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            <ZIPCode>10003</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>ARCHITECTS</DescriptionOfServices>
        <Compensation>460466</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>OMNICARE OF SYRACUSE DBA PHARMACY SOL</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>PO BOX 740391</AddressLine1>
            <City>CINCINNATI</City>
            <State>OH</State>
            <ZIPCode>452740391</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>PHARMACY</DescriptionOfServices>
        <Compensation>273442</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>B&amp;B FLOORING</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>2217 DRYDEN ROAD</AddressLine1>
            <City>DRYDEN</City>
            <State>NY</State>
            <ZIPCode>13053</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>SALE AND INSTALLATION OF CARPET, VINYL,</DescriptionOfServices>
        <Compensation>156910</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>A&amp;S BLAKCTOP PAVING LLC</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>249 POLARD HILL ROAD</AddressLine1>
            <City>JOHNSON CITY</City>
            <State>NY</State>
            <ZIPCode>13790</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>ASPHALT PAVING</DescriptionOfServices>
        <Compensation>144897</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>JOHN J PAUSLEY INC</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>5139 JACKSONVILLE ROAD</AddressLine1>
            <City>TRUMANSBURG</City>
            <State>NY</State>
            <ZIPCode>14886</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>GENERAL CONTRACTING</DescriptionOfServices>
        <Compensation>115319</Compensation>
      </ContractorCompensation>
      <NumberOfContractorsGT100K>5</NumberOfContractorsGT100K>
      <AllOtherContributions>60812</AllOtherContributions>
      <TotalContributions>60812</TotalContributions>
      <ProgramServiceRevenue>
        <Description>RESIDENT CARE FEES</Description>
        <BusinessCode>623990</BusinessCode>
        <TotalRevenueColumn>11105278</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>11105278</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <ProgramServiceRevenue>
        <Description>ENTRY FEES EARNED</Description>
        <BusinessCode>623990</BusinessCode>
        <TotalRevenueColumn>3577127</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>3577127</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <ProgramServiceRevenue>
        <Description>HEALTH CENTER FEES</Description>
        <BusinessCode>623990</BusinessCode>
        <TotalRevenueColumn>2156654</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>2156654</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <ProgramServiceRevenue>
        <Description>MEDICARE AND MEDICAID PAYMENTS</Description>
        <BusinessCode>623990</BusinessCode>
        <TotalRevenueColumn>203700</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>203700</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <ProgramServiceRevenue>
        <Description>PER DIEM RESIDENT FEES</Description>
        <BusinessCode>623990</BusinessCode>
        <TotalRevenueColumn>38</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>38</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <TotalProgramServiceRevenue>17042797</TotalProgramServiceRevenue>
      <InvestmentIncome>
        <TotalRevenueColumn>854842</TotalRevenueColumn>
        <ExclusionAmount>854842</ExclusionAmount>
      </InvestmentIncome>
      <GrossAmountSalesAssets>
        <Securities>19699226</Securities>
        <Other>300</Other>
      </GrossAmountSalesAssets>
      <LessCostOthBasisSalesExpenses>
        <Securities>19047985</Securities>
        <Other>1790</Other>
      </LessCostOthBasisSalesExpenses>
      <GainOrLoss>
        <Securities>651241</Securities>
        <Other>-1490</Other>
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      <NetGainOrLossInvestments>
        <TotalRevenueColumn>649751</TotalRevenueColumn>
        <ExclusionAmount>649751</ExclusionAmount>
      </NetGainOrLossInvestments>
      <OtherRevenueMisc>
        <Description>CAFETERIA</Description>
        <BusinessCode>623000</BusinessCode>
        <TotalRevenueColumn>103647</TotalRevenueColumn>
        <ExclusionAmount>103647</ExclusionAmount>
      </OtherRevenueMisc>
      <OtherRevenueMisc>
        <Description>OTHER</Description>
        <BusinessCode>623000</BusinessCode>
        <TotalRevenueColumn>60227</TotalRevenueColumn>
        <ExclusionAmount>60227</ExclusionAmount>
      </OtherRevenueMisc>
      <OtherRevenueMisc>
        <Description>LOSS ON EXTINGUISHMENT OF DEBT</Description>
        <BusinessCode>623000</BusinessCode>
        <TotalRevenueColumn>-157511</TotalRevenueColumn>
        <ExclusionAmount>-157511</ExclusionAmount>
      </OtherRevenueMisc>
      <TotalOtherRevenue>6363</TotalOtherRevenue>
      <TotalRevenue>
        <TotalRevenueColumn>18614565</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>17042797</RelatedOrExemptFunctionIncome>
