Jefferson Parish suffered significant damage from Hurricane Katrina, and the apartment communities managed by 1st Lake Properties, Inc., incurred damage as well. We are working diligently to effect repairs as quickly as possible, under very trying physical, workforce, and supply conditions.

Although many of our properties have been significantly affected, we must continue our business operations as usual through the restoration process, and we want to provide our residents with an assistance plan in connection with their apartment leases. We have put much thought into this plan, and after much deliberation are pleased to offer our residents the following assistance plan, that will apply uniformly to all of our pre-hurricane residents:

All residents were entitled to a minimum 50% discount off September rent. If September rent was paid in full, 50% was credited to October rent. Residents whose units were substantially damaged as a result of the hurricane were entitled to an additional 25% off September rent, with the prior approval of 1st Lake Properties, Inc.

Any resident wishing to cancel their lease was allowed to do so as long as all personal belongings and trash were removed, the lease was canceled, and the apartment was completely vacated by noon on September 30, 2005. All keys, gate cards, etc. must have been returned along with a forwarding address for the resident(s) vacating the apartment. Security deposits will be handled in accordance with your lease language and the usual pre-hurricane procedures.

Residents who choose to voluntarily continue to occupy a damaged but habitable (as determined by 1st Lake Properties, Inc.) unit will be entitled to an ongoing 25% monthly rent discount until their unit is repaired. Units that are deemed by 1st Lake Properties, Inc. not to be habitable cannot take advantage of this provision.

Due to the volume of affected properties and residents, we will not be able to consider exceptions to this policy, and hope that the opportunity to terminate leases, as described above has provided a fair alternative for those situations which may not be completely addressed by this assistance policy. Current demand from hurricane related relief and restoration personnel for housing in Jefferson Parish is overwhelming, so those residents who chose the Lease Termination option described above, should have vacated their units completely by noon on September 30, 2005, or October rent was applicable and due on October 1.

Given the circumstances, we believe that this assistance policy is fair and reasonable and goes beyond our obligations as contained in your lease agreement. We greatly appreciate your cooperation, patience and understanding during this time of difficulty for all of us.