Lantern Hill Inc.

“As of january 1, 2014, lantern hill, inc. Entered into a management and marketing agreement with erickson living management, llc ("elm") for elm to provide such services on behalf of lantern hill, inc. To manage and market the community. Elm is a maryland limited liability company which operates and manages large scale continuing care retirement communities. The management agreement complies with rev. Proc. 97-13. The organization and the manager amended the management and marketing agreement to revise certain provisions relating to the market testing of the management fees and to replace the contract execution policy with an updated version of the policy. During 2015, the community was still under construction so the delegation of control over management duties has not yet gone into effect. Chris rathmann is listed in part vii, as a non-compensated officer of the filing organization. His duties are considered performed pro bono. Patricia swan, executive director, theresa palladino, director of finance, and jennifer kohan, personal moving consultant, are leased employees from the management company. The filing organization reimburses the management company for their compensation which is reported on form 990, part vii, section a.”

“During 2015, the organization approved amended and restated bylaws providing additional authority to the organization's member, national senior campuses, inc., ("nsc"), including certain reserved powers and identifying certain powers that are shared between nsc and the organization. The changes will enable nsc as a supporting organization and the organization as a supported organization (as well as nsc's other supported organizations) to pursue their charitable missions in a more efficient, effective and coordinated manner. The amended & restated bylaws went into effect on november 17, 2015.”

“The organization is a nonstock corporation. It has a sole member, national senior campuses, inc., which is itself tax-exempt under section 501(c)(3) and is classified as a type iii functionally integrated supporting organization under section 509(a)(3).”

“The sole member, national senior campuses, inc., appoints the organization's board of directors.”

“The sole member, national senior campuses, inc., has certain reserve powers that are set forth in the bylaws of the organization. These include the right to approve certain changes to the organization's articles of incorporation and bylaws.”

“There are no such committees at this time.”

“The board appoints a committee from among its directors as well as the directors from one or more related entities to oversee the preparation of form 990. The board chair has the responsibility to review form 990 prior to its filing or to designate another board member to review the form. The full board is given the opportunity to review the final version of form 990 before it is filed and ask questions of the committee or the reviewer regarding the form. The board chair designates an officer to sign form 990.”

“Lantern hill inc.'s conflict of interest policy covers all directors and officers. Each covered person completes a conflict of interest disclosure statement annually and as potential conflicts arise during the year. These statements are reviewed by the board chair. If a conflict arises, the board of directors or a committee of disinterested directors will determine whether a conflict actually exists. A covered person may not participate in any discussion or debate by the board but may answer questions or provide clarifying information unless any board member objects.”

“The board has approved a directors' compensation policy which establishes the process by which all director compensation is determined. Officers serve without compensation. A review of the directors' compensation is conducted each fiscal year. Compensation is approached on an overall basis and the total value of all forms of compensation is established and monitored. An independent compensation consultant is periodically retained to perform an analysis of lantern hill, inc.'s compensation using comparables of both for-profit and non-profit peers. A committee of the nsc board reviews the consultant's report and makes a recommendation to the organization as to appropriate compensation of directors. The full board has access to lantern hill, inc.'s consultant's report and an opportunity to question the consultant about the process, metrics, and comparables that were used in determining the recommended compensation. The board then votes on the compensation recommendations and a contemporaneous record is made of the meeting and the vote. The consultant review was last undertaken in 2014 and was acted upon by the board in early 2015.”

“The governing documents, conflict of interest policy, and the financial statements are available upon request at the executive director's office for the same period of disclosure as set forth in section 6104(d).”

“The organization's board of directors followed policies adopted by other communities in 2015; however, it did not formally adopt those policies until 2016.”