LAPAZ GARDEN COURT, INC. (AN INDIANA NOT-FOR-PROFIT CORPORATION) WAS ORGANIZED TO CONSTRUCT, OWN AND OPERATE A 14 UNIT APARTMENT COMMUNITY IN LAPAZ, INDIANA, KNOWN AS LAPAZ GARDEN COURT, PURSUANT TO SECTION 202 OF THE NATIONAL HOUSING ACT, AS AMENDED. IT PROVIDES ELDERLY PERSONS AND HANDICAPPED PERSONS WITH HOUSING FACILITIES AND SERVICES, ESPECIALLY DESIGNED TO MEET THEIR PHYSICAL, SOCIAL AND PSYCHOLOGICAL NEEDS AND TO PROMOTE THEIR HEALTH, SECURITY, HAPPINESS AND USEFULNESS AND LONG LIVING THE CORPORATION HAS EXECUTED A REGULATORY AGREEMENT WITH HUD WHICH GOVERNS THE OPERATION OF THE COMMUNITY WITH THE FEDERAL HOUSING ADMINISTRATION (FHA) SECTION OF HUD. THE CORPORATION HAS ALSO ENTERED INTO A PROJECT RENTAL ASSISTANCE CONTRACT (PRAC CONTRACT) WITH HUD. THE PRAC CONTRACT IS A RENT ASSISTANCE PROGRAM FOR LOW-INCOME FAMILIES (OR PERSONS) AS PROVIDED BY THE SECTION 8 PROGRAM OF THE NATIONAL HOUSING ACT.