Affordable Housing and Services Collaborative Inc.

PART X, LINE 2:

“Ahsc, inc. Is qualified under 501(c)(3) of the internal revenue code and is exempt from federal and state income taxes except for net revenue derived from any unrelated business activities. The corporation's subsidiaries, with the exception of fairways manager and melville manager, are limited partnerships and limited liability companies and have elected to be treated as pass-through entities for income tax purposes and, as such, are not subject to income taxes. Melville manager has elected to be taxed as a corporation for federal income tax purposes. All related taxes paid by melville manager are included in federal and state income taxes on the accompanying consolidated statements of activities. The other subsidiaries' taxable income or loss and tax credits are allocated to partners/members in accordance with their respective percentage ownership and are reported by their owners on their respective income tax returns. Therefore, no provision or liability for income taxes for these subsidiaries has been included in the consolidated financial statements. Management has evaluated the corporation's tax positions and concluded that the corporation had taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the corporation is no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for years before 2014. On december 22, 2017, the president of the united states signed into law the tax cuts and jobs act ("tcja") tax reform legislation. This legislation makes significant changes in u.s. Tax law including numerous changes to individual and corporate tax rules that may impact real estate investors. Since a majority of the subsidiaries are pass-through entities, the passing of the tcja will not significantly impact the corporation's consolidated financial statements.”