Innovative Housing Opportunities Inc.

“The organization has been granted tax-exempt status by the internal revenue code section 501(c)(3) and california revenue and taxation code section 23701(d) and, accordingly, is not subject to federal or state taxes on income. In addition, the organization has been classified by the internal revenue service as publicly supported organization under section 509(a)(2). The organization's current accounting policy is to evaluate uncertain tax positions. Accordingly, a loss contingency is recognized when it is probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. Management believes that there are no uncertain tax positions. Income taxes on organization income are levied on the partners at the partner level. Accordingly, all profits and losses of the organization are recognized by each partner on its respective tax return. The preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires the organization to report information regarding its exposure to various tax positions taken by the organization. Management has determined whether any tax positions have met the recognition threshold and has measured the organization's exposure to those tax positions. Management believes that the organization has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal tax authorities generally have the right to examine and audit the previous three years of tax returns filed. California tax authorities generally have the right to examine and audit the previous four years of tax returns filed. Any interest or penalties assessed to the organization are recorded in operating expenses. No interest or penalties from federal or state tax authorities were recorded in the accompanying financial statements.”

“Revenue reported on woodbridge manor's tax return”

“Intercompany activities eliminated on financial statements”

“Expenses reported on woodbridge manor's tax return”

“Intercompany activities eliminated on financial statements”