2023-04-17T20:34:26-05:00 2022-06-30 953132551 JGD & ASSOCIATES LLP 9191 TOWNE CENTRE DRIVE 340 SAN DIEGO CA 921221274 990 2021-07-01 330259190 SAN DIEGO HABITAT FOR HUMANITY INC SAND 6192834663 8128 MERCURY COURT SAN DIEGO CA 92111 KWOFI REED PRESIDENT & CEO 6192834663 2023-04-14 1 KWOFI REED 999009999 DANIEL P SCHREIBER P00089202 8585871000 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z ANDREA PETRAY 8128 MERCURY COURT SAN DIEGO CA 92111 11292060 0 X WWW.SANDIEGOHABITAT.ORG X 1988 CA SAN DIEGO HABITAT PARTNERS WITH PEOPLE IN NEED OF IMPROVED HOUSING TO BUILD AND REPAIR HOMES. 21 21 48 2493 0 0 3301294 5676109 2880235 3593964 97989 0 -116030 -168475 6163488 9101598 0 0 0 0 2378068 2710869 0 0 899114 4093084 6195563 6471152 8906432 -307664 195166 17424275 17987531 14134479 14280701 3289796 3706830 X SEEKING TO PUT GOD'S LOVE INTO ACTION, SAN DIEGO HABITAT FOR HUMANITY BRINGS PEOPLE TOGETHER TO BUILD HOMES, COMMUNITIES, AND HOPE. 0 0 5094687 1407851 PEOPLE IN OUR COMMUNITY AND ALL OVER THE WORLD PARTNER WITH HABITAT FOR HUMANITY TO BUILD OR IMPROVE A PLACE THEY CAN CALL HOME. HABITAT HOMEOWNERS HELP BULD THEIR OWN HOMES ALONGSIDE VOLUNTEERS AND PAY AN AFFORDABLE MORTGAGE. WITH OUR HELP, HABITAT HOMEOWNERS ACHIEVE THE STRENGTH, STABILITY, AND INDEPENDENCE THEY NEED TO BUILD A BETTER LIFE FOR THEMSELVES AND THEIR FAMILIES. SAN DIEGO HABITAT FOR HUMANITY IS THE LOCAL, INDEPENDENT AFFILATE OF HABITAT FOR HUMANITY INTERNATIONAL. WE ARE GOVERNED, RAISE FUNDS, AND BUILD LOCALLY IN SAN DIEGO COUNTY. IN FISCAL YEAR 2022, SAN DIEGO HABITAT COMPLETED AND SOLD A TOTAL OF 8 HOMES SERVING 14 ADULTS AND 16 CHILDREN. THROUGH OUR HOUSING AND COMMUNITY SERVICES PROGRAM, SDHFH EXPANDS OUR MISSION TO PRESERVE EXISTING AFFORDABLE HOUSING BY REPAIRING HOMES CURRENTLY OWNED BY FAMILIES EARNING LOW INCOMES. IN FY22, WE REPAIRED 6 HOMES, SERVING 11 INDIVIDUALS. SAN DIEGO COUNTY HAS ONE OF THE LARGEST POPULATIONS OF MILITARY PERSONNEL AND IS HOME TO MORE THAN 400,000 VETERANS. THROUGH OUR VETERAN REPAIR PROGRAM, WE REPAIRED 4 HOMES AND SERVED 5 VETERANS AND THEIR FAMILIES. HABITAT USES VOLUNTEERS TO HELP BUILD AND REPAIR HOMES. IN FY22, 2,493 VOLUNTEERS COMPLETED 25,268 HOURS IN SUPPORT OF OUR HOME CONSTRUCTION AND REPAIR PROGRAMS. 2186113 2021987 IN ADDITION TO BUILDING AND REPAIRING HOMES, HABITAT FOR HUMANITY OPERATES RESTORES, DISCOUNT HOME IMPROVEMENT CENTERS, LOCATED IN SAN DIEGO, ESCONDIDO AND NATIONAL CITY THAT ACCEPT DONATIONS OF NEW AND USED BUILDING MATERIALS AND HOME FURNISHINGS TO SELL TO THE PUBLIC IN SUPPORT OF HABITAT'S HOMEBUILDING MISSION. 