You are on page 1of 173

USA Courtney Downs LeaseCo, LLC

Budget Comparison
Books = Accrual
For the period ending February 28, 2006

MTD MTD YTD YTD Annual
Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget YTD Variance Comment
Revenue
Market Rent 355,720.00 355,390.00 330.00 711,440.00 710,780.00 660.00 4,302,534.00
Loss / Gain to Lease 680.00 0.00 680.00 1,280.00 0.00 1,280.00 0.00
Gross Potential Rent 356,400.00 355,390.00 1,010.00 712,720.00 710,780.00 1,940.00 4,302,534.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Residential Rent (139.00) 0.00 (139.00) 482.00 0.00 482.00 0.00
Vacancy Loss (41,504.16) (35,345.00) (6,159.16) occupancy averaged 89% for the (91,961.49) (70,690.00) (21,271.49) (390,390.00)
month vs 90% budgetd. We
closed out the month at 92%
Upfront Rent Concessions (3,988.35) (2,000.00) (1,988.35) additional concessions were (84,732.28) (4,000.00) (80,732.28) (24,000.00)
offered on some vacant
apartments. The remained of
February was concessed on
move in
Corporate Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Delinquent Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adjustments & W/O (285.00) (500.00) 215.00 (1,341.95) (1,000.00) (341.95) (6,000.00)
Model Units (1,980.00) (1,980.00) 0.00 (3,960.00) (3,960.00) 0.00 (23,760.00)
Courtesy Officer Apt. (575.00) (575.00) 0.00 (1,150.00) (1,150.00) 0.00 (6,900.00)
Employee Apartment (1,780.80) (1,900.00) 119.20 (3,561.60) (3,800.00) 238.40 (22,800.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite 0.00 (1,130.00) 1,130.00 0.00 (2,260.00) 2,260.00 (13,560.00)
Lease Term Concessions (79,307.32) (84,298.00) 4,990.68 (79,328.71) (167,762.00) 88,433.29 (1,019,064.00)
Homeowner's Assn Dues Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowner Dues Paid 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Model Units 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Lease Contract Difference 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rental Income $226,840.37 $227,662.00 $(821.63) a negative variance to vacancy $447,165.97 $456,158.00 $(8,992.03) $2,796,060.00
loss was offset by a savings in
concessions

Laundry Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Vending Income 0.00 68.00 (68.00) 0.00 136.00 (136.00) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 825.00 2,300.00 (1,475.00) 2,432.00 4,600.00 (2,168.00) 27,600.00
Month to Month Premium 200.00 300.00 (100.00) 400.00 600.00 (200.00) 3,600.00
Storage Fees 1,133.90 1,300.00 (166.10) 2,203.90 2,600.00 (396.10) 15,600.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 700.00 1,000.00 (300.00) 1,350.00 2,000.00 (650.00) 12,000.00
Termination Fees & Damages 502.86 1,033.00 (530.14) one partial termination fee was 502.86 2,066.00 (1,563.14) 12,396.00
collected this month
Miscellaneous Income 666.86 500.00 166.86 6,852.45 1,000.00 5,852.45 6,000.00
No Name 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Pet Rents & Fees 2,029.50 900.00 1,129.50 pet violation notices were sent 2,515.50 1,800.00 715.50 10,800.00
out in January resulting in
collections of additional pet fees
and monthly pet rent
Tower Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asset Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Garage Income 7,208.00 8,700.00 (1,492.00) 14,099.22 17,400.00 (3,300.78) 104,400.00
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,006.00 1,000.00 6.00 2,012.00 2,000.00 12.00 12,000.00
HOA Contributions Developer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Developer HOA Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Forfeited Deposits 0.00 190.00 (190.00) 0.00 380.00 (380.00) 2,280.00
Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Administration Fee 3,303.00 2,000.00 1,303.00 5,190.00 4,000.00 1,190.00 24,000.00
Move-Out Charges 2,051.60 929.00 1,122.60 8,462.87 1,858.00 6,604.87 11,148.00
Short Term Lease Fees 225.00 225.00 0.00 450.00 450.00 0.00 2,700.00
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Units - expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - C.A.M. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Condo Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Other Income 19,851.72 20,445.00 (593.28) 46,470.80 40,890.00 5,580.80 245,340.00

Total Revenue $246,692.09 $248,107.00 $(1,414.91) $493,636.77 $497,048.00 $(3,411.23) $3,041,400.00

