Village Palos Verdes

Homeowners Association

August 25, 2008

Dear Homeowners,

The Village Palos Verdes Board of Directors met with the Association’s Attorney and Lender last week to discuss the specifics of the HOA’s loan options and the types of payment plans that can be made available to the individual homeowners.  Pursuant to the Association’s governing documents and under the direction of the Associations Attorney, the assessment must be levied against all Owners in equal amounts.

Article VI, Section 1 of the Association’s CC&R’s obligate each owner to pay to the Association:

Regular Monthly  Assessments

Special Assessments for capital improvements

Emergency Assessments

Article VI, Section 5 stipulates that “Monthly, Special and Emergency Assessments must be fixed at a uniform and equal rate for all Condominiums”.

Therefore, a lump sum payment of $5,000 will be required of all Owners on December, 1, 2008, followed by monthly payments over the course of the Association’s loan (eight years), with a final payment for the loan balance due December 1, 2016.

For those who have requested the option to pay in full in advance, and to lessen the loan amount and risk to the Association, the Board is committed to offering advance payment options.  Owners may pay $75,000 on December 1, 2008 to avoid the cost of financing and administering the HOA loan, or they may make accelerated payments at any time.

We look forward to seeing you this Thursday, August 28, 2008 at 7:00 p.m.  See the enclosed meeting notice for further details on the meeting agenda.

Sincerely,

The Board of Directors

Village Palos Verdes Homeowners Association