1.K.3 MERCY HOUSING RESPONSE — Placentia City Council, June 6, 2023 (part 1 of 2)

Baker Street
Affordable Housing Development Opportunity
Request for Qualifications/Proposals
City of Placentia
March 20, 2023
Mercy Housing California
Principal Contact: Ed Holder
Vice President, Real Estate
Mercy Housing California
1500 South Grand Avenue, Suite 100
Los Angeles, CA 90015
213-743-5820 1 [email protected]
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HOUSING
March 20, 2023
Jeanette Ortega
City of Placentia
401 E. Chapman Avenue
Placentia, California
RE: RFP for Affordable Housing Development Opportunity
Dear Jeannette:

Mercy Housing California is excited to present our proposal for the Affordable Housing Development Opportunity on Baker Street. MHC is proposing an integrated community that will offer needed affordable housing for families and individuals and families exiting homelessness. The community proposed maximizes the units on the site and creates a vital step in the housing pathway in Placentia.

Our vision for the site reflects our deep experience as one of the state's largest developers and owners of permanent supportive housing. The financing and implementation strategy are based on our knowledge and experience throughout the state financing a wide range of complex projects.

Our proposal includes the following features:
• 68 apartments, with a mix of 1, 2, and 3 bedrooms at incomes ranging from 30% to 60% of AMI; 20 of the units would be set-aside for formerly homeless households; • A Phase II plan for 40 units that would allow the site to operate seamlessly as one community; • A detailed financing plan that offers multiple pathways to success and which builds on MHC's policy insights into both current and anticipated funding programs; • A highly experienced property management firm in Mercy Housing Management Group, who will be a key partner in supporting the operations and long term stability of the residents; • A beautifully designed, Spanish colonial aesthetic that will reflect the city's, and MHC's commitment to exception architecture and support the city's vision for its Old Town Placentia Revitalization Plan.

As the largest non-profit owner of affordable housing in the United States, Mercy Housing brings together real estate development, resident services and property management under a single, mission - aligned organization. This integration allows our teams to work closely together to create successful developments that are designed to optimally serve the needs of our residents and the community. We will bring our experience in navigating and successfully financing similar projects with support from State and local agencies. As demonstrated through our deep engagement on Placentia Veterans Village, MHC believes in strong community outreach and connection and will identify and work with community partners to strengthen and refine our design and services concept.

Our team will include TCA Architects, one of the State's most accomplished and recognized affordable housing and multifamily architects. TCA excels at translating community vision into the built environment and is one of MHC's most trusted design collaborators. TCA was the architect on Placentia Veterans Village as well as many of our other family and supportive housing projects in Southern California, including Baldwin Rose Apartments and the El Monte Veterans Village.

Mercy Housing California
1500 S. Grand Avenue, Suite 100, Los Angeles, California 90015 0 1 213-743-5820 f 1 213-743-5828 TTY 1 800-877-8973 or 711 mercyhousing.org
Mercy Housing is sponsored by communities of Catholic Sisters

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Our team is confirming that we agree to adhere to the minimum income and affordability standards in this RFQ/P. The primary contact will be Ed Holder, who has legal authority to bind for MHC. His contact information is below.

Ed Holder
Vice President, Real Estate Development
Mercy Housing California
213-743-5821
[email protected]
Our entire team is excited about this opportunity to extend and deepen our relationship with the Placentia community and to build on our collective success at Placentia Veterans Village. We are motivated by the tremendous potential of the Baker Street site and by the City's vision for its development. We hope to have the opportunity to work with the City of Placentia again and create a new housing community that will reflect the City's ongoing commitment to families and residents exiting homelessness. Please do not hesitate to contact us if you have any questions about our proposal and we look forward to speaking with you soon.

Sincerely,
Ed Holder
Vice President, Real Estate Development
Erika Villablanca
Director, Real Estate Development

City of Placentia -Affordable Housing Development Opportunity Table of Contents Baker Street
T-,1 „. (,..v'
D Development Entity
MHC Resumes
TCA Resumes
E Conceptual Development Program
Conceptual Development Plan
F Financing Strategy
Pro Formas
G Financial Capability
H Comparable Development/ Property Management Experience MHC Project Profiles
References
1 Implementation Timeframe
Detailed Schedule
J Potential Conflicts of Interest
Appendices:

TCA Experience
Financing Source Data
Sample Supportive Services Plan
Separate Cover:
2021 MHC Audited Financial Statements
2020 MHC Audited Financial Statements
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19 27
30 Section D: Development Entity

City of Placentia -Affordable Housing Development Opportunity Section D: Development Entity Baker Street
Section D: Development Entity
Introduction
Baker Street (future name to be determined in collaboration with the city) will be developed by Mercy Housing California (MHC). MHC will be the entity that enters into the DDA with the City of Placentia.

Founded by the Sisters of Mercy in 1981, Mercy Housing, Inc. ("MHI") is a national nonprofit affordable housing development, management, and resident services organization headquartered in Denver, Colorado. The Mission of Mercy Housing, Inc. and all its subsidiaries, including Mercy Housing California, is to create stable, vibrant and healthy communities by developing, financing and operating affordable, program -enriched housing for families, seniors and people with special needs who lack the economic resources to access quality, safe housing opportunities. MHI is recognized as a national leader in maintaining and increasing the country's affordable housing stock. MHI builds and acquires affordable housing through five Regional Development Corporations based in California, Georgia, Illinois, Denver and Washington. MHI owns and provides property management (through Mercy Housing Management Group-MHMG) to more than 23,000 units of affordable housing and currently serves more than 50,000 people on any given day.

Mercy Housing California ("MHC") was incorporated in 1988 as the California affiliate of MHI. The largest of the five Regional Development Corporations, MHC has grown
substantially, both through its own affordable housing
development and through mergers with other nonprofit
housing groups seeking affiliation with the Mercy Housing system, including: the housing development program of
Catholic Charities of the Archdiocese of San Francisco
(1993), the Santa Cruz Community Housing Corporation
(1995), the Catholic Real Estate Development Organization, sponsored by the Catholic Diocese of Oakland (1997) and the Rural California Housing Corporation ("RCHC")(2000).

Baldwin Rose Apartments
MHC is one of the largest affordable housing developers in the State of California in terms of staff, capacity, annual budget, and units constructed. MHC is also a leader in an integrated, mission -based approach that couple the delivery of customized resident and community service enrichments with quality development, management, and maintenance to create healthy communities. MHC has completed 1,674 affordable units in the past three years and 11,082 affordable units over our organization's history.

MHC first opened a Southern California office in 1999 and followed six years later by moving its office to Los Angeles. Our Los Angeles office has grown significantly since those early years and now represents all areas of operations within Mercy: Development, Property Management, Asset Management, Resident Services, Philanthropy and Compliance. We have established deep relationships with many organizations who are doing important work to develop and fund affordable housing. Our local staff have been leaders on city housing initiatives and participated in or held leadership positions on local housing -related boards, such as Southern California Association of Non Profit Housing, the Kennedy Commission and the Long Beach Affordable Housing Developers Roundtable. MHC has developed 27 communities with 1,817 units in Southern California. "mercyHous I NG
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City of Placentia -Affordable Housing Development Opportunity Section D: Development Entity Baker Street
Orange County and Placentia Experience
MHC has been present in Orange County for over
twenty years, after opening our Southern California
office in Orange in 1999. We have four existing
communities in Orange County with nearly 250 units
and an additional community under construction. This
includes our recently completed Placentia Veterans
Village, a 50 -unit community serving formerly homeless veterans. This property was developed in close
partnership with the City of Placentia and Orange
County and utilized surplus County flood district
property and an acquired private parcel to create a
beautifully landscaped, craftsman designed setting. In
Placentia Veterans Village Orange, we are currently in construction on Villa St.

Joseph. Villa St. Joseph is an adaptive reuse of the Sisters of St. Joseph of Orange Motherhouse, with 50 units of senior housing. Eighteen of those units are set-aside for formerly homeless seniors, which are supported by Mental Health Service Act (MHSA) funds. These funds offer capital support as case management for the MHSA units. We have worked closely with the Orange County Housing Authority as well as Orange County Health Services to structure this project and look forward to serving these seniors in Orange.

MHC maintains very strong relationships with Orange County, on both the capital funding and services side.

These resources, and relationships, will be important to the financial and operating strategy of the project further described below.

Family and Special Needs Housing Development Experience MHC's developments generally can be categorized as serving Family, Senior, and/or Special Needs residents, the latter often meaning formerly homeless and/or disabled individuals or families. More and more, developments are mixed income and mixed population, meaning that residents with a wide variety of income are often incorporated, and special needs residents (most typically those who have experienced homelessness) are often integrated into more traditional family and senior developments to create holistic communities that serve the needs of all residents better than each could be served alone. Incorporating a special needs component within a larger multifamily development not only accomplishes MHC's mission, but it widens the array of funding sources available for a given development, and generally increases competitiveness for funding sources.

Two thirds of MHC's properties serve either family residents, special needs residents, or both and MHC has cultivated service relationships with some of the State's most highly regarded service providers. These service providers and partners provide innovative programs and support for our formerly homeless residents to support their needs in permanent housing. Through our partnerships with experienced supportive service partners and our on-site resident services we ensure that we meet the needs of all of our residents. "mercyHous I NG
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City of Placentia -Affordable Housing Development Opportunity Section D: Development Entity Baker Street
Land Assemblage and Phasing
Mercy Housing is an experienced developer of large, phased projects and land assemblages. In many cases these projects have been an opportunity to expand a city -owned site with adjacent privately owned land. This allows the projects to maximize the opportunity of a city -owned site and provide as many housing units as possible.

Our team has worked with a wide range of property owners, including individuals, family trusts, religious institutions, and other organizations. With support from the City of Placentia and the Orange County Flood Control District, we were able to assemble several parcels to construct Placentia Veterans Village. Mercy Housing purchased a parcel from a private owner with an option that allowed us to put together our financing and procure entitlements. The final land assemblage includes MHC ownership of the private parcel and long- term ground lease of the County owned parcels. At Heritage Gardens, in Long Beach, we were able to purchase an auto repair shop adjacent to a City of Long Beach -owned site. That project is now under construction, delivering 66 -units of senior housing, with half of those set-aside for seniors experiencing homelessness. At Caroline Severance Manor in Los Angeles, we purchased five parcels from three independent property owners to develop a family building with childcare. This project also includes parking for the First Unitarian Church, next door, which was one of the original property owners. Mercy Housing works closely with experienced land brokers, who understand affordable housing and are successful at putting together off -market deals for us. Our approach to sellers is often personal and includes explanation and assurance that Mercy Housing is a capable developer and mission -based owner of affordable housing.

Many of our communities have been developed in phases. Along with our partner Abode Communities, we managed the master planning and development of three of the four phases of the New Dana Strand public housing redevelopment. In San Francisco, we are in the midst of the multi -phase redevelopment of the Sunnydale public housing community. This has been a decade-long effort, with master planning, infrastructure, and a new community center. In Montebello, we are in early stages of developing a 13 -acre mixed use property.

In Esparto, a rural community west of Sacramento, we divided our Esperanza Family housing project into two phases in order to maximize leverage and funding competitiveness and in Paradise, CA we are currently developing adjacent family/senior properties in two phases to help rebuild this fire -ravaged community. We have 31 communities that were either developed from the onset as phased projects together, or developed nearby or adjacent to existing communities, which allows Mercy Housing to operate the projects in a unified way. We have found that by phasing projects, we are able to have more flexible and successful financing pathways as well as more efficient operations.

Importantly for Baker Street, MHC recently launched a $47 million acquisition fund, the California Land Acquisition Fund (Land Fund) which allows us to move quickly to secure and close on high priority sites. The Land Fund is discussed in more detail in Section G: Financial Capability.

Principal Members
Our successful affordable housing communities are the result of strong affordable housing expertise, commitment and perseverance to combine unique financing sources to create innovative housing models as well as thoughtful community engagement strategies. Our five most senior staff have over 80 combined years of affordable housing development experience. The residents at MHC's properties are supported by a highly qualified resident service department and the Mercy Housing Management Group (MHMG). Our resident service department has been serving families and individuals for over 35 years. MHMG was established in 1983 and manages 336 properties serving over 23,000 units. Mercy Housing California's long history of successfully "mercyHous I NG
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City of Placentia -Affordable Housing Development Opportunity Section D: Development Entity Baker Street
developing and managing affordable housing and providing on-site resident services, coupled with our significant community engagement and development experience, makes MHC uniquely qualified to complete a high-quality, sustainably managed affordable housing development in partnership with the City of Placentia and the surrounding community.

The following is a breakdown of the California staff solely devoted to real estate development:
1 Vice President of Real Estate
11 Project Managers
13 Assistant/Associate Project Managers
10 Regional and Associate Directors of Development
1 Vice President of Community Planning
1 Senior Real Estate Analyst
1 Commercial Developer (commercial development expertise on mixed-use projects) MHC devotes significant time from senior management to troubleshoot and provide support to Housing Developers. Both the Director of Development and the Vice President of Real Estate work closely with Housing Developers during all stages of development.

Core Project Team
Ed Holder, Vice President of Real Estate, brings significant development, finance, and community planning experience to the MHC team. Based in Los Angeles, Ed oversees all of Mercy Housing California's real estate development activities statewide, which includes a development pipeline of over 3,000 units and a team of 41 development staff. Ed recently completed a six-year term on the Board of Directors of the Southern California Association of Nonprofit Housing and has served as chair of the Finance and Membership Committees. Ed has been closely involved in Mercy's supportive and mixed population communities in EI Monte, Norwalk, Long Beach and Placentia and works closely with our land fund principal, Melissa Garcia, to strategize around acquisition opportunities. Prior to joining MHC, Ed worked as a Director and Vice President of Development for The Olson Company, one of California's premier developers of infill ownership housing.

Erika Villablanca, Director of Real Estate Development, joined MHC in 2013 and brings 12 years of affordable housing and community development experience to the team. Erika has successfully secured financing and managed the entitlement, community outreach, design, and construction processes for numerous affordable housing developments in Southern California. Erika has worked closely with cities throughout Southern California to develop housing for veterans. She oversaw the development of Caroline Severance Manor, a "mixed population" development with 37 units of family housing and 48 units of permanent supportive housing in the City of LA, and Pico Robertson Senior Community in Los Angeles, 48 units of affordable senior apartments including 12 units for formerly homeless veterans. Erika is based out of MHC's LA office and oversees real estate development activities in the Southern California region. i
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Maury Ruano, Associate Director of Real Estate Development, first worked at Mercy from 2000 to 2005 as a Project Developer. He recently rejoined the organization as an Associate Director of Real Estate Development.

Maury brings 20 years of affordable housing and community development experience to the team. Maury has successfully secured financing and managed the entitlement, community outreach, design, and construction processes for numerous affordable housing developments in San Diego, Orange, Los Angeles, Riverside, San Bernardino, Ventura, and Santa Barbara Counties. Maury oversaw the construction Villa de Vida Poway, a two- story 54 -unit affordable housing development serving adults with developmental disabilities. He is also currently leading other developments for Special Needs populations in Orange and Los Angeles counties, including Villa St.

Joseph, a 50 -unit adaptive reuse project that will serve seniors and formerly homeless seniors. Maury is based out of MHC's LA office and oversees real estate development activities mainly in San Diego and Orange counties.

Daniel Rojas, Project Manager, joined Mercy in 2018 as an Assistant Project Manager and was promoted to Project Manager in 2022. Daniel will be the responsible project manager for this site, bringing his extensive experience in supportive housing development. Daniel has worked on many of our supportive housing projects in Southern California, including as the project manager on Burbank Senior Housing and Whittier Boulevard in Los Angeles. Daniel was the assistant project manager on Baldwin Rose Family Apartments, ensuring a successful permanent conversion on this family and supportive housing project.

Christine Anderson, Senior Real Estate Analyst, joined Mercy Housing in 2018 and supports business development statewide. Christine manages RFP and RFQ responses for Mercy Housing California, including considerations for proposed population and early design decisions. Christine evaluates opportunities for all Mercy Housing California offices and is particularly experienced in evaluating financing regulations. She has also supported the California Land Acquisition Fund work, evaluating on- and off -market opportunities, running early due diligence and design work, and evaluating financial feasibility.

Project Support Team
Melissa Garcia, Land Fund Director, joined Mercy Housing in 2021 as its Land Fund Director, where she works throughout California to acquire sites intended for future affordable housing development. Prior to Mercy she worked at the Low Income Investment Fund to originate and structure innovative capital solutions for projects including education, housing, and community facilities, as well as oversaw the management of LIIF's existing structured funds. Melissa has led consortia of CDFIs to design new affordable housing funds, raised over $100 million in capital from outside investors, and worked closely with government partners. She also served as LIIF's Director, Central Region and Washington DC and worked to establish LIIF's first lending office in that region.

Prior to LIIF, Melissa served as a Vice President at Citi Community Capital, managing a $500 million national multifamily housing portfolio and executing over $200 million in housing and charter school loans. Before Citi, she worked as a consultant in San Francisco, specializing in affordable housing and redevelopment.

Jacquie Hoffman, Regional Vice President of Property Operations, Mercy Housing Management, brings over fifteen years' experience with Mercy Housing, in both Property Operations and Resident Services. Jacquie oversees a major segment of the Mercy California Portfolio, including our Southern California portfolio, and has primary accountability for the preparation and performance of the regional MHM and property budgets.

Responsible for all phases of property management oversight from development through operations including tasks associated with the acquisition, new construction and/or rehabilitation of quality affordable housing units and associated commercial property throughout California. Jacquie is a leader in management of supportive and mixed -population communities statewide. Jacquie has overseen the lease -up and management of our family properties around the state, as well as the management of all of our PSH properties. i
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Jonathan Wolfe, Regional Director of Residential Services, joined MHC in 2015 and brings over 10 years of experience working with services for homeless populations. Jonathan oversees programs, management and services at each property in Southern California in accordance with the mission and core values of Mercy Housing and the national program model for Resident Services. Jonathan supervises the Resident Services Coordinators and manages services provided by 3rd party agencies. Jonathan has been instrumental in creating and managing Mercy's partnerships with the VA and supportive services at Placentia Veterans Village and our two communities in EI Monte.

Amy Bayley, Vice President of Community Planning, has been leading MHC's unique Community Planning division since 1995. From the inception of a development, Amy works with the Housing Developer to determine a community planning process for that specific community. Amy has led or participated in all of our recent Los Angeles community outreach efforts, including Villa de Vida Poway, Baldwin and Rose, El Monte Veterans Village, New Dana Strand IV, Long Beach Senior Community, and Levine Senior Community. Amy Bayley is a Sister of Mercy of Burlingame and a past principal of Mercy High School in Burlingame. Amy is based out of MHC's San Francisco office but spends much of her time in Southern California with our Los Angeles based team.

Doug Shoemaker, President, is responsible for leading MHC's operations in California including the oversight of affordable housing development, fund raising and resident services. He brings more than 20 years experience in affordable housing and community development to MHC. Prior to joining Mercy Housing, Doug served as the Director of the San Francisco Mayor's Office of Housing and Deputy Director of the Non -Profit Housing Association of Northern California, a 500 -member affordable housing trade association.

Thomas Cox Architects
Thomas Cox Architects' (TCA) award-winning architectural designs are backed up by industry-leading technological expertise. TCA provides uncompromising service, and help clients deliver exceptional projects that respect our communities and the environment. TCA's expertise includes master planning, design, documentation, and construction administration for a variety of multifamily, mixed-use, and related building typologies. As architects, TCA takes pride in helping shape quality living environments for everyone.

TCA's work is highly collaborative, and an internal studio structure with in-house design reviews and a rigorous quality management program ensures that every project receives the same commitment to excellence. TCA recognizes that success relies upon the positive influence of external team members, and excels in collaboration with cities, consultants, engineers, and builders who bring reality to the places we envision. TCA has three California-based studios currently designing projects across the western United States and Asia. TCA was the architect for El Monte Veterans Village, which as noted was a Golden Nugget Design Award finalist and is the architect for Placentia Veterans Village, Baldwin Rose Apartments, Norwalk Veterans Family Housing, among other MHC projects. In Orange County, TCA has designed over 600 units of affordable housing, including the 256 -unit Anton Portola in Irvine.
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City of Placentia -Affordable Housing Development Opportunity Section D: Development Entity Baker Street
Eric Olsen, Vice President, is a Partner at TCA and the Director of the Los Angeles office. He has 22 years of experience in mixed-use, high-density and affordable housing. In his role as Director of the Los Angeles office, Eric leads project teams and provides overall office management. He also heads the Design Department for all of TCA's offices. Eric's studio has recently completed El Monte Veteran's Village; a 42 unit affordable housing project located in the city of El Monte California. The sustainable project has provided housing for the city's homeless veteran population. He also recently completed Boardwalk by Windsor; a 487 unit mixed-use that fulfills the City of Huntington Beach's goal to connect several disparate parts of the community surrounding its developing Town Center in a new walkable neighborhood. His designs have been recognized by the American Institute of Architects (AIA), the Congress of the New Urban (CNU), The National Association of Home Builders (NAHB) and the Pacific Coast Builder's Conference (PCBC).

Armine Movsesyan, Principal and Studio Director, has over 12 years of experience in single family, multi -family, urban infill & mixed-use housing projects. Armine joined TCA in 2014, and her design talents elevated her to a Studio Director position, where she currently leads her team through the process of Entitlements to CA Phase.

Through the process, she works closely with the designer and technical staff in-house, as well as coordinates with clients and consultants. Armine has worked with the MHC team on our veterans work in Southern California at Baldwin Rose Apartments, Placentia Veterans Village, and Norwalk Veterans Housing.

Sandy Chung, Principal and Project Design Director, has over 12 years of design experience in high density, multifamily housing. Sandy has been the lead project designer on several multifamily residential and mixed-use projects, guiding project designs from conceptual phase through schematic design, with direct interaction with clients and consultants. Her experience in planning and entitlement procedures makes her a valuable asset to TCA. Sandy worked with MHC at Baldwin and Rose Apartments.

Other members of Mercy's project team, including service provider and general contractor, will be selected further along the development timeline. The service provider selection, in particular and as further described below, requires close collaboration and alignment with the city and county. i
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MHC Resumes

EDWARD HOLDER
Vice President, Real Estate Development

PROFESSIONAL EXPERIENCE
AI mercy

HOUSING
Mercy Housing California
Vice President, Real Estate Development, 2011 -Present
Vice President, Business Development, 2007-2011
Joined Mercy Housing California (MHC) in 2007 as Vice President of Business Development. In this role, responsible for the identification of new development opportunities and strategic partnerships in MHC's Southern California, Bay Area, and Sacramento markets. Recently assumed responsibility for Mercy Housing California's real estate department, which includes a development portfolio of over 4700 units.

The Olson Company
Vice President of Development, 2005-2007
Led Olson's East Los Angeles County regional team; Manage development pipeline of 1100 units with a build out value of $500 million; Develop and implement strategies for land acquisition, land disposition, entitlement, environmental cleanup, and design. Build out pipeline has grown by $390 million in last 15 months; Achieved significant expansion and recognition within the 710/605 corridor cities; Emphasis on community outreach, engagement, and involvement through local volunteer programs and events.

Currently managing four major developments in the cities of Compton (136 townhomes), Santa Fe Springs (346 townhomes), Whittier (280 townhomes), and El Monte (237 townhomes). Region is exceptionally focused on creating strong city relationships, with city partnership projects in the cities of Compton, Irwindale, Whittier, Santa Fe Springs, Montebello, Cerritos, and El Monte.

Director of Development, 2002-2005
In three years, entitled over 740 homes with buildout value of $350 million in the cities of Carson, Simi Valley, Santa Fe Springs, Irwindale, Compton, and Fullerton. Led entitlements for Fullerton's SoCo Walk, a 120 unit Transit Oriented Development which has received considerable press coverage; Led team that created innovative design and functionality within community. Negotiated Disposition and Development Agreements in the cities of Compton and Irwindale. Led disposition of $6 million property in Simi Valley, CA. Created Olson's initial pro forma and project management scheduling templates.

J.P. Morgan Securities, Inc.

Associate, Public Finance Investment Banking, 1998- 2000 Raised capital, negotiated with rating agencies and bond insurers, developed financing recommendations, prepared analysis, reviewed legal documents, and formulated investment strategies for public and nonprofit sector clients; Clients included the State of California, Tri -County Metropolitan Transportation Dt. (OR), City of Mission Viejo RDA, and COPIA (Napa Valley).

Analyst, Public Finance Investment Banking 1995-1998
Provided analytical and documentation support to senior bankers; given considerable project management responsibility, including the primary leadership role on a $30 million financing for the California DWR.

EDUCATIONAL BACKGROUND
Stanford University Graduate School of Business
Masters, Business Administration, 2002
Occidental College
Bachelor of Arts, Economics, 1995

ERIKA VILLABLANCA
Associate Director, Real Estate Development

PROFESSIONAL EXPERIENCE
AI mercy

HOUSING
Mercy Housing California, Los Angeles, California
Associate Director, Real Estate Development, April 2017 to Present Senior Project Developer, Real Estate Development, April 2013 to April 2017 Direct the multi -family housing work in the Southern California Regional Office of a national leader in the acquisition and production of quality affordable multi -family housing developments. Oversee the preparation and submission of applications to public and private financing sources. Perform project feasibility analyses and develop financial proforma for internal use, lenders and investors. Negotiate purchase options and consultant contracts. Perform site analysis and prepare proformas to determine feasibility of new development opportunities. Responsible for the selection and management of retained development team professionals from financing, legal, design, construction and management disciplines. Manage, assist and provide direction to development professionals/ staff in the regional office.

East Los Angeles Community Corporation, Los Angeles, California Senior Project Developer, January 2010 to April 2013
Responsible for all aspects of affordable housing development, including financial feasibility analysis, entitlements, funding applications, loan closings, construction oversight, transition to lease -up, and loan conversions.

Nancy Lewis Associates, Inc., Los Angeles, California
Assistant Project Manager, October 2005 to January 2010 Oversaw all aspects of affordable multi -family housing development using private and public financing including site searches, funding applications, construction draws, and compliance monitoring. Prepared loan and grant applications for federal, state and local programs such as HUD 811, HUD 202, MHP, City of Industry, MHSA, LAHD Permanent Supportive Housing, AHP, SHP, EHAPCD, CDBG, Low -Income Housing Tax Credits, and tax-exempt bonds.

EDUCATION
University of California, Berkeley
Bachelor of Arts, Latin America Studies
Bachelor of Arts, Spanish and Portuguese
University of California, Los Angeles
Masters of Arts, Urban Planning
Masters of Arts, Latin American Studies

Maury E. Ruano, MRED
Associate Director, Real Estate Development

PROFESSIONAL EXPERIENCE
AI mercy

HOUSING
Mercy Housing California, Los Angeles, California
Associate Director, Real Estate Development, October 2020 to Present Housing Developer, Real Estate Development, September 2000 to April 2005 Oversee the multi -family developments in San Diego and Orange Counties of Mercy Housing, a national leader in the acquisition and production of quality affordable multi -family housing developments. Supervise the preparation and submission of applications to public and private financing sources. Perform project feasibility analyses and develop financial proforma for internal use, lenders, and investors. Review sites for potential development of new construction for affordable multi -family and senior housing. Analyze available financing options and prepare funding applications for affordable housing development including local tax increment, HOME, CDBG, federal low-income housing tax credits, Project Based Sec. 8, and HUD 202. Perform all tasks necessary to obtain all entitlement approvals for inclusionary affordable multi -family housing developments. Provide on-going coordination among members of the project development team and perform all administrative tasks associated with the development process.

Peoples' Self -Help Housing Corporation, Ventura, California Deputy Director of Multi -Family Housing Development, December 2018 to July 2020 Responsible for business development of high priority projects in Santa Barbara and Ventura Counties. Supervise and direct assigned staff of 3 to take projects from original concept through completion.

Many Mansions, Thousand Oaks, California
Director of Housing Development, February 2016 to April 2017 Accountable for building the pipeline of the organization in Los Angeles County, supervising, and mentoring the housing development staff, and overseeing and managing all aspects of the housing development department.

East Los Angeles Community Corporation, Los Angeles, California Director of Real Estate Development, April 2017 to October 2018 Senior Project Developer, November 2010 to February 2016 Supervised and mentored a staff of six Project Managers; managed the department budget and maintained a healthy cash flow for the department and organization from Developer Fee.

Responsible for conceptualizing and implementing development strategies for nonprofit CDC.

Subject sites included permanent supportive housing for homeless veterans, large family housing, and mixed-use transit -oriented developments. Increased the development pipeline by 639 units in in the first 4 years. Managed four developments from acquisition through Form 8909. Standardized development department proforma and filing system.

EDUCATION
University of Southern California * Master of Real Estate Development; May 2002 Venice Institute of Architecture * History of Architecture Program, 1990 —1994 University of California at Berkeley * Bachelor of Arts in Architecture; May 1989

DANIEL A. ROJAS
Project Manager, Real Estate Development

PROFESSIONAL EXPERIENCE
Al mercy

HOUSING
Mercy Housing California, Los Angeles, California
Project Manager, January 2022 to present
Responsible for the preparation of project budgets and funding applications, selection and coordination of architects, contractors and other members of development team, seeking city entitlements and permits, managing construction budgets, and working with other organizations within the housing development, civic and religious communities to create opportunities and support for low-income housing development.

Mercy Housing California, Los Angeles, California
Associate Project Manager, October 2020 to January 2022 Responsible for tasks related to all facets of real estate development including site selection and feasibility analysis, project design development, project proforma budgets and financial analysis, construction management, and project close-out and stabilization, under the supervision of Real Estate Development leadership staff.

Mercy Housing California, Los Angeles, California
Assistant Project Manager 1 Et 11, August 2018 to October 2020 A Community of Friends, Los Angeles, California
Assistant Project Manager, May 2017 -August 2018

EDUCATION
B.A., Geography and Urban Studies, University of California, Los Angeles, 2011

Christine Anderson
Senior Real Estate Analyst, Real Estate Development

PROFESSIONAL EXPERIENCE
Al mercy

HOUSING
Mercy Housing California, Los Angeles, California
Senior Real Estate Analyst, January 2022- Present
Real Estate Analyst, June 2018 -January 2022
Responsible for the preparation of RFQ and RFP responses throughout California. Support new business development and acquisition activities throughout the state of California. Assess feasibility of potential projects, including zoning research and financial modeling. Create and run sensitivity and impact analysis of funding regulation changes from state and local agencies, communicate recommendations to senior leadership and compose comment letters to agencies.

Manage and update pro forma model for the company, adding updates as state and federal sources change and creating dynamic models to adjust for differences in local funding throughout the State.

Corporation for Supportive Housing, New York, New York
Community Strategies Intern, October 2017 -March 2018
Loan underwriting for affordable housing projects in New York City and presenting to investment committee. Analyzed internal impact rating system for loans and provided recommendations for improvement.

SRO Housing Corporation, Los Angeles, California
Project Coordinator Intern, May 2017 -August 2017
County of Los Angeles, Department of Regional Planning, Los Angeles, California Regional Planning Assistant 11, March 2014 to July 2016

EDUCATION
Master of City and Regional Planning, Development Concentration; Real Estate Certificate, Joint with Business School, Rutgers University, 2018
B.S., Civil Engineering, Minor: Urban Policy and Planning, University of Southern California, Los Angeles, 2011

experience
2021 present
Land Fund
Director
2021
Senior Advisor
2016-2021
Director,
National
Lending
Initiatives
2014-2015
Director,
Central Region
2012-2014
Sr Loan Officer
2009-2012
Vice President
2007 — 2008
Assistant Vice
President

MELISSA GARCIA
[email protected] 1 510.459.0517
MERCY HOUSING CALIFORNIA, San Francisco, CA
Director of a land acquisition fund of a non-profit affordable housing developer. • Structured, negotiated and closed $47 million California Land Acquisition Fund (Fund) with multiple lender and philanthropic partners.
• Management and oversight of the Fund in collaboration with its Board of Directors and Mission Impact Council, to maximize community impact and meet fiduciary responsibilities to investors. • Originate pipeline and asset manage portfolio, including vetting due diligence, managing land acquisition closings and exits, and overseeing compliance. • Manage sustainable Fund operating and economic model that meets impact and investor goals and the Fund's financial and operational viability requirements. • Serve as lead spokesperson of the fund and oversee development and implementation of marketing and communications strategy and materials.
• Member of the management steering committee and manage consultant staff.

LOW INCOME INVESTMENT FUND, San Francisco, CA and Washington, DC Director on the lending team of a non-profit community development financial institution. • Created new financing vehicles, including over $200 million in structured funds targeting affordable housing preservation and transit oriented development. Responsible for structuring, negotiating and closing funds with multiple lender, philanthropic, and municipal stakeholders. • Originated and closed complex lending transactions, including loans for New Markets Tax Credit financings, early-stage acquisitions, and multi-party participations. • Performed business development industry -wide, including outreach to developers, co -lenders, investors, and government agencies.
• Member of management team; duties included supervising and mentoring of staff members. • As Central Region Director, developed and executed growth strategy within the region, including creating and maintaining a market coverage plan targeting affordable housing and education and health care facilities; accountable for new lending and portfolio performance in the Region; exceeded targeted loan closing volume and receivables goals for every year applicable.

CITI COMMUNITY CAPITAL, Washington, DC and San Francisco, CA Project finance team member of Citigroup's community development group. • Negotiated workouts for $500 million nationwide portfolio of troubled for -sale condo, multifamily rental and land loans to minimize risk and obtain maximum recovery. • Underwrote and closed approximately $200 million in new loan/private placement bond volume. • Served as client point of contact and face of the business, including negotiating deal terms. • Facilitated internal and external closing processes; reviewed legal documents, and managed internal funding and bond issuance procedures.
• Assessed market risk, evaluated client financial position, modeled project cash flows and proforma budgets.
• Supervised one associate staff member.