Expense
Managers Salary 8,419.93 9,545.00 1,125.07 17,592.37 19,090.00 1,497.63 124,082.00
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 9,191.94 6,660.00 (2,531.94) the grounds keeper position was 19,121.67 13,320.00 (5,801.67) 86,582.00
not included in the budget, but
these costs are offset in a
savings in make ready
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 4,026.40 3,500.00 (526.40) 9,316.90 3,500.00 (5,816.90) 42,000.00
Payroll Taxes 1,711.28 1,576.00 (135.28) 3,851.39 2,872.00 (979.39) 20,210.00
Group Insurance 1,520.00 1,442.00 (78.00) 3,192.00 2,884.00 (308.00) 17,304.00
Disability Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
401k Match 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contract Labor 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Workers Comp 2,909.89 1,576.00 (1,333.89) negative to budget due to the 6,018.84 2,872.00 (3,146.84) 20,210.00
increased number of employees
that were not budgeted
Total Salary Expense 27,779.44 24,299.00 (3,480.44) 59,093.17 44,538.00 (14,555.17) 310,388.00

Office Operations & Supplies 532.56 600.00 67.44 2,059.35 1,200.00 (859.35) 7,200.00
Telephones 785.56 1,080.00 294.44 2,443.47 2,160.00 (283.47) 12,960.00
Answering Svc. & Pagers 0.00 100.00 100.00 167.97 200.00 32.03 1,200.00
Postage & Delivery 112.94 200.00 87.06 584.04 400.00 (184.04) 2,400.00
Patrol Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Membership Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Publications & Subscriptions 142.00 0.00 (142.00) 142.00 0.00 (142.00) 1,645.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 90.00 100.00 10.00 90.00 200.00 110.00 2,200.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 0.00 200.00 200.00 0.00 400.00 400.00 2,400.00
Permits & Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Checks 166.00 750.00 584.00 467.51 1,500.00 1,032.49 9,000.00
Guest Suite Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 1,829.06 3,030.00 1,200.94 5,954.34 6,060.00 105.66 39,005.00

Advertising & Promotions 5,344.00 3,452.00 (1,892.00) all print advertising costs were 10,590.41 6,904.00 (3,686.41) 42,409.00
not completely budgeted. We
will be dropping one of our
advertisements next quarter to
bring these costs more in line.
The For Rent ad that we are
discontiuing has not been
effective and is expensive.
Resident Promotions 668.61 475.00 (193.61) 2,719.68 950.00 (1,769.68) 10,300.00
Locators 854.25 1,033.00 178.75 1,229.25 2,066.00 836.75 12,396.00
Resident Referrals 1,000.00 900.00 (100.00) two resident referrals at $500 3,500.00 1,800.00 (1,700.00) 10,800.00
each were paid out this month
Total Advertising Expense 7,866.86 5,860.00 (2,006.86) 18,039.34 11,720.00 (6,319.34) 75,905.00

Paint & Drywall 79.72 2,500.00 2,420.28 done in house to save money to 155.07 5,000.00 4,844.93 33,200.00
offset staffing costs
Contract Cleaning Svcs. 730.00 2,500.00 1,770.00 fewer turns on apartments 2,780.00 5,000.00 2,220.00 32,500.00
created a positive variance
Carpet Cleaning & Repairs 469.50 1,200.00 730.50 1,103.00 2,400.00 1,297.00 15,900.00
Window Coverings 189.00 200.00 11.00 (2.00) 400.00 402.00 2,400.00
Vinyl & Tile Repairs 0.00 500.00 500.00 0.00 1,000.00 1,000.00 6,000.00
Lock & Keys 0.00 100.00 100.00 0.00 200.00 200.00 1,200.00
Counter & Tub Resurfacing 0.00 100.00 100.00 185.00 200.00 15.00 1,200.00
Other Redecorating 0.00 100.00 100.00 0.00 200.00 200.00 1,200.00
Cleaning Supplies 0.00 300.00 300.00 71.44 600.00 528.56 3,600.00
Total Make Ready Expense 1,468.22 7,500.00 6,031.78 Positive variance more than 4,292.51 15,000.00 10,707.49 97,200.00
offsets the negative payroll costs

