Notes to Financial Statements

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020

NATURE OF ORGANIZATION

San Gabriel Valley Habitat for Humanity (SGV Habitat) was incorporated in California in 1990 as a nonprofit corporation. SGV Habitat is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (the Code), and is also exempt from state income taxes. SGV Habitat has been classified as a publicly supported organization, which is not a private foundation, under Section 509(a) of the Code. Contributions made by the public are deductible for income tax purposes.

SGV Habitat is an affiliate of Habitat for Humanity International, Inc. (Habitat International), a nondenominational Christian nonprofit organization whose purpose is to create decent, affordable housing for those in need, and to make decent shelter a matter of conscience with people everywhere. Although Habitat International assists with information resources, training, publications, prayer support, and in other ways, SGV Habitat is primarily and directly responsible for its own operations.

SGV Habitat's primary source of income consists of sales of homes, along with cash and in-kind contributions.

LIQUIDITY

The following table reflects SGV Habitat's financial assets as of June 30, 2021 and 2020, reduced by amounts not available for general expenditure within one year. Financial assets are considered unavailable when illiquid or not convertible to cash within one year, assets held for others, restricted by donors, or set aside by the Governing Board. The Board designations could be drawn upon if the Board approves of the action.

Cash Contributions receivable Mortgage loans receivable, current portion Less:

Amounts held for others

Net assets with purpose restrictions June 30, 2021 2020

$ 1,206,795 $ 780,252 148,591 188,266 129,185 2,416,741

(1,623) (25,216) (428,158) (237,111)

$ 1,054,790 $ 3,122,932

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of SGV Habitat have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America. Certain prior year amounts have been reclassified to conform to current year presentation. A summary of significant accounting policies follows, to enhance the usefulness of the financial statements to the reader.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CONSOLIDATION

In accordance with GAAP, the financial statements of San Gabriel Valley Habitat for Humanity,

Inc., SGVHFH Funding Company, LLC, and Neighborhood Housing Partners, Inc. are consolidated into the financial statements of San Gabriel Valley Habitat for Humanity, Inc. All material intercompany transactions as of June 30, 2021 and 2020 have been eliminated.

CASH AND CASH EQUIVALENTS

Cash consists of cash on hand and cash on deposit. For purposes of the statement of cash flows, SGV Habitat considers all short-term investments with a maturity of three months or less to be cash.

Financial instruments that potentially subject SGV Habitat to concentrations of credit risk consist principally of cash deposits at financial institutions and investments in marketable securities. At times, balances in SGV Habitat's cash and investment accounts exceeded the Federal Deposit Insurance Corporation (FDIC) or Securities Investors Protection Corporation (SIPC) limits.

CONTRIBUTIONS RECEIVABLE

Contributions receivable represent unconditional promises-to-give, which are recognized as income when received and recorded at fair value based upon estimated future cash flows. All contributions receivable are expected to be collected within one year.

MORTGAGE LOANS RECEIVABLE

Mortgage loans receivable consist of non-interest bearing mortgage loans from homeowners that are secured by real estate and are received in monthly installments over the lives of the respective mortgages. Rent payments received before loans become effective are applied as deposits towards the buyer's purchase price through escrow. These non-interest bearing mortgages are recorded at their net realizable value and have been discounted at the inception of each mortgage based upon prevailing market rates for low-income housing. This rate is recommended by Habitat International and does not approximate current market conditions. Utilizing the effective interest method, this discount is recognized as interest income over the terms of the mortgages.

Certain grants provided by local governments or institutional investors (donating entities) would be required to be repaid to the donating entity in the event the projects for which the grants were provided are sold by the homeowners within a specified time period, between 5 and 45 years. These contingent obligations of the homeowners range from approximately $6,000 to $110,000 and are documented in the form of silent second and third trust deeds held by SGV Habitat (CalHome - restricted) or outside of SGV Habitat.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ALLOWANCE FOR LOAN LOSSES

Before a mortgage is issued, the candidate is carefully screened for financial condition, cash flow, and ability to meet the loan repayment schedule. This screening is done to identify qualified borrowers who can repay the mortgages and mitigate the default rate on mortgages receivable. Loans are classified as delinquent when payments are 30 days overdue. At June 30, 2021 and 2020, no loans were past due. Because the mortgages are heavily discounted when recorded and the value of the collateral is in excess of the discounted mortgages, losses resulting from non-payment are not likely. Also, because of the contingent obligations in that the homeowners are liable for the second and third trust deeds on the properties (see

MORTGAGE LOANS RECEIVABLE), the default rate of these mortgages is very low. However, if a loan becomes delinquent for more than 90 days and management determines that the homeowner will be unable to repay the mortgage balance, SGV Habitat will commence with foreclosure procedures.