2006-2007
Senior
Consultant
2004-2005
Consultant
2000-2002
Assistant to the
Executive
Director
education
volunteer
2023 present
2020 present
2018 present
2015 present
SEIFEL CONSULTING INC., San Francisco, CA
Consultant at a firm specializing in affordable housing, redevelopment, real estate and economics. • Project managed over $650,000 in consulting contracts to prepare technical analyses and reports. • Provided affordable housing and real estate advisory services to public and private clients. • Originated new business by writing proposals and negotiating consulting project contracts. • Coordinated teams of client staff, legal counsel, technical consultants, and in-house staff. • Represented firm at City Council and community meetings, on conference panels. • Served as member of leadership team, guiding business development and internal management. • Supervised one analyst staff member.

THE FRESH AIR FUND, New York, NY
Supported Executive Director of a non-profit organization to provide enrichment for inner-city youth. • Wrote grant requests; secured $1 million in funding.
• Supervised interns and temporary staff; recruited full-time and temporary employees. • Monitored fundraising appeals and assisted with Board of Directors' and donor events.

HARVARD KENNEDY SCHOOL, Cambridge, MA
Master in Public Policy and Urban Planning
YALE UNIVERSITY, New Haven, CT
B.A. in Economics
HOUSING TRUST SILICON VALLEY, San Jose, CA
Credit Committee Advisory Member
REDF IMPACT INVESTING FUND, San Francisco, CA
Advisory Council Member
CHABOT ELEMENTARY SCHOOL, Oakland, CA
Room parent; Lost and Found Chairperson 2022 present
MERCY COMMUNITY CAPITAL, Denver, CO
Loan Committee Member; Committee Chairperson from 2017-2020

AMY BAYLEY, RSM
Vice President Community Engagement

PROFESSIONAL EXPERIENCE
AI mercy

HOUSING
Mercy Housing California, San Francisco, CA
Vice President Community Engagement, January 1995 to Present Responsible for the community engagement and planning activities of Mercy Housing throughout California. This includes the development of community acceptance plans, the creation of opportunities for community participation in the development process, coordinating community design activities and local advisory committees, and new business development. Serves as a lead in community and government relations especially in jurisdictions not previously served by Mercy Housing California (MHC). Also serves as a Board member of the various Mercy HUD senior and special needs entities, assuring positive long-term relationships in the local community. In conjunction with the Regional President, works with MHC's Board of Directors and regional staff to achieve regional and system goals.

September 1993 to December 1994
Sabbatical: Travel and Study
August 1981 to August 1993
Principal
Mercy High School, Burlingame, CA
1972-1980
Teaching and Administration
Mercy High School, Burlingame, CA
Marian High School, San Diego, CA
Mercy High School, San Francisco, CA

EDUCATIONAL BACKGROUND
Russell College, Burlingame, CA
San Francisco State University
University of California, Berkeley, CA
Bachelor of Arts in Humanities
California Standard Teaching Credential -Life
California Administrative Services Credential

PROFESSIONAL AFFILIATIONS & COMMUNITY INVOLVEMENT
Director, St. John's Regional Medical Center Board, Oxnard, CA, 2000- 2007,2013 -present Director, Marian Regional Medical Center Board, Santa Maria, CA, 2007-2013 Member of 15 Mercy Housing Senior Property Boards throughout California, 1995- present Director, Music at Kohl Mansion Board, 1985 — 1998, 2012 -present Director, St. Mary's Hospital and Medical Center Board, 1984-1990 Member, Mercy Secondary Education Association, Executive Board 1983-1989, President 1987-89
Guide, Summer European Tours for High School Students, 1979-1994

REVEREND JACQUIE D. HOFFMAN, D. MIN. CAND.

Regional Director of Property Operations

PROFESSIONAL EXPERIENCE
AI mercy

HOUSING
Mercy Housing Management Group, San Francisco, California Regional Director, Property Operations, 2010 -present
Responsible for overseeing the properties that Mercy operates in assigned region. Provide high quality property management and resident programs and services to the people who reside in the units. Oversees a major segment of the Mercy Portfolio and has primary accountability for the preparation and performance of the regional Mercy Services Corporation (MSC) and property budgets. Responsible for all phases of property management oversight from development through operations including tasks associated with the acquisition, new construction and/or rehabilitation of quality affordable housing units and associated commercial property throughout California.

Area Director, Property Operations of Operations, 2004 -- 2010 Responsible for overseeing property management services for average of 12 properties in the California area. Expertise as liaison with new property set up, interface with City of SF contracts and transition from development to operations. Work with regional human service providers who provide resources to residents at our properties; apply knowledge of applicable local and federal housing laws including Fair Housing and Landlord Tenant laws for operations of property; work with Resident Services to create and manage quality, resident -driven programs.

Community Operations Manager, Property Operations, November 1999- March 2004 Managed and supervised day to day operations. Hired and supervised on-site staff; prepared budgets and worked with owner representatives. Collected rents, marketed and leased vacant units, handled site posting of rents; reconciled on-site ledgers to main office accounting records. Responsible for property management functions as well as coordinating on-site resident services, volunteers and/or Resident Council.

Resident Services Coordinator, October 1997- November 1999 Responsible for implementation of core programs and community formation at new senior property in Marin County including collecting and recording data to measure program outcomes. Identify human/community service needs of residents. Develop strategies to link residents with services.

EDUCATIONAL BACKGROUND
University of California -Irvine, CA
Bachelor of Arts, Major in Linguistics
Bachelor of Arts, Major in Spanish Literature
San Francisco Theological Seminary -San Anselmo, CA
Master of Divinity -1997
Doctor of Ministry, Candidate in Pastoral Care and Counseling -2004

PROFESSIONAL AFFILIATIONS & COMMUNITY INVOLVEMENT
Ordained Minister Northern California Nevada Conference - United Church of Christ — 1998 (4 way Covenant with Mercy Housing) Board Member, Redwoods Senior Community, Mill Valley, 2000-2005 Committee on Ministry -Section B, Northern California Nevada Conference - United Church of Christ — 2009 -Present

JONATHAN WOLF, MPH
Associate Director of Supportive Services, Southern California

PROFESSIONAL EXPERIENCE
mercy

II HOUSING
Mercy Housing California, Los Angeles, California
Associate Director of Supportive Services, Southern California, 2015 Oversees programs, management and services at each property in the assigned region in accordance with the mission and core values of Mercy Housing and the national program model for Resident Services.

Supervises other Resident Services managers and/or manages Resident Services for Southern California.

Oversees services provided by contracting agencies
LA Conservation Corps, Los Angeles, California
Career Pathways Program Manager, 2014
Conducted a needs assessment and program plan for organization that provides educational opportunities and work experiences for underserved young adults in Los Angeles. Researched Career Pathways Programs being implemented at similar organizations. Attended and facilitated meetings with community partners including: small businesses and local community colleges.

Skid Row Housing Trust, Los Angeles, California
Program Manager, 2011 - 2014
Manage services for 3 permanent supportive housing buildings that serve over 200 formally chronically homeless individuals. Oversee all social services in the buildings Supervise diverse team of case managers, social workers, substance abuse specialists, and medical professionals. Coordinate services with JWCH mental health and primary care clinic located in buildings. Responsible for assuring proper usage of the Health Management Information System, and ETO Client Tracking System. Co -Chair of the Eviction Prevention Committee. Supervise a Continuous Quality Improvement (CQI) group. Oversee staff training program including creating curriculum and bringing in guest speakers.

Eliot Community Human Services, Boston, Massachusetts
Director of Boston Area Homeless Programs, 2007 - 2011
Aggressive Street Outreach; Safe Haven Transitional Shelter for Women; and Bread £t Jams Shelter Managed the day-to-day operations of the Aggressive Street Outreach and Women's Safe Haven Programs on Newbury St. in Boston, and the Bread and Jams Shelter in Cambridge, which serve over 200 individuals annually. Supervised diverse staff consisting of clinical social workers, case managers, homeless advocates, and general shelter personnel. Review and process all grievances. Oversaw usage of the Health Management Information System and produced the annual progress reports for the three programs. Provided case management services to homeless adults. Served as a committee member of the Area Al Homeless Task Force, Boston Diversion Consortium, and the Boston Regional Homeless Network. Team Leader for the Annual Boston Homeless Census. Coordinated services with outside agencies, volunteers and interns, grant writing, and fundraising.

Boston Health Care for the Homeless Program, Boston, Massachusetts Research Associate, 2005 - 2007
Responsible for collecting data on program, managing data bases; conducting field interviews with homeless individuals; coordinating meetings with various departments and outside contacts; and grant writing.

The Mentor Network, Boston, Massachusetts
Clinical Coordinator, 2001 - 2002
The Vocational Adjustment Center, Boston, Massachusetts Evaluations and Training Manager, 2000 - 2001

EDUCATIONAL BACKGROUND
Boston University School of Public Health, Boston, MA
Master's Degree in Public Health, 2007
Connecticut College, New London, CT
B.A. Psychology, 1999

COMMUNITY INVOLVEMENT
Martha's Vineyard Cerebral Palsy Camp (Camp Jabberwocky). Trustee, 2005 -Present

TCA Resumes

ARCH ITECTS

SANDY CHUNG, AIA

PRINCIPAL, PROJECT DESIGN DIRECTOR
Sandy Chung is a Principal and Project Design Director at TCA with over 12 years of design experience in high density, multifamily housing. Sandy has been the lead project
designer on several multifamily residential and mixed-use projects, guiding project designs from conceptual phase through schematic design, with direct interaction with clients and consultants. Her experience in planning and entitlement procedures makes her a valuable asset to TCA as well as our client base.

Sandy has led design teams for mixed-use projects within urban master plans (such as Cumulus and Americana
at Brand) located in greater Los Angeles, and has also
participated in several other large-scale residential master plan design competitions overseas.

Sandy's recently completed projects include Altitude, a 545 -unit project near LAX airport. The design reflects the aeronautical history of Howard Hughes. Other projects
include Hanover Grand, a 273 -unit, mixed-use project in downtown Los Angeles and ViO, a 234 -unit project in San Jose and 2017 PCBC Gold Nugget Merit Winner for "Best
Multifamily Community."
Sandy is proficient in Revit and AutoCAD, SketchUp,
Adobe Photoshop and InDesign; Microsoft Word, Excel,
and PowerPoint. She is fluent in Cantonese and Mandarin Chinese.

LOS ANGELES IRVINE OAKLAND TCA.arch.com
1 Contact:
[email protected]
Los Angeles Studio
801 South Grand Ave, Suite 1020
Los Angeles, CA 90017
213/553-1100
Architecture Licenses:

CA (C-31566)
Education:

Master of Architecture
Harvard Graduate School of Design
Cambridge, Massachusetts
Bachelor of Arts, magna cum laude
Wellesley College
Wellesley, Massachusetts
Project Experience:
1335 Grand, Los Angeles, CA
4th & Hill, Los Angeles, CA
800 Plaza, Los Angeles, CA
Altitude, Los Angeles, CA
Baldwin & Rose, El Monte, CA
Cumulus, Los Angeles, CA
Hanover Grand, Los Angeles, CA
Howard Hughes Center Site 4,
Los Angeles, CA
MDR95, Marina Del Rey, CA
Sunset+Vine, Hollywood, CA
Tamal Vista, Corte Medera, CA
Vio, San Jose, CA
Vireo at Park Place, Irvine, CA

ARCH ITECTS

ARMINE MOVSESYAN, AIA, LEED AP

PRINCIPAL, STUDIO DIRECTOR
Armine Movsesyan is a Principal, Studio Director and licensed architect at TCA with over 17 years of experience in single family, multi -family, urban infill & mixed-use housing projects. Armine joined TCA in 2014, and her design talents elevated her to a Studio Director position, where she currently leads her team through the process of Entitlements to CA Phase. Through the process, she works closely with the designer and technical staff in-house, as well as coordinates with clients and consultants.

She also plays an integral role in the design of TCA's annual design journal, Base.

Prior to joining TCA, Armine was a Designer at LCRA,
specializing in single family and multi -family housing worldwide, including Dubai and India. In her seven and a half years with LCRA, she grew as a designer by working closely with her mentors at the firm. As a result, she carried several single family residence additions and remodels through permit and construction.

Born and raised in Armenia, Armine moved to the United States in 1993 at the age of 12. She received her Bachelor's Degree in Architecture from California State University of Pomona in 2006 with Magna Cum Laude. In 2004, she studied in Florence, Italy as part of her Architecture curriculum; and believes her experiences of living in different parts of the world supports her innate ability to understand and deliver beautiful high - performing, functional designs.

LOS ANGELES 1 IRVINE 1 OAKLAND 1 HONOLULU TCA.arch.com
Contact:
[email protected]
Los Angeles Studio
801 South Grand Ave. Suite 1020
Los Angeles, CA 90017
213/553-1100
Architecture License:

CA (C-35525)
Education:

Bachelor of Architecture
California State Polytechnic University
Pomona, CA (2006)
Magna Cum Laude
CSU International Program
California State University of Florence,
Florence, Italy (2004)
Project Experience:
12th & Grand, Los Angeles, CA
16161 Ventura Blvd, Encino, CA
321 W Ocean Blvd, Long Beach, CA
4th & Hill, Los Angeles, CA
800 Western, Los Angeles, CA
Baldwin & Rose (Affordable), El Monte, CA
Cascade Anaheim Renovations, Anaheim, CA
Evolve, Emeryville, CA
Norwalk, Norwalk (Affordable Housing), CA
Olive & Pico, Los Angeles, CA
Palm Desert Active Senior Housing, Palm Desert, CA
Paseo Marina, Marina Del Rey, CA
Placentia Veterans Village (Affordable), Placentia, CA
Sherman Oaks Senior Housing (Affordable), Burbank, CA
South San Francisco, San Francisco, CA
The Landing in Palmdale, Palmdale, CA
The Link, Glendale, CA
Renovations
Lankershim Adaptive Reuse & New Construction,
Los Angeles, CA
SV2, Renovation's and New Construction Los Angeles, CA
The Grand, Los Angeles, CA
Ventana Renovations, Playa Vista, CA
Verdugo Vista Renovations, Glendale, CA

ARCH ITECTS

ERIC OLSEN, AIA, LEED AP

VICE PRESIDENT
Eric Olsen is a Partner at TCA and the Principal in Charge of the Los Angeles office. He has 24 years of experience in master planning, mixed-use, TOD, and high-density and affordable housing. In his role as P.I.C., Eric leads project teams and provides overall office management. He also
heads the Design Department for TCA and acts on the firm's Board of Directors Executive Committee.

Eric's Los Angeles office has recently completed several notable mixed-use and high-density housing projects,
including G-12 and Olive DTLA in downtown LA, with Wolff Development; The Camden, in Hollywood, CA, with Camden
Development; Cumulus TOD on the Expo Line and 4th & Hill TOD over the Pershing Square Station, in Los Angeles, CA; and El Monte Veterans Village a 42 -unit affordable housing SRO serving military veterans in El Monte, CA.

His designs have been recognized by the American Institute of Architects (AIA), the Congress of the New Urban (CNU), The National Association of Home Builders (NAHB) and the Pacific Coast Builder's Conference (PCBC), among others.

Eric is a frequent speaker on design and architecture at industry events and volunteers as a studio critic at Cal Poly Pomona's School of Environmental Design. His projects have been featured in industry publications such as Urban Land Magazine, Green Home Builder, Architectural West, Builder Magazine, and Multi -Housing News.

Eric holds an NCARB certificate and is licensed in California and Hawaii. He received a Bachelor of Arts from the
University California Los Angeles (UCLA) and holds a
Masters of Architecture from California State Polytechnic University, Pomona. Eric and family are frequent travelers to Hawaii. They are Long Beach residents where Eric volunteers as an AYSO coach when he is not practicing architecture.

LOS ANGELES IRVINE OAKLAND TCA.arch.com
Contact:
[email protected]
Los Angeles Studio
801 South Grand Ave, Suite 1020
Los Angeles, CA 90017
213/553-1100
Architecture Licenses:

CA (C-27721)
HI (AR -15176)
Education:

Master of Architecture
California State Polytechnic University,
Pomona, CA
Bachelor of Arts
University of California, Los Angeles
Los Angeles, CA
Professional Affiliations:

American Institute of Architects (AIA)
Project Experience:

Altitude, Los Angeles, CA
Baldwin & Rose, El Monte, CA
4th & Hill, Los Angeles, CA (TOD)
Boardwalk, Huntington Beach, CA
Camden Glendale, Glendale, CA
Cumulus, Los Angeles, CA (TOD)
El Monte Veterans Village, El Monte, CA
G12, Los Angeles, CA
Howard Hughes 4, Los Angeles, CA
Onyx, Los Angeles, CA
OP, Los Angeles, CA
The Camden, Hollywood, CA (TOD)
The Lex on Orange, Glendale, CA
Westgate Apartments, Pasadena, CA (TOD)
Kaka'ako Block B, HI (Conceptual Design)

DESIGNING TOMORROW. TODAY. TOGETHER.

For over 25 years, TCA has had a passion for mixed-use, multifamily housing. We believe that everyone deserves the quality of life that starts with a good home; and we share in the responsibility of delivering safe, affordable and supportive housing for all walks of life. We believe in inclusive, engaging communities; where people work together to bring those on the fringes back into the mainstream of community interaction.

In addition to market -rate housing, our portfolio includes many affordable and mixed -income projects with developers such as Anton Development, Bridge Housing, Mercy Housing, and Related Companies.

These projects are specifically designed for low-income families, seniors, and homeless Veteran's.

Regardless of the density, we design quality housing for the leanest of budgets. We listen closely, understand affordable housing funding, and deliver excellent results.For 18 years, we have partnered with Habitat for Humanity to raise money, design and build affordable homes for hard-working families in need. Our annual charity golf tournament (benefitting Habitat for Humanity of Orange County) has raised over $1.2 million dollars - leading to the construction of new homes within our local communities.

AFFORDABLE/

MIXED -INCOME PROJECTS
• Anton Portola, Irvine, CA
• Baldwin & Rose, El Monte, CA
• Bridge Hayward, Hayward, CA
• Bayview Landing, Newport Beach, CA
• El Monte Veterans Village, El Monte, CA
• Emerson Grove, Anaheim, CA
• Hikari, Los Angeles, CA
• Mendocino, San Clemente, CA
• Mercy Placentia, Placentia, CA
• Sakura Crossing, Los Angeles, CA
• Westgate Apartments, Pasadena, CA
www.tca-arch.com
100% Affordable
100% Affordable
100% Affordable
100% Affordable
100% Affordable
100% Affordable
20% Affordable
100% Affordable
100% Affordable
20% Affordable
20% Affordable
256 units
55 units
152 units
120 units
41 units
102 units
102/26 units
186 units
50 units
184/46 units
384/96 units

LOCATIONS
IRVINE
19782 MacArthur Blvd. Suite 300
Irvine, CA 92612
949/862-0270

LOS ANGELES
801 S. Grand Ave. Suite 1020
Los Angeles, CA
213/553-1100

OAKLAND
1111 Broadway Suite 1320
Oakland, CA 94607
510/545-4222
We listen closely,
understand affordable
housing funding, and
deliver excellent results...

Families
Homeless/Veteran's
Families
Senior
Homeless/Veteran's
Families
Workforce
Families
Disabled/Veteran's
Workforce
Workforce

ARCH ITECTS

Section E: Conceptual Development Program

City of Placentia -Affordable Housing Development Opportunity Section E: Conceptual Development Program Baker Street
Section E: Conceptual Development Program
Baker Street provides an opportunity to develop needed affordable housing serving families and formerly homeless residents in Placentia. Our team is proposing a 5 -story, 68 -unit family community with 30% of the units set-aside for individuals and families existing homelessness. The affordability would range from 15% AMI to 60% AMI, creating a diverse and integrated community. TCA has designed a building that maximizes the potential units at the site, ensuring that the project will serve the most residents possible. Our team also proposes a 40 -unit phase II for the adjacent sites on Baker Street that is intended, in design and operations, to fit seamlessly with Phase I.

The design of Baker Street is intended to fit within the goals of the Old Town Revitalization Plan. The Spanish style building has an open and welcoming lobby that will be located at the dead end of Baker Street, creating a welcoming site -line for residents and visitors. The open space for the community is located on the fifth floor with the community room adjacent to it. This will provide a great view for the residents and create a welcoming and engaging community space.

The unit mix at the site is designed to serve low-income families and individuals and families exiting homelessness. This mix also meets the standards for TCAC/CDLAC and HCD's definition of a large family project, which is important for financing the project. The affordability for the PSH units is set at 30% of AMI and the rest of the units range from 50-60% of AMI. The chart below shows the unit mix and affordability range of the community. All of these units are set at rents that meet the surplus land and redevelopment requirements as stated in the RFP. Those details are shown below as well. The unit set-aside for His House is set to 15% of AMI; we have not assumed rental subsidy on this unit, as it is not currently clear if the leasing approach will comply with the County's coordinated entry system (CES) so this is the income level that we anticipate a family exiting homelessness may meet. We would explore this assumption further with the County. The remainder of the PSH units set at 30% AMI, will be subsidized by project -based vouchers. 1 -bedroom
2 -bedroom
3 -bedroom
Total
Percentage
15%AMI 30% AM I
17 1 2
1 2%
His
House
19 28%
PSH Units
40% AMI
2 3
2 7
10%
50% AM I
3 7
7 17
25%
Health and Safety Code Rents and Requirements
15% 30% 40% HSC VLI Rents
AMI AMI AMI (7% of the units
Rents Rents Rents required to be
at or below)
1 -bedroom $756 1,008 $1,191
2 -bedroom $453 $907 1,210 $1,340
3 -bedroom 1,398 $1,488
of units at each 2% 28% 25% 55%
income level
OmercyHous I NG
Live in Hope
60% AMI
5 10 1
8 23 1
34%
Average Affordability
Manager's Total
27 24
17 68
50% 60%

AMI AMI
Rents Rents
1,261 1,513
1,513 1,815
1,748 2,097
25% 34%
49% AMI
HSC Moderate
Income Rents (100%
of the units required
to be at or below)
$2,620
$2,948
$3,275
100%

Page 10 of 30 ends

City of Placentia -Affordable Housing Development Opportunity Section E: Conceptual Development Program Baker Street
The community will be supported by a number of common spaces, including a large lobby and property management and services offices on the ground floor. The lobby is designed to be welcoming for residents and to allow easy access to staff. In our PSH and mixed -population buildings, we have found the most successful design of lobby and offices allows for casual and regular interaction between staff and residents. This creates a comfortable and familiar relationship, which supports the residents in seeking out support or services.

Additionally, the ground floor will include play structures for the children living at Baker Street. The fifth -floor open space will serve all the residents and include landscaping and seating areas. The community room will open to this open space, allowing for ample space for resident services programs and uses. A detailed breakdown of the building area is below.

Use Area % of total
Residential Units 56,502 73%
Circulation 15,936 21%
Offices 1,700 2%
Common Space 2,923 4%
Gross Area 77,061 100%
The Phase I plan provides seventy-two (72) parking spaces. This includes forty-nine (49) spaces in the podium structure of the building, eleven surface parking spaces on the southwestern edge of the building, and twelve parking spaces on the satellite lot. The parking is maximized without using subterranean parking. Subterranean parking is extremely costly, and as costs are a competitive consideration for many of our funding sources, MHC and TCA intentionally did not consider it at this site.

The site design fits within the existing zoning at the site, with allowable concessions from the State and City of Placentia Density Bonus. These concessions include on -menu incentives, including a 4% increase in density, a height limit increase, and parking requirement reduction. The details of the parking requirement reduction are below. Based on AB 1763, there are no parking spaces required for supportive housing within a half mile of a bus stop that operates at least eight times per day. The ratios for the other units are 1 space per studio and 1 - bedroom units and 1.5 spaces per 2- and 3 -bedroom units. These parking ratios are consistent with other projects MHC has built, including Veterans Villas at San Antonio in Norwalk. Our development team strove to maximize the units provided at the site, while balancing existing zoning and parking requirements. # of AB 2345 # of spaces
units Parking Ratio
1 -bedroom, non -PSH 10 1.0 10
1 -bedroom PSH 17 0 0
2 -bedroom, non -PSH 21 1.5 31.5
2 -bedroom PSH 3 0 0
3 -bedroom 17 1.5 25.5
Staff 4
Total 71 parking spaces
mercyHousING
Live in Hope

Page 11 of 30 ends

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 11
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
mercyHousING
Live in Hope

Page 12 of 30 ends

Conceptual Development Plan

PHASE 1 PHASE 2

SITE INFORMATION
ASSESSOR PARCEL It

ADDRESS

SITE AREA

DEVELOPMENT PARAMETERS
ZONING

SETBACKS
FAR
FLOOR AREA*
MAX. BLDG HEIGHT

DENSITY BONUS

NUMBER OF UNITS

DENSITY

DENSITY BONUS
* Floor area includes...
•
(RAILROAD/FRONT/SIDE/REAR/STREET SIDE)
(PER ZONING)
11'
(65 UNITS PER ACRE)
35% INCREASE

PERMITTED/REQUIRED
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 (339-392-19, -14, -15 )& (339-391-15, -14)
323,300/ 307, 312,314 Baker St.
43,729 SF

1.004 AC

PROPOSED
High Residential - Old Town Placentia
Revitalization Plan
0'/5'-15'/0'/0'/5'-15'
66'
68 68 DU/AC

UNIT SUMMARY

UNIT TYPE
1 Bedroom:

Al
2 Bedrooms:

B1
3 Bedrooms:

Cl
C2
Sub -Total
TOTAL
Average Total #
SF* Units
593 26
893 24
1,018 14
1,350
18 831 68
Total
Unit Mix Net Rent.

38.2% 15,418

35.3% 21,432

20.6% 14,252

5.9% 5,400

26.5% 19,652
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

PARKING SUMMARY
REQUIRED PARKING per Density Bonus
Unit Type ft Units
1 -Bedroom
2 -Bedrooms
3 -Bedrooms
Guest
PSH Units -1 bedroom
PSH Units - 2 bedroom
TOTAL
Office Parking
TOTAL
9 21
18 0
48 Ratio

1.0 1.5

1.5 Not Required
72,438
373
302
229
645
753
896
265
1,160
77,061

PROVIDED PARKING
Total LEVEL
9 Within Building - Office
32 27 Within Building - Residents
0 Off Site
68 17 no parkmng req'd per AB1763 TOTAL
3 no parkmng req'd per AB1763
20 Units 0
Tandem Standard - 9019
2 2

ADA PARKING - RESIDENTIAL REQUIRED/PROVIDED
4 per 1000 4 Percentage
72 ADA Stalls - Residential 2
ADA Stalls - Guest/Employees 5

BICYCLE PARKING - RESIDENTIAL REQUIRED/PROVIDED
Ratio # Units
Short-term 1 per 5 units 68
Long -Term 2 per 5 units 68

OPEN SPACE SUMMARY

COMMON REQUIRED
SF per unit
Total Units 50
Density Bonus Reduction

PRIVATE REQUIRED
Total Units
SF per unit
64 EV PARKING - RESIDENTIAL REQUIRED/PROVIDED
Total Percentage
14 EV Stalls 40
27 EV Aisle 1 per 25
TOTAL 41
# Units Total
68 3,400 SF
SUB -TOTAL 3,4005F
20% 6805F
TOTAL 2,7205F
# Units
68 TOTAL

PROVIDED COMMON
LEVEL
Courtyard at 5th Floor

PROVIDED COMMON
Total
4,352 SF Units
4,352 SF
2 45
23 Sub -Total
# Stalls
68 4
# Stalls
72 29
70 Total
45 23
68 72
Total

2.0 1.0
3 Total
29 2
Total
2,720 SF
2,7205F
Total
4,352 SF

SITE INFORMATION
SITE AREA - Approximate numbers 19,492 SF

0.447 AC

DEVELOPMENT PARAMETERS
ZONING

SETBACKS
FAR
FLOOR AREA*
MAX. BLDG HEIGHT

DENSITY BONUS

NUMBER OF UNITS

DENSITY

DENSITY BONUS
* Floor area includes...
(FRONT/SIDE/REAR/STREET SIDE)
(PER ZONING)
11'
(65 UNITS PER ACRE)
35% INCREASE

PERMITTED/REQUIRED
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 PROPOSED
High Residential - Old Town Placentia
Revitalization Plan
5'-15'/0'/0'/5'-15'
66'
40 89 DU/AC

UNIT SUMMARY

UNIT TYPE
1 Bedroom:

Al
A2
2 Bedrooms:
131
3 Bedrooms:

Cl
TOTAL

FLOOR AREA SUMMARY
Residential Floor Area
Amenity
Laundry Rooms

PARKING SUMMARY
REQUIRED PARKING per Density Bonus
Unit Type # Units
1 -Bedroom
2 -Bedrooms
3 -Bedrooms
Guest
PSH Units -1 bedroom
PSH Units - 2 bedroom
TOTAL
3 8
12 0
23 Ratio

1.0 1.5

1.5 Not Required
Sub -Total
Total
3 12
18 0
33 9 no parking req'd per AB1763
8 no parkng req'd per AB1763
17 Units 0 ADA Stalls -Residential
Average Total #
SF* Units
593 12
586 0
12 893 16
1,018 12
535 40
Total
Unit Mix Net Rent.

30.0% 7,116

0.0% 0

30.0% 7,116

40.0% 14,288

30.0% 12,216
100.0% 21,404
27,441
1,085
964
29,490

PROVIDED PARKING
LEVEL
Within Building- Residents
TOTAL
Tandem Standard - 9x19
33 ADA PARKING - RESIDENTIAL REQUIRED/PROVIDED
Percentage
2 BICYCLE PARKING - RESIDENTIAL REQUIRED/PROVIDED
Ratio 8 Units
Short-term 1 per 5 units 40
Long -Term 2 per 5 units 40

OPEN SPACE SUMMARY

COMMON REQUIRED
SF per unit
Total Units 50
Density Bonus Reduction

PRIVATE REQUIRED
Total Units
SF per unit
64 EV PARKING - RESIDENTIAL REQUIRED/PROVIDED
Total Percentage
8 EV Stalls 40
16 EV Aisle 1 per 25
TOTAL 24
r '
# Units Total
40 2,000 SF
SUB - TOTAL 2,000 SF
20% 400SF
TOTAL 1,600 SF
# Units
40 TOTAL

PROVIDED COMMON
LEVEL
Courtyard at 2nd Floor

PROVIDED COMMON
Total
2,560 SF Units
2,560 SF
It Stalls
33 it Stalls
33 13
33 Total
33 33
Total

1.0 Total
13 1
Total
2,368 SF
2,368 SF
Total
2,560 SF
4,40.
mercyHousI NG

ARCH ITECTS

ILLUSTRATIVE SITE PLAN

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

ARCH ITECTS

SECTION
A
MPOE
215 SF
PHASE 2
GARAGE
14517 SF
95'o
i� �sca�dara -
RES.

SERVICES
302 SF
Front

COURTYARD
(Not part of Open Space req'd)
—0,1; ,Iroevard

FIRST FLOOR PLAN
0' 10' 20' 40'
�0'JGrta+ld^eWN—
ELEC. METROLINK
344 SF
,E!)
Go
W O.

U1-1-1
O
U �
�
� '9
L&O I j
0 W
.JECTION
A

MECHANICAL
346 SF

POTENTIAL STANDPIPE
REQ'D

SECTION
A

SECOND FLOOR PLAN
0' 10' 20' 40'
,E!)
dilmercyHousl NG
ECTION
A
t t -4 1 7 1r 7 '�

SECTION /
A
L
THIRD - FOURTH FLOOR 20' 40'

TOP OF PARAPET
ROOF
5TH STORY
• STORY
� 3RD STORY
�J� 2ND STORY
� 1STSTORY�
�J

SECTION A
al
Fire unci 'dinnill CI uy
0' 10' 20' 40'
N
e y�
,inl
II I� N
cI ct
• Building Beyond .0
n
Ia
�
ba I
oe O
Units LL
—1
1 1
PHASE 2
Phase 2 - Courtyard
Parking
Amenity
N
a
ECTION
A
nits
Res. Services
PHIS 1
Parking
/

SECTIONL
A

FIFTH FLOOR PLAN
Mini
� J
�. 3
PHASE 2
/
0' 10' 20' 40'

TOP OF PARAPET
ROOF
5TH STORY
4TH STORY
3RD STORY n
2ND STORY nV
1ST STORY
Melrose St.

