Cullasaja HOA Annual Meeting Presentation

Cullasaja Homeowners’ Association Annual Members’ Meeting August 24, 2025 at 3:00 p.m.

1

• Call Cullasaja HOA Members’ Meeting to Order  Recognition of Board & Committee Volunteers  HOA President’s Message  Vision & Mission of the HOA  HOA Responsibilities – Common Property  Member Services & Infrastructure  HOA Financial Update  Community Real Estate Update  Safety & Security Committee Update  Architectural Control Committee (ACC) Update • Questions and Answers • Election Results • Adjournment

2

Term Ends

Mike Buchanan, President Tim Wright, Vice President Jane Adams, Secretary Herb Walter, Treasurer

(2026) (2027) (2026) (2027) (2028) (2026) (2027) (2028) (2025)

Don Feibelman Dennis Fisher Phil McManamy Chuck Shirk

Bill Walker Past President

3

Term Expiring Don Feibelman – eligible for another term Chuck Shirk – eligible for another term Bill Walker 1 Year Remaining Jane Adams Mike Buchanan Dennis Fisher 2 Years Remaining Phil McManamy

Herb Walter Tim Wright

4

Architectural Control Committee (ACC)

Lang Lowrey, Chairman Jane Adams Chip Keener

Jody Lovell John Lupoli

Herb Walter, Chairman Jane Adams Chuck Ball Tom Bell

Frank Forrest E.G. Lassiter Rick Taylor

5

Stone Ermentrout Jill Marshall Barbara Postles Chuck Shirk

Sid Nurkin, Chairman Bob Bailey Jim Stokes

6

Don Feibelman, Chairman Frank Forrest Lana Jordan Dennis Fisher, President Tom Bell Don Feibelman Ray Joelson Irv Kron Randy McCoy Jan McLaughlin, Lake Osseroga Rep. Ed Rothberg Ravenel Lake Association

7

Chuck Shirk, Chairman Lang Lowrey Phil McManamy Larry Ray Steve Tyde

Tim Wright, Chairman Bob Bailey Mike Buchanan Tom Cooper

8

9

Mike Buchanan HOA President

10

Staff Vision Statement

(What we aspire to showcase) WE CARE Mission Statement (How will we achieve the Vision) WE WILL WORK TO EXCEED OUR PROPERTY OWNERS’ EXPECTATIONS AND PROVIDE REMARKABLE MOUNTAIN HOME LIVING 11

Cullasaja HOA Organizational Structure 2025

HOA Property Owners

HOA Board of Directors

CFO Tim Lamphier

General Manager Chris Conner

Staff Accountant Kassidy Henkel

Zoe Receptionist

Payroll Specialist Judy Keener

HOA F&S Director Gary Clark

Director of Security Keith Ramey

Maintenance Supervisor WillWalz

Outside Services Director SteveMersereau

Landscape Manager Chuck Dempsey

HOA R&M

HOA Office Manager Monica Vinson

Community Grounds MS Landscaping

MS Outside Services

MS R&M

Outside Services Assistant Robert Petrie Luis Hernandez Stevie Sanders

Asst. Landscape Director Dustin Atha

R&M Techs Aaron Burton Bidd Burton Art Humphrey

Gatehouse Attendants Tony Bolick Danny Holland Mei Lee Stephen Stanley David Tilson

Accounting Assistant Joan Phillips (pt)

Administrative Assistant Beth Burton

Landscape Techs Rene Benitez

OS Admin Assistant Mona Humphrey

Outside Services Contractors

Contract Labor And Seasonal Labor

Audie Franks (pt) Wayne Rice (pt)

12

The Charter of the Cullasaja Homeowners’ Association requires the HOA Board of Directors and the HOA organization to concern themselves with the following five areas: 1. Common Property 2. Infrastructure (Water/Sewer/Internet) 3. Member Services (fee-based) 4. Financial Management & Administration 5. Security & Guard Gate Over the next several slides, we will cover these areas in detail. It is our hope that all HOA Members understand the governance structure and the areas of responsibility for the HOA Board. 13

