P2 PROSPECTUS FOR TERRA MAR VILLAGE PRMZ000925

Transcription

1 P2 PROSPECTUS FOR TERRA MAR VILLAGE PRMZ Initial DBPR Approval: Nov. 17, 1994 All Amendments Integrated As Of: July 19, 2006

2 TERRA MAR VILLAGE MOBILE HOME COMMUNITY 1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT. 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS. 3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT REPRESENTATIONS. 4. UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE, THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF FIFTEEN (15) DAYS. i

3 PROSPECTUS FOR TERRA MAR VILLAGE Table of Contents Page 1. INTRODUCTION DEFINITIONS 1 I. NAME AND LOCATION OF COMMUNITY II. III. IV. PERSON AUTHORIZED TO RECEIVE NOTICES...2 DESCRIPTION OF COMMUNITY AND COMMUNITY PROPERTY...2 DESCRIPTION OF RECREATIONAL AND COMMON FACILITIES.. 3 V. MANAGEMENT, OPERATION, AND MAINTENANCE OF THE COMMUNITY...5 VI. VII. VIII. IX. IMPROVEMENTS TO BE INSTALLED BY HOME OWNERS. 5 UTILITIES AND OTHER SERVICES....6 LOT RENTAL AMOUNT USER FEES..15 X. COMMUNITY RULES AND REGULATIONS..15 XI. XII. ZONING AND LAND USE OF THE COMMUNITY.16 AMENDMENTS...16 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT F COMMUNITY SITE PLAN. 17 LOT RENTAL AGREEMENT ZONING, COVENANTS, AND RESTRICTIONS RULES AND REGULATIONS 35 STORAGE USER FEE AGREEMENTS..47 GROUND LEASE ii

4 PROSPECTUS INTRODUCTION This Prospectus has been prepared in accordance with Chapter 723, Florida Statutes. The intent of the Prospectus is to provide all pertinent information and disclosure required by Chapter 723. Each prospective Resident of the Community is urged to read this Prospectus and the Exhibits attached hereto carefully and completely. DEFINITIONS All terms within this Prospectus are defined in accordance with Chapter 723, Florida Statutes, and with the rules of the Department of Business and Professional Regulation, or are used according to their plain meaning. Additionally, the following terms as used herein are defined as follows: Delivery Date - means the date that a copy of this Prospectus was first delivered by the Community Owner to the Resident as reflected in the business records of the Community. Filing Date - means the date on which this Prospectus was filed for review with the State of Florida Department of Business and Professional Regulation, Division of Land Sales, Condominiums, and Mobile Homes. Guest - - means an individual who is not entitled to reside on the mobile home lot and who has visited the Community for a period of time no longer than 15 consecutive days or 30 days within a calendar year. Home Owner - - means a person who owns a mobile home and rents or leases a lot within the mobile home Community for residential use. It shall also include any person who owns his or her mobile home and mobile home subdivision lot within the Community. "Occupant" means a person who is not entitled to reside on the mobile home lot and who has visited the Community for a period of time longer than 15 consecutive days or longer than 30 days within a calendar year. Proportionate Share - - means an amount calculated by dividing equally among the affected developed lots in the Community the total costs for the necessary and actual direct costs and impact or hookup fees incurred for governmentally mandated capital improvements serving the recreational and common areas and all affected developed lots in the Community. Pro Rata - means that percentage derived by dividing the number of mobile home spaces leased by a Home Owner by the total number of occupied mobile home spaces in the Community. Community Owner - means Terra Mar Village, LLC, and Community Management. Resident - - means a person approved by Community Management who is entitled: (i) under a lot rental agreement; (ii) by ownership of a lot; or (iii) by lease with an 1

5 individual lot owner; to the use and occupancy of a residential lot to the exclusion of others. The term includes both Tenants and Home Owners. Tenant - - means a person approved by Community Management who is entitled to occupy a lot, under a lot rental agreement with the Community Owner (as an approved lessee or sub-lessee) or under a lease with an individual lot owner, and who does not own the manufactured home occupying the lot. I. NAME AND LOCATION OF COMMUNITY The name of the Manufactured Home Community is Terra Mar Village, and its location is 4383 South U.S. 1, Edgewater, Florida II. PERSON AUTHORIZED TO RECEIVE NOTICES The name and address of the person authorized and designated by the Community Owner as the person to receive notices and demands on the Community Owner s behalf is: Karl Warner P.O. Box Port Orange, FL III. DESCRIPTION OF COMMUNITY AND COMMUNITY PROPERTY The Community is subject to a forty-one (41) year ground lease executed on June 3, 2005 between Terra Mar Village, LLC (Lessee) and Land Trust Service Corporation, A Florida Corporation, as Trustee of a Florida Land Trust Known As #4383 dated May 25, 2005 (Lessor). See Exhibit F attached hereto. The lot sizes used herein are only approximations. The Community has not been surveyed and some spaces may be larger or smaller than as described herein. Any exceptions to these sizes exist as the result of engineering and/or construction errors without complaint of the Resident or governing authorities. Spaces have been allocated in such a manner as to provide Residents adequate outside living space. The Community Owner has no evidence to indicate that setback and separation requirements in existence at the time of allocation were not satisfied. Number of Lots. There are currently 319 lots within the Community, and an additional 181 lots are contemplated for future development. All lots are contained within one of five sections which comprises the entire Community. Size of Lots. All diagonal lots are approximately 57 feet x 114 feet, and the rectangular lots are approximately 50 feet x 100 feet. The corner lots and cul de sac lots vary in dimension but have a minimum square footage of approximately 4800 square feet+/-. Setback Requirements and Minimum Separation Distance Required By Law. There are several requirements of law with respect to how far each mobile home within the Community must be set back from the borders of it s lot and the distance that must be maintained from each mobile home in the Community and it s supporting facilities (such as, 2

