Mockingbird Mobile Home Park

B&H Mobile Homes Inc,

PO Box 1084

San Marcos, TX 78667

WATER / WASTEWATER SUBMETERING ADDENDUM

Water and wastewater submetering: Resident's space and/or manufactured home is submetered (or water and wastewater. Water/wastewater bills will be Issued monthly to resident, based on resident's consumption as recorded on the water submeter for the space number described below:

Lot No. Date of Lease:

1716 Hofheinz lot# , San Marcos, Tx, 78666

Resident's monthly bill for water/wastewater passing through (lie Individual submeter for resident's manufactured home and space will only cover water/wastewater consumed within resident's home and surrounding space. The bill (or resident's submetered water/wastewater will not include any Water/wastewater for common areas or common facilities. Resident's per-gallon cost will be the same as the average cost per gallon winch the utility company charges owner. There will be no extra charge of any kind for Water/wastewater consumption through resident's submeter. Billing calculations shall be governed by the rules of the Texas Natural Resource Conservation Commission_, 30 T.A.C. Chapter 291, Subchapter H.

Resident's monthly Water/wastewater bill is payable seven (7) days after date of Issuance by owner. If it is not paid after seven (7) days, resident is liable for a late payment charge of 5% of the bill. Payment of Water/wastewater bills shall be to owner's representative at the same location where rent is paid. A narrative summary of the Texas Natural Resource Conservation Commission's Water/wastewater submetering rules is set forth below.

RESIDENT (all residents must sign here) OWNER OR OWNER'S REPRESENTATIVE

____________________________________________________ ____________________________________________________________

SUMMARY OF TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

SUBMETERING RULES FOR WATER AND WASTEWATER

The Texas Natural Resource Conservation Commission has adopted comprehensive water and wastewater submetering rules. Either those rules or a summary of those rules (approved by TNRCC) must be attached to your space and /or manufactured home lease. The most important provisions of those rules are summarized as follows:

Submeter bills in general. the resident's submeter bill may only cover water/wastewater consumed within the resident's manufactured home and space and measured by that unit’s submeter. Water/wastewater consumption for the common areas and common facilities are the sole responsibility of the rental community owner. Each month the water submeter bill must be given as a separate bill or as a separate, distinct line item on a multi-item bill. The bill must state that it is for submetered water/wastewater.

How your submeter bill is calculated. The resident's bill must be calculated in the following manner: After the rental community water/wastewater bill is received from the utility company, the rental community owner shall divide the net total charges for water/wastewater consumption, plus applicable tax, regulatory assessments, and surcharges, by the total number of gallons of water consumption on that bill to obtain an average cost per gallon. This average per-gallon cost shall then be multiplied by each resident's per-gallon consumption to obtain the charge to the resident. The computation of the average cost per gallon shall not include any penalties charged by the utility to the rental community owner for disconnect, reconnect, late payment or other similar service charges.

What your submeter bill must show. The resident's bill shall show all of the following information:

the date and reading of the submeter at the beginning end at the end of the period for which the bill is rendered;

the number of gallons metered;

the computed rate per gallon;

the total amount due for Water/wastewater used;

a clear and unambiguous statement that the bill is not from the water/wastewater utility, which shall be named In the statement;

the name and address of the resident to whom the bill is applicable;

the name of the firm rendering the submetering bill and the name and title, address and telephone number of the person or persons to be contacted in case of a billing dispute;

the name, address and telephone number of the party to whom payment is to be made; and

the due date and the late payment penalty (if a late penalty has been agreed to in the lease).

Due date. The due date of the resident's submeter bill shall not be less than seven (7) days after issuance. A payment of a bill for submetered water/wastewater is delinquent if not received by the party indicated on the bill by the due date. The postmark date, if any, on the envelope of the bill or on the bill itself shall constitute proof of the date of issuance. An issuance date on the bill shall constitute proof of the date of issuance if there is no postmark on the envelope or bill. If the due date falls on a holiday or weekend, the due date for payment purposes shall be the next work date after the due date.

(Over)

Late payment charges. A one time penalty not to exceed 5% may be imposed for payment of the submetered water/wastewater bill after the due date (i.e., for late payment). In order for late payment penalties to be charged, the bill must indicate the amount due if paid by the due date and the amount due if a late penalty is incurred. No late penalty may be applied unless agreed to by the resident in a written lease which states the exact dollar or percentage of the late penalty.