14

The HOA is responsible for all areas designated as common property in the community. These 4 areas include:  Community Entrance & Gate  Roadways & Roadsides  Overlook Deck  “Yacht” Club Important to note, Lake Ravenel is not considered common property of the HOA. There is a separate Association for the lake, of which the Cullasaja HOA is a 51% shareholder, that maintains it and handles all issues related to the lake. 15

Infrastructure & Member Services

Gary Clark Field & Services Director

16

The infrastructure in Cullasaja is much like a small municipal city. It is managed using GIS Mapping and SCADA (Supervisory Control and Data Acquisition). Critical considerations for mountain living are well planned at Cullasaja, including providing proper water resources from your five deep water wells via your own distribution system, and wastewater treatment plant that offers exceptional capacity for current needs and future growth.

17

 In 2025, we have made the following improvements;  Added two new boats to our “Yacht” fleet  Paved Cullasaja Club Drive from Garnet to Lost Trail  Replaced #5, largest water well pump (lightning strike)  Replaced largest lift station  Continuing the street sign painting  West Kelsey Court water system improvement  Repair and repainting of bridge

18

 The Fire Suppression system has performing fire hydrants that are located no more than five hundred feet from any dwelling on the property.  Roadways. There are over 8 miles of paved roadways that are owned and maintained by the HOA. Snow removed with the goal of being able to get a fire truck to any house at any time.  The HOA is charged with providing reliable high-speed internet service to all 298 homes via the resident funded CullasajaNet fiber optic network.

19

 Duke has committed to replacing their 38+ year old underground electrical lines in the road right-of-ways in our community.  Their work is usually done in the fall and winter but this year they worked all the way into July.  Once Duke completes a section or road, the HOA replaces the water and sewer valves and substandard “bluemax” piping so the road is ready for future paving. Annual Paving Plan is Based on Fixed Asset Schedule, but we Have to Follow Duke Energy’s Underground Repairs

 When this work is complete, we can pave the road if it needed.

 Continue to maintain drivability on roadways with asphalt patching as needed.

20

Duke Energy’s remaining replacement of underground power lines in the Cullasaja community shown in pink

Potential Road Paving Plan over the next few years based on Duke Energy’s replacement of underground power lines

22

 Every home in the Cullasaja community has a fiberoptic to home connection to provide high-speed, reliable internet service. This is owned by HOA property owners and is paid for by a portion of the annual HOA dues assessment.  BalsamWest’s Call Center is available 24/7/365 at 828-339-2999. But we find it better to email your questions or service issues directly to BalsamWest at support@balsamwest.net  They are able to trouble shoot with you and can ‘look’ at downline issues all the way to your home. If they can’t resolve your problem remotely, they will set up a service ticket for a repair visit.  In most cases, you should get a reply from BalsamWest within 36 48 hours, excluding Sundays and holidays.  CALL BEFORE YOU DIG!!

23

 Member Services has 3 departments offering fee-based services: R&M – in home minor repairs and maintenance  Off-season home inspections if you have HOA turn off water to your home Landscaping – yard maintenance and cleanups  Also handle maintenance of community roadways and common areas Outside Services – renovations, home improvements  Construction management for home projects for a fee G&A – management and admin of these services

24

A small sample of what your R&M team can do:  Change light bulbs and smoke detector batteries  General Household Maintenance  Small Plumbing and Electrical Repairs  Home Renovations, large or small

 Heating and Air Unit Filter Replacement  Pressure Washing and Window Washing  Gutter Cleaning  Installation of Water Cop System  Winterize Your Home  Grinder Pump Maintenance  Off Season Weekly Home Inspections

