Monthly Operating Report

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Monthly Operating Report

For the Period December 1, 2008 through December 31, 2008

File with Court and submit copy to the United States Trustee within 20 days after end of month.


Required Documents	Document Complete	Explanation Attached	Debtors’ Statement
Schedule of Cash Receipts and Disbursements	X
Schedule of Professional Fees Paid	X
Bank Reconciliation (or copies of Debtor’s bank reconciliations)			X
Copies of bank statements			X
Cash disbursements journals			X
Statement of Operations	X	Exhibit A
Balance Sheet	X	Exhibit B
Status of Postpetition Taxes	X	X
Copies of IRS Form 6123 or payment receipt	X
Copies of tax returns filed during reporting period	X
Summary of Unpaid Postpetition Debts	X	X
Listing of aged accounts payable			X
Accounts Receivable Reconciliation and Aging	X	X
Debtor Questionnaire	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that the information contained in this monthly operating report (including attached schedules) is true and correct to the best of my knowledge, information and belief. This Monthly Operating Report (“MOR”) has been prepared solely for the purpose of complying with the reporting requirements of the Office of the United States Trustee in the District of Delaware and the United States Bankruptcy Code (“Bankruptcy Code”). Attached hereto as Exhibit C is “Disclosures and Disclaimers Regarding the Monthly Operating Report of WCI Communities, Inc. and Its Affiliated Debtors”, which comprise an integral part of this document that the reader should view in conjunction with this Monthly Operating Report.



/s/ Scott Perry				2/10/09
Signature of Authorized Individual				Date

Scott Perry
Printed Name of Authorized Individual


				Monthly Operating Report
		1 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Schedule of Receipts and Disbursements

For the Period December 1, 2008 through December 31, 2008


	Debtor Entities													Non-Debtor Cash Flow		Consolidated WCI Communities, Inc.
	Depository Accounts		Disbursement Accounts			Payroll Accounts			Tax Accounts			Other Accounts		Non-Debtor Cash Flow		Consolidated WCI Communities, Inc.
CASH RECEIPTS
Homebuilding & Tower Receipts	$	22,778,031	$	—		$	—		$	—		$	—	$	1,364,728	$	24,142,758
Bulk Sales / Land Sales		—		—			—			—			—		—		—
Other Misc. Receipts		29,881,178		—			—			—			—		10,175,833		40,057,011

TOTAL CASH RECEIPTS		52,659,208		—			—			—			—		11,540,561		64,199,769

CASH DISBURSEMENTS
SG&A Expenses
SG&A		—		6,080,455			—			—			—		4,237,315		10,317,770
HOA Deficit Funding		—		1,281,008			—			—			—		—		1,281,008
Payroll including taxes, benefits		—		—			5,547,648			—			—		2,136,605		7,684,254
Other Taxes		—		—			—			723,536			—		462,907		1,186,443

Total SG&A Expenses		—		7,361,463			5,547,648			723,536			—		6,836,828		20,469,474
Operating Expenses
Homebuilding Construction		—		2,379,609			—			—			—		1,703,349		4,082,959
Land Development		—		1,888,244			—			—			—		—		1,888,244
Tower Construction		—		2,280,561			—			—			—		—		2,280,561
Amenities		—		1,500,066			—			—			—		2,598,784		4,098,850
Other items		—		50,562			—			—			—				50,562

Total Operating Expenses		—		8,099,041			—			—			—		4,302,133		12,401,174
Restructuring Expenses
Interest on DIP Facility		—		794,286			—			—			—		—		794,286
Interest on Prepetition Debt		—		5,412,001			—			—			—		—		5,412,001
Professional Fees		—		6,179,333			—			—			—		—		6,179,333
Mandatory Paydown DIP		—		781,213			—			—			—		—		781,213

Total Restructuring Expenses		—		13,166,833			—			—			—		—		13,166,833
TOTAL CASH DISBURSEMENTS		—		28,627,336			5,547,648			723,536			—		11,138,961		46,037,481

NET RECEIPTS / (DISBURSEMENTS)	$	52,659,208	$	(28,627,336	)	$	(5,547,648	)	$	(723,536	)	$	—	$	401,600	$	18,162,288


				Monthly Operating Report
		2 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Schedule of Professional Fees and Expenses Paid ⁽¹⁾

For the Period December 1, 2008 through December 31, 2008


	Amount Incurred This Period (2)						Amount Paid This Period						Cumulative Amount Paid
Professional	Fees		Expenses		Total		Fees		Expenses		Total		Fees		Expenses		Total
Akin Gump Strauss Hauer & Feld LLP (3)	$	296,183	$	11,961	$	308,145	$	941,515	$	31,164	$	972,680	$	941,515	$	31,164	$	972,680
Bayard, P.A. (4)		—		—		—		124,904		22,805		147,709		248,050		57,978		306,028
Epiq Bankruptcy Solutions LLC (5)		—		—		—		371,483		—		371,483		759,434		—		759,434
Ernst & Young LLP		269,506		10,253		279,759		182,377		7,714		190,091		182,377		7,714		190,091
FTI Consulting, Inc. (7)		416,461		35,427		451,888		801,221		77,668		878,890		801,221		77,668		878,890
Houlihan Lokey Howard & Zukin		—		—		—		—		—		—		—		—
Lazard Frères & Co. LLC (6) (7)		350,000		8,159		358,159		280,000		11,625		291,625		1,780,000		11,625		1,791,625
Pachulski Stang Ziehl & Jones LLP (7)		9,147		1,400		10,547		—		—		—		—		—
Sitrick and Company, Inc.		—		—		—		7,030		26		7,055		144,849		29,645		174,494
White & Case LLP (7)		915,961		37,686		953,647		2,970,274		141,136		3,111,410		4,922,723		187,470		5,110,193

Total	$	2,257,257	$	104,887	$	2,362,144	$	5,678,803	$	292,139	$	5,970,942	$	9,780,170	$	403,264	$	10,183,434


Professional		Role
Akin Gump Strauss Hauer & Feld LLP		UCC Counsel
Bayard, P.A.		Debtors’ Local Counsel
Epiq Bankruptcy Solutions LLC		Noticing / Claims Agent
Ernst & Young LLP		Debtors’ Auditor
FTI Consulting, Inc.		Debtors’ Restructuring Advisors
Houlihan Lokey Howard & Zukin		UCC Financial Advisor
Lazard Frères & Co. LLC		Debtors’ Financial Advisors
Pachulski Stang Ziehl & Jones LLP		UCC Local Counsel
Sitrick and Company, Inc.		Debtors’ Public Relations Agent
White & Case LLP		Debtors’ Counsel

Notes:

The schedule of professional fees includes fees for retained professionals paid directly by the Debtors and therefore does not include payments (i.e. payments made to the secured lenders’ advisors) made on behalf of the Debtors. In addition, this schedule does not include payments made to parties deemed to be ordinary course professionals.

The Debtor has included fees in this category based on the time period covered in the individuals professionals’ filed fee applications, not based on the filing date of the fee application unless expressly noted herein. The Debtor has made its best efforts to capture and include all professional fees incurred in the reporting period, however, due to the monthly fee application process, inadvertent omissions may occur.

3.	The fees listed in the “Amount Paid This Period” section relate to fees incurred from August 4, 2008 through October 31, 2008 and were not included in any previously filed Monthly Operating Reports.

4.	The fees listed in the “Amount Paid This Period” section relate to fees incurred from September 1, 2008 through October 31, 2008 and were not included in any previously filed Monthly Operating Reports.

5.	The fees listed in the “Amount Paid This Period” section relate to fees incurred from October 1, 2008 through December 15, 2008 and were not included in any previously filed Monthly Operating Reports.

6.	The Debtor made a payment of $1,500,000 reflective of the 1% DIP financing fee to Lazard Frères & Co. LLC on September 24, 2008 for services rendered pursuant to the agreement letter dated April 17, 2008.

7.	The fees listed in the “Amount Incurred This Period” section relate to fees incurred from November 1, 2008 through December 31, 2008 and were not included in any previously filed Monthly Operating Reports.


