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HOA NEWS | THE COLONY NEWS | JANUARY 2022 | 11 20. Who owns the current Performance Deed of Trust and what happens to it in a foreclosure? Response: The Colony HOA owns the Performance Deed of Trust and will retain ownership of it after a foreclosure sale. 21. Can The Colony sell a portion of the golf course if the Association purchases it? Response: Any sale of the parcels for any purpose other than a golf course would require the applicable parcels to be rezoned by the city and all of the other things that go along with a proposed development (e.g. Environmental Impact Report, Conditional Use Permit, etc.) 22. Can the Judge order a sale by Majestic Asset Management to the Colony? Response: No. However, the Judge can order the foreclosure of the golf course which will give the Association the opportunity to acquire it. 23. If foreclosure happens and we end up with the golf course property, can the Association separate the fingers and the slopes into separate parcels, own them, and then sell the reconfigured golf course property to a new third-party owner. Response: No. The fingers and slopes are not severable into separate parcels. The Association could impose a maintenance easement on the fingers and slopes giving the Association the obligation and the right to maintain them even if the golf course property is sold to a third-party owner. Category 5: Miscellaneous 24. Several questions were asked regarding the Army Corps of Engineers, wildlife, and blue-line stream maintenance if the property were to be developed. Response: If The Colony owns the golf course property, or a developer, all environmental issues will be explored. However, if the golf course is planned for development, the man-made lakes will most likely dry up due to lack of water supply affecting geese, ducks, and other wildlife. 25. What can be done to ensure all residents (including shut-ins) see this presentation? Have off-site property homeowners been made aware of these meetings? Response: Neighborhood Meeting Invitation flyers were distributed to each Colony home 7-10 days prior to their designated meeting. We are preparing a video presentation of the Neighborhood Meeting Information to be available to those who were unable to attend one of the meetings. This will include off- site owners as well as shut-ins. 26. How accurate are the figures provided in the presentation? Response: The presentation provided a model showing only one scenario projecting what could happen with figures we are aware of and believe are reliable. As additional information and studies become known, additional models will be considered. The most accurate information available will be included in materials mailed with the ballot to each member. Category 6: Vote 27. Several questions were received regarding the requirements for a homeowner vote to acquire the golf course property. These questions include do homeowners need to vote and how soon will they need to vote? What percent affirmative vote is required? How many yes votes are required to pass? Can the questions asked at these meetings be included with the information packet being provided with the ballot mailing? If we are bidding against developers in a foreclosure, how high can we bid? Response: The vote process includes scheduling one or more Town Hall Meetings with the members of the Association where questions will be answered, preparation and mailing of voting materials including the ballot by a third-party (30-days in advance of the scheduled vote). 50%+1 or 794 Yes votes are required to move forward with the purchase. The ballot materials will include authorizing a maximum dollar amount to purchase the golf course property (we are hopeful the purchase would be substantially below the amount authorized). If the golf course property is to be annexed as common area, that requires a vote of 55% or 873 members. The Board is awaiting the January 14 and 28 Court dates and is prepared to ask the Court to consider the legal requirements the Colony is bound by as the Court may order foreclosure of the golf course property at that time. 28. If we do not get the 50%+1, is it possible that many individuals could pool some money and buy it? Response: Yes, it is possible, but the timing of court cases works against this possibility. Category 7: Legal 29. At a recent board meeting regarding the golf course, the Board stated it had the authority to loan $400,000 to the Receiver. Could the Board again loan $400,000 to the owner of the golf course? Or $1,000,000? Response: The Court did not approve the Association to loan any amount of money to the Receiver. This is not an option available to the Association, so the point is moot. Continued on following page Continued from previous page

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