SMA RESERVES. Miramar Plaza Homeowners' Association. Reserve Study For Fiscal Year: 10/01/2014 through 09/30/2015

Transcription

1 SMA RESERVES Miramar Plaza Homeowners' Association Reserve Study Update w/o Visual Inspection July 15, 2014 Reserve Study For Fiscal Year: 10/01/2014 through 09/30/2015 SMA RESERVES 2059 Camden Ave. Suite 151 San Jose, CA PH: (408) RESERVE STUDIO 1.0

2 Property Description Level of Service General Information The following reserve study assessment is based upon information and data available to us during the course of the study. Factual information provided by the association, managing agent, and association contracted service providers, regarding past or current reserve projects, financial data, physical characteristics, component quantities, or historical issues are assumed to be correct and complete. The initial reserve fund cash balance is derived from the Association's balance sheet as provided by the Association or managing agent. The conclusions and recommendations presented in this report have been based on visual observations and opinion of the reserve inspector at the time of inspection. Miramar Plaza is a 17 building, 139 condo/townhome project located in Santa Clara, CA. The property features buildings which contain a mix of townhomes and condominiums, with garage parking. The townhomes have wood deck porch entries, and the condo entries feed off of a common covered stairwell. The project contains concrete pathways, garden areas, and a swimming pool with restrooms. This reserve study has been prepared to meet California Civil Code section 5570, and the National Reserve Study Standards published by the Community Associations Institute (CAI). The level of service performed in this reserve study was a Reserve Study Update w/o Visual Inspection, in which the following three objectives were performed: Updated Life and Valuation Estimates Reserve Fund Status Funding Plan This study is not intended for the purpose of performing quality/forensic analyses, background check of historical records, or an audit or review of a previous reserve study. No visual inspection was included in this report. No invasive or destructive testing has been performed as a part of this study. Since no destructive testing was undertaken, this study does not purport to address any latent and/or patent defects, nor does it address any life expectancies, which are abnormally short due to either improper design or installation, or to subsequent improper maintenance. Additionally, an components not accessible to the inspector have been omitted from this study. This study assumes that all components will be properly maintained for the remainder of their life expectancy. Page 1 of 23 7/15/2014

3 Reserve Study Goals and Objectives This reserve study financial update includes a financial analysis of the associations reserve fund only. All association information in this report has been taken from the previous reserve study report dated 09/11/2013 by SMA Reserves. SMA Reserves has only updated the unit cost for inflation and the Remaining Life to reflect the new Fiscal Year. All updated component costs and remaining life has been provided by the association's manager or primary contact. The financial analysis is a determination and opinion of the current or projected status of the Association's reserve fund cash balance. The financial analysis includes a reserve funding plan which may have been modified by the Association's board or managing agent as a part of this study. The funding plan included in this report should reflect the Association's anticipated annual reserve contributions and anticipated special assessments, if applicable, as of the date of the report. The funding plan included herein is evaluated based on a cash flow method, whereby contribution to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. The funding goal selected in this report is designed to maintain a minimum threshold balance equal to 5% of the total replacement cost of all components included in the study. The reserve funding plan provides a 5 year reserve fund contribution schedule and anticipated special assessments, if applicable, in order to meet an adequate reserve funding level. Basis for Life Expectancies and Cost Estimates Life expectancy and cost estimates are prepared based on information available to the reserve preparer and the most recent reserve study that included an on site visual inspection. Costs and life expectancies are generally updated based on additional expired age and inflationary increases from the previous reserve study, unless a more accurate means of analysis has been provided from information derived by the board or managing agent. In preparing this level 3 reserve study update the component inventory, life expectancies, and unit costs have been imported from the previous reserve study or update prepared by SMA Reserves dated September 11, No independent review of the components, life expectancies, or unit costs were performed as a part of this study. The projected life expectancy of the major components and the funding needs of the reserves of the Association are based upon the Association performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful of the major components and dramatically increase the funding needs of the reserves of the Association. Page 2 of 23 7/15/2014

