RenovationPROJECT_FINAL

CLUB FINANCING FOR PROPOSED PROJECTS

NEW CLUBHOUSE OR RENOVATION PROJECT FINANCING (SUBJECT TO FINAL NUMBERS AT CLOSING) The cost for either the New Clubhouse or the Substantial Renovation will be financed with a 15 year reducing revolver from Truist Bank, which will be repaid with monthly Member assessments plus the use of capital resulting from 8 new home sales per year. The maximum revolver borrowing for the New Clubhouse plan is projected to be approximately $42 million and for the Substantial Renovation plan approximately $29 million. Both projects will benefit from using the Club’s cash each night to pay down the revolver. The projections assume that the Club will have the same ammount of cash on hand at the end of the loan as it has on day one.

NEW CLUBHOUSE $56,292,000 $ 6,128, 347 $62,420, 347

TOTAL USES OF FUNDS Projected Construction Cost Plus Interest Expense and Cap Cost Total Projected Costs for Club Divided by 600 Homes Total Projected Cost Per Member

SUBSTANTIAL RENOVATION $39,988,000 $ 3,604,988 $43,592,988

$ 104,034

$ 72,655

TOTAL SOURCES OF FUNDS New Clubhouse Assessment per Member ( $ 424 X 180 months or $5,088 annually) Substantial Renovation Assessment per Member ($249 X 180 months or $2,988 annually) Times 600 homes Total Member Assessment Sources for Club Total Home Sale Proceeds for Club (8 home sales/year *) Divided by 600 Homes Total Home Sale Use over 15 Years per Member Excess Cash at End of Loan for Club Divided by 600 Homes Excess Cash at End of Loan per Member

$ 76,320

$ 44,820

$26,892,000

$45,792,000

$16,750,000

$16,750,000

$ 27,916

$ 27,916 $ (121,653)

$ (49,003)

$ (202)

$ (81)

$ 104,034

$ 72,655

Total Projected Sources Per Member

$62,420,347

$43,592,988

Total Projected Sources for Club

*The proceeds from the first 2 homes sales through April 30, 2021 will result in capital inflows of $115k each. The remaining home sales through the 15 year life of the loan will result in capital inflows of $140,000 each as the board approved (effective May 1, 2021 and assuming the Membership approves one of the two projects) an increase in the new Member capital fee from $175k to $200k, which will result in each home sale after May 1 bringing in $140,000. Risks: In the event the Community selects either the New Clubhouse or the Substantial Renovation project, the Community will be obligated to the respective cost of each project as set forth above. The bank financing proposal contemplates the Community’s commitment, during the term of the loan, to allocate the net proceeds from the first 8 home sales to new Members each year as an integral part of the repayment program. To mitigate the risk of the Club not achieving 8 new Member home sales per year, the Board may establish a reserve of 3 homes to cover any potential shortfalls. As previously indicated to the Members, estimates used by the Club are based upon construction costs as provided by our professional: architect, pre-construction contractor and our owner’s representative. 54