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<br />18 <br />In addition to the requirements under the HIPAA rules described above, the Minnesota Health Records Act, <br />located at Minnesota Statute 144.291 et. seq., prohibits a provider or a person who receives health records from a <br />provider from releasing a patient’s health records to any person without (1) a signed and dated consent from the patient <br />or the patient’s legally authorized representative authorizing the release; (2) specific authorization in law; or (3) a <br />representation from a provider that holds a signed and dated consent from the patient authorizing the release. Health <br />records may only be released without consent: (1) for a medical emergency when the provider is unable to obtain the <br />patient’s consent due to the patient’s condition or the nature of the medical emergency; (2) to other providers within <br />related health care entities when necessary for the current treatment of the patient; or (3) to a health care facility in <br />certain circumstances when a patient is returning to a healthcare facility and is unable to provide consent. Therefore, <br />in certain respects related to disclosure of patient information, the Minnesota Health Records Act is more restrictive <br />than HIPAA (e.g., it does not contain exceptions for treatment, payment, and operations). The Minnesota Health <br />Records Act can impose additional compliance obligations on providers. <br /> <br />Fair Housing and Anti-Discrimination Laws <br />There are a number of federal and state laws governing discrimination on the basis of age, disability, familial <br />status, religion, race, gender and national origin, including the Age in Discrimination Act of 1975, the Americans with <br />Disabilities Act, the Rehabilitation Act of 1973, the Fair Housing Amendments of 1989, the Fair Housing Act of 1968 <br />and the Affordable Care Act. There are no assurances that the Corporation will not be subject to regulatory action to <br />enforce these laws with respect to residents and the Project or legal action by residents to enforce their rights under <br />these laws. <br />Future Laws and Regulations <br />The enactment of additional legislation restricting or regulating the operation of residential care facilities, <br />creating additional residents’ rights or requiring certain financial reserves could adversely affect the financial <br />condition of the Corporation and may limit the terms and enforceability of remedies available to residents. Further, <br />new regulatory provisions may be promulgated from time to time, and it is not possible to predict the effect of any <br />such future promulgations on the Corporation and/or the Project. Future actions by the federal, state or local <br />government increasing the required services to be provided to residents of the Project or otherwise changing existing <br />regulations or their interpretation could increase the cost of operation of the Project and adversely affect the revenues <br />of the Corporation and/or the Project. No assurance can be given that any future legislation that is enacted will not <br />materially adversely affect the Corporation and/or the Project. <br />Risks of Real Estate Investment <br />General. Development, ownership and operation of real estate, such as the Project, involves certain risks, <br />including the risk of adverse changes in general economic and local conditions, including the possible future <br />oversupply and lagging demand for skilled care and senior housing facilities; adverse use of adjacent or neighboring <br />real estate; community acceptance of the Project; changes in the cost of operation of the Project; difficulties or <br />restrictions in the Corporation’s ability to raise rates or rents charged; population decreases; uninsured losses; failure <br />of residents to pay rent; operating deficits and mortgage foreclosure; lack of attractiveness of the property to residents; <br />adverse changes in neighborhood values; and adverse changes in zoning laws, federal and local rent controls, other <br />laws and regulations and real property tax rates. Such losses also include the possibility of fire or other casualty or <br />condemnation. If any of the Project was uninhabitable during restoration after damage or destruction, the units or <br />common areas affected would not be available during the period of restoration, which could adversely affect the ability <br />of the Project to generate sufficient revenues to pay debt service on the Series 2021D Bonds. Changes in general or <br />local economic conditions and changes in interest rates and the availability of mortgage funding may render the sale <br />or refinancing of the Project difficult or unattractive. These conditions may have an adverse effect on the demand for <br />the Project as well as the market price received for the Project in the event of a sale or foreclosure of the Project. Many <br />other factors may adversely affect the operation of facilities like the Project and cannot be determined at this time. <br />Risks of Competition, the Rental Market and Occupancy and Rental Rates. The Project may compete with <br />other current and future skilled care and senior living facilities in its market area, some of which may offer lower fees <br />and rates. Additional supply and/or lower rental rates at the Project could impact occupancy levels or the rental rates <br />necessary to cover debt service requirements.