Audit 318467

Title: ORGANIZATION Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Guadalupe Neighborhood Development Corporation (GNDC) is a Texas nonprofit corporation set up to provide affordable housing to families in the Austin area with very low to moderate incomes. In 2005, GNDC established a new entity and became the sole member of GNDC GP, LLC. In turn, GNDC GP, LLC became the general partner of Guadalupe-Saldana Affordable Homes, LP. Because GNDC has 100% of the voting interest in GNDC GP, LLC, and GNDC GP, LLC has a controlling financial interest in Guadalupe-Saldana Affordable Homes, LP (as general partner), the financial statements consolidate the financial statements of the 3 entities. Inter-company balances have been eliminated in the consolidation. GNDC GP, LLC’s sole purpose is to serve as general partner of Guadalupe-Saldana Affordable Homes, LP. Guadalupe-Saldana Affordable Homes, LP owns land where GNDC will build approximately 125 homes. The accompanying consolidated financial statements report all of the activity of various funding sources which includes rental and interest income, contributions, forgivable debt, and sales of houses. During 2007, GNDC established La Vista de Guadalupe, LLC (GFC) with GNDC as the sole member. GFC is serving as the 0.01% general partner in a low income housing development and GNDC served as the developer of the development.. During 2023, GNDC acquired controlling interest of GFC as the Limited Partner. Inter-company balances have been eliminated in the consolidation. The financial statements of GFC have been consolidated with GNDC. See Note 19. In 2015, GNDC established GNDC Saldana GP, LLC (GNDC Saldana GP), with GNDC being the sole member. GNDC Saldana GP and the Jeremiah Program Austin, LLC subsequently formed a partnership, Guadalupe Jeremiah LP (Guadalupe Jeremiah), with GNDC Saldana GP as the general partner, and Jeremiah Program Austin, LLC as a limited partner. As GNDC, through GNDC Saldana GP, has a controlling financial interest in and is the primary beneficiary of Guadalupe Jeremiah, the financial statements of Guadalupe Jeremiah are consolidated with GNDC. Inter-company balances have been eliminated in the consolidation. In 2019, Guadalupe Jeremiah constructed a residential rental facility with 35 units for single parents pursuing education and career opportunities. In 2020, GNDC established GNDC Lopez GP, LLC (De Lopez), with GNDC being the sole member. The purpose of this company is to provide affordable housing to low income individuals and track transactions in connection with La Vista de Lopez, an affordable housing project in Austin. During 2023 construction began on the De Lopez property. Inter-company balances have been eliminated in the consolidation. The financial statements of De Lopez have been consolidated with GNDC.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other 8 donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. 9 ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss.

Title: CONTINGENCIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use implementation of its program. Should GNDC not comply with the terms of the loans and grants or should any costs be determined to be ineligible, GNDC will be responsible for reimbursing the grantor for these amounts. Management believes there will be no such disallowance. As part of a development agreement, GNDC guaranteed to fund operating deficits, if any, of GFC apartments up to $85,000 via an unsecured loan to GFC with interest at 8%. As of 31 December 2023 and 2022, no operating deficits have been incurred. GNDC has a shared interest in the gain at sale for several properties. GNDC will recognize income upon the sale of the property based on the appreciated value at the date of sale. GNDC received land from the City of Austin for affordable housing. Should GNDC not comply with the terms of the deed of trust on the land, GNDC will be responsible for paying the City of Austin $52,818, the value of the land at the time of the agreement. Management believes there will be no such disallowance. Litigation Irayland Whitmill v. GNDC et al, Cause #D-1-GN-23-004305 in the 261st Judicial District of Travis County, Texas: The case is currently pending with a trial date of September 9, 2024, however that trial date is in the process of being continued as the case is still in the middle of fact discovery. The claim stems from an alleged sexual assault that occurred when a tenant at the Jeremiah Project allegedly was assaulted within her apartment unit by a pest control technician providing services for ABC Home & Commercial Services, Inc. Although the pest control technician in question was on premises providing scheduled services, he was not scheduled to provide services at Plaintiff's unit. Plaintiff has alleged that the technician went to her apartment and after he knocked on her door several times, she let him in the apartment. Plaintiff has alleged that GNDC and Guadalupe Jeremiah LP, as property manager for the property, were negligent is allowing the technician to go to her apartment unit, despite the fact that she unilaterally decided to let him in. Plaintiff's pleadings indicate that she is seeking damages between $200,000 and $1,000,000.00. However, both GNDC and Guadalupe Jeremiah LP qualify for protections under the Texas Charitable Immunity statute. The case is being covered and defended by insurance provided by the Hanover Insurance Company. Management through their attorney intends to vigorously defend itself in this matter. The likelihood of a favorable or unfavorable outcome of this case cannot be determined at this time.

