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RESERVE STUDY SPECIALISTS P.O. BOX 9178, CALABASAS, CA 91372 TEL: 818-992-1312 FAX: 818-992-1338 VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION FULL RESERVE STUDY September 06, 2017 for Fiscal Year 2018

RESERVE STUDY SPECIALISTS P.O. BOX 9178, CALABASAS, CA 91372 TEL: 818-992-1312 FAX: 818-992-1338 TABLE OF CONTENTS Assumptions Page 1 Findings Page 3 Visual Condition of Complex Page 5 Reserve Components Page 20 Liability Analysis Page 22 Future Expenditure Analysis Page 24 Cash Flow Analysis Page 30 Future Liability Analysis Page 33 Summary Page 35 Funding Plan Summary Page 36 Disclosures Page 38 VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 Copyright 2007-2017 Reserve Study Specialists

RESERVE STUDY SPECIALISTS P. O. BOX 9178, CALABASAS, CA 91372 TEL: 818-992-1312 FAX: 818-992-1338 Initial Reserves Initial reserves for this Reserve Study were known to be $63,325 on July 31, 2017. As per information provided by the Association the reserve balance at study start date of January 01, 2018 is projected to be $63,500. Reserve Funding Goal The baseline reserve funding goal is to plan the minimum reserve account balance consistent with cash demands of maintenance and replacement of reserve items annually. (Baseline Funding) Depth of Study Full Service Reserve Study with Field Inspection. A field inspection was made to verify the existing condition of the various reserve study components, their physical condition, and to verify component quantities. In place testing, laboratory testing, and non-destructive or destructive testing of the reserve study components were not performed. Field measurements of component quantities were made, where necessary, to determine quantities of various components. Statement Reserve Study Specialists is pleased to present to the Board of Directors the requested Reserve Funding Study. We believe that you will find the attached study thorough and complete. After you have had an opportunity to review the report you may have questions. Please do not hesitate to write or call, we would be pleased to answer any questions you may have. Project Description Village Green East Homeowners Association is a 70 unit condominium complex built in 1984. The Association maintains the roofs, exterior including painting, private roads, fences & walls, mailboxes, pool, spa, tennis court, common area landscaping, irrigation system, signs, lighting, concrete gutter & walks and other common area components. Summary of Financial Assumptions The table below contains a partial summary of information provided by the Association. Fiscal Calendar Year Begins January 01 Reserve Study by Fiscal Calendar Year Starting January 01, 2018 Funding Study Length 30 Years Number of Dues Paying Members 70 Reserve Balance as of January 01, 2018 $63,500 Annual Inflation Rate 3% Tax Rate on Reserve Interest 25% Minimum Reserve Account Balance $0 Dues Change Period 1 Year Monthly Dues $340 VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 1

Reserve Study Assumptions Cost estimates and financial information are accurate and current. No unforeseen circumstances will cause a significant reduction of reserves. Sufficient comprehensive property insurance exists to protect from insurance risks. The association plans to continue to maintain the existing common area and amenities. Reserve payments occur at the end of every calendar month. Expenses occur at the end of the expense year. Impact of Component life The projected life expectancy of the major components and the reserve funding needs of the association are closely tied. Performing the appropriate routine maintenance for each major component generally increases the component useful life, effectively moving the component expense into the future, which reduces the reserve funding payments of the association. Failure to perform such maintenance can shorten the remaining useful life of the major components, bringing the replacement expense closer to the present, which increases the reserve funding payments of the association. Study Method Funding studies may be done in several ways, but we believe that the value of a funding study lies in the details. Bulk studies are quick, usually inexpensive, and almost always border on worthless. We believe that meaningful answers to funding studies lie in the details. In this study, we have used the Component method because it is the only method, which allows scrutiny of the funding details. The method is pragmatic, and allows human judgment and experience to enter into the equation. Unless noted otherwise, the present cost of every reserve item in this report has been estimated using the National Construction Estimator, a nationally recognized standard, and modified by an area cost adjustment factor. Where possible, known costs have been used. In addition, every reserve item has been given an estimated remaining useful life, an estimated useful life when new, and has been cast into the future to determine the inflated cost. Equal annual payments are calculated for each reserve item based upon a payment starting year and a payment ending year using the end of period payment method. Interest earned on accumulated reserve funds and taxes on the reserve interest are also calculated. Initial reserve funds are consumed as expenses occur. As you review this report, we are certain that you will appreciate the level of detail provided, allowing you to review each reserve item in detail. VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 2

Summary of Findings Reserve Study Specialists has estimated future projected expenses for the association based upon preservation of existing improvements. The attached funding study is limited in scope to those expense items listed in the reserve study. Of primary concern is the preservation of a positive funding balance with funds sufficient to meet projected expenses throughout the study life. Based upon the attached funding study, it is our professional opinion that annual reserve contributions as shown in the attached study will realize this goal. The association warrants that the information provided to Reserve Study Specialists, including but not limited to that information contained in the attached reserve study, that the maintenance records are complete and accurate, and that Reserve Study Specialists may rely upon such information and documents without further verification or corroboration. Where the age of a particular Reserve Item (as listed in the Reserve Study) is unknown, the association shall provide to Reserve Study Specialists best-estimated age of that item. If the association is unable to provide an estimate of a Reserve Item s age, Reserve Study Specialists shall make its own estimate of age of the Reserve Item. The Reserve Study is created for the association s use, and is a reflection of information provided to Reserve Study Specialists. This information is not for the purpose of performing an audit, historical records, quality or forensic analyses. Special Assessments Special assessments are not required in this reserve study, unless specified in the funding plan, provided the Board of Directors and association members adopt this reserve study as submitted. Any material change from the recommended reserve contributions may result in special assessments in future. Percent Funded Many reserve studies use the concept of Percent Funded to measure the reserve account balance against a theoretically perfect value. Percent Funded is often used as a measure of the Financial Health of an association. The assumption is, the higher the percentage, the greater the Financial Health. The question of substance is simply: How much is enough? To answer the question, some understanding of Percent Funded is required. Percent Funded is defined as the current cash reserves divided by the Fully Funded value at any instant in time. Fully Funded value is defined as the total depreciated value or accrued liability of all reserve items. Most reserve items with a remaining life greater than the study life are not included in the calculation unless they are specifically instructed by the HOA to be included. For example; building framing, foundations, water lines, and other long-lived items that fall outside the envelope of the reserve study are excluded from the calculation. Percent Funded is then, the current reserve balance divided by the Fully Funded value multiplied by 100 (to give a percentage). The concept of percent funded is useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained. As a result, we recommend that the statement Percent Funded be used with caution. This study will attempt to achieve a fully-funded reserves (100% funded) during the length of the study. VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 3

