Disclosure Packageo w n e r s a s s o c i a t i o n

K E M P B R I D G E

1400 Kemp Bridge DriveChesapeake VA 23330

Your Agent Shari Rocks

James River Real Estate Listing Agent Sherry Maser

William E Wood & AssociatesSean & Bobbie Camp

Congratulations

Commonwealth of Virginia Department of Professional and Occupational Regulation Post Office Box 29570 Richmond, Virginia 23242-0570 (804) 367-8510 cic@dpor.virginia.govwww.dpor.virginia.gov

Common Interest Community Board VIRGINIA PROPERTY OWNERS ASSOCIATION DISCLOSURE PACKET NOTICE

The lot being purchased is in a development subject to the Virginia Property Owners' Association Act. The contract to purchase a lot shall disclose that the lot is located in a property owners association. The purchaser may have the right to cancel the contract after receiving the disclosure packet and the purchaser may request an update of the disclosure packet pursuant to 55.509.4 of the Code of Virginia.

Living in a common interest community carries with it certain rights, responsibilities and benefits. Benefits include the right to use common areas, which may include swimming pools, parks, playgrounds and other recreational facilities. In order to finance the operation of the common interest community association, each owner is responsible for and obligated to pay periodic assessments, and if necessary, special assessments to ensure that the financial requirements are met. Use of common areas, financial obligations of lot owners and other rights, responsibilities and benefits associated with the ownership of a lot in this common interest community are subject to the provisions of governing documents that typically include a declaration, articles of incorporation, bylaws and rules and regulations. These documents are important and should be reviewed carefully prior to purchase. Some decisions are made by the association board of directors, while other decisions are reserved to a vote of association members. The purchaser is bound by all decisions of the association and the board of directors and the provisions of the governing documents.

Failure to comply with the association governing documents can result in legal action taken against the lot owner. Failure to pay assessments and mandatory fees may result in the association filing a lien and/or lawsuit against the lot owner, foreclosing the lien, and other actions permitted by the governing documents and the Property Owners Association Act.

Documents and information contained in the disclosure packet describe the basis for living in a common interest community and should be reviewed carefully prior to purchase of the property [lot].

This form was developed by the Common Interest Community Board in accordance with 54.1-2350 of the Code of Virginia and is to accompany the association disclosure packet required by 55-509.5 of the Code of Virginia. 10/26/09 Page 1 of 2

This form was developed by the Common Interest Community Board in accordance with 54.1-2350 of the Code of Virginia and is to accompany the association disclosure packet required by 55-509.5 of the Code of Virginia. 10/26/09 Page 2 of 2

The Association Disclosure Packet must include the following statements:

Association name, and if incorporated, the state of incorporation and the name and address of the registered agent;

A statement of any approved expenditures that require an additional assessment during the current year or the immediately succeeding fiscal year;

A statement of all assessments and other mandatory fees currently imposed by the association;

A statement whether there is any other entity or facility to which the lot owner may be liable for fees or charges;

The current reserve study report (or a summary thereof), a statement of the status and amount of any reserve or replacement fund and any portion of the fund allocated by the governing board for a specified project;

A copy of the association's current budget (or a summary thereof) and a copy of its statement of income and expenses or financial condition for the last fiscal year available, including a statement of the balance due of any outstanding loans of the association;

A statement of the nature and status of any pending suit or unpaid judgment to which the association is a party and that either could or would have a material impact on the association or its members or that relates to the lot being purchased;

A statement setting forth the insurance coverage provided for all lot owners by the association, including any fidelity bond maintained by the association, and what additional insurance would normally be secured by each individual lot owner;

A statement that any improvement or alteration made to the lot, or uses made of the lot or common area assigned thereto by the prior lot owner, are not in violation of any of the instruments referred to in this disclosure notice;

A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to place a sign on the owner's lot advertising the lot for sale;

A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to display any flag on the owner's lot, including, but not limited to reasonable restrictions as to the size, place and manner of placement or display of such flag and the installation of any flagpole or similar structure necessary to display such flag;

Certification, if applicable, that the association has filed with the Common Interest Community Board the annual report required by 55-516.1 of the Code of Virginia including the filing number assigned by the Common Interest Community Board and the expiration date of the filing.

The Association Disclosure Packet must include the following attachments, if any:

A copy of the current declaration, the association's articles of incorporation and bylaws, and any rules and regulations or architectural guidelines adopted by the association;

A copy of notice given to the lot owner by the association of any current or pending rule or architectural violation;

A copy of any approved minutes of the board of directors and association meetings for the six calendar months preceding the request for the disclosure packet;

FINA

NCIA

L ST

ATEM

ENTS

- KE

MP B

RIDG

E CO

MMUN

ITY

ASSC

INC

Bala

nce

Shee

tDe

cemb

er 3

1, 2

012

Asse

tsCU

RREN

T AS

SETS

843-

1010

.000

0CA

SH-O

PERA

TING

/TOW

NE$

4,25

2.10

843-

1102

.000

0CA

SH-O

P RE

SERV

E/TO

WNE

458.

9684

3-11

03.0

000

CASH

-REP

RES

ERVE

/TOW

NE2,

251.

92TO

TAL

CURR

ENT

ASSE

TS$

6,96

2.98

LONG

TER

M AS

SETS

TOTA

L AS

SETS

$ 6,

962.