PHASE 1

ROOF DECK
2,729 SF
STRO
265 SF
- - -` - COMMUNITY
ROOM
838 SF
mercyHousI NG
ECTION
A

ARCH ITECTS

PHASE 1
ir VIEW TOWARDS PROJECT

KEY PLAN
°mercyHousiNG

ARCH ITECTS

PHASE 1 AND 2
1 VIEW TOWARDS PROJECT

KEY PLAN
lillmercyHousivc

ARCH ITECTS

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 Amount Anticipated Anticipated Anticipated Amount available in Applied for in Amount Available Timing of Next Available in 2024 2022 2022 in 2023 SuperNOFA SuperNOFA (from bonds or
SuperNOFA SuperNOFA 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 "mercy HousING
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City of Placentia -Affordable Housing Development Opportunity Section F: Financing Strategy 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 mercyHousING
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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. "mercy HousING
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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 11
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 1 Proforma

SOURCES AND USES
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

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
Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
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%
- 0%
0%
622,599 100%
Per Unit % of TDC
76,731 12%
0%
379,892 61%
18,382 3%
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
SURPLUS/GAP $ (0) $ (0)

Page 1 of 8 ends

7.2%

65.2%

2.9%

0.5%

6.3%

0.2%

2.2%

4.8%

5.1%

5.2%

0.3%
100.0%

UNIT MIX
PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
MAX RENT (Gross per month; assume 1.5 persons/bdrm) 'His House (non-LIHTC) 1 UNITS AT 81% AMI LIHTC Income Level 15% 30% 40% 50% 60% 80% 90% 110% 120% 130%

AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI
Studio/Efficiency 353 706 941 1,177 1,412 1,883 2,118 2,589 2,824 3,060 1 Bdrm 378 756 1,008 1,261 1,513 2,017 2,269 2,774 3,026 3,278 2 Bdrm 453 907 1,210 1,513 1,815 2,420 2,723 3,328 3,631 3,933 3 Bdrm 524 1,048 1,398 1,748 2,097 2,796 3,146 3,845 4,195 4,544 4 Bdrm 585 1,170 1,560 1,951 2,341 3,121 3,511 4,292 4,682 5,072 His House (non-LIHTC) 1 UNITS AT 81% AMI
APARTMENT MIX Sq. Ft. 15% 30% 40% 50% 60% 80% 90% 110% 120% 130% # of Apts Per Apt AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI Unit Type Distribution SRO/Efficiency 0 500 0 0 0 0 0 0 0 0 0 0 0.0%
1 Bdrm 27 593 0 17 2 3 5 0 0 0 0 0 39.7%
2 Bdrm 23 893 1 2 3 5 12 0 0 0 0 0 33.8%
3 Bdrm 17 1121 0 2 9 6 0 0 0 0 0 25.0%
4 Bdrm 0 0 0 0 0 0 0 0 0 0 0 0.0%
Manager Unit 1 893 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% 0.0% 0.0%

RENT SCHEDULE

SPECIAL NEEDS UNITS / RENT SUBSIDY
Sq. Ft. Sq. Ft. Gross Util Effective Total Percent of Units 19 Income Restriction Unit Type # of Apts Per Apt Total Rent Allow Rent Ann'1 Rent # of Apts FMR /Contract Rent Utility Allowance Effective Contract Rent Subsidy PUPM Total Annual Subsidy 30% of AMI SRO/Efficiency - 500 - 706 46 660 - 1,939 46 1,893 - - 1 Bdrm 17 593 10,081 756 62 694 141,576 17 2,113 62 2,051 1,357 276,828 2 Bdrm 2 893 1,786 907 78 829 19,896 2 2,539 106 2,433 1,604 38,496 3 Bdrm - 1,121 - 1,048 98 950 - 3,448 136 3,312
4 Bdrm - - 1,170 123 1,047 - 3,519 123 3,396
40% of AMI SRO/Efficiency - 500 - 941 46 895 - 1,939 46 1,893 1 Bdrm 2 593 1,186 1,008 62 946 22,704 2,113 62 2,051
2 Bdrm 3 893 2,679 1,210 78 1,132 40,752 2,539 78 2,461 3 Bdrm 2 1,121 2,242 1,398 98 1,300 31,200 3,448 98 3,350 4 Bdrm - - 1,560 123 1,437 - 3,519 123 3,396
50% of AMI SRO/Efficiency - 500 - 1,177 46 1,131 - 1,939 46 1,893 1 Bdrm 3 593 1,779 1,261 62 1,199 43,164 2,113 62 2,051 2 Bdrm 5 893 4,465 1,513 78 1,435 86,100 2,539 78 2,461 3 Bdrm 9 1,121 10,089 1,748 98 1,650 178,200 3,448 98 3,350 4 Bdrm - - 1,951 123 1,828 - 3,519 123 3,396
60% of AMI SRO/Efficiency - 500 - 1,412 46 1,366 - 1,939 46 1,893 - 1 Bdrm 5 593 2,965 1,513 62 1,451 87,060 2,113 62 2,051 2 Bdrm 12 893 10,716 1,815 78 1,737 250,128 2,539 78 2,461 3 Bdrm 6 1,121 6,726 2,097 98 1,999 143,928 3,448 98 3,350 4 Bdrm - - 2,341 123 2,218 - 3,519 123 3,396 -
His House Unit @ 15% of AMI SRO/Efficiency - 500 - 353 46 307 - 1,939 46 1,893 1 Bdrm - 593 - 378 62 316 - 2,113 62 2,051
2 Bdrm 1 893 893 453 78 375 4,500 2,539 78 2,461
3 Bdrm - 1,121 - 524 98 426 - 3,448 98 3,350 -
4 Bdrm - - 585 123 462 - 3,519 123 3,396 -
Manager Unit 1 893 893 - -
TOTAL 68 56,500 $92,568 $5,134 $87,434 $1,049,208 19 135580 315,324 Common/Utility Areas 20,559
TOTAL RES. AREA 77,059 $1,014,612
Other Income
Laundry/Vending Income 68 Units $5.00 Month 4,080
Other Income (Enter Here) -
Total Other Income 4,080
POTENTIAL GROSS INCOME 1,368,612

Page 2 of 8 ends

Total
$1,364,532

DEVELOPMENT COSTS
PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

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

Page 3 of 8 ends

unit cost Total Project Cost
$82
$0
$358
4°/0

0.75%

1.25%

0.50%

1.00%
4°/0
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

DEVELOPMENT COSTS

RESERVES
Capitalized Operating 6 months 607,399
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve 315,324
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement
TOTAL RESERVES 922,723

CONTINGENCIES
Construction Contingency
Soft Cost Contingency

TOTAL CONTINGENCIES
5%
10%
1,380,122
641,494
2,021,616
PERMITS & GOV. FEES
school impact fee
other impact fees $15,000 1,020,000
building permit, plan check, other fees $5,000 340,000
Capital Fees (utility fees & hook-up charges) $2,000 136,000 TOTAL PERMITS & FEES 1,496,000

THIRD PARTY REPORTS
Environmental Reports
Appraisal 15,000
Market Study 15,000
Title/Escrow/Closing 10,000
TOTAL THIRD PARTY REPORTS 40,000

OTHER OWNER COSTS
Financial Consultant 30,000
Cost Cert/Accounting 30,000
Construction Mang./Oversight/Testing 145,000
TOTAL OTHER OWNER COSTS 205,000

MANAGEMENT COSTS
Marketing/Leasing $2,500 170,000
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up) 100,000
TOTAL MANAGEMENT COSTS 270,000
SUBTOTAL 40,011,714

DEVELOPER COSTS
Developer Fee 2,200,000
TOTAL DEVELOPER COSTS 2,200,000

TOTAL SYNDICATION COSTS

TOTAL PROJECT COST

GRAND TOTAL DEVELOPMENT COSTS

Page 4 of 8 ends

Ii
125,000
42,336,714
$42,336,71411

PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

First Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount
Section 8 Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount
Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California

CONSTRUCTION PERIOD INTEREST CALCULATION
Total Development Cost
Conventional construction loan amt
LTC
Months outstanding
Average % outstanding
Rate
Total Interest Estimate
50% Bond Test
Tax Exempt Financing
Depreciable Basis + Acquisition
Ratio

TAX CREDIT EQUITY CALCULATION
Basis
Deduct grant amounts
Eligible Basis
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
Allowable Basis (Lesser of Actual or Adjusted Basis Limits) 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
State Credit
State Credit $/credit
State Credit Equity
Total Net Equity to Project

6.25%
30 30

1.15 385,518
$5,217,734
$5,217,734

6.25%
15 15

1.15 $0
$0

FINANCING
Construction Lease-up/Conversion Taxable Tail Lease-up/Conversion 42,336,714 42,336,714
29,200,895 29,200,895

69.0% 0.0%
18 4 18
50% 100% 50%

6.8% 6.8% 6.8%
1,489,246 661,887 0
CDLAC Allocation Test
- Total Limit
$39,978,040 Passes?
0%
Yes
341,094
393,278
474,400
607,232
676,494
474,400
Nage b or is
38,894,000
# of units
0 27
23 17
0 1
68 20%
10%
2%
2%
10%
15%
10%
0%
0%
93%
0%
22%
99%
0%

9.00%

0.94 Constr/Rehab
Total
4 100%

6.8%
0 2,151,133
36,928,050
36,928,050
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
36,928,050
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
2,915,791

0.80 2,332,633
25,832,633
Acquisition
0 0
0 8,000,000

9.00%
0 0

0.94 0
8,550,791

PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

OPERATING BUDGET
Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
Units 68
PAYROLL/PAYROLL TAXES Yearly Expense PUPA
Admin Payroll 128,790 1,894
Operations and Maintenance Payroll 106,718 1,569
Other Personnel Expenses 3,100 46
Taxes and Benefits 58,877 866
TOTAL PAYROLL EXPENSES 297,485 4,375

ADMINISTRATIVE EXPENSE
Administrative Expenses 28,568 420
Advertising 680 10
Marketing -
Audit Fees 14,892 219
Bookkeeping and Accounting Fee 7,752 114
TOTAL ADMINISTRATIVE EXPENSE 51,892 763

UTILITIES EXPENSES
Electricity 17,903 263
Water 16,116 237
Gas 12,784 188
Sewer 5,984 88
Other
TOTAL UTILITIES EXPENSES 52,787 776

OPERATING AND MAINTENANCE
Operations and Matinenance 50,585 744
Garbage/Trash Removal 10,000 147
TOTAL OPERATING EXPENSES 60,585 891
REAL ESTATE TAXES 10,000 147
INSURANCE 136,000 1,200
RESIDENT SERVICES 124,987 1,838
MANAGEMENT FEE 48,960 720
TOTAL OPERATING BUDGET 782,696 11,510

Page 6 of 8 ends

PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California

CASH FLOW
Inflation Initial Year
POTENTIAL GROSS INCOME Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11 Resident Rent - Conventional 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 Resident Rent - Special Needs 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 Rent Subsidy 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 Other Income 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 POTENTIAL GROSS INCOME 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

VACANCY LOSS
Resident - Conventional 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) Resident - Special Needs 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) Rent Subsidy 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) Commercial 25.0% - - - - - - - - - - - - -
Total Vacancy Loss (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) EFFECTIVE GROSS INCOME 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 OPERATING EXPENSES 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) NET OPERATING INCOME 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

RESERVES
Replacement Reserve (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) Operating Reserve - -
Total Reserve Deposits (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)

INCOME BEFORE DEBT SERVICE
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 DEBT SERVICE 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.24 1.25 First Mortgage (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) HCD/Other Debt Service (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) Bond Monitoring Fee
Total Debt Service (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) NET CASH FLOW 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 1 Pro Forma

SOURCES AND USES
PROJECT NAME: Baker Street
FINANCE TYPE: 4%/IIG/MHP
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
CONSTRUCTION SOURCES OF FUNDS Amount Per Unit
TE Bond -Backed Construction Loan 23,777,044 349,662
Taxable Construction Loan 7,264,366 106,829
Tax Credit Equity 2,266,208 33,327
AHP 1,250,000 18,382
MHP
IIG 3,981,440 58,551
Land/Building Donation 3,049,990 44,853
Expenses Paid at Conversion to Perm 1,283,580 18,876
GP Contributions
Deferred Dev. Fee -
GP Equity 2,741,000 40,309
TOTAL CONSTRUCTION SOURCES 45,613,628 630,480
PERMANENT SOURCES OF FUNDS Amount Per Unit
TE Bond -Backed Amortizing Loan 4,411,435 64,874
Section 8 Backed Mortgage -
Tax Credit Equity 15,108,056 222,177
AHP 1,250,000 18,382
MHP 12,071,708 177,525
Orange County 3,000,000 44,118
IIG 3,981,440 58,551
DDS Capital -
LandBuilding Donation 3,049,990 44853
GP Contributions
Deferred Dev. Fee -
GP Equity 2,741,000 40,309
TOTAL PERMANENT SOURCES $ 45,613,628 $ 670,789

USES OF FUNDS
Acquisition 3,049,990 44,853
Hard Costs 27,602,445 405,918
Architectural 1,228,309 18,063
Engineering 200,000 2,941
Constr. Int and Fees 2,892,953 42,543
Permanent Financing 89,114 1,311
Legal 165,000 2,426
Reserves 921,709 13,555
Contingencies 2,043,155 30,046
Other Costs 2,054,952 30,220
Developer Costs 5,241,000 77,074
Syndication 125,000 1,838
TOTAL USES 45,613,628 670,789
SURPLUS/GAP $ (0) $ (0)

Page 1 of 7 ends

UNIT MIX
PROJECT NAME: Baker Street
FINANCE TYPE: 4%/IIG/MHP
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
(0)
IMAX RENT (Gross per month; assume 1.5 persons/bdrm) 'His House (non-LIHTC) 1 UNITS AT 81% AMI LIHTC Income Level 15% 30% 40% 50% 60% 80% 90% 110% 120% 130%

AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI
Studio/Efficiency 353 706 941 1,177 1,412 1,883 2,118 2,589 2,824 3,060 1 Bdrm 378 756 1,008 1,261 1,513 2,017 2,269 2,774 3,026 3,278 2 Bdrm 453 907 1,210 1,513 1,815 2,420 2,723 3,328 3,631 3,933 3 Bdrm 524 1,048 1,398 1,748 2,097 2,796 3,146 3,845 4,195 4,544 4 Bdrm 585 1,170 1,560 1,951 2,341 3,121 3,511 4,292 4,682 5,072 His House (non-LIHTC) 1 UNITS AT 81% AMI I
APARTMENT MIX Sq. Ft. 15% 30% 40% 50% 60% 80% 90% 110% 120% 130% # of Apts Per Apt AMI AMI AMI AMI AMI AMI AMI AMI AMI AMI Unit Type Distribution SRO/Efficiency 0 500 0 0 0 0 0 0 0 0 0 0 0.0%
1 Bdrm 27 593 0 17 2 3 5 0 0 0 0 0 39.7%
2 Bdrm 23 893 1 2 3 7 10 0 0 0 0 0 33.8%
3 Bdrm 17 1121 0 2 7 8 0 0 0 0 0 25.0%
4 Bdrm 0 0 0 0 0 0 0 0 0 0 0 0.0%
Manager Unit 1 893 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% 0.0% 0.0% Target Apportionment (hide) 25.0% 30% 45% 0% 0% 0%
target units (hide) 17.0 0 20 30 0 0 0 0 0 0
His House Unit

RENT SCHEDULE SPECIAL NEEDS UNITS / RENT SUBSIDY
Sq. Ft. Sq. Ft. Gross Util Effective Total Percent of Units 19 Income Restriction Unit Type # of Apts Per Apt Total Rent Allow Rent Ann'l Rent # of Apts FMR /Contract Rent Utility Allowance Effective Contract Rent Subsidy PUPM Total Annual Subsidy 30% of AMI SRO/Efficiency - 500 - 706 46 660 - 1,939 46 1,893 - - 1 Bdrm 17 593 10,081 756 62 694 141,576 17 2,113 57 2,056 1,362 277,848 2 Bdrm 2 893 1,786 907 78 829 19,896 2 2,539 106 2,433 1,604 38,496 3 Bdrm - 1,121 - 1,048 98 950 - 3,448 136 3,312 - -
4 Bdrm - - - 1,170 123 1,047 - 3,519 123 3,396 - -
40% of AMI SRO/Efficiency - 500 - 941 46 895 - 1,939 46 1,893 - - 1 Bdrm 2 593 1,186 1,008 62 946 22,704 - 2,113 62 2,051 - - 2 Bdrm 3 893 2,679 1,210 78 1,132 40,752 - 2,539 78 2,461 - - 3 Bdrm 2 1,121 2,242 1,398 98 1,300 31,200 - 3,448 98 3,350 - - 4 Bdrm - - - 1,560 123 1,437 - 3,519 123 3,396 - -
50% of AMI SRO/Efficiency - 500 - 1,177 46 1,131 - 1,939 46 1,893 - - 1 Bdrm 3 593 1,779 1,261 62 1,199 43,164 - 2,113 62 2,051 - - 2 Bdrm 7 893 6,251 1,513 78 1,435 120,540 - 2,539 78 2,461 - - 3 Bdrm 7 1,121 7,847 1,748 98 1,650 138,600 - 3,448 98 3,350 - - 4 Bdrm - - - 1,951 123 1,828 - 3,519 123 3,396 - -
60% of AMI SRO/Efficiency - 500 - 1,412 46 1,366 - 1,939 46 1,893 - - 1 Bdrm 5 593 2,965 1,513 62 1,451 87,060 - 2,113 62 2,051 - - 2 Bdrm 10 893 8,930 1,815 78 1,737 208,440 - 2,539 78 2,461 - - 3 Bdrm 8 1,121 8,968 2,097 98 1,999 191,904 - 3,448 98 3,350 - - 4 Bdrm - - - 2,341 123 2,218 - 3,519 123 3,396 -
His House Unit @ 15% of AMI SRO/Efficiency - 500 - 353 46 307 - 1,939 46 1,893 - - 1 Bdrm - 593 - 378 62 316 - 2,113 62 2,051 - -
2 Bdrm 1 893 893 453 78 375 - 2,539 78 2,461 - -
3 Bdrm - 1,121 - 524 98 426 - 3,448 98 3,350 - -
4 Bdrm - - - 585 123 462 - 3,519 123 3,396 -
Manager Unit 1 893 893 -
TOTAL 68 56,500 $92,662 $5,134 $87,528 $1,045,836 19 135580 316,344 Common/Utility Areas 20,559
TOTAL RES. AREA 77,059 $1,014,612
Other Income
Laundry/Vending Income
Other Income (Enter Here)
Total Other Income

POTENTIAL GROSS INCOME
68 Units $5.00 Month 4,080
4,080
1,366,260

Page 2 of 7 ends

Total
$1,362,180

DEVELOPMENT COSTS
PROJECT NAME: Baker Street
FINANCE TYPE: 4%/IIG/MHP
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: 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
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

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees 1% 43,952
TOTAL OTHER FINANCING 43,952

LEGAL FEES
Constr. Related (includes lender legal) 100,000
Perm. Related (includes lender legal) 65,000
TOTAL LEGAL FEES 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
6 months
5%
10%
605,365
316,344
921,709
1,380,122
663,033
2,043,155
PERMITS & GOV. FEES
school impact fee -
other impact fees $15,000 1,020,000
building permit, plan check, other fees $5,000 340,000
Capital Fees (utility fees & hook-up charges) $2,000 136,000 TOTAL PERMITS & FEES 1,496,000

THIRD PARTY REPORTS
Environmental Reports
Appraisal 15,000
Market Study 15,000
Title/Escrow/Closing 10,000
TOTAL THIRD PARTY REPORTS 40,000

OTHER OWNER COSTS
Financial Consultant 30,000
Cost Cert/Accounting 30,000
Construction Mang./Oversight/Testing 145,000
TOTAL OTHER OWNER COSTS 205,000

MANAGEMENT COSTS
Marketing/Leasing $2,500 170,000
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up) 100,000
TOTAL MANAGEMENT COSTS 270,000
SUBTOTAL 40,247,629

DEVELOPER COSTS
Developer Fee 5,241,000
TOTAL DEVELOPER COSTS 5,241,000
TOTAL SYNDICATION COSTS 125,000
TOTAL PROJECT COST 45,613,628

Page 4 of 7 ends

PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

OPERATING BUDGET
Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California
Units 68
PAYROLL/PAYROLL TAXES Yearly Expense PUPA
Admin Payroll 128,790 1,894
Operations and Maintenance Payroll 106,718 1,569
Other Personnel Expenses 3,100 46
Taxes and Benefits 58,877 866
TOTAL PAYROLL EXPENSES 297,485 4,375

ADMINISTRATIVE EXPENSE
Administrative Expenses 28,568 420
Advertising 680 10
Marketing -
Audit Fees 14,892 219
Bookkeeping and Accounting Fee 7,752 114
TOTAL ADMINISTRATIVE EXPENSE 51,892 763

UTILITIES EXPENSES
Electricity 17,903 263
Water 16,116 237
Gas 12,784 188
Sewer 5,984 88
Other
TOTAL UTILITIES EXPENSES 52,787 776

OPERATING AND MAINTENANCE
Operating Contracts 50,585 744
Operating Supplies -
Garbage/Trash Removal 10,000 147
HVAC Repairs &Contracts
Maintenance Contracts
Maintenance Supplies
Maintenance Equip. & Tools
Other
TOTAL OPERATING EXPENSES 60,585 891
REAL ESTATE TAXES 10,000 147
INSURANCE 136,000 1,200
RESIDENT SERVICES 124,987 1,838
MANAGEMENT FEE 48,960 720
TOTAL OPERATING BUDGET 782,696 11,510

Page 5 of 7 ends

PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

First Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount
Section 8 Mortgage Terms
Rate
Amortization
Term
Minimum DSCR
Maximum Debt Service
Maximum Loan Amount
Actual Loan Amount
Baker Street
4%/IIG/MHP
Baker St
Family with PSH
Orange
Mercy Housing California

6.75%
30 30

1.15 343,350
$4,411,435
$4,411,435

6.75%
15 15

1.15 $0
$0

FINANCING
Construction
45,613,628
23,777,044

52.1%
18 50%

7.0%
1,248,295
Lease-up/Conversion
CDLAC Allocation Test
23,777,044 Total Limit
$43,230,989 Passes?
55%
Yes
396,888
457,608
552,000
706,560
787,152
552,000
Nage b or i
23,777,044
4 100%

7.0%
554,798
38,894,000
# of units
0 27
23 17
0 1
68 20%
10%
2%
2%
10%
15%
10%
0%
0%
93%
0%
0%
100%
0%

4.00%

0.94 Taxable Tail
45,613,628
7,264,366

15.9%
18 50%

7.0%
381,379
Lease-up/Conversion
Constr/Rehab
7,264,366
Total
4 100%

7.0%
169,502 2,353,974
40,180,999
40,180,999
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
40,180,999
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

0.00 0
15,108,056
Acquisition

CASH FLOW
PROJECT NAME: Baker Street
FINANCE TYPE: 4%/IIG/MHP
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
Inflation Initial Year
POTENTIAL GROSS INCOME Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11 Resident Rent - Conventional 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 Resident Rent - Special Needs 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 Rent Subsidy 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 Other Income 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 POTENTIAL GROSS INCOME 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

VACANCY LOSS
Resident - Conventional 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) Resident - Special Needs 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) Rent Subsidy 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) Commercial 25.0% - - - - - - - - - - - - -
Total Vacancy Loss (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) EFFECTIVE GROSS INCOME 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 OPERATING EXPENSES 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) NET OPERATING INCOME 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

RESERVES
Replacement Reserve (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) Operating Reserve -
Total Reserve Deposits (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) INCOME BEFORE DEBT SERVICE 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 DEBT SERVICE 1.16 1.18 1.19 1.20 1.21 1.22 1.23 1.23 1.24 1.25 1.25 First Mortgage (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) HCD/Other Debt Service (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) Bond Monitoring Fee
Total Debt Service (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) NET CASH FLOW 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 11 Pro Forma

SOURCES AND USES
PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
CONSTRUCTION SOURCES OF FUNDS Amount Per Unit % of TDC
Bank Construction Loan 18,576,356 464,409 71%
N/A - - 0%
Tax Credit Equity 2,068,495 51,712 8%
AHP 780,000 19,500 3%
MHP 0%
0 - - 0%
IIG 2,371,354 59,284 9%
Land/Building Donation 1,596,648 39,916 6%
Expenses Paid at Conversion to Perm 769,025 19,226 3%
GP Contributions
Deferred Dev. Fee - - 0%
GP Equity - - 0%
TOTAL CONSTRUCTION SOURCES 26,161,878 654,047 100%
PERMANENT SOURCES OF FUNDS Amount Per Unit % of TDC
Conventional Amortizing Loan 5,073,909 126,848 19%
Section 8 Backed Mortgage - - 0%
Tax Credit Equity 13,789,967 344,749 53%
AHP 780,000 19,500 3%
MHP - 0%
Orange County 2,550,000 63,750 10%
- 0%
IIG 2,371,354 59,284 9%
DDS Capital - 0%
Land/Building Donation 1,596,648 39916 6%
GP Contributions
Deferred Dev. Fee - 0%
GP Equity - - 0%
TOTAL PERMANENT SOURCES $ 26,161,878 $ 654,047 100%

USES OF FUNDS
Acquisition 1,596,648 39,916 6.1%
Hard Costs 16,097,947 402,449 61.5%
Architectural 716,359 17,909 2.7%
Engineering 200,000 5,000 0.8%
Constr. Int and Fees 1,700,149 42,504 6.5%
Permanent Financing 95,739 2,393 0.4%
Legal 100,000 2,500 0.4%
Reserves 703,826 17,596 2.7%
Contingencies 1,226,130 30,653 4.7%
Other Costs 1,400,081 35,002 5.4%
Developer Costs 2,200,000 55,000 8.4%
Syndication 125,000 3,125 0.5%
TOTAL USES 26,161,878 654,047 100.0%
SURPLUS/GAP $ 0 $ 0

Page 1 of 8 ends

UNIT MIX
PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
IMAX RENT (Gross per month; assume 1.5 persons/bdrm) 1 UNITS AT 81% AMI LIHTC Income Level 30% 40% 50% 60% 80% 15% 110% 120% 130%

AMI AMI AMI AMI AMI AMI AMI AMI AMI

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

AMI AMI AMI AMI AMI AMI AMI AMI AMI
Studio/Efficiency 706 941 1,177 1,412 1,883 353 2,589 2,824 3,060 1 Bdrm 756 1,008 1,261 1,513 2,017 378 2,774 3,026 3,278 2 Bdrm 907 1,210 1,513 1,815 2,420 453 3,328 3,631 3,933 3 Bdrm 1,048 1,398 1,748 2,097 2,796 524 3,845 4,195 4,544 4 Bdrm 1,170 1,560 1,951 2,341 3,121 585 4,292 4,682 5,072 UNITS AT 81% AMI
APARTMENT MIX Sq. Ft. 30% 40% 50% 60% 80% 15% 110% 120% 130% # of Apts Per Apt AMI AMI AMI AMI AMI AMI AMI AMI AMI Unit Type Distribution SRO/Efficiency 0 500 0 0 0 0 0 0 0 0 0 0.0%
1 Bdrm 12 593 9 0 3 0 0 0 0 0 30.0%
2 Bdrm 15 893 8 2 5 0 0 0 0 37.5%
3 Bdrm 12 1018 2 10 0 0 0 0 0 30.0%
4 Bdrm 0 0 0 0 0 0 0 0 0 0 0.0%
Manager Unit 1 893 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

SPECIAL NEEDS UNITS / RENT SUBSIDY
Sq. Ft. Sq. Ft. Gross Util Effective Total Percent of Units 17 Income Restriction Unit Type # of Apts Per Apt Total Rent Allow Rent Ann'1 Rent # of Apts FMR /Contract Rent Utility Allowance Effective Contract Rent Subsidy PUPM Total Annual Subsidy 30% of AMI SRO/Efficiency - 500 706 46 660 - 1,939 46 1,893 - 1 Bdrm 9 593 5,337 756 62 694 74,952 9 2,113 62 2,051 1,357 146,556 2 Bdrm 8 893 7,144 907 78 829 79,584 8 2,539 106 2,433 1,604 153,984 3 Bdrm - 1,018 1,048 98 950 - 3,448 136 3,312
4 Bdrm - - 1,170 123 1,047 - 3,519 123 3,396
40% of AMI SRO/Efficiency - 500 941 46 895 - 1,939 46 1,893 1 Bdrm - 593 1,008 62 946 - 2,113 62 2,051
2 Bdrm - 893 1,210 78 1,132 - 2,539 78 2,461
3 Bdrm - 1,018 1,398 98 1,300 - 3,448 98 3,350
4 Bdrm - - 1,560 123 1,437 - 3,519 123 3,396
50% of AMI SRO/Efficiency - 500 1,177 46 1,131 - 1,939 46 1,893 1 Bdrm - 593 1,261 62 1,199 - 2,113 62 2,051
2 Bdrm 2 893 1,786 1,513 78 1,435 34,440 - 2,539 78 2,461 3 Bdrm 2 1,018 2,036 1,748 98 1,650 39,600 - 3,448 98 3,350 4 Bdrm - - 1,951 123 1,828 - 3,519 123 3,396
60% of AMI SRO/Efficiency 500 1,412 46 1,366 - 1,939 46 1,893 - 1 Bdrm 3 593 1,779 1,513 62 1,451 52,236 - 2,113 62 2,051 - 2 Bdrm 5 893 4,465 1,815 78 1,737 104,220 - 2,539 78 2,461 - 3 Bdrm 10 1,018 10,180 2,097 98 1,999 239,880 - 3,448 98 3,350 - 4 Bdrm - - 2,341 123 2,218 - 3,519 123 3,396 -
Manager Unit
TOTAL
Common/Utility Areas
TOTAL RES. AREA
Other Income
Laundry/Vending Income
Other Income (Enter Here)
Total Other Income

POTENTIAL GROSS INCOME
1 40
893 893
33,620 $55,166 $3,090 $52,076 $624,912 17 135580
25% 11,207
44,827 $1,014,612
40 Units $5.00 Month 2,400
2,400
927,852

Page 2 of 8 ends

300,540
Total
$925,452

DEVELOPMENT COSTS
PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: 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
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

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees 4% 75,081
TOTAL OTHER FINANCING 75,081

LEGAL FEES
Constr. Related (includes lender legal) 50,000
Perm. Related (includes lender legal) 50,000
TOTAL LEGAL FEES 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
6 months
5%
10%
403,286
300,540
703,826
804,897
421,233
1,226,130
PERMITS & GOV. FEES
school impact fee -
other impact fees $15,000 600,000
building permit, plan check, other fees $5,000 200,000
Capital Fees (utility fees & hook-up charges) $2,000 80,000 TOTAL PERMITS & FEES 880,000

THIRD PARTY REPORTS
Environmental Reports
Appraisal 15,000
Market Study 15,000
Title/Escrow/Closing 10,000
TOTAL THIRD PARTY REPORTS 40,000

OTHER OWNER COSTS
Financial Consultant 30,000
Cost Cert/Accounting 30,000
Construction Mang./Oversight/Testing 145,000
TOTAL OTHER OWNER COSTS 205,000

MANAGEMENT COSTS
Marketing/Leasing $2,500 100,000
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up) 100,000
TOTAL MANAGEMENT COSTS 200,000
SUBTOTAL 23,836,878

DEVELOPER COSTS
Developer Fee 2,200,000
TOTAL DEVELOPER COSTS 2,200,000

TOTAL SYNDICATION COSTS

TOTAL PROJECT COST

GRAND TOTAL DEVELOPMENT COSTS

Page 4 of 8 ends

125,000
26,161,878
$26,161,878 11

PROJECT NAME:

FINANCE TYPE:

HOUSING TYPE:

ADDRESS:

COUNTY:

SPONSOR:

OPERATING BUDGET
Baker Street
9%/IIG
Baker St
Family with PSH
Orange
Mercy Housing California
Units 40
PAYROLL/PAYROLL TAXES Yearly Expense PUPA
Admin Payroll 49,000 1,225
Operations and Maintenance Payroll 47,350 1,184
Other Personnel Expenses 3,100 78
Taxes and Benefits 24,088 602
TOTAL PAYROLL EXPENSES 123,538 3,088

ADMINISTRATIVE EXPENSE
Administrative Expenses 21,180 530
Advertising 400 10
Marketing -
Audit Fees 8,760 219
Bookkeeping and Accounting Fee 4,560 114
TOTAL ADMINISTRATIVE EXPENSE 34,900 873

UTILITIES EXPENSES
Electricity 10,696 267
Water 9,480 237
Gas 7,520 188
Sewer 3,520 88
Other -
TOTAL UTILITIES EXPENSES 31,216 780

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

TOTAL OPERATING EXPENSES
36,220
7,000
906
175
43,220 1,081
REAL ESTATE TAXES 5,000 125
INSURANCE 80,000 2,000
RESIDENT SERVICES 65,000 1,625
MANAGEMENT FEE 28,800 720
TOTAL OPERATING BUDGET 411,674 10,292

Page 5 of 8 ends

PROJECT NAME:

FINANCE TYPE:

ADDRESS:

HOUSING TYPE:

COUNTY:

SPONSOR:

6.25%
30 30

1.15 374,891
$5,073,909
$5,073,909

6.25%
15 15

1.15 $0
$0

FINANCING
Construction Lease-up/Conversion Taxable Tail Lease-up/Conversion 26,161,878 26,161,878
18,576,356 18,576,356

71.0% 0.0%
18 4 18
50% 100% 50%

6.8% 6.8% 6.8%
947,394 421,064 0
CDLAC Allocation Test
- Total Limit
$24,396,845 Passes?
0%
Yes
396,888
457,608
552,000
706,560
787,152
552,000
Hage borts
22,897,500
# of units
0 12
15 12
0 1
40 20%
10%
2%
2%
10%
15%
10%
0%
0%
97%
0%
29%
100%
0%

9.00%

0.94 Constr/Rehab
Total
4 100%

6.8%
0 1,368,458
22,800,197
22,800,197
Basis
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
32,522,822
22,800,197
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
0 0.00
0 13,789,967
Acquisition
0 0
0 6,500,000

9.00%
0 0

0.94 0

CASH FLOW
PROJECT NAME: Baker Street
FINANCE TYPE: 9%/IIG
ADDRESS: Baker St
HOUSING TYPE: Family with PSH
COUNTY: Orange
SPONSOR: Mercy Housing California
Inflation Initial Year
POTENTIAL GROSS INCOME Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11 Resident Rent - Conventional 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 Resident Rent - Special Needs 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 Rent Subsidy 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 Other Income 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 POTENTIAL GROSS INCOME 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

VACANCY LOSS
Resident - Conventional 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) Resident - Special Needs 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) Rent Subsidy 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) Commercial 25.0% - - - - - - - - - - - - -
Total Vacancy Loss (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) EFFECTIVE GROSS INCOME 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 OPERATING EXPENSES 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)

GROUND LEASE PAYMENTS
NET OPERATING INCOME 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

RESERVES
Replacement Reserve (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) Operating Reserve - -
Total Reserve Deposits (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)

INCOME BEFORE DEBT SERVICE
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 DEBT SERVICE 1.15 1.17 1.19 1.21 1.23 1.25 1.27 1.29 1.30 1.32 1.34 First Mortgage (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) HCD/Other Debt Service - - - - - - - -
Bond Monitoring Fee
Total Debt Service (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) NET CASH FLOW 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
Zhou, Fongkok Mercy Housing California
Sowary, Seku Mercy Housing Management Group Inc.

Melton, Denise Mercy Housing Management Group Inc.

