2025-10-21T15:44:10-05:00 2024-12-31 420714325 RSM US LLP 9801 WASHINGTONIAN BLVD STE 500 GAITHERSBURG MD 20878 990 2024-01-01 371742780 LANTERN HILL INC LANT 9082196702 535 MOUNTAIN AVENUE NEW PROVIDENCE NJ 07974 EILEEN ERSTAD TREASURER 9082196702 2025-10-17 1 1 JULIA FLANNERY P00928918 3012963600 2025-10-17 2024 2025-03-06 01:10:19Z PATRICIA BROWN 535 MOUNTAIN AVENUE NEW PROVIDENCE NJ 07974 49571543 0 X WWW.NATIONALSENIORCOMMUNITIES.ORG X 2013 MD PROVIDE A HOME FOR SENIORS THAT SATISFIES THEIR THREE PRIMARY NEEDS. 14 10 561 102 0 0 1055882 408481 46183562 48461136 198547 439697 201248 262229 47639239 49571543 7000 9000 0 0 18612088 20212766 0 0 3285 30004316 36203314 48623404 56425080 -984165 -6853537 247348679 249208597 277015791 285555750 -29667112 -36347153 X MISSION STATEMENT - HOME IS BELONGING, PEACE OF MIND, LOVE AND ACCEPTANCE. WELCOME HOME!VISION STATEMENT - LANTERN HILL, INC. CELEBRATES AGING! GROUNDED IN INCLUSION, INNOVATION AND ADVOCACY, WE CREATE UNPARALLELED VALUE AND OPPORTUNITIES FOR EVERY LIFE WE TOUCH. AS PART OF THE NATIONAL SENIOR COMMUNITIES ENTERPRISE, WE LEVERAGE OUR STRONG FINANCIAL FOUNDATION AND GOVERNANCE FOR THE BENEFIT OF SENIORS AND THOSE WHO SUPPORT THEM. 0 0 48697211 9000 48461136 LANTERN HILL PROVIDES SERVICES NEEDED BY SENIOR RESIDENTS, WHO RESIDE IN 430 INDEPENDENT LIVING UNITS, 42 ASSISTED LIVING UNITS AND 40 SKILLED NURSING BEDS. THE SERVICES WE PROVIDE TO OUR RESIDENTS INCLUDE, BUT ARE NOT LIMITED TO HOUSING, FOOD, MEDICAL, SECURITY AND MAINTENANCE SERVICES, RECREATIONAL AND PASTORAL ACTIVITIES. 48697211 1 1 0 0 0 0 0 0 1 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 78 0 1 561 1 0 0 0 0 0 0 0 0 0 0 0 0 X 14 10 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NJ X X SAMANTHA WHIRLEY 4102422880 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 X PATRICIA BROWN CHAIR & PRESIDENT 1.30 7.70 X X 0 90000 0 BARBARA BISGAIER VICE CHAIR & VICE PRESIDENT 0.50 8.40 X X 0 110000 0 MARY COLINS SECRETARY 0.10 12.00 X X 0 150000 0 EILEEN ERSTAD TREASURER 0.10 21.20 X X 0 140000 0 IAN BROWN DIRECTOR 0.10 7.80 X 0 80000 0 KATHERINE CLUPPER DIRECTOR (BEG 4/1/24) 0.10 6.90 X 0 65000 0 ZINA JACQUE DIRECTOR 0.10 13.00 X 0 172500 0 MONTY LEONARD DIRECTOR 0.10 10.30 X 0 90000 0 MARY MOSCATO DIRECTOR (BEG 4/1/24) 0.10 7.20 X 0 65000 0 PAMELA PAULK DIRECTOR 0.10 8.80 X 0 90000 0 STEPHANIE REEL DIRECTOR 0.10 13.90 X 0 150000 0 MIKE ROSKIEWICZ DIRECTOR 0.10 15.30 X 0 135000 0 RUSSELL SHARP DIRECTOR 0.10 8.90 X 0 80000 0 TERRY COX RESIDENT DIRECTOR (THRU 3/31/24) 0.20 X 0 0 0 DAVID MOLLEN RESIDENT DIRECTOR (BEG 4/1/24) 0.20 X 0 0 0 CHRIS RATHMANN ASSISTANT TREASURER (THRU 3/31/24) 1.00 15.00 X 0 0 0 PAMELA STINER ASSISTANT TREASURER (BEG 4/1/24) 1.00 18.00 X 0 0 0 JOHN HALL ASSISTANT TREASURER 1.00 18.00 X 0 0 0 MARK