Title: COMMITMENTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Under the terms of various agreements with funding agencies, GNDC is required to provide certain services including, but not limited to, using certain properties for low income housing and maintaining certain levels of insurance.

Title: CONCENTRATIONS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use 83% and 92% of notes payable are due to one lender as of 31 December 2023 and 2022, respectively. See Note 13. At 31 December 2022, 91% of notes receivable are due from one borrower. Due to the acquisition of GFC the note receivable has been eliminated in the consolidation of the financial statements. At 31 December 2023 and 2022, GNDC had cash balances in excess of FDIC insurance amounting to $2,909,391 and $117,650 respectively. GNDC has not experienced any losses due to this credit risk.

Title: MINORITY INTEREST LIABILITIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use 2023 2022 Saldana LLP interest in Guadalupe-Saldana Affordable Homes $61,300 $61,296 Jeremiah Program Austin, LLC interest in Guadalupe- Jeremiah LP 4,894,697 4,894,697 $4,955,997 $4,955,993

Title: RELATED PARTY TRANSACTIONS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use As of 31 December 2022, GNDC had interest receivable of $1,618,423, and notes receivable of $2,741,018, due from GFC, an organization with common officers as of 31 December 2022. During 2023, GNDC acquired GFC resulting in an elimination of the interest and note receivable. GNDC purchased a property from a board member for $261,000 in 2015, the property was appraised for $510,000 at the time of purchase. As of 31 December 2023 and 2022, GNDC owed the board member $0 and $173,350, respectively, which was paid with a 0% interest 15 year note. The balance of the loan was paid off during 2023. During 2023, GNDC sold a property to a current employee for a total sales price of $235,000.

Title: FIXED ASSETS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use GNDC 2023 2022 Construction in progress $2,678,942 $2,247,048 Furniture and equipment 21,790 20,232 Accumulated depreciation (18,859) (18,096) 2,681,873 2,249,184 GNDC Saldana GP Land 827,975 827,975 Infrastructure 1,362,347 1,362,347 Accumulated depreciation (716,456) (648,604) 1,473,866 1,541,718 $4,155,739 $3,790,902

Title: RENTAL REAL ESTATE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use GNDC 2023 2022 64 housing units in 2023 and 2022 (with $1,191,631 land) $7,138,086 $7,112,316 Closing costs 94,507 67,105 Land 784,357 1,119,557 Accumulated depreciation (3,245,982) (3,028,656) 4,770,968 5,270,322 Guadalupe Jeremiah 35 housing units in 2023 and 2022 6,888,887 6,885,287 Accumulated depreciation (1,851,363) (1,575,333) 5,037,524 5,309,954 GFC Building and improvements 747,956 0 Property and equipment 52,550 0 Land 350,000 0 Accumulated depreciation (184,444) 0 966,062 0 De Lopez Construction in progress 1,970,143 0 Closing costs 748,418 0 Land 335,200 0 3,053,761 0 $13,828,315 $10,580,276

