For as little as $65 your association and management have made CSA timeshare protection available to protect your vacation(s) against the unforeseen and unpredictable. For more information on this affordable peace of mind, please visit www.tradingplaces.com/protectme

PROTECT YOUR TRAVEL INVESTMENT!

“Aloha Nuhou”Hawaiian for “Good News”

Aloha Fellow Kahana Falls Owners,

You will shortly be receiving your annual billing statement for 2016, the operating

and reserve budget for the same period, and the Assessment, Billing and Collection (“ABC”) Policy.

The Board of Directors is pleased to inform you that there will be no increase in maintenance fees for 2016. The state of Hawaii has lowered the property valuation appraisal for Kahana Falls, which will result in a lower property tax bill in 2016. This savings will fund a slight increase in operating expenses and a modest increase in replacement reserve funding for maintenance and improvement of our resort assets and amenities.

Our resort management continues to do a great job of keeping operating expenses under control, and Trading Places International (TPI) continues to generate growing rental income on HOA-owned units that would otherwise be vacant. As a result, the net increase to operating expenses in 2016 will be less than 1%.

Last year, we included an increase in maintenance fees to help fund modernization of our elevators. We are pleased to report that, with the help of Elevator Consulting Services (ECS), we have chosen and completed negotiations with an elevator company, Schindler Elevator Corporation, and expect the project to begin very soon. This is approximately a 10-month project, so we expect to have modern, reliable,

safer and more energy-efficient elevators by the end of next summer.

One of the most critical financial items that the Board must manage well is ensuring that the resort has adequate replacement reserves to maintain and improve our resort assets and amenities. Contrary to the beliefs of many, replacement reserves are not just for the future. They must be built up while the current owners are using and enjoying the assets and amenities, causing them to deteriorate. Even though very large reserve expenditures (such as the elevator project costs) arrive infrequently, the cost accrues slowly and regularly on a daily basis. When we as current owners pay for their upkeep on an ongoing basis through reserve contributions, the future takes care of itself and the funds are available as needed. As we discussed in this letter last year, while reviewing the funding needed for the elevator modernization, we also adjusted our replacement reserve funding based on a third party review of our replacement reserves. We continue to pursue a plan to ensure that our replacement reserves are adequate to continue to maintain and improve our resort assets and amenities for our owners without putting an unreasonable burden on our owners. To that end, the Board has approved a modest increase in the assessment for reserves of 4%. As mentioned earlier in this letter, this increase is being covered by the reduction in real property tax expense; therefore, your payment will not change.

(continued on page 3)

Kahana Falls Owners’ Journal 2015, Issue 2

Kahana Falls Resort is professionally managed by

From the Board

Manager’s PipelineAloha Kahana Falls Owners!

Welcome back to your bi-annual update on what is happening at the resort. We have completed one large project in the rooms and have several more in the works.

We have continued to have high occupancy since the last newsletter, with our percentages remaining in the high 80’s to mid-90’s.

After several months without one, we finally have a new Front Desk Manager – Garrett Chow. Garrett has lived on Maui most of his life, having grown up in Hana and Lahaina. He has worked in various areas of the hospitality industry including other resorts on the island. During your next visit, please welcome Garrett to the Kahana Falls family.

Our new couch and chairs for the 2 bedroom units arrived and were installed over the last few weeks. These units now have the modified sectional, which seats 5, along with a new occasional chair giving the unit the much needed additional seating. The sectional is in a varied blue, green and white pattern with coordinating modern tropical throw pillows. The chair is a taylor tonic blue. The colors really help to brighten up the units. As an additional bonus, we received an upgraded, higher quality hide-a-bed mattress than what typically comes with a sofa sleeper, at no additional charge.

For many years, Kahana Falls has been a big supporter of Maui Charities. In keeping with this tradition, many of the old sofas from the 2 bedroom units are being donated to charities such as Habitat for Humanity, Women Helping Women and Salvation Army. We donated our old bedroom lamps, which were replaced last year, as well, and will continue to donate furniture to these organizations as we replace it in the future.