Freeman, Sherri Mercy Housing Management Group Inc.

Helms, Ellen Mercy Housing Management Group Inc.

Bridgeman, Evian Mercy Housing Management Group Inc.

Smith, Tanya Mercy Housing Management Group Inc.

Thompson, Laleana Mercy Housing Management Group Inc.

Brown,Jalilah Mercy Housing Management Group Inc.

McDonald, Lonnie Mercy Housing Management Group Inc.

Green, Rodney, Sr. Mercy Housing Management Group Inc.

Kaapa, Michael John and Michael Charles Mercy Housing Management Group Inc.

Thomas, Erinn Mercy Housing Management Group Inc.

Brown -Blackwell, Daisha Mercy Housing Management Group Inc.

Estate of Joseph Finley, et al Mercy Housing Management Group Inc.

Hall, Veda Mercy Housing Management Group Inc.

Williams, Helene Mercy Housing Management Group Inc.

Him, Than Mercy Housing Management Group Inc.

Gamble, Suzanne Mercy Housing Management Group Inc.

Trombello, Linda Mercy Housing Management Group Inc.

Provencio, Peter Mercy Housing Management Group Inc.

Champion, Robin Mercy Housing Management Group Inc.

Glasby, Calvin, et al Mercy Housing Management Group Inc.

Geran, Jo Ann Mercy Housing Management Group Inc.

Hernandez,Deissy Mercy Housing Management Group Inc.

Lee, Laura Mercy Housing Management Group Inc.

Wade, Jamie Mercy Housing Management Group Inc.

Huggins, Alana Mercy Housing Management Group Inc.

Siegfried, Deb and Tom Mercy Housing Management Group Inc.

Najarro, Norma Mercy Housing California
Ogletree, Deborah Mercy Housing Management Group Inc.

DeAnda, Sophia Mercy Housing Management Group Inc.

Thomas, Chanel Mercy Housing Management Group Inc.

Peterson,Adriel Mercy Housing Management Group Inc.

White, Andrea Mercy Housing Management Group Inc.

Miller, William Edward Mercy Housing Management Group Inc.

Spivey -Washington, Tearra Mercy Housing Management Group Inc.

Penson, Laura Mercy Housing Management Group Inc.

Joseph, Alice Mercy Housing Management Group Inc.

McAdams, Dwight Mercy Housing Management Group Inc.

Roberts, Bailey (class action) Mercy Housing Management Group Inc.

Simmons, Dorothy Mercy Housing Management Group Inc.

Williams, Helene Mercy Housing Management Group Inc.

Spotted Elk, Juanita Mercy Housing Management Group Inc.

Truninger-Hanley, Alecsandra Mercy Housing Management Group Inc.

Ferguson, Star Mercy Housing Management Group Inc.

Howard, Raymond Mercy Housing Management Group Inc.

Bowers, Lori Mercy Housing Management Group Inc.

Carradine, Chanelle Mercy Housing Management Group Inc.

Cobb, Linda Mercy Housing Management Group Inc.

Booker, Nancy Ann Mercy Housing Management Group Inc.

Gabriel, Emma Mercy Housing Management Group Inc.

Johnson, Derrick Mercy Housing Management Group Inc.

Hunt, Jeron Mercy Housing Management Group Inc.

Hollenbeck, Mark Mercy Housing Management Group Inc.

Pulera, Mary Kay Mercy Housing Management Group Inc.

Digby, Charles and Carrie Mercy Housing Management Group Inc.

Brown, Rosen Js parent forlyrik Brown Mercy Housing Management Group Inc.

Castex, Regina d Mercy Housing Management Group Inc.

Djandu, Julie & Poku, Kwasi
O'Shea, Susan
Dlamini, Hope
Ford, Kamil
Cheeks,Theris
McClendon, Cheri
McLendon, Cheri
Cooper, Felicity
Palacol, Celestino
Cambs, Lewis
Smith, Tanya
Palomo, Bertha Isabel
Smith, Tanya
Shaw, Winne!!
Jordan, Ricky
Jointer, Cheryl
Parker, Kimberly
Carradine, Chanelle
Woods, Stephanie
Souza, Eli
Schiro, Danisha
Beckwith, Lacoria
Doss, Brenda
1075 Market Street Owners' Association
Mercy Housing Management Group Inc.

Mercy Housing Management Group Inc.

Mercy Housing California
Mercy Housing Management Group Inc.

Mercy Housing California
Merry Housing California
Merry Housing California
5/23/2022 Premises Liability
6/9/2020 Housing
Hou i g ent
4/28/2016 Employment
8/27/2018 Housing
8/13/2021 Housing
7/29/2021 Housing
6/27/2022 Housing
11/25/2019 Employment
8/23/2022 Housing
8/15/2019 Housing
7/21/2017 Negligence
6/21/2022 Premises Liability
3/7/2022 Premises Liability
4/19/2021 Negligence
4/7/2021 Employment
11/28/2017 Housing
12/27/2017 Housing
8/25/2017 Housing
9/11/2017 Housing
10/26/2017 Housing
1/23/2018 Housing
5/1/2017 Housing
4/26/2018 Housing
8/21/2017 Housing
6/4/2018 Housing
3/19/2018 Employment
6/4/2018 Housing
8/11/2016 Other
8/21/2017 Premises Liability
9/9/2016 Premises Liability
5/14/2018 Housing
Breach of Contract
5/11/2018 Housing
3/6/2019 Housing
3/18/2019 Housing
6/25/2018 Housing
11/28/2018 Negligence
7/26/2017 Housing
5/23/2019 Housing
11/17/2016 Employment
6/25/2019 Housing
11/19/2018 Housing
7/5/2018 Housing
10/28/2019 Employment
2/4/2019 Premises Liability
7/24/2019 Employment
3/10/2020 Housing
6/25/2020 Housing
3/27/2020 Employment
8/31/2020 Housing
10/1/2018 Housing
Employment
7/13/2020 Housing
5/24/2018 Negligence
2/11/2020 Housing
1/11/2021 Housing
12/21/2017 Other
5/7/2020 Employment
11/fl(jj1Jp Employment
5/17/OM2/1 Housing
6/2/2021 Employment
10/12/2020 Housing
10/27/2020 Housing
7/7/2020 Employment
7/7/2020 Employment
2/18/2021 Housing
11/9/2020 Housing
10/21/2020 Housing
3/16/2020 Negligence
Employment
8/19/2021 Housing
10/21/2020 Housing
7/22/2021 Employment
11/23/2020 Employment
11/12/2020 Other
4/12/2021 Housing
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8/10/2021 Housing
1/5/2022 Housing
10/2/2020 Other
11/16/2021 Housing
11/15/2019 Code Violation
Superior Court
Superior Court
Superior Court
City of Chicago
Superior Court of California
San Francisco Human Rights Commission
Chicago Crp/nmission 01 Human Relations
San Francisco Human Rights Commission
DFEH
DFEH
San Francisco Human Rights Commission
U.S. District Court, N. District of CA
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District Court
Georgia State Court
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EEOC
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Colorado Civil Rights Division
US District Court Northern District of California
HUD
DFEH
Wisconsin Equal Rights Division
City of Tacoma
DFEH
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Superior Court
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DFEH
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DFEH
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HUD
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HUD
Illinois Department of Human Rights
Seattle Office for Civil Rights
Colorado Civil Rights Division
District Court
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Iowa Civil Rights Commission
DFEH
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DFEH
San Francisco Human Rights Commission

US DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
HUD
Superior Court
Wisconsin Department of Workforce Development
HUD
State Court
DFEH
Washington Human Rights Commission
HUD
EEOC
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EEOC
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DFEH
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District Court
San Francisco CGC-22-599734 5/20/2022 No Open
San Francisco CGC-20-584533 5/21/2020 No Open
San Francisco CgC-18-568984 8/17/2018 No Open
20-H-46 7/22/2020 No Open
34-2015-00184209 9/14/2015 No Open
FY19-H-003 8/27/2018 No Open
21-8-62 8/13/2021 No Open
FY22-H-001 7/29/2021 No Open .11
202204-16611405 6/9/2022 No Open
201908-07344427 11/5/2019 No Open
FY23-H-001 8/23/2022 No Open
18-4888 8/11/2018 Yes Open
S4CV1701205 7/18/2017 Yes Open
1220001051 2/11/2022 Yes Open
ga-30032-5955 1/3/2022 Yes Open
21 L 003295 Yes Open
480-2020-04460 3/30/2021 No Closed 2/1/2023
2018CH0911 11/14/2017 Closed 4/6/2018
4842 12/18/2017 Closed 5/11/2018
874256-283889 8/14/2017 Closed 5/24/2018
2018CH0291 8/28/2017 Closed 5/29/2018
892349-291388 10/3/2017 Closed 5/30/2018
FH2018391360 1/23/2018 Closed 5/31/2018
4:17-cv-2153 DMR 4/19/2017 Closed 7/3/2018
09-18-2305-8 4/19/2018 Closed 7/24/2018
935222-299218 7/31/2017 Closed 8/3/2018
CR201801518 5/30/2018 Closed 8/6/2018
4843 3/12/2018 Closed 8/23/2018
201801-00873822 5/30/2018 Closed 9/4/2018
2016-006124 8/11/2016 Closed 9/11/2018
17CIV03369 7/26/2017 Closed 11/8/2018
16a61408 9/6/2016 Closed 11/21/2018
201805-02254115 5/14/2018 Closed 12/5/2018
5tcv1800435 3/14/2018 Closed 12/27/2018
DAV H6(27223) 05102018 5/10/2018 Closed 2/21/2019
201903-05309401 3/6/2019 Closed 3/15/2019
TOLH6 27731 12272018 12/28/2018 Closed 5/13/2019
2018CH2525 6/8/2018 Closed 5/29/2019
1:18-cv-04540 Closed 6/13/2019
FY18-H-001 7/13/2017 Closed 7/16/2019
09-19-6720 5/23/2019 Closed 8/7/2019
2016ch14905 11/15/2016 Closed 1/9/2020
Inquiry #584469 6/25/2019 Closed 1/24/2020
2019CH0633 11/7/2019 Closed 2/25/2020
2018 -00952 -HO 7/5/2018 Closed 3/30/2020
324-2020-00058 10/14/2019 Closed 5/26/2020
Denver County 2019cv30398 2/1/2019 Closed 5/27/2020
2020CF0071 & 2020CN0072 7/19/2019 Closed 6/4/2020
03-20-74829 2/12/2020 Closed 8/6/2020
202005-10166114 5/13/2020 Closed 8/11/2020
440-2020-03796 3/27/2020 Closed 8/26/2020
201912-08542610 8/25/2020 Closed 10/14/2020
FY19-H-006 10/1/2018 Closed 10/20/2020
4:198-cy-00531ST Closed 10/27/2020
04-20-2470-8 7/7/2020 Closed 11/19/2020
18-201004 37 5/17/2018 Closed 12/11/2020
CR202000327 1/30/2020 Closed 1/25/2021
04/21/4689/8 12/16/2020 Closed 3/24/2021
17a67239 12/5/2017 Closed 3/31/2021
202001-08831909 4/29/2020 Closed 4/7/2021
34HR-0157-20-1 6/15/2020 Closed 4/23/2021
09-21-5302-8 4/21/2021 Closed 5/17/2021
410-2021-02661 6/2/2021 Closed 6/22/2021
2-20/21-9-3626-8 9/28/2020 Closed 7/16/2021
8-2-21-030 10/17/2020 Closed 7/22/2021
550-2020-00730 5/16/2020 Closed 7/30/2021
550-2020-00730 7/7/2020 Closed 7/30/2021
82100011159 2/8/2021 Closed 8/12/2021
202005-10237123 10/29/2020 Closed 9/3/2021
2020 -01291 -HO 10/14/2020 Closed 10/19/2021
CGC-20-582275 1/17/2019 Closed 10/20/2021
20-2-16942-1 Closed 10/27/2021
202104-13344323 8/19/2021 Closed 11/1/2021
04-21-3815-8 10/7/2020 Closed 11/5/2021
CAS -2021-00275 7/19/2021 Closed 12/2/2021
440-2021-00246 11/23/2020 Closed 12/28/2021
20883301 11/10/2020 Closed 1/13/2022
202102-12534105 4/7/2021 Closed 2/17/2022
21-0518-006-8 5/26/2021 Closed 2/24/2022
27HFS-0420-20-1 Closed 2/25/2022
82200014279 12/27/2021 Closed 3/8/2022
cgc 20-586127 8/21/2020 Closed 3/24/2022
CRD -2021-1017 11/17/2021 Closed 3/29/2022
San Francisco 3:19-cv-7313 11/6/2019 Closed 4/21/2022
Sacramento
Chatham
Douglas
Dekalb
Cook
Alameda County
Maricopa
San Mateo
Dekalb
Chatham
San Francisco
Cook

OAKLAND
Whatcom
Dekalb County
San Francisco
King
Dekalb
San Francisco

Fuller, Michael Mercy Housing Management Group Inc. 2/27/2021 Employment EEOC Wilson, Sharon Mercy Housing Management Group Inc. 6/14/2021 Housing Illinois Department of Human Rights Rivera, Rebecca Mercy Housing Management Group Inc. 3/2/2022 Housing Colorado Civil Rights Division Ramirez, Mario Mercy Housing California 12/5/2019 Premises Liability Superior Court Morrow, Daniel&Jessica Mercy Housing Management Group Inc. 4/26/2022 Housing Washington State Human Rights Commission Khaton, Jasmine Mercy Housing Management Group Inc. 9/22/2021 Housing DFEH Tucker, Alison Mercy Housing Management Group Inc. 5/16/2022 Employment EEOC Gary Mitchell Mercy Housing Management Group Inc. Employment Burgos, Luz Mercy Housing Management Group Inc. 10/15/2021 Employment DFEH Clark, Tanecia Mercy Housing Management Group Inc. 1/23/2017 Negligence Superior Court Gary D. Nelson Associates, Inc. Mercy Housing Management Group Inc. Breach of Contract Superior Court Skochko, Sydney Mercy Housing Management Group Inc. Mercy Housing California Housing U.S District Court White, Christine Mercy Housing Management Group Inc. 4/25/2022 Housing HUD Burgos, Luz Mercy Housing Management Group Inc. 1/19/2022 Employment superior court Perry, Russell Mercy Housing Management Group Inc. 5/27/2022 Housing Nebraska EOC Booker, Nancy Ann Mercy Housing Management Group Inc. Mercy Housing California 6/11/2020 Housing US District Court Heath, Ebonee Mercy Housing Management Group Inc. 5/11/2022 Housing HUD Lee, Elliott Mercy Housing Management Group Inc. 4/21/2022 Housing DFEH Dover -Andrews, Candis Mercy Housing Management Group Inc. 8/31/2022 Housing Washington State Human Rights Commission Tanner, Ana Mercy Housing California 1/13/2022 Other Superior court Yglesias, April Mercy Housing California Negligence Superior Court Andereson, Brenda Mercy Housing California 10/20/2016 Housing Superior Court City of Oakland Mercy Housing California Other
Hendricks, Martine Mercy Housing California Housing Superior Court Dunn, Sienna Mercy Housing Management Group Inc. 5/16/2018 Breach of Contract Superior Court Skochko, Sydney Mercy Housing Management Group Inc. Mercy Housing California 8/9/2019 Housing Superior Court Brown, Tiffany Mercy Housing Management Group Inc. 5/13/2014 Housing HUD Jones, Jacqueline Mercy Housing Management Group Inc. 5/16/2013 Premises Liability Magistrate Court of Chatham County Mitchell, Gary Mercy Housing Management Group Inc. 3/26/2020 Employment Washington State Human Rights Comm McBride, Paris Mercy Housing Management Group Inc. 4/16/2014 Employment Superior Court Arnold, Michael et al Mercy Housing Management Group Inc. 3/27/2019 Premises Liability Circuit Court Hess, Jon Mercy Housing Management Group Inc. 2/19/2021 Housing Superior Court Kilisi, Siotalima Mercy Housing Management Group Inc. 7/26/2021 Housing HUD Cruz, Reina Zuniga et al Mercy Housing California 6/13/2019 Other Superior Court Hemphill, Roosevelt Mercy Housing California 1/4/2021 Negligence Superior Court Taylor, William Mercy Housing Management Group Inc. 7/5/2018 Housing Indiana Civil Rights Commission Frazier, Rodney et al Mercy Housing Management Group Inc. 8/13/2010 Premises Liability Superior Court Lewis, Michael Mercy Housing Management Group Inc. 1/13/2010 Premises Liability Superior Court Robbins, Milton Mercy Housing Management Group Inc. 12/4/2019 Premises Liability Superior Court ion
San Francisco
King
Sacramento
Sacramento
Los Angeles
Oakland
San Francisco
Alameda
San Francisco
Alameda County
Alameda
San Francisco
Alameda
Chatham
Alameda
Cook County
San Francisco
San Francisco
San Francisco
Sacramento
San Francisco
Floyd County
555-2021-00507 2/27/2021 Closed 4/27/2022
2021CH1525 5/5/2021 Closed 5/18/2022
H2200014796 3/2/2022 Closed 5/19/2022
CGC-19-580351 11/4/2019 Closed 6/28/2022
31HD-0124-21-2 4/18/2022 Closed 8/2/2022
202104-13416830 9/16/2021 Closed 8/10/2022
440-2022-05766 5/16/2022 Closed 8/16/2022
2:22 -cc -00479 -JCC -IRC 3/14/2022 Closed 9/20/2022
202104-13422230 10/12/2021 Closed 9/20/2022
34-2015-00195787 6/10/2016 Closed 10/17/2022
33 2o1 --p p9/0 -CU -PO -GDS 9/9/2021 Closed 11/1/2022
Closed 11/4/2022
10-22-8718-8 4/21/2022 Closed 11/7/2022
218mcv01933 12/15/2021 Closed 11/15/2022
NEB 2-21/22-5-3735-H 5/24/2022 Closed 11/28/2022
4:20-cv-03777-KAW 6/10/2020 Closed 12/13/2022
Inquiry P680114 4/22/2022 Closed 1/23/2023
202112-15651616 4/9/2022 Closed 1/23/2023
17HD-0020-22-3 7/7/2022 Closed 2/24/2023
CSG -21-596406 11/29/2021 No Closed 10/24/2022
18915622 8/6/2018 ClosedMI
CGC 16-554248 10/3/2016 Closed
rg21086119 1/20/2021 ClosedII
RG19017026 4/30/2019 Closed
CGC-18-566429 5/9/2018 Closed
RG19027714 No Closed 1/29/2023
09-14-0705-8 and 09-14-0705-4 5/12/2014 Closed
MGCV1305863 5/2/2013 Closed
551-2020-01317 3/26/2020 Closed
RG14721287 Closed
20191_003067 3/21/2019 Closed
CAC - 21-588740 1/7/2021 No Closed 2/17/2023
09-21-6171-8 7/19/2021 Closed
570252 5/13/2019 Yes Closed 7/28/2022
cgc-20-588453 12/16/2020 Yes Closed 1/18/2023
Hose18060318 6/6/2018 Yes Closed 11/13/2018
34-2010-00079642 6/4/2010 Closed
CAC -10-495777 1/5/2010 Closed
19CV024861FL002 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 ill,mercyHousING
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.

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. •
mercyHousING
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
Live in Hope

Page 21 of 30 ends

MHC Project Profiles

PROJECT PROFILE
Placentia Veterans Village
1945 East Veterans Way
Placentia, CA 92870
Developer Role
Current Project Status
Type of Project
Total Number of Residential Units
Unit Mix
Total Residential Square Footage
Population(s) Served
Construction Type
Construction Start Date
Construction Completion Date
Total Development Cost
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
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. *mercy HOUSING
Managing General Partner
Complete
Veterans Housing
50 units
45 1 -BR 1 5 2 -BR
30,770 sf
Formerly Homeless Veterans
Type V (wood)
December 2018
June 2020
$23,933,037
Entity: CCRC
Type: Permanent Loan
Contact: Andy Chan
[email protected], 818-844-3317
Entity: Orange County
Type: Ground Lease, Permanent Financing
Contact: Julia Bidwell
[email protected]
PROJECT PROFILE °mercy HOUSING

Baldwin Rose Apartments
El Monte, CA
Developer Role
Current Project Status
Type of Project
Total Number of Residential Units
Unit Mix
Total Residential Square Footage
Population(s) Served
Construction Type
Construction Start Date
Construction Completion Date
Total Development Cost
Financing Sources
Entity: City of El 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]
General Partner/Developer, Owner
Completed
Family housing, set-aside for homeless veterans
55 units
16 1 -BR 121 2 -BR 1 18 3 -BR
84,820 sf
Families, Veterans, 30-60% AMI
Type V (wood)
December 2017
December 2019
$32,704,572
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
Veterans Villas at San Antonio Drive
Norwalk, CA
Current Project Status
Developer Role
Type of Project
Total Number of Residential Units
Unit Mix
Total Square Footage
Population Served
Construction Start Date
Construction Completion Date
Total Development Cost
Financing Sources
Entity: NEF
Type: 9% Equity
Todd Fabian
213-479-4602, [email protected]
Entity: Silicon Valley Bank
Type: Construction, Permanent Loan, FHLB AHF
Deborah Koski
510-375-2089, [email protected]
Narrative
'mercy HOUSI NG
IN
Mr TX%
11 I I [ 1 1 r 1 1
!' 1 nr',-' .J T gRa
i r+k 1.l r'.

In Construction
Managing General Partner
Family Rental
60 1 BR: 20 12 BR: 24 13 BR: 15
93,686 sf
Families earning between 20% - 50% AMI, Veterans
January 2023
Anticipated October 2024
$40,191,730
Entity: City of Norwalk
Type: Land Donation, Construction Loan, Permanent Loan
Jesus Gomez
562-929-5745, [email protected]
Entity: California Department of Housing and Community
Development, Multifamily Housing Program, Veterans Housing and Homelessness Prevention Program
Type: Permanent Loan
Siyao (Becky) Mo
[email protected]
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 EI Monte.

PROJECT PROFILE
41PmercyHousi

Camino del Mar
Los Angeles, CA
Current Project Status
Developer Role
Type of Project
Total Number of Residential Units
Unit Mix
Total Square Footage
Population Served
Construction Start Date
Construction Completion Date
Total Development Cost
Financing Sources
Entity: US Bank
Type: 4% Equity
Contact: Christina LaGorio
[email protected], 303-585-4038
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.

Complete
Managing General Partner
Family Rental
88 1 BR: 12 1 2 BR: 24 1 3 BR: 55
83,674 sq. ft.

Families earning between 30% - 50% AMI
September 2016
October 2018
$36,289,334
Entity: Citibank
Type: Construction Loan and Permanent Loan
Contact: Brian Dale
Brian.dale@ citi.com, 303-308-7403
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
West Beamer Place
Woodland, CA
Current Project Status
Developer Role
Type of Project
Total Number of Residential Units
Unit Mix
Total Square Footage
Population Served
Construction Start Date
Construction Completion Date
Total Development Cost
Financing Sources
Entity: US Bank
Type: 4% Equity, Construction Loan
Contact: Jodi Enos
[email protected], 503-464-4584
Entity: CaIHFA MHSA
Type: Construction Loan and Permanent
Loan
Contact: Charlotte Moore
[email protected], 310-342-5402
(mercy Housi NC
Complete
Managing General Partner
Family Rental
80 1 BR: 26 1 2 BR: 30 1 3 BR: 24
83,039 sq. ft.

Families earning between 30% - 50% AMI, MHSA residents
March 2017
May 2018
$36,289,334
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
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,
Q i1-4Q_,..)c_
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, PT FLOOR
SANTA ANA, CA 92705
PHONE: 714.480.6534
FAX: 714.480.2978
&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 (00 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]
Ju
Director, Housing & Community Development

of EL11333 Valley Boulevard
ISHeS4 4>
iC'.of . O El Monte. CA 91731
�`'*� to (626) 258-8626
:I'Nil. IMI. [email protected]
elmonteca.gov
.. `TRAIL
d1FOR
March 15, 2023
Ed Holder, Vice President
Mercy Housing California
1500 5. 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) and its management partner, Mercy Housing Management Group (MHMG). The City of El 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 El 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 El 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 El 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].

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

Section 1: 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

Page 28 of 30 ends

MERCY HOUSING CALIFORNIA

BAKER STREET-PLACENTIA

DEVELOPMENT SCHEDULE
YEAR
MONTH
2023
1 2 3 4 5 6 7 8 9 10 11 12
Scenario 1: 9% LIHTC
oncept Design (Entitlements Set)
Entitlements
Site Control
OC HCD Funding and Vouchers
IIG (SuperNOFA) Funding
9% LIHTC/State Tax Credits
Construction Closing
Construction
Lease -Up
2024
1 2 3 4 5 6 7 8 9 10 11 12
4 5
6 5
in
6 7
8 9
10 11 12
5 6
7 8
9 10
10 2025
1 2 3 4 5 6 7 8 9 10 11 12
4 5
6 7
8 9
10 11
12 2026
1 2 3 4 5 6 7 8 9 10 11 12
2 3
4 5
6 7
8 9
10 11
2027
1 2 3 4 5 6 7 8 9 10 11 12
12I
8 9
Scenario 2: 4% LIHTC
Concept Design (Entitlements Set)
5 Entitlements
Site Control
OC HCD Funding and Vouchers
IG and MHP (SuperNOFA) Funding
4% LIHTC/Bonds
onstruction Closing
onstruction
ease -Up
9 10
11 12
5 9
10 6 7 8 9 10 11 12
2 3
4 5
6 7
8 9
10 11
12 2
3 4
5 6
7 8
9 10
11 12 11
2 3
3 4
4 5
5 6
7 8
11 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 SO FT

CONSTRUCTION TYPE V
100% AFFORDABLE

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 SO FT

CONSTRUCTION TYPE V
100% AFFORDABLE

ARCHITECTS

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.

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

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

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.

AWARDS
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

ARCHITECTS

MODULAR ARCHITECTURE

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.

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LOCATION

PLACENTIA, CA
CLIENT

MERCY HOUSING

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

CONSTRUCTION TYPE V
100% AFFORDABLE

6.‘

ARCHITECTS

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.

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
mrc.

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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LOCATION

LOS ANGELES, CA
CLIENT

BRIDGE HOUSING

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

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

CONSTRUCTION TYPE III,
100% AFFORDABLE

ARCHITECTS

BOARDING
SCHOOL
[ROTA PART OF SCOPE! ✓
FLA
SOUTH VERMONT AVE.

BRIDGE VERMONT & MANCHESTER
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
'Average OC awarded TB
Lowest OC awarded TB

78.15%

63.13%

43.08%
1Highest awarded off waiting list
1Average awarded off waiting list
Lowest awarded off waiting list

65.90%

37.43%

22.60%
*2020 and older tiebreakers used a slightly different formula, those tiebreakers have been adjusted to match the current calculation 2022 SuperNOFA Results (based on self -scores)
IIG Only projects -Southern Region
(Applied
(Awarded
13 8
1 had Community -
Based Developer
Awarded with less than 106 points 2 priority
Lowest Score 91
Lowest Tiebreaker for less than 106 points 77.0%
IIG Only projects -all regions
(Applied
(Awarded
361
211
Awarded with less than 106 points 8
Lowest Score 88.5
Lowest Tiebreaker for less than 106 points 59.0%
IIG and MHP Southern Region IIG and MHP -all regions
Not including senior
projects, nor non tax
Applied 24 credit projects Applied
Awarded
Awarded with less than 106 points
Lowest Score N/A
Lowest Tiebreaker for less than 106 points N/A
0 0
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 Not including senior
projects, nor non tax
48 credit projects
1 had Community -Based
Awarded 1 Developer priority
Awarded with less than 106 points 0
Lowest Score 111
Lowest Tiebreaker 111%

Sample Services Plan

COUNTYoF SAN MATEO
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 COUNTYoF SAN 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 1*
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 I*
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 COUNTYoFSAN MATEO f.

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
BHRS Clinic
based support
Low Intensity
Telecare
Highest
Intensity
Caminar
Low to high
intensity
support
Bridges to
Wellness
High intensity
Supportive
Housing Services
Augmented Coordinated
Entry System with BHRS &
Public Health, Policy and
Planning
Community
Care Settings
Pilot
Mid -intensity
Mental Health
Association
Mid -intensity
Integrated
Medication
Assisted
Treatment
Team
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 COUNTYoFSAN MATEO f.
§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 COU NTYoF SAN 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 COU NTYoF SAN 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 COUNTYoFSAN MATEO f.

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 COUNTYoFSAN MATEO f.

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

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 COUNTYoFSAN MATEO f.
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
Page
Independent Auditor's Report 2
Consolidated Financial Statements
Consolidated Statements of Financial Position 4
Consolidated Statements of Activities 6
Consolidated Statements of Changes in Net Assets 8
Consolidated Statements of Cash Flows 9
Notes to Consolidated Financial Statements 11
Supplementary Information
Index of Consolidating Financial Information 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 $ 37,660,980 $ 40,187,466
Cash, tenant security deposits 3,376,397 3,205,429
Cash, restricted 17,178,797 16,402,160
Investments 2,162,999 3,314,958
Accounts receivable, net 10,226,914 4,940,077
Due from affiliates, net 62,786,884 53,079,001
Pledges receivable, net 9,750,000 12,259,450
Grants receivable 63,745 53,182
Current portion of notes and interest receivable 37,729 204,167 Current portion of notes and interest receivable,
affiliates 265,271 292,439
Prepaid expenses and other assets 2,895,946 2,367,988
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
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
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
See Notes to Consolidated Financial Statements.
5 2020
2019
$ 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
973,300,468
1,234,492,560
130,113,023
507,762,640
637,875,663
39,237,908
677,113,571
$ 1,911,606,131
54,677,678
175,770
804,639,804
4,418,312
19,302,885
883,214,449
1,141,607,444
103,609,931
382,009,835
485,619,766
38,074,796
523,694,562
$ 1,665,302,006

Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2020
Programs
Property Resident Housing
Operations Services Development
Total
Without Donor With Donor
Restrictions Restrictions
Revenues
Rent - net of vacancies $ 84,609,478 $ $ - $ 84,609,478 $ 84,609,478 $ Developer fees - - 23,680,064 23,680,064 23,680,064
Services fees 24,905 2,964,051 2,988,956 2,988,956
Philanthropy 1,025,293 4,558,140 2,125,235 7,708,668 606,825 7,101,843 Capital grants 4,562,748 21,655,035 26,217,783 26,217,783 Consulting - 432,247 537,591 969,838 969,838
Interest 1,626,856 6,551 1,105,343 2,738,750 2,738,750
Other 6,111,847 9,265 2,952,606 9,073,718 9,073,718
Release of restricted assets - - - 5,938,731 (5,938,731) Total revenue 97,961,127 7,970,254 52,055,874 157,987,255 156,824,143 1,163,112 Expenses
Compensation 18,709,222 7,174,441 7,774,577 33,658,240 33,658,240 Administrative 10,451,337 2,247,266 2,212,188 14,910,791 14,910,791 Professional services 2,237,018 273,581 592,777 3,103,376 3,103,376 Depreciation and amortization 52,998,940 - 215,423 53,214,363 53,214,363 Grants 625,987 89,146 2,540,993 3,256,126 3,256,126
Facility 26,255,511 2,321 732,683 26,990,515 26,990,515 Interest and fees 24,867,814 - 16,162 24,883,976 24,883,976 Bad debts 1,374,267 369,980 85,606 1,829,853 1,829,853
Project expenses 491,792 491,792 491,792
Allocation 3,118,055 2,605,511 5,723,566 5,723,566
(Gain) loss on sale of assets (1,171) - (1,171) (1,171) (Gain) loss on investment in limited partnership (276,293) (214,788) (491,081) (491,081) Total expenses 137,242,632 13,274,790 17,052,924 167,570,346 167,570,346 Excess (deficiency) of revenue over expense
Consolidated (39,281,505) (5,304,536) 35,002,950 (9,583,091) (10,746,203) 1,163,112 Attributable to noncontrolling interest (46,831,682) (314) (46,831,996) (46,831,996) 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
Operations Services Development
Total
Without Donor With Donor
Restrictions Restrictions
Revenues
Rent - net of vacancies $ 75,435,830 $ $ $ 75,435,830 $ 75,435,830 $ Developer fees 15,769,807 15,769,807 15,769,807
Services fees 34,760 2,402,594 2,437,354 2,437,354
Philanthropy 125 2,046,537 2,353,406 4,400,068 859,819 3,540,249 Capital grants 993,825 216,480 1,210,305 1,210,305
Consulting 510,053 595,974 1,106,027 1,106,027
Interest 940,261 6,135 1,155,843 2,102,239 2,102,239
Other 9,848,383 16,854 6,433,631 16,298,868 16,298,868
Release of restricted assets 1,785,846 (1,785,846)
Total revenue 87,253,184 4,982,173 26,525,141 118,760,498 117,006,095 1,754,403 Expenses
Compensation 15,590,434 6,129,749 6,188,042 27,908,225 27,908,225 Administrative 10,448,056 1,432,255 3,504,377 15,384,688 15,384,688 Professional services 2,460,783 148,245 663,288 3,272,316 3,272,316 Depreciation and amortization 45,927,067 193,512 46,120,579 46,120,579 Grants 43,238 96,145 1,573,514 1,712,897 1,712,897
Facility 24,523,421 2,974 281,243 24,807,638 24,807,638 Interest and fees 21,606,187 41,546 21,647,733 21,647,733 Bad debts 318,385 28,644 111,359 458,388 458,388
Project expenses 649,650 649,650 649,650
Allocation 3,503,438 1,376,723 4,880,161 4,880,161
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership 3,363,958 (3,778,386) (414,428) (414,428) Total expenses 124,281,529 11,341,450 10,804,868 146,427,847 146,427,847 Excess (deficiency) of revenue over expense
Consolidated (37,028,345) (6,359,277) 15,720,273 (27,667,349) (29,421,752) 1,754,403 Attributable to noncontrolling interests (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
Controlling Noncontrolling Total Donor Restrictions Total Net Assets Balance, January 1, 2019 $ 100,688,013 $ 289,385,352 $ 390,073,365 $ 36,320,393 $ 426,393,758 Contributions - 130,805,100 130,805,100 130,805,100
Distributions (31,250) (128,808) (160,058) (160,058)
Syndication (4,761,658) (915,231) (5,676,889) (5,676,889) Excess (deficiency) of revenues over expenses 7,714,826 (37,136,578) (29,421,752) 1,754,403 (27,667,349) Balance, December 31, 2019 103,609,931 382,009,835 485,619,766 38,074,796 523,694,562 Contributions - 173,125,541 173,125,541 173,125,541
Distributions (97,535) (270,739) (368,274) (368,274)
Syndication (270,001) (270,001) (270,001)
Other Transfers (9,485,166) - (9,485,166) (9,485,166)
Excess (deficiency) of revenues over expenses 36,085,793 (46,831,996) (10,746,203) 1,163,112 (9,583,091) Balance, December 31, 2020 $ 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
Net cash provided by (used in) investing activities
9 2020
$ (9,583,091)
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
2,380,804
(484,659)
(280,325,024)
51,314
297,485
(278,080,080)
2019
$ (27,667,349)
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
4,993,078
(221,004)
(876,829)
(241,185,428)
564,190
(236,725,993)

