Amendment and Reformation of Resolution 2010-1 of March 17, 2010

Cloverleaf Center Condominium

PO Box 2346

Germantown MD 20875

A Resolution Put before the Board of Directors in Open Session on December 21, 2011,

Titled Amendment and Reformation of Resolution 2010-1 of March 17, 2010

Whereas the Plex Unit owners voted on March 17, 2010 a levy upon themselves of a special assessment to repair certain long standing deficiencies in their common property, and

Whereas the Board of Directors thereby enacted Resolution 2010-1, and

Whereas the Board concludes, having gathered all necessary facts and analyses, that

·         The prior Board’s estimate of $14,100 per unit is insufficient to cover the costs of repairs to the remaining six (6) buildings, due mainly to the increased scope of the project required by current Montgomery County Code regarding repairs to the roofing and the decks.

·         The project can now go forward, however, by the affirmative resolution to amend and reform Resolution 2010-1 so as to reflect the costs previously obligated to this project and the expected future costs, including $1.7 million in contract costs for repairs, plus interest and other costs.

·         Time is of the essence of this project and of this assessment.

The elected current members of the Board of Directors therefore affirmatively resolve that this project shall now go forward, and amend and reform Resolution 2010-1 such that:

·         The Special Assessment repayment term is extended from 60 months to 108 months.

·         The monthly Special Assessment for each 98 Plex Unit owner is $235.

·         The total Special Assessment for each Plex Unit owner is $25,380.

·         The $25,380 consists of the following two parts:

o   A $14,100 lien that was due and payable July 1, 2010, plus

o   A $11,280 lien that is due and payable on this 21^st Day of December, 2011, upon the affirmation of this Resolution.

o   This lien may be satisfied by payment of $235 per month for 108 months and owners who are current in these monthly payments are not delinquent in that portion not yet due.

o   Owners are individually responsible for and shall pay on demand any and all costs of collection due to non-payment, fees, legal interest, plus the acceleration of this lien in its entirety.

·         Plex Unit owners who purchased a Plex Unit through a regular home sale or a foreclosure after the $14,100 collections originally began in October 2008 will also be responsible for their portion of the increased cost of the project, plus any unpaid portion of the $14,100 special assessment.  Owners who are in this situation will be notified separately by our Property Management Company about how much the additional payment will be and when their monthly payments will begin.

·         This Special Assessment covers the costs for the renovations specified in the engineering study as negotiated with the selected bidder, plus the costs for the repairs to Phase 13 (“Building 1”), which was completed except for the roof, engineering and bidding costs, a commercial loan up to $1.7 million for the specified repairs of the limited common elements of the remaining six (6) Plex buildings, loan interest and expenses, costs for collections, bad debts and certain other legal fees that relate only to this project, and unforeseen costs as may occasionally occur that relate to these repairs.

·         Although this Special Assessment shall continue to be memorialized in the Operating Budget, these are limited common element reserve expenses and are paid exclusively and entirely by the Plex unit owners. Certain Plex Unit operational expenses (maintenance) and limited common element reserve expenses may in the future benefit as a result of these repairs and further reserve study.