Attachment B4 - Proposals Received (CCSM + Metropolitan Pacific) — Santa Monica City Council, January 11, 2022 (part 1 of 2)

Community Corporation of Santa Monica +
Metropolitan Pacific Real Estate Group

Project Site

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Existing Street
Lamps
Existing StreetLamps
Shifted Bike Locations
to allow for clear entry
to commercial spaces
New street tree- Afrocarpus falcatus orTristaniopsis laurinaper City of SM ïíïè ÚÑËÎÌØ ÍÌÎÛÛÌ Í¬»°
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Afrocarpus falcatus Tristaniopsis laurina
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FOURTH STREET
3RD COURT Scale: 1/16”=1’-0”
Community Room
flexible seating
Small group “back
porch” seating
Large round pottery
with low planting and
small tree
Large round pottery
with tree visible from
street level
Large round potterywith tree visible fromstreet level
Small group “backporch” seating
Large round potterywith low planting andsmall treeSpecialty pavingpattern

SEE ENLARGED PLAN
Specialty paving
pattern
Suspended planters
with cascading plants
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FOURTH STREET
3RD COURT Scale: 3/32”=1’-0”
Climbing pods to scale the “hill”Planted playable area, flushwith adjacent path- grass orlow-water grass alternativeCommunal Homework tableand group event spaceMounded play surface with treeplanting at top and slideSpecialty paving pattern Kids Play- Spinners and
balancing pods
Mounded play surface for
open kids play with Bosque
tree planting at top
Planted playable area, flush
with adjacent path- grass or
low-water grass alternative
Large round planter with citrus
trees, herb planting, built-in and
movable seating. Both sides of
courtyard entrance Mid-height screen planting, typical at large glass openings Mounded play surface for openkids play with Bosque treeplanting at topKids Play- Sidewalk gameswith gathering benches Kids Play- monkey bars
Kids Play- hopscotch
Break-out flexible gathering
space for small or large groups
Suspended planters
with cascading plants,
above
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FOURTH STREET
Scale: 1/16”=1’-0”
Suspended planters
with cascading plants
Landscape visible from
lower level
3RD COURT
Suspended planters
with cascading plants
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Scale: 1/16”=1’-0”
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Communal game table- Chess, Checkers, Board Games

FOURTH STREET
Scale: 1/16”=1’-0” 3RD COURT
Suspended planters
with cascading plants
Suspended planters
with cascading plants
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FOURTH STREET
Scale: 1/16”=1’-0” 3RD COURT
Lounge with trees to filter
connection to living quarters
Suspended planters
with cascading plants
Suspended planters
with cascading plants
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October 29, 2019
Community Corporation of Santa Monica (CCSM)
1423 Second Street, Suite B
Santa Monica, CA 90401
Metropolitan Pacific
201 Santa Monica Boulevard, Suite 620
Santa Monica, CA 90401
Re: Commitment to utilize Private Activity Bonds to finance a Multifamily Rental Project in an amount not to exceed $46,000,000 relating to the affordable housing/residential component of the development, as well as a $13,000,000 taxable loan relating to the retail/commercial component. The development is currently known as 1318 4th Street located in Santa Monica, CA ( .

Ladies and Gentlemen:

Citibank, N.A. is pleased to offer to Community Corporation of Santa Monica and Metropolitan Pacific Joint Sponsors Sponsors of to-be-formed borrower entity Borrower , this Commitment , subject to the terms, requirements and conditions which follow.

All capitalized terms used herein, unless otherwise defined, shall have the meaning set forth on Exhibit A Commitment Terms decision to
issue this Commitment was made in reliance upon the representations and material supplied by Sponsor and representatives, as more particularly described on Exhibit B annexed hereto. CITI understands that the Joint Sponsors intends to submit this Commitment to the City of Santa Monica City of Santa Monica in support of a response to a Request For Proposal. This Commitment is subject to, among other things, CITI completing due diligence to confirm the representations made by Sponsor and obtaining credit committee approval.

In connection with this Commitment, CITI will be acting solely as a principal and not as your agent, advisor or fiduciary. CITI has not assumed a fiduciary responsibility with respect to this Commitment, and nothing in this Commitment or in any prior relationship between you and CITI will be deemed to create an advisory, fiduciary or agency relationship between us in respect of this Commitment. You should consider carefully whether you would like to engage an independent advisor to represent or otherwise advise you in connection with this Commitment , if you have not already done so.

A. Transaction Summary. The terms of the tax-exempt financing transaction (the Transaction that is the subject of this Commitment is as follows:

1. Closing Date CITI Funding Loan
Governmental Lender, and Governmental Lender shall simultaneously issue a note (the Governmental Lender Note to CITI. The proceeds of the Funding Loan shall be used by Governmental Lender to make a tax-exempt loan (the Tax-Exempt Loan or Borrower Loan ) to Borrower to finance the Property, for which the Governmental Lender receives a Borrower Note . Borrower shall be responsible for securing the issuance and delivery of the Tax-Exempt Loan by the Governmental Lender. 1318 4th Street Citi Support Letter
October 2019
2 2. Upon closing of the transaction, the rights of Governmental Lender in the Borrower Loan Borrower Loan Documents
shall be assigned to a fiscal agent, which may be CITI (the Fiscal Agent , as security for the to CITI evidenced by the Governmental Lender Note. CITI will administer and direct the disbursement of the proceeds of the Funding Loan and the Borrower Loan and will oversee the construction work to be performed on the Property (the Improvements ork shall be performed
during the Interim Phase (as hereinafter defined).

3. Servicer
servicing/oversight functions on behalf of CITI pursuant to a separate servicing agreement with CITI. CITI shall pay Servicer any applicable servicing fee.

4. At such time as the Conditions to Conversion set forth herein are satisfied, if ever, the Loan shall convert from the Interim Phase to the Permanent Period (as hereinafter defined).In the event that the Conditions to Conversion are not satisfied on or before the last day of the Interim Phase, as more particularly provided herein, at the option of CITI, the Tax-Exempt Loan will be subject to acceleration, and all obligations of CITI with respect to the transaction contemplated by this Commitment shall terminate.

5. Tax-Exempt Loan may be transferred to any
eligible investor, which may be a government sponsored enterprise or institutional investor (or a trust for the benefit thereof) provide for the
possibility of such transfer.

B. Conditions Precedent to Closing. The obligation of CITI to make the Funding Loan is subject to satisfaction of the following condi Conditions Precedent to Closing , in each case in a manner acceptable to CITI. The form and substance of all documents and items submitted by Borrower hereunder must be acceptable to CITI and its counsel.

1. Credit Approval. This Commitment is subject, among other things, to CITI obtaining final credit committee approval. Sponsor understands and agrees that this Commitment is subject to final approvals as set forth in Part E.4. of this Commitment and is not an agreement to make a loan.. credit committee. The financing will be documented separately and will contain terms and conditions that may be in addition to or in substitution of those set forth in the Commitment.

2. Documents. Borrower shall duly authorize, execute and deliver or cause to be delivered at closing a Multifamily Note, a Multifamily Deed of Trust, Deed to Secure Debt or Mortgage, where Security Instrument Completion and
Payment Guaranty for the Interim Phase and a Non-recourse Carve-out Guaranty), an Agreement of Environmental Indemnification, a Replacement Reserve Agreement, a Construction Funding Agreement, Assignments and any other assignment, financing statement, agreement or document Mortgage Documents The
Funding Loan Agreement, the Borrower Loan Agreement, the Borrower Note and all other documents executed or issued in connection with the transaction shall be referred to, collectively, Tax-Exempt Loan Documents and Borrower Note shall initially be for the benefit of Governmental Lender and shall be assigned on the Closing Date to CITI. The Tax-Exempt Loan Documents must be in a form satisfactory to CITI and Governmental Lender.

Where appropriate, the Mortgage Documents and the Tax-Exempt Loan Documents shall be acknowledged, recorded and filed in the public record, and all recording receipts promptly delivered to CITI.
1318 4th Street Citi Support Letter
October 2019
3 3. Title Insurance
pro forma policy in the form included in such instructions. The title insurance commitment and policy must satisfy all of the requirements of such instructions and include such other coverage and endorsements as CITI may require. The company and/or agent issuing the commitment shall be acceptable to CITI in all respects. Borrower shall also furnish CITI with copies of all instruments affecting title to the Property including, but not limited to, all instruments referenced in Schedule B of the pro forma policy.

4. UCC Search/Perfection. Borrower shall commission UCC searches in the real estate records and personal property records of the following jurisdictions and shall furnish written reports of such searches to CITI: (i) the jurisdiction where the Property is located, (ii) any other jurisdiction in which Borrower has its principal office for the conduct of its business, (iii) in the central UCC filing location specified by the law of the state where the Property is located, and (iv) any other office where filing is necessary to perfect security interest in the Collateral (as hereinafter defined). All such searches shall be updated to the time of recordation of the Mortgage Documents and shall show no security interests affecting the Property, Guarantor or Borrower, other than those naming Governmental Lender or Fiscal Agent as the secured party. Borrower shall cause the appropriate filing of financing statements, on forms supplied by CITI, evidencing perfected first priority
security interest in all personal property, machinery, equipment, building materials, contract rights, furniture, fixtures, royalties, receivables and other rights related thereto, as well as all leases, rents, revenues and proceeds therefrom and all proceeds of the foregoing (collectively, Collateral Such filing shall be in compliance with both the Uniform Commercial Code, as adopted in the state in which the Property is located, and all other applicable laws affecting the perfection of security interests. Borrower shall furnish to CITI, promptly upon recordation, receipted or time stamped copies of the filed financing statements.

5. Authority. Borrower shall furnish to CITI certified documents satisfactory to CITI TaxExempt Loan Documents. If Borrower is a corporation, such documents shall include Articles of Incorporation, Bylaws, corporate resolution relevant to the Loan and a Certificate of Good Standing from the state of incorporation and the state where the Property is located. If Borrower is a partnership, such documents shall include a copy of the partnership agreement and partnership certificate, and the above-referenced corporate documents for any corporate general partner of Borrower. If Borrower is a limited liability company, such documents shall include a copy of the Articles of Organization and Operating Agreement and the Certificate of Authenticity or Certificate of Good Standing from the state of organization and the state where the Property is located.

6. Leases. The standard form of lease used at the Property shall be subject to the prior written approval of CITI. All new leases and renewals of existing leases shall be made on the approved standard form of lease unless otherwise agreed to by CITI. There must be no commercial leases affecting the Property, except for any laundry lease and other commercial lease disclosed in writing to and approved in writing by CITI and its counsel prior to the date of this Commitment. Any current commercial lease or laundry lease must be subordinated to the lien of the Security Instrument and other Mortgage Documents. Borrower agrees that any future commercial lease or laundry lease or renewal of any current commercial lease or laundry lease will contain language acceptable to CITI subordinating said lease to the lien of the Security Instrument and other Mortgage Documents. There must be no default under any current commercial lease or laundry lease.
1318 4th Street Citi Support Letter
October 2019
4 7.
management agreement. The management agreement must be with a professional management company and both the management company and the terms of the management agreement must be approved in writing by CITI. Borrower shall not make or permit to be made any changes to the management agreement without the prior written approval of CITI. Without limiting the foregoing, the management agreement must be terminable by owner
and without payment of any termination fee. If required by CITI, a portion of the management fee may be required to be subordinated to debt service and other amounts payable with respect to the Loan.

8. Rent Roll. If applicable, Borrower shall promptly furnish a copy of the rent roll for the Property, with an updated rent roll to be delivered contemporaneously with closing and as of the Conversion Date (as hereinafter defined).

9. Appraisal. CITI shall have received an appraisal of the Property satisfactory to CITI.

10. . Borrower shall deliver to CITI a written opinion by dressed to CITI, Issuer and Bond Trustee and in the form furnished or approved

11. Insurance. Borrower shall deliver to CITI an insurance policy evidencing the existence of as provided to Borrower in a separate
package, as same may, from time to time, be modified. Such insurance for the Property shall include, without limitation, coverage for acts of terrorism and, if applicable, flood insurance (as more particularly set forth in Paragraph 17 below). In addition, Borrower must deliver prior to closing (i) the original, or a copy certified by the insurance agent, of the policy(ies) of insurance; or (ii) the insurance binder; or (iii) a certificate of insurance (Acord Form 28 property or Acord Form 27 liability or other form, satisfactory to Lender, provided by the insurance agent); or (iv) original letter from the insurance carrier on the primary layer, signed by an officer of such carrier, attaching the form of insurance policy pursuant to which coverage is being provided, and, if applicable, original letter from each insurance carrier on the excess layers, signed by an officer of such carrier(s) agreeing that it is bound to the form of insurance policy delivered by the primary carrier (i.e., agreeing
the policy will be delivered to CITI, which must not be more than sixty (60) days following closing. All mortgagee/loss payee/additional insured endorsements must be attached to the letter.

12. Permits/Occupancy. Borrower shall deliver to CITI evidence satisfactory to CITI that all applicable governmental authorities have authorized construction of the Improvements and the development and, if applicable, the operation of the Property as a multifamily residential unit, including, without limitation, occupancy permits (if applicable) and building permits. Any nonresidential occupancy must be approved in writing by CITI.

13. Zoning/Subdivision. Borrower shall deliver to CITI certification from the local governmental authority (i) that the use of the Property as a multifamily residential complex complies with all zoning and subdivision ordinances and regulations applicable to the Property and that it is either a legal, conform
underwriting standards, (ii) that the Property has been properly subdivided, and (iii) that the improvements on the Property can be rebuilt on the same location to their presently existing size, shape and density if partially or totally destroyed.

14. Access/Utilities. Borrower shall deliver to CITI evidence satisfactory to CITI that the Property is located on a publicly dedicated and maintained roadway or acceptable easement 1318 4th Street Citi Support Letter
October 2019
5 thereto, is served by public water and sewer systems, electricity and telephone service, and receives adequate municipal services (fire, police and transportation, among others).

15. Other Compliance. Borrower shall deliver to CITI evidence satisfactory to CITI that the Property
safety, health and fire codes, all clean air and water acts and other Hazardous Materials Laws (as hereinafter defined), and all equal opportunity, anti-discriminatory and fair housing requirements.

16. Survey -
engineer or surveyor approved by CIT
instructions.

17. Flood Zone Map/Certification/Insurance. Borrower shall deliver to CITI a certification designated special Flood Plain Hazard area, as designated by appropriate federal agencies. If all or any portion of the Property is at any time during the term of the Loan, located in such an area, Borrower shall provide satisfactory evidence to CITI of the existence of flood insurance policies in the maximum amount required pursuant to applicable laws covering all of the improvements on the Property which lie within, are bounded by, or are in any way affected by such area.]

18. Operating Documents. Borrower shall furnish copies of any form documents used for the Property and any equipment leases, licenses, franchises, permits, contracts, and any other agreements required for the operation, use, management or occupancy of the Property, and all such items shall be subject to written approval by CITI.

19. Financial Statements of Borrower and Guarantor. CITI shall receive, for its review and approval detailed financial statements for Borrower, any principal in Borrower and each Guarantor, certified by Borrower, such principal or the Guarantor, as the case may be. CITI may also require updated and/or recertified financial statements as of the Closing Date.

20. Environmental Assessment Report. CITI shall receive and approve a written report or site within the vicinity of the Property (i) has not contained and does not currently contain any Hazardous Material or underground storage tanks or any other pollutants that could be detrimental to the Property, human health or the environment, (ii) does not contain radon gas in levels unacceptable to CITI, (iii) complies with all applicable Hazardous Material Laws and has not been identified by any environmental regulatory body as a site containing Hazardous Material or underground storage tanks, (iv) shows no other environmental problem that would bring the Property within the purview of any federal, state or local environmental law or ordinance, and (v) contains no residual effect due to the removal of storage tanks or Hazardous Material. All deficiencies with respect to any environmental matters which CITI deems to be material shall be corrected by Borrower at its own expense to the satisfaction of CITI Hazardous Material means and includes, without limitation, mold, asbestos and any substance containing asbestos, the group of organic compounds known as polychlorinated biphenyls, flammable explosives, radioactive materials, lead-based paint, chemicals known to cause cancer or reproductive toxicity, pollutants, effluents, contaminants, emissions or related materials and any items included in the definition of hazardous or toxic wastes, materials or substances under the Hazardous Material Laws.

Hazardous Material Laws means and includes, all federal, state and local statutes, ordinances, regulations, orders, and decrees now or hereafter promulgated in connection with preserving the environment and/or the handling, storage, transport and disposal of Hazard Material. 1318 4th Street Citi Support Letter
October 2019
6 21. Separate Tax Parcel(s). The Property shall constitute one or more separate and distinct tax parcels for purposes of all real estate taxes and assessments. There shall be no overlap whatsoever between the Property and any other property which will not be subject to the first lien of the Security Instrument. Borrower shall also furnish the most recent tax bills for the Property.

22. Opinion of Tax Counsel. CITI must receive from nationally recognized tax counsel approved by CITI an unqualified opinion (i) as to the validity and enforceability of the TaxExempt Loan, (ii) that the interest on the Tax-Exempt Loan is excluded from the gross income of the owners thereof for federal income tax purposes under the Internal Revenue Code of 1986, as amended, and (iii) that the interest on the Tax-Exempt Loan is excluded from the gross income of the owners thereof for state income tax purposes if such exclusion is available under state law. Tax counsel must have (a) addressed its opinion to CITI, (b) addressed its opinion to CITI or (c) provided CITI a letter, addressed to CITI, stating that CITI may rely upon the opinion. Both the opinion and, if applicable, the reliance letter must be satisfactory to CITI.

23. Governmental Lender Requirements. CITI must receive evidence that Governmental Lender shall not impose restrictions, requirements or conditions in connection with its willingness to issue the Tax-Exempt Loan that are unacceptable to CITI. The restrictions imposed by the TaxExempt Loan Documents must be consistent with the restrictions on the use of the Property, on the income of tenants and on any rent charge that was used in underwriting the Funding Loan.

24. Low-Income Housing Tax Credits ( . CITI must approve any land use restriction agreement or regulatory agreement regulating or restricting the use or manner of operation of the Property and requiring that the Property be operated as a residential rental project occupied by individuals of low income (as provided for in the Treasury Regulations under Section 42(g) of the Internal Revenue Code). Such regulatory agreement must provide that the Property shall at all times be operated in such manner as to comply with the requirements of the Internal Revenue Code, the Treasury Regulations and IRS Rulings for obtaining and for preserving the LIHTC. In addition, the eligibility of the Property for LIHTC shall be evidenced to CITI in a manner satisfactory to CITI. Such regulatory agreement must be reviewed and approved in writing by CITI.

25. Equity and Funding Conditions. CITI must approve the partners/members (including the Tax Credit Investor), the applicable investment agreement, and the organizational documents of Borrower. CITI must receive and approve evidence satisfactory to CITI in all respects that the amount of the equity contribution is projected to be at least the level used by CITI in underwriting the transaction.
, in whole or in part
(including any interest therein), to eligible investors. In addition, prior to the Closing Date, CITI must receive and approve evidence satisfactory to CITI in all respects that Borrower (i) has timely received all required equity contributions to be made to Borrower as of the Closing Date, (ii) has fully funded, for the benefit of the Property, all cash required to be invested in the Property as of the Closing Date, and (iii) has made satisfactory arrangements to fund all cash required to be funded after the Closing Date. Borrower must also provide and CITI must approve in writing any

26. Interim Phase Budget. CITI will require satisfactory evidence that other funds and Loan Proceeds are adequate to complete the Improvements and carry the costs of the Property (including but not limited to interest, taxes, insurance, and operating costs), as determined by CITI based upon its review of scope of work, the Appraisal and other relevant information. CITI reserves the right to receive, review and approve all project expenditures made prior to closing. 1318 4th Street Citi Support Letter
October 2019
7 27. Architectural Consultant and Construction Inspector. CITI shall have approved an architectural consultant to monitor the progress of the Improvements (the Architectural Consultant ) and Borrower and the Architectural Consultant shall have executed and delivered to CITI an agreement in form and substance acceptable to CITI, pursuant to which the Architectural Consultant shall agree to certify hard cost progress payments and to provide the certifications required pursuant to this Preliminary Commitment upon completion of the Improvements. In Construction
Inspector for the benefit of CITI, but at the sole cost and expense of Borrower, to review the plans and specifications, contracts and budget for the Improvements and to monitor the progress of the construction of the Improvements in the manner required by CITI.

28. Approved Plans. CITI and its engineering consultants and the Construction Inspector shall have received and approved the plans and specifications for the Improvements (such plans and specifications, as approved by CITI are referred to herein as the Approved Plans ), the budget for completion of the Improvements, a fixed or a guaranteed maximum price contract for completion of the Improvements with a general contractor acceptable to CITI and a construction draw schedule for the Improvements.

29. Change Orders. The Approved Plans and the Construction Contract, and any change orders issued thereunder, will be subject to the approval of CITI.

30. Contractors. The architect, general contractor and such other contractors and subcontractors with respect to the Property as shall be identified by Borrower and approved by CITI shall have acknowledged the collateral assignment of their respective contracts to CITI and agreed in writing to continue performance on behalf of CITI under their respective contracts without additional cost in the event of a default by Borrower, which agreements shall be in form and substance acceptable to CITI and its counsel.

31. Payment and Performance Bonds. To the extent indicated on Exhibit A hereto, Borrower shall be required to deliver to CITI payment and performance bonds with respect to its contractor and major subcontractors (as determined by CITI).

32. Additional Documents. Upon request by CITI, Borrower shall furnish CITI with any documentation being furnished to any other party lending or investing in the Property (including CITI), including any plans for the Improvements, construction budgets, contracts and disbursement requests. In addition, Borrower shall deliver to CITI all other documents, instruments and other items required by CITI in connection with the making of the Funding Loan.

33. Additional Funding Requirements: All final documentation and due diligence must be delivered to tax counsel and/or counsel to CITI prior to the release of any funds for the Funding Loan, and under no circumstances will CITI authorize the closing of the Funding Loan until counsel to CITI has received the following final documentation: Trust Indenture, Funding Loan Agreement, Tax Certificate (or comparable document), Multifamily Note(s), the regulatory agreement/land use restriction agreement associated with the Tax-Exempt Loan, TEFRA approval(s), resolution(s), proof of volume allocation, , IRS Form 8038, final opinions of tax c any enhancement instrument, and, if applicable, all documentation required from HUD.

34. Fees and Expenses. Borrower shall have paid the Financing Fee (as hereinafter defined) and any other costs and expenses then due and payable pursuant to the provisions of this Preliminary Commitment.
1318 4th Street Citi Support Letter
October 2019
8 C. Conversion of the Mortgage Loan to the Permanent Period. The conditions set forth in the Loan and Tax-Exempt Loan Documents Conditions to Conversion Conversion
Package Submission Date ontinue to remain satisfied through the date of conversion of the Conversion Date as will be set forth in the Loan Documents, in each case, in a manner acceptable to CITI, if the Loan is to convert from the Interim Phase to the Permanent Period. For purposes of this Preliminary Commitment, the term Interim Phase means the period from the Closing Date through the day prior to the Conversion Date and the term Permanent Period means the period from the Conversion Date (inclusive) through the maturity date (or earlier termination) of the Loan.

D. Fees and Expenses. Borrower shall be responsible for the following fees and expenses in connection with the financing:

1. Application Fee. Borrower hereby acknowledges requirement of an application fee (the Application Fee as set forth in the Preliminary Commitment Terms, which amount shall be nonrefundable. gence, Borrower will be advised of such costs in advance. Any and all additional costs will be billed to Borrower as they are incurred. The Application Fee is applicable toward third party reports, underwriting and processing (as set forth in the Preliminary Commitment Terms fees.

2. Origination Fee. The Origination Fee as set forth in the Exhibit A shall be due and payable on the Closing Date. The Origination Fee reflects a fee payable to CITI in exchange for providing financing for the Project.

3. Conversion Fee. Borrower shall pay CITI a Conversion Fee as set forth in the Preliminary Conditions to Conversion have been satisfied. The Conversion Fee shall be due when Borrower first submits information to satisfy the Conditions to Conversion.

4. Fees and Expenses. Sponsor shall pay when due, whether or not the closing occurs, all reasonable and actual expenses, fees and charges with respect to the cost of issuance of the TaxExempt Loan (including tax and Governmental Lender counsel fees, Governmental Lender fees, Fiscal Agent fees, Fiscal Agent counsel fees, financial advisor fees, printing and mailing costs and other Tax-Exempt Loan related fees and costs), and the Tax-Exempt Loan processing and closing, or in any way connected therewith, including, without limitation, appraisal fees, survey costs, title insurance costs, architectural fees, engineering fees, inspection fees, mortgage or similar taxes and s and legal costs of CITI. Without limiting the foregoing, Sponsor specifically agrees to pay all costs relating to document preparation and review of real estate due diligence items by counsel to CITI.

E. Assignment; Acceptance; Termination.

1. Acceptance. In order for this Commitment to be binding on CITI, Sponsor must execute a copy of this Commitment and return it, along with the Application Fee to CITI within five (5) business days after the date first set forth above , time being of the essence.

2. Expiration. This Commitment must be accepted on or before the Outside Acceptance Date, and the Tax-Exempt Loan must be issued prior to the Outside Closing Date set forth in the Commitment Terms, or this Commitment shall terminate and be of no further force and effect; provided, however that the provisions of this Commitment that explicitly survive termination shall continue in full force and effect. In the event that Sponsor does not obtain an allocation for the full 1318 4th Street Citi Support Letter
October 2019
9 amount of the Tax-Exempt Loan at least thirty (30) days prior to the Outside Closing Date, or the issuance of the Tax-Exempt Loan and the making of the Funding Loan by CITI does not occur by the Outside Closing Date, Sponsor may request an extension of this Commitment (not to exceed ninety (90) days) . In the event the requested
extension is approved by CITI in its sole discretion, in addition to the Financing Fee and other amounts due hereunder, Sponsor shall pay to CITI a commitment extension fee equal to 0.25% (25 basis points) of the Interim Phase Amount on the Closing Date.

3. Termination. CITI may terminate this Commitment at any time if:
a. Any material adverse change (financial or otherwise) shall occur at any time prior to the Closing Date with respect to (i) the Property, the proposed Improvements, and/or the other security for the Tax-Exempt Loan, or (ii) the credit of Borrower and/or Sponsor (and/or any of the principals of Borrower and/or Sponsor) or any Guarantor or any other person or entity connected with the Loan, or (iii) any other source of repayment of the Loan.
b. Any part of the Property shall have been taken in condemnation or other like proceeding, or any such proceeding is pending or threatened as of the Closing Date, or any sfaction prior to the Closing
Date.
c. If requested, certifications of the non-occurrence of (a) and (b) above, in form acceptable to CITI, are not executed by Borrower on the Closing Date, or if Borrower has not delivered on the Closing Date updated personal financial statements for any Guarantor. d. After acceptance of this Commitment, the Tax-Exempt Loan is not issued and closed on or prior to the Outside Closing Date (as the same may be extended pursuant to Section E2.).
e. If, s underwriting and due diligence indicate the
reasonable possibility of a material adverse change in the Property, the proposed Improvements, the Sponsor, the Borrower and/or any Guarantor. f. If the OFAC representation and warranty in Section F5. is no longer true and correct.

4. Upon termination, Sponsor shall pay to CITI any other reasonable damages CITI may have incurred due to non-delivery of the Tax-Exempt Loan.
pay all amounts due under this Commitment shall survive the termination or expiration of this Commitment. If Sponsor or Borrower fails or refuses to comply with the terms of this Commitment, CITI, at its option, shall have the right to enforce any rights and remedies it may have at law or in equity, including, but not limited to, the collection of costs and expenses arising out of such breach, including reasonable attorneys fees and disbursements.

5. Final Underwriting. By accepting this Commitment, Sponsor expressly acknowledges that the obligation of CITI to provide the Funding Loan is subject to the completion of final loan underwriting by CITI, final CITI loan committee approval, and the satisfaction of any additional or differing conditions including interest rates that may be required by CITI as a result of such committee approval. By accepting this Commitment, Sponsor expressly acknowledges that the obligation of CITI to provide the financing described in this Commitment is subject to the satisfaction of the obligations and terms and conditions required by Citi for new construction and rehabilitation projects.
1318 4th Street Citi Support Letter
October 2019
10 F. Miscellaneous.

1. Further Assurances. Sponsor hereby expressly acknowledges that CITI intends to incur costs upon acceptance of this Commitment. Upon acceptance of the Commitment, Sponsor shall be strictly obligated to close the transaction contemplated hereby. Sponsor acknowledges that failure to close the transaction will subject CITI to substantial costs and damages. Therefore, Sponsor hereby expressly agrees:
a. To perform all of the requirements, terms and conditions contained herein at the time and in the manner herein and as required by CITI.
b.
the making of the Funding Loan.
c. On the request of CITI, to re-execute or ratify any of the Mortgage Documents and/or the Tax-Exempt Loan Documents, or execute any other documents as may be reasonably necessary to effect the delivery of the Tax-Exempt Loan to any investor.

2. Indemnification for Brokerage Commissions. Sponsor acknowledges and agrees that any fees due for tax-exempt loan
responsibility. Borrower and Sponsor shall indemnify and hold CITI harmless from and against any an
or other compensation whatsoever arising from the issuance of this Commitment, the making of the Tax-Exempt Loan that may be asserted against CITI by any person or entity. and B shall survive the termination or
expiration of this Commitment.

3. Authorization. Sponsor and the undersigned Guarantor hereby authorize CITI to obtain and forward any and all credit information, including credit reports and financial statements and all other information of any kind received or reasonably required in connection with this Commitment to any rating agency and to any potential investor.

4. Exclusivity. The terms and provisions of this Commitment are intended for the sole and exclusive benefit of CITI and Borrower, and not for the benefit of, nor for the purpose of being relied upon, by any other party.

5. OFAC Provisions. Sponsor hereby represents and warrants that no portion of the Property has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity. Sponsor further represents and warrants that to the best of knowledge, after having made diligent inquiry, Sponsor, Borrower, each Person owning a direct or indirect interest in Borrower, each Guarantor, each person owing a direct or indirect interest in each Guarantor, the Property Manager, and each tenant at the Property: (a) is not currently identified on OFAC List, and (b) is not a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United States. The Sponsor further acknowledges and agrees that it shall have a continuing obligation during the processing of this Commitment to notify CITI promptly if it knows or has reason to believe that the representations and warranties contained herein are no longer correct. Sponsor has implemented procedures, and will consistently apply those procedures throughout the term of the Tax-Exempt Loan, to ensure the foregoing representations and warranties remain true and correct during the term of the TaxExempt OFAC List nationals and blocked persons subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. 1318 4th Street Citi Support Letter
October 2019
11 Treasury Department, Office of Foreign Assets Control pursuant to any Requirements of Law, including, without limitation, trade embargos, economic sanctions, or other prohibitions imposed by Executive Order of the President of the United States, which OFAC List is accessible through the internet website http://www.treasury.gov/ofac/downloads/t11sdn.pdf Person individual, partnership, limited partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature.

6. . The validity of this Commitment
hereunder shall at all times be subject to the accuracy and validity of all information and representations furnished by Sponsor to CITI with regard to the Tax-Exempt Loan , which shall have been and shall continue to be true and not misleading in all material respects.

7. Loan Data. All inspections, reports, appraisals, environmental studies or other data submitted to, commissioned for, conducted or produced by or for CITI are for its benefit and use and shall be the property of CITI. No right of inspection or approval contained in this Commitment shall be deemed to impose upon CITI any duty or obligation whatsoever to take any action or to notify any person with respect thereto, and no liability shall be imposed upon any such party and no warranty shall be deemed or construed to arise by reason of any inspection undertaken or approval given by any such party, its agents, employees or representatives, any such inspections and approvals being made solely for the benefit of such party. The provisions of this paragraph shall survive the termination or expiration of this Commitment.

8. Discretion. In any instance where the consent or approval of CITI may be given or is required, or where any determination, judgment or decision is to be rendered by CITI under this Commitment, the granting, withholding or denial of such consent or approval and the rendering of such determination, judgment or decision shall be made or exercised by CITI (or its designated representative) at its sole and exclusive option and in its sole and absolute discretion.

9. Waiver. CITI reserves the right, in its sole discretion, to waive in whole or part any of the terms, requirements and conditions in this Commitment, the Mortgage Documents, the Bond Documents or other documents referenced herein; provided, however, that such waiver shall in no event be construed to constitute a waiver of the applicable terms, requirements or conditions as they may apply in the future.

10. Successors and Assigns. Sponsor acknowledges and agrees that CITI at its option may assign or otherwise transfer the Bonds and all documents evidencing and securing the Bonds including, but not limited to, this Commitment, to other parties subsequent to the execution of this Commitment. Neither Sponsor nor Borrower may assign its rights, interest, or obligations under this Commitment This Commitment shall be
binding upon the successors and permitted assigns of Borrower.

11. Governing Law. This Commitment shall be governed by and construed in accordance with the laws of the State of New York. Sponsor agrees that any legal action that may arise out of this Commitment will be commenced only in the United States District Court, Southern District of New York, or New York State Courts sitting in New York County, New York, and Sponsor hereby submits to the jurisdiction of any such court. All Mortgage Documents and Bond Documents (other than this Commitment) shall be governed by the laws of the State where the Property is situated. The governing law election with respect to this Commitment shall survive the termination or expiration of this Commitment.

12. WAIVER OF TRIAL BY JURY. SPONSOR AGREES NOT TO ELECT A TRIAL BY

JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS COMMITMENT OR THE 1318 4th Street Citi Support Letter
October 2019
12 RELATIONSHIP BETWEEN BOND PURCHASER, BONDHOLDER REPRESENTATIVE

AND BORROWER OR SPONSOR THAT IS TRIABLE OF RIGHT BY A JURY AND WAIVES

ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT

TO TRIAL BY JURY IS GIVEN BY SPONSOR KNOWINGLY AND VOLUNTARILY WITH

THE BENEFIT OF COMPETENT LEGAL COUNSEL AND APPLIES TO ALL ACTIONS WHETHER ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE. THIS

PROVISION SHALL SURVIVE THE TERMINATION OF EXPIRATION OF THIS COMMITMENT.

13. Survival. The covenants, terms and conditions set forth in this Commitment shall not survive the Closing Date (unless expressly provided to the contrary). In the event of any conflict between this Commitment and the Mortgage Documents and/or the Bond Documents, the Mortgage Documents and/or the Bond Documents, as applicable, shall prevail.

14. Confidentiality The provisions of this Commitment and all of the terms and conditions contained herein are confidential and Sponsor shall not share this Commitment, or the terms and conditions contained herein, with any third party; provided however, Sponsor may show this Commitment to the Issuer in connection with its application for issuance of the Bonds. This confidentiality provision shall survive the termination or expiration of this Commitment.

15. Anti Tying Policy. CITI maintains a policy of strict compliance to the anti-tying provisions of the U.S. Bank Holding Company Act of 1956, as amended, and the regulations issued by the Federal Reserve Board implementing the anti-tying rules (collectively, the "Anti-tying Rules"). Moreover, our credit policies provide that credit must be underwritten in a safe and sound manner and be consistent with Section 23B of the Federal Reserve Act and the requirements of federal law. Consistent with these requirements and our Anti-tying Policy:
a. The extension of commercial loans or other products or services to you by CITI or any of its subsidiaries will not be conditioned on your taking other products or services offered by CITI or any of its subsidiaries or affiliates, unless such a condition is permitted under an exception to the Anti-tying Rules.
b. CITI will not vary the price or other terms of any product or service offered by CITI or its subsidiaries on the condition that you purchase another product or service from CITI or any of its affiliates, unless CITI is authorized to do so under an exception to the Anti-tying Rules.
c. CITI will not require you to provide property or services to CITI or any affiliate of CITI as a condition to the extension of a commercial loan to you by CITI or any of its subsidiaries, unless such a requirement is reasonably required to protect the safety and soundness of the loan.
d. CITI will not require you to refrain from doing business with a competitor of CITI or any of its affiliates as a condition to receiving a commercial loan from CITI or any of its subsidiaries, unless the requirement is reasonably designed to ensure the soundness of the Loan.
[No Further Text on this Page]

1318 4th Street Citi Support Letter
October 2019
14 The undersigned hereby accepts the foregoing Commitment and agrees to be bound by the terms, requirements and conditions set forth herein.

Date:

Sponsor:

By:________________________
Name: _____________________
Title: ______________________
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1318 4th Street Citi Support Letter
October 2019
15 EXHIBIT A

COMMITMENT TERMS
This Exhibit A is an integral part of, and establishes additional terms, conditions and requirements of, the Commitment to which this is annexed.

SUMMARY OF MORTGAGE LOAN TERMS
Project: 1318 4th Street, a multifamily / mixed use development.

Maximum Tax-Exempt Loan Amount: During the Construction Phase: an amount not to exceed $46,000,000 on the Tax Exempt Loan. There
will also be a $13,000,000 taxable loan during the
Construction Phase .

Permanent Loan for the residential component is
currently estimated to be $3,958,923 on the Tranche A
piece and $6,574,740 on the Tranche B piece.

Permanent Loan for the Commercial / Retail
component is to be from a To-Be-Determined lender.

Number of Units: 120 residential units. 4 retail/commercial units.

Low-Income Units (Residential):

Construction Period Interest Rate:
4 units at 80% of AMI, and the remaining 116 units at
or below 60% of AMI. It is anticipated that 50 units
will be covered by Project Based Vouchers.

A preliminary rate currently estimated to be 4.88%
Permanent Period Interest Rate: A preliminary rate currently estimated to be 5.30% for years 1-15. For years 16-30, there will be a step up in rate.

Origination Fee: 1.00% of the Maximum Loan Amount.

Conversion Fee: $10,000
Guarantor(s): Individual and Corporate entities acceptable to CITI in all respects.
must be acceptable to CITI in all respects.

Closing Date: To Be Determined date in 2021.

Initial Construction Period: 30 Months
Possible Extension Period(s): Two 6-Month Period
Permanent Loan Term: 30 years from the extended outside conversion date. 1318 4th Street Citi Support Letter
October 2019
16 Amortization Period: 30 years.

Yield Maintenance Period: From Closing until 6 months prior to the end of the Permanent Phase.

Loan Sizing Criteria: Maximum Loan to Value: 90%
Maximum Loan to Cost: 80%
Debt Service Coverage: 1.15 to 1.00
Underwritten Annual Expenses: To be determined
through underwriting (including deposits to the
replacement reserve).

Required Reserves following
Conversion:

Minimum of $250/Unit/Year for Years 1-5. Thereafter,
subject to increases once every 5 Years, based upon a
physical needs assessment.

Approved Subordinate Financing: The terms, conditions and documentation of the Approved Subordinate Financing, if any, including the
form of subordination agreement subordinating the
Approved Subordinate Financing to the Loan, are
subject to the review and approval CITI in its sole
discretion.

Payment and Performance Bonds: CITI will require payment and performance bonds equal to 100% of the construction contract amount.

Surety issuing bonds must have an A.M. Best rating of
other respects. In lieu of bonds, CITI will accept a letter qual to 10% of the hard cost budget.

Tax Credit Equity Provider: The tax equity investor must be acceptable to CITI in all respects.
1318 4th Street Citi Support Letter
October 2019
17 EXHIBIT B
Initial Due Diligence Completed

1. Review of proposed income and expense statements (budget).

2. Review of estimated sources and uses statement.
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October 23, 2018
Community Corporation of Santa Monica
1423 Second Street, Suite B
Santa Monica, CA 90401
Dear Board of Directors,
We have audited the financial statements of Community Corporation of Santa Monica and Subsidiaries for the year ended June 30, 2018, and have issued our report thereon dated October 23, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 3, 2018. Professional standards also require that we communicate to you the following information related to our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities.

Our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Community Corporation of Santa Monica and Subsidiaries' internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of Community Corporation of Santa Monica and Subsidiaries solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Community Corporation of Santa Monica and Subsidiaries are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended June 30, 2018. We noted no transactions entered into by Community Corporation of Santa Monica and Subsidiaries during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no significant sensitive estimates affecting the financial statements for the year ended June 30, 2018.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in the Performing Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

The attached schedule summarizes uncorrected misstatements of the financial statements.

Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 23, 2018.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to Community Corporation of Santa Monica and Subsidiaries' financial statements or a determination of the type of auditor's opinion that may be expressed on those financial statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Community Corporation of Santa Monica and Subsidiaries' auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Area of Compliance as Follows:

Non Material Instances of Non Compliance
None
Material Instances of Non Compliance
None
Other Matters
With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or the financial statements themselves.

This information is intended solely for the use of those charged with governance of Community Corporation of Santa Monica and Subsidiaries and is not intended to be, and should not be, used by anyone other than these specified parties.

We sincerely appreciate the opportunity to provide services to Community Corporation of Santa Monica and Subsidiaries and hope you find the information included in this correspondence useful and informative. If you have any questions or wish to discuss any of the items further, please let us know.

Dauby O'Connor & Zaleski, LLC
Certified Public Accountants
Community Corporation of Santa Monica
6/30/2018

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

REPORT ON AUDIT OF CONSOLIDATED FINANCIAL

STATEMENTS AND SUPPLEMENTARY INFORMATION

AND COMPLIANCE AND INTERNAL CONTROL
WITH ACCOMPANYING INFORMATION REQUIRED BY:

THE CALIFORNIA DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT
YEAR ENDED JUNE 30, 2018

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

TABLE OF CONTENTS
Page
Independent auditor’s report 1-2
Financial statements
Consolidated statement of financial position 3-4
Consolidated statement of activities 5-6
Consolidated statement of changes in net assets (deficit) 7 Consolidated statement of cash flows 8-9
Notes to consolidated financial statements 10-31
Supplementary information - properties and subsidiaries Combining statements of financial position by property 32-40 Combining statements of activities and changes in net assets (deficit) by property 41-48
Mortgage schedule by property 49-52
Combining statements of financial position by subsidiary 53-54 Combining statements of activities and changes in net assets (deficit) by subsidiary 55-56
Mortgage schedule by subsidiary 57
Supplementary information - HCD 58-83
Independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 84-85
Summary of audit findings and recommendations 86
Certificate of officer 87
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Community Corporation of Santa Monica and Subsidiaries
(A California Not-For-Profit Corporation)
Report on the Financial Statements
We have audited the accompanying financial statements of Community Corporation of Santa Monica and Subsidiaries, which comprise the consolidated statement of financial position as of June 30, 2018, and the related consolidated statements of activities, changes in net assets (deficit), and cash flows for the year then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements Community Corporation of Santa Monica and Subsidiaries' management is responsible for the preparation and fair presentation of these 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 financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 Community Corporation of Santa Monica and Subsidiaries' 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 Community Corporation of Santa Monica and Subsidiaries' 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.
2 Community Corporation of Santa Monica and Subsidiaries

Page 2 ends

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Community Corporation of Santa Monica and Subsidiaries as of June 30, 2018, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Community Corporation of Santa Monica and Subsidiaries' basic financial statements. The accompanying supplementary information – properties and subsidiaries shown on pages 32 to 57 is presented for purposes of additional analysis, and is not a required part of the basic financial statements. The accompanying supplementary information – HCD shown on pages 58 to 83 is presented for purposes of additional analysis as required by the Audited Financial Statement Handbook for Multi-Family Rental Housing issued by the California Department of Housing and Community Development and California Housing Finance Agency ("HCD/CalHFA") for the properties financed by HCD, and is not a required part of the basic financial statements.

