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Transcription

FOURTH AMENDMENT
TO THE
PUBLIC OFFERING STATEMENT
FILED AND PRESENTED BY:
U.S. HOME CORPORATION
800 WEST MAIN STREET
FREEHOLD, NEW JERSEY 07728
FOR
GREENBRIAR AT WHITTINGHAM
(SECTION 2.1-67 HOMES)
(SECTION 2.2, Phases A & B - 115 HOMES)
(SECTIONS 2.2 Phases C through H, 1.3 - 405 HOMES)
(SECTION 3.1-100 HOMES and SECTION 1.5-30 HOMES)
(SECTION 3.2 - 209 HOMES)
LOCATED IN THE
TOWNSHIP OF MONROE, MIDDLESEX COUNTY, NEW JERSEY
NOTICE TO PURCHASERS
THIS FOURTH AMENDMENT TO THE PUBLIC OFFERING STATEMENT IS FOR INFORMATIONAL
PURPOSES ONLY. PURCHASERS SHOULD ASCERTAIN FOR THEMSELVES THAT THE PROPERTY
OFFERED MEETS THEIR PERSONAL REQUIREMENTS. THE NEW JERSEY DIVISION OF CODES AND
STANDARDS, BUREAU OF HOMEOWNER PROTECTION, DEPARTMENT OF COMMUNITY AFFAIRS
HAS NEITHER APPROVED NOR DISAPPROVED THE MERITS OF THIS OFFERING.
EFFECTIVE DATE OF PUBLIC OFFERING STATEMENT: JULY 14, 1994
REGISTRATION NUMBER: #R 1532C
Effective Date of First Amendment: OCTOBER 7, 1994
Effective Date of Second Amendment: APRIL 20, 1995
Effective Date of Third Amendment: JANUARY 31, 1997
Effective Date of Fourth Amendment: DECEMBER 26, 1997
THIS FOURTH AMENDMENT TO THE PUBLIC OFFERING STATEMENT HAS BEEN FILED AND
PRESENTED PURSUANT TO THE PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT
(N.J.S.A. 45:22A-21 ET SEQ.), AND OF THE REGULATIONS PROMULGATED THEREUNDER.
Prepared By:
WENDELL A. SMITH, ESQ.
Greenbaum, Rowe, Smith, Ravin, Davis & Himmel, LLP
P. O. Box 5600
Woodbridge, New Jersey 07095
FOURTH AMENDMENT
TO THE
PUBLIC OFFERING STATEMENT
FOR
U. S. Home Corporation, a Delaware corporation (hereinafter the "Developer"), with its principal office at
800 West Main Street, Freehold, New Jersey 07728 hereby amends its Public Offering Statement ("POS") for
Greenbriar at Whittingham (the "Development") effective July 14, 1994, the First Amendment to the Public
Offering Statement ("First Amendment") effective October 7, 1994, Second Amendment to the Public Offering
Statement ("Second Amendment") effective April20, 1995, and Third Amendment to the Public Offering
Statement dated January 31, 1997 as set forth herein.
Heretofore, the Developer has offered for sale pursuant to the POS sixty - seven (67) fee simple Homes in
Section 2.1 of the Development. Under the terms of the Public Offering Statement and ancillary governing
documents, the Developer has reserved the right to incorporate additional Homes into the Development and to
offer the additional Homes for sale. By means of the First, Second and Third Amendments, the Developer
exercised its right to offer for sale six hundred and fifty (650) additional fee simple Homes in Sections 2.2, 1.3
(the Model Area in the Development.) 3.1 and 1.5 of the Development. By means of the Fourth Amendment, the
Developer is hereby exercising its right to offer for sale two hundred nine (209) additional fee simple Homes in
Section 3.2 in the Development and the POS is modified as herein provided.
1.
The Table of Contents is supplemented with the following:
25. Proposed Amendment and Supplement to The Declaration of Covenants, Conditions and
Requirements for the Greenbriar Golf Course.
2.
Section 3 entitled "Description of the Development" is amended as follows:
A. As amended, the first paragraph is deleted in its entirety and replaced with the following:
"The Development consists of approximately 343.2 acres of land owned by the Developer upon
which the Developer currently intends to ultimately construct 1,200 Homes and a nine hole golf course,
which has been completed; together with certain other improvements, and hereby offers for sale an
additional two hundred nine (209) fee simple Homes in Section 3.2 of the Development".
B. As amended, the first three sentences in the third paragraph in this Section are deleted in their entirety
and replaced with the following:
"The Homes, in Section 3.2 are intended to include 47 single family detached Homes and 162
single family attached duplex Homes, respectively. The single family detached models include the
Barrington, Danbury, Manchester, Westbury and Yardley which range from 1,750 to 2,800 square feet in
area. The single family attached duplex models include the Concord, Essex, Fairfax, Lexington, Westport
which range from 1,675 to 1,840 square feet in area."
3.
In Section 4, at page 13, the last sentence of the second paragraph is amended as follows:
"The current cost for basic service for two outlets and one converter is approximately $29.95 per month
per home".
4.
In Section 5 entitled "Community Facilities and Improvements", at page 16, second paragraph, second
sentence, is amended to include the following sentence:
"It is the developer's intention to donate and convey the church site to WHOA no later than five years
after the sale of the last lot and to permit the WHOA Board to determine the ultimate use of the property."
5.
In Section 9, Subsection C, entitled Greenbriar Golf Course Association, at page 26, the same is hereby
amended as follows:
" An initial annual assessment of $20.00 per month or $240.00 per year per person is currently projected
for all Golf Members which is subject to future cost of living increases".
6.
In Section 10, entitled "Management Agreement and Other Contractual Obligations", at page 27, first
paragraph, second sentence, subsection (i) , is amended as follows:
"an agreement to provide nursing services with St. Peter's Medical Center;
Section 10, Subsection (v) is hereby amended as follows:
"an agreement to provide monitoring and service for alarm systems with MCA;
Section 10, Subsection (vii) is hereby deleted in its entirety.
Section 10, Subsection (viii) is hereby amended as follows:
"an agreement to provide accounting services with Wentworth Management Co."
7.
In Section 20, entitled "Taxes, Municipal Assessments and Deductions", the third through fifth sentences
are revised as follows:
"The tax rate per $100.00 of the assessed valuation for the last three years is as follows: 1997 $2.28, 1996 - $2.28, 1995 - $2.25. At the present time, assessed value, based upon the County
equalization, is 100.00% of proposed assessment, land and improvements. In 1997, the assessed ratio was
87.98%, in 1996 the assessed ratio was 88.16% and in 1995 the assessed ratio was 88.75%".
Exhibits to Public Offering Statement
Copies of the following Exhibits are attached as Exhibit to this Fourth Amendment to the Public Offering
Statement:
WHITTINGHAM HOMEOWNERS ASSOCIATION, INC.
7.
Exhibit 7 - Service Agreements:
(A) St. Peter' Medical Center
(B) MCA
(C) Wentworth Management Company
8.
Exhibit 10A - Forecasted Annual Budget including Reserves for the Year of Operations ending December
31, 1998 Based on Occupancy of 1049 Units and 1997 Dollars
9.
Exhibit 10B - Forecasted Annual Budget including Reserves for the First Full Year of Operations Based
on Full Occupancy of 1613 Units and 1997 Dollars
10.
Exhibit 10C - Insurance Letters of Adequacy
GREENBRIAR AT WHITTINGHAM COMMUNITY ASSOCIATION. INC.
11.
Exhibit 13 - Forecasted Annual Budget including Reserves for the year of Operation ending December
31, 1998 based on Occupancy of 660 Units and 1997 Dollars
12.
Exhibit 13A - Forecasted Annual Budget including Reserves for the First Year of Operations based on
Full Occupancy of 1200 Units and 1997 Dollars
13.
Exhibit 13B - Insurance Letters of Adequacy
14.
Exhibit 15 - Proposed Purchase Agreement with attached Rider. The section entitled "Closing of Title"
Subsection 10.1 has been modified. The Purchase Agreement has an attached Off-Site Disclosure Rider. A copy
of the revised Purchase Agreement is attached hereto with the Rider.
15.
Exhibit 19 - Proposed Amendment and Supplement to The Declaration of Covenants, Conditions and
Restrictions for Greenbriar at Whittingham ("Greenbriar Declaration"). A copy of the proposed Amendment and
Supplement to the Greenbriar Declaration for the incorporation of the 209 Homes in Section 3.2 is attached
hereto.
GREENBRIAR GOLF COURSE ASSOCIATION. INC.
16.
Exhibit 21 - Forecasted Annual Budget including reserves for the Year of Operations Ending December
31, 1998 based on 807 Members and 1997 Dollars
17.
Exhibit 21A - Forecasted Annual Budget including reserves for the First Full Year of Operations Based
on Full Occupancy of 1,347 Members and 1997 Dollars
18.
Exhibit 21B - Insurance Letters of Adequacy
19.
Exhibit 25 - Proposed Amendment and Supplement to The Declaration of Covenants, Conditions and
Requirements for the Greenbriar Golf Course ("Golf Course Declaration"). A copy of the proposed Amendment
and Supplement of the Golf Course Declaration is attached hereto and made a part hereof.
20.
Except as set forth in this Fourth Amendment to the POS ("Fourth Amendment") for Greenbriar at
Whittingham, all other provisions of the POS for Greenbriar at Whittingham dated July 14, 1994, shall remain as
stated.
The Developer has been represented by the law firm of Greenbaum, Rowe, Smith, Ravin, Davis
& Himmel, LLP in the preparation of this Fourth Amendment to the Public Offering Statement. Said law firm has
made no independent investigation or determination as to the accuracy of the facts and statements set forth herein,
but has relied on the representations made by the Developer and its agents with respect thereto. Accordingly,
although said law firm has no specific knowledge to the contrary, it assumes no independent responsibility or any
liability with regard to the accuracy of such facts or statements. In addition, said law firm has relied exclusively
upon the opinions or certifications of those other persons who have prepared or approved various exhibits
to this Plan or the Application for Registration and has not made an independent judgment or evaluation
of any aspects of same. Therefore, it also assumes no independent responsibility or liability with respect to
the contents of any such exhibits.
The Developer hereby represents that to the best of its knowledge information and belief, the statements
and representations contained herein are true and accurate.
U. S. HOME CORPORATION
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WHITTINGHAM HOMEOWNERS ASSOCIATION. INC.
Exhibit 7A
St. Peter's Medical Center Service Agreement
WHITTINGHAM HOMEOWNER'S ASSOCIATION, INC.
100 Whittingham Drive, Jamesburg, New Jersey 08831
609-655-5656 • Fax: 609-395-1122
CONTRACT FOR NURSING SERVICES
This Agreement is made this 28 day of June 1996 by and between
WHITTINGHAM HOMEOWNERS ASSOCIATION, INC., 100 Whittingham Drive, Jamesburg, New
Jersey 08831 (hereinafter the "Association") and ST. PETER'S MEDICAL CENTER, 254 Easton
Avenue, New Brunswick, New Jersey (hereinafter the "Contractor").
WHEREAS, the Association is responsible to exercise all powers, duties, and authority vested in
or delegated to this Association and not reserved to the membership by other provisions of the By-Laws,
Certificate of Incorporation or the Declaration of Covenants and Restrictions; and
WHEREAS, the Contractor possesses expertise in the area of nursing and medical
services; and
WHEREAS, the Association desires to retain the Contractor for the purpose of providing the
residents of the Whittingham Homeowners Association, Inc. with on-site nursing services; and
WHEREAS, the Contractor agrees to furnish all labor, materials, and equipment necessary to
perform the scope of work set forth in this Agreement.
NOW, THEREFORE, in consideration of the terms, conditions, and covenants hereafter set
forth, the parties mutually agree to the following:
1. The term of this Agreement shall be two (2) years from the date the Agreement is fully executed by
both parties.
2. The Contractor agrees to furnish all labor, materials, equipment and services necessary to perform the
following work for each year that this Agreement remains in effect:
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I.
Management or Health Care Center
A geriatric nurse practitioner win be responsible for coordinating and managing the program at
Greenbriar at Whittingham. The Contractor shall furnish the Association with geriatric nurse
practitioner's resume prior to commencing work under this Agreement.
A.
Responsibilities of the coordinator snail be as follows:
1.
Maintaining staffing as indicated in Section II.
2.
Maintaining a clinical record for each resident or individual seen. Records will be
the property of Nursing Station and remain at the station at all times. Staff will
release the records only in an emergency and only to medical personnel,
Management, or others authorized by the resident of the Association or others as
directed by Management. If there is a fall on the common property, an incident
report will be supplied to Management along with any of the nurse's notes
relevant to the matter.
3.
Conducting quarterly quality assurance review of services provided and reporting
such findings including identified problems and plans for correction, in writing, to
the Homeowners Association.
4.
Meeting quarterly with the Association's management to review performance of
this Agreement, resolve problems, discuss operational and programmatic areas of
mutual concern.
5.
Reviewing performance of staff on an ongoing basis and conducting a formal
annual review.
6.
Developing educational programs utilizing resident input.
7.
Developing and conducting screening programs.
A.
Residents will receive calendars (specially developed for the geriatric
population) with dates of screening and forthcoming educational offerings.
II.
Staffing Requirements
A.
St. Peter's Medical Center will be responsible for staffing Greenbriar at Whittingham's
on-site Nursing Station on a twenty-four (24) hour, three hundred
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sixty-five (365) day basis. The overnight nursing shift shall perform their duties from the
Guard House, including but not limited to answering the phone, visitor processing,
monitoring the weather, and notifying Management of ice and/or snow conditions,
monitoring alarm CRT screen, and directing mobile guard accordingly, and any and all
duties as directed by Management.
B.
Greenbriar at Whittingham Nurse's Station will be staffed at all times by an RN or an
LPN with valid, unrestricted New Jersey license on the following shifts, including
weekends and holidays:
C.
1.
7 a.m. -3 p.m. 1RN
2.
3 p.m -11 p.m. 1 LPN
3.
11 p.m. – 7 am 1 LPN (remains at Security Gate House on this shift)
Determination of permanent staff will be agreed to by both parties. The Association shall
have the right to recommend reassignment of any permanent staff, for any reason, at any
time.
D.
Nurses shall wear crisp, white uniforms at all times while on duty with a nurse's cap.
E.
The contractor shall supply all first aid supplies necessary and supply the Association
with a list of such supplies present in the Nursing Center.
F.
The following supplies will be provided by the Contractor and kept in the Nursing
Station: refrigerator, scale, table, emergency medical bag, emergency light for the nurse's
motor vehicle, and any other furniture and/or equipment and supplies necessary to
properly equip the Nursing Station.
III.
Health Services to be Provided Without Fee to Residents
A.
Emergency first aid at Nursing Station or resident's home.
B.
Vital signs check (i.e., temperature, pulse, respirations, blood pressure and weight).
C.
Flu vaccines (cost of vaccine to be paid by resident's Medicare).
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D.
Basic or rudimentary health counseling/teaching to residents to include the following:
1.
Health-style screen (RN only)
2.
Abbreviated health history (especially medication)
3.
Social screen
4.
Hearing screen (RN only)
5.
Basic health counseling
6.
7.
E.
A.
Smoking cessation
B.
Alcohol consumption
C.
Medication acquisition and self-administration
Standard screens
A.
Glucose
B.
Cholesterol
C.
TB
Allergy shots will not be provided.
The following for fee health services can be made available at the Nurse's Station on
order of a licensed physician, and at the resident's expense:
F.
1.
Blood drawing
2.
Urinalysis
3.
Glucose testing (finger stick)
4.
Injection of prescribed medication
5.
Nursing treatment at Greenbriar at Whittingham or resident's home
6.
Pap smear
7.
Prostate Exams
8.
Vital signs for homebound parties
The following is a list of other wellness services to be provided to the residents without
fee:
An annual health fair that would enhance education of the residents on the following
topics:
1.
Advance directives (living wills)
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2.
If a resident contacts the Nursing Station directly, the nurse shall be responsible
for contacting emergency services and arranging for an ambulance. The nurse will
notify Security as he/she is proceeding to the residence.
3.
If the resident contacts the Guard House, the Guard taking the call shall contact
emergency services and request an ambulance and notify the nurse to go directly
to the resident's house.
4.
The nurse shall monitor the Security Department's UHF radio at all times for
emergencies.
5.
An ambulance shall be requested to respond to the scene if anyone falls on the
Association's property. The nurse shall provide Management with a copy of their
"Nurse's Notes" and Incident Report relative to the incident
6.
No personal calls shall be permitted from the Guard House or Nursing Station.
Nurses and staff are to use credit cards to make any personal phone calls.
7.
Nurses shall not sunbathe or exercise on the Whittingham Homeowners
Association grounds.
8.
All nurses shall wear an emergency notification pendant to be used in the case of
an emergency in the Nursing Station.
9.
During storms and/or severe weather, the nurse on duty shall call all residents on
the health and welfare fist to check on the resident's needs.
The Contractor shall maintain and keep up-to-date the health and welfare fist and
supply Management with a copy of any and all changes.
10.
The Contractor shall provide the Association and Management with assistance
and input into the preparation of the Emergency Management Plan. The nurse will
also participate in any EM meetings and evacuations.
11.
All nurses shall undergo orientation by the Coordinator, which shall include at
least one (1) hour road training as to the location of various buildings, residences,
and landmarks within the Association's property. The
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J.
8.
Successful Hospital Stays
9.
Home/Fire Safety
10.
Hypertension
11.
Strive for Good Mental Health
12.
Dealing with Loss
A library of health-related articles win be maintained at Greenbriar at Whittingham
for residents' use.
K.
Posters on Health Education
L.