EMBLEY ASSISTANT TREASURER 1.00 18.00 X 0 0 0 NEAL GANTERT ASSISTANT TREASURER 1.00 18.00 X 0 0 0 SCOTT SAWICKI ASSISTANT SECRETARY (BEG 4/1/24) 0.30 45.40 X 0 307034 37698 CRAIG KARCZMER EXECUTIVE DIRECTOR (THRU 10/3/24) 40.00 X 290692 0 20890 TODD DELANEY EXECUTIVE DIRECTOR (BEG 10/3/24) 40.00 40.00 X 74485 223453 24161 JOSEPH PISANO DIRECTOR, FINANCE (BEG 3/8/24) 40.00 40.00 X 151391 30278 26237 LINDA BECHTOLD DIRECTOR, NURSING 40.00 X 153133 0 15588 JACK WALSH MANAGER, SALES 40.00 X 137022 0 399 TERRI CAMPBELL HEALTH CARE COUNSELOR 40.00 X 123470 0 10742 MARISSA DELATORRE MDS COORDINATOR 40.00 X 123411 0 4209 CARLOS AGUILERA SALES COUNSELOR 40.00 X 119066 0 9787 KAREN CAMPBELL INFECTION PREVENTIONIST 40.00 X 115790 0 10174 1288460 1978265 159885 18 0 1 0 ERICKSON SENIOR LIVING LLC 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 MANAGEMENT - SEE SCH. O 5846067 RB PAINTING INC 366 SPARTA AVE SPARTA NJ 07871 PAINTING SERVICES 1078901 BROTHERS CARPET AND FLOORING INC 50 JOHNSON AVE HACKENSACK NJ 07601 CARPET & FLOORING 513872 PIC RITE MANAGEMENT & CONSULTING INC 234 W BROAD ST C HATFIELD PA 19440 CONSULTING SERIVCES 307343 JOHN O'DONNELL LLC 136 ROOSEVELT AVE HASBROUCK HEIGHTS NJ 07604 CONTRACTOR 267236 15 408481 7627 408481 RESIDENT FEES 623000 42191970 42191970 RESIDENT DEPOSITS 623000 5277252 5277252 ANCILLARY FEES 623000 988441 988441 OTHER PROGRAM REVENUE 623000 3473 3473 48461136 380819 380819 262229 0 262229 262229 262229 26878 32000 0 0 26878 32000 58878 58878 49571543 48461136 0 701926 9000 9000 734083 734083 15555593 13048682 2506911 250748 200195 50553 2123932 1685054 438878 1548410 1314629 233781 1898882 1898882 338247 1254 336993 68207 68207 15876 15876 2709737 2709737 1770407 1770407 3437853 3016048 420655 1150 5806050 5805050 1000 105600 53328 51949 323 10294225 10294225 6908281 6908281 474189 474189 EQUIPMENT RENTAL 1874652 1837649 37003 RESIDENT RELATIONS 260711 139941 118958 1812 CHARITY CARE 240397 240397 56425080 48697211 7724584 3285 X 3382369 13168135 851479 593565 4880850 3524100 45770 36903 124438 172289 11682469 6619861 3718651 5062608 1492979 1288616 7291025 225561118 225362381 247348679 249208597 2744160 3241530 635200 327000 5824269 3841899 267812162 278145321 277015791 285555750 X -31316403 -38035429 1649291 1688276 -29667112 -36347153 247348679 249208597 X -6853537 77859 95637 X 0 1 X 1 0 X 2406241 911500 803066 1055882 408481 5585170 33984463 36963013 41251946 46183562 48461136 206844120 36390704 37874513 42055012 47239444 48869617 212429290 150000 270000 210314 260394 205000 1095708 0 150000 270000 210314 260394 205000 1095708 211333582 9220343 11230186 12003226 463369 643048 33560172 9220343 11230186 12003226 463369 643048 33560172 45611047 49104699 54058238 47702813 49512665 245989462 0.85910 0.82060 