6 for example, a carport) to other mobile homes, supporting facilities, and structures in the Community. Pursuant to Rules 69A and 69A-3.012, Florida Administrative Code, the State Fire Marshal has adopted NFPA 501A (2003) for manufactured housing communities. This code sets forth minimum separation requirements between Manufactured Homes as follows: Fire Safety Separation Requirements: No portion of a manufactured home, excluding the tongue, shall be located closer than 3 m (10 ft) side to side, 2.4 m (8 ft) end to side, or 1.8 m (6 ft) end to end horizontally from any other Manufactured Home or Community building unless the exposed composite walls and roof of either structure are without openings and constructed of materials that will provide a 1-hour fire resistance rating or the structures are separated by a 1-hour fire-rated barrier. Accessory Building or Structure Fire Safety Requirements: Accessory buildings or structures shall be permitted to be located immediately adjacent to a site line when constructed entirely of materials that do not support combustion and provided that such buildings or structures are not less than 0.9 m (3 ft) from an accessory building or structure on an adjacent site An accessory building or structure constructed of combustible materials shall be located no closer than 1.5 m (5 ft) from the site line of an adjoining site. In addition to the requirements of the State Fire Marshall, the County of Volusia, Florida, has enacted certain zoning regulations controlling the setback and separation of mobile homes within the Community. The portions of such zoning regulations that set forth the setback and separation requirements applicable to the Community and existing Deed Restrictions are attached to this prospectus as Composite Exhibit C. The above-referenced requirements concern only the set back and separation requirements applicable to the Community on the delivery date of this Prospectus, and any one or more of such requirements may be subsequently modified or repealed. No continuing obligation is undertaken by the Community Owner to advise any Residents of any subsequent modification, future adoption of additional requirements by any governmental body, or future repeal of these provisions. The above-referenced requirements may not be applicable to the Community, due to the placement of mobile homes in the Community prior to the enactment of those requirements, vested rights established under earlier ordinances, statutes or laws, or due to subsequent judicial decisions interpreting these or other laws. The prospective Resident is advised to obtain further information regarding the installation of mobile homes in the Community from the appropriate permitting authority. Maximum Number of Mobile Home Lots Using Shared Facilities. The maximum number of lots which will use the Shared Facilities (as that term is defined in this Prospectus) of the Community is 500 lots. The Community Owner reserves the right to use the Shared Facilities in conjunction with the Residents of the Community. IV. DESCRIPTION OF RECREATIONAL AND COMMON FACILITIES The following is a description of the Recreational and Common Facilities which shall be used only by Residents of the Community and their family members and guests, and by the Community Owner. The Community s recreational and other common area facilities are 3

7 available for the shared use of the Residents. These facilities will not be used in common with any other Community or any other persons. All improvements to the Community are complete as of the date of filing this Prospectus. Monthly financial obligations are payable regardless of use or non-use by Home Owners, Residents, Tenants, and their approved guests. Seasonal Residents must also pay their financial obligations regardless of the amount of time they spend in the Community. Clubhouse. The Community has one clubhouse building which building is located on the river at the end of Indian River Drive and contains approximately 2,070 square feet and has a capacity of approximately 85 persons. The clubhouse contains the following facilities: Men s and Women s Restrooms. The clubhouse contains a men s and a women s restroom. The men s restroom contains approximately 80 square feet and has a capacity of approximately four persons. The ladies restroom contains approximately 90 square feet and has a capacity of approximately four persons. Kitchen. The clubhouse contains a kitchen of approximately 390 square feet with a capacity of approximately 7 persons. The room is used for food preparation. Dance Area. The clubhouse contains a dance area of approximately 510 square feet with a capacity of approximately 24 persons. The dance area is used for social gatherings and meetings. Lounge Area. The clubhouse contains a lounge area of approximately 1000 square feet with a capacity of approximately 46 persons. The lounge area is used for social gatherings, meetings, reading, and conversation. Swimming Pools. The Community has two swimming pools, one located next to the clubhouse at the end of Indian River Drive, and the other next to the Community office at U.S. 1 and River Park Boulevard. The pool next to the clubhouse is approximately 48 feet by 26 feet in size and varies from approximately 3 feet to approximately 8 feet in depth. The deck around the pool consists of approximately 1600 square feet and has a capacity of 106 people. The pool next to the office is approximately 49 feet by 27 feet in size and varies from approximately 3 feet to approximately 8 feet in depth. The deck around the pool consists of approximately 1329 square feet and has a capacity of 88 people. Neither pool is heated. Other Facilities. In addition to the clubhouse and swimming pools, the Community has the following facilities that are available for use by Community residents: a. an R.V. and boat storage lot of approximately 1 acre; b. one laundry facility with an approximate area of 260 square feet that contains washer(s) and dryer(s); c. five shuffleboard courts; d. a fishing pier and boat dock approximately 300 feet long with approximately ten boat slips; e. a boat ramp for launching and loading small boats. 4

