NOTICE OF PUBLIC HEARING REGARDING FINANCING AND REFINANCING OF HEALTH CARE FACILITIES WITH THE PROCEEDS OF TAX-EXEMPT BONDS TO BE ISSUED BY THE NORTH CAROLINA MEDICAL CARE COMMISSION

NOTICE OF PUBLIC HEARING REGARDING FINANCING AND REFINANCING OF HEALTH CARE FACILITIES WITH THE PROCEEDS OF TAX-EXEMPT BONDS TO BE ISSUED BY THE NORTH CAROLINA MEDICAL CARE COMMISSION NOTICE IS HEREBY GIVEN to all interested persons that the North Carolina Medical Care Commission (the "Commission"), for itself and on behalf of the State of North Carolina, will hold a public hearing in Conference Room L2-02210 at 1915 Health Services Way, Raleigh, North Carolina on June 29, 2026 at 11:30 a.m., at which time any person may be heard regarding the health care facilities proposed to be financed and refinanced by the Commission with proceeds from the issuance of one or more series of tax-exempt bonds (the "Bonds"). The Commission has been requested to issue the Bonds and to lend the proceeds from the sale thereof to Carolina Village, Inc., a North Carolina nonprofit corporation and an organization described in Section 501(c)(3) of the Code (the "Corporation"). The maximum stated principal amount of Bonds to be issued is $50,000,000. The Bonds will be qualified 501(c)(3) bonds as defined in Section 145 of the Internal Revenue Code, and the Corporation may use the proceeds of the Bonds to (1) pay or reimburse the Corporation for paying all or a portion of the cost of the 2026 Project (as described below), (2) refund all or a portion of the Commission's Retirement Facilities First Mortgage Revenue Refunding Bonds (Carolina Village), Series 2017A (the "2017A Bonds"), outstanding in a principal amount of approximately $26,130,000 as of July 1, 2026, (3) pay a portion of the interest accruing on the portion of the Bonds being used to finance the 2026 Project, (4) fund a debt service reserve fund, if necessary, and (5) pay certain expenses incurred in connection with the authorization and issuance of the Bonds by the Commission. The "2026 Project" consists of (1) significant renovations and improvements to the Corporation's continuing care retirement community known as Carolina Village (the "Community"), including existing independent living apartment buildings, (2) improvements to the sewer system for the existing Community, and (3) pre-construction and development expenses (e.g., design and engineering costs, land acquisition, feasibility studies and reports, and marketing activities) for the future planned expansion of the Community to include a new approximately 60-unit independent living apartment building. The maximum stated principal amount of the Bonds being used for the 2026 Project is $20,000,000. Proceeds of the 2017A Bonds, together with proceeds from the Commission's Retirement Facilities First Mortgage Revenue Bonds (Carolina Village Project), Series 2017B (the "2017B Bonds") and its Variable Rate Retirement Facilities First Mortgage Revenue Bonds (Carolina Village Project), Series 2017C (the "2017C Bonds," and collectively with the 2017A Bonds and the 2017B Bonds, the "2017 Bonds"), were used to (1) pay, or reimburse the Corporation for paying, all or a portion of the cost of acquiring, improving, constructing and equipping health care facilities at the Community, including (a) construction and equipping of a four-story independent living apartment building, (b) construction and equipping of various sixplexes and duplexes resulting in 54 new independent living units and (c) renovating and improving common areas and grounds of the Community, including Main Street (as described below) facilities, parking and maintenance facilities and entrance road improvements (collectively, the "2017 Project"); (2) refund existing indebtedness of the Corporation, the proceeds of which were used to pay a portion of the costs of the 2017 Project; (3) refund existing indebtedness of the Corporation, the proceeds of which were used to pay a portion of the cost of improving and renovating the Community, including (a) the kitchen and the dining room and (b) construction of a multipurpose area of the Community known as "Main Street," including the construction and equipping of an aquatic center containing a lap pool, a therapy pool, fitness room and locker rooms, as well as a theatre, on-site