3700 FINALLY, ACKNOWLEDGING GOD'S ABUNDANT PROVISION, SAN DIEGO HABITAT FOR HUMANITY SHARES ITS FIRST-FRUITS THROUGH THE PRACTICE OF TITHING A DISCRETIONARY PORTION OF UNDESIGNATED CASH CONTRIBUTIONS TOWARD HABITAT FOR HUMANITY INTERNATIONAL'S WORLDWIDE HOUSE-BUILDING EFFORTS. IN FISCAL YEAR 2022, OUR TITHING SUPPORTED HOUSE BUILDING IN THE SMALL, LANDLOCKED AFRICAN COUNTRY OF LESOTHO. 7284500 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 28 0 1 48 1 0 0 0 0 0 0 0 0 0 0 X 21 21 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 CA X X X ALISON WEBER 7607074927 8128 MERCURY COURT SAN DIEGO CA 92111 ANDREA PETRAY CHAIR 2.00 X X 0 0 0 XIOMARA ARROYO VICE CHAIR 2.00 X X 0 0 0 SARAH MORRELL SECRETARY 2.00 X X 0 0 0 JOSEPH BOGASKI TREASURER 2.00 X X 0 0 0 ALEYDA ORTIZ BOARD MEMBER 1.00 X 0 0 0 CHARLES LICKEL BOARD MEMBER 1.00 X 0 0 0 EDWARD SCARPELLI BOARD MEMBER 1.00 X 0 0 0 ELIZABETH RODRIGUEZ BOARD MEMBER 1.00 X 0 0 0 JANET BERONIO BOARD MEMBER 1.00 X 0 0 0 JOHN NEAGLEY BOARD MEMBER 1.00 X 0 0 0 MARTHA ZAPATA BOARD MEMBER 1.00 X 0 0 0 MICHAEL O'NEAL BOARD MEMBER 1.00 X 0 0 0 PAT GETZEL BOARD MEMBER 1.00 X 0 0 0 PAVEL CONSUEGRA BOARD MEMBER 1.00 X 0 0 0 RODNEY BRUCE BOARD MEMBER 1.00 X 0 0 0 STACY WEBER BOARD MEMBER 1.00 X 0 0 0 TIMOTHY DAHLQUIST BOARD MEMBER 1.00 X 0 0 0 KWOFI REED PRESIDENT & CEO 40.00 X X 7115 0 0 KEVIN GERAGHTY BOARD MEMBER 1.00 X 0 0 0 SUZANNE SCHLUNDT BOARD MEMBER 1.00 X 0 0 0 ALISON WEBER CFO 40.00 X 157625 0 14963 KAREN BEGIN DIRECTOR OF DEVELOPMENT 40.00 X 131161 0 11834 ANNE KILPATRICK CHIEF ADMINISTRATIVE OFFIC 40.00 X 141361 0 11225 LORI HOLT PFEILER FORMER PRESIDENT & CEO 0.00 X 94334 0 7482 531596 0 45504 4 0 1 0 RANDSTAD PO BOX 894217 LOS ANGELES CA 90189 TEMPORARY LABOR AGENCY 162949 6 155218 730700 4790191 1850300 5676109 SALE OF HOMES 531390 3282968 3282968 MORTGAGE LOAN DISCOUNT AMORTIZATI 531390 301836 301836 OTHER PROGRAM REVENUE 531390 9160 9160 3593964 0 155218 4349 -4349 -4349 2021987 2186113 -164126 -164126 9101598 3429838 0 -4349 649991 213494 186040 250457 1753194 1174130 170141 408923 46229 31528 4567 10134 103050 70280 10181 22589 158405 129510 18762 10133 4824 4824 35975 35975 202560 84485 96409 21666 297915 175933 3876 118106 576468 509272 33202 33994 407377 337477 55594 14306 28700 28700 234512 157027 77485 COST OF HOMES SOLD 3419596 3419596 MORTGAGE DISCOUNT SUBSI 764189 764189 VEHICLE EXPENSES AND MI 119732 116146 1118 2468 CONSTRUCTION MATERIALS 72216 72216 31499 517 24644 6338 8906432 7284500 722818 899114 2044150 803897 371259 752172 5005800 7370855 363185 189256 69593 123192 6720303 1318872 5370013 5401431 1188646 0 3011629 3346728 17424275 17987531 644927 2263280 106667 0 13378812 12010446 4073 6975 14134479 14280701 X 2871961 3320662 417835 386168 3289796 3706830 17424275 17987531 195166 221868 0 X X 0 1 X 1 1 1 X 4195391 4196672 