Keeping Your Reserve Study Current Reserve Study Specialists believes that funding studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years and certainly not more than five years. This reserve study should be updated to remain an accurate estimation of reserve funding: At changes in interest rates At changes in inflation rates At changes in the number of dues paying members Before starting new improvements Before making changes to the property After a flood or fire After the change of ownership or management After Annexation or Incorporation Statement of Qualifications Reserve Study Specialists is a professional in the business of preparing reserve studies for community associations. I have inspected the association improvements, and have made a complete review of all components required to complete a reserve study. I have completed a physical inspection of the components listed in this reserve study. My inspection included a review of current condition, economic life, remaining useful life, and replacement cost of all components included in this reserve study. No destructive testing was done. Conflict of Interest As the preparer of this reserve study, Reserve Study Specialists certifies that we do not have any vested interests, financial interests, or other interests that would cause a conflict of interest in the preparation of this reserve study. Reserve Study Specialists would like to thank the association for the opportunity to be of service in the preparation of the attached Funding Study. Again, please feel free to write or call at our letterhead address if you have any questions. Prepared by: Fred Etemad, PhD CEO VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 4

RESERVE STUDY SPECIALISTS P. O. BOX 9178, CALABASAS, CA 91372 TEL: 818-992-1312 FAX: 818-992-1338 Visual Condition of Complex at the time of Inspection VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION September 06, 2017 5

RESERVE COMPONENTS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast % Repair Total Rem Unit Reserve Components Cost Life Life Quantity Unit Cost Description ROOFING 1- Flat Roof, Phase 1 13000 20 17 3250 sq ft 4.00 Built-up flat roof replacement budget every 20 years, Phase 1 2- Composition Shingles Roof, Phase 1 119000 25 17 29750 sq ft 4.00 Composition shingles roof replacement budget every 25 years, Phase 1 3- Flat Roof, Phase 2 2600 20 1 650 sq ft 4.00 Built-up flat roof replacement budget every 20 years, Phase 2 4- Composition Shingles Roof, Phase 2 26000 25 1 6500 sq ft 4.00 Composition shingles roof replacement budget every 25 years, Phase 2 5- Flat Roof, Phase 3 15600 20 5 3900 sq ft 4.00 Built-up flat roof replacement budget every 20 years, Phase 3 6- Composition Shingles Roof, Phase 3 156000 25 5 39000 sq ft 4.00 Composition shingles roof replacement budget every 25 years, Phase 3 7- Gutters & Downspouts 21560 30 5 2695 ft 8.00 Gutters & downspouts replacement budget every 30 years 8- Roof Inspection & Repair 7000 5 3 1 budget 7000.00 Roof inspection & repair budget every 5 years PAINTING 9- Wood Siding & Trim Paint 112290 7 2 112290 sq ft 1.00 Wood siding & trim paint budget every 7 years 10- Wood Siding & Trim Repair 5 44916 7 2 112290 sq ft 8.00 Wood siding & trim repair/replace budget at 5% of total every 7 years 11- Wood Fences Paint 14064 7 2 17580 sq ft 0.80 Wood fences paint budget every 7 years 12- Wood Fences Repair 5 7032 7 2 17580 sq ft 8.00 Wood fences repair budget at 5% of total every 7 years 13- Wrought Iron Fences Paint 15646 5 3 11176 sq ft 1.40 Wrought iron fences repair & paint budget every 5 years ASPHALT & CONCRETE 14- Asphalt Sealcoat & Striping 11858 6 6 53900 sq ft 0.22 Asphalt sealcoat & Striping budget every 6 years 15- Asphalt Cut & Patch, Repair 5 12128 6 6 53900 sq ft 4.50 Asphalt cut & patch repair budget at 5% of total every 6 years 16- Asphalt Remove & Replace/Overlay 75 141488 36 6 53900 sq ft 3.50 Asphalt remove/replace at 75% or 100% overlay budget every 36 years 17- Concrete Gutter 10 7470 12 6 1660 ft 45.00 Concrete gutter repair/replace budget at 10% of total every 12 years 18- Concrete Walks 4000 5 1 1 budget 4000.00 Concrete walks repair/replace budget every 5 years 19- Concrete Pool Deck 10 5400 12 4 2700 sq ft 20.00 Concrete pool deck repair/replace budget at 10% of total every 12 years FENCES & WALLS 20- Block Wall 5 5940 12 6 990 ft 120.00 Perimeter concrete block wall repair/replace budget at 5% every 12 years 21- Wood Fences 51275 25 9 1465 ft 35.00 Wood patio fences & gates, 6 ft high, replacement budget every 25 years 22- Wrought Iron Fences, Pool Area 9900 45 12 165 ft 60.00 Wrought iron fences, pool area, replacement budget every 45 years 23- Wrought Iron Fences, Perimeter 10 6437 10 8 4598 sq ft 14.00 Wrought iron fences, perimeter, replace budget at 10% every 10 years LIGHTING 24- Pole Lights 11250 20 7 25 each 450.00 Pole lights fixtures & pole replacement budget every 20 years 25- Unit Entry Lights 7000 20 7 70 each 100.00 Unit Entry light fixtures replacement budget every 20 years 26- Buildings Security Lights 3600 20 20 36 each 100.00 Buildings security light fixtures replacement budget every 20 years 27- Security Lights & Poles 2000 15 15 8 each 250.00 Security light fixtures & poles replacement budget every 15 years

