EDGAR 10-K Filing

Company CIK: 1277998
Filing Year: 2022
Filename: 1277998_10-K_2022_0001213900-22-016309.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS.
Overview
We are a self-administered, self-managed, vertically integrated owner and operator of manufactured housing communities. We earn income from leasing manufactured home sites to tenants who own their own manufactured home and the rental of company-owned manufactured homes to residents of the communities.
We own and operate forty-three manufactured housing communities containing approximately 2,037 developed sites and 1,045 company-owned manufactured homes. Our communities are located in Georgia, North Carolina, South Carolina and Tennessee. See Item 2. “Properties” for a description of these manufactured housing communities.
Our Corporate History and Structure
We originally incorporated in the State of Nevada as Frontier Staffing, Inc. on September 3, 2003. Since our incorporation, we have experienced several name changes and have engaged in several different business endeavors. On October 12, 2017, Mobile Home Rental Holdings LLC, a North Carolina limited liability company, which engaged in acquiring and operating manufactured housing properties, merged with and into our company. In connection with the merger, the name of our company was changed to Manufactured Housing Properties Inc., the former business and management of Mobile Home Rental Holdings became the business and management, respectively, of our company at that time.
In connection with our acquisitions of manufactured housing communities, we have established various limited liability companies and VIEs to hold the acquired properties. Following is a summary of our subsidiaries and VIEs. All intercompany transactions and balances have been eliminated in consolidation. We do not have a majority or minority interest in any other company, either consolidated or unconsolidated.
Name of Subsidiary
State of Formation
Date of Formation
Ownership
Pecan Grove MHP LLC
North Carolina
October 12, 2016
100%
Azalea MHP LLC
North Carolina
October 25, 2017
100%
Holly Faye MHP LLC
North Carolina
October 25, 2017
100%
Chatham Pines MHP LLC
North Carolina
October 31, 2017
100%
Maple Hills MHP LLC
North Carolina
October 31, 2017
100%
Lakeview MHP LLC
South Carolina
November 1, 2017
100%
MHP Pursuits LLC
North Carolina
January 31, 2019
100%
Mobile Home Rentals LLC
North Carolina
September 30, 2016
100%
Hunt Club MHP LLC
South Carolina
March 8, 2019
100%
B&D MHP LLC
South Carolina
April 4, 2019
100%
Crestview MHP LLC
North Carolina
June 28, 2019
100%
Springlake MHP LLC
Georgia
October 10, 2019
100%
ARC MHP LLC
South Carolina
November 13, 2019
100%
Countryside MHP LLC
South Carolina
March 12, 2020
100%
Evergreen MHP LLC
Tennessee
March 17, 2020
100%
Golden Isles MHP LLC
Georgia
March 16, 2021
100%
Anderson MHP LLC
South Carolina
June 2, 2021
100%
Capital View MHP LLC
South Carolina
August 6, 2021
100%
Hidden Oaks MHP LLC
South Carolina
August 6, 2021
100%
North Raleigh MHP LLC
North Carolina
September 16, 2021
100%
Carolinas 4 MHP LLC
North Carolina
November 30, 2021
100%
Charlotte 3 Park MHP LLC
North Carolina
December 10, 2021
100%
Sunnyland MHP LLC*
Georgia
January 2, 2022
100%
Warrenville MHP LLC*
South Carolina
February 15, 2022
100%
Gvest Finance LLC
North Carolina
December 11, 2018
VIE
Gvest Homes I LLC
Delaware
November 9, 2020
VIE
Brainerd Place LLC
Delaware
February 24, 2021
VIE
Bull Creek LLC
Delaware
April 13,2021
VIE
Gvest Anderson Homes LLC
Delaware
June 22, 2021
VIE
Gvest Capital View Homes LLC
Delaware
August 6, 2021
VIE
Gvest Hidden Oaks Homes LLC
Delaware
August 6, 2021
VIE
Gvest Springlake Homes LLC
Delaware
September 24, 2021
VIE
Gvest Carolinas 4 Homes LLC
Delaware
November 13, 2021
VIE
Gvest Sunnyland Homes LLC*
Delaware
January 6, 2022
VIE
Gvest Warrenville Homes LLC*
Delaware
February 14, 2022
VIE
* During the year ended December 31, 2021, there was no activity in Sunnyland MHP LLC, Warrenville MHP LLC, Gvest Sunnyland Homes LLC and Gvest Warrenville Homes LLC.
In December 2020, we entered into a property management agreement with Gvest Finance LLC, a company owned and controlled by our parent company, Gvest Real Estate Capital LLC, an entity whose sole owner is Raymond M. Gee, our chairman and chief executive officer, and have subsequently entered into property management agreements with Gvest Homes I LLC, Gvest Anderson Homes LLC, Gvest Capital View Homes LLC, Gvest Hidden Oaks Homes LLC, Gvest Springlake Homes LLC, Gvest Carolinas 4 Homes LLC, Gvest Sunnyland Homes LLC, and Gvest Warrenville Homes LLC, which are wholly owned subsidiaries of Gvest Finance LLC. Under the property management agreements, we manage homes owned by the VIEs and the VIEs remit to our company all income, less any sums paid out for debt service plus 5% of the debt service payment.
Additionally, during 2021, we formed two entities, Brainerd Place LLC and Bull Creek LLC, for the purpose of exploring opportunities to develop mobile home communities. We own 49% of these entities and Gvest Real Estate LLC, an entity whose sole owner is Raymond M. Gee, our chairman and chief executive officer, owns 51%. We also executed operating agreements with these entities which designate Gvest Capital Management LLC, a company owned and controlled by Gvest Real Estate Capital LLC, as manager with the authority, power, and discretion to manage and control the entities’ business decisions. The operating agreements require us to make cash contributions to the entities to fund their activities, operations, and existence, if we approve the contribution requests from the manager, which ultimately provides us with power to direct the economically significant activities of these entities.
Pursuant to U.S. generally accepted accounting principles, or GAAP, a company with interests in a VIE must consolidate the entity if the company is deemed to be the primary beneficiary of the VIE; that is, if it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Such a determination requires management to evaluate circumstances and relationships that may be difficult to understand and to make a significant judgment, and to repeat the evaluation at each subsequent reporting date. Primarily due to our common ownership by Mr. Gee, our power to direct the activities of these entities that most significantly impact their economic performance, and the fact that we have the obligation to absorb losses or the right to receive benefits from these entities that could potentially be significant to these entities, the entities listed above are considered to be VIEs in accordance with applicable GAAP.
Acquisitions
During 2021, we acquired twenty-four manufactured housing communities via newly formed subsidiaries and VIEs consisting of 806 total sites for an aggregate purchase price of $25,975,000:
● On March 31, 2021, we purchased a manufactured housing community located in Brunswick, Georgia consisting of 113 sites on approximately 17 acres for a total purchase price of $2,325,000. Our subsidiary Golden Isles MHP LLC purchased the land and land improvements and our VIE, Gvest Finance LLC, purchased the homes.
● On July 20, 2021, we purchased ten manufactured housing communities located in Anderson County, South Carolina consisting of 178 sites on approximately 50 acres and for a total purchase price of $5,200,000. Our subsidiary Anderson MHP LLC purchased the land and land improvements and Gvest Anderson Homes LLC, a wholly owned subsidiary of Gvest Finance LLC, purchased the homes.
● On September 10, 2021, we purchased a manufactured housing community located in Lexington County, South Carolina consisting of 32 sites on approximately 10 acres a total purchase price of $1,450,000. Our subsidiary Capital View MHP LLC purchased the land and land improvements and Gvest Capital View Homes LLC, a wholly owned subsidiary of Gvest Finance LLC, purchased the homes.
● On September 16, 2021, we purchased a manufactured housing community located in Lexington County, South Carolina consisting of 44 sites on approximately 9 acres for a total purchase price of $1,550,000. Our subsidiary Hidden Oaks MHP LLC purchased the land and land improvements and Gvest Hidden Oaks Homes LLC, a wholly owned subsidiary of Gvest Finance LLC, purchased the homes.
● On October 25, 2021, our subsidiary North Raleigh MHP LLC purchased five manufactured housing communities located in Franklin and Granville Counties, North Carolina, consisting of 137 sites on approximately 135 acres for a total purchase price of $7,450,000.
● On December 21, 2021, our subsidiary Charlotte 3 Park MHP LLC purchased three manufactured housing communities located in Charlotte, North Carolina and nearby cities of Kings Mountain, North Carolina and York, South Carolina consisting of 157 sites on approximately 78 acres for a total purchase price of $2,500,000.
● On December 29, 2021, we purchased a manufactured housing community located in Morganton, North Carolina consisting of 61 sites on approximately 31 acres for a total purchase price of $2,750,000. Our subsidiary Carolinas 4 MHP LLC purchased the land and land improvements and Gvest Carolinas 4 Homes LLC, a wholly owned subsidiary of Gvest Finance LLC, purchased the homes.
● On December 29, 2021, we purchased two manufactured housing communities located in Asheboro, North Carolina consisting of 84 sites on approximately 45 acres for a total purchase price of $2,750,000. Carolinas 4 MHP LLC purchased the land and land improvements, and Gvest Carolinas 4 Homes LLC purchased the homes.
The Manufactured Housing Community Sector
Manufactured housing communities are residential developments designed and improved for the placement of detached, single-family manufactured homes that are produced off-site and installed on residential sites within the community. The owner of a manufactured home leases the site on which it is located or the lessee of a manufactured home leases both the home and site on which the home is located.
We believe that manufactured housing is one of the only non-subsidized affordable housing options in the U.S. and that manufactured housing is an economically attractive alternative to traditional single-family and multi-family housing, as it provides a housing alternative that has characteristics of single-family housing (no shared walls, dedicated parking and a yard), yet is more attainable than single-family while being competitively priced to multi-family. Demand for housing affordability continues to increase, but supply of manufactured housing remains virtually static, as there are not many new manufactured housing communities being developed, and many are redeveloped to higher and better uses. We are committed to providing this affordable housing option and an improved level of service to our residents, while producing an attractive and stable risk adjusted return to our investors.
A manufactured housing community is a land-lease community designed and improved with home sites for the placement of manufactured homes and includes related improvements and amenities. Each homeowner in a manufactured housing community leases from the community a site on which a home is located. The manufactured housing community owner owns the underlying land, utility connections, streets, lighting, driveways, common area amenities, and other capital improvements and is responsible for enforcement of community guidelines and maintenance of the community. Generally, each homeowner is responsible for the maintenance of his or her home and upkeep of his or her leased site. In some cases, customers may rent homes with the community owner’s maintaining ownership and responsibility for the maintenance and upkeep of the home. This option provides flexibility for customers seeking a more affordable housing option and enables the community owner to meet a broader demand for housing and improve occupancy and cash flow.
We believe that manufactured housing communities have several characteristics that make them an attractive investment when compared to certain other types of real estate, particularly multifamily, including:
● Significant Barriers to Entry. We believe that the supply of new manufactured housing communities will be constrained due to significant barriers to entry in the industry, including: (i) various zoning restrictions and negative zoning biases against manufactured housing communities; (ii) substantial upfront costs associated with the development of infrastructure, amenities and other offsite improvements required by various governmental agencies; and (iii) a significant length of time before lease-up and revenues can commence.
● Diminishing Supply. Supply is decreasing due to redevelopment of older parks.
● Large Demographic Group of Potential Customers. We consider households earning between $25,000 and $50,000 per year to be our core customer base. In 2020, this demographic group represented 19.7% of all full-time workers, according to the U.S. Census Bureau’s ‘Income and Poverty in the United States: 2020’.
● Stable Resident Base. We believe that manufactured housing communities tend to achieve and maintain a stable rate of occupancy, due to the following factors: (i) residents generally own their own homes; (ii) moving a manufactured home from one community to another involves substantial cost and effort and often results in the abandonment of on-site improvements made by the resident such as decks, garages, carports, and landscaping; and (iii) residents enjoy a sense of community inherent in manufactured housing communities similar to residential subdivisions.
● Fragmented Ownership of Communities. Manufactured housing community ownership in the United States is highly fragmented, with most manufactured housing communities owned by individuals. We estimate that the top five manufactured housing community owners control approximately 9% of manufactured housing community home sites.
● Low Recurring Capital Requirements. Although manufactured housing community owners are responsible for maintaining the infrastructure of the community, each homeowner is responsible for the upkeep of his or her own home and home site, thereby reducing the manufactured housing community owner’s ongoing maintenance expenses and capital requirements. For the homes we own and lease to our customers, we conduct periodic unit inspections and experience less turnover than typical multi-family rentals, both of which keep our overall expense ratio lower than typical multi-family expense ratios.
● Affordable Homeowner Lifestyle. Manufactured housing communities offer a lifestyle typically unavailable in apartments, including lack of common walls, a yard for each resident, the ability to park by the front door, and a sense of community.
Competition
There are numerous private companies, but only three U.S. publicly traded real estate investment trusts, or REITs, which compete in the manufactured housing industry. Many of the private companies and one of the REITs, UMH Properties, Inc., may compete with us for acquisitions of manufactured housing communities. Many of these companies have larger operations and greater financial resources than we do. The number of competitors, however, is increasing as new entrants discover the benefits of the manufactured housing asset class. We believe that due to the fragmented nature of ownership within the manufactured housing sector, there are still many attractive investment opportunities that remain; and despite new entrants into our sector, there is still less competitions than in other commercial real estate sectors.
Competitive Strengths
We believe that the following competitive strengths enable us to compete effectively:
● Deal Sourcing. Our deal sourcing consists of marketed deals, pocket listings, and off market deals. Marketed deals are properties that are listed with a broker who exposes the property to the largest pool of buyers possible. Pocket listings are properties that are presented by brokers to a limited pool of buyers. Off market deals are ones that are not marketed.
● Centralized Operations. We have centralized many operational tasks, including accounting, marketing, lease administration, and accounts payable. The use of professional staff and technology at a corporate level allows us to scale efficiently and operate properties profitably by reducing tasks otherwise completed at the property level.
● Deal Size. Due to the relatively small size of our total capitalization, non-institutional deals of less than 150 sites are accretive to our balance sheet. These smaller properties typically do not attract the larger institutional buyers and are at a lower basis and have less bidders than larger properties. We can profitably operate these smaller properties through our centralized operations.
● Creating Value. Our underwriting expertise enables us to identify acquisition prospects to provide attractive risk adjusted returns. Our operational team has the experience, skill and resources to create this value through physical and/or operational property improvements.
Our Investment Strategy
Our primary investment strategy is acquiring both stabilized and non-stabilized manufactured housing properties with current income and enhancing value through our internal asset and property management.
Our investment mission on behalf of our stockholders is to deliver an attractive risk-adjusted return with a focus on value creation, capital preservation, and growth.
We may acquire unimproved property and develop manufactured housing sites or may acquire newly developed sites. We are focused on acquiring or developing communities located in markets where there is a shortage of affordable housing and at a basis that provides both short and long-term capital appreciation. We evaluate property investments nationwide, but to date we have concentrated in the Southeast portion of the United States.
We are one of four U.S. public companies in the manufactured housing sector, but we are the only one not organized as a REIT, thereby giving us flexibility to focus on growth through reinvestment of income and employing higher leverage upon acquisition than REITs traditionally use of 50-60%. Additionally, due to our small size, we can focus on smaller deals that are not accretive to institutional buyers but where potential risk-adjusted returns are greater.
Regulation
Federal, State and/or Local Regulatory Compliance
We are subject to a variety of federal, state, and/or local statutes, ordinances, rules, and regulations covering the purchase, development, and operation of real estate assets. These regulatory requirements include zoning and land use, worksite safety, traffic, and other matters, such as local rules that may impose restrictive zoning and developmental requirements. We are subject to various licensing, registration, and filing requirements in connection with the development and operation of certain real estate assets. Additionally, state and/or local governments retain certain rights with respect to eminent domain which could enable them to restrict or alter the use of our property. These requirements may lead to increases in our overall costs. The need to comply with these requirements may significantly delay development or purchase of properties or lead us to alter our plans regarding certain real estate assets. Some requirements, on a property-by-property evaluation, may lead to a determination that development of a particular property would not be economically feasible, even if any or all necessary governmental approvals were obtained.
We have all material required operating permits and approvals required for each of our communities.
Environmental Regulatory Compliance
Under various federal, state and/or local laws, ordinances, and regulations, a current or previous owner or operator of a property may be required to investigate and/or clean-up hazardous or toxic substances released at that property. That owner or operator also may be held liable to third parties for bodily injury or property damage (investigation and/or clean-up costs) incurred by those parties in connection with the contamination at that site. These laws often impose liability without regard to whether the owner or operator knew of or otherwise caused the release of the hazardous or toxic substances. In addition, persons who arrange for the disposal or treatment of hazardous substances or other regulated materials also may be liable for the costs of removal or remediation of such substances at a disposal or treatment facility, whether such facility is owned or operated by such persons.
The costs of remediation or removal of hazardous or toxic substances can be substantial, and the presence of contamination, or the failure to remediate contamination discovered, at a property we own or operate may adversely affect our ability to develop, sell, lease, or borrow upon that property. Current and former tenants at a property we own may have, or may have involved, the use of hazardous materials or generated hazardous wastes, and those situations could result in our incurring liabilities to remediate any resulting contamination if the responsible party is unable or unwilling to do so.
In addition, our properties may be exposed to a risk of contamination originating from other sources. While a property owner generally is not responsible for remediating contamination that has migrated on-site from an off-site source, the contaminant’s presence could have adverse effects on our ability to develop, construct on, operate, sell, lease, or borrow upon that property. Certain environmental laws may create a lien on a contaminated site in favor of the government for damages and costs the government may incur to remediate that contamination. Moreover, if contamination is discovered on a property, environmental laws may impose restrictions on the way that property may be used, or how businesses may be operated on that property, thus reducing our ability to maximize our investment in that property. Our properties have been subjected to varying degrees of environmental assessment at various times; however, the identification of new areas of contamination, a change in the extent or known scope of contamination, or changes in environmental regulatory standards and/or cleanup requirements could result in significant costs to us.