4 Status of the Reserve Fund The status of the reserve fund cash balance is evaluated as either adequate or inadequate. The reserve fund cash balance is considered adequate if the anticipated cash balance of the reserve fund is greater than or equal to a threshold balance of 5% for each year over the next thirty years without the anticipated need for a special assessment or increase greater than inflation. The Association's current reserve fund cash balance is inadequate. It is recommended that the Association increase their reserve contribution in order to fund anticipated future repairs. Agent Involvement This reserve study was prepared by David Hodges and reviewed by Erik Sundquist. David Hodges is a graduate of the Orfalea College of Business at Cal Poly San Luis Obispo with over 8 years experience in finance, accounting and business management. Erik Sundquist has been certified as a Reserve Specialist (RS) by the Community Associations Institute (CAI), graduated with highest honors from UC Berkeley, and has over 25 years experience in construction, construction management, estimating, and design. Terms and Definitions COMPONENT: The individual line items in the Reserve Study, developed or updated in the Physical Analysis. These elements form the building blocks for the Reserve Study. Components typically are: 1) Association responsibility, 2) with limited Useful Life expectancies, 3) predictable Remaining Useful Life expectancies, 4) above a minimum threshold cost, and 5) as required by local codes. FULLY FUNDED: 100% Funded. When the actual (or projected) Reserve balance is equal to the Fully Funded Balance. REMAINING USEFUL LIFE (RUL): Also referred to as Remaining Life (RL). The estimated time, in years, that a reserve component can be expected to continue to serve its intended function. Projects anticipated to occur in the initial year have zero Remaining Useful Life. USEFUL LIFE (UL): Total Useful Life or Depreciable Life. The estimated time, in years, that a reserve component can be expected to serve its intended function if properly constructed in its present application or installation. PROJECT MANAGEMENT AND ADMINISTRATION (PM&A): It is added to each component to account for additional costs beyond the base component cost such as construction management fees, expansion of project scope, hidden damage, additional association management costs, etc. DEFERRAL (DEF): Deferrals allow an association to extend repairs to a component beyond the recommended useful life. Page 3 of 23 7/15/2014

5 Three Year Projects Summary Report Miramar Plaza Homeowners' Association Report Date: 7/15/ /15 Anticipated Reserve Projects Schedule 2015/16 Anticipated Reserve Projects Schedule 9 Landscape Landscaping Enhancements 5, Patching, Minor - Replacement Allowance 4, Asphalt Pavement, Seal Coat, Paint Curbs, Str 8, Pool & Spa Pool Filter, Pump (1) Replacement Allowance 1, Pathway Bollards, Allowance 1, Exterior Lighting Pathway Bollards, Allowance 1, Circulating Pump - Replacement Allowance 1, Hot Water Heater & Damper - Replacement All 7, Plumbing Circulating Pump Replacement Allowance 1, /16 Total Anticipated Expenditure 23, Plumbing Hot Water Heater & Damper Replacement Allowance 7, /16 Anticipated Beg. Cash Balance 459, /15 Total Anticipated Reserve Expenditure 16, /15 Anticipated Reserve Fund Beg. Cash Balance 318, /17 Anticipated Reserve Projects Schedule 8 Irrigation Controllers 4,371 9 Landscaping Enhancements 5, Tile Roofing, Inspection & Repairs 8, Pathway Bollards, Allowance 1, Circulating Pump - Replacement Allowance 1, Hot Water Heater & Damper - Replacement All 7, Water Heater, 40 gal 1, /17 Total Anticipated Expenditure 29, /17 Anticipated Beg. Cash Balance 602,223 Page 4 of 23 7/15/2014

6 Miramar Plaza Homeowners' Association Report Date: 7/15/2014 Santa Clara, CA Reserve Study Financial Summary Fiscal Year End: 9/30/2014 Status of the Reserve Fund as of September 30, 2014 Reserve Fund Cash Balance as of September 30, , Anticipated Interest Revenue prior to September 30, Community Information Anticipated Reserve Fund Contribution prior to September 30, Fiscal Year Start Anticipated Reserve Fund Expenditures prior to September 30, 2014 Fiscal Year End Projected Reserve Fund Cash Balance 318, Community Type Projected Fully Funded Balance 1,306, Number of Units Percent Funded 24% Year Built October 1, 2014 September 30, 2015 Townhomes - Condo Avg. Reserve Fund Surplus / (Deficit) per Member (7,106.54) Last Inspected *FYE cash balance estimated by manager as of 6/16/2014 June 1, 2012 Five Year - Cash Flow Funding Plan Summary Fiscal Year Ending Reserve Contribution Special Assessment Percent Funded Computation Parameters 2014/15 151,642-32% Inflation Rate 3.00 % 2015/16 157,252-37% Interest Rate 2.00 % 2016/17 163,071-42% Threshold Factor 5.00 % 2017/18 169,104-47% 2018/19 175,361-39% Prior Year Fund Contribution $146,231 Summary Notice: This five year funding plan summary is provided in accordance with California Civil Code Section The full reserve study plan is available and will be provided, by the Association, to any member upon request. Page 5 of 23 7/15/2014