A welcome letter/brochure will be provided to all existing and new residents
describing the nursing services offered.
M.
IV.
Additional classes on other subjects may be added upon Management's request.
Information Technology to Support the Integrated Continuum of Care.
A.
Computer hardware and software to be supplied by St. Peter's Medical Center to develop
a residential content data base (futuristically to facilitate integration of Nursing Station
physician's office and hospital).
B.
All computer records shall become and remain the property of the Whittingham
Homeowners Association, Inc., and the Association shall be provided with a copy of all
information on disk.
C.
All data input into the computer shall be backed up onto disk on a daily basis. The
Association shall be the sole owner of the back-up disks and any information contained
therein.
D.
The Contractor shall memorialize any change in a resident's computer record with
a hard paper copy inserted in the resident's file, in chronological order.
V.
Rules and Regulations of the Greenbriar at Whittingham Nursing Station
A.
All nurses and staff of the Greenbriar at Whittingham Nursing Station shall abide by the
following Rules and Regulations:
1.
At anytime, when a nurse is dispatched to an emergency at a residence, an
ambulance shall be contacted.
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H.
2.
Nutritional-specific issues (e.g., fats, salts)
3.
Hypertension
4.
Stress Management
5.
AIDS
6.
Health Care Reform
7.
Safety in home
8.
Community resources
9.
Health Care supply vendors
10.
American Association for the Blind
11.
TB
Wellness classes on the following topics to be held periodically (resident calendars would
include dates and times of programs)
I.
1.
Memory - How to Improve It
2.
Loss and life Changes
3.
Home Care Options
4.
Safety in the Home
5.
Depression
6.
Positive Aging Experience
7.
Dementia
8.
Weekly Weight-Watching Classes
A monthly article, including the following topics, will be made available for residents:
1.
Hypothermia
2.
Hypothermia
3.
Skin Cancer 4 Safe Sex
5.
Driving Safely
6.
Fitness
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Cancer Prevention
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neglect, omission, or agreement on the part of the Contractor, its agents, employees,
subcontractors, or servants in connection with the prosecution or the work hereunder,
whether covered by the insurance specified herein or not.
K.
The Contractor shall indemnify and hold harmless the Association, its Trustees, Officers,
Agents, and employees against and from all suits, demands, claims, damages, or costs of
suits including attorneys' fees to which the said Association or its aforesaid Trustees,
Officers, Agents, and employees may be put to by reason of injury or damage to the
person or property of others resulting from actions of the Contractor and/or its
employees, defective materials furnished by the Contractor, his agents, employees,
servants, or subcontractors in the performance of any of the work or defective machinery,
implements, or appliances furnished or used by the said Contractor, his agents,
employees, servants, or subcontractors and particularly from any claims of the employees
of the Contractor under Worker's Compensation Laws arising out of the performance of
this work, and as a result of which the Association or any of its Trustees, Officers,
Agents, or employees may be sued directly or as a Third-Party Defendant or otherwise be
involved in any way. The Contractor shall assume and defend, at its own expense, any
suit, action, or legal proceedings arising herefrom.
L.
The Contract is contingent upon the Association's approval of the Contractor's insurance
coverage. The Contractor shall produce valid certificates of acceptable insurance
coverage for malpractice, comprehensive property liability, personal injury liability
($1,000,000.00) minimum liability coverage), automobile, vehicular and equipment
coverage, and workman's compensation. "Acceptable" as used in this paragraph shall be
determined at the sole discretion of the Association and shall mean written by a reputable
insurance company, which company is licensed to conduct such insurance business m the
State of New Jersey and providing for adequate amounts of coverage to be ascertained in
the sole discretion of the Association.
This paragraph shall not be construed or deemed to in any way limit any liability of the
Contractor to the Association.
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E.
The Contractor shall maintain its equipment, including the nurses' motor vehicles and
medical equipment, m first-class operating condition. The Association reserves the right
to inspect an equipment prior to the commencement of work by the Contractor and at any
time during the duration of the Contract Nothing in the Contract, however, shall be
construed as acceptance by the Association of any liability for personal injury or damage
arising out of the Contractor's failure to comply with this provision of the Contract The
parties hereby expressly agree and warrant to one another that the Contractor shall be
solely liable for personal injury, death, or property damage arising and/or resulting from
the Contractor's failure to comply with this provision.
F.
In the event of the Contractor's default under the terms of the Contract, the Association
may procure the services of other contractors to complete the work and charge the
Contractor the reasonable costs incurred, including court costs and attorney's fees. The
Contractor shall be deemed to be in default under the terms of the Contract if the
Contractor shall fail to perform the work described in the specifications, and said failure
shall continue for a period of fifteen (IS) days after written notification of said failure
from the Association to the Contractor.
G.
The Contractor may not subcontract any work without securing, in advance, the written
approval of the Association. Approval of subcontractors shall not relieve the Contractor
from its obligation to perform the work described in the specifications.
H.
The Contractor will come under the direct supervision of the on-site administrator for the
Whittingham Homeowners Association, Inc. The regular duty RN will be the contract
person for all communications between the on-site administrator and the Contractor and
responsible for fulfilling all directions received from the on-site administrator.
I.
The Contractor shall comply with all Federal, State, and Local laws insofar as applicable
to me performance of the Contract.
J.
The Contractor hereby agrees to assume the entire responsibility and liability for any and
all damage to property caused or resulting from or arising out of any act,
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contractor shall provide the Association with written confirmation of the
orientation, signed by the nurse involved.
12.
The lunch breaks shall occur where there is no emergency, and the office is quiet.
A nurse must be available to the residents twenty-four (24) hours per day.
13.
All Association staff and guards shall be trained on-site in CPR annually, at no
additional cost All new staff shall be so trained within a reasonable time of their
commencement of work.
14.
From time to time, Management may request additional duties as deemed
necessary for certain or unique circumstances; flexibility and cooperation is
expected.
B.
The price payable to the Contractor by the Association, per each year that the Contract
remains in effect, shall be as follows:
1.
Salary Cost = $149,519.00, to include staffings as follows:
a.
1 RN x 8 hours x 365 days x$20.23/hour
(includes benefits) = $59,071.00
b.
LPNs x 16 hours x 365 days x $1547/hour
(includes benefits) = $90,448.00
c.
The third year renewal shall be at a maximum increase of 3% over the
current annual contract price.
d.
A geriatric nurse practitioner will be responsible for coordinating and
managing the program at Greenbriar at Whittingham at no additional cost
to the Association,
C.
In the event there is any change in the specifications or and corresponding change in
price, said change(j) shall be agreed to between the parties and the Contract shall be
amended in writing before the Contractor shall be obligated to perform the work and
before the Association shall be obligated to pay any increase in price.
D.
This Contract shall not be transferred and/or assigned by either party without the other
party's written consent.
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M.
If any provision of this Contract shall be deemed invalid, it is agreed that such
invalidity shall affect only such provision, and the remaining provisions shall
remain in full force and effect.
N.
This Contract may be terminated by the Association; with or without cause,
provided the Association provides the Contractor with thirty (30) days written
notice of such termination.
O.
This Contract contains the entire agreement between the parties. Any changes and/or
alterations to this Agreement shall be effective only if in writing and signed by the
parties.
P.
The teems of this Contract shall be governed by the laws of the State of New Jersey, and
any suit arising out of the terms of the Contract shall be venued in the County of
Middlesex, New Jersey.
ST. PETERS MEDICAL CENTER
Witness/Attest
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ADDENDUM TO THE AGREEMENT BETWEEN WHITTINGHAM HOMEOWNERS
ASSOCIATION. INC. AND ST. PETER'S MEDICAL CENTER ENTERED
INTO JUNE 28, 1996.
Section V.
following:
K.
K.
shall
be
deleted
and
replaced
with
the
1. The Contractor shall indemnify and hold harmless
the Association, its agents, servants and employees
against and from:
(a) any and all claims arising from any negligent act
or omission of the Contractor, its agents, servants
and employees; and
(b) all costs, expenses and liabilities incurred in
connection with each claim or action or proceeding
brought thereon. In case any action or proceeding is
brought against the Association, its agents servants
and employees, arising from any negligent act or
omission of the Contractor, its agents, servants and
employees, the Contractor upon notice from the
Association shall resist and defend such action of
proceeding.
2.
The Association shall indemnify and hold harmless
the Contractor, its agents, servants and employees
against and from;
(a) any and all claims arising from any negligent act
or omission of the Association, its agents, servants
and employees; and
(b) all costs, expenses and liabilities incurred in
connection with each claim or action or proceeding
brought thereon. In case any action or proceeding is
brought against the Contractor, its agents servants
and employees, arising from any negligent act or
omission of the Association, its agents, servants and
employees, the Association upon notice from the
Contractor shall resist and defend such action of
proceeding.
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Section V. N. shall be deleted and replaced with the following:
N.
Either party may terminate this contract, with or without
cause provided the other party is provided with thirty (30)
days written notice of such termination.
Witness/Attest
St. Peter's Medical Center
Witness/Attest
Whittingham Homeowners
Association, Inc.
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Exhibit 7B
MCA Service Agreement
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Alarm Monitoring Services Agreement
Greenbriar at Whtttingham
Homeowners' Association Inc.
100 Whtttingham Drive
Jamesburg, New jersey 08831
(609)655-5656
MCA Acquisition Corp. D.BA.
Monitoring Corporation of America
100 Canal Points Blvd., Suite 204
Princeton New Jersey 08540
(609)243-0404
THIS AGREEMENT is made as of this 31st day of August 1995, by and between MCA
Acquisition Corporation (MCA), a New Jersey corporation, and Whittingham Homeowners'
Association, Inc. (Whittingham), with offices in the planned community known as The
Communities at Whittingham, located in Jamesburg, New Jersey.
WHEREAS MCA is in the business of installing, servicing and monitoring residential alarm
systems, and
WHEREAS Whittingham Homeowners Association, Inc. is a New Jersey Non-Profit
Corporation responsible for the maintenance, preservation and management of the Whittingham
residential community; and
WHEREAS, Whittingham Homeowners Association, Inc. desires to engage MCA to meet its
alarm monitoring needs,
Now, THEREFORE, the parties agree to the following:
1.
Price. The rate for monthly monitoring and maintenance will be $12.50 per residence
plus applicable sales tax, to be paid in advance by Whittingham each month. It is the
responsibility of Whittingham to collect from each homeowner. The rate of monitoring shall
decrease as the total sum of accounts increases (total accounts form existing Whittingham
residents and Greenbriar at Whittingham residents) as follows:
2.
Maintenance. MCA will maintain the Whittingham residential security systems at no
additional charge for service rails during Regular Hours (Monday through Friday, 9 a.m. to 430
pm), excluding state and federal holidays, or for replacement parts that are necessary due to
normal usage. There will also be no charge for emergency service calls (e.g., an in-house fire
alarm that keeps
1
17
sounding without a visible cause and can't be stopped by the homeowner) at any time. Requests
for After Hours calls for service that could be scheduled for Regular Hours will be charged at
$25 per visit, plus $25 per hour (or portion thereof) for the duration of the visit (e.g., a minimum
charge of $50 per visit). Parts that need to be replaced through homeowner misuse or due to acts
of God (e.g., lightning strikes) are also payable by the homeowner. Fees charged by MCA for
after hours service rails, and costs for parts which need to be replaced through homeowner
misuse or due to acts of God, shall be the sole responsibility of the homeowner necessitating
such call and/or part, and MCA shall bill the homeowner directly for said costs.
3.
Annual Inspections. MCA will inspect the security system in each home at least once
per contract year at no additional charge. Such inspection may be coupled with a service call,
however, in the event that there are no service calls to a particular residence during the course of
a year, MCA will schedule an inspection at the convenience of the homeowner. At the time of
annual inspection the technician will record the visit on the inside of the alarm panel To make
note of each inspection a sticker will be provided during transition. An initial system check will
be performed during the transition process (see paragraph 6) and will serve as the first annual
inspection.
4.
Remote Alarm Notification. MCA will place a printer at the Whittingham guard house
for immediate notification of all alarms originating from the community. The cost of the printer
and the modems necessary for its operation will be absorbed by MCA (including maintenance),
however, the cost of the phone line connecting the printer to MCA's central station in Princeton
will be borne by Whittingham. The notification codes used by MCA in transmitting alarm
messages to the printer at the Whittingham guard house will be: 1 for fire, 2 for panic, 3 for
burglary, 4 for medical and 7 for trouble, in addition, MCA's central station dispatchers will call
the Whittingham guard house to report all Whittingham alarms.
5.
Priority of Contacts. In the event of an alarm, MCA will first attempt to contact the
subscriber (or the parties designated by the homeowner). If this cannot be accomplished after
one attempt of five rings (with a second attempt upon receipt of a busy signal), MCA will then
notify the necessary emergency services. After such notification, MCA will then notify the
Whittingham security staff about the alarm. In the case of a medical emergency, MCA [will
notify the Whittingham nurse prior to security staff notification. Lastly, MCA will attempt to
notify the subscriber contacts or homeowner in the case of either a burglary or fire alarm.
6.
False Alarms. To prevent false alarms each subscriber will have a "password* that will
inform MCA that the alarm received was mistakenly set off and the subscriber is all right To
create a user friendly environment that is easy
2
18
for subscribers to remember, a "password" will be designated by the subscriber. In the event of a
false alarm for which MCA contacts emergency services, MCA will bill the homeowner who
will be responsible for paying to MCA the applicable charges in Monroe Township for false
alarms (currently at $25 each).
7.
New Homes. When new homes are occupied the subcontractor JM Security, or a US
Home subcontractor will schedule an appointment with the homeowner to explain the operation
of the security system and to provide appropriate explanatory materials to the new homeowner
and have all necessary document and form submitted by the homeowner to MCA. MCA will
then begin the monitoring of each home as received from the US Home subcontractor.
Upon the sale and occupancy of pre-existing homes MCA will schedule an appointment with the
homeowner to explain the operation of the security system and to provide appropriate
explanatory materials to the new homeowner. In both cases it will be the responsibility of the
subscriber to notify MCA about changes in ownership at least two weeks prior to occupancy to
permit MCA to schedule such appointments. Each home in the community will be assigned a
subscriber number which will remain in place even for subsequent homeowners.
Billing will begin effective the first full month of residence.
8.
Transition. The responsibility of transition for existing homeowners is exclusively that
of the US home subcontractor installing security systems for each home in the community.
MCA will assist in making that transition by providing the necessary form to the US Home
subcontractor as needed.
9.
Insurance. MCA will maintain liability insurance at all times during the term of this
Agreement liability insurance for itself of not less than $5 million annual aggregate with an
insurer licensed by the State of New Jersey. A copy of the terms of the insurance policy will be
provided to Whittingham within thirty (30) days prior to the execution of this agreement
10.
Liability for Failure of Emergency Security. Whittingham acknowledges that it is
impractical and extremely difficult to fix the actual damages, if any, which may result from
MCA's failure to perform any of its obligations herein, or the failure of the system to properly
operate. Under these circumstances, the parties agree that MCA's liability shall be limited to the
annual fee paid to MCA by Whittingham as total liquidated damages and not as a penalty. The
provisions of this section shall apply to loss or damage irrespective of cause or origin, resulting
directly or indirectly to persons or property, from performance or nonperformance of the
obligations imposed by this Agreement, or from negligence, active or otherwise, of MCA, its
agents, assigns, or employees. These liquidated damages shall be Whittingham's exclusive
remedy.
11.
Term. This agreement will have a minimum initial term of five years, commencing
January 1 ,1996, and will be automatically renewable for an
3
19
additional term of two years thereafter unless canceled upon ninety days' notice prior to the
initial contract expiration or any anniversary date. In the event MCA fails to perform under the
terms of the contract or is responsible for gross negligence, the contract could be canceled prior
to the initial expiration date or the contract anniversary date if MCA fails to cure the default
within thirty days' notice.
12.
Assignment. This agreement shall not be assigned by MCA without the prior written
consent of Whittingham Homeowners Association. This agreement may be assigned by
Whittingham Homeowners Association or Whittingham, or to any subsidiary or affiliate of
Whittingham; and at Whittingham's option this agreement shall be deemed to be assigned by
Whittingham Homeowners Association to Whittingham, or any subsidiary or affiliate or
Whittingham, as of the date of any notice thereof by Whittingham to MCA.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed on
the day and year first above written.
Accepted:
Whittingham Homeowners' Association
Accepted:
MCA Acquisition Corporation
by: George Breen Gregory A. Snyder
President, WHOA
by:
Kenneth A Hopkins
General Manager, MCA
4
20
Exhibit 7C
Wentworth Management Company
Service Agreement
21
22
Exhibit 10A
Forecasted Annual Budget Including Reserves
For the Year Of Operations Ending December 31, 1998
Based on Occupancy of 1049 Units and 1997 Dollars
35
36
FORECASTED ANNUAL BUDGET INCLUDING RESERVES
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31,1998
BASED ON OCCUPANCY OF 1049 UNITS AND 1997 DOLLARS
37
38
The Developers
Whittingham Homeowners Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Whittingham Homeowners
Association, Inc. for the year ending December 31,1998 based on occupancy of 1049 units. Our
examination was made in accordance with standards for an examination of a forecast established by
the American Institute of Certified Public Accountants and, accordingly, included such procedures as
we considered necessary to evaluate both the assumptions used by the Sponsor and the preparation
and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and
belief, the Association's expected revenues, expenditures and replacement funding for the year ending
December 31, 1998 based on 1049 units. It is not intended to be a forecast of financial position, results
of operations or cash flows. The accompanying forecasted operating budget and this report were
prepared for the Developer, for inclusion in the Public Offering Statement of Whittingham Homeowners
Association, Inc. and should not be used for any other purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with
guidelines for presentation of forecasted information established by the American Institute of Certified
Public Accountants and the underlying assumptions provide a reasonable basis for the Sponsor's
forecast, and that the operating budget including replacement funding is adequate. However, there will
usually be differences between the forecasted and actual results, because events and circumstances
frequently do not occur as expected and those differences may be material. We have no responsibility
to update this report for events and circumstances occurring after the date of this report.