General Maintenance & Supplies 377.92 750.00 372.08 512.77 1,500.00 987.23 9,200.00
HVAC Parts & Repairs 52.13 150.00 97.87 356.34 300.00 (56.34) 1,800.00
Plumbing Parts & Repairs 122.44 75.00 (47.44) 401.94 150.00 (251.94) 4,200.00
Electric Parts & Repairs 814.78 150.00 (664.78) Hot water heater coils 814.78 300.00 (514.78) 1,800.00
purchased.
Roof & Gutter Repairs 0.00 100.00 100.00 0.00 200.00 200.00 1,200.00
Pools & Fountains 419.56 400.00 (19.56) 488.74 800.00 311.26 5,800.00
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 240.24 50.00 (190.24) 269.29 100.00 (169.29) 600.00
Appliance Parts & Repairs 205.46 75.00 (130.46) 380.78 150.00 (230.78) 900.00
Hardware 47.46 150.00 102.54 47.46 300.00 252.54 1,800.00
Exterior Painting 68.44 100.00 31.56 68.44 200.00 131.56 1,200.00
Uniforms 0.00 0.00 0.00 180.56 0.00 (180.56) 2,100.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 0.00 295.00 295.00 (688.60) 590.00 1,278.60 11,540.00
Uninsured Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Locks & Keys 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 2,348.43 2,295.00 (53.43) no extraordinary costs for the 2,832.50 4,590.00 1,757.50 42,140.00
month. In line with budget, YTD
is positive to budget

Landscape & Grounds 0.00 0.00 0.00 0.00 0.00 0.00 32,205.00
Trash Removal 513.69 775.00 261.31 1,034.15 2,300.00 1,265.85 10,050.00
Pest Control 75.00 75.00 0.00 150.00 150.00 0.00 900.00
Security Patrols 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Window Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interior Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable Television 0.00 45.00 45.00 0.00 90.00 90.00 540.00
Snow Removal (2,500.00) 1,500.00 4,000.00 snow removal was not required (1,000.00) 3,000.00 4,000.00 8,000.00
this month and the negative entry
is a reversed accrual from last
month. These costs will not be
accrued going forward, unless
service is rendered
Total Service Expense (1,911.31) 2,395.00 4,306.31 184.15 5,540.00 5,355.85 51,695.00

Expenses - CAM - Electric 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Water/Sewer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Grounds 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Trash Removal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Cleaning Svcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - R/E Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total CAM Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Management Fees 10,410.88 9,924.00 (486.88) Based on total revenue collected. 20,289.82 19,882.00 (407.82) 121,658.00

Asset Management Fees 1,000.00 1,000.00 0.00 2,000.00 2,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,250.00 0.00 6,500.00 6,500.00 0.00 39,000.00
Legal Fees 0.00 550.00 550.00 0.00 1,100.00 1,100.00 6,600.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Postage & Delivery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Administrative Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Travel Expense 0.00 0.00 0.00 825.49 0.00 (825.49) 1,000.00
Employee Activities 112.23 50.00 (62.23) 112.23 100.00 (12.23) 2,600.00
Printing 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Consulting 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Expense 0.00 0.00 0.00 63.95 0.00 (63.95) 1,400.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Development Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Admin. Expense 14,773.11 14,774.00 0.89 29,791.49 29,582.00 (209.49) 184,258.00

Electricity 2,755.94 2,800.00 44.06 7,480.64 5,600.00 (1,880.64) 33,600.00
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 4,782.76 4,000.00 (782.76) 10,971.24 8,000.00 (2,971.24) 35,120.00
Water & Sewer 6,137.21 7,500.00 1,362.79 18,071.88 15,000.00 (3,071.88) 106,000.00
Water & Sewer - Resident Reimb (5,084.83) (4,000.00) 1,084.83 (5,118.55) (8,000.00) (2,881.45) (50,500.00)
Water - irrigation (1,217.62) 0.00 1,217.62 (4,132.78) 0.00 4,132.78 40,840.00
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (1,915.44) (2,200.00) (284.56) (3,803.19) (4,400.00) (596.81) (26,400.00)
Water - Tenant Reimbursement 2,819.98 0.00 (2,819.98) 0.00 0.00 0.00 0.00
Utility -Vacant Electric 1,478.49 1,700.00 221.51 2,986.29 3,400.00 413.71 20,400.00
Utility - Vacant Gas 1,221.07 1,100.00 (121.07) 2,333.09 2,200.00 (133.09) 9,820.00
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 10,977.56 10,900.00 (77.56) 28,788.62 21,800.00 (6,988.62) 168,880.00