        <UnrelatedBusinessRevenue>0</UnrelatedBusinessRevenue>
        <ExclusionAmount>1510956</ExclusionAmount>
      </TotalRevenue>
      <GrantsToDomesticIndividuals>
        <Total>49200</Total>
        <ProgramServices>49200</ProgramServices>
      </GrantsToDomesticIndividuals>
      <CompCurrentOfficersDirectors>
        <Total>294427</Total>
        <ProgramServices>294427</ProgramServices>
      </CompCurrentOfficersDirectors>
      <OtherSalariesAndWages>
        <Total>6449385</Total>
        <ProgramServices>5620763</ProgramServices>
        <ManagementAndGeneral>828622</ManagementAndGeneral>
      </OtherSalariesAndWages>
      <PensionPlanContributions>
        <Total>554685</Total>
        <ProgramServices>486531</ProgramServices>
        <ManagementAndGeneral>68154</ManagementAndGeneral>
      </PensionPlanContributions>
      <OtherEmployeeBenefits>
        <Total>1322790</Total>
        <ProgramServices>1160257</ProgramServices>
        <ManagementAndGeneral>162533</ManagementAndGeneral>
      </OtherEmployeeBenefits>
      <PayrollTaxes>
        <Total>479726</Total>
        <ProgramServices>424016</ProgramServices>
        <ManagementAndGeneral>55710</ManagementAndGeneral>
      </PayrollTaxes>
      <FeesForServicesManagement>
        <Total>543426</Total>
        <ManagementAndGeneral>543426</ManagementAndGeneral>
      </FeesForServicesManagement>
      <FeesForServicesLegal>
        <Total>24755</Total>
        <ManagementAndGeneral>24755</ManagementAndGeneral>
      </FeesForServicesLegal>
      <FeesForServicesAccounting>
        <Total>53891</Total>
        <ManagementAndGeneral>53891</ManagementAndGeneral>
      </FeesForServicesAccounting>
      <FeesForServicesOther>
        <Total>340547</Total>
        <ProgramServices>249721</ProgramServices>
        <ManagementAndGeneral>90826</ManagementAndGeneral>
      </FeesForServicesOther>
      <Advertising>
        <Total>68536</Total>
        <ManagementAndGeneral>68536</ManagementAndGeneral>
      </Advertising>
      <OfficeExpenses>
        <Total>279449</Total>
        <ProgramServices>169141</ProgramServices>
        <ManagementAndGeneral>110308</ManagementAndGeneral>
      </OfficeExpenses>
      <InformationTechnology>
        <Total>111690</Total>
        <ManagementAndGeneral>111690</ManagementAndGeneral>
      </InformationTechnology>
      <Occupancy>
        <Total>1851581</Total>
        <ProgramServices>1775807</ProgramServices>
        <ManagementAndGeneral>75774</ManagementAndGeneral>
      </Occupancy>
      <Travel>
        <Total>56915</Total>
        <ProgramServices>35409</ProgramServices>
        <ManagementAndGeneral>21506</ManagementAndGeneral>
      </Travel>
      <ConferencesMeetings>
        <Total>17182</Total>
        <ProgramServices>14154</ProgramServices>
        <ManagementAndGeneral>3028</ManagementAndGeneral>
      </ConferencesMeetings>
      <Interest>
        <Total>668642</Total>
        <ProgramServices>615151</ProgramServices>
        <ManagementAndGeneral>53491</ManagementAndGeneral>
      </Interest>
      <DepreciationDepletion>
        <Total>2092281</Total>
        <ProgramServices>1924899</ProgramServices>
        <ManagementAndGeneral>167382</ManagementAndGeneral>
      </DepreciationDepletion>
      <Insurance>
        <Total>84579</Total>
        <ManagementAndGeneral>84579</ManagementAndGeneral>
      </Insurance>
      <OtherExpenses>
        <Description>FOOD SERVICES</Description>
        <Total>870307</Total>
        <ProgramServices>870307</ProgramServices>
      </OtherExpenses>
      <OtherExpenses>
        <Description>MEDICAL EXPENSE</Description>
        <Total>408983</Total>
        <ProgramServices>408983</ProgramServices>
      </OtherExpenses>
      <OtherExpenses>
        <Description>MISC. EXPENSE</Description>
        <Total>212229</Total>
        <ProgramServices>175813</ProgramServices>
        <ManagementAndGeneral>36416</ManagementAndGeneral>
      </OtherExpenses>
      <TotalFunctionalExpenses>
        <Total>16835206</Total>
        <ProgramServices>14274579</ProgramServices>
        <ManagementAndGeneral>2560627</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </TotalFunctionalExpenses>
      <CashNonInterestBearing>
        <BOY>633</BOY>
        <EOY>633</EOY>
      </CashNonInterestBearing>
      <SavingsAndTempCashInvestments>
        <BOY>2691533</BOY>
        <EOY>3120664</EOY>
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      <AccountsReceivable>
        <BOY>1642021</BOY>
        <EOY>1298173</EOY>
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      <InventoriesForSaleOrUse>
        <BOY>95770</BOY>
        <EOY>73422</EOY>
      </InventoriesForSaleOrUse>
      <PrepaidExpensesDeferredCharges>
        <BOY>1072701</BOY>
        <EOY>1387042</EOY>
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      <LandBuildingsEquipmentBasis>59057400</LandBuildingsEquipmentBasis>
      <LandBldgEquipmentAccumDeprec>28662750</LandBldgEquipmentAccumDeprec>
      <LandBuildingsEquipmentBasisNet>
        <BOY>31335473</BOY>
        <EOY>30394650</EOY>