8 Personal Property. The items of personal property available for use by Community residents include all shuffleboard equipment and all personal property located in the clubhouse that is intended for the shared use of all residents such as the kitchen facility (but not including the personal property intended solely for use in the management of the Community such as the items located in the manager s office and items in the maintenance yard). Days and Hours of Operation. Except for special occasions designated by Community management, all recreation and common facilities are generally open for resident use during daylight hours seven days a week. Hours may vary from facility to facility based on maintenance requirements, seasonal variations, artificial lighting, etc. All facilities described in this Section IV have been completed as of the Filing Date. Terra Mar Village reserves the right to increase or decrease the size or modify the use of any of the planned or existing shared facilities to serve the changing needs of the Community, as determined by the Community Owner, and may, in its sole discretion, replace or elect not to replace any items of personal property determined by the Community Owner to be unsuitable for continued use. No assurance is given that any of the foregoing facilities will remain available for the residents use for any specified period after the Filing Date. V. MANAGEMENT, OPERATION, AND MAINTENANCE OF THE COMMUNITY The management, operation, and maintenance of the Community Property and the Shared Facilities shall be provided for by the Community Owner. The Community Manager will oversee the maintenance and operation of the Community; however, the Community Owner may from time to time employ such additional maintenance personnel as are deemed necessary and appropriate by the Community Owner to properly maintain the Community. Day-to-day management of the Community is the responsibility of the manager. The manager s office is located in the office at the entrance of the Community. The services provided by the Community as of the filing date include maintenance of the common areas and recreational facilities, the servicing of resident inquiries and request, and the enforcement of Community rules and regulations. The Community Owner reserves the right, upon 90 days prior written notice to each owner of a mobile home located in the Community, to increase, reduce, eliminate, or modify from time to time any or all of the services that are provided by the Community. In general and except as expressly provided to the contrary in this prospectus, each Resident of a mobile home in the Community is responsible for the maintenance of his individual lot and all improvements thereto, including, but not limited to, lawn maintenance, maintenance of utility connections, and maintenance and repair of his mobile home. VI. IMPROVEMENTS TO BE INSTALLED BY HOME OWNERS In no event shall Residents whose lot rental agreements were in existence on June 4, 1984, or who assumed a lot rental agreement in existence on June 4, 1984, be required to install any improvements of any type for the duration of the Resident s tenancy in the Community. To the extent any such Resident has not complied with any lawfully authorized requirement, the same remains effective enforceable and applicable. As a condition of tenancy in the Community, each Resident is responsible for providing for the following improvements to his mobile home: 5

9 a. a carport; b. a concrete driveway to the street; c. an outside utility building; d. vinyl or similar skirting around the mobile home upon approval of Community Management; e. a fully sodded lawn and landscaping; f. a yard light; g. street number affixed to mobile home; h. postmaster-approved mailbox Additionally for homes brought into the Community after November 17, 1994, the following improvements must be made at the expense of the Resident: i. concrete slab; j. patio; k. central air conditioning; l. concrete or brick steps, or other material approved by Community Management, at the front and street entrances of the mobile home; m. utility connections; n. All new mobile homes entering the Community must have removable hitches which shall be removed upon anchoring. Older mobile homes purchased in the Community which do not have removable hitches shall either be removed or enclosed by extending the skirting to the extent necessary to hide the hitch. o. Axles and wheels much be removed. Each of the specified improvements must be designed and installed in accordance with the requirements set forth in the Community s Rules and Regulations, and in accordance with plans which have been approved in advance by the resident manager. VII. UTILITIES AND OTHER SERVICES All utilities and services to the Community and the Residents are supplied by the following entities as specified below: Telephone. Telephone service is provided by underground wires and is billed directly to each Residents by Bell South and is not included in the lot rental amount. Each Residents is responsible for the payment of all fees and charges associated with provision of such service to his lot. The Residents charge for this service is not included in the lot rental amount. The Community Owner assumes no maintenance obligations with regard to such services. 6