Title: CONSTRUCTION CONTRACT COMMITMENTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use On 18 February 2020, GNDC entered into a contract with U.S. Department of Housing and Urban Development to develop supportive housing for the elderly. The total contract amount is $4,048,000 to construct, acquire, or rehabilitate 26 dwelling units. De Lopez was formed for this project. As of 31 December 2023, the total funds expended are $473,939. On 25 March 2021, GNDC entered into a contract with Bellwether Enterprise Real Estate Capital, LLC for mortgage insurance processing and underwriting services. The total contract amount is $175,390 and the remaining commitment at year end is approximately $108,000 at year end. 13 On 1 July 2022, GNDC entered into a contract with Spring Architects for architectural services on the Gardner project. The total contract amount is $154,000 and the remaining commitment at year end is approximately $27,000. On 23 May 2022, GNDC entered into a contract with Spring Architects for architectural services on the Tannehill project. The total contract amount is $160,000 and the remaining commitment at year end is approximately $123,000.

Title: FUNCTIONAL EXPENSES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Functional expense allocation at 31 December 2023: Program Management and General Fundraising Total Loss on acquisition of GFC (Note 19) $3,338,945 $0 $0 $3,338,945 Interest 600,577 0 0 600,577 Depreciation 527,318 46,873 11,718 585,909 Payroll 499,906 33,814 14,622 548,342 Repair and maintenance 333,185 0 0 333,185 Legal 135,000 12,000 3,000 150,000 Utilities 112,512 10,001 2,500 125,013 Insurance 106,558 9,472 2,368 118,398 Amortization 74,883 0 0 74,883 Accounting 0 54,063 0 54,063 Other 87,136 7,746 1,937 96,819 $5,816,020 $173,969 $36,145 $6,026,134 Functional expense allocation at 31 December 2022: Program Management and General Fundraising Total Depreciation $506,390 $45,012 $11,253 $562,655 Interest 548,605 0 0 548,605 Payroll 420,150 21,463 13,658 455,271 Repair and maintenance 229,572 0 0 229,572 Insurance 82,698 7,351 1,838 91,887 Utilities 75,635 6,723 1,681 84,039 Accounting 0 46,580 0 46,580 Legal 30,600 2,720 680 34,000 Amortization 7,297 0 0 7,297 Other 74,277 6,602 1,651 82,530 $1,975,224 $136,451 $30,761 $2,142,436

Title: REVENUE FROM CONTRACTS WITH CUSTOMERS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use DISAGGREGATION OF REVENUE 2023 2022 Revenue earned at a point in time $1,511,498 $106,005 Revenue earned at a point in time consists of the gross amount earned for homes sold during the year, amounts earned for the completion of specific performance obligations under the fee for service contract, and consulting fees. Property sales are recorded net of the cost of homes on the statement of activities. CONTRACT BALANCES Contracts receivable relate to the sale of a property in prior years. The receivable balance at 31 December 2023 and 2022 was $93,425 and $97,198 respectively. The receivable is due in monthly installments of $425 through 2042.