125 Half Mile Road. Red Bank. New-Jersey 07701-6749 • Tel (732) 747-0500 • Fax (732) 747-7700
NOTE
REFERENCE
REVENUES:
Whittingham Homeowners Association
maintenance
Greenbriar at Whittingham Community
Association maintenance
Township snow removal reimbursement
Developer subsidy
ANNUAL
BUDGET
1
$1,171,715
2
3
4
879,740
20,956
134,345
TOTAL ASSOCIATION REVENUE
$2,206,756
OPERATING EXPENSES AND CAPITAL RESERVES:
GENERAL AND ADMINISTRATIVE:
Insurance
Professional fees
Management
Salaries, taxes and benefits
Uniforms
Payroll service
Nursing services
Audit fee
Office supplies
Copier
License/fees/permits
Bank service charges
CAI membership dues
Card keys
Federal income tax
Engineer
Discretionary Loan
Miscellaneous
5
6
7
8
9
10
12
11
13
14
15
16
17
18
19
20
21
22
$ 183,900
12,000
30,900
229,725
7,600
2,300
162,000
3,500
29,500
8,820
500
950
600
1,080
15,000
3,000
14,740
6,000
TOTAL GENERAL AND ADMINISTRATIVE
GROUNDS AND LANDSCAPING:
Painting
Refuse and recycling
Grounds maintenance
Snow removal
Lighting maintenance
Repairs and maintenance
Irrigation
Street sweeping
Pest control
712,115
23
24
25
26
27
28
29
30
31
5,000
38,508
179,000
57,750
12,100
56,000
23,760
3,000
4,452
TOTAL GROUNDS AND LANDSCAPING
379,570
See Accompanying Summary of Significant Assumptions
and Accountant's Report
2
40
NOTE
REFERENCE
SECURITY:
Security salaries, taxes and benefits
Gatehouse
Gate maintenance
Security
Home monitors
32
33
34
35
36
ANNUAL
BUDGET
$ 206,749
6,200
3,000
1,000
57,800
TOTAL SECURITY
274,749
CLUBHOUSE:
Utilities
Telephones
Cable
Elevator
Indoor plants
Maintenance wages, taxes and benefits
Repairs and supplies
Trash removal
Real estate taxes
37
38
39
40
41
42
43
44
45
106,760
16,850
400
2,360
4,800
114,001
47,250
1,550
65,000
TOTAL CLUBHOUSE
358,971
POOL:
Management
Repairs
Maintenance and supplies
Gas/electric
TOTAL POOL
TRANSPORTATION:
Auto expense
Auto lease
Bus driver wages and taxes
Bus repairs and maintenance
Bus lease
Bus operations
46
47
48
49
102,000
14,000
5,000
4,000
125,000
50
51
52
53
54
55
15,000
16,330
40,600
3,600
18,000
100
TOTAL TRANSPORTATION
93,630
CAPITAL EXPENDITURES
56
10,000
CAPITAL REPLACEMENT RESERVES
57
252,721
TOTAL ASSOCIATION BUDGET
$2,206,756
3
41
WHITTINGHAM HOMEOWNERS ASSOCIATION
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31, 1998
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the
Association's expected operating budget for the year assuming the following conditions:
•
No construction or material defects will exist after completion of the common and
limited common areas and structures;
•
The quantities of common and limited common areas contained in the operating
budget are accurate;
•
Proper maintenance of the common and limited common areas and structures will
take place in the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and
assessments will be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of November 26,1997, the date of this
forecast, of the expected course of action given 1997 dollars for the fiscal year based upon
occupancy of 1049 units. The forecasted budget amounts are those expected to be incurred
in the normal operations of the general and limited common elements. It does not include
expenses incurred for individual units. The assumptions disclosed herein are those that the
sponsor believes are significant to the forecast. Further, even if full occupancy levels were
attained and expenses remained at 1997 dollars, there will usually be differences between
the forecasted and actual results, because events and circumstances frequently do not
occur as expected and those differences may be material.
4
42
REVENUES:
Note 1. Whittingham Homeowners' Association Maintenance
This revenue account is calculated based on a combination of unit square footage and of
equal allocation of the following items: reserves, trash removal and home monitoring.
Townhouses 213 units
Single family 64 units
Manors
136 units
$246.55 per unit/per month
Note 2. Greenbriar at Whittingham Community Association Maintenance
Each unit owner of Greenbriar at Whittingham is assessed a monthly fee to cover operating
expenses of the recreational facilities maintained by the Whittingham Homeowners'
Association. This revenue account is calculated at $115.27 per unit per month based on 636
units.
Note 3. Township snow removal reimbursement
The Association is to be reimbursed for snow removal from Monroe Township and 100%
reimbursed for recycling.
Note 4. Developer Subsidy
Any deficiency between the actual income and expenses for the Whittingham Homeowners
Association Fixed Expenses in any fiscal year, shall be paid by the Developer in twelve (12)
equal monthly installments based upon the current Whittingham Homeowners Association
operating budget. The Developer shall have the right to terminate its subsidy of the
Whittingham Homeowners Association Fixed Expenses at any time after at least 1,210 homes
within the community have been conveyed to individual purchasers.
EXPENSES:
Note 5. Insurance
This expense is based on the current insurance coverage from Boyarin, Hourigan and
Blundell to provide replacement cost hazard insurance on the common elements, Directors
and Officers coverage, employee dishonesty fidelity bond, and comprehensive general
liability. The expense also includes $10,000 as a self insured deductible.
Note 6. Professional Fees
Cost to provide legal counsel and to bring collection actions for delinquent accounts. Amount
based on prior year expenses.
Note 7. Management
This cost is based on $2,575 per month to provide financial management and consulting to
the Association and is based on the current contract with Wentworth Property Management
Company.
5
43
GENERAL AND ADMINISTRATIVE: (Continued)
Note 8. Salaries. Taxes and Benefits
These estimates are based on five full time and three part time management employees.
Payroll taxes are computed at 11% of salaries. Benefits are estimated on current billings for
full time employees.
Note 9. Uniforms
Uniform expense is calculated for 16 workers at an approximate cost of $9.15 per worker per
week.
Note 10. Payroll Service Expense
This cost is based on contract with ADP to provided payroll services at $40 per week plus
preparation of year-end reports.
Note 11. Audit Fee
An annual independent audit of the Association is required by the Association documents. Fee
based on quote from current auditing firm.
Note 12. Nursing Services
Amount based on a contract with St. Peters Medical Center to provided nursing services.
Note 13. Office Supplies
Estimated expense for supplies, letterhead, postage, and paper based on 1997 actual.
Note 14. Copier
Cost of leasing a copier and related service contract estimated at $735 per month.
Note 15. Licenses/Fees/Permits
These expenses consist of various operating licenses, fees and permits required by various
agencies and authorities. The amounts are estimated based on the prior year budget.
Note 16. Bank Service Charges
Represents various bank charges on Association's bank accounts. Amount is estimated based
on the prior year budget.
Note 17. CAI Membership Dues
Amount based on CAI schedule of membership dues.
Note 18. Card Keys
This expense represents the estimate cost of gate openers.
Note 19. Federal Income Tax
The Association is required to pay Federal income tax on non-membership income which
consists primarily of interest income.
Note 20. Engineering
Estimated cost to update Association's Capital Replacement Reserve Study.
6
44
Note 21.
Discretionary Fund Repayment
The Association utilized $44,220 from its Discretionary Reserve Fund to cover deficits in its
variable operating expenditures. The Discretionary Fund is to be repaid over a three year
period at a rate of $14,740 per year.
Note 22.
Miscellaneous
Expenses not included in above categories. Amount based on prior year.
Note 23.
Painting
Estimated cost of painting doors for 100 Whittingham Homeowner units at $50 each
Note 24.
Refuse and Recycling
Calculated based on 413 Whittingham units a $7.77 per unit per month charge by local
carters.
Note 25.
Grounds Maintenance
Landscape maintenance is provided through a contract with Landscape Maintenance
Services Inc.
Note 26.
Snow Removal
Estimated cost based on 1997 budget amount plus 5% increase
Note 27.
Lighting Maintenance
Maintenance on lights poles and fixtures owed by Whittingham Homeowners Association
based on 1997 actual costs.
Note 28.
Repairs and Maintenance
These items consist of fixed expenses relating to the common area recreation facilities
excluding the pool and variable expenses relating to Whittingham units for siding, shingles,
drainage and landscape items. Costs relating to these items are based on 1997 actual
amounts.
Note 29.
Irrigation
Irrigation consists of equipment maintenance, well and electric to operate the pump. The
costs are based on a 1997/1998 maintenance contract and 1997 actual electric usage costs
Note 30.
Street Sweeping
Estimated cost for one sweeping per year based on 1997 budget.
Note 31.
Pest Control
Cost of treatment based on 1997/1998 contract.
SECURITY:
Note 32.
Security Salaries, Taxes and Benefits
These estimates are based on six full time and five part time employees. Payroll taxes are
computed at 11% of salaries. Benefits are estimated on current billings for full time
employees.
7
45
SECURITY: (Continued)
Note 33.
Gatehouse
Maintenance and utilities based on 1997 actual amounts.
Note 34.
Gate Maintenance
Cost of replacing gate arms based on 1997 actual/budgeted amounts.
Note 35.
Security
Estimated miscellaneous supplies for security.
Note 36.
Home Monitors
Cost of home monitoring based on a contract for 413 Whittingham homes at $11.00 per unit
per month plus tax.
CLUBHOUSE:
Note 37.
Utilities
Utilities consist of electric, gas, water and sewer based on prior year.
Note 38.
Telephone
Coin phone and telephones located in the clubhouse and gatehouse based on prior year.
Note 39.
Cable
Cable television service is available in the clubhouse. The cost is at a rate set by the local
cable supplier.
Note 40.
Elevator
Elevator maintenance is based on a 1997/1998 service contract with Cesco, Inc.
Note 41.
Indoor Plants
Maintenance of indoor plants is estimate at $400.00 per month based on prior year costs.
Note 42.
Maintenance Wages, Taxes and Benefits
These estimates are based on three full time and three part-time employees. Payroll taxes
are computed at 11% of salaries. Benefits are estimated on current billings for full time
employees.
Note 43.
Repairs and Supplies
These expenses are for items not covered elsewhere and are calculated based on 1997
budget amounts plus 5%.
Note 44.
Trash Removal
Expense is calculated at S128.76 per month based on contract with local carter.
Note 45.
Real Estate Taxes
This tax is based on the current tax rate per $100 in assessed value as established by the
Monroe Township tax assessor. The land and building are assessed at approximately
$2,633,000.
8
46
POOL:
Note 46.
Management
The Association has an indoor and outdoor pool. The management expense of the pools are
based on a 1997 contract with Candlewood Pool Management.
Note 47.
Repairs
These costs are for general repairs including concrete work, heaters, gaskets and filters and
are based on prior year costs.
Note 48.
Maintenance and Supplies
These expenses are for items not covered by the pool contract and are calculated based on
prior year costs.
Note 49.
Gas/Electric
These expenses are calculated based on prior year costs.
TRANSPORTATION:
Note 50.
Auto Expenses
These expenses are for fuel, repairs and maintenance of the Association's vehicles based
on prior year costs.
Note 51.
Auto Leases
The Association has three vehicle leases. The amount reflects the current lease obligations
under these leases.
Note 52.
Bus Driver Wages and Taxes
These estimates are based on one full time employee and one part time driver. Payroll taxes
are computed at 11% of salaries. Benefits are estimated on current billings for the full time
employee.
Note 53.
Bus Repairs and Maintenance
Estimated operating costs based on prior year.
Note 54.
Bus Lease
The Association is financing a bus under a lease purchase. The monthly payments of
principal and interest are $1,500.00. Final payment is due April 1, 2001.
Note 55.
Bus Operations
The expense consists of motor vehicle fees to operate the bus.
9
47
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31. 1998
CAPITAL RESERVES:
Note 56.
Capital Expenditures
Estimated cost of acquiring new capital items for Association use.
Note 57.
Capital Reserve Replacement Funding
An independent engineering report was prepared by Crest Engineering Inc. through a
review of the site and architectural plans in August 1995. The quantities and cost estimates
included in this budget were directly from this report. The schedule of capital replacement
reserves are detailed in an exhibit to this report. (Pages 11-12)
The budgeted amount for 1997 is based on the reserve schedule plus a 2% increase for
inflation. It also includes an increase for newly acquired items since August 1995 which are
not included on the reserve schedule.
10
48
REPLACEMENT RESERVE SCHEDULE
AUGUST 1995
Capital Item
RECREATION:
Pavement
Concrete Walks/Patios
Lighting
High level
Standard
Structures
Pool-Outdoor
Liner
Equipment
Deck-Concrete
Deck-Wood
Wood Awning
Building Roof
Furniture
Fence
Tennis Courts
Recolor
Resurface
Fence
Fence
Lights
Shuffleboard Courts
Whittingham Drive
Pavement
Concrete
Guardhouse
Security Gate
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
11
23
$ 124,000
28,300
$ 8,267
943
21
21
23
35,200
42,900
40,000
1,408
1,716
1,333
13
8
23
23
23
13
8
23
25,000
8,000
28,600
12,600
20,160
7,200
35,000
49,880
1,250
533
953
420
672
360
2,333
1,663
8
18
23
18
18
16,000
52,500
17,250
17,250
26,400
17,500
2,285
3,500
690
690
1,056
700
14
23
13
3
192,500
17,500
16,000
32,000
12,833
583
800
3,200
861,740
48,188
18
160,000
6,400
8
13
13
23
18
13
37,200
72,000
4,500
10,000
9,100
47,300
2,480
3,600
225
417
364
2,365
13
13
13
13
13
13
13
2,600
17,300
17,400
7,900
17,900
8,400
12,000
130
865
870
395
895
420
600
SUBTOTAL
BUILDING INTERIOR:
HVAC
Floor Covering
Carpet
Tile
Ceramic Tile
Hardwood
Miscellaneous
Wall Covering
Furniture - 1st Floor
Medical Area
Ballroom
Partition
Great Room
Lobby
Tap Room
Kitchen
Annual
Reserve
Required
11
49
AUGUST 1995
Capital Item
Estimated
Remaining Useful
Lives (Years)
BUILDING INTERIOR: (Continued)
Rest rooms
Locker Rooms
Sauna/Steam
Pool-Indoor
Liner
Equipment
Exercise Room
Furniture - 2nd Floor
Mens Card
Womens Card
Board Room
Billiard Room
Offices
Hall
Rest rooms
Furniture - Basement
Ceramic & Crafts
Billiards
Rest rooms
Misc, Furniture
Card Tables
Chairs
64" Tables
Current
Replacement
Value
Annual
Reserve
Required
13
19
13
13
18
8
13
4,800
8,400
12,600
$ 4,800
15,800
11,500
10,500
240
420
630
$ 240
632
767
525
13
13
13
13
13
13
8
4,200
2,600
5,200
2,600
7,900
1,600
1,900
210
130
260
130
395
80
127
13
13
8
6,800
4,200
1,900
340
210
127
9
9
14
3,600
50,000
6,000
240
3,333
300
13
3
23
51,750
10,800
32,700
2,588
1,080
1,090
95,250
4,758
17
22
22
22
645,000
54,000
516,000
36,000
25,800
1,800
17,200
1,200
7
7
22
7
12
127,000
41,400
5,200
205,520
43,950
145,200
8,467
2,760
743
6,851
2,930
7,260
1,819,270
75,011
SUBTOTAL 590,500 29,362
BUILDING EXTERIOR:
Roofing - Shingles
Roofing-Flat
Vinyl Siding
SUBTOTAL
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
SUBTOTAL (Section 1)
12
50
AUGUST 1995
Capital Item
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
Annual
Reserve
Required
19
24
24
24
720,000
82,200
579,000
54,000
28,800
2,740
19,300
1,800
9
9
1
24
9
14
78,000
19,800
2,460
259,620
40,730
179,300
5,200
1,320
352
8,654
2,716
8,965
2,015,110
79,847
$5,381,870
$237,166
TOTAL
13
51
52
Exhibit 10B
For the First Full Year of Operations
53
54
FOR THE FIRST FULL YEAR OF OPERATIONS
BASED ON FULL OCCUPANCY OF 1613 UNITS AND 1997 DOLLARS
55
56
The Developers
Whittingham Homeowners Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Whittingham Homeowners
Association, Inc. for the first full year of operations based on full occupancy of 1613 units. Our
examination was made in accordance with standards for an examination of a forecast established by
the American Institute of Certified Public Accountants and, accordingly, included such procedures as
belief, the Association's expected revenues, expenditures and replacement funding for the year first full
year of operations based on full occupancy. It is not intended to be a forecast of financial position,
results of operations or cash flows. The accompanying forecasted operating budget and this report
were prepared for the Developer, for inclusion in the Public Offering Statement of Greenbriar Golf
Course Association, Inc. and should not be used for any other purpose.