The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit 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 basic financial statements or to the basic 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards and the requirements of the Audited Financial Statement Handbook for Multi-Family Rental Housing of the California Department of Housing and Community Development and the California Housing Finance Agency, we have also issued our report dated October 23, 2018 on our consideration of 502 Colorado, 815 Ashland, Garcia, and Virginia Village's (the "HCD Properties") internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of HCD Properties' internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards and the requirements of the Audited Financial Statement Handbook for Multi-Family Rental Housing of the California Department of Housing and Community Development and the California Housing Finance Agency, in considering HCD Properties' internal control over financial reporting and compliance.

October 23, 2018 Dauby O’Connor & Zaleski, LLC
Carmel, Indiana Certified Public Accountants
See notes to consolidated financial statements 3

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) ASSETS
General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Current assets
Cash and cash equivalents 5,872,340 $ 6,789,580 $ 12,661,920 $ 740,019 $ - $ 13,401,939 $Restricted cash 9,098 10,290,622 10,299,720 3,227,351 - 13,527,071Accounts receivable, net 5,826 78,880 84,706 14,429 - 99,135Other receivables 1,368 99 1,467 - - 1,467Investments 10,024,218 - 10,024,218 - - 10,024,218Prepaid interest expense 237,496 - 237,496 - - 237,496Prepaid expenses and other current assets 57,069 16,250 73,319 24,151 - 97,470
Total current assets 16,207,415 17,175,431 33,382,846 4,005,950 - 37,388,796 Property and equipment
Land 850,871 59,307,034 60,157,905 7,719,147 - 67,877,052Buildings and improvements 631,969 98,586,339 99,218,308 19,796,038 (222,083) 118,792,263Furniture, fixtures and equipment 347,423 43,499 390,922 130,397 - 521,319
Construction in progress and
investments in predevelopment 12,864,081 456,305 13,320,386 - - 13,320,386 14,694,344 158,393,177 173,087,521 27,645,582 (222,083) 200,511,020 Less: Accumulated depreciation (432,459) (33,052,517) (33,484,976) (5,527,089) - (39,012,065) Property and equipment, net 14,261,885 125,340,660 139,602,545 22,118,493 (222,083) 161,498,955 Other assets
Investments in Partnerships 1,418,691 - 1,418,691 (633) (750,819) 667,239Due from Partnerships 404,578 - 404,578 - - 404,578Due (to) from Subsidiaries and Properties 1,183,322 (94,095) 1,089,227 (1,089,227) - - Note receivable 133,247 - 133,247 - - 133,247 Other assets - - - 188,102 - 188,102
Total other assets 3,139,838 (94,095) 3,045,743 (901,758) (750,819) 1,393,166 33,609,138 $ 142,421,996 $ 176,031,134 $ 25,222,685 $ (972,902) $ 200,280,917 $

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
JUNE 30, 2018
See notes to consolidated financial statements 4

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

LIABILITIES AND NET ASSETS (DEFICIT)
General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Current liabilities
Accounts payable and accrued
expenses 366,035 $ 1,097,920 $ 1,463,955 $ 223,022 $ - $ 1,686,977 $ Accrued interest payable - 407,157 407,157 30,565 - 437,722Security deposits 10,673 668,846 679,519 173,156 - 852,675Current portion of long-term debt 5,600,000 1,672,535 7,272,535 150,862 - 7,423,397 Total current liabilities 5,976,708 3,846,458 9,823,166 577,605 - 10,400,771 Long-term liabilities
Long-term debt, net of current
portion 5,280,138 125,428,777 130,708,915 21,516,337 - 152,225,252 Less: unamortized debt issuance
costs, net - (157,618) (157,618) (71,632) - (229,250)
Deferred interest - 1,222,036 1,222,036 6,894,837 - 8,116,873 Total long-term liabilities 5,280,138 126,493,195 131,773,333 28,339,542 - 160,112,875 Total liabilities 11,256,846 130,339,653 141,596,499 28,917,147 - 170,513,646 Net assets (deficit)
Unrestricted net assets (deficit) 22,349,817 12,032,343 34,382,160 (3,694,462) (972,902) 29,714,796Temporarily restricted net assets (deficit) 2,475 50,000 52,475 - - 52,475 Total net assets (deficit) 22,352,292 12,082,343 34,434,635 (3,694,462) (972,902) 29,767,271 33,609,138 $ 142,421,996 $ 176,031,134 $ 25,222,685 $ (972,902) $ 200,280,917 $

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) JUNE 30, 2018
See notes to consolidated financial statements 5

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Unrestricted revenues
Rental fees, net of vacancy - $ 11,849,997 $ 11,849,997 $ 2,411,870 $ - $ 14,261,867 $Property management fees 512,750 - 512,750 4,370 - 517,120Resident service fees 380,624 - 380,624 - - 380,624Maintenance service fees 287,572 - 287,572 - - 287,572Bookkeeping fees 73,724 - 73,724 - - 73,724Commercial rental income, net of concessions 179,633 - 179,633 50,046 (50,046) 179,633 Debt forgiveness - 96,979 96,979 - - 96,979Grants 93,585 - 93,585 - - 93,585Interest 29,573 7,274 36,847 2,399 - 39,246Other 51,558 20,906 72,464 16,535 - 88,999 Temporarily restricted revenues
Net assets released from restrictions (922) - (922) - - (922) Total revenues 1,608,097 11,975,156 13,583,253 2,485,220 (50,046) 16,018,427 Expenses
Salaries 2,716,452 581,478 3,297,930 18,561 - 3,316,491Payroll taxes 209,208 41,763 250,971 1,420 - 252,391Employee benefits 205,406 45,750 251,156 704 - 251,860Legal and professional 18,393 93,889 112,282 28,342 - 140,624Loss on disposal of buildings and improvements 33,342 1,453 34,795 21,962 - 56,757
Consultants 371,328 41,492 412,820 5,242 - 418,062Office and administration 534,014 134,053 668,067 93,762 - 761,829Insurance 79,052 235,322 314,374 57,446 - 371,820Rent 171,941 - 171,941 - (50,046) 121,895Maintenance and repairs 52,843 2,411,431 2,464,274 605,513 (87,161) 2,982,626Maintenance service fees interfund (988,820) 712,138 (276,682) 189,521 87,161 - Property management fees interfund (1,295,012) 983,400 (311,612) 311,612 - - Bookkeeping fees interfund (242,181) 204,409 (37,772) 37,772 - - Resident service fees interfund (82,668) 61,466 (21,202) 21,202 - - Gardening and grounds - 429,046 429,046 91,483 - 520,529Pest control 528 85,860 86,388 19,543 - 105,931Utilities 22,126 1,013,164 1,035,290 276,415 - 1,311,705Property taxes 26,804 789,889 816,693 71,530 - 888,223Rent control fees - 72,733 72,733 - - 72,733Workers compensation 55,663 23,934 79,597 1,372 - 80,969 Total expenses before interest
and depreciation 1,888,419 7,962,670 9,851,089 1,853,402 (50,046) 11,654,445 Net operating income (280,322) 4,012,486 3,732,164 631,818 - 4,363,982

CONSOLIDATED STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
See notes to consolidated financial statements 6

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Interest - $ 1,158,658 $ 1,158,658 $ 424,536 $ - $ 1,583,194 $Depreciation 36,951 2,240,553 2,277,504 676,966 - 2,954,470 Total interest and depreciation 36,951 3,399,211 3,436,162 1,101,502 - 4,537,664 Changes in net assets (deficit) (317,273) $ 613,275 $ 296,002 $ (469,684) $ - $ (173,682) $

CONSOLIDATED STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2018
See notes to consolidated financial statements 7

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Balance, July 1, 2017 22,256,182 $ 11,883,248 $ 34,139,430 $ (3,644,056) $ (554,421) $ 29,940,953 $ Intercompany transfer 413,383 (414,180) (797) 419,278 (418,481) - Changes in net assets (deficit) (317,273) 613,275 296,002 (469,684) - (173,682) Balance, June 30, 2018 22,352,292 $ 12,082,343 $ 34,434,635 $ (3,694,462) $ (972,902) $ 29,767,271 $

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (DEFICIT) YEAR ENDED JUNE 30, 2018
See notes to consolidated financial statements 8

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Cash flow from operating activities
Changes in net assets (deficit) (317,273) $ 613,275 $ 296,002 $ (469,684) $ - $ (173,682) $Adjustments to reconcile changes in unrestrictednet assets (deficit) to net cash provided by(used in) operating activities:

Depreciation 36,951 2,240,553 2,277,504 676,966 - 2,954,470Interest - debt issuance costs - 17,506 17,506 4,545 - 22,051Amortization of other assets - - - 5,729 - 5,729Debt forgiveness - (96,979) (96,979) - - (96,979)Loss on disposal of property and equipment 33,342 1,453 34,795 21,962 - 56,757Gain on investments (26,632) - (26,632) - - (26,632)Changes in assets and liabilities:Accounts receivable, net 15,647 (34,697) (19,050) (4,116) - (23,166)Other receivables 247 (99) 148 - - 148Prepaid interest expense (237,496) - (237,496) - - (237,496)Prepaid expenses and other current assets (5,929) (7,500) (13,429) 982 - (12,447)Due from Partnerships (3,398) - (3,398) - - (3,398)Due (to) from Subsidiaries and Properties (78,177) 20,762 (57,415) 57,415 - - Accounts payable and accrued expenses 39,423 414,860 454,283 66,474 - 520,757Security deposits 701 590 1,291 4,060 - 5,351Accrued interest payable and deferred interest - (237,944) (237,944) 202,234 - (35,710) Net cash provided by (used in) operatingactivities (542,594) 2,931,780 2,389,186 566,567 - 2,955,753Cash flow from investing activities Change in restricted cash (770) (511,385) (512,155) 32,153 - (480,002)Purchase of property and equipment (33,844) (771,479) (805,323) (250,981) - (1,056,304)Change in construction in progress and investments in pre-development (11,581,079) (603,121) (12,184,200) (645,269) - (12,829,469) Change in investments (5,000,000) - (5,000,000) - - (5,000,000)Change in investments in Partnerships (419,010) - (419,010) 838 418,481 309 Net cash provided by (used in) investingactivities (17,034,703) (1,885,985) (18,920,688) (863,259) 418,481 (19,365,466)

CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2018
See notes to consolidated financial statements 9

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Cash flow from financing activities
Principal payments on long-term debt - $ (811,667) $ (811,667) $ (187,672) $ - $ (999,339) $Draws on pre-development loans 10,880,138 54,954 10,935,092 - - 10,935,092Intercompany transfer 413,383 (414,180) (797) 419,278 (418,481) - Repayments of note receivable 25,772 - 25,772 - - 25,772 Net cash provided by (used in)financing activities 11,319,293 (1,170,893) 10,148,400 231,606 (418,481) 9,961,525Net change in cash and cash equivalents (6,258,004) (125,098) (6,383,102) (65,086) - (6,448,188)Cash and cash equivalents - beginning 12,130,344 6,914,678 19,045,022 805,105 - 19,850,127Cash and cash equivalents - ending 5,872,340 $ 6,789,580 $ 12,661,920 $ 740,019 $ - $ 13,401,939 $Supplemental disclosures of cash flowinformation Cash paid during the year for interest 364,000 $ 1,379,096 $ 1,743,096 $ 217,757 $ - $ 1,960,853 $ Supplemental disclosures of non-cash investing activities

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Cash flow from investing activities related to the purchase of property and equipment and change in construction in progress and investments inpredevelopment excludes $654,361, which is included in accounts payable and accrued expenses at June 30, 2018 and includes $512,826, which wasincluded in accounts payable and accrued expenses at July 1, 2017. 10 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION
Community Corporation of Santa Monica (A California Not-For-Profit Corporation) (“CCSM”) was formed on August 19, 1982, to expand opportunities to obtain affordable housing by purchasing, constructing, or rehabilitating and managing rental properties in the County of Los Angeles.

CCSM was organized under Section 501(c)(3) of the Internal Revenue Code.

The consolidated financial statements include the transactions and accounts of CCSM, and also sc Community Corporation ("ScCC"), Cloverfield Community Partners ("Cloverfield"), Virginia Village Partnership ("Virginia Village"), Garcia Apartments Partnership ("Garcia"), 815 Ashland Limited Partnership ("815 Ashland"), Second Street Center Partnership ("SSC"), CCSM Village, LLC ("CCSM Village"), 16th Street Apartment Limited Partnership (“16th Street"), Fifth and Wilshire Apartments Limited Partnership (“5th and Wilshire”), CCSM ESCO, LLC (“ESCO”), 2407 Fourth Street, Ltd. (“2407 4
th Street”), 708 Pico, L.P. (“708 Pico”), and CCSM Arroyo, LLC (“Arroyo”) (collectively, the "Subsidiaries"). CCSM and the Subsidiaries are reported collectively as Community Corporation of Santa Monica and Subsidiaries (the “Corporation”).

In addition to CCSM's ownership in the Subsidiaries, CCSM owns and manages 69 affordable housing properties (the "Properties"), of which three are financed by mortgages insured or provided by California Department of Housing and Community Development ("HCD"). These Properties have also entered into regulatory agreements with local government agencies that govern the operation of the properties and restrict the persons eligible to reside at the properties.

CCSM also holds general partner interests in eleven entities that operate affordable housing and Arroyo holds a general partner interest in one entity that operates affordable housing (collectively, the "Partnerships"). CCSM manages these properties but does not consolidate these equity investments (see Investments in Partnerships).

ScCC is a California not-for-profit corporation, which was formed on November 30, 2004 for the purpose of assisting CCSM in the development and management of rental properties located throughout California, principally in the Los Angeles area, in order to further affordable housing.

ScCC is a wholly-owned subsidiary of CCSM.

Cloverfield is a California limited partnership, which was formed on April 5, 1988 for the purpose of acquiring, rehabilitating and operating a 32-unit affordable housing property located in Santa Monica, California. CCSM holds a 98% limited partner ownership interest and a 1% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2104, unless sooner terminated as provided in the partnership agreement. Cloverfield entered into a regulatory agreement with HCD and the City of Santa Monica (the "City") which governs the operation of the property and restricts the persons eligible to reside at the property.
11 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ORGANIZATION (CONTINUED)
Virginia Village is a California limited partnership, which was formed on May 27, 1991 for the purpose of constructing a 12-unit affordable housing property located in Santa Monica, California.

CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2031, unless sooner terminated as provided in the partnership agreement. Virginia Village entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property.

Garcia is a California limited partnership, which was formed on April 4, 1991 for the purpose of acquiring, developing and operating a 30-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until June 30, 2033, unless sooner terminated as provided in the partnership agreement. Garcia entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property. 815 Ashland is a California limited partnership, which was formed on March 12, 1992 for the purpose of developing and operating a 45-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 815 Ashland entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property.

SSC is a California limited partnership, which was formed on May 1, 1992 for the purpose of developing and operating a 44-unit affordable housing property with commercial premises located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. SSC entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.

CCSM Village is a California limited liability company, which was formed on February 2, 2012 to maintain a 0.005% general partner interest in Santa Monica Housing Partners Limited Partnership ("SMHP"). SMHP was formed to acquire, develop and provide 160 units of affordable housing and acquire and develop a ground leasehold estate for affordable housing. CCSM is the sole member of CCSM Village. The term of the limited liability company shall extend until December 31, 2066, unless sooner terminated as provided in the operating agreement. 12 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ORGANIZATION (CONTINUED)
16th Street is a California limited partnership, which was formed on February 25, 1998 for the purpose of developing and operating a 17-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 16th Street entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property. 5 th and Wilshire is a California limited partnership, which was formed on October 31, 1996 for the purpose of developing and operating a 32-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2055, unless sooner terminated as provided in the partnership agreement. 5th and Wilshire entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.

ESCO is a California limited liability company, which was formed on September 8, 2014 for the purpose of completing, constructing, installing, maintaining, and measuring energy efficiency measures and undertaking retrofits to reduce energy costs and related expenses for certain Properties and Subsidiaries located in Santa Monica, California. Upon completion of the retrofits improvements, ESCO transferred title to the Properties or Subsidiaries at cost. CCSM holds a 100% ownership interest in ESCO. The term of the company shall extend indefinitely until terminated.
2407 4
th Street is a California limited partnership, which was formed on January 26, 1987 for the purpose of developing and operating a 10-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2086, unless sooner terminated as provided in the partnership agreement. 2407 4 th Street
entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property. 708 Pico is a California limited partnership, which was formed on May 31, 1999 for the purpose of developing and operating a 20-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest and ScCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 708 Pico entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.
13 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ORGANIZATION (CONTINUED)
Arroyo is a limited liability company, which was formed on June 1, 2016 to maintain a 0.01% general partner interest in 1626 Lincoln, L.P. 1626 Lincoln, L.P. was formed to acquire, develop and provide 64 units of affordable housing. CCSM is the sole member of Arroyo. The term of the company shall extend into perpetuity, unless sooner terminated as provided in the operating agreement.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial reporting
The consolidated financial statements are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America, and are in conformity with the provisions required by the Not-for-Profit Entities Presentation of Financial Statements topic of the FASB Accounting Standards Codification (“ASC”) 958-205. This topic established standards for external financial reporting for Not-for-Profit Organizations.

The Not-for-Profit Entities Presentation of Financial Statements topic primarily affects the display of the consolidated financial statements and requires that the amounts for each of the classes of net assets – unrestricted, temporarily restricted and permanently restricted – be displayed in the consolidated statement of financial position and the amounts of the change in each of those classes of net assets be displayed in a consolidated statement of changes in net assets.

Accordingly, assets of the Corporation and changes therein are classified and reported as follows:

Unrestricted assets – Assets that are not subject to donor-imposed stipulations. These are available to support the Corporation’s activities and operations at the discretion of the Board of Directors.

Temporarily restricted assets – Assets subject to donor-imposed stipulations that will be met either by actions of the donor, the Corporation and/or the passage of time.

Permanently restricted assets – Assets that are subject to donor-imposed stipulations that the corpus must be maintained permanently by the Corporation. The donors of these assets permit the Corporation to use all or part of the income or gains earned on the related investments for general (unrestricted) or specific purposes (temporarily restricted).

All assets held by the Corporation as of June 30, 2018 are classified as either unrestricted or temporarily restricted.
14 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidation
In accordance with FASB ASC 810, the consolidated financial statements include the accounts of the Corporation and its wholly owned partnerships and limited liability companies, after elimination of all material intercompany accounts, transactions, and profits.

Cash and cash equivalents
For the consolidated statement of cash flows, all unrestricted investments with original maturities of three months or less are cash equivalents. At June 30, 2018, cash and cash equivalents consist of unrestricted checking and savings accounts held at numerous banks, money market fund accounts, and petty cash.

Accounts receivables and bad debt policy
Resident rent charges for the current month are due on the first of the month. Residents who are evicted or move-out are charged with damages or cleaning fees, if applicable. Accounts receivables consist of amounts due for rental revenue or the charges for damages and cleaning fees. The Corporation does not accrue interest on the accounts receivable balances.

Management periodically reviews accounts receivables and uses an allowance for doubtful accounts to recognize bad debts. Accounts receivable on the consolidated statement of financial position is shown net of the allowance for doubtful accounts, which totaled $52,189 at June 30, 2018. Bad debts included in office and administration expense in the consolidated statement of activities expensed for the year ended June 30, 2018 totaled $24,539.

Investments
Investments in marketable securities with readily determinable fair values are reported at their fair values in the consolidated statement of financial position. Unrealized gains and losses are included in the consolidated statement of activities. See Fair Value disclosure.

Property and equipment
Property and equipment consists of land, buildings, improvements and furniture and fixtures and equipment. Property and equipment is recorded at cost. All direct and indirect costs of developing housing properties, including planning, architectural services, rehabilitation costs and interest prior to occupancy, are capitalized to real estate during development. The allocation of acquisition costs between land and building is based on assessed values as determined by the County Assessor for real estate tax purposes or on values determined by a real estate appraiser.

Management's policy is to include land costs associated with housing properties in predevelopment in construction in progress and investments in pre-development until the assets are placed into service. Depreciation is computed using straight-line method over the estimated useful life of 3 to 55 years commencing with the day the assets are placed into service. Costs that are deemed to increase the useful life of the property or equipment are capitalized. When assets are sold or otherwise disposed of, the costs and related depreciation are removed from the accounts, and any resulting gain or loss is included in operations. 15 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property and equipment (continued)
The Corporation is subject to the provisions of the Impairment or Disposal of Long-Lived Assets topic of the FASB ASC 360-10. The standard requires impairment losses to be recorded on longlived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets (excluding interest) are less than the carrying amount of the assets. In such cases, the carrying value of assets to be held and used are adjusted to their estimated fair value and assets held for sale are adjusted to their estimated fair value less selling expenses. No impairment losses were recognized during the year ended June 30, 2018.

Investment in Partnerships
The Corporation does not consolidate the accounts and activities of the equity investments, which are considered Variable Interest Entities under ASC 810-10 Consolidation, because the Corporation is not considered the primary beneficiary. The Corporation accounts for its equity investments in accordance with the equity method of accounting, under which the equity investment is carried at cost and is adjusted for the Corporation’s share of net income or loss and by cash distributions received. Equity in loss of each equity investment allocated to the Corporation is recognized to the extent of the Corporation’s equity investment balance.

Previously unrecognized equity in loss is recognized in the year in which equity in income is earned by such equity investment or additional investment is made by the Corporation.

Distributions received subsequent to the elimination of an equity investment balance will be recorded as other revenue. Additional capital contributions will be recorded as additional equity investments. Advances made by the Corporation, if repayment is deemed unlikely by management, will also be recorded as additional equity investments. The Corporation assesses the carrying value of its equity investments whenever there are indications that a permanent impairment may have occurred. No impairment losses were recognized during the year ended June 30, 2018.

Many of the Partnerships are financed by mortgages provided by local government agencies, mortgages from other lending institutions, state agencies or granting agencies, or investor equity received as a result of the creation of low income housing tax credits allocated to the Partnerships pursuant to Section 42 of the Internal Revenue Code. In addition, many of the Partnerships are subject to certain operating requirements or restrictions in the underlying financing or regulatory agreements.

Due from Partnerships and bad debt policy
Amounts due from Partnerships are stated at unpaid balances, less an allowance for doubtful accounts. Partnership receivables consist of revenues from management fees and reimbursable management services such as payroll due from the Partnerships. The Corporation does not accrue interest on the Partnership receivable balances. 16 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Due from Partnerships and bad debt policy (continued)
Management periodically reviews Partnership receivables and uses an allowance for doubtful accounts to recognize bad debts. Due from Partnerships on the consolidated statement of financial position is shown net of the allowance for doubtful accounts. There were no bad debts expensed for the year ended June 30, 2018. There is no allowance for doubtful accounts as of June 30, 2018.

Other assets
Other assets consist of a prepaid ground lease and a debt service deposit. The ground lease is with the City, commenced on June 22, 1994, and is for a period of fifty-five years. The prepaid ground lease is amortized on a straight-line basis over the term of the lease.

Debt issuance costs
The Corporation is subject to the provisions of the Interest-Imputation of Interest topic of the FASB ASC 835-30 which requires unamortized debt issuance costs to be presented as a reduction of the outstanding debt and the amortization of the debt issuance costs to be presented as a component of interest expense. Generally accepted accounting principles require that the effective yield method be used to amortize debt issuance costs; however, the effect of using the straight-line method is not material to the financial statements for the year ended June 30, 2018.

Deferred interest
Deferred interest consists of interest due upon maturity of the long term debt.

Rental fees and commercial rental income
Rental income is recognized as rents become due. Rental payments received in advance are deferred until earned. All leases between the Corporation and the residents or commercial tenants of the properties are operating leases.

Developer fee revenue
CCSM earns developer fees primarily for facilitating the financing and construction of affordable housing, generally in its capacity as general partner or managing member of various real estate partnerships and limited liability companies. Fees are recognized based on completion of various phases of the development, as specified in the respective agreements. Certain fees are deferred and payable from the properties' available operating cash flow. 17 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property management fee revenue
Management fee revenue is earned based on the terms as outlined in the management agreements. Management fees are typically paid by the properties monthly.

Leases
In accordance with the provisions of Accounting for Leases topic of the FASB ASC 840-20, the Corporation is required to recognize rental revenue on a straight-line basis over the terms of the leases, however; the effect of recognizing rental revenue received instead is not material to the consolidated financial statements for the year ended June 30, 2018.

Advertising costs
Advertising costs incurred by the Corporation are expensed as incurred and are included in office and administration expenses in the consolidated statement of activities.

Property taxes
The Corporation is exempt from some, but not all real property taxes. For those properties that are required to pay property taxes, property taxes are expensed in the year of the lien on the property such that twelve months of expense are charged to operations each year.

Functional allocation of expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in Note 13. Accordingly, certain costs have been allocated among the programs and supporting services benefited based upon direct expenditures incurred or based upon time spent in the activities. For the year ended June 30, 2018, fundraising costs were insignificant to the consolidated financial statements as a whole.

Accounting for uncertainty in income taxes
CCSM and scCC are exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and state income tax and has been classified as an other than private foundation.

Accordingly, no provision for federal and state taxes on revenue and income has been recognized in the accompanying consolidated financial statements.

Even though CCSM and scCC are recognized as tax exempt, the entities still may be liable for tax on its unrelated business income (UBI). CCSM and scCC evaluate uncertain tax positions through review of the sources of income to identify UBI and certain other matters, including those which may affect the tax exempt status. The effect of the uncertainty would be recorded if the outcome was considered probable and reasonably estimable. As of June 30, 2018, CCSM and scCC had no uncertain tax positions requiring accrual.
18 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounting for uncertainty in income taxes (continued)
CCSM Village elected to be taxed as a corporation for federal and state income tax purposes. As a result, CCSM Village accounts for income taxes under the asset and liability approach in accordance with FASB ASC 740-10.

ESCO and Arroyo are single member LLCs; therefore, these entities are disregarded for federal tax purposes.

The consolidated financial statements do not present a liability for income taxes incurred but not yet paid as of the year-end dates or any deferred tax assets or liabilities that might arise from differences between pretax income on the consolidated financial statements, and taxable income on partners' tax returns, as well as differences between carrying values of assets and liabilities and their tax bases. However, since these entities are doing business in California, these entities are subject to California minimum tax of $800 and an annual franchise fee, which is calculated based on total gross receipts.

Cloverfield, Virginia Village, Garcia, 815 Ashland, SSC, 16th Street, 5th and Wilshire, 2407 4th Street and 708 Pico are treated as pass-through entities 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 their owners on their respective income tax returns.

These Subsidiaries' federal tax statuses as pass-through entities are based on their legal status as limited partnerships. Accordingly, these Subsidiaries are not required to take any tax positions in order to qualify as pass-through entities. These Subsidiaries are required to file and do file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these consolidated financial statements do not reflect a provision for income taxes and these Subsidiaries have no other tax positions which they must consider for disclosure. There has been no interest or penalties recognized in the consolidated statement activities or consolidated statement of financial position for the year ended June 30, 2018.

Generally, the Federal returns were subject to examinations from the three years after the later of the original or extended due date or the date filed with the applicable tax authority. Generally the State tax returns were subject to examinations from the four years after the later of the original or extended due date or the date filed with the applicable tax authority.

Concentration of credit risk
The Corporation maintains various cash and investment balances with various regional and national financial institutions. The balances in the accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of June 30, 2018, the cash balances held at some of these financial institutions exceeded the FDIC insurance limit. The Corporation has not experienced any losses in such accounts. Management believes that the Corporation is not exposed to any significant credit risk on cash and cash equivalents. 19 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Concentration of credit risk (continued)
The Corporation’s operations are concentrated in the multifamily real estate market and all rental properties are located in the city of Santa Monica. In addition, the Corporation operates in a heavily regulated environment. The operations of the Corporation, specifically, the Properties, are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies. Such administrative directives, rules and regulations are subject to change.

Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, if any, to comply with a change.

Use of estimates in the preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair value
The Corporation is subject to the provisions of the Fair Value Measurement topic of the FASB ASC 820-10 which provides guidance for assets and liabilities which are required to be measured at fair value and requires expanded disclosure for fair value measurement. The standard applies whenever other standards require or permit assets or liabilities to be measured at fair value and does not require any new fair value measurements.

The standard establishes a fair value hierarchy based on three levels:

Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Quoted prices for similar assets or liabilities in active markets Level 3 - Unobservable inputs for the asset or liability based on the best available Information
The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy:
20 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair value (continued)
Investments – Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include cash and cash equivalents held for investment and fixed income bond funds. For cash and cash equivalents, fair value approximates carrying value due to the initial maturities of the instruments being three months or less. For fixed income bond funds, fair values are valued at the closing price reported on the active market on which the individual securities are traded. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with identical characteristics, discounted cash flows, or net asset value as described below. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The valuation technique is classified as Level 1 under the fair value hierarchy.

Interests in Partnerships - When the Corporation acquires interests in Partnerships, the Corporation imputes a value of each acquisition using the purchase price in relation to the assets and liabilities acquired. Acquisitions are typically arm’s length transactions or contractually agreed amounts, and as such, the purchase price is deemed to approximate fair value of the interest acquired. It is common the application of fair value results in an increase or decrease in the carrying value of the property and equipment of the Partnerships acquired. The valuation technique is classified as Level 3 under the fair value measurements fair value hierarchy.

Subsequent events
Management performed an evaluation of the Corporation’s activity through October 23, 2018, the audit report date, and has concluded that there are no significant subsequent events requiring disclosure through the date these consolidated financial statements were available to be issued, except as described in Note 15.

NOTE 2–RESTRICTED CASH
The Corporation has various cash balances which are restricted consisting of operating reserves, replacement reserves, resident security deposits, flexible benefit plans, and other loan/advances required to be maintained by various operating, regulatory, or lending agreements. The Corporation has designated restricted cash as follows:

General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Subsidiaries Operating reserves $ - $ 1,430,639 $ 1,430,639 $ 1,684,761 $ 3,115,400 Replacement, affordability
and other reserves - 7,935,327 7,935,327 1,313,693 9,249,020 Resident security deposits - 924,656 924,656 228,897 1,153,553 Flexible benefit plan 9,098 - 9,098 - 9,098
$ 9,098 $10,290,622 $10,299,720 $ 3,227,351 $13,527,071 21 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 3-INVESTMENTS
Investments at June 30, 2018, consist of the following at fair value:

Cash and cash equivalents $ 854
Fixed income bond funds 10,023,364
Total investments $10,024,218
Investment income for the year ended June 30, 2018, is as follows:

Dividend, interest, and other investment income $ 248,675 Net realized gain (loss) on investments -
Net unrealized gain (loss) on investments ( 222,043)
Total change in investments $ 26,632
Investment income is net of investment expenses of $19,050 for the year ended June 30, 2018, and is included in interest revenue in the consolidated statement of activities.

NOTE 4-NOTE RECEIVABLE
On December 16, 2014, the Corporation entered into a note with Mercy Loan Fund that funded a portion of a loan to ESCO in the original principal amount of $191,049. The note was amended during the year ended June 30, 2016 to a principal balance of $190,065. The note is non-interest bearing and is due May 1, 2025. At June 30, 2018, the outstanding balance of the note is $133,247.

NOTE 5-OTHER ASSETS
SSC entered into a second amended ground lease agreement for the land on which Second Street Center was constructed for a term of fifty five years expiring in June 2048. The original land lease was prepaid in 1993 in the amount of $223,462. These costs are being amortized over the term of the land lease using the straight-line method. Amortization expense for the year ended June 30, 2018 totaled $5,729. At June 30, 2018, accumulated amortization totaled $45,360.

Estimated amortization expense for each of the next five years and thereafter is approximately as follows:
2019 $ 5,729
2020 5,729
2021 5,729
2022 5,729
2023 5,729
Thereafter 149,457
$ 178,102
22 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 5-OTHER ASSETS (CONTINUED)
A debt service deposit at $10,000 is held with the trustee for long term debt at 16th Street.

NOTE 6-INVESTMENT IN PARTNERSHIPS
As of June 30, 2018, the Corporation has ownership interests in the following entities which own affordable housing properties. The Partnerships' purpose is to acquire, rehabilitate, develop and operate affordable housing properties:

Percentage of
Entity Units Interest
1424 Broadway Apartments Limited Partnership 41 0.01%
26th and Santa Monica Family Housing Limited Partnership 44 0.01% Pacific Court Limited Partnership 44 0.01%
Berkeley Place Limited Partnership 47 0.01%
The Tahiti Limited Partnership 36 0.01%
2602 Broadway Limited Partnership 33 0.01%
High Place West Limited Partnership 47 0.01%
2802 Pico Limited Partnership 33 0.01%
430 Pico Limited Partnership 32 0.01%
High Place East Limited Partnership 44 0.01%
Santa Monica Housing Partners Limited Partnership 160 0.005% 1626 Lincoln, L.P. 64 0.01%
The investment in Partnerships as of June 30, 2018 is carried on the equity method, as follows:

Capital, beginning $ 667,548
Distributions -
Contributions -
Gains (losses) in Partnerships, net ( 309)
Reduction of investment value - acquisitions -
Capital, ending $ 667,239
Prior to April 25, 2017, 1626 Lincoln, L.P. was wholly owned by the Corporation and its Subsidiaries. On April 25, 2017, two limited partners with a collective ownership interest of

99.99% were admitted to the partnership and Arroyo retained a 0.01% general partner ownership interest.
23 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 7-LONG-TERM DEBT
The following mortgage loans payable are collateralized by various trust deeds covering all land, buildings, and improvements:

CCSM
Loans from various banks, interest ranging from 2.83% to

10.25% per annum, maturing from October 2018 through
March 2034. $ 8,981,953
Loans from the City, interest ranging from 0.00% to

12.00% per annum, subject to regulatory agreements (See Note 14), maturing from May 2018 through June 2071. As
of June 30, 2018, there was a note which matured May
2018 for $39,800. The Corporation is currently in
negotiations with the City as to the amount to be repaid or to extend the note. The forgiveness of the note is at the discretion of the City. 126,342,786
Loans from the State of California, Department of Housing and Community Development, interest ranging from 0.00%
to 3.00% per annum, maturing from December 2018
through July 2058. 2,460,188
Loan from Bank of America/Affordable Housing Program,
interest payable at 0.00% per annum, maturing in June
2020. 196,523
CCSM long-term debt 137,981,450
Subsidiaries
Loans from various banks, interest ranging from 1.00% to

8.23% per annum, maturing from April 2021 through March 2052. 1,956,612
Loans from the City, interest ranging from 0.00% to

10.44% per annum, subject to regulatory agreements (See Note 14), maturing from December 2019 through October
2053. 14,792,366
Loans from the State of California, Department of Housing and Community Development, interest payable at 3.00%
per annum, maturing from January 2021 through October
2050. 4,662,263
24 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 7-LONG-TERM DEBT (CONTINUED)
Subsidiaries (continued)
Loan from Citibank/Affordable Housing Program, interest payable at 0.00% per annum, maturing in October 2027. $ 111,608 Loan from Mercy Loan Fund, payable at 5.00% per annum,
principal due based on energy dollar savings, maturing May 2025. See Note 4. 144,350
Subsidiaries long-term debt 21,667,199
Total long-term debt 159,648,649
Less: current portion ( 7,423,397)
Long-term portion $ 152,225,252
Subsequent to June 30, 2018, principal maturities of mortgage loans payable are as follows:

Year Ending CCSM and
June 30, CCSM Subsidiaries Subsidiaries
2018 $ 7,272,535 $ 150,862 $ 7,423,397
2019 6,655,256 359,068 7,014,324
2020 1,591,576 364,408 1,955,984
2021 2,787,913 265,232 3,053,145
2022 2,236,595 153,619 2,390,214
Thereafter 117,437,575 20,374,010 137,811,585
137,981,450 21,667,199 159,648,649
Unamortized
debt issuance
costs, net ( 157,618) ( 71,632) ( 229,250)
$137,823,832 $ 21,595,567 $159,419,399
The Properties and Subsidiaries incurred financing costs of $696,625 in connection with the financing of the affordable housing properties and energy efficiency measures. Amortization included in interest expense for the year ended June 30, 2018 totaled $22,051. During the year ended June 30, 2018, fully amortized assets of $22,953 were written off. Accumulated amortization totaled $444,422 at June 30, 2018.
25 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 7-LONG-TERM DEBT (CONTINUED)
Estimated amortization expense into interest expense for each of the next five years and thereafter is approximately as follows:
2019 $ 22,997
2020 22,997
2021 22,997
2022 22,997
2023 22,997
Thereafter 114,265
$ 229,250
For the year ended June 30, 2018, the total interest expense amounted to $1,561,143.

Mortgage loans payable to the City and to the State of California described above are collateralized by various trust deeds on real property and improvements thereon. No monthly payments of principal or interest are required. The principal and interest on these loans are due based on residual receipts or at maturity, but may be forgiven, subject to regulatory agreement requirements, ten to twenty five years beyond due dates (see Note 14). The term residual receipts is the net of cash remaining at the end of an annual fiscal year as defined in each Properties and Subsidiaries regulatory agreement. An accrual for residual receipts contingent interest payments for the fiscal year ended June 30, 2018 are recorded based on the audited financial statement amounts.

For the year ended June 30, 2018, loan forgiveness totaled $96,979, and is included in debt forgiveness in the consolidated statement of activities.

NOTE 8-COMMITMENTS
Related Parties Commercial and Office Leases
CCSM entered into a commercial retail space lease agreement with Pacific Court Limited Partnership requiring monthly lease payments of $2,581 through April 2039 plus common area maintenance charges and an annual increase of no less than 2.00% or no greater than 6.00% depending on the change in the Consumer Price Index. CCSM is the general partner in Pacific Court Limited Partnership.

CCSM entered into a lease agreement with 2802 Pico, Limited Partnership requiring annual payments of $1 through February 2045. Effective January 7, 2016, the lease was modified to include an annual contingent rent in addition to the base rent of $1. CCSM is the general partner in 2802 Pico, Limited Partnership. CCSM subleases the space to an unrelated party. See Note 9. 26 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 8-COMMITMENTS (CONTINUED)
CCSM also entered into an office facility lease agreement with SSC requiring a monthly lease payments of $8,336, plus insurance and real property taxes, through October 2021. In January 2018, CCSM temporarily relocated their corporate office to a property located at 1820 14th Street, which is currently under development, due to renovations being performed at SSC. As such, monthly payments were suspended to SSC. CCSM is currently paying $8,800 per month to the City to use the space at 1820 14th Street until the renovations at SSC are complete.

As of June 30, 2018, the estimated future minimum lease payments are as follows:
2019 $ 140,760
2020 138,735
2021 72,821
2022 40,267
2023 41,072
Thereafter 766,009
$ 1,199,664
For the year ended June 30, 2018, rent expense after consideration of intercompany eliminations amounted to $121,895. In the normal course of business, commercial and office leases are generally renewed or replaced by other leases.

Construction in progress and investments in pre-development On December 11, 2017, CCSM acquired a property located at 1820 14th Street for a purchase price of $5,250,000. CCSM entered into a loan agreement with the City to fund the acquisition and rehabilitation of the property. As of June 30, 2018, rehabilitation costs totaled $183,540.

The estimated budget for this property is approximately $26,200,000 and is anticipated to be completed in September 2021. As previously disclosed, CCSM has temporarily relocated their corporate office to this property.

On February 15, 2018, CCSM acquired a property located at 2966 Grand View Boulevard for a purchase price of $5,600,000. CCSM entered into a loan agreement with Century Housing Corporation to fund the acquisition and rehabilitation of the property. As of June 30, 2018, rehabilitation costs totaled $284,070. The estimated budget for this property is approximately $33,900,000. The anticipated completion date has yet to be determined.

In addition to the aforementioned acquisitions, the Corporation has several properties, including the CCSM corporate office, under rehabilitation and one property in development. As of June 30, 2018, total rehabilitation costs totaled $518,020, total development costs totaled $190,385, land costs in development totaled $11,759,488, and the CCSM corporate office totaled $384,883. The estimated budget for the additional properties under rehabilitation and development is approximately $8,900,000 and are anticipated to be completed in April 2020. The estimated budget for the CCSM corporate office is approximately $1,900,000 and is anticipated to be completed in November 2018. Rehabilitation, development and land costs are included in construction in progress in the consolidated statement of financial position. 27 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 9-COMMERCIAL SUBLEASES
CCSM subleases certain commercial spaces to unrelated parties pursuant to lease agreements requiring monthly payments of $12,422, subject to annual increases, through August 2023.

CCSM also leases a commercial space to an unrelated party on a month to month basis.

As of June 30, 2018, the future minimum lease payments due to CCSM are as follows:
2019 $ 152,981
2020 158,836
2021 162,519
2022 142,212
2023 147,901
Thereafter 12,446
$ 776,895
For the year ended June 30, 2018, rent and common area maintenance income under these commercial leases amounted to $179,633.

NOTE 10-RELATED PARTIES
Revenue from Partnerships
In connection with the ownership interests in the Partnerships listed in Note 1, CCSM also earns property management fees, resident service fees, maintenance service fees, bookkeeping fees, general partner fees, and reimbursement of leasing fees in accordance with the respective agreements. During the year ended June 30, 2018, CCSM received revenue as follows:
1424 Broadway Apartments LP $ 127,796
26th and Santa Monica Family Housing LP 187,484
Pacific Court LP 133,296
Berkeley Place LP 127,995
The Tahiti LP 90,163
2602 Broadway LP 100,519
High Place West LP 135,915
2802 Pico LP 101,908
430 Pico LP 98,674
High Place East LP 130,713
Santa Monica Housing Partners LP 32,278
1626 Lincoln, L.P. -
$ 1,266,741
28 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 10-RELATED PARTIES (CONTINUED)
Developer fee income
In connection with the development of the Partnerships, CCSM earned a developer fee in accordance with the developer fee agreement. The total developer fee earned was $766,562 (before eliminations) and was recognized as revenue in previous periods. At June 30, 2018, $193,955 remains receivable and is included in Due from Partnerships in the consolidated statement of financial position.

Due from Partnerships
The Corporation has made advances to various Partnerships in order to fund improvements, related party fees, property costs, operating shortfalls or pre-development costs. Amounts due from Partnerships are to be repaid as funds are available at the Partnerships. The Partnerships’ ability to pay may be restricted by various operating, regulatory, or lending agreements. Further, the Partnerships may be unable to pay due to cash flow shortages. These unsecured amounts do not bear interest. At June 30, 2018, outstanding amounts due from Partnerships totaled $404,578.

Due (to) from Subsidiaries
CCSM and the Subsidiaries consistently exchange funds throughout the year for the funding of operations. At June 30, 2018, $1,089,227 remained payable to CCSM.

