Covenants and Restrictions Member Presentation August 27, 2015

Where to Get Information August, 2014DRAFT2 Click Here Look for C&R Amendments headline

Ad Hoc Governing Documents Committee Russ Dickinson (Chairperson) Jim Biers (BOD Rep) Jerry Wishall (Secretary) Kirk Smith (COO) Charlie Creran (Ex Officio) Ron Hinkel Fred Muller Bill Riha Mike Slapak August, 2014DRAFT3 Recommend Changes to Out-Dated Documents to Meet Changing Needs of SLV, Ensure Financial Security & Provide for Membership Changing Needs

Agenda 1.Why We’re Here 2.Proposed Revisions –Controlling Our Own Destiny –Updating Language 3.Listening to Your Input and Feedback 4.Next Steps August, 2014DRAFT4

Why We’re Here Inform Community Listen to Member input and feedback Answer Questions Solicit Your Help – We Need You to Vote August, 2014DRAFT5

What Are The SLV Covenants Define membership, property rights, rules and types of assessment amounts and fees. Define property use restrictions. All members are required to follow as property owners. Amended November 30, 2011* * Amend any time with 50% approval of eligible voters. August, 2014DRAFT6 A Contract Between You and the Association

Why Change Started by a developer for THEIR benefit. 26 years old. Do not reflect today’s operating environment or our needs. Contain many obsolete provisions. Are complex, difficult to understand. Missing provisions found in most modern covenants. Update makes them more relevant and clear. August, 2014DRAFT7 SLV No Longer A Real Estate Development Project We Are a Community Operated For Benefit Of All Members

What This Means To Me Provides for better control of our own destiny. Clear covenants that reflect how SLV actually operates. Better membership understanding of important governance issues. Improves transparency and clarity. Supports future community improvements. Improved governance favorably impresses prospective new members. August, 2014DRAFT8 Financial Stability Supporting Community Growth

PROPOSED REVISIONS Investing in Our Community August, 2014DRAFT9

Topics 1.Assessments and Fees 2.Membership and Voting Rights 3.Regulations and Procedures 4.Property Rights 5.Other August, 2014DRAFT10

Assessments and Fees Annual Assessment Amount rate increase remains capped at greater of 5% or CPI. Property Transfer Fee is greater of $250 or 0.5% of sales contract price; not applicable to transfer between spouses or heirs. Cost to maintain exterior of unkempt Lots and Living Units is named “Specific Property Assessment”. August, 2014DRAFT11 No New Assessments Property Transfer Fee Increase

Membership and Voting Rights No changes to General Member definition. Obsolete Membership types removed (CooperShare and Developer). Current eight (8) Associate Members retain voting rights. New Associate Members will have no voting rights. No voting rights for any new future class of membership. Guest Cards may be issued for use of amenities and to assist in sale of Lots, Living Units and Associate Memberships. August, 2014DRAFT12 No Change to General Member Voting Rights

Regulations and Procedures Ability to vote by electronic record added. "Creation of Lien" language updated to include Specific Property Assessment. Clarified remedies and charges for delinquent accounts, and effect on Member's rights. Defined "Reserve Fund" as fund for: –future capital improvements –additions and periodic maintenance of facilities and assets –construction of any capital improvement on Common Properties. August, 2014DRAFT13

Regulations and Procedures Added requirement that surplus funds must first be used to pay current Common Expenses, then credit either next year's assessment and/or the Reserve Fund. Updated existing article on “Maintenance" allowing Association to do maintenance, repair or replacement obligation on properties the Owner cannot or will not do. Revised Use Restriction language of Home Businesses to be non-disturbing to neighborhood and in compliance with Property-Wide Standards. Revised Use Restriction language for Livestock, Poultry and Pets. August, 2014DRAFT14

Property Rights SLVPOA and Eight Acre, LLC are the only Developers. Only a Developer can subject additional lands to SLV Declaration of Covenants and Restrictions. Defines how, and conditions for bringing additional properties into SLV. Defines process for amending the use of Existing Properties and the appeal process for Members. August, 2014DRAFT15 No Changes to Member Rights

