Deposits and Costs Coincident to Acquisition of Land for Development

12 Months Ended

Dec. 31, 2023

Deposits and Costs Coincident to Acquisition of Land for Development

3- Deposits and Costs Coincident to Acquisition of Land for Development

Deposits and costs coincident to acquisition of land for development are summarized as follows:

	December 31, 2023		December 31, 2022

Lacey Township, New Jersey, Pines property:

Cost to acquire property		1,583,012		1,692,178
Site engineering, permits, and other costs		809,245		809,245
Total Pines property		2,392,257		2,501,423

Other deposits:
Louis Avenue, Bayville, New Jersey-17 units		619,264		619,264
Berkeley Terrace – Bayville, New Jersey 70 units		2,325,401		2,506,990
Autumn Run – Clayton – New Jersey – 62 units		1,329,125		411,523
Other		139,885		139,885
Total other deposits		4,413,675		3,677,662

Total	$	6,805,932	$	6,179,085

Properties currently owned and in the development stage

Berkeley Terrace – Bayville, NJ – 70 approved townhome units

The Company is in title to this property and finalized an infrastructure and construction finance facility which closed on 3/31/23. This facility included refinancing the land debt, and securing funding for a large portion of the site construction, as well as funding the first building of 10 townhomes. The amount of the facility is $4,670,000.

The Company began infrastructure work on the property in June of 2023, with land clearing completed and the site stabilized for soils erosion control. Sanitary sewer, water and drainage has been installed in Phase 1 and the majority of Phase 2.

The first 5 building pads have been compacted and completed.

Base paving has been completed and 74% of the entire site has been improved.

The vertical construction of Building 7 will begin in December of 2023.

The Company has entered into an agreement with a national builder to deliver improved building sites for this project. It is in the Company’s opinion that the financial advantages inherent in the sale of a portion of the improved lots in this development outweigh the advantages of building and selling or leasing the entire development.

Lacey Township, New Jersey, “Dream Homes at the Pines”

Dream Homes currently owns a parcel approved for 68 new townhomes in Ocean County NJ, of which 54 are market rate and 14 are affordable housing. The acquisition was made in June of 2021. This property has received final approvals, Department of Transportation approval, CAFRA approval, MUA, County, Fire and other outside agency approvals. This development is scheduled to begin construction in 2023.

The Company acquired this property on June 29, 2021 and is currently in title.

Preliminary approval was granted in 2021 and Final approval was granted in fall of 2022.

The Company has secured permanent funding to install infrastructure and vertical construction for this project and has retired the previous lender.

Site bonds, escrows and fees have been posted, with clearing having started in the 4^th quarter of 2023.

Louis Avenue – Bayville, NJ – 17 townhome units

The Company was heard before the Berkeley Township Planning Board on October 3, 2020 and the planning board awarded preliminary approvals for 17 townhome units.

The Company acquired this property on August 4, 2021.

The Company received Final approvals on August 8, 2021.

Autumn Run – Gloucester County

On December 7, 2018, the Company signed a contract to purchase a property in Gloucester County, NJ, which has been approved for 62 units of age-restricted manufactured housing. The property is currently in the final approval stage. An application was made to the DEP for a wetlands letter of interpretation, which was approved as proposed. Further action before the planning board is pending due to delays caused by township closures due to Covid-19. The Company had a virtual workshop meeting on September 15, 2020 and an additional virtual meeting was conducted on November 17, 2020.

The application for a use variance was heard on May 24, 2021 and the variance was approved.

The Company applied for preliminary and final site plan approval and was heard at the April 2023 planning board meeting. Preliminary approval was granted, and the Company is in the process of preparing to submit for finals in the 4^th quarter of 2023.

The Company took title to this property in early September of 2023. It is the Company’s intention to develop this property, sell the individual manufactured homes and continue to own operate the development as a land lease rental property.

These new developments which the Company owns represent a significant value in new construction. This work will occur over the next 3-4 years and is in addition to the custom spot lot & elevation/renovation division of the business. Management is very positive about these new developments, as well as the cutting-edge construction technologies being employed to create healthier, safer, more energy efficient homes.

Mortgages on Properties Held for Development:

	December 31, 2023		December 31, 2022
Edisto Loan Fund, LLC	$	-	$	1,388,563
Lynx Asset Services, LLC		750,000		1,725,000
Karbar, LLC		350,000		-
Briney Ave, LLC		1,900,000		-
Anchor Loans, LP-Berkely		2,506,049		-
AC Development, LLC		328,479		311,479
AVB Development		323,537		323,537
Total mortgages payable		6,158,065		3,748,579
Less current portion		-		(3,113,563	)
Long-term portion	$	6,158,065	$	635,016

Dream Homes & Development Corp. 10-K