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North Tower Condominium AssociationAssociation Characteristics Cont.Breed restrictions?YesBreed restrictions may lower insurancecosts.Pet weight limit?YesPet weight limits are typical in high-risebuildings.Number of pets limit?Pet limitA pet limit may lower insurance costs andpromote community health.Are there any guest occupancyrestrictions?NoGuest occupancy restrictions may reduceliability.Material of roofMetalRoofs and roofing systems are typically oneof the largest shared expenses. The materialof the roof may directly affect the lifespanand future replacement costs.Year roof was installed2000The age of the roof may represent anupcoming expense for the individual owneror association based on the roof's estimatedeconomic life.Is there a roof warranty?YesA roof warranty reduces liability.Year roof warranty will expire2015The roof warranty expiration date may affectupcoming expense for the individual owneror association. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.15

North Tower Condominium AssociationAssociation Characteristics Cont.Age of windows11 to 25 yearsIn older buildings, the age of the windowsmay represent an upcoming expense for theindividual owner or association.Are there automatic sprinklers?YesAutomatic sprinklers may prevent fires andlower insurance rates.Overall exterior appearanceExcellent - No signs of deferredmaintenance. Well keptlandscaping and walkways.Substandard exterior appearance mayrepresent neglected maintenance.Overall locationGood/Growth - No signs ofneglect, properties are wellkept, evidence of newconstruction in the area mayexistLocation will affect resale values.Proximity to shoppingExcellent - Under 1 mileShopping availability will affect resalevalues.Proximity to entertainmentExcellent - Under 1 mileEntertainment proximity will affect resalevalues.Proximity to high voltage powerlinesN/AClose proximity to high voltage power linesmay have a negative impact on real estatevalues.Proximity to known SuperfundareasN/AClose proximity to Superfund areasrepresents risk. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.16

North Tower Condominium AssociationAssociation Characteristics Cont.Proximity to landfillsN/AClose proximity to landfills represents risk.Proximity to cell phone towersN/AClose proximity to visible cell phone towersmay negatively impact real estate values.Proximity to public transportationRapid Transit within 1 mileAccess to public transportation is an asset.Proximity to emergency medicalservicesGood - Between 1 and 5 milesProximity to medical services adds value.Proximity to parks, beaches oropen areasExcellent - Under 1 mileOpen areas such as parks, playgrounds andbeaches can positively affect real estatevalues and quality of life. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.17

North Tower Condominium AssociationBoard InformationAssociation has website availableYesTypically indicates transparency tohomeowners.Does the association voteelectronically?NoWhere allowed, electronic voting helpsprevent fraud, election abuse and reduceselection costs, improving an association'sbottom line.Does the board have the right offirst refusal?YesIf outlined in the governing documents, aright of first refusal gives the associationitself the right to match a potential buyer'soffer and to become the purchaser of realestate within the community. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.18

North Tower Condominium AssociationLegal & Financial InformationIs the corporate charter currentand filed with the state?YesArticles of Incorporation are necessary toestablish the association with the state anddescribe the purpose of the corporation.Date of last reserve study review01/15/2016A reserve study will provide homeownerswith estimates for replacement cost, usefullife, and remaining life of common elementsand building components.Amount of money in reserves 5,000,000A low reserve fund may represent a lack ofassociation money to repair and maintaincommon elements and areas such as roofs,elevators, roads, retention ponds anddrainage systems.Amount of money in reserves as apercentage of annual assessmentincome200%A low percentage of reserves will affectlending decisions, impacting a buyer's abilityto obtain a mortgage and resale values.Most recent special assessmentNoneA history of special assessments mayrepresent owner liability to finance repairs orstructural improvements to the commonelements.Have there been any directcharges or capital contributionsper unit within the past 7 years?NoDirect charges or capital contributions mayrepresent a financially weak association.Are there any pending specialassessments?NoA pending special assessment mayrepresent insufficient reserve funds forbuilding maintenance, replacement andrepairs.Date of last audit madeEvery 7 years with annualaccountant reviewLack of professional audits may reveal thatthe association is not following generallyaccepted accounting principles (GAAP). 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.19

North Tower Condominium AssociationLegal & Financial Information Cont.Amount of outstandingassociation loans 2,000,000Outstanding association loans representadditional debt and liability to owners, butare often necessary to complete majorcapital improvement projects.Outstanding loan balance/# units 4,081Average debt per unit owner for outstandingassociation loans.Any cited building code violationsin the past three years?NoBuilding code violations represent liability.Known health hazards: Radon,Asbestos, Mold, etc.NoKnown health hazards may representliability.Any pending lawsuits filed by oragainst the association?YesPending lawsuits may represent theassociation failing to fulfill any of the duties itexpressly agreed to perform in thegoverning documents and is considered aliability to both the association and theindividual owners.Minimum number of days requiredfor written notification to be givento the HOA or insurance trusteebefore any substantial changes orcancellation of the projectcoverage?60In this timeframe, board members will havean opportunity to prepare formal bidspecifications for association coverage.The Declaration or CC&RAvailable to owners andmortgagees online withpassword protectionAn available Declaration or CC&R(Covenants, Conditions and Restrictions)provides association transparency. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.20