Title: NOTES RECEIVABLE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use During 2010, GNDC entered into six note receivable agreements as the result of the sale of six properties. The properties were sold by an independent party at appraised fair market value, but with the seller accepting amounts less than fair market value. The cash portion of the sales were financed by the purchasers with bank mortgages and down payment assistance from the City of Austin. The difference between the appraised value sales price and the cash required at purchase was secured by a third lien held by GNDC. The third lien note also provided GNDC with a share of equity based on the percentage value of its lien relative to the appraised value of the property. Based on current market value estimates, GNDC’s interest in any appreciated value over the recorded value of the third lien notes is not considered significant at year end. The notes are collateralized by real property as described in the note agreements. GNDC’s access to the collateral is based on normal legal foreclosure processes. If the debtors fail to perform according to the terms of the agreements, and the collateral proves to be of no value, GNDC would incur a loss equal to the principal balance receivable. During 2023, GNDC became controlling entity of La Vista de Guadalupe, as of year end all notes receivable from GFC are eliminated on the consolidated financial statements 2023 2022 Note receivable from GFC, collateralized by real estate. See Note 14 for the related note payable to the City of Austin in the same amount. $0 $2,138,239 Note receivable from GFC, collateralized by real estate, note bears a 1.5% interest rate. 0 40,423 Note receivable from GFC, collateralized by real estate, note bears 0% interest rate. 0 78,399 Note receivable from GFC, collateralized by real estate, note bears 0% interest rate. 0 102,365 Note receivable from GFC, collateralized by real estate, note bears 0% interest rate. 0 75,640 15 Note receivable from GFC, collateralized by real estate, note bears 4.9% interest rate. 0 350,000 Notes receivable agreements (4 in 2020 and 2019), collateralized by real estate, notes bear a 0% interest rate, monthly payments are scheduled to begin in 2040. In the event of default, the receivable will begin to accrue interest at 10%. 139,100 139,100 Note receivable from one borrower, collateralized by real estate, note bears an interest rate of 0%. 93,425 97,198 232,525 3,021,364 Less current portion of notes receivable (5,100) (5,100) Long-term portion of notes receivable $227,425 $3,016,264

