AVONLEA HOMEOWNERS ASSOCIATION RULES, REGULATIONS AND POLICIES ADOPTED JANUARY 2018

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1 AVONLEA HOMEOWNERS ASSOCIATION RULES, REGULATIONS AND POLICIES ADOPTED JANUARY 2018 Rules & Regulations Adopted Jan 2018 Page 1 of 21

2 DOCUMENT HISTORY DATE DESCRIPTION 9/2015 Rules and regulations received from attorney. 6/2017 TO 10/2017 Complete updates for Sections impacted were 3.0 Aesthetic Rules and Guidelines; 3.1 General Appearance; 3.2 Yard Maintenance; 3.6 Roofs and Gutter and 4.6 Vehicles. General fonts changed from 13 to /16/2017 Add leaves to Aesthetic Rules and Guidelines section 3.0, 3.1 and /21/2017 Add dumping leaves and other tree debris from property onto city streets and discusses fine structure for that action to section 3.0 Rules & Regulations Adopted Jan 2018 Page 2 of 21

3 TABLE OF CONTENTS 1.1 Overview Guidelines New Construction Paint Fencing Roofing Driveways and Ramps Residential Storage Buildings (Attached or Detached) Antennas and Lighting Manufactured Homes Signs Forms Timing Violations General Appearance Yard Maintenance Paint and Trim Driveways Hedges Roofs and Gutters Sidewalks Dwelling Exteriors Holiday Decorations Tarps Interior Window Coverings 12 Rules & Regulations Adopted Jan 2018 Page 3 of 21

4 3.12 Exterior area coverings Animals Noise Fire Pits Fireworks Rentals Vehicles Violations Initial Investigation Legal Action Additional Remedies Schedule of Fines Collection of Fines Appeal of Fines Appeal Process Effective Dates Standards of conduct/violations FINES and REMEDIES Homeowners Addressing Board Comment Period Assessments Collection Procedure 20 Rules & Regulations Adopted Jan 2018 Page 4 of 21

5 1.0 Architectural Control 1.1 Overview Article VI, Section 1 of the Avonlea Homeowners Association Covenants, Conditions and Restrictions (CC&Rs) states: No clearing, grading, or construction of any building, fence, wall or other structures shall be commenced, erected or maintained upon the Property, nor shall any exterior addition to or change or alteration therein be made until the construction plans and specifications showing the nature, kind, shape, height, materials, color, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures, and topography. Alteration includes the re-painting of a structure. Additional CCR s contain requirements such as the building and set back requirements. 1.2 Guidelines It is important to have uniform, consistent and fair application and enforcement of the CC&Rs. This sometimes requires having to reasonably determine the meaning of particular words in sections of the CC&Rs that are capable of being interpreted in different ways so that the intent of the particular covenants is appropriately applied and enforced. The Association has decided it would be helpful to adopt a policy on how to interpret and apply the term building and structure as used in the CC&Rs. The terms structure and building are key elements of these Rules for purposes of enforcement. This policy will provide guidance to current and future owners and board members. The Association, in arriving at this Interpretation Policy, has considered many factors, including without limitation: the types of improvements owners have created, placed or installed within the setback areas in the past the types of improvements owners could in the future place in the setback areas on their lots the intent of the setback requirements are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the real property of the community Accordingly, the HOA Board, in the interest and for the benefit of the community, adopts the following Enforcement Policy: When the Association interprets or enforces the words building, structure, and residence, those terms shall be interpreted as meaning any improvement, addition or Rules & Regulations Adopted Jan 2018 Page 5 of 21