Insurance and Property Maintenance and Improvement Policies
Our properties are insured against risks that may cause property damage and business interruption including events such as fire, business interruption, general liability and if applicable, flood. Our insurance policies contain deductible requirements, coverage limits and particular exclusions. It is our policy to maintain adequate insurance coverage on all our properties; and, in the opinion of our management, all our properties are adequately insured. We also obtain title insurance insuring fee title to the properties in an aggregate amount which we believe to be adequate.
It is also our policy to properly maintain, modernize, expand, and make improvements to its properties when required.
Employees
As of December 31, 2021, we had 33 employees, including officers, all but one of whom are full-time employees.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS.
An investment in our Common Stock involves a high degree of risk. You should carefully read and consider all of the risks described below, together with all of the other information contained or referred to in this report, before making an investment decision with respect to our Common Stock or our company. If any of the following events occur, our financial condition, business and results of operations (including cash flows) may be materially adversely affected. In that event, the market price of our Common Stock could decline, and you could lose all or part of your investment.
Risks Related to our Business and Industry
The coronavirus pandemic may cause a material adverse effect on our business.
In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. On March 11, 2020, the World Health Organization declared the outbreak a pandemic, and on March 13, 2020, the United States declared a national emergency.
Some states and cities, including where some our properties are located, have reacted by instituting quarantines, restrictions on travel, mask-mandates, “stay at home” rules and restrictions on the types of businesses that may continue to operate and in what capacity, as well as guidance in response to the pandemic and the need to contain it.
The rules and restrictions put in place have had a negative impact on the economy and business activity and may adversely impact the ability of our tenants, many of whom may be restricted in their ability to work, to pay their rent as and when due. In addition, our property managers may be limited in their ability to properly maintain our properties. Enforcing our rights as landlord against tenants who fail to pay rent or otherwise do not comply with the terms of their leases may not be possible as many jurisdictions, including those where are properties are located, have established rules and/or regulations preventing us from evicting tenants for certain periods in response to the pandemic. If we are unable to enforce our rights as landlords, our business would be materially affected.
If the current pace of the pandemic does not continue to slow and the spread of the virus is not contained, our business operations could be further delayed or interrupted. We expect that government and health authorities may announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs.
The extent to which the pandemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this report, including new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic and the current financial, economic, and capital markets environment present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows.
We may not be able to obtain adequate cash to fund our business.
Our business requires access to adequate cash to finance our operations, distributions, capital expenditures, debt service obligations, development and redevelopment costs and property acquisition costs, if any. We expect to generate the cash to be used for these purposes primarily with operating cash flow, borrowings under secured and unsecured loans, proceeds from sales of strategically identified assets and, when market conditions permit, through the issuance of debt and equity securities from time to time. We may not be able to generate sufficient cash to fund our business, particularly if we are unable to renew leases, lease vacant space or re-lease space as leases expire according to our expectations.
General economic conditions and the concentration of our properties in Georgia, North Carolina, South Carolina, and Tennessee may affect our ability to generate sufficient revenue.
The market and economic conditions in our current markets may significantly affect manufactured housing occupancy or rental rates. Occupancy and rental rates, in turn, may significantly affect our revenues, and if our communities do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, current cash flow and ability to pay or refinance our debt obligations could be adversely affected. As a result of the current geographic concentration of our properties in Georgia, North Carolina, South Carolina, and Tennessee, we are exposed to the risks of downturns in the local economy or other local real estate market conditions that could adversely affect occupancy rates, rental rates, and property values in these markets.
Other factors that may affect general economic conditions or local real estate conditions include:
● the national and local economic climate which may be adversely affected by, among other factors, plant closings, and industry slowdowns;
● local real estate market conditions such as the oversupply of manufactured home sites or a reduction in demand for manufactured home sites in an area;
● the number of repossessed homes in a particular market;
● the lack of an established dealer network;
● the rental market which may limit the extent to which rents may be increased to meet increased expenses without decreasing occupancy rates;
● the safety, convenience and attractiveness of our properties and the neighborhoods where they are located;
● zoning or other regulatory restrictions;
● competition from other available manufactured housing communities and alternative forms of housing (such as apartment buildings and single-family homes);
● our ability to provide adequate management, maintenance and insurance;
● increased operating costs, including insurance premiums, real estate taxes and utilities; and
● the enactment of rent control laws or laws taxing the owners of manufactured homes.
Our income would also be adversely affected if tenants were unable to pay rent or if sites were unable to be rented on favorable terms. If we were unable to promptly renew the leases for a significant number of sites, or if the rental rates upon such renewal were significantly lower than expected rates, then our business and results of operations could be adversely affected. In addition, certain expenditures associated with each property (such as real estate taxes and maintenance costs) generally are not reduced when circumstances cause a reduction in income from the property.
We face risks generally associated with our debt.
We finance a portion of our investments in properties through debt. As of December 31, 2021, our total indebtedness for borrowed money was $58,958,134. We are subject to the risks normally associated with debt financing, including the risk that our cash flow will be insufficient to meet required payments of principal and interest. In addition, debt creates other risks, including:
● failure to repay or refinance existing debt as it matures, which may result in forced disposition of assets on disadvantageous terms;
● refinancing terms less favorable than the terms of existing debt; and
● failure to meet required payments of principal and/or interest.
We face risks related to “balloon payments” and re-financings.
Certain of our mortgages and lines of credit will have significant outstanding principal balances on their maturity dates, commonly known as “balloon payments.” As of December 31, 2021, our total future minimum principal payments were $58,958,133. There can be no assurance that we will be able to refinance the debt on favorable terms or at all. To the extent we cannot refinance debt on favorable terms or at all, we may be forced to dispose of properties on disadvantageous terms or pay higher interest rates, either of which would have an adverse impact on our financial performance and ability to service debt and make distributions.
We may become more highly leveraged, resulting in increased risk of default on our obligations and an increase in debt service requirements that could adversely affect our financial condition and results of operations and our ability to pay distributions.
We have incurred, and may continue to incur, indebtedness in furtherance of our activities. We could become more highly leveraged, resulting in an increased risk of default on our obligations and in an increase in debt service requirements, which could adversely affect our financial condition and results of operations and our ability to pay distributions to stockholders.
Covenants in our credit agreements could limit our flexibility and adversely affect our financial condition.
The terms of our various credit agreements and other indebtedness require us to comply with a number of customary financial and other covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage. These covenants may limit our flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we had satisfied our payment obligations. If we were to default under our credit agreements, our financial condition would be adversely affected.
A change in the United States government policy regarding to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) could impact our financial condition.
Fannie Mae and Freddie Mac are a major source of financing for the manufactured housing real estate sector. We could depend on Fannie Mae and Freddie Mac to finance growth by purchasing or guarantying manufactured housing community loans. In February 2011, the Obama Administration released a report to Congress that included options, among others, to gradually shrink and eventually shut down Fannie Mae and Freddie Mac. We do not know when or if Fannie Mae or Freddie Mac will restrict their support of lending to our real estate sector or to us. A final decision by the government to eliminate Fannie Mae or Freddie Mac or reduce their acquisitions or guarantees of our mortgage loans, may adversely affect interest rates, capital availability and our ability to refinance our existing mortgage obligations as they come due and obtain additional long-term financing for the acquisition of additional communities on favorable terms or at all.
We face risks relating to the property management services that we provide.
There are inherent risks in our providing property management services to the manufactured housing communities on the properties that we own. The more significant of these risks include:
● our possible liability for personal injury or property damage suffered by our employees and third parties, including our tenants, that are not fully covered by our insurance;
● our possible inability to keep our manufactured housing communities at or near full occupancy;
● our possible inability to attract and keep responsible tenants;
● our possible inability to expediently remove “bad” tenants from our communities;
● our possible inability to timely and satisfactorily deal with complaints of our tenants;
● our possible inability to locate, hire and retain qualified property management personnel; and
● our possible inability to adequately control expenses with respect to our properties.
We may not be able to integrate or finance our acquisitions and our acquisitions may not perform as expected.
We acquire and intend to continue to acquire manufactured housing communities on a select basis. Our acquisition activities and their success are subject to the following risks:
● we may be unable to acquire a desired property because of competition from other well capitalized real estate investors, including both publicly traded REITs and institutional investment funds;
● even if we enter into an acquisition agreement for a property, it is usually subject to customary conditions for closing, including completion of due diligence investigations to our satisfaction, which may not be satisfied;
● even if we are able to acquire a desired property, competition from other real estate investors may significantly increase the purchase price;
● we may be unable to finance acquisitions on favorable terms;
● acquired properties may fail to perform as expected;
● acquired properties may be located in new markets where we face risks associated with a lack of market knowledge or understanding of the local economy, lack of business relationships in the area and unfamiliarity with local governmental and permitting procedures; and
● we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations.
If any of the above were to occur, our business and results of operations could be adversely affected.
In addition, we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were to be asserted against us based on ownership of those properties, we might have to pay substantial sums to settle it, which could adversely affect our cash flow.
New acquisitions may fail to perform as expected and the intended benefits may not be realized, which could have a negative impact on our operations.
We intend to continue to acquire manufactured housing communities. However, newly acquired properties may fail to perform as expected and could pose risks for our ongoing operations including the following:
● integration may prove costly or time-consuming and may divert management’s attention from the management of daily operations;
● difficulties or an inability to access capital or increases in financing costs;
● we may incur costs and expenses associated with any undisclosed or potential liabilities;
● unforeseen difficulties may arise in integrating an acquisition into our portfolio;
● expected synergies may not materialize; and
● we may acquire properties in new markets where we face risks associated with lack of market knowledge such as understanding of the local economy, the local governmental and/or local permit procedures.
As a result of the foregoing, we may not accurately estimate or identify all costs necessary to bring an acquired manufactured housing communities up to standards established for our intended market position. As such, we cannot provide assurance that any acquisition that we make will be accretive to us in the near term or at all. Furthermore, if we fail to realize the intended benefits of an acquisition, it may have a negative impact on our operations.
Development and expansion properties may fail to perform as expected and the intended benefits may not be realized, which could have a negative impact on our operations.
We may periodically consider development and expansion activities, which are subject to risks such as construction costs exceeding original estimates and construction and lease-up delays resulting in increased construction costs and lower than expected revenues. Additionally, there can be no assurance that these properties will operate better as a result of development or expansion activities due to various factors, including lower than anticipated occupancy and rental rates causing a property to be unprofitable or less profitable than originally estimated.
We regularly expend capital to maintain, repair and renovate our properties, which could negatively impact our financial condition and results of operations.
We may, or we may be required to, from time to time make significant capital expenditures to maintain or enhance the competitiveness of our manufactured housing communities. There can be no assurances that any such expenditures would result in higher occupancy or higher rental rates.
We may be unable to sell properties when appropriate because real estate investments are illiquid.
Real estate investments generally cannot be sold quickly and, therefore, will tend to limit our ability to vary our property portfolio promptly in response to changes in economic or other conditions. The inability to respond promptly to changes in the performance of our property portfolio could adversely affect our financial condition and ability to service our debt and make distributions to our stockholders.
We may be unable to compete with our larger competitors, which may in turn adversely affect our profitability.
The real estate business is highly competitive. We compete for manufactured housing community investments with numerous other real estate entities, such as individuals, corporations, REITs, and other enterprises engaged in real estate activities. In many cases, the competing concerns may be larger and better financed than we are, making it difficult for us to secure new manufactured housing community investments. Competition among private and institutional purchasers of manufactured housing community investments has led to increases in the purchase prices paid for manufactured housing communities and consequent higher fixed costs. To the extent we are unable to effectively compete in the marketplace, our business may be adversely affected.
Actions by our competitors may decrease or prevent increases in the occupancy and rental rates of our properties which could adversely affect our business.
We compete with other owners and operators of manufactured housing community properties, some of whom own properties similar to ours in the same submarkets in which our properties are located. The number of competitive manufactured housing community properties in a particular area could have a material adverse effect on our ability to lease sites and increase rents charged at our properties or at any newly acquired properties. In addition, other forms of multi-family residential properties, such as private and federally funded or assisted multi-family housing projects and single-family housing, provide housing alternatives to potential tenants of manufactured housing communities. If our competitors offer housing at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose potential tenants, and we may be pressured to reduce our rental rates below those we currently charge in order to retain tenants when our tenants’ leases expire. As a result, our financial condition, cash flow, cash available for distribution, and ability to satisfy our debt service obligations could be materially adversely affected.
Losses in excess of our insurance coverage or uninsured losses could adversely affect our cash flow.
We generally maintain insurance policies related to our business, including casualty, general liability and other policies covering business operations, employees and assets. However, we may be required to bear all losses that are not adequately covered by insurance. In addition, there are certain losses that are not generally insured because it is not economically feasible to insure against them, including losses due to riots or acts of war. If an uninsured loss or a loss in excess of insured limits occurs with respect to one or more of our properties, then we could lose the capital we invested in the properties, as well as the anticipated profits and cash flow from the properties and, in the case of debt that carries recourse to us, we would remain obligated for any mortgage debt or other financial obligations related to the properties. Although we believe that our insurance programs are adequate, no assurance can be given that we will not incur losses in excess of its insurance coverage, or that we will be able to obtain insurance in the future at acceptable levels and reasonable cost.
Costs associated with taxes and regulatory compliance may reduce our revenue.
We are subject to significant regulation that inhibits our activities and may increase our costs. Local zoning and use laws, environmental statutes and other governmental requirements may restrict expansion, rehabilitation and reconstruction activities. These regulations may prevent us from taking advantage of economic opportunities. Legislation such as the Americans with Disabilities Act may require us to modify our properties at a substantial cost and noncompliance could result in the imposition of fines or an award of damages to private litigants. Future legislation may impose additional requirements. We cannot predict what requirements may be enacted or amended or what costs we will incur to comply with such requirements. Costs resulting from changes in real estate laws, income taxes, service or other taxes may adversely affect our funds from operations and our ability to pay or refinance our debt. Similarly, changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions may result in significant unanticipated expenditures, which would adversely affect our business and results of operations.
Rent control legislation may harm our ability to increase rents.
State and local rent control laws in certain jurisdictions may limit our ability to increase rents and to recover increases in operating expenses and the costs of capital improvements. We may purchase additional properties in markets that are either subject to rent control or in which rent-limiting legislation exists or may be enacted.
Environmental liabilities could affect our profitability.
Under various federal, state and local laws, as well as local ordinances and regulations, an owner or operator of real estate is liable for the costs of removal or remediation of certain hazardous substances at, on, under or in such property, as well as certain other potential costs relating to hazardous or toxic substances. Such laws often impose such liability without regard to whether the owner knew of, or was responsible for, the presence of such hazardous substances. A conveyance of the property, therefore, does not relieve the owner or operator from liability. As a current or former owner and operator of real estate, we may be required by law to investigate and clean up hazardous substances released at or from the properties we currently own or operate or have in the past owned or operated. We may also be liable to the government or to third parties for property damage, investigation costs and cleanup costs. In addition, some environmental laws create a lien on the contaminated site in favor of the government for damages and costs the government incurs in connection with the contamination. Contamination may adversely affect our ability to sell or lease real estate or to borrow using the real estate as collateral. Persons who arrange for the disposal or treatment of hazardous substances also may be liable for the costs of removal or remediation of such substances at a disposal or treatment facility owned or operated by another person. In addition, certain environmental laws impose liability for the management and disposal of asbestos-containing materials and for the release of such materials into the air. These laws may provide for third parties to seek recovery from owners or operators of real properties for personal injury associated with asbestos-containing materials. In connection with the ownership, operation, management, and development of real properties, we may be considered an owner or operator of such properties and, therefore, are potentially liable for removal or remediation costs, and also may be liable for governmental fines and injuries to persons and property. When we arrange for the treatment or disposal of hazardous substances at landfills or other facilities owned by other persons, we may be liable for the removal or remediation costs at such facilities. We are not aware of any environmental liabilities relating to our investment properties that would have a material adverse effect on our business, assets, or results of operations. However, we cannot assure you that environmental liabilities will not arise in the future and that such liabilities will not have a material adverse effect on our business, assets or results of operation.
Of the forty-three manufactured housing communities we currently operate, twelve are on well systems and twenty-five are on septic systems. At these locations, we are subject to compliance with monthly, quarterly and yearly testing for contaminants as outlined by each state’s Department of Environmental Protection Agencies. Currently, we are not subject to radon or asbestos monitoring requirements.
Additionally, in connection with the management of the properties or upon acquisition or financing of a property, we authorize the preparation of Phase I or similar environmental reports (which involves general inspections without soil sampling or ground water analysis) completed by independent environmental consultants. Based on such environmental reports and our ongoing review of its properties, as of the date of this report, we are not aware of any environmental condition with respect to any of our properties that we believe would be reasonably likely to have a material adverse effect on our financial condition or results of operations. These reports, however, cannot reflect conditions arising after the studies were completed, and no assurances can be given that existing environmental studies reveal all environmental liabilities, that any prior owner or operator of a property or neighboring owner or operator did not create any material environmental condition not known to us, or that a material environmental condition does not otherwise exist with respect to any one property or more than one property.
Our failure or the failure of third-party service providers to protect our sites, networks and systems against security breaches, or otherwise to protect our confidential information, could damage our reputation and brand and substantially harm our business and operating results.