				Monthly Operating Report
		3 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Debtor Bank Account Book Balances by Legal Entity

As of December 31, 2008


Bank Account Number	Financial Institution	Debtor Entity	Account Type	Book Balance (2)
3299755829	Bank of America	WCI Communities, Inc.	Controlled Disbursement	$	(1,505,541	)
4426514794	Bank of America	WCI Communities, Inc.	Depository		(16,360	)
1014426363819	Bank of America	WCI Communities, Inc.	Operating (Club)		7,856
3756555592	Bank of America	WCI Communities, Inc.	Depository (Club)		158
3299048860	Bank of America	WCI Communities, Inc.	Manual Payroll		1,315,742
3756451340	Bank of America	WCI Communities, Inc.	Master Funding		34,176,857
22450150271638	Bank of America	WCI Communities, Inc.	Investment		40,000,000
1233164052	Bank of America	WCI Communities, Inc.	Cash Collateral		—
4426600381	Bank of America	WCI Communities, Inc.	Merchant		—
4426600378	Bank of America	WCI Communities, Inc.	Merchant		—
9417964332	Bank of America	WCI Communities, Inc.	Escrow		1,592,582
9417964332	Bank of America	WCI Communities, Inc.	Escrow		3,629,973
30584705	CitiGroup Global Markets, Inc.	WCI Communities, Inc.	Cash		20,000
3739240616514	CitiGroup Global Markets, Inc.	WCI Communities, Inc.	Investment		—
0012407	Commerce Bank	WCI Communities, Inc.	Escrow		65,703
7432025505	Fifth Third Bank	WCI Communities, Inc.	Escrow		(57,019	)
701-07C24	Merrill Lynch	WCI Communities, Inc.	Stock Option Account (1)		5,232
701-07C39	Merrill Lynch	WCI Communities, Inc.	Stock Option Accounts (1)		38,558
1000004168299	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		(29,665	)
1000025017749	SunTrust Bank	WCI Communities, Inc.	Lockbox (Club)		27,859
200290004489	SunTrust Bank	WCI Communities, Inc.	Disbursement (Club)		—
276160950883	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		—
200290002915	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		—
276160951881	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		—
1000052974861	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		538
200290005248	SunTrust Bank	WCI Communities, Inc.	Operating (Club)		18,263
1000025017632	SunTrust Bank	WCI Communities, Inc.	Disbursement		4,687
1000015009995	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		17,233
1000038892120	SunTrust Bank	WCI Communities, Inc.	Merchant (Club)		16,829
1000025017756	SunTrust Bank	WCI Communities, Inc.	Operating (Club)		127,255
1000004168307	SunTrust Bank	WCI Communities, Inc.	Lockbox (Club)		408,910
335004056140	SunTrust Bank	WCI Communities, Inc.	Concentration		803,336
200290002907	SunTrust Bank	WCI Communities, Inc.	Disbursement		—
333002108	SunTrust Bank	WCI Communities, Inc.	Investment		10,008,665
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		335,779
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		71,000
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		75,000
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		52,000
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		110,000
1000076705002	SunTrust Bank	WCI Communities, Inc.	Escrow		181,250
2000015600794	Wachovia Bank, N.A.	WCI Communities, Inc.	Checking (Club)		31,859
2000015609054	Wachovia Bank, N.A.	WCI Communities, Inc.	Merchant (Club)		75,147
2000013821232	Wachovia Bank, N.A.	WCI Communities, Inc.	Checking		—


				Monthly Operating Report
		4 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Debtor Bank Account Book Balances by Legal Entity

As of December 31, 2008


Bank Account Number	Financial Institution	Debtor Entity	Account Type	Book Balance (2)
2000015600587	Wachovia Bank, N.A.	WCI Communities, Inc.	Escrow		—
2000022050285	Wachovia Bank, N.A.	WCI Communities, Inc.	Checking (Club)		—
2000028197841	Wachovia Bank, N.A.	WCI Communities, Inc.	Merchant (Club)		27,296
2000014402498	Wachovia Bank, N.A.	WCI Communities, Inc.	Merchant (Club)		232,532
2000014402485	Wachovia Bank, N.A.	WCI Communities, Inc.	Operating (Club)		36,966
200007364963	Wachovia Bank, N.A.	WCI Communities, Inc.	Lockbox (Club)		6,158
2000035866291	Wachovia Bank, N.A.	WCI Communities, Inc.	Depository (Club)		26,493
2000028197838	Wachovia Bank, N.A.	WCI Communities, Inc.	Operating (Club)		2,116
2090002595628	Wachovia Bank, N.A.	WCI Communities, Inc.	Concentration		213,367
2000015609041	Wachovia Bank, N.A.	WCI Communities, Inc.	Lockbox (Club)		24,376
2000014402508	Wachovia Bank, N.A.	WCI Communities, Inc.	Operating (Club)		278
2000014402511	Wachovia Bank, N.A.	WCI Communities, Inc.	Merchant (Club)		889
2000027364963	Wachovia Bank, N.A.	WCI Communities, Inc.	Checking (Club)		6,158

	Total	WCI Communities, Inc.		$	92,186,318
3299755811	Bank of America	Bay Colony-Gateway, Inc.	Controlled Disbursement	$	(122,683	)
200290004128	SunTrust Bank	Bay Colony-Gateway, Inc.	Disbursement		—
1000004168182	SunTrust Bank	Bay Colony-Gateway, Inc.	Lockbox (Club)		8,193
200290005272	SunTrust Bank	Bay Colony-Gateway, Inc.	Merchant (Club)		346,127
200290005124	SunTrust Bank	Bay Colony-Gateway, Inc.	Operating (Club)		1,342
1000004168521	SunTrust Bank	Bay Colony-Gateway, Inc.	Merchant (Club)		123,357
200290003342	SunTrust Bank	Bay Colony-Gateway, Inc.	Operating		7,269,425

	Total	Bay Colony-Gateway, Inc.		$	7,625,760
2000022050913	Wachovia Bank, N.A.	Communities Finance Company, LLC	Escrow	$	—
1000034424902	SunTrust Bank	First Fidelity Title, Inc.	Escrow	$	20,685
1000038891502	SunTrust Bank	First Fidelity Title, Inc.	Escrow		165,775
2000025193673	Wachovia Bank, N.A.	First Fidelity Title, Inc.	Operating		—

	Total	First Fidelity Title, Inc.		$	186,460
2050000582550	Wachovia Bank, N.A.	Poplar Tree, LLC	Escrow	$	292,000
98395857	Provident Bank	Renaissance at Oak Creek Club, LLC	Escrow	$	79,149
2000022050272	Wachovia Bank, N.A.	Resort at Singer Island Properties, Inc.	Controlled Disbursement	$	205,295
3329040909	Bank of America	Reston Building Co., LLC	Manual Payroll	$	262,003
33500406147	SunTrust Bank	Sun City Center Golf Properties, Inc.	Operating	$	7,539
33500406147	SunTrust Bank	Sun City Center Golf Properties, Inc.	Checking (Club)		—
33500406147	SunTrust Bank	Sun City Center Golf Properties, Inc.	Operating		—

	Total	Sun City Center Golf Properties, Inc.		$	7,539


				Monthly Operating Report
		5 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Debtor Bank Account Book Balances by Legal Entity

As of December 31, 2008


Bank Account Number	Financial Institution	Debtor Entity	Account Type	Book Balance (2)
200290002664	SunTrust Bank	Watermark Realty Referral, Inc.	Disbursement	$	299,866
205000058255	Wachovia Bank, N.A.	WCI Towers Northeast USA, Inc.	Escrow	$	556,412
3299126666	Bank of America	WCI Homes Northeast Inc.	Controlled Disbursement	$	42,020
3756676015	Bank of America	WCI Homes Northeast Inc.	Depository		179,403
9514985944	Bank of America	WCI Homes Northeast Inc.	Manual Payroll		323,308

	Total	WCI Homes Northeast Inc.		$	544,731
4426363806	Bank of America	WCI Mid-Atlantic US Region, Inc.	Depository	$	—
3299040081	Bank of America	WCI Mid-Atlantic US Region, Inc.	Controlled Disbursement		(105,388	)

	Total	WCI Mid-Atlantic US Region, Inc.		$	(105,388	)
2000013048497	Wachovia Bank, N.A.	WCI Realty New Jersey, Inc.	Escrow	$	737
2000013048507	Wachovia Bank, N.A.	WCI Realty New Jersey, Inc.	Escrow		737

	Total	WCI Realty New Jersey, Inc.		$	1,474
8046165950	Colonial Bank	WCI Realty, Inc.	Escrow	$	—
8041492342	Colonial Bank	WCI Realty, Inc.	Escrow		193,965
8041492359	Colonial Bank	WCI Realty, Inc.	Escrow		386,299
7431758502	Fifth Third Bank	WCI Realty, Inc.	Escrow		—
7431758999	Fifth Third Bank	WCI Realty, Inc.	Escrow		—
7431759534	Fifth Third Bank	WCI Realty, Inc.	Escrow		—
7431598734	Fifth Third Bank	WCI Realty, Inc.	Escrow		33,617
7431759419	Fifth Third Bank	WCI Realty, Inc.	Escrow		77,423
7431759351	Fifth Third Bank	WCI Realty, Inc.	Escrow		196,315
200290004527	SunTrust Bank	WCI Realty, Inc.	Escrow		—
1000076704781	SunTrust Bank	WCI Realty, Inc.	Escrow		174,658
200290003520	SunTrust Bank	WCI Realty, Inc.	Escrow		211,382
1000000902741	SunTrust Bank	WCI Realty, Inc.	Escrow		378,000
200290005329	SunTrust Bank	WCI Realty, Inc.	Escrow		655,333
2000022050560	Wachovia Bank, N.A.	WCI Realty, Inc.	Escrow		—

	Total	WCI Realty, Inc.		$	2,306,992
	Grand Total			$	104,448,613

Notes:

1.	The Debtor maintains two stock option accounts with Merrill Lynch for certain corporate purposes. These accounts are not FDIC insured, and in late November, the Debtor transferred substantially all of these funds to FDIC insured accounts at Bank of America.

