SIMADON CORPORATION

SIMADON CORPORATION (AN INDIANA NOT-FOR-PROFIT CORPORATION) (THE CORPORATION) WAS ORGANIZED TO CONSTRUCT, OWN AND OPERATE A 15 UNIT GROUP HOME FOR PERSONS DISABLED AS A RESULT OF A CHRONIC ILLNESS. RESIDENTS SUFFERING FROM SERIOUS MENTAL ILLNESS ARE PROVIDED PLACES TO LIVE WHICH OFFER A 24 HOUR SUPPORTIVE ENVIRONMENT. THE FACILITY PROVIDES SUPPORT, MEDICATION MONITORING, AND LIFE SKILLS ENHANCEMENT. LOCATED IN SOUTH BEND, INDIANA IT IS KNOWN AS RIVER COURT APARTMENTS AND OPERATES PURSUANT TO SECTION 811 OF THE NATIONAL AFFORDABLE HOUSING ACT, AS AMENDED. THE CORPORATION HAS EXECUTED A REGULATORY AGREEMENT WITH HUD WHICH GOVERNS THE OPERATION OF THE COMMUNITY WITH THE FEDERAL HOUSING ADMINISTRATION (FHA) SECTION OF HUD. THE CORPORATION HAS ALSO ENTERED INTO A PROJECT RENTAL ASSISTANCE CONTRACT (PRAC CONTRACT) WITH HUD. THE PRAC CONTRACT IS A RENT ASSISTANCE PROGRAM FOR LOW-INCOME FAMILIES (OR PERSONS) AS PROVIDED BY THE SECTION 8 PROGRAM OF THE NATIONAL HOUSING ACT.