125 Half Mile Road, Red Bank, New Jersey 07701-6749 • Tel. (732) 747-0500 • Fax (732) 747-7700
57
NOTE
REFERENCE
ANNUAL
BUDGET
1
1,005,779
2
3
1,187,892
20,956
REVENUES:
maintenance
Township snow removal reimbursement
$2,214,627
Insurance
Professional fees
Management
Salaries, taxes and benefits
Uniforms
Payroll service
Nursing services
Audit fee
Office supplies
Copier
License/fees/permits
Bank service charges
CAI membership dues
Federal income tax
Engineering
Miscellaneous
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
-
$ 183,900
12,000
30,900
229,725
8,116
2,300
162,000
3,500
33,925
10,143
500
950
600
17,250
3,000
6,000
Painting
Refuse and recycling
Grounds maintenance
Snow removal
Lighting maintenance
Repairs and maintenance
Irrigation
Street sweeping
Pest control
704,809
19
20
21
22
23
24
25
26
27
5,000
38,508
179,000
57,750
12,100
56,000
23,760
3,000
4,452
TOTAL GROUNDS AND LANDSCAPING
2
379,570
58
SECURITY:
Security salaries, taxes and benefits
Gatehouse
Gate maintenance
Security
Home monitors
NOTE
REFERENCE
ANNUAL
BUDGET
28
29
30
31
32
$ 206,750
6,200
3,000
1,000
57,800
TOTAL SECURITY
274,750
CLUBHOUSE:
Utilities
Telephones
Cable
Elevator
Indoor plants
Maintenance wages, taxes and benefits
Repairs and supplies
Trash removal
Real estate taxes
33
34
35
36
37
38
39
40
41
106,761
16,850
400
2,360
4,800
114,001
47,250
1,550
65,000
TOTAL CLUBHOUSE
358,972
POOL:
Management
Repairs
Maintenance and supplies
Gas/electric
42
43
44
45
102,000
14,000
5,000
4,000
TOTAL POOL
125,000
TRANSPORTATION:
Auto expense
Auto lease
Bus driver wages and taxes
Bus repairs and maintenance
Bus lease
Bus operations
46
47
48
49
50
51
15,000
16,330
40,599
3,600
18,000
100
TOTAL TRANSPORTATION
93,629
CAPITAL EXPENDITURES
52
10,000
CAPITAL REPLACEMENT RESERVES
53
267,897
3
$2,214,677
59
ASSUMPTIONS:
•
No construction or material defects will exist after completion of the common and limited
common areas and structures;
•
The quantities of common and limited common areas contained in the operating budget
are accurate;
•
Proper maintenance of the common and limited common areas and structures will take
place in the future;
•
The forecast reflects the Sponsor's judgment as of November 26, 1997 the date of this forecast, of the
expected course of action given 1997 dollars for the fiscal year based upon full occupancy. The
forecasted budget amounts are those expected to be incurred in the normal operations of the general
and limited common elements. It does not include expenses incurred for individual units. The
assumptions disclosed herein are those that the sponsor believes are significant to the forecast.
Further, even if full occupancy levels were attained and expenses remained at 1997 dollars, there will
frequently do not occur as expected and those differences may be material.
4
60
REVENUES:
Note 1. Whittingham Homeowners' Association Maintenance
This revenue account is calculated based on unit square footage as follows: ;
Townhouses
Single family
Manors
213 units 1794 sq. ft. $213.06 per unit/per month
Note 2. Greenbriar at Whittingham Community Association Maintenance
Each unit owner of Greenbriar at Whittingham is assessed a monthly fee to cover operating
expenses of the recreational facilities maintained by the Whittingham Homeowners'
Association. This revenue account is calculated at $82.49 per unit per month based on 1200
units.
Note 3. Township snow removal reimbursement
The Association is to be partially reimbursed for snow removal from Monroe Township and
100% reimbursed for recycling.
EXPENSES:
Note 4. Insurance
liability. The expense also includes $10,000 as a self insured deductible.
Note 5. Professional Fees
This is an estimate per Association's attorney to provide legal counsel and to bring collection
actions for delinquent accounts.
Note 6. Management
This cost is based on $2,575 per month to provide financial management and consulting to
the Association and is based on the current contract with Wentworth Property Management
Company.
Note 7. Salaries. Taxes and Benefits
These estimates are based on five full time and three part time management employees.
Payroll taxes are computed at 11% of salaries. Benefits are estimated on current billings for
full time employees.
Note 8. Uniforms
Uniform expense is calculated at $550 per month plus purchases of $1,000 plus tax.
Note 9. Payroll Service Expense
Cost based on contract with payroll service bureau to provide payroll services.
5
61
Note 10.
Nursing Services
Amount based on a contract with St. Peters Medical Center to provide nursing services.
Note 11.
Audit Fee
An annual independent audit of the Association is required by the Association documents.
Fee based on quote from current auditing firm.
Note 12.
Office Supplies
Estimated expense for supplies, letterhead, postage, and paper.
Note 13.
Copier
Estimated cost of leasing a copier and service contract at $845 per month.
Note 14.
Licenses/Fees/Permits
These expenses consist of various operating licenses, fees and permits required by various
agencies and authorities. The amounts are estimated based on prior years expenses.
Note 15.
Bank Service Charges
Represents various bank charges on Association's bank accounts. Amount is estimated
based on prior years expenses.
Note 16.
CAI Membership Dues
Amount based on CAI schedule of membership dues.
Note 17.
Federal Income Tax
The Association is required to pay federal income tax on non-membership income which
Note 18.
Engineering
Estimated cost to update Association's Capital Reserve Study.
Note 19.
Painting
Estimated cost of painting doors for 100 Whittingham Homeowner units at $50 each.
Note 20.
This expense is calculated based on a $7.77 per unit per month charge from local carters.
Note 21.
Grounds Maintenance
Landscape maintenance is provided through a contract with Landscape Maintenance
Services Inc.
Note 22.
Snow Removal
Estimated cost based on prior years expenses.
Note 23.
Lighting Maintenance
Maintenance on lights poles and fixtures owed by Whittingham Homeowners Association
based on prior year costs.
6
62
GROUNDS AND LANDSCAPING: (Continued)
Note 24.
Repairs and Maintenance
These items consist of fixed expenses relating to the common area recreation facilities
excluding the pool and variable expenses relating to Whittingham units for siding, shingles,
drainage and landscape items. Amounts relating to these items are based on prior years
expenses.
Note 25.
Irrigation
Irrigation consists of equipment maintenance, well and electric to operate the pump. The
amounts are based on a maintenance contract and on actual costs incurred in prior years.
Note 26.
Street Sweeping
Estimated cost for one sweeping per year based on prior year expenses.
Note 27.
Pest Control
Estimated cost of treatment based on 1998/99 contract.
SECURITY:
Note 28.
Security Salaries. Taxes and Benefits
These estimates are based on six full time and five part time employees. Payroll taxes are
computed at 11% of salaries. Benefits are estimated on current billings for full time
employees.
Note 29.
Gatehouse
Maintenance and utilities based on prior years.
Note 30.
Gate Maintenance
Cost of replacing gate arms based on prior years.
Note 31.
Security
Estimated miscellaneous supplies for security.
Note 32.
Home Monitors
Cost of home monitoring based on a contract for 413 Whittingham homes is $11.00 per unit
per month plus tax.
CLUBHOUSE:
Note 33.
Utilities
Utilities consist of electric, gas, water and sewer based on prior years.
Note 34.
Telephone
Coin phone and telephones located in the clubhouse and gatehouse.
Note 35.
Cable
Cable television service is available in the clubhouse. The cost is at a rate set by the local
cable supplier.
7
63
CLUBHOUSE: (Continued)
Note 36.
Elevator
Elevator maintenance is provided through a service contract with Cesco, Inc.
Note 37.
Indoor Plants
Maintenance of indoor plants is estimate at $400 per month based on past experience.
Note 38.
Maintenance Wages, Taxes and Benefits
These estimates are based on three full time and three part time employees. Payroll taxes
are computed at 11% of salaries. Benefits are estimated on current billings for full time
employees.
Note 39.
Repairs and Supplies
These expenses are for items not covered elsewhere and are calculated based on
experienced costs.
Note 40.
Trash Removal
Expense is calculated at $128.76 per month based on contract with local carter.
Note 41.
Real Estate Taxes
This tax is based on the current tax rate per $100 in assessed value as established by the
Monroe Township tax assessor. The land and building assessed value is $2,633,000.
POOL:
Note 42.
Management
The Association has an indoor and outdoor pool. The management of the pools are done
under a contract with Candlewood Pool Management.
Note 43.
Repairs
These costs are for general repairs including concrete work, heaters, gaskets and filters and
are based on past expenditure costs.
Note 44.
Maintenance and Supplies
These expenses are for items not covered by the pool contract and are calculated based on
past experienced costs.
Note 45.
Gas/Electric
These expenses are calculated based on past experienced costs.
TRANSPORTATION:
Note 46.
Auto Expenses
These expenses are for fuel, repairs and maintenance of the Association's vehicles.
Note 47.
Auto Leases
The Association has three vehicle leases. The amount reflects the current lease obligations
under these leases.
8
64
TRANSPORTATION: (Continued)
Note 48.
Bus Driver Wages and Taxes
These estimates are based on one full time employee and one backup driver. Payroll taxes
are computed at 11% of salaries. Benefits are estimated on current billings for the full time
employee.
Note 49.
Bus Repairs and Maintenance
Estimated operating costs based on prior years.
Note 50.
Bus Lease
The Association is financing a bus under a lease purchase. The monthly payments of
principal and interest are $1,500.00. Final payment is due April 1, 2001.
Note 51.
Bus Operations
The expense consists of motor vehicle fees to operate the bus.
CAPITAL RESERVES:
Note 52.
Capital Expenditures
Estimated cost of acquiring new capital items for Association use.
Note 53.
An independent engineering report was prepared by Crest Engineering Inc. through a
review of the site and architectural plans in August 1995. The quantities and cost estimates
included in this budget were directly from this report. The schedule of capital replacement
reserves are detailed in an exhibit to this report. (Pages 10 - 12)
The budgeted amount includes an increase for newly acquired items since August 1995
which are not included in the reserve schedule.
9
65
AUGUST 1995
Capital Item
RECREATION:
Pavement
Concrete Walks/Patios
Lighting
High level
Standard
Structures
Pool-Outdoor
Liner
Equipment
Deck-Concrete
Deck-Wood
Wood Awning
Building Roof
Furniture
Fence
Tennis Courts
Recolor
Resurface
Fence
Fence
Lights
Shuffleboard Courts
Whittingham Drive
Pavement
Concrete
Guardhouse
Security Gate
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
11
23
$ 124,000
28,300
$ 8,267
943
21
21
23
35,200
42,900
40,000
1,408
1,716
1,333
13
8
23
23
23
13
8
23
25,000
8,000
28,600
12,600
20,160
7,200
35,000
49,880
1,250
533
953
420
672
360
2,333
1,663
8
18
23
18
18
16,000
52,500
17,250
17,250
26,400
17,500
2,285
3,500
690
690
1,056
700
14
23
13
3
192,500
17,500
16,000
32,000
12,833
583
800
3,200
861,740
48,188
18
160,000
6,400
8
13
13
23
18
13
37,200
72,000
4,500
10,000
9,100
47,300
2,480
3,600
225
417
364
2,365
13
13
13
13
13
13
13
2,600
17,300
17,400
7,900
17,900
8,400
12,000
130
865
870
395
895
420
600
SUBTOTAL
BUILDING INTERIOR:
HVAC
Floor Covering
Carpet
Tile
Ceramic Tile
Hardwood
Miscellaneous
Wall Covering
Furniture - 1st Floor
Medical Area
Ballroom
Partition
Great Room
Lobby
Tap Room
Kitchen
Annual
Reserve
Required
10
66
AUGUST 1995
Capital Item
Estimated
Remaining Useful
Lives (Years)
BUILDING INTERIOR: (Continued)
Rest rooms
Locker Rooms
Sauna/Steam
Pool-Indoor
Liner
Equipment
Exercise Room
Furniture - 2nd Floor
Mens Card
Womens Card
Board Room
Billiard Room
Offices
Hall
Rest rooms
Furniture - Basement
Ceramic & Crafts
Billiards
Rest rooms
Misc, Furniture
Card Tables
Chairs
64" Tables
Current
Replacement
Value
Annual
Reserve
Required
13
19
13
13
18
8
13
4,800
8,400
12,600
$ 4,800
15,800
11,500
10,500
240
420
630
$ 240
632
767
525
13
13
13
13
13
13
8
4,200
2,600
5,200
2,600
7,900
1,600
1,900
210
130
260
130
395
80
127
13
13
8
6,800
4,200
1,900
340
210
127
9
9
14
3,600
50,000
6,000
240
3,333
300
13
3
23
51,750
10,800
32,700
2,588
1,080
1,090
95,250
4,758
17
22
22
22
645,000
54,000
516,000
36,000
25,800
1,800
17,200
1,200
7
7
22
7
12
127,000
41,400
5,200
205,520
43,950
145,200
8,467
2,760
743
6,851
2,930
7,260
1,819,270
75,011
SUBTOTAL 590,500 29,362
BUILDING EXTERIOR:
Roofing - Shingles
Roofing-Flat
Vinyl Siding
SUBTOTAL
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
11
67
AUGUST 1995
Capital Item
BUILDINGS:
Roof
Chimneys
Siding
Stairways
SITE
Pavement
Driveways
Seal Coat
Walks
Privacy Fence
Street Lights
Estimated
Remaining Useful
Lives (Years)
Current
Replacement
Value
Annual
Reserve
Required
19
24
24
24
720,000
82,200
579,000
54,000
28,800
2,740
19,300
1,800
9
9
1
24
9
14
78,000
19,800
2,460
259,620
40,730
179,300
5,200
1,320
352
8,654
2,716
8,965
2,015,110
79,847
$5,381,870
$237,166
TOTAL
12
68
Exhibit 10C
Insurance Letters of Adequacy
69
70
CN2100 • Toms River, NJ • 08754-2100 • 732-349-2100• 800-596-5252 • fax 732-349-0816
Peter Boyarin
Licensed Insurance Agent
December 12, 1997
Whittingham Condominium and Homeowners Associations, Inc.
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Whittingham Condominium and Homeowners Associations, Inc. Letter of Adequacy Based on
full Occupancy of 1,613 Units
Gentlemen:
I am a licensed insurance agent providing insurance for Whittingham Condominium and Homeowners
Associations located in Jamesburg, NJ.
The insurance policies that are in force for the Whittingham Condominium and Homeowners
Associations provide the following coverage at the premiums noted:
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$50,000,000
Included
$ 1,000
$144,310
Included
General Liability.
Bodily Injury &
Property Damage
Medical Payments
$11,000,000
$5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$11,500,000
Included
$14,992
Included
71
Crime:
Employee Dishonesty
Money & Securities
$800,000
$15,000
Included
Included
Directors & Officers:
$ 10,000,000
$ 6,530
Umbrella Liability:
Included
Included
Workers Compensation:
Statutory
$8,068
Total Premiums:
$173,900
All premiums for the above coverages are part of the common charges. Should the Associations choose
to take any additional insurance, the premiums therefore, will be in addition to those estimated on the
operating budgets.
Very truly yours,
Peter Boyarin, CIC, CPCU
PB/phg
cc:
Stephanie Harmon
Regina Sapio
Wentworth Group
72
Peter Boyarin
December 12, 1997
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on Current Occupancy of 1,049 Units
Gentlemen:
I am a licensed insurance agent providing insurance for Whittingham Condominium and Homeowners
Associations located in Jamesburg, NJ.
The insurance policies that are in force for the Whittingham Condominium and Homeowners
Associations provide the following coverage at the premiums noted:
COVERAGE
INSURANCE COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$42,240,000
Included
$1,000
$144,310
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$ 11,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$ 11,500,000
Included
$ 14,992
Included
73
Crime:
Employee Dishonesty
Money & Securities
$800,000
$15,000
Included
Included
$ 10,000.000
$ 6,530
Umbrella Liability:
Included
Included
Statutory
$ 8,068
Total Premiums:
$ 173,900
All premiums for the above coverages are part of the common charges. Should the Associations choose
operating budgets.
Very truly yours,
PB/phg
cc:
Stephanie Harmon
Regina Sapio
Wentworth Group
74
GREENBRIAR AT WHITTINGHAM COMMUNITY ASSOCIATION, INC.
Exhibit 13
For the Year of Operation Ending December 31, 1998
75
76
FOR THE YEAR OF OPERATION ENDING DECEMBER 31, 1998
77
78
The Developers
Greenbriar at Whittingham Community Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Greenbriar at Whittingham
Community Association, Inc. for the year ending December 31, 1998 based on occupancy of 660 units.
Our examination was made in accordance with standards for an examination of a forecast established
by the American Institute of Certified Public Accountants and, accordingly, included such procedures as
belief, the Association's expected revenues, expenditures and replacement funding for the year ending
December 31, 1998 based on 660 units. It is not intended to be a forecast of financial position, results
of operations or cash flows. The accompanying forecasted operating budget and this report were
prepared for the Developer, for inclusion in the Public Offering Statement of Greenbriar at Whittingham
Community Association, Inc. and should not be used for any other purpose.
