COMMITMENTS AND CONTINGENCIES Bickford As of March 31, 2014 , our subsidiary PropCo had purchased land and begun construction on one assisted living facility having a maximum cost of $9,000,000 . Our costs incurred to date, including land, were $3,958,000 . The facility is expected to open by the end of the third quarter of 2014. In February 2014 NHI entered into a commitment of $2,785,000 on a letter of credit for the benefit of our joint venture partner, an affiliate of Bickford, which holds a minority interest in PropCo. Chancellor In October 2013, we entered into a $7,500,000 commitment to build a 46 -unit free-standing assisted living and memory care community, expanding our Linda Valley senior living campus in Loma Linda, California. We began construction during the first quarter of 2014 and had funded $521,000 as of March 31, 2014 . The initial lease term is for 15 years at an annual rate of 9% plus a fixed annual escalator. NHI purchased the Linda Valley campus in 2012 and leased it to Chancellor Health Care, who has been operating the campus since 1993. We also committed to provide up to $500,000 for renovations and improvements related to our recent acquisition of a 63 -unit senior housing community in Baltimore, Maryland which we have leased to Chancellor Health Care. We began renovations during the first quarter of 2014 and had funded $109,000 as of March 31, 2014 . We receive rent income on funds advanced for both construction projects. Discovery As a lease inducement, we have a contingent commitment to fund a series of payments up to $2,500,000 in connection with our September 2013 lease to Discovery of a senior living campus in Rainbow City, Alabama. Discovery would earn the contingent payments upon obtaining and maintaining a specified lease coverage ratio. As earned, the payments would be due in installments of $750,000 in each of years two and three of the lease with the residual due in year four. As of March 31, 2014 , the likelihood that we would incur the contingent payments was not considere