6 change of any kind to or within the setback areas of lots that have any effect on or block, interfere with or impair line of sight three (3) feet or more above ground level as seen from surrounding lots, or by neighbors and/or from the street, including without limitation fences, and children s play equipment affixed in any way to the land or secured to wood, concrete or pads on the ground consisting of other materials. In Sidewalk, Driveway and Ramps paving the verb form of building is interpreted to mean that sidewalk, driveway and ramps, paving should be harmonious within the community. It is required that all construction shall comply with all City of Lacey, Thurston County and State Building Codes, Restrictions and Laws. It is the owner s duty and responsibility to be aware of all permit requirements, and to pursue, pay for and obtain all necessary governmental permits for the construction. Please note that approval from the City DOES NOT MEAN APPROVAL FROM THE ASSOCIATION. Any work that will produce significant changes in the appearance of your property requires prior approval of the Association's Architectural Control Committee. 1.3 New Construction Construction of new homes must be harmonious with the other homes in the subdivision. This harmony includes, but is not limited to, height, square footage, lot coverage, landscaping, materials, finishes and colors. Plans, specifications, materials, finishes, landscape design, and color schemes must be submitted to the Architectural Control Committee for approval before any work is commenced. 1.4 Paint Exterior paint must be harmonious with the other homes in the subdivision. Prior to painting all homeowners who wish to change exterior color, or repaint existing exterior color, must submit color schemes prior to the start of the project to the Architectural Control Committee for approval. 1.5 Fencing Fencing materials and plans must be submitted to the Architectural Control Committee for approval prior to the work taking place and must meet set back requirements listed in Article VII, Section 9. Chain link fencing is not an approved material. Wooden fences are the only acceptable material used at the setback lines. See CCR s Article VII Section 3 Fences for details. Fencing cannot be built forward of the setback requirements as defined in the CC&Rs. Fences may not exceed 6 feet in height. Rules & Regulations Adopted Jan 2018 Page 6 of 21

7 1.6 Roofing Construction plans, a description and design, and samples of roofing materials must be submitted to the Architectural Control Committee for approval prior to the work taking place. 1.7 Driveways and Ramps Construction plans and a description of materials and samples to be used for driveway or ramps must be submitted to the Architectural Control Committee for approval prior to the work taking place. Driveways must be harmonious with the existing community. 1.8 Residential Storage Buildings (Attached or Detached) Construction plans and description of materials and samples to be used must be submitted to the Architectural Control Committee for approval prior to the work taking place. Plans must include: dimensions of length, width, and height of the structure, description and sample of materials for siding, roofing, paint and exterior colors, foundation plans and materials samples. All storage buildings will be constructed of materials that match or complement the existing residence, with workmanship comparable to that of residence. Detached storage building should be completed within 4 weeks of commencement of construction to include exterior painting of the structure. (include paint sample) Only one (1) detached storage structure per residential lot will be allowed. Landscaping should be designed to blend the structure into the surrounding landscape. All setback rules apply. Landscaping around storage structures on must be designed to camouflage the structure as much as possible to reduce its impact on the appearance of the neighborhood. 1.9 Antennas and Lighting No radio or TV antennae, transmitters or exterior flood lights shall be permitted unless approved by the Architectural Control Committee (ACC). Satellite dishes may be installed after ACC approval and consistent with federal laws governing satellite dishes. Every attempt should be made to maintain the integrity of the neighborhood Manufactured Homes No mobile or "manufactured" homes, trailers, structures of a temporary character, recreational vehicle, basement, tent, shack, garage, barn, or other out buildings shall be used on any Lot at any time as a Residence, either temporarily or permanently. No Rules & Regulations Adopted Jan 2018 Page 7 of 21