10 Electricity. Electric power is provided by overhead wires and is billed directly to each Resident by Florida Power and Light and is not included in the lot rental amount. All electricity consumed on the mobile home lots within the Community, including for the required yard light, is separately metered and billed directly to each mobile Resident. Electric power for the street lights and common facilities in the Community is separately metered and billed to the Community and is included in lot rental amount. Florida Power and Light is responsible for the maintenance of the electric lines to the meter pedestal. The Resident is responsible for the maintenance of the pedestal, the electrical lines from the pedestal to the mobile home, the yard light, and for any other connections outside the mobile home, including utility shed connections and outdoor receptacles. Water and Sewer. Potable water service and sewer service are supplied by City of Edgewater through a system of underground pipes. The Residents charge for these services is billed separately to each mobile home owner and is not included in base rent. The rates are regulated by the Florida Public Service Commission. The City of Edgewater is responsible for all lines up to and including the meter at your lot line. The Resident is responsible for all lines installed on his lot as well as for his mobile home. The Community Owner assumes no maintenance obligations with regard to such services. Solid Waste Disposal. Solid waste disposal service (garbage and trash collection) is provided by Waste Management. The Residents charge for this service is included in the lot rental amount as a separate charge in addition to the Base Rent. For purposes of this prospectus, garbage collection is considered a utility. Cable Television. Cable television services are provided to the Community by Brighthouse and is billed separately to each mobile Resident and not included in the lot rental amount. The Community is not responsible for the maintenance of any cable television lines within the Community or for the connections for cable television to the individual mobile homes. Storm Drainage. Storm drainage in the Community is provided via a network of drains within the Community which feed into the Terra Mar internal storm water retention system. The Residents charge for this service in included in the lot rental amount as a separate charge in addition to Base rent. Changes to Utilities and Other Services. The description of the utilities and other services set forth above reflects the manner in which such services are provided and charged, and the parties responsible for the maintenance of the facilities necessary to provide such services, as of the Filing Date. The Community Owner reserves the right, upon prior written notice as required by Chapter 723, Florida Statutes, to each owner of a mobile home in the Community, to discontinue the provision or maintenance of any utility or other service described above that is presently provided and/or maintained by the Community, so long as such discontinued service or utility is replaced by a comparable service or utility. In the event of such discontinuation and replacement, the Residents within the Community may be billed separately for utilities or services that are billed to the Community as of the Filing Date, and/or may become responsible for the maintenance of utility facilities that are the responsibility of the Community as of the filing date. VIII. LOT RENTAL AMOUNT The following is a description of the base rent and other fees and charges applicable to your lot. 7

11 Computation of Lot Rental Amount. The lot rental amount for each lot will be comprised of four (4) components as set forth below: Base Rent. The lump sum amount paid by the Resident for the use and occupancy of the lot and use of related Community facilities, if any. Base Rent shall not include Special Use Fees and Governmental and Utility Charges, or Pass-Through Charges. Special Use Fees. Those separately itemized charges in addition to the Base Rent for specific services or privileges. Governmental and Utility Charges. Those amounts, other than special use fees, which represent the Resident s share of costs charged to the Community Owner by any federal, state, regional or local government or utility authority. Pass-Through Charges. The Resident s proportionate share of the necessary and actual direct costs and impact or hookup fees for a governmentally mandated capital improvement, which may include the necessary and actual direct costs and impact or hookup fees incurred for capital improvements required for public or private regulated utilities. Lot Rental Amount. Base Rent: The base rent is subject to annual increases after notice from the Community Owner of such increase as required by Chapter 723, Florida Statutes. Special Use Fees: a. Returned Check Charge - $. All checks not accepted and honored by the Banking Institutions on the first deposit will be charged a returned check fee. b. Late Payment Fee - $ plus $ /per day that the rental amount remains past due. (Applicable only in the event Resident is delinquent with a monthly rental payment. All rental payments shall be due on the first day of each month and shall be deemed to be past due if not paid by the fifth day of each month). month. c. Garbage Disposal Charge - A garbage disposal charge of $ per d. Sewage - Sewage Charges shall consist of the following: (1) Basic Charge: A Basic Sewage Charge of $ per month. (2) Metered Charge: A metered sewage charge of $ / gallons per month. e. Water - Water Charges shall consist of the following: (1) Basic Charge: A basic water charge of $ per month (2) Metered Charge: A metered sewage charge of $ / gallons per month. 8