4123699 3519077 3405311 19440150 4195391 4196672 4123699 3519077 3405311 19440150 19440150 24330 42662 3010 97989 -13985 154006 19594156 0.99210 0.98990 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 417834 50 -14177 15712 1828 386167 336901 97989 15363 1693 417834 349097 4687 15206 1677 336901 352424 13238 14881 1684 349097 345588 23364 14774 1754 352424 0.97000 0.03000 1 0 1874778 1874778 4418039 1200174 3217865 427486 118698 308788 5401431 BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FNDN 386168 CONSTRUCTION IN PROCESS 1449349 DEPOSITS 20343 RIGHT OF USE ASSET 1490868 3346728 BENEFITS LIABILITIES 6975 6975 X 9323466 221868 221868 9101598 0 9101598 8906432 0 8906432 0 8906432 PART IV, LINE 2B: AS PART OF THE MORTGAGE SERVICING PROCESS, SDHFH COLLECTS MONTHLY AMOUNTS FOR PROPERTY TAXES AND INSURANCE FROM THE HOMEOWNERS, ALONG WITH THEIR MONTHLY MORTGAGE PAYMENTS. SDHFH THEN REMITS THE PROPERTY TAXES AND INSURANCE, WHEN DUE, TO THE COUNTY TAX COLLECTOR AND INSURANCE PROVIDERS, USING THE IMPOUNDED FUNDS. PART X, LINE 2: SDHFH, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED, AND THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. FOR THE YEARS ENDED JUNE 30, 2022 AND 2021, MANAGEMENT OF SDHFH BELIEVES IT HAS ADEQUATE SUPPORT FOR ALL MATERIAL TAX POSITIONS AND THAT IT IS MORE LIKELY THAN NOT, BASED ON THE TECHNICAL MERITS, THAT THE POSITIONS WILL BE SUSTAINED UPON EXAMINATION. SDHFH HAS ANALYZED THE TAX POSITIONS TAKEN IN ITS FILINGS WITH THE INTERNAL REVENUE SERVICE AND THE CALIFORNIA FRANCHISE TAX BOARD. SDHFH BELIEVES THAT ITS INCOME TAX FILING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DOES NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON THE SDHFH'S FINANCIAL CONDITION, RESULTS OF OPERATIONS OR CASH FLOWS. ACCORDINGLY, SDHFH HAS NOT RECORDED ANY RESERVES, OR RELATED ACCRUALS FOR INTEREST AND PENALTIES, FOR UNCERTAIN INCOME TAX POSITIONS AT JUNE 30, 2022 AND 2021. MANAGEMENT CONTINUALLY EVALUATES EXPIRING STATUTES OF LIMITATIONS, AUDITS, PROPOSED SETTLEMENTS, CHANGES IN TAX LAW AND NEW AUTHORITATIVE RULINGS. WOMEN BUILD 155218 155218 3538 811 155218 155218 3538 811 4349 -4349 X X X 0 0 0 0 0 0 0 0 0 ALISON WEBER CFO 157625 0 0 0 0 0 0 0 14963 0 172588 0 0 0 ANNE KILPATRICK CHIEF ADMINISTRATIVE OFFIC 141361 0 0 0 0 0 0 0 11225 0 152586 0 0 0 X BUILDING ITEMS FOR RESALE 5347 2011520 FMV X CONSTRUCTION SUPPLIES AND MATERIALS 2 101622 FMV X APPLIANCES 1 10223 FMV 0 1 0 FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE A COMMITTEE THAT HAS THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BOARD. