MILL CREEK HOMEOWNERS ASSOCIATION, INC

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1 MILL CREEK HOMEOWNERS ASSOCIATION, INC HANDBOOK Association Managed By: GPM Group PO Box 1685 Davidson, NC or

2 TABLE OF CONTENTS INTRODUCTION... 2 YOUR ASSOCIATION... 2 BOARD OF DIRECTORS... 3 YOUR RIGHTS AS A HOMEOWNER... 4 RESPONSIBILITIES AND OBLIGATIONS OF HOMEOWNERS... 4 DUES AND ASSESSMENTS... 4 PAYMENT SCHEDULE FOR DUES AND ASSESSMENTS... 4 PENALTIES... 5 RULES AND REGULATIONS: USE OF LOTS... 6 RULES AND REGULATIONS: ARCHITECTURAL CONTROL... 7 RULES AND REGULATIONS: GENERAL... 7 RULES AND REGULATIONS: POOL... 8 CONCLUSION

3 INTRODUCTION Welcome to Mill Creek Cornelius! Our community is ideally situated to offer convenience to a wide variety of shopping, civic, county and local activities. Our area has become one of the premier recreational spots with fabulous facilities in the Piedmont region! In addition, you are only twenty minutes away from the center of Charlotte, the largest city in the Carolinas. Here you will find a great variety of artistic, cultural and educational venues, along with world class restaurants and professional sporting events. Ownership of property in Mill Creek is governed and controlled by covenants and restrictions, which were promulgated, established and assigned to the Mill Creek Homeowners Association for the purpose of administration and enforcement. Included in these covenants and restrictions are your rights as a homeowner in this community. Since the preservation of home values is dependent upon the attractiveness of each home, as well as the maintenance and operation of common areas, it is the responsibility of the Homeowners Association to enforce the covenants and restrictions, as well as administer such assessments and liens as circumstances dictate. A Board of Directors has accepted the responsibility of fulfilling the Homeowners Association s covenants and restrictions. We are pleased that you are a member of our neighborhood! We want you to be assured of our commitment to provide and maintain an environment that will positively contribute to your lifestyle while protecting and enhancing your investment. YOUR ASSOCIATION Mill Creek Cornelius Homeowners Association, Inc. is a nonprofit corporation, which is registered and incorporated under North Carolina law. Your homeowners association has been delegated and assigned the powers of owning, maintaining, and administering to the Common Area, as well as enforcing the covenants and restrictions which govern and regulate use and occupancy of property in the Mill Creek development. The Association is also responsible for collecting and disbursing assets and charges related to the delegated and assigned powers. 2

4 BOARD OF DIRECTORS The business and affairs of the Association are managed by a Board of Directors. Members of this Board of Directors will include, at a minimum, a President, Vice President, Secretary and Treasurer. The size of the Board of Directors may be changed by the affirmative vote of three-fourths (3/4) of all lot owners. Each director will serve a two-year term or until his/her death, resignation, retirement, removal or disqualification. A vacancy may be filled, in most cases, by agreement of the remaining directors. Individual members of the Board of Directors will be elected annually. This election will take place at the annual meeting of the Association; or at such other special meeting called for that purpose. There is no limit to the number of terms (consecutive or intermittent) a member of the Board may serve. The Board of Directors may designate executive committees as needed, and each such committee will be controlled by a member of the Board. Regular meetings will be held by the Board of Directors for the purpose of conducting Association business. Special Board meetings may be called by the President or by any two (2) members of the Board. Following the close of the fiscal year, December 31 st, the Board will provide each member who is in good standing, a report concerning the condition of the Association and its property, along with an account of the financial transactions of the past year. The duties of the Board of Directors include: Keeping an accurate record of all its acts and corporate affairs, and presenting a statement concerning these findings to the members at the annual meeting of the members. Examining the amount of annual dues and, if necessary, special assessments against each lot, and send written notice of each assessment to every Association member at least thirty (30) days in advance of each due date. Adopting and publishing rules and regulations governing the use of the Common Areas, develop standards for the care and maintenance of personal property, as well as establishing penalties for misuse of these properties. At least sixty (60) days before the beginning of each fiscal year, the Board will prepare a budget for the operation of the Association for the upcoming year. This budget will include the source and use of funds. A copy of the final budget, including the amount of the annual dues, will be mailed to each owner at least thirty (30) days prior to its effective date. Questions or challenges regarding the Budget or Annual Assessment must be addressed to the Property Management Company in a timely manner. The Board of Directors will, always, act in the best interest of the Association, and assure full and complete compliance with the By-laws and the Declaration of Covenants, Conditions and Restrictions for the Mill Creek community. 3