12 f. Use of Common Facility Fee - $ per special use (such as a private party) of any common facility. g. Storm Drainage Charge - A storm drainage charge of $ per month. h. Additional Resident Fee - Additional resident and/or visitor and/or guest charge of $ per guest residing in the house for more than 15 consecutive days or a total of thirty days per calendar year. i. Lot Clean-Up Charge - $ (per man hour). In case of fire, wind, or water damage to Resident s property, or in the event that Home Owner s lot is not kept clean and free of trash or debris, Resident shall be responsible for any cost of repairs, removal of debris, and clean up of lot. j. Lawn Maintenance Fee, including mowing, edging, and trimming, in the amount of $ for each required maintenance performed by the Community Owner due to the fact that Resident fails and/or refuses to do so. Additionally, the Resident is responsible for the actual cost and expense incurred for materials, labor, and equipment needed for any other required maintenance, as described in the Community rule entitled Lot Care, which maintenance is performed by the Community Owner due to the Resident s failure or refusal to do so. k. Grass Mowing Charge - $ per season. l. Garbage Containment Fee - If it becomes necessary for the Community Owner to place the Resident s garbage in proper containers because Resident fails to do so, there will be an additional charge of $ assessed to the Resident for each occurrence. m. Application Fee - A new Resident application fee of $ per application. This fee will be charged by the Community owner as allowed by law, in qualifying a prospective Resident by the Community. If this fee is determined to be an entrance fee prohibited by Section , Florida Statutes, it will be refunded. n. Pet Fee - A pet fee of $ per pet per month. o. Pest Control Fee - A pest control fee of $ per month. p. Skirting and/or Mobile Home Cleanup Fee - A skirting area cleanup fee of $ if Resident fails and/or refuses to keep the skirting area clean and free of debris or to keep the exterior of the mobile home clean. q. Special Service Fee - A special service fee of $ per hour, but not less than $ per service call, for any repair, maintenance, or service (other than those specifically and separately mentioned herein)that is performed by the Community, but which is the responsibility of the Resident. r. Entrance Fee - $ An entrance fee is applicable to any mobile home placed in the Community. (This fee does not apply to the purchaser of a mobile home situated in the Community.) s. Attorney s Fee - $ (as determined by the courts) Resident shall pay for all reasonable attorney s fees incurred by the Community as the result of any action 9

13 taken by the Community against the Resident to collect delinquent rent, enforce the rental agreement or the rules and regulations, whether suit is brought or not, and whether such fees are incurred before or at trial or on appeal. As to any such action brought to enforce the provisions of Chapter 723, Florida Statutes, in which action the Resident is the prevailing party, the Community Owner is entitled to a reasonable attorneys fee to be paid by the Resident. t. Large Item Trash Removal Charge - a minimum of $ A garbage and/or trash removal fee for items which are not collected as part of the normal garbage or waste removal services provided in the Community (i.e. refrigerators, large appliances, etc.)if the Resident fails and/or refuses to remove same. u. Abandoned Property Storage Fee - $ v. Mail Box Fee - $ w. Speeding Fee - $ x. Water Fee - $ per incident of excess watering. y. Damage to Property Fee - $ Residents will be held financially responsible for damage to private or Community property caused by their family or guests. z. Security Deposit - $ aa. Recycling Fee - $ bb. Damaged Home Removal Fee - $ Governmental and Utility Charges. These charges will be charged to Resident (s) on a pro rata basis, or if the government agency or the utility provides for the billing of such charges on a per lot, metered, or other than pro rata basis, then such charges shall be charged to the Resident in that fashion. The governmental and utility charges which may currently be charged to Resident (s) are as follows: a. Water charges or increases in same for usage of water in common areas; areas; b. Sewer charges or increases in same for usage of sewer service in common c. Waste disposal charges or increases in same; d. Taxes, which term includes ad valorem taxes and special or non-ad valorem assessments levied upon or assessed against the Community by any unit of government. If the method of property taxation prevailing as of the delivery date is changed so that taxes now levied or assessed on Community property are replaced partially or completely by a tax levied or assessed upon the Community Owner as a capital levy or otherwise or on or measured by lot rental amounts received by the Community Owner from the Community, or by any assessment other than any ad valorem tax, then such new or altered taxes shall be deemed included within the definition of taxes ; e. Pass-through charges including the necessary and actual direct costs and impact or hook up fees for a governmentally mandated capital improvement, which may 10

14 include the necessary and actual direct costs and impact or hook up fees incurred for capital improvements required for public or private regulated utilities. Pass-through charges shall be charged to Residents according to each Resident s proportionate share. f. Expenses created and charged to the Community Owner by any federal, state, regional, or local governmental entity or utility company, including annual filing fee(s) and the Prospectus filing fee(s) as is required by Chapter 723, Florida Statues, and any other non ad valorem assessments; g. Special Assessments or charges by any federal, state, regional, or local government or utility company; h. Replacement utility charges charged to the Community Owner or to the Resident s lot by any federal, state, regional or local governmental entity or utility company for service of a type or nature not available on the delivery date in replacement or substitution, in whole or in part, of any utility or other service that is provided or is available to Community Residents on the delivery date; i. New utility charges charged the Community Owner by any federal, state regional or local governmental entity or utility company that become available for the beneficial use and enjoyment of the Community residents after the delivery date; j. Any presently unknown governmental or utility charges, as defined above, which are charged to the Community Owner in the future by any federal, state, regional or local government or utility company may be charged to Resident(s) in accordance with law. k. non-ad valorem assessments. l. Costs (including interest based on Community Owner s then cost of borrowing)incurred by the Community Owner as a result of actions taken by federal, state, regional or local governmental entities or utility companies but not directly billed to the Community Owner by said federal, state, regional or local governmental entity or utility company. The Community Owner may recapture these types of costs by charging a lump sum assessment to the Residents, at the end of the term of the Community s yearly Lot Rental Agreement (Lease). These types of charges shall be charged to Resident(s) after providing advanced written notice as required by Chapter 723, Florida Statures, to the Resident(s) on a pro rata basis as defined above and shall be limited to the amount of the increased costs or charges incurred by the Community Owner and any maintenance and administrative costs as permitted by Section , Florida Statutes, if applicable. Certain of the above-mentioned government and utility charges and costs which are billed by either the federal, state, regional or local governmental entities or utility companies may be charged to the Residents after providing notice as required by Chapter 723, Florida Statutes, at any time during the lease term. The amount of an increase in these charges shall be limited to the increased costs or charges billed to the Community Owner by the federal, state, regional or local governmental agency or utility company plus any maintenance and administrative costs relating to same as is permitted by Section , Florida Statutes. For purposes of this prospectus, garbage collection is considered a utility. The dollar amounts set out above represent only the amount charged for each rental category on the Delivery Date. As disclosed in this Prospectus, such amounts are subject to increase. Wherever 0 appears above a blank for the amount charged for any rental 11

