HomeMy WebLinkAboutAgenda Report - June 15, 2022 C-18CITY OF
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CALIFORNIA
AGENDA ITEM C4012
COUNCIL COMMUNICATION
AGENDA TITLE: Accept Tienda Drive Senior Apartments, L.P. Report on the Audit of Financial Statements,
Financial Statements, and Supplementary Information December 31, 2021 and 2020
MEETING DATE: June 15, 2022
PREPARED BY: Business Development Manager
RECOMMENDED ACTION Accept Tienda Drive Senior Apartments, L.P. Report on the Audit of
Financial Statements, Financial Statements, and Supplementary
Information December 31, 2021 and 2020
BACKGROUND INFORMATION: Tienda Drive Senior Apartments, L.P. was formed on December 23, 2015
to acquire, construct, develop, own and operate an 80 -unit affordable
housing development location in Lodi, currently operating under the name
of Cranes Landing Apartments. The project was placed in service in May 2017.
The City of Lodi loaned the Partnership $494,536. Payments are to be made to the City of Lodi from
excess/distributable cash with the entire principal due in full in May 2072. The Notes to Financial Statements
December 31, 2021 and 2020 state the loan bears no interest but will distribute 20.96 percent to pay the City
loan from 50 percent of the remaining excess cash after applying the excess cash to replenish the operating
reserve, payment of deferred developer fee, and payment of LP asset management fee.
Excess/distributable cash is derived from net income less deposits into replacement reserve and purchase of
property and equipment. The computations can be found on page 29 of the attached report.
Since 2017, the City has received three distributions of excess/distributable cash. These amounts are:
1) $12,180 in 2019, 2) $3,607 in 2020, and 3) $5,454 in 2021.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE Not applicable.
Astrida Trupovnieks
Astrida Trupovnieks
Business Development Manager
APPROVED: Steve Schwabauer
Stephen Schwabauer, City Manager
Tienda Drive Senior Apartments, L.P.
CalHFA Project No.: 14-017-M
Financial Statements
(With Supplementary Information)
and Independent Auditor's Report
December 31, 2021 and 2020
c)hnRezn*ick&L'
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Index
Page
Certificate of Partners
2
Management Agent's Certification
3
Independent Auditor's Report
4
Financial Statements
Balance Sheets
7
Statements of Operations
9
Statements of Partners' Equity (Deficit)
10
Statements of Cash Flows
11
Notes to Financial Statements
13
Supplementary Information
Schedules of Operating Revenue
23
Schedules of Operating Expenses
24
Detail of Accounts - Statements of Operations
26
Cash on Hand and in Banks
27
Mortgage Impound Accounts
27
Reserve for Replacements and Operating Expenses
27
Property, Equipment and Improvements
28
Accounts Payable and Accrued Expenses
28
Gross Potential Rents
28
Management Fee
28
Computations of Excess/Distributable Cash
29
Schedules of Operating Revenue — COSR MHSA
31
Schedules of Operating Expenses — COSR MHSA
32
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
35
Schedule of Findings and Responses
37
1
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
December 31, 2021
Certificate of Partners
I, as general partner of Tienda Drive Senior Apartments, L.P., hereby certify that I have examined the
accompanying financial statements and supplementary information of Tienda Drive Senior Apartments,
L.P., as of and for the year ended December 31, 2021, and, to the best of my knowledge and belief,
these financial statements and supplementary information are complete and accurate.
Signature of General Partner
3128122
Date
Partnership Employer Identification
Number: 94-2995223
2
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
December 31, 2021
Management Agent's Certification
hereby certify that I have examined the accompanying financial statements and supplementary
information Tienda Drive Senior Apartments, L.P., as of and for the year ended December 31, 2021,
and, to the best of my knowledge and belief, these financial statements and supplementary information
are complete and accurate.
Management Agent
Kaae�.Au.£e�
O O
Eden Housing Management, Inc.
Kasey Archey, SVP of Property Operations
3128122
Date
3
CohnRexnick LLP
cohnrexnick.com
Independent Auditor's Report
To the General Partner
Tienda Drive Senior Apartments, L.P.
Report on the Audit of the Financial Statements
Opinion
CohnRemicki
ADVISORY • ASSURANCE • TAX
We have audited the financial statements of Tienda Drive Senior Apartments, L.P., CaIHFA Project No.
14-017-M, which comprise the balance sheet as of December 31, 2021, and the related statements of
operations, partners' equity (deficit), and cash flows for the year then ended, and the related notes to
the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of Tienda Drive Senior Apartments, L.P. as of December 31, 2021, and the results of
its operations and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of Tienda Drive Senior
Apartments, L.P. and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Other Matter
The financial statements of Tienda Drive Senior Apartments, L.P.. as of and for the year ended
December 31, 2020 were audited by another auditor, whose report dated February 17, 2021 included
an emphasis -of -matter paragraph that described the nature of the relationship between the general
partner and Eden Housing, Inc., a nonprofit benefit corporation, as discussed in Note 1 to the financial
statements, and expressed an unmodified opinion on those statements.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about Tienda Drive Senior
Apartments, L.P.'s ability to continue as a going concern for one year after the date that the financial
statements are available to be issued.
4
CohnReznickGp
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
■ Exercise professional judgment and maintain professional skepticism throughout the audit.
■ Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
■ Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Tienda Drive Senior Apartments, L.P.'s internal control.
Accordingly, no such opinion is expressed.
■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Tienda Drive Senior Apartments, L.P.'s ability to continue as a
going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control -related
matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The financial data templates as required by the California Housing Finance Agency, are presented for
purposes of additional analysis and are not a required part of the financial statements. Such information
is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the financial data templates as required by the
California Housing Finance Agency are fairly stated in all material respects in relation to the financial
statements as a whole.
5
CohnReznickGp
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 24,
2022, on our consideration of Tienda Drive Senior Apartments, L.P.'s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing and not
to provide an opinion on the effectiveness of internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering Tienda Drive Senior Apartments, L.P.'s internal control over financial reporting and
compliance.
&4,;; z �-, '�'r � 4 � �
Sacramento, California
March 24, 2022
C.
