MANZANITA HOMEOWNERS ASSOCIATION RULES AND REGULATIONS. Revisions Adopted June 25, 2009

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1 MANZANITA HOMEOWNERS ASSOCIATION RULES AND REGULATIONS Revisions Adopted June 25, 2009 These rules and regulations have been created and adopted in compliance with the Manzanita Homeowners Association Declarations of Covenants, Conditions & Restrictions, executed in Clark County, Nevada, on August 3, The Rules are subject to change, amendment, supplement or deletion at any time upon a majority vote of the Board of Directors. Owners will be notified as to any changes.

2 TABLE OF CONTENTS Page Introduction / Preamble 1 Architectural Control 1 Common Area Use 1 Insurance 2 Leasing Restrictions 2 Nuisances / Noise 2 Owner Responsibility / Unit Use, Maintenance and Repair 3 Trash 4 Window Coverings 4 Commercial Use of Premises 4 Signs / Displays / Storage 4 Parking / Vehicle Restrictions 5 Gate Access Procedures 6 Towing Policy 6 Pets 6 Recreational Amenities 7 1. Pool and Spa 7 Pool Pass 7 Pool Rules 9 2. Exercise Room Clubhouse 10 Clubhouse Rental 11 Clubhouse Use Fees 12 Meeting Procedures 12 Inspection of Records 14 Violation / Penalty Policy and Procedures Notice Procedures Hearing Procedures Appeals Procedures 16 Schedule of Fines 16 i

3 A. INTRODUCTION / PREAMBLE The purpose of the Rules and Regulations is to establish basic standards of conduct required of all Members, residents and guests of Manzanita Homeowners Association. The Rules and Regulations are intended to ensure that every Member, resident and guest may fully enjoy their individual rights of their unit and their right to use the common areas and amenities, without unduly interfering with other owners rights. The Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Articles of Incorporation, Bylaws, Rules and Regulations are the governing documents for the Association and control its operation. Common interest communities are governed by NRS 116. The governing documents are superseded by this State statute where applicable. The Board of Directors, elected by the homeowners, makes all policy decisions for the management and operation of the Association. Contracted management assists the Board of Directors by carrying out the day-to-day activities in accordance with the policies adopted by the Board of Directors. Each homeowner is responsible to ensure that all residents, guests and persons inhabiting their unit are in compliance with all governing documents. Each owner is responsible for supplying a copy of the CC&Rs and these Rules and Regulations to each occupant of his/her unit. B. ARCHITECTURAL CONTROL 1. No change shall be made to the exterior design of any structure without written approval from the Board of Directors or Architectural Control Committee. This includes ornamental screens, security doors, patio covers, sunshades, porches, decks, solar coverings, and any other modifications that affect appearance, safety and access of individual units or that affect common areas. Metal security screen doors shall be white/off white to match the door frame color and may not contain any window element. Homeowner is solely responsible for installation and maintenance of such doors. A picture of the proposed screen door shall accompany the Request for Architectural Change submitted to the Board. All security screen doors shall have a standard address plate affixed. 2. Tile and hardwood flooring is not permitted. Violation of this condition, once observed or reported, will be handled in accordance with the Violation / Penalty Policy and Procedures found below. 3. Light coverings on patios or balconies shall be standard plain opaque white globe coverings. 1

4 C. COMMON AREA USE 1. Common areas may not be used for storage or parking purposes, with the exception of the use of unassigned parking spaces as outlined in the Parking section of these Rules. 2. No activity is permitted which causes damage to or defaces common areas and improvements. Individuals responsible for any such damage will reimburse the Association for all expenses incurred in the replacement or restoration of damaged items. Chalking, tagging, or any other forms of graffiti are prohibited. 3. No planting may be done in the common area by any owner, except at the direction of the Board of Directors. 4. No decorations may be placed or erected on common areas which interfere with the maintenance of the common area. 5. Common areas may not be used in any manner that would increase the rate of insurance. All repair costs resulting from the violation of this section will be assessed to the owner causing the damage. D. INSURANCE 1. Owners shall maintain individual unit owner insurance to cover their individual personal property and upgrades to their units as well as to cover any damage any resident or tenant or guest may cause to another s Unit. Owner shall require proof of renters insurance from their tenants to cover tenant s individual property. E. LEASING RESTRICTIONS 1. Each unit may only be used for single-family residential purposes. 2. Owners are responsible for the actions of their tenants and their tenants guests. 3. A unit may not be leased for a term of less than 180 days. Time shares and transient leasing is prohibited. 4. All leases shall be in writing and shall be provided to the management office with the completed Resident Information form ten (10) days in advance of occupancy of any tenant. The form may be obtained from the management office. The information provided on the form will enable activation of gate cards for gate operation and issuance of parking stickers. 5. Owners shall provide all tenants a copy of the CC&Rs and Rules and Regulations. 2

