May 22, 2002

From North Crossing Homeowners Associate Board of Directors

To All Homeowners

Subject: Sidewalks

Last year the Board contracted a consultant to prepare a Capitol Reserve study of our neighborhood. During the study the consultant determined the sidewalks were the responsibility of the association per our covenants. This was contrary to what the Board and the Developer believed it to be. Our understanding was our sidewalks were the responsibility of the adjacent property owner per City code. City ordinance says the sidewalks that border your property are the property owner's responsibility to maintain and repair when needed. However the board felt a legal clarification was needed. The Associations lawyer says that yes our covenants assumes the responsibility for the sidewalks from the property owner.

After careful review of the covenants, capitol reserve study, the legal opinion and the City ordinance the board has to decide how to handle sidewalk issue. There have been several ideas on how to handle the problem. They are as follows:

1) Increase the association dues to cover the increased expense of maintaining the sidewalks by averaging the expense and increasing the dues the same to all homeowners. The estimate cost is $40.00/year/homeowner.

2) Increase the association dues to cover the increased expense of maintaining the sidewalks by determining how many feet of sidewalks border each individual lot and increase the dues to the homeowners accordingly. Estimated cost; TH $20.00/yr and SF $40.00-$120.00/yr depending on how much sidewalk borders your property.

3) Increase the association dues to cover the increased expense of maintaining the sidewalks by averaging the expense by town homes for their sidewalks and single family homes sidewalks increasing the dues by one rate for the townhouses and another for the single-family houses. Estimated cost; TH $20.00/yr. And SF $50.00/yr.

4) Change the covenants to give the responsibility back to each individual homeowner and not increase the dues at all.

All of the above action will take a 2/3 majority vote of the homeowners at a special meeting.

The board is requesting your input and participation. At the bottom of the letter indicate your preference on the above options. Please attend the board meetings to make your opinions known. The next board meeting is June 19th @ 7 pm at Clagetts Office on 20 E. 3rd Street in Frederick.

Name _________________________________

Address ________________________________

I vote for Option ____