RESTORE INVENTORY

ReStore (RS) inventory consists of purchased items and donated building materials available for sale to the general public; the recorded value of donated inventory is estimated based on prior year sales to approximate the gift-in-kind fair value when received.

AMOUNTS HELD FOR OTHERS

During the fiscal year ending June 30, 2020, SGV Habitat entered into an agreement with AmeriNat to service a majority of SGV Habitat's mortgage loans receivable. As the mortgage servicer, AmeriNat (agent) collects the monthly mortgage payments, HOA dues and property taxes from borrowers, and remits the payments to the respective principal.

SGV Habitat also sold a portfolio of its mortgage loans receivable to East West Bank, but remains the servicer of the loan. SGV Habitat collects the payments as per the original lending agreement and remits the payments to East West Bank. In the event that collections are delinquent, East West Bank may substitute a previously sold loan with a different loan held by SGV Habitat, as per the terms of the agreement with East West Bank. The amounts held for others balances at June 30, 2021 and 2020 consist primarily of escrow funds held for borrowers that have not yet been transferred to AmeriNat.

PROPERTY AND EQUIPMENT

Property and equipment are reported at cost, or if donated, at the fair market value on the date received. Depreciation is computed on a straight-line basis over estimated useful lives of 3 to 5 years. Maintenance and repairs are recorded as expenses in the year incurred, and renewals and betterments exceeding $1,000 are capitalized.

INTANGIBLE ASSETS

Intangible assets are reported at cost. Amortization is computed on a straight-line basis over the estimated useful life.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

NET ASSETS

SGV Habitat reports information regarding its financial position and activities according to two classes of net assets: without donor restriction and with donor restriction, as described below:

Without donor restriction includes funds which are expendable for the support of SGV Habitat's operations.

With donor restriction includes funds which donors have restricted for specific purposes and/or specific timetables.

REVENUE RECOGNITION

Effective July 1, 2020, SGV Habitat adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequently issued clarifying ASU’s which replaced most existing revenue recognition guidance in GAAP. The new guidance requires SGV

Habitat to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which SGV Habitat expects to be entitled in exchange for those goods or services. The new guidance also requires expanded disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

The adoption of this new guidance was done using the modified retrospective method. SGV Habitat applied the new guidance using the practical expedient provided in Topic 606 that allows the guidance to be applied only to contracts that were not complete as of July 1, 2020. Results for reporting periods beginning after July 1, 2020 are presented under Topic 606 while prior periods amounts are not adjusted and continue to be reported in accordance with legacy GAAP.

There was no significant effect on the financial statements related to the adoption of this new standard which would require a cumulative effect adjustment to net assets at the date of adoption under the modified retrospective method.

SGV Habitat’s material revenue-generating activities and related accounting policies are as follows:

ReStore Sales and Sales to Homeowners SGV Habitat recognizes revenue on the sale of goods to customers at its ReStore locations and on the sale of homes at a point in time. Revenue is recognized when the title to goods is passed to its customers or homeowners, in an amount that reflects the consideration SGV Habitat expects to be entitled to in exchange for those products.

Contributions Contributions are recorded when cash or unconditional promises-to-give have been received, or when ownership of donated assets is transferred to SGV Habitat. SGV Habitat records contributions as restricted if donors restrict their use for a specific purpose or time or both. When donor restrictions expire, that is, when the purpose restriction is fulfilled or the time restriction expires, net assets with donor restriction are reclassified to net assets without donor restriction and reported in the statement of activities as net assets released from restrictions. It is SGV Habitat's policy to record donor restricted contributions received and expended in the same accounting period as contributions without donor restrictions.

When contributions are restricted by donors for the acquisition of property or other long-lived assets, the restriction is considered to be met when the property or other long-lived asset is acquired.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

REVENUE RECOGNITION (continued)

In-kind Contributions

SGV Habitat receives donated building materials and various other building supplies for use in the construction of houses. Such donations are recorded in the statement of activities as in-kind contributions at their estimated fair value on the date received. Assets received with explicit restrictions regarding their use are reported as increases in net assets with donor restriction.

Absent donor stipulations regarding how long those donated assets must be maintained, SGV Habitat reports expirations of donor restrictions when the amounts are expended as instructed by the donor.

SGV Habitat reclassifies net assets with donor restriction to net assets without donor restriction at that time. During the years ended June 30, 2021 and 2020, in-kind contributions amounted to $1,894,039 and $1,528,897, and donated services amounted to $24,841 and $2,364, respectively.