RESERVE COMPONENTS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast % Repair Total Rem Unit Reserve Components Cost Life Life Quantity Unit Cost Description BUILDINGS 28- Balcony Decks Recoat 10080 6 3 2880 sq ft 3.50 Balcony decks membrane recoat & repair budget every 6 years 29- Balcony Decks Resurface 24480 24 9 2880 sq ft 8.50 Balcony decks membrane resurface budget every 24 years 30- Water Heaters 12000 2 2 2 each 6000.00 Water heaters (12) replacement budget at 2 units every 2 years 31- Termite Inspection & Repair 19000 14 13 1 budget 19000.00 Termite inspection & repair budget every 14 years 32- Plumbing & Utilities Repairs 5000 10 7 1 budget 5000.00 Plumbing, sewer & utility lines repair/replace budget every 10 years TENNIS COURT 33- Court Surface Repair & Paint 5 6700 10 3 6700 sq ft 20.00 Tennis court surface repair at 5% & paint budget every 10 years 34- Tennis Court Equipment 1000 10 7 1 budget 1000.00 Tennis court equipment replacement budget every 10 years 35- Chain Link Fences 15660 35 13 348 ft 45.00 Chain link fences, tennis court, replacement budget every 35 years POOL & SPA 36- Pool Chlorinator 600 6 3 1 each 600.00 Pool chlorinator replacement budget every 6 years 37- Pool Filter 1750 10 3 1 each 1750.00 Pool filter replacement budget every 10 years 38- Pool Pump & Motor 2200 10 3 1 each 2200.00 Pool pump & motor replacement budget every 10 years 39- Pool Replastering 7920 12 7 1320 sq ft 6.00 Pool Replastering budget every 12 years 40- Pool Tile & Coping 5220 24 7 116 ft 45.00 Pool tile & coping repair/replacement budget every 24 years 41- Spa Chlorinator 600 6 3 1 each 600.00 Spa chlorinator replacement budget every 6 years 42- Spa Filter 1500 10 3 1 each 1500.00 Spa filter replacement budget every 10 years 43- Spa Heater 4000 10 3 1 each 4000.00 Spa heater replacement budget every 10 years 44- Spa Pump & Motor 2200 10 3 2 each 1100.00 Spa pumps & motors replacement budget every 10 years 45- Spa Replastering 4550 10 7 130 sq ft 35.00 Spa replastering budget every 10 years 46- Spa Tile & Coping 1350 20 7 30 ft 45.00 Spa tile & coping repair/replacement budget every 20 years 47- Pool & Spa Deck Caulking 1022 5 3 146 ft 7.00 Pool & spa deck caulking budget every 5 years 48- Pool Area Furniture 1500 5 3 1 budget 1500.00 Pool area furniture replace/upgrade/remodel budget every 5 years 49- Restroom Remodel, Pool Area 1500 20 20 1 budget 1500.00 Pool area restroom remodeling budget every 20 years LANDSCAPING 50- Irrigation Equipment 4000 5 4 1 budget 4000.00 Irrigation backflow, timers, valves & lines repair/replace every 5 years 51- Landscape & Trees 10000 5 4 1 budget 10000.00 Landscaping remodel/upgrade & tree maintenance budget every 5 years OTHERS 52- Mailboxes 9500 25 22 5 each 1900.00 Cluster mailboxes replacement budget every 25 years 53- Signs 1000 10 7 1 budget 1000.00 Traffic & other signs replace/upgrade budget every 10 years 54- Unplanned Project Fund 5 3858 1 1 1 budget 3857.72 5% of Annual liability for unplanned or emergency projects

LIABILITY ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast % Repair Total Rem Reserve Components Cost Life Life Annual Liability Accrued Liability % of Annual Liability Notes ROOFING 20.37% 1- Flat Roof, Phase 1 13000 20 17 650 1950 0.84% 2- Composition Shingles Roof, Phase 1 119000 25 17 4760 38080 6.17% 3- Flat Roof, Phase 2 2600 20 1 130 2470 0.17% 4- Composition Shingles Roof, Phase 2 26000 25 1 1040 24960 1.35% 5- Flat Roof, Phase 3 15600 20 5 780 11700 1.01% 6- Composition Shingles Roof, Phase 3 156000 25 5 6240 124800 8.09% 7- Gutters & Downspouts 21560 30 5 719 17967 0.93% 8- Roof Inspection & Repair 7000 5 3 1400 2800 1.81% PAINTING 37.07% 9- Wood Siding & Trim Paint 112290 7 2 16041 80207 20.79% 10- Wood Siding & Trim Repair 5 44916 7 2 6417 32083 8.32% 11- Wood Fences Paint 14064 7 2 2009 10046 2.60% 12- Wood Fences Repair 5 7032 7 2 1005 5023 1.30% 13- Wrought Iron Fences Paint 15646 5 3 3129 6258 4.06% ASPHALT & CONCRETE 12.70% 14- Asphalt Sealcoat & Striping 11858 6 6 1976 0 2.56% 15- Asphalt Cut & Patch, Repair 5 12128 6 6 2021 0 2.62% 16- Asphalt Remove & Replace/Overlay 75 141488 36 6 3930 117907 5.09% 17- Concrete Gutter 10 7470 12 6 623 3735 0.81% 18- Concrete Walks 4000 5 1 800 3200 1.04% 19- Concrete Pool Deck 10 5400 12 4 450 3600 0.58% FENCES & WALLS 4.42% 20- Block Wall 5.0 5940 12 6 495 2970 0.64% 21- Wood Fences 51275 25 9 2051 32816 2.66% 22- Wrought Iron Fences, Pool Area 9900 45 12 220 7260 0.29% 23- Wrought Iron Fences, Perimeter 10 6437 10 8 644 1287 0.83% LIGHTING 1.59% 24- Pole Lights 11250 20 7 563 7313 0.73% 25- Unit Entry Lights 7000 20 7 350 4550 0.45% 26- Buildings Security Lights 3600 20 20 180 0 0.23% 27- Security Lights & Poles 2000 15 15 133 0 0.17% Percent funded, end of Dec 2017 10.51%

