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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Dec 2007

ASSETS

Cash
Operating Cash 82,518.64
Money Market 0.00
Total Cash $82,518.64

OTHER ASSETS
Accounts Receivable 342.88
Prepaid Expenses 2,613.19
Tax Escrow 255,613.86
Replacement Reserves 48,427.04
Capital / Repair Escrow 200,000.00
Total Other Assets 506,996.97

Total ASSETS 589,515.61

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 176,273.32
Other Accounts Payable 826,437.05
Accrued Taxes 362,261.61
Prepaid Rent 20,048.63
Security Deposits 38,506.72
Notes Payable 2,052.90
Total Liabilities 1,425,580.23

CAPITAL

Owners Equity 100.00
Retained Earnings (836,164.62)
Total Capital (836,064.62)

Total LIABILITIES & CAPITAL 589,515.61
USA Courtney Downs LeaseCo, LLC
Budget Comparison
Books = Accrual
For the period ending December 31, 2007

MTD MTD YTD YTD
Account Actual Budget $ Variance MTD Variance Comment Actual Budget
Revenue
Market Rent 294,410.00 347,440.00 (53,030.00) Concessions are no longer being 3,554,650.00 4,209,210.00
offered, market rents adjusted to
reflect the lower rents.
Loss / Gain to Lease 4,439.00 0.00 4,439.00 Actual reflects variance in market rents 340,691.00 0.00
vs lease rents which include
concessions.
Gross Potential Rent 298,849.00 347,440.00 (48,591.00) 3,895,341.00 4,209,210.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00
Residential Rent 0.00 0.00 0.00 0.00 0.00
Vacancy Loss (11,315.35) (30,525.35) 19,210.00 Our vacancy was 5% higher then (243,165.38) (325,479.64)
budgeted.
Upfront Rent Concessions (6,526.71) (435.00) (6,091.71) Includes up front concessions offered (45,759.53) (59,160.00)
as look and lease special to be
competetive with market. Two weeks
to month free offered.
Corporate Discount 0.00 0.00 0.00 0.00 0.00
Delinquent Rent 0.00 0.00 0.00 0.00 0.00
Adjustments & W/O (8,250.48) (681.96) (7,568.52) Loss is due to one skip who left owing (26,761.56) (7,841.82)
rent and damages at move out.
Includes late charges and concession
bill back.
Model Units (1,980.00) (1,625.00) (355.00) Market rent higher than budgeted. (23,760.00) (19,500.00)
Courtesy Officer Apt. 0.00 0.00 0.00 0.00 0.00
Employee Apartment (1,934.80) (2,050.00) 115.20 (21,844.60) (24,600.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,160.00) (900.00) (260.00) (14,097.85) (10,800.00)
Lease Term Concessions (12,998.29) (39,120.21) 26,121.92 We have been able to reduce the (538,987.89) (632,942.99)
amount of concessions at turnover.
We have also been renewing lease
with fewer concessions.
Homeowner's Assn Dues Income 0.00 0.00 0.00 0.00 0.00
Homeowner Dues Paid 0.00 0.00 0.00 0.00 0.00
Model Units 0.00 0.00 0.00 0.00 0.00
Lease Contract Difference 0.00 0.00 0.00 0.00 0.00
Total Rental Income $254,683.37 $272,102.48 $(17,419.11) $2,980,964.19 $3,128,885.55

Laundry Income 0.00 0.00 0.00 0.00 0.00
Vending Income 0.00 68.00 (68.00) 0.00 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 1,344.87 1,650.00 (305.13) Collected fewer late fee this month due 21,364.47 19,800.00
to residents paying on time.
Month to Month Premium 955.00 200.00 755.00 Five month to month fees collected 10,159.25 2,400.00
versus two budgeted.
Storage Fees 1,062.09 960.00 102.09 11,333.24 11,520.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00
Application Fees 1,410.00 650.00 760.00 28 applications fees collected versus 17,929.90 10,250.00
19 budgeted.
Termination Fees & Damages 236.00 1,000.00 (764.00) Fewer term fees collected this month, 14,108.82 12,000.00
adjusted two concession bill backs that
were coded incorrectly.
Miscellaneous Income 960.86 1,160.00 (199.14) Collected 21 utility transfer fees, and 8,254.64 13,920.00
11 credit card convenience fees.
Renters Insurance 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 3,488.53 0.00
Pet Rents & Fees 3,272.58 2,456.00 816.58 Collection of $20 pet rent, includes 39,970.57 29,472.00
several NR pet fees.
Tower Rent 0.00 0.00 0.00 0.00 0.00
Asset Management Fee 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00
Garage Income 7,201.90 6,650.00 551.90 Higher occupancy. Garage fee is $90 82,329.81 79,800.00
per month.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 3,321.55 1,006.00 2,315.55 $3,105.91 commissions collected as 8,063.47 12,072.00
well as $215.64 4th Qtr Cable income.

