December 18, 2004

To: All Unit Owners

From: The Managing Board

Re: UTILITY CHARGES: Cost Recovery for exceptional use

At the General Meeting of December 12, 2004 the members of Cambridge

Cohousing approved the attached policy for recovery of exceptional utility

costs. The Calculation Sheet has a limited list of likely equipment but

owners with other equipment that would qualify should add it to the list.

In general, the power demand (Watts) for electrical equipment appears on a

plaque on the unit; otherwise it can be obtained from instruction manuals or

from the appropriate web-sites. The average cost for electricity in 2004

was $0.10/kWh.

In accordance with the policy, the Managing Board is distributing the

Calculation Sheet to all households with the request that the owners

complete the form, sign it and return it by the end of December together

with a check for the amount due if appropriate. Please place your signed

and completed sheet in the Managing Board box in the mailroom.

This policy presumes that all units are receiving sufficient heating and

cooling to meet the design standards for the project, with limited

excursions for unusual weather patterns. We recognize that many units were

not receiving adequate heat and cooling last year and owners in those units

should make a note to that effect on their form. We believe that these

problems have been rectified for most people at this time. Owners of units

where these standards still cannot be met should report this to the Managing

Board and Management Company so that we can evaluate the situation and

attempt to rectify the problem and/or authorize use of auxiliary heaters or

air conditioners.

This policy should not be regarded as blanket approval of the use of air

conditioners provided the owners are willing to pay the utility costs; use

of air conditioners is subject to review and approval through the design

review process, taking into account the needs of the unit owner seeking to

install an air conditioner and the comfort of neighbors who may be affected

by its use, as well as aesthetic objections.

Thank you for your cooperation.

CAMBRIDGE COHOUSING

RULES AND REGULATIONS

VI. UTILITY COST RECOVERY POLICY: (Approved December 12, 2004)

A. Policies. The purposes of this rule are as follows:

• To provide for improved ³fairness² in the recovery of the cost of utilities based on usage rather than size of unit.

• To encourage conservation by making residents aware of their utility use.

B. Rules

1. The attached Calculation Sheet will be distributed to all Unit Owners

on an annual basis some time after the Annual Meeting together with the

average cost per kWh for the prior year. All Owners will be required to

return the form indicating whether or not they are making exceptional use of

utilities. Owners should complete all the columns; it is particularly

important to show the power demand (in Watts) for any electrical equipment.

2. Exceptional uses of utilities by individual Unit Owners will be

subject to a surcharge based on the estimated demand and utility costs. The

surcharge will be billed at the end of the fiscal year and (for electrical

use) calculated using the average cost per kilowatt-hour for the past year.

To qualify, the exceptional use must be:

a. Identifiable -- There must be distinct, identifiable causes (e.g. a

specific activity or use such as an air conditioner, space heater, power

tools or hot tub). Merely leaving many lights on in every room would not

qualify.

b. Quantifiable -- The financial impact of the use must be measurable or

capable of estimation based on the power demand of the equipment involved

and the typical use.

c. Significant ­ The total excess cost must exceed $120 per year. If

estimated excess costs exceed $120 per year per unit, the entire excess cost

will be billed to the individual Unit Owner as a surcharge.

3. If requested, the Board will discuss the amount of any proposed

surcharge with the Unit Owner before it is imposed. The surcharge may be

waived in situations where the central HVAC is unable to provide adequate

heat or cooling. If the Unit Owner feels that the surcharge is unreasonable

and the Board disagrees, the Owner may bring the issue to the General

Meeting for discussion.

4. This policy will not apply to offices in the EE basement that are

rented to Unit Owners by Cambridge Cohousing. To the extent the demand by an

office meets the criteria of ³exceptional² use, a surcharge will be included

in the office rent.