LIABILITY ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast % Repair Total Rem Reserve Components Cost Life Life Annual Liability Accrued Liability % of Annual Liability Notes BUILDINGS 13.68% 28- Balcony Decks Recoat 10080 6 3 1680 5040 2.18% 29- Balcony Decks Resurface 24480 24 9 1020 15300 1.32% 30- Water Heaters 12000 2 2 6000 0 7.78% 31- Termite Inspection & Repair 19000 14 13 1357 1357 1.76% 32- Plumbing & Utilities Repairs 5000 10 7 500 1500 0.65% TENNIS COURT 1.58% 33- Court Surface Repair & Paint 5 6700 10 3 670 4690 0.87% 34- Tennis Court Equipment 1000 10 7 100 300 0.13% 35- Chain Link Fences 15660 35 13 447 9843 0.58% POOL & SPA 4.33% 36- Pool Chlorinator 600 6 3 100 300 0.13% 37- Pool Filter 1750 10 3 175 1225 0.23% 38- Pool Pump & Motor 2200 10 3 220 1540 0.29% 39- Pool Replastering 7920 12 7 660 3300 0.86% 40- Pool Tile & Coping 5220 24 7 218 3698 0.28% 41- Spa Chlorinator 600 6 3 100 300 0.13% 42- Spa Filter 1500 10 3 150 1050 0.19% 43- Spa Heater 4000 10 3 400 2800 0.52% 44- Spa Pump & Motor 2200 10 3 220 1540 0.29% 45- Spa Replastering 4550 10 7 455 1365 0.59% 46- Spa Tile & Coping 1350 20 7 68 878 0.09% 47- Pool & Spa Deck Caulking 1022 5 3 204 409 0.26% 48- Pool Area Furniture 1500 5 3 300 600 0.39% 49- Restroom Remodel, Pool Area 1500 20 20 75 0 0.10% LANDSCAPING 3.63% 50- Irrigation Equipment 4000 5 4 800 800 1.04% 51- Landscape & Trees 10000 5 4 2000 2000 2.59% OTHERS 0.62% 52- Mailboxes 9500 25 22 380 1140 0.49% 53- Signs 1000 10 7 100 300 0.13% 54- Unplanned Project Fund 5 3858 1 1 TOTAL 77154 604256

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 1 2 3 4 5 6 7 8 9 10 Reserve Components Cost Life Life 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 ROOFING 1- Flat Roof, Phase 1 13000 20 17 2- Composition Shingles Roof, Phase 1 119000 25 17 3- Flat Roof, Phase 2 2600 20 1 2678 4- Composition Shingles Roof, Phase 2 26000 25 1 26780 5- Flat Roof, Phase 3 15600 20 5 18085 6- Composition Shingles Roof, Phase 3 156000 25 5 180847 7- Gutters & Downspouts 21560 30 5 24994 8- Roof Inspection & Repair 7000 5 3 7649 8867 PAINTING 9- Wood Siding & Trim Paint 112290 7 2 119128 146513 10- Wood Siding & Trim Repair 5 44916 7 2 47651 58605 11- Wood Fences Paint 14064 7 2 14920 18350 12- Wood Fences Repair 5 7032 7 2 7460 9175 13- Wrought Iron Fences Paint 15646 5 3 17097 19820 ASPHALT & CONCRETE 14- Asphalt Sealcoat & Striping 11858 6 6 14159 15- Asphalt Cut & Patch, Repair 5 12128 6 6 14481 16- Asphalt Remove & Replace/Overlay 75 141488 36 6 168944 17- Concrete Gutter 10 7470 12 6 8920 18- Concrete Walks 4000 5 1 4120 4776 19- Concrete Pool Deck 10 5400 12 4 6078 FENCES & WALLS 20- Block Wall 5.0 5940 12 6 7093 21- Wood Fences 51275 25 9 66902 22- Wrought Iron Fences, Pool Area 9900 45 12 23- Wrought Iron Fences, Perimeter 10 6437 10 8 8154 LIGHTING 24- Pole Lights 11250 20 7 13836 25- Unit Entry Lights 7000 20 7 8609 26- Buildings Security Lights 3600 20 20 27- Security Lights & Poles 2000 15 15

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 1 2 3 4 5 6 7 8 9 10 Reserve Components Cost Life Life 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 BUILDINGS 28- Balcony Decks Recoat 10080 6 3 11015 13152 29- Balcony Decks Resurface 24480 24 9 31941 30- Water Heaters 12000 2 2 12731 13506 14329 15201 16127 31- Termite Inspection & Repair 19000 14 13 32- Plumbing & Utilities Repairs 5000 10 7 6149 TENNIS COURT 33- Court Surface Repair & Paint 5 6700 10 3 7321 34- Tennis Court Equipment 1000 10 7 1230 35- Chain Link Fences 15660 35 13 POOL & SPA 36- Pool Chlorinator 600 6 3 656 783 37- Pool Filter 1750 10 3 1912 38- Pool Pump & Motor 2200 10 3 2404 39- Pool Replastering 7920 12 7 9741 40- Pool Tile & Coping 5220 24 7 6420 41- Spa Chlorinator 600 6 3 656 783 42- Spa Filter 1500 10 3 1639 43- Spa Heater 4000 10 3 4371 44- Spa Pump & Motor 2200 10 3 2404 45- Spa Replastering 4550 10 7 5596 46- Spa Tile & Coping 1350 20 7 1660 47- Pool & Spa Deck Caulking 1022 5 3 1117 1295 48- Pool Area Furniture 1500 5 3 1639 1900 49- Restroom Remodel, Pool Area 1500 20 20 LANDSCAPING 50- Irrigation Equipment 4000 5 4 4502 5219 51- Landscape & Trees 10000 5 4 11255 13048 OTHERS 52- Mailboxes 9500 25 22 53- Signs 1000 10 7 1230 54- Unplanned Project Fund 5 3858 1 1 3973 4093 4215 4342 4472 4606 4745 4887 5033 5184 TOTAL 37551 205984 64095 39683 228398 237307 59216 60124 369505 21311

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 11 12 13 14 15 16 17 18 19 20 Reserve Components Cost Life Life 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 ROOFING 1- Flat Roof, Phase 1 13000 20 17 21487 2- Composition Shingles Roof, Phase 1 119000 25 17 196689 3- Flat Roof, Phase 2 2600 20 1 4- Composition Shingles Roof, Phase 2 26000 25 1 5- Flat Roof, Phase 3 15600 20 5 6- Composition Shingles Roof, Phase 3 156000 25 5 7- Gutters & Downspouts 21560 30 5 8- Roof Inspection & Repair 7000 5 3 10280 11917 PAINTING 9- Wood Siding & Trim Paint 112290 7 2 180192 10- Wood Siding & Trim Repair 5 44916 7 2 72077 11- Wood Fences Paint 14064 7 2 22569 12- Wood Fences Repair 5 7032 7 2 11284 13- Wrought Iron Fences Paint 15646 5 3 22977 26636 ASPHALT & CONCRETE 14- Asphalt Sealcoat & Striping 11858 6 6 16907 20187 15- Asphalt Cut & Patch, Repair 5 12128 6 6 17291 20646 16- Asphalt Remove & Replace/Overlay 75 141488 36 6 17- Concrete Gutter 10 7470 12 6 12717 18- Concrete Walks 4000 5 1 5537 6419 19- Concrete Pool Deck 10 5400 12 4 8665 FENCES & WALLS 20- Block Wall 5.0 5940 12 6 10112 21- Wood Fences 51275 25 9 22- Wrought Iron Fences, Pool Area 9900 45 12 14115 23- Wrought Iron Fences, Perimeter 10 6437 10 8 10959 LIGHTING 24- Pole Lights 11250 20 7 25- Unit Entry Lights 7000 20 7 26- Buildings Security Lights 3600 20 20 6502 27- Security Lights & Poles 2000 15 15 3116