pharmacy, mail center, education center and business office, staff support offices and space to provide specialty services such as massage therapy, travel and transportation services (collectively, the "2012 Project"); (4) advance refund $17,460,000 of the Commission's then outstanding Retirement Facilities First Mortgage Revenue Bonds (Carolina Village Project) Series 2008A (the "2008A Bonds"); (5) refund all $15,865,000 of the Commission's then outstanding Variable Rate Retirement Facilities First Mortgage Revenue Refunding Bonds (Carolina Village) Series 2013A (the "2013A Bonds") and pay a termination payment with respect to an interest rate swap relating to the 2013A Bonds; (6) pay a portion of the interest accruing on the 2017 Bonds during the construction and renovation of the 2017 Project; (7) fund one or more debt service reserve funds; and (8) pay certain expenses incurred in connection with the issuance of the 2017 Bonds by the Commission. The proceeds of the 2008A Bonds were used to (a) pay, or reimburse the Corporation for paying, all or a portion of the cost of acquiring, improving, constructing and equipping health care facilities at the Community, including (i) the construction and equipping of a three-story independent living apartment building, with 63 one- and two-bedroom apartments, (ii) the construction and equipping of a 60-bed assisted living building to replace the existing assisted living center at the Community, (iii) the renovation, construction and equipping of laundry facilities and (iv) the renovation of building façades and the replacement of windows (collectively, the "2008 Project"); (b) refund existing indebtedness of the Corporation, the proceeds of which were used to pay a portion of the costs of the 2008 Project; (c) pay a portion of the interest accruing on the 2008A Bonds during the construction and renovation of the 2008 Project; (d) fund a debt service reserve fund and (e) pay, or reimburse the Corporation for paying, certain expenses incurred in connection with the issuance of the 2008A Bonds by the Commission. The proceeds of the 2013A Bonds were used to refund all $3,500,000 of the Commission's then outstanding Health Care Facilities Revenue Bonds (Carolina Village, Inc. Project), Series 1998 (the "1998 Bonds"); (b) refund all $15,000,000 of the Commission's then outstanding Variable Rate Retirement Facilities First Mortgage Revenue Bonds (Carolina Village Project) Series 2008C (the "2008C Bonds"); and (c) pay certain expenses incurred in connection with the issuance of the 2013A Bonds by the Commission. The proceeds of the 1998 Bonds were used to (a) finance a portion of the cost of improving and further equipping health care facilities at the Community including the cost of constructing a new 58-bed skilled nursing facility (the "1998 Project") and (b) pay certain expenses incurred in connection with the issuance of the 1998 Bonds by the Commission. The proceeds of the 2008C Bonds were used to (a) pay, or reimburse the Corporation for paying, all or a portion of the cost of the 2008 Project; (b) refund existing indebtedness of the Corporation, the proceeds of which were used to pay a portion of the costs of the 2008 Project; (c) pay a portion of the interest accruing on the 2008C Bonds during the construction and renovation of the 2008 Project; and (d) pay, or reimburse the Corporation for paying, certain expenses incurred in connection with the issuance of the 2008C Bonds by the Commission. The 1998 Project, the 2008 Project, the 2012 Project, the 2017 Project and the 2026 Project are referred to collectively as the "Project." The Project is owned and operated by the Corporation and is located at the Community at 600 Carolina Village Road, Hendersonville, North Carolina 28792. Any person wishing to comment in writing on the issuance of the Bonds or the financing and refinancing of the Project with the proceeds of the Bonds should forward comments, for receipt prior to the date and time of the public hearing specified above, to Mr. Geary W. Knapp, Assistant Secretary, North Carolina Division of Health Service Regulation, North Carolina Medical Care Commission, 1915 Health Services Way, Raleigh, North Carolina 27607. NORTH CAROLINA MEDICAL CARE COMMISSION By: Geary W. Knapp Assistant Secretary June 19 2026 LWLM0540476