5 F. NUISANCES / NOISE 1. No noxious odor is permitted to arise from any unit. No unit at any time is permitted to become unsanitary, unsightly or offensive. 2. Quiet time within the community is 10pm to 7am. The community shall observe and enforce a 12-month [year-round] 10pm daily curfew for minors. Minors shall not to be present in any common area after 10pm throughout the year. The community park shall be closed to any activity at dusk. 3. No noxious, offensive trade or activity shall be carried on within a unit, nor shall anything be done which may become an annoyance or nuisance to other unit owners. All music, radio, and TV volume levels must be contained within the unit. 4. Loud noises, external speakers, horns, bells or other sound devices, other than security devices, are not permitted regardless of time of day or night. 5. Noisy vehicles or vehicles with faulty exhaust systems, large power equipment or items which may interfere with TV or radio reception, including but not limited to vehicle radio music heard outside of the vehicle, are not permitted. G. OWNER RESPONSIBILITY / UNIT USE, MAINTENANCE AND REPAIR 1. No improvement, painting, excavation or other work that alters the exterior appearance of a unit is permitted unless a Request for Architectural Change is submitted and approved by the Board of Directors. 2. All water heaters, air conditioning equipment, trim, doors, windows, doorbells, and address plates are the responsibility of the owner of the unit served by those items. Address plates are required to be present at all times on all front doors, including but not limited to owner-installed metal security screen doors. Address plates are deemed to be safety equipment. 3. Each unit owner is responsible for the removal of dirt, snow, leaves, & debris from the patios/balconies and front landing of the unit. 4. Each unit owner is responsible to hire appropriate vendors to stop and/or prevent any water leaks within the unit. Costs for any damage to common areas or another s unit resulting from interior unit water leaks will be assessed to the negligent owner who owns the source of the leak. 5. Nothing is permitted within a unit that would increase or cause the cancellation of insurance pertaining to any portion of the community. 6. Penetrations of the exterior structure or stucco of the building is prohibited. 7. Individual yard sales are prohibited. Community garage sales may be allowed upon request and approval of the Board of Directors. 3

6 8. No Owner/Resident nor their agent may disturb or dictate work to any contractor of the Association. 9. In the event of any slab leak floor repairs undertaken by the Association, floor covering replacement will be at owner s expense. H. TRASH 1. All rubbish/trash shall be regularly removed from each unit by the owners and shall not be allowed to accumulate. 2. Trash placed in the dumpsters needs to be contained by bags and ties to ensure it does not blow throughout the community. 3. Boxes need to be broken down before placing in the dumpsters. 4. All large items must be removed from the property by the owner. Furniture is prohibited from being placed in the dumpsters. I. WINDOW COVERINGS 1. Only standard window coverings are allowed. The coverings must be white or off-white in color as seen from the outside of the unit. 2. Aluminum foil, newspaper, sheets, cardboard, mirror reflective tint, paint are not considered standard window coverings and are not permitted. J. COMMERCIAL USE OF PREMISES 1. No business or commercial use of a unit that significantly increases traffic or the presence of non-residents within the property is permitted. The use cannot be apparent or detectable by sight, sound, or smell from outside the boundaries of the unit. 2. No business or commercial use of a unit that generates vehicle parking requirements is allowed. 3. The activity must not increase the insurance obligation of the Association and must comply with governmental ordinances. K. SIGNS / DISPLAYS / STORAGE 1. All holiday decorations and lights must be removed within four (4) weeks following the holiday. 2. One (1) For Sale or For Rent sign may be displayed in a window of a unit. 3. No clotheslines, refuse, or storage on patios or balconies is allowed. 4