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
See Notes to Consolidated Financial Statements.
10 2020
312,920,120
(239,866,207)
(4,417,431)
173,125, 541
(270,001)
(368,274)
241,123, 748
3,003,499
78,173,173
81,176,672
13,710,133
$ 827,634
(827,634)
3,644,137
(3,644,137)
11, 294, 900
(11,294,900)
$
956,828
(956,828)
2019
297,127,077
(191,191,942)
(268,188)
(6,055,553)
130,805,100
(5,676,889)
(160,058)
224, 579, 547
7,445,178
70,727,995
$ 78,173,173
$ 12,054,549
$ 802,679
(802,679)
173,370
(173,370)
741,582
(741,582)
1,381,563
(1,381,563)
$

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
El Monte Veterans Apartments LLC
El 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
Other transfers increase (decrease)
Mercy Midtown, Inc.
1064 Mission, LP
Other transfers
19 Year Ended
December 31,
2020 2019
$ (9,481,112) $
(4,054)
$ (9,485,166) $

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:

Cash and cash equivalents, properties and corporate
Investments
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
2020
$ 37,660,980
2,162,999
10,226,915
9,750,000
63,745
2,343,741
303,000
62,511,380
2,662,999
2,343,741
39,237,908
2019
$ 40,187,466
3,314,958
4,940,077
12,259,450
53,182
3,001,926
496,606
64,253,665
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 $ 9,750,000
2022 14,250,000
2023
2024
2025
Thereafter
Total pledges receivable 24,000,000
Discount and allowance (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:
2020 2019
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
$ 172,258,671
1,425,307,077
42,837,157
19,946,022
279,918,210
1,940,267,137
(315,891,127)
$ 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 $ 1,233,454 Equity in project earnings (losses) 414,428
Investment in unconsolidated entities as of December 31, 2019 1,647,882 Distribution (47,260)
Equity in project earnings (losses) 491,081
Other (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 $ 182,203,891
2022 47,162,057
2023 8,732,964
2024 15,543,901
2025 7,077,494
Thereafter 832,599,789
Total maturities 1,093,320,096
Less debt issuance costs, net of accumulated amortization (21,135,692) Less current maturities (182,203,891)
Notes payable, less current portion $ 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:

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
2020
2019
$ 127,450,024 $ 100,924,931
2,662,999 2,685,000
130,113,023
507,762,640
103,609,931
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
Net assets with donor restrictions
26 2020
$ 36,018,858
1,770,000
1,449,050
$ 39,237,908
2019
$ 36,304,796
1,770,000
$ 38,074,796

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:

Replacement reserves
Operating reserves
Residual receipts reserves
Bond investment reserves
Other reserves
Escrow deposits
Escrow deposits - construction
December 31,
2020 2019
$ 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
$ 17,178,797
(3,394,297)
$ 37,660,980
3,376,397
13,784,500
Investments 2,162,999
Restricted property reserves 84,268,711
Less: non-qualified restricted cash (71,566,915)
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
$ 16,402,160
(8,460,693)
12,701,796
11,085,000
405,000
$ 81,176,672
$ 40,187,466
3,205,429
7,941,467
Investments 3,314,958
Restricted property reserves, long term 79,695,176
Less: non-qualified restricted cash (68,881,323)
Long-term investments
Long-term investments, restricted
Total cash, cash equivalents, and restricted
cash shown in the consolidated statements of
cash flows
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
Page
Mercy Housing California 36
Mercy Housing California Senior Properties 54
Mercy Housing Calwest 57
Mercy Properties California 99
San Juan Housing Corporation 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 $ 9,059,384 $ $ 158,606 $ 65,766 $ 5,463 $ 5,976 $ 469,972 $ 30,763 Cash, tenant security deposits 12,595 8,744 14,892 12,757 15,033 Cash, restricted 175,826 - 150 - 28,142 10,294
Investments 2,162,999 - -
Investments, restricted - - -
Accounts receivable, net 5,684,170 9,257 4,320 3,099 1,645 4,996 Due from affiliate, net 85,614,100 - -
Pledges receivable, net 9,750,000
Grants receivable 53,182 -
Current portion of notes and interest receivable 37,729 Current portion of notes and interest receivable, affiliates 6,162,423 - - Prepaid expenses and other assets 283,462 18,468 8,775 10,767 10,130 7,637 Inventory - -
Assets held for sale
Total current assets 118,983,275 198,926 87,605 34,371 30,508 498,114 68,723 Property and equipment
Land and land improvements 3,060,518 164,430 389,000 20,827 323,400 417,517 Buildings 1,980,087 4,021,595 2,278,878 5,280,372 4,266,421 - 4,681,219 Furniture and equipment 489,311 1,264,863 184,927 19,879 92,485 - 75,814 Predevelopment project costs 9,559,330 - - -
Construction in progress - -
Accumulated depreciation (1,049,043) (3,204,572) (2,082,840) (3,007,144) (3,399,912) (2,859,469) Net property and equipment 14,040,203 2,246,316 769,965 2,313,934 1,282,394 417,517 1,897,564 Other long-term assets
Restricted property reserves 356,506 1,368,290 633,186 64,629 198,258 1,368 201,757 Long-term investments 11,085,000 - - -
Long-term investments, restricted 405,000 - -
Due from affiliates 17,472,759
Pledges receivable, net 13,875,365
Investments in limited partnerships, net (1,625,447) 330,753 Notes and interest receivable, net 2,077,966 -
Notes and interest receivable, affiliates 34,175,718 479,657 Allowance for impaired assets -
Other assets, net
Total other long-term assets 77,822,867 330,753 1,368,290 633,186 64,629 198,258 481,025 201,757 Total assets $ 210,846,345 $ 330,753 $ 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 $ 3,456,140 $
Due to affiliates 799,505
Accrued interest 65,700
Accrued interest, affiliates -
Current portion of notes payable 599,745
Current portion of notes payable, affiliates 13,488,199 Deferred revenue and other liabilities 1,443,490
Tenant security deposits
Total current liabilities 19,852,779
2,179 $
88,092
363,278 $ 163,857 $
9,763
14,174 7,936
71,963 35,508
44,260 $
6,916
80,639 $
32,000
120 2,683 1,949 689
12,091 8,244 14,025 12,260
8,500 $ 54,812
1,142
14,335
90,271 461,626 227,991 67,150 125,588 8,500 70,289
Long-term liabilities
Due to affiliates 60,000
Accrued interest -
Accrued interest, affiliates -
Notes payable, less current portion, net 8,570,000 3,094,195 1,602,692 Notes payable, less current portion, affiliates 464,136 - Deferred revenue and other liabilities 800,454 2,520
Total long-term liabilities 9,894,590 3,094,195 1,602,692 2,520 Total liabilities
29,747,369 90,271 3,555,821 1,830,683 69,670 125,588 8,500 70,289 Net assets
Net assets without donor restrictions, controlling 142,659,686 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 2,097,755 Net assets without donor restrictions, noncontrolling - - - - - Total net assets without donor restrictions 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
181,098,976 240,482 257,711 (339,927) 2,343,264 1,385,572 1,388,156 2,097,755 Total liabilities and net assets $ 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 $ 28,362 $ 131,003 $ 8 $ 209,107 $ 35,482 $ 6,255 $ 39,935 $ 17,956 Cash, tenant security deposits 28,089 21,851 37,834 6,648 26,883 15,407 38,995 Cash, restricted 29,548 300 68 10,000
Investments - -
Investments, restricted - - -
Accounts receivable, net 4,324 5,046 20,079 451 3,920 2,558 6,093 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 29,923 17,086 8,004 5,923 16,358 10,893 31,788 Inventory - - -
Assets held for sale
Total current assets 120,246 175,286 8 275,024 48,572 53,416 78,793 94,832 Property and equipment
Land and land improvements 1,084,968 785,749 1,037,824 95,609 2,000,000 400,000 1,797,674 Buildings 13,730,004 6,231,784 1,638,427 3,933,700 8,634,705 3,738,434 14,277,815 Furniture and equipment 288,531 211,324 141,334 79,530 294,266 232,867 590,464 Predevelopment project costs - - -
Construction in progress - - -
Accumulated depreciation (9,618,072) (5,292,687) (2,324,677) (2,674,412) (7,370,219) (3,568,945) (10,786,997) Net property and equipment 5,485,431 1,936,170 492,908 1,434,427 3,558,752 802,356 5,878,956 Other long-term assets
Restricted property reserves 654,499 227,693 634,490 88,975 448,252 175,394 1,370,724 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 4,620,398
Allowance for impaired assets
Other assets, net
Total other long-term assets
654,499 227,693 4,620,398 634,490 88,975 448,252 175,394 1,370,724 Total assets $ 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 $ 115,029 $ 178,622 $ 3,148 $ 33,965 $ 69,037 $ 212,832 $ 111,601 $ 104,603 Due to affiliates 11,726 - - 18,727 8,019 - - 184
Accrued interest 2,440 -
Accrued interest, affiliates - -
Current portion of notes payable 156,920 -
Current portion of notes payable, affiliates - - - -
Deferred revenue and other liabilities 274 364 184 809 590 242 794 Tenant security deposits 26,834 21,335 37,337 6,150 26,183 14,906 38,495 Total current liabilities 153,863 200,321 3,148 249,573 84,015 239,605 126,749 144,076 Long-term liabilities
Due to affiliates - - -
Accrued interest - 633,541 970,066
Accrued interest, affiliates - -
Notes payable, less current portion, net - 263,176 1,060,319 - 618,235 Notes payable, less current portion, affiliates - - - - - - Deferred revenue and other liabilities 2,230 1,473 1,142 1,568 997 Total long-term liabilities 2,230 1,473 263,176 1,695,002 1,568 1,589,298 Total liabilities 156,093 201,794 3,148 512,749 1,779,017 241,173 1,716,047 144,076 Net assets
Net assets without donor restrictions, controlling 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 Net assets without donor restrictions, noncontrolling - - - Total net assets without donor restrictions 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 Net assets with donor restrictions
Total net assets 6,104,083 2,137,355 4,617,258 889,673 (207,043) 3,819,247 (659,504) 7,200,436 Total liabilities and net assets $ 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 $ 36,038 $ 2,479 $ 287,628 $ 14,084 $ 317,494 $ 57,217 $ $ 37,481 Cash, tenant security deposits 21,086 22,910 7,351 22,995 - 5,060 Cash, restricted 10,289 - -
Investments -
Investments, restricted - -
Accounts receivable, net 1,298 3,593 28,070 1,696 247,977 163,760 - Due from affiliate, net - 57,623 - 3,196,572 43,318
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 15,361 26,081 7,290 17,657 18,294 38,287 2,299 Inventory - - -
Assets held for sale -
Total current assets 73,783 65,352 330,339 56,432 641,388 259,264 3,196,572 88,158 Property and equipment
Land and land improvements 242,906 1,213,204 596,783 9,960 5,845 211,256 Buildings 5,705,482 11,891,910 5,230,128 7,840,975 325,339 2,586,820 661,257 Furniture and equipment 388,365 31,415 63,368 91,893 - - 13,971 Predevelopment project costs - -
Construction in progress - - -
Accumulated depreciation (5,074,713) (5,999,965) (2,548,904) (4,180,888) (234,559) (419,080) (413,242) Net property and equipment 1,262,040 7,136,564 3,341,375 3,761,940 90,780 2,173,585 473,242 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
548,907
598,158 1,121,462
221,602 881,778 356,178 87,946
45,981
(189,489)
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 $ 57,220 $ 77,548 $ 83,163 $ 47,504 $ 24,745 $ 7,977 $ (833) $ 10,836 Due to affiliates 11,778 1,476,921 146,670 10,000 2,985,535 18,868 54,167 - Accrued interest - - 268,081 - 66
Accrued interest, affiliates - -
Current portion of notes payable - 27,218 - 1,762
Current portion of notes payable, affiliates 96,934 - - - Deferred revenue and other liabilities 3,006 10,856 29,332 843 16,272 - - Tenant security deposits 20,585 21,682 6,847 22,136 97,045 33,000 4,608 Total current liabilities 92,589 1,683,941 266,012 80,483 3,123,597 355,144 53,334 17,272 Long-term liabilities
Due to affiliates - - - -
Accrued interest 245,215 1,229,767 79,779 146,289
Accrued interest, affiliates - - 175,770
Notes payable, less current portion, net 356,622 (8,414) 3,081,773 480,221 2,737,498 217,607 Notes payable, less current portion, affiliates - - - - - - 180,000 Deferred revenue and other liabilities 563 293,420 394,839 - Total long-term liabilities 602,400 (8,414) 4,311,540 560,000 293,420 3,132,337 719,666 Total liabilities 694,989 1,675,527 4,577,552 640,483 3,417,017 3,487,481 53,334 736,938 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
1,189,741 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) Total liabilities and net assets $ 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 $ 153,868 $ 295,318 $ $ 442,492 $ $ 31,332 $ $ Cash, tenant security deposits 57,353 52,016 73,994 7,860 Cash, restricted 811 - 11,924 78,174
Investments - -
Investments, restricted -
Accounts receivable, net (879) 3,503 17,359
Due from affiliate, net - 16,884 41,225
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 30,319 17,099 50,013 6,992 Inventory - -
Assets held for sale
Total current assets 241,472 367,936 595,782 16,884 124,358 41,225 Property and equipment
Land and land improvements 438,540 1,560,000 1,168,786 553,919 Buildings 18,759,635 3,776,013 37,414,135 9,588,685
Furniture and equipment 433,582 31,310 526,234 88,093
Predevelopment project costs - - -
Construction in progress - -
Accumulated depreciation (5,857,433) (1,746,266) (5,661,781) (1,176,023) Net property and equipment 13,774,324 3,621,057 33,447,374 9,054,674 Other long-term assets
Restricted property reserves 847,532 702,594 614,535 763,279 Long-term investments - -
Long-term investments, restricted -
Due from affiliates -
Pledges receivable, net - -
Investments in limited partnerships, net 1,273,193 (13,803) Notes and interest receivable, net 2,377,000 2,347,800
Notes and interest receivable, affiliates (2,377,000) (2,347,800) Allowance for impaired assets - - - - -
Other assets, net 40,367 35,941 21,581
Total other long-term assets
(7,548,857)
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
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
11,101,696 5,247,861 13,552 21,877,336 25,664 3,623,903 3,801,999 (556,274) 1,259,641 12,816,296 (22,583) 6,339,989 3,801,999 (556,274) 1,259,641 12,816,296 (22,583) 6,339,989 48,266
(7,555,898)
(7,555,898)
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 $ 215,711 $ 128,792 $ $ 127,296 $ $ 201,188 $ 1,953,555 $ 21,652,212 Cash, tenant security deposits 48,712 64,149 18,141 11,237 63,800 2,489,320 Cash, restricted 287,491 269,831 1,866,563 387,314 450 14,011,622 Investments - - -
Investments, restricted - - -
Accounts receivable, net 6,281 60,568 105,934 122,962 17,569 3,303,399 Due from affiliate, net 62,958 40,000 794 61 950,396
Pledges receivable, net - - -
Grants receivable 10,563
Current portion of notes and interest receivable
Current portion of notes and interest receivable, affiliates - - - Prepaid expenses and other assets 18,608 29,355 33,532 25,118 55,120 3,021,548 Inventory - - -
Assets held for sale
Total current assets 576,803 615,653 2,151,466 40,000 748,613 2,090,555 45,439,060 Property and equipment
Land and land improvements 1,754,172 1,912,371 4,262,630 1,034,466 1,191,304 137,306,555 Buildings 14,754, 324 12,700,160 27,943, 586 12,318,102 13,778,600 1,172,171,307 Furniture and equipment 321,730 771,516 633,697 268,988 1,871,850 29,379,728 Predevelopment project costs - - - 10,386,692
Construction in progress - - - 285,133,774
Accumulated depreciation (1,571,033) (1,095,866) (806,532) (935,378) (6,861,981) (199,484,899) Net property and equipment 15,259,193 14,288,181 - 32,033,381 12,686,178 9,979,773 1,434,893,157 Other long-term assets
Restricted property reserves 615,283 534,201 42,545 2,133,455 66,342,120 Long-term investments - - -
Long-term investments, restricted - -
Due from affiliates -
Pledges receivable, net
Investments in limited partnerships, net (3,682)(8) (3,402,896) Notes and interest receivable, net - -
Notes and interest receivable, affiliates 1,397,285
Allowance for impaired assets - - - -
Other assets, net 32,204 100,918 126,830 49,404 19,423,933 Total other long-term assets 647,487 635,119 (3,682) 126,830 (8) 91,949 2,133,455 83,760,442 Total assets $ 16,483,483 $ 15,538,953 $ (3,682) $ 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 $ 73,177 $ 97,944 $ (311) $ 196,556 $ (221) $ 212,213 $ 1,150,732 $ 58,412,607 Due to affiliates 214,090 352,564 4,928 1,078,493 44,776 502,600 23,740 25,990,669 Accrued interest - - 10,630 120,763 1,589,805
Accrued interest, affiliates 23,930
Current portion of notes payable 6,245,961 348,688 160,828,040 Current portion of notes payable, affiliates - 5,645,146 Deferred revenue and other liabilities 242 238 894 10,042 16,261 2,196,288 Tenant security deposits 48,212 62,800 17,368 10,736 59,473 2,504,294 Total current liabilities 335,721 513,546 4,617 1,293,311 44,555 6,992,182 1,719,657 257,190,779 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 57,083 4,035,936 107,712 761,142 47,582,791 Accrued interest, affiliates - - 1,065,337
Notes payable, less current portion, net 9,267,229 8,016,909 11,382,448 (15,353) 7,720,644 783,327,585 Notes payable, less current portion, affiliates 2,087,284 - - 110,001 - 40,763,327 Deferred revenue and other liabilities 674,618 - 68,059 32,850,402 Total long-term liabilities 12,086,214 12,052,845 11,490,160 94,648 8,549,845 905,589,442 Total liabilities 12,421,935 12,566,391 4,617 12,783,471 44,555 7,086,830 10,269,502 1,162,780,221 Net assets
Net assets without donor restrictions, controlling 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 Net assets without donor restrictions, noncontrolling - - - - - - Total net assets without donor restrictions 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 Net assets with donor restrictions
Total net assets 4,061,548 2,972,562 (8,299) 21,528,206 (4,563) 6,439,910 3,934,281 401,312,438 Total liabilities and net assets $ 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 $ 887,960 $ 554,797 $ $ 37,660,980 Cash, tenant security deposits 42,237 128,448 3,376,397 Cash, restricted - 17,178,797
Investments 2,162,999
Investments, restricted - - -
Accounts receivable, net 2,816 18,281 372,769 10,226,914 Due from affiliate, net 976,239 - (28,213,286) 62,786,884 Pledges receivable, net - - 9,750,000
Grants receivable - 63,745
Current portion of notes and interest receivable - 37,729 Current portion of notes and interest receivable, affiliates - (5,897,152) 265,271 Prepaid expenses and other assets 26,509 44,969 (1,047,719) 2,895,946 Inventory - -
Assets held for sale
Total current assets 1,935,761 746,495 (34,785,388) 146,405,662 Property and equipment
Land and land improvements 5,484,234 1,734,224 - 172,258,671 Buildings 14,024,049 7,969,934 (28,826,805) 1,425,307,077 Furniture and equipment 165,798 3,790,024 - 42,837,157
Predevelopment project costs - - 19,946,022
Construction in progress - (5,215,564) 279,918,210
Accumulated depreciation (10,954,426) (10,109,028) 6,479,859 (315,891,127) Net property and equipment 8,719,655 3,385,154 (27,562,510) 1,624,376,010 Other long-term assets
Restricted property reserves 797,750 635,365 84,268,711 Long-term investments - 11,085,000
Long-term investments, restricted - 405,000
Due from affiliates 60,000 (17,311,755) 221,004
Pledges receivable, net - 13,875,365
Investments in limited partnerships, net 13,267,885 2,087,649 Notes and interest receivable, net 22,000 (4,724,800) 2,099,966 Notes and interest receivable, affiliates - (29,043,653) 6,904,605 Allowance for impaired assets - -
Other assets, net 19,877,159
Total other long-term assets 879,750 635,365 (37,812,323) 140,824,459 Total assets
$ 11,535,166 $ 4,767,014 $ (100,160,221) $ 1,911,606,131