7 Cash Flow Funding Plan Miramar Plaza Homeowners' Association Report Date: 7/15/2014 Fiscal Year Annual Reserve Contribution Monthly Reserve Assessment Percent Increase Anticipated Beginning Cash Balance Estimated Interest Anticipated Reserve Expense Anticipated Special Assessment Anticipated FYE Cash Balance Fully Funded Balance Surplus/ (Deficit) of FFB Projected FYE Percent Funded 2014/15 151, % 318,200 6,041 16, ,731 1,457,222 (997,492) 32% 2015/16 157,252 S % 459,731 8,725 23, ,223 1,609,279 (1,007,057) 37% 2016/17 163, % 602,223 11,451 29, ,056 1,763,484 (1,016,429) 42% 2017/18 169, % 747,056 14,311 31, ,940 1,924,513 (1,025,573) 47% 2018/19 175, % 898,940 9, , ,537 1,695,131 (1,030,594) 39% 2019/20 181, % 664, , ,982 1,194,332 (1,028,350) 14% 2020/21 188, % 165,982 2,959 18, ,462 1,365,202 (1,025,740) 25% 2021/22 195, % 339,462 3, , ,972 1,416,131 (1,021,159) 28% 2022/23 202, % 394,972 6,141 87, ,980 1,531,049 (1,015,068) 34% 2023/24 210, % 515,980 10,068 12, ,740 1,731,885 (1,008,145) 42% 2024/25 218, % 723,740 6, , ,631 1,530,970 (996,339) 35% 2025/26 226, % 534,631 9,702 49, ,967 1,704,013 (983,046) 42% 2026/27 234, % 720,967 2, , ,340 1,309,924 (962,584) 27% 2027/28 243, % 347,340 3, , ,550 1,380,724 (939,174) 32% 2028/29 252, % 441,550 7,697 56, ,755 1,558,392 (913,637) 41% 2029/30 261, % 644,755 10,983 95, ,626 1,707,109 (885,483) 48% 2030/31 271, % 821,626 3, , ,130 1,313,354 (849,223) 35% 2031/32 281, % 464,130 8,574 35, ,515 1,528,947 (810,431) 47% 2032/33 291, % 718,515 13,343 51, ,106 1,740,941 (768,835) 56% 2033/34 302, % 972,106 18,642 39,982 1,253,190 1,977,611 (724,421) 63% 2034/35 313, % 1,253,190 22, ,922 1,446,086 2,122,122 (676,036) 68% 2035/36 325, % 1,446,086 26, ,054 1,688,989 2,312,823 (623,834) 73% 2036/37 337, % 1,688,989 23, ,665 1,514,660 2,078,047 (563,388) 73% 2037/38 349, % 1,514,660 27, ,545 1,775,804 2,274,288 (498,484) 78% 2038/39 362, % 1,775,804 34,362 57,697 2,115,136 2,544,647 (429,511) 83% 2039/40 376, % 2,115,136 40,477 91,302 2,440,397 2,796,351 (355,954) 87% 2040/41 390, % 2,440,397 48,156 32,612 2,845,942 3,124,139 (278,197) 91% 2041/42 404, % 2,845,942 55,967 47,596 3,258,743 3,454,651 (195,908) 94% 2042/43 419, % 3,258,743 46, ,419 2,786,126 2,886,106 (99,980) 97% 2043/44 434, % 2,786,126 55,267 22,760 3,253,545 3,252,464 1, % Page 6 of 23 7/15/2014

8 Cash Flow Funding Plan Miramar Plaza Homeowners' Association Report Date: Fiscal Year End: 7/15/2014 Santa Clara, CA 9/30/2014 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /44 Anticipated Reserve Expense Threshold Min. Balance Fully Funded Balance Anticipated FYE Cash Balance Page 7 of 23 7/15/2014