HOA Contributions Developer 0.00 0.00 0.00 0.00 0.00
Developer HOA Dues 0.00 0.00 0.00 0.00 0.00
Forfeited Deposits 601.00 90.00 511.00 NR pet fees collected. 6,012.05 1,080.00
Developer Contributions 0.00 0.00 0.00 0.00 0.00
Interest Income Other 0.00 0.00 0.00 0.00 0.00
Thunder Income 0.00 0.00 0.00 0.00 0.00
Administration Fee 3,150.00 2,000.00 1,150.00 Collected 24 administration fees 35,750.00 33,800.00
versus 13 budgeted.
Move-Out Charges 2,977.91 3,330.00 (352.09) Fewer charges required on move outs. 29,285.61 48,840.00

Short Term Lease Fees 629.03 300.00 329.03 Received four short term fees versus 6,677.32 3,600.00
one budgeted.
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 425.00 (425.00) No corporate units at this time. 475.41 5,100.00
Corporate Units - expense 0.00 (1,750.00) 1,750.00 Bills being paid under guest suite 0.00 (21,000.00)
expense.
Deferred Revenue 0.00 0.00 0.00 0.00 0.00
HOA Developer Contributions 0.00 0.00 0.00 0.00 0.00
Acquisition Fees 0.00 0.00 0.00 0.00 0.00
Income - Rental 0.00 0.00 0.00 0.00 0.00
Income - C.A.M. 0.00 0.00 0.00 0.00 0.00
Income - Insurance 0.00 0.00 0.00 0.00 0.00
Income - Taxes 0.00 0.00 0.00 0.00 0.00
Income - Interest 0.00 0.00 0.00 0.00 0.00
Income - Other 0.00 0.00 0.00 0.00 0.00
Income - Condo Sales 0.00 0.00 0.00 0.00 0.00
Total Other Income 27,122.79 20,195.00 6,927.79 295,203.09 263,470.00

Total Revenue $281,806.16 $292,297.48 $(10,491.32) $3,276,167.28 $3,392,355.55

Expense
Managers Salary 11,504.05 12,613.82 1,109.77 Fewer hours reported this month. 138,108.82 147,761.88
Salaries 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 11,142.47 11,784.65 642.18 151,303.51 138,048.78
Salary - Administrative 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 3,458.93 5,170.30 1,711.37 We paid fewer bonuses then budgeted. 48,278.35 39,026.28

Payroll Taxes 0.00 0.00 0.00 0.00 0.00
Group Insurance 1,490.46 778.00 (712.46) We have more participants for our 20,321.45 9,336.00
insurance program then what was
anticipated in the budget.
Disability Insurance 0.00 0.00 0.00 0.00 0.00
401k Match 0.00 0.00 0.00 0.00 0.00
Contract Labor 288.42 0.00 (288.42) Used temp labor to cover for open 5,720.12 0.00
office positions.
Workers Comp 0.00 0.00 0.00 0.00 0.00
Total Salary Expense 27,884.33 30,346.77 2,462.44 363,732.25 334,172.94

Office Operations & Supplies (229.16) 1,000.00 1,229.16 We received a refund check of 7,285.67 12,000.00
$349.91 from HSBC.
Telephones 847.55 1,100.00 252.45 9,059.18 13,200.00
Answering Svc. & Pagers 69.00 100.00 31.00 1,175.40 1,200.00
Postage & Delivery 167.93 170.00 2.07 2,781.78 2,040.00
Patrol Services 0.00 0.00 0.00 0.00 0.00
Membership Dues 0.00 0.00 0.00 0.00 0.00
Publications & Subscriptions 0.00 90.00 90.00 1,198.82 1,080.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00
Employee Training 1,320.93 115.00 (1,205.93) Includes cost for holiday party, two 4,963.64 1,380.00
months Grace Hill Training, pre-
employment screening and annual
Drug Free Workplace fee.
Furniture Rental 0.00 0.00 0.00 0.00 0.00
Car Expenses 0.00 25.00 25.00 385.44 300.00
Permits & Fees 0.00 25.00 25.00 0.00 300.00
Credit Checks 450.35 390.00 (60.35) 5,193.51 6,150.00
Guest Suite Expense 499.77 650.00 150.23 6,419.51 7,800.00
Parking Cost 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,126.37 3,665.00 538.63 38,462.95 45,450.00

Advertising & Promotions 2,241.00 2,600.00 359.00 Reflects current advertising costs. 42,030.54 36,900.00
Resident Promotions 367.33 798.00 430.67 Spent less on resident party this 5,113.61 9,576.00
month.
Locators 1,560.43 1,446.20 (114.23) 15,503.18 24,440.78
Resident Referrals 0.00 1,550.00 1,550.00 No referral fees paid this month 5,100.00 26,195.00
Total Advertising Expense 4,168.76 6,394.20 2,225.44 67,747.33 97,111.78

Paint & Drywall 52.36 427.50 375.14 2,456.88 7,852.50
Contract Cleaning Svcs. 2,980.00 250.00 (2,730.00) We had an error in budgeting. 34,565.00 3,000.00
Contract cleaned 32 units plus weekly
cost to clean the clubroom.
Carpet Cleaning & Repairs 689.00 1,425.00 736.00 We had fewer carpet cleans than 18,076.00 26,175.00
anticipated.
Window Coverings 0.00 100.00 100.00 3,075.19 1,200.00

Vinyl & Tile Repairs 0.00 0.00 0.00 0.00 0.00
Lock & Keys 0.00 50.00 50.00 670.00 600.00
Counter & Tub Resurfacing 935.93 416.67 (519.26) Repair of backsplashes for the kitchen 2,072.57 5,000.04
and bathroom in unit 9210.
Other Redecorating 0.00 25.00 25.00 0.00 300.00
Cleaning Supplies 77.86 133.33 55.47 1,835.87 1,599.96
Total Make Ready Expense 4,735.15 2,827.50 (1,907.65) 62,751.51 45,727.50