7 4. Large toys and bicycles may not be stored on the patios/balconies of the unit where they can be seen from the street. 5. Only electric BBQs are allowed on the patios/balconies of a unit. 6. Display of the American flag is only permitted within the limited common elements of a unit. The flag must be displayed in accordance with the U.S. Flag Code. 7. Spas, hot tubs, water beds are not permitted in any unit, patio, or balcony. L. PARKING / VEHICLE RESTRICTIONS 1. The speed limit throughout the property is posted as 5 mph; no vehicle shall exceed 10 mph. Speeds over 10 mph are subject to fines for safety violation. 2. Access to the community shall be through the entrance gate only. Any Entry by the exit gate is subject to fines for safety violations. Any exit through the entrance gate is subject to fines for safety violations after a Hearing. 3. The following are non-authorized vehicles and may not be parked in any space within the community: mobile homes, oversized commercial vehicles [i.e., tow trucks, semi-trailer cab and/or container, delivery/moving vans and other similar-sized vehicles], construction equipment, dump trucks, recreational vehicles, boats, trailers, campers, personal watercraft, motor homes, and all similar vehicles. Temporary parking of non-authorized vehicles is allowed only for loading and unloading purposes. Oversized personal vehicles or personal work vehicles must be parked in the uncovered parking areas between Building 4 and the community park in the Visitor s Parking area. Oversized personal vehicles are defined as exceeding the width or length of a marked parking space, or where a vehicle s doors, when open, may damage or cause damage to adjacent vehicles, or a vehicle that is of a size that prevents other vehicles from parking in an adjacent marked parking space, or where adjacent vehicles cannot open doors without causing damage. 4. Parking under carports is reserved. Anyone parking in a covered space that is not deeded to their unit is subject to removal. Parking in uncovered spaces is first-come-first-served subject to the size restriction in (3) above and to the restrictions set forth in (5) and (6) below. 5. Parking is not permitted in the landscaped areas of the community nor in any red zone, nor in any fire hydrant zone, nor in any space designated as reserved for handicap-designated vehicles (unless a valid handicap parking permit is displayed). 6. Vehicles cannot be parked to block access to an assigned parking space of an owner, a common area unassigned parking space, or to block the normal flow of traffic. 5

8 7. Repairs / restoration, including but not limited to changing engine fluids, of vehicles is prohibited and will be considered a nuisance. Using community water sources to wash any vehicle is prohibited. 8. Bicycles, tricycles, big wheels, skateboards, roller skates, roller blades, motorbikes, dirt bikes, motorized scooters, motorcycles, or similar vehicles are not allowed on sidewalks or common area grass lawns at any time. 9. Tricycles, toy cars, and similar toys may be operated on the hardscape areas within the community. Hardscape areas do not include sidewalks, landscape rocks, or grassy areas. 10. All licensed motorcycles shall be operated at low RPM engine speed to minimize noise nuisance. Parking, storing, or maintaining motorcycles on patios or balconies or within a residence is strictly prohibited by both community and the local fire prevention ordinances/code. Riding or pushing a motorcycle onto the sidewalks is strictly prohibited. M. GATE ACCESS PROCEDURES 1. All vehicles brought onto the community premises by residents shall be registered with the Association. Residents shall obtain and maintain in good working order an entry gate access card for each vehicle and shall use this card to gain access only through the entrance gate. Each vehicle shall display a parking sticker to be obtained from the Association. 2. All residents must register with the Association, including all co-residents, and provide a contact phone number in order to be listed in the entry gate roster. The entry gate roster is provided for the convenience of residents to admit guests and/or service or delivery personnel. N. TOWING POLICY 1. Vehicles parked in another unit owner s assigned parking space may be subject to towing or be made immovable by the placement of a boot by the unit owner affected. The affected unit owner should place a notice on the improperly parked vehicle notifying the offender that the vehicle is improperly parked. If the trespass continues, owner may call a towing company to remove or boot the offending vehicle. 2. Inoperable, disabled, unlicensed vehicles are not allowed to be parked within the property at any time. Vehicles with blocked wheels, flat tires, or with other obvious signs that indicate the vehicle is inoperable will be subject to towing or booting at the owner s expense. 3. A towing/booting warning tag will be placed on the window of an inoperable vehicle. Towing/booting may occur after 48 hours unless arrangements have been made with the Association by the owner of the inoperable vehicle. 6

