SANDY RUN MISSIONARY BAPTIST CHURCH APARTMENTS I, INC. IS A NOT-FOR-PROFIT CORPORATION FORMED IN ACCORDANCE WITH THE NOT-FOR-PROFIT STATUTES OF THE STATE OF NORTH CAROLINA. THE CORPORATION WAS FORMED FOR THE PURPOSE OF REHABILITATING AND OPERATING A 152 UNIT COMMUNITY KNOWN AS SANDY RUN APARTMENTS IN JACKSONVILLE, NORTH CAROLINA, WHICH PROVIDES HOUSING FOR INDIVIDUALS WITH LOW AND MODERATE INCOME, PURSUANT TO SECTION 221(D)(3) OF THE NATIONAL HOUSING ACT, AS AMENDED. THE COMMUNITY IS FINANCED UNDER SECTION 221(D)(3) OF THE NATIONAL HOUSING ACT, AS AMENDED. THE CORPORATION HAS ENTERED INTO A REGULATORY AGREEMENT GOVERNING THE OPERATION OF THE COMMUNITY WITH THE FEDERAL HOUSING ADMINISTRATION SECTION OF HUD. THE CORPORATION LEASES APARTMENT UNITS TO LOW INCOME FAMILIES (OR PERSONS) IN THE NORMAL COURSE OF BUSINESS. THE CORPORATION HAS ALSO ENTERED INTO A HOUSING ASSISTANCE PAYMENT CONTRACT WITH HUD. THE CONTRACT IS A SECTION 8 RENT ASSISTANCE PROGRAM FOR LOW INCOME FAMILIES.