
4,413 28,885,795
1,553,343 3,097,486
1,553,343 3,097,486
1,553,343 3,097,486
28,254,890 $ 1,557,756 $ 31,983,281
80 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Mercy Housing Mercy Housing Sunnydale Block 6 Sunnydale Block 6 California 84, LP 1121 9th Street California 90, LP California 94 LLC California 94, LP California 83, LP Development CO Housing (Bennett House) LLC, GP (Capital Park) GP (Sherman Oaks) (Bermuda Gardens) LLC GP Partnership, LP Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
Total assets
$ 473,202 $
28,814
152,470
973
15,183
26,737
$ - $
139,423
800
100 $ 824,826 $
60,152
59,288 508,905
6,497
70,933
30,941
$ 686
587,937
79,609
697,379 140,223 65,885 1,495,757 668,232
518,053
16,219,290
541,577
(996,018)
2,145,039
7,911,772
340
22,981,930
16,282,902 33,039,081
2,700,000 1,888,972
23,608,987
26,021 871,819
7,367,647
(736,558)
10,093,668 25,633,220
729,115 9,500,556 1,500,000
41,180
98 (10,409)
(13,758)
14,704,283
111,961,657
1,192,265
(574,968)
127,283,237
107,000 10,653 92,657 134,216
770,295 98 9,607,556 (10,409) 10,653 1,592,657 (13,758) 134,216 $ 17,750,576 $
98 $
42,786,860 $ (10,409) $
10,170,206 $
28,721,634 $ (13,758) $ 128,085,685
81 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing Mercy Housing Mercy Housing Sunnydale Block 6 Sunnydale Block 6 California 84, LP 1121 9th Street California 90, LP California 94 LLC California 94, LP California 83, LP Development CO Housing (Bennett House) LLC, GP (Capital Park) GP (Sherman Oaks) (Bermuda Gardens) LLC GP Partnership, LP Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
$ 294,601 $ - $ 4,476,795 $ - $ 2,343,634 $ 293,054 $ - $ 6,288,303 34,773 3,680 599,386 2,004 138,412 4,337,626 1,234 1,871,242 32,464 - 46,610 - 11,987 23,150 - -
589,061 - 3,120,999 22,833,469 -
- 453 - 8,880
4,039 2 22,545 15,001
28,682 60,608 -
983,620 3,680 5,122,791 2,004 5,615,487 27,570,452 1,234 8,183,426 49,100
10,327,938
972,007
2,698,894
133,713
1,319,301
705 33,109,996 4,021,539 2,798,225 108,801,033
- 1,340,000 - 1,500,000 -
2,745 5,064,018
14,047,939 705 34,449,996 4,021,539 4,434,683 115,184,352 Total liabilities 15,031,559
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
4,385 39,572,787 2,004 9,637,026 32,005,135 1,234 123,367,778 2,719,017 (4,287) 3,214,073 (12,413) 533,180 (3,283,501) (14,992) 4,717,907 2,719,017 (4,287) 3,214,073 (12,413) 533,180 (3,283,501) (14,992) 4,717,907 Total net assets 2,719,017 (4,287) 3,214,073 (12,413) 533,180 (3,283,501) (14,992) 4,717,907 Total liabilities and net assets $ 17,750,576 $ 98 $ 42,786,860 $ (10,409) $ 10,170,206 $ 28,721,634 $ (13,758) $ 128,085,685 82 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 95 LLC Mercy Housing Mercy Housing Cailifornia 96, LP GP (Long Beach California 95, LP California 97, LP Mercy HPSY Block Hunters Point Block Middlefield Junction (Middlefield GP) (Long Beach) 600 7th Street GP (600 7th Street) 56 LLC 56, LP LLC GP Junction) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
$ $ - $ $ 406 $ $ 242,151 $
60,926 -
29,994
550,000
60,926 550,406
2,955,777
2,390,616
2,165,817
5,346,393 2,165,817
25,822
(1)
2,200
(5,893)
Total other long-term assets 29,994 25,822 (1) 2,200 (5,893) Total assets
$ 29,994 $ 5,433,141 $
(1) $ 2,718,423 $
195,000
$ 610,709
437,151 610,709
1,527,122
2,933,984
1,527,122 2,933,984
(3)
(5,893) $ 1,964,273 $
(3)
(3) $ 3,544,693