9 4. Vehicles parked in fire lanes, red zones, designated handicapped parking may be towed or booted immediately without notice. O. PETS 1. Two pets total, either dogs and/or cats weighing less than 20 lbs. each as adult animals are permitted within the property. An animal who reaches over 20 lbs as an adult is not exempt because it was brought onto the property as a juvenile weighing less than 20 lbs. 2. No animals may be kept, bred, or maintained for any commercial purpose. No pets other than cats, dogs, fish or caged birds may be kept within the community. 3. Pets must be kept within an enclosure or on a leash or other restraint being controlled by a person capable of controlling the animal at all times. 4. Pets are not permitted to be left unattended in any common area. Pets are to be kept within a unit unless leashed. Pets may not be unattended on the patios or balconies. 5. Pets are not permitted to cause or create a nuisance or unreasonable disturbance to other residents. Residents should report such incidences to the management office as soon as possible. 6. Excessive barking, whining, etc. should be reported to Clark County Animal Control when the behavior is occurring. Once Clark County Animal Control is called, please call the management office. Clark County Animal Control can be reached at Manzanita is located in the unincorporated area of Clark County. 7. Pet owners are responsible for immediate removal of any pet waste. 8. No animals, including but not limited to amphibians or reptiles, are allowed within the pool enclosure or clubhouse with the exception of service animals. 9. The Association shall be held harmless for actions of any pets. Use of pet waste bags is restricted to their intended purpose. Other use shall be considered theft of the community s property. 10. All residents should report aggressive animal behavior, loose pets and unattended animals to the management office, providing all details necessary for identification of the offender. 7

10 P. RECREATIONAL AMENITIES Access to the Manzanita Pool is by picture pool pass only. Pool users must have a pool key in their possession at the time of pool use to ensure they may exit the enclosed locked pool area in case of emergency. Manzanita has a Zero Tolerance pool policy. As the rules are provided to the households when obtaining the pool picture identification cards and an adult of the household signs that the Pool Rules have been received and are understood, Zero Tolerance becomes active when the first offense is committed and the individual [and any host] may be removed from the pool. 1. POOL AND SPA Pool Pass A. Who is eligible to receive a pool pass: Owner Tenant named on Lease All Dependents Guests B. Definition of Users: - ADULT is anyone 18 years of age or older - MINOR is anyone 13 years old or younger - TEMPORARY GUEST is any non-resident adult or minor - HOST -- only an Adult resident or owner can be a Host C. Types of Pool Passes: - Owner [adult] - Blue. Requires proof of Address will accept Drivers License or current bill. No expiration date. - Tenant [adult] Named on Lease Pink. Will accept copy of current lease. Pass may show expiration date of lease - Adults living with Owners or Tenant Green. Will accept Drivers License. Pass may show expiration of lease. - Minors living with Owners or Tenant Red. Requires School ID or parental verification with proof of age. Pass may show expiration of lease. - Temporary Guests: Adult Purple; Minor Yellow. Minor s age must be verified by accompanying Adult Host. These passes available only from Pool Monitor D. Procedure to Obtain Pool Pass: - Provide required identification, copy of lease, verification of age of Minors - Have photo taken for Pool Pass Designated Times will be Posted on Clubhouse Door E. Pool Pass Cost: - Cost of Pool Pass is $2.00 each for Owner/Resident; Temporary Guest Passes are Free; any future replacement of any Pool Pass is $