2.	Certain of the Debtors’ bank account balances reported herein are negative. These negative balances primarily relate to timing differences between the accounting for disbursements on a book basis and the funding of cash into the controlled disbursement accounts.


				Monthly Operating Report
		6 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Debtor’s Statements with respect to Bank Account Reconciliations, Copies of Bank Statements

and Cash Disbursements Journal

Bank Account Reconciliations

The reconciliations for all open and active bank accounts are prepared within either the Treasury Department or the Regional Corporate Accounting Departments and then subsequently sent to the Treasury Department. The Debtors affirm that all reconciliations are maintained in the Treasury Department and reviewed by the Cash Managers and/or Treasurer. Typically, all reconciliations are generally completed within 45 days after the prior month end. Bank account reconciliations are not attached to this Monthly Operating Report, but if the U.S. Trustee requests copies, the Debtors will provide all bank reconciliations as soon as practical.

Bank Statements

The Debtors affirm that bank statements for all open and active bank accounts are maintained in the Treasury Department. In addition, the Debtors affirm that the following bank accounts were closed during the current reporting period:


Entity	Account Type	Account Name	Bank	Closed Date
WCI Communities, Inc.	Checking	WCI Communities, Inc - OBH Shared Facilities	Bank of America	12/19/08

The Debtors affirm that no bank accounts were opened during the current reporting period.

Copies of bank statements are not attached to this Monthly Operating Report, but if the U.S. Trustee requests, the Debtor will provide copies of all bank statements as soon as practical.

Cash Disbursement Journals

The Debtors affirm that within its financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account. Cash disbursement journals are not attached to this Monthly Operating Report, but if the U.S. Trustee requests, the Debtors will provide copies of all disbursement journals as soon as practical.


				Monthly Operating Report
		7 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Consolidating Statement of Operations ⁽¹⁾ ⁽²⁾

For the Period December 1, 2008 through December 31, 2008

(Unaudited)


	Debtor Entities			Non-Debtor Entities			Eliminations			Consolidated WCI Communities, Inc.
Revenue	$	24,497,509		$	11,595,107		$	(108,840	)	$	35,983,776
Costs of sales		13,263,524			6,644,025			(68,533	)		19,839,016
Equity in earnings from joint ventures		(180,052	)		(97,377	)		—			(277,428	)
Other income & expenses		(814,588	)		95,704			1,297,867			578,983
Real estate taxes, net		2,528,840			120,977			—			2,649,817
Selling, general & administrative expenses		12,703,148			5,169,076			(43,128	)		17,829,096
Interest expense, net		7,511,105			155,312			(916,677	)		6,749,740
Depreciation & amortization		1,114,747			463,804			—			1,578,551
Expenses related to early repayment of debt		—			—			—			—
Restructuring costs		2,813,511			—			—			2,813,511
Minority interests		—			—			(239,870	)		(239,870	)
Income taxes		3,246,186			—			—			3,246,186

Net income (loss)	$	(17,688,913	)	$	(956,415	)	$	(138,500	)	$	(18,783,827	)

Notes:

1.	Refer to Exhibit A of this Monthly Operating Report for individual Debtor entity statements of operations.

2.	The consolidated statement of operations is not prepared on a year-to-date basis, and therefore will not reflect the asset impairment adjustments as of the month ended September 30, 2008.


				Monthly Operating Report
		8 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Consolidating Balance Sheet ⁽¹⁾ ⁽²⁾

As of December 31, 2008

(Unaudited)


	Debtor Entities			Non-Debtor Entities			Eliminations			Consolidated WCI Communities, Inc.
Assets
Cash & cash equivalents	$	97,331,210		$	15,879,215		$	—		$	113,210,425
Restricted cash		9,290,811			1,297,665			—			10,588,476
Contracts receivable		1			—			—			1
Mortgages & accounts receivable		10,416,993			3,573,381			(209,128	)		13,781,246
Real estate inventories		1,093,234,028			25,225,318			—			1,118,459,346
Plant & equipment		126,928,528			66,199,162			(4,720,509	)		188,407,182
Investments in joint ventures		270,100,508			(11,519,234	)		(240,382,836	)		18,198,438
Other assets		112,798,323			12,214,116			(1,380,234	)		123,632,205

Assets	$	1,720,100,402		$	112,869,622		$	(246,692,706	)	$	1,586,277,318

Liabilities
Liabilities subject to comprise (3)	$	978,281,863		$	—		$	—		$	978,281,863
Accounts payable & other liabilities		66,715,411			35,786,411			(1,504,813	)		100,997,009
Customer deposits		25,166,373			1,355,540			—			26,521,913
Intercompany due to/from		(107,078,904	)		107,078,905			(1	)		0
DIP term loan		77,081,032			—			—			77,081,032
Senior secured credit facility		498,923,875			—			—			498,923,875
Senior secured term loan		224,829,124			—			—			224,829,124
Mortgages & notes payable		1,775,000			—			—			1,775,000
CDD obligations		52,001,071			2,693,317			—			54,694,388

Liabilities	$	1,817,694,845		$	146,914,173		$	(1,504,814	)	$	1,963,104,204

Minority interests	$	16,842,737		$	—		$	9,729,363		$	26,572,100

Equity (Deficit)
Net Worth	$	422,583,884		$	(11,980,432	)	$	(218,475,872	)	$	192,127,580
Retained Earnings		231,687,903			34,893,285			(36,521,563	)		230,059,626
Current year earnings		(768,708,966	)		(56,957,404	)		80,179			(825,586,191	)

(Deficit)		(114,437,179	)		(34,044,550	)		(254,917,256	)		(403,398,985	)

Liabilities and equity (deficit)	$	1,720,100,403		$	112,869,622		$	(246,692,706	)	$	1,586,277,319

Notes:

1.	Refer to Exhibit B of this Monthly Operating Report for individual Debtor entity statements of assets and liabilities.

As required for the third quarter completion of its GAAP financial statements, the Debtors undertook an impairment analysis of its long lived real estate assets. The impairments recorded by the Debtors, effective September 30, 2008, are reflected in the Consolidating Balance Sheet and the individual Debtor Statements of Assets and Liabilities that are included in this monthly operating report. Refer to the third quarter Form 10-Q filed with the SEC on January 28, 2009 for specific explanations of the accounting for the impairments for the quarter ending September 30, 2008. Given the timing of the third quarter Form 10-Q filing (January 28, 2009), the impairments were not included in prior monthly operating reports. The Debtors are not planning to file amended and/or restated monthly operating reports for the periods ending September 30, 2008, October, 31 2008 or November 30, 2008.

Liabilities subject to compromise include unsecured debt facilities, pre-petition accounts payable, general reserves for other payables, warranty obligations, legal contingency reserves and other liabilities. The Debtors have made their best efforts to characterize liabilities subject to compromise. These estimates are preliminary only and are subject to material change and/or reclassification. Any liabilities listed as subject to compromise reflects the Debtors’ best current estimate of the amount of pre-petition claims that will be restructured in the Chapter 11 Cases. In that regard, liabilities subject to compromise will change based upon, among other things, revised estimates of the amount of pre-petition claims that will be restructured in the Chapter 11 Cases.


				Monthly Operating Report
		9 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Status of Post-petition U.S. Taxes

For the Period December 1, 2008 through December 31, 2008

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment to receipt to verify payment or deposit of federal payroll taxes (1). Attach photocopies of any tax returns filed during the reporting period.


	Beginning Tax Liability		Amount Withheld or Accrued		Amount Paid		Ending Tax Liability
Federal
FICA-Employee	$	—	$	239,887	$	239,887	$	—
FICA-Employer		76,428		289,893		240,504		125,817
Federal Unemployment Tax		780		9,189		1,270		8,699
Federal Income Tax Withholding		—		677,993		677,993		—
Other - Franchise		24,750		13,750		33,000		5,500

Total Federal Taxes	$	101,958	$	1,230,713	$	1,192,655	$	140,016

State and Local
Sales & Use (2)	$	550,348	$	210,084	$	550,348	$	210,084
State Unemployment Insurance		2,042		31,792		3,900		29,933
State/City Income Tax Withholding		—		23,776		23,776		—
Real Property Tax (3)		8,476,358		2,605,343		283,439		10,798,262
Personal Property Tax		330,509		79,917		14,335		396,091

Total State and Local	$	9,359,256	$	2,950,912	$	875,798	$	11,434,370

Total Taxes	$	9,461,215	$	4,181,625	$	2,068,453	$	11,574,386

Notes:

1.	The Debtor electronically files federal payroll tax returns with the assistance of its payroll processor, ADP. These returns are not attached hereto.