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Balance Sheets
December 31, 2021 and 2020
Assets
Current assets
Cash - operations
Tenant accounts receivable, net
Accounts receivable - subsidy
Accounts and notes receivable - operations
Prepaid expenses
Total current assets
Deposits held in trust - funded
Tenant deposits
Restricted deposits and funded reserves
Reserve for replacements
Other reserves
Total restricted deposits and funded reserves
Rental property
Land
Buildings and improvements
Furniture, fixtures and equipment
Less accumulated depreciation
Total rental property
Other assets
Deferred costs, net
Total other assets
Total assets
7
2421
2024
$ 77,928 $
123,918
744
393
2,703
-
6,946
5,131
7,649
3,867
95,970
133,309
41,465 40,274
462,076 432,214
1,065,443 1,063,741
1,527,519 1,495,955
684,065
684,065
19,782, 772
19,777,973
369,845
369,805
20,836,642 20,831,843
(2,525,918) (1,978,579)
18,310, 724 18, 853,264
65,375 78,450
65,375 78,450
$ 20,041,053 $ 20,601,252
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Balance Sheets
December 31, 2021 and 2020
Liabilities and Partners' Equity (Deficit)
Current liabilities
Accounts payable - operations
Accounts payable - entity
Accrued wages payable
Prepaid revenue
Total current liabilities
Deposits liability
Tenant deposits held in trust (contra)
Long-term liabilities
Loans and notes payable, net
Accrued interest payable - loans/notes
Miscellaneous long-term liabilities
Total long-term liabilities
Total liabilities
Contingencies
Partners' equity (deficit)
Total liabilities and partners' equity (deficit)
See Notes to Financial Statements.
2021
2620
$ 40,574
$ 23,318
99,361
86,138
7,298
4,512
1
-
147,234
107,968
41,465
46,275
3,127,964
3,133,418
191,871
156,495
23,217
18,260
3,343,452
3,308,173
3,531,751
3,456,416
16, 569, 302 17 ,144, 836
$ 26,641,053 $ 20,601,252
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Statements of Operations
Years Ended December 31, 2021 and 2420
Income
Gross potential rent
Less vacancies and concessions
Net rental income
Interest income
Other income
Miscellaneous
Total income
Operating expenses
Administrative
Utilities
Operating and maintenance
Taxes and insurance
Supportive service costs
Total operating expenses
Net operating income (loss)
Financial, entity and other expenses
Depreciation
Amortization
Interest
Entity and other expenses
Total financial, entity and other expenses
Net income (loss)
See Notes to Financial Statements.
0
2021
2020
$ 544,325 $ 519,164
(5,374) (1,937)
538,951 517,227
2,416 2,391
40,536
63,237
13,075
13,075
581,903
582,855
68,765
45,634
198,390
177,862
47,021
47,757
136,246
129,106
74,680
73,165
46,665
42,229
503,002
470,119
78,901 112,736
553,832
551,974
13,075
13,075
55,940
55,940
68,765
45,634
691,612
666,623
$ (612,711 } $ (553,887)
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Statements of Partners' Equity (Deficit)
Years Ended December 31, 2821 and 2028
Partners' equity (deficit)
December 31, 2019
Distributions
Net income (loss)
Partners' equity (deficit)
December 31, 2020
Distributions
Net income (loss)
Partners' equity (deficit)
December 31, 2021
Partners' percentage of income (losses)
See Notes to Financial Statements.
$ (48,528) $ 16,557,830 $ 16,509,302
10
0.01% 99.99% 100.00%
Wells Fargo
Affordable
Housing
Tienda Drive
Community
Senior
Development
Apartments LLC
Corporation
(general partner)
(limited partner)
Total
$ (13,398)
$ 17,729,330 $
17,715,932
(13,939)
(3,270)
(17,209)
(55)
(553,832)
(553,887)
(27,392)
17,172,228
17,144,836
(21,475)
(1,748)
(22,823)
(61 )
(612,650)
(612,711)
$ (48,528) $ 16,557,830 $ 16,509,302
10
0.01% 99.99% 100.00%
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Statements of Cash Flows
Years Ended December 31, 2021 and 2420
Cash flows from investing activities
Net purchases of rental property
Net cash used in investing activities
Cash flows from financing activities
Principal payments on notes and loans payable
Distributions to partners
Net cash used in financing activities
Net (decrease) increase in cash and restricted cash
Cash and restricted cash, beginning
Cash and restricted cash, end
11
(42,527) (16,850)
(42,527) (16,850)
(5,454) (3,667)
(22,823) (17,269)
(28,277) (20,816)
(13,235)
1,660,147
$ 1,646,912
58,516
1,601,631
$ 1,666,147
2021
2626
Cash flows from operating activities
Rental receipts
$ 528,320 $
516,367
Interest receipts
2,416
2,391
Other operating receipts
45,493
33,866
Total receipts
576,229
546,564
Administrative expenses paid
(59,817)
(99,430)
Management fees paid
(50,353)
(48,886)
Utilities paid
(47,621)
(46,949)
Salaries and wages paid
(132,609)
(76,299)
Operating and maintenance paid
(69,763)
(45,353)
Real estate taxes paid
(604)
(40,071)
Property insurance paid
(38,341)
(33,351)
Miscellaneous taxes and insurance paid
(1,186)
Net tenant security deposits received (paid)
1,190
-
Other operating expenses paid
(34,620)
(42,229)
Interest paid on loans/notes
(20,564)
(13,663)
Miscellaneous financial expenses paid
(3,108)
(3,168)
Entity/construction expenses paid (include detail)
Related party payments
(61,864)
(13,163)
Total disbursements
(518,660)
(456,382)
Net cash provided by operating activities
57,569
96,182
Cash flows from investing activities
Net purchases of rental property
Net cash used in investing activities
Cash flows from financing activities
Principal payments on notes and loans payable
Distributions to partners
Net cash used in financing activities
Net (decrease) increase in cash and restricted cash
Cash and restricted cash, beginning
Cash and restricted cash, end
11
(42,527) (16,850)
(42,527) (16,850)
(5,454) (3,667)
(22,823) (17,269)
(28,277) (20,816)
(13,235)
1,660,147
$ 1,646,912
58,516
1,601,631
$ 1,666,147
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Statements of Cash Flows
Years Ended December 31, 2021 and 2420
Reconciliation of net income (loss) to net
cash provided by operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation
Amortization
Bad debts
Loss on disposal of rental property
Changes in asset and liability accounts
(Increase) decrease in assets
Tenant accounts receivable
Accounts receivable - other
Prepaid expenses
Increase (decrease) in liabilities
Accounts payable
Accrued liabilities
Accrued interest payable
Tenant security deposits held in trust
Prepaid revenue
Entity/construction liability accounts (include detail)
Accounts payable - entity
Other adjustments (include detail)
Miscellaneous current liabilities
Total adjustments
Net cash provided by operating activities
See Notes to Financial Statements.
