Sonrisa Apartments Inc.

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“The organization is included in audited consolidated financial statements for the year ended september 30, 2019. The text of the asc 740 footnote from the consolidated financial statements is as follows: the following entities are exempt from income taxes under both the federal internal revenue code and arizona income tax laws, as follows: ichd, ihc, chf, bcs, phc, mhri and sa tax status 501(c)(3), public charity status 509(a)(2). If tax status 501(c)(3), public charity status 509(a)(3) type i. Cpi tax status 501(c)(3), public charity status 509(a)(3) type ii. Cpsa tax status 501(c)(3), public charity status 509(a)(1). Cpcc, cbhp tax status disregarded entity, public charity status 509(a)(3) type ii. Cph, cphe tax status disregarded entity, public charity status 509(a)(1). Cpbs, cpih tax status c corporation. Aact, acts tax status disregarded entity. Income from certain activities not directly related to the organization's tax-exempt purpose, however, may be subject to taxation as unrelated business taxable income (ubti). Gaap requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the entities' tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. The entities are required to file informational returns for federal and state purposes and, if they have ubti, federal and state income tax returns. Management has performed its evaluation of tax positions taken for all open tax years and has determined that there were no positions taken that do not meet the "more likely than not" standard. From time to time, the organization may be subject to penalties and interest assessed by various taxing authorities, which will be classified as management and general expenses, if they occur.”