Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers What is Ramapo Mountain Lakes, Inc.? Ramapo Mountain Lakes, Inc. (RML) is the Oakland NJ Corporation that owns Crystal Lake and Mirror Lake and the properties that adjoin both lakes. RML operates the Crystal Lake Beach Club, located at 61 Lakeshore Drive. What is RML’s mission? RML’s mission is to maintain and preserve our lakes as recreational assets for our community now and for future generations of Oakland residents. Crystal Lake, located on Lakeshore Drive, is a twenty six acre, recreational area for swimming, boating, fishing, and relaxing in the sun or in the shade on our tree lined beach. Mirror Lake, located on Seminole Avenue, is a 3.6 acre recreational lake suitable for catch-and-release fishing with a quiet, open area for relaxing, bird watching, and contemplation of nature. How can I obtain additional information and how can I contact RML? Our website, www.crystallakenj.com provides information on the Crystal Lake Beach Club, Ramapo Mountain Lakes, Inc. and Property and Maintenance Fees. For questions regarding shareholder information and Property & Maintenance Fees, please email [email protected]. What is the history of RML? National House and Farms Association, Inc. (NH&FAI) purchased over 700 acres of land in Oakland in 1936 for the purpose of developing and selling lots. NH&FAI incorporated Ramapo Mountain Lakes, Inc. as a New Jersey corporation in 1944. It subdivided the lots and built roads and houses from the 1940’s through 1954. Each property owner received one stock certificate in Ramapo Mountain Lakes, Inc. for each lot purchased. Each property owner is therefore referred to as a shareholder. Why did I not receive a stock certificate when I purchased my property? Over the course of time as properties were sold, the original certificates were lost or not passed to the new owners. Most RML shareholders do not have an actual original certificate or a duplicate stock certificate, which has no nominal value. Can an RML stock certificate be purchased or sold separately from the property? No. Stock certificates cannot be bought or sold separately from the sale or purchase of an RML property.

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Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Do shareholders have access to Crystal Lake and Mirror Lake? RML shareholders have access to Crystal Lake and Mirror Lake for boating and fishing. Shareholders who are not lakefront homeowners must purchase a Crystal Lake Beach Club membership for beach access and swimming during the summer season. Shareholders have a discounted price when purchasing a beach membership. The beach membership includes the P&M fee for the current year only. Who governs RML? RML is governed by an all-volunteer Board of Directors. The shareholders elect each Director to serve a 3-year term. The Board of Directors elects the officers each April. An annual shareholders meeting is conducted on the first Friday of March, during which proxy ballots and in-person ballots are counted by an independent Vote Teller appointed by the Board. Does RML operate in accordance with written by-laws? Yes. RML operates in accordance with by-laws. Refer to the website, www.crystallakenj.com to download and review the by-laws. Why has RML sent me a Property and Maintenance Fee Invoice? RML introduced annual Property and Maintenance (P&M) fees in 2012 to pay for the many expenses related to owning and maintaining Crystal and Mirror Lakes, including property taxes, dam maintenance, state mandated dam inspections, and insurance. RML mails a Property and Maintenance Fee Invoice to each shareholder in February. Each invoice includes the shareholder name(s), owner’s address, and the current RML property block and lot number. The invoice includes the current fee and any unpaid fees for previous years. The P&M fees are part of a package that includes the RML President’s letter to shareholders, a proxy ballot, and a detailed P&M budget. Why did RML not require a P&M fee before 2012? RML paid property and maintenance expenses from a combination of income from the Crystal Lake Beach Club and contributions from Crystal Lake lakefront homeowners before 2012. Those income sources became inadequate to meet increasing property and maintenance expenses. The Board of Directors began investigating alternate methods of increasing income for over a decade. RML conducted an informational meeting January 26, 2012 at the Valley Middle School to explain the introduction in 2012 of annual shareholder P&M fees. RML’s Attorney described the formation of RML, the chain of title in RML shareholder properties that refers to one of the RML Maps filed in Bergen County, by developer National House & Farms Association, Inc. and the New Jersey case law related to maintenance obligations of lake community property owners. Meeting attendees received a document entitled Analysis of Formation of RML which is available for download from the RML website, www.crystallakenj.com.