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 11 12 13 14 15 16 17 18 19 20 Reserve Components Cost Life Life 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 BUILDINGS 28- Balcony Decks Recoat 10080 6 3 15704 29- Balcony Decks Resurface 24480 24 9 30- Water Heaters 12000 2 2 17109 18151 19256 20429 21673 31- Termite Inspection & Repair 19000 14 13 27902 32- Plumbing & Utilities Repairs 5000 10 7 8264 TENNIS COURT 33- Court Surface Repair & Paint 5 6700 10 3 9839 34- Tennis Court Equipment 1000 10 7 1653 35- Chain Link Fences 15660 35 13 22997 POOL & SPA 36- Pool Chlorinator 600 6 3 935 37- Pool Filter 1750 10 3 2570 38- Pool Pump & Motor 2200 10 3 3231 39- Pool Replastering 7920 12 7 13888 40- Pool Tile & Coping 5220 24 7 41- Spa Chlorinator 600 6 3 935 42- Spa Filter 1500 10 3 2203 43- Spa Heater 4000 10 3 5874 44- Spa Pump & Motor 2200 10 3 3231 45- Spa Replastering 4550 10 7 7520 46- Spa Tile & Coping 1350 20 7 47- Pool & Spa Deck Caulking 1022 5 3 1501 1740 48- Pool Area Furniture 1500 5 3 2203 2554 49- Restroom Remodel, Pool Area 1500 20 20 2709 LANDSCAPING 50- Irrigation Equipment 4000 5 4 6050 7014 51- Landscape & Trees 10000 5 4 15126 17535 OTHERS 52- Mailboxes 9500 25 22 53- Signs 1000 10 7 1653 54- Unplanned Project Fund 5 3858 1 1 5340 5500 5665 5835 6010 6191 6376 6568 6765 6967 TOTAL 10877 70922 120472 45162 26700 326654 243643 144465 45201 37852

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 21 22 23 24 25 26 27 28 29 30 Reserve Components Cost Life Life 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 ROOFING 1- Flat Roof, Phase 1 13000 20 17 2- Composition Shingles Roof, Phase 1 119000 25 17 3- Flat Roof, Phase 2 2600 20 1 4837 4- Composition Shingles Roof, Phase 2 26000 25 1 56071 5- Flat Roof, Phase 3 15600 20 5 32663 6- Composition Shingles Roof, Phase 3 156000 25 5 378653 7- Gutters & Downspouts 21560 30 5 8- Roof Inspection & Repair 7000 5 3 13815 16015 PAINTING 9- Wood Siding & Trim Paint 112290 7 2 221614 272557 10- Wood Siding & Trim Repair 5 44916 7 2 88646 109023 11- Wood Fences Paint 14064 7 2 27757 34137 12- Wood Fences Repair 5 7032 7 2 13878 17069 13- Wrought Iron Fences Paint 15646 5 3 30879 35797 ASPHALT & CONCRETE 14- Asphalt Sealcoat & Striping 11858 6 6 24105 28782 15- Asphalt Cut & Patch, Repair 5 12128 6 6 24653 29437 16- Asphalt Remove & Replace/Overlay 75 141488 36 6 17- Concrete Gutter 10 7470 12 6 18132 18- Concrete Walks 4000 5 1 7441 8626 19- Concrete Pool Deck 10 5400 12 4 12355 FENCES & WALLS 20- Block Wall 5.0 5940 12 6 14418 21- Wood Fences 51275 25 9 22- Wrought Iron Fences, Pool Area 9900 45 12 23- Wrought Iron Fences, Perimeter 10 6437 10 8 14727 LIGHTING 24- Pole Lights 11250 20 7 24990 25- Unit Entry Lights 7000 20 7 15549 26- Buildings Security Lights 3600 20 20 27- Security Lights & Poles 2000 15 15 4855

FUTURE EXPENDITURE ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Current Fiscal Year End Dec 31 Repair Replace Forecast Year % Repair Total Rem 21 22 23 24 25 26 27 28 29 30 Reserve Components Cost Life Life 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 BUILDINGS 28- Balcony Decks Recoat 10080 6 3 18752 22391 29- Balcony Decks Resurface 24480 24 9 30- Water Heaters 12000 2 2 22993 24394 25879 27455 29127 31- Termite Inspection & Repair 19000 14 13 42204 32- Plumbing & Utilities Repairs 5000 10 7 11106 TENNIS COURT 33- Court Surface Repair & Paint 5 6700 10 3 13223 34- Tennis Court Equipment 1000 10 7 2221 35- Chain Link Fences 15660 35 13 POOL & SPA 36- Pool Chlorinator 600 6 3 1116 1333 37- Pool Filter 1750 10 3 3454 38- Pool Pump & Motor 2200 10 3 4342 39- Pool Replastering 7920 12 7 40- Pool Tile & Coping 5220 24 7 41- Spa Chlorinator 600 6 3 1116 1333 42- Spa Filter 1500 10 3 2960 43- Spa Heater 4000 10 3 7894 44- Spa Pump & Motor 2200 10 3 4342 45- Spa Replastering 4550 10 7 10107 46- Spa Tile & Coping 1350 20 7 2999 47- Pool & Spa Deck Caulking 1022 5 3 2017 2338 48- Pool Area Furniture 1500 5 3 2960 3432 49- Restroom Remodel, Pool Area 1500 20 20 LANDSCAPING 50- Irrigation Equipment 4000 5 4 8131 9426 51- Landscape & Trees 10000 5 4 20328 23566 OTHERS 52- Mailboxes 9500 25 22 18203 53- Signs 1000 10 7 2221 54- Unplanned Project Fund 5 3858 1 1 7176 7392 7614 7842 8077 8320 8569 8826 9091 9364 TOTAL 40439 48588 445395 109452 40740 98896 145023 120946 42083 945553