125 Half Mile Road, Red Bank, New Jersey 07701-6749 • Tel (732) 747-0500 • Fax (732) 747-7700
79
NOTE
REFERENCE
REVENUES:
Golf maintenance
maintenance
Surplus carryforward
Township rebate - recycling
Interest income
ANNUAL
BUDGET
1
2
$461,618
152,640
3
4
5
879,740
19,000
7,860
2,100
$1,522,958
Management
Insurance
Audit
Legal fees
Office supplies
Postage
Bank service charge
Federal income tax
Transition - legal
Transition - engineering
6
7
8
9
10
11
12
13
14
15
$ 62,880
8,884
2,200
8,280
1,500
960
2,358
600
7,000
24,000
GROUNDS/LANDSCAPING:
Refuse/Recycling
Mowing/turf care
Mulch
Trees and shrubs
Street sweeping
Street lighting
Pond maintenance
Road repairs
Gazebo
118,662
16
17
18
10
20
21
22
23
24
61,072
269,744
1,000
2,500
1,600
26,200
500
500
500
TOTAL GROUNDS/LANDSCAPING
2
363,616
NOTE
REFERENCE
RESERVES
GOLF MAINTENANCE
WHITTINGHAM HOMEOWNERS’
ASSOCIATION MAINTENANCE
25
2
3
ANNUAL
BUDGET
$
8,300
152,640
879,740
$1,522,958
1998 MAINTENANCE FEE
Greenbriar at Whittingham Community Association
Greenbriar Golf Course Association
$ 58.73
115.27
20.00
$194.00
3
81
ASSUMPTIONS:
•
•
are accurate;
•
•
The forecast reflects the Sponsor's judgment as of November 26, 1997, the date of this
forecast, of the expected course of action given 1997 dollars for the fiscal year based upon
occupancy of 660 units. The forecasted budget amounts are those expected to be incurred in
the normal operations of the general and limited common elements. It does not include
expenses incurred for individual units. The assumptions disclosed herein are those that the
sponsor believes are significant to the forecast. Further, even if full occupancy levels were
attained and expenses remained at 1997 dollars, there will usually be differences between the
forecasted and actual results, because events and circumstances frequently do not occur as
expected and those differences may be material.
4
82
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated at $59.66 per unit per month based on of 660 units
closed or closing through December 31,1998.
Note 2.
Golf Course Assessments
Unit owners are assessed an annual golf course fee of $240 per year. This amount is
collected and paid over to the Greenbriar Golf Course Association. Accordingly, a line item
expense is reflected to show this transaction. Golf course assessments are based on an
average of 636 closed units for 1998.
Note 3.
Whittingham Homeowners' Association Maintenance
Each unit owner is assessed a monthly fee to cover operating expenses of the recreational
facilities maintained by the Whittingham Homeowners' Association. Assessments for 1998
are $115.27 per unit per month. This amount is collected and paid over to the Whittingham
Homeowners' Association. Accordingly a line item expense is reflected to who this
transaction. These assessments are based on an average of 636 closed units for 1998.
Note 4.
Surplus Carry forward
Application of prior year's surplus to fund anticipated transition expenses.
Note 5.
Township Rebate
Amounts to be received from township calculated at $1.00 per unit per month.
EXPENSES:
Note 6.
Management
This cost is based on a rate of $8.00 per unit per month to provide financial and
administrative management to the Association and is based on the current contract with
Wentworth Property Management Company.
Note 7.
Insurance
liability.
Note 8.
Audit Fee
Fee based on audit contract.
Note 9.
Legal
Costs to provide legal counsel and to bring collection actions for delinquent accounts. This
amount does not included attendance at meetings. Based on prior year costs.
5
83
Note 10.
Office Supplies
Estimated expense for supplies, letterhead, and paper based on a rate of $125.00 per
month.
Note 11.
Postage
Expense based on six mailings per year at an estimated cost of $80.00 per mailing.
Note 12.
Bank Service Charges
Estimated bank fees charged on Association accounts.
Note 13.
Federal Income Tax
The Association is required to pay Federal income tax on non-membership income which
Note 14.
Transition - Legal
Estimated legal costs for phased transition from developer to unit owner control.
Note 15.
Transition - Engineering
Estimated quote from engineer to provide data for phased transition from developer to unit
owner control.
Note 16.
These expenses estimated based on a $7.77 per unit per month charged by local carters.
Note 17.
Mowing/Turf Care
Estimated at $41.00 per unit per month plus $1,215 per month for perimeter area and tax.
Note 18.
Mulch
Estimated cost to mulch based on 1997 budget.
Note 19.
Trees and Shrubs
Estimated cost of tree and shrub replacement for 1998.
Note 20.
Street Sweeping
Estimated cost of sweeping streets.
Note 21.
Street Lighting
Estimated cost of lighting calculated at one light/three homes at $10 per month.
Note 22.
Pond Maintenance
Estimated cost of maintaining ponds.
6
84
Note 23.
Road Repairs
Estimated cost of minor road maintenance.
Note 24.
Gazebo
Estimated repairs and maintenance of gazebo
CAPITAL RESERVES:
Note 25.
The Association documents call for the establishment and accumulating of separate funds
for the eventual replacement of certain common elements. The funds should be budgeted,
collected and set aside in a separate Association account. Each year during the budget
process, the Association's board members should review the replacement cost and useful
life for reasonableness in determining the proper amount of funds to be set aside in that
particular year.
An independent engineering report was prepared by Flannery, Webb & Hansen, P.A.
Through a review of the site and architectural plans in April 1996. The quantities and cost
estimates included in this budget were directly from this report. The schedule of capital
replacement reserves are detailed in an exhibit to this report (Page 8).
7
85
Capital Reserve Study
Greenbriar at Whittingham
April, 1996
Page 7 of 13
Replacement Reserve Schedule
Effective as of January 1, 1996
Existing Reserve Amount
$0.00
Item
Yr. Installed
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
52975
8200
8200
8200
8200
8200
8200
8200
8200
8200
1528
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
Unit Cost
Current Rep.
Value
Site
1 1/2" Asphalt Roadway Surface
Item
1990
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
20
20
20
20
20
20
20
20
20
20
20
Percentage of Current Funded
Total Value
Amount
20
21
22
23
24
25
28
27
28
29
30
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
Notes
$175,347
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$5,058
Des. No.
Site
Estimated Contribution:
41.29%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
1.19%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
100.00%
$0
Year
No. of Units
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
278
378
478
578
678
778
878
978
1078
1178
1200
$8.787
$1,292
$1,234
$1,180
$1,131
$1,008
$1,044
$1,005
$969
$936
$169
Monthly
Contribution
Per Unit
$1.31
$1.38
$1.44
$1.52
$1.59
$1.67
$1.76
$1.84
$1.94
$2.03
$2.13
$8,767
$1,292
$1,234
$1,180
$1,131
$1,088
$1,044
$1,005
$969
$936
$169
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Annual
Reserve
Contribution
$4,370.16
$8,239.27
$8,284.36
$10,518.37
$12,955.06
$15.609.13
$18,406.21
$21,632.99
$25,037.20
$28,727.74
$30,727.47
-886
Exhibit 13 A
For the First Full Year of Operations Based on Full
Occupancy of 1,200 Units and 1997 Dollars
87
88
BASED ON FULL OCCUPANCY OF 1,200 UNITS AND 1997 DOLLARS
89
90
The Developer
We have examined the accompanying Forecasted Operating Budget of Greenbriar at Whittingham
Community Association, Inc. for the first full year of operations based on full occupancy of 1,200 units.
Our examination was made in accordance with standards for an examination of a forecast established
by the American Institute of Certified Public Accountants and. accordingly, included such procedures as
belief, the Association's expected revenues, expenditures and replacement funding for the first full year
of operations based on full occupancy. It is not intended to be a forecast of financial position, results of
operations or cash flows. The accompanying forecasted operating budget and this report were
prepared for the Developer, for inclusion in the Public Offering Statement of Greenbriar at Whittingham
Community Association, Inc. and should not be used for any other purpose.
125 Half Mile Road. Red Bank. New Jersey 07701-6749 • Tel. (732) 747-0500 • Fax (732) 747-7700
91
NOTE
REFERENCE
REVENUES:
Golf maintenance
maintenance
Township rebate - recycling
Interest income
ANNUAL
BUDGET
1
2
$ 804,240
320,400
3
4
5
1,187,856
14,400
4,696
$2,331,592
Management
Insurance
Audit
Legal fees
Office supplies
Postage
Bank service charge
Federal income taxes
6
7
8
9
10
10
11
12
$ 100,800
22,200
3,500
10,000
4,840
3,000
4,320
1,500
Refuse/Recycling
Mowing
Mulch
Trees and shrubs
Street sweeping
Street lighting
Road repairs
Pond maintenance
Gazebo
150,160
13
14
15
16
17
18
19
20
21
111,888
469,368
2,000
5,000
3,200
48,000
1,000
1,000
1,000
2
642,456
NOTE
REFERENCE
RESERVES
23
GOLF MAINTENANCE
2
WHITTINGHAM HOMEOWNERS’ ASSOCIATION
MAINTENANCE
3
$
30,720
320,400
$2,331,592
1,187,856
MAINTENANCE FEE
Greenbriar at Whittingham Community Association
Greenbriar Golf Course Association
$ 55.85
22.25
82.49
$160 59
3
93
ASSUMPTIONS:
•
•
are accurate;
•
•
The forecast reflects the Sponsor's judgment as of November 26,1997, the date of this forecast,
of the expected course of action given 1997 dollars for the fiscal year based upon full
occupancy. The forecasted budget amounts are those expected to be incurred in the normal
operations of the general and limited common elements. It does not include expenses incurred
for individual units. The assumptions disclosed herein are those that the sponsor believes are
significant to the forecast. Further, even if full occupancy levels were attained and expenses
remained at 1997 dollars, there will usually be differences between the forecasted and actual
results, because events and circumstances frequently do not occur as expected and those
differences may be material.
4
94
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated on the basis of $55.85 per unit per month.
Note 2.
Golf Course Assessments
Unit owners are assessed an annual golf course fee of $267.00 per year. This amount is
collected and paid over to the Greenbriar Golf Course Association. Accordingly a line item
expense is reflected to show this transaction.
Note 3.
Whittingham Homeowners' Association Maintenance
Each unit owner is assessed a monthly fee to cover operating expenses of the recreational
facilities maintained by the Whittingham Homeowners' Association. Assessments at full
occupancy estimated at $82.49 per unit per month. This amount is collected and paid over to
the Whittingham Homeowners' Association. Accordingly a line item expense is reflected to
show this transaction.
Note 4.
Township Rebate - Recycling
Amounts to be received from township calculated at $1.00 per unit per month.
Note 5.
Interest Income
Estimated interest income to be earned on invested funds.
EXPENSES:
Note 6.
Management
This cost is $7.00 per unit to provide financial and administrative management to the
Association and is based on an estimate provided by Wentworth Property Management
Company.
Note 7.
Insurance
liability.
Note 8.
Audit Fee
Note 9.
Legal
This is an estimate per Association's attorney to provide legal counsel and to bring collection
actions for delinquent accounts. This amount does not included attendance at meetings.
This is an estimated expense for supplies, letterhead, postage, and paper.
5
95
Note 11. Bank Service Charges
This expense is an estimate for bank fees charged on Association accounts.
The Association is required to pay Federal Income Tax on non-membership income which
Note 13. Refuse and Recycling
This expenses calculated based on a $7.77 per unit per month charge from local carters.
Note 14. Mowing
This expense is to cover the mowing of the Association and is based on $41 per home per
month plus tax. Service includes turf care.
Note 15. Mulch
Estimated cost to mulch.
Note 16. Trees and Shrubs
Estimated cost of tree and shrub replacement.
Note 17. Street Sweeping
Estimated cost of sweeping streets.
Note 18. Street Lighting
Estimated cost of lighting calculated at one light/three homes at $10 per month.
Note 19. Road Repairs
Estimated cost of maintaining streets.
Note 20. Pond Maintenance
Estimated cost to maintain pond.
Note 21. Gazebo
Estimated repairs and maintenance for gazebo.
Note 22. Snow Removal
Cost of snow removal to be included in amounts paid to Whittingham Homeowners'
Association.
6
96
CAPITAL RESERVES:
Note 23. Capital Reserve Replacement Funding
The Association documents call for the establishment and accumulating of separate funds for
the eventual replacement of certain common elements. The finds should be budgeted,
collected and set aside in a separate Association account. Each year during the budget
process, the Association's board members should review the replacement cost and useful life
for reasonableness in determining the proper amount of funds to be set aside in that
particular year.
An independent engineering report was prepared by Flannery, Webb & Hansen, P.A. through
a review of the site and architectural plans in April 1996. The quantities derived directly from
this report. The schedule of capital replacement reserves are detailed in an exhibit to this
report (Page 8).
7
97
Capital Reserve Study
April, 1996
Page 7 of 13
Replacement Reserve Schedule
Effective as of January 1, 1996
Existing Reserve Amount
$0.00
Item
Yr. Installed
Useful Life
Est. Remaining
Useful Life
Estimated
Quantity
Unit
52975
8200
8200
8200
8200
8200
8200
8200
8200
8200
1528
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
SY
Unit Cost
Current Rep.
Value
Site
Item
1990
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
20
20
20
20
20
20
20
20
20
20
20
Percentage of Current Funded
Total Value
Amount
20
21
22
23
24
25
28
27
28
29
30
Annual Reserve
Requirement
Amount Funded
@ E.O.Y.
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
$3.31
Notes
$175,347
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$27,142
$5,058
Des. No.
Site
41.29%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
6.39%
1.19%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
100.00%
$0
Year
No. of Units
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
278
378
478
578
678
778
878
978
1078
1178
1200
$8.787
$1,292
$1,234
$1,180
$1,131
$1,008
$1,044
$1,005
$969
$936
$169
Monthly
Contribution
Per Unit
$1.31
$1.38
$1.44
$1.52
$1.59
$1.67
$1.76
$1.84
$1.94
$2.03
$2.13
$8,767
$1,292
$1,234
$1,180
$1,131
$1,088
$1,044
$1,005
$969
$936
$169
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Annual
Reserve
Contribution
$4,370.16
$8,239.27
$8,284.36
$10,518.37
$12,955.06
$15.609.13
$18,406.21
$21,632.99
$25,037.20
$28,727.74
$30,727.47
-898
Exhibit 13B
99
100
Peter Boyarin
December 12,1997
100 Whittingham Dr.
Jamesburg,NJ 08831
Re:
Letter of Adequacy Based on Current Occupancy of 660 Units
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar at Whittingham Community
Association located in Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar at Whittingham Community Association
provide the following coverage at the premiums noted:
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property:
Contents
Deductible
$ 30,000
$ 1,000
$ 7389
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$1,000,000
$5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$ 1,000,000
Included
Included
Included
101
Crime:
Employee Dishonesty
Money & Securities
$470,000
$ 15,000
Included
Included
$ 1,000,000
$ 900
Statutory
$ 595
Total Premiums:
$ 8,884
All premiums for the above coverages are part of the common charges. Should the Association choose
operating budgets.
Very truly yours,
Peter Boyarin, C1C, CPCU
PB/phg
cc:
Regina Sapio
Wentworth Group
102
Peter Boyarin
December 12,1997
100 Whittingham Dr.
Jamesburg, NJ 08831
Re:
Letter of Adequacy Based on Full Occupancy of 1,200 Units
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar at Whittingham Community Association
located in Jamesburg, NJ.
The insurance policies that are Id force for the Greenbriar at Whittingham Community Association provide the
following coverage at the premiums noted:
INSURANCE COVERAGE
COVERAGE
LIMITS
PREMIUMS
Property.
Contents
Deductible
$30,000
$ 1,000
$20,705
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$ 1,000,000
$5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$1,000,000
Included
Included
Included
103
Crime:
Employee Dishonesty
Money & Securities
$470,000
$15,000
Included
Included
$ 1,000,000
$ 900
Statutory
$ 595
Total Premiums: $22,200
All premiums for the above coverages are part of the common charges. Should the Association choose to take any
additional insurance, the premiums therefore, will be in addition to those estimated on the operating budgets.
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
104
Exhibit 15
Purchase Agreement with attached Rider
105
106
NOTICE TO PURCHASER: YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT BY SENDING OR DELIVERING
WRITTEN NOTICE OF CANCELLAT1ONTO THE SELLER BY MIDNIGHT OF THE SEVENTH (7TH) CALENDAR DAY
FOLLOWING THE DATE ON WHICH SUCH AGREEMENT WAS EXECUTED. DURING THIS PERIOD YOU MAY
CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND CANCEL THIS AGREEMENT. SEE SECTION ON
ATTORNEY REVIEW FOR DETAILS. SUCH CANCELLATION IS WITHOUT PENALTY, AND ANY EARNEST MONIES
PAID BY YOU SHALL BE PROMPTLY REFUNDED IN THEIR ENTIRETY. THIS IS A LEGALLY BINDING AGREEMENT
THAT WILL BECOME FINAL BY MIDNIGHT OF THE SEVENTH (7TH) CALENDAR DAY FOLLOWING THE DATE ON
WHICH SUCH AGREEMENT WAS EXECUTED. PURCHASER ACKNOWLEDGES THAT PURCHASER HAS RECEIVED
A COPY OF THE PUBLIC OFFERING STATEMENT.
AGREEMENT OF SALE
U.S. Home Corporation, 800 West Main Street, Freehold, New Jersey 07728 ("Seller") agrees to sell the property listed
below upon the following terms and conditions:
DATE OF AGREEMENT
CLOSING DATE: On of about
as set out in Paragraph 10
PURCHASER
PROPERTY: Greenbriar at Whittingham
Model:
Lot:___________________________ Block.:
Telephone Number:
Work: _____________ Home: _________
(“Purchaser”)
PURCHASE PRICE:
Base Price
Extras
Section: ______on map entitled "Final Subdivision Plan"
$ __________
$ __________
$
$ __________
Purchase Price
(“Purchase Price”)
TERMS:
By deposit, receipt of which is
acknowledged (including any
non-binding reservation
deposit) to be held in escrow
as set out in Paragraph 4
(“Deposit Money”)
$
Additional cash or check to be
paid on or before the
day of__________________,
19
$
Proceeds from purchase
money mortgage
$
Balance at closing in cash,
certified check or cashier's
check
$
Purchase Price
$
prepared by and
filed in the Middlesex County
Clerk's Office on
as Map
No.