25

A small sample of what your Landscape Department can offer: Member Services provide the following Landscape services:  Spring and Fall Clean Ups  Hemlock & Spruce Treatment  Routine Yard Care and Maintenance  Seasonal Plantings  Rockwork, Landscape and Drainage  If we can’t do it, we can get it done for you Our competitive approach….. • Individualized, on-site review and cost estimate. • When you contract with us, you invest in your community. • Insured workers and vendors on the job. 26

A small sample of what your Outside Services team can do:  Contractor Management for Any Size Project  Home Renovations, Large or Small  Plumbing and Electrical  House Painting  Roof Repair and Replacement  Heating and Air Conditioning Replacement

27

Financial Review

Tim Lamphier, CFO On behalf of Herb Walter, Treasurer

28

 HOA Operations  Funded by the Annual Assessment (dues)  Member Services  Funded by Discretionary Property Owner Spending a. R&M Services (by in-house staff) b. Residential Landscaping Services (by in-house staff) c. Outside Services Projects (by sub-contractors)  Cullasaja has the only HOA on the “Plateau” that offers such a robust Member Services program.

29

Favorable (Unfavorable)

Actual 2024 Budget 2024

Annual HOA Fees

$1,285

$1,284

$1

Other HOA Revenue

$468

$454

$14

Net Member Svcs. Revenue

$2,600 $4,353

$1,915 $3,653

$685 $700

Total Revenue Payroll Expense

<$1,948> <$2,038> <$1,895> <$1,521>

$90

Other Operating Expense

<$374>

Total Expense

<$3,843> <$3,559>

<$284>

Net HOA Operations

$510

$94

$416

Excellent financial performance by Member Services departments since 2016 has provided $1.7 million to support key HOA initiatives. Member fee increases have been reduced by an average of $860 annually over the last five years because surplus funds have been allocated as follows:  $600,000 → Repayment broadband construction loan  $600,000 → Capital Replacement Fund – Increased replacement costs  $275,000 → Capital Additions Fund – Maint. Bldg. Addtn./New Capital Purchases  $196,000 → Ravenel Lake Association – Lake Dredging Replacement Reserves adequately funded No special assessments Infrastructure improvements funded Strong financial stewardship

31

Member Services - Total Annual Net Profit $1.7M in Total Net Profit During This Period

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

$436,436

$360,115

$203,871

$158,197 $149,686

$115,133

$80,958

$77,462

$76,372

$41,844

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

32

Lot with Home 298

Lot Only 88

Current Units

Annual HOA Dues Broadband Fees Capital Additions Fee Capital Replacement Fee

$3,470

$2,950

$884

$0

$50

$50

$1,335

$1,200

Total

$5,739 $5,719

$4,200 $4,095

2024 Fees

Adj. Units for homes under construction

305

81

33

2019 2020 2021 2022 2023 2024 2025

Homes

287 287 288 289 289 293 298

Under Construction 0 1 2 3 8 8 7 Home Starts 0 1 2 2 6 6 1 Vacant Lots 91 90 97 94 89 85 81

Total

378 378 387 386 386 386 386 34

HOA Dues Breakdown

Internet Service 9%

General & Admin 18% Broadband Construction 3%

Capital Reserves 23%

Repairs & Asset Maint 12%

Lake Association 4%

Club Admin Fee 5%

Security 16%

Community Grounds 12%

35

Favorable (Unfavorable)

Actual 2025 Budget 2025

----

Annual HOA Fees

$767 $265

$767 $341

Other HOA Revenue

<$76>

Net Member Svcs. Revenue

$1,389 $2,421

$1,236 $2,344

$153

Total Revenue Payroll Expense

$77 $63

<$1,209> <$1,272> <$1,140> <$1,092>

Other Operating Expense

<$48>

Total Expense

<$2,349> <$2,364>

$15

Net HOA Operations

$72

<$20>

$92

Beginning Balance January 1 2025 Capital Additions Fees

$50,000 $20,000 $75,000 $145,000 <$26,000> <$50,000>

Transfer from Accumulated Surplus

Subtotal

YTD Expenditures*

Projected Expense thru 12/31

Projected Balance on December 31

$69,000

*2025 Expenditures include: • Outside Service Truck • Fertilizer Spreader

• Maintenance Building Restroom • Office Space Expansion

37

The long-term capital requirements to maintain and replace the infrastructure of Cullasaja HOA has been determined using a third-party firm who visits the community to conduct a capital reserve & replacement study (most recently in 2022).