NOTE 11-CONSTRUCTION CONTRACTS
CCSM entered into construction contract for the rehabilitation at Virginia Village and 1952-56 Frank Street in the total amount plus change orders of $1,025,837. As of June 30, 2018, $1,025,837 has been incurred and included in property and equipment. As of June 30, 2018, no amounts remain payable.

NOTE 12-TEMPORARILY RESTRICTED NET ASSETS
Net assets were temporarily restricted for the following purposes at June 30:

Grant for food waste reduction and composting program
from Global Green USA $ 2,475
Grant for zero net energy rehabilitation project from
City of Santa Monica 50,000
$ 52,475
29 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 13-FUNCTIONAL EXPENSES
Management of the Corporation presents operating expenses in its consolidated statement of activities by natural class categories. Operating expenses classified by functional categories for the year ended June 30, 2018 are as follows:

Rental operations $ 14,727,474
Resident services and activities 41,609
Fundraising -
Management and general 1,423,026
Total expenses $16,192,109
NOTE 14-CONTINGENCIES
Low income housing tax credits
The Partnerships have received allocations of low-income housing tax credits. The tax credits are contingent on the applicable partnerships' ability to maintain compliance with applicable sections of Internal Revenue Code Section 42. Failure to maintain compliance with occupant eligibility, and/or unit gross rent, or to correct non-compliance within a specified time period could result in recapture of previously taken tax credits. In addition, such potential noncompliance may require adjustments as disclosed in the properties' partnership or operating agreements.

CCSM
Regulatory agreements between CCSM and the City provide for the City to forgive interest and/or principal on certain mortgage loans payable if the related properties are operated and maintained as affordable housing for the loans’ duration and for extended periods of ten to twenty-five years beyond the loans’ due date, and CCSM complies with certain other provisions of the agreements.

Certain regulatory agreements state forgiveness is subject to the City's discretion, and the remaining state explicitly the forgiveness is available if CCSM complies with the applicable provisions in the agreements. CCSM is currently not required to make principal or interest payments on these loans. CCSM has not recorded any interest expense or liability related to the interest on the loans subject to forgiveness. Certain interest on other mortgage loans payable for which interest is due at maturity is reflected on the accompanying consolidated financial statements as deferred interest.

In the event that the properties are not maintained as affordable housing, or if there were other material violations of the regulatory agreements, the mortgage loans (principal and all unpaid and accrued interest) become due and payable. Although this is a possibility, management deems the contingency remote and plans to meet the conditions set forth in the regulatory agreements.
30 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 14-CONTINGENCIES (CONTINUED)

CCSM (CONTINUED)
As of June 30, 2018, the cumulative amount of principal and accrued but unpaid and unrecorded interest on these loans amounted to approximately $110,250,000 and $230,460,000, respectively.

CCSM has provided loan and operating deficit guarantees as well as indemnifications with regard to tax benefits for certain Partnerships. CCSM may be responsible for repaying a loan if the respective limited partnership defaults on the loan. CCSM will cover operating deficits as needed up to a stated limit and term. A reasonable estimate of the outstanding operating deficit guarantees and outstanding loan guarantees at June 30, 2018 amounted to approximately $1,533,000 and $-0-, respectively. In addition, CCSM has guaranteed an aggregate amount of approximately $20,618,000 to the limited investors for tax credits for various limited partnerships as of June 30, 2018. Management believes that the likelihood CCSM will be required to fund a material amount of any of the guarantees is remote.

In connection with the development of certain affordable housing properties, which are owned by the Partnerships, CCSM has the option to purchase the properties at the close of the properties’ 15-year compliance period.

Subsidiaries
Regulatory agreements between certain Subsidiaries and the City provide for the City to forgive principal on certain mortgage loans payable if the related properties are operated and maintained as affordable housing for the loans’ duration and for extended periods of fifteen to twenty-five years beyond the loans’ due dates, and the applicable Subsidiaries comply with certain other provisions of the regulatory agreements. Certain regulatory agreements state forgiveness is subject to the City's discretion, and the remaining state explicitly the forgiveness is available if the Subsidiaries comply with the applicable provisions in the agreements. The applicable Subsidiaries are currently not required to make principal or interest payments on these loans.

The applicable Subsidiaries have not recorded any interest expense or liability related to the interest on the loans subject to forgiveness (discretionary or explicit). Certain interest on other mortgage loans payable for which interest is due at maturity is reflected on the accompanying consolidated financial statements as deferred interest.

As of June 30, 2018, the cumulative amount of principal and accrued but unpaid and unrecorded interest on these loans amounted to approximately $4,162,000 and $20,108,000, respectively. 31 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
NOTE 14-CONTINGENCIES (CONTINUED)
Other
CCSM entered into agreements with the City and developed properties located at 2402 Fifth Street, 2207 Sixth Street, and Ocean Park 43. The agreements’ terms stipulate that the City has contributed land and partial construction funds in return for the properties’ development as affordable housing. Furthermore, the properties are subject to restrictive covenants and conditions for fifty years, at which time the City has the right to purchase the properties from CCSM for a nominal amount. As of June 30, 2018, the net carrying amount of these properties amounted to $3,291,402 and is included in property and equipment in the accompanying consolidated financial statements.

NOTE 15-SUBSEQUENT EVENTS
On August 10, 2018, CCSM entered into a purchase and sale agreement for the purchase of a property located at 2120 Lincoln Boulevard for the purchase price of $5,250,000. CCSM will enter into a loan agreement with the City to fund the acquisition and construction of the property.

SUPPLEMENTARY INFORMATION - PROPERTIES AND SUBSIDIARIES See independent auditors' report on additional information 32 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY
JUNE 30, 2018
3 217 225 420 502 504 724 750
3 Vicente 217-225 225 420 502 Ocean 724 750-752
Terrace Bicknell Ave San Vicente Pico Blvd. Colorado Park 43 Pacific Street Marine # of Units 24 13 36 25 44 43 8 8
Assets
Cash and cash equivalents 265,595 $ 7,283 $ 44,653 $ (9,032) $ 50,350 $ 882,381 $ 94,299 $ 97,598 $Restricted cash - reserves 212,244 110,855 200,374 97,397 102,115 636,346 136,519 71,568Restricted cash - other 22,538 9,479 21,961 19,814 21,434 76,226 10,524 6,908Accounts receivable, net 618 2,115 1,585 703 1,427 3,841 819 91Other receivablesPrepaid expenses and other current assets 1,250 - - 1,250 - - - - Land 500,000 2,204,366 2,930,000 1,355,304 - 1,278,900 267,361 1,304,343Buildings and improvements 1,412,874 2,289,792 3,818,415 1,975,369 5,580,039 4,595,033 406,691 1,782,150Furniture, fixtures and equipment - - - - - - - - Construction in progress 18,568 - 32,200 11,983 19,823 80,884 - - 1,931,442 4,494,158 6,780,615 3,342,656 5,599,862 5,954,817 674,052 3,086,493Less: Accumulated depreciation (784,275) (337,718) (1,006,112) (608,692) (1,626,281) (3,372,019) (319,925) (299,532) Property and equipment, net 1,147,167 4,156,440 5,774,503 2,733,964 3,973,581 2,582,798 354,127 2,786,961 Due (to) from Subsidiaries and Properties (937) (1,451) (2,522) (2,637) (2,232) (5,743) (945) (818) Total assets 1,648,475 $ 4,284,721 $ 6,040,554 $ 2,841,459 $ 4,146,675 $ 4,175,849 $ 595,343 $ 2,962,308 $ Liabilities and net assets (deficit)
Accounts payable and accrued expenses 26,253 $ 6,313 $ 52,450 $ 3,137 $ 4,351 $ 146,686 $ 8,937 $ 4,910 $Accrued and deferred interest payable 177,458 - 3,077 2,379 638,364 45,247 482 16,741Security deposits 14,238 9,432 19,157 16,141 18,681 38,005 5,546 6,815Long-term debt 1,097,538 4,468,551 5,781,375 2,689,462 5,451,767 1,518,471 255,717 3,026,522Less: unamortized debt issuance costs, net (139) - (15,043) (4,093) (3,052) (11,670) (3,126) - Total liabilities 1,315,348 4,484,296 5,841,016 2,707,026 6,110,111 1,736,739 267,556 3,054,988 Net assets (deficit) 333,127 (199,575) 199,538 134,433 (1,963,436) 2,439,110 327,787 (92,680) Total liabilities and net assets (deficit) 1,648,475 $ 4,284,721 $ 6,040,554 $ 2,841,459 $ 4,146,675 $ 4,175,849 $ 595,343 $ 2,962,308 $ See independent auditors' report on additional information 33 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
807 813 821 844 855 911 914 915807 813 821 844 855 911 914 915-929 Ozone 4th Street 9th Street 11th Street Lincoln Blvd. Bay Street 2nd Street 4th Street 1002 Marine 17 10 10 10 14 16 16 30
76,337 $ 88,821 $ 71,822 $ 70,537 $ 21,498 $ 74,771 $ 82,961 $ 105,535 $ 192,928 59,682 67,570 84,995 161,377 188,517 120,235 220,625 9,690 3,969 7,278 5,849 10,399 11,079 14,628 19,5341,387 461 18 6,452 3,395 6,666 1,847 782 - - - - - - - - 631,004 927,889 580,644 1,504,257 807,124 751,917 3,006,235 702,294 1,208,754 746,466 637,176 2,086,888 789,337 918,144 3,193,649 1,628,522 5,248 - - - - - - 5,584
34,845 - - - 6,515 - - - 1,879,851 1,674,355 1,217,820 3,591,145 1,602,976 1,670,061 6,199,884 2,336,400 (468,841) (221,764) (219,907) (338,792) (318,361) (325,898) (492,216) (744,812) 1,411,010 1,452,591 997,913 3,252,353 1,284,615 1,344,163 5,707,668 1,591,588 (530) (431) (249) (467) (770) (971) (920) (1,343)
1,690,822 $ 1,605,093 $ 1,144,352 $ 3,419,719 $ 1,480,514 $ 1,624,225 $ 5,926,419 $ 1,936,721 $ 78,862 $ 9,467 $ 11,564 $ 812 $ 3,330 $ 9,082 $ 1,932 $ 26,231 $ 540 1,989 618 7,475 352 330 21,034 - 11,672 3,515 5,933 6,075 8,248 9,468 13,821 13,203 771,745 1,573,409 1,089,741 3,565,399 1,443,439 1,472,017 6,052,795 1,283,087 (4,910) (975) (5,047) - (4,363) (2,278) - - 857,909 1,587,405 1,102,809 3,579,761 1,451,006 1,488,619 6,089,582 1,322,521 832,913 17,688 41,543 (160,042) 29,508 135,606 (163,163) 614,200 1,690,822 $ 1,605,093 $ 1,144,352 $ 3,419,719 $ 1,480,514 $ 1,624,225 $ 5,926,419 $ 1,936,721 $ See independent auditors' report on additional information 34 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
937 1017 1038 1118 1143 1149 1206 1227937 1017 1038 1118 1143 1149 1206 1227 11th Street 4th Street 2nd Street 5th Street 12th Street 12th Street Pico Blvd. 9th Street 11 16 15 10 11 14 26 10
78,557 $ 68,560 $ 36,559 $ 72,297 $ 122,838 $ 52,631 $ 6,056 $ 39,078 $92,299 132,753 147,312 77,420 128,561 147,466 70,840 146,45017,827 12,779 14,949 5,201 10,436 8,100 22,872 5,049 1 142 1,230 8 127 716 1,106 1,752 - - - - - - 7,500 - 346,733 752,024 900,000 351,760 400,975 280,975 669,480 601,432 778,693 1,129,968 955,793 703,078 769,877 1,031,644 1,029,871 384,020 3,035 3,315 - 1,496 2,818 5,038 - - - - - - - - - - 1,128,461 1,885,307 1,855,793 1,056,334 1,173,670 1,317,657 1,699,351 985,452 (312,044) (403,253) (446,176) (270,872) (295,460) (394,284) (406,981) (158,817) 816,417 1,482,054 1,409,617 785,462 878,210 923,373 1,292,370 826,635 (343) (843) (1,013) (1,748) (1,175) (3,490) (1,497) (314) 1,004,758 $ 1,695,445 $ 1,608,654 $ 938,640 $ 1,138,997 $ 1,128,796 $ 1,399,247 $ 1,018,650 $ 372 $ 8,596 $ 11,814 $ 2,051 $ 22,776 $ 11,011 $ 7,572 $ 53 $312 909 190,559 269 371 159 633 287 8,696 10,910 10,135 4,276 8,150 6,514 16,772 4,925
724,783 1,571,098 1,278,456 756,296 613,799 650,361 1,165,603 829,016 (3,537) (4,597) - (2,734) (3,712) (2,407) (4,191) (4,105) 730,626 1,586,916 1,490,964 760,158 641,384 665,638 1,186,389 830,176274,132 108,529 117,690 178,482 497,613 463,158 212,858 188,474 1,004,758 $ 1,695,445 $ 1,608,654 $ 938,640 $ 1,138,997 $ 1,128,796 $ 1,399,247 $ 1,018,650 $ See independent auditors' report on additional information 35 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
1314 1343 1344 1427 143825 1513 1514 16161314 1343-45 1344 1427 1438 1513 1514-18 1616 & 419 18th Street 11th Street 14th Street Berkeley 25th Street Centinela 14th Street Ocean Ave 6 8 11 7 12 8 36 25
99,644 $ 43,934 $ 78,167 $ 101,859 $ 82,000 $ 87,487 $ 151,920 $ (112,278) $ 116,045 93,523 111,223 120,417 68,099 69,010 296,208 - 8,519 8,218 8,112 12,085 7,885 5,540 27,147 4,299 5,818 2,461 802 90 364 17 909 8 - - - - - - - 1,250
195,000 251,915 482,012 140,000 1,733,340 1,133,001 1,022,803 7,923496,838 525,001 552,687 590,802 2,946,793 1,743,961 2,679,529 - - - - - - - 3,994 - - - - - - - - 225,482691,838 776,916 1,034,699 730,802 4,680,133 2,876,962 3,706,326 233,405 (310,688) (141,922) (189,764) (397,311) (426,058) (286,489) (961,073) - 381,150 634,994 844,935 333,491 4,254,075 2,590,473 2,745,253 233,405 (433) (588) (484) (676) (1,473) (269) (1,833) (1,015)
610,743 $ 782,542 $ 1,042,755 $ 567,266 $ 4,410,950 $ 2,752,258 $ 3,219,604 $ 125,669 $ 653 $ 48,868 $ 20,509 $ 727 $ 7,516 $ 312 $ 22,680 $ 82,903 $342 187 4,680 418 5,678 2,402 29,035 - 4,776 5,789 6,582 6,647 7,742 5,438 22,065 4,295 251,107 327,784 917,697 335,771 4,517,379 2,811,672 3,438,059 120,939 (1,962) - (4,682) (2,300) - - (7,375) - 254,916 382,628 944,786 341,263 4,538,315 2,819,824 3,504,464 208,137 355,827 399,914 97,969 226,003 (127,365) (67,566) (284,860) (82,468)610,743 $ 782,542 $ 1,042,755 $ 567,266 $ 4,410,950 $ 2,752,258 $ 3,219,604 $ 125,669 $ See independent auditors' report on additional information 36 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
1629 1719 1808 1827 1845 1917 1925 19371629 1719-21 1808 1827 1845 1917 1925-33 1937 Michigan Ave California Ave. 17th Street 19th Street 17th Street 17th Street 20th Street 18th Street 4 15 6 6 8 7 34 6
80,321 $ 110,008 $ 99,784 $ 96,450 $ 89,283 $ 101,254 $ 219,168 $ 113,887 $84,849 101,043 104,333 114,049 130,731 102,081 333,266 73,535 8,636 12,115 10,277 8,103 9,255 10,495 23,546 5,850
580 66 34 - 107 - 1,150 1,013 - - - - - - - - 84,564 1,298,739 128,162 126,518 140,632 146,979 1,563,415 111,374 227,998 1,309,632 309,714 353,010 397,489 281,697 2,264,081 369,053 - - - - - - - - - - - - - - - - 312,562 2,608,371 437,876 479,528 538,121 428,676 3,827,496 480,427 (128,124) (417,813) (206,981) (211,517) (337,293) (164,121) (921,475) (230,386) 184,438 2,190,558 230,895 268,011 200,828 264,555 2,906,021 250,041 (516) (667) (397) (967) (749) (592) (2,941) (345)
358,308 $ 2,413,123 $ 444,926 $ 485,646 $ 429,455 $ 477,793 $ 3,480,210 $ 443,981 $ 5,137 $ 14,359 $ 9,311 $ 29,130 $ 2,097 $ 1,148 $ 38,678 $ 25,616 $ 283 9,806 389 386 - - 49,124 - 4,050 10,532 6,000 3,784 5,429 5,175 19,874 4,354 166,869 2,442,800 259,486 276,000 130,000 193,281 3,273,278 128,313 (2,174) (3,500) (2,685) (2,673) - - (5,820) - 174,165 2,473,997 272,501 306,627 137,526 199,604 3,375,134 158,283 184,143 (60,874) 172,425 179,019 291,929 278,189 105,076 285,698358,308 $ 2,413,123 $ 444,926 $ 485,646 $ 429,455 $ 477,793 $ 3,480,210 $ 443,981 $ See independent auditors' report on additional information 37 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
1943 1944 1952 1959 2009 2017 202814 20291943 1944 1952-56 1959 2009-2015 2017-23 2028 2029-2031 17th Street 20th Street Frank Street Cloverfield Cloverfield 20th Street 14th Street 20th Street 7 8 5 62 10 12 22 12
67,471 $ 114,510 $ 9,997 $ 360,178 $ 91,071 $ 83,243 $ 149,185 $ 112,904 $73,139 54,265 3,063 569,781 108,386 159,872 206,770 106,303 5,261 10,149 3,131 77,591 9,889 9,477 22,082 7,552 - 108 2,371 1,557 2,489 20 1,047 86 - - - 5,000 - - - - 123,407 990,719 211,736 717,298 200,000 115,613 1,412,560 1,629,406 421,692 1,967,641 555,050 3,316,748 450,966 547,159 1,279,915 2,803,976 - - - - - 7,972 - - - - - 26,005 - - - - 545,099 2,958,360 766,786 4,060,051 650,966 670,744 2,692,475 4,433,382 (254,902) (413,407) (133,750) (2,031,155) (238,367) (477,601) (429,027) (443,141) 290,197 2,544,953 633,036 2,028,896 412,599 193,143 2,263,448 3,990,241 (1,327) (321) (216) (6,155) (959) (871) (1,092) (339)
434,741 $ 2,723,664 $ 651,382 $ 3,036,848 $ 623,475 $ 444,884 $ 2,641,440 $ 4,216,747 $ 9,079 $ 1,824 $ 3,447 $ 46,017 $ 6,669 $ 4,725 $ 6,862 $ 2,165 $ 225 33,053 174,213 2,297 - - 19,088 23,200
2,804 9,087 1,960 42,651 6,605 6,321 18,487 7,374
264,874 2,805,932 257,996 1,717,877 266,031 126,000 2,047,800 4,386,515 (1,463) - (591) (9,102) - - (4,223) - 275,519 2,849,896 437,025 1,799,740 279,305 137,046 2,088,014 4,419,254 159,222 (126,232) 214,357 1,237,108 344,170 307,838 553,426 (202,507)434,741 $ 2,723,664 $ 651,382 $ 3,036,848 $ 623,475 $ 444,884 $ 2,641,440 $ 4,216,747 $ See independent auditors' report on additional information 38 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
2112 21204 2121 2122 2207 2211 2243 2260
2112-20 2120 2121 2122 2207 6th St., 2211 2243-47 2260-68 Delaware 4th Street Arizona Ave Pico Blvd. 2402 5th St. 4th Street 28th Street 28th Street 38 27 11 8 12 22 12 12
262,114 $ 84,785 $ 108,038 $ 82,843 $ 102,212 $ 122,241 $ 70,304 $ 107,642 $279,303 216,522 148,448 43,529 259,303 143,894 88,378 110,878 16,484 22,913 18,763 3,816 20,850 19,711 7,588 9,006
80 117 123 (132) 9,186 748 1,728 1,401 - - - - - - - - 1,860,000 2,293,484 670,000 588,292 337,306 2,040,548 817,423 857,069 3,499,832 1,721,887 837,015 417,628 1,003,735 5,000,265 1,229,112 787,255 - - - - - - - - - - - - - - - - 5,359,832 4,015,371 1,507,015 1,005,920 1,341,041 7,040,813 2,046,535 1,644,324 (1,090,802) (558,099) (527,880) (115,917) (632,437) (988,768) (355,146) (256,310) 4,269,030 3,457,272 979,135 890,003 708,604 6,052,045 1,691,389 1,388,014 (1,823) (11,053) (1,935) (278) (492) (3,985) (529) (357) 4,825,188 $ 3,770,556 $ 1,252,572 $ 1,019,781 $ 1,099,663 $ 6,334,654 $ 1,858,858 $ 1,616,584 $ 6,125 $ 57,228 $ 8,675 $ 4,460 $ 10,045 $ 3,573 $ 3,922 $ 17,378 $ 27,098 1,138 - - 959 49,903 4,497 7,30115,082 18,426 8,918 3,456 8,497 18,537 6,083 7,836 4,250,298 3,343,118 148,941 800,703 215,425 6,718,370 1,902,933 1,480,811 (6,391) (3,378) - - (5,222) - (3,298) (1,415)
4,292,212 3,416,532 166,534 808,619 229,704 6,790,383 1,914,137 1,511,911 532,976 354,024 1,086,038 211,162 869,959 (455,729) (55,279) 104,673 4,825,188 $ 3,770,556 $ 1,252,572 $ 1,019,781 $ 1,099,663 $ 6,334,654 $ 1,858,858 $ 1,616,584 $ See independent auditors' report on additional information 39 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
2302 2309 2320 2404 2418 2428 24492302 2309-2315 2320 2404-2410 2418 2428-32 2449-2501 5th Street Oak Street 34th Street Kansas 5th Street 34th Street Centinela 6 12 6 10 6 12 20
71,156 $ 100,825 $ 66,698 $ 57,102 $ 82,996 $ 12,946 $ 14,024 $97,434 76,300 38,226 64,501 27,475 51,490 123,05311,388 4,978 3,975 6,055 3,780 5,818 12,046 8 1,522 23 8 23 727 2,012 - - - - - - - 121,353 1,085,813 828,005 736,925 763,246 598,647 1,468,329 381,635 2,227,234 1,059,662 1,023,072 1,172,943 964,004 1,259,254 - - - - - - - - - - - - - - 502,988 3,313,047 1,887,667 1,759,997 1,936,189 1,562,651 2,727,583 (255,209) (187,497) (183,676) (285,707) (195,161) (288,210) (372,475) 247,779 3,125,550 1,703,991 1,474,290 1,741,028 1,274,441 2,355,108 (1,465) (532) (482) (1,428) (691) (453) (960)
426,300 $ 3,308,643 $ 1,812,431 $ 1,600,528 $ 1,854,611 $ 1,344,969 $ 2,505,283 $ 1,661 $ 1,324 $ 9,448 $ 3,495 $ 1,504 $ 23,394 $ 17,539 $ 393 23,393 5,465 566 8,690 - 855
5,195 4,950 3,903 5,274 3,559 5,262 10,157
272,637 3,360,129 1,837,788 1,622,966 1,908,671 1,542,847 2,442,420 (2,219) - - (1,490) - - (2,541)
277,667 3,389,796 1,856,604 1,630,811 1,922,424 1,571,503 2,468,430148,633 (81,153) (44,173) (30,283) (67,813) (226,534) 36,853426,300 $ 3,308,643 $ 1,812,431 $ 1,600,528 $ 1,854,611 $ 1,344,969 $ 2,505,283 $ See independent auditors' report on additional information 40 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) # of Units
Assets
Cash and cash equivalentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netOther receivablesPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2018
2520 2525 2608 2625 2900 2907 Total
2520 Euclid 2525-2533 2608-18 2625 2900 2907 Combined
1219-1221 OP Kansas Street 28th Street Kansas Street 4th Street 3rd Street Buildings 10 20 12 16 19 11 1,076
38,485 $ 133,810 $ 79,902 $ 136,259 $ 51,602 $ 70,164 $ 6,789,580 $22,646 279,689 111,701 215,623 90,694 70,439 9,365,965 9,181 20,039 8,832 17,026 9,318 9,353 924,657
38 659 1,245 34 944 - 78,880
99 99 - - - - - - 16,250
2,804,756 270,865 806,989 516,846 2,192,059 626,946 59,307,0342,510,319 940,102 834,949 709,323 3,640,776 1,122,662 98,586,339 - 4,999 - - - - 43,499 - - - - - - 456,3055,315,075 1,215,966 1,641,938 1,226,169 5,832,835 1,749,608 158,393,177 (110,088) (797,017) (269,589) (546,282) (758,285) (352,565) (33,052,517) 5,204,987 418,949 1,372,349 679,887 5,074,550 1,397,043 125,340,660 (299) (1,746) (1,404) (1,787) (2,865) (917) (94,095)
5,275,038 $ 851,400 $ 1,572,625 $ 1,047,042 $ 5,224,342 $ 1,546,082 $ 142,421,996 $ 452 $ 12,412 $ 33,407 $ 3,276 $ 1,478 $ 28,130 $ 1,097,920 $ 33,533 - 669 - - 342 1,629,193
9,165 11,764 7,589 9,898 9,261 7,885 668,846
5,412,267 231,430 1,489,008 189,070 5,719,536 1,618,037 127,101,312 - - (1,474) - - (1,661) (157,618) 5,455,417 255,606 1,529,199 202,244 5,730,275 1,652,733 130,339,653 (180,379) 595,794 43,426 844,798 (505,933) (106,651) 12,082,343 5,275,038 $ 851,400 $ 1,572,625 $ 1,047,042 $ 5,224,342 $ 1,546,082 $ 142,421,996 $ See independent auditors' report on additional information 41 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY JUNE 30, 2018
3 217 225 420 502 504 724 750 807
3 Vicente 217-225 225 420 502 Ocean 724 750-752 807
Terrace Bicknell Ave San Vicente Pico Blvd. Colorado Park 43 Pacific Marine 4th Street # of Units 24 13 36 25 44 43 8 8 17
Revenues:

Rental fees, net of vacancy 216,954 $ 129,007 $ 426,005 $ 221,943 $ 292,385 $ 716,918 $ 127,555 $ 110,718 $ 199,579 $Debt forgiveness - - - - - - - - - Interest 111 56 356 56 97 780 72 37 265Other 471 255 707 491 864 851 157 157 334 Total revenues 217,536 129,318 427,068 222,490 293,346 718,549 127,784 110,912 200,178 Expenses:

Salaries 13,422 6,477 19,825 13,338 25,647 22,263 5,485 4,250 9,794Payroll taxes 965 462 1,424 956 1,849 1,592 399 304 705Employee benefits 1,037 562 1,555 1,080 1,901 1,864 345 345 734Legal and professional (261) 586 1,622 1,126 1,982 1,937 360 360 766Loss on disposal of buildings and improvements - - - - - 337 - - - Consultants 657 293 813 909 1,801 971 181 181 2,084Office and administration 3,372 1,488 4,231 3,135 10,859 2,933 1,174 560 1,112Insurance 3,686 3,757 9,763 5,902 10,194 9,584 1,725 1,992 2,862Maintenance and repairs 44,025 58,093 86,881 48,739 75,853 150,041 19,362 17,912 44,377Maintenance fees interfund 16,624 8,704 27,836 20,413 18,102 52,230 6,094 5,222 11,888Property management fees interfund 22,608 12,246 33,912 23,550 33,264 40,506 7,536 7,536 16,014Bookkeeping fees interfund 4,723 2,558 7,085 4,920 5,016 8,462 1,574 1,574 3,346Resident service fees interfund 1,238 671 1,858 1,290 9,000 2,219 413 413 877Gardening and grounds - 4,690 8,586 960 2,400 24,265 12,414 3,276 1,500Pest control 1,839 552 2,478 1,323 8,623 2,785 396 516 825Utilities 19,052 7,624 31,248 22,340 43,150 48,053 11,864 6,576 9,477Property taxes 1,776 9,844 34,126 10,284 12,230 43,026 1,644 17,578 4,809Rent control fees 1,981 1,096 2,749 1,585 - - 525 639 1,073Workers compensation 563 243 817 535 1,112 863 265 169 418 Total expenses before interest and depreciation 137,307 119,946 276,809 162,385 262,983 413,931 71,756 69,403 112,661 Net operating income 80,229 9,372 150,259 60,105 30,363 304,618 56,028 41,509 87,517 Interest 7,757 - 77,111 44,219 48,938 77,363 6,734 16,741 8,184Depreciation 39,939 46,011 80,075 38,357 117,384 151,338 15,241 34,807 27,457 Total interest and depreciation 47,696 46,011 157,186 82,576 166,322 228,701 21,975 51,548 35,641 Changes in net assets (deficit) 32,533 (36,639) (6,927) (22,471) (135,959) 75,917 34,053 (10,039) 51,876Net assets (deficit), beginning of year 300,594 (162,936) 206,465 131,904 (1,827,477) 2,363,193 318,734 (67,093) 781,037 Intercompany transfer - - - 25,000 - - (25,000) (15,548) - Net assets (deficit), end of year 333,127 $ (199,575) $ 199,538 $ 134,433 $ (1,963,436) $ 2,439,110 $ 327,787 $ (92,680) $ 832,913 $

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
See independent auditors' report on additional information 42 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY JUNE 30, 2018
813 821 844 855 911 914 915 937 1017813 821 844 855 Bay St/ 911 914 915-929 Ozone 937 1017 9th Street 11th Street Lincoln Blvd.1916-26 10th S 2nd Street 4th Street 1002 Marine 11th Street 4th Street 10 10 10 14 16 16 30 11 16
95,978 $ 96,604 $ 95,551 $ 139,429 $ 139,039 $ 166,788 $ 247,843 $ 128,873 $ 156,612 $ - - - - - - - - - 31 96 43 256 260 63 121 136 188 196 196 196 275 314 317 589 216 314
96,205 96,896 95,790 139,960 139,613 167,168 248,553 129,225 157,114 5,051 5,021 5,356 7,755 10,407 8,903 15,153 6,054 9,434 361 358 384 557 755 640 1,082 438 680432 432 432 605 691 691 1,296 475 691450 450 450 (1,082) (822) 11 1,351 495 721 - - - - - - - - - 226 226 226 316 361 591 1,377 1,948 361 1,236 912 2,868 3,626 2,531 1,693 5,356 765 4,7391,884 1,838 1,944 3,398 2,764 4,984 4,038 2,160 2,890 19,054 16,656 17,415 97,314 39,609 33,884 60,103 30,592 40,516 6,194 4,120 7,075 12,976 8,146 4,047 13,257 6,812 6,9819,420 9,420 9,420 13,188 15,072 15,072 28,260 10,362 15,0721,968 1,968 1,968 2,755 3,149 3,149 5,904 2,165 3,149 516 516 516 722 826 826 1,548 568 826
2,424 1,800 2,424 5,461 1,200 1,200 7,032 1,080 3,200
972 911 996 1,140 914 876 840 528 564
8,770 9,035 7,754 9,896 8,680 14,185 20,974 7,904 15,4717,489 3,146 7,956 6,315 4,153 15,847 3,646 7,876 8,474 525 1,022 1,082 511 878 1,248 2,155 1,094 945192 190 216 322 486 372 577 250 411 67,164 58,021 68,482 165,775 99,800 108,219 173,949 81,566 115,12529,041 38,875 27,308 (25,815) 39,813 58,949 74,604 47,659 41,989 11,089 16,152 7,475 8,702 9,197 21,034 - 4,806 16,26414,517 12,803 38,545 19,279 21,204 60,467 40,517 17,400 24,687 25,606 28,955 46,020 27,981 30,401 81,501 40,517 22,206 40,951 3,435 9,920 (18,712) (53,796) 9,412 (22,552) 34,087 25,453 1,038 21,872 31,623 (141,330) 83,304 132,822 (110,269) 598,514 248,679 107,491 (7,619) - - - (6,628) (30,342) (18,401) - - 17,688 $ 41,543 $ (160,042) $ 29,508 $ 135,606 $ (163,163) $ 614,200 $ 274,132 $ 108,529 $ See independent auditors' report on additional information 43 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
1038 1118 1143 1149 1206 1227 1314 1343 13441038 1118 1143 1149 1206 1227 1314 1343-45 1344 2nd Street 5th Street 12th Street 12th Street Pico Blvd. 9th Street 18th Street 11th Street 14th Street 15 10 11 14 26 10 6 8 11
130,225 $ 103,300 $ 135,988 $ 136,152 $ 193,595 $ 84,352 $ 102,241 $ 91,304 $ 120,307 $ - - - - - - - - - 107 117 178 202 45 203 61 48 155 295 196 216 275 511 196 118 157 216
130,627 103,613 136,382 136,629 194,151 84,751 102,420 91,509 120,678 7,935 5,541 5,986 7,559 14,597 5,081 3,627 5,079 5,789
568 398 430 542 1,050 363 262 368 414648 432 475 605 1,124 434 264 345 475676 450 495 631 30,790 450 270 360 495 - - - - - - - - - 339 226 478 316 583 226 135 181 248741 606 605 1,599 4,781 589 (1,136) 3,380 1,243 2,352 2,107 2,026 2,348 4,766 1,512 1,414 1,551 1,986
38,166 23,193 22,071 50,029 55,142 23,613 10,170 37,977 9,535 5,911 16,856 6,677 14,431 14,049 2,086 7,540 10,559 5,939 12,330 9,420 10,362 13,188 21,216 9,420 5,652 7,536 10,362 1,710 1,968 2,165 2,755 5,117 1,968 1,181 1,574 2,165
630 516 568 722 1,342 516 310 413 568
5,000 1,500 1,080 2,400 5,240 2,700 3,456 3,000 1,8001,530 806 234 1,884 990 1,293 456 2,162 1,016 24,126 8,696 7,468 (7,231) 22,392 4,948 7,684 4,960 8,702 2,777 5,883 4,325 5,109 3,657 1,329 3,259 1,472 2,8581,278 630 525 969 - 259 655 502 210 316 230 245 307 611 195 161 233 229
107,033 79,458 66,215 98,163 187,447 56,982 45,360 81,652 54,034 23,594 24,155 70,167 38,466 6,704 27,769 57,060 9,857 66,644 16,410 6,412 8,841 3,924 15,725 7,215 4,872 2,546 20,48153,474 14,522 20,657 26,664 38,929 11,105 12,530 10,315 11,395 69,884 20,934 29,498 30,588 54,654 18,320 17,402 12,861 31,876 (46,290) 3,221 40,669 7,878 (47,950) 9,449 39,658 (3,004) 34,768 163,980 175,261 456,944 465,280 260,808 179,025 331,169 402,918 77,078 - - - (10,000) - - (15,000) - (13,877)117,690 $ 178,482 $ 497,613 $ 463,158 $ 212,858 $ 188,474 $ 355,827 $ 399,914 $ 97,969 $ See independent auditors' report on additional information 44 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
1427 143825 1513 1514 1616 1629 1719 1808 18271427 1438 1513 1514-18 1616 & 419 1629 1719-21 1808 1827 Berkeley 25th Street Centinela 14th Street Ocean Ave Michigan Ave California 17th Street 19th Street 7 12 8 36 25 4 15 6 6
116,004 $ 161,781 $ 96,062 $ 345,506 $ 114,525 $ 80,586 $ 150,244 $ 106,752 $ 98,181 $ - - - - - - - - - 64 35 35 415 2 45 55 55 59 138 223 157 707 255 79 295 118 118
116,206 162,039 96,254 346,628 114,782 80,710 150,594 106,925 98,358 5,147 6,250 4,411 18,941 6,783 2,165 7,359 3,382 3,189
376 447 317 1,356 493 155 524 243 228302 518 345 1,555 586 172 648 259 259315 541 360 1,622 669 180 678 270 270 - - - - - - - - - 158 271 181 1,043 873 90 2,039 135 135 1,166 669 2,312 4,923 2,943 409 912 1,051 1,1571,862 3,216 1,724 10,055 5,694 879 3,057 1,378 1,361 11,402 16,687 29,614 47,821 15,481 22,002 24,391 6,193 27,142 6,232 5,931 3,029 16,531 12,118 3,227 6,298 2,626 4,9576,594 11,304 7,536 33,912 12,246 3,768 14,130 5,652 5,6521,378 2,362 1,574 7,085 2,558 787 2,952 1,181 1,181 361 619 413 1,858 671 206 774 310 310
2,280 3,599 1,440 2,400 7,800 4,056 5,400 5,537 12,6581,810 756 600 1,403 2,424 468 1,284 504 8798,558 11,432 6,630 28,473 22,542 6,420 9,831 10,702 8,1723,119 30,644 14,511 6,314 117,635 4,701 14,615 2,653 6451,301 1,353 779 2,166 3,030 - 1,374 - 148 258 245 182 750 270 88 272 142 128
52,619 96,844 75,958 188,208 214,816 49,773 96,538 42,218 68,47163,587 65,195 20,296 158,420 (100,034) 30,937 54,056 64,707 29,887 5,942 5,678 2,402 71,367 - 4,015 28,841 5,455 5,425
13,396 64,055 33,081 53,141 - 8,768 26,172 6,132 7,586
19,338 69,733 35,483 124,508 - 12,783 55,013 11,587 13,01144,249 (4,538) (15,187) 33,912 (100,034) 18,154 (957) 53,120 16,876 181,754 (122,827) (52,379) (306,105) 17,566 180,989 (56,544) 144,305 162,143 - - - (12,667) - (15,000) (3,373) (25,000) - 226,003 $ (127,365) $ (67,566) $ (284,860) $ (82,468) $ 184,143 $ (60,874) $ 172,425 $ 179,019 $ See independent auditors' report on additional information 45 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
1845 1917 1925 1937 1943 1944 1952 1959 20091845 1917 1925-33 1937 1943 1944 1952-56 1959 2009-2015 17th Street 17th Street 20th Street 18th Street 17th Street 20th Street Frank Street Cloverfield Cloverfield 8 7 34 6 7 8 5 62 10
107,968 $ 96,954 $ 429,601 $ 89,763 $ 78,199 $ 127,544 $ 50,130 $ 808,391 $ 115,634 $ - - - - - - - - - 68 55 170 33 47 30 7 314 56 157 138 668 118 138 157 98 1,218 196
108,193 97,147 430,439 89,914 78,384 127,731 50,235 809,923 115,886 4,821 4,116 19,280 3,111 3,556 5,545 4,001 33,290 5,905 348 297 1,387 222 254 404 293 2,387 426345 302 1,469 259 302 345 216 2,679 432360 315 1,531 270 315 360 225 2,793 450 - - - - - - - 1,029 - 181 158 1,400 135 1,858 181 113 1,400 226 1,915 1,182 3,843 1,100 1,089 1,211 466 2,780 9991,690 1,310 8,572 1,450 1,409 2,188 2,071 15,404 2,026 60,780 11,727 81,039 27,842 13,873 11,634 6,610 148,116 24,257 6,528 7,275 22,144 9,376 7,124 3,158 2,734 54,297 7,5557,536 6,594 32,028 4,464 6,594 7,536 4,710 58,404 9,4201,569 1,378 6,691 1,080 1,378 1,574 984 12,202 1,968 413 361 1,753 288 361 413 255 3,199 516
2,400 4,500 7,348 10,450 9,689 2,400 2,580 13,398 10,446 396 468 828 916 468 564 396 2,483 1,804
10,236 6,798 40,166 8,305 9,062 9,767 6,920 60,590 10,498 4,982 3,627 8,360 1,470 1,454 5,206 3,861 18,124 1,892
630 630 2,037 - 630 840 420 5,046 679214 179 816 121 136 268 209 1,344 258 105,344 51,217 240,692 70,859 59,552 53,594 37,064 438,965 79,757 2,849 45,930 189,747 19,055 18,832 74,137 13,171 370,958 36,129 - (38) 79,739 - 3,229 33,053 9,062 31,101 288 12,611 7,929 55,105 8,803 10,009 38,361 10,743 106,732 12,249 12,611 7,891 134,844 8,803 13,238 71,414 19,805 137,833 12,537 (9,762) 38,039 54,903 10,252 5,594 2,723 (6,634) 233,125 23,592 321,691 270,150 115,711 275,446 153,628 (100,967) 31,375 1,004,779 320,578 (20,000) (30,000) (65,538) - - (27,988) 189,616 (796) - 291,929 $ 278,189 $ 105,076 $ 285,698 $ 159,222 $ (126,232) $ 214,357 $ 1,237,108 $ 344,170 $ See independent auditors' report on additional information 46 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
2017 202814 2029 2112 21204 2121 2122 2207 2211
2017-23 2028 2029-2031 2112-2120 2120 2121 2122 2207 6th St., 2211 20th Street 14th Street 20th Street Delaware 4th Street Arizona Ave Pico Blvd. 2402 5th St. 4th Street 12 22 12 38 27 11 8 12 22
136,934 $ 222,705 $ 131,367 $ 332,023 $ 291,790 $ 186,101 $ 58,289 $ 209,519 $ 231,570 $ - 23,188 - 38,002 16,324 - 13,215 - - 82 108 54 141 115 82 23 137 76 236 432 236 746 530 216 157 236 432
137,252 246,433 131,657 370,912 308,759 186,399 71,684 209,892 232,078 6,160 11,134 7,298 20,497 13,383 5,818 4,658 3,756 11,450 440 795 527 1,470 954 417 336 272 819518 950 518 1,642 1,167 475 345 276 950541 991 541 1,712 1,216 495 360 20,918 991 - - - - - - - - - 1,191 2,197 271 1,088 610 708 181 96 727 2,448 1,384 2,080 3,857 3,749 2,759 626 4,732 1,8182,530 3,729 2,210 7,696 6,364 2,609 1,108 3,522 4,808 32,972 26,751 12,930 35,703 85,783 22,076 18,740 11,334 36,15911,675 7,801 4,668 11,428 17,719 10,445 4,872 9,738 10,73611,304 20,724 11,304 35,796 25,434 10,362 5,760 11,304 20,724 2,362 4,330 2,362 7,478 5,314 2,165 1,574 2,362 4,330
619 1,135 619 1,961 1,393 568 413 619 1,135
5,400 5,532 3,149 7,307 3,960 14,976 6,528 13,290 5,790 996 1,348 756 1,825 1,544 1,032 516 1,673 1,905
19,902 20,818 9,430 39,365 24,761 15,712 6,316 16,788 15,387 4,667 11,331 13,089 21,711 14,379 7,915 3,591 15,042 23,9491,050 2,100 1,122 3,894 2,194 1,155 735 - 1,908 238 425 331 831 499 231 201 147 449
105,013 123,475 73,205 205,261 210,423 99,918 56,860 115,869 144,035 32,239 122,958 58,452 165,651 98,336 86,481 14,824 94,023 88,043 - 44,368 23,184 57,726 29,004 1,205 - 11,513 49,903 24,015 26,636 51,887 71,640 34,845 17,253 7,927 23,727 100,478 24,015 71,004 75,071 129,366 63,849 18,458 7,927 35,240 150,381 8,224 51,954 (16,619) 36,285 34,487 68,023 6,897 58,783 (62,338) 299,614 516,548 (160,061) 516,807 360,537 1,048,015 204,265 911,176 (443,391) - (15,076) (25,827) (20,116) (41,000) (30,000) - (100,000) 50,000307,838 $ 553,426 $ (202,507) $ 532,976 $ 354,024 $ 1,086,038 $ 211,162 $ 869,959 $ (455,729) $ See independent auditors' report on additional information 47 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
2243 2260 2302 2309 2320 2404 2418 2428 2449
2243-47 2260-2268 2302 2309-2315 2320 2404-10 2418 2428-2432 2449-2501 28th Street 28th Street 5th Street Oak Street 34th Street Kansas Ave 5th Street 34th Street Centinela 12 12 6 12 6 10 6 12 20
118,781 $ 135,808 $ 74,988 $ 141,384 $ 68,182 $ 119,266 $ 60,975 $ 87,173 $ 192,702 $ - - - - - - - - - 46 57 53 37 19 34 15 28 65 248 236 118 236 118 196 118 236 393
119,075 136,101 75,159 141,657 68,319 119,496 61,108 87,437 193,160 6,084 5,848 3,930 6,678 3,632 6,008 3,140 6,537 10,572
434 416 285 480 262 434 225 469 757518 518 259 518 259 432 259 518 864541 541 270 541 270 450 270 541 901 - - - - - - - - - 271 271 135 271 135 226 135 271 451 1,058 704 471 936 295 623 471 930 1,3612,441 2,362 1,308 1,953 1,236 1,831 1,256 2,094 3,464 16,552 24,004 9,563 5,581 6,721 15,998 4,956 25,567 41,203 4,626 5,921 9,040 4,800 3,139 12,373 3,461 5,843 9,572
11,304 11,304 5,652 11,304 5,652 9,420 5,652 8,640 18,840 2,362 2,362 1,181 2,362 1,181 1,968 1,181 2,362 3,936
619 619 310 619 310 516 310 619 1,032
4,133 2,568 6,849 5,496 13,819 25,243 1,825 23,848 9,162 962 612 691 1,983 516 1,983 564 612 1,140
8,031 7,575 4,982 7,857 6,576 15,828 9,284 9,960 19,842 21,662 12,177 3,527 11,309 7,155 3,548 7,180 5,205 9,606 1,155 1,164 - 1,050 214 420 420 324 1,280
233 214 185 278 161 266 124 267 421
82,986 79,180 48,638 64,016 51,533 97,567 40,713 94,607 134,40436,089 56,921 26,521 77,641 16,786 21,929 20,395 (7,170) 58,756 17,659 23,396 5,593 23,393 5,465 14,756 8,690 6,842 22,03924,612 16,369 8,002 42,041 19,738 20,329 21,663 19,319 25,124 42,271 39,765 13,595 65,434 25,203 35,085 30,353 26,161 47,163 (6,182) 17,156 12,926 12,207 (8,417) (13,156) (9,958) (33,331) 11,593 (49,097) 91,517 135,707 (93,360) (35,756) (17,127) (57,855) (193,203) 25,260 - (4,000) - - - - - - - (55,279) $ 104,673 $ 148,633 $ (81,153) $ (44,173) $ (30,283) $ (67,813) $ (226,534) $ 36,853 $ See independent auditors' report on additional information 48 (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)
# of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessInterestOther Total revenues
Expenses:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES

SUPPLMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2018
2520 2525 2608 2625 2900 2907 Total
2520 Euclid 2525-33 2608-2618 2625 2900 2907 Combined
1219-1221 OP Kansas Street 28th Street Kansas Street 4th Street 3rd Street Buildings 10 20 12 16 19 11 1,076
155,271 $ 268,959 $ 134,532 $ 228,261 $ 179,834 $ 104,513 $ 11,849,997 $ - - - - 6,250 - 96,979 13 145 57 112 47 43 7,274
196 393 236 314 373 216 20,906
155,480 269,497 134,825 228,687 186,504 104,772 11,975,156 5,495 10,826 5,994 8,857 12,085 5,557 581,478
395 776 428 636 876 397 41,763432 864 518 691 821 475 45,750450 2,093 541 721 856 495 93,889 - 87 - - - - 1,453226 451 271 2,061 2,169 248 41,492759 1,529 1,078 1,068 3,540 652 134,053 3,875 4,785 2,362 4,351 4,337 2,318 235,322
18,105 54,958 14,339 34,441 58,471 41,591 2,411,431
4,447 19,372 6,216 13,565 10,246 8,526 712,1389,420 18,840 11,304 15,072 17,898 10,362 983,4001,968 3,936 2,362 3,149 3,739 2,165 204,409 516 1,032 619 826 980 568 61,466
5,280 4,873 31,478 4,021 4,970 1,080 429,0461,428 1,944 612 2,270 2,448 600 85,8608,638 28,134 11,150 16,942 21,399 9,587 1,013,164 49,069 5,302 13,544 5,566 36,146 8,518 789,889
1,213 1,578 624 1,050 1,939 945 72,733
226 440 225 367 555 212 23,934
111,942 161,820 103,665 115,654 183,475 94,296 7,962,670 43,538 107,677 31,160 113,033 3,029 10,476 4,012,486
34,120 - 17,200 - - 8,851 1,158,65846,289 31,729 17,448 20,805 69,575 24,610 2,240,553 80,409 31,729 34,648 20,805 69,575 33,461 3,399,211
(36,871) 75,948 (3,488) 92,228 (66,546) (22,985) 613,275 (143,508) 569,846 46,914 802,570 (439,387) (83,666) 11,883,248 - (50,000) - (50,000) - - (414,180)(180,379) $ 595,794 $ 43,426 $ 844,798 $ (505,933) $ (106,651) $ 12,082,343 49 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY
JUNE 30, 2018
Monthly Balloon Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest 3 Vicente Terrace
CITIBANK (1) $ 34,218 $ 20,284 $ 13,934 3.600% $ 1,765 $ - 02/2020 $ - $ - DPRLP / DEPT. OF HOUSING (5) 200,000 200,000 - 3.000% - - 12/2018 - - CITY OF SANTA MONICA (4) 863,320 - 863,320 10.790% - - 04/2023 863,320 18,288,803 1,097,538 220,284 877,254 - 18,288,803
217 Bicknell Ave.