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Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Why does the Borough of Oakland charge RML for the property taxes? The RML properties are private property. The Borough collects property taxes from all property owners, except for certain not-for-profit organizations, such as religious organizations. Why does the Borough of Oakland not maintain the lakes and adjoining properties? The lakes and adjoining properties are private properties. The Borough does not maintain private properties. How can I verify that my property is an RML property? National House & Farms Association, Inc. filed seven maps with the Clerk of the County of Bergen between June 1944 and June 1947. The seven maps define the properties within the RML community by the block and lot numbers in use until the State of New Jersey required municipalities to assign new block and lot numbers. The new block and lot numbers began appearing in Oakland’s tax maps in 2005 and in the municipal tax bills in 2006. The individual RML maps vary in size. Each map contains a large amount of detail. The scanned files of each map are too large to include as download attachments on the RML website. A single combined map is available from www.crystallakenj.com. Navigate to Properties Info, RML Maps. Download or open the file at the page bottom, RML Map Sec 1-6.pdf. RML Map Section 1 1A 2 3 4 5 6

Date Filed in the Office of the Clerk of Bergen County June 9, 1944 August 15, 1946 January 3, 1945 May 21, 1945 April 4, 1947 June 6, 1947 June 6, 1946

RML Map No. 3363 3471 3375 3387 3526 3537 3456

RML shareholder properties are defined by the seven RML Maps. RML maintains a cross reference of the current block and lot numbers to the prior block and lot numbers. Two lists of the RML properties are available at www.crystallakenj.com. Navigate to Shareholder Info. Two files are provided on the Shareholder Info page. Either file can be used to verify shareholder status: 1. Download or open File Name RML SH Properties Block-Lot Sort.pdf. Refer to your property deed or municipal tax bill to determine your current block and lot number. 2. Download or open File Name RML SH Properties Address Sort.pdf. Find your Street and Street Address.

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Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Does my deed refer to Ramapo Mountain Lakes? Newer deeds most likely do not refer to Ramapo Mountain Lakes. Older deeds refer to one of the Ramapo Mountain Lakes maps filed in the office of the Clerk of Bergen County between 1944 and 1946. A property located in RML Section one would have text similar to the following statement: Property. The property consists of the land all the buildings and structures on the land in the Borough of Oakland, County of Bergen County, and state of New Jersey. The legal description is Known and designated as Lots Number NN A and NN B in Block Number BBBB entitled” Ramapo Mountain Lakes, Section Number One: Situated in the Borough of Oakland, New Jersey, owned and developed by National House & Farms Assn., Inc., Surveyed by Aurnhammer and Kents, and filed in the office of the Clerk of Bergen County on June 9, 1944 as Map Number 3363. Why do newer deeds omit reference to Ramapo Mountain Lakes? A property title search is the process of retrieving documents evidencing events in the history of a piece of real property to determine relevant interests in and regulations concerning that property. A title search is performed to answer three questions regarding a property: 1. Does the seller have a saleable interest in the property? 2. What kinds of restrictions or allowances pertain to the use of the land? 3. Do any liens exist on the property that must be satisfied at closing? Title search companies typically limit their searches to not more than 60 years. National House & Farms filed the RML maps at the in the Office of the Clerk of Bergen County more 67 years ago. In addition, newer deeds often omit reference to any specific map. How would I instruct a title search company to go back to the original map for my area? Instruct the title search company to conduct a “chain of title” search. A chain of title is the sequence of historical transfers of title to a property. The "chain" runs from the present owner back to the original owner of the property. Are Crystal Lake and Mirror Lake natural lakes? No. Crystal Lake and Mirror Lake are man-made lakes. Each lake was created by constructing a dam to impound a body of water inside a low area.

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Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Do the County of Bergen and / or the State of New Jersey provide funding to maintain the lakes in the county and state? The County of Bergen provides funding to maintain lakes that are located on parks that the county owns. The State of New Jersey provides funding to maintain lakes that are located on parks that the state owns. If the Borough of Oakland, the County of Bergen, and the State of New Jersey do not allocate funding to pay for the maintenance of private lakes, who pays for their maintenance? The only source of funding for the maintenance of private lakes is the local lake community homeowners. Are Crystal Lake and Mirror Lake important assets to the community? Yes. Both lakes provide recreational opportunities for residents. Crystal Lake is the only lake in Oakland that offers swimming and boating to shareholders and to the general public at a reasonable cost for membership. What is the purpose of the annual Property and Maintenance Fees? RML introduced annual Property and Maintenance Fees in 2012 to pay for the many expenses related to owning and maintaining Crystal and Mirror Lakes, including property taxes, dam maintenance, state-mandated dam inspections, and insurance. What are the types of Property & Maintenance Fees? There are three types of fees: Property Type Crystal Lake Lakefront Mirror Lake Lakefront Non-Lakefront