9 Component Inventory Detail Report Miramar Plaza Homeowners' Association Report Date: 7/15/2014 See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Site Systems Steel Fences & Railing 1 Chain Link, 6' w/top Rail Ln.Ft. $ % 2 Chain Link, 6' w/privacy Slats Ln.Ft. $ % 3 Steel Fence, Pool Area Ln.Ft. $ % 4 Steel Gates, Pool Area Each $ % 5 Steel Fence, SE and NW Corners Ln.Ft. $ % 6 Steel Railings, Pathways Ln.Ft. $ % 7 Steel Railings, Stairwells Ln.Ft. $ % Landscape 8 Irrigation Controllers Each $1, % 9 Landscaping Enhancements Fund $5, % 10 Backflow Preventer Each $2, % 11 Tree Trimming Fund $12, % Asphalt and Concrete 12 Patching, Major - Replacement Allowance Sq.Ft. $4.49 3% 13 Patching, Minor - Replacement Allowance Sq.Ft. $4.49 3% 14 Asphalt Pavement, Seal Coat, Paint Curbs, Stripe Stalls Sq.Ft. $0.21 3% 15 Pathways, Pavers, Bricks, Walls - Repair Allowance Fund $5, % Pool & Spa 16 Concrete Deck Sq.Ft. $ % 17 Mastic Ln.Ft. $9.50 3% 18 Pool Plaster Sq.Ft. Surf $ % 19 Tile & Coping Ln.Ft. $ % 20 Pool Filter, Pump (1) Replacement Allowance Each $1, % 21 Shower Tower, pool area Each $3, % 22 Drinking Fountain Each $1, % 23 Chaises, Tables, Chairs fund $12, % 24 Trash Cans Each $ % 25 Pool Solar Heater Each $7, % Appurtenant Structure 26 Metal Dumpster Area Gates Each $1, % 27 Mail Kiosks Sq.Ft. $4, % 28 Dumpster Arbor, Bldg Fund $2, % 29 Trellis, Pool Area - Repair Allowance Fund $5, % 14,312 7,020 15,517 1,837 19,341 14,806 61,466 4,120 5,464 2,185 13,261 45,053 4,622 8,521 5,464 34,157 1,174 9,237 5,216 1,030 3,278 1,407 13,113 1,932 7,210 10,776 21,855 2,185 5,464 Page 8 of 23 7/15/2014

10 Component Inventory Detail Report Miramar Plaza Homeowners' Association Report Date: 7/15/2014 See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Building Systems Miscellaneous 30 Stairwell Landing Recoat Sq.Ft. $ % 31 Stairwell Landings and treads- Replacement Allowance Fund $15, % 32 Interior Building Repair Fund Fund $10, % 33 Mailboxes, Economy, 12-Unit Each $ % 34 Benches, Garden Quad Each $ % Exterior Doors 35 Balcony Closet Doors - Replacement Allowance Fund $5, % 36 Crawl Space Doors Each $ % 37 Entry Doors, Pool House Each $ % 38 Water Heater Fireproof Doors Each $ % 39 Utility Closet Doors Each $ % Exterior Siding, Trim & Floorboards 40 Stucco Siding & Steel Fences, Paint Fund $106, % 41 Exterior Wood Trim, Paint Fund $106, % 42 Wood Trim &/or Stucco - Repair Allowance Fund $74, % 43 Wood Floorboards, Balconies & Landings, Stain/Repair Fund 42, % Roofing 44 Downspouts Ln.Ft. $4.24 3% 45 Gutters Ln.Ft. $ % 46 Tile Roof South-Facing, Replace 30% Sq.Ft. $8.49 3% 47 Tile Roof East & West Facing, Replace 40% Sq.Ft. $8.49 3% 48 Tile Roof North Facing, Replace 30% Sq.Ft. $8.49 3% 49 Tile Roofing, Inspection & Repairs Fund $7, % 50 Chimney Caps and Spark Arrestors Each $ % 82,479 16,391 10,609 17,514 2,921 5,464 17,922 1,434 9,288 5, , ,273 76,491 43,709 25,150 47, , , ,931 7,649 44,255 Page 9 of 23 7/15/2014

11 Component Inventory Detail Report Miramar Plaza Homeowners' Association Report Date: 7/15/2014 See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Mechanical / Electrical Systems Exterior Lighting 51 Pathway Bollards, Allowance Fund $1, % 52 Lights, Garages Each $ % 53 Lights, Stairwells Each $ % 54 Lights, Townhouse Landings Each $ % 55 15' Pole Lights Each $1, % 56 Victorian Light, Garden Quad Each $ % 57 Lights, Balconies Each $ % Fire Alarm / Security System 58 Fire Alarm Control Panels Each $4, % 59 Fire Alarm Bells Each $ % 60 Fire Extinguisher Cabinets Fund $1, % 61 Firesprinklers Each $ % 62 Heat Detectors Each $ % 63 Intercom Entry System Each $5, % 64 Manual Pull Station Each $ % 65 Pumps/Valves/Switches/Guages Fund $37, % Plumbing 66 Circulating Pump - Replacement Allowance Fund $1, % 67 Hot Water Heater & Damper - Replacement Allowance Fund $7, % 68 Water Heater, 40 gal Each $1, % Total 1,030 15,014 23,194 5,145 14, ,441 24,458 9,835 1,923 8,969 17,210 10,927 6,767 38,245 1,202 7,426 1,093 2,315,703 Page 10 of 23 7/15/2014