We collect, maintain, transmit and store data about our tenants, employees, contractors, suppliers, vendors and others, including credit card information and personally identifiable information, as well as other confidential and proprietary information. We also employ third-party service providers that store, process and transmit certain proprietary, personal and confidential information on our behalf. We rely on encryption and authentication technology licensed from third parties in an effort to securely transmit, encrypt, anonymize or pseudonymize certain confidential and sensitive information, including credit card numbers. Advances in computer capabilities, new technological discoveries or other developments may result in the whole or partial failure of this technology to protect transaction and personal data or other confidential and sensitive information from being breached or compromised. Our security measures, and those of our third-party service providers, may not detect or prevent all attempts to hack our systems, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, ransom-ware, social engineering, security breaches or other attacks and similar disruptions that may jeopardize the security of information stored in or transmitted by our sites, networks and systems or that we or our third-party service providers otherwise maintain, including payment card systems and human resources management platforms. We and our service providers may not anticipate, discover or prevent all types of attacks until after they have already been launched, and techniques used to obtain unauthorized access to or sabotage systems change frequently and may not be known until launched against us or our third-party service providers. In addition, security breaches can also occur as a result of non-technical issues, including intentional or inadvertent breaches by our employees or by persons with whom we have commercial relationships.
Breaches of our security measures or those of our third-party service providers or cyber security incidents could result in unauthorized access to our sites, networks and systems; unauthorized access to and misappropriation of personal information, including tenants’ and employees’ personally identifiable information, or other confidential or proprietary information of ourselves or third parties; limited or terminated access to certain payment methods or fines or higher transaction fees to use such methods; viruses, worms, spyware or other malware being served from our sites, networks or systems; deletion or modification of content or the display of unauthorized content on our sites; interruption, disruption or malfunction of operations; costs relating to breach remediation, deployment or training of additional personnel and protection technologies, responses to governmental investigations and media inquiries and coverage; engagement of third-party experts and consultants; litigation, regulatory action and other potential liabilities. If any of these breaches of security occur, our reputation and brand could be damaged, our business may suffer, we could be required to expend significant capital and other resources to alleviate problems caused by such breaches and we could be exposed to a risk of loss, litigation or regulatory action and possible liability. In addition, any party who is able to illicitly obtain a tenant’s password could access that tenant’s personal information. Any compromise or breach of our security measures, or those of our third-party service providers, could violate applicable privacy, data security and other laws, and cause significant legal and financial exposure, adverse publicity and a loss of confidence in our security measures, which could have a material adverse effect on our business.
We are subject to risks arising from litigation.
We may become involved in litigation. Litigation can be costly, and the results of litigation are often difficult to predict. We may not have adequate insurance coverage or contractual protection to cover costs and liability in the event we are sued, and to the extent we resort to litigation to enforce our rights, we may incur significant costs and ultimately be unsuccessful or unable to recover amounts we believe are owed to us. We may have little or no control of the timing of litigation, which presents challenges to our strategic planning.
We are dependent on key personnel.
Our executive and other senior officers have a significant role in our success. Our ability to retain our management group or to attract suitable replacements should any members of the management group leave depends on the competitive nature of the employment market. The loss of services from key members of the management group or a limitation in their availability could adversely affect our financial condition and cash flow. Further, such a loss could be negatively perceived in the capital markets.
Our management is inexperienced in running a public entity.
Except for Michael Z. Anise, our president, chief financial officer and a director, our management does not have prior experience with the operation and management of a public entity. As a result, they will be learning as they proceed and may be forced to rely more heavily on the expertise of outside professionals than they might otherwise, which in turn could lead to higher legal and accounting costs and possible securities law compliance issues.
We have one stockholder that can single-handedly control our company.
Our largest stockholder is Gvest Real Estate Capital LLC, an entity whose sole owner is Raymond M. Gee, our chairman and chief executive officer. At present, Mr. Gee beneficially owns approximately 68.69% of our total issued and outstanding Common Stock. Under Nevada law, this ownership position provides Mr. Gee with the almost unrestricted ability to control the business, management and strategic direction of our company. If Mr. Gee chooses to exercise this control, his decisions regarding our company could be detrimental to, or not in the best interests of our company and its other stockholders.
We have identified material weaknesses in our internal control over financial reporting. If we fail to develop or maintain an effective system of internal controls, we may not be able to accurately report our financial results and prevent fraud. As a result, current and potential stockholders could lose confidence in our financial statements, which would harm the trading price of our Common Stock.
Companies that file reports with the Securities and Exchange Commission, or the SEC, including us, are subject to the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or SOX 404. SOX 404 requires management to establish and maintain a system of internal control over financial reporting and annual reports on Form 10-K filed under the Exchange Act to contain a report from management assessing the effectiveness of a company’s internal control over financial reporting. Separately, under SOX 404, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, public companies that are large accelerated filers or accelerated filers must include in their annual reports on Form 10-K an attestation report of their regular auditors attesting to and reporting on management’s assessment of internal control over financial reporting. Non-accelerated filers and smaller reporting companies, like us, are not required to include an attestation report of their auditors in annual reports.
A report of our management is included under Item 9A. “Controls and Procedures.” We are a smaller reporting company and, consequently, are not required to include an attestation report of our auditor in our annual report. However, if and when we become subject to the auditor attestation requirements under SOX 404, we can provide no assurance that we will receive a positive attestation from our independent auditors.
During its evaluation of the effectiveness of internal control over financial reporting as of December 31, 2021, management identified material weaknesses. These material weaknesses were associated with (i) our lack of proper segregation of duties due to the limited number of employees within the accounting department and (ii) our lack of effective closing procedures. We are undertaking remedial measures, which measures will take time to implement and test, to address these material weaknesses. There can be no assurance that such measures will be sufficient to remedy the material weaknesses identified or that additional material weaknesses or other control or significant deficiencies will not be identified in the future. If we continue to experience material weaknesses in our internal controls or fail to maintain or implement required new or improved controls, such circumstances could cause us to fail to meet our periodic reporting obligations or result in material misstatements in our financial statements, or adversely affect the results of periodic management evaluations and, if required, annual auditor attestation reports. Each of the foregoing results could cause investors to lose confidence in our reported financial information and lead to a decline in our stock price.
Risks Related Ownership of Our Common Stock
Our Common Stock is eligible for quotation on the Pink Market but few quotations have been made and limited trading has occurred in our Common Stock. Due to the lack of an active trading market for our securities, you may have difficulty selling any shares you purchase, which could result in the loss of your investment.
Our Common Stock is eligible for quotation on the Pink Market operated by OTC Markets Group Inc. The Pink Market is a regulated quotation service that displays real-time quotes, last sale prices and volume information in over-the-counter securities. The Pink Market is not an issuer listing service, market or exchange. The requirements for quotation on the Pink Market are considerably lower and less regulated than those of an exchange. Because of this, it is possible that fewer brokers or dealers will be interested in making a market in our Common Stock because the market for such securities is more limited, the stocks are more volatile, and the risk to investors is greater, which may impact the liquidity of our Common Stock. Even if an active market begins to develop in our Common Stock, the quotation of our Common Stock on the Pink Market may result in a less liquid market available for existing and potential stockholders to trade Common Stock, could depress the trading price of our Common Stock and could have a long-term adverse impact on our ability to raise capital in the future. If an active market is never developed for our Common Stock, it will be difficult or impossible for you to sell any Common Stock you purchase.
We cannot predict the extent to which an active public trading market for our Common Stock will develop or be sustained. If an active public trading market does not develop or cannot be sustained, you may be unable to liquidate your investment in our Common Stock.
At present, there is minimal public trading in our Common Stock. We cannot predict the extent to which an active public market for our Common Stock will develop or be sustained due to a number of factors, including the fact that we are a small company that is relatively unknown to stock analysts, stock brokers, institutional investors, and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven company such as ours or purchase or recommend the purchase of our shares of Common Stock until such time as we became more seasoned and viable. Consequently, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on stock price. We cannot give you any assurance that an active public trading market for our Common Stock will develop or be sustained. If such a market cannot be sustained, you may be unable to liquidate your investment in our Common Stock.
Our Common Stock may be subject to significant price volatility which may have an adverse effect on your ability to liquidate your investment in our Common Stock.
The market for our Common Stock may be characterized by significant price volatility when compared to seasoned issuers, and we expect that our stock price will be more volatile than a seasoned issuer for the indefinite future. The potential volatility in our stock price is attributable to a number of factors. First, our shares of Common Stock may be sporadically and/or thinly traded. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our stockholders may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously if a large number of our shares of Common Stock are sold on the market without commensurate demand, as compared to a seasoned issuer that could better absorb those sales without adverse impact on its stock price. Secondly, an investment in us is a speculative or “risky” investment due to our lack of meaningful profits to date and uncertainty of future profits. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer.
We may be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our Common Stock.
The SEC has adopted regulations which generally define so-called “penny stocks” to be an equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. Our Common Stock is a “penny stock” and is subject to Rule 15g-9 under the Exchange Act. This rule imposes additional sales practice requirements on broker-dealers that sell such securities to persons other than established customers and “accredited investors” (generally, individuals with a net worth in excess of $1,000,000 or annual incomes exceeding $200,000, or $300,000 together with their spouses). For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser and have received the purchaser’s written consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our securities and may affect the ability of purchasers to sell any of our securities in the secondary market, thus possibly making it more difficult for us to raise additional capital.
For any transaction involving a penny stock, unless exempt, the rules require delivery, prior to any transaction in penny stock, of a disclosure schedule prepared by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.
There can be no assurance that our Common stock will qualify for exemption from this rule. In any event, even if our Common Stock were exempt from this rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.
We have never paid cash dividends on our Common Stock and do not intend to pay dividends for the foreseeable future.
We have paid no cash dividends on our Common Stock to date, and we do not anticipate paying cash dividends on our Common Stock in the near term. For the foreseeable future, we intend to retain any earnings to finance the development and expansion of our business, and we do not anticipate paying any cash dividends on our Common Stock. Accordingly, investors must be prepared to rely on sales of their Common Stock after price appreciation to earn an investment return, which may never occur. Investors seeking cash dividends should not purchase our Common Stock. Any determination to pay dividends in the future will be made at the discretion of our board of directors and will depend on our results of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our board deems relevant.
Our Preferred Stock have liquidation preferences senior to our Common Stock.
Our Series A Cumulative Convertible Preferred Stock, which we refer to as our Series A Preferred Stock, Series B Cumulative Redeemable Preferred Stock, which we refer to as our Series B Preferred Stock, and Series C Cumulative Redeemable Preferred Stock, which we refer to as our Series C Preferred Stock, have liquidation preferences that get paid prior to any payment on our Common Stock. As a result, if we were to dissolve, liquidate, merge with another company or sell our assets, the holders of our Series A Preferred Stock, Series B Preferred Stock, and Series C Preferred Stock would have the right to receive up to approximately $24,185,165 as of December 31, 2021, plus any unpaid dividends, before any amount is paid to the holders of our Common Stock. The payment of the liquidation preferences could result in common stockholders not receiving any consideration if we were to liquidate, dissolve or wind up, either voluntarily or involuntarily. The existence of the liquidation preferences may also reduce the value of our Common Stock, make it harder for us to sell shares of Common Stock in offerings in the future, or prevent or delay a change of control.
We may issue additional debt and equity securities that are senior to our Common Stock as to distributions and in liquidation, which could materially adversely affect the value of the Common Stock.
In the future, we may attempt to increase our capital resources by entering into additional debt or debt-like financing that is secured by all or up to all of our assets, or issuing debt or equity securities, which could include issuances of commercial paper, medium-term notes, senior notes, subordinated notes or shares. In the event of our liquidation, our lenders and holders of our debt securities would receive a distribution of our available assets before distributions to our stockholders. Any additional preferred securities, if issued by our company, may have a preference with respect to distributions and upon liquidation that is senior to the preference of our Common Stock, which could further limit our ability to make distributions to our stockholders. Because our decision to incur debt and issue securities in our future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings and debt financing.
Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future. Thus, you will bear the risk of our future offerings reducing the value of your Common Stock. In addition, we can change our leverage strategy from time to time without approval of holders of our Common Stock, which could materially adversely affect the value of our Common Stock.
Our articles of incorporation, bylaws and Nevada law have anti-takeover provisions that could discourage, delay or prevent a change in control, which may cause our stock price to decline.
Our articles of incorporation, bylaws and Nevada law contain provisions which could make it more difficult for a third party to acquire us, even if closing such a transaction would be beneficial to our stockholders. We are currently authorized to issue up to 5,000,000 shares of “blank check” Preferred Stock. This Preferred Stock may be issued in one or more series, the terms of which may be determined at the time of issuance by our board of directors without further action by stockholders. The terms of any series of Preferred Stock may include voting rights (including the right to vote as a series on particular matters), preferences as to dividend, liquidation, conversion and redemption rights and sinking fund provisions. The issuance of any Preferred Stock could materially adversely affect the rights of the holders of our Common Stock, and therefore, reduce the value of our Common Stock. For example, specific rights granted to future holders of Preferred Stock could be used to restrict our ability to merge with, or sell our assets to, a third party and thereby preserve control by current management.
Provisions of our articles of incorporation, bylaws and Nevada law also could have the effect of discouraging potential acquisition proposals or making a tender offer or delaying or preventing a change in control, including changes a stockholder might consider favorable. Such provisions may also prevent or frustrate attempts by our stockholders to replace or remove our management. Specifically, our articles of incorporation, bylaws and Nevada law, among other things, provide our board of directors with the ability to alter our bylaws without stockholder approval, and provide that vacancies on our board of directors may be filled by a majority of directors in office, although less than a quorum.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS.
Not applicable.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES.
As of December 31, 2021, we owned the following manufactured housing properties.
● Pecan Grove - a 82 lot, all-age community situated on 10.71 acres and located in Charlotte, North Carolina. The average occupancy was 100%.
● Azalea Hills - a 41 lot, all-age community situated on 7.46 acres and located in Gastonia, North Carolina, a suburb of Charlotte, North Carolina. The average occupancy was 97%.
● Holly Faye - a 35 lot all-age community situated on 8.01 acres and located in Gastonia, North Carolina, a suburb of Charlotte North Carolina. The average occupancy was 99%.
● Lakeview - a 84 lot all-age community situated on 17.26 acres in Spartanburg, South Carolina. The average occupancy was 97%.
● Chatham Pines - a 49 lot all-age community situated on 23.57 acres and located in Chapel Hill, North Carolina. The average occupancy was 100%.
● Maple Hills - a 74 lot all-age community situated on 21.20 acres and located in Mills River, North Carolina, which is part of the Asheville, North Carolina, Metropolitan Statistical Area. The average occupancy was 93%
● Hunt Club Forest - a 79 lot all-age community situated on 13.02 acres and located in the Columbia, South Carolina metro area. The average occupancy was 99%.
● B&D - a 95 lot all-age community situated on 17.75 acres and located in Chester, South Carolina. The average occupancy was 89%.
● Crestview - a 113 lot all age community situated on 17.1 acres and located in the Asheville, North Carolina, Metropolitan Statistical Area. The average occupancy was 95%.
● Springlake - three all-age communities with 224 lots situated on 72.7 acres and located in Warner Robins, Georgia. The average occupancy was 88%.
● ARC - five all-age communities with 180 lots situated on 39.34 acres and located in Lexington, South Carolina. The average occupancy was 88%.
● Countryside - a 110 lot all-age community situated on 35 acres and located in Lancaster, North Carolina. The average occupancy was 90%.
● Evergreen - a 65 lot all-age community situated on 28.4 acres and located in Dandridge, Tennessee. The average occupancy was 97%
● Golden Isles - a 113 lots all-age community situated on 16.76 acres and located in Brunswick, Georgia. The average occupancy was 75%.
● Anderson - ten all-age communities with 178 lots situated on 50 acres and located in Anderson, South Carolina. The average occupancy was 95%.
● Capital View - a 32 lot all-age community situated on 9.84 acres and located in Gaston, South Carolina. The average occupancy was 97%.
● Hidden Oaks - a 44 lot all-age community situated on 8.96 acres and located in West Columbia, South Carolina. The average occupancy was 93%.
● North Raleigh - five all-age communities with 137 lots situated on 135 acres and located in Franklin and Granville Counties, North Carolina. The average occupancy was 93%.
● Dixie - a 37 lot all-age community situated on 3.43 acres and located in Kings Mountain, North Carolina. The average occupancy was 91%.
● Driftwood - a 26 lot all-age community situated on 34.92 acres and located in Charlotte, North Carolina. The average occupancy was 88%.
● Meadowbrook - a 94 lot all-age community situated on 40.1 acres and located in York, South Carolina. The average occupancy was 100%.
● Morganton - a 61 lot all-age community situated on 31.29 acres and located in Morganton, North Carolina. The average occupancy was 100%.
● Asheboro - a 84 lot all-age community situated on 45.4 acres and located in Asheboro, North Carolina. The average occupancy was 95%.
The average occupancy rates above represent an average of total monthly occupancy rates from January 1, 2021 (or date of acquisition) through December 31, 2021. For the year ended December 31, 2021, our total portfolio weighted average occupancy rate was 93%. We do not include vacant, undeveloped lots in our average occupancy rate calculations above.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS.
From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information
Our Common Stock is eligible for quotation on the Pink Market under the symbol “MHPC.” The following table sets forth, for the periods indicated, the high and low closing prices of our Common Stock. These prices reflect inter-dealer prices, without retain mark-up or commission, and may not represent actual transactions.
Closing Prices
High Low
Fiscal Year Ended December 31, 2020
1st Quarter $ 2.71 $ 0.40
2nd Quarter 3.15 0.20
3rd Quarter 6.00 1.75
4th Quarter 5.00 2.50
Fiscal Year Ended December 31, 2021
1st Quarter $ 3.00 $ 1.99
2nd Quarter 3.00 2.25
3rd Quarter 6.00 0.84
4th Quarter 3.90 2.80
Approximate Number of Holders of Our Common Stock
As of March 29, 2022, there were approximately 24 registered holders of our Common Stock. This number excludes the shares owned by stockholders holding shares under nominee security position listings.
