Understanding La Casa Norte’s 2024 Net Asset Change

As part of the New Markets Tax Credit (NMTC) unwind completed in 2024, the investment once recorded on La Casa Norte’s books, approximately $12.5 million, was effectively forgiven, along with the related external debt held by the Title Holding Corporation.

From an accounting perspective, the transaction was reflected differently across the two entities. This accounting treatment reflects a reallocation of net assets within the organization’s overall structure resulting from the NMTC unwind. It does not represent an operating loss or a deterioration in La Casa Norte’s financial health.

Because Form 990 reports only the activities of the 501(c)(3) entity, it does not include the related Title Holding Corporation. As a result, the offsetting gain recognized by the Title Holding Corporation is not reflected on La Casa Norte’s Form 990. When the entities are consolidated for financial statement purposes, however, the expense and corresponding income eliminate each other, making the overall financial impact to the organization essentially neutral.

The decline in net assets reported on the 2024 Form 990 is therefore the result of a one-time accounting transaction associated with the NMTC unwind, rather than operating performance or cash losses. La Casa Norte’s consolidated audited financial statements provide the most complete representation of the organization’s financial position.