North Tower Condominium AssociationAssociation Evaluation guarantees we will diligently use our expertise to assist you in making informeddecisions.For every condominium or homeowner association report you receive, we guarantee to provide:1. An evaluation of the common elements2. Photographs of the common elements3. Photographs of any nearby external hazards such as waste dumps, landfills, high-power tension lines, safety orsanitation hazards4. An exclusive ViabilityChek based on gathering more than 140 factors about the association, including:Operating and reserve budgets12 months of board minutesSpecial assessment historyPolicies related to conflict of interest and governance, if any5. Exclusive PARScore rating system to translate the facts into an easy-to-understand number score rangingfrom 400 to 900.Through the Private Association Rating Score (PARScore ), Association Evaluation brings comprehensivetransparency, clarity and accountability to community associations nationwide. We will refund our entire fee if the termsof this guarantee are not fully performed.Sara Benson,President and CEO of Association Evaluation, LLC 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.21

North Tower Condominium AssociationFrequently Asked Questions1. What is PARScore ?PARScore serves as a complete evaluation rating for the health, safety, security, and creditworthiness of acondominium or homeowner association.2. How is PARScore determined?PARScore is derived from more than 140 data sets plus a field verification with dozens of checkpoints that are thencombined and weighted in our proprietary algorithm to produce an overall rating.3. What kinds of criteria is PARScore actually rating?PARScore encompasses things such as association documents and financials, geographic location to known healthhazards, distance to the nearest hospital, even cleanliness of common areas, to promote the value of transparent, wellrun associations.4. Why should I use PARScore ?PARScore turns guesswork into fact-based decisions. PARScore is delivered in our ViabilityChek report thatsummarizes essential findings of the data discovery process for each property. ViabilityChek reduces liability for allparties involved in a condominium or homeowner association transaction.5. How is this different from an appraisal and inspection?ViabilityChek evaluates key information that other sources often ignore. The common elements of an association arenever required in a home inspection and are not included in an appraisal. Both home inspections and real estateappraisals can be too focused on an individual unit. With our process, all of the information needed to make wellinformed lending and buying decisions is documented both at a glance and in detail in Association Evaluation'sViabilityChek report.6. What are the lowest and highest possible scores?The lowest score available is 400 and the highest possible score is 900.7. How should I interpret PARScore numbers?PARScore is categorized by a rating of AAA, AA, A, B, C, or D. AAA is the highest rating, representing an excellentcondominium or homeowner association with transparent governance, superior external influences, and exceptionalinternal influences. D is the lowest rating, representing a substandard condominium association with very littletransparency and blighting external and internal influences. 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.22

North Tower Condominium AssociationFrequently Asked Questions Cont.8. What financial factors are considered in PARScore ?Annual association income Amount in reserves Percentage of income allocated to reserves Board minutes forupcoming special assessments not yet levied Certificate of good standing with Secretary of State's office And more.9. What common element factors are considered in PARScore ?Facades and roofs Windows Entryways and lobbies Life safety Recreational facilities And more.10. What conditions are considered in PARScore ?Litigation and lawsuits Owner occupancy ratios Rental restrictions Right of first refusal Voting procedures Andmore.11. What external influences are considered in PARScore ?Landfills High-power tension lines Superfund sites Incompatible land use External obsolescence And more.12. How long does it take to obtain PARScore ?It takes five business days to obtain PARScore both a physical evaluation and an analytical evaluation to verify all data.13. How long is PARScore valid?After 60 days the PARScore expires.14. Why should I trust PARScore ?PARScore, as well as its proprietary processes and algorithms, was created by Association Evaluation, LLC. Thecompany was founded by industry-leading real estate experts with decades of experience who recognized the need forstandardized measurement and evaluation to aid buyers and lenders.15. What is SCHAEP?SCHAEP is the Society of Condominium and Homeowner Association Evaluation Professionals. The society is a nonprofit organization that trains and certifies association evaluators to obtain the Certified Association EvaluationProfessional (CAEP) designation. (www.schaep.org) 2016 Association Evaluation LLC.PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.May 10, 2016Order No. 155110All rights reserved.23

North Tower Condominium Association 2016 Association Evaluation LLC. PARScore, PARRegistry, and ViabilityChek are Patent Pending and Fully Insured.