IDLEWHEELS SENIOR MOBILE HOME PARK

IDLEWHEELS SENIOR MOBILE HOME PARK CORPORATION IS A RESIDENTIAL OWNER/OCCUPIED COMMUNITY

THE RULES PROVIDE THAT PURCHASERS OF RESIDENCES FOR RENTAL INVESTMENT PURPOSES IS PROPHIBITED

ALL PROSPECTIVE BUYERS MUST BE PRE-APPROVED

BEFORE COMMITTING TO PURCHASE A RESIDENCE

Idlewheels Senior Mobile Home Park Corporation (“Idlewheels”) is both aCalifornia corporation and a homeowners’ association (“HOA”). Idlewheels is a
corporation because it has filed articles of incorporation with the Secretary of State. Idlewheels is a HOA because it owns and operates Idlewheels Senior Mobile Home Park, which is a Common Interest Development (“CID”). CID’s areresidential developments that allow individual homeowners the use of commonproperty and facilities. By California law, all CID’s are required to be selfgoverned by a homeowners association.

Like many mobile home park HOA’s in California, Idlewheels is a stock cooperative. This means it sells shares of stock to homeowners in the park. In return, the shareholder (who can be called either a “shareholder” or a “member”) aquires the right to occupy a home site in the park, and to participate in matters affecting the Association.

It is important to note that Association members do not own any of the park’s
real estate or improvements. The members own shares in the corporation only. It is
correct to say that the shareholders (members) own the corporation, while the
corporation owns the park real estate (both the common areas and the home sites).

It may be helpful to compare a cooperatively-owned park (like Idlewheels
SMHP) with a subdivided park. In a subdivided park, the real estate is divided into “lots” (which are individual assessor’s parcels), and common areas. The lots
appear individually on the County assessor’s maps and property tax roll. In a subdivided park, the homeowners own the lots under their homes, and pay property taxes directly on their lots. Idlewheels SMHP is not subdivided; the 2 Idlewheels Corporation owns all the park real estate and pays property taxes on it as “one big parcel.”

ALL RESIDENTS HAVE THE OPTION OF PURCHASING SHARES IN THE CORPORATION (IDLEWHEELS). EACH SPACE IS ENTITLED TO 20 SHARES, REPRESENTING A 1/111^TH INTEREST IN THECORPORATION, WHICH EQUALS ONE VOTE. CURRENTLY THE SHARES ARE VALUED AT $26,000, AS ESTABLISHED BY THE BOARD OF DIRECTORS.

WHEN YOU SELL YOUR RESIDENCE, THE CORPORATION WILL BUY BACK YOUR SHARES AT THE THEN CURRENT VALUE. SHARES CANNOT BE SOLD TO ANYONE

OTHER THAN THE CORPORATION. THERE ARE NO OUTSIDE INTERESTS IN THE CORPORATION.

THE CORPORATION IS MANAGED BY A FIVE MEMBER BOARD OF DIRECTORS, WHO ARE ELECTED EACH JANUARY BY THE SHAREHOLDERS FOR

STAGGRED TWO YEAR TERMS.

THE BOARD MEETS MONTHLY ON THE 10^TH .

ALL SHAREHOLDERS ARE BILLED BY THE CORPORATION FOR ELECTRICITY, PROPANE GAS AND OPERATING FEES. GARBAGE COLLECTION IS INCLUDED IN THE OPERATING FEE. CURRENTLY THE OPERATING FEES ARE SET AT 100.00 PER MONTH. WATER IS BILLED SEPARATLY BY

THE MARIPOSA PUBLIC UTILITY DISTRICT.

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