CASH FLOW ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Year Number of units 70 1 2 3 4 5 6 7 8 9 10 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 STARTING BALANCE 63500 128635 54797 152204 275113 210423 137804 244260 350930 149349 TOTAL ANNUAL EXPENDITURE 37551 205984 64095 39683 228398 237307 59216 60124 369505 21311 ANNUAL RESERVE CONTRIBUTION 102600 132000 161400 162417 163440 164470 165506 166549 167598 168654 Reserve contribution per unit per month 122.14 157.14 192.14 193.35 194.57 195.80 197.03 198.27 199.52 200.78 Reserve contribution increase % 40.16 28.65 22.27 0.63 0.63 0.63 0.63 0.63 0.63 0.63 SPECIAL ASSESSMENTS INTEREST RECEIVED RATE % 0.10 115 195 135 233 357 293 221 328 435 234 TAX ON INTEREST RATE % 25 29 49 34 58 89 73 55 82 109 58 END OF YEAR BALANCE 128635 54797 152204 275113 210423 137804 244260 350930 149349 296866 PERCENT FUNDED 19.25% 9.64% 24.96% 40.48% 37.21% 31.19% 49.29% 63.47% 48.86% 73.77% 350930 275113 244260 296866 210423 128635 152204 137804 149349 54797 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 End of year Balance Forecast

CASH FLOW ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Year Number of units 70 11 12 13 14 15 16 17 18 19 20 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 STARTING BALANCE 296866 455992 556262 608132 736435 884386 733592 666799 700244 834095 TOTAL ANNUAL EXPENDITURE 10877 70922 120472 45162 26700 326654 243643 144465 45201 37852 ANNUAL RESERVE CONTRIBUTION 169716 170785 171861 172944 174034 175130 176233 177344 178461 179585 Reserve contribution per unit per month 202.04 203.32 204.60 205.89 207.18 208.49 209.80 211.12 212.45 213.79 Reserve contribution increase % 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 SPECIAL ASSESSMENTS INTEREST RECEIVED RATE % 0.10 382 541 642 695 823 972 822 755 789 924 TAX ON INTEREST RATE % 25 95 135 161 174 206 243 205 189 197 231 END OF YEAR BALANCE 455992 556262 608132 736435 884386 733592 666799 700244 834095 976521 PERCENT FUNDED 88.42% 96.61% 102.80% 107.25% 109.62% 115.64% 122.66% 126.54% 125.08% 122.78% 976521 556262 608132 736435 884386 733592 666799 700244 834095 455992 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 End of year Balance Forecast

CASH FLOW ANALYSIS VILLAGE GREEN EAST Inflation Rate % 3 Year Number of units 70 21 22 23 24 25 26 27 28 29 30 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 STARTING BALANCE 976521 1117599 1251773 990387 1065900 1211343 1299906 1343585 1412556 1561631 TOTAL ANNUAL EXPENDITURE 40439 48588 445395 109452 40740 98896 145023 120946 42083 945553 ANNUAL RESERVE CONTRIBUTION 180717 181855 183001 184154 185314 186481 187656 188838 190028 191225 Reserve contribution per unit per month 215.14 216.49 217.86 219.23 220.61 222.00 223.40 224.81 226.22 227.65 Reserve contribution increase % 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 SPECIAL ASSESSMENTS INTEREST RECEIVED RATE % 0.10 1067 1209 1343 1082 1159 1305 1394 1438 1508 1657 TAX ON INTEREST RATE % 25 267 302 336 271 290 326 348 360 377 414 END OF YEAR BALANCE 1117599 1251773 990387 1065900 1211343 1299906 1343585 1412556 1561631 808547 PERCENT FUNDED 120.24% 117.65% 122.21% 119.77% 115.86% 112.77% 109.93% 106.75% 103.30% 100.04% 1561631 1117599 1251773 990387 1065900 1211343 1299906 1343585 1412556 808547 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 End of year Balance Forecast

FUTURE LIABILITY ANALYSIS (PERCENT FUNDED) VILLAGE GREEN EAST 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

PRESENT % ANNUAL LIABILITY OF MAIN EXPENSE CATEGORY VILLAGE GREEN EAST 7 1.58% 6 13.68% 8 4.33% 9 3.63% 10 0.62% 1 20.37% 1- ROOFING 20.37% 2- PAINTING 37.07% 3- ASPHALT & CONCRETE 12.70% 4- FENCES & WALLS 4.42% 5- LIGHTING 1.59% 6- BUILDINGS 13.68% 7- TENNIS COURT 1.58% 8- POOL & SPA 4.33% 9- LANDSCAPING 3.63% 10- OTHERS 0.62% 5 1.59% 4 4.42% 3 12.70% 2 37.07%

Summary VILLAGE GREEN EAST ASSOCIATION Association name VILLAGE GREEN EAST Address Arleta Ave. & Van Nuys Blvd., Los Angeles, CA 91331 Association Type Condominium Number of Units 70 Year Built 1984 FINANCIAL Fiscal year begins January 01 Starting fiscal year 2018 Monthly dues $340 End of year Projected reserve balance $63,500 Current annual reserve contribution $73,200 Reserve account interest rate % 0.10 ASSUMPTIONS Inflation rate % 3.00 Tax rate % 25.00 Minimum reserve balance $0 Unplanned project fund % of annual liability 5.00 FUNDING PLAN SIX YEAR SUMMARY Year 2018 2019 2020 2021 2022 2023 Special assessments $0 $0 $0 $0 $0 $0 Annual Reserve contribution $102,600 $132,000 $161,400 $162,417 $163,440 $164,470 Contribution per unit/month $122.14 $157.14 $192.14 $193.35 $194.57 $195.80 Contribution increase on the year before $35.00 $35.00 $35.00 $1.21 $1.22 $1.23 Contribution increase % 40.16% 28.65% 22.27% 0.63% 0.63% 0.63% Annual expenses $37,551 $205,984 $64,095 $39,683 $228,398 $237,307 End of year balance $128,635 $54,797 $152,204 $275,113 $210,423 $137,804 Accrued liability $668,274 $568,284 $609,762 $679,552 $565,456 $441,845 Percent funded 19.25% 9.64% 24.96% 40.48% 37.21% 31.19% Deficiency per unit/ Surplus ( ) $7,709 $7,336 $6,537 $5,778 $5,072 $4,343