CITY OF SANTA MONICA (2) (4) 4,468,551 - 4,468,551 4.910% - - 12/2064 4,468,551 1,704,242 4,468,551 - 4,468,551 - 1,704,242
225 San Vicente Blvd.

PACIFIC LIFE 802,750 45,249 757,501 9.210% 9,775 - 06/2030 - - CITY OF SANTA MONICA (2) (4) 2,000,000 - 2,000,000 5.500% - - 06/2055 2,000,000 3,113,390 CITY OF SANTA MONICA (3) 1,598,625 25,375 1,573,250 0.000% - - 06/2055 1,598,625 - CITY OF SANTA MONICA (2) (4) 1,380,000 - 1,380,000 6.100% - - 06/2064 1,380,000 772,672 5,781,375 70,624 5,710,751 - 3,886,062
420 Pico Blvd.

BANK OF AMERICA (1) 463,761 17,879 445,882 9.290% 5,018 - 12/2031 - - CITY OF SANTA MONICA (2) (4) 566,112 - 566,112 8.320% - - 06/2055 566,112 1,828,522 CITY OF SANTA MONICA (3) 1,444,186 22,924 1,421,262 0.000% - - 06/2055 1,444,186 - CITY OF SANTA MONICA 215,403 - 215,403 0.000% - - 06/2055 - - 2,689,462 40,803 2,648,659 - 1,828,522
502 Colorado
CITY OF SANTA MONICA (2) (4) 3,626,496 - 3,626,496 0.000% - - 06/2057 3,626,496 - MHP/DEPT. OF HOUSING (5) 1,628,748 - 1,628,748 3.000% - - 07/2058 - - AHP/ BANK OF AMERICA (4) 196,523 - 196,523 0.000% - - 06/2020 196,523 - 5,451,767 - 5,451,767 - -
OP43
CITIBANK (1) 788,605 118,797 669,808 4.570% 12,697 - 05/2024 - - CITY OF SANTA MONICA (2) (5) 729,866 - 729,866 5.000% - - 10/2027 - - 1,518,471 118,797 1,399,674 - -
724 Pacific St
CITIBANK (1, G1) 129,717 19,297 110,420 4.440% 2,056 - 06/2024 - - CITY OF SANTA MONICA (4) 126,000 126,000 - 12.000% - - 03/2019 126,000 6,308,031 255,717 145,297 110,420 - 6,308,031
750 Marine St.

CITY OF SANTA MONICA (2) (4) 3,026,522 - 3,026,522 6.460% - - 11/2063 3,026,522 2,260,379 3,026,522 - 3,026,522 - 2,260,379
807 4th Street
PACIFIC LIFE 170,587 16,650 153,937 4.230% 1,962 - 02/2027 - - CITY OF SANTA MONICA (2) (5) 601,158 - 601,158 0.000% - - 07/2050 - - 771,745 16,650 755,095 - -
813 9th Street
CITIBANK (1) 115,105 4,562 110,543 8.000% 1,134 - 08/2032 - - CITY OF SANTA MONICA (2) (4) 330,635 - 330,635 7.040% - - 05/2056 330,635 686,014 CITY OF SANTA MONICA (2) (4) 1,127,669 - 1,127,669 7.040% - - 05/2056 1,127,669 2,399,290 1,573,409 4,562 1,568,847 - 3,085,304
821 11th Street
PACIFIC LIFE 167,774 7,875 159,899 9.160% 1,910 - 06/2030 - - CITY OF SANTA MONICA (2) (4) 921,967 - 921,967 7.020% - - 05/2054 921,967 2,454,182 1,089,741 7,875 1,081,866 - 2,454,182
844 Lincoln Blvd.

CITY OF SANTA MONICA (2) (4) 3,565,399 - 3,565,399 6.040% - - 11/2063 3,565,399 2,508,865 3,565,399 - 3,565,399 - 2,508,865
855 Bay St.

PACIFIC LIFE 140,676 8,814 131,862 5.730% 1,387 - 12/2029 - - CITY OF SANTA MONICA (4) 552,763 - 552,763 6.360% - - 10/2033 552,763 1,360,186 CITY OF SANTA MONICA (2) (4) 750,000 - 750,000 6.360% - - 10/2048 750,000 1,675,163 1,443,439 8,814 1,434,625 - 3,035,349
911 2nd St.

PACIFIC LIFE 167,972 3,793 164,179 5.300% 1,050 - 06/2030 - - CITY OF SANTA MONICA (2) 1,304,045 - 1,304,045 6.770% - - 05/2054 1,304,045 2,954,621 1,472,017 3,793 1,468,224 - 2,954,621
914 4th Street
CITY OF SANTA MONICA (2) (4) 6,052,795 - 6,052,795 6.100% - - 10/2063 6,052,795 4,198,807 6,052,795 - 6,052,795 - 4,198,807
915 Ozone
CITY OF SANTA MONICA (2) (5) 1,283,087 - 1,283,087 0.000% - - 12/2050 - - 1,283,087 - 1,283,087 - -
937 11th Street
PACIFIC LIFE 102,604 9,741 92,863 4.080% 1,146 - 04/2027 - - CITY OF SANTA MONICA (2) (5) 622,179 - 622,179 0.000% - - 01/2051 - - 724,783 9,741 715,042 - -
1017 4th Street
PACIFIC LIFE 238,488 10,238 228,250 9.640% 2,732 - 12/2030 - - CITY OF SANTA MONICA (2) (4) 1,332,610 - 1,332,610 6.770% - - 05/2055 1,332,610 3,140,297 1,571,098 10,238 1,560,860 - 3,140,297
50 JUNE 30, 2018
Monthly Balloon Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest 1038 2nd Street
CHRP/DEPT. OF HOUSING (2) (5) 631,440 - 631,440 3.000% - - 05/2031 - - CITY OF SANTA MONICA (2) (4) 647,016 - 647,016 10.340% - - 05/2066 647,016 8,694,384 1,278,456 - 1,278,456 - 8,694,384
1118 5th Street
PACIFIC LIFE 105,972 7,802 98,170 5.581% 1,127 - 07/2028 - - CITY OF SANTA MONICA (2) (5) 650,324 - 650,324 0.000% - - 04/2052 - - 756,296 7,802 748,494 - -
1143 12th Street
PACIFIC LIFE 146,208 10,764 135,444 5.581% 1,554 - 09/2028 - - CITY OF SANTA MONICA (2) (5) 467,591 - 467,591 0.000% - - 03/2052 - - 613,799 10,764 603,035 - -
1149 12th Street
PACIFIC LIFE 70,356 70,356 - 5.059% 681 69,000 10/2018 - - CITY OF SANTA MONICA (2) (5) 580,005 - 580,005 0.000% - - 03/2052 - - 650,361 70,356 580,005 - -
1206 Pico Blvd
CITIBANK 208,608 12,137 196,471 7.150% 2,222 - 01/2030 - - CITY OF SANTA MONICA (2) (4) 956,995 - 956,995 8.470% - - 11/2044 956,995 1,878,629 1,165,603 12,137 1,153,466 - 1,878,629
1227 9th Street
PACIFIC LIFE 109,479 6,656 102,823 6.070% 1,093 - 12/2029 - - CITY OF SANTA MONICA (4) 301,109 - 301,109 6.660% - - 11/2033 301,109 784,026 CITY OF SANTA MONICA (2) (4) 418,428 - 418,428 6.660% - - 11/2048 418,428 1,038,580 829,016 6,656 822,360 - 1,822,606
1314 18th Street
CITIBANK (G2, 1) 87,145 12,623 74,522 6.896% 1,381 - 07/2024 - - CITY OF SANTA MONICA (4) 163,962 - 163,962 9.010% - - 06/2022 163,962 2,215,781 251,107 12,623 238,484 - 2,215,781
1343 11th Street
BANK OF AMERICA 21,336 7,035 14,301 10.250% 742 - 04/2021 - - CITY OF SANTA MONICA (2) (4) 306,448 - 306,448 0.000% - - 04/2050 306,448 - 327,784 7,035 320,749 - -
1344 14th Street
PACIFIC LIFE 167,517 7,947 159,570 9.350% 1,940 - 05/2030 - - CITY OF SANTA MONICA (2) (4) 750,180 - 750,180 7.020% - - 05/2054 750,180 1,893,065 917,697 7,947 909,750 - 1,893,065
1427 Berkeley Street
CITIBANK (G2, 1) 106,597 15,440 91,157 6.896% 1,689 - 07/2024 - - CITY OF SANTA MONICA (4) 229,174 - 229,174 9.010% - - 01/2021 229,174 3,098,624 335,771 15,440 320,331 - 3,098,624
1438 25th Street
CITY OF SANTA MONICA (2) (4) 4,517,379 - 4,517,379 6.100% - - 10/2063 4,517,379 2,799,363 4,517,379 - 4,517,379 - 2,799,363
1513 Centinela
CITY OF SANTA MONICA (2) (4) 2,811,672 - 2,811,672 6.461% - - 12/2063 2,811,672 2,116,016 2,811,672 - 2,811,672 - 2,116,016
1514 14th Street
PACIFIC LIFE 460,751 18,430 442,321 9.680% 5,186 - 06/2031 - - CITY OF SANTA MONICA (2) (4) 2,977,308 - 2,977,308 7.070% - - 06/2054 2,977,308 7,689,715 3,438,059 18,430 3,419,629 - 7,689,715
1616 Ocean & 419 Ocean
CITY OF SANTA MONICA (2) (4) 120,939 - 120,939 3.840% - - 06/2071 120,939 6,850 120,939 - 120,939 - 6,850
1629 Michigan Street
CITIBANK (G1, 1) 76,255 11,344 64,911 4.440% 1,208 - 06/2024 - - CITY OF SANTA MONICA (4) 67,721 - 67,721 10.630% - - 12/2020 67,721 1,739,814 CITY OF SANTA MONICA (4) 22,893 - 22,893 10.630% - - 08/2021 22,893 548,220 166,869 11,344 155,525 - 2,288,034
1719 California
CITIBANK 246,411 10,664 235,747 7.750% 2,449 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 2,196,389 - 2,196,389 7.200% - - 06/2056 2,196,389 4,723,051 2,442,800 10,664 2,432,136 - 4,723,051
1808 17th Street
CITIBANK (G1, 1) 104,519 15,548 88,971 4.440% 1,656 - 06/2024 - - CITY OF SANTA MONICA (4) 131,485 - 131,485 10.630% - - 12/2020 131,485 3,403,205 CITY OF SANTA MONICA (4) 23,482 - 23,482 10.630% - - 12/2021 23,482 545,558 259,486 15,548 243,938 - 3,948,763
1820 14th Street
CITY OF SANTA MONICA 5,280,138 - 5,280,138 0.000% - - 12/2019 - - 5,280,138 - 5,280,138 - -
1827 19th St
CITIBANK (G1, 1) 103,939 15,462 88,477 4.440% 1,647 - 06/2024 - - CITY OF SANTA MONICA (4) 136,311 - 136,311 10.630% - - 12/2020 136,311 3,528,115 CITY OF SANTA MONICA (4) 35,750 - 35,750 10.630% - - 08/2021 35,750 859,923 276,000 15,462 260,538 - 4,388,038
1845 17th St
CITY OF SANTA MONICA (4) 110,000 - 110,000 12.000% - - 12/2019 110,000 2,726,294 CITY OF SANTA MONICA (4) 20,000 - 20,000 12.000% - - 12/2019 20,000 874,970 130,000 - 130,000 - 3,601,264
1917 17th St
CITY OF SANTA MONICA (4) 193,281 - 193,281 9.980% - - 12/2021 193,281 4,228,576 193,281 - 193,281 - 4,228,576
1925 20th St.

BANK OF AMERICA 341,900 13,759 328,141 9.150% 3,706 - 09/2031 - - CITY OF SANTA MONICA (2) (4) 2,931,378 - 2,931,378 7.700% - - 10/2054 2,931,378 7,834,837 3,273,278 13,759 3,259,519 - 7,834,837
1937 18th St
CITY OF SANTA MONICA (4) 128,313 - 128,313 10.000% - - 12/2021 128,313 419,731 128,313 - 128,313 - 419,731

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY (CONTINUED)
51 JUNE 30, 2018
Monthly Balloon Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY (CONTINUED)
1943 17th St
CITIBANK (G2, 1) 57,231 8,290 48,941 6.896% 995 - 07/2024 - - CITY OF SANTA MONICA (4) 35,000 35,000 - 10.000% - - 03/2017 35,000 109,584 CITY OF SANTA MONICA (4) 172,643 - 172,643 9.980% - - 12/2021 172,643 3,297,288 264,874 43,290 221,584 - 3,406,872
1944 20th Street
CITY OF SANTA MONICA (2) (4) 2,412,659 - 2,412,659 6.620% - - 06/2061 2,412,659 2,343,308 CITY OF SANTA MONICA (3) 393,273 5,700 387,573 0.000% - - 06/2061 393,273 - 2,805,932 5,700 2,800,232 - 2,343,308
1952 Frank St
CITY OF SANTA MONICA (2) (5) 25,000 - 25,000 8.120% - - 02/2025 - - CITY OF SANTA MONICA (2) (5) 232,996 - 232,996 3.000% - - 07/2032 - - 257,996 - 257,996 - -
1959 Cloverfield Blvd
CITIBANK (1) 617,877 91,916 525,961 4.440% 9,791 - 06/2024 - - CITY OF SANTA MONICA (4) 1,100,000 - 1,100,000 9.900% - - 11/2021 1,100,000 20,612,682 1,717,877 91,916 1,625,961 - 20,612,682
2009 Cloverfield Blvd
CITY OF SANTA MONICA (4) 39,800 39,800 - 10.000% - - 05/2018 39,800 119,880 CITY OF SANTA MONICA (4) 226,231 - 226,231 9.850% - - 05/2023 226,231 3,609,041 266,031 39,800 226,231 - 3,728,921
2017 20th Street
CITY OF SANTA MONICA (4) 126,000 126,000 - 12.000% - - 12/2018 126,000 6,220,153 126,000 126,000 - - 6,220,153
2028 14th Street
BANK OF AMERICA 327,425 13,196 314,229 7.910% 3,219 - 06/2032 - - CITY OF SANTA MONICA (2) (4) 236,375 - 236,375 8.210% - - 09/2055 236,375 118,195 CITY OF SANTA MONICA (3) 1,484,000 23,188 1,460,812 0.000% - - 09/2055 1,484,000 - 2,047,800 36,384 2,011,416 - 118,195
2029 20th Street
CITY OF SANTA MONICA (2) (4) 4,386,515 - 4,386,515 5.470% - - 12/2063 4,386,515 2,557,602 4,386,515 - 4,386,515 - 2,557,602
2112 Delaware Ave.

BANK OF AMERICA 445,938 18,047 427,891 7.020% 4,065 - 02/2033 - - CITY OF SANTA MONICA (2) (4) 597,539 - 597,539 6.870% - - 08/2055 597,539 885,063 CITY OF SANTA MONICA (2) (4) 774,693 - 774,693 8.040% - - 08/2055 774,693 2,026,842 CITY OF SANTA MONICA (3) 2,432,128 38,002 2,394,126 0.000% - - 08/2055 2,432,128 - 4,250,298 56,049 4,194,249 - 2,911,905
2120 4th Street
CITIBANK 362,235 16,989 345,246 7.750% 3,706 - 05/2031 - - CITY OF SANTA MONICA (2) (4) 1,936,121 - 1,936,121 7.900% - - 10/2055 1,936,121 5,078,863 CITY OF SANTA MONICA (3) 1,044,762 16,324 1,028,438 0.000% - - 10/2055 1,044,762 - 3,343,118 33,313 3,309,805 - 5,078,863
2121 Arizona St
CITY OF SANTA MONICA (4) 148,941 - 148,941 10.190% - - 05/2023 148,941 2,634,986 148,941 - 148,941 - 2,634,986
2122 Pico
CITY OF SANTA MONICA (3) 800,703 13,215 787,488 0.000% - - 12/2057 800,703 - 800,703 13,215 787,488 - -
2207 6th St
CITIBANK (1, OP12) 215,425 32,452 182,973 4.570% 3,469 - 05/2024 - - 215,425 32,452 182,973 - -
2211 4th Street
CITY OF SANTA MONICA (2) (4) 6,718,370 - 6,718,370 6.440% - - 09/2061 6,718,370 6,564,058 6,718,370 - 6,718,370 - 6,564,058
2243 28th Street
CITIBANK (1) 170,044 6,872 163,172 7.750% 1,651 - 08/2032 - - CITY OF SANTA MONICA (2)(4) 1,732,889 - 1,732,889 6.920% - - 08/2056 1,732,889 3,283,944 1,902,933 6,872 1,896,061 - 3,283,944
2260 28th Street
CITIBANK 210,036 9,090 200,946 7.750% 2,087 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,270,775 - 1,270,775 7.150% - - 01/2056 1,270,775 2,644,031 1,480,811 9,090 1,471,721 - 2,644,031
2302 5th St
CITIBANK (G2, 1) 100,137 14,504 85,633 6.896% 1,741 - 07/2024 - - CITY OF SANTA MONICA (4) 120,000 - 120,000 11.500% - - 12/2020 120,000 3,721,941 CITY OF SANTA MONICA (4) 52,500 - 52,500 10.000% - - 12/2035 52,500 167,151 272,637 14,504 258,133 - 3,889,092
2309 Oak Street
CITY OF SANTA MONICA (2) (4) 3,360,129 - 3,360,129 4.840% - - 05/2066 3,360,129 893,815 3,360,129 - 3,360,129 - 893,815
2320 34th Street
CITY OF SANTA MONICA (2) (4) 1,837,788 - 1,837,788 6.260% - - 08/2063 1,837,788 1,344,763 1,837,788 - 1,837,788 - 1,344,763
2404 Kansas Ave
CITIBANK (1) 194,665 6,787 187,878 7.400% 1,747 - 03/2034 - - CITY OF SANTA MONICA (2) (4) 1,428,301 - 1,428,301 6.540% - - 07/2057 1,428,301 2,191,846 1,622,966 6,787 1,616,179 - 2,191,846
2418 5th Street
CITY OF SANTA MONICA (2) (4) 1,908,671 - 1,908,671 6.260% - - 08/2063 1,908,671 1,427,279 1,908,671 - 1,908,671 - 1,427,279
2428 34th Street
CITY OF SANTA MONICA (2) (4) 717,408 - 717,408 6.960% - - 04/2056 717,408 1,537,853 CITY OF SANTA MONICA (2) (4) 825,439 - 825,439 6.960% - - 04/2056 825,439 1,774,018 1,542,847 - 1,542,847 - 3,311,871
2449 Centinela Ave
CITIBANK 275,705 11,932 263,773 7.750% 2,740 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 2,166,715 - 2,166,715 6.890% - - 01/2056 2,166,715 4,520,733 2,442,420 11,932 2,430,488 - 4,520,733
52 JUNE 30, 2018
Monthly Balloon Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY (CONTINUED)
2520 Euclid
CITY OF SANTA MONICA (2)(4) 5,412,267 - 5,412,267 3.650% - - 06/2070 5,412,267 742,006 5,412,267 - 5,412,267 - 742,006
2525 Kansas Ave
CITY OF SANTA MONICA (4) 231,430 231,430 - 12.000% - - 06/2019 231,430 10,736,153 231,430 231,430 - - 10,736,153
2608 28th Street
CITIBANK 215,784 9,338 206,446 7.750% 2,145 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,273,224 - 1,273,224 7.150% - - 01/2056 1,273,224 2,791,505 1,489,008 9,338 1,479,670 - 2,791,505
2625 Kansas Ave
CITY OF SANTA MONICA (4) 189,070 - 189,070 12.000% - - 07/2019 189,070 8,711,084 189,070 - 189,070 - 8,711,084
2900 4th Street
CITY OF SANTA MONICA (2) (4) 5,282,036 - 5,282,036 6.440% - - 09/2061 5,282,036 5,431,248 CITY OF SANTA MONICA (3) 437,500 6,250 431,250 0.000% - - 09/2061 437,500 - 5,719,536 6,250 5,713,286 - 5,431,248
2907 3rd St
CITIBANK 110,205 4,768 105,437 7.750% 1,095 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,507,832 - 1,507,832 6.960% - - 03/2056 1,507,832 3,059,885 1,618,037 4,768 1,613,269 - 3,059,885
3966 Grand View
CENTURY HOUSING 5,600,000 5,600,000 - 4.500% - - 02/2019 - - 5,600,000 5,600,000 - - -
$ 137,981,450 $ 7,272,535 $ 130,708,915 $ 69,000 $ 110,251,558 $ 230,457,591 Footnotes:

Note (1) Variable Interest Rate
Note (2) Residual Receipts Loan
Note (3) Eligible for Grant Forgiveness
Note (4) Principal and Accrued Interest forgiven at Maturity Note (5) Principal and Accrued Interest due at Maturity Note (6) Principal due at Maturity and Accrued Interest forgiven.

Note (G1) Property is part of a blanket trust deed loan encumbering properties 724, 1629, 1808, and 1827 Note (G2) Property is part of a blanket trust deed loan encumbering properties 1314, 1427, 1943, and 2302 Note (OP12) Property is part of a blanket trust deed loan encumbering properties 2207 and 2402 53 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY SUBSIDIARY JUNE 30, 2018
708 Pico 815 Ashland Fifth & Wilshire SSC 16th Street Garcia Cloverfield Assets
Cash and investments 76,338 $ 44,463 $ 137,636 $ 65,962 $ 105,573 $ 83,138 $ 32,218 $Restricted cash - reserves 85,204 881,953 145,862 445,346 347,811 351,735 276,637Restricted cash - other 16,106 56,012 25,035 35,596 18,486 30,147 25,010Accounts receivable, net 136 605 3,731 4,665 395 72 1,814Prepaid expenses and other current assets - 10,612 - 5,613 7,926 - - Land 545,349 2,591,410 1,323,550 - 669,424 1,181,920 984,000Buildings and improvements 1,374,014 3,373,358 2,163,659 2,952,720 1,594,028 3,887,108 1,824,325Furniture, fixtures and equipment 40,278 6,688 34,451 30,932 1,141 - 1,600 1,959,641 5,971,456 3,521,660 2,983,652 2,264,593 5,069,028 2,809,925 Less: Accumulated depreciation (118,731) (681,218) (383,540) (610,826) (292,611) (1,303,439) (1,444,522) Property and equipment, net 1,840,910 5,290,238 3,138,120 2,372,826 1,971,982 3,765,589 1,365,403 Investments in Partnerships - - - - - - - Due (to) from Subsidiaries and Properties (53,464) (33,892) (116,303) (43,569) (17,849) (157,621) (799)Other assets - - - 178,102 10,000 - - Total assets 1,965,230 $ 6,249,991 $ 3,334,081 $ 3,064,541 $ 2,444,324 $ 4,073,060 $ 1,700,283 $ Liabilities and net assets (deficit)
Accounts payable and accrued expenses 9,550 $ 40,901 $ 68,607 $ 13,021 $ 24,071 $ 42,070 $ 8,121 $Accrued and deferred interest payable - 1,484,943 427,895 1,464,728 2,540 2,373,613 198,542Tenant security deposits 15,170 37,564 22,265 24,602 16,957 20,869 17,973Long-term debt 1,959,026 4,752,126 3,193,870 2,960,913 2,483,296 3,358,988 1,545,987Less: unamortized debt issuance costs, net (16,364) - (15,528) - (25,548) (84) (508) Total liabilities 1,967,382 6,315,534 3,697,109 4,463,264 2,501,316 5,795,456 1,770,115 Net assets (deficit) (2,152) (65,543) (363,028) (1,398,723) (56,992) (1,722,396) (69,832) Total liabilities and net assets (deficit) 1,965,230 $ 6,249,991 $ 3,334,081 $ 3,064,541 $ 2,444,324 $ 4,073,060 $ 1,700,283 $ 54 COMMUNITY CORPORATION OF SANTA MONICA AN(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) Assets
Cash and investmentsRestricted cash - reservesRestricted cash - otherAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentLess: Accumulated depreciation Property and equipment, net
Investments in PartnershipsDue (to) from Subsidiaries and PropertiesOther assets Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableTenant security depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY SUBSIDIARY (CONTINUED) JUNE 30, 2018
2407 4th Virginia CCSM Arroyo CCSM ESCO scCC CCSM Village TOTAL 106,907 $ 68,192 $ (3,466) $ 8,155 $ 9,803 $ 5,100 $ 740,019 $419,900 44,004 - - - - 2,998,452 15,032 7,475 - - - - 228,899
1,942 1,069 - - - - 14,429 - - - - - - 24,151
82,494 341,000 - - - - 7,719,147
232,872 2,199,890 - 194,064 - - 19,796,038
12,679 2,628 - - - - 130,397
328,045 2,543,518 - 194,064 - - 27,645,582
(21,838) (638,020) - (32,344) - (5,527,089)
306,207 1,905,498 - 161,720 - - 22,118,493
1 - 101 - (735) - (633)
(636,178) (457) - - (28,295) (800) (1,089,227) - - - - - - 188,102 213,811 $ 2,025,781 $ (3,365) $ 169,875 $ (19,227) $ 4,300 $ 25,222,685 $ 14,400 $ 2,281 $ - $ - $ - $ - $ 223,022 $ - 973,141 - - - - 6,925,40211,475 6,281 - - - - 173,156 - 1,268,643 - 144,350 - - 21,667,199 - - - (13,600) - - (71,632) 25,875 2,250,346 - 130,750 - - 28,917,147
187,936 (224,565) (3,365) 39,125 (19,227) 4,300 (3,694,462)213,811 $ 2,025,781 $ (3,365) $ 169,875 $ (19,227) $ 4,300 $ 25,222,685 $ 55 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY SUBSIDIARY JUNE 30, 2018
708 Pico 815 Ashland Fifth & Wilshire SSC 16th Street Garcia Cloverfield Revenues:

Rental fees, net of vacancy 202,913 $ 504,812 $ 314,303 $ 296,717 $ 240,337 $ 313,319 $ 241,387 $ Property management fees - - - - - - - Commercial rental income, net of concessions - - - 50,046 - - - Interest 80 525 146 326 587 226 174 Other - - - - 12 - - Total revenues 202,993 505,337 314,449 347,089 240,936 313,545 241,561 Expenses:

Salaries 2,067 2,599 2,689 2,852 1,638 3,645 1,815Payroll taxes 158 199 206 218 125 279 139Employee Benefits - - - 704 - - - Legal and professional 2,659 3,778 3,196 2,821 1,680 3,107 3,196Loss on disposal of buildings and improvements - - - 20,267 521 - - Consultants 690 3,438 625 - - - 201Office and administration 3,895 21,270 6,237 33,376 7,727 4,143 4,819Insurance 5,454 12,481 9,374 7,747 5,048 6,936 5,712Maintenance and repairs 44,332 132,964 83,123 125,585 34,566 69,541 62,152Maintenance fees interfund 13,589 44,967 27,133 31,931 11,241 30,534 13,404Property management fees interfund 34,754 53,250 47,027 56,898 32,897 25,200 26,880Bookkeeping fees interfund 3,936 5,130 6,298 8,659 3,346 3,420 3,648Resident service fees interfund 1,020 11,767 1,632 2,244 867 1,530 1,632Gardening and grounds 7,076 18,858 16,750 - 3,600 14,892 14,660Pest control 1,179 3,503 1,919 1,418 1,782 6,686 1,345Utilities 21,144 57,601 40,390 38,201 19,541 38,768 30,227Property taxes 3,893 14,800 13,098 2,312 3,776 15,326 7,838Workers compensation 154 192 203 213 117 269 133 Total expenses before interest
and depreciation 146,000 386,797 259,900 335,446 128,472 224,276 177,801 Net operating income 56,993 118,540 54,549 11,643 112,464 89,269 63,760 Interest 11,585 96,241 32,097 97,691 28,035 104,662 16,166Depreciation 40,859 109,761 92,008 98,790 65,221 134,698 50,869 Total interest and depreciation 52,444 206,002 124,105 196,481 93,256 239,360 67,035 Changes in net assets (deficit)
Unrestricted 4,549 (87,462) (69,556) (184,838) 19,208 (150,091) (3,275) Net assets (deficit), beginning of year (6,701) 21,919 (293,472) (1,213,885) 7,631 (1,572,305) (66,557) Intercompany transfer - - - - (83,831) - - Net assets (deficit), end of year (2,152) $ (65,543) $ (363,028) $ (1,398,723) $ (56,992) $ (1,722,396) $ (69,832) $ 56 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIAR(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) Revenues:

Rental fees, net of vacancy
Property management fees
Commercial rental income, net of concessionsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee BenefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesWorkers compensation Total expenses before interest
and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)
Unrestricted
Net assets (deficit), beginning of year
Intercompany transfer
Net assets (deficit), end of year

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY SUBSIDIARY (CONTINUED) JUNE 30, 2018
2407 4th Virginia CCSM Arroyo CCSM ESCO scCC CCSM Village TOTAL 190,001 $ 108,081 $ - $ - $ - $ - $ 2,411,870 $ - - - - - 4,370 4,370 - - - - - - 50,046 253 82 - - - - 2,399 - - - 16,523 - - 16,535
190,254 108,163 - 16,523 - 4,370 2,485,220
466 790 - - - - 18,561
36 60 - - - - 1,420 - - - - - - 704
2,312 3,172 530 530 516 845 28,342 - 1,174 - - - - 21,962 - 288 - - - - 5,2425,139 3,579 820 1,598 - 1,159 93,7622,340 2,354 - - - - 57,446 29,095 24,155 - - - - 605,513
8,347 8,375 - - - - 189,521
24,914 9,792 - - - - 311,612
1,967 1,368 - - - - 37,772
510 - - - - - 21,202
10,407 5,240 - - - - 91,483
1,195 516 - - - - 19,543
11,347 19,196 - - - - 276,415
6,732 3,755 - - - - 71,530
34 57 - - - - 1,372
104,841 83,871 1,350 2,128 516 2,004 1,853,402
85,413 24,292 (1,350) 14,395 (516) 2,366 631,818 - 38,059 - - - - 424,536 9,556 62,266 - 12,938 - - 676,966
9,556 100,325 - 12,938 - - 1,101,502
75,857 (76,033) (1,350) 1,457 (516) 2,366 (469,684)
112,079 (650,843) (2,015) 36,870 (18,711) 1,934 (3,644,056) - 502,311 - 798 - - 419,278187,936 $ (224,565) $ (3,365) $ 39,125 $ (19,227) $ 4,300 $ (3,694,462) $ 57 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

MORTGAGE SCHEDULE BY SUBSIDIARY
JUNE 30, 2018
Monthly Balloon Forgiven Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest 708 Pico L.P.

Bank of America $ 122,746 $ 5,396 $ 117,350 8.23% $ 1,275 $ - 07/2031 $ - $ - Bank of America - AHP (1) 81,000 - 81,000 0.00% - - 06/2031 - - City of Santa Monica (1) (3) 660,321 - 660,321 0.00% - - 10/2053 - - City of Santa Monica (1) (3) 498,315 - 498,315 0.00% - - 01/2052 - - City of Santa Monica (1) (3) 596,644 - 596,644 0.00% - - 03/2052 - - Total 708 Pico L.P. 1,959,026 5,396 1,953,630 1,275 - - - 815 Ashland L.P.

Dept. of Hsg & Comm Develop (1) (3) 2,627,110 - 2,627,110 3.00% - - 10/2050 - - City of Santa Monica (2) (3) 2,125,016 - 2,125,016 3.00% - - 08/2049 2,125,016 1,186,147 Total 815 Ashland L.P. 4,752,126 - 4,752,126 - - 2,125,016 1,186,147 Fifth & Wilshire Apts.

Citibank 147,262 10,627 136,635 6.18% 1,619 - 09/2028 - - Citibank - AHP (1) 111,608 - 111,608 0.00% - - 10/2027 - - City of Santa Monica (2) (3) 975,000 - 975,000 3.00% - - 06/2051 975,000 643,821 City of Santa Monica (1) (3) 1,960,000 - 1,960,000 1.00% - - 01/2051 - - Total Fifth & Wilshire Apts. 3,193,870 10,627 3,183,243 1,619 - 975,000 643,821 Second Street Center
Citibank 384,413 48,437 335,976 4.98% 5,540 - 04/2025 - - Citibank - AHP (1) 411,000 - 411,000 3.00% - - 03/2025 - - City of Santa Monica (1) (3) 2,165,500 - 2,165,500 3.00% - - 06/2043 - - Total Second Street Center 2,960,913 48,437 2,912,476 5,540 - - - 16th Street Apartments
Bank of America 354,043 18,696 335,347 7.20% 3,632 - 10/2030 - - City of Santa Monica (1) (3) 2,129,253 - 2,129,253 0.00% - - 04/2043 - - Total 16th Street Apartments 2,483,296 18,696 2,464,600 3,632 - - - Garcia Apartments Partnership
Citibank 253,585 39,635 213,950 5.07% 4,298 - 02/2024 - - AHP Loan / Cal Fed Bank (1) 120,000 - 120,000 1.00% - - 10/2021 - - Dept. of Hsg & Comm Develop (1) (3) 1,417,761 - 1,417,761 3.00% - - 06/2043 - - City of Santa Monica (1) (3) 1,286,642 - 1,286,642 3.00% - - 10/2031 - - City of Santa Monica (1) (3) 281,000 - 281,000 3.00% - - 10/2031 - - Total Garcia Apartments 3,358,988 39,635 3,319,353 4,298 - - - Cloverfield Community Partnership
Citibank 82,563 28,071 54,492 4.03% 2,574 - 04/2021 - - Dept. of Hsg & Comm Develop (1) (3) 201,824 - 201,824 3.00% - - 01/2021 - - City of Santa Monica (1) 200,000 - 200,000 3.00% - - 12/2019 - - City of Santa Monica (2) 841,600 - 841,600 10.44% - - 12/2023 841,600 14,968,436 City of Santa Monica (2) 220,000 - 220,000 10.34% - - 04/2025 220,000 3,309,894 Total Cloverfield Community 1,545,987 28,071 1,517,916 2,574 - 1,061,600 18,278,330 Virginia Village Partnership
Dept. of Hsg & Comm Develop (1) (3) 415,568 - 415,568 3.00% - - 05/2048 - - City of Santa Monica (1) (3) 853,075 - 853,075 3.00% - - 06/2032 - - Total Virginia Village 1,268,643 - 1,268,643 - - -

CCSM ESCO
Mercy Loan Fund 144,350 - 144,350 5.00% - - 05/2025 - - Total CCSM ESCO 144,350 - 144,350 - - -
$ 21,667,199 $ 150,862 $ 21,516,337 $ - $ 4,161,616 $ 20,108,298 Footnotes:

Note (1) Principal and Accrued Interest due at Maturity Note (2) Principal and Accrued Interest forgiven at Maturity Note (3) Residual Receipts Loan

SUPPLEMENTARY INFORMATION - HCD
58 2018 2017
Rent revenue
5120 Rent revenue - gross potential $ 253,738 $ 244,882 5121 Tenant assistance payments 40,923 47,365
5140 Rent revenue - stores and commercial - -
5170 Rent revenue - garage and parking - -
5180 Flexible subsidy revenue - -
5190 Miscellaneous rent revenue - -
5100T Total rent revenue 294,661 292,247
Vacancies
5220 Apartments 4,548 9,159
5240 Stores and commercial - -
5250 Rental concessions - -
5270 Garage and parking spaces - -
5290 Miscellaneous - -
5200T Total vacancies 4,548 9,159
5152N Net rental revenue (rental revenue less vacancies) 290,113 283,088 Financial revenue
5410 Financial revenue - project operations - 2
5430 Revenue from investments - residual receipts - -
5440 Revenue from investments - reserve for replacements 40 58 5490 Revenue from investments - miscellaneous 57 63
5400T Total financial revenue 97 123
Other revenue
5910 Laundry and vending revenue 1,612 1,735
5920 Tenant charges 660 555
5990 Miscellaneous revenue 864 821
5900T Total other revenue 3,136 3,111
5000T Total revenue $ 293,346 $ 286,322

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEARS ENDED JUNE 30, 2018 AND 2017
59 2018 2017
Administrative expenses
6203 Conventions and meetings $ 6 $ 79
6204 Management consultants 1,801 1,684
6210 Advertising and marketing 1,548 2,114
6250 Other renting expenses 27 571
6310 Office salaries 20,728 22,834
6311 Office expenses 8,721 9,451
6312 Office or model apartment rent - -
6320 Management fee 33,264 33,264
6330 Manager or superintendent salaries 4,919 4,641
6331 Administrative rent free unit - -
6340 Legal expense - property - -
6350 Audit expense 1,982 1,914
6351 Bookkeeping fees/accounting services 5,016 5,016
6370 Bad debts 550 2,524
6390 Miscellaneous administrative expenses 9,000 9,020
6390-010 Description: Resident services fee
6390-020 Amount: $ 9,000
6263T Total administrative expenses 87,562 93,112
Utilities expenses
6450 Electricity 21,754 20,001
6451 Water 3,962 5,879
6452 Gas 6,847 8,920
6453 Sewer 5,102 7,498
6400T Total utilities expenses 37,665 42,298
Operating and maintenance expenses
6510 Payroll 18,102 24,449
6515 Supplies 13,818 14,960
6520 Contracts 72,526 101,349
6521 Operating and maintenance rent free unit - -
6525 Garbage and trash removal 5,484 5,759
6530 Security payroll/contracts 540 917
6531 Security rent free unit - -
6546 Heating/cooling repairs and maintenance - -
6548 Snow removal - -
6570 Vehicle and maintenance equipment operation and repairs - - 6580 Lease expense - -
6590 Miscellaneous operating and maintenance expenses - - 6500T Total operating and maintenance expenses $ 110,470 $ 147,434

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEARS ENDED JUNE 30, 2018 AND 2017
60 2018 2017
Taxes and insurance
6710 Real estate taxes $ 12,230 $ 11,333
6711 Payroll taxes (Property's share) 1,849 2,066
6720 Property and liability insurance (hazard) 10,194 10,303 6721 Fidelity bond insurance - -
6722 Workers' compensation 1,112 1,005
6723 Health insurance and other benefits 1,901 1,935
6790 Miscellaneous taxes, licenses, permits and insurance - - 6700T Total taxes and insurance 27,286 26,642
Total operating expenses 262,983 309,486
Financial expenses
6820 Interest on mortgage (or bonds) payable - -
6825 Interest on other mortgages - -
6830 Interest on notes payable (long term) 48,862 48,862 6840 Interest on notes payable (short term) - -
6850 Mortgage insurance premium/service charge - -
6890 Miscellaneous financial expenses - -
6800T Total financial expenses 48,862 48,862
6990 Supportive services (ss) costs - -
6900T Total supportive services costs - -
6000 Total cost of operations before depreciation 311,845 358,348 5060T Operating profit (loss) before depreciation (18,499) (72,026) Depreciation and amortization expenses
6600 Depreciation expense 117,384 115,197
6610 Amortization expense 76 76
5060N Operating profit (loss) (135,959) (187,299)
Net entity expenses
7190 Other expenses - -
7100T Total net entity expenses - -
3250 Change in total net assets from operations (net loss) $ (135,959) $ (187,299)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEARS ENDED JUNE 30, 2018 AND 2017
61 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Organization
Cash on hand and in banks
Unrestricted accounts
Cash - operating, Union Bank $ 50,350
Restricted accounts
Resident security deposits - Union Bank $ 21,434
Reserve for replacements - Union Bank 53,019
Operating reserve - Union Bank 49,096
$ 123,549

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
Resident security deposits are maintained in a separate account, and interest earned on these deposits is credited to a liability account to be refunded or applied for the benefit of residents.