12 Accountants Breakout Miramar Plaza Homeowners' Association Santa Clara, CA Report Date: 7/15/2014 Fiscal Year End: 9/30/2014 The accountants breakout gives a detailed analysis of the associations funding for each component. Fully Funded Balance (FFB): (Unit Cost/Useful Life*Remaining Life) Current Fund Balance: (Component's FFB/(sum(FFB))*Reserve Balance Annual Accrual: Current Cost/Useful Life Annual Contribution: Component's Annual Accrual/(sum(annual accrual)*annual Contribution Current Unit Cost Fully Funded Balance Current Fund Balance Annual Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Accountants Breakout Steel Fences & Railing 1 Chain Link, 6' w/top Rail 14,312 7,156 1, % Chain Link, 6' w/privacy Slats 7,020 4,387 1, % Steel Fence, Pool Area 15,517 10,000 2, % Steel Gates, Pool Area 1,837 1, % Steel Fence, SE and NW Corners 19,341 14,022 3, % Steel Railings, Pathways 14,806 8,588 2, % Steel Railings, Stairwells 61,466 35,650 8,686 1, % 1, Landscape 8 Irrigation Controllers 4,120 2, % 1, Landscaping Enhancements 5,464 5,464 1,331 2, % 3, Backflow Preventer 2,185 1, % Tree Trimming 13, , % 4, Asphalt and Concrete 12 Patching, Major - Replacement Allowance 45,053 20,649 5,031 1, % 2, Patching, Minor - Replacement Allowance 4,622 3, % Asphalt Pavement, Seal Coat, Paint Curbs, Stripe Stalls 8,521 7,101 1,730 1, % 1, Pathways, Pavers, Bricks, Walls - Repair Allowance 5, , % 1, Pool & Spa 16 Concrete Deck 34,157 10,247 2,497 1, % 1, Mastic 1, % Pool Plaster 9,237 2, % Tile & Coping 5,216 1, % Pool Filter, Pump (1) Replacement Allowance 1,030 1, % Shower Tower, pool area 3, % Drinking Fountain 1,407 1, % Chaises, Tables, Chairs 13,113 3, % Trash Cans 1,932 1, % Pool Solar Heater 7, % Page 11 of 23 7/15/2014

13 Accountants Breakout Miramar Plaza Homeowners' Association Santa Clara, CA Report Date: 7/15/2014 Fiscal Year End: 9/30/2014 The accountants breakout gives a detailed analysis of the associations funding for each component. Fully Funded Balance (FFB): (Unit Cost/Useful Life*Remaining Life) Current Fund Balance: (Component's FFB/(sum(FFB))*Reserve Balance Annual Accrual: Current Cost/Useful Life Annual Contribution: Component's Annual Accrual/(sum(annual accrual)*annual Contribution Current Unit Cost Fully Funded Balance Current Fund Balance Annual Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Appurtenant Structure 26 Metal Dumpster Area Gates 10,776 4,580 1, % Mail Kiosks 21,855 15,298 3, % Dumpster Arbor, Bldg , % Trellis, Pool Area - Repair Allowance 5, % Miscellaneous 30 Stairwell Landing Recoat 82,479 59,385 14,469 3, % 4, Stairwell Landings and treads- Replacement Allowance 16,391 9,835 2, % Interior Building Repair Fund 10,609 4,244 1,034 2, % 2, Mailboxes, Economy, 12-Unit 17,514 13,136 3, % Benches, Garden Quad 2,921 2, % Exterior Doors 35 Balcony Closet Doors - Replacement Allowance 5,464 1, % 1, Crawl Space Doors 17,922 8,961 2, % Entry Doors, Pool House 1,434 1, % Water Heater Fireproof Doors 9,288 4,644 1, % Utility Closet Doors 5,229 4,445 1, % Exterior Siding, Trim & Floorboards 40 Stucco Siding & Steel Fences, Paint 109,273 72,848 17,749 9, % 11, Exterior Wood Trim, Paint 109,273 36,424 8,875 18, % 22, Wood Trim &/or Stucco - Repair Allowance 76,491 25,497 6,212 12, % 15, Wood Floorboards, Balconies & Landings, Stain/Repair 43,709 14,570 3,550 7, % 8, Roofing 44 Downspouts 25,150 15,090 3, % 1, Gutters 47,468 39,557 9,638 1, % 1, Tile Roof South-Facing, Replace 30% 340,931 25,570 6,230 8, % 10, Tile Roof East & West Facing, Replace 40% 454, ,753 96,910 11, % 13, Tile Roof North Facing, Replace 30% 340, ,652 58,146 8, % 10, Tile Roofing, Inspection & Repairs 7,649 4,589 1,118 1, % 1, Chimney Caps and Spark Arrestors 44,255 22,128 5,391 1, % 1, Page 12 of 23 7/15/2014