      </LandBuildingsEquipmentBasisNet>
      <InvestmentsPubTradedSecurities>
        <BOY>26721164</BOY>
        <EOY>27458098</EOY>
      </InvestmentsPubTradedSecurities>
      <OtherAssetsTotal>
        <BOY>1546654</BOY>
        <EOY>2196476</EOY>
      </OtherAssetsTotal>
      <TotalAssets>
        <BOY>65105949</BOY>
        <EOY>65929158</EOY>
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      <AccountsPayableAccruedExpenses>
        <BOY>427415</BOY>
        <EOY>682938</EOY>
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      <DeferredRevenue>
        <BOY>36412594</BOY>
        <EOY>37389005</EOY>
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      <TaxExemptBondLiabilities>
        <BOY>19173632</BOY>
        <EOY>17713814</EOY>
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      <EscrowAccountLiability>
        <BOY>1634800</BOY>
        <EOY>930447</EOY>
      </EscrowAccountLiability>
      <OtherLiabilities>
        <BOY>856604</BOY>
        <EOY>397509</EOY>
      </OtherLiabilities>
      <TotalLiabilities>
        <BOY>58505045</BOY>
        <EOY>57113713</EOY>
      </TotalLiabilities>
      <FollowSFAS117>X</FollowSFAS117>
      <UnrestrictedNetAssets>
        <BOY>5442210</BOY>
        <EOY>7603075</EOY>
      </UnrestrictedNetAssets>
      <TemporarilyRestrictedNetAssets>
        <BOY>1158694</BOY>
        <EOY>1212370</EOY>
      </TemporarilyRestrictedNetAssets>
      <TotalNetAssetsFundBalances>
        <BOY>6600904</BOY>
        <EOY>8815445</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>65105949</BOY>
        <EOY>65929158</EOY>
      </TotalLiabNetAssetsFundBalances>
      <InfoInScheduleOPartXI>X</InfoInScheduleOPartXI>
      <ReconcilationRevenueExpenses>1779359</ReconcilationRevenueExpenses>
      <ReconciliationUnrealizedInvest>377652</ReconciliationUnrealizedInvest>
      <ReconcilationOtherChanges>57530</ReconcilationOtherChanges>
      <InfoInScheduleOPartXII>X</InfoInScheduleOPartXII>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>0</AccountantCompileOrReview>
      <FSAudited>1</FSAudited>
      <FSAuditedBasis>
        <FinancialStatementSeparate>X</FinancialStatementSeparate>
      </FSAuditedBasis>
      <AuditCommittee>1</AuditCommittee>
      <FederalGrantAuditRequired>0</FederalGrantAuditRequired>
    </IRS990>
    <IRS990ScheduleA documentId="RetDoc1039100001">
      <PubliclySupportedOrg509a2>X</PubliclySupportedOrg509a2>
      <GiftsGrantsContribReceived509>
        <CurrentTaxYearMinus4Years>176821</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>206379</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>50038</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>108916</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>60812</CurrentTaxYear>
        <Total>602966</Total>
      </GiftsGrantsContribReceived509>
      <GrossReceiptsFromAdmissions>
        <CurrentTaxYearMinus4Years>15767287</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>16142954</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>16106971</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>16660230</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>17042797</CurrentTaxYear>
        <Total>81720239</Total>
      </GrossReceiptsFromAdmissions>
      <Total509>
        <CurrentTaxYearMinus4Years>15944108</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>16349333</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>16157009</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>16769146</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>17103609</CurrentTaxYear>
        <Total>82323205</Total>
      </Total509>
      <AmtsRecdFromDisqualPersons>
        <CurrentTaxYearMinus1Year>983386</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>1551082</CurrentTaxYear>
        <Total>2534468</Total>
      </AmtsRecdFromDisqualPersons>
      <AmtsFromSubstContributors>
        <CurrentTaxYear>2750261</CurrentTaxYear>
        <Total>2750261</Total>
      </AmtsFromSubstContributors>
      <SupportFromDQPsEtc>
        <CurrentTaxYearMinus1Year>983386</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>4301343</CurrentTaxYear>
        <Total>5284729</Total>
      </SupportFromDQPsEtc>
      <PublicSupportTotal509>77038476</PublicSupportTotal509>
      <GrossInvestmentIncome509>
        <CurrentTaxYearMinus4Years>770705</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>673806</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>745588</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>827504</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>854842</CurrentTaxYear>
        <Total>3872445</Total>
      </GrossInvestmentIncome509>
      <InvestmentIncomeAndUBTI>
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        <CurrentTaxYearMinus3Years>673806</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>745588</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>827504</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>854842</CurrentTaxYear>
        <Total>3872445</Total>
      </InvestmentIncomeAndUBTI>
      <OtherIncome509>