2.	Sales & use tax liability is shown net of prepayments, as required by the taxing authority.

3.	Amounts are accrued on a monthly basis but are generally not yet due.


				Monthly Operating Report
		10 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Summary of Unpaid Post-petition Debts ⁽¹⁾

As of December 31, 2008


				Days Past Due
	Current			1-30			31-60			61-90			90+			Total
Land Development	$	23,715		$	13,607		$	6,807		$	20,314		$	844		$	65,288
Contractor (non-land development)		747,033			(70,125	)		12,573			(34,006	)		63,788			719,262
Recurring Item (e.g. lease)		—			—			—			—			—			—
G&A Expense (2)		591,236			1,195,854			119,560			35,624			220,929			2,163,203

Total	$	1,361,985		$	1,139,336		$	138,940		$	21,932		$	285,561		$	2,947,753

Percentage		46.2	%		38.7	%		4.7	%		0.7	%		9.7	%		100.0	%

Notes:

1.	The post-petition debts reported only represent open and outstanding trade vendor invoices that have been entered into the Debtors’ accounts payable system. This summary does not include invoices not yet entered into the Debtors’ accounts payable system, any month-end accruals or estimations.

Past due G&A payables may be related to invoices under dispute, invoice submission issues, invoice “charge-back” situations in which the counterparty owes WCI a greater amount than WCI owes to them, or other invoices which the Debtor has put on hold (e.g. invoices related to property taxes, rejected leases, etc.)


				Monthly Operating Report
		11 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Accounts Receivable Reconciliation and Aging

As of December 31, 2008


				Days Past Due
	Current			1-30			31-60			61-90			90+			Total
Contracts Receivables	$	1		$	—		$	—		$	—		$	—		$	1
Amenity Receivables (1)		433,897			162,203			48,461			22,275			867,849			1,534,684
Property Management Receivables (2)		39,438			8,263			21,494			505			8,896			78,596
Hotel / Tower Receivables (3)		32,179			—			—			—			1,192,160			1,224,339
Other		11,699			—			—			3,368			474,563			489,630

Gross Receivables	$	517,214		$	170,466		$	69,955		$	26,148		$	2,543,468		$	3,327,250

Percentage		15.5	%		5.1	%		2.1	%		0.8	%		76.4	%		100.0	%
Less: Provision for Doubtful Accounts																$	(1,409,764	)

Net Accounts Receivable																$	1,917,486

Notes:

1.	Amenity receivable past-due amounts relate to unpaid membership obligations. Once an amenity receivable reaches 120 days past due, the Debtors fully reserve the past due amount, while continuing collection efforts.

2.	Property management receivables primarily relate to amounts owed to WCI Communities, Inc. from homeowner associations for services rendered by WCI on behalf of the homeowners association. The Debtor actively manages and pursues collections of past-due receivables.

3.	Past-due Tower receivables are primarily related to customer deposit litigation. Approximately $865,000 is currently held in escrow by Chicago Title Inc. until the litigation is settled.


				Monthly Operating Report
		12 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Debtor Questionnaire


		Yes	No

1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide explanation below.	X

	Explanation:

	• On December 10, 2008, the Debtor sold used telephone equipment to Insight Enterprises, Inc. The total sale amount was for $2,500.

	• On various dates throughout December 2008, the Debtor sold used computer equipment to several purchasers. The total sale amount was approximately $400.

2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X

	Explanation:

	The Debtors have not made disbursements from any account other than debtor in possession accounts during this reporting period. However, because certain subsidiaries of WCI Communities, Inc. did not file for bankruptcy protection, there are non-debtor legal entities that maintain their own bank account(s). WCI Communities, Inc. utilizes a central cash management system, and, as such, the same personnel oversee all treasury functions for debtor and non-debtor entities.

3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X

4.	Are workers compensation, general liability and other necessary insurance coverage’s in effect? If no, provide an explanation below.	X

5.	Have any bank accounts been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X

	Explanation:

	Refer to “The Debtors’ Statement with respect to Bank Account Reconciliations, Copies of Bank Statements, and Cash Disbursements Journals” located on page 7 of this Monthly Operating Report.


				Monthly Operating Report
		13 of 13		December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Exhibit A:

Debtor Entity Statements of Operations

For the Period December 1, 2008 through December 31, 2008

(Unaudited)


				Monthly Operating Report
				December 1, 2008 through December 31, 2008

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008

(unaudited)


Debtor Entity:			WCI Communities, Inc.			Bay Colony-Gateway, Inc. (5)			Hunting Ridge III, LLC			Community Specialized Services, Inc.			Renaissance at Beacon Hill II, LLC			First Fidelity Title, Inc.		JYC Holdings, Inc.			Renaissance Custom Communities, LLC			Renaissance at Hunting Hills, LLC
Case Number:			08-11643			08-11646			08-11648			08-11652			08-11654			08-11655		08-11659			08-11664			08-11674
Description	Notes
Revenue			$	19,075,816		$	1,498,319		$	—		$	—		$	—		$	240,990	$	—		$	—		$	—
Costs of sales				10,618,649			903,719			—			—			—			—		—			—			—
Equity in earnings from joint ventures				(319,242	)		139,190			—			—			—			—		—			—			—
Other income & expenses				(5,593	)		(910,081	)		—			—			—			—		—			—			—
Real estate taxes, net				3,182,753			(1,389,993	)		—			—			1,051			—		229,531			—			—
Selling, general & administrative	(3	)		4,622,029			5,465,514			—			5,068			639			220,295		—			(3,347	)		—
Interest expense, net				6,762,944			(567	)		—			—			—			—		—			—			—
Depreciation & amortization				764,039			220,714			—			794			—			4,020		—			—			—
Expenses related to early repayment of debt				—			—			—			—			—			—		—			—			—
Restructuring costs				2,813,511			—			—			—			—			—		—			—			—
Income taxes				—			3,246,186			—			—			—			—		—			—			—
Allocation of corporate general & administrative	(4	)		3,536,928			(4,693,899	)		17			93			1,809			5,995		18,446			(58	)		—

Net income (loss)			$	(12,900,201	)	$	(1,482,465	)	$	(17	)	$	(5,956	)	$	(3,499	)	$	10,680	$	(247,977	)	$	3,405		$	—


		1 of 6		Exhibit A

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008

(unaudited)


Debtor Entity:			Mansion Ridge Home & Land Co. LLC			Renaissance at Kings Crossing, LLC			Communities Finance Co. LLC			Renaissance at Foxhall, LLC			Sun City Center Golf Properties, Inc.			Renaissance at Lake Manassas, LLC			Poplar Tree, LLC			WCI Homes Northeast, Inc. (6)			Renaissance at Georgetown Pike, LLC
Case Number:			08-11684			08-11688			08-11691			08-11694			08-11696			08-11701			08-11702			08-11703			08-11705
Description	Notes
Revenue			$	—		$	—		$	—		$	—		$	411,598		$	—		$	—		$	—		$	—
Costs of sales				—			—			(1,306	)		—			114,707			—			7,961			13,110			2,593
Equity in earnings from joint ventures				—			—			—			—			—			—			—			—			—
Other income & expenses				—			—			—			—			—			—			—			4,926			—
Real estate taxes, net				—			—			(132,573	)		—			133,609			—			2,942			—			(8,815	)
Selling, general & administrative	(3	)		30,691			480			114,229			—			466,470			—			(2,447	)		(39,159	)		(1,089	)
Interest expense, net				—			—			—			—			—			—			(682	)		579,177			—
Depreciation & amortization				—			—			—			—			71,512			—			—			27,274			—
Expenses related to early repayment of debt				—			—			—			—			—			—			—			—			—
Restructuring costs				—			—			—			—			—			—			—			—			—
Income taxes				—			—			—			—			—			—			—			—			—
Allocation of corporate general & administrative	(4	)		—			43			490,426			74			75,933			14			26,011			32,559			(277	)

Net income (loss)			$	(30,691	)	$	(523	)	$	(470,777	)	$	(74	)	$	(450,632	)	$	(14	)	$	(33,786	)	$	(617,887	)	$	7,588


		2 of 6		Exhibit A

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008 (unaudited)