14 Accountants Breakout Miramar Plaza Homeowners' Association Santa Clara, CA Report Date: 7/15/2014 Fiscal Year End: 9/30/2014 The accountants breakout gives a detailed analysis of the associations funding for each component. Fully Funded Balance (FFB): (Unit Cost/Useful Life*Remaining Life) Current Fund Balance: (Component's FFB/(sum(FFB))*Reserve Balance Annual Accrual: Current Cost/Useful Life Annual Contribution: Component's Annual Accrual/(sum(annual accrual)*annual Contribution Current Unit Cost Fully Funded Balance Current Fund Balance Annual Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Exterior Lighting 51 Pathway Bollards, Allowance 1,030 1, , % 1, Lights, Garages 15,014 9,384 2, % Lights, Stairwells 23,194 14,497 3, % Lights, Townhouse Landings 5,145 4,287 1, % ' Pole Lights 14,935 12,446 3, % Victorian Light, Garden Quad % Lights, Balconies 17,441 13,081 3, % Fire Alarm / Security System 58 Fire Alarm Control Panels 24,458 8,560 2,086 1, % 1, Fire Alarm Bells 9,835 6,322 1, % Fire Extinguisher Cabinets 1,923 1, % Firesprinklers 8,969 7,688 1, % Heat Detectors 17,210 4,589 1, % Intercom Entry System 10,927 5,099 1, % Manual Pull Station 6,767 4,906 1, % Pumps/Valves/Switches/Guages 38,245 32,782 7,987 1, % 1, Plumbing 66 Circulating Pump - Replacement Allowance 1,202 1, , % 1, Hot Water Heater & Damper - Replacement Allowance 7,426 7,426 1,809 7, % 9, Water Heater, 40 gal 1, % Totals $2,315,703 $1,306,009 $318,200 $124, % $151,642 $90.91 Page 13 of 23 7/15/2014

15 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /24 Annual Expense Totals: 16,152 23,485 29,688 31, , ,404 18, ,956 87,923 12,602 Steel Fences & Railing 1 Chain Link, 6' w/top Rail Chain Link, 6' w/privacy Slats Steel Fence, Pool Area Steel Gates, Pool Area Steel Fence, SE and NW Corners Steel Railings, Pathways Landscape 8 Irrigation Controllers 0 0 4, , Landscaping Enhancements 5, , , , , Backflow Preventer , Tree Trimming , ,799 0 Asphalt and Concrete 12 Patching, Major - Replacement Allowance Patching, Minor - Replacement Allowance 0 4, , Asphalt Pavement, Seal Coat, Paint Curbs 0 8, , Pathways, Pavers, Bricks, Walls - Repair A , Pool & Spa 16 Concrete Deck Mastic , , Pool Plaster Tile & Coping Pool Filter, Pump (1) Replacement Allowan 1, , Shower Tower, pool area Drinking Fountain Chaises, Tables, Chairs Trash Cans Pool Solar Heater Appurtenant Structure 26 Metal Dumpster Area Gates Mail Kiosks Dumpster Arbor, Bldg Trellis, Pool Area - Repair Allowance Page 14 of 23 7/15/2014

16 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /24 Miscellaneous 30 Stairwell Landing Recoat , Stairwell Landings and treads- Replacemen , Interior Building Repair Fund , , Mailboxes, Economy, 12-Unit Benches, Garden Quad Exterior Doors 35 Balcony Closet Doors - Replacement Allow , Crawl Space Doors Entry Doors, Pool House , Water Heater Fireproof Doors Utility Closet Doors , Exterior Siding, Trim & Floorboards 40 Stucco Siding & Steel Fences, Paint , Exterior Wood Trim, Paint , Wood Trim &/or Stucco - Repair Allowance , Wood Floorboards, Balconies & Landings, , Roofing 44 Downspouts Gutters , Tile Roof South-Facing, Replace 30% Tile Roof East & West Facing, Replace 40% , Tile Roof North Facing, Replace 30% Tile Roofing, Inspection & Repairs 0 0 8, , Chimney Caps and Spark Arrestors Exterior Lighting 51 Pathway Bollards, Allowance 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1, Lights, Garages Lights, Stairwells Lights, Townhouse Landings , ' Pole Lights , Victorian Light, Garden Quad Lights, Balconies Page 15 of 23 7/15/2014