General Maintenance & Supplies 111.82 700.00 588.18 Fewer expenses this month. 7,449.17 8,400.00
HVAC Parts & Repairs 0.00 100.00 100.00 1,700.38 1,200.00
Plumbing Parts & Repairs 42.41 140.00 97.59 1,342.07 5,055.00
Electric Parts & Repairs 6.07 150.00 143.93 507.57 1,800.00
Roof & Gutter Repairs 0.00 0.00 0.00 270.00 0.00
Pools & Fountains 0.00 450.00 450.00 No ordering of spa supplies this month. 4,595.34 5,400.00

Gates & Entrances 0.00 0.00 0.00 125.00 0.00
Glass & Screens 56.38 160.00 103.62 1,500.53 1,920.00
Appliance Parts & Repairs 104.00 450.00 346.00 Fewer supplies required this month. 3,402.35 5,850.00
Hardware 103.29 75.00 (28.29) 1,286.32 900.00
Exterior Painting 0.00 25.00 25.00 355.34 300.00
Uniforms 0.00 0.00 0.00 502.73 2,000.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 0.00 175.00 175.00 12,645.50 10,395.00
Uninsured Losses 0.00 0.00 0.00 0.00 0.00
Locks & Keys 0.00 0.00 0.00 0.00 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 423.97 2,425.00 2,001.03 35,682.30 43,220.00

Landscape & Grounds 675.00 0.00 (675.00) Rock and feather grass installed 24,373.38 30,000.00
around the fountain and a repair to the
irrigation line. Favorable YTD.
Trash Removal 376.80 510.00 133.20 7,820.66 6,120.00
Pest Control 172.00 75.24 (96.76) 1,559.26 902.88
Security Patrols 0.00 0.00 0.00 0.00 0.00
Window Cleaning Svc. 0.00 0.00 0.00 0.00 0.00
Interior Cleaning Svc. 0.00 0.00 0.00 0.00 0.00
Cable Television 0.00 0.00 0.00 0.00 0.00
Snow Removal 443.07 1,250.00 806.93 Ice melt for snow and one snow 16,813.49 5,850.00
removal on 12/09/2007.
Total Service Expense 1,666.87 1,835.24 168.37 50,566.79 42,872.88

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

Management Fees 11,263.62 11,691.90 428.28 Based on % of collection. 133,888.77 135,694.22
Asset Management Fees 1,000.00 1,000.00 0.00 12,000.00 12,000.00
Investor Administration Fee 3,200.00 3,300.00 100.00 38,750.00 39,600.00
Legal Fees 664.80 1,300.00 635.20 Two evictions filed versus five 3,406.50 15,600.00
budgeted for.
Accounting Fees 0.00 0.00 0.00 0.00 0.00
Postage & Delivery 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 9.58 9.58 0.01 114.96
Partnership Insurance 0.00 0.00 0.00 0.00 0.00
Other Administrative Expenses 0.00 0.00 0.00 0.00 0.00
Travel Expense 0.00 0.00 0.00 572.67 0.00
Employee Activities 0.00 0.00 0.00 123.71 0.00
Printing 0.00 0.00 0.00 0.00 0.00
Computer Consulting 0.00 0.00 0.00 0.00 0.00
Computer Expense 0.00 0.00 0.00 2,550.30 5,124.00
Bank Charges 0.00 0.00 0.00 0.00 0.00
Development Cost 0.00 0.00 0.00 0.00 0.00
Total Admin. Expense 16,128.42 17,301.48 1,173.06 191,291.96 208,133.18
Electricity 3,041.61 3,340.00 298.39 30,886.61 40,080.00
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00
Natural Gas 2,405.18 2,565.00 159.82 19,988.40 30,780.00
Water & Sewer 13,178.18 8,965.00 (4,213.18) Due to increase of water charges when 155,742.88 107,580.00
only budgeted for a 3% increase.

Water & Sewer - Resident Reimb (11,246.52) (6,275.50) 4,971.02 Collected 85% of water billed. (107,939.51) (75,306.00)
Favorable variance due to increase in
water rates beyond budget.
Water - irrigation 0.00 0.00 0.00 26,038.84 23,500.00
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,186.15) (2,011.00) 175.15 (27,631.57) (24,132.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 1,364.05 880.44 (483.61) Vacant electric bills higher than 13,075.56 9,387.78
anticipated due to colder weather.
Utility - Vacant Gas 742.87 586.96 (155.91) 5,709.57 6,258.52
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 7,299.22 8,050.90 751.68 115,870.78 118,148.30

Management Fees 0.00 0.00 0.00 0.00 0.00
Management Fees-MRLL 0.00 0.00 0.00 0.00 0.00
Property Legal Fees 0.00 0.00 0.00 0.00 0.00
Credit Card Fees 0.00 0.00 0.00 1,146.87 0.00
Bank Charges 0.00 0.00 0.00 0.00 0.00
Bank Adjustments 0.00 0.00 0.00 0.00 0.00
Other Professional Fees 0.00 0.00 0.00 0.00 0.00
Late Charges 0.00 0.00 0.00 0.00 0.00
HOA Assessment Fees 0.00 0.00 0.00 0.00 0.00
Contributions 0.00 0.00 0.00 0.00 0.00
Fiduciary Fees 0.00 0.00 0.00 0.00 0.00
Custodial Fees 0.00 0.00 0.00 0.00 0.00
Thunder Expense 0.00 0.00 0.00 0.00 0.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00
Total Management Expense 0.00 0.00 0.00 1,146.87 0.00