Debtor Entity:		Renaissance at Oak Creek Club, LLC			Resort at Singer Island Properties, Inc.			WCI Realty Inc.			Dix Hills Home & Land Co. LLC			Spectrum Kensington LLC		Renaissance at Beacon Hill, LLC			MHI-Rugby Road LLC			Renaissance at The Oaks, LLC			WCI Hunter Mill, LLC
Case Number:		08-11711			08-11712			08-11713			08-11715			08-11717		08-11719			08-11722			08-11728			08-11729
Description	Notes
Revenue		$	—		$	1,876,500		$	9,600		$	—		$	—	$	—		$	—		$	—		$	—
Costs of sales			(31,108	)		2,206,490			2,700			—			—		—			—			—			—
Equity in earnings from joint ventures			—			—			—			—			—		—			—			—			—
Other income & expenses			—			—			—			—			—		—			—			—			—
Real estate taxes, net			59,255			375,596			—			—			—		—			17,337			—			13,167
Selling, general & administrative	(3)		(778	)		195,044			1,020,878			—			—		—			1,214			(384	)		448
Interest expense, net			—			(2,179	)		—			—			—		—			—			—			(8,447	)
Depreciation & amortization			—			1,011			24,126			—			—		—			—			—			—
Expenses related to early repayment of debt			—			—			—			—			—		—			—			—			—
Restructuring costs			—			—			—			—			—		—			—			—			—
Income taxes			—			—			—			—			—		—			—			—			—
Allocation of corporate general & administrative	(4)		12,132			51,257			10,036			(31	)		—		112			65,557			(55	)		47,875

Net income (loss)		$	(39,501	)	$	(950,719	)	$	(1,048,139	)	$	31		$	—	$	(112	)	$	(84,108	)	$	439		$	(53,044	)


		3 of 6		Exhibit A

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008

(unaudited)


Debtor Entity:			Hopewell Crossing Home & Land Co. LLC			Renaissance at Oakton Glen, LLC			WCI Realty New Jersey, Inc			Renaissance at Occoquan Walk, LLC			Hunting Ridge II, LLC			WCI Mid- Atlantic U.S. Region, Inc.			Watermark Realty Referral, Inc			Southbury Home & Land Co. LLC			WCI Communities Property Management, Inc.
Case Number:			08-11731			08-11736			08-11737			08-11742			08-11746			08-11747			08-11748			08-11749			08-11753
Description	Notes
Revenue			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	14,467
Costs of sales				—			—			—			—			—			(114,637	)		324			—			—
Equity in earnings from joint ventures				—			—			—			—			—			—			—			—			—
Other income & expenses				—			—			—			—			—			96,160			—			—			—
Real estate taxes, net				8,526			—			—			9,480			—			20,935			—			—			—
Selling, general & administrative	(3	)		—			—			43,099			(3,123	)		—			114,690			—			525			37,424
Interest expense, net				2,960			—			—			—			—			177,900			—			—			—
Depreciation & amortization				—			—			—			—			—			1,041			—			—			215
Expenses related to early repayment of debt				—			—			—			—			—			—			—			—			—
Restructuring costs				—			—			—			—			—			—			—			—			—
Income taxes				—			—			—			—			—			—			—			—			—
Allocation of corporate general & administrative	(4	)		14,681			81			5			5,487			110			56,234			930			(17	)		268

Net income (loss)			$	(26,166	)	$	(81	)	$	(43,104	)	$	(11,844	)	$	(110	)	$	(352,324	)	$	(1,254	)	$	(508	)	$	(23,440	)


		4 of 6		Exhibit A

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008

(unaudited)


Debtor Entity:			Renaissance at River Creek II, LLC			Renaissance at Timberlake, LLC			WCI Custom Homes, LLC			Renaissance at River Creek Towns, LLC			WCI Towers Northeast USA, Inc.			Renaissance Centro Arlington, LLC			Renaissance Centro Columbia, LLC
Case Number:			08-11756			08-11759			08-11761			08-11763			08-11764			08-11766			08-11770
Description	Notes
Revenue			$	—		$	—		$	—		$	—		$	1,370,219		$	—		$	—
Costs of sales				—			—			(2,676	)		—			(457,002	)		—			—
Equity in earnings from joint ventures				—			—			—			—			—			—			—
Other income & expenses				—			—			—			—			—			—			—
Real estate taxes, net				—			—			—			—			6,040			—			—
Selling, general & administrative	(3	)		1,088			—			682			4,766			408,201			—			—
Interest expense, net				—			—			—			—			—			—			—
Depreciation & amortization				—			—			—			—			—			—			—
Expenses related to early repayment of debt				—			—			—			—			—			—			—
Restructuring costs				—			—			—			—			—			—			—
Income taxes				—			—			—			—			—			—			—
Allocation of corporate general & administrative	(4	)		—			438			1,299			—			185,961			31,353			22,173

Net income (loss)			$	(1,088	)	$	(438	)	$	695		$	(4,766	)	$	1,227,019		$	(31,353	)	$	(22,173	)


		5 of 6		Exhibit A

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit A: Statements of Operations for Debtor Entities (1) (2)

For the Period December 1, 2008 through December 31, 2008

(unaudited)

The following notes should be read in conjunction with Exhibit A for the Statements of Operations for Debtor Entities:

The statements of operations provided herein represent financial information included in the Company’s general ledger for “active” Debtor entities. The Company has defined a Debtor entity as being “active” if the entity 1) owns or holds title to assets, 2) conducts some type of operation with general ledger activity, or 3) has contingent liabilities (e.g. potential warranty obligations).

2.	The monthly statements of operations for Debtor entities are not prepared on a year-to-date basis, and therefore will not reflect the asset impairment adjustments as of the month ended September 30, 2008.

3.	The statements of operations for certain Debtor entities reflect negative SG&A. Negative SG&A expense is generally the result of the reversal of accruals, defaults and true-ups.

The Debtor records significant corporate overhead costs on the books and records of Bay Colony-Gateway, Inc. These corporate overhead costs have been allocated pro-rata to various active legal entities based on the net book value of total assets as a percentage of combined total assets as of 12/31/08 for each of the legal entities.

5.	The credit in Other income & expense for Bay-Colony Gateway, Inc. primarily relates to intercompany interest charged to the WCI Northeast and WCI Mid-Atlantic regions. An offsetting interest expense is recorded and eliminated in consolidation.

6.	WCI Homes Northeast, Inc. is the corporate entity for the Northeast Region and the income statement reflects corporate overhead expenses while the revenue amounts are allocated to appropriate legal entities within the region.

7.	Statements of operations are not provided for Debtor entities that are not “active”. A list of those entities is presented below.


Inactive Debtor Entity (7)		Case No.
Communities Home Builders, Inc.		08-11644
New Home & Land Company LLC		08-11645
East Fishkill Development LLC		08-11647
Bay Colony of Naples, Inc.		08-11649
Fair Oaks Parkway, LLC		08-11650
Spectrum PDC Corp.		08-11651
Gateway Communities, Inc.		08-11653
Pelican Bay Properties, Inc.		08-11656
Bay Colony Realty Associates, Inc.		08-11657
Florida Design Communities, Inc.		08-11658
Renaissance at Bellview Road, LLC		08-11660
Coral Ridge Communities, Inc.		08-11661
Spectrum Customer Care, Inc.		08-11662
Carpentry Management Associates, LLC		08-11663
Spectrum Valimar Corp.		08-11665
Florida Lifestyle Management Company		08-11666
Gateway Realty Sales, Inc.		08-11667
Pelican Landing Communities, Inc.		08-11668
Renaissance at Bridges of Oakton II, LLC		08-11669
Renaissance at Roseland, Inc.		08-11670
Florida National Properties, Inc.		08-11671
The Colony at Pelican Landing Golf Club, Inc.		08-11672
Lake Grove Home & Land Company LLC		08-11673
Coral Ridge Properties, Inc.		08-11675
Renaissance Holdings Corp.		08-11676
Spectrum-Irvington Corp.		08-11677
GC Assets of Nassau, Inc.		08-11678
Spectrum Design Studio, Inc.		08-11679
Renaissance at Cardinal Forest, LLC		08-11680
Gateway Communications Services, Inc.		08-11681
Communities Amenities, Inc.		08-11682
Pelican Landing Properties, Inc.		08-11683
Coral Ridge Realty, Inc.		08-11685
Spectrum-Riverwoods Corp.		08-11686
Renaissance at Evergreen Mills Road, LLC		08-11687
Renaissance at Rugby Road, LLC		08-11689
Spectrum FS Corp.		08-11690
Renaissance Housing Corp.		08-11692
Pelican Marsh Properties, Inc.		08-11693
Spectrum Glen Cove Corp.		08-11695
Renaissance at Rugby Road II, LLC		08-11697
(The) Mansion Ridge Sewer Co., Inc.		08-11698
Coral Ridge Realty Sales, Inc.		08-11699
WCI Amenities, Inc.		08-11700
Renaissance Land, LLC		08-11704
Sun City Center Realty, Inc.		08-11706
Spectrum Holmdel Corp.		08-11707
Renaissance at South River, Inc.		08-11708
Marbella at Pelican Bay, Inc.		08-11709
Heron Bay, Inc.		08-11710
WCI Architecture & Land Planning, Inc.		08-11714
Tarpon Cove Realty, Inc.		08-11716
Renaissance at the Bridges of Oakton, LLC		08-11718
WCI Northeast Real Estate Development, LLC		08-11720
Heron Bay Golf Course Properties, Inc.		08-11721
Reston Building Company, LLC		08-11723
WCI Realty Connecticut, Inc.		08-11724
WCI Business Development, Inc.		08-11725
Spectrum Lake Grove, LLC		08-11726
WCI Realty Maryland, Inc.		08-11727
Tarpon Cove Yacht & Racquet Club, Inc.		08-11730
RMH, LLC		08-11732
WCI Northeast U.S. Region, LLC		08-11733
WCI Marketing, Inc.		08-11734
Spectrum Landing Corp.		08-11735
(The) Valimar Home & Land Company, LLC		08-11738
WCI Pompano Beach, Inc.		08-11739
WCI Capital Corporation		08-11740
Sarasota Tower, Inc.		08-11741
WCI Realty New York, Inc.		08-11743
Spectrum Long Beach, LLC		08-11744
WCI Ireland Inn Corp.		08-11745
WCI Title, Inc.		08-11750
Renaissance at River Creek, Inc.		08-11751
Spectrum North Bergen LLC		08-11752
Spectrum Construction Corp.		08-11754
WCI Towers, Inc.		08-11755
WCI Towers Mid-Atlantic USA, Inc.		08-11758
Renaissance at Timberlake II, LLC		08-11760
WCI Homebuilding, Inc.		08-11762
WCI Homes, Inc.		08-11765
Renaissance at River Creek Villas, Inc.		08-11767
WCI Golf Group, Inc.		08-11768
WCI Homebuilding Northeast, U.S., Inc.		08-11769