17 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /24 Fire Alarm / Security System 58 Fire Alarm Control Panels Fire Alarm Bells Fire Extinguisher Cabinets , Firesprinklers , Heat Detectors Intercom Entry System , Manual Pull Station Pumps/Valves/Switches/Guages , Plumbing 66 Circulating Pump - Replacement Allowance 1,202 1,238 1,275 1,313 1,353 1,393 1,435 1,478 1,523 1, Hot Water Heater & Damper - Replacemen 7,426 7,649 7,879 8,115 8,358 8,609 8,867 9,133 9,407 9, Water Heater, 40 gal 0 0 1, Page 16 of 23 7/15/2014

18 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /34 Annual Expense Totals: 413,391 49, , ,867 56,679 95, ,471 35,416 51,384 39,982 Steel Fences & Railing 1 Chain Link, 6' w/top Rail Chain Link, 6' w/privacy Slats , Steel Fence, Pool Area , Steel Gates, Pool Area , Steel Fence, SE and NW Corners 0 26, Steel Railings, Pathways Landscape 8 Irrigation Controllers 0 0 5, , Landscaping Enhancements 7, , , , , Backflow Preventer Tree Trimming , , Asphalt and Concrete 12 Patching, Major - Replacement Allowance , Patching, Minor - Replacement Allowance , , Asphalt Pavement, Seal Coat, Paint Curbs , , Pathways, Pavers, Bricks, Walls - Repair A 7, , Pool & Spa 16 Concrete Deck Mastic , , Pool Plaster , Tile & Coping Pool Filter, Pump (1) Replacement Allowan 1, , Shower Tower, pool area , Drinking Fountain 1, Chaises, Tables, Chairs , Trash Cans 2, Pool Solar Heater Appurtenant Structure 26 Metal Dumpster Area Gates Mail Kiosks , Dumpster Arbor, Bldg , Trellis, Pool Area - Repair Allowance Page 17 of 23 7/15/2014

19 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /34 Miscellaneous 30 Stairwell Landing Recoat Stairwell Landings and treads- Replacemen Interior Building Repair Fund , , Mailboxes, Economy, 12-Unit 23, Benches, Garden Quad 3, Exterior Doors 35 Balcony Closet Doors - Replacement Allow 7, , Crawl Space Doors Entry Doors, Pool House Water Heater Fireproof Doors Utility Closet Doors Exterior Siding, Trim & Floorboards 40 Stucco Siding & Steel Fences, Paint , Exterior Wood Trim, Paint 146, , Wood Trim &/or Stucco - Repair Allowance 102, , Wood Floorboards, Balconies & Landings, 58, , Roofing 44 Downspouts , Gutters Tile Roof South-Facing, Replace 30% Tile Roof East & West Facing, Replace 40% Tile Roof North Facing, Replace 30% , Tile Roofing, Inspection & Repairs , , Chimney Caps and Spark Arrestors Exterior Lighting 51 Pathway Bollards, Allowance 1,384 1,426 1,469 1,513 1,558 1,605 1,653 1,702 1,754 1, Lights, Garages , Lights, Stairwells , Lights, Townhouse Landings ' Pole Lights Victorian Light, Garden Quad , Lights, Balconies 23, Page 18 of 23 7/15/2014

20 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /34 Fire Alarm / Security System 58 Fire Alarm Control Panels , Fire Alarm Bells 13, Fire Extinguisher Cabinets Firesprinklers Heat Detectors Intercom Entry System Manual Pull Station 0 9, Pumps/Valves/Switches/Guages Plumbing 66 Circulating Pump - Replacement Allowance 1,615 1,664 1,714 1,765 1,818 1,873 1,929 1,987 2,046 2, Hot Water Heater & Damper - Replacemen 9,980 10,280 10,588 10,906 11,233 11,570 11,917 12,275 12,643 13, Water Heater, 40 gal , Page 19 of 23 7/15/2014