15 category described above, it means that charges for that rental category are not imposed by the Community Owner on the Delivery Date. The amount of those charges may be increases as described in this Prospectus. In addition, nothing in this Prospectus shall be deemed a waiver of the Community Owner s right to collect from the Resident any damages that the Community Owner may sustain as a result of or in connection with a tortious act, neglect or breach of lease by the Resident or anyone permitted to be on Community property by the Home Owner. The Community Owner reserves the right to increase the lot rental amount in an amount established by the Community Owner and in the manner as set out in the Community s Prospectus after providing advanced written notice to all affected Residents of such increase(s) as required by Chapter 723, Florida Statutes. Increases in Lot Rental Amount 1. The lot rental amount includes all financial obligations, except user fees, which are required as a condition of Resident s tenancy. Each of the categories of charges currently or hereafter comprising a part of the lot rental amount, as set forth above, are subject to periodic increases by the Community Owner. However, except for increases resulting from the imposition of certain government and utility charges and from passthrough charges, the lot rental amount will not be increased more frequently than annually. 2. Factors influencing the level of increase in base rent and special use fees include increased operational costs, and the prevailing market and economic conditions at the time notice of such increase is furnished by the Community Owner and also the cost incurred as a result of actions by any governmental utility or utility companies. An increase in one or more of these factors, to the exclusion of any other factors, based exclusively on the Community Owner s business judgment. a. Any increases in the cost of operations including costs, charges, and expenses of every kind and nature paid or incurred by the Community Owner in operating, managing, repairing, maintaining, and administering the Community including the following: (1) The cost of all insurance carried by the Community Owner with respect to the Community, including all fire and extended coverage and liability policies, car and theft coverage, fidelity bonds and any other insurance. (2) The cost for repairs, maintenance, and replacements; (3) Office expenses including but not limited to telephone, office supplies, salaries, and other compensation, accounting and auditing fees. (4) The cost of janitorial, security, cleaning, and pest control services; (5) The cost of redecoration, renovating, and landscaping the common areas in the Community, and of striping, patching, and repaving any roadways, vehicular parking areas or storage areas in the Community; (6) All costs, fees and expense associated with the Community Owner staying current and in compliance with all applicable federal, state, or local laws, ordinances or regulations, including but not limited to attorneys fees, legal fees, courts costs, investigating costs and the like; 12

16 (7) the cost of all utilities (including, without limitation, water, sewer, and electricity) used or consumed in the Community, unless otherwise charged directly to Resident as provided in this prospectus, and except any of such utilities that are separately metered or billed to the Resident; (8) The cost of providing heating, ventilating, and air conditioning services to any recreational building or other common area or facility in the Community; (9) Salaries and other remuneration and compensation paid to persons of firms engaging in operating, managing, repairing, maintaining, or administering the Community, including but not limited to automobile and truck expenses; (10) Management fees and expenses paid in connection with the operation and management of the Community, including any such fees paid to the Community Owner or any affiliate of the Community Owner, travel expenses, dues and fees for any industry organization, subscriptions, and advertising, educational fees, seminars, tuition, travel and lodging; (11) If not otherwise collected as a Governmental and Utility Charge, the cost of capital improvements and repairs made in order to conform to the requirements of any law, ordinance or other government requirement applicable to the Community, the cost of any such capital improvement or repair shall include interest based on Community Owner s then cost of borrowing; (12) All attorneys fees, court costs, investigation costs and other costs and expenses including supplies not otherwise expressly excluded hereunder, attributable to the operation, management, repair, maintenance, or administration of the Community; (13) All costs, fees and charges including interest associated with borrowing money to pay any of the fees, costs, expenses and charges described in this prospectus section entitled Lot Rental Amount. b. Prevailing market conditions are established based on those base rents and other charges imposed in comparable communities, or base rents and other charges willingly paid by new Residents of this Community. For this purpose, a Community will be deemed comparable if it is located in the general competitive region of this Community, and offers similar densities, amenities and services. c. Prevailing Economic Conditions refer to those factors which bear on the economic viability of a real estate investment and which would be considered by a prudent business person in establishing the base rent and other charges for any increase in the amount thereof. These factors include: (1) the cost attendant to the replacement of this Community in the economic environment existing at the time of any rental increase, including land and acquisition costs, construction costs, and losses associated with the operation of a Community prior to full occupancy, and the level at which the lot rental must be established in order that the Community Owner will realize a reasonable return on the costs referred to in this clause (1); (2) the levels or interest rates and other financing charges associated with construction, interim and permanent; 13