0.13640 0.17500 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 4683780 1350204 3333576 3271238 2254925 1016313 3727451 3014732 712719 5062608 OTHER CURRENT ASSETS 35671 FINANCE LEASE RIGHT OF USE ASSETS, NET 225311775 INTERCOMPANY RECEIVABLE 14935 225362381 CLAIMS RESERVE 400851 RESIDENT DEPOSITS (NET) 266910702 DEFERRED MANAGEMENT FEES 94944 RESIDENT REFUNDS PAYABLE 10738824 278145321 X 49729163 77859 95637 173496 49555667 15876 15876 49571543 56409204 0 56409204 15876 15876 56425080 PART IV, LINE 2B: PROSPECTIVE RESIDENTS ARE REQUIRED TO MAKE CERTAIN INSTALLMENT PAYMENTS PRIOR TO THE FINAL SETTLEMENT OF THE GIVEN UNIT. THOSE ADVANCE DEPOSITS ARE REPORTED ON FORM 990, PART X, LINE 21. PART X, LINE 2: LANTERN HILL ("LHN") IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND THE APPLICABLE STATE INCOME TAX REGULATIONS. MANAGEMENT HAS EVALUATED LHN'S TAX POSITIONS AND HAS CONCLUDED THAT LHN HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN RESTRICTED NET INVESTMENT RETURN 95,637. 1 EDUCATIONAL SCHOLARSHIPS - SEE PART IV 7 9000 SCHEDULE I, PART I, LINE 2: THE SCHOLAR'S FUND IS A RESIDENT RUN AND FUNDED PROGRAM TO PROVIDE FINANCIAL SUPPORT AND RECOGNITION TO STUDENTS SEEKING TO CONTINUE THEIR EDUCATION WHO HAVE DEMONSTRATED A STRONG PERSONAL COMMITMENT TO SERVING OUR SENIOR POPULATION. STUDENT SCHOLAR CANDIDATES ARE REQUIRED TO BE EMPLOYEES IN GOOD STANDING. TO BE ELIGIBLE, A STUDENT MUST MEET A MINIMUM STANDARD OF HOURS WORKED, ACHIEVE CERTAIN LEVELS OF ACADEMIC SUCCESS, MAINTAIN A MINIMUM NUMBER OF CREDIT HOURS OF ENROLLMENT AND COMPLETION OF COURSEWORK. ELIGIBLE COSTS ARE REVIEWED AND VERIFIED BEFORE PAYMENTS ARE MADE FROM THE FUND FOR SUBSEQUENT SEMESTERS OR TERMS OF ENROLLMENT. THE STUDENT SCHOLAR CANDIDATES MUST MAINTAIN "GOOD STANDING" THROUGHOUT THEIR PARTICIPATION IN THE SCHOLARSHIP APPLICATION AND AWARD PROGRAM, AS DEFINED FOR EMPLOYEES IN THE EMPLOYMENT POLICIES AND PROCEDURES DOCUMENTS. DUE DATES FOR DOCUMENT SUBMISSION AND EVALUATION MUST BE ADHERED TO, TO ASSURE QUALIFICATION FOR THE INITIAL AWARD AND SUBSEQUENT SEMESTERS. GAPS IN ENROLLMENT BEYOND TWO SEMESTERS REQUIRE SPECIAL APPROVAL. THE PROGRAM REQUIRES ENROLLMENT AT RECOGNIZED TRADE SCHOOLS, COLLEGES OR UNIVERSITIES AFTER HIGH SCHOOL. A MAXIMUM AWARD LEVEL EACH SEMESTER AND THROUGHOUT THE POST-HIGH SCHOOL EDUCATION FOR EACH STUDENT IS IN PLACE SUBJECT TO AVAILABLE FUNDS IN THE PROGRAM. X X X 1 0 0 0 0 0 0 1 0 SCOTT SAWICKI ASSISTANT SECRETARY (BEG 4/1/24) 0 256472 0 50562 0 0 0 25180 0 12518 0 344732 0 0 TODD DELANEY EXECUTIVE DIRECTOR (BEG 10/3/24) 56282 168845 12292 36875 5911 17733 2475 7425 3565 10696 80525 241574 0 0 CRAIG KARCZMER EXECUTIVE DIRECTOR (THRU 10/3/24) 183948 0 40700 0 66044 0 9614 0 11276 0 311582 0 0 0 JOSEPH PISANO DIRECTOR, FINANCE (BEG 3/8/24) 