Corporation for Supportive Housing

“During 2012, in connection with its working relationship with the connecticut housing finance authority (the "chfa"), csh was appointed as an agent for the administration of operating reserve accounts for several projects into which the chfa and various limited-liability companies (the "companies") had entered. As a result, csh maintains control of the funds deposited by the chfa to each of the companies' operating reserve accounts to assist in the operation of these projects. Under the terms of its agreement with the chfa, csh will process the corresponding drawdown requests and payments. The funds received for distribution from the chfa are reported as a restricted cash asset and corresponding liability in the accompanying consolidated financial statements. Csh receives an annual fee from each of the companies for the administration of these operating reserve accounts. During 2020, in connection with its working relationship with the connecticut department of housing (the "doh"), csh was appointed as an agent for the administration of operating reserve accounts for several projects into which the doh and various limited-liability companies (the "companies") had entered. As a result, csh maintains control of the funds deposited by the doh to each of the companies' operating reserve accounts to assist in the operation of these projects. Under the terms of its agreement with the doh, csh will process the corresponding drawdown requests and payments. The funds received for distribution from the doh are reported as a restricted cash asset and corresponding liability in the accompanying consolidated financial statements. Csh receives compensation from doh for the administration of these operating reserve accounts under a separate contract.”

“Csh is exempt from income taxes under section 501(c)(3) of the u.s. Internal revenue code (the "irc") and from state and local taxes under comparable laws. The hc uses the asset and liability method to account for deferred income taxes. Under this method,assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts and the respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in the period that includes the enactment date. Deferred tax assets are only recognized to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors. As of december 31, 2024 and 2023, the hc did not engage in activity requiring the recognition of a deferred tax asset or liability or recording a current provision for income taxes. Csh is the single member of the solutions fund. As such, the solutions fund is treated as a disregarded entity under the irc and csh reports the activities of the solutions fund and the existence of its controlling interest in the solutions fund on csh's tax return. Csh is the single member of the denver sippra, llc. As such, the denver sippra, llc is treated as a disregarded entity under the irc and csh reports the activities of the denver sippra, llc and the existence of its controlling interest in the denver sippra, llc on csh's tax return. Csh and the hc are required to file and do file tax returns with the internal revenue service ("irs") and other taxing authorities. Income tax returns filed by csh and the hc are subject to examination by the irs for a period of three years. While no income tax returns are currently being examined by the irs, tax years since 2021 remain open.”