HOA Assets (major categories)

Current Estimated Replacement Cost

Prior (2022) Estimated Replacement Cost

Roadways $2,250,000 $1,310,000 Water & Fire Suppression System $1,190,000 $1,015,000 Wastewater System $1,300,000 $1,140,000 Bridges/Culverts/Retaining Walls $2,870,000 $2,040,000 Overlook Deck/Buildings/Fixtures $1,350,000 $515,000 Vehicles/Equipment/Misc. $1,150,000 $1,240,000 TOTAL $10,110,000 $7,260,000

38

Beginning Balance January 1 2024 Capital Replacement Fees

$2,573,000

$511,000 $68,000 $400,000

2024 Broadband Fees

Transfer from Accumulated Surplus

$45,000

Interest & Other Income

Subtotal

$3,597,000

YTD Expenditures

<$553,000> <$470,000>

Projected Cost to Complete thru 12/31 Projected Fund Balance as of December 31 $2,574,000 Transfers from Accumulated Surplus have provided sufficient annual funding of the Replacement Reserves in recent years without significant Capital Replacement Fee increases or special assessments to property owners. The current fund balance aligns with reserve study requirements, ensuring the HOA is well prepared for future repairs & replacement of the $10 million in infrastructure assets as they become necessary.

39

Your Cullasaja Homeowners’ Association engages with FORVIS Mazars accounting firm on an annual basis to conduct an external audit of the accounting records. The 2024 audit resulted in an unmodified, or “clean” opinion, meaning the Financial Statements of Cullasaja HOA present fairly, in all material respects, the financial position of Cullasaja HOA. The audit reports and internal financial statements are available for review at anytime in my office.

40

41

 Currently, 298 homes and 81 vacant lots and 7 new homes under construction.  Of the 81 vacant lots, 52 are considered “Buffer Lots” or lots owned or shared by homeowners.  Of the 298 residences in the community, 270 are Cullasaja Club Members. Thus, 91% of HOA homeowners are currently Members of the Club.

42

5-Yr Total Sorted

Annual $ Average

Community

2021

2022

2023

2024

2025 YTD

$42,176,000

$1,775,000

Cullasaja Club

$47,618,550

$48,692,500 $90,723,000

$230,985,050 $46,197,010

• 3 of the last 5 years, Cullasaja has been the sales volume leader on the plateau with an annual average sales volume of $46M; outpacing its nearest competitor by an average of nearly $13M per year, or by $64M total. • During this same period, the total sales volume for Cullasaja is $231M of the $917M total, which represents 25% of all area sales and $64M more than Mountaintop, its nearest competitor during this period. $167,201,868 $33,440,374 Highlands Falls CC $21,412,500 $21,436,466 $32,536,285 $29,852,883 $8,739,100 $113,977,234 $22,795,447 Highlands Cove $15,494,500 $23,921,000 $27,378,628 $26,374,121 $8,684,000 $101,852,249 $20,370,450 Highlands CC $22,602,500 $16,630,750 $11,771,500 $29,272,500 $8,220,000 $88,497,250 $17,699,450 Wade Hampton $20,943,575 $10,265,000 $17,050,000 $10,545,000 $8,550,000 $67,353,575 $13,470,715 High Hampton Did not report Did not report Did not report $42,095,000 $15,745,000 $57,840,000 $28,920,000 Wildcat Cliffs CC $10,333,000 $7,967,500 $14,972,741 $7,945,000 $4,750,000 $45,968,241 $9,193,648 Chattooga $10,715,000 $8,495,000 $9,020,000 $14,885,000 $43,115,000 $10,778,750 TOTAL FOR YEAR $192,029,625 $175,020,084 $188,821,654 $275,117,504 $85,801,600 $916,790,467 $183,358,093 Mountaintop $42,910,000 $44,128,368 $27,400,000 $23,425,000 $29,338,500

