Dear Village Pointe Owners,

Your board of Directors met April 10, 2010 for their quarterly board meeting. This is a report of that meeting. We have made significant progress since beginning foreclosure action on our delinquencies in 2007. Our decision to take such action and incur the court costs have paid off and will continue in the future to benefit the association and our owners in good standing.

I am pleased to report that our guest satisfaction ratings have increased for the period January through February this year over the same period in 2009. This simply means that the work put into improving our units, resort amenities, and resort facilities has bore fruit. All tracked ratings from overall experience through overall view of the resort staff has increased at least 3% points over last year. This not only benefits our association but the entire Wyndham Pagosa resort and goes a long way in maintaining the vacation value of our ownership. Your board congratulated the Wyndham resort staff for their continued efforts on behalf of our owners.

Property management has had some staff turnover as usually is the case and has made seamless transitions in hiring necessary replacements. We have a new office manager and front desk manager. Both positions are critical to day to day resort operations and the new staff members have taken up the challenges.

Occupancy has increased over the period January through February from 41% in 2009 to 50% in 2010. Increased occupancy is expected to be on the increase over the coming summer months. MasterCorp, our contracted housekeeping company is now working closely with property management to conduct room inspections and mock quality assurance inspections weekly to ensure unit cleanliness rating continue to rise to guest expectations and satisfaction. Every Village Pointe unit will now be inspected at least weekly to set new standards of excellence in housekeeping. Our 4th quarter quality assurance inspection passed with a 92% score.

Unit maintenance continues to work and improve the preventive maintenance process to increase ratings and exceed guest expectations. Seasonal grounds crews will be added this summer to maintain and exceed our exterior scores. Work will be done this summer on our exterior building steps and decks as well as inspecting and if necessary re-staining the buildings. In addition, exterior landscaping will be inspected with shrubbery, grass, and trees, etc. replaced if necessary. Interiors will be inspected during housekeeping inspections to ensure all appliances, soft goods, door screens, and unit lighting is in good order, and working to guest expectations.

Property management has made great strides in improving recreational activities for our owners and guests. Many activities have been added and the staff is currently working on adding an additional 6 hours of activities for our upcoming summer owners and guests to participate in.

As of the end of February 2010, our financials are tracking as follows: We have billed $961,200 in maintenance fees and have collected $833,806.13 for an early collection rate of 87%. We have $127,393.87 in fees yet to be collected for 2010 or 13%. We have 259 accounts outstanding or delinquent for a total of $295,664.31. Our reserve account balance as of February 2010 is $596,695.99 with an additional $163,000.00 budgeted for the remainder of 2010. With interest earned, our ending reserve account balance is expected to be $624,197.48. We have collected $699.00 in rental income.

We continue to make great progress against our delinquent accounts. In 2009, we resold 26 accounts for a total of $66,594. So far in 2010, we have resold 6 additional accounts for a total of $15,500. As of April 2010, we have a total of 11 fixed week accounts in foreclosure. Twenty accounts are in bankruptcy. Four accounts have been deeded back and are on the sales list, three are waiting name changes, seven are waiting deeds, and three are in process of being deeded back. Eight accounts are in the process of making payments. Fifty nine accounts are currently in collection with Accounts Recovery Group (ARG), fifteen are Fairshare Plus (FSP) (points) delinquent accounts.

As always, your board remains committed to you our owners. We do encourage your comments and concerns. We are always open to your suggestions and recommendations. Please refer any questions, suggestions, or recommendations you have to me via e-mail at lfuller08@hotmail.com or to property management at Marlene.Jorgensen@wyndhamvo.com. Or call Property Management at 1 (970) 731-8040/8041.

Respectfully,

Larry Fuller
President, Village Pointe