585 Lexington Benefit Corporation

“Management reviewed the form 990 in detail and provided a copy to the board of directors for their review and comment prior to filing.”

“The organization requires the members of the board and key members of management to complete a conflict of interest form yearly and the organization collects these forms and keeps them.”

“All documents are available by request.”

“The organization was formed on november 19, 2024 and this is its first year filing a form 990. Therefore all activities have not been previously reported on a form 990.”

“Contracted services procured from foodlink, inc.: program service expenses 151,275. Management and general expenses 3,448. Fundraising expenses 0. Total expenses 154,723.”

“Contribution to foodlink, inc. -1,966,039.”

“There were no changes to the organization's oversight process during the current year.”

“In december 2024, the organization, foodlink, the foodlink foundation, inc. (the foundation), and a third-party bank entered into an arrangement to obtain new market tax credits (nmtc) to finance certain capital projects to expand foodlink's food bank, community kitchen, curbside market, and foodlink farm. The nmtc program was established to encourage private investment in low-income communities. Through this program, a private investor partners with an organization that serves such communities through the formation of a community development entity (cde). The cde channels investor capital, via low-interest loans and/or equity investments, to businesses and not-for-profit organizations with development projects in low-income areas. The investor receives federal tax credits equal to 39% of the total project costs, to be received over seven years. The cde also obtains funding from a "leveraged lender" in an amount that enhances the community impact of each project and allows for a tax credit claim that provides an appropriate return to the investor. These development projects are known as qualicbs. After the end of the seven-year tax credit claim period, the investor typically transfers or sells its ownership interest in the cde to the not-for-profit organization for little to no consideration and the arrangement is "unwound," with the assets financed through the cde becoming assets of the not-for-profit organization. Given this sequence of transactions, the not-for-profit organization obtains the long-term benefit of the investment in the project without having to incur or repay the initial capital investment. The organization, foodlink, the foundation, and a third-party bank entered into a qualicb arrangement in december 2024 related to foodlink's community farm program site at 585 lexington avenue. The organization serves as qualicb for this project. The foundation serves as the leveraged lender for the project. At june 30, 2025, the organization had loans payable to the cde totaling $2,400,000 that were originated as part of the funding of the qualicb in december 2024. Also in december 2024, foodlink and the investor entered into a "put and call agreement" that allows foodlink to purchase the cde for $1,000 after the end of the tax credit period, effectively ensuring that the "unwinding" process can occur at that time. Foodlink and the organization expect that the put and call agreement will be executed after the tax credit period is complete and the unwinding process will include forgiveness of these loan balances. This expectation does not affect the recording of these liabilities as of june 30, 2025.”