1. Persimmon Creek Annual Meeting August 22, 2013 www.PersimmonCreekHOA.com

2. Your Board Term Expires Andrew YoncePresident & CEOAugust 2013 Marlin McCoyVice PresidentAugust 2014 Jaclyn CarterSecretaryStepping down John StockerTreasurerAugust 2014 Nick LayMember at largeAugust 2013 Steve ReevesMember at largeAugust 2014 Pete DickinsonMember at largeAugust 2014 Derek EdwardsMember at largeAugust 2013 Jessica StaufferMember at largeAugust 2014 Kurt ColburnChairman, Architectural CommitteeStepping down Derek MinkerMember at largeAugust 2014 Dan HallMember at largeAugust 2013 Sala DanboiseMember at largeAugust 2013

3. President’s Priorities 2012-2013 Maintaining a Balanced Budget Continuing the Downward Delinquency Trend Save one year of operating expense Playground Renovation Project (Finished) Maintain Community Common Areas Continued Monitoring of the Blenheim Project

4. 2012 -2013 Year in Review Strong Financial Position Delinquencies are Down again 4 rd year running Playground Restoration – Finished Replace Gazebo roof - Finished

5. FY 2012-2013 Financial Report Current Cash Position Estimated Ending balance (8/31) $ 48,649.47 Will have reached our target to have one year of HOA expense the reserve by 2014 -- one year early! Back Dues owed to the community was $8893.79 (as of 7/31/2012) Back Dues owed to the community is $5961.04 (as of 7/31/2013) A decrease of 33%

6. FY 2013-2014 Dues Dues will remain at $239 for 2013-2014 Things to keep in mind: Dues notices will be mailed Sept 1 st Dues are due Sept 30 th All reasonable payment plans accepted, Contact Aspen Failure to pay will result in account being sent to collections

7. FY2013 - 2014 Budget Dues for 2013-2014 will be $239 per home2013/14 Budget Income 06310 - Association Fees $ 45,410 Expense 07010 - Management Fees 12,160 07020 - Accounting & Audit Fees 400 07160 - Legal Fees 500 07280 – Insurance 2,200 07300 – Website 250 07320 - Office Expense 2,000 07410 – Community Expense 150 07990 - Bad Debt Expense 5,000 08910 – Electricity 5,000 09020 - Grounds Maintenance 7,300 09110 - Repair and Maintenance 500 09140 – Janitorial 2,700 09410 - Grounds Committee 633 End of Expense $ 38,793 09910 - Reserves - Saving Contribution $ 6,617.00

8. Renting Rule Proposal to remove the following rule: {As of July 1, 2009, all sales of homes must be for owner-occupied use only. Existing rental properties [owned by other than an owner-occupant prior to July 1, 2009] will be allowed to continue as rental properties. Beyond July 1, 2009, if a current rental property is sold, it will fall under the new restriction of owner- occupied use only.} We had 187 homes when the rule when into affect. Since then about 20 homes have sold. That’s167ish homes that still can rent. This rule does not prevent renters. The former President of the HOA that proposed this rule is now renting The President at the time the rule passed he is now renting Three other board members have rented out their homes in the last year

9. Renting Rule The typical argument is that “Renters” are bad and “Homeowners” are good. This is a generalization that is based on little facts Are some renters bad residents? Yes Are renters good residents? In most cases, Yes Are some homeowners bad residents? Yes Are homeowners good residents? In most cases, Yes We currently have no landlords behind on HOA dues We have had success in working out issues with landlords

10. Our Renting Rule… What does the renting rule do for us? It drives down property values for everyone. Foreclosure increases in likelihood for owners that move, have difficulty selling, and cannot rent Reduces the potential size of the market for our homes by ‘excluding’ potential buyers At present we know of at least 6 foreclosures

11. Renting Rule - Case Study Case Study #1 73 Mule Deer They decided they wanted to move closer to their kids in Florida. Put their house on the market for over a year They had an offer on the house, accepted. The offer was from a single Man, early in his career. He found out about the rule while reading our website, Contacted the HOA to see if it was possible to get a waiver in the future if needed. We had to state that that was not an option. He pulled his offer The owners decided to rent because they found a house in Florida that they wanted to buy. They rented their house The renters ended up being a problem to the community. The HOA and fellow homeowners documented the events that took place. The HOA provided all the documentation to the homeowner and respectfully requested that the homeowner not give the renter an opportunity to renew the lease. The renters lease was not renewed, they moved out Once the inspection was done the homeowner found there was 6k in damage done to the home.

