MONA REAL ESTATE HOLDINGS

THE ORGANIZATION EXISTS SOLELY TO PROVIDE SUPPORT TO MUSEUM OF NEBRASKA ART (MONA) AND ITS PROGRAMS, INCLUDING THE PROJECT. THE ORGANIZATION'S FACILITATION OF THE PROJECT WILL RELIEVE MONA OF THE BURDEN OF FINANCING ALL CONSTRUCTION COSTS FOR THE PROJECT, BY UTILIZING THE NMTC PROGRAM (AS DESCRIBED BELOW). IN CONDUCTING THE PROJECT, THE ORGANIZATION IS ACTING TO MATERIALLY ASSIST MONA, AND IS ALLOWING RESOURCES OF MONA THAT WOULD OTHERWISE BE DEVOTED TO THE PROJECT TO BE REALLOCATED ELSEWHERE. FURTHER, THE ORGANIZATION'S ACTIVITIES WILL ASSIST MONA IN ADVANCING EDUCATIONAL AND CHARITABLE PURPOSES BY FACILITATING THE FUNDING AND CONSTRUCTION OF THE PROJECT, WHICH WILL ULTIMATELY HOUSE AN ART MUSEUM FOR THE BENEFIT OF THE GENERAL PUBLIC. THE ORGANIZATION WILL OBTAIN FUNDING CONSTRUCTION OF THE PROJECT BY OBTAINING LOW-INTEREST LOANS IN THE FORM OF ''QUALIFIED LOW-INCOME COMMUNITY INVESTMENTS'' THROUGH THE FEDERAL NEW MARKET TAX CREDITS PROGRAM (THE ''NMTC PROGRAM''). THE NMTC PROGRAM IS A FEDERAL ECONOMIC INCENTIVE TO ENCOURAGE INVESTMENT IN LOW-INCOME COMMUNITIES. THE FUNDS OBTAINED BY THE ORGANIZATION THROUGH THE NMTC PROGRAM WILL BE USED TO DEVELOP AND CONSTRUCT THE PROJECT. THE ORGANIZATION WILL SATISFY THE REQUIREMENTS OF A ''QUALIFIED ACTIVE LOW INCOME BUSINESS'' (ALSO KNOWN AS A ''QALICB'') UNDER THE NMTC PROGRAM. THE NMTC PROGRAM IS AVAILABLETO THE ORGANIZATION IF IT SATISFIES THE APPLICABLE REQUIREMENTS OF A QALICB UNDER SECTION 45D OF THE CODE. IT IS ANTICIPATED THAT THE FINANCING SUBSIDY PROVIDED BY THE NMTC PROGRAM WILL LOWER DEVELOPMENT COSTS OF THE PROJECT SIGNIFICANTLY-- BY AS MUCH AS $2,730,000. THE AVAILABILITY OF THIS FINANCING WILL LESSEN MONA'S FINANCIAL BURDEN FOR THE PROJECT.ONE HUNDRED PERCENT OF THE ORGANIZATION'S TOTAL TIME WILL BE DEVOTED TO THE PROJECT. ONE HUNDRED PERCENT OF THE ORGANIZATION'S TOTAL EXPENSES WILL BE ALLOCATED TO THE PROJECT.