21 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /44 Annual Expense Totals: 142, , , ,545 57,697 91,302 32,612 47, ,419 22,760 Steel Fences & Railing 1 Chain Link, 6' w/top Rail , Chain Link, 6' w/privacy Slats Steel Fence, Pool Area Steel Gates, Pool Area Steel Fence, SE and NW Corners Steel Railings, Pathways 0 27, Landscape 8 Irrigation Controllers 0 0 7, , Landscaping Enhancements 9, , , , , Backflow Preventer , Tree Trimming 23, , ,341 0 Asphalt and Concrete 12 Patching, Major - Replacement Allowance Patching, Minor - Replacement Allowance , Asphalt Pavement, Seal Coat, Paint Curbs , Pathways, Pavers, Bricks, Walls - Repair A 9, , Pool & Spa 16 Concrete Deck 0 63, Mastic , , Pool Plaster Tile & Coping , Pool Filter, Pump (1) Replacement Allowan 1, , Shower Tower, pool area Drinking Fountain Chaises, Tables, Chairs Trash Cans Pool Solar Heater ,496 0 Appurtenant Structure 26 Metal Dumpster Area Gates , Mail Kiosks Dumpster Arbor, Bldg Trellis, Pool Area - Repair Allowance , Page 20 of 23 7/15/2014

22 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /44 Miscellaneous 30 Stairwell Landing Recoat Stairwell Landings and treads- Replacemen , Interior Building Repair Fund , , Mailboxes, Economy, 12-Unit Benches, Garden Quad Exterior Doors 35 Balcony Closet Doors - Replacement Allow , , Crawl Space Doors Entry Doors, Pool House Water Heater Fireproof Doors Utility Closet Doors , Exterior Siding, Trim & Floorboards 40 Stucco Siding & Steel Fences, Paint , Exterior Wood Trim, Paint , , Wood Trim &/or Stucco - Repair Allowance , , Wood Floorboards, Balconies & Landings, , ,003 0 Roofing 44 Downspouts Gutters Tile Roof South-Facing, Replace 30% Tile Roof East & West Facing, Replace 40% Tile Roof North Facing, Replace 30% Tile Roofing, Inspection & Repairs , , Chimney Caps and Spark Arrestors 79, Exterior Lighting 51 Pathway Bollards, Allowance 1,860 1,916 1,974 2,033 2,094 2,157 2,221 2,288 2,357 2, Lights, Garages Lights, Stairwells Lights, Townhouse Landings ' Pole Lights Victorian Light, Garden Quad Lights, Balconies Page 21 of 23 7/15/2014

23 Future Capital Needs Report Miramar Plaza Homeowners' Association Report Date: 7/15/ / / / / / / / / / /44 Fire Alarm / Security System 58 Fire Alarm Control Panels Fire Alarm Bells Fire Extinguisher Cabinets Firesprinklers Heat Detectors , Intercom Entry System , Manual Pull Station Pumps/Valves/Switches/Guages Plumbing 66 Circulating Pump - Replacement Allowance 2,171 2,236 2,303 2,372 2,443 2,517 2,592 2,670 2,750 2, Hot Water Heater & Damper - Replacemen 13,413 13,815 14,230 14,656 15,096 15,549 16,015 16,496 16,991 17, Water Heater, 40 gal Page 22 of 23 7/15/2014

24 Assessment and Reserve Funding Disclosure Summary Miramar Plaza Homeowners' Association Report Date: 7/15/2014 Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending September 30, 2015 (1) The current assessment per ownership interest is per month. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page of the attached summary. (2) Additional regular or special assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have been approved by the board and/or members: Date assessment will be due: Amount per ownership interest month. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page of the attached report. (4) If the answer to (3) is no, what additional assessments or other contributions to reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members: Yes Purpose of the assessment: (3) Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balances be sufficient at the end of each year to meet the association's obligation for repair and/or replacement of major components during the next 30 years. (5) All major components are included in the reserve study and are included in its calculations. (6) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $1,306,009.06, based in whole or in part on the last reserve supdate prepared by SMA Reserves as of July 15, The projected reserve fund cash balance at the end of the current fiscal year is $318,200.00, resulting in reserves being 24 percent funded at this date. (7) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is (below), and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is (below), leaving the reserve at (below) percent funding. If the reserve fundingproved by the association is implemented, the projected reserve fund cash balance in each of those years will be (below), leaving the reserve at (below) percent funding. Fully Funded Projected Reserve FY Ending Balance Fund Balance 2014/15 1,457, , /16 1,609, , /17 1,763, , /18 1,924, , /19 1,695, ,537 Percent Funded 32% 37% 42% 47% 39% Approximate date assessment will be due: Amount per ownership interest Note: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was 2 percent per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3 percent per year. Page 23 of 23 7/15/2014