PAYCHECK PROTECTION PROGRAM LOAN

During the years ended June 30, 2021 and 2020, SGV Habitat received Paycheck Protection Program (PPP) funding in the amount of $497,689 and $486,280, respectively. The loans are administered by the Small Business Administration (SBA), as a result of the Coronavirus Aid, Relief, and Economic

Security (CARES) Act, and the Economic Aid Act passed by Congress. The loans bear interest at a rate of 1% per annum, and are forgivable if certain conditions are met, including, but not limited to, specified expenditure requirements and maintaining staffing levels.

Due to the forgiveness element of the loans, SGV Habitat has elected to treat the proceeds as conditional contributions from the government, in accordance with GAAP. As of June 30, 2021, all of the conditions for loan forgiveness had been met and the proceeds are included in contribution and grant revenues for the years ended June 30, 2021 and 2020.

FUNCTIONAL ALLOCATION OF EXPENSES

The financial statements report certain categories of expenses that are attributable to more than one program or supporting function. Therefore, these expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include personnel expenses, and office and occupancy, which are allocated on a basis of time and efforts.

DONATED SERVICES

SGV Habitat receives substantial donated architectural, construction, and legal services in conjunction with home construction and sales to homeowners. Contributed services are recognized as in-kind contributions in accordance with Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification of Accounting for Contributions Received and

Contributions Made, if the services (a) create or enhance nonfinancial assets, or (b) require specialized skills, that would otherwise be purchased by SGV Habitat.

In addition to donated services recorded in the financial statements, many other individuals routinely provide voluntary services to the overall work of SGV Habitat. These services have a significant impact on making the housing program effective. However, the value of these services is not reflected in the financial statements because it does not meet the criteria described above.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

USE OF ESTIMATES

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

FAIR VALUE MEASUREMENTS

Accounting principles generally accepted in the United States of America require that items recorded at fair market value be valued as level one, two or three, based on various inputs and methodologies as described below:

Level 1 - quoted prices and active markets for identical holdings

Level 2 - significant observable market-based inputs, other than Level 1 quoted prices, or unobservable inputs that are based on comparable market data

Level 3 - significant observable inputs that are not based on comparable market data

INCOME TAXES

SGV Habitat operates as a nonprofit corporation under section 501(c)(3) of the Internal

Revenue Code and is exempt from federal and state income taxes; accordingly, no provision is made for current or deferred income taxes. SGV Habitat uses the same accounting methods for tax and financial reporting.

JOINT COST ALLOCATION

SGV Habitat incurs costs that are shared by program, management and general, and fundraising activities. The amount allocated to each area depends upon the purpose, audience and content of each medium used. SGV Habitat determined the allocation based on both current and historical data.

MORTGAGE LOANS RECEIVABLE

A concentration of credit risk may arise from the mortgage loans receivable. The discount rate is recommended by Habitat International and does not approximate current market conditions. Utilizing the effective interest method, the discount is recognized over the term of the mortgage as interest income.

As of June 30, 2021, there were no loan defaults.

During the year ended June 30, 2021 SGV Habitat sold 9 mortgages for $1,840,750 with aggregate face values of $2,272,141 and discounts on the notes in the amount of $1,351,922. This resulted in a gain of $920,531 for the year ended June 30, 2021.

During the year ended June 30, 2020 SGV Habitat sold 13 mortgages for $1,990,056 with aggregate face values of $2,426,919 and discounts on the notes in the amount of $1,417,192. This resulted in a gain of $980,329 for the year ended June 30, 2020. -12-

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

MORTGAGE LOANS RECEIVABLE (continued)

Mortgage loans receivable consisted of:

Euclid Avenue, Duarte Burkett Road, El Monte Orange Street, Glendale Gardena Avenue, Glendale Pacific Avenue, Glendale Palmer Avenue, Glendale Kenwood Street, Glendale Sherman Avenue, Monrovia Geneva Street, Glendale Chestnut Street, Glendale Desiderio, Pasadena Lomita, Glendale A Brush with Kindness exterior home repairs

Less discount at rates ranging from 7.38% to 8.18% June 30, 2021 2020

$ 16,097 $ 19,453 - 836 10,306 25,768 24,392 31,234 57,456 76,604 287,479 304,291 1,512,187 1,569,928 363,859 385,704 409,064 414,602 135,000 135,000 1,044,239 2,197,474 360,000 1,870,565 124,788 125,538

4,344,867 7,156,997

(806,023) (2,397,024)

$ 3,538,844 $ 4,759,973

The future amounts to be received under mortgage loans receivable outstanding at June 30, 2021 are:

2022 $ 129,185 2023 118,241 2024 104,551 2025 102,468 2026 97,932 Thereafter 3,792,490

$ 4,344,867

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

HOUSES UNDER CONSTRUCTION

Houses under construction are stated at cost, which is lower than the fair market value.