Title: NOTES PAYABLE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use GNDC 2023 2022 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest will be forgiven in its entirety if on 31 March 2112 GNDC is in compliance with all terms and conditions of the Loan Agreement. $600,000 $600,000 Note payable to Austin Housing Finance, collateralized by rental real estate, bearing interest at 0%, due in monthly installments through 1 April 2023. 0 3,250 Notes payable to Austin Housing Finance, collateralized by rental real estate. The notes bear a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 1 March 2107 GNDC is in compliance with their terms and conditions of the Loan Agreements. 102,354 102,354 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 23 April 2108 GNDC is in compliance with all terms and conditions of the Loan Agreement. 850,000 850,000 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 11 November 2049 GNDC is in compliance with all terms and conditions of the Loan Agreement. 435,500 435,500 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 1 February 2027 GNDC is in compliance with all terms and conditions of the Loan Agreement. 395,000 395,000 16 Note payable to Austin Housing Finance, collateralized by GNDC’s note receivable from GFC, which in turn, is collateralized by the underlying rental real estate. The note bears a 0% interest rate until maturity. The principal and interest shall be forgiven in its entirety if on 1 September 2049 GNDC is in compliance with all terms and conditions of the Loan Agreement. See Note 13 for related note receivable. 2,138,239 2,138,239 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 31 January 2108 GNDC is in compliance with all terms and conditions of the Loan Agreement. 1,000,000 1,000,000 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 30 April 2049 GNDC is in compliance with all terms and conditions of the Loan Agreement. 60,000 60,000 Note payable to Austin Housing Finance, collateralized by real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 20 December 2108 GNDC is in compliance with all terms and conditions of the Loan Agreement. 555,000 555,000 Notes payable to Texas Department of Housing and Community Affairs, at 0% interest, collateralized by real estate. The total principal balance is $323,000. $162,000 is payable in monthly installments beginning 1 August 2014 until maturity, 1 July 2044. $161,000 is forgiven in annual increments of $5,368, through maturity, 1 August 2043 provided GNDC is in compliance will all terms and conditions of the Loan Agreement. 218,059 228,826 Note payable to Austin Housing Finance, collateralized by real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 31 December 2032 GNDC is in compliance with all terms and conditions of the Loan Agreement. 50,000 50,000 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 31 December 2114 GNDC is in compliance with all terms and conditions of the Loan Agreement. 2,000,000 2,000,000 Note payable to Austin Housing Finance, with a 0% interest rate, collateralized by rental real estate. The note will be forgiven as each of the housing units is sold. The remaining balance will be forgiven in its entirety on 31 August 2110 if GNDC is in compliance with all terms and conditions of the Loan Agreement. 473,077 550,000 17 Note payable to Mary Helen Lopez (a former board member), at 0% interest, with a face value of $261,000, payable in monthly payments of $1,450 starting June 2020 until June 2033 discounted to present value at a rate of 6%. 0 99,166 Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 31 October 2116 GNDC is in compliance with all terms and conditions of the Loan Agreement. 1,281,460 1,281,460 Note payable to Austin Housing Finance, collateralized by real estate. The note bears a 0% interest rate until maturity. The loan will be partially forgiven upon the sale of each home and fully forgiven when both homes have been sold to eligible buyers. 240,000 240,000 Note payable with a principal amount of $571,000 with Frost Bank, collateralized by real estate. The notes bear a 4.174% interest rate, monthly payments of principal and interest are $7,866 until maturity on 29 October 2027. 330,727 409,204 Note payable principal amount $290,000 with Horizon Bank, collateralized by real estate. The note bears 5% interest rate until maturity, monthly payments of interest are due beginning 15 July 2022 continuing regularly through 15 June 2023. 0 156,100 Note payable with a principal amount of $126,860 with Austin Housing Finance, collateralized by real state. The note bears 0% interest rate until maturity, provided that GNDC is in compliance with all terms and conditions payment on principal and interest shall be forgiven in its entirety upon maturity at 1 August 2024. 72,200 0 Note payable with a principal amount of $2,400,000 with Austin Housing Finance, collateralized by real state. The note bears 0% interest rate until maturity, provided that GNDC is in compliance with all terms and conditions payment on principal and interest shall be forgiven in its entirety upon maturity at 1 July 2028. 491,016 0 Note payable with a principal amount of $934,740 with Austin Housing Finance, collateralized by real state. The note bears 0% interest rate until maturity, provided that GNDC is in compliance with all terms and conditions payment on principal and interest shall be forgiven in its entirety upon maturity at 1 August 2121 486,430 0 De Lopez $1,500,000 note payable to Bellwether Enterprise Real Estate Capital LLC funded through HUD, collateralized by real estate. The note bears a 5.35% interest rate until maturity. Principal and interest payments will begin 23 months after the date of completion and is set to mature on 1 May 2065, De Lopez is in compliance with all terms and conditions of the Loan Agreement. 585,000 0 18 $4,048,000 note payable to Department of Housing and Urban Development, collateralized by real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 1 July 2078 De Lopez is in compliance with all terms and conditions of the Loan Agreement. 473,939 0 $5,217,310 note payable to Austin Housing Finance, collateralized by real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on 1 February 2031 De Lopez is in compliance with all terms and conditions of the Loan Agreement. 246,161 0 $375,000 note payable to Texas State Affordable Housing Corporation, collateralized by real estate. The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven by 1/10th the original loan amount per year from the date the property is placed in service, if De Lopez is in compliance with all terms and conditions of the Loan Agreement. 375,000 0 $13,459,162 $11,154,099 Maturities 2024 $89,555 2025 92,907 2026 96,402 2027 100,561 2028 10,767 Thereafter 13,068,970 $13,459,162

Title: NET ASSETS WITH DONOR RESTRICTIONS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Net assets subject to expenditure for specified purpose at year end: 2023 2022 Capacity building $0 $8,210 Community Land Trust 201,080 0 Affordable housing 0 87,973 La Vista de Lopez communications room 25,000 25,000 Escuela Nueva 22,500 0 East Knight 0 100,000 Other projects 29,685 29,685 278,265 250,868 Net assets time restricted for 2024 100,000 0 $278,265 $250,868 19 Net assets released from donor restrictions during the year: 2023 2022 Capacity building $8,210 $10,621 Affordable housing 87,973 387,027 Community Land Trust 58,920 0 GSNZ park improvement 75,000 0 East Knight 100,000 0 Home buyer education 0 25,000 Covid 19 relief 0 24,129 Other projects 0 575 $330,103 $447,352