Dividend Policy
Dividends on our Series A Preferred Stock are cumulative and payable monthly in arrears to all holders of record on the applicable record date. Holders of our Series A Preferred Stock are entitled to receive cumulative dividends in the amount of $0.017 per share each month, which is equivalent to the rate of 8% of the $2.50 liquidation preference per share. Dividends on shares of our Series A Preferred Stock will continue to accrue even if any of our agreements prohibit the current payment of dividends, or we do not have earnings.
Dividends on our Series B Preferred Stock are cumulative and payable monthly in arrears to all holders of record on the applicable record date. Holders of our Series B Preferred Stock are entitled to receive cumulative dividends in the amount of $0.067 per share each month, which is equivalent to the annual rate of 8% of the $10.00 liquidation preference per share; provided that upon an event of default (generally defined as our failure to pay dividends when due or to redeem shares when requested by a holder), such amount shall be increased to $0.083 per month, which is equivalent to the annual rate of 10% of the $10.00 liquidation preference per share. Dividends on shares of our Series B Preferred Stock will continue to accrue even if any of our agreements prohibit the current payment of dividends or we do not have earnings.
Dividends on our Series C Preferred Stock are cumulative and payable monthly in arrears to all holders of record on the applicable record date. Holders of our Series C Preferred Stock are entitled to receive cumulative dividends in the amount of $5.83 per share each month, which is equivalent to the annual rate of 7% of the $1,000.00 liquidation preference per share. Dividends on shares of our Series C Preferred Stock will continue to accrue even if any of our agreements prohibit the current payment of dividends or we do not have earnings.
We have never declared dividends or paid cash dividends on our Common Stock. Our board of directors will make any future decisions regarding dividends. We currently intend to retain and use any future earnings for the development and expansion of our business and do not anticipate paying any cash dividends in the near future. Our board of directors has complete discretion on whether to pay dividends. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant. See also Item 1.A. “Risk Factors-Risks Related to Ownership of Our Common Stock-We have never paid cash dividends on our Common Stock and do not intend to pay dividends for the foreseeable future.”
Securities Authorized for Issuance under Equity Compensation Plans
See Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”
Recent Sales of Unregistered Securities
We have not sold any securities during the 2021 fiscal year that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K that was filed during the 2021 fiscal year.
Purchases of Equity Securities
We did not repurchase any shares of our Common Stock during fiscal year 2021.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. [RESERVED]

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following management’s discussion and analysis of financial condition and results of operations provides information that management believes is relevant to an assessment and understanding of our plans and financial condition. The following selected financial information is derived from our historical financial statements should be read in conjunction with such financial statements and notes thereto set forth elsewhere herein and the “Special Note Regarding Forward Looking Statements” explanation included in the “Introductory Notes” above.
Overview
We are a self-administered, self-managed, vertically integrated owner and operator of manufactured housing communities. We earn income from leasing manufactured home sites to tenants who own their own manufactured home and the rental of company-owned manufactured homes to residents of the communities.
We own and operate forty-three manufactured housing communities containing approximately 2,037 developed sites and 1,045 company-owned manufactured homes. The communities are located in Georgia, North Carolina, South Carolina and Tennessee. See Item 2. “Properties” for a description of these manufactured housing communities.
Recent Developments
Additional Closings of Regulation A Offering
Subsequent to December 31, 2021, the Company sold an aggregate of 4,293 shares of Series C Preferred Stock in additional closings of the Regulation A offering described below for total gross proceeds of $4,289,440. After deducting a placement fee, we received net proceeds of approximately $3,996,130.
Warrenville Purchase and Sale Agreement
On November 11, 2021, MHP Pursuits LLC entered into a purchase and sale agreement with R&S Properties, LLC for the purchase of a manufactured housing community located in Warrenville, South Carolina consisting of 85 lots and 61 homes on approximately 45 acres for a total purchase price of $3,050,000. On March 9, 2022, the agreement was amended to extend the closing date to March 31, 2022. As of the date of this report, acquisition of this community has not yet occurred.
Spaulding Purchase and Sale Agreement
On January 19, 2022, MHP Pursuits LLC entered into a purchase and sale agreement with Spaulding Enterprises, Inc. for the purchase of a manufactured housing community located in Brunswick, Georgia consisting of 72 sites and 28 homes on approximately 17 acres for a total purchase price of $2,000,000. As of the date of this report, acquisition of this community has not yet occurred.
Sunnyland Acquisition
On November 3, 2021, MHP Pursuits LLC entered into a purchase and sale agreement with Billie Jean Faust for the purchase of a manufactured housing community located in Byron, Georgia consisting of 73 sites on approximately 18.57 acres and an adjacent parcel of undeveloped land containing 15.09 acres for a total purchase price of $2,200,000. On January 27, 2022, MHP Pursuits assigned its rights and obligations in the purchase agreement to Sunnyland MHP LLC and Gvest Sunnyland Homes LLC pursuant to an assignment of purchase and sale agreement. On January 31, 2022, closing of the acquisition was completed and Sunnyland MHP LLC purchased the land and land improvements, and Gvest Sunnyland Homes LLC purchased the buildings.
In connection with the closing of the acquistion, on January 31, 2022, Sunnyland MHP LLC entered into a loan agreement with Vanderbilt Mortgage and Finance, Inc. for a loan in the principal amount of $1,760,000 and issued a promissory note to the lender for the same amount.
Interest on the disbursed and unpaid principal balance accrues as follows: (a) from the date funds are first disbursed at a rate of 5.37% per annum, interest only for the first thirty-six months, and (b) on February 10, 2025, interest on the disbursed and unpaid principal balance accrues at a rate 5.21% per annum until maturity. Interest is calculated on the basis of a 360-day year and the actual number of calendar days elapsed. Payments began on March 10, 2022 and continue the 10th of every month until maturity on February 10, 2027. Sunnyland MHP LLC may prepay the note in part or in full at any time if it pays a prepayment premium calculated in accordance with the loan agreement.
The note is secured by a first priority security interest in the property and is guaranteed by Raymond M. Gee. The loan agreement and note contain customary financial and other covenants and events of default for a loan of its type.
Clyde Purchase and Sale Agreement
On February 10, 2022, MHP Pursuits LLC entered into a purchase and sale agreement with Harold and Brenda Allen for the purchase of a manufactured housing community located in Clyde, North Carolina, a part of the Asheville Metropolitan Statistical Area, consisting of 51 sites and homes on approximately 9 acres for a total purchase price of $3,050,000. As of the date of this report, acquisition of this community has not yet occurred.
Solid Rock Purchase and Sale Agreement
On February 25, 2022, MHP Pursuits LLC entered into a purchase and sale agreement with K10 Enterprises LLC for the purchase of a manufactured housing community located in Leesville, South Carolina, consisting of 39 sites and homes on approximately 11 acres for a total purchase price of $1,700,000. As of the date of this report, acquisition of this community has not yet occurred.
Charlotte 3 Park Note Repayment
On February 28, 2022, our company borrowed $700,000 from Gvest Real Estate Capital, LLC, increasing the outstanding balance on the revolving promissory note described below. On March 1, 2022, proceeds from the revolving promissory note were used to repay the Charlotte 3 Park MHP LLC $1,500,000 note payable upon its maturity.
Impact of Coronavirus Pandemic
In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. On March 11, 2020, the World Health Organization declared the outbreak a pandemic, and on March 13, 2020, the United States declared a national emergency.
Most states and cities, including where our properties are located, have reacted by instituting quarantines, restrictions on travel, “stay at home” rules and restrictions on the types of businesses that may continue to operate, as well as guidance in response to the pandemic and the need to contain it.
The rules and restrictions put in place have had a negative impact on the economy and business activity and may adversely impact the ability of our tenants, many of whom may be restricted in their ability to work, to pay their rent as and when due. In addition, our property managers may be limited in their ability to properly maintain our properties. Enforcing our rights as landlord against tenants who fail to pay rent or otherwise do not comply with the terms of their leases may not be possible as many jurisdictions, including those where are properties are located, have established rules and/or regulations preventing us from evicting tenants for certain periods in response to the pandemic. If we are unable to enforce our rights as landlords, our business would be materially affected.
If the current pace of the pandemic does not continue to slow and the spread of the virus is not contained, our business operations could be further delayed or interrupted. We expect that government and health authorities may announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs.
The extent to which the pandemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this report, including new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic and the current financial, economic and capital markets environment present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows. See also Item 1A. “Risk Factors” above.
Results of Operations
The following table sets forth key components of our results of operations during the years ended December 31, 2021 and 2020.
Year Ended December 31, Increase (Decrease)
Amount Percent
Revenue
(As Revised)
Rental and related income $ 8,328,294 $ 6,380,515 $ 1,947,779 30.53 %
Homes sales 33,983 - 33,983 100.00 %
Total revenues 8,362,277 6,380,515 1,981,762 31.06 %
Community operating expenses
Repair and maintenance 529,899 390,140 139,759 35.82 %
Real estate taxes 463,148 315,061 148,087 47.00 %
Utilities 691,830 571,182 120,648 21.12 %
Insurance 125,159 158,672 (33,513 ) (21.12 )%
General and administrative expense 821,234 198,425 622,809 313.88 %
Total community operating expenses 2,631,270 1,633,480 997,790 61.08 %
Corporate payroll and overhead 3,013,810 1,581,807 1,432,003 90.53 %
Depreciation and amortization expense 2,060,882 1,652,509 408,373 24.71 %
Interest expense 2,243,876 1,961,843 282,033 14.38 %
Refinancing costs 110,691 464,568 (353,877 ) (76.17 )%
Total expenses 10,060,529 7,294,207 2,766,322 37.92 %
Other income 139,300 - 139,300 100.00 %
Gain on sale of property - 761,978 (761,978 ) (100.00 )%
Net loss $ (1,558,952 ) $ (151,714 ) (1,407,238 ) 927.56 %
Net loss attributable to non-controlling interest
Variable interest entity share of net loss (460,609 ) 451,876 (912,485 ) (201.93 )%
Net income (loss) attributable to our company (1,098,343 ) (603,590 ) (494,753 ) 81.97 %
Preferred stock dividends and put option value accretion 2,175,472 1,850,860 324,612 17.54 %
Net loss attributable to common shareholders $ (3,273,815 ) $ (2,454,450 ) $ (819,365 ) $ 33.38 %
Revenues. For the year ended December 31, 2021, we earned total revenues of $8,362,277, as compared to $6,380,515 for the year ended December 31, 2020, an increase of $1,981,762, or 31.06%. The increase was primarily due to $1,308,447 of rental income from the acquisition of twenty-four manufactured housing communities during 2021 and a complete year of rental income totaling $241,099 related to two properties acquired during the first quarter of 2020. The remaining increase was due to an average 2% increase in occupancy along with rental rate increases.
Community Operating Expenses. For the year ended December 31, 2021, we incurred total community operating expenses of $2,631,270, as compared to $1,633,480 for the year ended December 31, 2020, an increase of $997,790, or 61.08%. The increase in community operating expenses was primarily due to additional expenses associated with the twenty-four properties acquired throughout 2021. We incurred additional repairs and maintenance, insurance, and real estate tax expenses as expected and we hired additional on-site maintenance staff at several of our new parks to help us to increase efficiencies and decrease contract labor costs as we expanded into new markets this year, including in the Raleigh, Anderson, and Columbia metropolitan areas, among others. Community operating expenses as a percentage of revenues were 31.47% and 25.60% during 2021 and 2020, respectively.
Corporate Payroll and Overhead Expenses. For the year ended December 31, 2021, we incurred corporate payroll and overhead expenses of $3,013,810, as compared to $1,581,807 for the year ended December 31, 2020, an increase of $1,432,003, or 90.53%. This increase was primarily due to increased payroll including corporate salaries and benefits expense of $481,180 due to hiring additional personnel to support our growth and an increase in employee bonuses of $306,870. Additionally, we incurred increased audit and legal fees of approximately $45,000 largely driven by the volume of 2021 acquisitions, increased rent expense for our corporate office space by $96,000, and approximately $200,000 of additional marketing and travel expenses. Corporate payroll and overhead expenses as a percentage of revenue were 36.04% and 24.79% during 2021 and 2020, respectively.
Depreciation and Amortization Expense. For the year ended December 31, 2021, we recorded depreciation expense and amortization of acquisition costs of $2,060,882, as compared to $1,652,509 for the year ended December 31, 2020, an increase of $408,373, or 24.71%. The increase in depreciation and amortization was driven by approximately $260,000 related to the acquisition of depreciable assets in twenty-four manufactured housing communities during 2021 and an increase of $88,628 from a complete year of depreciation expense related to the two properties acquired during 2020. The remaining increase was due to capital improvement projects completed during the year ended December 31, 2021, such as home renovations and new home installations.
Interest Expense. For the year ended December 31, 2021, we incurred interest expense of $2,243,876, as compared to $1,961,843 for the year ended December 31, 2020, an increase of $282,033, or 14.38%. The increase was primarily related to the increase in interest expense of $296,274 on additional debt incurred to acquire new properties in 2021 and an increase of $76,252 from dividends to preferred stockholders, which are included in interest expense given the liability treatment of the mandatorily redeemable Series C Preferred Stock, offset by decreases due to the payoff of our Butternut mortgage in 2020 upon selling the community. Interest expense as a percentage of revenues was 26.83% and 30.75% during 2021 and 2020, respectively, which continues to improve as we refinance and pay down our existing debt and obtain new loans for acquisitions with more favorable terms.
Refinancing Costs. For the year ended December 31, 2021, we recognized $110,691 of refinancing costs, as compared to $464,568 for the year ended December 31, 2020, a decrease of $353,877, or 76.17%. The 2021 expense related to the refinancing of three loans connected to our Springlake communities for a new loan with one lender. Upon the refinance, we wrote off unamortized debt issuance costs connected with the original debt. During the year ended December 31, 2020, we refinanced notes payable related to five of our communities.
Other Income. During the year ended December 31, 2021, we recognized other income of $139,300 upon forgiveness of our Paycheck Protection Program loan by the Small Business Administration in June 2021, compared to $0 for the year ended December 31, 2021.
Gain on Sale of Property. We did not sell any of our communities during the year ended December 31, 2021. We recognized a gain on the sale of our Butternut community equal to $761,978 during the year ended December 31, 2020.
Net Loss. The factors described above resulted in a net loss of $1,558,952 for the year ended December 31, 2021, as compared to a net loss of $151,714 for the year ended December 31, 2020, an increase of $1,407,238, or 927.56%.
Liquidity and Capital Resources
As of December 31, 2021, we had cash and cash equivalents of $2,106,329, including restricted cash of $705,195. In addition to cash generated through operations, we use a variety of sources to fund our cash needs, including acquisitions and sales of properties. We intend to continue to increase our real estate investments. Our business plan includes acquiring communities that yield more than our cost of funds and then investing in physical improvements, including adding rental homes onto otherwise vacant sites. Our ability to continue acquiring communities are dependent on our ability to raise capital. There is no guarantee that any of these additional opportunities will materialize or that we will be able to take advantage of such opportunities. The growth of our real estate portfolio depends on the availability of suitable properties which meet our investment criteria and appropriate financing.
We will require additional funding to finance the growth of our current and expected future operations as well as to achieve our strategic objectives. We believe that our current available cash along with anticipated revenues is sufficient to meet our cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable to us, if at all.
We plan to meet our short-term liquidity requirements for the next twelve months, generally through available cash as well as net cash provided by operating activities and with funds available to us under the existing $1.5 million revolving note described below.
Summary of Cash Flow
The following table provides detailed information about our net cash flow for years ended December 31, 2021 and 2020:
Cash Flow
Year Ended December 31,
Net cash provided by operating activities $ 2,265,991 $ 1,278,907
Net cash used in investing activities (9,125,195 ) (200,195 )
Net cash provided by (used in) financing activities 6,976,676 (3,237,266 )
Net increase (decrease) in cash and cash equivalents 117,472 (2,158,554 )
Cash and cash equivalents at beginning of year 1,988,857 4,147,411
Cash and cash equivalent at end of year $ 2,106,329 $ 1,988,857
Net cash provided by operating activities was $2,265,991 for the year ended December 31, 2021, as compared to $1,278,907 for the year ended December 31, 2020. For the year ended December 31, 2021, the net loss of $1,558,952, offset by depreciation and amortization in the amount of $2,060,882, increase in accrued liabilities of $747,559, increase in tenant security deposits of $366,043, and increase in accounts payable of $241,869 were the primary drivers of the net cash provided by operating activities. For the year ended December 31, 2020, the net loss of $151,714, offset by depreciation and amortization in the amount of $1,652,509, and write off mortgage costs totaling $464,569, were the primary drivers of the net cash provided by operating activities.
Net cash used in investing activities was $9,125,195 for the year ended December 31, 2021, as compared to $200,195 for the year ended December 31, 2020. Net cash used in investing activities for the year ended December 31, 2021 consisted of purchases of investment properties in the amount of $6,617,000 and $481,781 paid for acquisition costs, as well as capital improvements of $2,026,414, while net cash used in investing activities for the year ended December 31, 2020 consisted of purchases of investment properties in the amount of $1,001,000 and capital improvements of $1,299,195, offset by proceeds of $2,100,000 from the sale of the Butternut community.
