13. Commitments and Contingencies

Construction Contracts. As of March 31, 2019, we estimate the total additional cost to complete the five consolidated projects currently under construction to be approximately $364.0 million. We expect to fund this amount through a combination of one or more of the following: cash flows generated from operations, draws on our unsecured credit facility, the use of debt and equity offerings under our automatic shelf registration statement, proceeds from property dispositions, equity issued from our 2017 ATM program, other unsecured borrowings or secured mortgages.

Other Commitments and Contingencies. In the ordinary course of our business, we issue letters of intent indicating a willingness to negotiate for acquisitions, dispositions, or joint ventures and also enter into arrangements contemplating various transactions. Such letters of intent and other arrangements are non-binding as to either party unless and until a definitive contract is entered into by the parties. Even if definitive contracts relating to the purchase or sale of real property are entered into, these contracts generally provide the purchaser with time to evaluate the property and conduct due diligence, during which periods the purchaser will have the ability to terminate the contracts without penalty or forfeiture of any deposit or earnest money. There can be no assurance definitive contracts will be entered into with respect to any matter covered by letters of intent or we will consummate any transaction contemplated by any definitive contract. Furthermore, due diligence periods for real property are frequently extended as needed. An acquisition or sale of real property becomes probable at the time the due diligence period expires and the definitive contract has not been terminated. We are then at risk under a real property acquisition contract, but generally only to the extent of any earnest money deposits associated with the contract, and are obligated to sell under a real property sales contract. At March 31, 2019, we had approximately $0.8 million in earnest money deposits of which $0.4 million was non-refundable for potential acquisitions of land in our condensed consolidated balance sheets. Of this $0.8 million in earnest money, $0.3 million was related to the acquisition of land in Charlotte, North Carolina which was completed in April 2019.

Lease Commitments. At March 31, 2019, we had long-term leases primarily related to office facilities. Rental expense, per ASC 842 is inclusive of lease payments and variable lease expenses, totaled approximately $1.1 million for the three months ended March 31, 2019. Rental expense, per ASC 840, was approximately $1.0 million for the three months ended March 31, 2018. The following is a summary of maturities of lease liabilities as of March 31, 2019:



(in millions)
Year ended December 31,	Operating Leases
Remainder of 2019	$	2.4
2020	3.4
2021	3.2
2022	2.8
2023	2.7
Thereafter	4.9
Less: discount for time value	(2.6		)
Lease liability as of March 31, 2019	$	16.8

Pursuant to ASC 840, the minimum annual rental commitments as of December 31, 2018 for the years ending December 31, 2019 through 2023 are approximately $2.9 million, $3.0 million, $3.1 million, $2.7 million and $2.6 million, respectively, and approximately $4.5 million in the aggregate thereafter.

Investments in Joint Ventures. We have entered into, and may continue in the future to enter into, joint ventures or partnerships, including limited liability companies, through which we own an indirect economic interest in less than 100% of the community or land owned directly by the joint venture or partnership. Our decision whether to hold the entire interest in an apartment community or land ourselves, or to have an indirect interest in the community or land through a joint venture or partnership, is based on a variety of factors and considerations, including: (i) our projection, in some circumstances, that we will achieve higher returns on our invested capital or reduce our risk if a joint venture or partnership vehicle is used; (ii) our desire to diversify our portfolio of investments by market; (iii) our desire at times to preserve our capital resources to maintain liquidity or balance sheet strength; and (iv) the economic and tax terms required by a seller of land or of a community, who may prefer or who may require less payment if the land or community is contributed to a joint venture or partnership. Investments in joint ventures or partnerships are not limited to a specified percentage of our assets. Each joint venture or partnership agreement is individually negotiated, and our ability to operate or dispose of land or of a community in our sole discretion may be limited to varying degrees in our existing joint venture agreements and may be limited to varying degrees depending on the terms of future joint venture agreements.