Interest earned during the year ended June 30, 2018 totaled $11. 502 Colorado is wholly owned by Community Corporation of Santa Monica. 502 Colorado is a 44 unit apartment complex located in Santa Monica, California. The property was placed in service on June 4, 2002. The property was financed, in part, by a mortgage loan provided by the Department of Housing and Community Development ("HCD").

The Corporation entered into a Multifamily Housing Program Regulatory Agreement with HCD, which governs the operation of the property and restricts the persons eligible to reside at the property for a period of fifty five years. Cash distributions are limited by agreements between the property and HCD.
62 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Mortgagee impound accounts
502 Colorado does not have any mortgage impound accounts.

Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2017 $ 81,900
Required deposits 18,000
Interest earned 40
Withdrawals - capitalized (46,921)
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2018 $ 53,019
Operating
Reserve
Balance, July 1, 2017 $ 106,978
Required deposits -
Interest earned 47
Withdrawals - capitalized (57,929)
Withdrawals - expensed -
Balance, June 30, 2018 $ 49,096

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
63 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Accounts receivable - aging
Accounts receivable Accounts receivable
(within 30 days) (> 30 days) Total
297 1,130 1,427
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and
Land Buildings Equipment Total
Balance, July 1, 2017 $ - $ 5,575,089 $ - $ 5,575,089
Additions - 24,773 - 24,773
Balance, June 30, 2018 $ - $ 5,599,862 $ - $ 5,599,862
Deferred costs
Following are the details of deferred costs:

Permanent
Lender Fee
Balance, July 1, 2017 $ 3,128
Additions -
Accumulated amortization (76)
Balance, June 30, 2018 $ 3,052
Accounts payable
Accounts payable - operations $ 2,578
Accrued expenses and prepaid rent $ 1,773
Accounts payable Accounts payable
(within 30 days) (> 30 days) Total
2,578 - 2,578
Acconts payable are payable to vendors and are being paid on a current basis. Details as follows:

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
Management periodically reviews resident receivables and uses an allowance for doubtful accounts to recognize bad debts. Accounts receivable above is shown net of the allowance for doubtful accounts, which totaled $443 at June 30, 2018.
64 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Gross potential rents
Tenant rental payments $ 249,190
Housing assistance payments 40,923
Employee quarters shown as an expense -
Vacancy loss and concessions 4,548
Total gross potential rents $ 294,661
Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee Total
Balance, July 1, 2017 $ - $ - $ - $ -
Expense 5,016 9,000 18,102 32,118
Payment (5,016) (9,000) (18,102) (32,118)
Balance, June 30, 2018 $ - $ - $ - $ -
Supportive services
Resident services fee $ 9,000
Mortgage and Notes Payable
Interest
Expense
City of Santa Monica -
MHP/Dept. of Housing 48,862
AHP/Bank of America -
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered.

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
A property management fee of $33,264 was incurred for the year ended June 30, 2018 for the property management services provided by Community Corporation of Santa Monica. 65 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 293,346
Interest earned on restricted reserve accounts (97)
Adjusted operating income 293,249
Operating expenses - excludes financial expenses (262,983) Adjusted net income 30,266
Other activity
Mandatory debt service -
Deposits into reserve for replacements account (18,000) Deposits into other restricted accounts per regulatory agreement - Capital improvements (24,773)
Withdrawals from reserve for replacements account included in property and equipment 24,773 **
Withdrawals from reserve for replacements account included in operating expenses and prior year -
Total other activity (18,000)
Operating cash flow/surplus cash $ 12,266
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Funds to be used for elevator remodel in process (12,266) CPI indexed distribution -
Total cash available for distributions (Net Cash Flow) $ - Distributions and loan payments
Maximum Sponsor Distribution ($22,572 plus CPI split
50% to City of Santa Monica and 50% to Sponsor) $ -
30% to be distributed to owner -
70% split and paid as follows per regulatory agreement
71% to City of Santa Monica -
29% to HCD MHP Loan -
Total distributions to lenders -
Total distributions to owners and lenders $ -

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEARS ENDED JUNE 30, 2018 AND 2017
**In the current year there is a timing difference of $22,148 withdrawal from reserve for replacements and $57,929 withdrawal from operating reserve related to elevator remodel in process as these invoices have not been incurred or capitalized as of June 30, 2018. Of the $46,921 withdrawal from reserve for replacments only $19,823 has been incurred and capitalized.

All remaining amounts will be included on surplus cash calculation for the year ended June 30, 2019.
66 Rent revenue
5120 Rent revenue - gross potential $ 452,672
5121 Tenant assistance payments 44,213
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 496,885
Vacancies
5220 Apartments 1,724
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies 1,724
5152N Net rental revenue (rental revenue less vacancies) 495,161 Financial revenue
5410 Financial revenue - project operations 64
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 216 5490 Revenue from investments - miscellaneous 245
5400T Total financial revenue 525
Other revenue
5910 Laundry and vending revenue 8,611
5920 Tenant charges 1,040
5990 Miscellaneous revenue -
5900T Total other revenue 9,651
5000T Total revenue $ 505,337

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2018
67 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants 3,438
6210 Advertising and marketing -
6250 Other renting expenses 1,658
6310 Office salaries -
6311 Office expenses 18,571
6312 Office or model apartment rent -
6320 Management fee 37,800
6330 Manager or superintendent salaries 2,599
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 3,778
6351 Bookkeeping fees/accounting services 5,130
6370 Bad debts 240
6390 Miscellaneous administrative expenses 11,767
6390-010 Description: Social services fee
6390-020 Amount: $ 11,767
6263T Total administrative expenses 84,981
Utilities expenses
6450 Electricity 10,301
6451 Water 16,410
6452 Gas 1,337
6453 Sewer 13,941
6400T Total utilities expenses 41,989
Operating and maintenance expenses
6510 Payroll 44,967
6515 Supplies 53,883
6520 Contracts 100,904
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 15,611
6530 Security payroll/contracts 540
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses - 6500T Total operating and maintenance expenses $ 215,905

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2018
68 Taxes and insurance
6710 Real estate taxes $ 14,800
6711 Payroll taxes (Property's share) 198
6720 Property and liability insurance (hazard) 12,482
6721 Fidelity bond insurance -
6722 Workers' compensation 192
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 28,472
Total operating expenses 371,347
Financial expenses
6820 Interest on mortgage (or bonds) payable -
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 96,241
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
6800T Total financial expenses 96,241
6990 Supportive services (ss) costs -
6900T Total supportive services costs -
6000 Total cost of operations before depreciation 467,588 5060T Operating profit (loss) before depreciation 37,749 Depreciation and amortization expenses
6600 Depreciation expense 109,761
6610 Amortization expense -
5060N Operating profit (loss) (72,012)
Net entity expenses
7190 Other expenses 15,450
7190-010 Description: General Partner fee
7190-020 Amount: $ 15,450
7100T Total net entity expenses 15,450
3250 Change in total net assets from operations (net loss) $ (87,462)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2018
69 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2017 $ 417,019
Required deposits 26,004
Other deposits 46,612
Interest earned 216
Withdrawals - capitalized (53,315)
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2018 $ 436,536
Operating
Reserve
Balance, July 1, 2017 $ 430,073
Required deposits 13,279
Other deposits 1,848
Interest earned 217
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2018 $ 445,417

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
70 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and
Land Buildings Equipment Total
Balance, July 1, 2017 $ 2,591,410 $ 3,320,043 $ 6,688 $ 5,918,141 Additions - 53,315 - 53,315
Balance, June 30, 2018 $ 2,591,410 $ 3,373,358 $ 6,688 $ 5,971,456 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee
General
Partner Fee Total
Balance, July 1, 2017 $ - $ - $ - $ 15,000 $ -
Expense 5,130 11,767 - 15,450 32,347
Payment (5,130) (11,767) - - (16,897)
Balance, June 30, 2018 $ - $ - $ - $ 30,450 $ 15,450
Supportive services
Resident services fee $ 11,767

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered. The General Partner is entitled to a General Partner fee and only paid if cash flow permits.

A property management fee of $37,800 was incurred for the year ended June 30, 2018 for the property management services provided by Community Corporation of Santa Monica. 71 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 505,337
Interest earned on restricted reserve accounts (461)
Adjusted operating income 504,876
Operating expenses - excludes financial expenses (371,347) Adjusted net income 133,529
Other activity
Mandatory debt service -
Deposits into reserve for replacements account (72,616) Deposits into other restricted accounts per regulatory agreement (15,127) Capital improvements (53,315)
Withdrawals from reserve for replacements account included in property and equipment 53,315
Withdrawals from reserve for replacements account included in operating expenses -
Total other activity (87,743)
Operating cash flow/surplus cash $ 45,786
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ 45,786 Distributions and loan payments
Maximum Sponsor Distribution ($-0-) $ -
Paid as follows per regulatory agreement
50% to City of Santa Monica 22,893
50% to RHCP Loan 22,893
Total distributions to lenders 45,786
Total distributions to owners and lenders $ 45,786

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
72 Rent revenue
5120 Rent revenue - gross potential $ 255,108
5121 Tenant assistance payments 52,592
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 307,700
Vacancies
5220 Apartments -
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies -
5152N Net rental revenue (rental revenue less vacancies) 307,700 Financial revenue
5410 Financial revenue - project operations 44
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 65 5490 Revenue from investments - miscellaneous 117
5400T Total financial revenue 226
Other revenue
5910 Laundry and vending revenue 5,424
5920 Tenant charges 195
5990 Miscellaneous revenue -
5900T Total other revenue 5,619
5000T Total revenue $ 313,545

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2018
73 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants -
6210 Advertising and marketing -
6250 Other renting expenses -
6310 Office salaries -
6311 Office expenses 3,319
6312 Office or model apartment rent -
6320 Management fee 25,200
6330 Manager or superintendent salaries 3,645
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 3,106
6351 Bookkeeping fees/accounting services 3,420
6370 Bad debts 22
6390 Miscellaneous administrative expenses 1,530
6263T Total administrative expenses 40,242
Utilities expenses
6450 Electricity 6,038
6451 Water 9,630
6452 Gas 1,364
6453 Sewer 9,404
6400T Total utilities expenses 26,436
Operating and maintenance expenses
6510 Payroll 30,534
6515 Supplies 17,462
6520 Contracts 72,977
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 12,332
6530 Security payroll/contracts 684
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses - 6500T Total operating and maintenance expenses $ 133,989

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2018
74 Taxes and insurance
6710 Real estate taxes $ 15,326
6711 Payroll taxes (Property's share) 278
6720 Property and liability insurance (hazard) 6,936
6721 Fidelity bond insurance -
6722 Workers' compensation 269
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 23,609
Total operating expenses 224,276
Financial expenses
6820 Interest on mortgage (or bonds) payable 13,899
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 90,763
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
-
6800T Total financial expenses 104,662
6990 Supportive services (ss) costs -
6900T Total supportive services costs -
6000 Total cost of operations before depreciation 328,938 5060T Operating profit (loss) before depreciation (15,393) Depreciation and amortization expenses
6600 Depreciation expense 134,698
6610 Amortization expense -
5060N Operating profit (loss) (150,091)
Net entity expenses
7190 Other expenses -
7100T Total net entity expenses -
3250 Change in total net assets from operations (net loss) $ (150,091)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2018
75 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2017 $ 123,404
Required deposits 16,323
Other deposits -
Interest earned 65
Withdrawals - capitalized -
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2018 $ 139,792
Operating
Reserve
Balance, July 1, 2017 $ 177,769
Required deposits 6,172
Other deposits 3,219
Interest earned 90
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2018 $ 187,250
Partnership
Account
Balance, July 1, 2017 $ 24,681
Required deposits -
Interest earned 12
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2018 $ 24,693

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
76 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture
Land Buildings Equipment Total
Balance, July 1, 2017 $ 1,181,920 $ 3,852,008 $ - $ 5,033,928 Additions - 35,100 - 35,100
Balance, June 30, 2018 $ 1,181,920 $ 3,887,108 $ - $ 5,069,028 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee
General
Partner fee Total
Balance, July 1,
2017 $ - $ - $ - $ 153,385 $ -
Expense 3,420 1,530 30,534 - 35,484
Payment (3,420) (1,530) (30,534) (35,484)
Balance, June 30,
2018 $ - $ - $ - $ 153,385 $ -
Supportive services
Resident services fee $ 1,530

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

A property management fee of $25,200 was incurred for the year ended June 30, 2018 for the property management services provided by Community Corporation of Santa Monica. 77 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 313,545
Interest earned on restricted reserve accounts (182)
Adjusted operating income 313,363
Operating expenses - excludes financial expenses (224,276) Adjusted net income 89,087
Other activity
Mandatory debt service (51,580)
Plus disposal of fixed asset included in operating expenses above - Deposits into reserve for replacements account (16,323) Deposits into other restricted accounts per regulatory agreement (9,391) Capital improvements (35,100)
Withdrawals from reserve for replacements account included in property and equipment -
Withdrawals from reserve for replacements account included in operating expenses -
Total other activity (112,394)
Operating cash flow/surplus cash $ (23,307)
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ - Distributions and loan payments
Maximum Sponsor Distribution ($62,739) $ -
Paid as follows per regulatory agreement
100% to HCD loan -
Total distributions to lenders -
Total distributions to owners and lenders $ -

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
78 Rent revenue
5120 Rent revenue - gross potential $ 81,341
5121 Tenant assistance payments 26,650
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 107,991
Vacancies
5220 Apartments -
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies -
5152N Net rental revenue (rental revenue less vacancies) 107,991 Financial revenue
5410 Financial revenue - project operations 48
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 17 5490 Revenue from investments - miscellaneous 17
5400T Total financial revenue 82
Other revenue
5910 Laundry and vending revenue -
5920 Tenant charges 90
5990 Miscellaneous revenue -
5900T Total other revenue 90
5000T Total revenue $ 108,163

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2018
79 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants -
6210 Advertising and marketing 287
6250 Other renting expenses -
6310 Office salaries -
6311 Office expenses 2,780
6312 Office or model apartment rent -
6320 Management fee 9,792
6330 Manager or superintendent salaries 790
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 3,172
6351 Bookkeeping fees/accounting services 1,368
6370 Bad debts -
6390 Miscellaneous administrative expenses -
6263T Total administrative expenses 18,189
Utilities expenses
6450 Electricity 2,547
6451 Water 5,913
6452 Gas -
6453 Sewer 3,601
6400T Total utilities expenses 12,061
Operating and maintenance expenses
6510 Payroll 8,374
6515 Supplies 7,034
6520 Contracts 22,289
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 7,136
6530 Security payroll/contracts 588
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses 1,174 6590-010 Description: Disposal of assets
6590-020 Amount: $ 1,174
6500T Total operating and maintenance expenses $ 46,595

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2018
80 Taxes and insurance
6710 Real estate taxes $ 3,755
6711 Payroll taxes (Property's share) 60
6720 Property and liability insurance (hazard) 2,354
6721 Fidelity bond insurance -
6722 Workers' compensation 57
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 7,026
Total operating expenses 83,871
Financial expenses
6820 Interest on mortgage (or bonds) payable -
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 38,059
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
6800T Total financial expenses 38,059
6990 Supportive services (ss) costs -
6900T Total supportive services costs -
6000 Total cost of operations before depreciation 121,930 5060T Operating profit (loss) before depreciation (13,767) Depreciation and amortization expenses
6600 Depreciation expense 62,266
6610 Amortization expense -
5060N Operating profit (loss) (76,033)
Net entity expenses
7190 Other expenses -
7100T Total net entity expenses -
3250 Change in total net assets from operations (net loss) $ (76,033)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2018
81 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2017 $ 86,249
Required deposits 4,000
Other deposits -
Interest earned 17
Withdrawals - capitalized (68,909)
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2018 $ 21,357
Operating
Reserve
Balance, July 1, 2017 $ 43,054
Required deposits -
Interest earned 13
Withdrawals - capitalized (20,420)
Withdrawals - expensed -
Balance, June 30, 2018 $ 22,647

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
82 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and Construction
Land Buildings Equipment in Progress Total
Balance, July 1, 2017 $ 341,000 $ 1,419,319 $ 2,628 $ 260,512 $ 2,023,459 Additions - - - 527,310 527,310
Deletions - (7,251) - - (7,251)
Reclass - 787,822 - (787,822) -
Balance, June 30, 2018 $ 341,000 $ 2,199,890 $ 2,628 $ - $ 2,543,518 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee Total
Balance, July 1, 2017 $ - $ - $ - $ -
Expense 1,368 - 8,374 9,742
Payment (1,368) - (8,374) (9,742)
Balance, June 30, 2018 $ - $ - $ - $ -
Supportive services
Resident services fee $ -
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered.

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
A property management fee of $9,792 was incurred for the year ended June 30, 2018 for the property management services provided by Community Corporation of Santa Monica. 83 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 108,163
Interest earned on restricted reserve accounts (34)
Adjusted operating income 108,129
Operating expenses - excludes financial expenses (83,871) Adjusted net income 24,258
Other activity
Mandatory debt service -
Deposits into reserve for replacements account (4,000)
Deposits into other restricted accounts per regulatory agreement - Capital improvements ($437,983 funded with operating advances) (527,310) Disposal of assets 1,174
Withdrawals from reserve for replacements account included in property and equipment 68,907
Withdrawals from reserve for replacements account included in operating expenses -
Withdrawals from other restricted accounts included in
property and equipment 20,420
Total other activity (440,809)
Operating cash flow/surplus cash $ (416,551)
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ - Distributions and loan payments
Paid as follows per regulatory agreement
100% to HCD Loan -
Total distributions to lenders -
Total distributions to owners and lenders $ -

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2018
84 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of
Community Corporation of Santa Monica and Subsidiaries
(A California Not-For-Profit Corporation)
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of 502 Colorado, 815 Ashland, Garcia, and Virginia Village (the "HCD Properties"), which comprise the combining statements of financial position as of June 30, 2018, and the related combining statements of activities, changes in net assets (deficit), and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated October 23, 2018.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered HCD Properties' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of HCD Properties' internal control. Accordingly, we do not express an opinion on the effectiveness of HCD Properties' internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of HCD Properties' financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
85 HCD Properties

Page 2 ends

Compliance and Other Matters
As part of obtaining reasonable assurance about whether HCD Properties' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of HCD Properties' internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering HCD Properties' internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

October 23, 2018 Dauby O’Connor & Zaleski, LLC
Carmel, Indiana Certified Public Accountants
86 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUMMARY OF AUDIT FINDINGS AND RECOMMENDATIONS
YEAR ENDED JUNE 30, 2018
Schedule of Current Year Findings and Recommendations
Our audit disclosed no findings or questioned costs that are required to be reported.

Status of Prior Year Findings and Recommendations
There were no open findings, questioned costs or recommendations from the prior audit report.

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

REPORT ON AUDIT OF CONSOLIDATED FINANCIAL

STATEMENTS AND SUPPLEMENTARY INFORMATION

AND COMPLIANCE AND INTERNAL CONTROL
WITH ACCOMPANYING INFORMATION REQUIRED BY:

THE CALIFORNIA DEPARTMENT OF HOUSING AND

COMMUNITY DEVELOPMENT
YEAR ENDED JUNE 30, 2017

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

TABLE OF CONTENTS
Page
Independent auditor’s report 1-2
Financial statements
Consolidated statement of financial position 3-4
Consolidated statement of activities 5-6
Consolidated statement of changes in net assets (deficit) 7 Consolidated statement of cash flows 8-9
Notes to consolidated financial statements 10-32
Supplementary information - properties and subsidiaries Combining statements of financial position by property 33-41 Combining statements of activities and changes in net assets (deficit) by property 42-47
Mortgage schedule by property 48-51
Combining statements of financial position by subsidiary 52-53 Combining statements of activities and changes in net assets (deficit) by subsidiary 54-55
Mortgage schedule by subsidiary 56
Supplementary information - HCD 57-82
Independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 83-84
Summary of audit findings and recommendations 85
Certificate of officer 86
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Community Corporation of Santa Monica and Subsidiaries
(A California Not-For-Profit Corporation)
Report on the Financial Statements
We have audited the accompanying financial statements of Community Corporation of Santa Monica and Subsidiaries, which comprise the consolidated statement of financial position as of June 30, 2017, and the related consolidated statements of activities, changes in net assets (deficit), and cash flows for the year then ended, and the related notes to the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
2 Community Corporation of Santa Monica and Subsidiaries

Page 2 ends

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Community Corporation of Santa Monica and Subsidiaries as of June 30, 2017, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Community Corporation of Santa Monica and Subsidiaries' basic financial statements. The accompanying supplementary information – properties and subsidiaries shown on pages 33 to 56 is presented for purposes of additional analysis, and is not a required part of the basic financial statements. The accompanying supplementary information – HCD shown on pages 57 to 82 is presented for purposes of additional analysis as required by the Audited Financial Statement Handbook for Multi-Family Rental Housing issued by the California Department of Housing and Community Development and California Housing Finance Agency ("HCD/CalHFA") for the properties financed by HCD, and is not a required part of the basic financial statements.

Change in Accounting Principle
As described in Note 1 to the financial statements, the Corporation determined the likelihood of contingent interest payment being due as likely which warranted an accrual on a go forward basis.

Our opinion is not modified with respect to that matter.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards and the requirements of the Audited Financial Statement Handbook for Multi-Family Rental Housing of the California Department of Housing and Community Development and the California Housing Finance Agency, we have also issued our report dated October 9, 2017 on our consideration of 502 Colorado, 815 Ashland, Garcia, and Virginia Village's (the "HCD Properties") internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and the requirements of the Audited Financial Statement Handbook for Multi-Family Rental Housing of the California Department of Housing and Community Development and the California Housing Finance Agency, in considering HCD Properties' internal control over financial reporting and compliance.

October 9, 2017 Dauby O’Connor & Zaleski, LLC
Carmel, Indiana Certified Public Accountants
See notes to consolidated financial statements 3

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) ASSETS
General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Current assets
Cash and cash equivalents 12,130,344 $ 6,914,678 $ 19,045,022 $ 805,105 $ - $ 19,850,127 $Restricted cash 8,328 9,779,237 9,787,565 3,259,504 - 13,047,069Accounts receivable, net 21,473 44,183 65,656 10,313 - 75,969Other receivable 1,615 - 1,615 - - 1,615Investments 4,997,586 - 4,997,586 - - 4,997,586Prepaid expenses and other current assets 51,140 8,750 59,890 25,133 - 85,023
Total current assets 17,210,486 16,746,848 33,957,334 4,100,055 - 38,057,389 Property and equipment
Land 850,871 59,307,034 60,157,905 7,719,147 - 67,877,052Buildings and improvements 921,215 97,410,435 98,331,650 18,723,532 (222,083) 116,833,099Furniture, fixtures and equipment 323,139 30,528 353,667 125,848 - 479,515
Construction in progress 1,205,529 191,106 1,396,635 260,512 - 1,657,147 3,300,754 156,939,103 160,239,857 26,829,039 (222,083) 186,846,813 Less: Accumulated depreciation (651,412) (30,842,185) (31,493,597) (4,870,342) - (36,363,939) Property and equipment, net 2,649,342 126,096,918 128,746,260 21,958,697 (222,083) 150,482,874 Other assets
Investments in Partnerships 999,681 - 999,681 205 (332,338) 667,548Due from Partnerships 401,180 - 401,180 - - 401,180Due (to) from Subsidiaries and Properties 1,105,145 (73,333) 1,031,812 (1,031,812) - - Note receivable 159,019 - 159,019 - - 159,019 Other assets - - - 193,831 - 193,831
Total other assets 2,665,025 (73,333) 2,591,692 (837,776) (332,338) 1,421,578 22,524,853 $ 142,770,433 $ 165,295,286 $ 25,220,976 $ (554,421) $ 189,961,841 $

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
JUNE 30, 2017
See notes to consolidated financial statements 4

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

LIABILITIES AND NET ASSETS (DEFICIT)
General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Current liabilities
Accounts payable and accrued
expenses 258,699 $ 571,912 $ 830,611 $ 194,074 $ - $ 1,024,685 $ Accrued interest payable - 707,269 707,269 58,475 - 765,744Security deposits 9,972 668,256 678,228 169,096 - 847,324Current portion of long-term debt - 939,914 939,914 143,097 - 1,083,011 Total current liabilities 268,671 2,887,351 3,156,022 564,742 - 3,720,764 Long-term liabilities
Long-term debt, net of current
portion - 127,015,090 127,015,090 21,711,774 - 148,726,864 Less: unamortized debt issuance
costs, net - (175,124) (175,124) (76,177) - (251,301)
Deferred interest - 1,159,868 1,159,868 6,664,693 - 7,824,561 Total long-term liabilities - 127,999,834 127,999,834 28,300,290 - 156,300,124 Total liabilities 268,671 130,887,185 131,155,856 28,865,032 - 160,020,888 Net assets (deficit)
Unrestricted net assets (deficit) 22,252,785 11,833,248 34,086,033 (3,644,056) (554,421) 29,887,556Temporarily restricted net assets (deficit) 3,397 50,000 53,397 - - 53,397 Total net assets (deficit) 22,256,182 11,883,248 34,139,430 (3,644,056) (554,421) 29,940,953 22,524,853 $ 142,770,433 $ 165,295,286 $ 25,220,976 $ (554,421) $ 189,961,841 $

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) JUNE 30, 2017
See notes to consolidated financial statements 5

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Unrestricted revenues
Rental fees, net of vacancy - $ 11,745,775 $ 11,745,775 $ 2,378,600 $ - $ 14,124,375 $Developer fees 766,562 - 766,562 - (166,562) 600,000Property management fees 488,246 - 488,246 4,242 - 492,488Resident service fees 373,117 - 373,117 - - 373,117Maintenance service fees 275,551 - 275,551 - - 275,551Bookkeeping fees 72,042 - 72,042 - - 72,042Commercial rental income, net of concessions 164,379 - 164,379 100,067 (100,067) 164,379 Debt forgiveness - 150,977 150,977 - - 150,977Grants 37,815 - 37,815 - - 37,815Interest 1,765 9,108 10,873 2,373 - 13,246Other 175,244 20,799 196,043 17,635 (15,845) 197,833 Temporarily restricted revenues
Grants 5,000 50,000 55,000 - - 55,000Net assets released from restrictions (1,603) - (1,603) - - (1,603) Total revenues 2,358,118 11,976,659 14,334,777 2,502,917 (282,474) 16,555,220 Expenses
Salaries 2,378,887 637,779 3,016,666 19,889 - 3,036,555Payroll taxes 188,528 47,927 236,455 1,522 - 237,977Employee benefits 153,412 46,756 200,168 - - 200,168Legal and professional 26,583 60,249 86,832 33,198 - 120,030Loss on disposal of buildings and improvements - 1,376 1,376 - - 1,376
Consultants 326,869 32,249 359,118 9,005 - 368,123Office and administration 470,332 206,008 676,340 89,159 - 765,499Insurance 82,094 229,854 311,948 60,941 - 372,889Rent 151,530 - 151,530 - (100,067) 51,463Maintenance and repairs 44,769 1,999,250 2,044,019 556,534 (116,060) 2,484,493Maintenance service fees interfund (928,258) 634,310 (293,948) 177,888 116,060 - Property management fees interfund (1,327,155) 983,400 (343,755) 343,755 - - Bookkeeping fees interfund (241,968) 204,196 (37,772) 37,772 - - Resident service fees interfund (83,281) 61,467 (21,814) 21,814 - - Gardening and grounds - 352,829 352,829 77,084 - 429,913Pest control 517 88,067 88,584 21,117 - 109,701Utilities 17,472 954,297 971,769 240,971 (15,845) 1,196,895Property taxes 25,892 729,911 755,803 89,433 - 845,236Rent control fees - 63,714 63,714 - - 63,714Workers compensation 53,814 22,257 76,071 1,452 - 77,523 Total expenses before interest
and depreciation 1,340,037 7,355,896 8,695,933 1,781,534 (115,912) 10,361,555 Net operating income 1,018,081 4,620,763 5,638,844 721,383 (166,562) 6,193,665

CONSOLIDATED STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
See notes to consolidated financial statements 6

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Interest - $ 1,513,563 $ 1,513,563 $ 469,023 $ - $ 1,982,586 $Depreciation 54,361 2,182,289 2,236,650 685,289 - 2,921,939 Total interest and depreciation 54,361 3,695,852 3,750,213 1,154,312 - 4,904,525 Changes in net assets (deficit) 963,720 $ 924,911 $ 1,888,631 $ (432,929) $ (166,562) $ 1,289,140 $

CONSOLIDATED STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2017
See notes to consolidated financial statements 7

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Balance, July 1, 2016 13,374,581 $ 19,451,193 $ 32,825,774 $ (3,057,057) $ (412,437) $ 29,356,280 $ Effect of change in accounting principle - (574,975) (574,975) (73,971) (55,521) (704,467) Balance, July 1, 2016, after change
in accounting principle 13,374,581 18,876,218 32,250,799 (3,131,028) (467,958) 28,651,813 Intercompany transfer 7,917,881 (7,917,881) - (80,099) 80,099 - Changes in net assets (deficit) 963,720 924,911 1,888,631 (432,929) (166,562) 1,289,140 Balance, June 30, 2017 22,256,182 $ 11,883,248 $ 34,139,430 $ (3,644,056) $ (554,421) $ 29,940,953 $

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (DEFICIT) YEAR ENDED JUNE 30, 2017
See notes to consolidated financial statements 8

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Cash flow from operating activities
Changes in net assets (deficit) 963,720 $ 924,911 $ 1,888,631 $ (432,929) $ (166,562) $ 1,289,140 $Adjustments to reconcile changes in unrestrictednet assets (deficit) to net cash provided by(used in) operating activities:

Depreciation 54,361 2,182,289 2,236,650 685,289 - 2,921,939Interest - debt issuance costs - 17,687 17,687 5,115 - 22,802Amortization of other assets - - - 7,033 - 7,033Debt forgiveness - (150,977) (150,977) - - (150,977)Loss on disposal of property and equipment - 1,376 1,376 - - 1,376Loss on investments 2,414 - 2,414 - - 2,414Changes in assets and liabilities:Accounts receivable, net (8,650) 60,984 52,334 (6,045) - 46,289Other receivable (1,615) - (1,615) - - (1,615)Prepaid expenses and other current assets 7,274 (7,950) (676) (2,390) - (3,066)Due from Partnerships 42,582 - 42,582 - - 42,582Due (to) from Subsidiaries and Properties (226,735) (73,508) (300,243) 300,243 - - Accounts payable and accrued expenses 6,487 (50,049) (43,562) (1,641) - (45,203)Security deposits 1 1,675 1,676 (2,175) - (499)Accrued interest payable and deferred interest - 74,475 74,475 (59,377) - 15,098 Net cash provided by (used in) operatingactivities 839,839 2,980,913 3,820,752 493,123 (166,562) 4,147,313Cash flow from investing activities Change in restricted cash (4,947) (613,268) (618,215) (173,963) - (792,178)Purchase of property and equipment (10,463) (434,479) (444,942) (132,286) 166,562 (410,666)Change in construction in progress (41,275) (703,609) (744,884) (139,913) - (884,797)Intercompany transfer of construction in progress 55,326 (55,326) - - - - Change in other assets 15,000 - 15,000 - - 15,000Change in investments (5,000,000) - (5,000,000) - - (5,000,000)Change in investments in Partnerships 434 - 434 (201) (80,099) (79,866) Net cash provided by (used in) investingactivities (4,985,925) (1,806,682) (6,792,607) (446,363) 86,463 (7,152,507)

CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2017
See notes to consolidated financial statements 9

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Eliminations Subsidiaries Cash flow from financing activities
Principal payments on long-term debt - $ (808,219) $ (808,219) $ (280,638) $ - $ (1,088,857) $Draws on construction loan - 845,720 845,720 - - 845,720Intercompany transfer 7,917,881 (7,917,881) - (80,099) 80,099 - Repayments of note receivable 31,046 - 31,046 - - 31,046 Net cash provided by (used in)financing activities 7,948,927 (7,880,380) 68,547 (360,737) 80,099 (212,091)Net change in cash and cash equivalents 3,802,841 (6,706,149) (2,903,308) (313,977) - (3,217,285)Cash and cash equivalents - beginning 8,327,503 13,620,827 21,948,330 1,119,082 - 23,067,412Cash and cash equivalents - ending 12,130,344 $ 6,914,678 $ 19,045,022 $ 805,105 $ - $ 19,850,127 $Supplemental disclosures of cash flowinformation Cash paid during the year for interest - $ 1,421,401 $ 1,421,401 $ 449,314 $ - $ 1,870,715 $ Supplemental disclosures of non-cash investing and financing activities

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2017
Cash flow from investing activities related to the purchase of property and equipment and change in construction in progress excludes $512,826, which isincluded in accounts payable and accrued expense as of June 30, 2017. 10 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements include the transactions and accounts of CCSM, and also sc Community Corporation ("scCC"), Cloverfield Community Partners ("Cloverfield"), Virginia Village Partnership ("Virginia Village"), Garcia Apartments Partnership ("Garcia"), 815 Ashland Limited Partnership ("815 Ashland"), Second Street Center Partnership ("SSC"), CCSM Village, LLC ("CCSM Village"), 16th Street Apartment Limited Partnership (“16th Street"), Fifth and Wilshire Apartments Limited Partnership (“5th and Wilshire”), CCSM ESCO, LLC (“ESCO”), 2407 Fourth Street, Ltd. (“2407 4
th Street”), 708 Pico, L.P. (“708 Pico”), and CCSM Arroyo, LLC (“Arroyo”) (collectively, the "Subsidiaries"). CCSM and the Subsidiaries are reported collectively as Community Corporation of Santa Monica and Subsidiaries (the “Corporation”).

In addition to CCSM's ownership in the Subsidiaries, CCSM owns and manages 69 affordable housing properties (the "Properties"), of which four are financed by mortgages insured or provided by California Department of Housing and Community Development ("HCD"). These Properties have also entered into regulatory agreements with the City which governs the operation of the properties and restricts the persons eligible to reside at the properties. CCSM also holds general partner interests in eleven entities that operate affordable housing and Arroyo holds general partner interest in one entity that operates affordable housing (collectively, the "Partnerships"). CCSM manages these properties but does not consolidate these equity investments (see Investments in Partnerships).
scCC is a California not-for-profit corporation, which was formed on November 30, 2004 for the purpose of assisting CCSM in the development and management of rental properties located throughout California, principally in the Los Angeles area, in order to further affordable housing. scCC is a wholly-owned subsidiary of CCSM.

Cloverfield is a California limited partnership, which was formed on April 5, 1988 for the purpose of acquiring, rehabilitating and operating a 32-unit affordable housing property located in Santa Monica, California. CCSM holds a 98% limited partner ownership interest and a 1% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2104, unless sooner terminated as provided in the partnership agreement. Cloverfield entered into a regulatory agreement with HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property.
11 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2031, unless sooner terminated as provided in the partnership agreement. Virginia Village entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property.

Garcia is a California limited partnership, which was formed on April 4, 1991 for the purpose of acquiring, developing and operating a 30-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until June 30, 2033, unless sooner terminated as provided in the partnership agreement. Garcia entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property. 815 Ashland is a California limited partnership, which was formed on March 12, 1992 for the purpose of developing and operating a 45-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 815 Ashland entered into a regulatory agreement with the HCD and the City which governs the operation of the property and restricts the persons eligible to reside at the property.

SSC is a California limited partnership, which was formed on May 1, 1992 for the purpose of developing and operating a 44-unit affordable housing property with commercial premises located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. SSC entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.

CCSM Village is a California limited liability company, which was formed on February 2, 2012 to maintain a 0.005% general partnership interest in Santa Monica Housing Partners Limited Partnership ("SMHP"). SMHP was formed to acquire, develop and provide affordable housing and acquire and develop a ground leasehold estate for affordable housing. The term of the limited liability company shall extend until December 31, 2066, unless sooner terminated as provided in the operating agreement.
12 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ORGANIZATION (CONTINUED)
16th Street is a California limited partnership, which was formed on February 25, 1998 for the purpose of developing and operating a 17-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 16th Street entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property. 5 th and Wilshire is a California limited partnership, which was formed on October 31, 1996 for the purpose of developing and operating a 32-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest, and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2055, unless sooner terminated as provided in the partnership agreement. 5th and Wilshire entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.

ESCO is a California limited liability company, which was formed on September 8, 2014 for the purpose of completing, constructing, installing, maintaining, and measuring energy efficiency measures and undertaking retrofits to reduce energy costs and related expenses for certain Properties and Subsidiaries located in Santa Monica, California. Upon completion of the retrofits improvements, ESCO transferred title to the Properties or Subsidiaries at cost. CCSM holds a 100% ownership interest in ESCO. The term of the company shall extend indefinitely until terminated.
2407 4
th Street is a California limited partnership, which was formed on January 26, 1987 for the purpose of developing and operating a 10-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2086, unless sooner terminated as provided in the partnership agreement. 2407 4 th Street
entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property. 708 Pico is a California limited partnership, which was formed on May 31, 1999 for the purpose of developing and operating a 20-unit affordable housing property located in Santa Monica, California. CCSM holds a 99% general partner ownership interest and scCC holds a 1% limited partner ownership interest. The term of the partnership shall extend until December 31, 2071, unless sooner terminated as provided in the partnership agreement. 708 Pico entered into a regulatory agreement with the City which governs the operation of the property and restricts the persons eligible to reside at the property.
13 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ORGANIZATION (CONTINUED)
Arroyo is a limited liability company, which was formed on June 1, 2016 to maintain a 1% general partnership interest in 1626 Lincoln, L.P. Arroyo was formed for the purpose of financing acquisition and development activities related to affordable housing developments, entering into agreements with building owners to provide energy services and investing capital in equipment that will reduce a building's energy usage, and providing a pledge of funds, or other guaranty, for certain lines of credit secured by CCSM. CCSM is the sole member. The term of limited liability company shall extend into perpetuity, unless sooner terminated as provided in the operating agreement.

Accordingly, assets of the Corporation and changes therein are classified and reported as follows:

Temporarily restricted assets – Assets subject to donor-imposed stipulations that will be met either by actions of the donor, the Corporation and/or the passage of time.

All assets held by the Corporation as of June 30, 2017 are classified as either unrestricted or temporarily restricted.
14 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidation
In accordance with FASB ASC 810, the consolidated financial statements include the accounts of the Corporation and its wholly owned partnerships and limited liability companies, after elimination of all material intercompany accounts, transactions, and profits.

Cash and cash equivalents
For the consolidated statement of cash flows, all unrestricted investments with original maturities of three months or less are cash equivalents. At June 30, 2017, cash and cash equivalents consist of unrestricted checking and savings accounts held at numerous banks, money market fund accounts, and petty cash.

Accounts receivables and bad debt policy
Resident rent charges for the current month are due on the first of the month. Residents who are evicted or move-out are charged with damages or cleaning fees, if applicable. Accounts receivables consist of amounts due for rental income or the charges for damages and cleaning fees. The Corporation does not accrue interest on the accounts receivable balances.

Management periodically reviews accounts receivables and uses an allowance for doubtful accounts to recognize bad debts. Accounts receivable on the consolidated statement of financial position is shown net of the allowance for doubtful accounts, which totaled $38,173 at June 30, 2017. Bad debts included in office and administration expense in the consolidated statement of activities expensed for the year ended June 30, 2017 totaled $81,657.

Investments
Investments in marketable securities with readily determinable fair values are reported at their fair values as short-term investments in the statement of financial position. Unrealized gains and losses are included in the change in net assets.

Property and equipment
Property and equipment consists of land, buildings, improvements and furniture and fixtures and equipment. Property and equipment is recorded at cost. All direct and indirect costs of developing housing properties, including planning, architectural services, rehabilitation costs and interest prior to occupancy, are capitalized to real estate during development. The allocation of acquisition costs between land and building is based on assessed value as determined by the County Assessor for real estate tax purposes or on values determined by a real estate appraiser.

Depreciation is computed using straight-line method over the estimated useful life of 3 to 55 years commencing with the day the assets are placed into service. Costs that are deemed to increase the useful life of the property or equipment are capitalized. When assets are sold or otherwise disposed of, the costs and related depreciation are removed from the accounts, and any resulting gain or loss is included in operations.
15 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property and equipment (continued)
The Corporation is subject to the provisions of the Impairment or Disposal of Long-Lived Assets topic of the FASB ASC 360-10. The standard requires impairment losses to be recorded on longlived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets (excluding interest) are less than the carrying amount of the assets. In such cases, the carrying value of assets to be held and used are adjusted to their estimated fair value and assets held for sale are adjusted to their estimated fair value less selling expenses. No impairment losses were recognized during the year ended June 30, 2017.