135354 27071 14167 2833 1870 374 4981 996 16883 3377 173255 34651 0 0 ZINA JACQUE DIRECTOR 0 172500 0 0 0 0 0 0 0 0 0 172500 0 0 LINDA BECHTOLD DIRECTOR, NURSING 136121 0 15922 0 1090 0 4617 0 10971 0 168721 0 0 0 PART I, LINE 4A CRAIG KARCZMER RECEIVED A SEVERANCE PAYMENT DURING THE CALENDAR YEAR. THE PAYMENT IS INCLUDED IN PART VII, COLUMN D AND SCHEDULE J, PART II, COLUMN BIII. THE TERMS AND CONDITIONS OF THE CONFIDENTIAL SEVERANCE AGREEMENT ARE AVAILABLE TO THE INTERNAL REVENUE SERVICE UPON REQUEST. PART I, LINE 7 THE EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A RECEIVED A DISCRETIONARY BONUS DURING THE YEAR. SCHEDULE J CRAIG KARCZMER, TODD DELANEY, AND JOSEPH PISANO ARE LISTED IN SCHEDULE J, PART II AND ARE EMPLOYEES OF ERICKSON SENIOR LIVING, LLC ("ESL"), AN UNRELATED ORGANIZATION TO LANTERN HILL, INC., IN ACCORDANCE WITH THE MANAGEMENT AGREEMENT BETWEEN LANTERN HILL, INC. AND ESL. SEE SCHEDULE O EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 3. THEREFORE, FOR IRS MATCHING PURPOSES, ESL IS THE ISSUER OF THE FORMS W-2. UNDER THE MANAGEMENT AGREEMENT, LANTERN HILL, INC. REIMBURSES ESL FOR THE COST OF SERVICES PERFORMED FOR LANTERN HILL, INC. FORM 990, PART VI, SECTION A, LINE 1A IF THERE ARE MATERIAL DIFFERENCES IN VOTING RIGHTS AMONG MEMBERS OF THE GOVERNING BODY, OR IF THE GOVERNING BODY DELEGATED BOARD AUTHORITY TO AN EXECUTIVE COMMITTEE OR SIMILAR COMMITTEE, EXPLAIN IN SCHEDULE O. UNDER THE BYLAWS OF THE ORGANIZATION, THE BOARD HAS DELEGATED AUTHORITY TO AN EXECUTIVE COMMITTEE COMPRISED OF THE ORGANIZATION'S CHAIR, VICE CHAIRS, PRESIDENT, SECRETARY AND TREASURER. THE EXECUTIVE COMMITTEE HAS AND MAY EXERCISE ALL OF THE POWERS AND AUTHORITY OF THE BOARD IN THE MANAGEMENT OF THE BUSINESS AND AFFAIRS OF THE ORGANIZATION EXCEPT FOR THOSE ACTIONS RESERVED SOLELY TO THE MEMBER OR THE DIRECTORS UNDER THE GENERAL LAWS OF THE STATE OF MARYLAND. FORM 990, PART VI, SECTION A, LINE 1B: ENTER THE NUMBER OF VOTING MEMBERS INCLUDED ON LINE 1A, ABOVE, WHO ARE INDEPENDENT. THE BOARD MEMBERS THAT ARE DEEMED NOT INDEPENDENT ON THE FORM 990 ARE THOSE INDIVIDUALS WHO RECEIVE COMPENSATION AS AN OFFICER OR OTHER EMPLOYEE FROM THE ORGANIZATION OR FROM A RELATED ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 3 DID THE ORGANIZATION DELEGATE CONTROL OVER MANAGEMENT DUTIES CUSTOMARILY PERFORMED BY OR UNDER THE DIRECT SUPERVISION OF OFFICERS, DIRECTORS, OR TRUSTEES, OR KEY EMPLOYEES TO A MANAGEMENT COMPANY OR OTHER PERSON? LANTERN HILL, INC. ENTERED INTO A NEW MANAGEMENT AND MARKETING AGREEMENT TO REPLACE THE EXISTING AMENDED & RESTATED MANAGEMENT AND MARKETING AGREEMENT ALREADY IN EFFECT WITH ERICKSON SENIOR LIVING, LLC ("ESL"). THE AGREEMENT WAS EFFECTIVE AS OF APRIL 30, 2024. THE EXISTING MANAGEMENT AND MARKETING AGREEMENT HAS BEEN AMENDED