Title: LIQUIDITY AND AVAILABILITY Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use As part of GNDC’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and deducted from GNDC’s operating accounts. As a part of GNDC’s policy, separate accounts are maintained for tenant security deposits and maintenance/replacement reserves. GNDC also tracks federal loan amounts in a separate account for construction costs. Several of GNDC’s notes payable are forgivable upon maturity if GNDC is in compliance with the Loan Agreements, see Note 14 for the terms of each note. See note 1 for description on restricted cash. See note 15 for description of restricted net assets Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following: 2023 2022 Cash $3,453,630 $524,695 Grants receivable 100,000 0 Current portion of notes receivable 5,100 5,100 3,558,730 529,795 Less: amounts unavailable for general expenditure within one year due to donor-imposed restrictions (278,265) (250,868) $3,280,465 $278,927

Title: FEE FOR SERVICE CONTRACTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use During 2019 GNDC entered into a fee for service contract for $667,125 for the design of Nueva Escuela and development of a new partnership. The revenue is earned at a point in time, upon completion of each performance obligation. A detail of the transaction price for each performance obligation is as follows; these amounts were specified in the contract. Performance obligation Year Amount Execution of Contract 2019 $25,000 Final Conceptual Design and First Community Engagement Convening 2020 50,000 Technical Assistance 2020 94,875 Design Development Documents 2020 96,000 First Community Engagement and Technical Assistance 2020 18,250 Land/Ownership Agreement, Second Community Engagement Convening, and Finalize Development Plan 2020 131,000 Final Construction Documents 2021 10,000 Building Permit and Partnership Agreement 2021 25,000 Finalize Development Plan 2022 15,000 Financial Plan 2022 10,000 Service Delivery Research + Best Practices 2023 30,000 Draft On-Site Service Plan 2023 40,000 Management and Lease Agreements and School and Tenant Outreach 2023 32,000 Operating Agreements and On-Site Service Agreements 2023 40,000 On-Site Service Coordination Prototype and Toolkit for Scaling Housing + School Model 2024 50,000 $667,125

Title: CONTRIBUTED INTEREST, CONSTRUCTION COSTS, AND SERVICES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use For the year ended 31 December, contributed nonfinancial assets recognized within the statement of activities include: 2023 2022 Interest $572,394 $529,440 Construction costs 302,963 0 Attorney fees 150,000 34,000 $1,025,357 $563,440 21 Contributed nonfinancial assets did not have donor-imposed restrictions. Interest for forgivable loans is forgiven annually as GNDC is in compliance with loans. Forgivable interest is used for program activities and is valued at the estimated fair value in the financial statements based on the current rates in effect for similar loans at the time of the loan agreement. Contributed services consist of attorney fees used for program, management, and fundraising activities and are valued at the estimated fair value, in the financial statements based on current rates for similar services. Contributed construction costs were used during the development of East Knight house and are valued at the costs of construction services for similar construction projects.

Title: LOSS ON ACQUISITION Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At year end, GNCD has restricted cash of $263,407 which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences under operating leases that are cancellable with 30 days notice. There were 64 available housing units for lease in 2023 and 2022. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables. Performance obligations and payment terms are discussed at Note 18. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. GNDC Saldana GP and Guadalupe Jeremiah have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. At 31 December 2023 and 2022, respectively, no interest, penalties, federal taxes, or state taxes have been or are required to be accrued. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment, 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use During 2007, GNDC established La Vista de Guadalupe, LLC (GFC) with GNDC as the sole member. GFC was serving as the 0.01% general partner in a low income housing development and GNDC served as the developer of the development. During 2023, GNDC acquired controlling interest of GFC as the Limited Partner, and accordingly consolidated the GFC financial statements into GNDC. GNDC recognized a loss as a result of this acquisition.