Hudson Housing Capital LLC

Item 5: Fees and Compensation

HHC’s compensation for its advisory services is negotiated in the context of each Fund’s circumstances.
HHC does not have a fixed fee schedule.

Generally, the subsidiary of HHC that acts as the general partner of each Fund has the authority to
deduct compensation payable to HHC from the assets of the Fund as and when due in accordance with
the terms of each Fund’s partnership agreement. Certain components of HHC’s fees are payable upon
the occurrence of specific events. Other components of HHC’s compensation are payable annually.

HHC establishes a third party custodial relationship for the Property Partnership interests of each Fund,
as well as for the cash and liquid securities assets (if any) of each Fund. Custodial charges assessed by
the third party custodian may be charged to the Fund. Property Partnership interests are not generally
traded, and therefore Funds do not incur brokerage or other transaction expenses. When requested by
an Investor, HHC may facilitate a transfer of a Property Partnership Interest. In such cases, any
compensation payable to HHC is negotiated with the applicable Investor and is disclosed to and agreed
by the Investor.

Compensation to HHC is not payable in advance.

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Neither HHC nor its supervised persons accepts compensation for the sale of securities or other
investment products such as asset-based sales charges or service fees from the sale of mutual funds. To
the extent that, when requested by an Investor, HHC facilitates a transfer of a Property Partnership
Interest from one Investor to another, HHC’s potential conflict of interest is disclosed in writing, each
Investor is represented by counsel and HHC’s compensation is agreed to by each Investor.

Item 7: Types of Clients

HHC provides investment advisory services to the Funds. Each Fund is owned solely by Investors each of
which is a “qualified institutional buyer” as defined in Rule 144A promulgated under the Securities Act of
1933, as amended.