TO CLARIFY CERTAIN MATTERS. ESL IS A MARYLAND LIMITED LIABILITY COMPANY WHICH MANAGES LARGE SCALE CONTINUING CARE RETIREMENT COMMUNITIES. LANTERN HILL, INC. ENTERED INTO AN AMENDMENT TO THE COMMUNITY LOAN AGREEMENT, COMMUNITY LOAN NOTE, AND COMMUNITY LOAN MORTGAGE. THE AMENDMENT TO THE AGREEMENT WAS DATED JANUARY 1, 2021. AS OF JANUARY 1, 2023, THE ORGANIZATION ENTERED INTO AMENDMENTS TO THE MASTER LEASE AND USE AGREEMENT WITH THE LANDOWNER OF THE COMMUNITY, AN AFFILIATE OF ESL, WHICH, AMONG OTHER THINGS, PROVIDES FOR THE OPTION TO EXTEND THE LEASE TERM FOR SEVEN ADDITIONAL TEN YEAR RENEWAL TERMS. THE FOLLOWING OFFICERS ARE LISTED IN PART VII, AS NON-COMPENSATED OFFICERS OF THE FILING ORGANIZATION, JOHN HALL, CHRIS RATHMANN (THRU 3/31/24), PAMELA STINER (BEG 4/1/24), NEAL GANTERT, AND MARK EMBLEY. THEIR DUTIES ARE CONSIDERED PERFORMED PRO BONO. CRAIG KARCZMER, EXECUTIVE DIRECTOR (THRU 10/3/24), TODD DELANEY, EXECUTIVE DIRECTOR (BEG 10/3/24), AND JOSEPH PISANO, DIRECTOR, FINANCE (BEG 3/8/24) 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. FORM 990, PART VI, SECTION A, LINE 6 DID THE ORGANIZATION HAVE MEMBERS OR STOCKHOLDERS? LANTERN HILL, INC.'S SOLE MEMBER IS NATIONAL SENIOR COMMUNITIES, INC. ("NSC"). NSC IS A MARYLAND NON-STOCK CORPORATION. NSC IS A "SUPPORTING ORGANIZATION" WITH RESPECT TO LANTERN HILL, AS WELL AS CERTAIN OTHER ORGANIZATIONS SPECIFIED IN ITS GOVERNING DOCUMENTS. AS REQUIRED BY THE REGULATIONS RELATING TO "SUPPORTING ORGANIZATIONS," CERTAIN MEMBERS OF THE BOARD OF DIRECTORS OF NSC WILL ALSO BE MEMBERS OF THE BOARD OF DIRECTORS OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A DID THE ORGANIZATION HAVE MEMBERS, STOCKHOLDERS, OR OTHER PERSONS WHO HAD THE POWER TO ELECT OR APPOINT ONE OR MORE MEMBERS OF THE GOVERNING BODY? THE BOARD OF DIRECTORS MAY NOMINATE A SLATE OF CANDIDATES FOR CONSIDERATION BY THE MEMBER, BUT THE MEMBER HAS SOLE DISCRETION TO ELECT DIRECTORS WHETHER OR NOT NOMINATED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B ARE ANY GOVERNANCE DECISIONS OF THE ORGANIZATION RESERVED TO (OR SUBJECT TO APPROVAL BY) MEMBERS, STOCKHOLDERS, OR PERSONS OTHER THAN THE GOVERNING BODY? CERTAIN EXTRAORDINARY ACTIONS OF THE CORPORATION REQUIRE THE APPROVAL OF THE MEMBER UNDER APPLICABLE STATE LAW. UNDER THE ORGANIZATION'S BYLAWS, CERTAIN GOVERNANCE DECISIONS ARE MADE BY THE BOARD WITH THE CONSENT OF THE MEMBER AS SHARED POWERS AND CERTAIN GOVERNANCE DECISIONS ARE RESERVED TO THE MEMBER. SHARED POWERS INCLUDE AMENDMENTS TO ANY OF THE COMMUNITY DOCUMENTS (EXCEPT WHERE IT INVOLVES A RESERVED POWER), APPROVAL OF ALL CONTRACTS WITH OR PAYMENTS TO THE MEMBER OR OTHER RELATED ENTITIES (OTHER THAN GOVERNANCE COSTS OF THE MEMBER), AUTHORIZING THE FILING OF ANY BANKRUPTCY, CHANGES TO SHARED POWERS, A SIGNIFICANT EXPANSION