Houses under construction consisted of:

June 30, 2021 2020

Howard, Pasadena Manzanita, Pasadena Collegian, Monterey Park Baldwin Park, Baldwin Park Olive, Baldwin Park Torch, Baldwin Park Olive, Altadena Angeleno, Azusa Desideio, Pasadena A Brush with Kindness $ 127,738 $ 58,744 1,106,500 1,074,258 731,182 691,637 574,414 543,905 567,241 374,754 1,471,642 38,002 6,750 414,345 9,184 9,184

$ 5,046,998 $ 2,752,482

PROPERTY AND EQUIPMENT

Property and equipment consisted of:

Office equipment Vehicles Software Leasehold improvements

Less accumulated depreciation

Net property and equipment June 30, 2021 2020

$ 76,969 $ 74,388 151,606 143,106 4,000 1,050,391 985,920

1,282,966 1,203,414

1,078,511 1,002,177

$ 204,455 $ 201,237

Depreciation expense for the years ended June 30, 2021 and 2020 was $80,159 and $76,117, respectively.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

INTANGIBLE ASSETS

Intangible assets consisted of:

Website Loan costs Less accumulated amortization June 30, 2021 2020

$ 11,800 $ 11,800 110,893 110,893 (32,906) (22,624) $ 89,787 $ 100,069

Amortization expense for the years ended June 30, 2021 and 2010 was $10,282 and $7,157, respectively.

NOTES PAYABLE

Note secured by real property in Baldwin Park, California, noninterest bearing; paid back upon SGV Habitat's sale through the issuance of loans to buyers

Note secured by mortgage loans receivable; noninterest bearing; monthly payments of $7,087; maturing October 2042

Less discount on notes payable June 30, 2021 2020

$ 1,410,000 $ -

1,590,069 1,675,108 3,000,069 1,675,108

(192,471) (213,952) $ 2,807,598 $ 1,461,156

The discount on notes payable is amortized based on the interest method over the life of the loans. Amortized interest for the years ended June 30, 2021 and 2020 was $21,481 and $32,789, respectively, and is included in interest expense.

In March 2021, SGV Habitat entered into a note payable agreement with the City of Baldwin Park in the amount of $1,410,000 in exchange for land located in Baldwin Park to be used to build 12 affordable housing units. Upon completion of the affordable housing units, the total note payable of $1,410,00 will be divided equitably based on the number of units completed and assumed by each purchaser of an affordable housing unit. The agreement between SGV Habitat and the City of Baldwin Park requires all units to be sold by December 2024. No units were completed or sold for this project as of June 30, 2021.

The future minimum payments at June 30, 2021 are as follows:

2022 $ 85,040 2023 85,040 2024 85,040 2025 1,495,040 2026 85,040 Thereafter 1,164,869

$ 3,000,069

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

NOTES PAYABLE (continued)

Interest expense for the years ended June 30, 2021 and 2020 was $23,694 and $32,789, respectively.

Management believes SGV Habitat was in compliance with all loan covenants for the years ended June 30, 2021 and 2020.

LINE OF CREDIT

SGV Habitat has a line of credit agreement with East West Bank with a maximum limit of $1,250,000. The line bears interest at the bank's prime lending rate, with a floor of 3.25%. Additional borrowings on the line during the years ended June 30, 2021 and 2020 were $300,000 and $350,000, respectively. Principal payments on the line of credit during the years ended June 30, 2021 and 2020 were $350,000 and $0, respectively. The outstanding principal balance on the line of credit as of June 30, 2021 and 2020 was $300,000 and $350,000, respectively.

COMMITMENTS

At June 30, 2021 and 2020, SGV Habitat had executed commitments for various building related services totaling $20,488 and $132,923, respectively. As of June 30, 2021 and 2020, $0 and $19,078 had been completed, respectively.

RENTAL INCOME

SGV Habitat subleases its Atwater Village, California property to two different tenants. The monthly lease rates range between $5,400 to $5,725 over the duration of the leases. The leases expire in August 2021 and October 2023.

At June 30, 2021, future minimum payments to be received are as follows:

2022 $ 46,348 2023 45,788 2024 15,642

$ 107,778

Rental income for the years ended June 30, 2021 and 2020 was approximately $66,582 and $61,150, respectively, and is included in other income.