Applicable to The 62 lakefront shareholder properties directly on Crystal Lake The 21 lakefront shareholder properties directly on Mirror Lake All other shareholder properties

What are the 2017 Property and Maintenance Fees? Property Type Crystal Lake Lakefront Mirror Lake Lakefront Non-Lakefront

P&M Fee $390.00 $ 95.53 $ 47.76

When does RML send a Property and Maintenance Fee Invoice? RML sends each shareholder an invoice for the annual P&M fee in February as part of the proxy mailing package. The annual fee is due March 31 of each year. The annual fee is cumulative. Each invoice lists the total amount of past due fees, if any. 5

Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Does RML use the income from the Property and Maintenance Fees to pay expenses for Crystal Lake Beach Club? None of the Property and Maintenance fee income is used to pay for the expenses of operating the Crystal Lake Beach Club. RML strictly separates P&M income and expenses from Crystal Lake Beach Club income and expenses. In accordance with RML policy, P&M income cannot be used to pay Beach club expenses. What are the types of P&M expenses?          

Directors Liability Insurance Liability and Property Insurance Postage & Printing Expenses Post Office Box Rental Safety Deposit Box Rental Accounting Fees Legal Fees Bookkeeping Services Property cleaning, tree trimming & removal Grass cutting

         

Snow Removal from Mirror Lake Sidewalk NJDEP Aquatic Plant Control Permits Aquatic Plant Control Applications Dam Maintenance and Repair Debris removal from lakes Property Taxes NJDEP Mandatory Dam Inspections Corporate Income Taxes Bank Fees Office Supplies

What is Directors Insurance? Directors and officers liability Insurance (often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. What does RML pay in property taxes? RML owns five properties in Oakland, NJ. Property Description Crystal Lake Beach, 61 Lakeshore Drive, Block 1501, Lot 53, 1.169 acres Crystal Lake, Block 1501, Lot 66, 26.63 acre Mirror Lake land, Seminole Blvd, Block 4602, Lot 31, 0.135 acre Mirror Lake land, Seminole Blvd, Block 4602, Lot 32, 0.5 acres Mirror Lake, Block 4602, Lot 45, 3.650 acres Total amount of all municipal property taxes for tax year 2015

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Annual Tax $ 8,535 $ 3,623 $ 275 $ 680 $ 565 $13,678

Ramapo Mountain Lakes, Inc. Property & Maintenance Fees: Frequently Asked Questions and Answers Does the Crystal Lake Dam need repair? Yes. The 36-inch low level outlet pipe located at the spillway and its control gate should be replaced. The pipe and the control gate were installed over 65 years ago. The corrugated metal pipe has a design life of 20 years. An inspection and dye test by a NJ Professional Engineer in 2011 found evidence of corrosion and leaks. The control gate is difficult to close completely. The estimated amount of the work in 2011 was $50,000. RML has not had the funding to complete this work. P&M fees paid by RML shareholders would be the source of funding for this work. Does Ramapo Mountain Lakes comply with the New Jersey Safe Dams act by authorizing a NJ licensed professional engineer to conduct a Regular Inspection of the Crystal Lake dam and prepare a Regular Inspection Report for submittal to the NJ Department of Environmental Protection Division of Dam Safety? Yes. A NJ licensed professional engineer conducted a Regular Inspection of the Crystal Lake dam in November 2016. He prepared a Regular Inspection Report in accordance with the Dam Safety requirements and submitted it to the Division in January 2017. He determined that the Crystal Lake Dam is in Fair Condition. Fair is defined by NJDEP as “Acceptable performance is expected under all required loading conditions (static, hydrologic, seismic) in accordance with the applicable dam safety regulatory criteria. Minor deficiencies may exist that require remedial action and/or secondary studies or investigations.” The report recommends that that RML repair / replace the spillway outlet pipe as detailed in the Dam Safety Permit Application of April 2012. The fee paid by RML for the engineering services was $3,000. How can I obtain additional information and how can I contact RML? Our website, www.crystallakenj.com provides information on the Crystal Lake Beach Club, Ramapo Mountain Lakes, Inc. and Property and Maintenance Fees. For questions regarding shareholder information and Property & Maintenance Fees, please email [email protected].

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