Change in accounting principle
Debt issuance costs
During the year ended June 30, 2017, the Corporation adopted the Interest-Imputation of Interest topic of the FASB ASC 835-30 ("ASC 835-30") related to the presentation of debt issuance costs. In previous periods, debt issuance costs were presented as a deferred asset on the Consolidated Statement of Financial Position. Effective July 1, 2016, the provisions of ASC 835-30 require debt issuance costs to be presented as a reduction of the outstanding debt.

There has been no change to the recognition and measurement of the debt issuance costs after initial recognition; therefore, these costs will continue to be amortized over the life of the respective mortgage using the straight-line method. However, the amortization of debt issuance costs is now required to be reported as a component of interest expense.

Generally accepted accounting principles require that the effective yield method be used to amortize debt issuance costs; however, the effect of using the straight-line method is not material to the financial statements for the year ended June 30, 2017. The change in accounting principle resulted in the following changes in previously reported balances:

Previously Restated
Reported Adjustment July 1, 2016
Unamortized costs, net $ 274,103 $ (274,103) $ -
Less: unamortized debt issuance costs, net - 274,103 274,103 Interest - 21,945 21,945
Amortization 21,945 (21,945) -
16 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Change in accounting principle (continued)
Contingent interest and development fee elimination
The Corporation calculates contingent interest payments on loans as of June 30, 2017. During the year ended June 30, 2017 the Corporation determined the likelihood of contingent interest payment being due as likely which warranted an accrual on a go forward basis. In previous periods, the Corporation expensed the contingent interest when paid. See Note 7. During the year ended June 30, 2017 the Corporation eliminated developer fees. In the previous periods, the Corporation did not eliminate developer fees. The changes in accounting principles were made during the year ended June 30, 2017 since the different methods more accurately reports the financial results of the Corporation's operations.

The change in accounting principle resulted in the following changes in previously reported balances:

Previously Restated
Reported Adjustment July 1, 2016
Buildings and improvements $115,424,886 $ (55,521) $115,369,365 Accrued interest payable (45,464) (648,946) (694,410)
Developer fees (596,801) 55,521 (541,280)
Interest 1,950,872 648,946 2,599,818
Net assets (deficit) 29,356,280 (704,467) 28,651,813
Investment in Partnerships
The Corporation does not consolidate the accounts and activities of the equity investments, which are considered Variable Interest Entities under ASC 810-10 Consolidation, because the Corporation is not considered the primary beneficiary. The Corporation accounts for its equity investments in accordance with the equity method of accounting, under which the equity investment is carried at cost and is adjusted for the Corporation’s share of net income or loss and by cash distributions received. Equity in loss of each equity investment allocated to the Corporation is recognized to the extent of the Corporation’s equity investment balance.

Previously unrecognized equity in loss is recognized in the year in which equity in income is earned by such equity investment or additional investment is made by the Corporation.

Distributions received subsequent to the elimination of an equity investment balance will be recorded as other income. Advances and additional capital contributions will be recorded as additional equity investments if repayment is deemed unlikely. The Corporation assesses the carrying value of its equity investments whenever there are indications that a permanent impairment may have occurred. No impairment losses were recognized during the year ended June 30, 2017.
17 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investment in Partnerships (continued)
Many of the Partnerships are financed by mortgages provided by the City, mortgages from other lending institutions, state agencies or granting agencies, or investor equity received as a result of the creation of low income housing tax credits allocated to the Partnerships pursuant to Section 42 of the Internal Revenue Code. In addition, many of the Partnerships are subject to certain operating requirements or restrictions in the underlying financing or regulatory agreements. The Corporation's investment in Partnerships does not differ significantly from its share of the Partnerships' underlying equity.

Management periodically reviews Partnership receivables and uses and allowance for doubtful accounts to recognize bad debts. Due from Partnerships on the consolidated statement of financial position is shown net of the allowance for doubtful accounts. There were no bad debts expensed for the year ended June 30, 2017. There is no allowance for doubtful accounts as of June 30, 2017.

Other assets
Other assets consist of a prepaid ground lease, parking assessment fee, debt service deposit, and escrow deposit. The ground lease is with the City, commenced on June 22, 1994, and is for a period of fifty-five years. The prepaid ground lease is amortized on a straight-line basis over the term of the lease.

The City established annual fees for developments that do not provide onsite parking. The parking assessment fee, which was prepaid through 2017, is amortized on a straight-line basis over the term of the agreement.

Deferred interest
Deferred interest consists of interest due upon maturity of the long term debt.

Rental fee and commercial income
Rental income is recognized as rents become due. Rental payments received in advance are deferred until earned. All leases between the Corporation and the residents or commercial tenants of the properties are operating leases.
18 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Developer fee income
CCSM earns developer fees primarily for facilitating the financing and construction of affordable housing, generally in its capacity as general partner or managing member of various real estate partnerships and limited liability companies. Fees are recognized based on completion of various phases of the development, as specified in the respective agreements. Certain fees are deferred and payable from the properties' available operating cash flow.

Property management fee income
Management fee income is earned based on the terms as outlined in the management agreements. Management fees are typically paid by the properties monthly.

Leases
In accordance with the provisions of Accounting for Leases topic of the FASB ASC 840-20, the Corporation is required to recognize rental income on a straight-line basis over the terms of the leases, however; the effect of recognizing rental income received instead is not material to the consolidated financial statements for the year ended June 30, 2017.

Advertising costs
Advertising costs incurred by the Corporation are expensed as incurred and are included in office and administrative expenses in the consolidated statement of activities.

Functional allocation of expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in Note 13. Accordingly, certain costs have been allocated among the programs and supporting services benefited based upon direct expenditures incurred or based upon time spent in the activities. For the year ended June 30, 2017, fundraising costs were insignificant to the consolidated financial statements as a whole.

Accounting for uncertainty in income taxes
CCSM is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and state income tax and has been classified as an other than private foundation. Accordingly, no provision for federal and state taxes on revenue and income has been recognized in the accompanying consolidated financial statements.
19 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounting for uncertainty in income taxes (continued)
Even though CCSM is recognized as tax exempt, it still may be liable for tax on its unrelated business income (UBI). CCSM evaluates uncertain tax positions through its review of the sources of income to identify UBI and certain other matters, including those which may affect its tax exempt status. The effect of the uncertainty would be recorded if the outcome was considered probable and reasonably estimable. As of June 30, 2017, CCSM had no uncertain tax positions requiring accrual.
scCC applied for an exemption from federal income tax under Section 501(c)(3) of the Internal Revenue Code and state income tax. According to an Internal Revenue Service (IRS) letter dated November 18, 2005, scCC was not granted the tax exempt status under IRC Section 501(c)(3).

Effective April 1, 2015, scCC was granted the tax exempt status under IRC Section 501(c)(3).

CCSM Village elected to be taxed as a corporation for federal and state income tax purposes. As a result, CCSM Village accounts for income taxes under the asset and liability method in accordance with ASC 740-10.

ESCO and Arroyo are single member LLCs; therefore, these entities are disregarded for federal tax purposes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Concentration of credit risk
The Corporation maintains various cash and investment balances with various regional and national financial institutions. The balances in the accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of June 30, 2017, the cash balances held at some of these financial institutions exceeded the FDIC insurance limit. The Corporation has not experienced any losses in such accounts. Management believes that the Corporation is not exposed to any significant credit risk on cash and cash equivalents.

The Corporation’s operations are concentrated in the multifamily real estate market and all rental properties are located in the city of Santa Monica. In addition, the Corporation operates in a heavily regulated environment. The operations of the Corporation, specifically, the Properties, are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies. Such administrative directives, rules and regulations are subject to change.

Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, if any, to comply with a change.

Fair value
The Corporation is subject to the provisions of the Fair Value Measurement top of the FASB ASC 820-10 which provides guidance for assets and liabilities which are required to be measured at fair value and requires expanded disclosure for fair value measurement. The standard applies whenever other standards require or permit assets or liabilities to be measured at fair value and does not require any new fair value measurements.

The standard establishes a fair value hierarchy based on three levels:

Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Quoted prices for similar assets or liabilities in active markets Level 3 - Unobservable inputs for the asset or liability based on the best available information
21 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 1-ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair Value
The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy:

Investments – Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include cash and cash equivalents held for investment and fixed income bond funds. For cash and cash equivalents, fair value approximates carrying value due to the initial maturities of the instruments being three months or less. For fixed income bond funds, fair values are valued at the closing price reported on the active market on which the individual securities are traded. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with identical characteristics, discounted cash flows, or net asset value as described below. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The valuation technique is classified as Level 1 under the fair value measurements fair value hierarchy.

Subsequent events
Management performed an evaluation of the Corporation’s activity through October 9, 2017, the audit report date, and has concluded that there are no significant subsequent events requiring disclosure through the date these consolidated financial statements were available to be issued, except as described in Note 15.
22 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 2–RESTRICTED CASH
The Corporation has various cash balances which are restricted consisting of operating reserves, replacement reserves, resident security deposits, flexible benefit plans, and other loan/advances required to be maintained by various operating, regulatory, or lending agreements. The Corporation has designated restricted cash as follows:

General and Rental CCSM CCSM and
Administrative Operations Subtotal Subsidiaries Subsidiaries Operating reserves $ - $ 1,420,938 $ 1,420,938 $ 1,644,930 $ 3,065,868 Replacement, affordability
and other reserves - 7,434,559 7,434,559 1,389,849 8,824,408 Resident security deposits - 923,740 923,740 224,725 1,148,465 Flexible benefit plan 8,328 - 8,328 - 8,328
$ 8,328 $ 9,779,237 $ 9,787,565 $ 3,259,504 $13,047,069 NOTE 3-INVESTMENTS
Investments at June 30, 2017, consisted of the following at fair value:

Cash and cash equivalents $ 1,000,000
Fixed income bond fund 3,997,586
Total $ 4,997,586
Investment income for the year ended June 30, 2017, is as follows:

Dividend, interest, and other investment income $ 2,476 Income reinvested ( 2,476)
Net realized gain (loss) on investments -
Net unrealized gain (loss) on investments ( 2,414)
Total $( 2,414)
Investment income is net of investment expenses of $-0- for the year ended June 30, 2017.

NOTE 4-NOTE RECEIVABLE
On December 16, 2014, the Corporation entered into a note with Mercy Loan Fund that funded a portion of a loan to ESCO in the original principal amount of $191,049. The note was amended during the year ended June 30, 2016 to a principal balance of $190,065. The note is non-interest bearing and is due May 1, 2025. At June 30, 2017, the outstanding balance of the note is $159,019.
23 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 5-OTHER ASSETS
SSC entered into a second amended ground lease agreement for the land on which the apartment complex was constructed for a term of fifty five years expiring in June 2048. The original land lease was prepaid in 1993 in the amount of $223,462. These costs are being amortized over the term of the land lease using the straight-line method. Amortization expense for the year ended June 30, 2017 was $5,729. At June 30, 2017, accumulated amortization is $39,631.

CCSM prepaid parking assessment fees in October 1994 in the amount of $93,832 through 2017.

These costs are being amortized over the term of the parking assessment fee term using the straight-line method. Amortization expense for the year ended June 30, 2017 was $1,304. At June 30, 2017, accumulated amortization is $93,832.

Estimated amortization expense for each of the next five years and thereafter is as follows:
2018 $ 5,730
2019 5,730
2020 5,730
2021 5,730
2022 5,730
Thereafter 155,181
$ 183,831
A debt service deposit at $10,000 is held with the trustee for long term debt at 16th Street.

NOTE 6-INVESTMENT IN PARTNERSHIPS
As of June 30, 2017, the Corporation has ownership interests in the following entities which own affordable housing properties. The Partnerships' purpose is to acquire, rehabilitate, develop and operate affordable housing properties:

Percentage of
Entity Units Interest
1424 Broadway Apartments Limited Partnership 41 0.01%
26th and Santa Monica Family Housing Limited Partnership 44 0.01% Pacific Court Limited Partnership 44 0.01%
Berkeley Place Limited Partnership 47 0.01%
The Tahiti Limited Partnership 36 0.01%
2602 Broadway Limited Partnership 33 0.01%
High Place West Limited Partnership 47 0.01%
2802 Pico Limited Partnership 33 0.01%
430 Pico Limited Partnership 32 0.01%
High Place East Limited Partnership 44 0.01%
Santa Monica Housing Partners Limited Partnership 160 0.005% 1626 Lincoln, L.P. 64 0.01%
24 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 6-INVESTMENT IN PARTNERSHIPS (CONTINUED)
The investment in Partnerships as of June 30, 2017 is carried on the equity method, as follows:

Capital, beginning $ 587,682
Distributions -
Contributions 80,200
Gains (losses) in Partnerships, net ( 334)
Reduction of investment value - acquisitions -
Capital, ending $ 667,548
1626 Lincoln, L.P. ("1626 Lincoln") is a California limited partnership, which was formed on June 9, 2016 for the purpose of developing and operating a 64-unit affordable housing property located in Santa Monica, California. Arroyo held a 1% general partner ownership interest and scCC held a 99% limited partner ownership interest. Effective April 25, 2017, Arroyo holds a

0.01% general partner ownership interest, Bank of America, N.A. holds a 99.98% investor limited partner ownership interest, Bank of America CDC Special holds a 0.01% investor special limited partnership interest and Lincoln SLP, LLC holds a 0% special limited partnership interest. The term of the partnership shall extend until December 31, 2070, unless sooner terminated as provided in the partnership agreement.

NOTE 7-LONG-TERM DEBT
The following mortgage loans payable are collateralized by various trust deeds covering all land, buildings, and improvements:

CCSM
Loans from various banks, interest ranging from 2.83% to

10.25% per annum, maturing from January 2017 through
March 2034. $ 9,696,102
Loans from the City, interest ranging from 0.00% to

12.00% per annum, subject to regulatory agreements (See Note 14), maturing from March 2017 through May 2066. As of June 30, 2017, there was a note which matured March
2017 for $35,000. The Corporation is currently in
negotiations with the City as to the amount to be repaid.

The forgiveness of the note is at the discretion of the City. 115,602,191 25 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 7-LONG-TERM DEBT (CONTINUED)
CCSM (continued)
Loans from the State of California, Department of Housing and Community Development, interest ranging from 0.00%
to 3.00% per annum, maturing from December 2018
through July 2058. $ 2,460,188
Loan from Bank of America/Affordable Housing Program,
interest payable at 0.00% per annum, maturing in June
2020. 196,523
CCSM long-term debt 127,955,004
Subsidiaries
Loans from various banks, interest ranging from 1.00% to

8.23% per annum, maturing from April 2021 through July
2031. 2,099,710
Loans from the City, interest ranging from 0.00% to

10.44% per annum, subject to regulatory agreements (See Note 14), maturing from December 2019 through October
2053. 14,820,418
Loans from the State of California, Department of Housing and Community Development, interest payable at 3.00%
per annum, maturing from January 2021 through October
2050. 4,662,263
Loan from Citibank/Affordable Housing Program, interest payable at 0.00% per annum, maturing in October 2027. 111,608 Loan from Mercy Loan Fund, payable at 5.00% per annum,
principal due based on energy dollar savings, maturing May 2025. See Note 4. 160,872
Subsidiaries long-term debt 21,854,871
Total long-term debt 149,809,875
Less: current portion ( 1,083,011)
Long-term portion $ 148,726,864
26 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 7-LONG-TERM DEBT (CONTINUED)
Subsequent to June 30, 2017, principal maturities of mortgage loans payable are as follows:

Year Ending CCSM and
June 30, CCSM Subsidiaries Subsidiaries
2018 $ 939,914 $ 143,097 $ 1,083,011
2019 1,532,098 150,863 1,682,961
2020 1,400,377 359,578 1,759,955
2021 914,159 363,898 1,278,057
2022 955,341 265,232 1,220,573
Thereafter 122,213,115 20,572,203 142,785,318
127,955,004 21,854,871 149,809,875
Unamortized
debt issuance
costs, net ( 175,124) ( 76,177) ( 251,301)
$127,779,880 $ 21,778,694 $149,558,574
The Properties and Subsidiaries incurred financing costs of $700,038 in connection with the financing of the affordable housing properties and energy efficiency measures. Amortization included in interest expense for the year ended June 30, 2017 totaled $22,802. During the year ended June 30, 2017, fully amortized assets of $3,413 were written off. Accumulated amortization was $445,324.

Estimated amortization expense for each of the next five years and thereafter is as follows:
2018 $ 23,766
2019 23,766
2020 23,766
2021 23,766
2022 23,766
Thereafter 132,471
$ 251,301
For the year ended June 30, 2017, the total interest expense amounted to $1,959,784.

Mortgage loans payable to the City and to the State of California described above are collateralized by various trust deeds on real property and improvements thereon. No monthly payments of principal or interest are required. The principal and interest on these loans are due based on residual receipts or at maturity, but may be forgiven, subject to regulatory agreement requirements, ten to twenty five years beyond due dates (see Note 14). The term residual receipts is the net of cash remaining at the end of an annual fiscal year as defined in each Properties and Subsidiaries regulatory agreement. An accrual for residual receipts contingent interest payments for the fiscal year ended June 30, 2017 are recorded based on the audited financial statement amounts.

For the year ended June 30, 2017, the total loan forgiveness amounted to $150,977. 27 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 8-COMMITMENTS
Related Parties Commercial and Office Leases
CCSM entered into a commercial retail space lease agreement with Pacific Court Limited Partnership requiring aggregate monthly payments of $2,581 through April 2039 plus common area maintenance charges and an annual increase of no less than 2.00% or greater than 6.00% depending on the change in Consumer Price Index. CCSM is the general partner in Pacific Court Limited Partnership.

CCSM, the general partner in 2802 Pico, Limited Partnership, entered into a lease agreement with 2802 Pico, Limited Partnership requiring annual payment of $1 through February 2045.

Effective January 7, 2016 the lease was modified to include an annual contingent rent in addition to the base rent of $1. CCSM then subleases space to DG Services, Inc., an unrelated party.

See Note 9.

CCSM also entered into an office facility lease agreement with SSC requiring a monthly payment of $8,336, plus insurance and real property taxes, through October 2021.

As of June 30, 2017, the future minimum rental payments are as follows:
2018 $ 137,232
2019 137,976
2020 138,735
2021 72,821
2022 40,267
Thereafter 807,639
$ 1,334,670
For the year ended June 30, 2017, rent expense after consideration of intercompany eliminations amounted to $51,463. In the normal course of business, commercial and office leases are generally renewed or replaced by other leases.

Development costs
The Corporation has several properties under rehabilitation, one property in development, and the CCSM corporate office remodel in the planning stages. As of June 30, 2017, total rehabilitation costs amounted to $457,865, total development costs amounted to $134,739, land cost in development amounted to $900,000, and CCSM office remodel in the planning stages amounted to $164,543. Rehabilitation costs, developments costs, and remodeling costs are included in the construction in progress in the accompanying consolidated financial statements.

The estimated budget for the properties under rehabilitation is approximately $4,140,000, the estimated budget for the properties in development is approximately $260,000, and the estimated budget for the CCSM office remodel is $1,400,000. 28 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 8-COMMITMENTS (CONTINUED)
Other
CCSM entered into agreements with the City and developed properties located at 2402 Fifth Street, 2207 Sixth Street, and Ocean Park 43. The agreements’ terms stipulate that the City has contributed land and partial construction funds in return for the properties’ development as affordable housing. Furthermore, the properties are subject to restrictive covenants and conditions for fifty years, at which time the City has the right to purchase the properties from CCSM for a nominal amount. As of June 30, 2017, the net carrying amount of these properties amounted to $3,372,951 and is included in property and equipment in the accompanying consolidated financial statements.

NOTE 9-COMMERCIAL SUBLEASES
CCSM subleased certain commercial spaces to unrelated parties pursuant to lease agreements requiring monthly payments of $11,652, subject to annual increases, through July 2019. CCSM also leases a commercial space to an unrelated party on a month to month basis.

As of June 30, 2017, the future minimum rental payments due to CCSM are as follows:
2018 $ 135,338
2019 24,415
2020 1,185
$ 160,938
For the year ended June 30, 2017, rent and common area maintenance income under these commercial leases amounted to $164,379.
29 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 10-RELATED PARTIES
Revenue from Partnerships
In connection with the ownership interests in the Partnerships listed in Note 1, CCSM also earns property management fees, resident service fees, maintenance service fees, bookkeeping fees, general partner fees, and reimbursement of leasing fees in accordance with the respective agreements. During the year ended June 30, 2017, CCSM received revenue as follows:
1424 Broadway Apartments LP $ 122,463
26th and Santa Monica Family Housing LP 137,023
Pacific Court LP 140,233
Berkeley Place LP 142,266
The Tahiti LP 92,657
2602 Broadway LP 101,476
High Place West LP 135,630
2802 Pico LP 99,803
430 Pico LP 104,390
High Place East LP 121,105
Santa Monica Housing Partners LP 27,151
$ 1,224,197
Developer fee income
In connection with the development of the Partnerships, the CCSM earns a developer fee in accordance with the developer fee agreement. During the year ended June 30, 2017, developer fee revenue totaled $766,562 (before eliminations), and at June 30, 2017, $258,443 remained receivable and is included in Due from Partnerships.

Due from Partnerships
The Corporation has made advances to various Partnerships in order to fund improvements, related party fees, property costs, operating shortfalls or pre-development costs. Amounts due from Partnerships are to be repaid as funds are available at the Partnerships. The Partnerships’ ability to pay may be restricted by various operating, regulatory, or lending agreements. Further, the Partnerships may be unable to pay due to cash flow shortages. These unsecured amounts do not bear interest. At June 30, 2017, outstanding amounts due from Partnerships totaled $142,737.

Due (to) from Subsidiaries
CCSM and the Subsidiaries consistently exchange funds throughout the year for the funding of operations. At June 30, 2017, $1,031,812 remained payable to CCSM. 30 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 11-CONSTRUCTION CONTRACTS
CCSM has entered into construction contract for rehabilitation at Virginia Village and 1952-56 Frank Street in the total amount plus change orders of $950,038. As of June 30, 2017, $319,357 has been incurred and included in construction in progress. As of June 30, 2017, $166,139 remains payable.

CCSM has entered into construction contract for rehabilitation at 2520 Euclid in the total amount plus change orders of $979,110. As of June 30, 2017, $979,110 has been incurred and included in property and equipment. As of June 30, 2017, no amounts remain payable.

NOTE 12-TEMPORARILY RESTRICTED NET ASSETS
Net assets were temporarily restricted for the following purposes at June 30:

Grant for food waste reduction and composing program $ 3,997 Grant for zero net energy rehabilitation project from
City of Santa Monica 50,000
$ 53,997
NOTE 13-FUNCTIONAL EXPENSES
Management of the Corporation presents operating expenses in its accompanying Consolidated Statements of Activities by natural class categories. Operating expenses classified by functional categories for the year ended June 30, 2017 are as follows:

Rental operations $14,981,058
Resident services and activities 11,633
Fundraising -
Management and general 283,320
Total expenses $ 15,276,011
NOTE 14-CONTINGENCIES
Low income housing tax credits
Certain properties have received allocations of low-income housing tax credits. The tax credits are contingent on the applicable partnerships' ability to maintain compliance with applicable sections of Internal Revenue Code Section 42. Failure to maintain compliance with occupant eligibility, and/or unit gross rent, or to correct non-compliance within a specified time period could result in recapture of previously taken tax credits. In addition, such potential noncompliance may require adjustments as disclosed in the properties' partnership or operating agreements.
31 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 14-CONTINGENCIES (CONTINUED)
CCSM
Regulatory agreements between CCSM and the City provide for the City to forgive interest and/or principal on certain mortgage loans payable if the related properties are operated and maintained as affordable housing for the loans’ duration and for extended periods of ten to twenty-five years beyond the loans’ due date, and CCSM complies with certain other provisions of the agreements.

As of June 30, 2017, the cumulative amount of principal and accrued but unpaid and unrecorded interest on these loans amounted to approximately $110,309,000 and $207,860,000, respectively.

CCSM has provided loan and operating deficit guarantees as well as indemnifications with regard to tax benefits for certain limited partnerships. CCSM may be responsible for repaying a loan if the respective limited partnership defaults on the loan. CCSM will cover operating deficits as needed up to a stated limit. A reasonable estimate of the outstanding operating deficit guarantees and outstanding loan guarantees at June 30, 2017 amounted to approximately $1,533,000 and $-0-, respectively. In addition, CCSM has guaranteed an aggregate amount of approximately $11,818,000 to the limited investors for tax credits for various limited partnerships as of June 30, 2017. Management believes that the likelihood CCSM will be required to fund a material amount of any of the guarantees is remote.

In connection with the development of certain affordable housing properties, which are owned by limited partnerships, CCSM has the option to purchase the properties at the close of the properties’ 15-year compliance period.
32 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
NOTE 14-CONTINGENCIES (CONTINUED)
Subsidiaries
Regulatory agreements between certain Subsidiaries and the City provide for the City to forgive principal on certain mortgage loans payable if the related properties are operated and maintained as affordable housing for the loans’ duration and for extended periods of fifteen to twenty-five years beyond the loans’ due dates, and the applicable Subsidiaries comply with certain other provisions of the regulatory agreements. Certain regulatory agreements state forgiveness is subject to the City's discretion, and the remaining state explicitly the forgiveness is available if the Subsidiaries comply with the applicable provisions in the agreements. The applicable Subsidiaries are currently not required to make principal or interest payments on these loans.

The applicable Subsidiaries have not recorded any interest expense or liability related to the interest on the loans subject to forgiveness. Certain interest on other mortgage loans payable for which interest is due at maturity is reflected on the accompanying consolidated financial statements as deferred interest.

As of June 30, 2017, the cumulative amount of principal and accrued but unpaid and unrecorded interest on these loans amounted to approximately $4,162,000 and $18,225,000, respectively.

NOTE 15-SUBSEQUENT EVENTS
On July 12, 2017, CCSM entered into a purchase and sale agreement for the purchase of a property located at 1820 14th Street for a purchase price of $5,250,000. CCSM will enter into a loan agreement with City of Santa Monica to fund the acquisition and construction of the property.

On September 5, 2017, CCSM entered into a purchase and sale agreement for the purchase of a property located at 1448 and 1454 12th Street for a purchase price of $5,000,000. CCSM will enter into a loan agreement with City of Santa Monica to fund the acquisition and construction of the property.

SUPPLEMENTARY INFORMATION - PROPERTIES AND SUBSIDIARIES 33 SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY
JUNE 30, 2017
3 217 225 420 502 504 724 750
3 Vicente 217-225 225 420 502 Ocean 724 750-752
Terrace Bicknell Ave San Vicente Pico Blvd. Colorado Park 43 Pacific Street Marine # of Units 24 13 36 25 44 43 8 8
Assets
Cash and cash equivalents 276,413 $ 32,238 $ 102,908 $ (6,639) $ 16,496 $ 797,147 $ 87,193 $ 91,003 $Restricted cash 210,611 106,331 253,724 105,182 209,590 694,549 140,971 70,435Accounts receivable, net 45 2,104 1,113 673 974 3,077 25 44Prepaid expenses and other current assets 1,250 - - 1,250 - - - - Land 500,000 2,204,369 2,930,000 1,355,304 - 1,278,900 267,362 1,304,343Buildings and improvements 1,374,570 2,289,792 3,700,878 1,975,369 5,575,089 4,584,693 406,691 1,782,150Furniture, fixtures and equipment - - - - - - - - Construction in progress - - - - - - - - 1,874,570 4,494,161 6,630,878 3,330,673 5,575,089 5,863,593 674,053 3,086,493Less: Accumulated depreciation (744,332) (291,707) (926,035) (570,335) (1,508,896) (3,222,973) (304,684) (264,725) Property and equipment, net 1,130,238 4,202,454 5,704,843 2,760,338 4,066,193 2,640,620 369,369 2,821,768 Due (to) from Subsidiaries and Properties (1,162) (2,239) (3,226) (1,801) (3,244) (9,439) (1,101) (639) Total assets 1,617,395 $ 4,340,888 $ 6,059,362 $ 2,859,003 $ 4,290,009 $ 4,125,954 $ 596,457 $ 2,982,611 $ Liabilities and net assets (deficit)
Accounts payable and accrued expenses 14,338 $ 1,473 $ 18,219 $ 8,251 $ 54,528 $ 52,965 $ 1,173 $ 814 $Accrued and deferred interest payable 171,458 25,318 8,653 2,379 596,342 53,991 482 15,549Security deposits 14,176 8,482 19,499 15,105 17,978 37,505 5,546 6,817Long-term debt 1,117,106 4,468,551 5,822,658 2,705,761 5,451,767 1,631,971 274,177 3,026,524Less: unamortized debt issuance costs, net (277) - (16,132) (4,397) (3,129) (13,671) (3,655) - Total liabilities 1,316,801 4,503,824 5,852,897 2,727,099 6,117,486 1,762,761 277,723 3,049,704 Net assets (deficit) 300,594 (162,936) 206,465 131,904 (1,827,477) 2,363,193 318,734 (67,093) Total liabilities and net assets (deficit) 1,617,395 $ 4,340,888 $ 6,059,362 $ 2,859,003 $ 4,290,009 $ 4,125,954 $ 596,457 $ 2,982,611 $

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) 34 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
807 813 821 844 855 911 914 915807 813 821 844 855 911 914 915-929 Ozone/ 4th Street 9th Street 11th Street Lincoln Blvd. Bay Street 2nd Street 4th Street 1002 Marine 17 10 10 10 14 16 16 30
95,344 $ 90,469 $ 80,202 $ 62,425 $ 73,724 $ 82,486 $ 102,218 $ 89,341 $ 186,153 62,566 70,616 80,006 191,815 183,257 119,518 227,532 80 424 38 1,262 2,011 4,259 10 937 - - - - - - - - 631,004 927,889 580,644 1,504,257 807,124 751,917 3,006,235 702,294 1,166,353 737,826 616,033 2,086,888 789,337 907,608 3,193,649 1,599,501 5,249 - - - - - - 5,584 - - - - - - - 700
1,802,606 1,665,715 1,196,677 3,591,145 1,596,461 1,659,525 6,199,884 2,308,079 (456,140) (207,247) (207,104) (300,247) (299,082) (304,694) (431,749) (704,295) 1,346,466 1,458,468 989,573 3,290,898 1,297,379 1,354,831 5,768,135 1,603,784 (709) (532) (904) (610) (844) (1,109) (498) (1,428)
1,627,334 $ 1,611,395 $ 1,139,525 $ 3,433,981 $ 1,564,085 $ 1,623,724 $ 5,989,383 $ 1,920,166 $ 18,957 $ 1,448 $ 10,526 $ 821 $ 9,638 $ 1,407 $ 1,978 $ 6,868 $ 540 7,983 618 3,817 14,534 6,959 30,343 - 12,472 3,515 5,298 5,274 9,590 9,390 14,536 13,296 819,838 1,577,621 1,096,929 3,565,399 1,451,763 1,475,615 6,052,795 1,301,488 (5,510) (1,044) (5,469) - (4,744) (2,469) - - 846,297 1,589,523 1,107,902 3,575,311 1,480,781 1,490,902 6,099,652 1,321,652 781,037 21,872 31,623 (141,330) 83,304 132,822 (110,269) 598,514 1,627,334 $ 1,611,395 $ 1,139,525 $ 3,433,981 $ 1,564,085 $ 1,623,724 $ 5,989,383 $ 1,920,166 $ 35 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
937 1017 1038 1118 1143 1149 1206 1227937 1017 1038 1118 1143 1149 1206 1227 11th Street 4th Street 2nd Street 5th Street 12th Street 12th Street Pico Blvd. 9th Street 11 16 15 10 11 14 26 10
62,377 $ 87,085 $ 38,445 $ 82,032 $ 75,995 $ 71,696 $ 65,197 $ 59,253 $ 105,191 138,255 154,013 86,453 127,818 142,664 86,985 144,057 - 1,906 250 8 134 695 2,314 1,910 - - - - - - - - 346,733 752,024 900,000 351,760 400,975 280,975 669,480 601,432778,693 1,110,441 938,998 694,128 754,102 1,019,518 1,023,536 363,785 3,035 3,315 - 1,496 2,818 5,038 - - - - (1,032) - - - - - 1,128,461 1,865,780 1,837,966 1,047,384 1,157,895 1,305,531 1,693,016 965,217 (294,644) (378,567) (392,702) (256,350) (274,803) (373,126) (368,052) (147,712) 833,817 1,487,213 1,445,264 791,034 883,092 932,405 1,324,964 817,505 (855) (840) (2,159) (807) (789) (681) (1,340) (1,317)
1,000,530 $ 1,713,619 $ 1,635,813 $ 958,720 $ 1,086,250 $ 1,146,779 $ 1,478,120 $ 1,021,408 $ 4,287 $ 3,270 $ 3,524 $ 13,775 $ 888 $ 3,774 $ 8,478 $ 1,184 $ 312 16,123 179,226 269 371 159 20,541 4,016
7,896 11,321 10,627 4,276 8,150 7,814 15,945 6,369
743,306 1,580,398 1,278,456 768,146 623,980 672,399 1,176,905 835,281 (3,950) (4,984) - (3,007) (4,083) (2,647) (4,557) (4,467) 751,851 1,606,128 1,471,833 783,459 629,306 681,499 1,217,312 842,383248,679 107,491 163,980 175,261 456,944 465,280 260,808 179,025 1,000,530 $ 1,713,619 $ 1,635,813 $ 958,720 $ 1,086,250 $ 1,146,779 $ 1,478,120 $ 1,021,408 $ 36 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
1314 1343 1344 1427 143825 1513 1514 16161314 1343-45 1344 1427 1438 1513 1514-18 1616 & 419 18th Street 11th Street 14th Street Berkeley 25th Street Centinela 14th Street Ocean Ave 6 8 11 7 12 8 36 25
95,199 $ 71,277 $ 74,787 $ 67,404 $ 75,959 $ 99,761 $ 105,210 $ 15,904 $ 117,703 93,744 109,879 124,642 63,949 65,911 299,140 4,296 8,076 174 214 38 357 16 2,147 5 - - - - - - - 1,250
195,000 251,915 482,012 140,000 1,733,340 1,133,001 1,022,803 7,923483,878 476,251 528,652 590,802 2,904,986 1,736,511 2,660,129 - - - - - - - 3,993 - - - 963 - - - - 98,441678,878 728,166 1,011,627 730,802 4,638,326 2,869,512 3,686,925 106,364 (298,158) (131,607) (178,369) (383,915) (362,003) (253,408) (907,931) - 380,720 596,559 833,258 346,887 4,276,323 2,616,104 2,778,994 106,364 (393) (1,078) (500) (2,088) (801) (349) (948) (553)
601,305 $ 760,676 $ 1,017,638 $ 536,883 $ 4,415,787 $ 2,781,443 $ 3,184,543 $ 127,266 $ 4,973 $ 1,787 $ 412 $ 1,066 $ 1,845 $ 1,629 $ 6,138 $ 39,420 $ 342 187 14,509 418 11,648 15,683 16,394 - 3,976 5,845 5,782 5,847 7,742 4,838 21,265 4,295 263,134 349,939 924,937 350,481 4,517,379 2,811,672 3,454,795 65,985 (2,289) - (5,080) (2,683) - - (7,944) - 270,136 357,758 940,560 355,129 4,538,614 2,833,822 3,490,648 109,700 331,169 402,918 77,078 181,754 (122,827) (52,379) (306,105) 17,566601,305 $ 760,676 $ 1,017,638 $ 536,883 $ 4,415,787 $ 2,781,443 $ 3,184,543 $ 127,266 $ 37 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
1629 1719 1808 1827 1845 1917 1925 19371629 1719-21 1808 1827 1845 1917 1925-33 1937 Michigan Ave California Ave. 17th Street 19th Street 17th Street 17th Street 20th Street 18th Street 4 15 6 6 8 7 34 6
78,336 $ 87,185 $ 84,486 $ 93,421 $ 115,612 $ 91,802 $ 219,778 $ 77,391 $89,444 106,600 108,555 116,893 132,213 105,526 323,443 83,460 580 26 34 8 251 - 1,447 1,009 - - - - - - - - 84,564 1,298,739 128,162 126,518 140,632 146,979 1,563,415 111,374 227,998 1,309,632 302,648 326,510 397,489 281,693 2,247,483 361,110 - - - - - - - - - - - - - - - - 312,562 2,608,371 430,810 453,028 538,121 428,672 3,810,898 472,484 (119,357) (391,641) (200,849) (203,931) (324,682) (156,194) (866,370) (221,583) 193,205 2,216,730 229,961 249,097 213,439 272,478 2,944,528 250,901 (437) (380) (439) (2,358) (623) (471) (296) 9,305
361,128 $ 2,410,161 $ 422,597 $ 457,061 $ 460,892 $ 469,335 $ 3,488,900 $ 422,066 $ 626 $ 3,146 $ 681 $ 2,280 $ 3,473 $ 691 $ 5,658 $ 13,953 $283 4,137 389 386 - 38 67,278 - 4,050 10,532 6,000 4,584 5,728 5,175 20,674 4,354 177,721 2,452,672 274,361 290,792 130,000 193,281 3,285,838 128,313 (2,541) (3,782) (3,139) (3,124) - - (6,259) - 180,139 2,466,705 278,292 294,918 139,201 199,185 3,373,189 146,620 180,989 (56,544) 144,305 162,143 321,691 270,150 115,711 275,446361,128 $ 2,410,161 $ 422,597 $ 457,061 $ 460,892 $ 469,335 $ 3,488,900 $ 422,066 $ 38 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
1943 1944 1952 1959 2009 2017 202814 20291943 1944 1952-56 1959 2009-2015 2017-23 2028 2029-2031 17th Street 20th Street Frank Street Cloverfield Cloverfield 20th Street 14th Street 20th Street 7 8 5 62 10 12 22 12
55,058 $ 105,220 $ 37,052 $ 213,218 $ 76,782 $ 83,123 $ 150,523 $ 118,267 $93,167 56,380 35,535 610,578 108,170 157,267 202,994 101,801 - 103 18 1,126 (10) - 45 40 - - - 5,000 - - - - 123,405 990,719 211,735 717,298 200,000 115,613 1,412,560 1,629,406 401,934 1,967,641 255,251 3,217,993 450,966 547,159 1,279,915 2,803,976 - - - - - - - - - - 92,034 - - - - - 525,339 2,958,360 559,020 3,935,291 650,966 662,772 2,692,475 4,433,382 (244,893) (375,046) (123,007) (1,925,883) (226,118) (453,586) (402,391) (391,254) 280,446 2,583,314 436,013 2,009,408 424,848 209,186 2,290,084 4,042,128 (1,585) (564) (1,858) (488) (1,663) (1,685) (276) (1,124) 427,086 $ 2,744,453 $ 506,760 $ 2,838,842 $ 608,127 $ 447,891 $ 2,643,370 $ 4,261,112 $ (636) $ 2,413 $ 50,069 $ (5,553) $ 662 $ 15,956 $ 13,149 $ 1,441 $ 225 27,988 165,193 2,297 91 - 16,525 25,843
2,804 9,087 2,760 42,151 6,552 6,321 18,487 7,374
272,772 2,805,932 257,996 1,805,808 280,394 126,000 2,083,183 4,386,515 (1,707) - (633) (10,640) (150) - (4,522) - 273,458 2,845,420 475,385 1,834,063 287,549 148,277 2,126,822 4,421,173 153,628 (100,967) 31,375 1,004,779 320,578 299,614 516,548 (160,061)427,086 $ 2,744,453 $ 506,760 $ 2,838,842 $ 608,127 $ 447,891 $ 2,643,370 $ 4,261,112 $ 39 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
2112 21204 2121 2122 2207 2211 2243 2260
2112-20 2120 2121 2122 2207 6th St., 2211 2243-47 2260-68 Delaware 4th Street Arizona Ave Pico Blvd. 2402 5th St. 4th Street 28th Street 28th Street 38 27 11 8 12 22 12 12
248,182 $ 139,947 $ 94,269 $ 81,631 $ 168,687 $ 54,890 $ 62,102 $ 89,350 $267,571 222,789 159,126 44,526 267,216 141,533 87,916 107,827 49 24 59 15 564 71 579 339 - - - - - - - - 1,860,000 2,293,483 670,000 588,292 337,306 2,040,548 817,423 857,069 3,499,832 1,672,517 837,015 417,628 1,003,735 5,034,047 1,229,112 780,789 - - - - - - - - - - - - - - - - 5,359,832 3,966,000 1,507,015 1,005,920 1,341,041 7,074,595 2,046,535 1,637,858 (1,019,162) (527,350) (510,628) (107,990) (608,710) (888,290) (330,535) (239,941) 4,340,670 3,438,650 996,387 897,930 732,331 6,186,305 1,716,000 1,397,917 (1,137) (3,100) (433) (285) (791) (1,076) (203) (1,620) 4,855,335 $ 3,798,310 $ 1,249,408 $ 1,023,817 $ 1,168,007 $ 6,381,723 $ 1,866,394 $ 1,593,813 $ 2,663 $ 3,828 $ 1,100 $ 2,178 $ 7,864 $ 88,207 $ 3,125 $ 1,504 $ 22,485 42,522 425 - 959 - 521 5,25715,082 19,896 8,918 3,456 7,697 18,537 6,083 7,836 4,305,127 3,375,169 191,455 813,918 246,429 6,718,370 1,909,294 1,489,225 (6,829) (3,642) (505) - (6,118) - (3,532) (1,526)
4,338,528 3,437,773 201,393 819,552 256,831 6,825,114 1,915,491 1,502,296 516,807 360,537 1,048,015 204,265 911,176 (443,391) (49,097) 91,517 4,855,335 $ 3,798,310 $ 1,249,408 $ 1,023,817 $ 1,168,007 $ 6,381,723 $ 1,866,394 $ 1,593,813 $ 40 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
2302 2309 2320 2404 2418 2428 2449 25202302 2309-2315 2320 2404-2410 2418 2428-32 2449-2501 2520 Euclid 5th Street Oak Street 34th Street Kansas 5th Street 34th Street Centinela 1219-1221 OP 6 12 6 10 6 12 20 10
67,922 $ 94,174 $ 46,610 $ 69,450 $ 76,288 $ 8,924 $ 79,127 $ 183,985 $ 102,769 69,241 35,382 64,522 28,241 53,081 124,418 22,517 8 82 186 15 - 724 30 33 - - - - - - - - 121,353 1,085,813 828,005 736,925 763,246 598,647 1,468,329 2,804,756 381,635 2,220,962 1,059,662 1,023,072 1,172,943 964,004 1,185,849 2,510,319 - - - - - - - - - - - - - - - - 502,988 3,306,775 1,887,667 1,759,997 1,936,189 1,562,651 2,654,178 5,315,075 (247,207) (145,456) (163,938) (265,378) (173,498) (268,891) (347,351) (63,800) 255,781 3,161,319 1,723,729 1,494,619 1,762,691 1,293,760 2,306,827 5,251,275 (502) (584) (3,557) (600) (1,870) (1,100) (2,400) (2,991) 425,978 $ 3,324,232 $ 1,802,350 $ 1,628,006 $ 1,865,350 $ 1,355,389 $ 2,508,002 $ 5,454,819 $ 816 $ 2,499 $ (2,785) $ 7,183 $ 1,874 $ 483 $ 21,629 $ 1,185 $393 50,014 - 4,992 9,101 - 855 175,010 5,195 4,950 3,103 5,274 3,559 5,262 9,537 9,865
286,456 3,360,129 1,837,788 1,629,270 1,908,671 1,542,847 2,453,465 5,412,267 (2,589) - - (1,586) - - (2,744) - 290,271 3,417,592 1,838,106 1,645,133 1,923,205 1,548,592 2,482,742 5,598,327 135,707 (93,360) (35,756) (17,127) (57,855) (193,203) 25,260 (143,508)425,978 $ 3,324,232 $ 1,802,350 $ 1,628,006 $ 1,865,350 $ 1,355,389 $ 2,508,002 $ 5,454,819 $ 41 # of Units
Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Due (to) from Subsidiaries and Properties
Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY PROPERTY (CONTINUED) JUNE 30, 2017
2525 2608 2625 2900 2907 TOTAL
2525-2533 2608-18 2625 2900 2907 COMBINED
Kansas Street 28th Street Kansas Street 4th Street 3rd Street BUILDINGS 20 12 16 19 11 1,076
127,655 $ 79,496 $ 96,863 $ 76,697 $ 60,626 $ 6,914,678 $280,080 108,476 216,541 89,986 75,897 9,779,237 71 346 20 949 22 44,183 - - - - - 8,750
270,865 806,989 516,846 2,192,059 626,946 59,307,034906,176 826,083 700,457 3,631,701 1,122,662 97,410,435 - - - - - 30,528 - - - - - 191,106 1,177,041 1,633,072 1,217,303 5,823,760 1,749,608 156,939,103 (767,401) (252,141) (525,477) (688,709) (327,955) (30,842,185) 409,640 1,380,931 691,826 5,135,051 1,421,653 126,096,918 (349) (246) (157) (232) (175) (73,333)
817,097 $ 1,569,003 $ 1,005,093 $ 5,302,451 $ 1,558,023 $ 142,770,433 $ 3,557 $ 6,137 $ 3,555 $ 5,523 $ 1,924 $ 571,912 $ - 12,295 - 1,259 11,212 1,867,137 12,264 7,589 9,898 9,270 7,885 668,256
231,430 1,497,652 189,070 5,725,786 1,622,452 127,955,004 - (1,584) - - (1,784) (175,124) 247,251 1,522,089 202,523 5,741,838 1,641,689 130,887,185569,846 46,914 802,570 (439,387) (83,666) 11,883,248817,097 $ 1,569,003 $ 1,005,093 $ 5,302,451 $ 1,558,023 $ 142,770,433 $ 42 SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY JUNE 30, 2017
3 217 225 420 502 504 724 750 807 813 821 844
3 Vicente 217-225 225 420 502 Ocean 724 750-752 807 813 821 844 Terrace Bicknell Ave San Vicente Pico Blvd. Colorado Park 43 Pacific Marine 4th Street 9th Street 11th Street Lincoln Blvd. # of Units 24 13 36 25 44 43 8 8 17 10 10 10
Revenues:

Rental fees, net of vacancy 214,276 $ 128,833 $ 428,630 $ 224,299 $ 285,378 $ 702,422 $ 126,547 $ 108,273 $ 199,900 $ 95,211 $ 93,583 $ 97,786 $Debt forgiveness - - 25,375 22,924 - - - - - - - - Grants - - - - - - - - - - - - Interest 169 60 285 50 123 873 114 64 252 53 98 64Other 448 242 671 466 821 802 149 149 317 187 187 187 Total revenues 214,893 129,135 454,961 247,739 286,322 704,097 126,810 108,486 200,469 95,451 93,868 98,037 Expenses:

Salaries 14,721 7,153 21,325 14,580 27,475 23,691 5,554 4,859 10,256 5,518 5,455 6,306Payroll taxes 1,107 537 1,602 1,095 2,066 1,777 418 365 771 414 409 474Employee benefits 1,049 567 1,580 1,100 1,935 1,891 352 352 748 440 440 440Legal and professional 1,044 (277) 1,565 1,088 1,914 1,871 348 348 740 435 435 435Loss on disposal of buildings and improvements - - - - - - - - - - - - Consultants 772 294 558 565 1,684 2,301 180 181 543 226 226 226Office and administration 7,516 3,569 4,954 3,347 14,759 5,543 923 878 1,956 1,118 975 1,836Insurance 3,584 3,768 9,574 5,717 10,303 9,554 1,721 1,998 2,808 1,859 1,810 1,929Maintenance and repairs 43,107 25,986 69,901 47,540 110,890 89,972 19,967 18,906 18,068 10,202 26,888 28,243Maintenance service fees interfund 16,061 5,305 17,526 13,644 24,449 51,761 6,726 3,297 5,277 6,092 3,058 8,165Property management fees interfund 22,608 12,246 33,912 23,550 33,264 40,506 7,536 7,536 16,014 9,420 9,420 9,420Bookkeeping fees interfund 4,723 2,558 7,085 4,920 5,016 8,462 1,574 1,574 3,346 1,968 1,968 1,968Resident service fees interfund 1,238 671 1,858 1,290 9,000 2,219 413 413 877 516 516 516Gardening and grounds 450 4,205 5,267 960 3,600 25,350 6,316 3,144 1,500 2,874 2,700 2,685Pest control 2,653 586 1,832 1,147 2,736 3,332 385 700 589 950 630 685Utilities 18,333 9,334 31,050 22,365 48,057 46,529 12,835 7,092 10,011 8,998 8,834 8,247Property taxes 1,581 6,871 28,535 14,198 11,333 36,230 1,523 16,977 3,818 7,189 4,567 7,627Rent control fees 1,820 1,247 2,387 1,402 - - 455 560 910 455 849 933Workers compensation 528 220 732 489 1,005 723 228 173 360 171 166 234 Total expenses before interest and depreciation 142,895 84,840 241,243 158,997 309,486 351,712 67,454 69,353 78,592 58,845 69,346 80,369 Net operating income 71,998 44,295 213,718 88,742 (23,164) 352,385 59,356 39,133 121,877 36,606 24,522 17,668 Interest 8,445 25,318 86,307 45,660 48,938 82,424 7,535 15,549 11,898 17,405 16,779 3,817Depreciation 36,571 46,011 76,938 39,162 115,197 143,402 15,241 34,807 26,799 13,943 12,526 38,545 Total interest and depreciation 45,016 71,329 163,245 84,822 164,135 225,826 22,776 50,356 38,697 31,348 29,305 42,362 Changes in net assets (deficit) 26,982 (27,034) 50,473 3,920 (187,299) 126,559 36,580 (11,223) 83,180 5,258 (4,783) (24,694)Net assets (deficit), beginning of year, after change in accounting principle 318,612 (135,902) 180,992 127,984 (1,647,297) 2,486,634 432,154 4,130 922,857 36,614 36,406 (76,636) Intercompany transfer (45,000) - (25,000) - 7,119 (250,000) (150,000) (60,000) (225,000) (20,000) - (40,000) Net assets (deficit), end of year 300,594 $ (162,936) $ 206,465 $ 131,904 $ (1,827,477) $ 2,363,193 $ 318,734 $ (67,093) $ 781,037 $ 21,872 $ 31,623 $ (141,330) $

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) 43 # of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessGrantsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in accounting principle Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2017
855 911 914 915 937 1017 1038 1118 1143 1149 1206 1227
855 Bay St/ 911 914 915-929 Ozone/ 937 1017 1038 1118 1143 1149 1206 1227 1916-26 10th St 2nd Street 4th Street 1002 Marine 11th Street 4th Street 2nd Street 5th Street 12th Street 12th Street Pico Blvd. 9th Street 14 16 16 30 11 16 15 10 11 14 26 10
146,836 $ 142,622 $ 168,644 $ 253,220 $ 125,211 $ 161,231 $ 132,813 $ 102,551 $ 130,326 $ 144,433 $ 196,340 $ 94,707 $ - - - - - - - - - - - - - - - - - - - - - - - - 239 235 113 141 118 174 94 117 164 186 49 161 261 298 298 560 205 298 280 187 205 261 485 187
147,336 143,155 169,055 253,921 125,534 161,703 133,187 102,855 130,695 144,880 196,874 95,055 8,426 9,778 9,987 20,582 6,417 10,383 8,618 5,733 6,475 8,273 15,475 5,518 633 735 751 1,550 482 781 647 430 486 621 1,163 414616 704 704 1,319 484 704 660 440 484 616 1,144 440609 3,851 696 1,305 479 696 653 435 479 609 1,131 6,164 - - - - - - - - - - - - 316 361 361 678 249 520 339 226 249 316 1,288 226 1,495 3,366 1,703 4,411 1,530 2,559 1,612 1,247 983 1,453 2,695 1,2073,385 2,722 5,041 3,892 2,136 2,854 2,290 2,092 1,998 2,304 4,604 1,471 27,450 29,008 13,641 45,446 36,064 16,346 18,506 15,237 30,465 21,090 27,062 19,780 4,991 8,369 6,408 25,419 8,055 6,428 13,152 7,750 7,161 8,033 9,062 5,584 13,188 15,072 15,072 28,260 10,362 15,072 12,330 9,420 10,362 13,188 21,216 9,420 2,755 3,149 3,149 5,903 2,161 3,149 1,710 1,968 2,165 2,755 5,117 1,968 722 826 826 1,548 568 823 630 516 568 722 1,342 516
5,369 1,700 3,350 9,342 1,080 2,600 5,267 1,500 1,080 3,300 5,640 5,0881,118 3,553 865 2,943 517 1,002 10,233 2,432 229 229 1,024 1,0468,186 8,375 12,755 20,327 8,245 16,316 22,083 9,168 9,331 7,156 22,388 5,0247,291 3,945 15,190 2,396 5,970 9,388 2,617 5,613 4,113 3,742 2,946 1,260 357 740 1,448 2,148 930 827 1,001 546 462 729 - 157295 350 367 841 215 396 284 186 220 282 531 171 87,202 96,604 92,314 178,310 85,944 90,844 102,632 64,939 77,310 75,418 123,828 65,45460,134 46,551 76,741 75,611 39,590 70,859 30,555 37,916 53,385 69,462 73,046 29,601 23,348 16,012 30,343 - 7,621 39,936 21,489 6,812 9,393 4,145 36,410 11,31318,785 20,808 60,467 41,310 17,360 24,183 54,722 13,660 20,154 24,472 39,352 10,852 42,133 36,820 90,810 41,310 24,981 64,119 76,211 20,472 29,547 28,617 75,762 22,16518,001 9,731 (14,069) 34,301 14,609 6,740 (45,656) 17,444 23,838 40,845 (2,716) 7,436 180,303 248,091 103,800 664,213 234,070 180,751 209,636 207,817 493,106 564,435 263,524 171,589 (115,000) (125,000) (200,000) (100,000) - (80,000) - (50,000) (60,000) (140,000) - - 83,304 $ 132,822 $ (110,269) $ 598,514 $ 248,679 $ 107,491 $ 163,980 $ 175,261 $ 456,944 $ 465,280 $ 260,808 $ 179,025 $ 44 # of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessGrantsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in accounting principle Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2017
1314 1343 1344 1427 143825 1513 1514 1616 1629 1719 1808 18271314 1343-45 1344 1427 1438 1513 1514-18 1616 & 419 1629 1719-21 1808 1827 18th Street 11th Street 14th Street Berkeley 25th Street Centinela 14th Street Ocean Ave Michigan Ave California 17th Street 19th Street 6 8 11 7 12 8 36 25 4 15 6 6
81,528 $ 93,129 $ 121,834 $ 96,450 $ 158,774 $ 101,182 $ 342,219 $ 112,258 $ 79,566 $ 145,502 $ 104,938 $ 103,775 $ - - - - - - - - - - - - - - - - - - - 50,000 - - - - 122 63 137 118 65 67 341 2 68 81 86 110 112 149 205 131 224 149 671 202 75 280 112 112
81,762 93,341 122,176 96,699 159,063 101,398 343,231 162,462 79,709 145,863 105,136 103,997 3,921 5,325 6,141 5,347 6,892 4,978 21,825 7,284 2,336 8,158 3,671 3,490 295 401 461 403 517 374 1,640 556 175 612 276 262264 352 484 308 528 352 1,583 537 176 660 264 264261 348 479 305 522 348 1,566 332 174 653 261 261 - - - - - - - - - - - - 135 181 249 158 271 181 814 306 90 339 135 135 6,946 903 1,252 797 1,217 1,026 9,485 1,201 574 1,529 749 9211,430 1,530 1,951 1,895 3,242 1,738 9,963 5,388 879 3,033 1,393 1,372 43,641 8,666 15,162 37,344 7,315 11,057 90,930 22,206 6,965 30,715 12,771 30,916 4,412 4,810 4,101 6,799 9,562 3,754 12,898 18,669 2,426 4,906 3,850 5,5025,652 7,536 10,362 6,594 11,304 7,536 33,912 12,246 3,768 14,130 5,652 5,6521,181 1,574 2,165 1,378 2,362 1,574 7,085 2,345 787 2,952 1,181 1,181 310 413 568 361 619 413 1,858 671 206 774 310 310
3,829 3,000 1,800 6,040 4,109 3,290 2,600 9,540 4,445 7,486 5,387 4,375 445 1,525 505 1,249 745 600 942 2,697 457 1,262 1,443 588 6,335 5,137 9,990 8,247 12,268 6,834 27,739 21,408 4,376 10,468 6,601 10,5433,098 2,516 3,993 2,960 26,082 17,123 4,849 36,590 4,527 14,048 2,525 2,082 630 364 182 441 1,176 637 1,904 2,659 - 1,207 - - 152 209 193 239 227 183 774 261 78 247 132 117 82,937 44,790 60,038 80,865 88,958 61,998 232,367 144,896 32,439 103,179 46,601 67,971 (1,175) 48,551 62,138 15,834 70,105 39,400 110,864 17,566 47,270 42,684 58,535 36,026 5,440 3,155 30,951 6,637 11,648 15,683 62,246 - 4,486 23,905 6,099 6,067 12,232 10,299 11,392 13,394 55,443 32,515 53,134 - 8,768 26,796 6,130 6,770 17,672 13,454 42,343 20,031 67,091 48,198 115,380 - 13,254 50,701 12,229 12,837 (18,847) 35,097 19,795 (4,197) 3,014 (8,798) (4,516) 17,566 34,016 (8,017) 46,306 23,189 560,016 397,821 107,283 385,951 (60,841) 31,419 (226,589) - 206,973 1,473 197,999 313,954 (210,000) (30,000) (50,000) (200,000) (65,000) (75,000) (75,000) - (60,000) (50,000) (100,000) (175,000) 331,169 $ 402,918 $ 77,078 $ 181,754 $ (122,827) $ (52,379) $ (306,105) $ 17,566 $ 180,989 $ (56,544) $ 144,305 $ 162,143 $ 45 # of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessGrantsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in accounting principle Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2017
1845 1917 1925 1937 1943 1944 1952 1959 2009 2017 202814 20291845 1917 1925-33 1937 1943 1944 1952-56 1959 2009-2015 2017-23 2028 2029-2031 17th Street 17th Street 20th Street 18th Street 17th Street 20th Street Frank Street Cloverfield Cloverfield 20th Street 14th Street 20th Street 8 7 34 6 7 8 5 62 10 12 22 12
122,817 $ 95,953 $ 428,966 $ 88,638 $ 77,180 $ 125,334 $ 50,356 $ 794,956 $ 106,549 $ 135,119 $ 218,592 $ 130,786 $ - - - - - 5,700 - - - - 23,187 - - - - - - - - - - - - - 141 70 302 59 55 86 17 481 77 103 155 89 149 131 634 1,111 130 145 93 1,156 187 224 410 224
123,107 96,154 429,902 89,808 77,365 131,265 50,466 796,593 106,813 135,446 242,344 131,099 4,891 4,290 20,626 3,614 4,019 5,814 4,200 36,496 5,995 6,809 12,581 7,880 368 322 1,550 272 302 438 317 2,742 450 511 945 593352 308 1,495 264 308 352 220 2,727 440 528 968 528348 305 1,479 4,261 305 348 218 2,698 435 522 957 522 - - - - - - - - - - - - 296 158 941 135 158 181 113 1,655 226 271 497 904 1,959 852 5,091 754 842 850 1,185 12,863 1,225 1,228 2,148 1,2711,686 1,292 8,411 1,468 1,399 2,226 1,716 15,309 2,006 2,524 3,671 2,206 11,796 9,634 59,882 17,809 13,385 9,519 7,590 123,155 22,182 20,715 24,444 6,800 5,137 5,362 20,637 6,953 4,028 3,171 3,907 42,074 5,141 7,941 6,834 3,8247,536 6,594 32,028 4,464 6,594 7,536 4,710 58,404 9,420 11,304 20,724 11,3041,574 1,378 6,691 1,080 1,378 1,574 984 12,202 1,968 2,362 4,330 2,362 413 361 1,754 288 361 413 258 3,199 516 619 1,135 619
3,705 4,745 7,328 3,475 2,160 2,400 5,380 14,428 5,234 5,960 6,891 3,129 585 457 3,232 385 457 553 385 4,477 1,148 785 1,192 745 7,763 4,857 30,384 6,010 8,529 7,310 5,643 53,575 7,704 15,432 17,262 8,1554,772 2,762 9,981 1,371 2,134 17,901 3,704 16,889 1,781 2,499 9,508 15,314 546 546 1,907 - 546 728 364 4,405 683 910 1,819 910175 154 731 127 133 249 202 1,242 209 220 411 306 53,902 44,377 214,148 52,730 47,038 61,563 41,096 408,540 66,763 81,140 116,317 67,37269,205 51,777 215,754 37,078 30,327 69,702 9,370 388,053 40,050 54,306 126,027 63,727 - 211 98,988 3,633 3,602 27,988 9,062 34,913 799 - 42,731 25,843 12,611 7,929 56,727 8,794 9,400 38,361 6,579 101,008 11,317 20,983 26,636 51,887 12,611 8,140 155,715 12,427 13,002 66,349 15,641 135,921 12,116 20,983 69,367 77,73056,594 43,637 60,039 24,651 17,325 3,353 (6,271) 252,132 27,934 33,323 56,660 (14,003) 565,097 256,513 605,672 280,795 136,303 95,680 (37,354) 1,552,647 332,644 341,291 634,888 (46,058) (300,000) (30,000) (550,000) (30,000) - (200,000) 75,000 (800,000) (40,000) (75,000) (175,000) (100,000) 321,691 $ 270,150 $ 115,711 $ 275,446 $ 153,628 $ (100,967) $ 31,375 $ 1,004,779 $ 320,578 $ 299,614 $ 516,548 $ (160,061) $ 46 # of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessGrantsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in accounting principle Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2017
2112 21204 2121 2122 2207 2211 2243 2260 2302 2309 2320 2404 2112-2120 2120 2121 2122 2207 6th St., 2211 2243-47 2260-2268 2302 2309-2315 2320 2404-10 Delaware 4th Street Arizona Ave Pico Blvd. 2402 5th St. 4th Street 28th Street 28th Street 5th Street Oak Street 34th Street Kansas Ave 38 27 11 8 12 22 12 12 6 12 6 10
328,383 $ 297,623 $ 182,877 $ 58,007 $ 202,518 $ 226,300 $ 116,771 $ 131,339 $ 73,352 $ 139,687 $ 62,926 $ 111,320 $ 38,002 16,324 - 13,215 - - - - - - - - - - - - - - - - - - - - 197 225 102 39 234 138 66 90 67 70 31 45 709 502 205 149 224 410 224 224 112 224 112 187
367,291 314,674 183,184 71,410 202,976 226,848 117,061 131,653 73,531 139,981 63,069 111,552 21,571 14,700 6,268 4,853 6,980 12,533 6,712 6,449 4,067 7,598 4,090 6,542 1,619 1,103 471 365 524 941 503 484 306 571 306 4921,671 1,188 484 352 528 968 528 528 264 528 262 4401,653 1,175 479 348 1,222 957 522 522 1,710 522 261 435 - - - - - - 990 - - - - - 1,031 1,013 421 181 271 2,097 271 271 135 271 135 2264,742 3,985 2,264 960 1,814 38,709 4,861 1,057 700 1,418 596 8987,606 6,181 2,639 1,069 3,597 4,776 2,420 2,346 1,307 1,932 1,247 1,802 42,676 30,693 25,281 10,025 32,430 24,166 17,810 28,461 10,531 7,069 20,828 25,54311,989 12,289 5,780 4,656 9,698 12,723 5,302 7,081 5,757 9,379 3,735 7,07635,796 25,434 10,362 5,760 11,304 20,724 11,304 11,304 5,652 11,304 5,652 9,420 7,478 5,314 2,165 1,574 2,362 4,330 2,362 2,362 1,181 2,362 1,181 1,9681,961 1,393 568 413 619 1,135 619 619 310 619 310 5169,591 9,400 5,263 2,969 11,394 3,420 4,462 3,702 1,918 15,506 5,970 4,500 889 673 1,135 790 1,515 1,653 601 601 635 1,488 505 577 30,492 24,243 15,431 5,793 15,249 16,598 8,071 6,612 5,093 5,566 5,346 11,25520,812 11,963 7,546 3,460 11,955 28,867 20,888 11,726 2,656 10,608 9,623 3,395 3,366 1,819 1,001 637 - 1,694 1,001 1,026 - 910 487 364 697 445 204 172 233 407 213 191 163 284 165 252
205,640 153,011 87,762 44,377 111,695 176,698 89,440 85,342 42,385 77,935 60,699 75,701161,651 161,663 95,422 27,033 91,281 50,150 27,621 46,311 31,146 62,046 2,370 35,851 54,251 71,557 4,104 - 12,895 - 14,156 21,978 6,246 50,014 - 19,63171,478 34,679 17,253 7,927 24,506 93,265 23,552 16,351 8,002 41,985 19,738 20,329 125,729 106,236 21,357 7,927 37,401 93,265 37,708 38,329 14,248 91,999 19,738 39,960 35,922 55,427 74,065 19,106 53,880 (43,115) (10,087) 7,982 16,898 (29,953) (17,368) (4,109) 580,885 755,110 1,023,950 195,159 1,212,296 (150,276) 990 183,535 138,809 6,593 (18,388) (13,018) (100,000) (450,000) (50,000) (10,000) (355,000) (250,000) (40,000) (100,000) (20,000) (70,000) - - 516,807 $ 360,537 $ 1,048,015 $ 204,265 $ 911,176 $ (443,391) $ (49,097) $ 91,517 $ 135,707 $ (93,360) $ (35,756) $ (17,127) $ 47 # of Units
Revenues:

Rental fees, net of vacancyDebt forgivenessGrantsInterestOther Total revenues
Expenses:

SalariesPayroll taxesEmployee benefitsLegal and professionalLoss on disposal of buildings and improvementsConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesRent control feesWorkers compensation Total expenses before interest and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in accounting principle Intercompany transfer
Net assets (deficit), end of year

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY PROPERTY (CONTINUED) JUNE 30, 2017
2418 2428 2449 2520 2525 2608 2625 2900 2907 TOTAL2418 2428-2432 2449-2501 2520 Euclid 2525-33 2608-2618 2625 2900 2907 COMBINED 5th Street 34th Street Centinela 1219-1221 OP Kansas Street 28th Street Kansas Street 4th Street 3rd Street BUILDINGS 6 12 20 10 20 12 16 19 11 1,076
60,179 $ 83,272 $ 190,132 $ 147,594 $ 270,062 $ 132,429 $ 225,733 $ 181,231 $ 103,567 $ 11,745,775 $ - - - - - - - 6,250 - 150,977 - - - - - - - - - 50,000 32 33 104 35 271 75 236 80 47 9,108
112 224 373 187 373 224 298 354 205 20,799
60,323 83,529 190,609 147,816 270,706 132,728 226,267 187,915 103,819 11,976,659 3,408 8,355 11,961 5,729 11,661 6,476 10,001 12,531 6,153 637,779 256 629 899 430 875 486 752 943 462 47,927264 528 880 440 880 528 704 836 484 46,756261 522 870 435 870 522 696 827 479 60,249 - 386 - - - - - - - 1,376135 271 452 226 452 271 361 2,095 249 32,249778 1,324 1,952 1,262 2,127 1,444 1,647 3,745 1,222 206,008 1,257 2,046 3,409 936 4,793 2,344 4,377 4,326 2,302 229,8546,924 43,271 60,145 24,090 24,990 10,898 44,545 42,574 11,936 1,999,2503,133 3,940 10,738 3,298 13,290 4,371 11,006 13,608 6,990 634,3105,652 8,640 18,840 9,420 18,840 11,304 15,072 17,898 10,362 983,4001,181 2,362 3,936 1,968 3,936 2,362 3,149 3,739 2,165 204,196 310 619 1,032 516 1,032 619 826 980 568 61,467
2,000 4,320 9,859 14,745 4,693 4,200 3,144 5,590 1,080 352,829 553 601 755 1,642 928 1,096 904 1,477 774 88,067
8,413 9,688 18,245 7,772 22,499 10,523 12,601 20,537 10,661 954,2974,111 6,421 7,383 90,213 4,445 13,061 6,824 31,875 8,150 729,911 364 286 1,107 1,092 1,273 994 910 1,637 819 63,714110 345 417 187 390 194 367 489 194 22,257 39,110 94,554 152,880 164,401 117,974 71,693 117,886 165,707 65,050 7,355,89621,213 (11,025) 37,729 (16,585) 152,732 61,035 108,381 22,208 38,769 4,620,763 9,101 - 22,860 175,007 - 29,470 - 1,259 20,050 1,513,563 21,663 18,665 23,930 34,473 30,593 17,368 28,333 69,576 24,251 2,182,289 30,764 18,665 46,790 209,480 30,593 46,838 28,333 70,835 44,301 3,695,852 (9,551) (29,690) (9,061) (226,065) 122,139 14,197 80,048 (48,627) (5,532) 924,911 (28,304) (163,513) 134,321 82,557 1,067,707 82,717 1,322,522 (300,760) (78,134) 18,876,218 (20,000) - (100,000) - (620,000) (50,000) (600,000) (90,000) - (7,917,881) (57,855) $ (193,203) $ 25,260 $ (143,508) $ 569,846 $ 46,914 $ 802,570 $ (439,387) $ (83,666) $ 11,883,248 $ 48 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY
JUNE 30, 2017
Monthly Balloon Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest 3 Vicente Terrace
CITIBANK (1) $ 53,786 $ 19,568 $ 34,218 0.000% $ 1,765 $ - 02/2020 $ - $ - DPRLP / DEPT. OF HOUSING (5) 200,000 - 200,000 3.000% - - 12/2018 - - CITY OF SANTA MONICA (4) 863,320 - 863,320 10.790% - - 04/2023 863,320 16,423,550 1,117,106 19,568 1,097,538 - 863,320 16,423,550
217 Bicknell Ave.

CITY OF SANTA MONICA (2) (4) 4,468,551 - 4,468,551 4.910% - - 12/2064 4,468,551 1,500,640 4,468,551 - 4,468,551 - 4,468,551 1,500,640
225 San Vicente Blvd.

PACIFIC LIFE 844,033 41,283 802,750 9.210% 9,775 - 06/2030 - - CITY OF SANTA MONICA (2) (4) 2,000,000 - 2,000,000 5.500% - - 06/2055 2,000,000 2,852,102 CITY OF SANTA MONICA (3) 1,598,625 25,375 1,573,250 0.000% - - 06/2055 1,598,625 - CITY OF SANTA MONICA (2) (4) 1,380,000 - 1,380,000 6.100% - - 06/2064 1,380,000 683,024 5,822,658 66,658 5,756,000 - 4,978,625 3,535,126
420 Pico Blvd.

BANK OF AMERICA (1) 480,059 16,299 463,760 9.290% 5,018 - 12/2031 - - CITY OF SANTA MONICA (2) (4) 566,112 - 566,112 8.320% - - 06/2055 566,112 1,644,591 CITY OF SANTA MONICA (3) 1,444,187 22,924 1,421,263 0.000% - - 06/2055 1,444,187 - CITY OF SANTA MONICA 215,403 - 215,403 0.000% - - 06/2055 - - 2,705,761 39,223 2,666,538 - 2,010,299 1,644,591
502 Colorado
CITY OF SANTA MONICA (2) (4) 3,626,496 - 3,626,496 0.000% - - 06/2057 3,626,496 - MHP/DEPT. OF HOUSING (5) 1,628,748 - 1,628,748 3.000% - - 07/2058 - - AHP/ BANK OF AMERICA (4) 196,523 - 196,523 0.000% - - 06/2020 196,523 - 5,451,767 - 5,451,767 - 3,823,019 -
OP43
CITIBANK (1) 902,105 113,500 788,605 4.570% 12,697 - 05/2024 - - CITY OF SANTA MONICA (2) (5) 729,866 - 729,866 5.000% - - 10/2027 - - 1,631,971 113,500 1,518,471 - - -
724 Pacific St
CITIBANK (1, G1) 148,177 18,460 129,717 4.440% 2,056 - 06/2024 - - CITY OF SANTA MONICA (4) 126,000 - 126,000 12.000% - - 03/2019 126,000 5,618,671 274,177 18,460 255,717 - 126,000 5,618,671
750 Marine St.

CITY OF SANTA MONICA (2) (4) 3,026,524 - 3,026,524 6.460% - - 11/2063 3,026,524 1,954,175 3,026,524 - 3,026,524 - 3,026,524 1,954,175
807 4th Street
PACIFIC LIFE 186,548 15,961 170,587 4.230% 1,962 - 02/2027 - - CITY OF SANTA MONICA (2) (5) 633,290 - 633,290 0.000% - - 07/2050 - - 819,838 15,961 803,877 - - -
813 9th Street
CITIBANK (1) 119,317 4,212 115,105 8.000% 1,134 - 08/2032 - - CITY OF SANTA MONICA (2) (4) 330,635 - 330,635 7.040% - - 05/2056 330,635 620,786 CITY OF SANTA MONICA (2) (4) 1,127,669 - 1,127,669 7.040% - - 05/2056 1,127,669 2,081,960 1,577,621 4,212 1,573,409 - 1,458,304 2,702,746
821 11th Street
PACIFIC LIFE 174,962 7,188 167,774 9.160% 1,910 - 06/2030 - - CITY OF SANTA MONICA (2) (4) 921,967 - 921,967 7.020% - - 05/2054 921,967 2,232,723 1,096,929 7,188 1,089,741 - 921,967 2,232,723
844 Lincoln Blvd.

CITY OF SANTA MONICA (2) (4) 3,565,399 - 3,565,399 6.040% - - 11/2063 3,565,399 2,166,477 3,565,399 - 3,565,399 - 3,565,399 2,166,477
855 Bay St.

PACIFIC LIFE 149,000 8,324 140,676 5.730% 1,387 - 12/2029 - - CITY OF SANTA MONICA (4) 552,763 - 552,763 6.360% - - 10/2033 552,763 1,245,798 CITY OF SANTA MONICA (2) (4) 750,000 - 750,000 6.360% - - 10/2048 750,000 1,543,480 1,451,763 8,324 1,443,439 - 1,302,763 2,789,278
911 2nd St.

PACIFIC LIFE 171,570 3,598 167,972 5.300% 1,050 - 06/2030 - - CITY OF SANTA MONICA (2) 1,304,045 - 1,304,045 6.770% - - 05/2054 1,304,045 2,893,701 1,475,615 3,598 1,472,017 - 1,304,045 2,893,701
914 4th Street
CITY OF SANTA MONICA (2) (4) 6,052,795 - 6,052,795 6.100% - - 10/2063 6,052,795 3,638,010 6,052,795 - 6,052,795 - 6,052,795 3,638,010
915 Ozone
CITY OF SANTA MONICA (2) (5) 1,301,488 - 1,301,488 0.000% - - 12/2050 - - 1,301,488 - 1,301,488 - - -
937 11th Street
PACIFIC LIFE 111,956 9,352 102,604 4.080% 1,146 - 04/2027 - - CITY OF SANTA MONICA (2) (5) 631,350 - 631,350 0.000% - - 01/2051 - - 743,306 9,352 733,954 - - -
1017 4th Street
PACIFIC LIFE 247,788 9,301 238,487 9.640% 2,732 - 12/2030 - - CITY OF SANTA MONICA (2) (4) 1,332,610 - 1,332,610 6.770% - - 05/2055 1,332,610 3,025,273 1,580,398 9,301 1,571,097 - 1,332,610 3,025,273
49 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY
JUNE 30, 2017
1038 2nd Street
CHRP/DEPT. OF HOUSING (2) (5) $ 631,440.00 $ - $ 631,440.00 3.000% $ - $ - 05/2031 $ - $ - CITY OF SANTA MONICA (2) (4) 647,016 - 647,016 10.340% - - 05/2066 647,016 7,818,998 1,278,456 - 1,278,456 - 647,016 7,818,998
1118 5th Street
PACIFIC LIFE 113,351 7,379 105,972 5.581% 1,127 - 07/2028 - - CITY OF SANTA MONICA (2) (5) 654,795 - 654,795 0.000% - - 04/2052 - - 768,146 7,379 760,767 - - -
1143 12th Street
PACIFIC LIFE 156,389 10,181 146,208 5.581% 1,554 - 09/2028 - - CITY OF SANTA MONICA (2) (5) 467,591 - 467,591 0.000% - - 03/2052 - - 623,980 10,181 613,799 - - -
1149 12th Street
PACIFIC LIFE 74,842 4,486 70,356 5.059% 681 - 10/2018 - - CITY OF SANTA MONICA (2) (5) 597,557 - 597,557 0.000% - - 03/2052 - - 672,399 4,486 667,913 - - -
1206 Pico Blvd
CITIBANK 219,910 11,302 208,608 7.150% 2,222 - 01/2030 - - CITY OF SANTA MONICA (2) (4) 956,995 - 956,995 8.470% - - 11/2044 956,995 1,833,453 1,176,905 11,302 1,165,603 - 956,995 1,833,453
1227 9th Street
PACIFIC LIFE 115,744 6,265 109,479 6.070% 1,093 - 12/2029 - - CITY OF SANTA MONICA (4) 301,109 - 301,109 6.660% - - 11/2033 301,109 719,765 CITY OF SANTA MONICA (2) (4) 418,428 - 418,428 6.660% - - 11/2048 418,428 947,603 835,281 6,265 829,016 - 719,537 1,667,368
1314 18th Street
CITIBANK (G2, 1) 99,172 12,026 87,146 6.896% 1,381 - 07/2024 - - CITY OF SANTA MONICA (4) 163,962 - 163,962 9.010% - - 06/2022 163,962 2,019,088 263,134 12,026 251,108 - 163,962 2,019,088
1343 11th Street
BANK OF AMERICA 27,689 6,353 21,336 10.250% 742 - 04/2021 - - CITY OF SANTA MONICA (2) (4) 322,250 - 322,250 0.000% - - 04/2050 322,250 - 349,939 6,353 343,586 - 322,250 -
1344 14th Street
PACIFIC LIFE 174,757 7,240 167,517 9.350% 1,940 - 05/2030 - - CITY OF SANTA MONICA (2) (4) 750,180 - 750,180 7.020% - - 05/2054 750,180 1,732,648 924,937 7,240 917,697 - 750,180 1,732,648
1427 Berkeley Street
CITIBANK (G2, 1) 121,307 14,711 106,596 6.896% 1,689 - 07/2024 - - CITY OF SANTA MONICA (4) 229,174 - 229,174 9.010% - - 01/2021 229,174 2,823,572 350,481 14,711 335,770 - 229,174 2,823,572
1438 25th Street
CITY OF SANTA MONICA (2) (4) 4,517,379 - 4,517,379 6.100% - - 10/2063 4,517,379 2,389,681 4,517,379 - 4,517,379 - 4,517,379 2,389,681
1513 Centinela
CITY OF SANTA MONICA (2) (4) 2,811,672 - 2,811,672 6.461% - - 12/2063 2,811,672 1,831,691 2,811,672 - 2,811,672 - 2,811,672 1,831,691
1514 14th Street
PACIFIC LIFE 477,487 16,736 460,751 9.680% 5,186 - 06/2031 - - CITY OF SANTA MONICA (2) (4) 2,977,308 - 2,977,308 7.070% - - 06/2054 2,977,308 7,102,611 3,454,795 16,736 3,438,059 - 2,977,308 7,102,611
1616 Ocean & 419 Ocean
CITY OF SANTA MONICA (2) (4) 65,985 - 65,985 3.840% - - 06/2071 65,985 2,124 65,985 - 65,985 - 65,985 2,124
1629 Michigan Street
CITIBANK (G1, 1) 87,107 10,852 76,255 4.440% 1,208 - 06/2024 - - CITY OF SANTA MONICA (4) 67,721 - 67,721 10.630% - - 12/2020 67,721 1,486,152 CITY OF SANTA MONICA (4) 22,893 - 22,893 10.630% - - 08/2021 22,893 493,344 177,721 10,852 166,869 - 90,614 1,979,496
1719 California
CITIBANK 256,283 9,871 246,412 7.750% 2,449 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 2,196,389 - 2,196,389 7.200% - - 06/2056 2,196,389 4,261,459 2,452,672 9,871 2,442,801 - 2,196,389 4,261,459
1808 17th Street
CITIBANK (G1, 1) 119,394 14,874 104,520 4.440% 1,656 - 06/2024 - - CITY OF SANTA MONICA (4) 131,485 - 131,485 10.630% - - 12/2020 131,485 3,063,571 CITY OF SANTA MONICA (4) 23,482 - 23,482 10.630% - - 12/2021 23,482 490,882 274,361 14,874 259,487 - 154,967 3,554,453
50 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY
JUNE 30, 2017
1827 19th St
CITIBANK (G1, 1) $ 118,731 $ 14,792 $ 103,939 4.440% $ 1,647 $ - 06/2024 $ - $ - CITY OF SANTA MONICA (4) 136,311 - 136,311 10.630% - - 12/2020 136,311 3,176,015 CITY OF SANTA MONICA (4) 35,750 - 35,750 10.630% - - 08/2021 35,750 643,099 290,792 14,792 276,000 - 172,061 3,819,114
1845 17th St
CITY OF SANTA MONICA (4) 110,000 - 110,000 12.000% - - 12/2019 110,000 4,284,941 CITY OF SANTA MONICA (4) 20,000 - 20,000 12.000% - - 12/2019 20,000 65,058 130,000 - 130,000 - 130,000 4,349,999
1917 17th St
CITY OF SANTA MONICA (4) 193,281 - 193,281 9.980% - - 12/2021 193,281 3,826,589 193,281 - 193,281 - 193,281 3,826,589
1925 20th St.

BANK OF AMERICA 354,460 12,560 341,900 9.150% 3,706 - 09/2031 - - CITY OF SANTA MONICA (2) (4) 2,931,378 - 2,931,378 7.700% - - 10/2054 2,931,378 7,125,960 3,285,838 12,560 3,273,278 - 2,931,378 7,125,960
1937 18th St
CITY OF SANTA MONICA (4) 128,313 - 128,313 10.000% - - 12/2021 128,313 406,845 128,313 - 128,313 - 128,313 406,845
1943 17th St
CITIBANK (G2, 1) 65,129 7,898 57,231 6.896% 995 - 07/2024 - - CITY OF SANTA MONICA (4) 35,000 35,000 - 10.000% - - 03/2017 35,000 106,084 CITY OF SANTA MONICA (4) 172,643 - 172,643 9.980% - - 12/2021 172,643 2,982,413 272,772 42,898 229,874 - 207,643 3,088,497
1944 20th Street
CITY OF SANTA MONICA (2) (4) 2,412,659 - 2,412,659 6.620% - - 06/2061 2,412,659 2,074,262 CITY OF SANTA MONICA (3) 393,273 5,700 387,573 0.000% - - 06/2061 393,273 - 2,805,932 5,700 2,800,232 - 2,805,932 2,074,262
1952 Frank St
CITY OF SANTA MONICA (2) (5) 25,000 - 25,000 8.120% - - 02/2025 - - CITY OF SANTA MONICA (2) (5) 232,996 - 232,996 3.000% - - 07/2032 - - 257,996 - 257,996 - - -
1959 Cloverfield Blvd
CITIBANK (1) 705,808 87,931 617,877 4.440% 9,791 - 06/2024 - - CITY OF SANTA MONICA (4) 1,100,000 - 1,100,000 9.900% - - 11/2021 1,100,000 18,656,762 1,805,808 87,931 1,717,877 - 1,100,000 18,656,762
2009 Cloverfield Blvd
ONE WEST BANK (1) 14,363 14,363 - 2.833% 1,215 - 05/2018 - - CITY OF SANTA MONICA (4) 39,800 39,800 - 10.000% - - 05/2018 39,800 115,900 CITY OF SANTA MONICA (4) 226,231 - 226,231 9.850% - - 05/2023 226,231 3,265,141 280,394 54,163 226,231 - 266,031 3,381,041
2017 20th Street
CITY OF SANTA MONICA (4) 126,000 - 126,000 12.000% - - 12/2018 126,000 5,540,208 126,000 - 126,000 - 126,000 5,540,208
2028 14th Street
BANK OF AMERICA 339,620 12,196 327,424 7.910% 3,219 - 06/2032 - - CITY OF SANTA MONICA (2) (4) 236,375 - 236,375 8.210% - - 09/2055 236,375 105,226 CITY OF SANTA MONICA (3) 1,507,188 23,188 1,484,000 0.000% - - 09/2055 1,507,188 - 2,083,183 35,384 2,047,799 - 1,743,563 105,226
2029 20th Street
CITY OF SANTA MONICA (2) (4) 4,386,515 - 4,386,515 5.470% - - 12/2063 4,386,515 2,221,946 4,386,515 - 4,386,515 - 4,386,515 2,221,946
2112 Delaware Ave.