Other "Club" replaced with "Association" throughout. Articles and Sections deleted as obsolete, not required: –Articles on "Reserved Properties”, "Plans for Construction and Maintenance...“. –Covenant for Maintenance Assessments removes obsolete language on Developer rights. –Deletes section regarding Delegation of Collection Assessments as not required. Language added and updated: –"Whereas" clauses updated (document’s history). –Future designation of Common Property by the Association to be binding upon each Owner. –Right to obtain a Statement of Account from the Association. –Ability to recover costs incurred by the Association from Violators. –Failure to enforce any provision of the Association Legal Documents shall not be deemed a waiver of rights. –Updates process for terminating this Declaration. –Adds Developer right to assign, transfer or convey any reservations, rights or obligations and be immediately released and discharged of all liability. –Legal representatives, heirs, successors and assigns of all parties mentioned are bound to the provisions of this document. Sections moved or consolidated: –Plats subject to SLV Covenants and Restrictions moved to Exhibit 1. –Re-writes and consolidates articles regarding Owner and Association responsibilities for maintaining properties. August, 2014DRAFT16

Frequently Asked Questions Why didn’t we revise covenants before now? I heard other types of assessments were considered. What happened to them? Why was the Property Transfer Fee increased? Who approves the amendments to Covenants? What is the biggest challenge to adopting these proposed revisions? August, 2014DRAFT17

What Happens If Not Approved Existing covenants remains in place. Obsolete provisions remain in place. Property Transfer Fee remains as a Personal Charge at $250. Weaker control of Developer subjecting additional lands to SLV C&R’s. ACC Property-Wide Standards constrained by Covenants. August, 2014DRAFT18

Next Steps 1.Incorporate appropriate member feedback. 2.Voting October 12 th thru 30 th –A Single Package - Board Elections, Annual Meeting Proxy Authorization and C&Rs 3.A "YES" vote – 50% of eligible voters as of August 28 th needed to approve. August, 2014DRAFT19

PLEASE VOTE August, 2014DRAFT20 Not Voting is a "NO" Vote - Please Vote

Why Make Changes 1.Provide that SLV is in control of its own destiny. 2.Update language to make current, clear and relevant to the way SLV operates today. 3.Enable SLV to extend range of amenities and services to meet needs of more residents. 4.Preserve investment of all members. August, 2014DRAFT21

Introduction Savannah Lakes Village was established by Cooper Communities, Inc. as a real estate development project. Current covenants constructed to support SLV under the original interests of Cooper Communities. SLV is no longer a real estate development. We are a community, owned and operated by our property owners and residents, we are a community development. Proposed changes reflect the transition from a real estate project to a community operated for the benefit of the community. August, 2014DRAFT22 Updating Is Needed

Covenants and Restrictions Update Membership vote on or about XXX, Multiple “Listening Sessions” will be scheduled prior to vote. August, 2014DRAFT23 50% of Eligible Voters To Approve Not Voting is a "NO" Vote - Please Vote

What’s Changed / Not Changed No new Assessment Amounts. No changes to General Member rights. Modernization reflecting how SLV operates as a community. Clarification of Regulations and Procedures. August, 2014DRAFT24 No Longer a Developer’s Document

SLV Governing Documents Committee Objectives The Objective of the Governing Documents Committee is to review and update Savannah Lakes Village POA governing documents, specifically the By-Laws and Covenants & Restrictions. The purpose of these updates will be to give the Board of Directors greater ability and flexibility to manage Savannah Lakes Village in keeping with the changing needs of our community. Specifically, our shorter-term objectives will be to give our governing bodies tools to better manage and stabilize the POA’s financial health. Our second objective is to enable our governing bodies to enhance our members’ quality of life through the maintenance and creation of village construction, housing, amenities, and real estate conducive to the changing needs and desires of our community. August, 2014DRAFT25

What SLV Competes With August, 2014DRAFT26