30 YEAR RESERVE FUNDING PLAN (RECOMMENDED) VILLAGE GREEN EAST Reserve Reserve Contribution Starting Total Annual Contribution Contribution Increase End of Fully Deficiency Calendar Reserve Annual Reserve Per Unit Increase Per Unit Special Interest Tax on Year Funded Percent Surplus ( ) Year Balance Expenditure Contribution Per Month % Per Month Assessment Received Interest Balance Balance Funded Per Unit 2018 $63,500 $37,551 $102,600 $122.14 40.16 $35.00 $0 $115 $29 $128,635 $668,274 19.25% $7,709 2019 $128,635 $205,984 $132,000 $157.14 28.65 $35.00 $0 $195 $49 $54,797 $568,284 9.64% $7,336 2020 $54,797 $64,095 $161,400 $192.14 22.27 $35.00 $0 $135 $34 $152,204 $609,762 24.96% $6,537 2021 $152,204 $39,683 $162,417 $193.35 0.63 $1.21 $0 $233 $58 $275,113 $679,552 40.48% $5,778 2022 $275,113 $228,398 $163,440 $194.57 0.63 $1.22 $0 $357 $89 $210,423 $565,456 37.21% $5,072 2023 $210,423 $237,307 $164,470 $195.80 0.63 $1.23 $0 $293 $73 $137,804 $441,845 31.19% $4,343 2024 $137,804 $59,216 $165,506 $197.03 0.63 $1.23 $0 $221 $55 $244,260 $495,520 49.29% $3,589 2025 $244,260 $60,124 $166,549 $198.27 0.63 $1.24 $0 $328 $82 $350,930 $552,885 63.47% $2,885 2026 $350,930 $369,505 $167,598 $199.52 0.63 $1.25 $0 $435 $109 $149,349 $305,669 48.86% $2,233 2027 $149,349 $21,311 $168,654 $200.78 0.63 $1.26 $0 $234 $58 $296,866 $402,401 73.77% $1,508 2028 $296,866 $10,877 $169,716 $202.04 0.63 $1.26 $0 $382 $95 $455,992 $515,736 88.42% $853 2029 $455,992 $70,922 $170,785 $203.32 0.63 $1.27 $0 $541 $135 $556,262 $575,790 96.61% $279 2030 $556,262 $120,472 $171,861 $204.60 0.63 $1.28 $0 $642 $161 $608,132 $591,560 102.80% ($237) 2031 $608,132 $45,162 $172,944 $205.89 0.63 $1.29 $0 $695 $174 $736,435 $686,683 107.25% ($711) 2032 $736,435 $26,700 $174,034 $207.18 0.63 $1.30 $0 $823 $206 $884,386 $806,797 109.62% ($1,108) 2033 $884,386 $326,654 $175,130 $208.49 0.63 $1.31 $0 $972 $243 $733,592 $634,348 115.64% ($1,418) 2034 $733,592 $243,643 $176,233 $209.80 0.63 $1.31 $0 $822 $205 $666,799 $543,637 122.66% ($1,759) 2035 $666,799 $144,465 $177,344 $211.12 0.63 $1.32 $0 $755 $189 $700,244 $553,398 126.54% ($2,098) 2036 $700,244 $45,201 $178,461 $212.45 0.63 $1.33 $0 $789 $197 $834,095 $666,854 125.08% ($2,389) 2037 $834,095 $37,852 $179,585 $213.79 0.63 $1.34 $0 $924 $231 $976,521 $795,325 122.78% ($2,589) 2038 $976,521 $40,439 $180,717 $215.14 0.63 $1.35 $0 $1,067 $267 $1,117,599 $929,452 120.24% ($2,688) 2039 $1,117,599 $48,588 $181,855 $216.49 0.63 $1.36 $0 $1,209 $302 $1,251,773 $1,063,975 117.65% ($2,683) 2040 $1,251,773 $445,395 $183,001 $217.86 0.63 $1.36 $0 $1,343 $336 $990,387 $810,384 122.21% ($2,571) 2041 $990,387 $109,452 $184,154 $219.23 0.63 $1.37 $0 $1,082 $271 $1,065,900 $889,925 119.77% ($2,514) 2042 $1,065,900 $40,740 $185,314 $220.61 0.63 $1.38 $0 $1,159 $290 $1,211,343 $1,045,504 115.86% ($2,369) 2043 $1,211,343 $98,896 $186,481 $222.00 0.63 $1.39 $0 $1,305 $326 $1,299,906 $1,152,682 112.77% ($2,103) 2044 $1,299,906 $145,023 $187,656 $223.40 0.63 $1.40 $0 $1,394 $348 $1,343,585 $1,222,191 109.93% ($1,734) 2045 $1,343,585 $120,946 $188,838 $224.81 0.63 $1.41 $0 $1,438 $360 $1,412,556 $1,323,261 106.75% ($1,276) 2046 $1,412,556 $42,083 $190,028 $226.22 0.63 $1.42 $0 $1,508 $377 $1,561,631 $1,511,786 103.30% ($712) 2047 $1,561,631 $945,553 $191,225 $227.65 0.63 $1.43 $0 $1,657 $414 $808,547 $808,225 100.04% ($5)

