MARION SENIOR LIVING INC

THE ORGANIZATION, FORMED UNDER THE NOT-FOR-PROFIT STATUTES OF THE STATE OF IOWA, OWNS AND OPERATES A 40-UNIT COMMUNITY KNOWN AS MOUNDVIEW MANOR LOCATED IN MARION, IOWA, WHICH PROVIDES HOUSING FOR LOW INCOME ELDERLY PERSONS, INCLUDING THOSE WITH PHYSICAL DISABILITIES, PURSUANT TO SECTION 202 OF THE NATIONAL HOUSING ACT.THE ORGANIZATION ENTERED INTO A REGULATORY AGREEMENT WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"). PURSUANT TO THE REGULATORY AGREEMENT, THE ORGANIZATION MUST MAINTAIN 39 OF ITS 40 UNITS AS AFFORDABLE TO LOW INCOME ELDERLY PERSONS. THE ORGANIZATION RECEIVES RENT SUBSIDIES THROUGH A PROJECT RENTAL ASSISTANCE CONTRACT ("PRAC") WITH HUD. THE PRAC PROVIDES SUBSIDIES TO ELIGIBLE RESIDENTS TO ENABLE SUCH RESIDENTS TO LIVE IN SAFE, ADEQUATE HOUSING FACILITIES THEY COULD NOT OTHERWISE AFFORD. THE PRAC PROVIDES SUBSIDIES FOR 39 OF THE COMMUNITY'S 40 UNITS.