Lifespace Communities Inc.

“Management performs a thorough review of the form 990. The audit committee of the board of directors reviews and approves the form 990 prior to filing. Any concerns or suggestions identified by the audit committee are reported to the full board of directors. A copy of the form 990 will be distributed to the entire board of directors prior to filing. Members of the board of directors direct any questions or concerns to the chief financial officer to be resolved prior to filing.”

“Officers and members of the board of directors of lifespace communities, inc. And all related organizations must conduct their personal affairs in such a manner as to avoid any possible conflicts of interest with duties and responsibilities as officers and members of the board of directors. All new board members and officers are required to complete a conflicts of interest statement. This is reviewed by the management development committee of the board of directors for approval. Officers and members of the board of directors annually are required to complete a conflicts of interest statement. These statements are reviewed by the management development committee to determine if any conflicts of interest exist prior to reappointment to the board and officer positions. Any director having a conflict of interest shall not vote or use his or her personal influence on the matter, and shall not be counted in determining the quorum for the meeting. The minutes of the meeting shall reflect that a disclosure was made, the abstention from voting, and the quorum situation.”

“Compensation for officers and directors is reviewed by the management development committee annually. An outside consultant is used every other year to determine the reasonableness of officer and director compensation. A report is provided to the board of directors by the consultant. In years when an outside consultant is not used, the management development committee reviews survey information to determine the reasonableness of officer and director compensation. The board of directors approves the annual compensation based on these reviews. Officers for which this process is used are the ceo, coo and cfo. The salaries and benefits listed contain the total salaries and benefits paid to each individual through lifespace communities, inc. And all related entities.”

“Requests from third parties for governing documents, conflict of interest policy and financial statements are referred to the chief financial officer. Annual returns and the application for exemption are made available for public inspection and are provided to individuals who request them. Copies are provided within 30 days of a written request or the same day if requested in person.”

“The governance committee is in the process of developing a policy regarding the organization's participation in joint venture arrangements.”

“During 2014, lifespace communities, inc. Became a member of caring communities, a reciprocal risk retention group, by making a capital contribution of $831,332. All members of caring communities are tax-exempt entities which are primarily engaged in businesses or activities similar or relating to operating a continuing care retirement community or providing services to seniors or providing affordable housing. The members participate in a program of insurance or reinsurance coverage through the reciprocal exchange of indemnity, insurance or reinsurance contracts. The members and the attorney-in-fact shall together comprise the reciprocal insurer which shall operate as an association captive risk retention group in accordance with federal law and the provisions of the captive insurance company act of 2004 and chapter 10 of title 29 regarding limited liability companies, of the district of columbia code, as amended.”

“The process of overseeing the audit and selecting an independent accountant has not changed from the prior year.”