Management Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Management Fees-MRLL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Property Legal Fees 605.00 0.00 (605.00) legal fees for eviction 2,311.00 0.00 (2,311.00) 0.00
proceedings
Credit Card Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 26.00 0.00 (26.00) 0.00
Bank Adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Professional Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Assessment Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fiduciary Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Custodial Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Management Expense 605.00 0.00 (605.00) 2,337.00 0.00 (2,337.00) 0.00

Property Taxes 33,052.33 27,200.00 (5,852.33) Includes Arapaho County tax. 60,252.33 54,400.00 (5,852.33) 326,400.00
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 6,330.29 6,691.00 360.71 13,308.15 13,382.00 73.85 80,292.00
Tax Consultants 500.00 0.00 (500.00) Tax fee paid to Advantax. 500.00 0.00 (500.00) 0.00
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 39,882.62 33,891.00 (5,991.62) 74,060.48 67,782.00 (6,278.48) 406,692.00
Total Operating Expenses 105,618.99 104,944.00 (674.99) 225,373.60 206,612.00 (18,761.60) 1,376,163.00
NET OPERATING INCOME 141,073.10 143,163.00 (2,089.90) 268,263.17 290,436.00 (22,172.83) 1,665,237.00

Base Rent 106,586.67 106,587.00 0.33 213,173.34 213,174.00 0.66 1,279,044.00
Stated Rent 86,666.67 86,667.00 0.33 173,333.34 173,334.00 0.66 1,040,004.00
Office Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.34 193,254.00 0.66 386,506.68 386,508.00 1.32 2,319,048.00

Mortgage Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Loan Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Debt Service 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Partnership Legal Fees 0.00 0.00 0.00 1,510.50 0.00 (1,510.50) 0.00
Partnership Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Travel 40.41 0.00 (40.41) 40.41 0.00 (40.41) 0.00
Partnership - Meals 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Fees - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Due Diligence Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dead Deal Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Exp- Leaseup Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 40.41 0.00 (40.41) 1,550.91 0.00 (1,550.91) 0.00

Exterior Rehab 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interior Rehab (3,000.00) 0.00 3,000.00 reversal of prior accural 0.00 3,000.00 3,000.00 3,000.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 2,217.63 3,300.00 1,082.37 Replaced three carpets. 3,088.96 6,600.00 3,511.04 63,800.00
Refrigerators 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fire Alarm Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Capital Improvements 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Boiler Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Roof Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Capital Expenses (782.37) 3,300.00 4,082.37 3,088.96 9,600.00 6,511.04 66,800.00

Casualty Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Casualty Recovery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Casualty Loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) (51,438.28) (53,391.00) 1,952.72 (122,883.38) (105,672.00) (17,211.38) (720,611.00)
USA Courtney Downs LeaseCo, LLC
Cash Flow (Actual + Budget)
Books = Accrual
For the 12 Months Ending Dec 2006

Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006 12 Month $/ $/
Account Actual Actual Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Total Unit Sq. Ft.
342 313,778
Revenue
Gross Potential Rent 356,941 356,261 355,390 355,390 356,985 356,985 356,985 356,985 360,554 364,160 364,160 364,160 4,304,956 12,587.59 13.72
- Vacancy (50,457) (41,504) (31,811) (31,811) (28,559) (28,559) (21,419) (28,559) (32,450) (36,416) (40,058) (40,058) (411,661) (1,203.69) (1.31)
- Concessions & Disc. (80,765) (83,296) (87,068) (87,068) (87,817) (87,817) (89,436) (87,817) (87,029) (86,256) (85,497) (85,497) (1,035,363) (3,027.38) (3.30)
- Other Write-offs & Adj. (5,393) (4,621) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (70,864) (207.20) (0.23)
Total Rental Income 220,326 226,840 230,426 230,426 234,524 234,524 240,045 234,524 234,990 235,403 232,520 232,520 2,787,068 8,149.32 8.88

Other Income 26,619 19,852 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 250,921 733.69 0.80
Total Revenue 246,945 246,692 250,871 250,871 254,969 254,969 260,490 254,969 255,435 255,848 252,965 252,965 3,037,989 8,883.01 9.68