12
2621
2026
$ (612,711) $ (553,887)
553,832 551,974
13,075 13,075
498 -
31,235 9,107
(849)
(308)
(4,518)
(5,131)
(3,782)
3,972
17,256 (177)
2,786 -
35,376 42,337
1,190 601
1 -
19,223 19,816
4,957 8,803
676,284 644,069
$ 57,569 $ 90,182
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Note 1 - Organization and nature of operations
Tienda Drive Senior Apartments, L.P. (the "Partnership") was formed on December 23, 2015 to
acquire, construct, develop, own and operate a 80 -unit affordable housing development located in
Lodi, California, which is currently operating under the name of Cranes Landing Apartments (the
"Project"). The Project was placed in service in May 2017.
The Partnership is controlled by its general partner, Tienda Drive Senior Apartments LLC, whose
sole member, Eden Investments, Inc., is under the control of the board of directors of Eden
Housing, Inc. ("EHI"). All directors serve without compensation.
Subject to certain limitations and conditions, the distribution of profits and losses, including tax
credits, are allocated to the partners according to the Amended and Restated Partnership
Agreement dated March 14, 2016 (the "Partnership Agreement") as follows:
Tienda Drive Senior Apartments LLC (general partner) 0.01%
Wells Fargo Affordable Housing Community
Development Corporation (limited partner) 99.99%
The Partnership has been allocated low-income housing tax credits pursuant to Internal Revenue
Code Section 42 ("Section 42")_ Various loan, regulatory and other agreements dictate the
maximum income levels of the new tenants and provide rent and other restrictions through 2072.
The partners are required to provide capital contributions in an amount which is determined in part
upon the amount of low-income housing tax credits allocated to the limited partner. Pursuant to the
Partnership Agreement, the limited partner and general partner are required to contribute
$19,594,477 and $196, respectively, as adjusted by tax credit adjusters. All capital contributions
have been received.
The Partnership will continue to operate unless dissolved in accordance with the Partnership
Agreement.
Note 2 - Significant accounting policies
Accounting method
The financial statements have been prepared on the accrual basis of accounting. Accordingly,
income is recognized as earned and expenses as incurred, regardless of the timing of payments.
Tenant accounts receivable
Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management's
estimate of the allowance is based on historical collection experience and a review of the current
status of rents receivable. It is reasonably possible that management's estimate of the allowance
will change. As of December 31, 2021 and 2020, the allowance for doubtful accounts is $0 and $0,
respectively.
13
Tienda Drive Senior Apartments, L.P.
CalHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Tenant deposits
Tenant deposits are held in an interest-bearing account and are not subject to use for operating
purposes.
Rental property
Property, equipment and improvements are recorded at cost. Expenditures for maintenance and
repairs are charged to expenses as incurred while major renewals and betterments with an
individual cost equal to $2,540 or more are capitalized. Upon disposal of depreciable property, the
appropriate property accounts are reduced by the related costs and accumulated depreciation. The
resulting gains and losses will be reflected in the statement of operations. Depreciation is provided
using the straight-line method over the estimated useful lives of the assets as follows:
Buildings and improvements 5 - 40 years
Furniture, fixtures and equipment 5 - 15 years
Impairment of long-lived assets
The Partnership reviews its rental property for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. When recovery
is reviewed, if the undiscounted cash flows estimated to be generated by the Project are less than
its carrying amount, management compares the carrying amount of the Project to its fair value in
order to determine whether an impairment loss has occurred. The amount of the impairment loss is
equal to the excess of the asset's carrying value over its estimated fair value. No impairment losses
have been recognized to date.
Deferred costs
Tax credit fees of $130,750 are amortized over a 10 -year period using the straight-line method. Tax
credit fees, net of accumulated amortization, totaled $55,375 and $78,450 as of December 31, 2021
and 2024, respectively. Estimated amortization expense for the next five years after December 31,
2021 is $13,075.
Rental income
Rental income is recognized as rents become due. Rental payments received in advance are
deferred until earned. All leases between the Partnership and the tenants of the Project are
operating leases. The rental property is generally leased to tenants under six- or twelve-month non-
cancelable operating leases.
Advertising
Advertising and marketing costs are expensed as incurred.
Income taxes
The Partnership is a pass through entity for income tax purposes and, as such, is not subject to
income taxes. All items of taxable income, deductions and tax credits are passed through to and
are reported by its owners on their respective income tax returns. The Partnership's federal tax
status as a pass-through entity is based on its legal status as a partnership. The Partnership is
required to file tax returns with the Internal Revenue Service ("IRS") and other taxing authorities.
Accordingly, these financial statements do not reflect a provision for income taxes and the
Partnership has no other tax positions which must be considered for disclosure. Income tax returns
filed by the Partnership are subject to examination by the IRS for a period of three years. While no
income tax returns are currently being examined by the IRS, tax years since 2018 remain open.
14
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Use of estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
Reclassifications
Reclassifications have been made to the prior year balances to conform to the current year
presentation.
Note 3 - Restricted deposits and funded reserves
Reserve for replacements
In accordance with the partnership, loan and regulatory agreements, the Partnership is required to
maintain a replacement reserve. The Partnership is required to make annual deposits to the
replacement reserve in an amount of $40,000 or $500 per unit. Withdrawals from such reserve
require approval from the limited partner and California Housing Finance Authority ("CaIHFA").
Operating reserve
In accordance with the partnership, loan and regulatory agreements, the Partnership is required to
maintain an operating reserve. Annual deposits from excess/distributable cash are required in order
to maintain a minimum combined balance of the operating reserve and services reserve in the
amount of $527,379. So long as the combined balance of the operating reserve and services
reserve is at least $527,379, the general partner shall be permitted to withdraw a total of $46,006
per year, increasing at a rate of 3.5% per annum, from either the operating reserve or services
reserve, without approval of the limited partner. Withdrawals in excess of $46,000 require approval
by the limited partner and CaIHFA.
Services reserve
The Partnership maintains a services reserve. So long as the combined balance of the operating
reserve and services reserve is at least $527,379, the general partner shall be permitted to
withdraw a total of $46,000 per year, increasing at a rate of 3.5% per annum, from either the
operating reserve and services reserve, without approval of the limited partner. Withdrawals in
excess of $46,000 require approval by the limited partner and CaIHFA. No additional deposits are
required.
