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($5,000/$1,000) shall not be amortized but shall be used by a Park Owner using Formula <br /> B to calculate rent increases. <br /> B. Amortization Periods, Vineyard Mobile Villa and Hacienda Mobilehome <br /> Park. For the Vineyard Mobile Villa and the Hacienda Mobilehome Park, the Capital <br /> Improvement amortization periods shall be as follows: <br /> $ 5,000 - $ 9,999 2 years <br /> 10,000 - 14,999 3 years <br /> 15,000 - 19,999 4 years <br /> 20,000 - 29,999 5 years <br /> 30,000 - 39,999 6 years <br /> 40,000 - 49,999 7 years <br /> 50,000 + 8 years <br /> C. Amortization Periods, Fairview Trailer Park. For the Fairview Trailer Park, <br /> the Capital Improvement amortization periods shall be as follows: <br /> $ 1,000 - 2,499 2 years <br /> 2,500 - 4,999 3 years <br /> 5,000 - 8,999 4 years <br /> 9,000 - 13,999 5 years <br /> 14,000 - 19,999 6 years <br /> 20,000 - 29,999 7 years <br /> 30,000+ 8 years <br /> D. Financing Costs. If the Capital Improvement costs are amortized, the Park <br /> Owner may include reasonable financing costs, not to exceed the Prime Rate plus two <br /> percent (2%), for the Capital Improvement costs. <br /> E. Removal of Capital Improvements Costs from Space Rent. Any principal <br /> and interest amounts amortized and charged to the Home Owners shall be removed from <br /> their scheduled Space Rent at the end of the scheduled payback period. <br /> F. Home Owner Approval for Certain Capital Improvement Costs. New <br /> Capital Improvement costs over $5,000 (for Vineyard Mobile Villa and Hacienda <br /> Mobilehome Park) and $1,000 (for Fairview Trailer Park), other than Capital <br /> Improvement costs required to comply with a governmental act or regulation, shall <br /> require the prior approval of the Home Owners in order for the Park Owner to use such <br /> costs in calculating an increase in monthly rents. The Park Owner shall put the matter to <br /> a vote of the Home Owners and "prior approval" shall mean fifty percent (50%) plus one <br /> of the total number of Home Owners who cast votes. <br /> (moblhomesam 2/5/97) <br /> 10 <br />