Encore Housing Opportunity Fund Investment Manager LLC

Item 5       Fees and Compensation
A. How Encore is compensated for advisory services. Encore’s fee and compensation
   arrangements may vary, and the specific terms of such arrangements are detailed in each
   Fund’s Offering Documents.
   In addition to the management fee, the General Partner of a Fund receives a carried interest
   allocation (the “Carried Interest”) entitling it to a prescribed portion of a client’s profits.
   Management fees payable to Encore in respect of individual investors in a Fund are negotiable
   and/or may be waived.
   The Adviser’s fee schedule is omitted because this Brochure is only being delivered to
   “qualified purchasers”, as such term is defined in the Investment Company Act of 1940, as
   amended (the “Investment Company Act”).
B. Deduction of fees from Client assets. The Funds generally pay the management fee to
   Encore quarterly in arrears. The management fee is generally deducted from the assets of the
   appropriate Fund and the investors in such Funds are not separately billed for such services
   by Encore.
C. Other types of fees or expenses.

   Generally, the Funds are responsible for all costs and expenses incurred in connection
   with carrying out the business of the Fund including, but not limited to: (a) all out-of-
   pocket fees, costs and expenses (including travel) directly related to the making,
   management and disposition of investments; (b) all out-of-pocket expenses directly related
   to the purchase or sale of proposed investments which are not consummated; (c) all
   administrative expenses of the Fund such as the costs of the annual audit and the
   preparation and distribution of financial, tax and other reports to investors and other legal and
   accounting expenses; (d) expenses relating to meetings of investors; (e) insurance,
   indemnification or litigation expenses; (f) any taxes, fees or other governmental charges
   levied against the Fund; (g) expenses of liquidating the Fund; (h) organizational expenses up
   to a specified amount in the applicable Fund’s governing documents and (i) all other expenses
   that are not expenses of the General Partner. Entities owned by the Fund are responsible for
   developer fees for individual projects. Such fees are allocated appropriately across each
   investment in accordance to applicable governing documents.

   Any expenses common to one or more of the Funds or investments by the Funds or to any
   other accounts managed by Encore generally will be allocated among such entities or
   investments on a basis reasonably believed to be equitable and fair by Encore in accordance
   with the Funds’ governing documents and Encore’s policies. The costs and expenses directly
   relating to a Fund investment will be generally allocated between the Funds in proportion
   to their respective commitments to such investment.
   To the extent any break-up fees or any other types of transaction fees identified in a
   Fund’s governing documents are earned in connection with a Fund’s investment activities,
   such fees may be paid to Encore or any of its supervised persons and, generally, such fees
   will be applied as a credit to the next management fee payable by the Funds.

   Please refer to the Funds’ Offering Documents for further information regarding the fees and
   expenses of Encore and the Funds.

D. Payment of fees in advance. As described further in Item 5.A. and B., the management fee
   is generally paid quarterly in arrears. However, Encore may charge some clients in advance
   if the client has arranged this with Encore.

E. No compensation for the sale of securities. Neither Encore nor any of its supervised
   persons accepts compensation for the sale of securities or other investment products,
   except as may be described in Item 5.C. of this brochure.

Item 7         Types of Clients
Generally, Encore provides investment advisory services to the Funds, which are privately offered
pooled investment vehicles and privately offered real estate investment trusts that are exempt from
registration under the Investment Company Act of 1940, as amended. Fund investors may
include, without limitation, high net worth individuals, pension plans, trusts, financial
institutions, endowments and other U.S. and non-U.S. entities. Each investor is required to meet
certain suitability requirements.