During the last board meeting the decision was made to install new flooring in all the A units throughout the property. All the carpet in the units will be replaced with a high quality Allure vinyl bamboo. The product comes in 6” x 24” planks with the color and texture of real bamboo, which upon sight will look like the real thing. The installation is very easy and will be done by our in-house maintenance team, helping to keep the cost down. The entire project will take approximately 1 year, as they will be doing the installation when the rooms open up for their maintenance week.

Another project in the works is the Mattress replacement. We are replacing all regular queen size mattresses (with the exception of the Murphy Bed mattresses which do not get as much use and will be replaced in a couple years) with a new style memory foam mattress. The new style memory foam mattresses are as comfortable as the old style, if not more so, but do not have the heat retention issues the old style had. We have had two in different units on property for around 6 months and have had excellent reviews from the guests in those units. The replacement mattresses for all the other units are on order and will be in before the end of the year.

The A/C system was replaced in the Ohana Room recently. The new system is much more powerful than the old one so now the entire room cools off very quickly instead of having to wait 15 to 20 minutes, if not more, for it to cool down as was the case in the past. We are in the process of replacing the Dolphin Room system as we speak. Both the Ohana Room and Dolphin Room’s systems are Energy Star, which will help keep the energy cost down while keeping both rooms cool.

We have quite a few painting projects going on as well. As always, we continue to touch up the units each week as needed. We are also working on the black metal railings around the property, refinishing the walkway floors and ceilings in both towers and painting the outside of the clubhouse.

Those are our biggest “in the works” projects. However, as always, we have many more projects we are working on each and every day. Be sure to come to the Owners Meeting during your next visit to receive a full update of everything we are currently working on and projects we are looking at for the future.

Mahalo Nui Loa!

Suzie Moore, Resort General Manager

Suzie Moore

2

Kahana Falls Resort is professionally managed by

Owner SpotlightIn this newsletter, I would like to introduce to you more of

our longtime owners – James and Bonnie Walker. Mrs. and Mrs. Walker first visited Maui for their honeymoon, staying at the Aston Mahana. While in town, they were approached about going to a Timeshare presentation. They said they usually do not do that kind of thing but figured why not. Although Mr. Walker is not one who typically makes spur of the moment decisions, he and Mrs. Walker decided they were having such a wonderful time on Maui that purchasing a week at Kahana Falls would give them the opportunity and reason to return every other year, and the lockout unit would give them the flexibility to get 2 weeks instead of only one. During subsequent years they have purchased a couple Hale Kipa units, so they now are able to visit for 2 weeks every year. Over the years they have purchased additional timeshare units elsewhere, but Kahana Falls was their first. Because of this, Kahana Falls holds a special place in their hearts. Originally they visited Maui during the summer months because they both worked in education, but now that they are retired they like to visit in the fall. Combining their weeks at Kahana Falls with weeks they own at other resorts provides an extended vacation of 5 to 6 weeks each year, staying a couple weeks on different islands.

In the beginning they did all of the tourist things like snorkel trips, luaus, swap meets, helicopter tours and different shows. Now they use their time on Maui to

relax and not feel pressured to have to do anything. They will still do activities like going to a show or may even try ziplining, but for the most part, they prefer to spend their time relaxing at the resort or at Kahana Bay, which is their favorite beach on the island. There is one thing they do make a point of doing every year though, and that is eating at Kimos. They had a special dinner at Kimos during their Honeymoon and have made a tradition of celebrating their anniversary there every year since.

When asked what they like best about Kahana Falls they both agree it is the atmosphere, including the pool, the small size and layout of the property, as

well as the staff members who rarely change, giving them a feeling of coming home every year. They love the area, how quiet, well maintained and consistent the resorts is, and have always had a good feeling about purchasing here. During the many years they have owned at Kahana Falls, they have never banked their time but instead choose to return to their home away from home year after year. We certainly enjoy seeing the Walkers return to Kahana Falls each year and will do so when they come home next year.

