For Mortgage-Title Companies

Project Agency Eligibility Data

1. Mailing Address - SBO HOA - P.O. Box 544 - Lake Orion, MI 48361-0544

2. Are the units within this HOA attached or detached? Detached

3. How many Unites are in the HOA? 247

4. Does this association have a rental desk, short term occupancy or daily cleaning services? No

5. Is the association a timeshare or segmented ownership project? No

6. Is there an onsite rental office? No

7. Does the association have an established rental pool? No

8. Is the association a houseboat project? No

9. Is the project a common interest apartment or community apartment project? (This is a project that is owned by several owners as tenants in common or by the homeowners association in which individuals have an undivided interest in a residential apartment and have the right to exclusive occupancy of a specific apartment building.) No

10. Is the project an investment security (defined as projects that have documents on file with the Securities and Exchange Commission or projects where unit ownership is characterized as an investment opportunity). No

11. Does the project have any non-incidental business operations owned or operated by the homeowners association (such as but not limited to a restaurant, spa, health club, etc.)? No

12. Is the project a legal non-conforming use of land (if zoning regulations prohibit rebuilding to current density in the event of destruction)? No

13. Are there any manufactured housing units within the project? No

14. Is the project a conversion of an existing building? No

15. Is the association subject to inclusionary zoning (meaning some or all of the units may have restrictions on them including but not limited to age, income, etc.) which may affect future sales? No

16. Does the association contain any commercial space? No

17. Does the association contain any 2-4 unit dwellings secured by one mortgage deed? No

18. Is the project a condominium hotel? No

19. Is this project a site condominium (it contains all detached units but is still zoned as a condominium)? Yes

20. Is the association an assisted living community? If yes, describe the additional services provided in comments. No

21. Is any of the common area leased? No

Sales and Construction Status

1. Are all of the units within the association completed? Yes

2. Are all of the common areas completed? Yes

3. Is the project subject to additional annexation or phasing? No

4. What year was the project built (completed)? 2002

5. Date that control of the homeowners association was turned over or will be turned over to the unit owners: 2002

6. Has control of the association been turned over to the unit owners? Yes

7. Is the association subject to a master or umbrella association? No

8. Number of stories (if association is contained within one building): N/A

Occupancy Information

1. Total number of units within the association: 247

2. Total number of units sold and closed within the association: 247

3. Total number of units sold but not closed within the association: 0 (Zero)

4. How many units have onsite mailing addresses? 247

5. How many units have offsite mailing addresses within the association? 0 (Zero)

6. Total number of phases within this association.1 (one)

7. Are there individuals that own more than one unit within the project? No

8. Does any individual or entity own more than 10% of the units within the association? No

9. Total number of units still owned by the developer: 0 (Zero)

Assessments and Budget Information

1. Please indicate the dollar amount within the association's reserve account: $53,000

2. Total number of unit owners currently more than 30 days delinquent in homeowner association assessments: 3 (Three) as of March 2020

3. Total dollar amount of delinquencies (all categories over 30 days): $1,275

4. Total number of units in foreclosure. 0 (Zero)

5. Please indicate unit assessment ranges for this association: N/A

   1. • Assessments range from:

      • Assessments range to:

      • What is the frequency of the assessment charge?

6. Are the taxes for the individual units included in the H.O.A fees? No

7. Are the units separately metered for utilities? Yes

8. Utilities and services included in the unit assessment: No

9. Are there any mortgages outstanding for the association (only include loans secured by real estate)? No

10. Total reserves budgeted for the year: $5,400

11. Is the HOA budget adequate, including funding of replacement reserves for capital expenditures, deferred maintenance (at least 10% of the budget), adequate funding for insurance deductible amounts and allocations for line items pertinent to the type of association? Yes

12. Total income budgeted for the year: $56,100

13. Is the general maintenance level of the common elements acceptable and is there no deferred maintenance, based on the comments by the appraiser and/or the pictures? Yes

Title and Ownership Information

1. Are all units owned fee simple? Yes

2. Are any units owned as leasehold estates? No

3. Are any of the common areas still owned by the developer? No

4. Do the unit owners have sole ownership and the right to use the project's facilities? Yes - Common Areas

Legal Information

1. Is there a right of first refusal clause contained within the association's governing documents? No

2. Is the unit part of a condominium regime that provides for common and undivided ownership of common areas by unit owners? Yes

3. Are there any provisions in the condominium project documents that give a condominium unit owner or any other party priority over any rights of the first mortgagee of the condominium unit pursuant to its mortgage in the case of payment to the unit owner of any condemnation or casualty loss that affects either a material portion of the project or the unit securing its mortgage? No

4. Does the association have Articles of Incorporation and Bylaws? If not what documents are used in lieu of Articles and Bylaws? Yes

5. Is the association or the developer (if the project has not been turned over to the homeowners association) involved in any current or pending litigation? If yes, a comment is required. No

6. Is asbestos, lead-based paint or any other environmental toxin present in any unit or common area of the development? If yes, a comment is required. No

7. If unit is taken over in foreclosure or deed-in-lieu of foreclosure, is the mortgagee (lender) responsible for delinquent HOA assessments? Yes

Homeowner Information

1. Are there any current special assessments or governing body approved special assessments, against units within the association? If yes, a comment is provided. Yes

   • Approved Road assessment the the March 2019 Annual Homeowners Association Meeting

     • $300\home assessment to repair some of the subdivision roads.

     • 1st payment to be made in FY 2020

     • 2nd payment to be made in FY 2021 or

     • The full payment can be made via Paypal on the dues tab Dues Tab

     • Meeting minutes of plan and HOA approval can be found here March 2019 Meeting Minutes

Management Information

1. What is the length of the current management contract (in years)? Volunteer board Members (Elected Annually)

2. Does the management contract require a penalty for cancellation or an advanced notice of at least ninety_ days? N/A

3. What is the dollar amount of fidelity bond coverage carried by the community management company? $25,000

4. Are two or more board members required to authorize disbursements from the reserve account? Yes

5. Does the homeowners association have separate records for the operating and reserve accounts? Yes

6. Are monthly bank account statements being sent directly to the homeowners association? Yes

7. Does the management firm have the authority to disburse funds from the reserve account? Yes

Insurance Information

1. Name of the insurance carrier for the association: Auto Owners Insurance Company

   • Insurance broker's or agent's company name: Whims Insurance Agency Inc.

   • Identify the insurance agent's name: Susan Bakke

   • Insurance agent's phone number: (248) 651-7321

   • Is the amount of insurance equal to 100% of the current replacement cost? Yes

   • Liability limit per occurrence for bodily injury: $1,000,000

   • Fidelity bond/employee dishonesty insurance amount: $25,000

   • Does the owners association carry adequate common area coverage and do all other coverage's reflect the character, amenities and risks of the particular development? Yes