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
Liabilities
Current liabilities
Accounts payable and accrued expenses $ 146,942 $ 197,591 $ 19,347 $ 66,181,669 Due to affiliates 170,523 121,301 (30,501,081) 3,811,584 Accrued interest 644,781 13,269 - 2,741,545
Accrued interest, affiliates - 23,930
Current portion of notes payable 88,772 142,903 - 168,632,240 Current portion of notes payable, affiliates 187,104 (5,845,732) 13,571,651 Deferred revenue and other liabilities 18,467 22,577 (1,067,308) 2,729,134 Tenant security deposits 45,737 126,840 - 3,500,339
Total current liabilities 1,302,326 624,481 (37,394,774) 261,192,092 Long-term liabilities
Due to affiliates - - (60,000) -
Accrued interest 580,985 2,468,206 - 64,066,534
Accrued interest, affiliates (1,065,337) 175,770
Notes payable, less current portion, net 3,689,301 6,646,226 (2,347,800) 883,362,201 Notes payable, less current portion, affiliates (39,363,436) 6,618,312 Deferred revenue and other liabilities 12,500 1,525 (16,033,052) 19,077,651 Total long-term liabilities 4,282,786 9,115,957 (58,869,625) 973,300,468 Total liabilities
5,585,112 9,740,438 (96,264,399) 1,234,492,560
Net assets
Net assets without donor restrictions, controlling 5,950,054 (4,973,424) (511,658,462) 130,113,023 Net assets without donor restrictions, noncontrolling - 507,762,640 507,762,640 Total net assets without donor restrictions 5,950,054 (4,973,424) (3,895,822) 637,875,663 Net assets with donor restrictions 39,237,908
Total net assets
5,950,054 (4,973,424) (3,895,822) 677,113,571
Total liabilities and net assets $ 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 $ - $ $ 1,380,248 $ 422,479 $ 423,654 $ 408,393 $ $ 303,310 Developer fees 26,627,732 - -
Services fees 9,191,677 - - -
Philanthropy 7,877,088 - - -
Capital grants 19,655,035 - -
Consulting 969,838 - -
Interest 1,266,241 20,264 852 6 18 - 20
Other 3,873,706 5,108 4,033 2,259 4,991 480,461 3,005
Total revenues 69,461,317 1,405,620 427,364 425,919 413,402 480,461 306,335 Expenses and losses
Compensation 14,941,525 - 295,261 89,043 161,965 122,308 86,929 Administrative 3,343,445 925 81,739 88,112 71,528 69,801 - 69,812 Professional services 821,183 778 31,959 9,429 8,410 52,644 6,299 25,150 Depreciation and amortization 198,415 - 262,670 65,623 197,935 157,550 - 180,208 Grants 20,447,899 - - 641,894 -
Facility 620,587 177,538 101,314 121,708 131,824 102,686 Interest and fees 16,027 174,437 101,705 - - -
Bad debts 598,314 - 961 12,352 778
Provision for impaired assets - -
Project expenses 491,792
Allocation 5,723,566
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership (176) (20) - Total expenses and losses 47,202,577 1,683 1,023,604 456,187 573,898 534,905 648,193 464,785 Excess (deficiency) of revenues over expenses 22,258,740 (1,683) 382,016 (28,823) (147,979) (121,503) (167,732) (158,450) Net assets at beginning of year 158,840,236 242,165 (124,305) (311,104) 2,491,243 1,507,075 1,393,651 2,256,205 Other transfers to (from) net assets - - - 162,237
Net assets at end of year $ 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 $ 1,054,691 $ 666,303 $ $ 810,901 $ 263,544 $ 669,119 $ 499,538 $ 1,347,401 Developer fees
Services fees - -
Philanthropy -
Capital grants -
Consulting - - -
Interest 315 174 176,821 171 8 207 88 13,738
Other 36,879 76,056 - 10,175 12,835 7,632 4,595 16,197
Total revenues 1,091,885 742,533 176,821 821,247 276,387 676,958 504,221 1,377,336 Expenses and losses
Compensation 573,484 287,127 - 44,927 84,862 225,637 151,316 611,514 Administrative 145,168 175,553 14,999 73,389 67,115 111,750 68,617 169,348 Professional services 11,999 9,793 3,149 8,526 8,230 9,664 17,997 10,938 Depreciation and amortization 511,070 227,305 - 146,428 148,908 322,503 164,631 592,884 Grants - 237,322 - - -
Facility 277,802 234,719 - 310,054 95,078 218,021 204,385 378,364 Interest and fees - 75 32,229 31,810 - 36,808 36
Bad debts 1,393 - 9,911 2,244 -
Provision for impaired assets
Project expenses
Allocation -
(Gain) loss on sale of assets 17,948
(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
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) - -
Net assets at end of year $ 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 $ 512,632 $ 670,054 $ 411,673 $ 467,884 $ 789,207 $ 194,000 $ $ 58,818 Developer fees
Services fees
Philanthropy
Capital grants
Consulting - -
Interest 11,661 6,907 22,343 22 27,216 1,544 43
Other 4,403 7,485 492,472 6,359 177,603 45,281 77
Total revenues 528,696 684,446 926,488 474,265 994,026 240,825 58,938 Expenses and losses
Compensation 199,843 281,117 137,813 181,340 126,936 - - 33,092 Administrative 78,905 125,796 51,490 81,678 111,164 30,315 855 6,840 Professional services 9,591 10,720 258,906 49,564 14,073 15,214 2,616 9,507 Depreciation and amortization 209,755 502,147 195,711 298,857 29,193 118,822 - 16,543 Grants - 25,000 - - -
Facility 179,449 282,755 177,927 146,842 640,092 358,130 13,976 Interest and fees 10,782 3,959 93,527 5,902 50 121,783 7,160 Bad debts 203 395 -
Provision for impaired assets - -
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership 39
Total expenses and losses 688,325 1,206,697 940,769 764,183 921,508 644,264 3,471 87,157 Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
(159,629) (522,251) (14,281) (289,918) 72,518 (403,439) (3,471) (28,219) 1,349,370 6,646,798 229,905 3,689,409 (1,775,589) (349,034) 3,146,709 (248,862) (100,000) 100,000 -
Net assets at end of year $ 1,189,741 $ 6,124,547 $ 215,624 $ 3,399,491 $ (1,803,071) $ (652,473) $ 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 $ 1,057,756 $ 1,051,970 $ $ 1,012,490 $ - $ 181,250 $ $ Developer fees - - - - -
Services fees - - - 16,884 - 20,600
Philanthropy -
Capital grants
Consulting - - -
Interest 119 10,956 489 - 23,862
Other 4,602 18,520 26,676 2,438
Total revenues 1,062,477 1,081,446 1,039,655 16,884 207,550 20,600 Expenses and losses
Compensation 176,939 192,468 - 171,756 25,306
Administrative 157,136 97,454 100 157,247 16,939 88,776 20,600 Professional services 89,245 81,620 3,121 99,498 623 21,114 2,523 Depreciation and amortization 726,451 342,730 - 1,498,653 293,175 Grants - -
Facility 480,792 257,480 439,664 81,092
Interest and fees 198,271 120,070 121,096 1,176
Bad debts 17,154 - 35,284 -
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 148 30 146 Total expenses and losses 1,845,988 1,091,822 3,369 2,523,198 17,592 510,639 23,269 Excess (deficiency) of revenues over expenses (783,511) (10,376) (3,369) (1,483,543) (708) (303,089) (2,669) Net assets at beginning of year 4,585,510 (545,898) 1,263,010 14,299,839 (21,875) 6,643,078 9,763,410 (7,553,229) Other transfers to (from) net assets - - - (9,763,410)
Net assets at end of year $ 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 $ 688,757 $ 785,684 $ $ 674,227 $ - $ 606,609 $ 3,916,956 $ 61,703,237 Developer fees - - - -
Services fees - 20,000 - 30,748
Philanthropy -
Capital grants - 6,523,160
Consulting - - - - -
Interest 15,460 3 - 44 22,708 1,271,012
Other 8,350 39,502 7,043 9,530 162,544 20,378,287
Total revenues 712,567 825,189 681,270 20,000 616,183 4,102,208 89,906,444 Expenses and losses
Compensation 195,568 225,118 - 265,808 221,112 791,418 12,214,009 Administrative 78,055 125,784 54 102,380 19,999 83,725 593,768 10,260,521 Professional services 47,459 93,681 1,573 85,926 1,576 96,791 52,107 5,192,958 Depreciation and amortization 524,000 806,858 - 812,431 724,579 929,621 41,909,788 Grants - - 128,561 102,799
Facility 236,488 299,230 163,779 120,610 771,029 19,412,052 Interest and fees 68,440 280,734 346,868 269,713 480,878 22,046,404 Bad debts 15,229 74 - 588 1,263,422
Provision for impaired assets - -
Project expenses
Allocation -
(Gain) loss on sale of assets - (19,119)
(Gain) loss on investment in limited partnership 110 68 (187,529) Total expenses and losses 1,150,010 1,846,634 1,737 1,777,266 21,643 1,516,530 3,747,970 112,195,305 Excess (deficiency) of revenues over expenses (437,443) (1,021,445) (1,737) (1,095,996) (1,643) (900,347) 354,238 (22,288,861) Net assets at beginning of year 4,180,793 2,167,991 (6,562) 2,177,232 (2,920) 1,347,442 3,451,482 279,896,349 Other transfers to (from) net assets 318,198 1,826,016 - 20,446,970 5,992,815 128,561 143,704,950 Net assets at end of year $ 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 $ 899,705 $ 1,538,075 $ (861,087) $ 84,609,478 Developer fees - (2,947,668) 23,680,064
Services fees (6,290,953) 2,988,956
Philanthropy - (168,420) 7,708,668
Capital grants 215,532 (175,944) 26,217,783
Consulting - - 969,838
Interest 1,012 4,258 (159,832) 2,738,750
Other 1,706,117 42,733 (18,604,236) 9,073,718
Total revenues 2,822,366 1,585,066 (29,208,140) 157,987,255 Expenses and losses
Compensation 177,152 365,547 - 33,658,240
Administrative 851,951 234,545 (3,016,587) 14,910,791
Professional services 22,119 23,616 (4,218,513) 3,103,376 Depreciation and amortization 527,722 441,117 (869,920) 53,214,363 Grants (18,327,349) 3,256,126
Facility 318,078 532,829 (895,859) 26,990,515
Interest and fees 164,828 290,950 (141,742) 24,883,976
Bad debts 4,292 1,087 (133,828) 1,829,853
Provision for impaired assets - - -
Project expenses 491,792
Allocation 5,723,566
(Gain) loss on sale of assets - (1,171)
(Gain) loss on investment in limited partnership (303,897) (491,081) Total expenses and losses 2,066,142 1,889,691 (27,907,695) 167,570,346 Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
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
Net assets at end of year $ 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
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
Assets
Current assets
Cash and cash equivalents $ $ 158,366 $ 1,324,443 $ 278,818 $ 71,202 $ 41,880 $ 78,846 $ $ 1,953,555 Cash, tenant security deposits - 9,750 7,430 20,754 25,866 63,800 Cash, restricted - - - 450 450
Investments - -
Investments, restricted - - - -
Accounts receivable, net - 3,298 852 6,366 7,053 - 17,569 Due from affiliate, net 61 - - 1,359 (1,359) 61
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 10,915 7,281 13,317 23,607 55,120 Inventory - -
Assets held for sale
Total current assets 158,427 1,324,443 302,781 86,765 82,317 137,181 (1,359) 2,090,555 Property and equipment
Land and land improvements 19,791 210,151 614,986 346,376 1,191,304 Buildings 2,274,234 2,553,040 4,407,401 4,543,925 13,778,600 Fumiture and equipment 155,923 768,101 762,211 185,615 1,871,850 Predevelopment project costs - -
Construction in progress - - - - -
Accumulated depreciation (1,037,874) (1,493,756) (2,092,284) (2,238,067) (6,861,981) Net property and equipment 1,412,074 2,037,536 3,692,314 2,837,849 9,979,773 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
493,120 688,674 329,000 622,661
3,916,715 (3,916,715)
2,133,455
3,916,715 493,120 688,674 329,000 622,661 (3,916,715) 2,133,455 Total assets $ 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
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
Liabilities
Current liabilities
Accounts payable and accrued expenses $ 2,780 $ 8,511 $ 4,998 $ 470,906 $ 483,587 $ 67,609 $ 112,341 $ - $ 1,150,732 Due to affiliates 17,914 - 5,826 1,359 (1,359) 23,740
Accrued interest - - - 28,852 18,212 28,292 45,407 - 120,763 Accrued interest, affiliates - - -
Current portion of notes payable - - 75,016 58,672 105,000 110,000 348,688 Current portion of notes payable, affiliates -
Deferred revenue and other liabilities - - 3,721 3,348 320 8,872 16,261 Tenant security deposits - - 9,254 6,621 20,213 23,385 59,473 Total current liabilities 20,694 8,511 10,824 587,749 570,440 221,434 301,364 (1,359) 1,719,657 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
- 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 Net assets
Net assets without donor restrictions, controlling 3,896,021 149,916 1,313,619 Net assets without donor restrictions, noncontrolling - - - Total net assets without donor restrictions 3,896,021 149,916 1,313,619 Net assets with donor restrictions
Total net assets
(7,789) 972,962 752,591 773,676 (3,916,715) 3,934,281
(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 Total liabilities and net assets $ 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
Total revenues
Consolidated
Mercy Housing Villa Columbia Mercy Housing
California Senior Dorothy Day Monsignor Lyne, St. Andrew Senior Mercy Riverside, California Senior Properties Bennett House, LP Community, LP Junipero Serra, LP LP Community, LP LP Eliminations Properties $ $ $ 852,773 $ 826,420 $ 1,299,185 $ 938,578 $ $ 3,916,956 - - 1,923 5,763 7,176 7,846 22,708
391 3,620 26,239 23,962 12,729 95,603 162,544
391 3,620 880,935 856,145 1,319,090 1,042,027
4,102,208
Expenses and losses
Compensation - - 184,190 159,135 168,427 279,666 791,418 Administrative 130 1,400 280,073 51,392 137,265 123,508 593,768 Professional services 2,521 9,580 2,499 8,530 6,740 6,945 15,292 52,107 Depreciation and amortization - 157,657 261,887 322,143 187,934 929,621 Grants - 128,561 - - - - 128,561
Facility - - 188,896 95,736 180,981 305,416 771,029
Interest and fees 438 96,951 72,417 134,930 176,142 480,878 Bad debts - - - 588 588
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership (353,320) 353,320 Total expenses and losses (350,669) 11,418 131,060 916,297 647,307 950,691 1,088,546 353,320 3,747,970 Excess (deficiency) of revenues over expenses
Net assets at beginning of year
Other transfers to (from) net assets
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
Net assets at end of year $ 3,896,021 $ 149,916 $ 1,313,619 $ (7,789) $ 972,962 $ 752,591 $ 773,676 $ (3,916,715) $ 3,934,281 Investments in limited partnerships, net
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 $ - $ 127,868 $ 339,919 $ 43,250 $ 339,722 $ 693,206 $ 515,971 $ Cash, tenant security deposits - 57,394 47,802 60,672 20,391 130,564 16,831 Cash, restricted 126 - - 192,282 69,494
Investments - - - -
Investments, restricted - - - - - - -
Accounts receivable, net 110 6,194 314,529 7,373 2,621 45,887 107,917 Due from affiliate, net 1,269,104 - 205 9,227 -
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 30,298 36,211 27,059 20,110 111,512 46,034 Inventory - - - - - -
Assets held for sale
Total current assets 1,269,340 221,754 738,666 138,354 575,126 1,059,890 686,753 Property and equipment
Land and land improvements 1,082,249 3,972,090 2,754,496 3,090,021 1,876,368 2,416,056 Buildings 20,095,787 35,805,378 19,590,560 13,825,757 63,626,763 28,865,848 Furniture and equipment 192,394 2,049,327 336,064 847,781 2,673,574 991,710 Predevelopment project costs - - - - - - -
Construction in progress - - - - - - -
Accumulated depreciation - (7,863,508) (14,040,058) (10,718,875) (6,177,279) (13,179,939) (9,435,246) Net property and equipment 13,506,922 27,786,737 11,962,245 11,586,280 54,996,766 22,838,368 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
1,593,457 3,585,903 444,798 3,985,835 1,249,415
932,516
47,568
47,568
(51,975,150) (6,495)
50,000 -
13,577,249
22,827 40,722 8,366 40,659 54,697 46,273
(38,347,901) 1,616,284 3,626,625 453,164 4,026,494 1,304,112 978,789 (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 $ 2,780 $ 43,872 $ 233,788 $ 89,735 $ 101,165 $ 238,483 $ 91,122 $ 1,118 Due to affiliates 1,050,946 26,784 33,240 11,418 121,616 38,712 91,691 64,972 Accrued interest - - 2,746 5,651
Accrued interest, affiliates - - -
Current portion of notes payable 47,705 75,760
Current portion of notes payable, affiliates - -
Deferred revenue and other liabilities 66,293 447,462 11,206 836,214 343,769 (3,775) Tenant security deposits 57,706 48,184 60,184 19,716 127,963 16,084 Total current liabilities 1,053,726 194,655 762,674 222,994 1,078,711 830,338 195,122 66,090 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 5,855,260 2,271,002 782,909 1,919,663 2,076,605 Accrued interest, affiliates - - - -
Notes payable, less current portion, net 1,187,838 21,310,719 33,487,882 11,470,164 10,774,237 37,402,021 18,109,118 Notes payable, less current portion, affiliates 1,139,500 1,201,238 - - - Deferred revenue and other liabilities 2,279 7,455,557 1,544 6,650,003 12,500 Total long-term liabilities 2,327,338 22,514,236 46,798,699 13,742,710 18,207,149 39,334,184 20,185,723 Total liabilities 3,381,064 22,708,891 47,561,373 13,965,704 19,285,860 40,164,522 20,380,845 66,090 Net assets
Net assets without donor restrictions, controlling (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) Net assets with donor restrictions
Total net assets (40,459,625) (7,363,931) (15,409,345) (1,411,941) (3,097,960) 17,196,246 4,123,065 (25,017) Total liabilities and net assets $ (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 $ 113,819 $ $ 44,185 $ $ 306,694 $ 673,603 $ 193,045 $ 351,947 Cash, tenant security deposits 96,647 77,560 59,379 84,890 53,525 33,001 Cash, restricted - - 933,710 152,549
Investments - - -
Investments, restricted - - - - - -
Accounts receivable, net 6,627 - 68,219 63,323 4,593 49,050 144,587 Due from affiliate, net 132,544 - 70,000 9,475 -
Pledges receivable, net - - -
Grants receivable 10,563
Current portion of notes and interest receivable - -
Current portion of notes and interest receivable, affiliates - - - Prepaid expenses and other assets 39,107 50,068 32,420 28,926 38,545 52,461 Inventory - - - - - -
Assets held for sale
Total current assets 256,200 132,544 240,032 70,000 461,816 801,487 1,278,438 734,545 Property and equipment
Land and land improvements 3,897,034 4,434,686 5,722 20,714 1,278,420 2,037,195 Buildings 27,204,278 36,005,174 11,321,773 20,566,496 29,669,712 23,423,671 Furniture and equipment 502,903 936,911 314,516 181,140 964,152 481,726 Predevelopment project costs - - - - - -
Construction in progress - - - - - -
Accumulated depreciation (7,790,974) - (12,212,752) (3,866,106) (4,493,158) (5,232,927) (4,489,877) Net property and equipment 23,813,241 29,164,019 7,775,905 16,275,192 26,679,357 21,452,715 Other long-term assets
Restricted property reserves 542,151 - 4,349,030 - 3,755,262 631,818 1,291,811 373,756 Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net 14,205,777 29,007 Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net 48,137 - 53,747 - 1,038,407 9,711 26,572 2,192,993 Total other long-term assets 590,288 14,205,777 4,402,777 29,007 4,793,669 641,529 1,318,383 2,566,749 Total assets $ 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 $ 80,256 $ 1,118 $ 247,584 $ 1,118 $ 370,894 $ 260,709 $ 48,002 $ 40,473 Due to affiliates 48,030 169,166 - 105,429 39,526 48,837 40,874 Accrued interest 13,703 - 25,101
Accrued interest, affiliates - -
Current portion of notes payable 200,646 131,051
Current portion of notes payable, affiliates -
Deferred revenue and other liabilities 52,483 4,350 69,701 43,653 3,258 10,750 Tenant security deposits 95,350 76,635 57,881 83,016 52,370 32,277 Total current liabilities 490,468 170,284 328,569 106,547 498,476 583,056 152,467 124,374 Long-term liabilities
Due to affiliates - - - - - -
Accrued interest 3,317,434 731,989 1,196,986 612,165 1,212,617 1,448,574 Accrued interest, affiliates - 1,037,718
Notes payable, less current portion, net 16,427,305 10,944,343 9,134,371 7,470,454 17,346,998 7,911,151 Notes payable, less current portion, affiliates - - 4,452,969 700,000 - Deferred revenue and other liabilities 150,021 1,123 1,116 15,000 150,734 Total long-term liabilities 19,894,760 11,676,332 10,332,480 13,574,422 19,274,615 9,510,459 Total liabilities 20,385,228 170,284 12,004,901 106,547 10,830,956 14,157,478 19,427,082 9,634,833 Net assets
Net assets without donor restrictions, controlling 4,274,501 14,168,037 21,801,927 (7,540) 2,200,434 3,560,730 9,849,096 15,119,176 Net assets without donor restrictions, noncontrolling - - - - Total net assets without donor restrictions 4,274,501 14,168,037 21,801,927 (7,540) 2,200,434 3,560,730 9,849,096 15,119,176 Net assets with donor restrictions
Total net assets 4,274,501 14,168,037 21,801,927 (7,540) 2,200,434 3,560,730 9,849,096 15,119,176 Total liabilities and net assets $ 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 El Monte Veterans El Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Assets
Current assets
Cash and cash equivalents $ $ 21,343 $ $ 39,414 $ 64,265 $ 321,816 $ $ 135,122 Cash, tenant security deposits 32,410 28,114 47,656 13,461 35,264 Cash, restricted - 238,742
Investments - - - -
Investments, restricted - - - - -
Accounts receivable, net 9,306 - (58) 3,780 4,417 - 3,880 Due from affiliate, net 55,959 - 9,917 - 26,460 30,818
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 10,047 13,563 23,461 32,149 16,814 Inventory - - - - -
Assets held for sale
Total current assets 55,959 73,106 9,917 81,033 139,162 610,585 26,460 221,898 Property and equipment
Land and land improvements 2,946,584 1,493,737 1,880,926 675,178 1,293,775 Buildings 8,432,461 10,301,452 15,036,791 13,057,001 10,071, 330 Furniture and equipment 181,490 202,287 218,032 403,093 602,016 Predevelopment project costs - - - - -
Construction in progress - 2,467 - - -
Accumulated depreciation (2,924,517) (2,456,807) (4,416,702) (4,057,675) (2,987,178) Net property and equipment 8,636,018 9,543,136 12,719,047 10,077,597 8,979,943 Other long-term assets
Restricted property reserves 297,518 283,416 249,549 564,433 614,059 Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net - -
Investments in limited partnerships, net (342) (388) 82,362 Notes and interest receivable, net - - -
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net 18,639 19,916 33,532 23,411 25,858
Total other long-term assets (342) 316,157 (388) 303,332 283,081 587,844 82,362 639,917 Total assets $ 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 El Monte Veterans El Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Liabilities
Current liabilities
Accounts payable and accrued expenses $ 1,118 $ 81,326 $ 1,118 $ 32,293 $ 119,450 $ 55,846 $ 1,118 $ 37,890 Due to affiliates 78,647 5,748 31,384 46,042 101,364 23,881 44,726 26,459 Accrued interest 2,094 - 1,058 8,500 3,550 -
Accrued interest, affiliates - - - -
Current portion of notes payable 93,891 21,915 35,718 53,558 Current portion of notes payable, affiliates - -
Deferred revenue and other liabilities 2,696 398 17,907 535 Tenant security deposits 31,914 27,439 47,779 12,963 33,967 Total current liabilities 79,765 217,669 32,502 129,145 330,718 150,333 45,844 98,316 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 839,397 916,687 944,591 452,766 520,144 Accrued interest, affiliates -
Notes payable, less current portion, net 4,025,930 4,494,681 5,678,697 3,941,999 - 4,043,066 Notes payable, less current portion, affiliates - - - 1,074,176 587,838 - Deferred revenue and other liabilities 174,167 1,201,202 Total long-term liabilities 4,865,327 - 5,411,368 7,871,631 6,183,805 4,563,210 Total liabilities 79,765 5,082,996 32,502 5,540,513 8,202,349 6,334,138 45,844 4,661,526 Net assets
Net assets without donor restrictions, controlling (24,148) 3,942,285 (22,973) 4,386,988 4,938,941 4,941,888 62,978 5,180,232 Net assets without donor restrictions, noncontrolling - - - - - - Total net assets without donor restrictions (24,148) 3,942,285 (22,973) 4,386,988 4,938,941 4,941,888 62,978 5,180,232 Net assets with donor restrictions
Total net assets (24,148) 3,942,285 (22,973) 4,386,988 4,938,941 4,941,888 62,978 5,180,232 Total liabilities and net assets $ 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 $ 169,784 $ 28,949 $ 17,303 $ $ 633,165 $ $ 517,336 $ Cash, tenant security deposits 27,448 9,293 31,742 85,845 63,811 Cash, restricted - - 37,304
Investments - - -
Investments, restricted - - - - -
Accounts receivable, net 2,064 5,209 3,009 3,334 - 101,903 Due from affiliate, net - - 233,982 125,398 - 8,500
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 10,860 27,823 13,733 26,218 25,120 Inventory - - - - -
Assets held for sale
Total current assets 210,156 71,274 65,787 233,982 748,562 125,398 745,474 8,500 Property and equipment
Land and land improvements - 1,120,611 324,803 1,060,410 985,629 Buildings 3,610,847 4,357,818 4,127,890 11,326,978 24,302,115 Furniture and equipment 102,811 302,250 154,890 652,629 700,486 Predevelopment project costs - - - - -
Construction in progress - - - - 199
Accumulated depreciation (1,330,078) (1,614,343) (3,822,670) (2,713,992) (3,943,654) Net property and equipment 2,383,580 4,166,336 784,913 10,326,025 22,044,775 Other long-term assets
Restricted property reserves 666,730 3,465,288 215,283 1,989,658 - 807,390 - Long-term investments - - - - -
Long-term investments, restricted - -
Due from affiliates - -
Pledges receivable, net
Investments in limited partnerships, net 882,340 500,378 574,066 Notes and interest receivable, net - - -
Notes and interest receivable, affiliates 690,000 166
Allowance for impaired assets - - Other assets, net 11,372 32,564 - 25,176 Total other long-term assets 666,730 3,476,660 215,283 882,340 2,022,222 1,190,378 832,566 574,232 Total assets $ 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 $ 58,288 $ 89,339 $ 26,537 $ 1,118 $ 72,653 $ 1,118 $ 140,157 $ 1,118 Due to affiliates - 5,922 150,146 114,727 84,052 109,302 Accrued interest 284 - 1,196 13,301 - 1,730
Accrued interest, affiliates - - -
Current portion of notes payable 33,375 33,643 131,934 33,805 Current portion of notes payable, affiliates - -
Deferred revenue and other liabilities 480 3,774 3,573 16,151 3,168 Tenant security deposits 26,948 7,952 32,045 85,343 61,383 Total current liabilities 119,375 106,987 247,140 1,118 319,382 115,845 324,295 110,420 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 1,336,604 571,019 1,550,860 35,491 2,096,150 Accrued interest, affiliates 752,822 -
Notes payable, less current portion, net 2,068,853 4,893,294 838,828 2,761,580 690,000 14,142,793 Notes payable, less current portion, affiliates - - - 3,100,000 - 690,000 Deferred revenue and other liabilities 6,650 3,318 4,205 15,000 Total long-term liabilities 3,405,457 5,470,963 2,393,006 6,654,098 690,000 16,943,943 Total liabilities
3,524,832 5,577,950 2,640,146 1,118 6,973,480 805,845 17,268,238 110,420
Net assets
Net assets without donor restrictions, controlling (264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 472,312 Net assets without donor restrictions, noncontrolling - - - - Total net assets without donor restrictions (264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 472,312 Net assets with donor restrictions
Total net assets
(264,366) 2,136,320 (1,574,163) 1,115,204 6,123,329 509,931 6,354,577 472,312 Total liabilities and net assets $ 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 $ 127,557 $ 527,270 $ $ 90,369 $ 634,141 $ $ 791,149 $ Cash, tenant security deposits 48,447 18,092 58,486 28,229 127,599 Cash, restricted 127,386 386,871 2,087
Investments - -
Investments, restricted - - - -
Accounts receivable, net 3,173 33,417 111,709 - 5,283
Due from affiliate, net - 5,278 40,878 -
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 19,282 33,010 15,717 54,276 77,088 Inventory - - - - -
Assets held for sale
Total current assets 198,459 739,175 164,572 1,220,504 40,878 1,003,206 Property and equipment
Land and land improvements 10,289,378 75,402 2,629,622 365,207 4,147,129 Buildings 13,219,953 27,906,509 9,890,258 32,996,020 58,942,129 Furniture and equipment 278,106 486,330 445,854 624,527 686,247 Predevelopment project costs - - - -
Construction in progress - - - - -
Accumulated depreciation (3,541,968) (3,322,678) (2,138,228) (4,050,067) (4,970,276) Net property and equipment 20,245,469 25,145,563 10,827,506 29,935,687 58,805,229 Other long-term assets
Restricted property reserves 881,317 1,241,757 1,148,353 1,379,497 - 617,367 Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net
Investments in limited partnerships, net 116,731 490,456 120,568 Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net 57,838 894,018 - 42,581 1,583,702 - 61,751 Total other long-term assets 939,155 2,135,775 116,731 1,190,934 2,963,199 490,456 679,118 120,568 Total assets $ 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 $ 38,155 $ 53,244 $ (311) $ 41,643 $ 86,574 $ (311) $ 108,974 $ 130 Due to affiliates 37,500 43,754 10,125 43,754 49,713 40,878 14,231 Accrued interest 78,772 - 238,357 - 8,292
Accrued interest, affiliates - -
Current portion of notes payable 100,490 110,892 153,502 Current portion of notes payable, affiliates
Deferred revenue and other liabilities 499 207 10,664 6,316 9,742 Tenant security deposits 48,434 17,676 57,894 27,438 124,545 Total current liabilities 124,588 294,143 9,814 110,201 513,331 49,402 445,933 14,361 Long-term liabilities
Due to affiliates - - -
Accrued interest 1,309,253 2,050,533 902,111
Accrued interest, affiliates 2,268 - -
Notes payable, less current portion, net 8,851,202 17,778,404 4,053,871 22,078,016 - 32,288,361 Notes payable, less current portion, affiliates 67,491 500,000 740,000 1,120,000 1,733,283 Deferred revenue and other liabilities 1,691 21,453 30,000 Total long-term liabilities 10,230,214 18,280,095 - 6,865,857 23,198,016 34,953,755 Total liabilities 10,354,802 18,574,238 9,814 6,976,058 23,711,347 49,402 35,399,688 14,361 Net assets
Net assets without donor restrictions, controlling 11,028,281 9,446,275 106,917 5,206,954 10,408,043 481,932 25,087,865 106,207 Net assets without donor restrictions, noncontrolling - - - - - - Total net assets without donor restrictions 11,028,281 9,446,275 106,917 5,206,954 10,408,043 481,932 25,087,865 106,207 Net assets with donor restrictions -
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 $ 187,773 $ $ 347,474 $ 125,058 $ $ 274,757 $ 209,897 $ 667,982 Cash, tenant security deposits 7,463 65,837 70,041 94,719 24,213 9,946 Cash, restricted 240,441 2,628,289 26,591 46,887
Investments - - - -
Investments, restricted - - - - - -
Accounts receivable, net 12,078 - 18,068 5,252 52,880 278,510 6,843 Due from affiliate, net 634 102,411 - 1,033 80,383 26,129 9,878 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 27,603 30,957 16,922 80,634 62,378 24,091 Inventory - - - - - -
Assets held for sale
Total current assets 235,551 102,411 702,777 218,306 80,383 3,157,408 611,467 755,749 Property and equipment
Land and land improvements 1,112,787 2,991,331 750,000 1,700,519 512,587 245,919 Buildings 13,883,195 22,957,399 2,362,713 37,969,781 50,228,965 26,344,229 Furniture and equipment 434,035 437,132 7,108 643,584 943,205 488,807 Predevelopment project costs - - - - -
Construction in progress - - - - - -
Accumulated depreciation (2,123,201) (2,771,158) (1,613,084) (1,767,108) (4,925,853) (2,639,160) Net property and equipment 13,306,816 23,614,704 1,506,737 38,546,776 46,758,904 24,439,795 Other long-term assets
Restricted property reserves 6,342,004 641,807 151,844 428,210 1,341,118 1,016,922 Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net -
Investments in limited partnerships, net 803 134,947
Notes and interest receivable, net - -
Notes and interest receivable, affiliates
Allowance for impaired assets - - Other assets, net 48,061 48,083 4,420,116 1,879,541 837,802 Total other long-term assets 6,390,065 803 689,890 151,844 134,947 4,848,326 3,220,659 1,854,724 Total assets $ 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 $ 33,983 $ (311) $ 57,879 $ 58,287 $ (311) $ 103,987 $ 95,039 $ 42,271 Due to affiliates 57,223 116,156 74,460 90,515 889,903 46,856 86,099 Accrued interest - 2,040 22,281 - 269,195 225,937
Accrued interest, affiliates - - -
Current portion of notes payable 28,001 111,877 149,318 46,159 Current portion of notes payable, affiliates - -
Deferred revenue and other liabilities 1,422 216 29,415 8,332 4,951 3,307 Tenant security deposits 6,085 65,333 69,541 94,319 23,717 8,969 Total current liabilities 98,713 115,845 227,929 291,401 90,204 1,096,541 589,076 412,742 Long-term liabilities
Due to affiliates - - -
Accrued interest 244,350 2,139,109 2,436,351
Accrued interest, affiliates -
Notes payable, less current portion, net 4,877,883 14,741,572 5,747,174 20,841,836 31,560,994 17,155,823 Notes payable, less current portion, affiliates 1,341,552 - - - - 970,000 400,000 Deferred revenue and other liabilities 1,233 499,556 1,505,227 399,674 Total long-term liabilities 6,463,785 16,880,681 5,748,407 23,777,743 34,036,221 17,955,497 Total liabilities 6,562,498 115,845 17,108,610 6,039,808 90,204 24,874,284 34,625,297 18,368,239 Net assets
Net assets without donor restrictions, controlling 13,369,934 (12,631) 7,898,761 (4,162,921) 125,126 21,678,226 15,965,733 8,682,029 Net assets without donor restrictions, noncontrolling - - - Total net assets without donor restrictions 13,369,934 (12,631) 7,898,761 (4,162,921) 125,126 21,678,226 15,965,733 8,682,029 Net assets with donor restrictions
Total net assets 13,369,934 (12,631) 7,898,761 (4,162,921) 125,126 21,678,226 15,965,733 8,682,029 Total liabilities and net assets $ 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) 0) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Assets
Current assets
Cash and cash equivalents $ 492,762 $ 339,283 $ 204,137 $ 49,600 $ $ $ 2,013,073 $ Cash, tenant security deposits 26,750 123,973 60,657 8,796 84,921 Cash, restricted 38,926 331,592 - 221,696
Investments - - -
Investments, restricted - - - - -
Accounts receivable, net 6,548 37,970 13,442 10,919 60,941 Due from affiliate, net - - 15,914 -
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 38,942 89,578 22,306 3,072 86,789 Inventory - - - - -
Assets held for sale
Total current assets 603,928 922,396 300,542 72,387 15,914 2,467,420 Property and equipment
Land and land improvements 7,303,126 5,862,894 1,302,463 84,914 2,072,976 Buildings 28,136,631 58,093,384 15,870,992 2,791,081 28,526,712 Furniture and equipment 562,039 934,075 308,821 18,132 660,811 Predevelopment project costs - - - -
Construction in progress - - - - -
Accumulated depreciation (2,042,382) (3,205,516) (3,148,384) (1,224,692) (1,937,041) Net property and equipment 33,959,414 61,684,837 14,333,892 1,669,435 29,323,458 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
1,654,302 876,001 415,021 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) Total assets $ 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) 0) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Liabilities
Current liabilities
Accounts payable and accrued expenses $ 195,285 $ 909,022 $ 76,433 $ 10,586 $ (311) $ (311) $ 92,255 $ (311) Due to affiliates 235,360 1,816,878 17,364 172,233 26,733 12,681 136,364 7,990 Accrued interest 35,121 19,738 12,754 24 - 55,853
Accrued interest, affiliates - - - -
Current portion of notes payable 248,772 68,974 66,989 3,960 285,777 Current portion of notes payable, affiliates -
Deferred revenue and other liabilities 9,916 6,190 4,250 34 10,370 Tenant security deposits 26,252 123,486 60,147 8,300 85,004 Total current liabilities 750,706 2,944,288 237,937 195,137 26,422 12,370 665,623 7,679 Long-term liabilities
Due to affiliates - - - -
Accrued interest 286,521 478,345 157,680 511,984
Accrued interest, affiliates - - -
Notes payable, less current portion, net 23,378,333 35,977,456 8,898,633 1,222,591 - 21,412,768 Notes payable, less current portion, affiliates - 1,500,000 4,000,000 - - Deferred revenue and other liabilities 904,917 524,252 - 1,444,232 Total long-term liabilities 24,569,771 38,480,053 13,056,313 1,222,591 23,368,984 Total liabilities 25,320,477 41,424,341 13,294,250 1,417,728 26,422 12,370 24,034,607 7,679 Net assets
Net assets without donor restrictions, controlling 10,937,427 22,124,300 1,788,178 377,575 (10,526) (12,439) 12,009,754 (3,872,562) Net assets without donor restrictions, noncontrolling - - - - Total net assets without donor restrictions 10,937,427 22,124,300 1,788,178 377,575 (10,526) (12,439) 12,009,754 (3,872,562) Net assets with donor restrictions -
Total net assets 10,937,427 22,124,300 1,788,178 377,575 (10,526) (12,439) 12,009,754 (3,872,562) Total liabilities and net assets $ 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 $ 594,419 $ $ 862,390 $ $ 1,256,132 $ $ 74,369 $ Cash, tenant security deposits 41,903 37,035 45,127
Cash, restricted 512,419 109,994 485,435
Investments - - -
Investments, restricted - - - -
Accounts receivable, net 20,776 - 13,406 100,000 - 960
Due from affiliate, net 71 15,487 437 56,439 -
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 50,216 40,705 24,574
Inventory - - -
Assets held for sale
Total current assets 707,385 15,487 1,466,392 1,466,126 56,439 630,465 Property and equipment
Land and land improvements 9,082,485 326,298 3,210,595 3,727,256 Buildings 26,662,804 22,339,848 21,787,900
Furniture and equipment 528,386 1,626,619 33,808 669,820 Predevelopment project costs - - -
Construction in progress - - 17,619,911 -
Accumulated depreciation (4,216,337) (4,234,503) (2,273,976) Net property and equipment 32,057,338 20,058,262 20,864,314 23,911,000 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
805,814 - 2,701,394 - 172,824
(29,010,782) (69,539)
1,425,205
112,906 - 59,070 - 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 11, LLC GP Liabilities
Current liabilities
Accounts payable and accrued expenses $ 127,866 $ (311) $ 238,526 $ - $ 3,547,195 $ (311) $ 30,256 $ (211) Due to affiliates 200,680 411 798,564 78,243 29,979 56,877 Accrued interest 68,622 - 86,031 30,444 - 3,006
Accrued interest, affiliates - - - -
Current portion of notes payable 332,409 1,284,952 10,511,380 30,546 Current portion of notes payable, affiliates
Deferred revenue and other liabilities 1,371 856 5,995
Tenant security deposits 41,403 36,631 42,922
Total current liabilities 571,671 200,369 1,646,996 411 14,887,583 77,932 142,704 56,666 Long-term liabilities
Due to affiliates
Accrued interest 690,981
Accrued interest, affiliates - -
Notes payable, less current portion, net 20,434,974 25,545,495 (295,046) - 6,844,346 Notes payable, less current portion, affiliates - 5,000,000 2,164,800 Deferred revenue and other liabilities 476,329 483,198 - Total long-term liabilities 20,911,303 26,028,693 4,704,954 9,700,127 Total liabilities 21,482,974 200,369 27,675,689 411 19,592,537 77,932 9,842,831 56,666 Net assets
Net assets without donor restrictions, controlling 12,200,469 (29,195,664) (3,390,571) (69,950) 2,839,903 1,403,712 14,940,749 (9,667) Net assets without donor restrictions, noncontrolling - - - Total net assets without donor restrictions 12,200,469 (29,195,664) (3,390,571) (69,950) 2,839,903 1,403,712 14,940,749 (9,667) Net assets with donor restrictions
Total net assets
12,200,469 (29,195,664)
(3,390,571) (69,950)
2,839,903 1,403,712
14,940,749 (9,667)
Total liabilities and net assets $ 33,683,443 $ (28,995,295) $ 24,285,118 $ (69,539) $ 22,432,440 $ 1,481,644 $ 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 $ 29,800 $ $ 1,276,694 $ - $ $ 70,491 $ 521,040 $ Cash, tenant security deposits 29,527 - 44,020 72,126
Cash, restricted 121,893 202,749 4,575 341,816 260,847
Investments - - -
Investments, restricted - - - -
Accounts receivable, net 4,223 121,471 2,437 6,074
Due from affiliate, net - - 1,255
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 11,223 39,322 387,500 30,053 32,151 Inventory - - - - -
Assets held for sale
Total current assets 196,666 1,640,236 392,075 488,817 893,493 Property and equipment
Land and land improvements 1,713,183 1,644,910 2,883,622 2,786,651 Buildings 9,258,022 37,049,990 19,510,565 33,781,233
Furniture and equipment 181,882 798,647 539,400 446,889 Predevelopment project costs - 2,111,116 - -
Construction in progress - - - - -
Accumulated depreciation (1,427,583) (1,358,349) (2,211,493) (4,188,589) Net property and equipment 9,725,504 38,135,198 2,111,116 20,722,094 32,826,184 Other long-term assets
Restricted property reserves 214,247 806,128 2,739,225 1,750,388 Long-term investments
Long-term investments, restricted -
Due from affiliates
Pledges receivable, net -
Investments in limited partnerships, net (137) (118) (74) Notes and interest receivable, net - -
Notes and interest receivable, affiliates 3,473,436
Allowance for impaired assets - -
Other assets, net 19,047 - 115,864 105,628 18,851
Total other long-term assets 233,294 (137) 921,992 3,473,318 2,844,853 1,769,239 (74) Total assets $ 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 11) LLC GP LP (Candlestick) Cottonwood LLC West Beamer) (Britton Street) LLC, GP Liabilities
Current liabilities
Accounts payable and accrued expenses $ 25,938 $ (311) $ 351,100 $ 8,765 $ Due to affiliates 171,065 5,652 61,221 14,823
Accrued interest 5,609 -
Accrued interest, affiliates - -
Current portion of notes payable 52,410 81,672 -
Current portion of notes payable, affiliates - - 3,312
Deferred revenue and other liabilities 2,470 27,290
Tenant security deposits 29,032 42,648
Total current liabilities 286,524 5,341 563,931 26,900
(311) $ 157,816 $ 89,491 $
9,219 420,358 1,529,386
44,535
413,255
13,238 29,184
41,478 70,044
8,908 632,890 2,175,895
Long-term liabilities
Due to affiliates - - - - -
Accrued interest 458,127 704,004 174,276 373,936 1,047,391 Accrued interest, affiliates - 111,948
Notes payable, less current portion, net 6,532,022 17,500,367 2,325,672 - 5,593,260 24,803,089 Notes payable, less current portion, affiliates 50,000 - - 4,255,745 5,005,485 Deferred revenue and other liabilities - 1,640
Total long-term liabilities 7,040,149 18,204,371 2,499,948 10,334,889 30,857,605 Total liabilities 7,326,673 5,341 18,768,302 2,526,848 8,908 10,967,779 33,033,500 (311)
8,587
8,276
8,276
Net assets
Net assets without donor restrictions, controlling 2,828,791 (5,478) 21,929,124 (23,657) 3,464,410 13,087,985 2,455,416 (8,350) Net assets without donor restrictions, noncontrolling - - - - Total net assets without donor restrictions 2,828,791 (5,478) 21,929,124 (23,657) 3,464,410 13,087,985 2,455,416 (8,350) Net assets with donor restrictions
Total net assets
Total liabilities and net assets
2,828,791 (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
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
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) Assets
Current assets
Cash and cash equivalents $ 52,353 $ $ 324,314 $ - $ 1,542,492 $ $ 68,859 $ Cash, tenant security deposits 60,000 77,693 - 39,852
Cash, restricted 182,289 201,219 280,682 144,790 90,643 11,740 Investments - -
Investments, restricted - - - - -
Accounts receivable, net 117,167 106,602 - 28,235 88,825 Due from affiliate, net - - 6,010 2,100
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 27,945 30,428 35,506 33,313 350,000 Inventory - - - -
Assets held for sale
Total current assets 439,754 740,256 280,682 1,796,885 283,740 361,740 Property and equipment
Land and land improvements 926,421 5,133,769 2,145,214 3,641,991 Buildings 24,988,476 25,959, 312 31,171,879 16,981,916
Furniture and equipment 495,821 420,564 55,609 520,443 567,688 Predevelopment project costs - - - - 2,301,068
Construction in progress - - 99,876,624 - -
Accumulated depreciation (311,966) (1,234,088) (1,956,369) (375,013) Net property and equipment 26,098,752 30,279,557 99,932,233 31,881,167 20,816,582 2,301,068 Other long-term assets
Restricted property reserves 1,021,233
Long-term investments
Long-term investments, restricted
Due from affiliates - - -
Pledges receivable, net -
Investments in limited partnerships, net (21) - 16
Notes and interest receivable, net - - -
Notes and interest receivable, affiliates - -
Allowance for impaired assets - -
Other assets, net 69,877 - 94,914 49,669 98,288 90,891
Total other long-term assets 69,877 (21) 94,914 49,669 1,119,521 16 90,891 Total assets $ 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
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
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) Liabilities
Current liabilities
Accounts payable and accrued expenses $ 2,142,128 $ (311) $ 164,375 $ 11,893,198 $ 115,683 $ (311) $ 76,955 $ 503,284 Due to affiliates 424,972 7,738 580,046 4,858,643 542,500 6,383 838,900 4,155 Accrued interest 41,050 6,852 48,648 88,327 - 30,621
Accrued interest, affiliates - - - -
Current portion of notes payable 15,890,144 4,289,988 36,859,675 614,611 18,628,042 - Current portion of notes payable, affiliates 1,449,818 2,155 - 109,121 Deferred revenue and other liabilities 32,837 20,491 622 5,018 Tenant security deposits 14,656 74,330 39,352 61,066
Total current liabilities 18,545,787 7,427 6,585,900 53,662,319 1,401,095 6,072 19,640,602 616,560 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 252,015 277,997 1,364,007 44,577 55,869 Accrued interest, affiliates -
Notes payable, less current portion, net 2,573,714 4,239,894 39,278,648 20,659,771 - 619,490 2,000,000 Notes payable, less current portion, affiliates 3,800,000 - - 4,511,304 - - Deferred revenue and other liabilities 884,379 313,092 1,082,436 1,781,764 Total long-term liabilities 7,510,108 4,830,983 46,236,395 22,441,535 - 664,067 2,055,869 Total liabilities 26,055,895 7,427 11,416,883 99,898,714 23,842,630 6,072 20,304,669 2,672,429 Net assets
Net assets without donor restrictions, controlling 552,488 (7,448) 19,697,844 363,870 10,954,943 (6,056) 886,544 (9,621) Net assets without donor restrictions, noncontrolling - - - - - - - Total net assets without donor restrictions 552,488 (7,448) 19,697,844 363,870 10,954,943 (6,056) 886,544 (9,621) Net assets with donor restrictions - -
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
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)
Assets
Current assets
Cash and cash equivalents $ $ - $ $ - $ $ 3,100 $ $
Cash, tenant security deposits
Cash, restricted 349,906 2,190,793 39,741 75,157
Investments - - -
Investments, restricted - - -
Accounts receivable, net 742,009 - 78,929
Due from affiliate, net - - 533
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 3,110
Inventory -
Assets held for sale
Total current assets
1,095,025 2,190, 793
Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress 3,696,442
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
3,696,442
122,303 75,157
22,500 2,695,450 2,352,753
192,134
35,784,163 20,420,700 12,783,745
35,806,663 23,308,284 15,136,498
1,770,795 87,286
(4,055) - (6,600) 43 (113,804)
114,839 83,704 202,506
(4,055) (6,600) 114,839 43 1,854,499 (113,804) 289,792
Total assets $ (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
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 1,723 14,968,799 412 4,025,948 Long-term liabilities
Due to affiliates - -
Accrued interest 289,116 133,122
Accrued interest, affiliates - -
Notes payable, less current portion, net - (1,888,144) 7,872,371 - 8,376,439 Notes payable, less current portion, affiliates - - - 850,000 Deferred revenue and other liabilities 549,920
Total long-term liabilities (1,888,144) - 8,711,407 - 9,359,561 Total liabilities 1,628 1,095,025 2,223 35,997,622 1,723 23,680,206 412 13,385,509 Net assets
Net assets without donor restrictions, controlling (5,683) 3,696,442 (8,823) 2,114,673 (1,680) 1,604,880 (114,216) 2,115,938 Net assets without donor restrictions, noncontrolling - - - - - Total net assets without donor restrictions (5,683) 3,696,442 (8,823) 2,114,673 (1,680) 1,604,880 (114,216) 2,115,938 Net assets with donor restrictions - - -
Total net assets (5,683) 3,696,442 (8,823) 2,114,673 (1,680) 1,604,880 (114,216) 2,115,938 Total liabilities and net assets $ (4,055) $ 4,791,467 $ (6,600) $ 38,112,295 $ 43 $ 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 $ 1,148,570 $ $ $ - $ 303,536 $ $ - $ Cash, tenant security deposits 26,054 - 44,114 -
Cash, restricted 1,140,131 97,433 37,804 409,615
Investments -
Investments, restricted - - -
Accounts receivable, net 4,083 76,721 - 23,706
Due from affiliate, net 16,808 17,198
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 22,051 22,109
Inventory - -
Assets held for sale
Total current assets 2,357,697 97,433 501,482 433,321
Property and equipment
Land and land improvements 624,581 2,700,000 1,001,221 1 Buildings 14,015,349 4,779,414 -
Furniture and equipment 220,956 125,714 550
Predevelopment project costs - 1,873,357 - -
Construction in progress - - 7,999,437 67,607,479
Accumulated depreciation (258,604) (231,910) -
Net property and equipment 14,602,282 4,573,357 13,673,876 67,608,030 Other long-term assets
Restricted property reserves 791,667 1,500,000
Long-term investments
Long-term investments, restricted
Due from affiliates
Pledges receivable, net - - -
Investments in limited partnerships, net 100 (1) (13,710) Notes and interest receivable, net - - -
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net 15,431 10,653 17,347 66,906
Total other long-term assets 807,098 100 (1) 10,653 1,517,347 (13,710) 66,906 4 Total assets $ 17,767,077 $ 100 $ (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 $ 836,971 $ - $ - $ 9,009 $ 2,626,824 $ - $ 14,460,038 $ - Duetoaffiliates 770,401 1,212 311 3,422 2,472,855 612 1,045,835 312 Accrued interest 28,212 - - - 10,310 - -
Accrued interest, affiliates - - - 13,186 -
Current portion of notes payable 21,025,277 - - 9,215,744 Current portion of notes payable, affiliates 2,748 2,106,289 Deferred revenue and other liabilities 6,843 10,194
Tenant security deposits 25,578 39,915
Total current liabilities 22,696,030 1,212 311 2,131,906 14,375,842 612 15,505,873 312 Long-term liabilities
Due to affiliates - -
Accrued interest - 68,026 436,484
Accrued interest, affiliates 27,619 - -
Notes payable, less current portion, net (229,770) - (141,574) 2,731,404 - 43,086,870 Notes payable, less current portion, affiliates 972,007 2,700,000 1,500,000 - Deferred revenue and other liabilities 2,727,956 3,144 3,369,890 Total long-term liabilities 3,497,812 - 2,558,426 4,302,574 - 46,893,244 Total liabilities 26,193,842 1,212 311 4,690,332 18,678,416 612 62,399,117 312 Net assets
Net assets without donor restrictions, controlling (8,426,765) (1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) Net assets without donor restrictions, noncontrolling - - - - - Total net assets without donor restrictions (8,426,765) (1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) Net assets with donor restrictions - -
Total net assets (8,426,765) (1,112) (312) (8,889) (2,985,711) (14,322) 5,709,140 (308) Total liabilities and net assets $ 17,767,077 $ 100 $ (1) $ 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 $ - $ $ 2,280 $ $ 425,452 $ $ $ Cash, tenant security deposits -
Cash, restricted 8,453
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 165,000
Inventory
Assets held for sale
Total current assets 8,453 167,280 425,452
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
2,207,150
807,437 - 788,769 - 348,053
3,014,587 788,769
1,907,759
348,053 1,907,759
Investments in limited partnerships, net (1) - (2,737) - (3) 99 Notes and interest receivable, net
Notes and interest receivable, affiliates
Allowance for impaired assets
Other assets, net 103,700
Total other long-term assets 103,700 (1) (2,737) (3) 99 Total assets $ 3,126,740 $ (1) $ 956,049 $ (2,737) $ 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 $ 65,519 $ - $ 296,953 $ - $ 217,197 $ - $ 190,341 $ Due to affiliates 311 874 311 832 311 833 411
Accrued interest - - -
Accrued interest, affiliates 10,744 -
Current portion of notes payable - - - -
Current portion of notes payable, affiliates 857,012 134 134,347 362,600 Deferred revenue and other liabilities 2 -
Tenant security deposits
Total current liabilities 933,275 311 297,963 311 352,376 311 553,774 411 Long-term liabilities
Due to affiliates - -
Accrued interest 7,398 315
Accrued interest, affiliates - - -
Notes payable, less current portion, net (43,584) 657,071 - 425,452 - 1,381,332 Notes payable, less current portion, affiliates 2,200,000 - - - - Deferred revenue and other liabilities
Total long-term liabilities 2,156,416 664,469 425,767 1,381,332 Total liabilities 3,089,691 311 962,432 311 778,143 311 1,935,106 411 Net assets
Net assets without donor restrictions, controlling 37,049 (312) (6,383) (3,048) (4,638) (314) (27,347) (312) Net assets without donor restrictions, noncontrolling - - - - - - - - Total net assets without donor restrictions 37,049 (312) (6,383) (3,048) (4,638) (314) (27,347) (312) Net assets with donor restrictions - - -
Total net assets 37,049 (312) (6,383) (3,048) (4,638) (314) (27.347) (312) Total liabilities and net assets $ 3,126,740 $ (1) $ 956,049 $ (2,737) $ 773,505 $ (3) $ 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 $ 59,703 $ $ 12,766 $ 249,444 $ $ $ 21,652,212 Cash, tenant security deposits - 2,489,320
Cash, restricted 1,036,525 14,011,622
Investments - - -
Investments, restricted - - - -
Accounts receivable, net 152,868 - 3,303,399
Due from affiliate, net 800 (1,478,437) 950,396
Pledges receivable, net -
Grants receivable - 10,563
Current portion of notes and interest receivable - -
Current portion of notes and interest receivable, affiliates - Prepaid expenses and other assets 1 313,657 7,500 3,021,548 Inventory - - -
Assets held for sale
Total current assets 59,704 12,766 1,599,626 161,168 (1,478,437) 45,439,060 Property and equipment
Land and land improvements
Buildings
Furniture and equipment
Predevelopment project costs
Construction in progress
Accumulated depreciation
Net property and equipment
10,624,812
10,624,812
2,021,934 3,519,749 2,145,039
11,226,996 7,911,772
3,803
249,133 - -
979,915 7,737,880
(17,008)
2,271,067 15,713,455 17,794,691
700,824
700,824
137,306,555
1,172,171,307
29,379,728
10,386,692
285,133,774
(199,484,899)
1,434,893,157
Other long-term assets
Restricted property reserves - - 1,340,011 66,342,120
Long-term investments - - -
Long-term investments, restricted - -
Due from affiliates - -
Pledges receivable, net - -
Investments in limited partnerships, net 1 63,056,129 (3,402,896) Notes and interest receivable, net (50,000) -
Notes and interest receivable, affiliates (16,343,566) 1,397,285 Allowance for impaired assets -
Other assets, net 219,387 107,000 19,423,933
Total other long-term assets 219,387 1 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 $ 2,533,793 $ $ 4,399 $ 40,092 $ 699,119 $ (359,383) $ 58,412,607 Due to affiliates 336,626 - 12,516 100,000 (1,784,476) 25,990,669 Accrued interest 9,574 - 1,589,805
Accrued interest, affiliates - - - 23,930
Current portion of notes payable - - - - - 160,828,040
Current portion of notes payable, affiliates 27,883 293,234 6,764 67,734 5,645,146 Deferred revenue and other liabilities - 2,196,288
Tenant security deposits 2,504,294
Total current liabilities 2,907,876 297,633 59,372 866,853 (2,143,859) 257,190,779 Long-term liabilities
Due to affiliates -
Accrued interest - 47,582,791
Accrued interest, affiliates - (867,038) 1,065,337
Notes payable, less current portion, net 4,826,533 1,977,999 14,218,251 783,327,585 Notes payable, less current portion, affiliates - - - 1,340,000 (18,904,061) 40,763,327 Deferred revenue and other liabilities - 32,850,402
Total long-term liabilities 4,826,533 - 1,977,999 15,558,251 (19,771,099) 905,589,442 Total liabilities 7,734,409 2,275,632 59,372 16,425,104 (21,914,958) 1,162,780,221 Net assets
Net assets without donor restrictions, controlling 3,169,494 1 8,201 17,253,709 2,977,766 67,799,908 401,312,438 Net assets without donor restrictions, noncontrolling - - - - - Total net assets without donor restrictions 3,169,494 1 8,201 17,253,709 2,977,766 67,799,908 401,312,438 Net assets with donor restrictions
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 $ - $ 711,189 $ 2,050,034 $ 808,687 $ 335,124 $ 1,869,902 $ 1,712,177 $ Developer fees - - - - - -
Services fees 680,983 10,508
Philanthropy
Capital grants 422,013 394,939
Consulting - - - - -
Interest 113,675 60,942 119,944 95 124,189 6,585 24,311 Other 1,561,171 33,141 146,844 24,291 268,994 883,757 13,076 Total revenues 2,355,829 805,272 2,738,835 833,073 1,123,246 2,760,244 1,749,564 10,508 Expenses and losses
Compensation - 216,207 555,087 129,223 462,356 587,973 592,143 - Administrative 2,100,598 181,866 351,710 140,992 113,779 325,022 156,720 11,362 Professional services 4,423 111,579 294,213 62,967 98,015 116,472 93,545 1,573 Depreciation and amortization 831,323 1,448,600 902,006 555,933 1,697,429 1,179,095 Grants - - - - -
Facility 257,872 758,882 348,127 243,078 1,471,175 659,163 Interest and fees 772 842,632 288,836 90,818 490,448 375,431 Bad debts 8,278 77,708 46,871 4,503 96,223 27,955
Provision for impaired assets - - - -
Project expenses
Allocation
(Gain) loss on sale of assets
(Gain) loss on investment in limited partnership (76,864) 135 Total expenses and losses 2,028,157 1,607,897 4,328,832 1,919,022 1,568,482 4,784,742 3,084,052 13,070 Excess (deficiency) of revenues over expenses 327,672 (802,625) (1,589,997) (1,085,949) (445,236) (2,024,498) (1,334,488) (2,562) Net assets at end of year (40,658,736) (6,561,306) (13,743,054) (325,992) (2,652,724) 19,220,744 5,457,553 (22,455) Other transfers to (from) net assets (128,561) - (76,294) - - - - - Net assets at end of year $ (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 $ 1,455,500 $ - $ 1,157,490 $ - $ 934,317 $ 1,458,269 $ 843,620 $ 662,845 Developer fees - - - -
Services fees 17,911 - 15,000
Philanthropy -
Capital grants
Consulting - - -
Interest 6,227 127,748 119,142 72 26,676 712
Other 38,193 41,431 10,086 312,468 467,858 27,717
Total revenues 1,499,920 17,911 1,326,669 15,000 1,063,545 1,770,809 1,338,154 691,274 Expenses and losses
Compensation 233,914 - 449,706 - 372,105 167,239 212,110 162,808 Administrative 159,437 18,766 196,333 14,605 133,310 216,069 164,960 131,086 Professional services 168,775 1,593 227,087 1,573 125,709 83,443 107,349 63,344 Depreciation and amortization 1,089,901 - 1,434,794 424,285 535,902 899,154 1,115,407 Grants - - - -
Facility 515,752 514,479 455,102 414,503 578,210 245,893 Interest and fees 655,385 92,464 147,570 480,666 255,616 271,038 Bad debts 26,316 31,430 60,445 62,423 63,008
Provision for impaired assets - - -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 162 66 - Total expenses and losses 2,849,480 20,521 2,946,293 16,244 1,718,526 1,960,245 2,280,407 1,989,576 Excess (deficiency) of revenues over expenses (1,349,560) (2,610) (1,619,624) (1,244) (654,981) (189,436) (942,253) (1,298,302) Net assets at end of year 5,624,061 14,170,647 23,421,551 (6,296) 2,855,415 3,750,166 10,791,349 16,417,478 Other transfers to (from) net assets - - - - -
Net assets at end of year $ 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 El Monte Veterans El Monte Veterans Apartments, LLC Crossing) Apartments LLC (Trailside Terrace) Terrace) Partners, LP Apartments LLC Apartments, LP Revenues
Rent - net of vacancies $ - $ 466,608 $ $ 325,257 $ 696,262 $ 607,980 $ - $ 466,231 Developer fees - - - -
Services fees 8,500 - - - 10,741
Philanthropy -
Capital grants -
Consulting - -
Interest 95 88 318 5,026 339
Other 10,150 42,633 6,244 130,049 5,626
Total revenues 8,500 476,853 367,978 702,824 743,055 10,741 472,196 Expenses and losses
Compensation - 80,837 - 74,398 191,867 128,877 - 170,112 Administrative 9,355 59,731 854 61,531 101,454 99,066 11,596 90,503 Professional services 1,593 32,079 1,593 33,216 29,886 12,383 1,573 87,617 Depreciation and amortization 366,936 - 322,799 623,467 523,750 - 444,013 Grants - - -
Facility 170,984 127,962 229,614 194,519 116,389
Interest and fees 150,130 144,210 229,288 161,070 75,107 Bad debts 1,105 13,158 64,340 -
Provision for impaired assets -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 38 41 26 Total expenses and losses 10,986 861,802 2,488 777,274 1,469,916 1,119,665 13,195 983,741 Excess (deficiency) of revenues over expenses (2,486) (384,949) (2,488) (409,296) (767,092) (376,610) (2,454) (511,545) Net assets at end of year (21,662) 4,327,234 (20,485) 4,796,284 5,706,033 5,318,498 65,432 5,692,968 Other transfers to (from) net assets - - - - - (1,191)
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 $ 658,687 $ 172,863 $ 383,107 $ $ 1,970,830 $ - $ 887,253 $ Developer fees - - -
Services fees - 44,238 - 8,500
Philanthropy -
Capital grants
Consulting - - -
Interest 58 107,744 110 24,782 7,410
Other 9,220 17,695 20,528 19,797 464,519
Total revenues 667,965 298,302 403,745 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 $ 673,827 $ 1,279,854 $ - $ 601,733 $ 2,233,524 $ - $ 2,003,189 $ Developer fees - - -
Services fees 21,854 140,878 - 205
Philanthropy - -
Capital grants
Consulting - -
Interest 25,088 18,790 40,514 21,413 89
Other 11,707 19,619 11,607 17,250 26,796
Total revenues 710,622 1,318,263 21,854 653,854 2,272,187 140,878 2,030,074 205 Expenses and losses
Compensation 136,641 207,447 - 144,057 348,879 - 257,506 - Administrative 142,362 150,469 22,708 110,626 205,909 141,677 296,647 1,005 Professional services 74,970 163,215 1,573 67,612 256,550 1,573 171,294 1,573 Depreciation and amortization 636,901 760,538 - 489,191 918,800 - 1,735,845 Grants - 38,733 - -
Facility 237,503 266,858 227,575 736,412 717,609
Interest and fees 159,270 494,010 144,653 777,412 663,814 Bad debts 1,711 3,803 21,438 35,229 74,455
Provision for impaired assets - -
Project expenses
Allocation -
(Gain) loss on sale of assets - (19,119) -
(Gain) loss on investment in limited partnership 55 - 189 30 Total expenses and losses 1,389,358 2,085,073 24,336 1,205,152 3,260,072 143,439 3,917,170 2,608 Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
(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 $ 526,695 $ - $ 914,363 $ 995,158 $ - $ 1,120,035 $ 2,232,637 $ 856,983 Developer fees - - -
Services fees 102,411 40,883
Philanthropy -
Capital grants
Consulting - - -
Interest 222,595 13,553 - 253 42,921 16,716
Other 10,980 7,045 15,434 120,586 6,200 3,091
Total revenues 760,270 102,411 934,961 1,010,592 40,883 1,240,874 2,281,758 876,790 Expenses and losses
Compensation 230,687 - 203,824 121,636 - 244,761 288,337 125,118 Administrative 76,674 103,266 190,515 90,331 43,763 146,298 237,787 137,141 Professional services 109,654 1,573 97,204 8,067 1,573 55,969 238,426 94,659 Depreciation and amortization 455,596 - 678,992 274,010 1,205,103 1,376,018 725,645 Grants - - - - -
Facility 151,916 257,065 307,551 344,803 631,448 256,677 Interest and fees 92,419 470,711 273,505 938,045 865,101 378,011 Bad debts 1,610 9,841 36,959 7,037 15,549 8,017
Provision for impaired assets - - -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 97 87
Total expenses and losses 1,118,556 104,936 1,908,152 1,112,059 45,423 2,942,016 3,652,666 1,725,268 Excess (deficiency) of revenues over expenses
Net assets at end of year
Other transfers to (from) net assets
(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
Net assets at end of year $ 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) 0) (Columbia Park) (Odd Fellows) Camino GP, LLC Cienega GP, LLC Mar) LLC Revenues
Rent - net of vacancies $ 1,886,387 $ 1,394,232 $ 1,088,166 $ 104,941 $ - $ $ 2,311,398 $ Developer fees - - -
Services fees - - 15,914 -
Philanthropy
Capital grants -
Consulting - -
Interest - - 112 23 - 996
Other 8,018 619,163 24,460 9,341 40,354
Total revenues 1,894,405 2,013,395 1,112,738 114,305 15,914 2,352,748 Expenses and losses
Compensation 209,056 365,576 120,150 9,550 - - 112,034 - Administrative 259,915 273,685 87,750 25,899 16,769 853 227,896 800 Professional services 140,033 113,378 127,322 5,787 1,573 2,523 64,837 623 Depreciation and amortization 1,408,639 2,338,852 713,846 69,936 - 750,552 Grants - 64,066 -
Facility 446,750 710,965 287,691 47,611 747,275
Interest and fees 966,386 1,066,895 306,656 576 849,237 Bad debts 1,118 7,839 - 45,245
Provision for impaired assets - -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 4 36 46 Total expenses and losses 3,431,897 4,877,190 1,707,481 159,359 18,346 3,412 2,797,076 1,469 Excess (deficiency) of revenues over expenses (1,537,492) (2,863,795) (594,743) (45,054) (2,432) (3,412) (444,328) (1,469) Net assets at end of year 156,978 2,607,622 2,524,786 422,629 (8,094) (9,027) 12,454,082 (3,871,093) Other transfers to (from) net assets 12,317,941 22,380,473 (141,865) - - - - Net assets at end of year $ 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 $ 2,637,964 $ - $ 4,452,355 $ $ $ - $ 558,480 $ Developer fees - - -
Services fees 21,477 - 56,439
Philanthropy - -
Capital grants
Consulting - -
Interest 139 76,176 19
Other 9,824 41,000 54,074
Total revenues 2,647,927 21,477 4,569,531 56,439 612,573 Expenses and losses
Compensation 308,593 - 765,262 - - 158,480 -
Administrative 279,462 22,332 221,704 - 11,076 57,268 103,953 800 Professional services 174,382 1,573 11,494 311 5,232 1,573 61,178 2,523 Depreciation and amortization 1,074,912 - 1,234,142 - 1,027,366 Grants - - -
Facility 419,810 922,198 672 176,321
Interest and fees 853,965 1,143,618 - 217,752
Bad debts 1,106 - 29,745
Provision for impaired assets -
Project expenses
Allocation
(Gain) loss on sale of assets - -
(Gain) loss on investment in limited partnership (27) 2 116 - 48 Total expenses and losses 3,112,230 23,878 4,298,418 313 16,308 59,629 1,774,795 3,371 Excess (deficiency) of revenues over expenses (464,303) (2,401) 271,113 (313) (16,308) (3,190) (1,162,222) (3,371) Net assets at end of year 12,262,748 (29,031,026) (3,499,447) (69,637) 2,856,111 1,406,902 15,850,893 (6,296) Other transfers to (from) net assets 402,024 (162,237) (162,237) - 100 - 252,078 - Net assets at end of year $ 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 $ 451,367 $ $ 1,707,417 $ $ - $ 754,771 $ 2,439,142 $ Developer fees - - -
Services fees - 1,317 -
Philanthropy
Capital grants
Consulting - -
Interest 26 - 301 20,964
Other 4,538 8,646 31,117 25,533
Total revenues 455,931 1,716,063 1,317 786,189 2,485,639 Expenses and losses
Compensation 56,724 254,540 - - 162,285 281,411 -
Administrative 42,581 - 255,188 55 2,117 137,103 202,972 800 Professional services 31,327 1,572 93,298 5,999 1,573 172,235 177,232 1,573 Depreciation and amortization 459,253 - 1,095,681 1,020,575 1,749,015 Grants - - -
Facility 118,975 446,829 311,776 568,024
Interest and fees 230,018 1,604,475 290,756 1,030,141
Bad debts 1,590 19,927 61,252 65,446
Provision for impaired assets - - -
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 103 70 72 Total expenses and losses 940,468 1,675 3,769,938 6,054 3,760 2,155,982 4,074,241 2,445 Excess (deficiency) of revenues over expenses (484,537) (1,675) (2,053,875) (6,054) (2,443) (1,369,793) (1,588,602) (2,445) Net assets at end of year 3,313,328 (3,803) 1,797,737 (17,603) 3,466,853 14,457,778 (8,857,898) (5,905) Other transfers to (from) net assets - 22,185,262 - - 12,901,916 - Net assets at end of year $ 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
Mercy Housing
California 73, LP Baldwin Rose LLC,
(Pico Robertson) GP
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) Revenues
Rent - net of vacancies $ 53,859 $ - $ 904,548 $ $ 3,470,128 $ $ 199,110 $ Developer fees - - -
Services fees
Philanthropy
Capital grants
Consulting
Interest - - 54 -
Other 720 10,830 84,488 142
Total revenues 54,579 915,378 3,554,670 199,252
Expenses and losses
Compensation 65,368 - 118,669 - 729,926 - 31,782 -
Administrative 138,990 1,066 178,946 34,511 399,870 854 110,010 823 Professional services 33,235 1,573 173,397 4,399 10,997 1,573 52,700 4,399 Depreciation and amortization 313,554 - 1,189,553 1,304,230 - 377,878 Grants - - -
Facility 40,470 116,088 320,351 100,169
Interest and fees 181,574 340,755 1,051,660 195,664
Bad debts 4,831 -
Provision for impaired assets -
Project expenses
Allocation
(Gain) loss on sale of assets - -
(Gain) loss on investment in limited partnership 62 34
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
773,191 2,701 2,122,239 38,910 3,817,034 2,461 868,203 5,222 (718,612) (2,701) (1,206,861) (38,910) (262,364) (2,461) (668,951) (5,222) 1,226,100 (4,747) 1,936,429 402,780 (6,129,393) (3,595) 724,505 (4,399) 45,000 - 18,968,276 17,346,700 - 830,990 -
$ 552,488 $ (7,448) $ 19,697,844 $ 363,870 $ 10,954,943 $ (6,056) $ 886,544 $ (9,621) 94 Mercy Housing Calwest
Consolidating Statement of Activities
and Changes in Net Assets
For the Year Ended December 31, 2020
1064 Mission
1064 Mission, LLC Homeless Services 833 Bryant, LLC 833 Bryant, LP Villa de Vida GP GP Center LLC GP (Tipping Point) LLC
Revenues
Rent - net of vacancies $ $
Developer fees
Services fees
Philanthropy -
Capital grants 3,706,208
Consulting -
Interest
Other
Villa de Vida
Mercy Housing
1721 West Capitol California 87, LP
LLC (West Capitol)
$ $ $ $ $ 10,500
33 51
Total revenues 3,706,208 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 $ 1,821,774 $ 113,700 $ $ $ 1,221,668 $ $ $ Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest 2,077 - -
Other 4,062 32,893 8,626
Total revenues 1,827,913 146,593 1,230,294
Expenses and losses
Compensation 263,485 - - 258,230 - -
Administrative 171,745 801 - 91 127,283 301 2,935 -
Professional services 120,302 311 312 4,399 149,497 311 4,399 312 Depreciation and amortization 201,113 - - 223,826 - -
Grants - - -
Facility 195,040 96,414 283,897
Interest and fees 706,532 135 125,065
Bad debts - 71,915
Provision for impaired assets
Project expenses
Allocation
(Gain) loss on sale of assets -
(Gain) loss on investment in limited partnership 1 (4)
Total expenses and losses 1,658,217 97,662 312 4,490 1,239,713 612 7,334 308 Excess (deficiency) of revenues over expenses 169,696 48,931 (312) (4,490) (9,419) (612) (7,334) (308) Net assets at end of year (8,596,461) (50,043) (4,399) (2,976,342) (13,710) 3,784,544 Other transfers to (from) net assets - - - 50 - 1,931,930 Net assets at end of year $ (8,426,765) $ (1,112) $ (312) $ (8,889) $ (2,985,711) $ (14,322) $ 5,709,140 $ (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 $ 43,000 $ $ $ $ $ $ $
Developer fees
Services fees
Philanthropy
Capital grants
Consulting
Interest
Other
Total revenues 43,000
Expenses and losses
Compensation
Administrative 1,552
Professional services 4,399 311
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
Total expenses and losses 5,951 312
Excess (deficiency) of revenues over expenses 37,049 (312) Net assets at end of year
Other transfers to (from) net assets
Net assets at end of year
$ 37,049 $ (312) $
97 1,984
4,399
6,383
(6,383)
311
2,737
3,048
(3,048)
(6,383) $ (3,048) $
239
4,399
4,638
(4,638)
311
3 314
(314)
22,948
4,399
27,347
(27,347)
311
1 312
(312)
(4,638) $ (314) $ (27,347) $ (312)