Property Taxes 48,259.35 27,616.50 (20,642.85) Accrue monthly property tax as well as 362,261.61 331,398.00
2007 tax true up.
Franchise Tax 0.00 0.00 0.00 0.00 0.00
Insurance 6,117.55 5,073.00 (1,044.55) Includes pollution policy. 101,180.39 60,876.00
Tax Consultants 0.00 49.88 49.88 600.00 598.56
MIP 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 54,376.90 32,739.38 (21,637.52) 464,042.00 392,872.56
Total Operating Expenses 119,809.99 105,585.47 (14,224.52) 1,391,294.74 1,327,709.14
NET OPERATING INCOME 161,996.17 186,712.01 (24,715.84) 1,884,872.54 2,064,646.41

Base Rent - Interest Payment 106,586.67 106,586.67 0.00 1,279,040.04 1,279,040.04
Base Rent - Principal Payment 0.00 0.00 0.00 0.00 0.00
Stated Rent 86,666.71 86,666.67 (0.04) 1,040,000.52 1,040,000.04
Office Rent 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.38 193,253.34 (0.04) 2,319,040.56 2,319,040.08

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

Partnership Legal Fees 0.00 170.00 170.00 0.00 2,040.00
Partnership Accounting Fees 0.00 170.00 170.00 365.00 2,040.00
Partnership Travel 913.46 75.00 (838.46) 1,993.92 900.00
Partnership - Meals 144.16 0.00 (144.16) 889.96 0.00
Partnership Fees - Other 0.00 0.00 0.00 0.00 0.00
Partnership Expense 0.00 0.00 0.00 0.00 0.00
Due Diligence Cost 0.00 0.00 0.00 0.00 0.00
Dead Deal Cost 0.00 0.00 0.00 0.00 0.00
Partnership Exp- Leaseup Costs 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 1,057.62 415.00 (642.62) 3,248.88 4,980.00

Exterior Rehab 0.00 0.00 0.00 4,533.00 18,946.00
Interior Rehab 0.00 0.00 0.00 0.00 3,250.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 8,522.14 4,900.00 (3,622.14) Eight carpets needed replacement, 71,146.85 58,800.00
versus four budgeted.
Refrigerators 0.00 0.00 0.00 1,227.02 600.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 263.01 0.00 (263.01) One dryer needed replacing. 263.01 0.00
Fire Alarm Replacement 0.00 0.00 0.00 0.00 0.00
Other Capital Improvements 540.48 0.00 (540.48) Two windows replaced. 14,731.97 3,713.00
Boiler Replacement 0.00 0.00 0.00 0.00 0.00
Roof Replacement 0.00 0.00 0.00 0.00 0.00
Total Capital Expenses 9,325.63 4,900.00 (4,425.63) 91,901.85 85,309.00
Casualty Losses 0.00 0.00 0.00 0.00 0.00
Casualty Recovery 0.00 0.00 0.00 0.00 0.00
Total Casualty Loss 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) (41,640.46) (11,856.33) (29,784.13) (529,318.75) (344,682.67)

Rental Guarantee 0.00 0.00 0.00 4,054.35 0.00
(41,640.46) (11,856.33) (29,784.13) (525,264.40) (344,682.67)
Annual
$ Variance Budget YTD Variance Comment

(654,560.00) 4,209,210.00

340,691.00 0.00

(313,869.00) 4,209,210.00
0.00 0.00
0.00 0.00
82,314.26 (325,479.64)

13,400.47 (59,160.00)

0.00 0.00
0.00 0.00
(18,919.74) (7,841.82)

(4,260.00) (19,500.00)
0.00 0.00
2,755.40 (24,600.00)
0.00 0.00
(3,297.85) (10,800.00)
93,955.10 (632,942.99)

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
$(147,921.36) $3,128,885.55

0.00 0.00
(816.00) 816.00
0.00 0.00
1,564.47 19,800.00

7,759.25 2,400.00

(186.76) 11,520.00
0.00 0.00
7,679.90 10,250.00

2,108.82 12,000.00

(5,665.36) 13,920.00

0.00 0.00
3,488.53 0.00
10,498.57 29,472.00

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
2,529.81 79,800.00

0.00 0.00
(4,008.53) 12,072.00

0.00 0.00
0.00 0.00
4,932.05 1,080.00
0.00 0.00
0.00 0.00
0.00 0.00
1,950.00 33,800.00

(19,554.39) 48,840.00

3,077.32 3,600.00

0.00 0.00
(4,624.59) 5,100.00
21,000.00 (21,000.00)

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
31,733.09 263,470.00

$(116,188.27) $3,392,355.55

9,653.06 147,761.88
0.00 0.00
(13,254.73) 138,048.78
0.00 0.00
(9,252.07) 39,026.28

0.00 0.00
(10,985.45) 9,336.00

0.00 0.00
0.00 0.00
(5,720.12) 0.00

0.00 0.00
(29,559.31) 334,172.94

4,714.33 12,000.00

4,140.82 13,200.00
24.60 1,200.00
(741.78) 2,040.00
0.00 0.00
0.00 0.00
(118.82) 1,080.00
0.00 0.00
(3,583.64) 1,380.00