OR NEW LINE OF BUSINESS JUST INVOLVING THE ORGANIZATION, AND SELECTION OF THE MANAGEMENT COMPANY. RESERVED POWERS OF THE MEMBER INCLUDE: APPROVAL OF POLICIES AFFECTING MORE THAN ONE COMMUNITY; SPONSORSHIP OF A NEW COMMUNITY; PAYMENT OF REASONABLE AMOUNTS TO COVER THE MEMBER'S OPERATING COSTS; THE EXECUTION OF JOINT PURCHASE CONTRACTS OR SIMILAR AGREEMENTS ALONG WITH AFFILIATE(S); THE DISPOSITION OR PLEDGE OF ALL OR SUBSTANTIALLY ALL OF THE ORGANIZATION'S ASSETS (OTHER THAN A PLEDGE IN CONNECTION WITH AN ASSET OR FINANCING TRANSACTION); COMPENSATION OF OFFICERS, DIRECTORS AND ADVISORY COMMITTEE MEMBERS; AND APPROVAL OF CONTRACTS, AMENDMENTS, ETC. AFFECTING THE ORGANIZATION AND ONE OR MORE RELATED ENTITIES OR THE RESIDENTS OF THEIR COMMUNITIES. FORM 990, PART VI, SECTION B, LINE 11B HAS THE ORGANIZATION PROVIDED A COMPLETE COPY OF THIS FORM 990 TO ALL MEMBERS OF ITS GOVERNING BODY BEFORE FILING THE FORM? THE CHAIR OF THE AUDIT, INVESTMENT, AND TREASURY COMMITTEE APPOINTS THE REVIEWER OF THE FORM 990. ONCE THAT REVIEW IS COMPLETE, THE FULL BOARD IS GIVEN THE OPPORTUNITY TO REVIEW THE FINAL VERSION OF FORM 990 BEFORE IT IS FILED AND ASK QUESTIONS OF THE REVIEWER REGARDING THE FORM. FORM 990, PART VI, SECTION B, LINE 12C DID THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITOR AND ENFORCE COMPLIANCE WITH THE POLICY? ALL DIRECTORS, OFFICERS, KEY EMPLOYEES, EMPLOYEES AND VOLUNTEERS IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER LANTERN HILL, INC.'S AFFAIRS, COMMITTEE MEMBERS, PROSPECTIVE DIRECTORS, AND SENIOR STAFF PROVIDING SERVICES TO THE ORGANIZATION UNDER A MANAGEMENT AGREEMENT COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY AND AS POTENTIAL CONFLICTS ARISE DURING THE YEAR. THE DIRECTOR CONFLICT OF INTEREST STATEMENTS ARE REVIEWED BY THE BOARD CHAIR. IF THE CONFLICT INVOLVES A COVERED EMPLOYEE, THE CHAIR DETERMINES WHETHER A CONFLICT EXISTS AND, IF SO, HOW IT IS TO BE HANDLED, OR THE CHAIR MAY REFER THE MATTER TO THE BOARD OF DIRECTORS FOR CONSIDERATION. FOR ALL OTHER CONFLICTS, 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. FORM 990, PART VI, SECTION B, LINE 15 DID THE PROCESS FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S CEO, EXECUTIVE DIRECTOR, OR TOP MANAGEMENT OFFICIAL, OR OTHER OFFICERS OR KEY EMPLOYEES, INCLUDE A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION? THE BOARD HAS APPROVED A DIRECTORS' COMPENSATION POLICY WHICH ESTABLISHES THE PROCESS BY WHICH ALL DIRECTOR COMPENSATION IS DETERMINED. 