83 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 95 LLC Mercy Housing Mercy Housing Cailifornia 96, LP GP (Long Beach California 95, LP California 97, LP Mercy HPSY Block Hunters Point Block Middlefield Junction (Middlefield GP) (Long Beach) 600 7th Street GP (600 7th Street) 56 LLC 56, LP LLC GP Junction) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$
- $ 24,516 $
1,884 24,830
2,170
3,314,266
1,884 3,365,782
(100,162)
2,200,000
- $ 228,322 $ - $ 217,991 $ - $ 6,409
934 2,762 934 5,406 934 17,893
934 231,084
2,099,838 _
1,884 5,465,620 _
28,110 (32,479)
28,110 (32,479)
28,110 (32,479)
$ 29,994 $ 5,433,141 $
54,642
62,374 - 729,585
934 285,771
23,926
934 753,887
2,443,589 1,664,564 2,824,582
2,498,231 1,688,490 2,824,582
934 2,729,315
934 1,974,261
(935) (10,892) (6,827) (9,988)
(935) (10,892) (6,827) (9,988)
(935) (10,892) (6,827) (9,988)
(1) $ 2,718,423 $
934 3,578,469
(937) (33,776)
(937) (33,776)
(5,893) $ 1,964,273 $
(937) (33,776)
(3) $ 3,544,693
84 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing
Mercy Housing California 99, LP Mercy Housing California 100, LP 7789 La Mancha Mercy Housing California 103, LP 231 Grant Ave LLC California 99 LLC (North Auburn) California 100 GP (Whittier) Way LLC California 103 GP (Laguna Honda) (Palo Alto) Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
$ 1,307,295 $
$ 125,409 $ 341,712 $
5,000
1,046, 222
100,000 203,310
9,914
Total current assets 1,417,209
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
2,449,527
30,614,684
350,445
80,494
(50,458)
120,246
125,409 1,716,490
2,021,934 2,816,652
14,655,848
335,941
1,317,949 195,451
(433,299)
Net property and equipment 33,444,692 3,339,883 17,570,593 Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
89 118,387
50,000
5 (1)
153,807
$ 48,828 $ 608,640
100,000
148,828 608,640
386,096
1,060,064
386,096 1,060,064
89 118,387 5 153,807 50,000 (1)
Total assets $ 89 $ 34,980,288 $ 5 $ 3,619,099 $ 19,337,083 $ 534,924 $ 1,668,704
85 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing Mercy Housing
Mercy Housing California 99, LP Mercy Housing California 100, LP 7789 La Mancha Mercy Housing California 103, LP 231 Grant Ave LLC California 99 LLC (North Auburn) California 100 GP (Whittier) Way LLC California 103 GP (Laguna Honda) (Palo Alto) Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
Total current liabilities
Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
Total long-term liabilities
Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
Total liabilities and net assets
$
- $ 6,488,132 $ - $ 139,850 $ 537,992 $
3,584 1,226,073 934 15,768 10,078
- 43,593 - -
24,521,916
1,312,421
3,474
19,852
3,406
3,584 32,279,714 934 1,468,039 574,802
(337,313)
2,098,792 1,760,741
(337,313) 2,098,792 1,760,741
3,584 31,942,401 934 3,566,831 2,335,543
(3,495) 3,037,887 (929) 52,268 17,001,540
(3,495) 3,037,887 (929) 52,268 17,001,540
(3,495) 3,037,887 (929) 52,268 17,001,540
$ 89 $ 34,980,288 $ 5 $ 3,619,099 $
(1)
(1)
$ 68,634 $ 352,852
869
38,646 260,792
108,149 613,644
5,661
427,293
432,954
541,103
(6,179)
(6,179)
19,337,083 $ (1) $
(6,179)
500,000
500,000
1,113,644
555,060
555,060
555,060
534,924 $ 1,668,704
86 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
Mercy Kimball Mercy Morgan Richmond Richmond California 89 LLC Transbay 2 Family Development GP Development GP Hacienda GP Hacienda MHCA 89 GP (6th & San Julian) GP Transbay 2 Family Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