Capitalized operating subsidy reserve
CaIHFA has agreed to provide an operating subsidy reserve for the Project in accordance with the
capitalized operating subsidy reserve agreement. An initial amount of $694,000 was funded by
CaIHFA for the Project. The funds are owned and held by CaIHFA, but are available for the Project
to draw to cover the differences between the approved operating expenses attributable to the 8
Mental Health Services Act Housing Program ("MHSA") housing units and the rental income from
these units. As of December 31, 2021 and 2020, the balance available on the reserve is $645,740
and $671,854, respectively. The Partnership received $30,442 and $26,943 from the COSR in 2021
and 2020, respectively, of which $25,077 and $18,140 was recognized as income in 2021 and
2020, respectively and is included in other income in the accompanying statements of operations.
Deferred CCSR subsidy income was $23,625 and $18,260 as of December 31, 2021 and 2020,
respectively.
15
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Note 4 - Related party transactions
All payroll -related costs are paid by EHI and Eden Housing Management, Inc. ("EHMI") on behalf of
the Partnership and subsequently reimbursed. Resident and supportive services are provided by
Eden Housing Resident Services, Inc. ("EHRSI"). Related party transactions include the following
fees and charges at December 31, 2021 and 2020:
Description Paid to
Property management fee �'� EHMI
Bookkeeping fee (1) EHMI
Services programming fee [1) EHRSI
GP asset management fee (3) GP
LP asset management fee (4) LP
(Receivable)
payable at
12/31/2020
(Receivable)
(Payments) payable at
2021 expense advances 12/31/2021
$ 3,846 $ 50,353 $ (50,353) $ 3,846
- 9,120 (9,120) -
- 46,665 (46,665) -
69,396 27,319 (8,303) 88,412
6,896 7,103 (6,896) 7,103
{'} Property management and bookkeeping services of the Project are contracted with EHMI
through February 2017, for an annual amount of $46,080, adjusted periodically based on the
approved budget. The agreement automatically renews on an annual basis upon expiration of
the initial term. In no event shall the aggregate of fees payable to EHMI, the GP asset
management fee, and the incentive management fee paid in any year exceed 12% of effective
grass income ("EGI" ) for such year. EGI is defined as all rentals and other incidental income
received on a cash basis. Up to 50% of the property management fee will be deferred to the
extent necessary to reduce the amount or reduce the occurrence of an operating deficit.
Deferred management fee is payable from excess/distributable cash. As of December 31,
2021 and 2020 the deferred management fee balance is $3,846 and $3,846, respectively.
{2} The Project incurs a monthly service fee for a variety of supportive services provided by
EHRSI including education and outreach, jabs and employment, health and wellness, financial
literacy training and other programs.
16
$ 80,138
$ 140,560
$ {121,337}
$ 99,361
(Receivable)
(Receivable)
payable at
(Payments)
payable at
Description
Paid to
12/31/2019
2020 expense
advances
12/31/2020
Property management fee �'�
EHMI
$ 3,846
$ 48,886
$ (48,886)
$ 3,846
Bookkeeping fee (1)
EHMI
-
9,120
(9,120)
-
Operating expense
reimbursements
EHMI
500
-
(500)
-
Services programming fee [1)
EHRSI
42,229
(42,229)
-
GP asset management fee (3)
GP
49,281
26,523
(6,408)
69,396
LP asset management fee [4]
LP
6,695
6,896
(6,695)
6,896
$ 60,322
$ 133,654
$ [113,838}
$ 80,138
{'} Property management and bookkeeping services of the Project are contracted with EHMI
through February 2017, for an annual amount of $46,080, adjusted periodically based on the
approved budget. The agreement automatically renews on an annual basis upon expiration of
the initial term. In no event shall the aggregate of fees payable to EHMI, the GP asset
management fee, and the incentive management fee paid in any year exceed 12% of effective
grass income ("EGI" ) for such year. EGI is defined as all rentals and other incidental income
received on a cash basis. Up to 50% of the property management fee will be deferred to the
extent necessary to reduce the amount or reduce the occurrence of an operating deficit.
Deferred management fee is payable from excess/distributable cash. As of December 31,
2021 and 2020 the deferred management fee balance is $3,846 and $3,846, respectively.
{2} The Project incurs a monthly service fee for a variety of supportive services provided by
EHRSI including education and outreach, jabs and employment, health and wellness, financial
literacy training and other programs.
16
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
(3) An agreement with the general partner for asset management services requiring an annual
fee in the amount of $25,000, increasing 3% annually commencing in 2019. Any unpaid fee
shall accrue without interest and is payable from excess/distributable cash. In no event shall
the sum of fees payable to EHMI, the general partner asset management fee, and incentive
management fee in any year exceed 12% of effective gross income.
(4) An agreement with the limited partner for asset management services requiring an annual fee
in the amount of $6,500, increasing 3% annually commencing in 2019. Any unpaid fee shall
accrue without interest and is payable from excess/distributable cash.
Incentive management fee
An agreement with the general partner for incentive management services shall pay an annual,
non -cumulative fee paid from excess/distributable cash. In no event shall the sum of fees payable
to EHMI, the general partner asset management fee, and incentive management fee in any year
exceed 12% of effective gross income.
Operating deficit guarantee
The general partner is required to fund operating deficits incurred by the Partnership without
limitation as to amount prior to making the performance installment in accordance to the
Partnership Agreement. After the performance installment is made, the general partner is required
to fund operating deficits incurred by the Partnership up to $210,000 in the aggregate. At the end of
the 36 months after the performance installment, the guaranty will expire provided that: {i} the
Partnership has maintained an average expense coverage ratio of 1.08 or better for 12 consecutive
months, at least 2 years after the making of the performance installment, {ii} permanent loan closing
has occurred, {iii} adjuster distributions owed to the investor limited partner, if any have been made,
(iv) the current amount in the operating reserve is not less than $527,379, and {v} no default by the
general partner exists. Advances will be treated as unsecured non-interest bearing loans and are
payable from excess/distributable cash. No such operating deficit loans have been funded to date.
17
Tienda Drive Senior Apartments, L.P.
CalHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Note 5 - Loans and notes payable
Loans and notes payable are secured by the Project unless otherwise noted and consist of the
following at December 31:
2021
2020
Interest Payable Principal Interest Payable Principal
San Joaquin County CDBG/HOME loan
("County loan"), in the original amount
of $1,124,669, bears 3% simple interest
per annum. Payments are to be made
from excess/distributable cash, with the
entire principal and accrued interest
balance due in full by May 2072. Interest
expense during the years ended
December 31, 2021 and 2020 was
$33,740. $
CalHFA MHSA loan, in the original
amount of $740,000, bears 3% simple
interest per annum. Payments are to be
made from excess/distributable cash,
with the entire principal and accrued
interest balance due in full by March
2071. Interest expense during the years
ended December 31, 2021 and 2020
was $22,200.
City of Lodi loan ("City loan"), in the
original amount $494,536, bears no
interest, payments are to be made from
excess/distributable cash with the entire
principal due in full in May 2072.
95,087 $ 1,124,669 $
96,784 740,000
73,749 $ 1,124,669
82,746
- 473,295 -
Wells Fargo Financial National Bank
AHP loan, in the original amount of
$790,000, bears no interest, with the
entire principal balance due in full by
April 2071. -
Total balance due
790,000 -
740,000
478.749
790.999
$ 191,871 $ 3,127,964 $ 156,495 $ 3,133.418
The liability of the Partnership under the loans and notes payable is limited to the underlying value
of the real estate collateral plus other amounts deposited with the lenders.
in
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
Note 6 - Statements of cash flows
The following table provides a reconciliation of cash and restricted cash reported within the balance
sheets that sum to the total of the same such amounts in the statements of cash flows:
Cash
Tenant deposits
Reserve for replacements
Other reserves
Total cash and restricted cash shown in the
statements of cash flows
2021
$ 77,928
41,465
462,076
1,055,443
2020
$ 123,918
40,274
432,214
1,063,741
$ 1,646,912 $ 1,660,147
Amounts included in restricted cash are comprised of tenant deposits held in trust for the future
benefit of tenants upon moving out of the Project, reserves as required by the operating, loan and
regulatory agreements.
Note 7 - Concentrations
Concentration of credit risk
The Partnership maintains its cash accounts with various financial institutions. All escrows and
reserves are held in trust accounts in the Partnership's name. At times, these balances may exceed
the federal insurance limits; however, the Partnership has not experienced any losses with respect
to its bank balances in excess of government provided insurance. Management believes that no
significant concentration of credit risk exists with respect to these balances as of December 31,
2021 and 2020.
Economic concentration
The Partnership operates a 80 -unit apartment project located in Lodi, California. Future operations
could be affected by changes in economic or other conditions in that geographical area or by
changes in federal low-income housing subsidies or the demand for such housing.
Note 8 - Contingency
Low-income housing tax credits
The Project's low-income housing tax credits will be contingent on its ability to maintain compliance
with applicable sections of Section 42. Failure to maintain compliance with occupant eligibility,
and/or unit gross rents or to correct non-compliance within a specified time -period could result in
recapture of previously taken tax credits plus interest. In addition, such potential noncompliance
may require an adjustment to the contributed capital by the limited partner.
Limited partner put
The limited partner has the right to put its entire interest to the general partner or its designee at all
times after the expiration of the tax credit period on January 1, 2027, for a price of $100.
Buyout option
The general partner has an option to purchase: (i) the Project, including all reserves, or (ii) the
limited partner's interest in the Partnership, during the 24 month period commencing on the first day
19
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
following the end of the 15 -year compliance period on December 31, 2031. The purchase price of
the Project and reserves shall be equal to the greater of: (a) the sum of $100, plus (1) all
outstanding debt secured by the property and all debts owed to any partner, plus (2) all unpaid
amounts owed to the limited partner, plus (3) all taxes which would be incurred by the limited
partner as a result of the purchase for a price of $100 in excess of all outstanding debt, plus (4) all
taxes attributable to receipt of such cash distributions relating to (a)(2) and (a)(3), or (b) the fair
market value of the Project and the reserves. The purchase price of the limited partner's interest in
the Partnership shall be equal to the greater of: (a) the sum of the amount which would be
distributed to the limited partner if the Project were purchased for $140 plus (1) all outstanding debt
secured by the property and all debts owed to any partners, plus (2) all unpaid amounts owed to the
limited partner, plus (3) all taxes which would be incurred by the limited partner as a result of the
purchase for the price of $100 in excess of all outstanding debt, plus (4) all taxes attributable to
receipt of such cash distributions related to (a)(2) and (a)(c); or (b) the fair market value of the
limited partner's interest in the Partnership.
Right of first refusal
The general partner or its sole member has a right of first refusal to purchase the Project,
commencing on the first day after the compliance period expiration date. The purchase price of the
Project shall be equal to the greater of: (i) $100 debt, or (ii) the sum of: (a) all outstanding debt
secured by the property, plus (b) the sum of: (1) all taxes attributable to the sale, plus (2) unpaid
adjuster distributions, if any, plus interest of 10% per annum, compounded monthly, plus (3) all
debts owed to the limited partner, plus (4) all taxes attributable to receipt of such cash distributions
relating to (ii)(b)(1), (ii)(b)(3).
COVID-19
In early 2020, an outbreak of a novel strain of coronavirus (CGVID-19) emerged globally. As a
result, events have occurred including mandates from federal, state and local authorities leading to
an overall decline in economic activity, which could impact rent collection, resulting in a potential
loss of rental revenue and other material adverse effects to the Partnership's financial position,
results of operations, and cash flows. As of December 31, 2021, the global pandemic is still
ongoing. Management continues to monitor the results of operations to evaluate the economic
impact of the pandemic on the Project and has proactively taken steps to minimize the impact on
the property's financial position. In addition, federal and state authorities are continuing to pass
legislation in support of rent relief programs, which could reduce the potential for a decrease in rent
collection.