Operating Expenses
Salary Expense 31,314 27,779 24,299 24,299 24,299 37,759 24,299 20,239 24,299 24,299 24,299 37,759 324,943 950.13 1.04
Operating Expense 4,125 1,829 3,030 3,030 4,030 3,030 3,375 4,330 3,030 3,030 3,030 3,030 38,899 113.74 0.12
Advertising Expense 10,172 7,867 5,860 6,885 6,845 5,860 7,885 5,860 5,860 6,385 5,860 6,885 82,224 240.42 0.26
Make Ready Expense 2,824 1,468 7,500 8,500 8,800 8,800 8,800 8,700 8,200 7,900 7,500 7,500 86,493 252.90 0.28
Maintenance Expense 484 2,348 2,295 3,095 2,345 2,345 4,645 2,345 2,295 13,595 2,295 2,295 40,383 118.08 0.13
Service Expense 2,095 (1,911) 4,640 4,140 8,140 3,640 3,640 3,640 6,640 4,640 4,640 2,395 46,339 135.49 0.15
Administrative Expense 15,018 14,773 14,885 14,885 15,549 15,049 16,670 17,049 15,067 15,084 15,469 14,969 184,467 539.38 0.59
Utility Expense 17,811 10,978 11,900 14,200 17,050 16,295 16,295 16,295 16,655 16,590 10,900 10,900 175,869 514.24 0.56
Management Expense 1,732 605 0 0 0 0 0 0 0 0 0 0 2,337 6.83 0.01
Taxes & Insurance 34,178 39,883 33,891 33,891 33,891 33,891 33,891 33,891 33,891 33,891 33,891 33,891 412,970 1,207.52 1.32

Total Operating Exp. 119,755 105,619 108,300 112,925 120,949 126,669 119,500 112,349 115,937 125,414 107,884 119,624 1,394,925 4,078.73 4.45
Net Operating Income 127,190 141,073 142,571 137,946 134,020 128,300 140,990 142,620 139,498 130,434 145,081 133,341 1,643,064 4,804.28 5.24

Rent Expense 193,253 193,253 193,254 193,254 193,254 193,254 193,254 193,254 193,254 193,254 193,254 193,254 2,319,047 6,780.84 7.39
Partnership Expense 1,511 40 0 0 0 0 0 0 0 0 0 0 1,551 4.53 0.00
Capital Expense 3,871 (782) 4,400 6,600 6,600 6,600 6,600 6,600 6,600 6,600 3,300 3,300 60,289 176.28 0.19

Cash Flow Frm Operations (71,445) (51,438) (55,083) (61,908) (65,834) (71,554) (58,864) (57,234) (60,356) (69,420) (51,473) (63,213) (737,822) (2,157.38) (2.35)

Rent Guarantee 66,280 58,055 58,308 42,301 0 0 0 54,510 60,031 59,565 59,152 16,742 474,944

Balance Sheet Adjustments
Cash - Non Operating Accounts 792 (2,230) 0 0 0 0 0 0 0 0 0 0 (1,438)
Accounts Receivable 9,672 (940) 0 0 0 0 0 0 0 0 0 0 8,732
Prepaid Assets 372 (275) 0 0 0 0 0 0 0 0 0 0 97
Escrow Deposits (34,325) (34,325) (7,125) (7,125) 3,093 (7,125) (7,125) (7,125) 19,275 (7,125) (7,125) (7,125) (103,283)

Cash Increase (Decreae) From Assets (23,489) (37,770) (7,125) (7,125) 3,093 (7,125) (7,125) (7,125) 19,275 (7,125) (7,125) (7,125) (95,892)

Accounts Payable (5,209) 4,548 0 0 0 0 0 0 0 0 0 0 (661)
Accrued Expenses 34,702 17,279 0 0 0 0 0 0 0 0 0 0 51,980
Other Payables 1,398 6,448 0 0 0 0 0 0 0 0 0 0 7,846
Notess Payable 0 (763) 0 0 0 0 0 0 0 0 0 0 (763)

Cash Increase (Decreae) From Liab. 30,890 27,511 0 0 0 0 0 0 0 0 0 0 58,402

NET CASH FLOW 2,236 (3,642) (3,900) (26,732) (62,741) (78,679) (65,989) (9,849) 18,950 (16,980) 554 (53,596) (300,369)
CUMM. NET CASH FLOW 29,014 25,372 21,472 (5,260) (68,001) (146,680) (212,669) (222,518) (203,568) (220,548) (219,994) (273,590)

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$-

$(100,000)

$(200,000)