98

Liab

ilit

ies

and

Equi

ty

CURR

ENT

LIAB

ILIT

IES

843-

2305

.000

0DU

E TO

KEM

P BR

IDGE

ASS

OC L

$ (1

9,02

5.00

)TO

TAL

CURR

ENT

LIAB

ILIT

IES

$ (1

9,02

5.00

)

LONG

TER

M LI

ABIL

ITIE

STO

TAL

LIAB

ILIT

IES

$ (1

9,02

5.00

)

CAPI

TAL

& EQ

UITY

843-

3200

.000

0AC

CUM

OPER

ATIN

G RE

SERV

E$

(458

.96)

843-

3300

.000

0AC

CUM

REPL

ACEM

ENT

RESE

RVE

(2,2

51.9

2)84

3-34

98.0

000

RETA

INED

EAR

NING

S18

,075

.96

CURR

ENT

EARN

INGS

(3,3

03.0

6)TO

TAL

EQUI

TY$

12,0

62.0

2TO

TAL

LIAB

ILIT

IES

& EQ

UITY

$ (6

,962

.98)

Janu

ary

14,

2013

11:1

0 am

Conf

iden

tial

: F

or I

nter

nal

Use

Only

FINANCIAL STATEMENTS

- KEMP BRIDGE COMMUNITY ASSC I

NCBudget Comparison Statement

For the Period Ended December 31, 2012

Monthly

Monthly

Current

YTD

YTD

YTD

Annu

alTitl

eBudget

Actual

Variance

Budget

Actu

alVa

rian

ceBu

dget

INCOME

-ASS

OCIA

TION

FEE

S$

0$

1,652.00

$1,652.00

$20,160.00

$22

,190

.12

$2,

030.

12$

20,1

60.0

0INCOME

-ADV

ASS

OC F

EES

01,039.00

1,039.00

081

7.00

817.

000

INTERE

ST I

NCOM

E0

.11

.11

01.

101.

100

LATE F

EES

INCO

ME8.34

0(8.34)

100.00

450.

0035

0.00

100.

00ASSESS

MENT

RES

ERVE

INC

166.66

0(166.66)

2,000.00

1,25

7.00

(743

.00)

2,00

0.00

TOTAL

INCO

ME$

175.00

$2,691.11

$2,516.11

$22,260.00

$24

,715

.22

$2,

455.

22$

22,2

60.0

0

AUDITI

NG E

XPEN

SES

27.09

027.09

325.00

325.

000

325.

00BANK S

ERVI

CE C

HARG

E1.25

.45

.80

15.00

20.4

0(5

.40)

15.0

0PROPER

TY I

NSUR

ANCE

75.00

075.00

900.00

090

0.00

900.

00CORPOR

ATE

FEES

16.66

016.66

200.00

60.0

014

0.00

200.

00MANAGE

MENT

FEE

374.37

449.95

(75.58

)4,492.50

5,26

9.01

(776

.51)

4,49

2.50

MISC E

XP/G

ENER

AL &

ADM

IN18.34

018.34

220.00

022

0.00

220.

00OFFICE

EXP

/PRI

NTIN

G37.50

108.22

(70.72

)450.00

529.

59(7

9.59)

450.

00COUPON

BOO

KS5.00

2.10

2.90

60.00

193.

50(1

33.5

0)60

.00

POSTAG

E12.50

4.90

7.60

150.00

126.

3023

.70

150.

00TOTAL

GEN.

& A

DM.

EXPE

NSE

$567.71

$565.62

$2.09

$6,812.50

$6,

523.

80$

288.

70$

6,81

2.50

UTILIT

IES-

ELEC

TRIC

116.66

208.68

(92.02

)1,400.00

1,55

4.89

(154

.89)

1,40

0.00

TOTAL

UTIL

ITIE

S$

116.66

$208.68

$(92.02

)$

1,400.00

$1,

554.

89$

(154

.89)

$1,

400.

00

MAINT.

-LAW

N CO

NTRA

CT1,062.30

916.67

145.63

12,747.50

12,3

32.3

541

5.15

12,7

47.5

0MAINT.

-SIG

NS8.34

08.34

100.00

010

0.00

100.

00MAINT.

-GRO

UNDS

16.66

016.66

200.00

020

0.00

200.

00TOTAL

MAIN

TENA

NCE

$1,087.30

$916.67

$170.63

$13,047.50

$12

,332

.35

$71

5.15

$13

,047

.50

RESERV

ES-E

ARNE

D IN

TERE

ST0

.71

(.71

)0

1.10

(1.1

0)0

REPLAC

EMEN

T RE

SERV

E83.34

83.34

01,000.00

1,00

0.02

(.02)

1,00

0.00

TOTAL

REPL

ACEM

ENT

RESE

RVE

$83.34

$84.05

$(.71

)$

1,000.00

$1,

001.

12$

(1.1

2)$

1,00

0.00

TOTAL

EXPE

NSES

/RES

ERVE

S$

1,855.01

$1,775.02

$79.99

$22,260.00

$21

,412

.16

$84

7.84

$22

,260

.00

NET IN

COME

$(1,680.01)

$916.09

$2,596.10

$0

$3,

303.

06$

3,30

3.06

$0

Januar

y 14

, 20

13 11:

10 am

Confidential: For Internal Use Only

FINANCIAL STATEMENTS

- KEMP BRIDGE COMMUNITY ASSC I

NCBudget Comparison Statement

For the Period Ended December 31, 2012

Januar

y 14

, 20

13 11:

10 am

Confidential: For Internal Use Only