Net cash provided by financing activities was $6,976,676 for the year ended December 31, 2021, as compared to $3,237,266 net cash used in financing activities for the year ended December 31, 2020. For the year ended December 31, 2021, net cash provided by financing activities consisted primarily of proceeds from issuance of preferred stock of $6,809,884 and proceeds from notes payable and lines of credit in the amount of $9,396,731, offset by repayment of notes payable of $4,909,168, repayment of VIE lines of credit of $1,732,599, and capitalized debt issuance costs of $1,526,376. For the year ended December 31, 2020, net cash used in financing activities consisted primarily of repayment of related party note and line of credit of $2,608,867, repayment of notes payable $18,555,939, capitalized financing cost of $1,230,680, and preferred share dividends of $811,143, offset by proceeds from issuance of preferred stock of $2,151,250 and proceeds from note payables of $16,960,969.
Prior Regulation A Offering
On November 1, 2019, we launched an offering under Regulation A of Section 3(6) of the Securities Act for Tier 2 offerings, pursuant to which we offered up to 1,000,000 shares of Series B Preferred Stock at an offering price of $10.00 per share, for a maximum offering amount of $10,000,000. In addition, we offered bonus shares to early investors in this offering, whereby the first 400 investors received, in addition to Series B Preferred Stock, 100 shares of Common Stock, regardless of the amount invested, for a total of 40,000 shares of Common Stock. This offering terminated on March 30, 2021.
In total, we sold an aggregate of 758,551 shares of Series B Preferred Stock for total gross proceeds of $7,585,510. After deducting a placement fee and other expenses, we received net proceeds of $7,185,717. We issued 29,000 shares of Common Stock to holders of Series B Preferred Stock.
Current Regulation A Offering
On June 11, 2021, we launched a new offering under Regulation A of Section 3(6) of the Securities Act for Tier 2 offerings, pursuant to which we are offering up to 47,000 shares of Series C Preferred Stock at an offering price of $1,000 per share for a maximum offering amount of $47 million.
During the year ended December 31, 2021, we sold an aggregate of 5,734.4 shares of Series C Preferred Stock for total gross proceeds of $5,734,400. After deducting a placement fee and other expenses, we received net proceeds of $5,345,207. The Company capitalized an additional $159,515 of issuance costs associated with the offering which, net of amortization expense, offset with the net proceeds on the balance sheet.
Promissory Notes
We have issued promissory notes payable to lenders related to the acquisition of manufactured housing communities and mobile homes. The interest rates on these promissory notes range from 3.310% to 5.875% with 5 to 30 years principal amortization. Two of the promissory notes have an initial 6 month, two had an initial 12 month, seven have an initial 24 month, one has an initial 60 month, and one promissory note has a 180-month period of interest only payments. The promissory notes are secured by the real estate assets and $36,554,126 for eighteen loans were guaranteed by Raymond M. Gee.
On May 1, 2020, we received a $139,300 Paycheck Protection Program, or PPP, loan from the United States Small Business Administration, or the SBA, under provisions of the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act. The PPP loan had a two-year term and bore interest at a rate of 1.0% per annum. The PPP provides that loans may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. We used the proceeds from the PPP loan for qualifying expenses and applied for forgiveness of the PPP loan in accordance with the terms of the CARES Act. The loan was forgiven by the SBA on June 7, 2021.
As of December 31, 2021, the outstanding balance on these notes was $50,955,777. The following are the terms of these notes:
Maturity
Date
Interest
Rate
Balance
12/31/21
Balance
12/31/20
Pecan Grove MHP LLC
02/22/29
5.250 %
2,969,250
3,037,625
Azalea MHP LLC
03/01/29
5.400 %
790,481
810,741
Holly Faye MHP LLC
03/01/29
5.400 %
579,825
579,825
Chatham MHP LLC
04/01/24
5.875 %
1,698,800
1,734,828
Lakeview MHP LLC
03/01/29
5.400 %
1,805,569
1,832,264
B&D MHP LLC
05/02/29
5.500 %
1,779,439
1,818,303
Hunt Club MHP LLC
01/01/33
3.430 %
2,398,689
2,445,011
Crestview MHP LLC
12/31/30
3.250 %
4,682,508
4,800,000
Maple Hills MHP LLC
12/01/30
3.250 %
2,341,254
2,400,000
Springlake MHP LLC
11/14/21
3.310 %
-
4,000,000
Springlake MHP LLC*
12/10/26
4.750 %
4,016,250
-
ARC MHP LLC
01/01/30
5.500 %
3,809,742
3,885,328
Countryside MHP LLC
03/20/50
5.500 %
1,684,100
1,700,000
Evergreen MHP LLC
04/01/32
3.990 %
1,115,261
1,135,502
Golden Isles MHP LLC
03/31/26
4.000 %
787,500
-
Anderson MHP LLC*
07/10/26
5.210 %
2,153,807
-
Capital View MHP LLC*
09/10/26
5.390 %
817,064
-
Hidden Oaks MHP LLC*
09/10/26
5.330 %
823,440
-
North Raleigh MHP LLC
11/01/26
4.750 %
5,304,409
-
Charlotte 3 Park MHP LLC (Dixie, Driftwood, Meadowbrook)(1)
03/01/22
5.000 %
1,500,000
-
Carolinas 4 MHP LLC*
01/10/27
5.300 %
3,105,070
Gvest Finance LLC (B&D homes)
05/01/24
5.000 %
657,357
694,640
Gvest Finance LLC (Countryside homes)
03/20/50
5.500 %
1,287,843
1,300,000
Gvest Finance LLC (Golden Isles homes)
03/31/36
4.000 %
787,500
-
Gvest Anderson Homes LLC*
07/10/26
5.210 %
2,006,193
-
Gvest Capital View Homes LLC*
09/10/26
5.390 %
342,936
-
Gvest Hidden Oaks Homes LLC*
09/10/26
5.330 %
416,560
-
Gvest Carolinas 4 Homes LLC (Asheboro, Morganton)*
01/10/27
5.300 %
1,294,930
PPP Loan - MHP
05/01/22
1.000 %
-
139,300
Total Note Payables
50,955,777
32,313,367
Discount Direct Lender Fees
(2,064,294 )
(1,096,629 )
Total Net of Discount
$ 48,891,483
$ 31,216,738
(1) We repaid the Charlotte 3 Park MHP LLC note payable of $1,500,000 on March 1, 2022.
* The notes indicated above are subject to certain financial covenants.
During the year ended December 31, 2021, we refinanced our Springlake MHP LLC note payable totaling $4,000,000 to a new note with a different lender totaling $4,016,000. As of December 31, 2021, we recognized refinancing cost expense totaling $87,985 and capitalized $75,141 of debt issuance costs related to the new note. Also during the year ended December 31, 2021, Gvest Finance LLC paid off a note payable totaling $309,271 that was originally used to purchase new homes that were integrated into our Springlake community. This note was repaid with proceeds from the Springlake New Home Facility described below. Gvest Finance LLC recognized refinance cost totaling $6,204 related to this repayment.
During the year ended December 31, 2020, we refinanced a total of $16,374,007 from loans payable to $15,245,000 of new notes payable from five of the communities. We used the additional loans payable proceeds from the refinance to retire the related party note payable described below. As of December 31, 2020, we recognized refinancing cost expense totaling $464,568 and capitalized $640,895 of mortgage costs related to the refinancing.
Metrolina Promissory Note
On October 22, 2021, we issued a promissory note to Metrolina Loan Holdings, LLC, or Metrolina, a significant stockholder, in the principal amount of $1,500,000. This related party note bears interest at a rate of 18% per annum and matures on April 1, 2023. During the first six months of the note, any prepayment would require us to pay a yield maintenance fee equal to six months of interest. Thereafter, the loan may be prepaid at any time without penalty or fee. The note is guaranteed by Mr. Gee. As of December 31, 2021, the balance on this note was $1,500,000, and interest expense for the year totaled $51,780.
Gvest Revolving Promissory Note
On December 27, 2021, we issued a revolving promissory note to Raymond M. Gee, our chief executive officer, pursuant to which we may borrow up to $1,500,000 from Mr. Gee on a revolving basis for working capital or acquisition purposes. On the same date, we borrowed $150,000. This note has a five-year term and is interest-only based on an 15% annual rate through the maturity date. As of December 31, 2021, the outstanding balance on this note was $150,000.
Line of Credit - ARC, Crestview, and Maple Occupied Home Facility
On December 24, 2020, Gvest Homes I LLC entered into a loan agreement with a lender for a commitment amount of up to $20,000,000, provided that only up to $8,500,000 is to be used for used homes within our ARC, Crestview, and Maple communities. The agreement requires the maintenance of certain financial ratios and other affirmative and negative covenants.
On December 24, 2020, the lender agreed to advance $3,348,967 to us. During the first quarter of 2021, the lender agreed to increase this amount to $3,422,260. As of December 2021, $850,000 was still due from the lender. On December 17, 2021, the lender advanced $838,000 under the Multi-Community Rental Financing Facility discussed below and the funds were used to pay us the outstanding balance owed from the 2020 sale of ARC homes to Gvest Homes I LLC. Subsequently, Gvest Homes I LLC reduced the line of credit balance of the ARC, Crestview, and Maple Occupied Home Facility to the total amount funded to date. As of December 31, 2021 and 2020, the outstanding balance on this line of credit was $2,517,620 and $3,348,967, respectively, presented on the balance sheet net of discount direct lender fees of $95,221 and $134,051, respectively.
The line of credit bears interest at 8.375% and maturity date of the loan is January 1, 2030. During the years ended December 31, 2021 and 2020, interest expense totaled $168,770 and $587, respectively. Pursuant to the agreement, we are obligated to pay a fee to the lender equal to 1% of the amount of each advance which funding fee shall be deducted from the then available commitment amount. The line of credit is guaranteed by Raymond M. Gee.
Lines of Credit - Multi-Community Floorplan and Rental Financing Facilities
On July 26, 2021, Gvest Finance LLC entered into a floorplan credit agreement, rental homes credit agreement, and a credit and security supplemental agreement pursuant to which the lender has agreed to make available to Gvest Finance LLC a secured credit facility with a joint, aggregate credit limit of $5,000,000, consisting of (i) a credit limit of up to $1,000,000 under a floorplan line to be used to finance the acquisition of manufactured homes for retail sale and (ii) a credit limit of up to $4,000,000 under a rental line to finance the acquisition of rental homes. The lender subsequently agreed to extend the credit limit for the floorplan line to $2,000,000.
On November 12, 2021, Gvest Finance LLC repaid the outstanding balance on the floorplan line as of that date totaling $1,676,634 using funds advanced from the Springlake New Home Facility discussed below. As of December 31, 2021, the balance on the floorplan line of credit was $1,104,255 as Gvest Finance LLC borrowed additional funds of $1,104,255 after the initial repayment which is presented on the balance sheet net of discount direct lender fees of $1,612.
The floorplan line of credit interest is calculated at a schedule as follows: (i) Day 1-360: LIBOR plus 6% per annum; (ii) Day 361-720: LIBOR plus 7% per annum; and (iii) Day 721+: LIBOR plus 8% per annum. Interest shall also accrue at the lesser of (a) the “LIBOR Rate”, plus 10% per annum and (b) the maximum lawful rate of interest permitted under applicable law. During the year ended December 31, 2021, total interest expense was $23,933.
The maturity date of the of the floorplan line of credit will vary based on each statement of financial transaction, or SOFT, a report identifying the funded homes and the applicable financial terms. Gvest Finance LLC promises to repay each floor plan advance as follows: (i) Gvest Finance LLC shall pay a principal amount in an amount equal to the original principal amount of such advance multiplied by the percentage specified in the applicable SOFT, commencing on the 15th day of the first full month after the first anniversary of any advance and continuing on the 15th day of each month thereafter; (ii) interest shall be payable monthly, in arrears, and shall be due and payable on or before the 15th day of the month following the month in which such interest accrues; and (iii) Gvest Finance LLC will pay to lender an amount equal to the original invoice price of such homes inventory, less all principal payments made with respect to such inventory pursuant to (ii) above, plus all billed and unpaid interest and any applicable fees, upon the sale of inventory financed or refinanced by lender.
The rental line of credit bears interest at the greater of 3.25% or the highest prime rate of interest published in the Wall Street Journal on either (A) the date when the lender advances the loan or (B) the last day of the 60th month following the month of the date when the lender advances the loan, plus 375 basis points in either case. The rental line of credit matures ten years after the date of each advance. During the year ended December 31, 2021, total interest expense was $2,409. As of December 31, 2021, the balance on the rental line was $838,000, presented on the balance sheet net of discount direct lender fees of $35,000. The proceeds were used to purchase used homes in the ARC community as discussed above.
The floorplan and rental lines of credit are guaranteed by Raymond M. Gee. Gvest Finance LLC is subject to certain financial covenants as set out in the loan agreement.
Line of Credit - Springlake Home Facility
On November 12, 2021, Gvest Springlake Homes LLC, a wholly owned subsidiary of Gvest Finance LLC, entered into a loan and security agreement for a line of credit in the principal amount of $2,000,000 to be used to purchase homes for our Springlake community. The immediate advance of funds from the line of credit totaling $1,892,481 was used to pay off Gvest Finance LLC’s preexisting note totaling $309,271 and the outstanding balance of the Line of Credit - Multi-Community Floor Plan and Rental Financing Facility totaling $1,676,634. The credit limit on this facility was increased on March 28, 2022 to $3,300,000.
The line of credit bears interest at the lesser of the Wall Street Journal prime rate plus one percent or 6.75% per annum and matures five years after each advance. As of December 31, 2021, the balance due on this line of credit was $1,892,481, presented on the balance sheet net of discount direct lender fees of $19,916. Interest expense related to this facility for the year ended December 31, 2021 totaled $20,936. The line of credit is guaranteed by Raymond M. Gee. Gvest Springlake Homes LLC is subject to certain financial covenants as set out in the loan agreement.
Off-Balance Sheet Arrangements
As of December 31, 2021, we had no off-balance sheet arrangements.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of our consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.
Critical accounting policies are defined as those that involve significant judgment and potentially could result in materially different results under different assumptions and conditions. Management believes the following critical accounting policies are affected by our more significant judgments and estimates used in the preparation of our consolidated financial statements.
Revenue Recognition. Mobile home rental and related income is generated from lease agreements for our sites and homes. The lease component of these agreements is accounted for under Topic 842 of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, for leases.
Under ASC 842, we must assess on an individual lease basis whether it is probable that we will collect the future lease payments. We consider the tenant’s payment history and current credit status when assessing collectability. When collectability is not deemed probable, we write-off the tenant’s receivables, including straight-line rent receivable, and limit lease income to cash received.
Our revenues primarily consist of rental revenues and tenant fee income. We have the following revenue sources and revenue recognition policies:
● Rental revenues include revenues from the leasing land lot or a combination of both, the mobile home and land at our properties to tenants.
○ Revenues from the leasing of land lot or a combination of both, the mobile home and land at our properties to tenants include (i) lease components, including land lot or a combination of both, the mobile home and land, and (ii) reimbursement of utilities and account for the components as a single lease component in accordance with ASC 842.
○ Revenues derived from fixed lease payments are recognized on a straight-line basis over the non-cancelable period of the lease. We commence rental revenue recognition when the underlying asset is available for use by the lessee. Revenue derived from the reimbursement of utilities are generally recognized in the same period as the related expenses are incurred. Our leases are month-to-month.
Acquisitions. We account for acquisitions as asset acquisitions in accordance with ASC 805, “Business Combinations,” and allocate the purchase price of the property based upon the fair value of the assets acquired, which generally consist of land, site and land improvements, buildings and improvements and rental homes. We allocate the purchase price of an acquired property generally determined by internal evaluation as well as third-party appraisal of the property obtained in conjunction with the purchase.
Variable Interest Entities. In December 2020, we entered into a property management agreement with Gvest Finance LLC, a company owned and controlled by our parent company, Gvest Real Estate Capital LLC, an entity whose sole owner is Raymond M. Gee, our chairman and chief executive officer, and have subsequently entered into property management agreements with Gvest Homes I LLC, Gvest Anderson Homes LLC, Gvest Capital View Homes LLC, Gvest Hidden Oaks Homes LLC, Gvest Springlake Homes LLC, Gvest Carolinas 4 Homes LLC, Gvest Sunnyland Homes LLC and Gvest Warrenville Homes LLC, which are wholly owned subsidiaries of Gvest Finance LLC. Under the property management agreements, we manage the homes owned by the VIEs and the VIEs remit to our company all income, less any sums paid out for debt service plus 5% of the debt service payment.
Additionally, during 2021, we formed two entities, Brainerd Place LLC and Bull Creek LLC, for the purpose of exploring opportunities to develop mobile home communities. We own 49% of these entities and Gvest Real Estate LLC, an entity whose sole owner is Raymond M. Gee, our chairman and chief executive officer, owns 51%. We also executed operating agreements with these entities which designate Gvest Capital Management LLC, a company owned and controlled by Gvest Real Estate Capital LLC, as manager with the authority, power, and discretion to manage and control the entities’ business decisions. The operating agreements require us to make cash contributions to the entities to fund their activities, operations, and existence, if we approve the contribution requests from the manager, which ultimately provides us with power to direct the economically significant activities of these entities.
A company with interests in a VIE must consolidate the entity if the company is deemed to be the primary beneficiary of the VIE; that is, if it has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Such a determination requires management to evaluate circumstances and relationships that may be difficult to understand and to make a significant judgment, and to repeat the evaluation at each subsequent reporting date. Primarily due to our common ownership by Mr. Gee, our power to direct the activities of these entities that most significantly impact their economic performance, and the fact that we have the obligation to absorb losses or the right to receive benefits from these entities that could potentially be significant to these entities, the entities listed above are considered to be VIEs in accordance applicable U.S. generally accepted accounting principles, or GAAP.