0.00 0.00
(85.44) 300.00
300.00 300.00
956.49 6,150.00
1,380.49 7,800.00
0.00 0.00
6,987.05 45,450.00

(5,130.54) 36,900.00
4,462.39 9,576.00

8,937.60 24,440.78
21,095.00 26,195.00
29,364.45 97,111.78

5,395.62 7,852.50
(31,565.00) 3,000.00

8,099.00 26,175.00

(1,875.19) 1,200.00

0.00 0.00
(70.00) 600.00
2,927.47 5,000.04

300.00 300.00
(235.91) 1,599.96
(17,024.01) 45,727.50

950.83 8,400.00
(500.38) 1,200.00
3,712.93 5,055.00
1,292.43 1,800.00
(270.00) 0.00
804.66 5,400.00

(125.00) 0.00
419.47 1,920.00
2,447.65 5,850.00
(386.32) 900.00
(55.34) 300.00
1,497.27 2,000.00
0.00 0.00
(2,250.50) 10,395.00
0.00 0.00
0.00 0.00
0.00 0.00
7,537.70 43,220.00

5,626.62 30,000.00

(1,700.66) 6,120.00
(656.38) 902.88
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
(10,963.49) 5,850.00

(7,693.91) 42,872.88

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

1,805.45 135,694.22
0.00 12,000.00
850.00 39,600.00
12,193.50 15,600.00

0.00 0.00
0.00 0.00
114.95 114.96
0.00 0.00
0.00 0.00
(572.67) 0.00
(123.71) 0.00
0.00 0.00
0.00 0.00
2,573.70 5,124.00
0.00 0.00
0.00 0.00
16,841.22 208,133.18
9,193.39 40,080.00
0.00 0.00
10,791.60 30,780.00
(48,162.88) 107,580.00

32,633.51 (75,306.00)

(2,538.84) 23,500.00
0.00 0.00
3,499.57 (24,132.00)
0.00 0.00
(3,687.78) 9,387.78

548.95 6,258.52
0.00 0.00
2,277.52 118,148.30

0.00 0.00
0.00 0.00
0.00 0.00
(1,146.87) 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
(1,146.87) 0.00

(30,863.61) 331,398.00

0.00 0.00
(40,304.39) 60,876.00
(1.44) 598.56
0.00 0.00
(71,169.44) 392,872.56
(63,585.60) 1,327,709.14
(179,773.87) 2,064,646.41

0.00 1,279,040.04
0.00 0.00
(0.48) 1,040,000.04
0.00 0.00
(0.48) 2,319,040.08

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

2,040.00 2,040.00
1,675.00 2,040.00
(1,093.92) 900.00
(889.96) 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
1,731.12 4,980.00

14,413.00 18,946.00
3,250.00 3,250.00
0.00 0.00
(12,346.85) 58,800.00

(627.02) 600.00
0.00 0.00
(263.01) 0.00
0.00 0.00
(11,018.97) 3,713.00
0.00 0.00
0.00 0.00
(6,592.85) 85,309.00
0.00 0.00
0.00 0.00
0.00 0.00
(184,636.08) (344,682.67)

4,054.35 0.00
(180,581.73) (344,682.67)
USA Courtney Downs LeaseCo, LLC
Cash Flow (Actual + Budget)
Books = Accrual
For the 12 Months Ending Dec 2007

Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007 12 Month $/ $/ Dec 2006 12 Month $/ $/
Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Total Unit Sq. Ft. Reforecast Total Unit Sq. Ft.
342 313,778 342 313,778
Revenue
Gross Potential Rent 352,560 345,950 343,190 338,114 331,407 327,521 321,211 314,121 309,900 307,861 304,657 298,849 3,895,341 11,389.89 12.41 364,160 4,874,409 14,252.66 15.53
- Vacancy (34,193) (31,453) (33,657) (26,399) (19,217) (11,745) (8,517) (14,496) (17,176) (16,540) (18,457) (11,315) (243,165) (711.01) (0.77) (43,000) (316,649) (925.88) (1.01)
- Concessions & Disc. (77,240) (77,177) (74,811) (68,736) (56,781) (52,476) (45,332) (33,435) (26,860) (27,853) (24,522) (19,525) (584,747) (1,709.79) (1.86) (80,000) (710,506) (2,077.50) (2.26)
- Other Write-offs & Adj. (5,251) (7,154) (5,738) (5,449) (6,551) (6,386) (5,803) (8,688) (5,798) (7,418) (8,902) (13,325) (86,464) (252.82) (0.28) (6,085) (115,029) (336.34) (0.37)
Total Rental Income 235,876 230,165 228,984 237,529 248,858 256,914 261,560 257,502 260,065 256,050 252,776 254,683 2,980,964 8,716.27 9.50 235,075 3,732,225 10,912.94 11.89

Other Income 27,580 21,616 22,944 22,832 23,203 22,482 19,521 31,751 27,802 23,451 24,899 27,123 295,203 863.17 0.94 19,000 367,089 1,073.36 1.17
Total Revenue 263,457 251,781 251,928 260,361 272,061 279,396 281,081 289,253 287,867 279,501 277,675 281,806 3,276,167 9,579.44 10.44 254,075 4,099,313 11,986.30 13.06