11 - Temporary Guest s Host is responsible for Guest pool passes and will be billed for their replacement; Host s privileges suspended until paid. - Lost Temporary Guest passes will be cancelled and will no longer be valid F. Information shown on Pool Pass: - Pass will have random number assigned w/photo; no names; no addresses shown - Pass for all Members of Tenants household may show lease expiration date G. Temporary Guest Passes: - Temporary Guest pass is only available from the Pool Monitor only 2 per household - Resident Adult Host w/ current Pool-Pass must sign for Guest passes and stay with Guest at Pool H. Use of Pool and Passes: - Pool Monitor will have final decision to allow entry into Pool Area and can eject owner, tenant, or guest for disruptive or dangerous behavior - Photo ID pool pass is required for entry into pool - All minors 13 years of age or younger using the pool must be accompanied and actively supervised by a Host Adult - Temporary Guests must be accompanied by Host Adult - Each person entering pool area must carry a photo ID pool pass - All Temporary Guests must return their Pool Pass to the Monitor when leaving the Pool POOL RULES POOL OPEN ONLY WHEN MONITOR ON DUTY - ZERO TOLERANCE POOL AREA No disrespect of any Monitor - hired patrol or community volunteer No one less than 14 yrs old in pool area without adult [18+ yrs old] actively supervising them. Unacceptable behavior will result in ejection from pool area No alcohol, no drugs, no weapons; no smoking while in the pool No food of any kind in pool area no popsicles, no ice cream, no snacks, etc No glass containers of any kind No horseplay of any kind no running, no jumping, no shoving, no diving, etc No climbing on spa railing or pool fencing No playing with pool safety devices or tools hook or net or rescue ring Only appropriate swimwear may be worn in the pool No cursing, swearing, or use of foul language by anyone No loud music use earphones 9

12 No more than 2 guests per household in pool area; no more than 50 persons in pool at any one time - if numbers exceed 50, guests will be asked to leave No one with open wounds or contagious diseases in the pool No pets of any kind in pool area or in pool with the exception of service animals For safety of a child under 12 years old using the spa - please limit time to less than 10 minutes close adult supervision is required. No child under 12 years old may be in the spa without an adult accompanying them in the spa area. If rule-breaking behavior is observed after the designated pool monitor leaves, pool will close immediately. Further, Gates to the pool area must remain closed and locked at all times. Interfering with automatic gate closures and/or climbing over the pool area fence are prohibited. Propping the gate open is prohibited except as required by maintenance personnel. Pool users must possess and keep with them a pool key at all times while in the pool area. No access will be granted to those without a pool key. Adjustment of any control or equipment regulation the pool or lights or other common area services is prohibited. Towels or garments may not be hung on the pool area fence. When leaving the pool area, all trash and personal items must be removed. The patio furniture may not be placed in the pool and may not be removed from the pool area. Pool use is strictly governed by state and county ordinance (NAC Chapter 444). In the event of conflict between such laws and these rules, the provisions of the law shall prevail. The telephone installed at the pool area is for emergency calls to 911 only. 2. EXERCISE ROOM A. The exercise room is accessible by key only. B. The Association does not assume any liability for the use of the exercise room and its contents/equipment by any resident or their guests. C. Wipe down any piece of exercise equipment after each use. D. Any interference with the camera mounted in the exercise room is prohibited. E. No food is permitted in the exercise room. Water is the only beverage permitted in the exercise room. 10

13 3. CLUBHOUSE The Clubhouse is available to be rented only when there is Community Patrol scheduled to be on the premises. Be sure to confirm time and date of rental before sending out invitations. A. The Clubhouse is for the use of Manzanita Condominium owners, their tenants, and their guests. The use of the Clubhouse by owners and/or their tenants may be restricted by the Board of Directors for delinquent dues, violation of Policies and Guidelines or deliberate abuse of the clubhouse, its amenities, common area or its facilities. B. The Clubhouse may not be used for commercial purposes. Products may not be sold nor demonstrated in the Clubhouse for the profit of any individual or commercial enterprise, excluding non-profit organizations. C. Furniture must not be removed from the interior of the clubhouse. Furniture may be moved within the Clubhouse, however, an additional $25 service charge will be incurred by the renter if the furniture is not returned to its original position at the close of the event and will be deducted from the $200 damage/cleaning deposit. D. Classes of an educational but non-commercial nature maybe offered in the clubhouse provided the class is desired and attended by owners and their guests and open to all owners. No classes to demonstrate products or services for sale are permitted. Class sponsors / organizers shall be responsible for clean up. E. Alcoholic beverages are prohibited from being used or served to anyone in the Clubhouse at any time. F. Red colored beverages of any kind are not permitted. G. Based on the nature of the function, a renter may be required to provide a security guard at the function. H. The reserved function may not last later than 10:00 p.m. The renter is responsible for all pick up and deliveries, which may only be made on the day of the event. Renter is responsible for set up and complete clean up promptly following the event. I. The renter must supply any kitchen equipment, tables, podiums, etc. J. A maximum of 50 persons are permitted within the clubhouse. 11