Investment Property and Depreciation. Investment property, including property and equipment, is carried at cost. Depreciation for Sites and Building is computed principally on the straight-line method over the estimated useful lives of the assets (ranging from 15 to 25 years). Depreciation of Improvements to Sites and Buildings, Rental Homes and Equipment and Vehicles is computed principally on the straight-line method over the estimated useful lives of the assets (ranging from 3 to 25 years). Land Development Costs are not depreciated until they are put in use, at which time they are capitalized as Sites and Land Improvements. Interest Expense pertaining to Land Development Costs are capitalized. Maintenance and Repairs are charged to expense as incurred and improvements are capitalized. The costs and related accumulated depreciation of property sold or otherwise disposed of are removed from the financial statement and any gain or loss is reflected in the current period’s results of operations.
Impairment Policy. We apply FASB ASC 360-10, “Property, Plant & Equipment,” to measure impairment in real estate investments. Rental properties are individually evaluated for impairment when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis without interest) from a rental property is less than the carrying value under its historical net cost basis. These expected future cash flows consider factors such as future operating income, trends and prospects as well as the effects of leasing demand, competition and other factors. Upon determination that a permanent impairment has occurred, rental properties are reduced to their fair value. For properties to be disposed of, an impairment loss is recognized when the fair value of the property, less the estimated cost to sell, is less than the carrying amount of the property measured at the time there is a commitment to sell the property and/or it is actively being marketed for sale. A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell. After the date we determine a property is held for disposition, depreciation expense is not recorded. There was no impairment during the years ended December 31, 2021 and 2020.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The full text of our audited consolidated financial statements begins on page of this annual report.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
As required by Rule 13a-15(e) of the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as of December 31, 2021. Based upon, and as of the date of this evaluation, our chief executive officer and chief financial officer determined that, because of the material weaknesses described below, our disclosure controls and procedures were not effective.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting for our company. Internal control over financial reporting refers to the process designed by, or under the supervision of, our principal executive officer and principal financial and accounting officer, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, and includes those policies and procedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
Our management evaluated the effectiveness of our internal control over financial reporting as of December 31, 2021. In making this evaluation, management used the framework established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company’s internal control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication, and (v) monitoring. Based on our evaluation, we determined that, as of December 31, 2021, our internal control over financial reporting was not effective due to the following material weaknesses.
● We lack proper segregation of duties due to the limited number of employees within the accounting department.
● We lack effective closing procedures.
To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of legal and accounting professionals. As we grow, we expect to increase our number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.
To cure the foregoing material weakness, we have taken or plan to take the following remediation measures:
● We have added and plan to continue to add additional employees to assist in the financial closing procedures.
● As necessary, we will continue to engage consultants or outside accounting firms to ensure proper accounting for our consolidated financial statements.
We intend to complete the remediation of the material weaknesses discussed above as soon as practicable, but we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weaknesses that we have identified, and material weaknesses in our disclosure controls and procedures may be identified in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate steps for remediation, as needed.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Controls over Financial Reporting
We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.
During the year ended December 31, 2021, we hired a new vice president of finance who assists with the functions of the accounting department. This hire has led to more segregation of duties and levels of review in our day-to-day accounting functions, reporting, and closing procedures which historically have been material weaknesses for us in internal controls.
Other than in connection with the implementation of the remedial measures described above, there were no changes in our internal controls over financial reporting during the quarter ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION.
We have no information to disclose that was required to be disclosed in a report on Form 8-K during fourth quarter of fiscal year 2021 but was not reported.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The following sets forth information about our directors and executive officers as of the date of this report:
Name Age Position
Raymond M. Gee Chairman of the Board and Chief Executive Officer
Michael Z. Anise President, Chief Financial Officer and Director
Andrew Coatley Chief Operating Officer
Adam A. Martin Chief Investment Officer
Chelsea H. Gee Vice President of Finance
William H. Carter Director
Richard M. Gee Director
James L. Johnson Director
Terry Robertson Director
Raymond M. Gee. Mr. Gee has served as chairman of our board of directors and chief executive officer of our company since October 2017 as a result of the merger of Mobile Home Rental Holdings LLC with our company. Mr. Gee has 30 years of experience in commercial real estate, development, and structured finance. He has also served as the chief executive officer of Gvest Capital LLC, which provides management and administrative services to various investment and asset ownership entities, since 2012. Prior to forming Gvest Capital LLC, he was the head of real estate and structured products for Royal & Sun Alliance and oversaw a multi-billion-dollar diversified portfolio. Previously he headed the Latin American real estate practice for Arthur Andersen in Mexico City. Mr. Gee is a graduate of the University of Oklahoma with a BBA in finance/real estate. Mr. Gee was selected to serve on our board of directors due to his management experience in our industry.
Michael Z. Anise. Mr. Anise has served as our chief financial officer and as a member of our board of directors since September 2017 and has served as our president since August 2019. From 2011 to 2017, Mr. Anise was chief financial officer of Crossroads Financial, a commercial finance company. Mr. Anise earned his BS degree in accounting, with a minor in finance, from Florida Atlantic University. Mr. Anise was selected to serve on our board of directors due to finance experience.
Andrew Coatley. Mr. Coatley has served as our chief operating officer since October 2019. From 2014 to October 2019, he was the executive property director for Bainbridge Companies providing operational leadership. Mr. Coatley earned a BS degree in education from The Defiance of Ohio.
Adam A. Martin. Mr. Martin has served as our chief investment officer since October 2017. From 2009 to September 2017, he was CIO of Gvest Capital LLC, a company that provides management and administrative services to various investment and asset ownership entities. Mr. Martin earned is BA degree in finance and master’s degree in land economics and real estate from Texas A&M University.
Chelsea H. Gee. Mrs. Gee has served as our vice president of finance since January 2021. Mrs. Gee is a licensed Certified Public Accountant in North Carolina and Texas. Prior to joining us, she worked for Ernst and Young, LLP for five and half years as a tax accountant where she advised privately owned businesses and high net worth individuals with tax compliance, planning, and financial reporting, specializing in clients with flow through investments and within the real estate sector. In 2015, Mrs. Gee received her master’s degree in accounting from Southern Methodist University and was valedictorian. She also received her BBA degree with a focus in accounting and BA degree in philosophy from Southern Methodist University in 2014.
William H. Carter. Mr. Carter has served as a member of our board of directors since March 2018. He has served as president of The Carter Land Company for the past 15 years. The Carter Land Company has provided brokerage services with respect to 144 manufactured housing communities in the Southeast. The firm presently manages apartments, single family houses, commercial warehouses, mobile home parks, self-storage facilities and retail buildings. Mr. Carter was selected to serve on our board of directors due to his experience in our industry.
Richard M. Gee. Mr. Gee has served as a member of our board of directors since October 2020. He has served as a Vice President of Gvest Capital LLC since 2018. He specializes in acquisitions and development. Prior to joining Gvest Capital LLC, he was a Policy Analyst in the Texas Senate for two years working for a senator. He is a graduate of the University of North Carolina School of Law and received his BA degree in political science from Southern Methodist University. Mr. Gee was selected to serve on the board of directors due to his real estate development experience.
James L. Johnson. Mr. Johnson has served as a member of our board of directors since March 2018. He is the founder of Carpet South Design Inc., where he has served as its CEO since 2013. He also owns a majority interest in Piedmont Stair Works Design LLC. The operations of both companies target the real estate improvements industry. Mr. Johnson earned his BS degree in business management from the University of Phoenix. Mr. Johnson was selected to serve on our board of directors due to experience in the real estate industry.
Terry Robertson. Dr. Robertson has served as a member of our board of directors since December 2018. Since 2007, Mr. Robertson has served as consultant at ROBERTSON Appraisal & Consulting, a real estate appraisal and consulting firm that he founded. Prior to that, he worked at Carroll & Carroll Real Estate Appraisers. Dr. Robertson earned his BBA degree in finance and his PhD from the University of Georgia and is Professor Emeritus of Price College of Business of the University of Oklahoma. Mr. Robertson is an author of articles and books relating to corporate financial structure, real estate valuation and regional economic development. Dr. Robertson was selected to serve on our board of directors due to finance and real estate investment background.
Directors and executive officers are elected until their successors are duly elected and qualified. There are no arrangements or understandings known to us pursuant to which any director or executive officer was or is to be selected as a director (or director nominee) or executive officer.
Family Relationships
Raymond M. Gee and Richard M. Gee are father and son. Richard M. Gee and Chelsea H. Gee are married. There are no other family relationships between any of our directors or executive officers.
Involvement in Certain Legal Proceedings
To the best of our knowledge, except as described below, none of our directors or executive officers has, during the past ten years:
● been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);
● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;
● been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;
● been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
● been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
Corporate Governance
Our current board of directors is comprised of six members: Raymond M. Gee, Michael Z. Anise, William H. Carter, Richard M. Gee, James L. Johnson and Terry Robertson. Our board of directors has determined that Messrs. Robertson, Johnson and Carter are independent directors as that term is defined in the rules of the Nasdaq Stock Market.
Our board of directors currently has two standing committees, an audit committee and a compensation committee, which perform various duties on behalf of and report to the board of directors. Each of the standing committees is comprised of a majority of independent directors. From time to time, the board of directors may establish other committees.
Governance Structure
Currently, our chief executive officer is also our chairman. Our board of directors believes that, at this time, having a combined chief executive officer and chairman is the appropriate leadership structure for our company. In making this determination, the board of directors considered, among other matters, Mr. Raymond M. Gee’s experience and tenure, and believed that he is highly qualified to act as both chairman and chief executive officer due to his experience, knowledge, and personality. Among the benefits of a dual chief executive officer and chairman role is this structure promotes clearer leadership and direction for our company and allows for a single, focused chain of command to execute our strategic initiatives and business plans.
The Board’s Role in Risk Oversight
Our board of directors plays an active role, as a whole and at the committee level, in overseeing management of our risks and strategic direction. Our board of directors regularly reviews information regarding our liquidity and operations, as well as the risks associated with each. Our audit committee oversees the process by which our senior management and relevant employees assess and manage our exposure to, and management of, financial risks. Our compensation committee is responsible for overseeing the management of risks relating to our executive compensation plans and arrangements. While each committee is responsible for evaluating certain risks and overseeing the management of such risks, the entire board of directors is regularly informed about such risks.
Audit Committee
Our audit committee currently consists of Messrs. Robertson, Anise and Carter, with Mr. Robertson serving as chairman. Our board of directors has determined that each member of our audit committee is able to read and understand fundamental financial statements and has substantial business experience that results in such member’s financial sophistication. Our board of directors further determined that Mr. Robertson possesses the accounting or related financial management experience that qualifies him as financially sophisticated within the meaning of the rules of the Nasdaq Stock Market and that he is an “audit committee financial expert” as defined by the rules and regulations of the SEC.
The primary purposes of our audit committee are to assist our board of directors in fulfilling its responsibility to oversee the accounting and financial reporting processes of our company and audits of our financial statements, including (i) retaining and overseeing our independent accountants; (ii) assisting the board in its oversight of the integrity of our financial statements, the qualifications, independence and performance of our independent auditors and our compliance with legal and regulatory requirements; (iii) reviewing and approving the plan and scope of the internal and external audit; (iv) pre-approving any audit and non-audit services provided by our independent auditors; (v) approving the fees to be paid to our independent auditors; (vi) reviewing with our chief executive officer and chief financial officer and independent auditors the adequacy and effectiveness of our internal controls; (vii) preparing the audit committee report to be filed with the SEC; (viii) reviewing hedging transactions; and (ix) reviewing and assessing annually the audit committee’s performance and the adequacy of its charter. The role and responsibilities of our audit committee are more fully set forth in a written charter adopted by our board of directors, which is available on our website at www.mhproperties.com.
Compensation Committee
Our compensation committee currently consists of Messrs. Johnson, Raymond Gee and Robertson, with Mr. Johnson serving as chairman. The primary purposes of our compensation committee are to assist our board of directors in fulfilling its responsibility to determine the compensation of our executive officers and directors and to approve and evaluate the compensation policies and programs of our company, including (i) reviewing from time to time and approving our corporate goals and objectives relevant to compensation and our executive compensation structure and compensation range; (ii) evaluating the chief executive officer’s performance in light of the goals and objectives and determining and approving the chief executive officer’s compensation based on this evaluation; (iii) determining and approving the compensation paid to our chief financial officer and any other executive officers; (iv) determining the compensation of our independent directors; (v) granting rights to indemnification and reimbursement of expenses to any officers, employees or directors; (vi) making recommendations to the board regarding equity-based and incentive compensation plans, policies and programs; and (vii) reviewing and assessing annually the compensation committee’s performance and the adequacy of its charter. The role and responsibilities of our compensation committee are more fully set forth in a written charter adopted by our board of directors, which is available on our website at www.mhproperties.com.
The policies underlying our compensation committee’s compensation decisions are designed to attract and retain the best-qualified management personnel available. We routinely compensate our executive officers through salaries. At our discretion, we may reward executive officers and employees through bonus programs based on profitability and other objectively measurable performance factors. Additionally, we use stock options and other incentive awards to compensate our executives and other key employees to align the interests of our executive officers with the interests of our stockholders. In establishing executive compensation, our compensation committee will evaluate compensation paid to similar officers employed at other companies of similar size in the same industry and the individual performance of each officer as it impacts our overall performance with particular focus on an individual’s contribution to the realization of operating profits and the achievement of strategic business goals. Our compensation committee will further attempt to rationalize a particular executive’s compensation with that of other executive officers of our company in an effort to distribute compensation fairly among the executive officers. Although the components of executive compensation (salary, bonus and incentive grants) will be reviewed separately, compensation decisions will be made based on a review of total compensation.
Material Changes to Director Nomination Procedures
There have been no material changes to the procedures by which stockholders may recommend nominees to our board of directors since such procedures were last disclosed.
Code of Ethics
We have adopted a code of ethics that applies to all of our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer. Such code of ethics addresses, among other things, honesty and ethical conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities laws, and reporting of violations of the code.
We are required to disclose any amendment to, or waiver from, a provision of our code of ethics applicable to our principal executive officer, principal financial officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as a method of disseminating this disclosure, as permitted by applicable SEC rules. Any such disclosure will be posted to our website within four business days following the date of any such amendment to, or waiver from, a provision of our code of ethics.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Exchange Act requires our directors and executive officers and beneficial holders of more than 10% of our Common Stock to file with the SEC initial reports of ownership and reports of changes in ownership of our equity securities. None of our current directors and executive officers have properly filed these reports. We are working with our directors and executive officers to file the proper forms.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION.
Summary Compensation Table - Years Ended December 31, 2021 and 2020
The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during the noted periods.
Name and Principal Position Year Salary
($) Bonus
($) Stock
Awards
($)(1) Other
($) Total
($)
Raymond M. Gee, Chief Executive Officer - - - 750,000 (3) 750,000
-
6,500 380,000 (2)(3) 386,500
Michael Z. Anise, President and Chief Financial Officer 170,000 150,000 - 20,000 (2) 340,000
150,000 100,000 6,500 10,000 (2) 266,500
Adam A. Martin, Chief Investment Officer 150,000 150,000 -
300,000
130,000 100,000 -
230,000
(1) The amount is equal to the aggregate grant-date fair value with respect to the awards, computed in accordance with FASB ASC Topic 718.
(2) Includes compensation earned as a member of our board of directors.
(3) Includes guarantee fees accrued or paid to Mr. Gee during the years ended December 31, 2021 and 2020 of $750,000 and $370,000, respectively.
Outstanding Equity Awards at Fiscal Year End
The following table includes certain information with respect to the value of all unexercised options and unvested shares of restricted stock previously awarded to the executive officers named above at the fiscal year ended December 31, 2021.
Option Awards
Name
Number of Securities
Underlying Unexercised Options (#) Exercisable
Number of Securities
Underlying Unexercised
Options (#)
Unexercisable
Equity
Incentive Plan Awards:
Number of Securities
Underlying Unexercised
Unearned
Options (#)
Option Exercise Price ($)
Option Expiration Date
Michael Z. Anise
231,000
-
-
$ 0.01
12/11/2027
Michael Z. Anise
87,000
-
-
$ 0.01
12/30/2029
Adam A. Martin
240,000
-
-
$ 0.01
12/12/2027
Additional Narrative Disclosure
Retirement Benefits
We have not maintained, and do not currently maintain, a defined benefit pension plan or nonqualified deferred compensation plan. We currently make available a retirement plan intended to provide benefits under Section 401(k) of the Internal Revenue Code of 1986, as amended, or the Code, pursuant to which employees, including the executive officers named above, can make voluntary pre-tax contributions.
Potential Payments Upon Termination or Change in Control
None of the named executive officers listed above are entitled to severance or other payments upon termination or a change in control of our company.
Director Compensation
The table below sets forth our non-executive officer directors’ compensation during the fiscal year ended December 31, 2021.
Name Fees
Earned or
Paid in
Cash
($) Total
($)
William H. Carter 20,000 20,000
Richard M. Gee 20,000 20,000
James L. Johnson 20,000 20,000
Terry Robertson 20,000 20,000
Stock Compensation Plan
In December 2017, our board of directors, with the approval of a majority of stockholders, adopted the Manufactured Housing Properties Inc. Stock Compensation Plan, or the Plan. Awards that may be granted include stock options, stock appreciation rights and restricted stock awards. These awards offer our directors, officers, employees, advisers and consultants the possibility of future value, depending on the long-term price appreciation of our Common Stock and the award holder’s continuing service with our company.
The following is a summary of certain significant features of the Plan. The information which follows is subject to, and qualified in its entirety by reference to, the Plan document itself, which is filed as an exhibit to this report.
Purposes of Plan: The purpose of the Plan is to provide directors, officers, employees, advisers and consultants of our company and its subsidiaries with an increased incentive to make significant and extraordinary contributions to the long-term performance and growth of our company, to join the interests of directors, officers, employees, advisers and consultants with the interests of our stockholders through the opportunity for increased stock ownership and to attract and retain directors, officers, employees, advisers and consultants of exceptional abilities. The Plan is further intended to provide flexibility to us in structuring long-term incentive compensation to best promote the foregoing objectives.
