Related Party Transactions and Outside Related Director Information

Affordable Residential Communities Inc. (ARC)

5/1/2006 Proxy Information

Global E Portfolio.

Our former Chief Executive Officer, Scott D. Jackson, is the sole stockholder of JJ&T, and together with JJ&T is the 99% owner of Global Mobile. Global Mobile and JJ&T own 100% of the membership interests of Global E, which owns six manufactured home communities with 554 total homesites located in Wyoming. One of our subsidiaries is a party to a property management agreement with Global E pursuant to which the subsidiary manages all of the communities owned by Global E in consideration for a management fee equal to 3% of gross revenues. This subsidiary also is a party to an accounting services agreement with Global E whereby it provides accounting services for Global Mobile in exchange for a fee of $800 per month. For the years ended December 31, 2005, 2004 and 2003, our management services subsidiary received $266,000, $132,000 and $96,000, respectively, pursuant to these agreements. We terminated our ongoing obligations to Mr. Jackson with respect to these arrangements effective February 28, 2006.

One of our subsidiaries provides accounting services to six communities that are controlled by our former Chief Executive Officer under two separate year-to-year asset management agreements for which we received $28,000, $27,000 and $29,000 in compensation in 2005, 2004 and 2003, respectively. Also, during 2005, 2004 and 2003 we billed these same companies controlled by our former Chief Executive Officer $238,000, $105,000 and $67,000 for property management expenses in accordance with those agreements. In addition, we lease an airplane hangar from a company controlled by our former Chief Executive Officer for which we paid $54,000, $53,000 and $53,000 in 2005, 2004 and 2003, respectively. At December 31, 2005 and 2004, companies owned by our former Chief Executive Officer had insignificant balances due to or from the Company.

In addition, beginning April 1, 2005, we entered into a written lease agreement with JJ&T for a homesite for our Cheyenne, Wyoming city managerÕs office for a monthly rental fee of $230. We placed a manufactured home we owned on the homesite. In the event that the lease is terminated or the property management agreement discussed above is terminated, then JJ&T is obligated to buy the home from us at our cost for the purchase and set up of the home, which aggregates to approximately $75,000. We terminated this arrangement effective as of December 13, 2005 and Mr. Jackson purchased the home from ARC in accordance with the terms of the agreement.

Lease by Windstar Aviation Corp.

Global Mobile also has an airplane hangar located at Centennial Airport, Englewood, Colorado. Windstar Aviation Corp., a wholly owned subsidiary of our operating partnership, owns an airplane that we use in connection with our operations and leased office and airplane hangar space from Global Mobile at Centennial Airport. The leases were entered into in June 1999. Lease payments total $4,400 per month during the initial term, and an adjustment tied to the consumer price index is provided for the renewal term. We have terminated these arrangements effective as of March 31, 2006, and have no further obligations with respect to Mr. Jackson or his affiliates in this regard.

Directors Holding OP Units.

One of our directors, J. Markham Green, and one of our former directors, Eugene Mercy, Jr., hold OP units through which each of Messrs. Green and Mercy has deferred gains associated with certain properties we own. Any decision by our board of directors to dispose of one or more of these properties in which Mr. Green or Mr. Mercy has an interest could have tax consequences for Mr. Green or Mr. Mercy, as the case may be.

In connection with any such decision, our board of directors will determine whether Mr. Green has a material financial interest in the transaction that is different from the interests of stockholders generally, and if Mr. Green has such an interest, then he will abstain from the vote of our board with respect to such proposed transaction.

Clayton Homes and Vanderbilt Mortgage and Finance, Inc.

During 2005, we paid servicing fees to Vanderbilt Mortgage and Finance, Inc. (ÒVMFÓ), a wholly-owned subsidiary of Clayton Homes, in the aggregate amount of approximately $31,000, and purchased repossessed manufactured homes from VMF in an amount of approximately $ 2.3 million. We expect to continue to pay loan-servicing fees to and purchase repossessed manufactured homes from VMF. Prior to August 2003 and before joining our board, former director James L. Clayton and members of his immediate family held a greater than 10% equity interest in Clayton Homes and Mr. Clayton served as its Chairman. In August 2003, Berkshire Hathaway Inc. acquired all of the outstanding common stock of Clayton Homes. Immediately following that transaction, Mr. ClaytonÕs ownership interest in, and role as a director of, Clayton Homes terminated. Mr. Clayton joined our board of directors in February 2004 immediately following the completion of our initial public offering and did not seek re-election to the board in June 2005. Mr. ClaytonÕs son currently acts as the chief executive officer of Clayton Homes.