SOUTHSTAR HOUSING INC

HOUSING WAS FORMED IN 2006 FOR THE DEVELOPMENT AND OPERATION OF A DWELLING HOME FOR PERSONS WITH DEVELOPMENTAL DISABILITIES. THIS PROJECT, REFERRED TO AS THE CANDICE HOUSE, HAS SIX BEDROOMS AND HOUSES SIX ADULT WOMEN WHO ARE DEVELOPMENTALLY DELAYED. HOUSING IS OPERATED UNDER SECTION 811 OF THE NATIONAL HOUSING ACT AND REGULATED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) WITH RESPECT TO RENTAL CHARGES AND OPERATING METHODS. HOUSING'S MAJOR PROGRAM IS ITS SECTION 811 CAPITAL ADVANCE. HOUSING HAS ALSO ENTERED INTO A PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) WITH HUD TO PROVIDE RENT SUBSIDIES, AND AS A RESULT, A SIGNIFICANT PORTION OF THE PROJECT'S RENTAL INCOME IS RECEIVED FROM HUD. THE PROJECT IS MANAGED BY KMG MANAGEMENT LLC UNDER AN AGREEMENT APPROVED BY HUD WHICH PROVIDES FOR A MONTHLY MANAGEMENT FEE.