Operating Expenses
Salary Expense 33,611 20,391 30,933 32,195 31,382 31,663 40,842 22,827 31,229 29,995 30,781 27,884 363,732 1,063.54 1.16 37,759 461,221 1,348.60 1.47
Operating Expense 2,710 2,821 2,230 3,652 3,228 3,040 5,519 2,088 3,595 1,911 4,543 3,126 38,463 112.46 0.12 3,030 49,275 144.08 0.16
Advertising Expense 6,159 5,921 9,117 4,298 6,292 4,400 4,564 7,230 3,448 6,521 5,629 4,169 67,747 198.09 0.22 6,885 84,628 247.45 0.27
Make Ready Expense 3,805 2,722 3,636 6,647 4,645 6,951 5,843 4,190 7,769 6,636 5,174 4,735 62,752 183.48 0.20 7,500 80,344 234.92 0.26
Maintenance Expense 2,027 1,541 2,485 2,639 1,612 1,405 3,289 2,097 2,185 11,250 4,727 424 35,682 104.33 0.11 2,295 43,233 126.41 0.14
Service Expense 6,403 10,329 1,917 3,299 5,923 4,883 3,010 3,137 3,150 3,267 3,583 1,667 50,567 147.86 0.16 2,395 58,360 170.64 0.19
Administrative Expense 15,368 15,798 15,451 15,440 14,701 16,179 18,825 16,316 16,541 14,854 15,690 16,128 191,292 559.33 0.61 14,969 238,639 697.78 0.76
Utility Expense 9,370 15,941 12,794 6,685 9,382 12,548 12,990 1,571 8,672 10,645 7,972 7,299 115,871 338.80 0.37 10,900 142,381 416.32 0.45
Credit Card Fees 0 0 0 0 0 0 0 0 0 945 202 0 1,147 3.35 0.00
Taxes & Insurance 37,910 33,542 33,143 33,465 34,552 34,243 64,955 34,433 34,062 34,680 34,680 54,377 464,042 1,356.85 1.48 0 465,400 1,360.82 1.48
37,237 37,237 108.88 0.12
Total Operating Exp. 117,362 109,007 111,705 108,319 111,718 115,314 159,837 93,888 110,652 120,703 112,980 119,810 1,391,295 4,068.11 4.43
Net Operating Income 146,094 142,774 140,223 152,043 160,343 164,082 121,244 195,364 177,215 158,798 164,695 161,996 1,884,873 5,511.32 6.01 122,970 1,660,718 4,855.90 5.29
131,106 2,438,595 7,130.40 7.77
Rent Expense 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 2,319,041 6,780.82 7.39
Partnership Expense 0 0 0 0 365 0 690 273 735 0 129 1,058 3,249 9.50 0.01 193,254 197,699 578.07 0.63
Capital Expense 1,601 4,113 10,791 8,376 13,906 2,091 4,426 11,143 8,759 6,129 11,240 9,326 91,902 268.72 0.29 0 112,736 329.64 0.36
3,300 3,300 9.65 0.01
Cash Flow Frm Operations (48,760) (54,592) (63,822) (49,586) (47,181) (31,262) (77,125) (9,305) (25,533) (40,585) (39,927) (41,640) (529,319) (1,547.72) (1.69)
(65,449) 2,124,861 6,213.04 6.77
Rental Guarantees 7,543 (3,489) 0 0 0 0 0 0 0 0 0 0 0
250,000 250,000
Balance Sheet Adjustments
Cash - Non Operating Accounts 0 0 4,562 4,374 2,739 0 46,036 0 0 0 0 0 57,711
Accounts Receivable (4,571) (717) 131,540 (134,406) 2,415 (1,420) 8,565 8,538 (43) 321 1,244 (2,018) 9,447 0 8,672
Prepaid Assets (7,749) 3,588 6,328 (4,460) 523 337 10,797 5,633 5,633 5,139 5,880 3,267 34,915 0 44,062
Escrow Deposits (30,394) (34,568) (34,568) (34,822) 322,388 (35,800) (35,800) (35,800) (35,800) (35,800) 14,016 (35,800) (12,750) 0 (34,534)
(2,951) (2,951)
Cash Increase (Decreae) From Assets (42,714) (31,697) 107,861 (169,314) 328,065 (36,884) 29,597 (21,630) (30,210) (30,340) 21,140 (34,552) 89,322
(2,951) 15,249
Accounts Payable 36,334 64,458 (135,734) 185,452 117,385 41,375 118,141 24,714 18,691 37,197 6,339 67,513 581,863
Accrued Expenses 41,830 25,859 110,449 36,480 (411,342) 29,291 (51,145) (11,371) 25,600 32,375 21,925 48,259 (101,791) 0 (31,606)
Other Payables (1,829) (1,300) (1,433) (4,374) (2,739) (793) (1,500) (2,763) (2,538) 1,250 (1,824) 638 (19,204) 0 (20,390)
Mortgages Payable 0 (11,458) (5,571) 15,448 1,581 0 12,262 0 (11,933) 0 0 2,053 2,381 0 4,434
0 0
Cash Increase (Decrease) From Liab. 76,334 77,559 (32,289) 233,006 (295,115) 69,872 77,757 10,580 29,821 70,821 26,440 118,463 463,250
0 (47,562)

NET CASH FLOW (7,597) (12,219) 11,751 14,106 (14,231) 1,726 30,229 (20,355) (25,922) (103) 7,653 42,271 23,253
CUMM. NET CASH FLOW 47,614 35,395 47,146 61,251 47,020 48,746 78,975 58,620 32,698 32,595 40,248 82,519 181,601 2,342,548
55210.94 181,601

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$-

$(100,000)