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 $ $ $ 12,600 $ (6,500) $ $ - $ 61,703,237 Developer fees -
Services fees (1,167,011) 30,748
Philanthropy -
Capital grants 2,000,000 6,523,160
Consulting
Interest - 11 (108,190) 1,271,012
Other 14,554,655 - 20,378,287
Total revenues 12,600 16,548,155 11 (1,275,201) 89,906,444 Expenses and losses
Compensation - 8,862 - 12,214,009
Administrative 5,912 - 21,664 - (1,402,939) 10,260,521
Professional services 4,399 4,399 10,850 4,399 - 5,192,958 Depreciation and amortization - - 17,008 41,909,788
Grants - 102,799
Facility 17,331 - - 19,412,052
Interest and fees 646 (214,715) 22,046,404
Bad debts - 1,263,422
Provision for impaired assets -
Project expenses
Allocation -
(Gain) loss on sale of assets - - (19,119)
(Gain) loss on investment in limited partnership (1) - - (160,869) (187,529) Total expenses and losses 10,311 (1) 4,399 75,715 5,045 (1,778,523) 112,195,305 Excess (deficiency) of revenues over expenses (10,311) 1 8,201 16,472,440 (5,034) 503,322 (22,288,861) Net assets at end of year 66,878,087 279,896,349
Other transfers to (from) net assets 3,179,805 781,269 2,982,800 418,499 143,704,950 Net assets at end of year $ 3,169,494 $ 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
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
Richmond Hills
Sycamore Center
(Red Bluff)
Eliminations
Consolidated
Mercy Properties
California
$ 40,089 $ 503,657 $ 125,933 $ 85,634 $ 132,647 $ $ 887,960 15,005 - 26,726 506 42,237
1,322 - 2,171 (677) - 2,816
988,093 146 - - (12,000) 976,239
6,356 3,768 6,529 5,139 4,717 26,509
988,093 62,918 507,425 161,359 90,773 137,193 (12,000) 1,935,761 3,700,000
3,700,000
60,000
22,000
82,000
96,144 658,571 602,623 368,530 58,366 - 5,484,234
685,902 4,394,710 3,667,467 2,640,978 2,634,992 14,024,049 - 105,508 11,660 32,811 15,819 165,798
(472,553) (3,864,418) (2,823,537) (1,995,205) (1,798,713) (10,954.426) 309,493 1,294,371 1,458,213 1,047,114 910,464 8,719,655 26,889 215,660 288,879 55,076 211,246 797,750
60,000
22,000
26,889 215,660
288,879 55,076
211,246 879,750
Total assets $ 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
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
Richmond Hills
Sycamore Center
(Red Bluff)
Eliminations
Consolidated
Mercy Properties
California
Liabilities
Current liabilities
Accounts payable and accrued expenses $ (416) $ 20,370 $ 62,519 $ 30,978 $ 4,165 $ 17,326 $ 12,000 $ 146,942 Due to affiliates 12,000 - 158,523 170,523
Accrued interest 636,051 7,126 - 1,604 644,781
Accrued interest, affiliates - - -
Current portion of notes payable 62,524 26,248 88,772
Current portion of notes payable, affiliates 83,451 - - - 103,653 187,104 Deferred revenue and other liabilities - 10 9,748 6,517 817 1,375 18,467 Tenant security deposits 14,505 - 26,226 5,000 6 45,737 Total current liabilities 95,035 34,885 708,318 133,371 272,158 46,559 12,000 1,302,326 Long-term liabilities
Due to affiliates
Accrued interest 580,985 580,985
Accrued interest, affiliates - - -
Notes payable, less current portion, net 60,000 1,260,000 2,022,912 346,389 3,689,301 Notes payable, less current portion, affiliates -
Deferred revenue and other liabilities 12,500 12,500
Total long-term liabilities 60,000 1,260,000 2,603,897 358,889 4,282,786 Total liabilities 155,035 34,885 1,968,318 2,737,268 272,158 405,448 12,000 5,585,112 Net assets
Net assets without donor restrictions, controlling 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 Net assets without donor restrictions, noncontrolling - - - Total net assets without donor restrictions 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 Net assets with donor restrictions
Total net assets 4,615,058 364,415 49,138 (828,817) 920,805 853,455 (24,000) 5,950,054 Total liabilities and net assets $ 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
Osocales
Mercy Properties (McIntosh Mobile
California The Haven Leland House Homes)
Richmond Hills
Sycamore Center
(Red Bluff)
Eliminations
Consolidated
Mercy Properties
California
Revenues
Rent - net of vacancies $ - $ 183,953 $ 10,344 $ 510,565 $ 43,202 $ 151,641 $ - $ 899,705 Developer fees - - - -
Services fees 24,000 - (24,000)
Philanthropy - -
Capital grants 39,588 175,944 - 215,532
Consulting - - - - - -
Interest - 40 672 122 76 102 - 1,012
Other 1,657,361 3,536 4,874 2,568 37,778 1,706,117
Total revenues 1,681,361 187,529 55,478 513,255 219,222 189,521 (24,000) 2,822,366 Expenses and losses
Compensation - 93,100 - 76,163 - 7,889 - 177,152
Administrative 781,566 22,305 1,050 46,339 35 12,656 (12,000) 851,951 Professional services 2,915 2,993 2,499 7,880 3,332 2,500 - 22,119 Depreciation and amortization 24,904 169,061 135,417 96,370 101,970 527,722 Grants - - - - -
Facility 64,795 29,336 131,065 10,721 82,161 318,078
Interest and fees 37,800 103,340 5,290 18,398 164,828
Bad debts 2,229 - 2,063 - 4,292
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
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
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
Assets
Current assets
Cash and cash equivalents $ $ 380,324 $ 174,473 $ $ 554,797 Cash, tenant security deposits 65,446 63,002 128,448
Cash, restricted - -
Investments - -
Investments, restricted - - - -
Accounts receivable, net 13,556 4,725 18,281
Due from affiliate, net 455,420 - (455,420) -
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 - 22,759 22,210 44,969 Inventory - - -
Assets held for sale -
Total current assets 455,420 482,085 264,410 (455,420) 746,495 Property and equipment
Land and land improvements 809,872 924,352 1,734,224
Buildings - 5,844,681 2,125,253 7,969,934
Fumiture and equipment 158,541 3,631,483 3,790,024
Predevelopment project costs - - - -
Construction in progress - -
Accumulated depreciation - (5,102,408) (5,006,620) - (10,109,028) Net property and equipment 1,710,686 1,674,468 3,385,154 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
420,142 215,223 - 635,365
(36,211)
(36,211) 420,142
36,211
215,223 36,211 635,365
Total assets $ 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
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
Liabilities
Current liabilities
Accounts payable and accrued expenses $ 117,089 $ 58,947 $ 21,555 $ - $ 197,591 Due to affiliates 121,301 349,179 317,437 (666,616) 121,301 Accrued interest 6,399 6,870 13,269
Accrued interest, affiliates -
Current portion of notes payable 30,356 112,547 142,903 Current portion of notes payable, affiliates - - -
Deferred revenue and other liabilities 10,396 12,181 22,577 Tenant security deposits 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
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
Net assets
Net assets without donor restrictions, controlling 180,819 (1,012,359) (4,389,291) 247,407 (4,973,424) Net assets without donor restrictions, noncontrolling - - Total net assets without donor restrictions 180,819 (1,012,359) (4,389,291) 247,407 (4,973,424) Net assets with donor restrictions
Total net assets
180,819 (1,012,359) (4,389,291) 247,407 (4,973,424)
Total liabilities and net assets $ 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
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
Revenues
Rent - net of vacancies $ - $ 802,551 $ 735,524 $ - $ 1,538,075 Developer fees -
Services fees 56,035 (56,035)
Philanthropy - -
Capital grants
Consulting - -
Interest 778 3,480 4,258
Other 26,739 15,994 42,733
Total revenues 56,035
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
cohnreznick.com

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

Mercy Housing California
Index
Page
Independent Auditor's Report 2
Consolidated Financial Statements
Consolidated Statements of Financial Position 4
Consolidated Statements of Activities 6
Consolidated Statements of Changes in Net Assets 8
Consolidated Statements of Cash Flows 9
Notes to Consolidated Financial Statements 11
Supplementary Information
Index of Consolidating Financial Information 37
1 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 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.

