COSMO & LEWIS ESTATES INC

THE NOT FOR PROFIT CORPORATION WAS ORGANIZED TO CONSTRUCT, OWN AND OPERATE A 14 UNIT APARTMENT COMMUNITY FOR THE ELDERLY, HANDICAPPED AND DISABLED IN RALEIGH, NC KNOWN AS COSMO AND LEWIS ESTATES. IT WAS ORGANIZED PURSUANT TO SECTION 202 OF THE NATIONAL HOUSING ACT AS AMENDED AND HAS ENTERED INTO THE STANDARD HUD REGULATORY AGREEMENTS, WHICH GOVERN THE OPERATION OF THE COMMUNITY, WITH THE FEDERAL HOUSING ADMINISTRATION SECTION OF HUD. A HAP CONTRACT PROVIDES RENT ASSISTANCE FOR LOW INCOME FAMILIES (OR PERSONS) UNDER THE SECTION 8 PROGRAM OF THE NATIONAL HOUSING ACT, WHILE HUD PAYS THE BALANCE OF THE RENT.