Note 9 - Distribution of excess/distributable cash
Excess cash shall be applied in the following order of priority:
i. To replenish operating reserve until the balance reaches $527,379
ii. To payment of deferred developer fee (fully paid in 2019);
iii. To payment of LP asset management fee;
iv. To payment of GP asset management fee, provided that the sum of {iii} & (iv) does not
exceed $31,500 (limited to 12% of EGI as described in Note 4);
V. To 50% of the remaining excess cash is distributable as follows:
20
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Notes to Financial Statements
December 31, 2021 and 2020
a) 31.37% to pay the CalHFA MHSA loan;
b) 47.67% to pay the County loan;
C) 20.96% to pay the City loan.
vi. The remaining 50% of excess cash is distributable as follows:
a) To repay any limited partner loans;
bj To payment of accrued and unpaid LP asset management fee;
c) To payment of any deferred management fee (limited to 12% of EGI as described in
Note 4);
dj To payment of accrued and unpaid GP asset management fee (limited to 12% of EGI
as described in Note 4):
e) To payment of any operating deficit loans; and
f) Remaining, if any, shall be applied in the following order of priority:
1) 10% to limited partner; and
2) 90% to pay incentive management fee (limited to 12% of EGI as described in
Note 4).
Distributable cash, if any, as defined in the Partnership Agreement, shall be applied in the order of
priority:
1) 90% to the general partner; and
2) 10% to the limited partner.
Note 10 - Subsequent events
Events that occur after the balance sheet date but before the financial statements were available to
be issued must be evaluated for recognition or disclosure. The effects of subsequent events that
provide evidence about conditions that existed at the balance sheet date are recognized in the
accompanying financial statements. Subsequent events which provide evidence about conditions
that existed after the balance sheet date require disclosure in the accompanying notes.
Management evaluated the activity of the Partnership through March 24, 2022, the date the
financial statements were available to be issued, and concluded that no subsequent events have
occurred that would require recognition in the financial statements or disclosure in the notes to
financial statements.
21
Supplementary Information
Supporting Data Required by CaIHFA
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Schedules of Operating Revenue
Account No.
Rental revenue
5120 Rent revenue - gross potential
5121 Tenant assistance payments
5100T Total rental revenue
Financial revenue
5440 Revenue from investments -
replacement reserve
5490 Revenue from investments -
miscellaneous
5400T Total financial revenue
Other revenue
5910
Vacancies
5220
Apartments
5250
Rental concessions
5200T
Total vacancies
5152N
Net rental revenue
Financial revenue
5440 Revenue from investments -
replacement reserve
5490 Revenue from investments -
miscellaneous
5400T Total financial revenue
Other revenue
5910
Laundry and vending
5920
Tenant charges
5990
Miscellaneous revenue
5900T
Total other revenue
5000T Total revenue
COSR
All other units MHSA units 2021 2020
$ 439,302 $
20,343 $
459,645 $
459,093
76,992
7,688
84,680
60,071
516,294
28,031
544,325
519,164
(4,506) (408) (4,914) (1,937)
(460) - (460) -
(4,966) (408) (51374),(11937)
511,328 27,623 538,951 517,227
712
-
712
667
1,704
-
1,704
1,724
2,416
-
2,416
2,391
4,373
486
4,859
5,748
2,331
259
2,590
2,148
29,778
3,309
33,087
55,341
36,482
4,054
40,536
63,237
550,226
31,677
581,903
582,855
23
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Schedules of Operating Expenses
24
COSR
All other units
MHSA units
2021 Total
2020 Total
Account No.
Administrative expenses
6203
Conventions and meetings
344
34
338
672
6250
Other renting expenses
730
81
811
259
6310
Office salaries
10,342
1,149
11,491
8,160
6311
Office expenses
28,791
3,199
31,990
28,671
6320
Management fee
45,318
5,035
50,353
48,886
Manager or superintendent
6330
salaries
63,869
7,097
70,966
62,139
6331
Administrative rent free unit
6,372
708
7,080
6,612
6350
Auditing expense
7,605
845
8,450
9,250
6351
Bookkeeping fees/accounting
services
8,208
912
9,120
9,120
6370
Bad debts
448
50
498
-
6390
Miscellaneous administrative
expenses
6,564
729
7,293
4,093
6263T
Total administrative expenses
178,551
19,839
198,390
177,862
Utilities expense
6450
Electricity
12,903
1,434
14,337
14,936
6451
Water
3,785
421
4,205
4,692
6452
Gas
902
100
1,002
542
6453
Sewer
24,729
2,748
27,477
27,587
6400T
Total utilities expense
42,319
4,702
47,021
47,757
Operating and maintenance
expenses
6510
Payroll
35,303
3,923
39,226
50,748
6515
Supplies
4,077
453
4,530
5,247
6520
Contracts
46,467
5,163
51,630
33,428
6525
Garbage and trash removal
14,548
1,616
16,164
15,520
6530
Security payrolllcontract
12,341
1,371
13,712
15,817
6546
Heatinglcooling repairs and
maintenance
3,081
342
3,423
794
6590
Miscellaneous operating and
maintenance expenses
6,805
756
7,561
7,552
Total operating and
6500T
maintenance expenses
122,621
13,625
136,246
129,106
24
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
25
COSR
All other units
MHSA units
2021 Total
2020 Total
Account No.