        <CurrentTaxYearMinus4Years>136097</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>120748</CurrentTaxYearMinus3Years>
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        <CurrentTaxYearMinus1Year>127537</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>163874</CurrentTaxYear>
        <Total>682225</Total>
      </OtherIncome509>
      <TotalSupportTotal>
        <CurrentTaxYearMinus4Years>16850910</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>17143887</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>17036566</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>17724187</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>18122325</CurrentTaxYear>
        <Total>86877875</Total>
      </TotalSupportTotal>
      <PublicSupportPercentage509>0.88670</PublicSupportPercentage509>
      <PriorYearSupportPercentage>0.93450</PriorYearSupportPercentage>
      <InvestmentIncomePercentage>0.04460</InvestmentIncomePercentage>
      <PriorYrInvestIncomePercentage>0.04680</PriorYrInvestIncomePercentage>
      <ThirtyThreePercntTestsCY509>X</ThirtyThreePercntTestsCY509>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="RetDoc1234500001">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
        <ContributorNameBusiness>
          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleD documentId="RetDoc1040000001">
      <AgentTrusteeEtc>1</AgentTrusteeEtc>
      <BeginningBalance>503811</BeginningBalance>
      <AdditionsDuringYear>47257</AdditionsDuringYear>
      <DistributionsDuringYear>72657</DistributionsDuringYear>
      <EndingBalance>478411</EndingBalance>
      <IncludedOnFS>1</IncludedOnFS>
      <ExplanationInPartXIII>X</ExplanationInPartXIII>
      <Land>
        <OtherCostOrOtherBasis>2572434</OtherCostOrOtherBasis>
        <BookValue>2572434</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>47271115</OtherCostOrOtherBasis>
        <Depreciation>22589215</Depreciation>
        <BookValue>24681900</BookValue>
      </Buildings>
      <Equipment>
        <OtherCostOrOtherBasis>9213851</OtherCostOrOtherBasis>
        <Depreciation>6073535</Depreciation>
        <BookValue>3140316</BookValue>
      </Equipment>
      <TotalOfBookValueLandBuildings>30394650</TotalOfBookValueLandBuildings>
      <OtherLiabilities>
        <Description>INTEREST PAYABLE</Description>
        <Amount>47915</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>INTEREST RATE SWAP LIABILITY</Description>
        <Amount>40615</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>DUE TO AFFILIATES</Description>
        <Amount>74990</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>CAPITAL LEASE</Description>
        <Amount>233989</Amount>
      </OtherLiabilities>
      <TotalOfAmounts>397509</TotalOfAmounts>
      <FootnoteInPartXIII>X</FootnoteInPartXIII>
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      <NetUnrealizedGainsInvestments>377652</NetUnrealizedGainsInvestments>
      <OtherRevenues>57530</OtherRevenues>
      <RevenueNotRptdF990>435182</RevenueNotRptdF990>
      <RevenueSubtotal>18565365</RevenueSubtotal>
      <OtherRevenuesNotIncluded>49200</OtherRevenuesNotIncluded>
      <RevenueNotRptdOnFinStmt>49200</RevenueNotRptdOnFinStmt>
      <TotalRevenuePerForm990>18614565</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>16786006</TotExpensesEtcAuditedFinclStmt>
      <ExpensesNotRptdF990>0</ExpensesNotRptdF990>
      <ExpensesSubtotal>16786006</ExpensesSubtotal>
      <OtherExpensesNotIncluded>49200</OtherExpensesNotIncluded>
      <ExpensesNotRptdOnFinStmt>49200</ExpensesNotRptdOnFinStmt>
      <TotalExpensesPerForm990>16835206</TotalExpensesPerForm990>
      <Form990ScheduleDPartXIII>
        <ReturnReference>PART IV, LINE 1B:</ReturnReference>
        <Explanation>KENDAL AT ITHACA RECEIVES REFUNDABLE DEPOSITS OF $1000 EACH FROM PROSPECTIVE RESIDENTS WHO WISH TO BE ON THE PRIORITY LIST FOR MOVE-INS. THESE DEPOSITS, AND INTEREST EARNED, REMAIN THE PROPERTY OF THE PROSPECTIVE RESIDENTS AND ARE MADE DIRECTLY TO A LOCAL BANK, WHERE THEY ARE HELD IN ESCROW UNTIL OCCUPANCY OR WITHDRAWAL.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <ReturnReference>PART IV, LINE 2B:</ReturnReference>
        <Explanation>RESIDENTS PAY FEES TO THE ORGANIZATION PURSUANT TO ENTERING INTO A RESIDENCY CONTRACT. THESE FEES, NET OF THE PORTION THAT IS REFUNDABLE TO RESIDENTS, ARE RECORDED AS DEFERRED REVENUE FROM ENTRANCE FEES AND ARE AMORTIZED TO INCOME USING THE STRAIGHT-LINE METHOD OVER THE ESTIMATED REMAINING LIFE EXPECTANCY OF THE RESIDENCY OR COUPLE, ADJUSTED ANNUALLY. THE CURRENT PORTION OF REFUNDABLE ENTRANCE FEES AS OF DECEMBER 31, 2012 IS $128,200 AND THE LONG-TERM PORTION IS $802,247.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X, LINE 2:</ReturnReference>
        <Explanation>THE ORGANIZATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES PURSUANT TO SECTION 501(A) OF THE INTERNAL REVENUE CODE. THE ORGANIZATION FOLLOWS THE PROVISIONS OF THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE APPLICATION OF THESE PROVISIONS HAS NO IMPACT ON THE ORGANIZATIONS FINANCIAL STATEMENTS. THE ORGANIZATION IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE ITS TAX-EXEMPT STATUS OR OF ANY ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINESS INCOME OR EXCISE OR OTHER TAXES. THE TAX RETURNS FOR THE YEARS 2009 TO 2011 ARE OPEN TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>PART XI, LINE 2D - OTHER ADJUSTMENTS:</Identifier>