30 YEAR RESERVE FUNDING PLAN (WITH NO INCREASE IN CONTRIBUTION) VILLAGE GREEN EAST Reserve Reserve Contribution Starting Total Annual Contribution Contribution Increase End of Fully Deficiency Calendar Reserve Annual Reserve Per Unit Increase Per Unit Special Interest Tax on Year Funded Percent Surplus ( ) Year Balance Expenditure Contribution Per Month % Per Month Assessment Received Interest Balance Balance Funded Per Unit 2018 $63,500 $37,551 $73,200 $87.14 0.00 $0 $0 $100 $25 $99,224 $668,274 14.85% $8,129 2019 $99,224 $205,984 $73,200 $87.14 0.00 $0 $0 $136 $34 ($33,459) $568,284-5.89% $8,596 2020 ($33,459) $64,095 $73,200 $87.14 0.00 $0 $0 $3 $1 ($24,351) $609,762-3.99% $9,059 2021 ($24,351) $39,683 $73,200 $87.14 0.00 $0 $0 $12 $3 $9,175 $679,552 1.35% $9,577 2022 $9,175 $228,398 $73,200 $87.14 0.00 $0 $0 $46 $11 ($145,988) $565,456-25.82% $10,163 2023 ($145,988) $237,307 $73,200 $87.14 0.00 $0 $0 $0 $0 ($310,095) $441,845-70.18% $10,742 2024 ($310,095) $59,216 $73,200 $87.14 0.00 $0 $0 $0 $0 ($296,111) $495,520-59.76% $11,309 2025 ($296,111) $60,124 $73,200 $87.14 0.00 $0 $0 $0 $0 ($283,035) $552,885-51.19% $11,942 2026 ($283,035) $369,505 $73,200 $87.14 0.00 $0 $0 $0 $0 ($579,340) $305,669-189.53% $12,643 2027 ($579,340) $21,311 $73,200 $87.14 0.00 $0 $0 $0 $0 ($527,451) $402,401-131.08% $13,284 2028 ($527,451) $10,877 $73,200 $87.14 0.00 $0 $0 $0 $0 ($465,128) $515,736-90.19% $14,012 2029 ($465,128) $70,922 $73,200 $87.14 0.00 $0 $0 $0 $0 ($462,850) $575,790-80.39% $14,838 2030 ($462,850) $120,472 $73,200 $87.14 0.00 $0 $0 $0 $0 ($510,123) $591,560-86.23% $15,738 2031 ($510,123) $45,162 $73,200 $87.14 0.00 $0 $0 $0 $0 ($482,085) $686,683-70.20% $16,697 2032 ($482,085) $26,700 $73,200 $87.14 0.00 $0 $0 $0 $0 ($435,585) $806,797-53.99% $17,748 2033 ($435,585) $326,654 $73,200 $87.14 0.00 $0 $0 $0 $0 ($689,039) $634,348-108.62% $18,906 2034 ($689,039) $243,643 $73,200 $87.14 0.00 $0 $0 $0 $0 ($859,481) $543,637-158.10% $20,045 2035 ($859,481) $144,465 $73,200 $87.14 0.00 $0 $0 $0 $0 ($930,747) $553,398-168.19% $21,202 2036 ($930,747) $45,201 $73,200 $87.14 0.00 $0 $0 $0 $0 ($902,748) $666,854-135.37% $22,423 2037 ($902,748) $37,852 $73,200 $87.14 0.00 $0 $0 $0 $0 ($867,400) $795,325-109.06% $23,753 2038 ($867,400) $40,439 $73,200 $87.14 0.00 $0 $0 $0 $0 ($834,639) $929,452-89.80% $25,201 2039 ($834,639) $48,588 $73,200 $87.14 0.00 $0 $0 $0 $0 ($810,027) $1,063,975-76.13% $26,771 2040 ($810,027) $445,395 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,182,221) $810,384-145.88% $28,466 2041 ($1,182,221) $109,452 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,218,473) $889,925-136.92% $30,120 2042 ($1,218,473) $40,740 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,186,013) $1,045,504-113.44% $31,879 2043 ($1,186,013) $98,896 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,211,710) $1,152,682-105.12% $33,777 2044 ($1,211,710) $145,023 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,283,533) $1,222,191-105.02% $35,796 2045 ($1,283,533) $120,946 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,331,279) $1,323,261-100.61% $37,922 2046 ($1,331,279) $42,083 $73,200 $87.14 0.00 $0 $0 $0 $0 ($1,300,162) $1,511,786-86.00% $40,171 2047 ($1,300,162) $945,553 $73,200 $87.14 0.00 $0 $0 $0 $0 ($2,172,514) $808,225-268.80% $42,582

ASSESSMENT AND RESERVE FUNDING DISCLOSURE SUMMARY 1 VILLAGE GREEN EAST HOA Sep 06, 2017, For the Fiscal Year Ending Dec 31, 2017 (1) The regular assessment per ownership interest is $340.00 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 per Month (If Assessments are variable, see note immediately below): Purpose of the Assessment Total: 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. (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? Yes No X NOTE: If the association adopts the recommended 30-year funding plan in this reserve study the answer to the question #3 could be YES. (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? Approximate Date Assessment will be Due: Amount per Ownership Interest per Month: 2018-2020 Reserve contribution increase by $35.00/ownership/month, each year 2021-2047 Reserve contribution increase by 0.63%, each year Total: 1 Civil Code. Section 5570 effective January 1, 2014

Page 2 of 2 ASSESSMENT AND RESERVE FUNDING DISCLOSURE SUMMARY VILLAGE GREEN EAST HOA Sep 06, 2017, For the Fiscal Year Ending Dec 31, 2017 (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 $604,256, based in whole or in part on the last reserve study or update prepared by Reserve Study Specialists as of Sep 06, 2017 The projected reserve fund cash balance at the end of current fiscal year is $63,500, resulting in reserves being 10.51% percent funded at this date. If an alternate, but generally accepted, method of calculation is also used, the required reserve amount is $63,500. (See attached explanation) (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 (SEE ATTACHED 30 YEAR FUNDING PLAN) and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is (SEE ATTACHED 30 YEAR FUNDING PLAN) leaving the reserve at (SEE ATTACHED 30 YEAR FUNDING PLAN) percent funding. If the Reserve Funding Plan approved by the association is implemented, the projected reserve fund cash balance in each of those years will be (SEE ATTACHED 30 YEAR FUNDING PLAN), leaving the reserve at (SEE ATTACHED 30 YEAR FUNDING PLAN) percent funding. 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 beforetax interest rate earned on reserve funds was 0.10 percent per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3.00 percent per year. (1) "Estimated remaining useful life" means the time reasonably calculated to remain before a major component will require replacement. (2) "Major component" has the meaning used in Section 55530 [sic; s/b 5550]. Components with an estimated remaining useful life of more than 30 years may be included in a study as a capital asset or disregarded from the reserve calculation, so long as the decision is revealed in the reserve study report and reported in the Assessment and Reserve Funding Disclosure Summary. [Civil Code Section 5570 (b)(4) referred to paragraphs (6) and (7) provides : "For the purpose of the report and summary, the amount of reserves needed to be accumulated for a component at a given time shall be computed as the current cost of replacement or repair multiplied by the number of years the component has been in service divided by the useful life of the component. This shall not be construed to require the Board to fund in accordance with this calculation."] DISCLAIMER: The information contained in this disclosure is a PROJECTION ONLY. Because the reserve study is a projection, the estimated lives and costs of components will likely change over time depending on a variety of factors such as (i) future inflation rates, (ii) levels of maintenance applied by future boards, unknown defects in materials that may lead to premature failures, etc. As a result, some components may experience longer lives while others will experience premature failures. Some components may cost less at the time of replacement while others may cost more.