Taxes and insurance
6710
Real estate taxes
544
60
604
604
6711
Payroll taxes
8,018
891
8,909
8,737
6720
Property and liability insurance
34,443
3,827
38,270
33,351
6722
Workmen's compensation
2,282
254
2,536
4,233
6723
Health insurance and other
employee benefits
20,858
2,318
23,175
23,934
6790
Miscellaneous taxes, licenses,
permits and insurance
1,067
119
1,186
2,306
6700T
Total taxes and insurance
67,212
7,468
74,680
73,165
Financial expenses
6830
Interest on notes payable - long-
term
55,940
-
55,940
55,940
6800T
Total financial expenses
55,940
-
55,940
55,940
Supportive services (SS) costs
6990-010120
Supportive services costs -
resident services program
41,999
4,667
46,665
42,229
6900T
Total supportive services costs 41,999
4,667
46,665
42,229
6000T
Total cost of operations
before depreciation and
503,048
55,894
558,942
526,059
5060T
Income (loss) before
depreciation and amortization
20,665
2,296
22,961
56,796
Depreciation and amortization
6600
Depreciation expense
498,449
55,383
553,832
551,974
6610
Amortization expense
11,768
1,308
13,075
13,075
Total depreciation and
amortization
510,216
56,691
566,907
565,049
5060N
Operating income (loss)
(489,551)
[54,395]
[543,946}
[508,253]
Corporate or mortgagor entity
revenue and expenses
7190
Other expenses
61,889
6,877
68,765
45,634
7100T
Net entity expenses
61,889
6,877
68,765
45,634
Total expenses
1,075,153
119,461
1,1'94,614
1,136, 742
3250
Net income (loss)
$ [551,440]
$ [61,271]
$ [612,711 ]
$ [553,887]
25
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Detail of Accounts - Schedules of Operations
Miscellaneous Administrative Expenses
(Account No. 6390)
Professional fees
$ 63 $
2021
626 $
2020
Consulting
Assisted
Non -Assisted
Total
Total
Miscellaneous Revenue (Account No. 5990)
2
17
19
-
CDSR subsidy income
$ 25,485
$ -
$ 25,485
$ 18,140
PPP forgiveness
-
-
-
33,644
FFRCA credits
433
3,900
4,333
1,870
Refunds and other
227
2,042
2,269
1,687
Comcast
100
900
1,000
-
Mileage
$ 26,245
$ 6,842
$ 33,087
$ 55,341
Miscellaneous Administrative Expenses
(Account No. 6390)
Professional fees
$ 63 $
563 $
626 $
1,467
Consulting
20
183
203
-
Bank charges
2
17
19
-
Bank charges - rent cafe
27
239
265
47
Special events and retreats
117
1,049
1,166
1,000
Other miscellaneous
236
2,126
2,362
-
Telephone
187
1,686
1,873
373
Computer expense
57
511
568
1,013
Mileage
1
10
11
93
Other services expense
20
180
200
100
$ 729 $
6,564 $
7,293 $
4,093
Miscellaneous Operating and Maintenance
Expenses (Account No. 6590)
COVID-19 related expenses
Replacements
Other Entity Expenses (Account No. 7190)
Lender and other fees
Partnership management fee
Asset management fee
Loss on disposal of rental property
$
56
$
504
$
560
$
1,520
700
6,301
7,001
6,032
$
756
$
6,805
$
7,561
$
7,552
$
311
$
2,797
$
3,108
$
3,108
2,732
24,587
27,319
26,523
710
6,393
7,103
6,896
3,124
28,112
31,235
9,107
$
6,877
$
61,889
$
68,765
$
45,634
26
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Cash on Hand and in Banks
Unrestricted cash operating accounts
Operating account
Restricted cash accounts
Security deposit account
Reserve for replacements
Operating expense reserve
Services reserve
$ 77,928
$ 77,928
$ 41,465
462,076
531,460
533,983
$ 1,568,984
The tenant security deposits are maintained in separate interest-bearing accounts with interest
earned on these deposits credited to a liability account to be refunded or applied for the benefit of
tenants.
Mortgage Impound Accounts
None
Reserves for Replacements and Operating Expenses
In accordance with the provisions of the Regulatory Agreement, restricted cash and investments are held by
CaIHFA to be used for replacements of property or other reserve requirements with the approval of CaIHFA
and HCD as follows:
Reserve for Operating
replacements expense reserve Services reserve
Balance, December 31, 2020 $ 432,214 $ 530,611 $ 533,139
Deposits ($3,333 x 12 months) 40,000 - -
Interest earned 712 849 853
Withdrawals (amount capitalized) (10,850) - -
Balance, December 31, 2021 $ 462,076 $ 531,460 $ 533,983
27
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2821 and 2028
Property, Equipment and Improvements
Balance
12/31/2020 Additions
Land $ 684,065 $ -
Buildings and improvements 19,777,973 42,527
Furniture, fixtures and
equipment 369,805 -
Balance
Deletions 12/31/2021
$ - $ 684,065
(37,728) 19,782,772
- 369,805
Sub -total
20,831,843
42,527
(37,728)
20,836,642
Less accumulated depreciation
(1,978,579)
(553,832)
6,493
(2,525,918)
Total net book value
$ 18,853,264
$ {511,305}
$ (31,235}
$ 18,310,724
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses payable to suppliers are due as follows:
Current $ 35,164
31 to 60 days 4,840
61 to 90 days 574
Total $ 40,574
Gross Potential Rents
Gross potential rents includes the following:
Tenant rental payments $ 446,693
Tenant assistance payments 84,680
Rent free units 7,080
Vacancy loss and rent concessions 5,374
Bad debt 498
Total gross potential rents $ 544,325
Management Fee
A property management fee of $50,353 was incurred during 2021 for the property management
services provided by Eden Housing Management, Inc.
NE
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2821 and 2028
Computations of Excess/Distributable Cash
Operating income
Total income
Interest earned on restricted reserve accounts
Adjusted operating income
Operating expenses
Adjusted net income
Other activity
Deposits into replacement reserve
Withdrawals from replacement reserve - operating expenses
(subsequent to year-end)
Withdrawals from replacement reserve - property and
equipment
Withdrawals from replacement reserve - property and
equipment (subsequent to year-end)
Purchase of property and equipment
Withdrawals from services reserve - operating expenses
(subsequent to year-end)
MHSA servicing fee
Total other activity
Excess/distributable cash
29
2021 2620
$ 581,903 $ 582,855
(2,414) (2,391)
579,489 586,464
(563,002) (476,119)
76,487 116,345
(40,000) (46,060)
1,986 -
42,527 -
(42,527) (16,850)
20,000 -
(3,108) (3,168)
(21,122) (43,168)
$ 55,365 $ 67,237
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2821 and 2028
Distribution of excess/distributable cash
LP asset management fee
GP asset management fee
Total limited borrower distributions
$ 7,103
18,794
25,897
$ 6,896
8,303
15,199
Remaining excess/distributable cash
29,468
52,038
50% to debt service as follows:
Debt service - 31.37% to CalHFA MHSA loan
4,622
8,162
Debt service - 47.67% to County loan
7,024
12,403
Debt service - 20.96% to City loan
3,088
5,454
Total 50% debt service
14,734
26,019
50% to borrower distributions as follows:
10% to limited partner distribution
1,473
2,602
Remaining excess/distributable cash
13,261
23,417
General partner distribution - 90%
11,935
21,075
Limited partner distribution - 10%
1,326
2,342
$ 55,365 $
67,237
Summary of excess/distributable cash
LP asset management fee
$ 7,103 $
6,896
GP asset management fee
18,794
8,303
Debt service - 31.37% to CaIHFA MHSA loan
4,622
8,162
Debt service - 47.67% to County loan
7,024
12,403
Debt service - 20.96% to City loan
3,088
5,454
Limited partner distribution
2,799
4,944
General partner distribution
11,935
21,075
$ 55,365 $
67,237
30
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
CALIFORNIA HOUSING FINANCE AGENCY MHSA Supplemental Form (Audited Financial Statement)
Project: Tienda Drive Senior Apartments, L.P.