        <Explanation>CHANGE IN FAIR VALUE OF SWAP AGREEMENT 57,530.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>PART XI, LINE 4B - OTHER ADJUSTMENTS:</Identifier>
        <Explanation>GRANT IN AID 49,200.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>PART XII, LINE 4B - OTHER ADJUSTMENTS:</Identifier>
        <Explanation>GRANTS IN AID 49,200.</Explanation>
      </Form990ScheduleDPartXIII>
    </IRS990ScheduleD>
    <IRS990ScheduleI documentId="RetDoc1041900001">
      <RecordsMaintained>1</RecordsMaintained>
      <Form990ScheduleIPartIII>
        <TypeOfGrant>FINANCIAL AID TO RESIDENTS TO HELP PAY FOR THEIR MONTHLY FEES</TypeOfGrant>
        <NumberOfRecipients>3</NumberOfRecipients>
        <AmountOfCashGrant>49200</AmountOfCashGrant>
      </Form990ScheduleIPartIII>
      <Form990ScheduleIPartIV>
        <Identifier>PROCEDURE FOR MONITORING GRANTS IN THE U.S.:</Identifier>
        <ReturnReference>PART I, LINE 2:</ReturnReference>
        <Explanation>SCHEDULE I, PART I, LINE 2: THE ONLY GRANTS GIVEN BY KENDAL AT ITHACA ARE FOR RESIDENT ASSISTANCE, SPECIFICALLY, TO HELP RESIDENTS PAY THEIR MONTHLY FEES. NO MONITORING IS REQUIRED. THE GRANTS ARE DIRECTLY APPLIED TO RESIDENTS' MONTHLY BILLS AND ACT TO DECREASE THE AMOUNT OWED BY THE RESIDENTS FOR THEIR MONTHLY FEES. KENDAL AT ITHACA'S CFO ANNUALLY REVIEWS THE FINANCIAL INFORMATION PROVIDED BY RESIDENTS AND AWARDS (OR RESCINDS) GRANTS BASED ON THAT INFORMATION.</Explanation>
      </Form990ScheduleIPartIV>
    </IRS990ScheduleI>
    <IRS990ScheduleJ documentId="RetDoc1042400001">
      <CompensationSurvey>X</CompensationSurvey>
      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
      <SeverancePayment>0</SeverancePayment>
      <SupplementalNonqualRetirePlan>0</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>0</EquityBasedCompArrangement>
      <CompBasedOnRevenueOfFilingOrg>0</CompBasedOnRevenueOfFilingOrg>
      <CompBasedOnRevenueRelatedOrgs>0</CompBasedOnRevenueRelatedOrgs>
      <CompBasedNetEarningsFilingOrg>0</CompBasedNetEarningsFilingOrg>
      <CompBasedNetEarningsRelateOrgs>0</CompBasedNetEarningsRelateOrgs>
      <AnyNonFixedPayments>0</AnyNonFixedPayments>
      <InitialContractException>0</InitialContractException>
      <Form990ScheduleJPartII>
        <NamePerson>DANIEL GOVERNANTI</NamePerson>
        <Title>EXECUTIVE DIRECTOR</Title>
        <BaseCompensationFilingOrg>150493</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>1570</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>21433</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>173496</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
    </IRS990ScheduleJ>
    <IRS990ScheduleK documentId="RetDoc1053100001">
      <Form990ScheduleKPartI>
        <BondReferenceCd>A</BondReferenceCd>
        <IssuerName>
          <BusinessNameLine1>TOMPKINS COUNTY INDUSTRIAL DEVELOPMENT AGENCY</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>161214039</IssuerEIN>
        <CUSIPNumber>890099CL6</CUSIPNumber>
        <DateIssued>2003-09-04</DateIssued>
        <IssuePrice>17922286</IssuePrice>
        <DescriptionOfPurpose>REFINANCE SERIES 1994 BONDS</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <BondReferenceCd>B</BondReferenceCd>
        <IssuerName>
          <BusinessNameLine1>TOMPKINS COUNTY INDUSTRIAL DEVELOPMENT AGENCY</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>161214039</IssuerEIN>
        <CUSIPNumber>890099BQ6</CUSIPNumber>
        <DateIssued>2000-08-31</DateIssued>
        <IssuePrice>8250000</IssuePrice>
        <DescriptionOfPurpose>CONSTRUCTION OF CCRC AND REFINANCE CONSTRUCTION LOAN</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <BondReferenceCd>C</BondReferenceCd>
        <IssuerName>
          <BusinessNameLine1>TOMPKINS COUNTY DEVELOPMENT CORPORATION</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>272290745</IssuerEIN>
        <DateIssued>2012-11-20</DateIssued>
        <IssuePrice>8853091</IssuePrice>
        <DescriptionOfPurpose>REFINANCE SERIES 2003 BONDS</DescriptionOfPurpose>
        <Defeased>0</Defeased>
        <OnBehalfOfIssuer>0</OnBehalfOfIssuer>
        <PoolFinancing>0</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartII>
        <BondReferenceCd>A</BondReferenceCd>
        <AmountRetired>14477286</AmountRetired>
        <TotalProceeds>17922286</TotalProceeds>
        <AmountInReserveFund>1036750</AmountInReserveFund>
        <RefundingEscrow>16243932</RefundingEscrow>
        <IssuanceCostsFromProceeds>356600</IssuanceCostsFromProceeds>
        <CreditEnhancement>16110</CreditEnhancement>
        <CapitalExpenditures>268893</CapitalExpenditures>
        <YearOfSubstCompletion>2003</YearOfSubstCompletion>
        <CurrentRefunding>1</CurrentRefunding>