14 K. Live bands will not be permitted. L. Use of the weight/exercise room and pool/spa area are not included with the rental of the clubhouse. Use of such facilities by the guests of an event is not permitted during the rental of the Clubhouse. M. The Clubhouse may be used only when Community Patrol Personnel are on-site and available to provide access and close-up. Clubhouse cannot be rented during normal business hours of onsite management. No keys will be given to the person renting the Clubhouse. N. A Clubhouse rental agreement must be executed by the resident/renter. O. The Clubhouse kitchen contains only a refrigerator and a cold-water sink for use by residents. 3.1 Clubhouse Rental A. Reservations may be made for use of the Clubhouse for private parties with the exception of the weight/exercise room and pool/spa area. Reservations may be made by calling the Association s onsite office at Reservations must be made through written application at least 14 days in advance. B. Reservations may not be made for Holidays. C. Functions of the Association have priority for reserving the Clubhouse. 3.2 Clubhouse Use Fees A. A damage deposit and cleaning deposit is required to reserve the clubhouse and must be payable to Manzanita Homeowners Association at the time reservations are made. B. Damage / cleaning deposit is $200 and the rental / service fee is $25; fees are payable by money order or check. C.. Refund of deposits are subject to cost(s) incurred for the following: i. Damage to the clubhouse and/or its contents ii. iii. iv. Damage to any common area landscape or clubhouse facilities arising form the rental of the clubhouse Cleaning of the Clubhouse Violation of any of the Policies and Guidelines of Manzanita Homeowners Association during times related to rental period ******************************************************************************************** 12

15 MEETING PROCEDURES Meetings of the Board of Directors must be held at least once every quarter but no less often than once every 100 days. Notice of the meetings will be sent to all owners. The meetings will be conducted using parliamentary procedure as a guide. Each meeting is preceded by a Homeowners Forum. This is the opportunity for the homeowners to address the issues on the Agenda only. The Board of Directors makes all policy decisions for the Association. After the Homeowners Forum portion is concluded, the meeting is called to order. The homeowners are welcome and encouraged to observe the meeting. However, from this time until the meeting is adjourned, only the Board of Directors participate in the discussions. Business and policy decisions are made according to an agenda. The Board of Directors may only take action on items listed on the agenda unless an item meets the criteria outlined in State law as an emergency. Following the meeting, a second Homeowners Forum will take place. At this time, Homeowners may ask questions, state opinions, and offer constructive suggestions for the operation of their Association. Beginning July 1, 2009, all meetings of the Board of Directors will be audio recorded [no video recording permitted]. Thirty (30) days after each meeting, a copy of the audio recording will be made available to any Homeowner upon written request and, if required by the Board of Directors, upon payment to the Association for the cost of making the copy and the distribution Any owner is entitled to a copy of the minutes or a summary of the minutes of the meeting upon request with no charge for electronic copies; for a paper copy, a charge of $0.25 per page for the first ten (10) pages and $0.10 for any additional pages. Any attachment to the Minutes is limited to submissions from owners and they must be in writing, dated, signed by the owner, and contain the property address. The attachment shall not contain any personal derogatory statements, libelous content, or obscenity and shall not exceed one page in length. Executive sessions of the Board of Directors, limited to Members of the Board of Directors and its invitees, are held either before or after the meeting of the Board of Directors. The Board may consider matters concerning violations of the governing documents including hearings, monthly assessments/dues payments delinquencies, a contract between the Association, personnel, and proposed or pending litigation at these meetings. ************************************************************************************ 13