Reconnect fees. A reconnect fee may be charged if service to the resident is disconnected for nonpayment of submetered bills in accordance with TNRCC rules for discontinuance of service (summarized below). The reconnect fee shall be calculated based on the average actual cost to the rental community owner for the expenses associated with the reconnection, but under no circumstances shall it exceed $10. No reconnect charge may be charged unless agreed to by the resident in a written lease which states the exact dollar amount of such reconnect charge.

Additional charges on the resident's bill. The rental community owner may not impose any extra charges on the resident over and above those charges which are billed by the utility company to the rental community owner. Such bill may not include a deposit, late penalty, reconnect charge, or any other charge unless otherwise provided as set forth above.

Owner's records. The rental community owner is required to keep the following records for the current month and the past twelve (12) months:

all water/wastewater utility bills from the utility company.

all of the residents submeter readings and bills;

the owners calculations on how the average per-gallon was determined for submeter billing purposes;

separate resident accounts for monthly rent and for submetered water/wastewater bills; and

any testing results on the submeters if they have been tested during that time.

The resident may examine the information during reasonable business hours at the resident manager’s onsite office. If there is no such onsite office, the resident may examine the records at a mutually convenient time and place.

Disputes. Any disputes regarding computation of the resident's submeter bill must be resolved between the rental community owner and the resident. If a dispute arises and if an investigation is necessary, the rental community owner is required to promptly investigate and report the results to the resident within thirty (30) days.

Over billing and under billing. If submetered billings are found to be in error, the rental community owner must calculate a billing adjustment. If the resident is due a refund, an adjustment must be made for the entire period of overcharges. If the current resident was undercharged, the rental community owner may backbill the resident for the amount which was underbilled. The backbilling is not to exceed six (6) months. If the underbilling is $25 or more, the rental community owner must offer to the resident a deferred payment plan option, for the same length of time as that of the underbilling. However, the rental community owner may not disconnect service If the resident falls to pay charges arising from an underbilling more than six (6) months prior to the date the resident was initially notified of the amount of the undercharges and the total additional amount due. Furthermore, adjustments for usage by a previous resident may not be backbilled to the current resident.

Discontinuance of service. Water/wastewater service may only be disconnected for nonpayment of utility bills. A resident's water/wastewater service may be disconnected If a submeter bill has not been paid within twelve (12) days from the data of issuance and proper notice has been given. Proper notice consists of a separate mailing or hand delivery at least five (5) days prior to the stated date of disconnection, with the words ‘termination notice’ or similar language prominently displayed on the notice. The notice must include the office or street address where the resident can go during normal working to make arrangements for payment of the bill and for reconnection of water/wastewater service. Unless a dangerous condition exists, or unless the resident requests disconnection, service may not be disconnected on a day, or on a day immediately preceding a day, when the personnel of the rental community are not available for the purpose of making collections and reconnecting service.

Submeter tests. The rental community owner is required to keep records of all submeters with the resident's address and date of last test, and of any tests of the submetering equipment. Each rental community owner must, upon the request of a resident, make a test of the accuracy of the residents submeter. If the resident so desires, the test must be made in the presence of the resident or his designated representative. The test shall be made during reasonable business hours at a time convenient to the resident if the resident desires to observe the test. If the submeter test indicates that the submeter is within the accuracy standards of American Water Works Association for water/wastewater meters, a charge of up to $25 may be charged the resident for making the test. However, if the submeter has not been tested within a period of one (I) year, or if the submeters accuracy is not within the accuracy standards of AWWA, no charge shall be made to the resident for making the test. Following completion of any requested test, the rental community owner shall promptly advise the resident of the results of the test.

Penalties for noncompliance. For purposes of enforcement, both the utility companies and the rental community owners are subject to enforcement pursuant to TNRCC statutes, which may involve civil penalties of up to $6,000 for each offense and criminal penalties for willful and knowing violations.

Complete copy of the rules. A complete copy of the TNRCC water/wastewater submetering rules is available for you to inspect and/or copy at the street address of the owner or management company, stated herein. The rules cover additional subjects such as (a) estimated bills in case of submeter malfunctions; (b) submeter accuracy requirements; (c) bill adjustments due to submeter malfunctions; (d) bill adjustments due to conversion from all-bills-paid to submetering; (a) location of submeters; (I) submeter testing equipment; (II) submeter testing; and (I) uniformity of submeters in the rental community.

TNRCC review. This narrative summary was reviewed by TNRCC staff and found to accurately reflect the commission rules on water/wastewater submetering in effect as of May 20, 1997. The summary was approved by the TNRCC on June 1, 1990.