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20 Financial Feasibility Study The Financial Feasibility Study (the “Forecast”) attached hereto in “APPENDIX B - FINANCIAL FEASIBILITY STUDY” prepared by the Borrower and examined by CliftonLarsonAllen LLP, Minneapolis, Minnesota, for the ______ years ending September 30, 2020 through September 30, 20___, is based upon assumptions made by the Borrower. No assurance can be given that the results described in the Forecast will be achieved. The Borrower does not intend to issue an updated Forecast and, accordingly, there are risks inherent in using the Forecast in the future as it becomes outdated. The Forecast is only for Fiscal Years ending September 30, 2020 through September 30, 20___ and does not cover the entire period during which the Series 2020 Bonds may be outstanding. See “THE FINANCIAL FEASIBILITY STUDY” and “APPENDIX B - FINANCIAL FEASIBILITY STUDY” in this Official Statement. No guaranty can be made that the Forecast will correspond with the results actually achieved in the future by the Borrower because there is no assurance that actual events will correspond with the assumptions made by the Borrower. Actual operating results of the Borrower may be affected by many factors, including, but not limited to, increased costs, changes in demographic trends, and local and general economic conditions. The Forecast relates to the forecasted operations of the Borrower and does not include any information regarding the Limited Guarantor. The Forecast, which appears in “APPENDIX B - FINANCIAL FEASIBILITY STUDY” in this Official Statement, should be read in its entirety. Competition and Reliance on Market Information in the Financial Feasibility Study The ultimate success of the Project and the ability of the Borrower to meet all of its obligations with respect to the Project, including the timely payment of principal of and interest on the Series 2020 Bonds, depends on the existence of adequate demand for units in the Project. There is market study information included in the Forecast with respect to the Project and its market area. There are no guarantees that actual demand exists or will continue to exist which support the assumptions in the Forecast regarding the market area for the Project. The Borrower is not aware of any material changes to the information included in the Forecast. The Borrower faces competition from other existing facilities of a similar nature to the Project and may face additional competition in the future if new facilities are constructed in the market area of the Project that are of a similar nature to the Project. The Forecast has identified _____ competing independent senior rental housing facilities and _____ competing skilled nursing care facilities in the primary market area for the Project. As shown in the Forecast, affiliates of the Limited Guarantor own and operate ___ independent living facilities (with ___ units) and ___ skilled nursing facilities (with ___ licensed beds) in the market area of the Project. Actual occupancy of the Project in the future may vary from conclusions in the Forecast, which variance may be material and adverse. If, among other things, actual occupancy of the Project is materially lower or rental rates for the Project are materially less than assumed by the Borrower, actual revenues for the Project will be less than projected, and perhaps materially less. Any shortfall in such revenues could adversely affect the ability of the Borrower to provide for payment in full of the Series 2020 Bonds. See “APPENDIX B - FINANCIAL FEASIBILITY STUDY” in this Official Statement for more information with respect to competition in the primary market area for the Project. Construction and Lease-Up Risks Relating to the 2020 Project Construction of any community such as the Project is subject to risks of cost overruns and delays due to a variety of factors including, among other things, site difficulties, labor strife, delays in an shortages of materials, weather conditions, fire and casualty. Any delay in completion of the 2020 Project may materially adversely affect the timely receipt of Borrower revenues, including but not limited to