Ca[HFA#: 14017M
Total # Non-COSR
MHSA Units: 0
Audit Year: 2021
03131=06130=09130=121310
Fiscal Year End (FYE)
Total # Non-MHSA
Units: 72 Total Units: 80
Total COSR MHSA
Units: 8 Per Unit Avg 10%
31
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Schedules of Operating Revenue - COSR MHSA
Acct # Account Description Actuals
Rental revenue
5120 Rent revenue - gross potential $ 439,302
5121 MHSA COSR Units - Tenant Payment 20,343
5180-010 Non MHSA COSR Units - Tenant Rental
Subsidy 76,992
5180-020 MHSA COSR Units - Tenant Rental
Non-MHSA Units
and Non-COSR COSR MHSA
MHSA Units units
$ 439,302 $ -
- 20,343
76,992 -
Subsidy 7,688 - 7,688
51 OOT Total rental revenue 544,325 516,294 28,031
Vacancies
5220 Apartments - MHSA Units
5240 Apartments - Non MHSA Units
5250 Rental concessions
5200T Total vacancies
5152N Net rental revenue
Financial revenue
5440 Revenue from investments -
replacement reserve
5490 Revenue from investments -
miscellaneous
5400T Total financial revenue
Other revenue
5910 Laundry and vending
5920 Tenant charges
5990 Miscellaneous revenue
COSR payment
5900T Total other revenue
5000T Total revenue
(408) - (408 )
(4,506) (4,506) -
(460) (460) -
(5,374) (4,966) (408)
538,951 511,328 27,623
712 712 -
1,704
1,704
-
2,416
2,416
-
4,859
4,373
486
2,590
2,331
259
7,602
6,842
760
25,485
-
25,485
15,051
13,546
1,505
581,903
527,290
54,613
32
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Schedules of Operating Expenses - COSR MHSA
Acct #
6203
6250
6310
6311
6320
6330
6331
6350
6351
6370
6390
6263T
Account Description
Administrative expenses
Conventions and meetings
Other renting expenses
Office salaries
Office expenses
Management fee
Manager or superintendent salaries
Administrative rent free unit
Auditing expense
Bookkeeping fees/accounting services
Bad debts
Miscellaneous administrative expenses
Total administrative expenses
Utilities expense
6450
Electricity
6451
Water
6452
Gas
6453
Sewer
6400T
6510
6515
6520
6525
6530
6546
6590
6500T
Total utilities expense
Operating and maintenance expenses
Payroll
Supplies
Contracts
Garbage and trash removal
Security payroll/contract
Heating/cooling repairs and maintenance
Miscellaneous operating and maintenance
expenses
Total operating and maintenance
Nan-MHSA Units
and Non-COSR
Actuals MHSA Units
338
811
11,491
31,990
50,353
70,966
7,080
8,450
9,120
498
7,293
304
730
10,342
28,791
45,318
63,869
6,372
7,605
8,208
448
6,564
COSR MHSA
units
34
81
1,149
3,199
5,035
7,097
708
845
912
50
729
198,390 178,551 19,839
14,337
4,205
1,002
27,477
47,021
12,903
3,784
902
24,729
1,434
421
100
2,748
42,318 4,703
39,226
35,303
3,923
4,530
4,077
453
51,630
46,467
5,163
16,164
14,548
1,616
13,712
12,341
1,371
3,423
3,081
342
7,561
6,805
756
33
136,246
122,622 13,624
Tienda Drive Senior Apartments, L.P.
CaIHFA Project No.: 14-017-M
Supplementary Information
Years Ended December 31, 2021 and 2020
Acct # Account Description Actuals
Taxes and insurance
6710 Real estate taxes 604
6711 Payroll taxes 8,909
6720 Property and liability insurance 38,270
6722 Workmen's compensation 2,536
6723 Health insurance and other employee
benefits 23,175
6790 Miscellaneous taxes, licenses, permits
Non-MHSA Units
and Non-COSR COSR MHSA
MHSA Units units
544 60
8,018 891
34,443 3,827
2,282 254
20,857 2,318
and insurance 1,186 1,067 119
6700T Total taxes and insurance 74,680 67,211 7,469
Elderly Care Expense
6990 Other Service Expense
6900T Total Elderly Care Expense
Deposit into replacement reserve
MHSA loan servicing fee
6000T Total cost of operations
Net revenue (deficit)
46,665 46,665 -
46,665 46,665 -
40,000 36,000 4,000
3,108 2,797 311
546,110 496,164 49,946
$ 35,793 $ 31,126 $ 4,667
Account Description COSR
Operational expenses paid from available COSR
On-site supportive service costs $ 4,667
HCD MHP service fee -
Partnership asset management fees -
Annualbnd issuance fees -
Operating expense reserve (23,217)
Portion of deferred developer fee -
Total MHSA operational expense $ (18,550)
Variance - Underfunded or (Overfunded) $ (23,217)
01
CohnRexnick LLP Cohn Remick �
cohnrexnick.com ADVISORY • ASSURANCE • TAX
Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
To the General Partner
Tienda Drive Senior Apartments, L.P.
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of Tienda Drive Senior
Apartments, L.P., which comprise the balance sheet as of December 31, 2021 and the related
statements of operations, partners' equity (deficit), and cash flows for the year then ended, and the
related notes to the financial statements, and have issued our report thereon dated March 24, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Tienda Drive Senior
Apartments, L.P.'s internal control over financial reporting as a basis for designing the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of Tienda Drive
Senior Apartments, L.P.'s internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of Tienda Drive Senior Apartments, L.P.'s internal control over financial
reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material weaknesses or significant
deficiencies may exist that have not been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Tienda Drive Senior Apartments, L.P.'s
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the financial statements. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
35
CohnReznickGp
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the entity's internal control over financial reporting or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the entity's internal control over financial reporting and compliance. Accordingly, this communication is
not suitable for any other purpose.
Sacramento, California
March 24, 2022
36
Tienda Drive Senior Apartments, L.P.
CalHFA Project No.: 14-017-M
Schedule of Findings and Responses
Year Ended December 31, 2021
Our audit disclosed no findings that are required to be reported.
37
CohnReznick
ADVISORY • ASSURANCE • TAX 0
Independent Member of Nexia International
cohnreinick.com