$(200,000)

$(300,000)
Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007

Row 60 Row 61

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
W31: administrator:
assume insurance increases by 50%

W48: administrator:
replacement reserve + reduction in tax escrow due to overage
Courtney Downs Apartments
December 07
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 25 INCOME THIS MONTH: $281,806.00
NUMBER OF MOVE OUTS: 23 INCOME LAST MONTH: $277,675.00
NET FOR THE MONTH: 2 DIFFERENCE: $4,131.00

TOTAL # GARAGES 120
# GARAGES OCCUPIED 116
OCCUPIED/LEASED %: 93.57%/95.32% GARAGES OCCUPIED % 97%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 0
APARTMENT GUIDE 0 0 * Too expensive. 5
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 0 0 * Just started looking. 11
BLUE BOOK 18 4 * Waiting for Home to Sell 0
RENT.NET 0 0 * Current Lease to Expire 0
LIVES IN AREA 22 8 * Needs Ground Floor 3
RESIDENT REFERRAL 3 1 * Moved Elsewhere 6
LOCATORS 9 2 * Will return with roommate or spouse 9
RENT.COM 0 0 * Realtor Looking for Client 0
WALK-IN 0 0 * Undecided 7
SIGNAGE 8 4 * Employment pending 0
WORD OF MOUTH 0 0 * House sale pending 0
* Rented at Competitor 0
TOTALS 60 19 TOTALS 41

CLOSING RATIO: 32%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Took lunch with updated special to Nextel Human Resources.
* Took lunch to locators with updates on specials and prices..
* Took flyers to Sky Ridge Hospital Human Resources.
* Took brochures and specials to Direct T.V.
* Updated all internet ads with new pricing and specials for the month of December.
* Brochures and lunch were taken to First Data Human Resources.
* Met with KB sales team with options of temporary housing for new home buyers.
* Dropped off cookie basket and brochures to Wells Fargo Team.
* Dropped off doughnuts and brochures to Marriott extended stay hotels.
* Took cookie and candy bag with flyer's to Newman Homes.
* Took lunch to sales team with brochures to Richmond Homes Team.
* Took cookie and candy bag to D R Horton Homes sales center.
OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are still offering discounted rents on selected units.
This translates into one bedroom effective rents of $680, two bedrooms at $755 and three bedrooms starting at $1099.
Look and leases specials are one month with a 12 to 13 month lease.
Overall market is 94% average occ. and rental rate of $810. per month.
RESIDENT RETENTION:
We had 21 leases expiring in the month of December. Nine renewed leases with a $52 increase.
Notices received; (4) buying homes, (4) relocating out of the area (4) job change

INCIDENTS ON THE PROPERTY:
Pipe broke in bld #17 on 12/31/2007 due to freezing temperatures.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 18 REFRIGERATORS 0
COMPLETE PAINTS 8 DISHWASHERS 0
TOUCH UPS 10 WINDOWS 0
WORK ORDERS 124 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 32 32 WATER HEATERS 0
Electrical 0 19 19 ICE MAKERS 0
Punch 0 18 18 GARBAGE DISPOSALS 0
HVAC 0 7 7 MICROWAVES 0
7209, 6209, 16304, 7106, 12207,
Plumbing 0 25 25 CARPETS 8 10109, 12105, 10306.
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 15 15 TOILETS 0
Safety 0 8 8 A/C FAN MOTORS 0
Total 0 124 124 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
9210-2, 12207-2, 19111-3, 2111-1,
9207-1, 9212-1, 12208-2, 10109-2,
PLUMBING LEAKS 0 BLINDS 21 7106-2, 7209-1, 6209-2, 16304-2
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
Snow blower needs repairs or repalcement.
Air compressor is broken may be repaired or replaced.

CURRENT STAFF:

Manager Nancy Howland
Assistant Manager Carrie McMillan
Leasing Consultant Summer Wahrman
Leasing Consultant Kate Hawkins
Maintenance Supervisor Gabriel Tellez
Assistant Maintenance Russell Briley
Maintenance/ Grounds Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH:
Performed extra snow removal on property due to ice patches forming on the shady side of the bldgs.
Maintained 93% occupancy.
Collected $10,000 more in income this month than last month.
Courtney Downs
RENTAL SCHEDULE
December 07

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 28,160 725 1.03 $29,000 $348,000 725.00 1.03 $29,000 2 0 6 1 7
A1V 1BR 32 704 22,528 725 1.03 $27,520 $330,240 725.00 1.03 $27,520 0 0 0 0 0
A2 1BR 18 910 16,380 850 0.93 $15,300 $183,600 850.00 0.93 $15,300 1 0 1 1 1
B1 1BR 24 808 19,392 750 0.93 $18,000 $216,000 750.00 0.93 $18,000 2 0 3 1 4
B1V 1BR 32 808 25,856 760 0.94 $24,320 $291,840 760.00 0.94 $24,320 0 0 0 0 0
C 2BR 42 977 41,034 875 0.90 $36,750 $441,000 875.00 0.90 $36,750 3 3 4 0 4
C1 2BR 44 1,030 45,320 900 0.87 $39,600 $475,200 900.00 0.87 $39,600 3 0 5 0 8
C1V 2BR 22 1,030 22,660 925 0.90 $20,350 $244,200 925.00 0.90 $20,350 0 0 0 0 0
CV 2BR 24 977 23,448 875 0.90 $21,000 $252,000 875.00 0.90 $21,000 0 0 0 0 0
D 2BR 16 1,030 16,480 925 0.90 $14,800 $177,600 925.00 0.90 $14,800 4 0 1 0 5
DV 2BR 20 1,030 20,600 925 0.90 $18,500 $222,000 925.00 0.90 $18,500 0 0 0 0 0
E 3BR 24 1,140 27,360 1160 1.02 $27,840 $334,080 1,160.00 1.02 $27,840 2 0 3 0 5
EV 3BR 4 1,140 4,560 1160 1.02 $4,640 $55,680 1,160.00 1.02 $4,640 0 0 0 0 0