$ $
1,473,469
1,854,049
1,473,469 1,854,049
$ $
520,641
$ - $
1,245,080
6,795,336
$ 110
5,000
165,000
520,641 8,040,416 170,110
540,475
3,529,451
183,553
26,937,355
31,190,834
673
75 100
42,972
75 43,645
6,452,430
12,988,586
136,939
19,441,016 136,939
26,121
100 26,121
Total assets $ 1,473,469 $ 1,854,049 $ 75 $ 31,755,120 $ 100 $ 27,507,553 $ - $ 307,049 87 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing
Mercy Kimball Mercy Morgan Richmond Richmond California 89 LLC Transbay 2 Family Development GP Development GP Hacienda GP Hacienda MHCA 89 GP (6th & San Julian) GP Transbay 2 Family Liabilities
Current liabilities
Accounts payable and accrued expenses
Due to affiliates
Accrued interest
Accrued interest, affiliates
Current portion of notes payable
Current portion of notes payable, affiliates
Deferred revenue and other liabilities
Tenant security deposits
$
$ $ - $ 9,241,113 $ - $ 2,512,650 $
75 456,813 100 1,829,342
10,900 - -
4,435 1,424,819
$
8,304
Total current liabilities 75 9,713,261 100 5,766,811 8,304 Long-term liabilities
Due to affiliates
Accrued interest
Accrued interest, affiliates
Notes payable, less current portion, net
Notes payable, less current portion, affiliates
Deferred revenue and other liabilities
48,361
142,917
10,750,483
7,000,000
897,519
28,126
19,400,597
133,617
1,345
298,270
Total long-term liabilities 18,839,280 19,562,340 299,615 Total liabilities
Net assets
Net assets without donor restrictions, controlling
Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions
Net assets with donor restrictions
Total net assets
1,473,469 1,854,049
1,473,469 1,854,049
1,473,469 1,854,049
75 28,552,541
100 25,329,151 307,919
3,202,579 2,178,402 (870)
3,202,579 2,178,402 (870)
3,202,579
2,178,402 - (870)
Total liabilities and net assets $ 1,473,469 $ 1,854,049 $ 75 $ 31,755,120 $ 100 $ 27,507,553 $ $ 307,049 88 Mercy Housing Calwest
Consolidating Statement of Financial Position
December 31, 2021
Mercy Housing Mercy Housing
California 105 LLC California 105 LLC Mercy Kelsey Civic Kelsey Civic Center Sunnydale Block 7 Consolidated Mercy GP (4995 Stockton) Center LLC L.P. LLC GP Eliminations Housing Calwest Assets
Current assets
Cash and cash equivalents
Cash, tenant security deposits
Cash, restricted
Investments
Investments, restricted
Accounts receivable, net
Due from affiliate, net
Pledges receivable, net
Grants receivable
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates Prepaid expenses and other assets
Inventory
Assets held for sale
Total current assets
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
Other long-term assets
Restricted property reserves
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net
Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net
Total other long-term assets
$ 302,313 $
100,000
290,490
402,313 290,490
$ $
$ 27,567,755
2,921,867
12,299,672
(4,230) 4,973,644
(2,133,933) 976,524
11,116,288
639,440
(2,138,163) 60,495,190
4,507,999 700,824
471,998
459,727
4,979,997 459,727 700,824
61,685,706
(50,000)
(17,121,166)
178,793,462
1,571,409,781
36,043,327
99,508,247
(244,517,759)
1,641,237,058
81,702,373
(399,215)
1,397,284
140,743 22,367,557
140,743
44, 514, 540 105,067,999
Total assets $ $ 5,523,053 $ $ 750,217 $ $ 43,077,201 $ 1,806,800,247

Placentia City CouncilJune 6, 2023

Placentia City Council
June 6, 2023