		6 of 6		Exhibit A

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Exhibit B:

Debtor Entity Statements of Assets and Liabilities

As of December 31, 2008

(Unaudited)

Monthly Operating Report

December 1, 2008 through December 31, 2008

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)


Debtor Entity:	WCI Communities, Inc.		Bay Colony- Gateway, Inc.			Hunting Ridge III, LLC		Community Specialized Services, Inc.		Renaissance at Beacon Hill II, LLC		First Fidelity Title, Inc.			JYC Holdings, Inc.
Case Number:	08-11643		08-11646			08-11648		08-11652		08-11654		08-11655			08-11659
Assets
Cash & cash equivalents	$	87,410,647	$	7,753,616		$	—	$	—	$	—	$	120,752		$	—
Restricted cash		6,157,649		—			—		—		—		(9	)		—
Contracts receivable		1		—			—		—		—		—			—
Mortgages & accounts receivable		6,510,007		2,382,575			—		371		—		—			—
Real estate inventories (2)		705,800,106		69,262,651			—		—		543,403		—			2,300,000
Plant & equipment		63,862,113		34,008,993			—		12,151		—		205,375			3,483,173
Investments in subsidiaries and joint ventures		224,717,618		44,082,890			—		—		—		—			—
Other assets		46,068,788		48,998,817			5,600		17,452		40,000		1,606,892			165,085

Total assets	$	1,140,526,930	$	206,489,542		$	5,600	$	29,973	$	583,403	$	1,933,010		$	5,948,259

Liabilities
Accounts payable & other liabilities	$	137,348,603	$	15,266,176		$	—	$	—	$	—	$	74,850		$	565,946
Customer deposits		27,268,814		(523,958	) $		—		—		—		—			—
Swap breakage		10,574,574		10,574,574					10,574,574				10,574,574			10,574,574
Debtor-in-possession secured term loan		77,081,032		77,081,032			77,081,032		77,081,032		77,081,032		77,081,032			77,081,032
Senior secured credit facility		498,923,875		498,923,875			—		498,923,875		—		498,923,875			498,923,875
Senior secured term note		224,829,124		224,829,124			—		224,829,124		—		224,829,124			224,829,124
Mortgages & notes payable		—		—			—		—		—		—			—
CDD obligations		38,751,874		695,783			—		—		—		—			—
Senior subordinated notes		538,157,031		538,157,031			—		538,157,031		—		538,157,031			538,157,031
Junior subordinated notes		165,000,000		—			—		—		—		—			—
Convertible subordinated notes		127,486,111		127,486,111			—		127,486,111		—		127,486,111			127,486,111

Total liabilities	$	1,845,421,038	$	1,492,489,748		$	77,081,032	$	1,477,051,747	$	77,081,032	$	1,477,126,597		$	1,477,617,693

1 of 7

Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)


Debtor Entity:	Renaissance Custom Communities, LLC			Renaissance at Hunting Hills, LLC		Mansion Ridge Home & Land Co. LLC		Renaissance at Kings Crossing, LLC			Communities Finance Co. LLC		Renaissance at Foxhall, LLC		Sun City Center Golf Properties, Inc.		Renaissance at Lake Manassas, LLC
Case Number:	08-11664			08-11674		08-11684		08-11688			08-11691		08-11694		08-11696		08-11701
Assets
Cash & cash equivalents	$	—		$	—	$	—	$	—		$	—	$	—	$	31,068	$	—
Restricted cash		—			—		—		—			—		—		—		—
Contracts receivable		—			—		—		—			—		—		—		—
Mortgages & accounts receivable		—			—		—		—			1,577,500		—		109,541		—
Real estate inventories (2)		(18,571	)		—		—		(10,055	)		155,163,294		—		—		—
Plant & equipment		—			—		—		—			—		—		23,649,440		—
Investments in subsidiaries and joint ventures		—			—		—		—			—		—		—		—
Other assets		—			—		—		24,000			1,402,721		24,000		695,318		4,377

Total assets	$	(18,571	)	$	—	$	—	$	13,945		$	158,143,515	$	24,000	$	24,485,366	$	4,377

Liabilities
Accounts payable & other liabilities	$	—		$	—	$	—	$	—		$	7,339,790	$	—	$	3,175,718	$	—
Customer deposits		—			—		—		—			24,799,784		—		2,140		—
Swap breakage												10,574,574				10,574,574
Debtor-in-possession secured term loan		77,081,032			77,081,032		77,081,032		77,081,032			77,081,032		77,081,032		77,081,032		77,081,032
Senior secured credit facility		—			—		—		—			498,923,875		—		498,923,875		—
Senior secured term note		—			—		—		—			224,829,124		—		224,829,124		—
Mortgages & notes payable		—			—		—		—			—		—		—		—
CDD obligations		—			—		—		—			12,553,414		—		—		—
Senior subordinated notes		—			—		—		—			538,157,031		—		538,157,031		—
Junior subordinated notes		—			—		—		—			—		—		—		—
Convertible subordinated notes		—			—		—		—			127,486,111		—		127,486,111		—

Total liabilities	$	77,081,032		$	77,081,032	$	77,081,032	$	77,081,032		$	1,521,744,734	$	77,081,032	$	1,480,229,605	$	77,081,032


		2 of 7		Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)


Debtor Entity:	Poplar Tree, LLC		WCI Homes Northeast, Inc.			Renaissance at Georgetown Pike, LLC			Renaissance at Oak Creek Club, LLC		Resort at Singer Island Properties, Inc.		WCI Realty Inc.		Dix Hills Home & Land Co. LLC			Spectrum Kensington LLC
Case Number:	08-11702		08-11703			08-11705			08-11711		08-11712		08-11713		08-11715			08-11717
Assets
Cash & cash equivalents	$	—	$	502,711		$	—		$	—	$	1,209,545	$	1,500	$	—		$	—
Restricted cash		79,149		—			—			292,000		110,000		2,095,610		—			—
Contracts receivable		—		—			—			—		—		—		—			—
Mortgages & accounts receivable		—		(457,965	)		—			—		201,739		—		—			—
Real estate inventories (2)		8,204,149		461,509			(114,253	)		3,568,832		14,398,527		—		(10,147	)		—
Plant & equipment		—		582,381			—			—		29,295		1,089,169		—			—
Investments in subsidiaries and joint ventures		—		1,300,000			—			—		—		—		—			—
Other assets		104,379		8,110,438			25,000			51,207		579,223		54,885		—			—

Total assets	$	8,387,677	$	10,499,074		$	(89,253	)	$	3,912,039	$	16,528,328	$	3,241,164	$	(10,147	)	$	—

Liabilities
Accounts payable & other liabilities	$	15,347	$	3,742,766		$	—		$	3,000	$	952,407	$	248,049	$	177		$	—
Customer deposits		671,813		—			193,000			33,755		1,634,500		—		—			—
Swap breakage		10,574,574		10,574,574			10,574,574			10,574,574		10,574,574		10,574,574
Debtor-in-possession secured term loan		77,081,032		77,081,032			77,081,032			77,081,032		77,081,032		77,081,032		77,081,032			77,081,032
Senior secured credit facility		498,923,875		498,923,875			498,923,875			498,923,875		498,923,875		498,923,875		—			—
Senior secured term note		224,829,124		224,829,124			224,829,124			224,829,124		224,829,124		224,829,124		—			—
Mortgages & notes payable		—		—			—			—		—		—		—			—
CDD obligations		—		—			—			—		—		—		—			—
Senior subordinated notes		—		—			—			—		538,157,031		538,157,031		—			—
Junior subordinated notes		—		—			—			—		—		—		—			—
Convertible subordinated notes		—		—			—			—		127,486,111		127,486,111		—			—

