Mission Housing Development Properties III Inc.

“The project is managed by caritas management corporation, a c corporation directly controlled by mission housing development corporation. Mission housing development corporation is a california nonprofit public benefit corporation related to the corporation by common members of the board of directors. Caritas is responsible for the day to day operations of the low income housing project, including maintenance of accounting records, rent collection, facility maintenance, etc.”

“There are no subcommittes of the board of directors”

“The form 990 is reviewed with the board during the annual audit presentation”

“Reviewed as part of honoring any contracts with third party vendors/service providers.”

“The corporation does not pay compensation, either as an employee or independent contractor, to any individual.one of the corporations officers and one of the corporations directors are compensated employees of mission housing development corporation, a related california nonprofit public benefit corporation (mhdc). Their salaries from mhdc are determined by the board executive committee which and are based on the salary standardization survey from the bay area local initiative support coalition.”

“The corporation does not pay compensation, either as an employee or independent contractor, to any individual.one of the corporations officers and one of the corporations directors are compensated employees of mission housing development corporation, a related california nonprofit public benefit corporation (mhdc). Their salaries from mhdc are determined by the board executive committee which and are based on the salary standardization survey from the bay area local initiative support coalition.”

“AVAILABLE UPON REQUEST”

“Client Note 1 - FORM 990, PART XI, LINE 9 - OTHER CHANGES IN NET ASSETS OR FUND BALANCESGAAP REQUIRED ADJUSTMENT TO NET ASSETS, NONRECOGNITION OF GAIN FROM SALE OF PROPERTY ON AUGUST 19, 2019 TO RELATED PARTNERSHIP TREATED UNDER GAAP AS AN ADJUSTMENT TO NET ASSETS - SALE PRICE OF ASSETS IN EXCESS OF NET BOOK VALUE AT TIME OF SALE: SALES PRICE $ 11,000,000 LESS: NET BOOK VALUE OF ASSETS ON DATE OF SALE (2,119,945) ______________ OTHER CHANGE IN NET ASSETS $ 8,880,055 ==============”

“On september 16, 2019, the organization made an unrestricted contribution of $331,180 to mission housing development corporation, a related california nonprofit public benefit corporation, in general support to be used for mhdc's exempt purpose of providing affordable housing to low-income families, the handicapped and elderly.”

“On august 19, 2019, the organization sold the land, building and improvements, constituting the low-income housing project it was operating to mhdc abel gonzalez, lp. The sale of the project to the limited partnership was made based on the fair market value determined by an independent appraisal of the property. The sale was made for the purpose of obtaining funds from an investor limited partner to fund rehabilitation of the property. The organization carried back a large seller note receivable from the limited partnership which is to be paid solely from future surplus cash generated by the limited partnership's operations of the low-income housing project, the limited partner's second installment of capital contribution, or from sale or refinancing proceeds received by the limited partnership. After rehabilitation of the property, the limited partnership will continue to be operated as a low-income housing project.”

“Gaap required adjmt direct to net assets-see supplmntl stmt = $8880055”