New Communities Inc.

“The organization does not have any committees.”

“The New Communities Director of Finance and CFO reviewed the near-final draft of the return. The CEO then performed a separate review. Upon completion of that review and resolution of questions, the draft return was sent to the Board of Directors for their review and to discuss and resolve any questions. At a Board meeting on 11/7/2018, the Board voted to approve the filing of the finalized draft. The return was subsequently filed with the IRS.”

“Annually and periodically, New Communities conducts reviews of the Conflict of Interest policy with the Board of Directors. The Conflict of Interest policy covers any Interested Person defined as any Director, Officer or member of a committee with Board-delegated powers who has a direct or indirect Financial Interest. New Communities requires each Director, Officer and member of a committee with Board-delegated powers to annually sign a statement which affirms that such person has received a copy of the Conflict of Interest policy; has read and understands the policy; has agreed to comply with the policy; and, understands that New Communities is a charitable organization and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. The signed statement is in the form of a Conflict of Interest Disclosure Statement which is Appendix A of the Conflict of Interest Policy. For any person with a conflict, the Interested Person shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest. Additionally, any person who receives compensation, directly or indirectly, from NCI of the services is precluded from voting on matters pertaining to that person's compensation, or to the compensation of any other persons.”

“New Communities' bylaws require that "the compensation of the President shall be fixed from time to time by the Board of Directors." In December of 2017, the Board of Directors (without the President present) reviewed, modified and voted on a proposed employment agreement, including compensation terms, for the President of New Communities, Inc. for a three-year term of the agreement. The Board of Directors used external executive compensation benchmarking to determine compensation terms, and the Board of Directors will provide periodic input on the President's performance.”

“The Organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“New Communities, Inc. became an independent 501(c)(3) nonprofit entity as a result from spinning off the MCD Communities operating division from Medical Care Development, Inc. (EIN 01-6022787) on 07/01/2017. For 2017, New Communities continued to use the Whistleblower Policy that was in effect as part of Medical Care Development. The New Communities' Board of Directors will review and approve a New Communities' Whistleblower Policy in 2018.”

“New Communities, Inc. became an independent 501(c)(3) nonprofit entity as a result from spinning off the MCD Communities operating division from Medical Care Development, Inc. (EIN 01-6022787) on 07/01/2017. For 2017, New Communities continued to use the Document Rentention Policy that was in effect as part of Medical Care Development. The New Communities' Board of Directors will review and approve a New Communities' Document Rentention Policy in 2018.”

“New Communities, Inc. became an independent 501(c)(3) nonprofit entity as a result from spinning off the MCD Communities operating division from Medical Care Development, Inc. (EIN 01-6022787) on 7/1/2017. New Communities and Medical Care Development used the Alternative Procedure for Predecessors and Successors" for reporting forms W-2 and 941 provided in IRS Rev. Proc. 2004-53 (the Alternate Procedure"). Under the Alternative Procedure, New Communities issued W-2s to its former Medical Care Development employees that included the entire year 2017, in effect reporting on wages paid by Medical Care Development for the period 1/1/2017-6/30/2017. Therefore, the reportable compensation for Officer, Directors, Trustees, Key Employees and Highest Compensated Employees is for the full year of 2017 from 1/1/2017- 12/31/2017 and includes compensation paid by both Medical Care Development, Inc. and New Communities, Inc.”

“Section 1.263(a)-3(n) Election: New Communities, Inc. 869 Main Street, Suite 600 Westbrook, ME 04902 EIN: 81-5393817 New Communities, Inc. is electing to capitalize repair and maintenance costs under Regulation Section 1.263(a)-3(n).”