File No.
Municipal
Lot:
(“Property”)
Block:
Mortgage:
Amount
$________________________
Interest Rate
________________________
or prevailing rate of interest
Number of Years Payout:
Points paid by Purchaser
Application Fee:
INSULATION:
Exterior Walls
Type
Thickness
R-Value
Ceilings:
Type
Thickness
R-Value
CLOSING COSTS paid by purchaser
to Seller:
IN WITNESS WHEREOF, the undersigned have caused this document to be signed and scaled, or caused its corporate seal to be affixed to it, signed by its
proper officers, the day and year first above written.
By: U.S. Home Corporation,
a Delaware Corporation
By:______________________________________________
By:_____________________________________________.
SALES CONSULTANT
Date:
WITNESS OF PURCHASER:
PURCHASER
Date
PURCHASER
ATTEST:
12/97 This Agreement of Sale is subject to Terms And Conditions on previous and other pages.
107
TABLE OF CONTENTS
Subject
Paragraph
Number
Property...............................................................................1.
Property...............................................................................2.
Purchase Price.....................................................................3.
Deposit Money....................................................................4.
Mortgage ............................................................................5.
Charges at Closing..............................................................6.
Attorney Review.................................................................7.
Insulation............................................................................8.
Representation by Counsd..................................................9.
Closing of Title..................................................................10.
Notices...............................................................................11.
Assignment....................................................................... 12
Adjustments.......................................................................13.
Assessments......................................................................14.
Fire and Other Casualty.....................................................15.
Subordination....................................................................16.
Default By Seller...............................................................17.
Default By Purchaser........................................................ 18.
Subject
Paragraph
Number
Purchaser's Representations............................................... 19.
Landscaping........................................................................20.
No Cloud on Title; Liens....................................................21.
Homeowner's Warranty......................................................22.
Delay in Completion...........................................................23.
Possession...........................................................................24.
Receipt of Documents.........................................................25.
Construction and
Changes...............................................................................26.
License................................................................................27.
Color Selections, Extras
and Options.........................................................................28.
Pre-Closing Inspection........................................................29.
General Provisions......................................................... ....30.
Entire Agreement................................................................31.
Contingency........................................................................32.
WITNESS THAT:
1. PROPERTY. Seller shall sell and Purchaser shall buy the Property set forth on the cover sheet pursuant to this agreement of sale ("Agreement"). As part
of the Property there is or will be erected a new dwelling, substantially similar to the model described on the cover sheet of this Agreement Purchaser will also become
and be accorded all the rights and obligations as a member of the Whittingham Homeowner's Association, Inc. the Greenbriar at Whittingham Community Association
and the Greenbriar Golf Course Association, Inc ('Associations') as set forth in the Declaration of Covenants and Restrictions ('Declaration') for Greenbriar at
Whittingham (' Development') and the By-Laws of the Associations.
2. TITLE. At closing of tide Seller shall deliver a Bargain and Sale Deed with Covenants Against Grantor's Acts conveying the Property, along with a
seller's affidavit of title and a joint venture resolution to sell. Title shall be good and marketable such as will be insurable it regular rates by Stewart Title Guaranty
Company, free and clear of all liens, and free of encumbrances, except as follows, provided the following exceptions do not render title uninsurable at regular rates by
Stewart Title Guaranty Company or prevent the use of the Property as a single family dwelling:
2.1 All covenants, agreements, easements, declarations, reservations and consents of record:
2.2 Restrictions or easements, if any, required to be placed or placed upon the Property by any federal, state or municipal agency or government subdivision
or by any predecessor in tide to the Seller, including, without limitation, zoning ordinances and any other act or ordinance affecting the use of, and improvements to, the
Property,
2.3 All rights of utility and cable communications companies to place and maintain pipes, poles, cables, wires and other appurtenances over, on or under the
Property,
2.4 Easements with respect to public or private sewer, storm sewer or surface water courses,
2.5 Any other restrictions, easements, conditions, agreements or provisions affecting the tide or use of the Property, or affecting improvements to the
Property This includes any instruments, restrictions, easements, conditions, agreements or provisions or other matters existing which (a) do not apply to the Property
although constituting a technical exception to its title,or, (b) do not apply to the Property but also apply generally to the parcels and tracts designated for residential
development belonging to the Seller or Seller's predecessor in tide and do not materially and adversely affect Purchaser's ability to use the Property as a single family
residential dwelling,
2.6 Rights, interests and obligations as a member of the Association in the Common Property of the Association contained in the provisions of the
Declaration of Covenants and Restrictions, die Certificate of Incorporation and the By- Laws of the Association,
2.7 Such state of facts as an accurate survey may disclose,
2.8 Standard exceptions in a tide policy;
2.9 Any state of facts an inspection of the Property might disclose; and
2.10 Any liability of the Property for any additional assessment for real property taxes
3. PURCHASE PRICE. Purchaser shall pay and satisfy the Purchase Price as stated in the cover sheet of this Agreement
4. DEPOSIT MONEY. All deposit monies or down payment ("Deposit Money") shall be held in escrow m an escrow account established by Stewart Tide
Guaranty Company at First Fidelity Bank, N A ,72 W. Main Street. Freehold, New Jersey 07728 entitled US Home Escrow Account, Account No 3000399281 Seller
may, at Seller's option,direct Stewart Tide Guaranty Company to place the Deposit Money in cither an interest or non-interest bearing escrow account. If placed in an
interest bearing account, interest shall accrue to die benefit of Seller. After the expiration of the seven (7) day rescission period as set forth above and in Paragraph 7.
the Deposit Money may be released to Seller since Seller has placed a bond or other guarantee acceptable to the Division of Codes and Standards. Bureau of
Homeowner Protection Otherwise, the Deposit Money shall be held in escrow as provided until closing of title or termination of this Agreement
5. MORTGAGE. This Agreement is contingent upon Purchaser obtaining a mortgage commitment according to the terms, or better terms, as set forth in the
cover sheet of this Agreement. Purchaser has the option of obtaining his own financing or authorizing Seller to obtain such6nancing
5.1 FINANCING ARRANGED BY SELLER. If Purchaser desires to arrange mortgage financing. Purchaser hereby appoints Seller as Purchaser's agent to
arrange for a mortgage on the terms, or belter terms, as set forth on the cover of this Agreement Purchaser shall fully cooperate with Seller in order to obtain such a
mortgage Purchaser shall accept such a mortgage from the lending party designated by Seller Purchaser shall complete all necessary forms for the mortgage loan within
fourteen (14) days of the date of this Agreement, shall furnish complete and truthful information on all such documents, shall use due diligence in pursuing this
mortgage application, shall comply with all requests by the Seller or lending institution, shall do everything necessary to obtain this loan and shall notify Seller
immediately of any change in Purchaser's financial condition or employment. Provided Purchaser complies with this Agreement. Seller shall pay all mortgage
application fees, processing fees and any additional items required by the lending institution with the exception of discount points, origination fees, prepaid interest
charges and escrow fees which shall be die sole cost and expense of Purchaser If Purchaser does not perform any of Purchaser's obligations as specified in this
Paragraph, or if Purchaser becomes bankrupt or insolvent or assigns assets for the benefit of Purchaser's creditors. Purchaser shall be deemed in default of this
Agreement pursuant to the provisions of Paragraph 18.
If Purchaser does not obtain a mortgage commitment through the Seller within forty-five (45) days from the date of this Agreement. Purchaser has die right
to terminate this Agreement upon written notice to Seller If the Agreement is so terminated. Purchaser's exclusive remedy shall be the return of all Deposit Money
without interest There shall be no further liability of any kind on the part of Seller, and this Agreement shall be null and void and of no further force and effect.
12/97
2 of 5
108
RIDER TO
CONTRACT FOR SALE OF REAL ESTATE
NOTIFICATION REGARDING OFF-SITE CONDITIONS
Pursuant to the “New Residential Construction Off-Site Conditions Disclosure Act," P.L. 1995, c. 253, (C.
46:3C-1 er seq.), sellers of newly constructed residential real estate are required to notify purchasers of the
availability of lists disclosing the existence and location of off-site conditions which may affect the value of the
residential real estate being sold. The lists are to be made available by the municipal clerk of the municipality
within which the residential real estate is located and in other municipalities which are within one-half mile of the
residential real estate. The address(es) and telephone numbers) of the municipalities relevant to this project and
the appropriate municipal offices where the lists are made available are listed below. Purchasers are encouraged
to exercise all due diligence in order to obtain any additional or more recent information that they believe may be
relevant to their decision to purchase the residential real estate. Purchasers are also encouraged to undertake an
independent examination of the general area within which the residential real estate is located in order to become
familiar with any and all conditions which may affect the value of the residential real estate.
The Purchaser has (5) business days from the date the Contract is executed by the Purchaser and the
Seller to send notice of cancellation of the Contract to the Seller. The notice of cancellation shall be sent by
certified mail. The cancellation will be effective upon the notice of cancellation being mailed. If the Purchaser does
not send a notice of cancellation to the Seller in the time or manner described above, the Purchaser will lose the
right to cancel the Contract as provided in this notice.
Nothing contained in this notification shall alter the Seller's disclosure obligations pursuant to the Planned
Real Estate Development Full Disclosure Act. N.J.S.A. 45:22A-21 et sea., or diminish the Purchaser's rights and
remedies pursuant to same.
MUNICIPALITY:
Monroe Township. Middlesex County
ADDRESS:
1630 Perrineville Rd., Jamesburg, NJ 08831
TELEPHONE NUMBER:
732-521-4400
Witness:
Purchaser
Date
Witness:
Purchaser
Date
112
Exhibit 19
Amendment and Supplement to The Declaration of Covenants,
Conditions and Restrictions
113
114
AMENDMENT AND SUPPLEMENT
TO THE
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
BY
A DELAWARE CORPORATION
DATED:
PREPARED BY:______________________________
WENDELL A. SMITH, ESQUIRE
RECORD AND RETURN TO:
Attention: Wendell A. Smith, Esq.
Post Office Box 5600
115
TO THE
FOR
THIS AMENDMENT AND SUPPLEMENT, made this _____ day of ______
______ , 199_ by U.S. HOME CORPORATION, a Delaware corporation,
having an address at 800 West Main Street, Freehold, New Jersey 07728
(the "Developer").
W I T N E S S E T H:
WHEREAS, the Developer is the owner of fee simple title to
certain lands and premises in Monroe Township, Middlesex County,
State of New Jersey, and other previously owned lands and premises
which have heretofore been submitted to a Declaration of Covenants,
Conditions and Restrictions for Greenbriar at Whittingham (the
"Declaration") dated December 14, 1994 and recorded December 14, 1994
in the Office of the Clerk of Middlesex County, in Deed Book 4204 at
Page 199, et seq., together with certain amendments thereto; and
WHEREAS, pursuant to Section 2.02 of the Declaration, the
Developer may further amend and supplement the Declaration to
incorporate within the Development all or a portion of the remainder
of the Property described and shown as set forth in Exhibits A & B to
the Declaration; and
NOW THEREFORE, the Developer hereby amends and supplements the
Declaration as follows:
1. The Developer hereby incorporates all those lands described
in Exhibit A-1 hereto entitled "Description of Part of Lot 41, Block
48.35, Village 3.2" into the Development, as all shown on that
certain Plan entitled "Final Plat-Major Subdivision of Greenbriar at
Whittingham, Village 1.5 & 3.1" prepared by Flannery, Webb & Hansen
P.A., 1255 Route 70, Suite 22-S, Lakewood Township, New Jersey 08701
dated June 26, 1995 attached as Exhibit B-1;
2. The Developer declares that such improvements are and shall
be held, transferred, sold, leased, conveyed, occupied and used
subject to the covenants, restrictions, conditions, easements,
charges, liens and provisions set forth in the Declaration, as now or
hereafter amended, all of which are hereby incorporated by reference
as though fully set forth herein; and
116
3. Except as expressly modified herein, all other terms and
conditions of the Declaration shall remain in full force and effect
and the provisions hereof shall be deemed controlling.
IN WITNESS WHEREOF, the Developer has caused this instrument to
be executed the day and year first above written as duly authorized
by its corporate resolution.
ATTEST:
U.S. HOME CORPORATION, A Delaware
Corporation
Paul Rempe, Secretary
Gregory A. Snyder, Division
President
STATE OF NEW JERSEY )
) SS:
COUNTY OF
)
BE IT REMEMBERED, that on this
day of
,
199__,
Paul Rempe personally came before me and this person acknowledged
under oath, to my satisfaction, that:
(a)
this person is the Secretary of the corporation named
in the attached document;
(b)
this person is the attesting witness to the signing of
this document by the proper corporate officer who is
Gregory A. Snyder, the Division President of the
corporation;
(c)
this document was signed and delivered by the
corporation as its voluntary act duly authorized by a
proper resolution of its Board of Directors;
(d)
this person knows the proper seal of the corporation
which was affixed to this document; and
(e)
this person signed this proof to attest to the truth
of these facts.
Signed and sworn to before me
on this
day of
, 199___.
A Notary Public of the State
of New Jersey
117
EXHIBIT A-1
Description - Greenbriar at Whittingham, Village 3.2
118
FLANNERY, WEBB & HANSEN, P.A.
CIVIL ENGINEERS • LAND SURVEYORS • SITE PLANNERS
LANDSCAPE ARCHITECTS • ENVIRONMENTAL CONSULTANTS
1234.011
Description of Property
Lots 7.02 & 14.04 * Block 48.40
Green briar at Whittingham - Village 3.2 (Phases A-D)
Monroe Township, Middlesex County, New Jersey
Being known and designated as Lots 7.02 and 14.04, Block 48.40 as shown on a map entitled "Lots 7.02
& 14.04, Block 48.40 Greenbriar at Whittingham - Village 3.2 (Phases A-D)" prepared by Flannery, Webb &
Hansen, P.A. dated 7/23/97 and last revised 10/2/97.
Beginning at a point along the westerly line of Jamesburg-Perrineville Road. Said point being at the intersection
formed by the division line between Lots 6 and 14.04, Block 48.40 and the westerly line produced by a 13.5'
dedication of Jamesburg-Perrineville Road, thence running:
1) South 12° 47' 45" East, 134.19' to a point along the division between Lots 7.01 and 14.04;thence
2) South 82° 07' 55" West, 430.34' along said division line to a point; thence
3) South 12° 47' 55" East, 131.23' along said division line to a point; thence
4) North 84° 38' 12" East, 434.58' along said division line to a point; thence
5) South 12° 32' 52" East, 380.79' along the division line between Lot 14.04 and Jamesburg-Perrineville
Road to a point; thence
7) North 87° 40' 26" West, 406.98' along the division line between Lot 8 and Block 14.04, Block 48.40
to a point, thence
8) South 85° 59' 00" West, 571.76' along the division line between Lots 10 and 14.04, Block 48.40 to a
point, thence
10) South 85° 59' 00" West, 172.16' along the division line between Lot 14.01 and 14.04, Block 48.40 to
a point; thence
119
FLANNERY, WEBB & HANSEN, PA.
12) Along a curve to the right in a southerly direction having a radius of 218.00’ and an arc length of
182.63' to a point; thence
14) Along a curve to the left in a southeasterly direction having a radius of 25.00' and an arc length of
15) Along a curve to the left in a westerly direction having a radius of 456.00 and an arc length of 69.95'
to a point along the division line between Lot 2, Block 48.42 and Lot 14.04, Block 48.40; thence
16) North 15° 10' 42" East, 94.62' along the division line between Lots 14.04, Block 48.40 and Lot 1.01,
Block 48.24 to a point, thence
18) North 44" 29' 00" East, 130.00' along said division line to a point; thence
19) North 03° 31' 00" West, 630.00' along said division line to a point; thence
26) South 55° 32' 23" West, 479 56' along said division line to a point; thence
28) Along a curve to the right in a northwesterly direction having a radius of 266.00' and an arc length of
92.07' along the division line between Lot 1, Block 48.32 and Lot 14.04, Block 48.40 to a point,
thence
120
29) North 36° 29' 32" West, 147.81' along said division line to a point, thence
30) North 53° 30' 28" East 92.38' along the division line between Lots 14.03 &. 14.04, Block 48.40 to a
point; thence
34) North 05° 35' 20" East, 35.46" along the division line between Lots 14.04, Block 48.40 and
Jamesburg-Half Acre Road to a point; thence
35) North 83°01' 29" East, 962.18' along the division line between Lots 11 & 14.04, Block 48.40 to a
point; thence
36) North 08° 13' 31" West, 359.04'along the division line between Lots 11 and 12 with Lot 14.04,
Block 48.40 to a point; thence
37) South 82° 15' 49" West, 877.03' along the division line between Lots 12 and 14 04, Block 48.40 to a
point; thence
38) North 05° 35' 20" East 735.30' along the division line between Lot 14.04, Block 48.40 and
40) South 81° 12' 32" East, 1,476.34' along the division line between Lots 11.01 and 11 02. Block 48
and Lot 14.04, Block 48.40 to a point; thence
41) South 08° 27' 28" West. 86.43' along the division line between Lot 1, Block 48.07 and Burnside
Street with Lot 14.04, Block 48.40 to a point; thence
42) North 82° 12' 32" West. 983.40' along the division line between Lots 13 and 14.04, Block 48 40 to a
point; thence
43) South 00° 42' 32" East. 801.24' along said division line to a point; thence
121
45) South 08° 48' 05" East, 97.16 along the division line between Lot 1, Block 48.04 and Lot 14.04,
Block 48.40 to a point, thence
46) South 15° 31' 56" East, 151.91' along the division line between Sheridan Street and Lot 33, Block
48.03 with Lot 14.04, Block 48.40 to a point; thence
47) South 06° 26' 31" East, 49.00' along the division line between Lot 1, Block 48.03 and Lot 14.04,
49) South 363 11' 22" East, 33.02' along the division line between Sherman Street and Lot 14.04, Block
48.40 to a point; thence
Block 48 40 to a point; thence
53) South 65° 28' 41" East, 57.11' along the division line between Lots 24 and 25, Block 48.02 with Lot
14.04, Block 48.40 to a point; thence
55) South 29° 13' 27" East, 54.22' along the division line between Grant Street and Lot 14.04, Block
57) South 40° 33' 31" East, 949.48' along the division line between Lots 2 and 3, Block 48.01 and Lot
122
58) South 81° 56' 29" West, 43.92' along the division line between Lot 5, Block 48.01 and Lot 14.04,
60) North 81° 56' 29" East, 523.45' along the division line between Lot 6, Block 48.01 and Lot 14.04,
Block 48.40 to a point along the westerly line of Jamesburg-Perrineville Road to the point and place
of BEGINNING.