5 YOUR RIGHTS AS A HOMEOWNER You are a homeowner if you own a title to a lot which is part of Mill Creek, with the intended purpose of using this property as a residence, and which property is not merely a security held for the performance of an obligation. Ownership of a lot in Mill Creek is the only qualification required for Association membership, providing all responsibilities and obligations are fulfilled. You have the right to cast one vote for each lot owned, on each matter submitted by the Board of Directors for consideration of the Association. Such vote may be in person, or by proxy. As a homeowner, you have the right to rent your home to a lessee whose sole purpose for leasing is to acquire residence in Mill Creek. Such leasing does not eliminate any of your responsibilities or rights as a homeowner. You, members of your family and your guests are entitled to the use and enjoyment of the Common Areas. You may also delegate to your tenants your rights regarding the Common Areas. RESPONSIBILITIES AND OBLIGATIONS OF HOMEOWNERS It is impossible for a society, or any of its segments, to exist or develop without guidelines. In most cases, these guidelines manifest themselves in the form of rules and regulations and include penalties for noncompliance. Mill Creek has such a framework of guidelines, which were contained in the information submitted to the State of North Carolina at the time of the incorporation of the Homeowners Association. DUES AND ASSESSMENTS Annual dues, and if necessary, special assessments are used by the Association to: 1) Provide funds for maintenance, upkeep, landscaping and beautification of the Common Area, and services related to these activities; 2) Pay taxes and insurance concerning the Common Areas; 3) Pay professional fees to accountants, attorneys and other professionals as needed to represent the Association; and 4) Provide needed services not readily available from any governmental authority. PAYMENT SCHEDULE FOR DUES AND ASSESSMENTS 1) Quarterly dues are payable at the beginning of each calendar quarter and are due on January 1 st, April 1 st, July 1 st and December 1 st of each year. 2) Special Assessments, when necessary, will be payable within sixty (60) days following receipt of notice from the Board of Directors of the amount of such assessment Special Assessments must be approved by a two thirds (2/3) vote of Association members. 4

6 3) Maximum Annual dues are described as follows: PENALTIES a. For the fiscal year beginning January 1 st, the quarterly dues will be ninety nine dollars ($99.00) on each lot owned; the annual total equal to $ The Association will pursue all legal means necessary and available to ensure compliance with obligations of each homeowner regarding dues, assessments, fines or liens. b. Failure of a homeowner to pay the quarterly dues or periodic assessment within sixty (60) days of the due date will result in such homeowner being assessed a late fee of twenty dollars ($20.00). At the time such late fee is assessed, the property manager will send a Notice of Delinquency, Right to Verification of Debt and Intent to Lien and Foreclose to the Homeowner. If the Homeowner disregards his/her obligation to pay the dues or assessment for the next thirty (30) days, the Association will place a lien on his/her property. It is the intention of the Association to proceed directly from a lien to foreclosure. Failure of a homeowner to relieve his/her state of delinquency will result in further assessments of twenty dollars ($20.00) being added every sixty (60) days. An assessment of one hundred dollars ($100.00) will be added if the delinquency continues for six (6) months and an additional two hundred dollars ($200.00) if it continues for twelve (12) months. Unpaid dues, assessments and fines will be subject to an annual interest charge of twelve percent (12%). c. Liens and foreclosures will be processed through the existing legal system in the State of North Carolina. The Association may charge a homeowner a reasonable monthly rent during foreclosure proceedings. 1) The Association has the right to limit and suspend use of the Common Areas, as described in the Rights as a Homeowner, to any homeowner in default in the payment of any annual dues or special or periodic assessments as levied by the Association. In addition, the Board of Directors may suspend the voting rights of such homeowner until each such dues or assessment is paid in full. 2) Voting rights may be suspended by the Board, after a hearing, of any homeowner who is in violation of any rules and regulations established by the Association. The homeowner will be given ten (10) days written notice advising of the place, date and time of the hearing. 3) Homeowners, who are in violation of any rules or regulations as established by the Association, will be subject to a fine, imposed by the Board of Directors, of not less than one hundred dollars ($100.00) per occurrence. These fines will be processed as liens against the property if not paid, and will bear interest, and, if necessary, collection costs, legal fees and court costs. The Association will pursue all legal means necessary and available to ensure compliance with obligations of each homeowner regarding dues, assessments, fines or liens. 5