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD WILL REVIEW AND DISCUSS THE 990 PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE BOARD SECRETARY SHALL DISTRIBUTE A CONFLICT OF INTEREST QUESTIONNAIRE TO EACH DIRECTOR, OFFICER, AND EXECUTIVE DIRECTOR. EACH INTERESTED PERSON MUST COMPLETE AND RETURN THE QUESTIONNAIRE IN A TIMELY MANNER. ANY CONFLICTS DISCLOSED ON THE QUESTIONNAIRE SHALL BE RESOLVED ACCORDING TO THE GUIDELINES. AN INTERESTED PERSON SHALL MAKE AN APPROPRIATE DISCLOSURE OF ALL MATERIAL FACTS, INCLUDING THE EXISTENCE OF ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST OR ETHICAL QUESTION, WHENEVER SUCH A SITUATION ARISES. SUCH DISCLOSURE SHALL BE MADE FIRST TO THE CHAIR OF THE BOARD; PROVIDED, HOWEVER, THAT IF THE CHAIR HAS THE POTENTIAL CONFLICT, DISCLOSURE SHALL BE MADE TO THE EXECUTIVE DIRECTOR, WHO SHALL TAKE THE MATTER UP WITH THE REMAINING MEMBERS OF THE EXECUTIVE COMMITTEE OF THE BOARD. THE INTERESTED PERSON SHALL BE ENTITLED TO MAKE A PRESENTATION TO THE BOARD IF HE OR SHE BELIEVES THAT THE POTENTIALLY CONFLICTING INTEREST DOES NOT, IN FACT, PRESENT A DISQUALIFYING CONFLICT OF INTEREST. AFTER THE DISCLOSURE REQUIRED OF AN INTERESTED PERSON, AND ANY PRESENTATION MADE TO THE BOARD, A DETERMINATION WILL BE MADE AS TO THE EXISTENCE OF A CONFLICT OF INTEREST. DETERMINATION WILL BE MADE ON A CASE-BY-CASE BASIS WHETHER A CONFLICT EXISTS AND, IF SO, THE APPROPRIATE METHOD FOR PROCEEDING, IN THE SOLE REASONABLE DISCRETION OF THE DETERMINING PERSON OR BODY. FACTORS THE DECISION-MAKING PERSON(S) SHALL CONSIDER WILL INCLUDE THE PROXIMITY OF THE INTERESTED PERSON'S INTEREST TO THE DECISION AT ISSUE, WHETHER THE INTERESTED PERSON'S INTEREST IS DE MINIMIS; THE DEGREE TO WHICH THE INTERESTED PERSON MIGHT PERSONALLY BENEFIT FROM THE TRANSACTION AT ISSUE. IF IT IS DETERMINED THAT AN ACTUAL CONFLICT OF INTEREST EXISTS, THEN THE MATTER CAN ONLY BE RESOLVED BY (I) THE RECUSAL OF THE INTERESTED PERSON FROM ANY DISCUSSION OR OTHER INVOLVEMENT IN THE DECISION THAT IS THE SUBJECT OF OR AFFECTED BY THE CONFLICT; OR (III) WAIVER BY THE BOARD OR EXECUTIVE DIRECTOR, UNDER CIRCUMSTANCES THAT ARE RECORDED IN THE MINUTES OF THE BOARD OR BY MEMORANDUM TO THE BOARD FROM THE EXECUTIVE DIRECTOR, AS APPROPRIATE, OR (III) IF THE TRANSACTION INVOLVES "SELF-DEALING" AS THAT TERM IS USED IN CALIFORNIA CORPORATIONS CODE SECTION 5233, THEN IF THE TRANSACTION IS APPROVED BY A SUPER-MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION CONSISTS OF REVIEWING COMPARABLE SALARIES FOR NON-PROFIT ORGANIZATION POSITIONS IN CONSTRUCTION OR SIMILAR ASSOCIATIONS BASED IN SAN DIEGO COUNTY AND APPROVAL BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 18 THE FORM 990 IS PUBLISHED ON THE ORGANIZATION'S WEBSITE AS WELL AS THE CHARITY NAVIGATOR AND GUIDESTAR WEBSITES. FORM 990, PART VI, SECTION