43

5-Yr Total Sorted

Annual Average

Total Homes

2022

2021

2023

2024

2025 YTD

Community

293 389 156 248 188 164 162 109 156

96 89 47 45 45 38 26 19 13

24 21 10 10 10

20 26 14

30 17

1 6 6 4 5 3 3 0 4

Cullasaja Club

26 22 12 12

19 18 10 10 12

Highlands Falls CC Mountaintop Highlands CC Highlands Cove Wildcat Cliffs CC Wade Hampton

5

6 5

13 15

8

9 6 5 9

10

4 3 4 9

13 11

8 5 3

4 5

Chattooga

7

High Hampton

Did not report

Did not report Did not report

97 1865

90

100

32

418

111

85

TOTAL FOR YEAR

• Cullasaja continues to lead the plateau 96 units sold over the past 4 1/2 years and only 1 so far this year. This is an average of 24 sales per year. • During this same period, nearly 1 out of every 4 plateau area homes sales occurred in Cullasaja (96 out of 418 sales, or 23% of total plateau sales).

44

Annual Average Home Sales Price

5-Year Avg Home Price (as of 8-11-25)

Community

2021

2022

2023

2024

2025 YTD

Mountaintop High Hampton

$3,575,833

$4,412,837

$5,480,000

$4,685,000 $4,677,222 $3,721,250 $1,758,274 $3,515,000 $3,021,100 $2,251,730 $1,986,250 $1,756,051

$4,889,750 $4,608,684 $3,936,250 $4,306,736

Did not report Did not report Did not report

Chattooga

$1,530,714 $1,936,813 $1,903,961 $1,831,483 $1,883,542

$2,831,667 $1,993,417 $2,053,000 $2,219,789 $1,663,075 $995,938 $1,190,915

$1,961,917 $4,262,500 $1,251,396 $1,804,000 $1,497,274 $2,434,625 $1,955,616

$2,511,387

Highlands Cove Wade Hampton Cullasaja Club Highlands CC Wildcat Cliffs CC Highlands Falls CC

$1,736,800 $2,337,561 $2,850,000 $2,314,671 $1,775,000 $2,130,274 $2,055,000 $1,870,124 $1,583,333 $1,558,998 $1,456,516 $1,466,479

$794,846 $973,295

$1,803,811

$2,170,080

$2,580,916

$3,041,320

$2,535,331 $2,426,291

ANNUAL AVG

• Cullasaja’s Average Home Sales Price continues to fluctuate based on current market demand and availability. • The average sales price between 2021 and today is $2.13M, or $296K less than the plateau average of $2.42M for the period.

45

Total 10-Year Sales Volume for Plateau Area Communities (2016 to 2025 YTD)

Cullasaja Club

$361,996,718

Mountaintop

$246,208,693

Highlands Falls CC

$160,701,412

Highlands Cove

$143,358,992

Highlands CC

$140,562,050

Wade Hampton

$113,246,325

Wildcat Cliffs CC

$68,444,241

Chattooga

$63,102,000

$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000

46

47

 To maintain the safety and privacy of our community, only pre-approved guests and workers are permitted entry through the guard gate. Individuals who are not on the approved list will be turned away.  Planning a Visit? Let Us Know! To avoid any inconvenience or awkward moments, please notify the Guard Gate in advance of any expected visitors— whether they’re friends, family, vendors, or contractors.  Simplify with a Long-Term Guest List For frequent visitors to your home, we offer a convenient Long-Term Guest List . Once added, these individuals will have seamless access without needing repeated approval.  One-Time Visitors For occasional guests or workers, a quick call to the Guard Gate ahead of their arrival ensures smooth entry and helps us maintain our community standards.  Thank you for helping us keep our neighborhood secure and welcoming!