Administration of the Plan: The Plan is administered by our compensation committee. Among other things, the administrator has the authority to select persons who will receive awards, determine the types of awards and the number of shares to be covered by awards, and to establish the terms, conditions, performance criteria, restrictions and other provisions of awards. The administrator has authority to establish, amend and rescind rules and regulations relating to the Plan.
Eligible Recipients: Persons eligible to receive awards under the Plan will be those directors, officers, employees, advisers and consultants of our company and its subsidiaries who are selected by the administrator.
Shares Available Under the Plan: The maximum number of shares of our Common Stock that may be delivered to participants under the Plan is 1,000,000, subject to adjustment for certain corporate changes affecting the shares, such as stock splits. Shares subject to an award under the Plan for which the award is canceled, forfeited or expires again become available for grants under the Plan. Shares subject to an award that is settled will not again be made available for grants under the Plan.
Stock Options:
General. Stock options give the option holder the right to acquire from us a designated number of shares of Common Stock at a purchase price that is fixed upon the grant of the option. Stock options granted may be either tax-qualified stock options (so-called “incentive stock options”) or non-qualified stock options. Subject to the provisions of the Plan, the administrator has the authority to determine all grants of stock options. That determination will include: (i) the number of shares subject to any option; (ii) the exercise price per share; (iii) the expiration date of the option; (iv) the manner, time and date of permitted exercise; (v) other restrictions, if any, on the option or the shares underlying the option; and (vi) any other terms and conditions as the administrator may determine.
Option Price. The exercise price for stock options will be determined at the time of grant. Normally, the exercise price will not be less than the fair market value on the date of grant. As a matter of tax law, the exercise price for any incentive stock option awarded may not be less than the fair market value of the shares on the date of grant. However, incentive stock option grants to any person owning more than 10% of our voting stock must have an exercise price of not less than 110% of the fair market value on the grant date.
Exercise of Options. An option may be exercised only in accordance with the terms and conditions for the option agreement as established by the administrator at the time of the grant. The exercise price shall be payable in cash or, if the administrator consents, in shares of Common Stock (including Common Stock to be received upon a simultaneous exercise) or other consideration substantially equivalent to cash. The administrator may from time to time authorize payment of all or a portion of the exercise price in the form of a promissory note or other deferred payment installments according to such terms as the administrator may approve. The board may restrict or suspend the power of the administrator to permit such loans and may require that adequate security be provided.
Expiration or Termination. Options, if not previously exercised, will expire on the expiration date established by the administrator at the time of grant. Such term cannot exceed ten years provided that in the case of incentive stock options granted to holders of more than 10% of our voting stock, such term cannot exceed five years. Options will terminate before their expiration date if the holder’s service with our company or a subsidiary terminates before the expiration date. The option may remain exercisable for specified periods after certain terminations of employment, including terminations as a result of death, disability or retirement, with the precise period during which the option may be exercised to be established by the administrator and reflected in the grant evidencing the award.
Incentive and Non-Qualified Options. As described elsewhere in this summary, an incentive stock option is an option that is intended to qualify under certain provisions of the Code, for more favorable tax treatment than applies to non-qualified stock options. Any option that does not qualify as an incentive stock option will be a non-qualified stock option. Under the Code, certain restrictions apply to incentive stock options. For example, the exercise price for incentive stock options may not be less than the fair market value of the shares on the grant date and the term of the option may not exceed ten years. In addition, an incentive stock option may not be transferred, other than by will or the laws of descent and distribution, and is exercisable during the holder’s lifetime only by the holder. In addition, no incentive stock options may be granted to a holder that is first exercisable in a single year if that option, together with all incentive stock options previously granted to the holder that also first become exercisable in that year, relate to shares having an aggregate fair market value in excess of $100,000, measured at the grant date.
Stock Appreciation Rights: Stock appreciation rights, or SARs, which may be granted alone or in tandem with options, have an economic value similar to that of options. When a SAR for a particular number of shares is exercised, the holder receives a payment equal to the difference between the market price of the shares on the date of exercise and the exercise price of the shares under the SAR. Again, the exercise price for SARs normally is the market price of the shares on the date the SAR is granted. Under the Plan, holders of SARs may receive this payment - the appreciation value - either in cash or shares of Common Stock. The form of payment will be determined by us. Essentially, a holder of a SAR benefits when the market price of the Common Stock increases, to the same extent that the holder of an option does, but, unlike an option holder, the SAR holder need not pay an exercise price upon exercise of the award.
Stock Awards: Restricted shares are shares of Common Stock awarded to participants at no cost. Restricted shares can take the form of awards of restricted stock, which represent issued and outstanding shares of our Common Stock subject to vesting criteria, or restricted stock units, which represent the right to receive shares of our Common Stock subject to satisfaction of the vesting criteria. Restricted shares are forfeitable and non-transferable until the shares vest. The vesting date or dates and other conditions for vesting are established when the shares are awarded. Those may include requirements for continuous service and/or the achievement of specified performance goals.
Other Material Provisions: Awards will be evidenced by a written agreement, in such form as may be approved by the administrator. In the event of various changes to the capitalization of our company, such as stock splits, stock dividends and similar re-capitalizations, an appropriate adjustment will be made by the administrator to the number of shares covered by outstanding awards or to the exercise price of such awards. In the event of a change in control of our company (as defined in the Plan) then, unless the administrator or the board otherwise determines with respect to one or more awards, all outstanding awards shall become immediately fully vested and nonforfeitable. Except as otherwise determined by the administrator at the date of grant, awards will not be transferable, other than by will or the laws of descent and distribution. Our board also has the authority, at any time, to discontinue the granting of awards. The board also has the authority to alter or amend the Plan or any outstanding award or may terminate the Plan as to further grants, provided that no amendment will, without the approval of our stockholders, to the extent that such approval is required by law or the rules of an applicable exchange, increase the number of shares available under the Plan, change the persons eligible for awards under the Plan, extend the time within which awards may be made, or amend the provisions of the Plan related to amendments. No amendment that would adversely affect any outstanding award made under the Plan can be made without the consent of the holder of such award.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
Security Ownership of Certain Beneficial Owners and Management
The following table sets forth information regarding beneficial ownership of our Common Stock as of March 29, 2022 by (i) each of our officers and directors; (ii) all of our officers and directors as a group; and (iii) each person who is known by us to beneficially own more than 5% of our Common Stock. Unless otherwise specified, the address of each of the persons set forth below is in care of our company, 136 Main Street, Pineville, NC 28134.
Name and Address of Beneficial Owner Title of Class Amount and
Nature of Beneficial
Ownership(1) Percent of
Class(2)
Raymond M. Gee, Chairman and Chief Executive Officer (3) Common Stock    8,520,000 68.69 %
Michael Z. Anise, President, Chief Financial Officer and Director (4) Common Stock 338,000 2.66 %
Andrew Coatley, Chief Operating Officer (5) Common Stock 20,000 *
Adam A. Martin, Chief Investment Officer (6) Common Stock 240,000 1.90 %
Chelsea H. Gee, Vice President of Finance (7) Common Stock 33,334 *
William H. Carter, Director Common Stock 20,000 *
Richard M. Gee, Director Common Stock - -
James L. Johnson, Director Common Stock 20,000 *
Terry Robertson, Director Common Stock 20,000 *
All officers and directors as a group (9 persons named above) Common Stock 9,211,334 74.16 %
Michael P. Kelly (8) Common Stock 2,145,000 17.29 %
Joseph Jackson (9) Common Stock 1,254,506 10.11 %
* Less than 1%
(1) Beneficial Ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Except as set forth below, each of the beneficial owners listed above has direct ownership of and sole voting power and investment power with respect to the shares of our Common Stock.
(2) A total of 12,403,680 shares of our Common Stock are considered to be outstanding pursuant to SEC Rule 13d-3(d)(1) as of March 29, 2022. For each beneficial owner above, any options exercisable within 60 days have been included in their denominator.
(3) Includes 20,000 shares of Common Stock held directly and 8,500,000 shares of Common Stock held by Gvest Real Estate Capital LLC. Raymond M. Gee is the Managing Member of Gvest Real Estate Capital LLC and has voting and investment control over the shares held by it.
(4) Includes 20,000 shares of Common Stock held directly and 318,000 shares of Common Stock which Mr. Anise has the right to acquire within 60 days through the exercise of vested options.
(5) Consists of 20,000 shares of Common Stock which Mr. Coatley has the right to acquire within 60 days through the exercise of vested options.
(6) Consists of 240,000 shares of Common Stock which Mr. Martin has the right to acquire within 60 days through the exercise of vested options.
(7) Consists of 33,334 shares of Common Stock which Mrs. Gee has the right to acquire within 60 days through the exercise of vested options.
(8) Represents shares held by The Raymond M. Gee Irrevocable Trust and the Mariana Vega Ortega Irrevocable Trust. Michael P. Kelly is the Trustee of both trusts and has voting and investment control over the shares held by them.
(9) Represents shares held by Metrolina Loan Holdings, LLC. Joseph Jackson is the Managing Member of Metrolina Loan Holdings, LLC and has voting and investment control over the shares held by it. The address of Metrolina Loan Holdings, LLC is 108 Gateway Blvd, Suite 104, Mooresville, NC 28117.
Changes in Control
We do not currently have any arrangements which if consummated may result in a change of control of our company.
Securities Authorized for Issuance Under Equity Compensation Plans
The following table sets forth certain information about the securities authorized for issuance under our incentive plans as of December 31, 2021.
Plan Category Number of
securities
to be issued
upon
exercise of
outstanding
options,
warrants
and rights
(a)
Weighted-
average exercise
price of outstanding options, warrants
and rights
(b)
Number of
securities
remaining
available for
future
issuance
under equity
compensation
plans
(excluding
securities
reflected in
column (a))
(c)
Equity compensation plans approved by security holders 706,175 $ 0.01 293,825
Equity compensation plans not approved by security holders - - -
Total 706,175 $ 0.01 293,825
In December 2017, our board of directors, with the approval of a majority of stockholders, adopted the Plan as described above. The Plan provides for grants stock options and other forms of incentive compensation to officers, employees, directors, advisors or consultants of our company or its subsidiaries. We are authorized to issue up to 1,000,000 shares of Common Stock under this plan.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
Transactions with Related Persons
The following includes a summary of transactions since the beginning of our 2020 fiscal year, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at year end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under Item 11 “Executive Compensation”). We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received, as applicable, in arm’s-length transactions.
● On October 1, 2017, we issued a revolving promissory note to Raymond M. Gee, our chairman and chief executive officer, pursuant to which we may borrow up to $1,500,000 from Mr. Gee on a revolving basis for working capital purposes. This note has a five-year term with no annual interest and principal payment is deferred until the maturity date. This note was terminated in 2021. As of December 31, 2021 and 2020, the outstanding balance on this note was $0.
● On May 8, 2017, we issued a promissory note to Metrolina in the principal amount of $3,000,000. The note is interest only payment based on 8%, and 10% deferred until maturity to be paid with principal balance. This note was to mature in May of 2023. In September 2020, we paid off the full balance and terminated the note. This related party note was guaranteed by Mr. Gee. As of December 31, 2021 and 2020, the balance on this note was $0.
● During the years ended December 31, 2021 and 2020, Mr. Gee received fees totaling $500,000 and $370,000, respectively, for his personal guaranty on certain promissory notes relating to the refinancing and acquisitions of mobile home communities owned by us. During the year ended December 31, 2021, we also accrued $250,000 for personal guaranty fees owed to Mr. Gee in relation to the Asheboro and Morganton acquisitions that occurred at the end of December which were paid in January 2022.
● In August 2019, we entered into an office lease agreement with 136 Main Street LLC, an entity whose sole owner is Gvest Real Estate LLC, whose sole owner is Mr. Gee, for the lease of our offices. The lease is $12,000 per month and is on a month-to-month term. During the years ended December 31, 2021 and 2020, we paid $144,000 and $48,000, respectively, of rent expense to 136 Main Street LLC.
● In December 2020, we sold 305 park owned homes in four communities to Gvest Finance LLC and Gvest Homes 1 LLC for a total of $4,648,967. In December 2020 we also entered into a property management agreement with Gvest Finance LLC, a company owned and controlled by our parent company, Gvest Real Estate Capital LLC, an entity whose sole owner is Raymond M. Gee, and have subsequently entered into property management agreements with Gvest Homes I LLC, Gvest Anderson Homes LLC, Gvest Capital View Homes LLC, Gvest Hidden Oaks Homes LLC, Gvest Springlake Homes LLC, Gvest Carolinas 4 Homes LLC, Gvest Sunnyland Homes LLC and Gvest Warrenville Homes LLC, which are wholly owned subsidiaries of Gvest Finance LLC. Under the property management agreements, we manage homes owned by the VIEs and the VIEs remit to our company all income, less any sums paid out for debt service plus 5% of the debt service payment.
● On October 22, 2021, we issued a promissory note to Metrolina, a significant stockholder, in the principal amount of $1,500,000. The note bears interest at a rate of 18% per annum and matures on April 1, 2023. During the first six months of the note, any prepayment would require us to pay a yield maintenance fee equal to six months of interest. Thereafter, the loan may be prepaid at any time without penalty or fee. The note is guaranteed by Raymond M. Gee, our chairman and chief executive officer. As of December 31, 2021, the balance on this note was $1,500,000 and interest expense for the year totaled $51,780.
● On December 27, 2021, we issued a revolving promissory note to Gvest Real Estate Capital LLC, pursuant to which we may borrow up to $1,500,000 on a revolving basis for working capital or acquisition purposes. On the same date, we borrowed $150,000. This note has a five-year term and is interest-only based on an 15% annual rate through the maturity date. As of December 31, 2021, the outstanding balance on this note was $150,000. On February 28, 2022, we borrowed an additional $700,000.
Parent Company
As of December 31, 2021, Gvest Real Estate Capital LLC holds approximately 68.53% of our issued and outstanding voting securities.
Director Independence
Our board of directors has determined that Terry Robertson, James L. Johnson and William H. Carter are independent directors as that term is defined in the applicable rules of the Nasdaq Stock Market.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.
Independent Auditors’ Fees
The following is a summary of the fees billed to us for professional services rendered for the fiscal years ended December 31, 2021 and 2020:
Year Ended
December 31,
Audit Fees $ 168,710 $ 64,698
Audit-Related Fees 11,800 39,500
Tax Fees 15,079 13,000
All Other Fees - -
TOTAL $ 195,589 $ 172,468
All fees during 2021 and 2020 related to Friedman LLP except $25,468 of audit related fees during 2020 were related to Liggett & Webb, P.A.
“Audit Fees” consisted of fees billed for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our Form 10-K and 10-Q or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.
“Audit-Related Fees” consisted of fees billed for assurance and related services by the principal accountant that were reasonably related to the performance of the audit or review of our financial statements and are not reported under the paragraph captioned “Audit Fees” above.
“Tax Fees” consisted of fees billed for professional services rendered by the principal accountant for tax returns preparation.
“All Other Fees” consisted of fees billed for products and services provided by the principal accountant, other than the services reported above under other captions of this Item 14.
Pre-Approval Policies and Procedures
Under the Sarbanes-Oxley Act of 2002, all audit and non-audit services performed by our auditors must be approved in advance by our board of directors to assure that such services do not impair the auditors’ independence from us. In accordance with its policies and procedures, our board of directors pre-approved the audit service performed by Friedman LLP for our financial statements as of and for the year ended December 31, 2021.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
(a) List of Documents Filed as a Part of This Report:
(1) Index to Financial Statements:
Report of Independent Registered Public Accounting Firm(PCAOB ID 711)
Consolidated Balance Sheets as of December 31, 2021 and 2020
Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020
Consolidated Statement of Changes in Deficit for the Years Ended December 31, 2021 and 2020
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020
Notes to Consolidated Financial Statements
(2) Index to Financial Statement Schedules:
All schedules have been omitted because the required information is included in the financial statements or the notes thereto, or because it is not required.
(3) Index to Exhibits:
See exhibits listed under Part (b) below.
(b) Exhibits:
Exhibit No.
