The Board of Directors would like to invite you to the Memorial

Chase CIA annual meeting. The annual meeting will be held at

Krahn Elementary School, Thursday, February 14, 2002, at

7:00PM. Please plan to attend, the board appreciates your participation. If you have any questions regarding the annual meeting, please feel free to call HMS Company / Marc Newman during normal business hours at 281-874-0414

Billed Collected Outstanding % Collection

2001 64,625 62,980 1,645 97.0%

2000 64,625 64,149 476 99.3%

1999 64,625 64,350 275 99.6%

1998 64,625 64,474 151 99.8%

1997 64,625 64,625 0 100 %

1996 64,625 64,625 0 100 %

1995 64,900 64,900 0 100 %

1995 -- $ 275.00

1996 -- $ 275.00

1997 -- $ 275.00

1998 -- $ 275.00

1999 -- $ 275.00

2000 -- $ 275.00

2001 -- $ 275.00

2002 -- $ 275.00

Note – The board of director’s reviews each year all contracts and monthly expenses to keep our cost down. The board is currently reviewing some changes in the laws concern pool in Harris County. Changes in the law and rising cost could lead to increased assessments in 2003.

The pool drinking fountain, additional lighting and the pool rope were replaced prior to the pool opening. The board continues to monitor all equipment to be sure it all is in good working order.

Pool Opening Party

The pool party was held one week prior to the Memorial Day weekend to allow for more residents to attend as many of our neighbor’s travel out of town during the Memorial Day weekend. Over 80 prizes were donated by local businesses and given away during the party. A special thanks to all of our local businesses and everyone that helped to make this party such a success.

The 2001 pool season was extended into the month of September, which allowed residents to use the pool during the weekends for the first month after the school season began.

$ 144.01 was raised in 2001 from the Kroger Share program and $ 210.56 was raised in 2001 from the Randalls Remarkable Card program. These two local retailers just for shopping at their stores donated a total of $ 354.57 to our neighborhood.

The Board of Directors worked during 2001 on the issue of fence heights. Six feet (6’) is the height limit for all fences per the current deed restrictions. The board worked to revise the limit to six feet, six inches (6’ 6") to allow for the installation of a 6" rot board. To keep our neighborhood in top shape currently residents are asked to keep their trash cans stored so they can not been seen from the street. Trash should only be put out on the street 24 hours prior to trash day.

For all deed restriction violations recorded in 2001 a letter is sent to the homeowner regarding the violation, with a request for correction. 99% of the reported violations are promptly corrected. The board would like to thank each and every resident for their cooperation and great support. As a reminder the board would like to ask each resident to please continue helping to keep our neighborhood looking great. Several items to stay focused on are:

The board continued to work with the Harris County Flood Control and County Commissioner’s Office regarding the flooding of the streets in our neighborhood during heavy rains. The board continues to monitor the building around our area.

The MCCIA is WEB Page is up and running to aid and improve communication and access to information for our residents.

Plans are to expand the WEB page to include business referrals, links to other WEB pages and more. If you have any suggestions please let the Board of Directors know.

With the addition of the new lighting vandalism appears to be down. All residents are asked to be aware of the activities in and around our neighborhood. As a reminder please keep our common area clean and safe. Please remove all items from the common area when you leave and please contact 911 if you see

any vandalism-taking place around our neighborhood.

The board monitors the condition of the play ground equipment to insure the safety of all our residents. The board will review the playground during the 2002 year for possible improvements. Please advise the Management Company if you are concerned over any issue in the common area.

The picnic tables will be replaced prior to the pool opening for 2002. The board will consider additional lawn chairs and possible additional seating area near the deep end of the pool.

Pool Opening Party

The pool party will be held on Saturday, May 18, 2002

donations for door prizes to make the party a great success. If you are interested in helping out with the party, please contact HMS Company / Marc Newman 281-874-0414

Residents are reminded that ACC forms must be completed and approved prior to any repairs or additions to their residents. This includes fences, roofs, and painting.

In October of 2001, annual assessment bills were mailed. A payment plan was available, which allowed assessments to be paid in three payments. As of 12/31/01 / $30,465.92 (47%) of the 2002 assessments had been paid. Delinquent accounts will be sent additional statements with late fees and interest added. All remaining delinquent accounts will be turned over to our attorney for collection.

The 2002 budget has been set and approved by the board. The budget is based on a 95% assessment collection rate. The budget was set as follows:

Net Income (Loss) $ (3,879.00)

Expense Details:

Utilities 13,104.00

Taxes and Insurance 5,695.00

Legal / Professional 20,462.00

Pool 16,376.00

Tennis Court 570.00

Parks / Playground 500.00

Grounds Maintenance 3,338.00

Building Maintenance 350.00

Billing / Collections 90.00

Administrative 1,630.00

Write Offs / Adjustments 180.00

Capital Reserve 4,824.00

The financial health of our association is good. The board is always looking ahead to the future to insure that we keep our present health. We continue to work to insure that the best interests of our neighborhood are kept as the top priority. As always the board is open to the opinions of each resident. Please make plans to attend the annual meeting and or the monthly meetings held the second Thursday of each month at the Fire Station on Landry.

Looking forward to seeing you at the annual meeting

Respectfully,