12. Renting Rule - Case Study Case Study #2 Owner purchased her house after the rule was put into place. She cannot rent her home She has lived in the community for the past 3 years She recently got engaged to someone that lives in Baltimore. They plan to move in together in his house down in Baltimore after the wedding. Her options are as follows: Sell her house for less then what she owes Foreclose

13. Renting Rule – What if Scenario Scenario Joe is being forced to relocate for work. (He is not allowed to rent his home.) He decided to rent his house anyway instead of foreclosing and ruining his credit. He rents to a great family with two small kids. The family is well liked in the community. It is brought to the HOA’s attention that Joe is not allowed to rent his home after the renters have been in for 3 mo. Does the community want to spend it’s HOA dues going fighting Joe in court to remove these renters? Yes The renters get kicked out (what did they do wrong?) The HOA spent 10K or more on legal fees (per case) The owner forecloses on the townhome HOA Dues have to go up to cover new cost of legal fees No We have to treat all cases equal So, We do not enforce the rule What’s the point of the rule?

14. Renting Rule So what are we really talking about? A rule that increases the possibility of foreclosure A rule that has and will continue to turn away buyers from the community. A rule that will keep home values lower the other townhome communities that do not have a similar rule. Let’s give our community the best possible chance of increasing in value in the coming months and years by repealing this rule.

15. Renting Rule Vote Proposal to remove the following rule: {As of July 1, 2009, all sales of homes must be for owner-occupied use only. Existing rental properties [owned by other than an owner-occupant prior to July 1, 2009] will be allowed to continue as rental properties. Beyond July 1, 2009, if a current rental property is sold, it will fall under the new restriction of owner- occupied use only.}

16. Board of Directors Standing for Election Term Expires Andrew YoncePresident & CEOAugust 2013 Nick LayMember at largeAugust 2013 Derek EdwardsMember at largeAugust 2013 Dan HallMember at largeAugust 2013 Sala DanboiseMember at largeAugust 2013

17. Aspen Property Management General Email: info@aspenpropertymgmt.cominfo@aspenpropertymgmt.com Brad Carrillo, President/Property Manager Email: bcarrillo@aspenpropertymgmt.com bcarrillo@aspenpropertymgmt.com James Kulesza, Property Manager Email: jamesk@aspenpropertymgmt.comjamesk@aspenpropertymgmt.com Website: http://www.aspenpropertymgmt.comhttp://www.aspenpropertymgmt.com 200 East Main Street Elkton, MD 21921 Phone: (410) 620-2598 Fax: (443)303-8890

18. Aspen Management Report Aspen visits the Community once a week  To date we have opened 155 violations  We have resolved 147 violations  We are currently working on 8 violations Typical Enforcement Procedure ◦ Initial warning ◦ Second Warning ◦ Final Warning ◦ Advise the Board to make a determination to send to legal for enforcement or attempt to resolve with an alternative method.

19. Aspen Focus for 2013-2014 Manage 2013-2014 HOA Billing / Processing Collect on Pass Due Accounts Manage Finances to the Board’s Budget Focused Enforcement of the following: ◦ Homeowner Landscaping Maintenance ◦ Exterior Home Maintenance ◦ Trashcans Storage ◦ Parking Other Tasks as Assigned

20. Important Information Corron’s Trash Removal 410-287-4790 ◦ Preferred Community Trash Hauler ◦ Special Community Pricing, With No Fuel Surcharge ◦ Ask for the Persimmon Creek pricing

21. Thank You for Attending Questions?