Aloha!

MAUI FRIDAY TOWN PARTIESTime: 6:00 p.m. to 9:00 p.m.FREE weekly event featuring live music, sidewalk vendors, food booths, and a beer garden.

Locations:First Friday - WailukuSecond Friday - LahainaThird Friday - MakawaoFourth Friday - Kīhei

2ND ANNUAL MADE IN MAUI COUNTY FESTIVAL11/7 • 8:00 a.m. to 4:30 p.m.Over 130 vendors will offer a wide variety of made in Maui County products, including foods, produce, art, crafts, jewelry, fashion, gifts, collectibles and more – ALL in one location! Attendees will also enjoy demonstrations, a fashion show, food trucks, and prize drawings.

MAUI KUMAMOTO KENJIN KAI FAMILY PICNIC 11/8 • 10:00 a.m. to 2:00 p.m.Be part of a potluck lunch, followed by great entertainment!

VARIOUS ACTIVITIES – HULA O NA KEIKI 11/13 - 11/15Join in a weekend of Hawaiian cultural festivities at the 25th Hula O Na Keiki; the weekend's festivities include continuous live Hawaiian entertainment, cultural demonstrations and workshops, an arts and crafts fair, and delicious food. For information, call 800-262-8450 or visit www.hawaiiculture.com.

18TH ANNUAL LIGHTING OF THE BANYAN TREE @ BANYAN TREE PARK 12/5 - 12/6 • 9:00 a.m. to 7:00 p.m.Probably the most famous landmark in Lahaina, the Banyan Tree has a dozen main trunks and spreads over the better part of an acre. On Saturday at 6:30pm, the historic Banyan Tree will be lit with 6500 colored Christmas lights and will remain lit for the entire holiday season. Keiki activities will kick off at noon with the arrival of Santa at the North Pole. Other activities include cookie decorating, face painting and Christmas crafts. The LahainaTown Action Committee requests one canned or non-perishable food item for admission to the “North Pole” winter wonderland.

*TPI & the Kahana Falls Resort are not responsible for events operated by and information provided by third parties. The information is provided as a courtesy to help our guests and owners in planning their vacation experience while at the Kahana Falls. For participation, updates or additional information regarding activities or events, please contact the provider directly.

Maui Events*

Happy Guest Comments“Everything was perfect.” – Expedia Guest

“Love it here!” Expedia Guest

“Excellent unit with great views! Thank you for making our stay great! Would stay here again!” – Guest of Owner

“Lori was amazing. She helped us with everything!” –Guest of Owner

“The grounds were beautiful! Would recommend to anyone!!” – Guest of Owner

“Always nice to return. Staff great; Betty is the best!” - Owner

“Mahalo for another great time on Maui.” – Rental Guest

BONUS WEEK

OFFER!*Deposit your week and receive a bonus week!

Call 866-889-9369 ext. 1 to deposit today orvisit us online at www.tradingplaces.com/exchange

*Use Promo Code: TPIBW. Week must be deposited by 1/31/2016 and at least 120 days before start of reserved use week. Valid for new deposits only. Bonus Week is subject to a $199 service fee and is valid for a reservation in a unit up to the same size as the unit deposited. The Bonus Week expires one year from arrival date of week deposited. The reservation using the Bonus Week must be made within 45 days of travel. Offer is based on availability, not combinable with other offers, and is subject to change without notice.

TPI ExchangeRemember your

exchange benefits:• FREE membership• Low exchange rates• Great destination options• Online exchange 24/7• No-cost search first• And more!

Contact Trading Places International today!exchange@tradingplaces.com

866-889-9369 ext. 1

This graph is based on total available room nights:Un-occupied: Includes no-shows, late check-ins and early check-outsOwner: Includes Owner or Guest-of-Owner usageRental: Includes Owner and HOA rentalsTPI Exchange: Includes exchanges booked through Trading Places InternationalRCI Exchange: Includes exchanges booked through RCIOther: Includes exchanges booked through other exchange companies

Who is staying atKahana Falls?