Description
3.1
Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form 10 filed on April 19, 2018)
3.2
Certificate of Designation of Series A Cumulative Convertible Preferred Stock (incorporated by reference to Exhibit 2.2 to the Offering Statement on Form 1-A filed on May 9, 2019)
3.3
Certificate of Designation of Series B Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on December 5, 2019)
3.4
Amended and Restated Certificate of Designation of Series C Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 3.4 to the Quarterly Report on Form 10-Q filed on November 15, 2021)
3.5
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form 10 filed on April 19, 2018)
4.1*
Description of Registrant’s Securities
10.1
Form of Subscription Agreement for Series C Preferred Stock Offering (incorporated by reference to Exhibit 4.1 to the Amended Offering Statement on Form 1-A/A filed on June 11, 2021)
10.2*
Form of Property Management Agreement for Mobile Homes
10.3*
Form of Property Management Agreement for Lots
10.4
Purchase and Sale Agreement, dated February 11, 2021, between Gilmer and Sons Mobile Homes Sales and Rentals, Inc. and MHP Pursuits LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on July 30, 2021)
10.5
Assignment of Purchase and Sale Agreement, dated July 16, 2021, between MHP Pursuits LLC and Anderson MHP LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on July 30, 2021)
10.6
Purchase and Sale Agreement, dated May 17, 2021, between Sandlapper Hidden Acres LLC and MHP Pursuits LLC (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on October 8, 2021)
10.7
Assignment of Purchase and Sale Agreement, dated September 14, 2021, among MHP Pursuits LLC, Hidden Oaks MHP LLC and Gvest Hidden Oaks Homes LLC (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on October 8, 2021)
10.8
Purchase and Sale Agreement, dated May 18, 2021, between JMC Enterprise Inc. and MHP Pursuits LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on October 8, 2021)
10.9
Assignment of Purchase and Sale Agreement, dated September 9, 2021, among MHP Pursuits LLC, Capital View MHP LLC and Gvest Capital View Homes LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on October 8, 2021)
10.10
Purchase and Sale Agreement, dated July 1, 2021, between MHP Pursuits LLC and Truman Properties LLC, Birdsong Properties LLC, CCE Properties LLC, and Youngsville MHP LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 27, 2021)
10.11
Assignment of Purchase and Sale Agreement, dated October 22, 2021, between MHP Pursuits LLC and North Raleigh MHP LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on November 8, 2021)
10.12
Purchase and Sale Agreement, dated October 19, 2021, between MHP Pursuits LLC and CHR VIII-PCP MHC Charlotte Dixie, L.L.C., CHR VIII-PCP MHC Charlotte Meadowbrook, L.L.C., and CHR VIII-PCP MHC Charlotte Driftwood, L.L.C. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on January 19, 2022)
10.13
Notice Regarding Commercial Purchase and Sale Agreement, dated November 19, 2021, between MHP Pursuits LLC and CHR VIII-PCP MHC Charlotte Dixie, L.L.C., CHR VIII-PCP MHC Charlotte Meadowbrook, L.L.C., and CHR VIII-PCP MHC Charlotte Driftwood, L.L.C. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on January 19, 2022)
10.14
Reinstatement and First Amendment to Purchase and Sale Agreement, dated December 7, 2021, between MHP Pursuits LLC and CHR VIII-PCP MHC Charlotte Dixie. L.L.C., CHR VIII-PCP MHC Charlotte Dixie Owner, L.L.C., CHR VIII-PCP MHC Charlotte Driftwood, L.L.C., CHR VIII-PCP MHC Charlotte Driftwood Owner, L.L.C., CHR VIII-PCP MHC Charlotte Meadowbrook, L.L.C. and CHR VIII-PCP MHC Charlotte Meadowbrook Owner, L.L.C. (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on January 19, 2022)
10.15
Second Amendment to Purchase and Sale Agreement, dated December 16, 2021, between MHP Pursuits LLC, Charlotte 3 Park MHP LLC, CHR VIII-PCP MHC Charlotte Dixie. L.L.C., CHR VIII-PCP MHC Charlotte Dixie Owner, L.L.C., CHR VIII-PCP MHC Charlotte Driftwood, L.L.C., CHR VIII-PCP MHC Charlotte Driftwood Owner, L.L.C., CHR VIII-PCP MHC Charlotte Meadowbrook, L.L.C. and CHR VIII-PCP MHC Charlotte Meadowbrook Owner, L.L.C. (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on January 19, 2022)
10.16
Purchase and Sale Agreement, dated October 20, 2021, between MHP Pursuits LLC and Gary Coffey (incorporated by reference to Exhibit 10.9 to the Current Report on Form 8-K filed on January 19, 2022)
10.17
Assignment of Purchase and Sale Agreement, dated December 16, 2021, between MHP Pursuits LLC, Carolinas 4 MHP LLC, and Gvest Carolinas 4 Homes LLC (incorporated by reference to Exhibit 10.10 to the Current Report on Form 8-K filed on January 19, 2022)
10.18
Purchase and Sale Agreement, dated October 22, 2021, between MHP Pursuits LLC and Alterri Properties LLC (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed on January 19, 2022)
10.19
First Amendment to Purchase and Sale Agreement, dated December 9, 2021, between MHP Pursuits LLC and Alterri Properties LLC (incorporated by reference to Exhibit 10.12 to the Current Report on Form 8-K filed on January 19, 2022)
10.20
First Amendment to Purchase and Sale Agreement, dated December 20, 2021, between MHP Pursuits LLC and Alterri Properties LLC (incorporated by reference to Exhibit 10.13 to the Current Report on Form 8-K filed on January 19, 2022)
10.21
Assignment of Purchase and Sale Agreement, dated December 22, 2021, between MHP Pursuits LLC, Carolinas 4 MHP LLC, and Gvest Carolinas 4 Homes LLC (incorporated by reference to Exhibit 10.14 to the Current Report on Form 8-K filed on January 19, 2022)
10.22
Purchase and Sale Agreement, dated November 3, 2021, between MHP Pursuits LLC and Billie Jean Faust (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on March 30, 2022)
10.23
Assignment of Purchase and Sale Agreement, dated January 27, 2022, between MHP Pursuits LLC, Sunnyland MHP LLC and Gvest Sunnyland Homes LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on March 30, 2022)
10.24
Promissory Note issued by Pecan Grove MHP LLC to Carolina Trust Bank on October 28, 2016 (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form 10 filed on April 19, 2018)
10.25
Promissory Note issued by Azalea MHP LLC to Carolina Trust Bank on November 10, 2017 (incorporated by reference to Exhibit 10.7 to the Registration Statement on Form 10 filed on April 19, 2018)
10.26
Promissory Note issued by Chatham Pines MHP LLC to The Capitol Life Insurance Company on November 12, 2017 (incorporated by reference to Exhibit 10.9 to the Registration Statement on Form 10 filed on April 19, 2018)
10.27
Promissory Note issued by Lakeview MHP LLC to The Capitol Life Insurance Company on November 17, 2017 (incorporated by reference to Exhibit 10.11 to the Registration Statement on Form 10 filed on April 19, 2018)
10.28
Loan Agreement, dated April 1, 2019, between The Capitol Life Insurance Company and Hunt Club MHP LLC (incorporated by reference to Exhibit 6.22 to the Amended Offering Statement on Form 1-A/A filed on October 15, 2019)
10.29
Promissory Note issued by B&D MHP LLC to Carolina Trust Bank on May 2, 2019 (incorporated by reference to Exhibit 6.24 to the Amended Offering Statement on Form 1-A/A filed on October 15, 2019)
10.30
Promissory Note issued by Crestview MHP LLC to Liberty Bankers Life Insurance Company on July 31, 2019 (incorporated by reference to Exhibit 6.26 to the Amended Offering Statement on Form 1-A/A filed on October 15, 2019)
10.31
Loan Agreement, dated December 20, 2019, between ARC MHP LLC and Liberty Bankers Life Insurance Company (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on December 27, 2019)
10.32
Promissory Note issued by ARC MHP LLC to Liberty Bankers Life Insurance Company on December 20, 2019 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on December 27, 2019)
10.33
Loan Agreement, dated March 17, 2020, between Evergreen MHP LLC and Hunt Mortgage Capital, LLC (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on March 27, 2020)
10.34
Promissory Note issued by Evergreen MHP LLC to Hunt Mortgage Capital, LLC on March 17, 2020 (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on March 27, 2020)
10.35
Business Loan Agreement, dated November 9, 2020, between Maple Hills MHP LLC and Charlotte Metro Federal Credit Union (incorporated by reference to Exhibit 6.15 to the Offering Statement on Form 1-A filed on January 21, 2021)
10.36
Promissory Note issued by Maple Hills MHP LLC to Charlotte Metro Federal Credit Union on November 9, 2020 (incorporated by reference to Exhibit 6.16 to the Offering Statement on Form 1-A filed on January 21, 2021)
10.37
Business Loan Agreement, dated November 9, 2020, between Crestview MHP LLC and Charlotte Metro Federal Credit Union (incorporated by reference to Exhibit 6.22 to the Offering Statement on Form 1-A filed on January 21, 2021)
10.38
Promissory Note issued by Crestview MHP LLC to Charlotte Metro Federal Credit Union on November 9, 2020 (incorporated by reference to Exhibit 6.23 to the Offering Statement on Form 1-A filed on January 21, 2021)
10.39
Amended and Restated Promissory Note issued by Countryside MHP LLC to J & A Real Estate, LLC on December 17, 2020 ($1,700,000) (incorporated by reference to Exhibit 10.10 to the Current Report on Form 8-K filed on March 31, 2021)
10.40
Amended and Restated Promissory Note issued by Countryside MHP LLC to J & A Real Estate, LLC on December 17, 2020 ($1,300,000) (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed on March 31, 2021)
10.41
Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated March 12, 2020, between Countryside MHP LLC and J & A Real Estate LLC (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 27, 2020)
10.42
Loan Agreement, dated December 21, 2020, between Orix Real Estate Capital, LLC and Hunt Club MHP LLC (incorporated by reference to Exhibit 6.19 to the Offering Statement on Form 1-A filed on January 21, 2021)
10.43
Loan Agreement, dated December 24, 2020, between Gvest Homes I LLC and Camargo Investments III, LLC (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on March 31, 2021)
10.44
Supplement No. 1 to Loan Agreement, dated December 31, 2020, between Gvest Homes I LLC and Camargo Investments III, LLC (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on March 31, 2021)
10.45
Promissory Note issued by Gvest Homes I LLC to Camargo Investments III, LLC on December 24, 2020 (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on March 31, 2021)
10.46
Security Agreement, dated December 24, 2020, between Gvest Homes I LLC and Camargo Investments III, LLC (incorporated by reference to Exhibit 10.9 to the Current Report on Form 8-K filed on March 31, 2021)
10.47
Promissory Note issued by Golden Isles MHP LLC to William Howard O’Quinn and Mary W. O’Quinn on March 31, 2021 (incorporated by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q filed on May 17, 2021)
10.48
Promissory Note issued by Gvest Finance LLC to William Howard O’Quinn on March 31, 2021 (incorporated by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q filed on May 17, 2021)
10.49
Loan Agreement, dated July 20, 2021, between Anderson MHP LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on July 30, 2021)
10.50
Promissory Note issued by Anderson MHP LLC to Vanderbilt Mortgage and Finance, Inc. on July 20, 2021 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on July 30, 2021)
10.51
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing, dated July 16, 2021, between Anderson MHP LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on July 30, 2021)
10.52
Security Agreement and Assignment of Rents, dated July 20, 2021, between Gvest Anderson Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on July 30, 2021)
10.53
Guaranty, dated July 20, 2021, between Gvest Anderson Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on July 30, 2021)
10.54
Floorplan Credit and Security Agreement, dated July 26, 2021, between Gvest Finance LLC and Triad Financial Services, Inc. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on August 27, 2021)
10.55
Community Rental Homes Credit and Security Agreement, dated July 26, 2021, between Gvest Finance LLC and Triad Financial Services, Inc. (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on August 27, 2021)
10.56
Credit and Security Supplemental Agreement, dated July 26, 2021, between Gvest Finance LLC and Triad Financial Services, Inc. (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on August 27, 2021)
10.57
Loan Agreement, dated September 10, 2021, among Capital View MHP LLC, Gvest Capital View Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on October 8, 2021)
10.58
Promissory Note issued by Capital View MHP LLC and Gvest Capital View Homes LLC to Vanderbilt Mortgage and Finance, Inc. dated September 10, 2021 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on October 8, 2021)
10.59
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing, dated September 9, 2021, between Capital View MHP LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on October 8, 2021)
10.60
Loan Agreement, dated September 16, 2021, among Hidden Oaks MHP LLC, Gvest Hidden Oaks Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.9 to the Current Report on Form 8-K filed on October 8, 2021)
10.61
Promissory Note issued by Hidden Oaks MHP LLC and Gvest Hidden Oaks Homes LLC to Vanderbilt Mortgage and Finance, Inc. dated September 16, 2021 (incorporated by reference to Exhibit 10.10 to the Current Report on Form 8-K filed on October 8, 2021)
10.62
Security Agreement and Assignment of Rents, dated September 16, 2021, among Hidden Oaks MHP LLC, Gvest Hidden Oaks Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed on October 8, 2021)
10.63
Loan Agreement, dated October 25, 2021, between North Raleigh MHP LLC and Liberty Bankers Life Insurance Company (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on November 8, 2021)
10.64
Promissory Note issued by North Raleigh MHP LLC to Liberty Bankers Life Insurance Company on October 25, 2021 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on November 8, 2021)
10.65
Assignment of Leases, Rents, and Profits, dated October 25, 2021, between North Raleigh MHP LLC and Liberty Bankers Life Insurance Company (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on November 8, 2021)
10.66
Deed of Trust, Security Agreement and Fixture Filing with Assignment of Rents, dated October 25, 2021, between North Raleigh MHP LLC and Liberty Bankers Life Insurance Company (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on November 8, 2021)
10.67
Limited Guaranty, dated October 25, 2021, between Manufactured Housing Properties Inc. and Liberty Bankers Life Insurance Company (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on November 8, 2021)
10.68
Loan Agreement, dated October 22, 2021, between Manufactured Housing Properties Inc. and Metrolina Loan Holdings LLC (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on November 8, 2021)
10.69
Promissory Note issued by Manufactured Housing Properties Inc. to Metrolina Loan Holdings LLC on October 22, 2021 (incorporated by reference to Exhibit 10.9 to the Current Report on Form 8-K filed on November 8, 2021)
10.70
Loan Agreement, dated November 12, 2021, between Springlake MHP LLC and FirstBank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on November 22, 2021)
10.71
Promissory Note issued by Springlake MHP LLC to FirstBank on November 12, 2021 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on November 22, 2021)
10.72
Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated November 12, 2021, by Springlake MHP LLC in favor of FirstBank (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on November 22, 2021)
10.73
Assignment of Management Agreement, dated November 12, 2021, among Mobile Homes Rentals LLC, Springlake MHP LLC and FirstBank (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on November 22, 2021)
10.74
Assignment of Ownership Interests, dated November 12, 2021, by Manufactured Housing Properties Inc. in favor of FirstBank (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on November 22, 2021)
10.75
Guaranty, dated November 12, 2021, by Manufactured Housing Properties Inc. in favor of FirstBank (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on November 22, 2021)
10.76
Loan and Security Agreement, dated November 12, 2021, among Gvest Springlake Homes LLC, Gvest Finance LLC, Raymond M. Gee and FirstBank (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on November 22, 2021)
10.77
Promissory Note issued by Gvest Springlake Homes LLC to FirstBank on November 12, 2021 (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on November 22, 2021)
10.78
Assignment of Management Agreement, dated November 12, 2021, among Mobile Homes Rentals LLC, Gvest Springlake Homes LLC and FirstBank (incorporated by reference to Exhibit 10.9 to the Current Report on Form 8-K filed on November 22, 2021)
10.79
Assignment of Ownership Interests, dated November 12, 2021, by Gvest Finance LLC in favor of FirstBank (incorporated by reference to Exhibit 10.10 to the Current Report on Form 8-K filed on November 22, 2021)
10.80
Guaranty, dated November 12, 2021, by Gvest Finance LLC in favor of FirstBank (incorporated by reference to Exhibit 10.11 to the Current Report on Form 8-K filed on November 22, 2021)
10.81
Promissory Note issued by Charlotte 3 Park MHP LLC to Pacific Current Partners LLC on December 21, 2021 (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on January 19, 2022)
10.82
Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated December 21, 2021, between Charlotte 3 Park MHP LLC and Pacific Current Partners LLC (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on January 19, 2022)
10.83
Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated December 21, 2021, between Charlotte 3 Park MHP LLC and Pacific Current Partners LLC (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on January 19, 2022)
10.84
Mortgage and Security Agreement, dated December 21, 2021, between Charlotte 3 Park MHP LLC and Pacific Current Partners LLC (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on January 19, 2022)
10.85*
Revolving Promissory Note, dated December 27, 2021, between Manufactured Housing Properties Inc and Gvest Real Estate Capital LLC
10.86*
Loan Agreement, dated December 29, 2021, between Carolinas 4 MHP LLC and Vanderbilt Mortgage and Finance Inc.
10.87
Promissory Note issued by Carolinas 4 MHP LLC to Vanderbilt Mortgage and Finance Inc. on December 29, 2021 (incorporated by reference to Exhibit 10.16 to the Current Report on Form 8-K filed on January 19, 2022)
10.88
Deed of Trust, dated December 29, 2021, between Carolinas 4 MHP LLC and Vanderbilt Mortgage and Finance Inc. (incorporated by reference to Exhibit 10.17 to the Current Report on Form 8-K filed on January 19, 2022)
10.89
Security Agreement and Assignment of Rents, dated December 29, 2021, between Carolinas 4 MHP LLC and Vanderbilt Mortgage and Finance Inc. (incorporated by reference to Exhibit 10.18 to the Current Report on Form 8-K filed on January 19, 2022)
10.90
Assignment of Ownership Interests, dated December 29, 2021, between Carolinas 4 MHPC LLC and Vanderbilt Mortgage and Finance Inc. (incorporated by reference to Exhibit 10.19 to the Current Report on Form 8-K filed on January 19, 2022)
10.91
Loan Agreement, dated January 31, 2022, between Sunnyland MHP LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on March 30, 2022)
10.92
Promissory Note issued by Sunnyland MHP LLC to Vanderbilt Mortgage and Finance, Inc. on January 31, 2022 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on March 30, 2022)
10.93
Deed of Trust, dated December 29, 2021, between Sunnyland MHP LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on March 30, 2022)
10.94
Security Agreement and Assignment of Rents, dated January 31, 2022, between Gvest Sunnyland Homes LLC and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on March 30, 2022)
10.95
Assignment of Ownership Interests, dated January 31, 2022, between Manufactured Housing Properties Inc. and Vanderbilt Mortgage and Finance, Inc. (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K filed on March 30, 2022)
10.96†
Manufactured Housing Properties Inc. Stock Compensation Plan (incorporated by reference to Exhibit 6.21 to the Offering Statement on Form 1-A filed on May 9, 2019)
14.1
Code of Ethics and Business Conduct (incorporated by reference to Exhibit 15.1 to the Offering Statement on Form 1-A filed on May 9, 2019)
21.1*
List of subsidiaries of the registrant
31.1*
Certifications of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*
Certifications of Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*
Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*
Certification of Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* Filed herewith
† Executive compensation plan or arrangement