17 (3) the availability of alternative forms of real estate investments which, absent the rental increase in question, might reasonably be expected to yield a greater return on investment capital; (4) the levels of the Consumer Price Index, defined as the United States Department of Labor, Consumer Price Index, U.S. City Average - All Urban Consumers, =100, or in the event of the discontinuation of publication of the Consumer Price Index, then an alternative index which has been reasonably related to the Consumer Price Index in evaluation economic conditions, and which has been, or can reasonably be expected to be, generally accepted as a replacement index for the Consumer Price Index; (5) the level at which the lot rental amount must be established in order that the Community Owner will realize a reasonable return on the owners equity ; for this purpose the owners equity refers to the fair market value of the Community from time to time, less existing mortgage indebtedness; (6) other economic factors which might reasonable be expected to affect either the value of the Community, the rate of return available to the Community Owner at the existing level of lot rental amount, the present value of the real estate investment and the rate of return of that investment in the current economic conditions, and which would be required in the Community in order to realize a rate of return similar to other as risk real estate ventures from the then current value of the Community. 3. Factors Affecting Governmental and Utility Charges. That portion of the lot rental amount which is composed of Governmental and Utility Charges, if any, shall be affected by changes in the rates charged for the provision of such services and taxes by any federal, state, regional or local government or utility authority. An increase in such rates may result in an increase in Governmental and Utility Charges. The costs charged to the Community Owner by a federal, state, regional or local government or utility authority for such services and taxes, if any, shall be allocated on a pro rata basis among the occupied lots or by such other means as are established by the acts of government. The amount of increase in Governmental and Utility Charges shall be limited to the new or increased cost charged to the Community Owner. 4. Factors Affecting Pass-Through Charges. The Resident will be responsible for payment of those pass-through charges assessed to the Community Owner by federal, state, regional or local government or utility companies. The charges may be assessed more often than annually and will be assessed according to the Resident s proportionate share. Those items defined as pass-through charges may be passed on to the Resident more often than annually; however, the Community Owner reserves the right to recoup those costs in the form of future increases in rent or other charges, rather than as passthrough charges. Additional Considerations In the event a resident elects not to sign a written lot rental agreement, that resident shall nonetheless be subject to all of the terms and conditions set forth in those written rental agreements otherwise offered to residents by management except that the base rent charged to that resident shall be the base rent for the homesite as established by management, said rate to be effective for a period not to exceed 12 months, commencing with the resident s occupancy of the homesite, unless otherwise agreed upon. 14

18 Nothing contained herein prevents management from discussing with any resident or resident s association an alternative manner of adjusting rents, or from offering or entering into rental agreements, mutually agreeable to management and a resident, on terms differing from those described herein. Each lease term under this prospectus is independent of any other such lease term. Failure of the Community Owner to implement the full amount of an increase in lot rental amount as allowed by law and this prospectus during any lease term shall not preclude the Community Owner from increasing the lot rental amount at a later time to recoup the difference. Residents assuming the remaining portion of the unexpired term of the seller s lease, as authorized pursuant to Section (3), Florida Statutes, are herby notified that upon the expiration of the unexpired term of the seller s lease, the Community Owner expressly reserves the right to increase the lot rental amount applicable to the new Resident as permitted by law. IX. USER FEES The Resident may at some time in the future be offered services by the Community Owner for which user fees will be charged. A user fee is a charge in addition to the lot rental amount for nonessential optional services provided by or through the Community owner to the Resident under a separate written agreement between the Resident and the person furnishing the optional service or services. The user fees will only be charged to those Residents who desire to use the services provided. The user fees and charges are not related to the rental amount. User fees are currently charged by the Community Owner for: a. Boat Slips at $ per day b. Boat Storage at $ per month c. RV Storage at $ per month d. Automobile/Machinery Storage at $ per month User fees will be increased in accordance with the prevailing market upon 30 days written notice. X. COMMUNITY RULES AND REGULATIONS Community Ruses and Regulations currently in effect governing the Residents behavior, guest procedures, etc. are contained in Exhibit D attached hereto and incorporated herein by reference. Changes in Rules and Regulations. The Rules and Regulations may be changed, or new Rules and Regulations may be adopted, at the discretion of the Community Owner. The Community Owner will make such changes in the Rules and Regulations as the Community Owner deems to be in the best interest of the safety, security, and aesthetic quality of the Community and the residents. Notwithstanding the foregoing, the Community Owner shall give all Residents prior written notice, as required by Chapter 723, Florida Statutes, of any change in the Rules and Regulations or adoption of new Rules and Regulations. 15