Contains 5,178,589 S.F. or 118.884 Acres
Doc: 11234GAW011
123
EXHIBIT B-1
Final Plat of Greenbriar at Whittingham, Village 3.2
124
128
The Developers
Greenbriar Golf Course Association, Inc.
We have examined the accompanying Forecasted Operating Budget of Greenbriar Golf Course Association, Inc.
for the year of operations ending December 31, 1998 based on occupancy of 807 members. Our examination was
made in accordance with standards for an examination of a forecast established by the American Institute of
Certified Public Accountants and, accordingly, included such procedures as we considered necessary to evaluate
both the assumptions used by the Sponsor and the preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and belief, the
Association's expected revenues, expenditures and replacement funding for the year ending December 31, 1998
based on 807 members. It is not intended to be a forecast of financial position, results of operations or cash flows.
The accompanying forecasted operating budget and this report were prepared for the Developer, for inclusion in
the Public Offering Statement of Greenbriar Golf Course Association, Inc. and should not be used for any other
purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with guidelines for
presentation of forecasted information established by the American Institute of Certified Public Accountants and
the underlying assumptions provide a reasonable basis for the Sponsor's forecast, and that the operating budget
including replacement funding is adequate. However, there will usually be differences between the forecasted and
actual results, because events and circumstances frequently do not occur as expected and those differences may
be material. We have no responsibility to update this report for events and circumstances occurring after the date
of this report.
125 Half Mile Road. Red Bank. New Jersey 07701-6749 • Tel. (732) 747-0500 • Fax (732) 747-7700
131
BASED ON 807 MEMBERS AND 1997 DOLLARS
NOTE
REFERENCE
REVENUES:
Maintenance fee
Annual greens fee
Daily greens fee
Cart rental revenue
1
2
3
4
ANNUAL
BUDGET
$193,680
156,745
16,000
23,000
$389,425
Management
Insurance
Real estate taxes
Audit fee
Legal fees
Golf pro fees
Office supplies
Dues and subscriptions
Income tax
Contingency
5
6
7
8
9
10
11
12
13
14
$ 20,400
12,390
42,870
2,200
5,000
20,000
2,200
2,915
1,000
14,245
PAYROLL:
Superintendent
On-site laborer
Proshop salary
FICA
FUTA
SUI/SDI
Benefits
Workers compensation
Pager rental
123,220
15
15
15
15
15
15
15
15
16
49,150
46,480
27,900
9,450
988
4,077
8,100
6,535
130
TOTAL PAYROLL
152,810
2
132
NOTE
REFERENCE
Fuel and oil
General repairs
Miscellaneous supplies
Topdressing for greens
Grass seed
Irrigation equipment
Lawn fertilization
Chemicals - greens
Well electric
Trees and shrubs
Golf cart electric
Small equipment
17
18
19
20
20
20
21
22
23
24
25
26
ANNUAL
BUDGET
5,000
7,000
4,500
2,500
3,500
3,500
16,200
8,000
6,000
6,500
5,000
2,500
BUILDINGS:
Maintenance building
Proshop building
Maintenance supplies
70,200
27
28
29
8,200
7,200
3,000
TOTAL BUILDINGS
18,400
TOTAL CAPITAL IMPROVEMENTS
30
10,750
TOTAL RESERVE FUND
31
13,865
$389,425
3
133
GREENBRIAR GOLF COURSE ASSOCIATION, INC.
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the Association's
expected operating budget for the year assuming the following conditions:
•
No construction or material defects will exist after completion of the common and limited common
areas and structures;
•
The quantities of common and limited common areas contained in the operating budget are
accurate;
•
Proper maintenance of the common and limited common areas and structures will take place in
the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and assessments will
be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of November 26,1997, the date of this forecast, of the
expected course of action given 1997 dollars for the fiscal year based upon occupancy of 807 units. The
forecasted budget amounts are those expected to be incurred in the normal operations of the general and
limited common elements. It does not include expenses incurred for individual units. The assumptions
disclosed herein are those that the sponsor believes are significant to the forecast. Further, even if full
occupancy levels were attained and expenses remained at 1997 dollars, there will usually be differences
between the forecasted and actual results, because events and circumstances frequently do not occur as
expected and those differences may be material.
Furthermore it is anticipated that after the Developer's subsidy stops expenses will exceed revenues for a
period of approximately four years. The Board of Trustees anticipates securing financing to cover any
shortfalls. This borrowing will be repaid out of future operating income.
To meet these potential differences the Board of Trustees has the authority to increase all fees including
special assessments. However, the Board cannot authorize special assessments in excess of $100 per
member per year. Also the monthly assessment per member is $20, $20 and $25 for the years ending
December 31. 1998, 1999 and 2000 respectively. These assessments cannot be increased without a vote
of the membership.
Definition of Member - A member is a home which pays a monthly maintenance fee to the Greenbriar Golf
Course Association. Membership is mandatory for US Home buyers and elective for Union Valley home
buyers.
4
134
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated at $240 per year paid by 807 members.
Note 2.
Annual Green Fees
Annual green fees are computed an average of $576 per year based on 272 playing units. A playing
unit is defined as a home within the Whittingham Community which pays annual dues for unlimited play.
Note 3.
Daily Green Fees
Daily green fees are based on actual 1997 operations.
Note 4.
Cart Rental Revenue
Represents 20% of gross receipts from cart rentals.
EXPENSES:
Note 5.
Management
This cost is based on a flat rate of $1,700 per month to provide financial and administrative
management to the Association and is based on the current contract with Wentworth Property
Management Company.
Note 6.
Insurance
This expense is based on the current insurance coverage from Boyarin, Hourigan & Blundell to provide
replacement cost hazard insurance on the proshop and maintenance building, Directors and Officers
coverage, employee dishonesty fidelity bond, and comprehensive general liability. Also includes $1,500
for golf ball damage claims.
Note 7.
Real Estate Taxes
This tax is based on the current tax rate per $100 in assessed value as established by the Monroe
Township tax assessor. The land and building assessed value is estimated at $1,905,400.
Note 8.
Audit Fee
Note 9.
Legal
This is an estimate per Association's attorney to provide legal counsel at a rate of $175 per hour.
Note 10. Golf Pro Fees
Amount based on 1997 pro and consulting contracts.
5
135
Estimated expense for supplies, scorecards, letterhead, postage, and paper based on prior year.
Note 12. Dues and Subscriptions
Expense consists of NJSCPA and USGA dues and meeting expenses.
The Association is required to pay Federal income tax on non-membership income which consists
primarily of interest income.
Note 14. Contingency
This expense is an estimate for any unforeseen operating expenses based on 4% of operations
excluding capital improvements. The percentage rate of 4% was established by the Board of Trustees.
PAYROLL:
Note 15. Payroll, Payroll taxes and benefits
These estimates are based on salaries for one full time superintendent, two full time and one part time
laborers. Payroll taxes are computed at 11% of salaries. Benefits are estimated based on current
billings for full time employees. Workers compensation is calculated at $5.29 per $100 of salaries.
Note 16. Pager Rental
This expense is based on a contract of $10.44 per month.
Note 17. Fuel and Oil
Estimated cost of operating golf course equipment based on 1997 usage.
Note 18. General Repairs
Estimated cost of maintaining golf course equipment based on 1997 usage.
Note 19. Miscellaneous Supplies
Estimated cost of supplies for operations based on 1997 usage.
Note 20. Topdressing and grass seed
Expenses on four applications of topdressing for greens and grass seed for greens and the fairways
based on 1997 usage.
Note 21. Irrigation Equipment
Estimated cost of sprinkler head repairs and system winterization based on 1997 usage.
6
136
Note 22. Lawn Fertilization. Chemicals and Weed Control
Cost of fertilization, chemicals and crabgrass prevention based on 1997 usage.
Note 23. Well Electric
Estimated cost of operating the well based on 1997 usage.
Cost to replace trees and shrubs based on prior year amount. Also includes $1,500 for bunker sand.
Note 25. Golf Cart Electric
Cost of charging battery powered carts based on 1997 usage.
Note 26. Small Equipment
Estimate cost of small tools to maintain equipment and golf course based on 1997 usage.
BUILDINGS:
Note 27. Maintenance Building
Costs include gas, electric, telephone, water and sewer based on 1997 usage.
Note 28. Pro Shop Building.
Costs include gas, electric, telephone, water and sewer based on 1997 usage.
Note 29. Maintenance Supplies
Cost of janitorial and other supplies to maintain maintenance building and Pro Shop.
CAPITAL EXPENDITURES:
Note 30. Equipment
Cost of equipment not previously reserved which includes the following: tractor, overseeders, mowers,
sprayer, sod cutter and core harvester.
CAPITAL RESERVES:
Note 31. Capital Reserve Replacement Funding
The Association's documents call for the establishment and accumulating of separate funds for the
eventual replacement of certain common elements. The funds should be budgeted, collected and set
aside in separate Association accounts. Each year during the budget process, the Association's board
members should review the replacement cost and useful life for reasonableness in determining the
proper amount of funds to be set aside in that particular year.
7
137
FOR THE YEAR OF OPERATIONS ENDING DECEMBER 31.1998
CAPITAL RESERVES: (Continued)
An independent engineering report was prepared by Flannery, Webb & Hansen, P.A. Through a review of
the site and architectural plans in April 1997. The quantities and cost estimates included in this budget
were directly from this report. The schedule of capital replacement reserves are detailed in an exhibit to
this report (Pages 9-14).
The 1998 budget amount for capital reserves is calculated at a rate of $1.43 per unit per month plus a
small increase for new items not included in the reserve study.
8
138
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Replacement
Amount Funded
@ E.O.Y.
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
0.96%
2.23%
0.83%
1.91%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750
$714
$682
$652
$625
$600
$577
$556
$536
$300
$467
$173
$500
$750
$714
$682
$652
$625
$600
$577
$556
$536
$300
$467
$173
$500
3.19%
1.91%
7.34%
1.21%
2.87%
4.78%
2.55%
4.75%
1.91%
0.57%
0.11%
1.59%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
100.00%
$0
$23,419
Year
No. of Units
Monthly
Contribution
Per Unit
Annual
Reserve
Contribution
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
278
536
661
786
911
1036
1161
1286
1348
1348
1348
1348
1348
1348
1348
1348
1348
1348
$1.50
$1.60
$1.75
$1.91
$2.09
$2.28
$2.49
$2.72
$2.97
$3.25
$3.55
$3.88
$4.23
$4.63
$5.05
$5.52
$6.03
$6.59
$5,004.00
$10,291.20
$13,865.14
$18.012.20
$22,807.83
$28,336.54
$34,692.91
$41,982.75
$48,077.43
$52,524.59
$57,383.12
$62,691.05
$68,489.98
$74,825.30
$81,746.64
$89,308.20
$97,569.21
$106,594.37
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Tee And Golf Course Signs
Fuel Tank
Asphalt Golf Cart Path Maintenance
Well Motor
Site Maintenance Machinery
Cushman Truckster
Carry-All Golf Cart
Gang 5 Reel Mower
Sprayer
Triplex Tee Mower
Greens Mower
Sandtrap Machine
Toro Greens Mower
Backup 72" Mower (used)
Rotary Push Mowers
Weedeater
Golf Cart (used)
14
144
Photo
Exhibit 21A
For the First Full Year of Operations Based on Full
Occupancy of 1,347 Members and 1997 Dollars
145
146
BASED ON FULL OCCUPANCY OF 1,347 MEMBERS AND 1997 DOLLARS
147
148
The Developers
We have examined the accompanying Forecasted Operating Budget of Greenbriar Golf Course Association, Inc.
for the first full year of operations based on of 1.347 members. Our examination was made in accordance with
standards for an examination of a forecast established by the American Institute of Certified Public Accountants
and, accordingly, included such procedures as we considered necessary to evaluate both the assumptions used
by the Sponsor and the preparation and presentation of the forecast.
The accompanying Forecasted Operating Budget presents, to the best of the Sponsor's knowledge and belief, the
Association's expected revenues, expenditures and replacement funding for the first full year of operations based
on full occupancy (1,347 members). It is not intended to be a forecast of financial position, results of operations or
cash flows. The accompanying forecasted operating budget and this report were prepared for the Developer, for
inclusion in the Public Offering Statement of Greenbriar Golf Course Association, Inc. and should not be used for
any other purpose.
In our opinion, the accompanying Forecasted Operating Budget is presented in conformity with guidelines for
presentation of forecasted information established by the American Institute of Certified Public Accountants and
the underlying assumptions provide a reasonable basis for the Sponsor's forecast, and that the operating budget
including replacement funding is adequate. However, there will usually be differences between the forecasted and
actual results, because events and circumstances frequently do not occur as expected and those differences may
be material. We have no responsibility to update this report for events and circumstances occurring after the date
of this report.
125 Half Mile Road. Red Bank. New Jersey 07701-6749 • Tel (732) 747-0500 • Fax (732) 747-7700
149
BASED ON 1,347 MEMBERS AND 1997 DOLLARS
NOTE
REFERENCE
REVENUES:
Maintenance fees
Annual green fees
Daily green fees
1
2
3
ANNUAL
BUDGET
$359,649
134,475
8,000
$502,124
Management
Insurance
Real estate taxes
Audit fee
Legal fees
Golf pro fees
Office supplies
Dues and subscriptions
Contingency
Federal income taxes
4
5
6
7
8
9
10
11
12
-
$ 28,800
13,890
42,870
3,500
10,000
20,000
7,180
2,915
16,662
2,000
PAYROLL:
Superintendent
On-site laborer
Proshop salary
FICA
FUTA
SUI/SDI
Benefits
Workers compensation
Pager rental
147,817
13
13
13
13
13
13
13
13
14
56,200
51,480
36,900
11,060
1,157
4,771
8,100
7,648
130
TOTAL PAYROLL
177,446
2
150
NOTE
REFERENCE
Fuel and oil
General repairs
Miscellaneous supplies
Topdressing for greens
Grass seed
Irrigation equipment
Lawn fertilization
Chemicals - greens
Well electric
Trees and shrubs
Golf cart electric
Small equipment
15
15
16
17
17
18
19
19
20
21
22
23
ANNUAL
BUDGET
6,000
7,000
4,500
4,000
3,500
3,500
20,000
10,000
8,000
6,500
5,000
5,000
BUILDINGS:
Maintenance building
Pro shop
Maintenance supplies
83,000
24
25
26
8,200
7,200
5,000
TOTAL BUILDINGS
20,400
TOTAL CAPITAL IMPROVEMENTS
27
10,000
TOTAL RESERVE FUND
28
63,461
$502,124
3
151
ASSUMPTIONS:
The financial forecast presents, to the best of the Sponsor's knowledge and belief, the Association's
expected operating budget for the year assuming the following conditions:
•
No construction or material defects will exist after completion of the common and limited common
areas and structures;
•
The quantities of common and limited common areas contained in the operating budget are
accurate;
•
Proper maintenance of the common and limited common areas and structures will take place in
the future;
•
The schedule of replacement reserves will be reviewed on an annual basis and assessments will
be updated for changes in projected lives and replacement costs.
The forecast reflects the Sponsor's judgment as of November 26,1997, the date of this forecast, of the
expected course of action given 1997 dollars for the fiscal year based upon full occupancy. The
forecasted budget amounts are those expected to be incurred in the normal operations of the general and
limited common elements. The assumptions disclosed herein are those that the sponsor believes are
significant to the forecast. Further, even if full occupancy levels were attained and expenses remained at
1997 dollars, there will usually be differences between the forecasted and actual results, because events
and circumstances frequently do not occur as expected and those differences may be material.
Furthermore it is anticipated that after the Developer's subsidy stops expenses will exceed revenues for a
period of approximately four years. The Board of Trustees anticipates securing financing to cover any
shortfalls. This borrowing will be repaid out of future operating income.
To meet these potential differences the Board of Trustees has the authority to increase all fees including
special assessments. However, the Board cannot authorize special assessments in excess of $100 per
member per year. Also the monthly assessments per member is $20, $20 and $25 for the years ending
December 31, 1998, 1999 and 2000 respectively. These assessments cannot be increased without a vote
of the membership.
Definition of Member - A member is a home which pays a monthly maintenance fee to the Greenbriar Golf
Course Association. Membership is mandatory for U.S. Home buyers and elective for Union Valley home
buyers.
4
152
REVENUES:
Note 1.
Maintenance Fees
This revenue account is calculated at $267.00 per year paid by 1,200 Greenbriar at Whittingham
residents and 147 Whittingham Homeowner residents.
Note 2.
Annual Green Fees
Annual green fees are computed on an average of $495 per year, based on 272 playing member
homes. Annual green fees are subject to change at the discretion of the Board.
Note 3.
Daily Green Fees
Daily green fees are based on $2,000 per month, June through September.
