FAIR OAKS ESTATES

HOMEOWNERS ASSOCIATION

POLICY RESOLUTION NO. 2005-1

Maximim Annual Assessment


"WHEREAS, Article V, Section 3 of the Declaration of Covenants, Conditions and Restrictions ("Declaration") permits an increase in the maximum annual assessment by an affirmative vote of more than 2/3 of the association members present or by proxy at a duly called meeting at which a quorum of at least 60% of the members are present or represented by proxy; THEREFORE, at a duly convened meeting held on April 29, 2005, at which a quorum of over 60% of the members were present or represented by proxy, by a vote of 175 to 30 in favor, the maximum annual assessment is raised to Two Hundred Fifty and no/100 Dollars ($250.00) per lot, effective January 1, 2006."

/s/  Doug Knoche
President

/s/ Chris Mustain
Vice President

/s/ Bruce Copping
Director