C, LINE 19 - GOVERNING DOCUMENTS ARE ON FILE WITH THE CALIFORNIA SECRETARY OF STATE AND CAN BE ACCESSED BY THE GENERAL PUBLIC - THE CONFLICT OF INTEREST POLICY IS AVAILABLE UPON REQUEST. - AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS OF THE PUBLIC ON THE ORGANIZATION'S WEBSITE. SCHEDULE D PART VIII - INVESTMENTS - PROGRAM RELATED IN APRIL 2018, SDHFH PARTICIPATED IN A NEW MARKETS TAX CREDIT ("NMTC") FINANCING TRANSACTION WITH OTHER ENTITIES IN ORDER TO PROCURE FINANCING FOR THE CONSTRUCTION OF 16 HOMES 8 AT COMM22 IN SAN DIEGO, 5 ON BALLANTYNE STREET IN EL CAJON AND 3 ON GROSSMONT AVENUE IN EL CAJON. THE NMTC PROGRAM PERMITS CORPORATE AND INDIVIDUAL TAXPAYERS TO RECEIVE A CREDIT AGAINST FEDERAL INCOME TAXES FOR MAKING QUALIFIED EQUITY INVESTMENTS IN QUALIFIED COMMUNITY DEVELOPMENT ENTITIES ("CDE"). AS A PARTICIPANT IN THIS TRANSACTION, SDHFH INVESTED $1,212,933 INTO HFHI NMTC LEVERAGE LENDER 2018, LLC ("HFHI LEVERAGE LENDER"), CONSISTING OF CASH AND QUALIFIED CONSTRUCTION-IN-PROCESS. THE HFHI LEVERAGE LENDER CONTRIBUTED ITS RESOURCES TO TWAIN INVESTMENT FUND 306, LLC ("INVESTMENT FUND"), WHICH RECEIVED ADDITIONAL INVESTMENT FROM U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION ("BANK") AS THE FEDERAL TAX CREDIT INVESTOR UNDER THE NMTC PROGRAM. AS PART OF THE NMTC PROGRAM, THE INVESTMENT FUND INVESTED IN HFHI NMTC SUB-CDE III, LLC, A QUALIFIED CDE. THE CDE DEPLOYED A LOAN TO SDHFH IN THE AMOUNT OF $1,786,082 AT AN ANNUAL INTEREST RATE OF 0.679239% FOR THE CONSTRUCTION OF HOMES IN A QUALIFIED CENSUS TRACT FOR LOW INCOME PERSONS. SEMI-ANNUAL INTEREST-ONLY PAYMENTS ARE REQUIRED THROUGH APRIL 19, 2025. AFTER APRIL 19, 2025, SDHFH SHALL MAKE SEMI-ANNUAL PAYMENTS IN AN AMOUNT SUFFICIENT TO FULLY AMORTIZE THE REMAINING PRINCIPAL BALANCE OVER TWENTY-THREE YEARS. THE LOAN PROCEEDS ARE TO BE USED SOLELY IN ACCORDANCE WITH NMTC COMPLIANCE REQUIREMENTS. THE INVESTMENT FUND MAY BE SUBJECT TO TAX CREDIT RECAPTURE IF THE NMTC PROGRAM COMPLIANCE REQUIREMENTS ARE NOT MET OVER A SEVEN-YEAR PERIOD. THE ULTIMATE HOLDER OF THE ABOVE LOAN FROM THE CDE TO SDHFH IS THE BANK THROUGH ITS PARTICIPATION IN THE INVESTMENT FUND. IN APRIL 2025, THE BANK HAS THE OPTION TO WAIVE THE PAYMENT OF THE DEBT BY EXERCISING ITS PUT OPTION AGREEMENT. UNDER THE TERMS OF THE PUT OPTION AGREEMENT, THE HFHI LEVERAGE LENDER HAS THE OPTION TO PURCHASE THE BANK'S OWNERSHIP INTEREST IN THE INVESTMENT FUND. IF THE OPTION IS EXERCISED IT WILL EFFECTIVELY EXTINGUISH SDHFH'S OUTSTANDING DEBT TO THE BANK. SCHEDULE D PART VIII - INVESTMENTS - PROGRAM RELATED IN NOVEMBER 2021, SDHFH ENTERED INTO A NEW MARKET TAX CREDIT ("NMTC") FINANCING AGREEMENT WITH VARIOUS OTHER ENTITIES IN ORDER TO PROCURE FINANCING