$(300,000)
Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006

NET CASH FLOW CUMM. NET CASH FLOW

Units
Sq. Ft.
### 384807

bayclub2 160 146,080
castlep 356 384,807
cedar 300 274,080
congress 257 254,074
jackson 247 221,730
lee 10 22,160
rem 428 398,868
ric 5 24,952
parkside 300 305,832
polo 440 403,761
sat 440 548,750
sweet 240 264,892
trailapt 280 286,056
vlgcrest 120 108,276
walnut 284 254,103
westo 12 48,309
wind 346 433,196
usacourt 280 299,111
usawalcr 284 254,103
D47: administrator:
replacement reserve

E47: administrator:
replacement reserve

F47: administrator:
replacement reserve

G47: administrator:
replacement reserve

H47: administrator:
replacement reserve

I47: administrator:
replacement reserve

J47: administrator:
replacement reserve

K47: administrator:
replacement reserve

L47: administrator:
replacement reserve

M47: administrator:
replacement reserve
Courtney Downs Apartments
February 2006
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 19 INCOME THIS MONTH: $246,692.09
NUMBER OF MOVE OUTS: 10 INCOME LAST MONTH: $246,944.68
NET FOR THE MONTH: 9 DIFFERENCE: -$252.59

TOTAL # GARAGES 120
# GARAGES OCCUPIED 115
OCCUPIED/LEASED %: 87.0% 91.2% GARAGES OCCUPIED %; 96%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 4
APARTMENT GUIDE 8 3 * Restricted Pet Breed 0
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 2
OTHER. NET 10 5 * Just started looking. 7
FOR RENT 0 0 * Waiting for Home to Sell 0
RENT.NET 4 2 * Current Lease to Expire 1
LIVES IN AREA 9 5 * Needs Ground Floor 0
RESIDENT REFERRAL 3 3 * Moved Elsewhere 0
LOCATORS 5 3 * Will return with roommate or spouse 5
RENT.COM 0 0 * Realtor Looking for Client 0
WALK-IN 0 0 * Undecided 0
SIGNAGE 8 3 * Employment pending 4
WORD OF MOUTH 7 4 * House sale pending 3
* Rented at Competitor 0
TOTALS 54 28 TOTALS 26

CLOSING RATIO: 33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Met with Apartment Guide representative to create new flyers for outside marketing and direct mailers.
* Updated all locators with new move in specials and price sheets.
* Dropped off brochures and price sheets to surrounding realtors with short term leasing options.
* Updated all Internet adds with current pricing and specials.
* Met with Human Resources Representative from Home Depot with relocation deals.

OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are offering rents averaging from $565 to $755 on one bedrooms,
and two bedrooms from $775 to $1015 and three bedrooms from $965 to $1215.
Due to a few harsh winter weeks all properties in our market have increased concessions and all pro rated specials.

RESIDENT RETENTION:
We are showing 10 renewals for the month of February at an average increase of $20.70. We have continued to discuss all options with
residents to keep turnover to a minimum.
5- residents did not renew due to buying houses, 1-resident is moving out of town, and 1-moved due to financial reasons.

INCIDENTS ON THE PROPERTY:
N/A
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 11 REFRIGERATORS 0
COMPLETE PAINTS 5 DISHWASHERS 0
TOUCH UPS 6 STOVES 0
WORK ORDERS 144 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 10 10 WATER HEATERS 0
Electrical 0 21 21 ICE MAKERS 0
Punch 0 11 11 GARBAGE DISPOSALS 0
HVAC 0 6 6 MICROWAVES 0
Plumbing 0 83 83 CARPETS 5 2,105,182,021,911,250,000,000
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 13 13 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 144 144 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
PLUMBING LEAKS 0 BLINDS 8 9303-2,4208-2,7105-1,2105-3.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A in progress.

PROBLEM AREAS NEEDING ATTENTION:
Notified by Arapahoe water district that Irrigation meter housing must be lowered to grade, per county code. Meter was removed by Arapahoe County to avoid damage.
We are in the process of bidding out the work.

CURRENT STAFF:

Manager Nancy Howland
Assistant Manager Beth McCall
Leasing Consultant Wendy Gillan
Leasing Consultant Kathy Hensey
Maintenance Supervisor Gabriel Tellez
Assistant Maintenance Russell Briley
Maintenance/ Grounds Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH:
Treadmills were repaired and free weights replaced.
Both flood units are completed.
Courtney Downs
RENTAL SCHEDULE
February-06