BANK OF AMERICA 462,765 16,827 445,938 7.020% 4,065 - 02/2033 - - CITY OF SANTA MONICA (2) (4) 597,539 - 597,539 6.870% - - 08/2055 597,539 799,451 CITY OF SANTA MONICA (2) (4) 774,693 - 774,693 8.040% - - 08/2055 774,693 1,827,952 CITY OF SANTA MONICA (3) 2,470,130 38,002 2,432,128 0.000% - - 08/2055 2,470,130 - 4,305,127 54,829 4,250,298 - 3,842,362 2,627,403
2120 4th Street
CITIBANK 377,962 15,726 362,236 7.750% 3,706 - 05/2031 - - CITY OF SANTA MONICA (2) (4) 1,936,121 - 1,936,121 7.900% - - 10/2055 1,936,121 4,603,608 CITY OF SANTA MONICA (3) 1,061,086 16,324 1,044,762 0.000% - - 10/2055 1,061,086 - 3,375,169 32,050 3,343,119 - 2,997,207 4,603,608
2121 Arizona St
CITIBANK (1) 42,514 42,514 - 5.250% 3,967 - 05/2018 - - CITY OF SANTA MONICA (4) 148,941 - 148,941 10.190% - - 05/2023 148,941 2,377,538 191,455 42,514 148,941 - 148,941 2,377,538
51 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - PROPERTIES

MORTGAGE SCHEDULE BY PROPERTY
JUNE 30, 2017
2122 Pico
CITY OF SANTA MONICA (3) $ 813,918 $ 13,215 $ 800,703 0.000% $ - $ - 12/2057 $ 813,918 $ - 813,918 13,215 800,703 - 813,918 -
2207 6th St
CITIBANK (1, OP12) 246,429 31,005 215,424 4.570% 3,469 - 05/2024 - - 246,429 31,005 215,424 - - -
2211 4th Street
CITY OF SANTA MONICA (2) (4) 6,718,370 - 6,718,370 6.440% - - 09/2061 6,718,370 5,756,546 6,718,370 - 6,718,370 - 6,718,370 5,756,546
2243 28th Street
CITIBANK (1) 176,405 6,361 170,044 7.750% 1,651 - 08/2032 - - CITY OF SANTA MONICA (2)(4) 1,732,889 - 1,732,889 6.920% - - 08/2056 1,732,889 2,959,248 1,909,294 6,361 1,902,933 - 1,732,889 2,959,248
2260 28th Street
CITIBANK 218,450 8,414 210,036 7.750% 2,087 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,270,775 - 1,270,775 7.150% - - 01/2056 1,270,775 2,408,413 1,489,225 8,414 1,480,811 - 1,270,775 2,408,413
2302 5th St
CITIBANK (G2, 1) 113,956 13,819 100,137 6.896% 1,741 - 07/2024 - - CITY OF SANTA MONICA (4) 120,000 - 120,000 11.500% - - 12/2020 120,000 3,203,862 CITY OF SANTA MONICA (4) 52,500 - 52,500 10.000% - - 12/2035 52,500 161,901 286,456 13,819 272,637 - 172,500 3,365,763
2309 Oak Street
CITY OF SANTA MONICA (2) (4) 3,360,129 - 3,360,129 4.840% - - 05/2066 3,360,129 784,069 3,360,129 - 3,360,129 - 3,360,129 784,069
2320 34th Street
CITY OF SANTA MONICA (2) (4) 1,837,788 - 1,837,788 6.260% - - 08/2063 1,837,788 1,157,272 1,837,788 - 1,837,788 - 1,837,788 1,157,272
2404 Kansas Ave
CITIBANK (1) 200,969 6,304 194,665 7.400% 1,747 - 03/2034 - - CITY OF SANTA MONICA (2) (4) 1,428,301 - 1,428,301 6.540% - - 07/2057 1,428,301 1,988,280 1,629,270 6,304 1,622,966 - 1,428,301 1,988,280
2418 5th Street
CITY OF SANTA MONICA (2) (4) 1,908,671 - 1,908,671 6.260% - - 08/2063 1,908,671 1,248,343 1,908,671 - 1,908,671 - 1,908,671 1,248,343
2428 34th Street
CITY OF SANTA MONICA (2) (4) 717,408 - 717,408 6.960% - - 04/2056 717,408 1,394,299 CITY OF SANTA MONICA (2) (4) 825,439 - 825,439 6.960% - - 04/2056 825,439 1,608,067 1,542,847 - 1,542,847 - 1,542,847 3,002,366
2449 Centinela Ave
CITIBANK 286,750 11,045 275,705 7.750% 2,740 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 2,166,715 - 2,166,715 6.890% - - 01/2056 2,166,715 4,089,668 2,453,465 11,045 2,442,420 - 2,166,715 4,089,668
2520 Euclid
CITY OF SANTA MONICA (2)(4) 5,412,267 - 5,412,267 3.650% - - 06/2070 5,412,267 337,334 5,412,267 - 5,412,267 - 5,412,267 337,334
2525 Kansas Ave
CITY OF SANTA MONICA (4) 231,430 - 231,430 12.000% - - 06/2019 231,430 9,561,055 231,430 - 231,430 - 231,430 9,561,055
2608 28th Street
CITIBANK 224,428 8,644 215,784 7.750% 2,145 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,273,224 - 1,273,224 7.150% - - 01/2056 1,273,224 2,531,121 1,497,652 8,644 1,489,008 - 1,273,224 2,531,121
2625 Kansas Ave
CITY OF SANTA MONICA (4) 189,070 - 189,070 12.000% - - 07/2019 189,070 7,757,496 189,070 - 189,070 - 189,070 7,757,496
2900 4th Street
CITY OF SANTA MONICA (2) (4) 5,282,036 - 5,282,036 6.440% - - 09/2061 5,282,036 4,783,449 CITY OF SANTA MONICA (3) 443,750 6,250 437,500 0.000% - - 09/2061 443,750 - 5,725,786 6,250 5,719,536 - 5,725,786 4,783,449
2907 3rd St
CITIBANK 114,620 4,415 110,205 7.750% 1,095 - 01/2032 - - CITY OF SANTA MONICA (2) (4) 1,507,832 - 1,507,832 6.960% - - 03/2056 1,507,832 2,782,821 1,622,452 4,415 1,618,037 - 1,507,832 2,782,821
$ 127,955,004 $ 939,914 $ 127,015,090 $ - $ 110,309,388 $ 207,859,845 Footnotes:

Note (G1) Property is part of a blanket trust deed loan encumbering properties 724, 1629, 1808, and 1827 Note (G2) Property is part of a blanket trust deed loan encumbering properties 1314, 1427, 1943, and 2302 Note (OP12) Property is part of a blanket trust deed loan encumbering properties 2207 and 2402 52 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY SUBSIDIARY JUNE 30, 2017
708 Pico 815 Ashland Fifth & Wilshire SSC 16th Street Garcia Cloverfield Assets
Cash and cash equivalents 51,035 $ 92,235 $ 47,891 $ 153,274 $ 182,095 $ 67,005 $ 25,333 $Restricted cash 89,839 902,276 212,050 505,651 347,686 355,986 330,535Accounts receivable, net 46 483 3,837 1,492 380 65 1,564Prepaid expenses and other current assets - 10,611 - 5,611 8,911 - - Land 545,349 2,591,410 1,323,550 - 669,424 1,181,920 984,000Buildings and improvements 1,374,014 3,320,043 2,097,534 2,891,873 1,573,346 3,852,008 1,776,837Furniture, fixtures and equipment 40,278 6,688 34,451 30,932 2,603 - 1,600Construction in progress - - - - - - - 1,959,641 5,918,141 3,455,535 2,922,805 2,245,373 5,033,928 2,762,437Less: Accumulated depreciation (77,872) (571,457) (291,532) (525,238) (228,330) (1,168,741) (1,393,653) Property and equipment, net 1,881,769 5,346,684 3,164,003 2,397,567 2,017,043 3,865,187 1,368,784 Investments in Partnerships and Other assets - - - 183,831 10,000 - - Due (to) from Subsidiaries and Properties (63,118) (17,343) (98,834) (17,374) (18,282) (154,107) (10,487) Total assets 1,959,571 $ 6,334,946 $ 3,328,947 $ 3,230,052 $ 2,547,833 $ 4,134,136 $ 1,715,729 $ Liabilities and net assets (deficit)
Accounts payable and accrued expenses 4,729 $ 22,049 $ 7,201 $ 7,348 $ 19,360 $ 6,137 $ 5,557 $Accrued and deferred interest payable - 1,502,088 406,472 1,407,647 2,540 2,282,851 186,487Security deposits 15,170 36,764 21,649 21,941 16,957 20,869 17,990Long-term debt 1,963,997 4,752,126 3,203,862 3,007,001 2,528,749 3,396,668 1,572,952Less: unamortized debt issuance costs, net (17,624) - (16,765) - (27,404) (84) (700) Total liabilities 1,966,272 6,313,027 3,622,419 4,443,937 2,540,202 5,706,441 1,782,286 Net assets (deficit) (6,701) 21,919 (293,472) (1,213,885) 7,631 (1,572,305) (66,557) Total liabilities and net assets (deficit) 1,959,571 $ 6,334,946 $ 3,328,947 $ 3,230,052 $ 2,547,833 $ 4,134,136 $ 1,715,729 $ 53 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDI(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) Assets
Cash and cash equivalentsRestricted cashAccounts receivable, netPrepaid expenses and other current assetsLandBuildings and improvementsFurniture, fixtures and equipmentConstruction in progressLess: Accumulated depreciation Property and equipment, net
Investments in Partnerships and Other assetsDue (to) from Subsidiaries and Properties Total assets
Liabilities and net assets (deficit)
Accounts payable and accrued expensesAccrued and deferred interest payableSecurity depositsLong-term debtLess: unamortized debt issuance costs, net Total liabilities
Net assets (deficit)
Total liabilities and net assets (deficit)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF FINANCIAL POSITION BY SUBSIDIARY (CONTINUED) JUNE 30, 2017
2407 4th Virginia CCSM Arroyo CCSM ESCO scCC CCSM Village TOTAL 67,583 $ 99,871 $ (2,116) $ 9,485 $ 9,480 $ 1,934 $ 805,105 $ 378,709 136,772 - - - - 3,259,504
1,842 604 - - - - 10,313 - - - - - - 25,133
82,494 341,000 - - - - 7,719,147
224,494 1,419,319 - 194,064 - - 18,723,532
6,668 2,628 - - - - 125,848 - 260,512 - - - - 260,512
313,656 2,023,459 - 194,064 - - 26,829,039
(12,282) (581,831) - (19,406) - - (4,870,342)
301,374 1,441,628 - 174,658 - - 21,958,697 - - 101 - 104 - 194,036 (623,591) (381) - - (28,295) - (1,031,812)
125,917 $ 1,678,494 $ (2,015) $ 184,143 $ (18,711) $ 1,934 $ 25,220,976 2,363 $ 119,330 $ - $ - $ - $ - $ 194,074 $ - 935,083 - - - - 6,723,168 11,475 6,281 - - - - 169,096 - 1,268,643 - 160,873 - - 21,854,871 - - - (13,600) - - (76,177) 13,838 2,329,337 - 147,273 - - 28,865,032
112,079 (650,843) (2,015) 36,870 (18,711) 1,934 (3,644,056)125,917 $ 1,678,494 $ (2,015) $ 184,143 $ (18,711) $ 1,934 $ 25,220,976 $ 54 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY SUBSIDIARY JUNE 30, 2017
708 Pico 815 Ashland Fifth & Wilshire SSC 16th Street Garcia Cloverfield Revenues:

Rental fees, net of vacancy 198,250 $ 496,851 $ 304,069 $ 307,805 $ 236,767 $ 300,667 $ 241,021 $Property management fees - - - - - - - Commercial rental income, net of concessions - - - 100,067 - - - Interest 59 539 146 335 576 216 181Other - - - - - - - Total revenues 198,309 497,390 304,215 408,207 237,343 300,883 241,202 Expenses:

Salaries 1,512 2,969 2,918 2,588 2,735 3,006 2,595Payroll taxes 116 227 223 198 209 230 199Legal and professional 2,837 3,932 4,895 4,538 2,705 3,275 3,362Consultants 115 4,687 288 3,915 - - - Office and administration 2,798 28,605 6,177 27,025 9,139 3,549 5,955Insurance 5,547 12,688 9,469 7,585 6,529 6,927 5,565Maintenance and repairs 35,881 95,967 105,704 123,286 34,706 54,624 65,565Maintenance service fees interfund 13,873 31,640 34,341 21,545 15,221 24,497 17,522Property management fees interfund 34,290 52,800 61,985 56,448 47,855 25,200 26,880Bookkeeping fees interfund 3,936 5,130 6,298 8,659 3,345 3,420 3,648Resident service fees interfund 1,020 11,767 1,632 2,244 867 1,530 1,632Gardening and grounds 5,730 18,241 5,200 71 3,600 17,080 13,205Pest control 1,793 6,256 2,307 3,077 601 4,337 1,178Utilities 20,502 47,091 38,350 36,344 20,164 30,954 20,648Property taxes 10,672 16,396 23,248 1,871 3,461 14,607 7,864Workers compensation 103 201 220 177 204 257 182 Total expenses before interest
and depreciation 140,725 338,597 303,255 299,571 151,341 193,493 176,000 Net operating income 57,584 158,793 960 108,636 86,002 107,390 65,202 Interest 11,977 125,973 29,842 99,924 29,241 106,521 17,230Depreciation 40,912 98,981 91,876 98,355 64,975 132,022 68,592 Total interest and depreciation 52,889 224,954 121,718 198,279 94,216 238,543 85,822 Changes in net assets (deficit) 4,695 (66,161) (120,758) (89,643) (8,214) (131,153) (20,620)Net assets (deficit), beginning of year, after change in in accounting principle (11,396) 88,080 (172,714) (1,124,242) 15,845 (1,441,152) (45,937) Intercompany transfer - - - - - - - Net assets (deficit), end of year (6,701) $ 21,919 $ (293,472) $ (1,213,885) $ 7,631 $ (1,572,305) $ (66,557) $ 55 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES(A CALIFORNIA NOT-FOR-PROFIT CORPORATION) Revenues:

Rental fees, net of vacancyProperty management feesCommercial rental income, net of concessionsInterestOther Total revenues
Expenses:

SalariesPayroll taxesLegal and professionalConsultantsOffice and administrationInsuranceMaintenance and repairsMaintenance service fees interfundProperty management fees interfundBookkeeping fees interfundResident service fees interfundGardening and groundsPest controlUtilitiesProperty taxesWorkers compensation Total expenses before interest
and depreciation
Net operating income
InterestDepreciation
Total interest and depreciation
Changes in net assets (deficit)Net assets (deficit), beginning of year, after change in in accounting principle
Intercompany transfer
Net assets (deficit), end of year

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

COMBINING STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (DEFICIT) BY SUBSIDIARY (CONTINUED) JUNE 30, 2017
2407 4th Virginia CCSM Arroyo CCSM ESCO scCC CCSM Village Total 186,278 $ 106,892 $ - $ - $ - $ - $ 2,378,600 $ - - - - - 4,242 4,242 - - - - - - 100,067 218 103 - - - - 2,373 - - - 15,845 1,790 - 17,635
186,496 106,995 - 15,845 1,790 4,242 2,502,917
495 1,071 - - - - 19,889
38 82 - - - - 1,522
3,138 2,486 515 515 1,000 - 33,198 - - - - - - 9,0051,388 1,255 1,600 830 18 820 89,1592,330 4,301 - - - - 60,941 14,698 26,103 - - - - 556,534
7,189 12,060 - - - - 177,888
28,505 9,792 - - - - 343,755
1,968 1,368 - - - - 37,772
510 612 - - - - 21,814
10,717 3,240 - - - - 77,084
689 879 - - - - 21,117
12,746 14,172 - - - - 240,971
6,145 5,169 - - - - 89,433
34 74 - - - - 1,452
90,590 82,664 2,115 1,345 1,018 820 1,781,53495,906 24,331 (2,115) 14,500 772 3,422 721,383 8,657 38,058 - 1,600 - - 469,0239,314 67,324 - 12,938 - - 685,289 17,971 105,382 - 14,538 - - 1,154,31277,935 (81,051) (2,115) (38) 772 3,422 (432,929)34,144 (769,792) 100 317,007 (19,483) (1,488) (3,131,028) - 200,000 - (280,099) - - (80,099) 112,079 $ (650,843) $ (2,015) $ 36,870 $ (18,711) $ 1,934 $ (3,644,056) $ 56 COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES (A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - SUBSIDIARIES

MORTGAGE SCHEDULE BY SUBSIDIARY
JUNE 30, 2017
Monthly Balloon Forgiven Accrued/
Principal Current Non-Current Interest Mortgage Payment Maturity Principal Unrecorded Lender Balance Portion Portion Rate Payment Amount Date Balance Interest 708 Pico L.P.

Bank of America $ 127,717 $ 4,971 $ 122,746 8.23% $ 1,275 $ - 07/2031 $ - $ - Bank of America - AHP (1) 81,000 - 81,000 0.00% - - 06/2031 - - City of Santa Monica (1) (3) 660,321 - 660,321 0.00% - - 10/2053 - - City of Santa Monica (1) (3) 498,315 - 498,315 0.00% - - 01/2052 - - City of Santa Monica (1) (3) 596,644 - 596,644 0.00% - - 03/2052 - - Total 708 Pico L.P. 1,963,997 4,971 1,959,026 1,275 - - - 815 Ashland L.P.

Dept. of Hsg & Comm Develop (1) (3) 2,627,110 - 2,627,110 3.00% - - 10/2050 - - City of Santa Monica (2) (3) 2,125,016 - 2,125,016 3.00% - - 08/2049 2,125,016 1,212,356 Total 815 Ashland L.P. 4,752,126 - 4,752,126 - - 2,125,016 1,212,356 Fifth & Wilshire Apts.

Citibank 157,254 9,992 147,262 6.18% 1,619 - 09/2028 - - Citibank - AHP (1) 111,608 - 111,608 0.00% - - 10/2027 - - City of Santa Monica (2) (3) 975,000 - 975,000 3.00% - - 06/2051 975,000 614,751 City of Santa Monica (1) (3) 1,960,000 - 1,960,000 1.00% - - 01/2051 - - Total Fifth & Wilshire Apts. 3,203,862 9,992 3,193,870 1,619 - 975,000 614,751 Second Street Center
Citibank 430,501 46,088 384,413 4.98% 5,540 - 04/2025 - - Citibank - AHP (1) 411,000 - 411,000 3.00% - - 03/2025 - - City of Santa Monica (1) (3) 2,165,500 - 2,165,500 3.00% - - 06/2043 - - Total Second Street Center 3,007,001 46,088 2,960,913 5,540 - - - 16th Street Apartments
Bank of America 371,444 17,401 354,043 7.20% 3,632 - 10/2030 - - City of Santa Monica (1) (3) 2,157,305 - 2,157,305 0.00% - - 04/2043 - - Total 16th Street Apartments 2,528,749 17,401 2,511,348 3,632 - - - Garcia Apartments Partnership
Citibank 291,265 37,680 253,585 5.07% 4,298 - 02/2024 - - AHP Loan / Cal Fed Bank (1) 120,000 - 120,000 1.00% - - 10/2021 - - Dept. of Hsg & Comm Develop (1) (3) 1,417,761 - 1,417,761 3.00% - - 06/2043 - - City of Santa Monica (1) (3) 1,286,642 - 1,286,642 3.00% - - 10/2031 - - City of Santa Monica (1) (3) 281,000 - 281,000 3.00% - - 10/2031 - - Total Garcia Apartments 3,396,668 37,680 3,358,988 4,298 - - - Cloverfield Community Partnership
Citibank 109,528 26,965 82,563 4.03% 2,574 - 04/2021 - - Dept. of Hsg & Comm Develop (1) (3) 201,824 - 201,824 3.00% - - 01/2021 - - City of Santa Monica (1) 200,000 - 200,000 3.00% - - 12/2019 - - City of Santa Monica (2) 841,600 - 841,600 10.44% - - 12/2023 841,600 13,445,921 City of Santa Monica (2) 220,000 - 220,000 10.34% - - 04/2025 220,000 2,952,118 Total Cloverfield Community 1,572,952 26,965 1,545,987 2,574 - 1,061,600 16,398,039 Virginia Village Partnership
Dept. of Hsg & Comm Develop (1) (3) 415,568 - 415,568 3.00% - - 05/2048 - - City of Santa Monica (1) (3) 853,075 - 853,075 3.00% - - 06/2032 - - Total Virginia Village 1,268,643 - 1,268,643 - - -

CCSM ESCO
Mercy Loan Fund 160,873 160,873 5.00% - - 05/2025 - -
Total CCSM ESCO 160,873 - 160,873 - - -
$ 21,854,871 $ 143,097 $ 21,711,775 $ - $ 4,161,616 $ 18,225,146 Footnotes:

Note (1) Principal and Accrued Interest due at Maturity Note (2) Principal and Accrued Interest forgiven at Maturity Note (3) Residual Receipts Loan

SUPPLEMENTARY INFORMATION - HCD
57 Rent revenue
5120 Rent revenue - gross potential $ 244,882
5121 Tenant assistance payments 47,365
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 292,247
Vacancies
5220 Apartments 9,159
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies 9,159
5152N Net rental revenue (rental revenue less vacancies) 283,088 Financial revenue
5410 Financial revenue - project operations 2
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 58 5490 Revenue from investments - miscellaneous 63
5400T Total financial revenue 123
Other revenue
5910 Laundry and vending revenue 1,735
5920 Tenant charges 555
5990 Miscellaneous revenue 821
5900T Total other revenue 3,111
5000T Total revenue $ 286,322

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEAR ENDED JUNE 30, 2017
58 Administrative expenses
6203 Conventions and meetings $ 79
6204 Management consultants 1,684
6210 Advertising and marketing 2,114
6250 Other renting expenses 571
6310 Office salaries 22,834
6311 Office expenses 9,451
6312 Office or model apartment rent -
6320 Management fee 33,264
6330 Manager or superintendent salaries 4,641
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 1,914
6351 Bookkeeping fees/accounting services 5,016
6370 Bad debts 2,524
6390 Miscellaneous administrative expenses 9,020
6263T Total administrative expenses 93,112
Utilities expenses
6450 Electricity 20,001
6451 Water 5,879
6452 Gas 8,920
6453 Sewer 7,498
6400T Total utilities expenses 42,298
Operating and maintenance expenses
6510 Payroll -
6515 Supplies 14,960
6520 Contracts 101,349
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 5,759
6530 Security payroll/contracts 917
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses 24,449 6590-010 Description: CCSM maintenance fees
6590-020 Amount: $ 24,449
6500T Total operating and maintenance expenses $ 147,434

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEAR ENDED JUNE 30, 2017
59 Taxes and insurance
6710 Real estate taxes $ 11,333
6711 Payroll taxes (Property's share) 2,066
6720 Property and liability insurance (hazard) 10,303
6721 Fidelity bond insurance -
6722 Workers' compensation 1,005
6723 Health insurance and other benefits 1,935
6790 Miscellaneous taxes, licenses, permits and insurance - 6700T Total taxes and insurance 26,642
Total operating expenses 309,486
Financial expenses
6820 Interest on mortgage (or bonds) payable -
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 48,862
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
6800T Total financial expenses 48,862
6900T Total nursing home/astd. living/board care/other elderly expenses -
6000 Total cost of operations before depreciation 358,348 5060 Operating profit (loss) (72,026)
Depreciation and amortization expenses
6600 Depreciation expense 115,197
6610 Amortization expense 76
5060N Operating profit (loss) (187,299)
Net entity expenses
7190 Other expenses -
7100T Total net entity expenses -
3250 Change in total net assets from operations (net loss) $ (187,299)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
YEAR ENDED JUNE 30, 2017
60 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Organization
Cash on hand and in banks
Unrestricted accounts
Cash - operating, Union Bank $ 16,486
Restricted accounts
Resident security deposits - Union Bank $ 20,712
Reserve for replacements - Union Bank 81,900
Operating reserve - Union Bank 106,978
$ 209,590

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
Resident security deposits are maintained in a separate account, and interest earned on these deposits is credited to a liability account to be refunded or applied for the benefit of residents.

Interest earned during the year ended June 30, 2017 totaled $10. 502 Colorado is wholly owned by Community Corporation of Santa Monica. 502 Colorado is a 44 unit apartment complex located in Santa Monica, California. The property was placed in service on June 4, 2002. The property was financed, in part, by a mortgage loan provided by the Department of Housing and Community Development ("HCD").

The Corporation entered into a Multifamily Housing Program Regulatory Agreement with HCD, which governs the operation of the property and restricts the persons eligible to reside at the property for a period of fifty five years. Cash distributions are limited by agreements between the property and HCD.
61 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Mortgagee impound accounts
502 Colorado does not have any mortgage impound accounts.

Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2016 $ 114,634
Required deposits 18,000
Interest earned 58
Withdrawals - capitalized (39,500)
Withdrawals - expensed (11,292)
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2017 $ 81,900
Operating
Reserve
Balance, July 1, 2016 $ 106,925
Required deposits -
Interest earned 53
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2017 $ 106,978

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
62 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Accounts receivable - aging
Accounts receivable Accounts receivable
(within 30 days) (> 30 days) Total
58 916 974
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and
Land Buildings Equipment Total
Balance, July 1, 2016 $ - $ 5,528,471 $ - $ 5,528,471
Additions - 46,618 - 46,618
Balance, June 30, 2017 $ - $ 5,575,089 $ - $ 5,575,089
Deferred costs
Following are the details of deferred costs:

Permanent
Lender Fee
Balance, July 1, 2016 $ 3,205
Additions -
Accumulated amortization (76)
Balance, June 30, 2017 $ 3,129
Accounts payable
Accounts payable Accounts payable
(within 30 days) (> 30 days) Total
51,098 448 51,546

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
Management periodically reviews resident receivables and uses an allowance for doubtful accounts to recognize bad debts. Accounts receivable above is shown net of the allowance for doubtful accounts, which totaled $858 at June 30, 2017.
63 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Gross potential rents
Tenant rental payments $ 235,723
Housing assistance payments 47,365
Employee quarters shown as an expense -
Vacancy loss and concessions 9,159
Total gross potential rents $ 292,247
Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee Total
Balance, July 1, 2016 $ - $ - $ - $ -
Expense 5,016 9,000 24,449 38,465
Payment (5,016) (9,000) (24,449) (38,465)
Balance, June 30, 2017 $ - $ - $ - $ -
Supportive services
Resident services fee $ 9,000
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered.

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
A property management fee of $33,264 was incurred during 2017 for the property management services provided by Community Corporation of Santa Monica. 64 502 COLORADO (HCD CONTRACT NO. 00-MHP-016)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 286,322
Interest earned on restricted reserve accounts (121)
Adjusted operating income 286,201
Operating expenses (309,486)
Adjusted net income (23,285)
Other activity
Mandatory debt service (6,841)
Deposits into reserve for replacements account (18,000) Deposits into other restricted accounts per regulatory agreement - Capital improvements (46,618)
Withdrawals from reserve for replacements account included in property and equipment 39,500
Withdrawals from reserve for replacements account included in operating expenses and prior year 11,292
Total other activity (20,667)
Operating cash flow/surplus cash $ (43,952)
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
CPI indexed distribution -
Total cash available for distributions (Net Cash Flow) $ - Distributions and loan payments
Maximum Sponsor Distribution ($22,572 plus CPI split
50% to City of Santa Monica and 50% to Sponsor) $ -
30% to be distributed to owner -
70% split and paid as follows per regulatory agreement
71% to City of Santa Monica -
29% to HCD MHP Loan -
Total distributions to lenders -
Total distributions to owners and lenders $ -

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
65 Rent revenue
5120 Rent revenue - gross potential $ 443,843
5121 Tenant assistance payments 45,299
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 489,142
Vacancies
5220 Apartments 893
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies 893
5152N Net rental revenue (rental revenue less vacancies) 488,249 Financial revenue
5410 Financial revenue - project operations 99
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 202 5490 Revenue from investments - miscellaneous 238
5400T Total financial revenue 539
Other revenue
5910 Laundry and vending revenue 7,612
5920 Tenant charges 990
5990 Miscellaneous revenue -
5900T Total other revenue 8,602
5000T Total revenue $ 497,390

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2017
66 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants 4,687
6210 Advertising and marketing -
6250 Other renting expenses 24
6310 Office salaries -
6311 Office expenses 27,772
6312 Office or model apartment rent -
6320 Management fee 37,800
6330 Manager or superintendent salaries 2,969
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 3,932
6351 Bookkeeping fees/accounting services 5,130
6370 Bad debts 9
6390 Miscellaneous administrative expenses 11,767
6263T Total administrative expenses 94,090
Utilities expenses
6450 Electricity 9,472
6451 Water 12,006
6452 Gas 1,485
6453 Sewer 11,045
6400T Total utilities expenses 34,008
Operating and maintenance expenses
6510 Payroll -
6515 Supplies 26,736
6520 Contracts 92,401
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 13,083
6530 Security payroll/contracts 1,327
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses 31,640 6590-010 Description: CCSM maintenance fees
6590-020 Amount: $ 31,640
6500T Total operating and maintenance expenses $ 165,187

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2017
67 Taxes and insurance
6710 Real estate taxes $ 16,396
6711 Payroll taxes (Property's share) 227
6720 Property and liability insurance (hazard) 12,688
6721 Fidelity bond insurance -
6722 Workers' compensation 201
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 30,312
Total operating expenses 323,597
Financial expenses
6820 Interest on mortgage (or bonds) payable -
6825 Interest on other mortgages 47,160
6830 Interest on notes payable (long term) 78,813
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
6800T Total financial expenses 125,973
6900T Total nursing home/astd. living/board care/other elderly expenses -
6000 Total cost of operations before depreciation 449,570 5060 Operating profit (loss) 47,820
Depreciation and amortization expenses
6600 Depreciation expense 98,981
6610 Amortization expense -
5060N Operating profit (loss) (51,161)
Net entity expenses
7190 Other expenses 15,000
7190-010 Description: General Partner fee
7190-020 Amount: $ 15,000
Partnership management fee
7100T Total net entity expenses 15,000
3250 Change in total net assets from operations (net loss) $ (66,161)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
YEAR ENDED JUNE 30, 2017
68 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2016 $ 401,743
Required deposits 26,004
Interest earned 202
Withdrawals - capitalized (10,930)
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2017 $ 417,019
Operating
Reserve
Balance, July 1, 2016 $ 414,965
Required deposits 10,406
Other deposits 4,492
Interest earned 210
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2017 $ 430,073

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
69 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and
Land Buildings Equipment Total
Balance, July 1, 2016 $ 2,591,410 $ 3,270,981 $ 6,688 $ 5,869,079 Additions - 49,062 - 49,062
Balance, June 30, 2017 $ 2,591,410 $ 3,320,043 $ 6,688 $ 5,918,141 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee
General
Partner Fee Total
Balance, July 1, 2016 $ - $ - $ - $ - $ -
Expense 5,130 11,767 31,640 15,000 63,537
Payment (5,130) (11,767) (31,640) - (48,537)
Balance, June 30, 2017 $ - $ - $ - $ 15,000 $ 15,000
Supportive services
Resident services fee $ 11,767

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered. The General Partner is entitled to a General Partner fee and only paid if cash flow permits.

A property management fee of $37,800 was incurred during 2017 for the property management services provided by Community Corporation of Santa Monica.
70 815 ASHLAND (HCD CONTRACT NO. 93-RHCP-158)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 497,390
Interest earned on restricted reserve accounts (440)
Adjusted operating income 496,950
Operating expenses (323,597)
Adjusted net income 173,353
Other activity
Mandatory debt service -
Deposits into reserve for replacements account (26,004) Deposits into other restricted accounts per regulatory agreement (14,898) Capital improvements (49,062)
Withdrawals from reserve for replacements account included in property and equipment 10,930
Withdrawals from reserve for replacements account included in operating expenses -
Total other activity (79,034)
Operating cash flow/surplus cash $ 94,319
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ 94,319 Distributions and loan payments
Maximum Sponsor Distribution ($-0-) $ -
Paid as follows per regulatory agreement
50% to City of Santa Monica 47,160
50% to RHCP Loan 47,160
Total distributions to lenders 94,319
Total distributions to owners and lenders $ 94,319

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
71 Rent revenue
5120 Rent revenue - gross potential $ 238,429
5121 Tenant assistance payments 60,968
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 299,397
Vacancies
5220 Apartments 3,390
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies 3,390
5152N Net rental revenue (rental revenue less vacancies) 296,007 Financial revenue
5410 Financial revenue - project operations 27
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 76 5490 Revenue from investments - miscellaneous 113
5400T Total financial revenue 216
Other revenue
5910 Laundry and vending revenue 4,510
5920 Tenant charges 150
5990 Miscellaneous revenue -
5900T Total other revenue 4,660
5000T Total revenue $ 300,883

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2017
72 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants -
6210 Advertising and marketing -
6250 Other renting expenses 1,100
6310 Office salaries -
6311 Office expenses 1,120
6312 Office or model apartment rent -
6320 Management fee 25,200
6330 Manager or superintendent salaries 3,006
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 3,275
6351 Bookkeeping fees/accounting services 3,420
6370 Bad debts 529
6390 Miscellaneous administrative expenses 1,530
6263T Total administrative expenses 39,180
Utilities expenses
6450 Electricity 5,777
6451 Water 6,901
6452 Gas 1,656
6453 Sewer 7,345
6400T Total utilities expenses 21,679
Operating and maintenance expenses
6510 Payroll -
6515 Supplies 26,155
6520 Contracts 46,485
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 9,275
6530 Security payroll/contracts 3,401
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses 24,497 6590-010 Description: CCSM maintenance fees
6590-020 Amount: $ 24,497
6500T Total operating and maintenance expenses $ 109,813

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2017
73 Taxes and insurance
6710 Real estate taxes $ 14,607
6711 Payroll taxes (Property's share) 230
6720 Property and liability insurance (hazard) 6,927
6721 Fidelity bond insurance -
6722 Workers' compensation 257
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 22,821
Total operating expenses 193,493
Financial expenses
6820 Interest on mortgage (or bonds) payable 15,759
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 90,762
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
-
Total financial expenses
6800T 106,521
Total nursing home/astd. living/board care/other elderly 6900T expenses -
Total cost of operations before depreciation
6000 Operating profit (loss) 300,014
5060 869
Depreciation and amortization expenses
6600 Depreciation expense 132,022
6610 Amortization expense -
5060N Operating profit (loss) (131,153)
Net entity expenses
7190 Other expenses -
7100T Total net entity expenses -
3250 Change in total net assets from operations (net loss) $ (131,153)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
GARCIA (HCD CONTRACT NO. 90-RHCP-009)
YEAR ENDED JUNE 30, 2017
74 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2016 $ 145,105
Required deposits 16,323
Other deposits -
Interest earned 76
Withdrawals - capitalized (3,000)
Withdrawals - expensed -
Withdrawals - prior year (35,100)
Bank fees -
Balance, June 30, 2017 $ 123,404
Operating
Reserve
Balance, July 1, 2016 $ 170,744
Required deposits 6,484
Other deposits 454
Interest earned 87
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2017 $ 177,769
Partnership
Account
Balance, July 1, 2016 $ 24,669
Required deposits -
Interest earned 12
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2017 $ 24,681

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
75 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture
Land Buildings Equipment Total
Balance, July 1, 2016 $ 1,181,920 $ 3,849,008 $ - $ 5,030,928 Additions - 3,000 - 3,000
Balance, June 30, 2017 $ 1,181,920 $ 3,852,008 $ - $ 5,033,928 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee
General
Partner fee Total
Balance, July 1,
2016 $ - $ - $ - $ 186,025 $ -
Expense 3,420 1,530 24,497 - 29,447
Payment (3,420) (1,530) (24,497) (32,640) (62,087)
Balance, June 30,
2017 $ - $ - $ - $ 153,385 $ (32,640)
Supportive services
Resident services fee $ 1,530

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

A property management fee of $25,200 was incurred during 2017 for the property management services provided by Community Corporation of Santa Monica.
76 GARCIA (HCD CONTRACT NO. 90-RHCP-009)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 300,883
Interest earned on restricted reserve accounts (189)
Adjusted operating income 300,694
Operating expenses (193,493)
Adjusted net income 107,201
Other activity
Mandatory debt service (51,580)
Plus disposal of fixed asset included in operating expenses above - Deposits into reserve for replacements account (16,323) Deposits into other restricted accounts per regulatory agreement (6,938) Capital improvements (3,000)
Withdrawals from reserve for replacements account included in property and equipment 3,000
Withdrawals from reserve for replacements account included in operating expenses -
Total other activity (74,841)
Operating cash flow/surplus cash $ 32,360
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ 32,360 Distributions and loan payments
Maximum Sponsor Distribution ($62,739) $ 32,360
Paid as follows per regulatory agreement
100% to HCD loan -
Total distributions to lenders -
Total distributions to owners and lenders $ 32,360

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
77 Rent revenue
5120 Rent revenue - gross potential $ 80,991
5121 Tenant assistance payments 25,736
5140 Rent revenue - stores and commercial -
5170 Rent revenue - garage and parking -
5180 Flexible subsidy revenue -
5190 Miscellaneous rent revenue -
5100T Total rent revenue 106,727
Vacancies
5220 Apartments -
5240 Stores and commercial -
5250 Rental concessions -
5270 Garage and parking spaces -
5290 Miscellaneous -
5200T Total vacancies -
5152N Net rental revenue (rental revenue less vacancies) 106,727 Financial revenue
5410 Financial revenue - project operations 37
5430 Revenue from investments - residual receipts -
5440 Revenue from investments - reserve for replacements 42 5490 Revenue from investments - miscellaneous 24
5400T Total financial revenue 103
Other revenue
5910 Laundry and vending revenue -
5920 Tenant charges 165
5990 Miscellaneous revenue -
5900T Total other revenue 165
5000T Total revenue $ 106,995

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2017
78 Administrative expenses
6203 Conventions and meetings $ -
6204 Management consultants -
6210 Advertising and marketing -
6250 Other renting expenses 115
6310 Office salaries -
6311 Office expenses 258
6312 Office or model apartment rent -
6320 Management fee 9,792
6330 Manager or superintendent salaries 1,071
6331 Administrative rent free unit -
6340 Legal expense - property -
6350 Audit expense 2,486
6351 Bookkeeping fees/accounting services 1,368
6370 Bad debts 82
6390 Miscellaneous administrative expenses 612
6263T Total administrative expenses 15,784
Utilities expenses
6450 Electricity 2,424
6451 Water 4,069
6452 Gas -
6453 Sewer 2,687
6400T Total utilities expenses 9,180
Operating and maintenance expenses
6510 Payroll -
6515 Supplies 5,868
6520 Contracts 21,822
6521 Operating and maintenance rent free unit -
6525 Garbage and trash removal 4,992
6530 Security payroll/contracts 2,532
6531 Security rent free unit -
6546 Heating/cooling repairs and maintenance -
6548 Snow removal -
6570 Vehicle and maintenance equipment operation and repairs - 6580 Lease expense -
6590 Miscellaneous operating and maintenance expenses 12,060 6590-010 Description: CCSM maintenance fees
6590-020 Amount: $ 12,060
6500T Total operating and maintenance expenses $ 47,274

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2017
79 Taxes and insurance
6710 Real estate taxes $ 5,169
6711 Payroll taxes (Property's share) 82
6720 Property and liability insurance (hazard) 4,301
6721 Fidelity bond insurance -
6722 Workers' compensation 74
6723 Health insurance and other benefits -
6790 Miscellaneous taxes, licenses, permits and insurance 800 6700T Total taxes and insurance 10,426
Total operating expenses 82,664
Financial expenses
6820 Interest on mortgage (or bonds) payable -
6825 Interest on other mortgages -
6830 Interest on notes payable (long term) 38,058
6840 Interest on notes payable (short term) -
6850 Mortgage insurance premium/service charge -
6890 Miscellaneous financial expenses -
6800T Total financial expenses 38,058
6900T Total nursing home/astd. living/board care/other elderly expenses -
6000 Total cost of operations before depreciation 120,722 5060 Operating profit (loss) (13,727)
Depreciation and amortization expenses
6600 Depreciation expense 67,324
6610 Amortization expense -
5060N Operating profit (loss) (81,051)
Net entity expenses
7190 Other expenses -
7100T Total net entity expenses -
3250 Change in total net assets from operations (net loss) $ (81,051)

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
YEAR ENDED JUNE 30, 2017
80 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Reserve for replacements and operating expenses
Reserve for
Replacements
Balance, July 1, 2016 $ 82,207
Required deposits 4,000
Other deposits -
Interest earned 42
Withdrawals - capitalized -
Withdrawals - expensed -
Withdrawals - prior year -
Bank fees -
Balance, June 30, 2017 $ 86,249
Operating
Reserve
Balance, July 1, 2016 $ 39,692
Required deposits 3,342
Interest earned 20
Withdrawals - capitalized -
Withdrawals - expensed -
Balance, June 30, 2017 $ 43,054

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
In accordance with the provisions of the regulatory agreement, restricted cash is to be used for replacements of property or other reserve requirements with the approval of HCD, as follows:
81 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Property, equipment and improvements
Following are the details of property, equipment and improvements:

Furniture and Construction
Land Buildings Equipment in Progress Total
Balance, July 1, 2016 $ 341,000 $ 1,419,319 $ 2,628 $ 2,640 $ 1,765,587 Additions - - - 257,872 257,872
Balance, June 30, 2017 $ 341,000 $ 1,419,319 $ 2,628 $ 260,512 $ 2,023,459 Management fee
Related party
Bookkeeping
fee
Resident
services fee
Maintenance
fee Total
Balance, July 1, 2016 $ - $ - $ - $ -
Expense 1,368 612 12,060 14,040
Payment (1,368) (612) (12,060) (14,040)
Balance, June 30, 2017 $ - $ - $ - $ -
Supportive services
Resident services fee $ 612
The General Partner is entitled to an annual bookkeeping, resident services, and maintenance fee for services rendered.

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
A property management fee of $9,792 was incurred during 2017 for the property management services provided by Community Corporation of Santa Monica.
82 VIRGINIA VILLAGE (HCD CONTRACT NO. 91-RHCP-097)
Surplus cash computation
Operating cash flow/surplus cash will be distributed according to the HCD method.

Operating income
Total income $ 106,995
Interest earned on restricted reserve accounts (66)
Adjusted operating income 106,929
Operating expenses (82,664)
Adjusted net income 24,265
Other activity
Mandatory debt service -
Deposits into reserve for replacements account (4,000)
Deposits into other restricted accounts per regulatory agreement (3,342) Withdrawals from reserve for replacements account included in property and equipment -
Withdrawals from reserve for replacements account included in operating expenses -
Total other activity (7,342)
Operating cash flow/surplus cash $ 16,923
Distribution of operating cash flow/surplus cash
Asset management fee $ -
Pay off of the deferred developer fee amount permitted by HCD to be paid on a priority basis -
Total cash available for distributions (Net Cash Flow) $ - Distributions and loan payments
Maximum Sponsor Distribution ($23,151) $ 16,923
Paid as follows per regulatory agreement
78% to City of Santa Monica -
32% to HCD RHCP Loan -
Total distributions to lenders -
Total distributions to owners and lenders $ 16,923

COMMUNITY CORPORATION OF SANTA MONICA AND SUBSIDIARIES
(A CALIFORNIA NOT-FOR-PROFIT CORPORATION)

SUPPLEMENTARY INFORMATION - HCD (CONTINUED)
YEAR ENDED JUNE 30, 2017
83 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of
Community Corporation of Santa Monica and Subsidiaries
(A California Not-For-Profit Corporation)
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of 502 Colorado, 815 Ashland, Garcia, and Virginia Village (the "HCD Properties"), which comprise the combining statements of financial position as of June 30, 2017, and the related combining statements of activities, changes in net assets (deficit), and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated October 9, 2017.

Page 2 ends

Santa Monica City CouncilJanuary 11, 2022

Santa Monica City Council
January 11, 2022