        <AdvanceRefunding>0</AdvanceRefunding>
        <FinalAllocationMade>1</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>1</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <BondReferenceCd>B</BondReferenceCd>
        <AmountRetired>2835000</AmountRetired>
        <TotalProceeds>8250000</TotalProceeds>
        <AmountInReserveFund>562025</AmountInReserveFund>
        <RefundingEscrow>4770395</RefundingEscrow>
        <IssuanceCostsFromProceeds>165000</IssuanceCostsFromProceeds>
        <CreditEnhancement>48043</CreditEnhancement>
        <CapitalExpenditures>2704537</CapitalExpenditures>
        <YearOfSubstCompletion>2000</YearOfSubstCompletion>
        <CurrentRefunding>1</CurrentRefunding>
        <AdvanceRefunding>0</AdvanceRefunding>
        <FinalAllocationMade>1</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>1</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <BondReferenceCd>C</BondReferenceCd>
        <TotalProceeds>8853091</TotalProceeds>
        <AmountInReserveFund>537450</AmountInReserveFund>
        <RefundingEscrow>8060405</RefundingEscrow>
        <IssuanceCostsFromProceeds>177062</IssuanceCostsFromProceeds>
        <CapitalExpenditures>78174</CapitalExpenditures>
        <YearOfSubstCompletion>2012</YearOfSubstCompletion>
        <CurrentRefunding>1</CurrentRefunding>
        <AdvanceRefunding>0</AdvanceRefunding>
        <FinalAllocationMade>1</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>1</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartIII>
        <BondReferenceCd>A</BondReferenceCd>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PrcntgePrvtBusinessUseByOthers>0.00000</PrcntgePrvtBusinessUseByOthers>
        <PercentageOfPrvtBusinessReUBI>0.00000</PercentageOfPrvtBusinessReUBI>
        <TotalPrivateBusinessUse>0.00000</TotalPrivateBusinessUse>
        <BondIssMeetPrvtSecurityPayTest>0</BondIssMeetPrvtSecurityPayTest>
        <ChangeInUseBondFinancedProp>0</ChangeInUseBondFinancedProp>
        <NonQualifiedBondRemedProcdrs>0</NonQualifiedBondRemedProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <BondReferenceCd>B</BondReferenceCd>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PrcntgePrvtBusinessUseByOthers>0.00000</PrcntgePrvtBusinessUseByOthers>
        <PercentageOfPrvtBusinessReUBI>0.00000</PercentageOfPrvtBusinessReUBI>
        <TotalPrivateBusinessUse>0.00000</TotalPrivateBusinessUse>
        <BondIssMeetPrvtSecurityPayTest>0</BondIssMeetPrvtSecurityPayTest>
        <ChangeInUseBondFinancedProp>0</ChangeInUseBondFinancedProp>
        <NonQualifiedBondRemedProcdrs>0</NonQualifiedBondRemedProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <BondReferenceCd>C</BondReferenceCd>
        <OwningBondFinancedProperty>0</OwningBondFinancedProperty>
        <AnyLeaseArrangements>0</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>0</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>0</AnyResearchAgreements>
        <PrcntgePrvtBusinessUseByOthers>0.00000</PrcntgePrvtBusinessUseByOthers>
        <PercentageOfPrvtBusinessReUBI>0.00000</PercentageOfPrvtBusinessReUBI>
        <TotalPrivateBusinessUse>0.00000</TotalPrivateBusinessUse>
        <BondIssMeetPrvtSecurityPayTest>0</BondIssMeetPrvtSecurityPayTest>
        <ChangeInUseBondFinancedProp>0</ChangeInUseBondFinancedProp>
        <NonQualifiedBondRemedProcdrs>0</NonQualifiedBondRemedProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIV>
        <BondReferenceCd>A</BondReferenceCd>
        <Form8038TFiled>1</Form8038TFiled>
        <VariableRateIssue>1</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>1</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>WELLS FARGO</BusinessNameLine1>
        </NameOfHedgeProvider>
        <TermOfHedge>15.103600000000</TermOfHedge>
        <SuperintegratedHedge>0</SuperintegratedHedge>
        <HedgeTerminated>0</HedgeTerminated>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <WrittenProcToMonitorReqs>0</WrittenProcToMonitorReqs>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <BondReferenceCd>B</BondReferenceCd>
        <Form8038TFiled>1</Form8038TFiled>
        <VariableRateIssue>1</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>1</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>WELLS FARGO</BusinessNameLine1>
        </NameOfHedgeProvider>
        <TermOfHedge>5.424000000000</TermOfHedge>
        <SuperintegratedHedge>0</SuperintegratedHedge>
        <HedgeTerminated>0</HedgeTerminated>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <WrittenProcToMonitorReqs>0</WrittenProcToMonitorReqs>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <BondReferenceCd>C</BondReferenceCd>
        <Form8038TFiled>1</Form8038TFiled>
        <VariableRateIssue>0</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>1</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>WELLS FARGO</BusinessNameLine1>
        </NameOfHedgeProvider>
        <TermOfHedge>7.311500000000</TermOfHedge>
        <SuperintegratedHedge>0</SuperintegratedHedge>
        <HedgeTerminated>0</HedgeTerminated>
        <GrossProceedsInvestedInGIC>0</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>0</GrossProceedsInvested>