EFFECTIVE EFFECTIVE EFFECTIVE Vacants Notice Net
UNIT TYPE #UNITS SIZE TOTAL MKT RENT MKT RENT MONTHLY ANNUAL CONCESSION CONCESSION PER S/F MONTHLY Vacants Leased Notice Leased Available
S/F PER UNIT PER S/F GROSS GROSS RENTS* PER UNIT GROSS + -
A1 1BR 40 704 28,160 830 1.18 $33,200 $398,400 775 55 1.10 $31,000 7 3 0 0 4
A1V 1BR 32 704 22,528 860 1.22 $27,520 $330,240 775 85 1.10 $24,800 0 0 0 0 0
A2 1BR 18 910 16,380 935 1.03 $16,830 $201,960 825 110 0.91 $14,850 4 1 0 0 3
B1 2BR 24 808 19,392 895 1.11 $21,480 $257,760 795 100 0.98 $19,080 5 0 0 3 2
B1V 2BR 32 808 25,856 925 1.14 $29,600 $355,200 795 130 0.98 $25,440 0 0 0 0 0
C 2BR 42 977 41,034 1130 1.16 $47,460 $569,520 799 331 0.82 $33,558 6 1 1 1 5
C1 2BR 44 1,030 45,320 1150 1.12 $50,600 $607,200 850 300 0.83 $37,400 5 2 0 2 1
C1V 2BR 22 1,030 22,660 1180 1.15 $25,960 $311,520 850 330 0.83 $18,700 0 0 0 0 0
CV 2BR 24 977 23,448 1150 1.18 $27,600 $331,200 799 351 0.82 $19,176 0 0 0 0 0
D 2BR 16 1,030 16,480 1150 1.12 $18,400 $220,800 850 300 0.83 $13,600 6 0 0 1 5
DV 2BR 20 1,030 20,600 1180 1.15 $23,600 $283,200 850 330 0.83 $17,000 0 0 0 0 0
E 3BR 24 1,140 27,360 1245 1.09 $29,880 $358,560 1,035 210 0.91 $24,840 0 4 0 1 0
EV 3BR 4 1,140 4,560 1255 1.10 $5,020 $60,240 1,035 220 0.91 $4,140 0 0 0 0 0

TOTAL 342 917 313,778 $1,044 $1.14 $357,150 $4,285,800 $283,584 33 11 1 8 20
* Net of Concessions
MARKET SURVEY
Courtney Downs
February-06

Apartment Name Courtney Downs Brookside Village Carriage Place Coyote Ranch Windsor @ Meridian Pinnacle @ the Creek Greenbriar @ Saddle Rock Dove Valley Cherrywood Village Reserve @ South Creek
Address 15849 E. Jamison Dr 5400 S Park Terrace 4900 S Ulster 16363 E Freemont Ave 9875 Jefferson Pkwy 6107 S Parker Rd 22159 E Ontario Dr 7550 S Blackhawk 16950 E Carlson Dr 15611 E Jamison Dr
Phone 720-870-6114 303-220-7086 303-740-7011 303-693-8787 303-256-7700 303-766-2500 303-617-6600 303-362-2000 303-805-7220 303-680-6696
Location Englewood, Co Greenwood Village, Co Denver, Co 80237 Aurora, Co Englewood, Co 80112 Centennial, Co Aurora, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 304 331 507 653 216 250 312 380 168
Age of Property 2002 1998 1997 2002 1999 2002 2002 2001 2002 2002
Application Fee $50.00 $30.00 $40.00 $35.00 $40.00 $35.00 $35.00 $35.00 $35.00 $40.00
Credit Card yes yes yes yes yes yes yes yes yes yes
Pets Allowed yes yes. yes yes yes yes yes yes yes yes
Pet Deposit 300 n/r 225-375 350-500 400-500 150-300 200-300 400 300-500 400 300-600
Sec. Deposit 300-1500 300-400 275 275-325 300 100 250-400 199 99 225-375
W/D included Yes yes yes yes Only In Select Units Only Select Units no no no no
Covered Parking no no no yes yes yes yes yes yes yes
Garage Detached yes yes yes yes yes yes yes yes yes
Cable Yes yes yes yes yes yes yes yes yes yes
Tennis Courts no no yes no no no no yes yes yes
# of pools 1 1 2 1 1 1 1 1 2 1
Weight Room yes yes yes yes yes yes yes yes yes yes
Jacuzzi yes yes 2 1 1 1 1 1 2 1
Ceiling Fans yes yes yes yes yes yes yes yes yes yes
Microwaves yes yes yes yes yes yes yes yes yes yes
Mini Blinds yes yes yes yes yes yes yes yes yes yes
FF Freezer yes yes yes yes yes yes yes yes yes yes
Icemakers yes no yes yes yes yes yes yes yes yes
Fireplaces yes yes yes no yes yes yes yes yes yes
Access Gates no no yes yes yes no no yes yes yes
Alarm in Unit Prewired no yes no yes yes no yes no yes
Door to Door no yes no no no no no no no no
Aerobics/Kick Box no no no no no no no no no no
Movie Room no yes yes yes yes yes no yes yes yes
Computer Library yes yes yes yes yes yes yes yes yes yes
Indoor Basketball no no no no no no no no no no
Water Charge yes yes yes no yes yes yes yes yes yes
MARKET SURVEY
Courtney Downs
February-06
(Concessions reduced rates)