FOR THE CONSTRUCTION OF 15 HOMES - 5 IN NATIONAL CITY AND 10 IN ESCONDIDO. THE NMTC PROGRAM PERMITS CORPORATE AND INDIVIDUAL TAXPAYERS TO RECEIVE A CREDIT AGAINST FEDERAL INCOME TAXES FOR MAKING QUALIFIED EQUITY INVESTMENTS IN QUALIFIED COMMUNITY DEVELOPMENT ENTITIES ("CDE"). AS A PARTICIPANT IN THIS TRANSACTION, SDHFH INVESTED $1,679,412 INTO HFHI NMTC LEVERAGE LENDER 2021, LLC ("HFHI LEVERAGE LENDER"), CONSISTING OF CASH AND QUALIFIED CONSTRUCTION-IN-PROCESS. THE HFHI LEVERAGE LENDER CONTRIBUTED ITS RESOURCES TO TWAIN INVESTMENT FUND 544, LLC ("INVESTMENT FUND"), WHICH RECEIVED ADDITIONAL INVESTMENT FROM U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION ("BANK") AS THE FEDERAL TAX CREDIT INVESTOR UNDER THE NMTC PROGRAM. AS PART OF THE NMTC PROGRAM, THE INVESTMENT FUND INVESTED IN HFHI NMTC SUB-CDE IV, LLC, A QUALIFIED CDE. THE CDE IS THE CONDUIT FOR ACCOMPLISHING THE NMTC PROGRAM SPECIFICS OF CONSTRUCTING AND SELLING QUALIFIED HOUSING PROPERTIES TO LOW INCOME RESIDENTS. UNDER THE CDE, SDHFH WAS ABLE TO SECURE A LOAN IN THE AMOUNT OF $2,273,349 AT AN ANNUAL INTEREST RATE OF 0.737931%. SEMI-ANNUAL INTEREST-ONLY PAYMENTS ARE REQUIRED THROUGH NOVEMBER 5, 2028. AFTER JANUARY 1, 2029, SDHFH SHALL MAKE SEMI-ANNUAL PAYMENTS IN AN AMOUNT SUFFICIENT TO FULLY AMORTIZE THE REMAINING PRINCIPAL BALANCE OVER TWENTY-THREE YEARS. THE LOAN PROCEEDS ARE TO BE USED SOLELY IN ACCORDANCE WITH NMTC COMPLIANCE REQUIREMENTS. THE INVESTMENT FUND MAY BE SUBJECT TO TAX CREDIT RECAPTURE IF THE NMTC PROGRAM COMPLIANCE REQUIREMENTS ARE NOT MET OVER A SEVEN-YEAR PERIOD. THE ULTIMATE HOLDER OF THE ABOVE LOAN FROM THE CDE TO SDHFH IS THE BANK THROUGH ITS PARTICIPATION IN THE INVESTMENT FUND. IN NOVEMBER 2028, THE BANK IS EXPECTED TO WAIVE THE PAYMENT OF THE DEBT SO AS TO PARTICIPATE IN THE NMTC PROGRAM BY EXERCISING ITS PUT OPTION AGREEMENT. UNDER THE TERMS OF THE PUT OPTION AGREEMENT, THE HFHI LEVERAGE LENDER IS EXPECTED TO PURCHASE THE BANK'S OWNERSHIP INTEREST IN THE INVESTMENT FUND. EXERCISE OF THE OPTION WILL EFFECTIVELY ALLOW SDHFH TO EXTINGUISH ITS OUTSTANDING DEBT TO THE BANK. SDHFH FUNDING COMPANY I LLC 8128 MERCURY CT SAN DIEGO CA 92111 ACQUIRING AND HOLDING MORTGAGE LOANS AND RELATED DOCUMENTS CA 53694 1888137 N/A SAN DIEGO HFH COMMUNITY HOUSING CORP 8128 MERCURY CT SAN DIEGO CA 92111 330902043 FUNDING CA 501(C)(3) LINE 7 N/A 0 HABITAT FOR HUMANITY INTERNATIONAL INC 270 PEACHTREE STREET SUITE 1300 ATLANTA GA 30303 911914868 TO BUILD HOMES & COMMUNITIES GA 501(C)(3) LINE 7 N/A 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 HABITAT FOR HUMANITY INTERNATIONAL INC B 3700 CASH HABITAT FOR HUMANITY INTERNATIONAL INC D 8814 CASH HABITAT FOR HUMANITY INTERNATIONAL INC L 17000 CASH