Total liabilities	$	812,095,764	$	815,151,371		$	811,601,605		$	811,445,360	$	1,479,638,653	$	1,477,299,796	$	77,081,209		$	77,081,032


		3 of 7		Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)


Debtor Entity:	Renaissance at Beacon Hill, LLC		MHI-Rugby Road LLC		Renaissance at The Oaks, LLC			WCI Hunter Mill, LLC		Hopewell Crossing Home & Land Co. LLC		Renaissance at Oakton Glen, LLC		WCI Realty New Jersey, Inc		Renaissance at Occoquan Walk, LLC		Hunting Ridge II, LLC
Case Number:	08-11719		08-11722		08-11728			08-11729		08-11731		08-11736		08-11737		08-11742		08-11746
Assets
Cash & cash equivalents	$	—	$	—	$	—		$	—	$	—	$	—	$	1,474	$	—	$	—
Restricted cash		—		—		—			—		—		—		—		—		—
Contracts receivable		—		—		—			—		—		—		—		—		—
Mortgages & accounts receivable		—		—		—			11,699		—		—		—		—		—
Real estate inventories (2)		—		20,663,553		(40,489	)		15,262,953		4,733,946		—		—		1,768,818		—
Plant & equipment		—		—		—			—		—		—		—		—		—
Investments in subsidiaries and joint ventures		—		—		—			—		—		—		—		—		—
Other assets		36,000		476,134		22,630			163,300		—		26,000		—		551		35,600

Total assets	$	36,000	$	21,139,687	$	(17,859	)	$	15,437,952	$	4,733,946	$	26,000	$	1,474	$	1,769,369	$	35,600

Liabilities
Accounts payable & other liabilities	$	—	$	1,621	$	—		$	12,612	$	85,316	$	—	$	35,671	$	28,448	$	—
Customer deposits		—		—		—			—		—		—		—		—		—
Swap breakage		10,574,574		10,574,574					10,574,574		10,574,574				10,574,574		10,574,574
Debtor-in-possession secured term loan		77,081,032		77,081,032		77,081,032			77,081,032		77,081,032		77,081,032		77,081,032		77,081,032		77,081,032
Senior secured credit facility		498,923,875		498,923,875		—			498,923,875		498,923,875		—		498,923,875		498,923,875		—
Senior secured term note		224,829,124		224,829,124		—			224,829,124		224,829,124		—		224,829,124		224,829,124		—
Mortgages & notes payable		—		—		—			—		1,775,000		—		—		—		—
CDD obligations		—		—		—			—		—		—		—		—		—
Senior subordinated notes		—		—		—			—		—		—		—		—		—
Junior subordinated notes		—		—		—			—		—		—		—		—		—
Convertible subordinated notes		—		—		—			—		—		—		—		—		—

Total liabilities	$	811,408,605	$	811,410,226	$	77,081,032		$	811,421,217	$	813,268,921	$	77,081,032	$	811,444,276	$	811,437,052	$	77,081,032


		4 of 7		Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008 (unaudited)


Debtor Entity:	WCI Mid- Atlantic U.S. Region, Inc.		Watermark Realty Referral, Inc		Southbury Home & Land Co. LLC			WCI Communities Property Management, Inc.		Renaissance at River Creek II, LLC		Renaissance at Timberlake, LLC		WCI Custom Homes, LLC			Renaissance at River Creek Towns, LLC
Case Number:	08-11747		08-11748		08-11749			08-11753		08-11756		08-11759		08-11761			08-11763
Assets
Cash & cash equivalents	$	31	$	299,866	$	—		$	—	$	—	$	—	$	—		$	—
Restricted cash		—		—		—			—		—		—		—			—
Contracts receivable		—		—		—			—		—		—		—			—
Mortgages & accounts receivable		3,368		—		—			78,596		—		—		(438	)		—
Real estate inventories (2)		14,246,684		—		(5,323	)		—		—		—		392,039			—
Plant & equipment		4,138		—		—			2,301		—		—		—			—
Investments in subsidiaries and joint ventures		—		—		—			—		—		—		—			—
Other assets		3,879,180		—		—			5,463		—		141,357		27,251			—

Total assets	$	18,133,402	$	299,866	$	(5,323	)	$	86,360	$	—	$	141,357	$	418,853		$	—

Liabilities
Accounts payable & other liabilities	$	2,778,624	$	—	$	—		$	285,848	$	—	$	—	$	13,024		$	—
Customer deposits		140,000		—		—			—		—		—		800,674			—
Swap breakage		10,574,574		10,574,574					10,574,574									10,574,574
Debtor-in-possession secured term loan		77,081,032		77,081,032		77,081,032			77,081,032		77,081,032		77,081,032		77,081,032			77,081,032
Senior secured credit facility		498,923,875		498,923,875		—			498,923,875		—		—		—			498,923,875
Senior secured term note		224,829,124		224,829,124		—			224,829,124		—		—		—			224,829,124
Mortgages & notes payable		—		—		—			—		—		—		—			—
CDD obligations		—		—		—			—		—		—		—			—
Senior subordinated notes		—		538,157,031		—			538,157,031		—		—		—			—
Junior subordinated notes		—		—		—			—		—		—		—			—
Convertible subordinated notes		—		127,486,111		—			127,486,111		—		—		—			—

Total liabilities	$	814,327,229	$	1,477,051,747	$	77,081,032		$	1,477,337,595	$	77,081,032	$	77,081,032	$	77,894,730		$	811,408,605


		5 of 7		Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)


Debtor Entity:	WCI Towers Northeast USA, Inc.		Renaissance Centro Arlington, LLC		Renaissance Centro Columbia, LLC
Case Number:	08-11764		08-11766		08-11770
Assets
Cash & cash equivalents	$	—	$	—	$	—
Restricted cash		556,412		—		—
Contracts receivable		—		—		—
Mortgages & accounts receivable		—		—		—
Real estate inventories (2)		59,402,310		10,110,086		7,150,005
Plant & equipment		—		—		—
Investments in subsidiaries and joint ventures		—		—		—
Other assets		6,676		—		—

Total assets	$	59,965,398	$	10,110,086	$	7,150,005

Liabilities
Accounts payable & other liabilities	$	1,220,083	$	48,105	$	56,855
Customer deposits		626,373		—		—
Swap breakage		10,574,574		10,574,574		10,574,574
Debtor-in-possession secured term loan		77,081,032		77,081,032		77,081,032
Senior secured credit facility		498,923,875		498,923,875		498,923,875
Senior secured term note		224,829,124		224,829,124		224,829,124
Mortgages & notes payable		—		—		—
CDD obligations		—		—		—
Senior subordinated notes		—		—		—
Junior subordinated notes		—		—		—
Convertible subordinated notes		—		—		—

Total liabilities	$	813,255,061	$	811,456,710	$	811,465,460


		6 of 7		Exhibit B

In Re: WCI Communities, Inc., et al.

Case Number: 08-11643 (KJC)

Exhibit B: Debtor Entity Statements of Assets & Liabilities (1)

As of December 31, 2008

(unaudited)

The following notes should be read in conjunction with Exhibit B for the Statements of Assets and Liabilities for Debtor Entities:

The statements of assets and liabilities provided herein represent financial information for the Company’s “active” entities. Entities that are considered inactive but are guarantors of bank- or bond-debt are not listed herein. The Company has defined a Debtor entity as being “active” if the entity 1) owns or holds title to assets, 2) conducts some type of operation with general ledger activity, or 3) has contingent liabilities (e.g. potential warranty obligations).

The statements of assets and liabilities include the asset impairment adjustment amounts prepared by the Debtor for the Form 10-Q filing for the period ended September 30, 2008. Refer to the Form 10-Q filed by the Debtor with the SEC on January 28, 2009 for further explanation of the asset impairments.

3.	Statements of assets and liabilities are not provided for Debtor entities that are not “active” . A list of those entities is presented below.