7 RULES AND REGULATIONS: USE OF LOTS Lots shall be used for residential purposes only. Only one (1) structure on each lot, whether permanent or temporary, may be used as a residence. Any driveway shall have an asphalt, brick or concrete surface and will be kept and maintained in good condition and repair. Maintenance, upkeep and repair to the lot and any architectural and landscaping additions are the sole responsibility and expense of the owner, who will also be responsible to maintain each owned lot in a neat and clean condition, free from trash and debris. No offensive audible, visual or other activity may be conducted which may be or become an annoyance or nuisance to the neighborhood. No above-ground swimming pools shall be permitted on any lot. No metal building shall be allowed on any lot, and all accessory structures must be situated on a permanent foundation and conform to and be in harmony with existing structures. No signage of any kind shall be displayed to the public view on any lot with the exception of one sign of not more than five (5) square feet advertising the property for sale or rent. No animals, livestock or poultry of any kind shall be raised, bred, pastured or maintained on any lot, except for household pets. Household pets may not be permitted outside the homeowner s residence unless contained within a fenced yard or on a leash. It is the owner s responsibility to prevent their pets from accessing the lots of other Association members, and to ensure the excrement of their pets is removed as deposited from the Common Property. No fence or wall shall be erected on a lot closer to the street than the front of the house. Solid or privacy fences shall be erected entirely to the rear of the residence. All Garbage bins, lawnmowers and similar equipment will be kept in an enclosed structure or concealed by adequate planting or fencing. Clotheslines shall not be used or erected on any lot. No freestanding radio or television transmission or reception towers, antennas, dishes or discs will be erected on any lot. One (1) dish attached to the house, not exceeding two (2) feet in diameter and not visible from the street in front of the residence shall be permitted. No fence, wall, hedge or shrub planting may obstruct the clear view of the roadway from the roadside property line of any lot. No basketball goal shall be erected or allowed to remain within the right-of-way of any street. No commercial vehicle in excess of one (1) ton capacity or bus of any size or type shall be parked within the Mill Creek development. No boat, trailer or camper will be parked in front of the residence on any lot, nor in the community streets. Tag less or junk vehicles may only be parked in an enclosed garage facility. No vehicle shall park on the community streets overnight, or on any unpaved section of any lot. 6

8 RULES AND REGULATIONS: ARCHITECTURAL CONTROL An Architectural Committee is appointed and exists to address and control desired changes to individual lots, and to ensure conformity to the stated and intended Association rules and regulations. No exterior addition, change or alteration may be made to any lot without the written approval of the Architectural Committee. Desired additions, changes or alterations must be submitted in writing to the Architectural Committee. The written submission of desired additions, changes or alterations must include plans and specifications showing the nature, kind, shape, heights, materials and location in relation to surrounding structures and topography. Requests for the consideration of the Architectural Committee must be submitted to the Property Management Company. In the event the Architectural Committee fails to approve or disapprove requests properly submitted within thirty (30) days of receipt, approval will not be required. RULES AND REGULATIONS: GENERAL The Mill Creek Homeowners Association, Inc. has responsibility, authority and power to enforce the By-laws and Declaration and Covenants, Conditions and Restrictions for Mill Creek. The Mill Creek Clubhouse can be used with no charge. Clubhouse must be cleaned after any event. Call GPM Group to schedule date of use. 7