January through July 2015

2016 Board Meetings Dates

Wednesday, March 23, 2016Kahana Falls

Thursday, March 24, 2016Annual Meeting - Kahana Falls

Tuesday, September 20, 2016Trading Places International

Contact your board of directors at board@kahanafalls.com

For past board meeting minutes, please visit your Owners Corner at www.kahanafalls.com/owners Username: kahana/password: tpi

Tell Us Your Story!We’d love to hear from you. Will you share your comments and vacation photos with us? Please send your story and any beautiful (high-res) vacation shots to Trading Places, c/o Amy Strange at 25510 Commercentre Drive, Suite 100, Lake Forest, CA 92630, or email to Joanne.Hallert@tradingplaces.com.

OWNERS’ OPTIONSAs an owner of a unit (or even multiple units) of the beautiful Kahana Falls Resort, it can sometimes be a bit overwhelming. Here, we’ve provided a simple breakdown of your options to make the most out of your timeshare:

• Use your week to travel: Planning to visit the island this year? Reservations can be made 18 months in advance, to the year. For example, WRITTEN requests for 2017 reservations were submitted starting July 1, 2015. On October 1, 2015 all owners could write or call TPI Owner Services to make their 2017 reservation. Check-in days are Thursday through Sunday. REMEMBER: All reservations are subject to availability, so we recommend making your request early!

• Send a guest: Not able to travel but want to send a friend or family member? Let us know! Make your reservation request as mentioned above, but be sure to tell us the name(s) of the guest(s) utilizing your timeshare for the week.

• Exchange for a different resort: Not only can you use your week to travel to Kahana Falls, but you can use it to travel to other locations too! Kahana Falls is affiliated with both TPI Exchange and Interval International, but it’s up to you, the owner, to decide which company works better for your vacation needs. Deposits (just like reservations) are subject to availability – so it’s important to make your request early. Also, maintenance fees must be paid in full for the year your plan to deposit. This can be done online at www.kahanafalls.com/pay or with a TPI Owner Services agent.

• Utilize TPI’s rental program: Looking to rent out your week at Kahana Falls? Contact our TPI Rental Services staff! And not only can you rent out your week, but you can take advantage of the great rental deals featuring stays at a variety of our managed resorts. Book an extra week at Kahana Falls or stay a few days at a resort in Puerto Vallarta, Palm Desert, or even Las Vegas.

Additional Resources:Trading Places International: www.tradingplaces.comTPI Exchange: www.tradingplaces.com/exchange or call 1-866-889-9369 ext. 3TPI Rental Services: www.tradingplaces.com/rentals or call 1-866-889-9369 ext. 4Interval International: www.intervalworld.com or call 1-800-828-8200Kahana Falls: www.kahanafalls.com username: kahana password: tpiTPI Owner Services: ownerservices@tradingplaces.com or call 1-866-889-9369 ext. 1

3

(Board of Director's message continued)

Finally, we are pleased to report that our delinquency rate is showing signs of reversing itself and trending down. We expect to continue to see gradual improvement as we go forward with the Great Destinations sales program and work through our backlog of unsold inventory, turning it back into productive ownership that contributes maintenance fees to manage and maintain the resort.

The Board remains committed to improving the vacation experience of our owners and guests while maintaining prudent and sound fiscal responsibility for the associations. We value your feedback and hope to see you at the annual owners meeting in March.

Mahalo to the budget committee, our on-site management team, and TPI for their hard work in preparing this budget and helping to maintain the quality of the facilities and services you have come to expect.

We wish you all a Happy Holiday season and a prosperous New Year.

Your Kahana Falls Board of Directors,Richard Roll, Milton Jantzen, Karen Cornwell, Katherine Ivey, Jesse Arman, Kevin Ramage and Martin Hewitt

Kahana Falls ResortFront Desk: 808-669-1050Resort Fax: 808-669-1848

E-mail: kfr@tradingplaces.comWebsite: www.kahanafalls.com

The Kahana Falls Resort disclaims any responsibility for claims made or the performance of goods and services

advertised in this newsletter.