Inactive Debtor Entity (3)		Case No.
Communities Home Builders, Inc.		08-11644
New Home & Land Company LLC		08-11645
East Fishkill Development LLC		08-11647
Bay Colony of Naples, Inc.		08-11649
Fair Oaks Parkway, LLC		08-11650
Spectrum PDC Corp.		08-11651
Gateway Communities, Inc.		08-11653
Pelican Bay Properties, Inc.		08-11656
Bay Colony Realty Associates, Inc.		08-11657
Florida Design Communities, Inc.		08-11658
Renaissance at Bellview Road, LLC		08-11660
Coral Ridge Communities, Inc.		08-11661
Spectrum Customer Care, Inc.		08-11662
Carpentry Management Associates, LLC		08-11663
Spectrum Valimar Corp.		08-11665
Florida Lifestyle Management Company		08-11666
Gateway Realty Sales, Inc.		08-11667
Pelican Landing Communities, Inc.		08-11668
Renaissance at Bridges of Oakton II, LLC		08-11669
Renaissance at Roseland, Inc.		08-11670
Florida National Properties, Inc.		08-11671
The Colony at Pelican Landing Golf Club, Inc.		08-11672
Lake Grove Home & Land Company LLC		08-11673
Coral Ridge Properties, Inc.		08-11675
Renaissance Holdings Corp.		08-11676
Spectrum-Irvington Corp.		08-11677
GC Assets of Nassau, Inc.		08-11678
Spectrum Design Studio, Inc.		08-11679
Renaissance at Cardinal Forest, LLC		08-11680
Gateway Communications Services, Inc.		08-11681
Communities Amenities, Inc.		08-11682
Pelican Landing Properties, Inc.		08-11683
Coral Ridge Realty, Inc.		08-11685
Spectrum-Riverwoods Corp.		08-11686
Renaissance at Evergreen Mills Road, LLC		08-11687
Renaissance at Rugby Road, LLC		08-11689
Spectrum FS Corp.		08-11690
Renaissance Housing Corp.		08-11692
Pelican Marsh Properties, Inc.		08-11693
Spectrum Glen Cove Corp.		08-11695
Renaissance at Rugby Road II, LLC		08-11697
(The) Mansion Ridge Sewer Co., Inc.		08-11698
Coral Ridge Realty Sales, Inc.		08-11699
WCI Amenities, Inc.		08-11700
Renaissance Land, LLC		08-11704
Sun City Center Realty, Inc.		08-11706
Spectrum Holmdel Corp.		08-11707
Renaissance at South River, Inc.		08-11708
Marbella at Pelican Bay, Inc.		08-11709
Heron Bay, Inc.		08-11710
WCI Architecture & Land Planning, Inc.		08-11714
Tarpon Cove Realty, Inc.		08-11716
Renaissance at the Bridges of Oakton, LLC		08-11718
WCI Northeast Real Estate Development, LLC		08-11720
Heron Bay Golf Course Properties, Inc.		08-11721
Reston Building Company, LLC		08-11723
WCI Realty Connecticut, Inc.		08-11724
WCI Business Development, Inc.		08-11725
Spectrum Lake Grove, LLC		08-11726
WCI Realty Maryland, Inc.		08-11727
Tarpon Cove Yacht & Racquet Club, Inc.		08-11730
RMH, LLC		08-11732
WCI Northeast U.S. Region, LLC		08-11733
WCI Marketing, Inc.		08-11734
Spectrum Landing Corp.		08-11735
(The) Valimar Home & Land Company, LLC		08-11738
WCI Pompano Beach, Inc.		08-11739
WCI Capital Corporation		08-11740
Sarasota Tower, Inc.		08-11741
WCI Realty New York, Inc.		08-11743
Spectrum Long Beach, LLC		08-11744
WCI Ireland Inn Corp.		08-11745
WCI Title, Inc.		08-11750
Renaissance at River Creek, Inc.		08-11751
Spectrum North Bergen LLC		08-11752
Spectrum Construction Corp.		08-11754
WCI Towers, Inc.		08-11755
WCI Towers Mid-Atlantic USA, Inc.		08-11758
Renaissance at Timberlake II, LLC		08-11760
WCI Homebuilding, Inc.		08-11762
WCI Homes, Inc.		08-11765
Renaissance at River Creek Villas, Inc.		08-11767
WCI Golf Group, Inc.		08-11768
WCI Homebuilding Northeast, U.S., Inc.		08-11769


		7 of 7		Exhibit B

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

Exhibit C:

Disclosures and Disclaimers Regarding the Monthly Operating Report

WCI Communities, Inc. and Its Affiliated Debtors


				Monthly Operating Report
				December 1, 2008 through December 31, 2008

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

DISCLOSURES AND DISCLAIMERS REGARDING THE MONTHLY OPERATING REPORT

WCI COMMUNITIES, INC. AND ITS AFFILIATED DEBTORS

The Monthly Operating Report filed by WCI Communities, Inc. (“WCI”) and its affiliated debtors in these jointly administered chapter 11 cases (collectively, the “Debtors”) is limited in scope, covers a limited time period and has been prepared by management of the Debtors with the assistance of their court-appointed advisors solely for the purpose of complying with reporting requirements of the Office of the United States Trustee in the District of Delaware and the Bankruptcy Code. The financial information contained in the Monthly Operating Report is unaudited and does not purport to show the financial statements of any of the Debtors in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and, therefore, may exclude items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. The Company cautions readers not to place undue reliance on the Monthly Operating Report. The Monthly Operating Report may be subject to revision. The Monthly Operating Report is in a format required by the Office of the United States Trustee in the District of Delaware and the Bankruptcy Code and should not be used for investment purposes. The information in the Monthly Operating Report should not be viewed as indicative of future results.

While the Debtors’ management has exercised its best efforts to ensure that the Monthly Operating Report is accurate and complete by legal entity based on information that was available at the time of preparation, inadvertent errors or omissions may exist. The Debtors reserve the right to amend the Monthly Operating Report from time to time as may be necessary or appropriate.

I.	Schedule of Receipts and Disbursements

(1) The schedule reflects actual cash receipts and disbursements for the period 12/1/08 through 12/31/08 and does not reflect transfers of funds between accounts. Cash receipts are reported as net proceeds at closing.

II.	Statement of Operations

(1) Reporting Date. All statements of operations information cover the period 12/1/2008 to 12/31/2008 and are clearly identified.

(2) Allocation of Corporate Overhead. The Debtor records significant corporate overhead costs on the books and records of Bay Colony-Gateway, Inc. For purposes of the individual legal debtor entity P&L statements attached hereto as Exhibit A, these corporate overhead costs have been allocated pro-rata to various active legal entities based on the net book value of total assets as of 12/31/08 of each of the legal entities. It is assumed that active legal Debtor entities with assets require some level of corporate support, and therefore those Debtors with larger asset bases should absorb a larger proportion of the corporate overhead expenses. The allocation of corporate overhead using the methodology described is not necessary for consolidated SEC reporting, but has been included in the statements of operations for individual Debtor entities.

III.	Statement of Assets and Liabilities

(1) Reporting Date. All asset and liability information is reported as of December 31, 2008.

(2) Basis of Presentation. For financial reporting purposes, the Debtors, along with certain of their subsidiaries that have not filed chapter 11 petitions under the Bankruptcy Code, prepare consolidated financial statements that are filed with the SEC and audited on an annual basis. Unlike the audited consolidated financial statements, the Statement of Assets and Liabilities attached herein reflect only the assets and liabilities of each Debtor and do not include eliminations or


		1 of 2		Exhibit C

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In Re:				Chapter 11
WCI Communities, Inc., et al.				Case Number: 08-11643 (KJC)
Debtors				Jointly Administered
				Hon. Kevin J. Carey

intercompany balances for consolidating purposes. Accordingly, combining the assets and liabilities set forth in the Statement of Assets and Liabilities would result in amounts that would be substantially different from financial information presented on a consolidated basis in accordance with GAAP. Therefore, the Statement of Assets and Liabilities does not purport to represent financial statements prepared in accordance with GAAP nor is it intended to fully reconcile with the financial statements filed by the Debtors with the SEC. Inconsistencies should be interpreted and resolved in favor of financial statements filed by the Debtors with the SEC and not the Monthly Operating Report.

(3) Active/Inactive Debtor Entities. The Company has defined a Debtor entity as being active if the entity 1) owns or holds title to assets, 2) conducts some type of operation with general ledger activity, or 3) has contingent liabilities (e.g. potential warranty obligations). Exhibits A and B are included herein and provide further details regarding active and inactive Debtor entities and their inclusion in such exhibits.

IV.	Impairment Analysis

(1) As required for the third quarter completion of its GAAP financial statements, the Debtors undertook an impairment analysis of its long lived real estate assets. The impairments recorded by the Debtors, effective September 30, 2008, are reflected in the Consolidating Balance Sheet and the individual Debtor Statements of Assets and Liabilities that are included in this monthly operating report. However, the impact of the impairments taken is not included in the Consolidating Statement of Operations or the individual Debtor Statements of Operations included herein because these statements are monthly (not cumulative or year to date statements). Refer to the third quarter Form 10-Q filed with the SEC on January 28, 2009 for specific explanations of the accounting for the impairments for the quarter ending September 30, 2008.

(2) As required for its December 31, 2008 completion of its GAAP financial statements, the Debtors are in the process of evaluating impairment analyses of its real estate assets and other potential adjustments to the financial statements. The impact of these potential adjustments has not been included in this monthly operating report.


		2 of 2		Exhibit 2