16 INSPECTION OF RECORDS A written request to inspect records of the Association must be made through the management company. Inspections may be made during regular business hours by appointment and will be scheduled no later than 14 days after receipt of the written request. All copies will cost the Member $0.25 per page for the first ten (10) pages and $0.10 per additional page. In-person inspection of the records will be billed to the Member at the rate of $10.00 per hour. Records of personnel or those pertaining to another unit owner are not available for inspection by the Members. ******************************************************************************************** VIOLATION / PENALTY POLICY AND PROCEDURES The Board of Directors of Manzanita Homeowners Association has been given the responsibility to conduct, manage and control the affairs and business of the Association and to adopt, amend, repeal and enforce reasonable rules and regulations governing, among other things, the use of the Association property. Accordingly, the Association, through its Board of Directors, has approved the following enforcement Policies and Procedures for the Rules now in force or as amended hereafter, and for the Rules as may be hereinafter adopted or amended. An association Member or the contracted Community Patrol Personnel or the Association Manager may observe a violation of the governing documents. All complaints from association Members must be writing and submitted to the Board of Directors through the management company. A community input form may be obtained from the management office. The complaint may also be submitted in letter form. Prior to the imposition of any penalty for violation of the Bylaws, CC&Rs or Rules and Regulations, the Association shall provide the offending Member with notice of the violation and an opportunity for a hearing. Owners are responsible for the violations of their guests or tenants or tenants guests. 1. Notice Procedures Except in the case of violations which may negatively impact health and safety of individuals or the assets of the community, the following Notice Procedure will be followed. In the case of health and/or safety violations, the Board may call the offending Member to a Hearing as soon as possible without first or second letters. Owners are responsible for the health and safety violations of their guests or tenants or tenants guests. 14

17 First Letter Courtesy or Awareness Letter notification to Member of infraction and request for compliance. This Letter will be sent to the Member for infractions by the members of their household, members of their tenant s household, and/or for infractions of their guests or invitees or the guests or invitees of their tenants. Members will be held liable for any guest/invitee s infractions once the Courtesy Letter has been issued. Upon second occurrence of health and safety violations by a guest/invitee, the matter may be brought immediately to a Hearing without a second letter. Second Letter Violation notification to Member of infraction and request for compliance. Allow 10 days for compliance. Owner may request a hearing before the Board of Directors or Committee appointed for that purpose. Third Letter Hearing Notice will notify Member of the violation, time and place of hearing, invitation to attend, and the sanction that may be imposed. The Association shall have the right to limit the time of the hearing and limit the time in which any evidence may be presented. This notice will be mailed not less than 10 days prior to the hearing date. If a subsequent violation of the same rule, for which compliance was obtained after the Second Letter, reoccurs within twelve (12) months, a Hearing Notice will be issued without sending a first or second letter. 2. Hearing Procedures The Hearing Committee, upon hearing the evidence, may decide that no violation exists or find that a violation exists and impose penalties. If it is determined that a violation does exist, the Board of Directors or its appointed Committee shall have the right to impose the following sanctions: A. Suspend the voting rights of any Member on matters related to the common interest community for a period not to exceed 30 days. B. Assess a fine for each failure to comply. The fine must be commensurate with the severity of the violation, but must not exceed the limits as set forth in NRS 116. C. If a fine is imposed and the violation is not cured within a minimum of 14 days or longer period as may be established by the Board of Directors or its Committee, the violation shall be deemed a continuing violation. An additional fine may be imposed for each 7-day period or portion that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard. 15

18 3. Appeals Procedures If the hearing is before a committee of the Board, the violator shall have the right to appeal the decision to the Board of Directors. The appeal must be in writing addressed to the Board of Directors and must be received by the Association within ten (10) days after receipt of notification of the hearing decision. Any sanction or fine imposed by the Board under Violation / Penalty Policy and Procedures may be waived at the discretion of the Board upon appeal. SCHEDULE OF FINES Architectural Violations Each occurrence - $ per violation Violations affecting safety or health Each occurrence $250 - $ per violation Continuing Architectural, Safety & Health Violations - $ $ per fining period All other Violations Each occurrence - $50.00 Continuing Violations other than Architectural, Safety & Health Violations - $ $ per fining period 16

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