        <WrittenProcToMonitorReqs>0</WrittenProcToMonitorReqs>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartV>
        <BondReferenceCd>A</BondReferenceCd>
        <ProcToUndertkCorrectiveAction>1</ProcToUndertkCorrectiveAction>
      </Form990ScheduleKPartV>
      <Form990ScheduleKPartV>
        <BondReferenceCd>B</BondReferenceCd>
        <ProcToUndertkCorrectiveAction>1</ProcToUndertkCorrectiveAction>
      </Form990ScheduleKPartV>
      <Form990ScheduleKPartV>
        <BondReferenceCd>C</BondReferenceCd>
        <ProcToUndertkCorrectiveAction>1</ProcToUndertkCorrectiveAction>
      </Form990ScheduleKPartV>
    </IRS990ScheduleK>
    <IRS990ScheduleL documentId="RetDoc1042800001">
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>DAVID CALL</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>A RESIDENT OF THE COMMUNITY THAT CURRENTLY SERVES ON THE BOARD OF DIRECTORS</Relationship>
        <AmountOfTransaction>79386</AmountOfTransaction>
        <DescriptionOfTransaction>PAYMENT OF MONTHLY FEES,ANCILLARY CHARGES, AND DONATIONS</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>SHIRLEY DURFEE</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>A RESIDENT OF THE COMMUNITY THAT CURRENTLY SERVES ON THE BOARD OF DIRECTORS</Relationship>
        <AmountOfTransaction>66045</AmountOfTransaction>
        <DescriptionOfTransaction>PAYMENT OF MONTHLY FEES,ANCILLARY CHARGES, AND DONATIONS</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>CAROL SISLER</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>A RESIDENT OF THE COMMUNITY THAT CURRENTLY SERVES ON THE BOARD OF DIRECTORS</Relationship>
        <AmountOfTransaction>78287</AmountOfTransaction>
        <DescriptionOfTransaction>PAYMENT OF MONTHLY FEES,ANCILLARY CHARGES, AND DONATIONS</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>DONALD STEWART</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>BOARD MEMBER WITH PARENT OR IN-LAW WHO IS A RESIDENT(JOHN &amp; ELLEN STEWART)</Relationship>
        <AmountOfTransaction>75430</AmountOfTransaction>
        <DescriptionOfTransaction>PAYMENT OF MONTHLY FEES AND ANCILLARY CHARGES</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>JANET CORSON-RIKERT</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>SEE FOLLOWING INFORMATION</Relationship>
        <AmountOfTransaction>126168</AmountOfTransaction>
        <DescriptionOfTransaction>PAYMENT OF MONTHLY FEES,ANCILLARY CHARGES, AND DONATIONS</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartV>
        <Identifier>FORM 990, SCHEDULE L, PART V</Identifier>
        <ReturnReference>BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS</ReturnReference>
        <Explanation>(A) NAME OF PERSON: JANET CORSON-RIKERT(B) RELATIONSHIP BETWEEN INTERESTED PESON AND ORGANIZATION:A FORMER BOARD MEMBER WITH A PARENT OR IN-LAW WHO IS A RESIDENT (DALE AND NELLIE CORSON) (CARROLL RIKERT, JR.)(C) AMOUNT OF TRANSACTION $71,104 (DALE AND NELLIE CORSON) AND $55,064 (CARROLL RIKERT, JR.)(D) DESCRIPTION OF TRANSACTION: PAYMENT OF MONTHLY FEES, ANCILLARY CHARGES, AND DONATIONS.</Explanation>
      </Form990ScheduleLPartV>
    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>BRIEFLY DESCRIBE THE ORGANIZATION'S MISSION</Identifier>
        <ReturnReference>FORM 990, PART III, LINE 1</ReturnReference>
        <Explanation>KENDAL AT ITHACA IS A NOT-FOR-PROFIT CONTINUING CARE RETIREMENT COMMUNITY. OUR VISION IS TO BE A COMMUNITY WHOSE HALLMARKS ARE THE QUAKER VALUES OF RESPECT, CARE, AND TRUST. IN ADDITION WE STRIVE TO BE GOOD STEWARDS OF OUR RESOURCES AND ENVIRONMENT. OUR MISSION IS TO PROVIDE A MUTUALLY SUPPORTIVE ENVIRONMENT FOR RESIDENTS AND STAFF, AND TO CONTRIBUTE TO THE GREATER ITHACA COMMUNITY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 1</ReturnReference>
        <Explanation>THE EXECUTIVE COMMITTEE IS AUTHORIZED TO TREAT ISSUES AND/OR MAKE DECISIONS ON BEHALF OF THE BOARD, WHEN NECESSARY AND URGENT, BETWEEN BOARD MEETINGS OR WHEN A BOARD QUORUM CANNOT BE RAISED. THE EXECUTIVE COMMITTEE MAY PROVIDE LEADERSHIP AND DIRECTION TO THE EXECUTIVE DIRECTOR; AND PERFORM THE EXECUTIVE DIRECTOR'S ANNUAL REVIEW IN COLLABORATION WITH THE PRESIDENT OF KENDAL NEW YORK. THE EXECUTIVE COMMITTEE MAY NOT FILL VACANCIES ON THE BOARD OR IN ANY COMMITTEE, FIX THE COMPENSATION OF TRUSTEES FOR SERVING ON THE BOARD OR ANY COMMITTEE, AMEND OR REPEAL THE BYLAWS OR ADOPT NEW BYLAWS, AND/OR AMEND OR REPEAL ANY RESOLUTION OF THE BOARD WHICH BY ITS TERMS SHALL NOT BE SO AMENDABLE OR REPEALABLE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>KENDAL AT ITHACA IS AFFILIATED WITH KENDAL NEW YORK THROUGH BYLAW REQUIREMENTS. KENDAL NEW YORK MUST APPROVE THE ELECTION OF BOARD MEMBERS OF KENDAL AT ITHACA AND ANY AMENDMENTS TO THE ARTICLES OF INCORPORATION OR SPECIFIC SECTIONS OF THE BYLAWS OF KENDAL AT ITHACA AS WELL AS THE INCURRENCE OF DEBT OF SPECIFIED VALUE; CHANGES IN CORPORATE PURPOSE; USE OF THE NAME KENDAL; THE SUBSTANCE OF RESIDENT CONTRACTS; AND THE PURCHASE, SALE, LEASE, OR OTHER DISPOSITION OF ANY REAL ESTATE OR IMPROVEMENTS THEREON OF A SPECIFIC VALUE; AND