PNC TC LLC

Item 5. Fees and Compensation
5.1. Compensation of the Firm
         The Firm earns fees for providing investment advisory and management services to the
         Funds under an Investment Management Agreement that is entered into by the Firm, the
         applicable Fund and its respective Fund Managing Member (the “Investment Management
         Fee”). Under this agreement, the Firm is entitled to receive all or a portion of the fees
         payable to the Fund Managing Member, as agreed upon between the Firm and such Fund
         Managing Member. Investment Management Fees are paid either directly by a Fund to the
         Firm or indirectly through an allocation from an affiliate of the Fund’s Managing Member.

  Under the CRA rules as currently in effect, federal regulators assess and score a bank’s record of helping to meet the
credit needs of the communities in which such bank operates. On October 24, 2023, the OCC, FDIC, and the Federal
Reserve issued a final rule to amend the regulations implementing the CRA, which requires the agencies to assess a
bank’s record of meeting the credit needs of the communities in which they do business, including low- and moderate-
income neighborhoods. The rule significantly expands the number of areas in which a bank is evaluated, materially
changes the tests used to evaluate the bank in those areas and expands the data a bank must collect and report. Most
of the final rule will be in effect as of January 1, 2026. The new CRA regulations should be carefully reviewed and
considered by each prospective Investor. Investors should consult their counsel concerning potential benefits
available, if any, under CRA.

      Pursuant to each Fund’s Investment Management Agreement, the Firm is also entitled to
      reimbursement of expenses incurred in connection with providing investment advisory and
      management services to the Funds, to the extent that the Fund Managing Member is entitled
      to reimbursement for such expenses. The Fund Agreements provide that the Funds will
      not pay compensation to the Firm or any affiliate that exceeds the amounts payable by the
      Fund to the Fund Managing Member under the Fund Agreement.
      All fees paid by a Fund are set forth in each Fund Agreement and, for multi-investor funds,
      described in the PPM. A discussion of the fees earned by the Firm and its affiliates (which
      indirectly may be paid to the Firm) for each type of Fund based upon recent Fund
      Agreements is set forth below. The fees for single investor funds vary from Fund to Fund
      and, therefore, investors in such Funds should consult the applicable Fund Agreement.
5.2. LIHTC Funds
      Below is a description of certain of the fees and expenses that are frequently paid by a
      LIHTC Fund, as detailed in the operative Fund Agreement:
      A. Acquisition Fee
        LIHTC Funds pay an acquisition fee to the Firm, the Fund Managing Member or another
        Firm affiliate for selecting, evaluating, structuring, negotiating and closing the LIHTC
        Fund’s investments in LIHTC Operating Entities. The acquisition fee is paid from the
        gross proceeds of the offering of units in a LIHTC Fund and is set forth in the Fund
        Agreement. The acquisition fee is generally composed of a closing acquisition fee and
        a deferred acquisition fee. The portion of the acquisition fee payable at closing is
        payable from investor’s capital contributions upon the closing of the LIHTC Fund’s
        investment in each LIHTC Operating Entity. The deferred portion of the acquisition fee
        is deferred for a specific period of time and is payable only if the LIHTC Fund achieves
        its targeted yield and the LIHTC Operating Entities in which the Fund has invested have
        achieved certain milestones. If the target yield is not achieved, the deferred acquisition
        fee is not paid to the Firm or any of its affiliates, and such fee will be either (i) waived
        in its entirety, or (ii) paid into a reserve to be used for additional Operating Entity
        investments or applied to the Project Needs Reserve.
      B. Asset Management Fee
        LIHTC Funds are also generally responsible for paying an asset management fee to the
        Firm, the Fund Managing Member or another Firm affiliate for services related to the
        day-to-day operations of the LIHTC Fund and its investments in LIHTC Operating
        Entities. The asset management fee is calculated one of two ways as set forth in a
        particular LIHTC Fund’s Fund Agreement: either (i) as a fixed amount per LIHTC
        Operating Entity, or (ii) as a percentage of the total amount of capital commitments by
        the investors of the LIHTC Fund. The asset management fee is typically paid annually,
        and is payable from a LIHTC Fund’s working capital reserve, which is established at

            the closing of the Fund and is comprised of capital contributions from investors and
            receipts of payments of investor services fees paid to a LIHTC Fund from the LIHTC
            Operating Entities. 2 To the extent the working capital reserve does not have sufficient
            funds to pay the asset management fee, the asset management fee is payable from other
            sources as more fully described in the Fund Agreement and other transaction documents.
         C. Sale/Refinancing Fee
            LIHTC Funds typically pay a disposition fee (in some governing documents referred to
            as a “sale/refinancing fee”) to the Firm, the Fund Managing Member or another Firm
            affiliate for services rendered in evaluating and effecting a sale or refinancing of a
            LIHTC Property. Such a fee is equal to a percentage of the proceeds realized upon the
            sale or refinancing transaction and is payable from net cash proceeds. In addition, the
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Item 7. Types of Clients
The Firm provides investment management services to LIHTC Funds, Preservation Funds, NMTC
Funds and HTC Funds. The Funds are investment vehicles that are not “investment companies”
under the Investment Company Act. Investment advice is provided directly to the Funds and not
individually to investors in a Fund.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act and the Investment Company Act. Investors in the Funds are generally “qualified
purchasers” as defined in the Investment Company Act, and may include, among others, banks
and thrift institutions.
The Firm does not have a minimum size for a Fund, but minimum investment commitments are
generally established for investors in a Fund. The Fund Managing Member may in its sole
discretion permit investments below the minimum amounts set forth in the Fund Agreement.