Los Angeles Conservancy

“The conservancy will from time to time inspect each easement property to determine whether the terms of the easement are being complied with and to enforce the easement if there is an issue with compliance. Should the conservancy find that a violation of the easement has occurred it will enforce its easement by all legal and other remedies available. The conservancy may require restoration of the property to the condition and appearance that existed prior to the violation. Alternatively, the conservancy may restore the property to its prior condition and be reimbursed by the property owner for all costs and expenses reasonably incurred. Monetary damages are inadequate compensation for any breach of the easement. The conservancy also responds to requests from owners of easement properties to review and approve proposed work on the properties consistent with the easement.”

“The los angeles conservancy reports revenue as temporarily restricted contributions when received. Expenses incurred in monitoring historic preservation compliance is expensed in operations. Temporarily restricted net assets reported on the balance sheet will be used for legal expenses in the event donor does not comply with preservation restriction. As of year end, no legal expenses have been incurred. Text of financial statements footnote regarding easements: temporarily restricted net assets at december 31, 2020, are available for the following purposes: facade easement enforcement $ 2,015,270”

“Lac is exempt from federal and california income taxes under section 501(c)(3) of the internal revenue code and corresponding california provisions. However, lac is subject to federal tax on unrelated business income, in regard to parking and transportation expenses provided as stipulated in irc section 511. Lac does not have any other net income that management believes would be subject to unrelated business income tax, as defined. Accordingly, no provision has been made for taxes in the accompanying financial statements. Management believes that lac has adequately addressed all relevant tax positions and that there are no tax positions which must be considered for disclosure.”