PROPERTY: Courtney Downs Brookside Village Carriage Place Coyote Ranch Windsor at Meridian Pinnacle @ the Creek Greenbriar@Saddle Rock Dove Valley Cherrywood Village Reserve@South Creek
PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF
Efficiency
Efficiency
1B1B (A) 830 704 1.18 850 812 1.05 1030 776 1.33 855 779 1.10 640 627 1.02 620 685 0.91 785 707 1.11 795 768 1.04 850 707 1.20 795 763 1.04
1B1B (B) 895 808 1.11 975 815 1.20 1065 785 1.36 955 853 1.12 645 701 0.92 660 705 0.94 880 853 1.03 825 842 0.98
1B1B w/study 935 910 1.03 740 811 0.91 730 760 0.96
1B
1B
1B w/loft
1B1B w/study 835 956 0.87 910 1051 0.87
2B2B (E) 1,130 977 1.16 1140 1130 1.01 1265 1141 1.11 1160 1105 1.05 1110 1044 1.06 930 1120 0.83 1075 1033 1.04 1040 1115 0.93 1110 1033 1.07 995 1037 0.96
2B2B (F) 1,150 1030 1.12 1155 1144 1.01 1460 1237 1.18 1250 1192 1.05 1440 1196 1.20 1195 1093 1.09 1090 12220 0.09 1190 1093 1.09
2B2B (G) 1,150 1030 1.12 1030 1180 0.87
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,235 1140 1.08 1600 1485 1.08 1265 1141 1.11 1350 1398 0.97 1510 1330 1.14 995 1230 0.81 1425 1235 1.15 1270 1356 0.94 1375 1235 1.11 1195 1257 0.95
3B2B 1645 1414 1.16

% occ /leased 87% 92% 94% 94% 94% 92% 93% 93% 0% 0% 87% 88% 93% 94% 96% 95% 90% 93% 93% 97%
Avg PSF 1.11 1.07 1.21 1.06 1.00 0.88 1.09 0.79 1.12 0.98
Avg Rents $1,046 $1,144 $1,288 $1,114 $994 $808 $1,072 $1,004 $1,131 $995
/ Avail)
Units(Total 342 34 304 9 331 11 507 26 653 216 32 292 18 312 17 360 41 0 168 11
Rates Special: 1-4 months off selected units. Special: 1-3 months off selected units. Special: 1 to 2 months off market. Special: 1-4 months off market. Special: Unknown Special: No specials Special: $300 off 1st mo rent Special:1-3 Months free off of Market Special: 3 Months off of market Special: Look and lease is $125 off select units.
reflect these rates: $625 1/1 $725 2/2 $985 3/2 $900-1/1 $990-2/2 $1650-3/2 $797-1/1 $1011-2/2 $680-1/1 $815-2/2 $685 1/1 $805 2/2 $1310 3/2 $670-1/1 $585-1/1 $850-2/2 $650-1/1 $860-2/2 $626 1/1 $800 2/2 $1275 3/2 $750 2/2 $925 3/2
specials: $1225-3/2 special were pulled off the internet $765-2/2 $1022-3/2 $1275-3/2 $1050-3/2
$77 off 1/1 $353 off 2/2 due to property will not give info. $150-$200 off 1/1
$200-$225 off 2/2 $300 off 3/2 Look and lease $250 off 1st full month
Ren: $25 to $50 increase Ren: Free carpet cleans with renewal. Ren.: Corporate sets all renewal prices. Ren.: Increase +25 to +50 Ren: Info not avail per corporate Ren:Per corporate Ren: $20 to $40 icrease pending month renewal Ren: $80 increas for 13 month lease Ren: Average $15 to $20 increase. Ren: Increase is $10-$25