EXPENSES:
Note 4.
Management
This cost is based on a flat rate of $2,400 per month to provide financial and administrative
management to the Association and is based on an estimate from Wentworth Property Management
Company.
Note 5.
Insurance
This expense is based on the current insurance coverage from Boyarin, Hourigan & Blundell to provide
replacement cost hazard insurance on the proshop and maintenance building, Directors and Officers
coverage, employee dishonesty fidelity bond, and comprehensive general liability. Also includes $3,000
for golf ball damage claims.
Note 6.
Real Estate Taxes
This tax is based on the current tax rate per $100 in assessed value as established by the Monroe
Township tax assessor. The land and building assessed value is $1,849,800.
Note 7.
Audit Fee
Note 8.
Legal
This is an estimate per Association's attorney to provide legal counsel at a rate of $2,500 per quarter.
Note 9.
Golf Pro Fees
Based on 1997 Golf Pro and consulting contracts.
This is an estimated expense for supplies, letterhead, postage, and paper.
5
153
Note 11. Dues and Subscriptions
Expense consists of NJSGA and USGA dues and meeting expenses.
Note 12. Contingency
This expense is an estimate for any unforeseen expenses incurred during the year.
PAYROLL:
Note 13. Payroll, Payroll taxes and benefits
These estimates are based on salaries for two full time superintendent and two part time laborers.
Payroll taxes are computed at 11% of salaries. Benefits are estimated based on current billings for full
time employees. Workers compensation is calculated at $5.29 per $100 of salaries.
Note 14. Pager Rental
This expense is based on a contract of $10.44 per month.
Note 15. Fuel, Oil and General Repairs
Estimated cost of operating and maintaining golf course equipment.
Note 16. Miscellaneous Supplies
Estimated cost of supplies for operations.
Note 17. Topdressing and grass seed
Expenses are based on four applications of topdressing for greens and grass seed for greens and the
fairways based on 1997 usage.
Note 18. Irrigation Equipment
Estimated cost of sprinkler head repairs and system winterization.
Note 19. Lawn Fertilization. Chemicals and Weed Control
Cost of fertilization , chemicals and crabgrass prevention based on 1997 usage.
Note 20. Well Electric
Estimated cost of operating the well is based on 1997 usage.
Cost to replace trees and shrubs based on prior year amounts. Also includes $1,500 for bunker sand.
Note 22. Golf Cart Electric
Cost of charging battery powered carts based on 1997 usage.
6
154
Note 23. Small Equipment
Estimate cost of small tools to maintain equipment and golf course based on 1997 usage.
BUILDINGS:
Note 24. Maintenance Building
Costs include gas, electric, telephone, water and sewer.
Note 25. Pro Shop Building
Costs include gas, electric, telephone, water and sewer.
Note 26. Maintenance Supplies
Cost of janitorial and other supplies to maintain maintenance building and Pro Shop.
CAPITAL EXPENDITURES:
Note 27. Equipment
Cost of equipment not previously reserved which could include the following: tractor, overseeders,
mowers, sprayer, sod cutter and core harvester.
CAPITAL RESERVES:
Note 28. Capital Reserve Replacement Funding.
The Association's documents call for the establishment and accumulating of separate funds for the
eventual replacement of certain common elements. The funds should be budgeted, collected and set
aside in separate Association accounts. Each year during the budget process, the Association's board
members should review the replacement cost and useful life for reasonableness in determining the
proper amount of funds to be set aside in that particular year.
An independent engineering report was prepared by Flannery, Webb & Hansen. P.A. Through a review
of the site and architectural plans in April 1997. The quantities and cost estimates included in this
budget were directly from this report. The schedule of capital replacement reserves are detailed in an
exhibit to this report (Pages 8-13).
7
155
Item
Percentage of
Total Value
Current Funded
Amount
Annual Reserve
Replacement
Amount Funded
@ E.O.Y.
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
4.78%
0.96%
2.23%
0.83%
1.91%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750
$714
$682
$652
$625
$600
$577
$556
$536
$300
$467
$173
$500
$750
$714
$682
$652
$625
$600
$577
$556
$536
$300
$467
$173
$500
3.19%
1.91%
7.34%
1.21%
2.87%
4.78%
2.55%
4.75%
1.91%
0.57%
0.11%
1.59%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
$1,250
$750
$2,875
$475
$1,125
$1,875
$1,000
$1,863
$1,000
$450
$70
$833
100.00%
$0
$23,419
Year
No. of Units
Monthly
Contribution
Per Unit
Annual
Reserve
Contribution
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
278
536
661
786
911
1036
1161
1286
1348
1348
1348
1348
1348
1348
1348
1348
1348
1348
$1.50
$1.60
$1.75
$1.91
$2.09
$2.28
$2.49
$2.72
$2.97
$3.25
$3.55
$3.88
$4.23
$4.63
$5.05
$5.52
$6.03
$6.59
$5,004.00
$10,291.20
$13,865.14
$18.012.20
$22,807.83
$28,336.54
$34,692.91
$41,982.75
$48,077.43
$52,524.59
$57,383.12
$62,691.05
$68,489.98
$74,825.30
$81,746.64
$89,308.20
$97,569.21
$106,594.37
Photo
Site
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Green Replacement
Tee And Golf Course Signs
Fuel Tank
Asphalt Golf Cart Path Maintenance
Well Motor
Site Maintenance Machinery
Cushman Truckster
Carry-All Golf Cart
Gang 5 Reel Mower
Sprayer
Triplex Tee Mower
Greens Mower
Sandtrap Machine
Toro Greens Mower
Backup 72" Mower (used)
Rotary Push Mowers
Weedeater
Golf Cart (used)
13
161
162
Exhibit 21B
163
164
Peter Boyarin
December 12,1997
Wentworth Group
157 Broad St. Suite 108
Red Bank, NJ 07701
Re:
Letter of Adequacy Based on Current Membership of 807
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar Golf Course Association located in
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association provide the following
coverage at the premium!.noted:
COVERAGE
INSURANCE COVERAGE
LIMITS
PREMIUMS
Property:
Buildings
Contents
Deductible
$ 520,000
Included
$ 1,000
$ 7,641
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$ 1,000,000
Included
Included
Included
165
Crime:
Employee Dishonesty
$100,000
$335
$ 1,000,000
$1,875
Umbrella:
$ 2,000,000
$ 643
Statutory
$396
Total Premiums:
$10,890
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
166
Peter Boyarin
December 12,1997 ]
Wentworth Group
157 Broad St, Suite 108
Red Bank, NJ 07701
Re:
Letter of Adequacy Based on Full Membership of 1,347
Gentlemen:
I am a licensed insurance agent providing insurance for Greenbriar Golf Course Association located in
Jamesburg, NJ.
The insurance policies that are in force for the Greenbriar Golf Course Association provide the following
coverage at the premiums noted:
COVERAGE
Property:
Buildings
Contents
Deductible
INSURANCE COVERAGE
LIMITS
PREMIUMS
$520,000
Included
$ 1,000
$7,641
Included
General Liability:
Bodily Injury &
Property Damage
Medical Payments
$1,000,000
$ 5,000
Included
Included
Automobile:
Bodily Injury
Property Damage
$1,000,000
Included
Included
Included
167
Crime:
Employee Dishonesty
$ 100,000
$ 335
$1,000,000
$1,875
Umbrella:
$2,000,000
$643
Statutory
$396
Total Premiums:
$ 10,890
Very truly yours,
PB/phg
cc:
Regina Sapio
Wentworth Group
168
Exhibit 25
Amendment and Supplement to The Declaration of Covenants,
Conditions and Requirements
169
170
TO THE
FOR
GREENBRIAR GOLF COURSE
BY
A DELAWARE CORPORATION
DATED:
PREPARED BY: ___________________________
WENDELL A. SMITH, ESQUIRE
RECORD AND RETURN TO:
Attention: Wendell A. Smith, Esq.
Post Office Box 5600
171
SUPPLEMENT
TO THE
FOR
GREENBRIAR GOLF COURSE
THIS AMENDMENT AND SUPPLEMENT, made this _____ day of ______
______ , 199_ by U.S. HOME CORPORATION, a Delaware corporation,
having an address at 800 West Main Street, Freehold, New Jersey 07728
(the "Developer").
W I T N E S S E T H:
WHEREAS, the Developer is the owner of fee simple title to
certain lands and premises in Monroe Township, Middlesex County,
State of New Jersey, which lands and premises have been submitted to
a
Declaration
of
Covenants,
Conditions
and
Restrictions
for
Greenbriar
Golf
Course
(the
"Declaration")
dated
_______________________ and recorded ______________________in the
Office of the Clerk of Middlesex County, in Deed Book _______ at Page
_______, et seq. ; and
WHEREAS, pursuant to Section 3.03 of the Declaration, the
Developer may further amend and supplement the Declaration to
incorporate within the Development all or a portion of the remainder
of the Property described and shown as set forth in Schedules A & B
to the Declaration; and
NOW THEREFORE, the Developer hereby amends and supplements the
Declaration as follows:
1. The Developer hereby incorporates all those lands within
Sections 2.2, 1.3, 3.1, 1.5 and 3.2 of the Development described in
Exhibit A-1 through ___________ hereto , and as shown on Exhibits B-1
through B ______ hereof;
2. The Developer declares that such improvements are and shall
be held, transferred, sold, leased, conveyed, occupied and used
subject to the covenants, restrictions, conditions, easements,
charges, liens and provisions set forth in the Declaration, as now or
hereafter amended, all of which are hereby incorporated by reference
as though fully set forth herein; and
3. In addition, the Declarant hereby declares and establishes a
perpetual and non-exclusive easement in, under, over and through the
lots adjacent to the golf course which are described in Exhibit
172
C hereof (the "Premises") for the flight of errant golf balls and for
the purpose of permitting golfers to enter upon the exterior portions
of the Premises during daylight hours to look for and retrieve any
errant golf balls, which may have inadvertently been hit onto the
Premises, subject to the following:
(1) Any person(s) who enters onto the Premises for the aforesaid
purposes shall do so at his own risk of bodily injury and shall be
responsible for any and all property damage which may occur as a
result of such entry;
(2) By acceptance of title to, or any other interest in any
portion of the Premises, the grantee of such title or other interest
assumes all risks of bodily injury or property damage resulting from
any errant golf balls inadvertently hit onto the Premises and shall
be deemed to have (i) exculpated, released and waived any and all
claims that it may have against the Declarant, the owners, the
operators, members or users of the Golf Course, their respective
heirs, successors, assigns, agents or employees, arising from such
errant golf balls and resulting in any personal injury or property
damage to the Premises and (ii) assumed the risk of all Disturbances.
(3) In addition to the foregoing, all owners or holders of title
or any other interests described in Subparagraph (2) shall be deemed,
by acceptance of said title or other interest in the Premises, to
indemnify and hold harmless the Declarant and other persons or
entities mentioned in the, preceding Subparagraph (2) from and
against all claims and liability for loss or damage contemplated by
said Subparagraph (2).
4. Except as expressly modified herein, all other terms and
conditions of the Declaration shall remain in full force and effect
and the provisions hereof shall be deemed controlling.
IN WITNESS WHEREOF, the Developer has caused this instrument to
be executed the day and year first above written as duly authorized
by its corporate resolution.
ATTEST:
U.S. HOME CORPORATION, A Delaware
Corporation
Gregory A. Snyder, Division
President
STATE OF NEW JERSEY )
) SS:
COUNTY OF
)
BE IT REMEMBERED, that on this
day of
,
199__,
Paul Rempe personally came before me and this person acknowledged
under oath, to my satisfaction, that:
(a)
this person is the Secretary of the corporation named
in the attached document;
173
(b)
this person is the attesting witness to the signing of
this document by the proper corporate officer who is
Gregory A. Snyder, the Division President of the
corporation;
(c)
this document was signed and delivered by the
corporation as its voluntary act duly authorized by a
proper resolution of its Board of Directors;
(d)
this person knows the proper seal of the corporation
which was affixed to this document; and
(e)
this person signed this proof to attest to the truth
of these facts.
Signed and sworn to before me
on this
day of
, 199___.
A Notary Public of the State
of New Jersey
ushome\amend.2
174
EXHIBIT A-1
Description - Greenbriar at Whittingham, Village 3.2
175
CIVIL ENGINEERS • LAND SURVEYORS • SITE PLANNERS
LANDSCAPE ARCHITECTS • ENVIRONMENTAL CONSULTANTS
1234.011
Description of Property
Lots 7.02 & 14.04 * Block 48.40
Greenbriar at Whittingham - Village 3.2 (Phases A-D)
Monroe Township, Middlesex County, New Jersey
Being known and designated as Lots 7.02 and 14.04, Block 48.40 as shown on a map entitled "Lots 7.02
& 14.04, Block 48.40 Greenbriar at Whittingham - Village 3.2 (Phases A-D)" prepared by Flannery, Webb &
Hansen, P.A. dated 7/23/97 and last revised 10/2/97.
Beginning at a point along the westerly line of Jamesburg-Perrineville Road. Said point being at the intersection
formed by the division line between Lots 6 and 14.04, Block 48.40 and the westerly line produced by a 13.5'
dedication of Jamesburg-Perrineville Road, thence running:
1) South 12° 47' 45" East, 134.19' to a point along the division between Lots 7.01 and 14.04;thence
5) South 12° 32' 52" East, 380.79' along the division line between Lot 14.04 and Jamesburg-Perrineville
Road to a point; thence
6) South 12° 01' 33" East, 272.62' along said division line to a point, thence
7) North 87° 40' 26" West, 406.98' along the division line between Lot 8 and Block 14.04, Block 48.40
to a point, thence
point, thence
9) South 04° 01' 00" East, 257.54' along said division line to a point, thence
10) South 85° 59' 00" West, 172.16' along the division line between Lot 14.01 and 14.04, Block 48.40 to
a point; thence
176
12) Along a curve to the right in a southerly direction having a radius of 218.00' and an arc !
length of 182.63' to a point, thence
14) Along a curve to the left in a southeasterly direction having a radius of 25.00' and an arc length of
15) Along a curve to the left in a westerly direction having a radius of 456.00 and an arc length of 69.95'
to a point along the division line between Lot 2, Block 48 42 and Lot 14.04, Block 48.40; thence
16) North 15° 10' 42" East, 94.62' along the division line between Lots 14.04, Block 48.40 and Lot 1.01,
17) North 84° 29' 00" East, 70.00' along said division line to a point; thence 18)North 44° 29' 00" East,
130.00' along said division line to a point; thence
20) North 09° 31' 00" West, 210.00' along said division line to a point; thence 21)North 30° 31' 00"
West, 190.00' along said division line to a point; thence 22)North 40° 61' 00" West, 615.00' along
said division line to a point; thence 23)North 58° 31' 00" West, 190.00' along said division line to a
point, thence
26) South 55° 32' 23" West, 479.56' along said division line to a point, thence
28) Along a curve to the right in a northwesterly direction having a radius of 266.00' and an arc length of
92.07' along the division line between Lot 1, Block 48.32 and Lot 14.04, Block 48.40 to a point,
thence
177
29) North 36° 29" 32" West, 147.81' along said division line to a point; thence
30) North 53° 30' 28" East, 92.38' along the division line between Lots 14.03 & 14.04, Block 48.40 to a
point; thence
34) North 05° 35' 20" East, 35.46' along the division line between Lots 14.04, Block 48.40 and
35) North 83° 01' 29" East, 962.18' along the division line between Lots 11 & 14.04, Block 48.40 to a
point; thence
36) North 08° 13' 31" West, 359.04' along the division line between Lots 11 and 12 with Lot 14.04,
point; thence
38) North 05° 35' 20" East, 735.30' along the division line between Lot 14.04, Block 48 40 and
40) South 81° 12' 32" East, 1,476.34' along the division line between Lots 11.01 and 11.02, Block 48
and Lot 14.04, Block 48.40 to a point; thence
41) South 08° 27' 28" West, 86.43' along the division line between Lot 1, Block 48.07 and Burnside
Street with Lot 14.04, Block 48.40 to a point; thence
42) North 82° 12' 32" West, 983.40' along the division line between Lots 13 and 14.04, Block 48.40 to a
point; thence
178
45) South 08° 48' 05" East, 97.16 along the division line between Lot 1, Block 48.04 and Lot 14.04,
46) South 15° 31' 56" East, 151.91' along the division line between Sheridan Street and Lot 33, Block
48.03 with Lot 14.04, Block 48.40 to a point; thence
47) South 06D 26' 31" East, 49.00' along the division line between Lot 1, Block 48.03 and Lot 14.04,
49) South 36° 11' 22" East, 33.02' along the division line between Sherman Street and Lot 14.04, Block
52) South 47° 16' 34" East, 93.34' along the division line between Lot 9, Block 48.02 and Lot 14 04,
14.04, Block 48.40 to a point, thence
54) South 34° 48' 39" East, 113 65* along the division line between Lot 1, Block 48.02 and Lot 14.04,
55) South 29° 13' 27" East, 54.22' along the division line between Grant Street and Lot 14 04, Block
14.04, Block 48 40 to a point; thence
14.04, Block 48.40 to a point, thence
179
58) South 81° 56' 29" West, 43.92' along the division line between Lot 5, Block 48.01 and Lot 14.04,
60) North 81° 56' 29" East, 523.45' along the division line between Lot 6, Block 48.01 and Lot 14.04,
Block 48.40 to a point along the westerly line of Jamesburg-Perrineville Road to the point and place
of BEGINNING.
Contains 5,178,589 S.F. or 118.884 Acres
Doc: 11234GAW011
180
EXHIBIT B-1
Final Plat of Greenbriar at Whittingham, Village 3.2
181

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