TOTAL 342 917 313,778 $870 $0.95 $297,620 $3,571,440 $870 0.95 $297,620 17 3 23 3 34
* Net of Concessions
MARKET SURVEY
Courtney Downs
December-07

Apartment Name Courtney Downs Coyote Ranch Windsor @ Meridian Pinnacle @ the Creek Dove Valley Cherrywood Village Reserve @ South Creek
Address 15849 E. Jamison Dr16363 E Freemont Ave 9875 Jefferson Pkwy 6107 S Parker Rd 7550 S Blackhawk 16950 E Carlson Dr 15611 E Jamison Dr
Phone 720-870-6114 303-693-8787 303-256-7700 303-766-2500 303-362-2000 303-805-7200 303-680-6696
Location Englewood, Co Aurora, Co Englewood, Co 80112 Centennial, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 507 653 216 312 360 168
Age of Property 5 5 7 4 6 6 6
Application Fee $50.00 $35.00 $40.00 $35.00 $40.00 $35.00 $50.00
Credit Card yes yes yes no yes no yes
Pets Allowed yes yes yes yes yes yes yes
Pet Deposit 300 n/r 300-600 150-300 $100 300-500 $400-500 300
Sec. Deposit 150 275-325 300 $300 $100.00 $200-300 100
W/D included Yes yes Only In Select Units Only Select Units no yes no
Covered Parking no yes yes yes no no no
Garage Detached yes yes yes yes yes yes
Cable Yes yes yes yes yes yes yes
Tennis Courts no no no no yes yes yes
# of pools 1 1 1 1 1 2 1
Weight Room yes yes yes yes yes yes yes
Jacuzzi yes 1 1 1 1 2 1
Ceiling Fans yes yes yes yes yes yes yes
Microwaves yes yes yes yes yes yes yes
Mini Blinds yes yes yes yes yes yes yes
FF Freezer yes yes yes yes yes yes yes
Icemakers yes yes yes yes yes yes yes
Fireplaces yes no yes yes yes yes yes
Access Gates no yes yes no yes yes yes
Alarm in Unit Prewired no yes yes yes no yes
Door to Door no no no no no no no
Aerobics/Kick Box no no no no no no no
Movie Room no yes yes yes yes yes yes
Computer Library yes yes yes yes yes yes yes
Indoor Basketball no no no no no no no
Water Charge yes no yes yes yes yes yes
MARKET SURVEY
Courtney Downs
December-07
(Concessions reduced rates)

PROPERTY: Courtney Downs Apt Coyote Ranch Windsor at Meridian Pinnacle @ the Creek 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
Efficiency
Efficiency
1B1B (A) 725 704 1.03 760 779 0.98 680 627 1.08 795 685 1.16 755 768 0.98 725 707 1.03 719 763 0.94
1B1B (B) 850 808 1.05 775 853 0.91 740 701 1.06 830 705 1.02 765 842 0.91 745 796 0.94 738 763 1.05
1B1B w/study 750 910 0.82 840 811 0.91 845 760 1.03 780 992 0.79 780 916 0.85
1B
1B
1B w/loft
1B1B w/study 820 956 0.86 1109 1051 1.06
2B2B (E) 875 977 0.90 885 1105 0.80 920 1044 0.88 1110 1120 0.99 955 1115 0.86 905 1033 0.88 819 1037 0.79
2B2B (F) 900 1030 0.87 915 1192 0.77 1060 1196 0.89 985 1220 0.81 905 1093 0.83 905 1037 1.23
2B2B (G) 925 1030 0.90 1090 1180 0.92
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,160 1140 1.02 1270 1398 0.91 1320 1330 0.99 1169 1230 0.95 1099 1356 0.81 1290 1235 1.04 909 1257 0.72
3B2B 1340 1398 0.91 1305 1235 1.04 1039 1257 1.10

% occ /leased 94 95.32% 96% 97% 0 0% 93% 95.10% 94.6% 96% 92.5% 95% 94.5% 96%
Avg PSF 1 0.94 0.88 0.95 1.03 0.86 0.94 0.97
Avg Rents 884 1114 994 808 890 1131 995
/ Avail)
Units(Total 342 40 507 21 653 216 27 312 19 360 19 0 168 18

Special: look and lease
special $150 security deposit
waived and reduced rents on Special: Reduced pricing Will not give out any Special:One month free Special: One month off 12 Special: First full months Special: One month free on a
Rates select units. for all floor plans. information. with look and lease. to 13 month lease. rent. 12 to 13 month special.
reflect these rates:
specials:

Ren.: 15% increase on all Ren: Info not avail per Ren: $60 to $85 increas Ren: Average $50 to $125 Ren: Free carpet cleaning
Ren: $50 to $75 increase. renewals. corporate Ren:Per corporate for 12 month lease increase. with 12mo.