Dear Village Pointe Owners

Last month, your board held its quarterly budget meeting for the year 2009. These are challenging economic times for all our owners with everyone feeling the effects of a bad national economy, and a receding market. With rising prices, multiple layoffs and a deep recession, your board wishes to thank all owners who have steadfastly maintained their maintenance fee accounts current and their ownership in good standing. Even during these difficult times, we have maintained a 93% collection rate this year, and are confident that you will sustain this rate during the challenging year ahead.

Delinquent owner accounts, however, remain an issue. Over the past several years your board has aggressively worked to reduce these accounts to responsible ownership. We have employed several collection agencies, solicited Wyndham support, and finally have resorted to taking foreclosure actions against delinquent owners. As of the end of September 2008, we have $238,169.96 of delinquent debt.

Since starting foreclosure actions, your board has authorized the expenditure to date of $47,000.00 with an additional $10,000.00 due on invoice. Presently we have a total of 54 accounts in foreclosure. Of those, 29 are in various levels of progress through the courts, 10 are up for public sale at auction, 1 has been sold at auction, 7 have been terminated out of foreclosure due to accepting our deed back option or having the accounts brought current, and 7 have been placed on hold awaiting owner response. As you can see, this is a lengthy process that takes time before we will see any significant reduction in our delinquent accounts. For this reason, your board decided not to take any additional accounts to foreclosure until some of these current accounts are resolved. However, your board remains committed to continuing foreclosure in the near foreseeable future.

As of the end of August 2008, Village Pointe has access to $148,854 in operating accounts with a net surplus of $121,407.40 against an actual budgeted surplus of $164,303. This leaves the association with a deficit of $42,407.40 for the current years operating costs. This deficit in the operational budget is directly attributed to unforeseeable current year increases in laundry and linen service (higher occupancy), recreation and amenities (additional offerings), trash removal, utilities (cost increases), accounting and data processing (additional staff), and master association dues (PLPOA).

To make up this deficit and meet projected operating costs in 2009, your board had little alternative but to increase maintenance fees for next year by $26.00 or $2.16 monthly. Owner maintenance fees will go from $529.00 to $555.00 annually. At the same time, your board once again delayed any significant projects for next year leaving a total of $34,768.28 budgeted out of reserves for 2008/2009. With projected collections through the remainder of 2008, Village Pointe will have a projected reserve ending balance of $475,902.58 by the end of the year.

As always, your board is here to serve you our valued owners. We will continue to do our best to earn your trust and maintain the value of your units. In the future, your board faces mounting pressure to upgrade our units to those of other Wyndham properties. As a result, your board may be soliciting your opinion on matters of upgrade so that we may better manage and make decisions relative to value of your ownership and exchange desires. If you have issues or concerns you wish to have discussed at upcoming board meetings, please e-mail me at lfuller08@hotmail.com, or call property management at 1-800-731-4123, ext 6. We will be meeting again on April 11, 2009 for our next quarterly meeting.

Respectfully,

Larry Fuller
President, Village Pointe