LEASE COMMITMENTS

SGV Habitat leases various office equipment and two vehicles with total monthly payments of $3,200. The leases expire between May 2023 through June 2025.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

LEASE COMMITMENTS (continued)

SGV Habitat also rents four properties in California located in the cities of Azusa, Atwater Village, Duarte and Monrovia. The total monthly payments are $59,009 and are adjusted based on the specific lease agreement. The leases expire between November 2023 and March 2025, respectively.

At June 30, 2021, future minimum payments are as follows:

2022 $ 799,966 2023 817,982 2024 674,386 2025 403,087

$ 2,695,421

Lease expense for the years ended June 30, 2021 and 2020 was approximately $646,900 and $714,000, respectively, and is included in occupancy on the Statement of Functional Expenses.

RETIREMENT PLAN

Upon employment, all employees of SGV Habitat are eligible to participate in the San Gabriel Valley Habitat for Humanity, Inc.'s non-ERISA 403(b) plan (the Plan). Employees may contribute a portion of their salaries to the Plan as the legal limits allow. The Plan is non-ERISA, and therefore not permitted to have employer contributions. A change in this policy would require a Board resolution and an amendment and restatement of the Plan.

SALE OF HOMES

No homes were sold during the year ended June 30, 2021.

During the year ended June 30, 2020, SGV Habitat sold six Habitat homes. Mortgages totaling $1,891,840 were issued through escrow.

RELATED PARTY TRANSACTIONS

SGV Habitat annually remits a portion of its contributions (excluding in-kind contributions) to Habitat International. These funds are used to construct homes in economically depressed areas around the world. During the years ended June 30, 2021 and 2020, SGV Habitat contributed to Habitat International $60,000 and $10,000, respectively for this purpose. SGV Habitat also paid Habitat International fees for stewardship and organizational sustainability totaling $25,000 and $25,000 for the years ended June 30, 2021 and 2020, respectively, which are included in tithes and dues on the statement of functional expenses.

On September 30, 2019, SGV Habitat issued a promissory note to a related party, Neighborhood Housing Partners, Inc, in the amount of $10,000. The note is a zero-interest note, payable in 36 months. The outstanding balance on the note as of June 30, 2021 and 2020 was $10,000, which has been eliminated through consolidation.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

RELATED PARTY TRANSACTIONS (continued)

On June 30, 2021, SGV Habitat issued two promissory notes to a related party, Neighborhood Housing Partners, Inc, in the total amount of $300,000. The notes bear interest at a rate equivalent to SGV Habitat's interest rate on its line of credit, payable by April 2022. The outstanding balance on the note as of June 30, 2021 was $300,000, which has been eliminated through consolidation.

BOARD DESIGNATED NET ASSETS

The Board designated net assets totaling $5,046,998 and $2,752,482 for the years ended June 30, 2021 and 2020, respectively, to pay for current housing projects.

NET ASSETS WITH DONOR RESTRICTION

Net assets subject to purpose restrictions are available for:

Howard building project CalHome Re-Use Pasadena ADU project

Net assets subject to time restrictions are available for:

Howard building project General

Total net assets with donor restrictions:

RISKS AND UNCERTAINTIES June 30, 2021 2020

$ 344,377 $ 44,761 60,000 23,781 192,350

428,158 237,111

- 100,000 118,050 45,842

118,050 145,842

$ 546,208 $ 382,953

In March 2020, the World Health Organization declared the spread of Coronavirus disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global, national, and local markets, supply chains, businesses, and communities. Specific to SGV Habitat, COVID-19 may impact various parts of its operations and financial results. SGV Habitat is taking appropriate actions to mitigate the negative impact; however, the full impact of COVID-19 is unknown and cannot be reasonably estimated as of October 11, 2021.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 AND 2020

SUBSEQUENT EVENTS

SGV Habitat has evaluated subsequent events through October 11, 2021, the date at which the financial statements were issued. Based on its evaluation, management has determined the following require disclosure:

On July 14, 2021, Neighborhood Housing Partners closed escrow on 4042 Mason Road Unit D, in El Monte California for a purchase price of $500,000. Neighborhood Housing Partners deposited $271,000 prior to the year ended June 30, 2021, which is included in other assets.

During July 2021, SGV Habitat sold two homes in Monterey Park, California and Pasadena, California. Total proceeds from the sales were $1,120,050.

During August 2021, SGV Habitat sold a home in Baldwin Park, California. Total proceeds from the sale were $544,526.

During September 2021, SGV Habitat sold one home in Baldwin Park, California. Total proceeds from the sale were $580,000.