19 XI. ZONING AND LAND USE OF THE COMMUNITY Current Zoning Classification. As of the filing date, part of the Community is zoned M.H.5, which is mobile home subdivision. The balance of the property is M.H.1, which is mobile home rental Community. Zoning Authority. The governmental authority having jurisdiction over the Community Property with regard to zoning is Volusia County, Florida. Community Owner s Future Plans Regarding Development of the Community. The Community Owner has no definite future plans for changes in the use of the land comprising the Community. The Community Owner reserves the right to do so, however, subject to the provisions of Chapter 723, Florida Statues. XII. AMENDMENTS The Community Owner reserves the right to amend this Prospectus or any Exhibit thereto from time to time to the extent permitted by law to conform with changes in relevant statutory provisions or changes in relevant rules of the Department of Business and Professional Regulation, or any other agency having jurisdiction over the operation of this mobile home Community. This prospectus was determined adequate to meet the requirements of Chapter 723, Florida Statutes, by the Florida Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes on this 17 day of November, Prospectus #PRMZ P2 The lot to which this prospectus applies is lot #. As subsequently amended and approved by the Florida Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes on July 19,

20 EXHIBIT A COMMUNITY SITE PLAN 17

21 EXHIBIT B LOT RENTAL AGREEMENT 18

22 EXHIBIT B TERRA MAR VILLAGE LOT RENTAL AGREEMENT This Lot Rental Agreement between Terra Mar Village (the Community Owner ) and (the Home Owner ) shall be effective on, 20, and shall remain in effect until December 31, 20, unless terminated earlier as provided in this Agreement. The purpose of this Agreement is to describe the unique relationship that exists between two property owners: the Community Owner, the entity which owns the real estate and common area improvements at Terra Mar Village, and the Home Owner, who owns a home located in the Community. This Lot Rental Agreement allows the Home Owner to use the space known as for the placement of his or her home and allows the Home Owner the use of common area facilities at Terra Mar Village subject to lawfully established rules and regulations. Nothing in this Agreement gives the Home Owner a property interest in any part of the Community Owner s real estate; nothing in this Agreement gives the Community Owner any property interest in the Home Owner s home. A. OCCUPANCY: The following individuals shall be the initial residents for the purposes of this Lot Rental Agreement and may occupy the above-specified space. It shall be considered a material default of this Lot Rental Agreement if, without written approval of Community Management, occupancy of the space exceeds 15 consecutive days or 30 total days per year, without written approval of Community Management, by any person(s) other than those listed immediately below: No other persons may occupy Resident s home without written permission from Community management. B. LOT RENTAL AMOUNT: Lot Rental Amount shall include Base Rent, as well as other fees and charges consisting of Special Use Fees, Governmental and Utility Charges and Pass Through Charges as set forth in Section VIII of this Prospectus. 1. BASE RENT. In consideration for the use of common area facilities and for the use of a place to locate a home, the Home Owner shall pay to the Community Owner in advance on the first day of every month a base rent of $ without any deduction or offset. Home Owner must pay by check, cashier s check, or money order. Community Owner reserves the right to refuse a personal check. 2. OTHER FEES AND CHARGES: Home Owner may also be billed separately, in addition to Base Rent, for the following fees and charges: Special Use Fees: a. Returned Check Charge - $. All checks not accepted and honored by the Banking Institutions on the first deposit will be charged a returned check fee. 19

23 b. Late Payment Fee - $ plus$ /per day that the rental amount remains past due. (Applicable only in the event Resident is delinquent with a monthly rental payment. All rental payments shall be due on the first day of each month and shall be deemed to be past due if not paid by the fifth day of each month.) Time is of the essence for each monthly payment of lot rental amount. month. c. Garbage Disposal Charge - A garbage disposal charge of $ per d. Sewage - Sewage Charges shall consist of the following: (1) Basic Charge: A basic sewage charge of $ per month. month. (2) Metered Charge: A metered sewage charge of $ / gallons per e. Water - Water Charges shall consist of the following: (1) Basis Charge: A basic water charge of $ per month. month. (2) Metered Charge: A metered sewage charge of $ / gallons per f. Use of Common Facility Fee - $ per special use (such as private party) of any common facility. month. g. Storm Drainage Charge - A storm drainage charge of $ per h. Additional Resident Fee - Additional resident and/or visitor and/or guest charge of $ per guest residing in the house for more than 15 consecutive days or a total of thirty days per calendar year. i. Lot Clean-Up Charge - $ (per man hour). In case of fire, wind, or water damage to Home Owner s property, or in the event that Home Owner s lot is not kept clean and free of trash or debris, Home Owner shall be responsible for any cost of repairs, removal of debris, and clean up of lot. j. Lawn Maintenance Fee, including mowing, edging, and trimming, in the amount of $ for each required maintenance performed by the Community Owner due to the fact that Home Owner fails and/or refuses to do so. Additionally, the Community Home Owner is responsible for the actual cost and expense incurred for materials, labor, and equipment needed for any other required maintenance, as described in the Community rule entitled Lot Care, which maintenance is performed by the Community Owner due to the Home Owner s failure or refusal to do so. k. Grass Mowing Charge - $ per season. l. Garbage Containment Fee - If it becomes necessary for the Community Owner to place the Home Owner s garbage in proper containers because Home Owner fails to do so, there will be an additional charge of $ assessed to the Home Owner for each occurrence. 20