48

 Golf Carts- golf cart operators must abide by the HOA rules of the road while on any Cullasaja paved surfaces, and all Club rules while operating a cart on Club property. This includes being a licensed driver, and following the rules of the road like stopping at all stop signs and cart path crossings, maintaining the speed limit, etc.  Short Term Rental Reminder – A two-week minimum rental period on any home inside the gate is required. This is monitored via guest entry at the guard gate. Entry passes only granted every two weeks.  Please wear a PFD while out on Ravenel Lake . Swimming is prohibited.

49

 Bear Safety – Don’t feed bears intentionally or unintentionally! Lock car doors and close garages, and always be aware of your surroundings, especially if you encounter bear cubs.

50

51

 The purpose of the ACC is to ensure that any installation, construction, or alteration of a Structure on any Lot aligns with the architectural design, quality, and aesthetic standards of the Cullasaja development.  The ACC has full authority to take all actions necessary or appropriate to fulfill this purpose, including—but not limited to—reviewing and approving or disapproving plans and specifications for such projects.

52

1. Site Plan Showing the Area Impacted 2. Floor Plan of The Area Impacted

3. Elevations Including Colors, Materials, Design Elements 4. Estimated Overall Costs and Backup from Contractors 5. Landscaping, Exterior Lighting and Tree Removal or Add Plan 6. Written Narrative of the Improvement for the ACC to Review  Handwritten submittals are not adequate and will not be reviewed or approved by the ACC.  Note: the ACC requests at least 14 days for review and approval of exterior modifications, however the response time is much shorter if you have completed the items shown above.

53

 Prior to any exterior modification including landscaping, the property owner must get written approval from the ACC before any alterations are made.  The ACC Standards are currently undergoing a comprehensive review to ensure they reflect today’s advancements in products, technology, and construction practices. Originally developed over 30 years ago, these Standards are being updated to meet the evolving needs of the industry and maintain their relevance in a rapidly changing environment.  The ACC Submittal Process is Simple . Please call Monica when considering [and before commencing], any exterior projects, large or small, whether new construction, landscaping changes, or any modifications to the exterior of your home or property. ONE CALL….THAT’S ALL (828) 526-3646

54

 Hired IPM to assist with intake/outtake due to volume of recent projects, which has grown exponentially.  Time to approve projects has been cut in half .  Created a digital database for every lot in the community that shows each plat map, topo, etc.  Improved consistency, better assurance of compliance, and quicker close out and deposit returns.

55

 Since January 1 st , 2024, the ACC has reviewed 154 submissions for exterior alterations and approved 144 of them (with certain conditions or changes to plans). Only two projects were rejected.  Over 4,400 emails have been sent or received during this timeframe.  Currently, there are 77 submissions open and under review including 11 new home construction projects and 21 exterior renovation projects/.  The workload has increased exponentially since 2020.  The HOA Board recently approved adding two volunteer advocates to assist with ACC duties in the beginning stages of submittals to the ACC.  The ACC has found that having advocates getting involved early in the planning stages can expedite ACC approval with the property owner achieving primarily what they desired.

56

 Tree Removal/Heavy Pruning Approval – the natural beauty in Cullasaja can be attributed to the lush and well-maintained landscaping. To that end, there are strict rules about cutting down trees and trimming vegetation.  Cutting or removing any living or dead tree that is 3-inches or greater in diameter at 2 feet above ground requires advance written approval by the ACC. Removal or pruning of vegetation like Rhododendron or Mountain Laurel beyond 1-2 years of growth requires ACC approval in advance.  Failure to get pruning or cutting approved may result in fines of up to $50,000. If in doubt, please contact Gary or Chuck in the HOA office for guidance.

57

Infrastructure Security

Common Property Member Services General Operations Other

58

59

60