9 RULES AND REGULATIONS: POOL These rules and regulations are set forth for the safety, protection and well being off all members of the community and their bona fide guests in using the swimming facilities of the Association. Please read all of these rules before using the pool. 1) General Information a. Utilization of the swimming pool shall be restricted to home owners, their guests, invitees and tenants. b. The furniture provided by the Association within the pool area shall not be removed from the pool area at any time. c. Homeowners, their guests, invitees and tenants shall not leave any personal items within the pool area overnight, including, without limitation, lawn chairs, floats, towels and similar items. Pool users are expected to clean any mess made. d. Radios, stereos or similar amplified sound equipment shall be used only in a manner so as to be considerate of other people utilizing the pool facility and nearby residents. Such devices shall not be used after dark. e. Children under 14 must be accompanied by a parent or guardian will at the pool. f. Other restrictions are posted on a sign at the pool area. 2) Hygiene a. Babies with diapers are not permitted in the pool. b. Food, drinks, chewing gum, etc are NOT allowed in the water. These are allowed on the pool deck. c. Smoking is permitted, but ashtrays must be used. Residents and their guests are responsible for properly disposing of ashes and cigarette butts and cleaning the ashtrays prior to leaving the pool area. d. No spitting of water or similar actions is permitted. e. Individuals having inflamed eyes, open sores or infections are not permitted in the pool. f. Trash must be deposited in the containers provided. 3) Safety a. NO GLASS CONTAINER OF ANY TYPE OR KIND SHOULD BE PERMITTED IN THE POOL AREA. Violations of this rule will result in the offender being heavily fined and the pool being closed down for an indeterminable time. b. NO PETS OF ANY TYPE ARE PERMITTED IN THE POOL AREA AT ANYTIME. c. No wheeled vehicles (bicycles, skateboards, roller blades etc) are permitted in side the pool area. d. Any running, pushing, rough play, towel snapping or other such dangerous actions will not be permitted. Jumping on top of or dunking other swimmers is not permitted. 8

10 4) Trespassing and Vandalism The Board of Directors of the Association has the right to suspend the pool privileges or take other action deemed necessary against anyone involved in vandalism or trespassing. 5) Liability ALL PERSONS ENTERING THE POOL AREA DO SO AT THEIR OWN RISK. NO LIFEGUARD WILL BE PROVIDED. Entry constitutes agreement not to hold the Board of Directors of the Association liable for personal injury or loss or damage to personal property. The family member or adult guest is responsible for the actions of their accompanying minor children. Children brought and/or attended by a responsible person remain the responsibility of said person as long as the children remain in the pool area. Summary of Prohibited Activities at the Pool Anyone in violation of any of the following prohibited activities is subject to termination of pool privileges. Please read carefully! 1) Entering the pool or pool areas while in a state of intoxication. 2) Entering pool if individual has inflamed eyes, open sores or infections. 3) Babies/small children in regular diapers are not allowed in the pool. 4) Food, drinks gum etc are not allowed in the pool. 5) GLASS CONTAINERS OF ANY TYPE not allowed in the pool area. 6) Pets are not allowed in the pool or pool area. 7) Running, pushing, rough play, towel swatting and other dangerous activities are not allowed. 8) Jumping on top of or dunking other swimmers is prohibited. 9) Profane language is not allowed in the pool enclosure. 10) Climbing on walls/fences surrounding pool enclosure is not permitted. 9

11 CONCLUSION This booklet is intended to acquaint you, in general terms, with what you may expect from the Association, and what the Association expects from you. There has been no attempt made for the information to be exhaustive. For a complete list of details refer to the DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR Mill Creek Cornelius Homeowners Association Inc. If you should require further information or detailed clarification of an issue, please contact the Property Management Company: GPM Group P.O. Box 1685 Davidson, NC Telephone: (704) Facsimile: (704) gpmgroup@bellsouth.net 10

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