Write to board members c/o TPI at the above address.

25510 Commercentre Drive, Suite 100 Lake Forest, CA 92630

OWNER SERVICES

866-889-9369 ext. 1 | ownerservices@tradingplaces.com• Book use time / Bank your week (TPI, RCI, II)• Inquire about your contract• Learn booking rules• Pay maintenance feesImportant Maintenance Fee InformationRegular association dues are billed annually and are due and payable per your ABC policy. A statement is mailed to you as a courtesy; non-receipt of a statement does not relieve you of your financial obligation.Pay Online at www.kahanafalls.com/pay

Questions about your Maintenance Fees or Assessment Billings? Call the Accounting Department at 866-932-5200 ext. 7 or e-mail billings@tradingplaces.com

EXCHANGE

866-889-9369 ext. 3 | exchange@tradingplaces.com• Competitive exchange fees & great destinations• ONLINE exchange option 24/7www.tradingplaces.com/EXCHANGE

TRAVEL & CRUISE

866-889-9369 ext. 6 | travel@tradingplaces.com• Air, car, hotel, cruise, and vacation packageswww.tradingplaces.com/TRAVEL CST # 1008862-10

RENTAL

866-889-9369 ext. 4 | rentals@tradingplaces.com• List your KFR unit for rent• Rent additional nights at KFR, or other TPI resortswww.tradingplaces.com/CONDOCONNECT• Up to 70% off last-minute vacation rentalswww.tradingplaces.com/HOTDEALS• Great weekly rates. . . Plan ahead!www.tradingplaces.com/SUITEDEALS

PROPERTY MANAGEMENT

As your management company, Trading Places is dedicated to making your property the best it can be. Please feel free to contact us at any time.

Kahana Falls Resort is professionally managed by

Mon. – Fri. 7:00 am – 6:00 pm; Sat. 8:00 am – 4:30 pm PTAloha from your Kahana Falls Owner Services Department!

Are you ready to book your 2017 reservation? Starting July 1st, requests for reservations for 2017 could have been submitted in writing only to the Owner Services team. Request forms have been mailed out with further instructions. Be sure to make your reservation plans early for the best availability.

If you haven’t already confirmed your plans for 2015 (or 2016!) – please do so now! Call 866-889-9369 ext. 1 to speak with one of our friendly and helpful Owner Services agents today. Or make your reservations online:

www.kahanafalls.com/owners/reservationrequest Username: kahana Password: tpi

Please note that reservations are not valid until they are confirmed in writing by Trading Places International.

Can’t travel? We have options for you! Deposit your week today with Trading Places and receive a week of credit for exchange to a variety of locations. Please call 866-889-9369 ext. 1 or email ownerservices@tradingplaces.com for further assistance. If you wish to deposit a future week, please remember that the association dues must be pre-paid for the year you wish to deposit.

We look forward to hearing from you soon!Your Owner Services Vacation Specialists

The annual meeting of the members is scheduled to be held at the Kahana Falls Resort on Thursday, March 24, 2016. The official agenda and proxy ballot will be sent to the owners in February of 2016.

Although all the incumbents up for re-election do intend to run this year, if you too are interested in running for the board, please see the below information for submitting a nomination form. All candidates are interviewed by the nomination committee and are kept on file should an opening become available requiring board appointment.

If you would like to run for election to a two-year term on the board, you may request a nomination form in the following ways:

By mail: Trading Places International, Attn: Dro Admin 25510 Commercentre Drive, Suite 100 Lake Forest, CA 92630

By email: droadmin@tradingplaces.com

By phone: 800-877-7976 ext. 1697624 or 1697673

By fax: 949-315-3753

To ensure proper processing time, your COMPLETED nomination form must be received at Trading Places NO LATER THAN Thursday, DECEMBER 31, 2015.

Solicitation for Nomination!Join the

Board!