Charlotte, North Carolina
June 6, 2022
3 Mercy Housing California
Consolidated Statements of Financial Position
December 31, 2021 and 2020
2021 2020
Assets
Current assets
Cash and cash equivalents $ 42,024,383 $ 37,660,980
Cash, tenant security deposits 3,857,026 3,376,397
Cash, restricted 13,447,227 17,178,797
Investments - 2,162,999
Accounts receivable, net 13,966,883 10,226,914
Due from affiliates, net 67,671,551 62,786,884
Pledges receivable, net 4,932,317 9,750,000
Grants receivable 53,183 63,745
Notes and interest receivable 48,849 37,729
Notes and interest receivable, affiliates 256,291 265,271 Prepaid expenses and other assets 10,625,318 2,895,946
Assets held for sale 2,056,314 -
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
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
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
See Notes to Consolidated Financial Statements.
5 2021
2020
$ 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
1,129,833,339
1,446,007,865
145,630,385
515,515,004
661,145,389
41,183,074
702,328,463
$ 2,148,336,328
64,066,534
175,770
883,362,201
6,618,312
19,077,651
973,300,468
1,234,492,560
130,113,023
507,762,640
637,875,663
39,237,908
677,113,571
$ 1,911,606,131

Mercy Housing California
Consolidated Statements of Activities
Year Ended December 31, 2021
Programs
Property Resident Housing
Operations Services Development
Total
Without Donor With Donor
Restrictions Restrictions
Revenues
Rent - net of vacancies $ 91,769,802 $ $ $ 91,769,802 $ 91,769,802 $ Developer fees - 18,692,099 18,692,099 18,692,099
Services fees 19,427 2,472,088 - 2,491,515 2,491,515 -
Philanthropy 1,317,538 2,704,084 5,491,579 9,513,201 5,620,830 3,892,371 Capital grants 9,353,328 - 1,588,261 10,941,589 10,941,589 - Consulting 699,856 - 699,856 699,856
Unrealized (loss)/gain and interest (1,678,024) 3,203 460,024 (1,214,797) (1,214,797) Other 6,048,609 50,194 6,654,753 12,753,556 12,753,556
Release of restricted assets 1,947,205 (1,947,205)
Total revenue 106,830,680 5,929,425 32,886,716 145,646,821 143,701,655 1,945,166 Expenses
Compensation 21,127,348 7,866,279 8,201,914 37,195,541 37,195,541 Administrative 11,987,581 1,970,958 2,306,794 16,265,333 16,265,333 Professional services 2,646,190 158,917 960,036 3,765,143 3,765,143 Depreciation and amortization 60,706,056 - 167,820 60,873,876 60,873,876 Grants 273,136 278,779 5,524,580 6,076,495 6,076,495
Facility 30,530,055 3,488 626,290 31,159,833 31,159,833 Interest and fees 24,855,701 - 4,802 24,860,503 24,860,503 Bad debts 2,103,541 25,487 10,216 2,139,244 2,139,244
Project expenses - 437,006 437,006 437,006
Allocation 3,469,194 2,255,257 5,724,451 5,724,451
(Gain) loss on sale of assets 7,492 - 7,492 7,492
(Gain) loss on investment in limited partnership (857,712) 583,368 (274,344) (274,344) Total expenses 153,379,388 13,773,102 21,078,083 188,230,573 188,230,573 Excess (deficiency) of revenue over expense
Consolidated (46,548,708) (7,843,677) 11,808,633 (42,583,752) (44,528,918) 1,945,166 Attributable to noncontrolling interest (55,007,822) (52,241) (55,060,063) (55,060,063) 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
Operations Services Development
Total
Without Donor With Donor
Restrictions Restrictions
Revenues
Rent - net of vacancies $ 84,609,478 $ - $ - $ 84,609,478 $ 84,609,478 $ Developer fees - - 23,680,064 23,680,064 23,680,064
Services fees 24,905 2,964,051 2,988,956 2,988,956
Philanthropy 1,025,293 4,558,140 2,125,235 7,708,668 606,825 7,101,843 Capital grants 4,562,748 - 21,655,035 26,217,783 26,217,783 Consulting 432,247 537,591 969,838 969,838
Unrealized (loss)/gain and interest 1,626,856 6,551 1,105,343 2,738,750 2,738,750 Other 6,111,847 9,265 2,952,606 9,073,718 9,073,718
Release of restricted assets - - 5,938,731
Total revenue 97,961,127
(5,938,731)
7,970,254 52,055,874 157,987,255 156,824,143 1,163,112
Expenses
Compensation 18,709,222 7,174,441 7,774,577 33,658,240 33,658,240 Administrative 10,451,337 2,247,266 2,212,188 14,910,791 14,910,791 Professional services 2,237,018 273,581 592,777 3,103,376 3,103,376 Depreciation and amortization 52,998,940 215,423 53,214,363 53,214,363 Grants 625,987 89,146 2,540,993 3,256,126 3,256,126
Facility 26,255,511 2,321 732,683 26,990,515 26,990,515 Interest and fees 24,867,814 - 16,162 24,883,976 24,883,976 Bad debts 1,374,267 369,980 85,606 1,829,853 1,829,853
Project expenses - 491,792 491,792 491,792
Allocation 3,118,055 2,605,511 5,723,566 5,723,566
(Gain) loss on sale of assets (1,171) - - (1,171) (1,171) (Gain) loss on investment in limited partnership (276,293) - (214,788) (491,081) (491,081) Total expenses 137,242,632 13,274,790 17,052,924 167,570,346 167,570,346 Excess (deficiency) of revenue over expense
Consolidated (39,281,505) (5,304,536) 35,002,950 (9,583,091) (10,746,203) 1,163,112 Attributable to noncontrolling interests (46,831,682) (314) (46,831,996) (46,831,996) 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 Noncontrolling Total Donor Restrictions Total Net Assets Balance, January 1, 2020 $ 103,609,931 $ 382,009,835 $ 485,619,766 $ 38,074,796 $ 523,694,562 Contributions 173,125,541 173,125,541 173,125,541
Distributions (97,535) (270,739) (368,274) (368,274)
Syndication (270,001) (270,001) (270,001)
Other Transfers (9,485,166) (9,485,166) (9,485,166)
Excess (deficiency) of revenues over expenses 36,085,793 (46,831,996) (10,746,203) 1,163,112 (9,583,091) Balance, December 31, 2020 130,113,023 507,762,640 637,875,663 39,237,908 677,113,571 Contributions 63,331,310 63,331,310 63,331,310
Distributions (30,968) (52,135) (83,103) (83,103)
Syndication (466,748) (466,748) (466,748)
Other Transfers 5,017,185 5,017,185 5,017,185
Excess (deficiency) of revenues over expenses 10,531,145 (55,060,063) (44,528,918) 1,945,166 (42,583,752) Balance, December 31, 2021 $ 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
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
9 2021 2020
$ (42,583,752) $ (9,583,091)
60,873,876 53,214,363
914,522 1,273,004
2,139,244 1,829,853
7,492 (1,171)
(274,345) (491,081)
1,673,185
(5,281) (145,281)
191,386 135,895
(10,763,879) (16,824,573)
(2,682,011) 38,322
(7,729,372) (527,958)
11,986,761 (3,878,866)
9,709,165 9,419,593
3,735,745 (632,746)
426,898 217,843
27,619,634 34,044,106
(4,385,733) 2,140,935
(3,377,789) (484,659)
(276,621,953) (275,409,299)
(3,210,294) 51,314
670,839 297,485
7,000,000 1,000,000
(279,924,930) (272,404,224)

Mercy Housing California
Consolidated Statements of Cash Flows
Years Ended December 31, 2021 and 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 Cash, cash equivalents, and restricted cash, end of year Cash paid for interest, net of amounts capitalized of $5,828,755 and $4,188,748, 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
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
See Notes to Consolidated Financial Statements.
10 2021
298,369,915
(94,740,860)
(2,842,554)
63, 331, 310
(466,748)
(83,103)
263,567,960
11,262,664
106,543,814
$ 117,806,478
2020
312,920,120
(239,866,207)
(4,417,431)
173,125,541
(270,001)
(368,274)
241,123,748
2,763,630
103,780,184
$ 106,543,814
$ 13,669,205 $ 13,710,133
$ 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)

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 0)
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. - (9,481,112)
1064 Mission, LP - (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 $ 42,024,383 $ 37,660,980 Investments - 2,162,999
Accounts receivable, net 13,966,883 10,226,914
Pledges receivable, net 4,932,317 9,750,000
Grants receivable 53,183 63,745
Restricted deposits and funded reserves 3,677,821 2,343,741 Current portion of notes and interest receivable 305,140 303,000 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
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 $ 4,932,317
2023 13,050,000
2024 300,000
2025 1,300,000
2026
Thereafter
Total pledges receivable 19,582,317
Discount and allowance (264,379)
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.

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)
$ 1,820,643,865
2020
$ 172,258,671
1,425,307,077
42,837,157
19,946,022
279,918,210
1,940,267,137
(315,891,127)
$ 1,624,376,010
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
Property and equipment, net $ 1,134,262
Assets held for sale $ 1,134,262
Madison Place
$ 639,440
$ 639,440
The Haven
$ 282,612
$ 282,612
No assets were classified as held for sale as of December 31, 2020.

Note 7 - Investments in unconsolidated entities
Total
$ 2,056,314
$ 2,056,314
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 $ 1,647,882
Distributions (47,260)
Equity in project earnings (losses) 491,081
Other (4,054)
Balance as of December 31, 2020 2,087,649
Contributions 3,327,900
Distributions (117,605)
Equity in project earnings (losses) 274,344
Membership interest transfers 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.

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.
2021 2020
$ 556,024,029 $ 355,837,456
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. 741,382,673 737,482,640 Total debt 1,297,406,702 1,093,320,096
Less deferred financing costs (21,907,714) (21,135,692) Total 1,275,498,988 1,072,184,404
Less current portion (1) (241,039,391) (182,203,891)
Non-current portion $ 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 $ 241,039,391
2023 62,520,737
2024 23,667,814
2025 8,006,942
2026 9,412,855
Thereafter 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:
2021 2020
Net assets without donor restrictions, controlling
Undesignated $ 140,891,672 $ 127,450,024
Internal development commitments 4,738,713 2,662,999
Total net assets without donor restrictions, controlling 145,630,385 130,113,023 Net assets without donor restrictions, noncontrolling 515,515,004 507,762,640 $ 661,145,389 $ 637,875,663
Note 10 - Net assets with donor restrictions
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:

Replacement reserves
Operating reserves
Residual receipts reserves
Bond investment reserves
Other reserves
Escrow deposits
Escrow deposits - construction
Total reserves
30 December 31,
2021 2020
$ 21,396,901
27,228,473
1,542,249
1,421,905
26,395,340
10,104,053
14,283,724
$ 102,372,645
$ 19,087,471
27,582,254
1,668,072
329,029
23,686,462
8,670,076
3,245,347
$ 84,268,711

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 $
$ $
$ 1,673,185 $ -
(100,163) 243,679 - - - - (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
Page
Mercy Housing California 38
Mercy Housing California Senior Properties 56
Mercy Housing Calwest 59
Mercy Properties California 107
San Juan Housing Corporation 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 $ 8,205,027 $ $ $ 495,289 $ 5,260 $ 33,516 $ 22,164 $ 539,087 Cash, tenant security deposits 12,598 8,745 14,602 12,758 Cash, restricted 109,878 - - - - 28,142
Investments - -
Investments, restricted - - - - -
Accounts receivable, net 8,132,619 5,728 7,697 869 2,386 Due from affiliate, net 93,402,454 - - - -
Pledges receivable, net 4,929,167 - -
Grants receivable 53,183 - -
Current portion of notes and interest receivable 48,849 - Current portion of notes and interest receivable, affiliates 8,793,302 - - - - - Prepaid expenses and other assets 272,657 17,634 20,827 13,265 12,371 Inventory - - - - -
Assets held for sale - -
Total current assets 123,947,136 531,249 42,529 62,252 49,679 567,229 Property and equipment
Land and land improvements 3,060,518 217,910 394,875 20,827 323,400 417,517 Buildings 1,980,087 4,559,882 2,278,878 5,280,372 4,292,315 - Furniture and equipment 596,639 1,331,944 208,347 19,879 92,485 Predevelopment project costs 10,624,067 - - -
Construction in progress - - -
Accumulated depreciation (1,216,862) (3,500,667) (2,146,910) (3,205,623) (3,561,078) Net property and equipment 15,044,449 2,609,069 735,190 2,115,455 1,147,122 417,517 Other long-term assets
Restricted property reserves 189,495 1,390,172 656,748 70,512 162,641 1,219 Long-term investments 9,620,000 - -
Long-term investments, restricted 465,000 - -
Due from affiliates 18,176,821
Pledges receivable, net 14,385,621 - - -
Investments in limited partnerships, net (1,625,788) 5,017,185 330,715 Notes and interest receivable, net 1,375,354 - - -
Notes and interest receivable, affiliates 41,434,597 479,657 Allowance for impaired assets - -
Other assets, net - - -
Total other long-term assets 84,021,100 5,017,185 330,715 1,390,172 656,748 70,512 162,641 480,876 Total assets $ 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 $ 3,665,469 $ - $ 2,179 $ 730,406 $ 173,222 $ 36,579 $ 60,785 $ 3,119 Due to affiliates 1,143,224 201,757 90,278 - 6,916 32,564 Accrued interest - - - 13,861 7,774 - -
Accrued interest, affiliates -
Current portion of notes payable - 75,728 37,464
Current portion of notes payable, affiliates 14,787,932 - - - Deferred revenue and other liabilities 2,498,942 26,235 3,203 10,846 1,435 Tenant security deposits - 12,165 8,251 14,101 12,064
Total current liabilities 22,095,567 201,757 92,457 858,395 229,914 68,442 106,848 3,119 Long-term liabilities
Due to affiliates 60,000
Accrued interest -
Accrued interest, affiliates - - -
Notes payable, less current portion, net 8,570,000 3,022,757 1,569,480 Notes payable, less current portion, affiliates 464,136 - - Deferred revenue and other liabilities 134,767 70,050 2,142 Total long-term liabilities 9,228,903 3,092,807 1,569,480 2,142 Total liabilities 31,324,470 201,757 92,457 3,951,202 1,799,394 70,584 106,848 3,119 Net assets
Net assets without donor restrictions, controlling 151,285,732 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 Net assets without donor restrictions, noncontrolling - - Total net assets without donor restrictions 151,285,732 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 Net assets with donor restrictions 40,402,483
Total net assets 191,688,215 4,815,428 238,258 579,288 (364,927) 2,177,635 1,252,594 1,462,503 Total liabilities and net assets $ 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 $ 17,688 $ 196,854 $ 55,456 $ 9 $ 192,737 $ 32,134 $ 20,172 $ 65,175 Cash, tenant security deposits 14,784 27,366 21,864 39,478 7,249 27,495 15,158 Cash, restricted 10,295 29,548 300 - 268 - 10,000
Investments - - - -
Investments, restricted - - - - - -
Accounts receivable, net 2,272 1,066 2,597 193 4,118 44 2,838 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 10,531 34,028 20,779 10,214 7,378 18,538 13,048 Inventory - - - -
Assets held for sale - -
Total current assets 55,570 288,862 100,996 9 242,622 51,147 66,249 106,219 Property and equipment
Land and land improvements - 1,084,968 785,749 1,037,824 95,609 2,000,000 400,000 Buildings 4,681,219 14,109,498 6,231,784 2,198,103 3,951,568 8,641,805 4,418,247 Furniture and equipment 75,814 316,886 232,899 198,262 79,530 313,919 302,817 Predevelopment project costs - - - - -
Construction in progress - - - -
Accumulated depreciation (3,040,152) (10,159,814) (5,535,420) (2,562,917) (2,822,006) (7,696,454) (3,754,675) Net property and equipment 1,716,881 5,351,538 1,715,012 871,272 1,304,701 3,259,270 1,366,389 Other long-term assets
Restricted property reserves 230,491 465,790 263,090 268,875 125,966 346,355 197,006 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 4,469,955
Allowance for impaired assets -
Other assets, net
Total other long-term assets
230,491 465,790 263,090 4,469,955 268,875 125,966 346,355 197,006 Total assets $ 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 $ 68,896 $ 322,412 $ 128,145 $ 3,149 $ 29,388 $ 74,032 $ 170,300 $ 154,244 Due to affiliates - 10,431 - 19,569 8,019 - -
Accrued interest - 2,048 -
Accrued interest, affiliates -
Current portion of notes payable 156,920
Current portion of notes payable, affiliates - - - - - - - Deferred revenue and other liabilities 1,322 1,972 2,975 3,194 2,054 622 915 Tenant security deposits 14,381 27,335 21,631 39,018 6,751 26,995 14,820 Total current liabilities
84,599 362,150
152,751 3,149
250,137 90,856 197,917 169,979
Long-term liabilities
Due to affiliates
Accrued interest 665,350
Accrued interest, affiliates -
Notes payable, less current portion, net 651,624 1,060,319 Notes payable, less current portion, affiliates - - -
Deferred revenue and other liabilities 1,957 1,119 1,001 Total long-term liabilities 1,957 1,119 651,624 1,726,670 Total liabilities 84,599 364,107 153,870 3,149 901,761 1,817,526 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
1,918,343
1,918,343
5,742,083 1,925,228
5,742,083 1,925,228
1,918,343 5,742,083
1,191
1,191
199,108
1,006,757
618,352
758
1,625,867
1,795,846
4,466,815 481,008 (335,712) 3,472,766 (126,232)
4,466,815 481,008 (335,712) 3,472,766 (126,232)
1,925,228 4,466,815
481,008 (335,712)
3,472,766 (126,232)
Total liabilities and net assets $ 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
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
Assets
Current assets
Cash and cash equivalents $ 2,659 $ 29,274 $ 31,241 $ 209,471 $ 8,264 $ 238,711 $ 108,868 $ - Cash, tenant security deposits 38,999 20,679 24,119 5,971 23,546 33,501 Cash, restricted - - 10,290 - - -
Investments - - -
Investments, restricted - - - - -
Accounts receivable, net 3,751 46,063 327 7,002 2,055 177,763 406,803 - Due from affiliate, net 519 - 4,300 - - 54,167 - 3,193,106 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 35,167 18,913 32,287 10,245 18,521 11,177 39,285 Inventory - - - - -
Assets held for sale
Total current assets 81,095 114,929 102,564 232,689 52,386 481,818 588,457 3,193,106 Property and equipment
Land and land improvements 1,797,674 242,906 1,213,204 617,205 9,960 5,845 Buildings 14,311,665 5,730,947 11,891,910 5,240,916 7,870,350 325,339 2,586,820 Furniture and equipment 644,896 388,365 31,415 68,868 91,893 - Predevelopment project costs - - - - -
Construction in progress - - - - -
Accumulated depreciation (11,393,190) (5,282,757) (6,495,591) (2,750,920) (4,476,208) (252,219) (519,407) Net property and equipment 5,361,045 1,079,461 6,640,938 3,176,069 3,495,995 73,120 2,073,258 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
1,506,743 557,405 615,417 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 Total assets $ 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 $ 227,894 $ 141,048 $ 50,556 $ 74,304 $ 59,161 $ 151,505 $ 7,206 $ (833) Due to affiliates - 11,778 1,476,860 146,670 10,000 2,948,271 192,276 54,167 Accrued interest - - - - - 293,940 -
Accrued interest, affiliates
Current portion of notes payable 44,927
Current portion of notes payable, affiliates - - 96,934 - - - - Deferred revenue and other liabilities 1,524 4,135 8,958 2,649 1,341 9,924 - Tenant security deposits 38,395 19,993 23,694 5,501 22,490 100,045 33,001 Total current liabilities 267,813 176,954 1,657,002 229,124 92,992 3,209,745 571,350 Long-term liabilities
Due to affiliates - - -
Accrued interest 255,932 1,256,801 84,779
Accrued interest, affiliates - -
Notes payable, less current portion, net 356,658 (4,375) 3,082,386 480,992 2,686,181 Notes payable, less current portion, affiliates - - - - - - Deferred revenue and other liabilities 146,064 483,184
Total long-term liabilities
612,590 (4,375)
4,339,187 565,771
146,064 3,169,365
53,334
Total liabilities 267,813 789,544 1,652,627 4,568,311 658,763 3,355,809 3,740,715 53,334 Net assets
Net assets without donor restrictions, controlling 6,681,070 962,251 4,925,701 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 Net assets without donor restrictions, noncontrolling - Total net assets without donor restrictions 6,681,070 962,251 4,925,701 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 Net assets with donor restrictions 780,591
Total net assets 6,681,070 962,251 5,706,292 (63,283) 3,133,642 (1,856,797) (701,716) 3,139,772 Total liabilities and net assets $ 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 $ 28,507 $ 134,340 $ 355,096 $ $ 348,741 $ $ 11,264 $ Cash, tenant security deposits 5,068 57,139 52,099 71,413 7,550 Cash, restricted - 811 - 78,174
Investments - -
Investments, restricted - - - -
Accounts receivable, net 5 5,190 15,542 - 39,463 3,356 - Due from affiliate, net 42,176 - 54,997 - 17,390 - 62,364 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 2,655 35,838 20,367 61,180 8,876 Inventory - - - -
Assets held for sale
Total current assets 78,411 233,318 443,104 54,997 520,797 17,390 109,220 62,364 Property and equipment
Land and land improvements 211,256 455,340 1,560,000 1,168,786 553,919 Buildings 661,257 18,759,635 3,776,013 37,440,347 9,588,685 Furniture and equipment 13,971 433,582 31,310 526,234 88,093 Predevelopment project costs - - - -
Construction in progress - - - -
Accumulated depreciation (429,700) (6,576,683) (2,092,056) (7,156,495) (1,466,415) Net property and equipment 456,784 13,071,874 3,275,267 31,978,872 8,764,282 Other long-term assets
Restricted property reserves 94,382 869,458 1,011,806 628,835 - 757,482 Long-term investments - - - -
Long-term investments, restricted - -
Due from affiliates
Pledges receivable, net - - - -
Investments in limited partnerships, net (189,532) 1,273,035 (13,835) (7,549,003) Notes and interest receivable, net - 2,377,000 2,347,800 - Notes and interest receivable, affiliates (2,377,000) (2,347,800) Allowance for impaired assets - - - -
Other assets, net 40,134 32,869 19,619
Total other long-term assets
(95,150) 909,592 1,011,806 1,273,035 661,704 (13,835) 777,101 (7,549,003) Total assets $ 440,045 $ 14,214,784 $ 4,730,177 $ 1,328,032 $ 33,161,373 $ 3,555 $ 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 $ 11,266 $ 152,843 $ 55,593 $ 1,641 $ 132,762 $ 2,780 $ 46,206 $ - Due to affiliates 6 31,669 16,356 69,480 9,567 24,062 - 72,239 Accrued interest 54 - 3,485 - - - -
Accrued interest, affiliates - -
Current portion of notes payable 1,918 89,876
Current portion of notes payable, affiliates - - - - -
Deferred revenue and other liabilities 45 7,843 27,440 12,939 3,021 Tenant security deposits 4,616 55,775 51,599 70,915 7,048 Total current liabilities 17,905 248,130 244,349 71,121 226,183 26,842 56,275 72,239 Long-term liabilities
Due to affiliates - - -
Accrued interest 152,589 3,764,264 1,323,717 343,169
Accrued interest, affiliates 175,770 - -
Notes payable, less current portion, net 215,689 7,250,906 3,669,273 18,970,540 3,571,148 Notes payable, less current portion, affiliates 180,000 - 2,377,000 - Deferred revenue and other liabilities - 2,256 1,083 -
Total long-term liabilities 724,048 11,017,426 4,994,073 21,690,709 3,571,148 Total liabilities 741,953 11,265,556 5,238,422 71,121 21,916,892 26,842 3,627,423 72,239 Net assets
Net assets without donor restrictions, controlling (301,908) 2,949,228 (508,245) 1,256,911 11,244,481 (23,287) 6,023,180 (7,558,878) Net assets without donor restrictions, noncontrolling
Total net assets without donor restrictions (301,908) 2,949,228 (508,245) 1,256,911 11,244,481 (23,287) 6,023,180 (7,558,878) Net assets with donor restrictions
Total net assets (301,908) 2,949,228 (508,245) 1,256,911 11,244,481 (23,287) 6,023,180 (7,558,878) Total liabilities and net assets $ 440,045 $ 14,214,784 $ 4,730,177 $ 1,328,032 $ 33,161,373 $ 3,555 $ 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 $ 219,650 $ 198,988 $ $ 287,631 $ $ 172,688 $ 1,038,675 $ 27,567,755 Cash, tenant security deposits 49,544 64,690 17,922 16,547 63,326 2,921,867 Cash, restricted 287,491 263,032 239,469 79,407 450 12,299,672 Investments - - - - -
Investments, restricted - - - -
Accounts receivable, net 2,573 131,861 - 64,257 34,666 4,973,644 Due from affiliate, net - 17,353 - 16,250 1,569 976,524 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 22,695 34,300 44,950 19,822 66,082 11,116,288 Inventory - - - - -
Assets held for sale - 639,440
Total current assets 579,380 563,583 17,353 721,833 16,250 352,721 1,204,768 60,495,190 Property and equipment
Land and land improvements 1,754,172 1,912,371 4,262,630 1,034,466 1,203,753 178,793,462 Buildings 14,764,308 12,700,160 27,943,586 12,317,003 14,920,974 1,571,409,781 Furniture and equipment 321,730 771,516 977,402 268,988 2,005,875 36,043,327 Predevelopment project costs - - - -
Construction in progress - - - - 99,508,247
Accumulated depreciation (2,098,354) (1,880,024) (1,998,222) (1,615,522) (7,794,797) (244,517,759) Net property and equipment 14,741,856 13,504,023 31,185,396 12,004,935 10,335,805 1,641,237,058 Other long-term assets
Restricted property reserves 645,473 583,229 478,216 - 2,026,121 2,309,005 81,702,373 Long-term investments - - - - -
Long-term investments, restricted -
Due from affiliates
Pledges receivable, net - -
Investments in limited partnerships, net (3,784) (4,277) (399,215) Notes and interest receivable, net -
Notes and interest receivable, affiliates 1,397,284
Allowance for impaired assets - - - -
Other assets, net 29,719 81,090 - 117,981 - 45,778 22,367,557 Total other long-term assets 675,192 664,319 (3,784) 596,197 (4,277) 2,071,899 2,309,005 105,067,999 Total assets $ 15,996,428 $ 14,731,925 $ 13,569 $ 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 $ 83,797 $ 77,517 $ 20 $ 118,752 $ - $ 109,665 $ 1,881,782 $ 49,863,470 Due to affiliates 214,590 310,258 24,724 26,210 53,396 225,581 20,882 29,765,907 Accrued interest - - - - - - 117,133 2,363,194
Accrued interest, affiliates 2,170
Current portion of notes payable 373,688 223,130,313
Current portion of notes payable, affiliates - - - - - 8,912,198 Deferred revenue and other liabilities 5,209 2,154 5,334 2,788 12,743 2,413,220 Tenant security deposits 49,201 63,789 17,522 15,438 59,533 2,915,656 Total current liabilities 352,797 453,718 24,744 167,818 53,396 353,472 2,465,761 319,366,128 Long-term liabilities
Due to affiliates - - - - -
Accrued interest 57,383 4,282,379 139,104 105,828 787,556 55,710,958 Accrued interest, affiliates 1,283,496
Notes payable, less current portion, net 9,324,468 8,014,293 11,383,169 5,964,671 7,353,047 926,234,515 Notes payable, less current portion, affiliates 2,087,284 - - 110,001 - 45,063,326 Deferred revenue and other liabilities 582,782 - 63,447 37,414,367 Total long-term liabilities 12,051,917 12,296,672 11,522,273 6,180,500 8,204,050 1,065,706,662 Total liabilities 12,404,714 12,750,390 24,744 11,690,091 53,396 6,533,972 10,669,811 1,385,072,790 Net assets
Net assets without donor restrictions, controlling 3,591,714 1,981,535 (11,175) 20,813,335 (41,423) 7,895,583 3,179,767 421,727,457 Net assets without donor restrictions, noncontrolling - Total net assets without donor restrictions 3,591,714 1,981,535 (11,175) 20,813,335 (41,423) 7,895,583 3,179,767 421,727,457 Net assets with donor restrictions
Total net assets 3,591,714 1,981,535 (11,175) 20,813,335 (41,423) 7,895,583 3,179,767 421,727,457 Total liabilities and net assets $ 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
Consolidated San
Consolidated Mercy Juan Housing
Properties California Corporation
Consolidated Mercy
Eliminations Housing California
Assets
Current assets
Cash and cash equivalents $ 653,888 $ 498,104 $ $ 42,024,383 Cash, tenant security deposits 42,588 138,361 3,857,026 Cash, restricted - - 13,447,227
Investments -
Investments, restricted - - -
Accounts receivable, net 13,953 25,009 (148,827) 13,966,883 Due from affiliate, net 75,477 - (30,247,095) 67,671,551 Pledges receivable, net 3,150 4,932,317
Grants receivable - 53,183
Current portion of notes and interest receivable 48,849 Current portion of notes and interest receivable, affiliates - - (8,537,011) 256,291 Prepaid expenses and other assets 239,502 56,942 (1,721,044) 10,625,318 Inventory -
Assets held for sale 1,416,874 2,056,314
Total current assets 2,445,432 718,416 (40,653,977) 158,939,342 Property and equipment
Land and land improvements 4,729,519 1,734,224 213,099,889 Buildings 8,910,029 8,042,034 (35,546,006) 1,816,269,511 Furniture and equipment 60,290 3,819,076 50,356,252
Predevelopment project costs - - 10,624,067
Construction in progress - - (1,270,703) 98,237,544
Accumulated depreciation (6,923,036) (10,561,823) 7,540,358 (367,943,398) Net property and equipment 6,776,802 3,033,511 (29,276,351) 1,820,643,865 Other long-term assets
Restricted property reserves 887,417 702,311 102,372,645 Long-term investments - - 9,620,000
Long-term investments, restricted - 465,000
Due from affiliates 60,000 (18,015,818) 221,003
Pledges receivable, net - 14,385,621
Investments in limited partnerships, net 13,753,972 10,589,473 Notes and interest receivable, net 22,000 (4,724,800) 1,397,354 Notes and interest receivable, affiliates (36,122,455) 6,934,238 Allowance for impaired assets -
Other assets, net - 22,767,787
Total other long-term assets 969,417 702,311 (45,109,101) 168,753,121 Total assets $ 10,191,651 $ 4,454,238 $ (115,039,429) $ 2,148,336,328

Placentia City CouncilJune 6, 2023

Placentia City Council
June 6, 2023