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 COMMITTEE OF THE NSC BOARD HAS ACCESS TO THE 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. A NEW COMPENSATION STUDY WAS UNDERTAKEN IN THE FALL OF 2024 WHICH DID NOT RECOMMEND ANY CHANGES TO THE CURRENT STRUCTURE IN 2024. COMPENSATION IS APPROACHED ON AN OVERALL BASIS AND THE TOTAL VALUE OF ALL FORMS OF COMPENSATION IS ESTABLISHED AND MONITORED. THERE IS A COMPREHENSIVE COMPENSATION REVIEW PERFORMED ANNUALLY FOR THE EXECUTIVE DIRECTOR AND OTHER KEY MANAGEMENT PERSONNEL. THE COMPENSATION IS REVIEWED, DOCUMENTED, AND APPROVED BY THE BOARD DURING THE BUDGET PROCESS. FORM 990, PART VI, SECTION C, LINE 19 DESCRIBE WHETHER (AND IF SO, HOW) THE ORGANIZATION MADE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC DURING THE TAX YEAR. THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND THE FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST FROM THE EXECUTIVE DIRECTOR'S OFFICE, FOR THE DISCLOSURE PERIOD SPECIFIED UNDER SECTION 6104(D). FORM 990, PART VII, SECTION B: INDEPENDENT CONTRACTORS COMPENSATION. THE AMOUNT INCLUDED IN COLUMN (C) FOR ERICKSON SENIOR LIVING IS FOR PAYMENTS MADE FOR MANAGEMENT SERVICES AND THE DIRECT AND SHARED COSTS ALLOCATED TO THE COMMUNITY. DIRECT AND SHARED COSTS INCLUDE SALARIES AND BENEFITS FOR MANAGEMENT PERSONNEL, AND THE USE OF SERVICES SUCH AS FINANCE, LEGAL, HUMAN RESOURCES, INFORMATION SERVICES, AND OPERATIONS. FORM 990, PART VII, SECTION A: REPORTABLE COMPENSATION FROM THE ORGANIZATION AND FROM RELATED ORGANIZATIONS. THE COMPENSATION INCLUDED IN COLUMNS D AND E FOR THE BOARD DIRECTORS IS FOR SERVICES PERFORMED FOR THE FILING ORGANIZATION AND ALL RELATED ORGANIZATIONS INCLUDED ON SCHEDULE R, PART II. THE COMPENSATION FOR THE ASSISTANT SECRETARY INCLUDED IN COLUMNS D AND E IS FOR SERVICES PERFORMED FOR NATIONAL SENIOR COMMUNITIES, INC, A RELATED ORGANIZATION. NATIONAL SENIOR COMMUNITIES SUPPORTS EIGHTEEN COMMUNITIES. FORM 990, PART X: WORKING CAPITAL LOAN. ON JANUARY 1, 2014 LANTERN HILL, INC. ("LH") AND REDWOOD-ERC NEW PROVIDENCE, LLC ("NPC") ENTERED INTO A WORKING CAPITAL LOAN AGREEMENT ("WCLA"), WHICH ALLOWS LH TO BORROW FROM NPC. THE AGREEMENT HAS BEEN AMENDED ON VARIOUS DATES TO ADJUST THE CAPACITY UNDER THE LOAN. THE AGREEMENT WAS AMENDED TWICE DURING 2024 TO SET THE BORROWING CAPACITY TO $18,000,000 AND TO EXTEND THE MATURITY DATE TO DECEMBER 31, 2030. AS OF DECEMBER 31, 2024 AND 2023 THE BALANCE ON THE WCLA WAS $3,841,899 AND $5,824,269, RESPECTIVELY. FORM 990, PART XI, LINE 9: CHANGE IN RESTRICTED NET INVESTMENT RETURN 95,637. ANN'S CHOICE INC 10000 ANNS CHOICE WAY WARMINSTER PA 18974 522095427 CONTINUING CARE RETIREMENT COMMUNITY PA 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 ASHBY PONDS INC 21170 ASHBY PONDS BLVD ASHBURN VA 20147 205609803 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 AVERY POINT INC 1000 AVERY POINT WAY RICHMOND VA 23233 922254866 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 BETHESDA NSC RETIREMENT COMMUNITY INC 816 CONNECTICUT AVE NW 7TH FL WASHINGTON DC 20006 922205771 