DISSOLUTION, MERGER WITH ANOTHER ENTITY, DIVISION, OR ACQUIRING CONTROL OF ANOTHER ENTITY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE FORM 990 IS REVIEWED BY THE FINANCE COMMITTEE AND IS ALSO DISTRIBUTED TO ALL BOARD MEMBERS BEFORE IT IS FILED WITH THE INTERNAL REVENUE SERVICE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>A CONFLICT OF INTEREST IS DEFINED AS "EXCESS BENEFIT" TO THE DISQUALIFIED PERSON. EXCESS BENEFITS MAY ARISE FROM A TRANSACTION IN WHICH THE AMOUNT OF THE ECONOMIC BENEFIT PROVIDED BY KENDAL AT ITHACA TO OR FOR THE USE OF THE DISQUALIFIED PERSON EXCEEDS THE VALUE OF THE CONSIDERATION (INCLUDING THE PERFORMANCE OF SERVICES) RECEIVED BY KENDAL AT ITHACA FOR PROVIDING SUCH BENEFIT. ALL MEMBERS OF THE KENDAL AT ITHACA BOARD OF TRUSTEES AND STAFF ARE COVERED BY THIS POLICY. ANY PERSON WHO REASONABLY BELIEVES THEY MAY BE AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF AND THE MATERIAL FACTS OF THE NATURE OF HIS OR HER INTEREST TO THE TRUSTEES OR MEMBERS OF THE COMMITTEE CONSIDERING THE PROPOSED TRANSACTION. SUCH DISCLOSURE SHALL INCLUDE ANY RELEVANT AND MATERIAL FACTS KNOWN TO SUCH PERSON ABOUT THE TRANSACTION AND ALL FACTS RELATING TO THE REASON THAT SUCH PERSON MIGHT BE A DISQUALIFIED PERSON. WHEN A PERSON DISCLOSES THEY MAY BE A DISQUALIFIED PERSON, THE BODY TO WHICH THE DISCLOSURE IS MADE SHALL THEREUPON, BY MAJORITY VOTE (OTHER THAN THE PERSON WHO MADE THE DISCLOSURE), DETERMINE WHETHER THE PERSON IS A DISQUALIFIED PERSON OR IS A POTENTIALLY DISQUALIFIED PERSON. IF IT IS DETERMINED THAT SUCH PERSON IS A DISQUALIFIED PERSON, SUCH PERSON SHALL NOT VOTE ON, NOR USE HIS PERSONAL INFLUENCE ON, NOR PARTICIPATE IN THE DISCUSSIONS OR DELIBERATIONS WITH RESPECT TO SUCH CONTRACT OR OTHER TRANSACTION. SUCH PERSON MAY PRESENT FACTUAL INFORMATION OR RESPOND TO QUESTIONS AS MAY BE REQUIRED BY THE REMAINDER OF THE BOARD OR COMMITTEE. THE DISQUALIFIED PERSON SHALL WITHDRAW FROM THE MEETING UNTIL THE DISCUSSION OR DISCUSSIONS, INCLUDING ANY VOTES TAKEN, HAS BEEN COMPLETED. THE MINUTES OF THE MEETING SHALL REFLECT THE DISCLOSURE OF THE DISQUALIFIED PERSON AND HIS/HER WITHDRAWAL FROM THE MEETING. EACH TRUSTEE, DIRECTOR, PRINCIPAL OFFICER, AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH A PERSON HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY, HAS AGREED TO COMPLY WITH THE POLICY, AND HAS DISCLOSED ALL KNOWN CONFLICTS OF INTEREST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>THE EXECUTIVE DIRECTOR'S COMPENSATION IS DETERMINED BY THE BOARD'S EXECUTIVE COMMITTEE IN CONSULTATION WITH KENDAL CORPORATION STAFF. KENDAL AT ITHACA'S HUMAN RESOURCES DIRECTOR AND EXECUTIVE DIRECTOR DETERMINE COMPENSATION FOR ALL STAFF, USING COMPARATIVE INDEPENDENT DATA. THIS PROCESS IS DONE FOR ALL EMPLOYEES ON AN ANNUAL BASIS. THIS PROCESS WAS LAST UNDERTAKEN IN OCTOBER 2012.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 18</ReturnReference>
        <Explanation>THE ORGANIZATION MAKES ITS 990 AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. THE INFORMATION IS ALSO PUBLISHED ON THEIR WEBSITE (WWW.KAI.KENDAL.ORG) AND ON ANOTHER WEBSITE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 9:</ReturnReference>
        <Explanation>CHANGE IN FAIR VALUE OF INTEREST RATE SWAP 57,530.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMMITTEE THAT ASSUMES RESPONSIBILITY OF THE AUDIT</Identifier>
        <ReturnReference>FORM 990 PART XII, LINE 2C</ReturnReference>
        <Explanation>THE ORGANIZATION HAS AN AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KENDAL AT OBERLIN</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 KENDAL DRIVE</AddressLine1>
          <City>OBERLIN</City>
          <State>OH</State>
          <ZIPCode>440741900</ZIPCode>
        </AddressUS>
        <EIN>341567246</EIN>
        <PrimaryActivities>OPERATE CCRC</PrimaryActivities>
        <LegalDomicileState>OH</LegalDomicileState>
        <ExemptCodeSection>501C(3)</ExemptCodeSection>
        <PublicCharityStatus>9</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>LEXINGTON RETIREMENT COMMUNITY INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>160 KENDAL DRIVE</AddressLine1>
          <City>LEXINGTON</City>
          <State>VA</State>
          <ZIPCode>24450</ZIPCode>
        </AddressUS>
        <EIN>541795871</EIN>
        <PrimaryActivities>OPERATE CCRC</PrimaryActivities>
        <LegalDomicileState>VA</LegalDomicileState>
        <ExemptCodeSection>501C(3)</ExemptCodeSection>
        <PublicCharityStatus>9</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KENDAL AT HANOVER</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>80 LYME ROAD</AddressLine1>
          <City>HANOVER</City>
          <State>NH</State>
          <ZIPCode>037551218</ZIPCode>
        </AddressUS>
        <EIN>020519490</EIN>
        <PrimaryActivities>OPERATE CCRC</PrimaryActivities>
        <LegalDomicileState>NH</LegalDomicileState>
        <ExemptCodeSection>501C(3)</ExemptCodeSection>
        <PublicCharityStatus>9</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
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</Return>