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 BROOKSBY VILLAGE INC 100 BROOKSBY VILLAGE DRIVE PEABODY MA 01960 522126755 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 CEDAR CREST VILLAGE INC 1 CEDAR CREST VILLAGE DRIVE POMPTON PLAINS NJ 07444 522184915 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 EAGLE'S TRACE INC 14703 EAGLE VISTA DRIVE HOUSTON TX 77077 030498683 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 FOX RUN VILLAGE INC 41000 13 MILE ROAD NOVI MI 48377 522291271 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 GREENSPRING VILLAGE INC 7440 SPRING VILLAGE DRIVE SPRINGFIELD VA 22150 522095427 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 HIGHLAND SPRINGS INC 8000 FRANKFORD ROAD DALLAS TX 75252 510536892 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 LINDEN PONDS INC 300 LINDEN PONDS WAY HINGHAM MA 02043 141849849 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 MARIS GROVE INC 100 MARIS GROVE WAY GLEN MILLS PA 19342 550878964 CONTINUING CARE RETIREMENT COMMUNITY PA 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 MATTHEWS NSC RETIREMENT COMMUNITY INC 816 CONNECTICUT AVE NW 7TH FL WASHINGTON DC 20006 922269292 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 NATIONAL SENIOR COMMUNITIES INC 816 CONNECTICUT AVE NW 7TH FLOOR WASHINGTON DC 20006 204356247 SUPPORTING ORGANIZATION MD 501(C)(3) LINE 12C, III-FI N/A 0 OAK CREST VILLAGE INC 8800 WALTHER BOULEVARD PARKVILLE MD 21234 521874053 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 RIDERWOOD VILLAGE INC 3110 GRACEFIELD ROAD SILVER SPRING MD 20904 522126753 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 SEABROOK VILLAGE INC 3000 ESSEX ROAD TINTON FALLS NJ 07753 522126751 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 TALLGRASS CREEK INC 13800 METCALF AVENUE OVERLAND PARK KS 66223 870765641 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 WIND CREST INC 3235 MILL VISTA ROAD HIGHLANDS RANCH CO 80129 510549976 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 WOODLEIGH CHASE INC 816 CONNECTICUT AVE NW 7TH FL WASHINGTON DC 20006 922217836 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) LINE 10 NATIONAL SENIOR COMMUNITIES INC 0 NATIONAL CCRC BUSINESS TRUST I 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 266455718 CHARITABLE BUSINESS TRUST MD N/A 0 0 NATIONAL CCRC STATUTORY TIER IV TRUST 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 853943847 CHARITABLE BUSINESS TRUST MD N/A 0 0 THE TALON BAR COMPANY 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 562520131 LIQUOR LICENSE HOLDER FOR EAGLE'S TRACE, INC. TX N/A C 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 PART II, IDENTIFICATION OF RELATED TAX-EXEMPT ORGANIZATIONS: BETHESDA NSC RETIREMENT COMMUNITY, INC WAS DISSOLVED ON 4/11/24.