8 vehicles parked in public rights-of-way may be used temporarily or permanently for residential purposes Signs No signs, billboards, or other advertising structure or device can be displayed in public view on any Lot or in the Common Areas, except: One sign not to exceed 6 square feet in area may be placed on a lot to offer the property for sale or rent Open House: Place signs 2 days prior. Remove at end of Open House not to exceed 5 consecutive days or 10 days in a calendar month Political yard: no more than two signs measuring 24x38 inches, and of a temporary nature, will be allowed during campaign periods on Lots. These temporary signs must be removed within 7 days after the election date Garage Sale: Directional signs during the sale are permitted There is an approved bulletin board for residential use constructed in the Tot Lot playground. 2.0 Approval Process Please remember that any changes to the exterior of your property or residence, including remodeling, paint, driveway, ramps, steps, fences, sheds, roofs and landscaping require prior approval by the Association's Architectural Control Committee. Copies of the CC&Rs and Rules & Regulations are available on this website under the Documents tab or you can be mailed a copy upon request, in which case the Association reserves the right to charge a reasonable copying and mailing fee to cover its costs. Home improvement work that requires prior approval includes but is not limited to: Roof replacement or repair (include small 2 x 2 inch sample) Exterior painting - even replacing existing color(s) (include paint swatches) Exterior Doors, Garage Doors (include pamphlets or pictures and color) Decks including repairs (include type of wood/composite materials and finishes) Fences including repairs and replacement (include height, distances, plot plan, diagram and finish of fence) Major Landscaping (i.e. 25% or more change to existing landscaping) please include drawing with scope of work, list of materials and plants. If in doubt please contact the Board. Driveways, sidewalks, ramps, porches (include diagram with distances and finishes) Sheds Gutters (written request including drawing and cross section) Rules & Regulations Adopted Jan 2018 Page 8 of 21

9 Remodels including siding, stone, brick, architectural details, roofline and chimney. Additions of any type. Need complete Architectural designs and details, approved City Permit, elevations, materials and finishes including colors, stains and styles. 2.1 Forms Owners must provide a completed Modification Request Form. This can be done on line or by downloading the form from the Documents Tab on the HOA website, then printing it and filling it out and mailing it to the HOA address. If your project involves landscaping or construction, please include a drawing or diagram of the planned work, showing dimensions and distances and finishes of all materials you intend to use and include paint swatches. If you are working with a contractor, please include a copy of the signed contract for the intended work, the contractor's contact information, and the contractor's schematic drawing(s) pertaining to the planned work. Please also include start and estimated completion dates and a scope of the project. Exclusion of any of the required information will delay the processing of your request, until all materials are received for review. 2.2 Timing The Architectural Control Committee will review your request and either ask for further information or approve your request as quickly as possible. 30 days are allotted for a determination; please refer to our CC&Rs, Article VI, Section 1. To determine if your project will need a city permit, please check with the City of Lacey's Code Compliance Officer, before beginning any work. A Compliance Officer for the city of Lacey can be reached Monday through Friday. The phone number will be available on the City of Lacey s website. Approval from the City DOES NOT MEAN APPROVAL FROM THE ASSOCIATION. Any work that will produce significant changes in the appearance of your property requires prior approval of the Association's Architecture Committee. 2.3 Violations Failure of a homeowner to obtain written approval for any project covered by this chapter from the Architectural Control Committee prior to said project is an infraction of these rules and may result in the homeowner having to restore said project to the original condition. Additionally, fines may be assessed. Rules & Regulations Adopted Jan 2018 Page 9 of 21

10 3.0 Aesthetic Rules and Guidelines Owners are obligated to provide exterior maintenance to their property. No untidy or unsightly condition shall be maintained on any property. Untidy conditions include, but are not limited to, publicly visible storage of wood, disabled vehicles of any kind whatsoever, the use of tarps over any items in public view, and landscaping that is not properly maintained. Curbside trees belong to the homeowner. Any leaves, branches, or other foliage that fall from those trees should be promptly and properly removed by the owner, including foliage that falls on the lawns, driveways, sidewalks, parking strips, streets, curbsides, and street drains. The City of Lacey s RCWs state that is illegal to dump leaves and debris from private property into the streets. Such action will prompt an immediate Warning Letter from the Avonlea HOA-ACC. The owner will have 7 days to properly dispose of the leaves and debris into the yard waste recycle bin. If on the 8 th day the property is still in noncompliance the Avonlea HOA-ACC will fine the property owner $50. Furthermore, an additional $10 per day will be assessed for each day the leaves/debris remains in the street. If this dumping occurs after the City of Lacey has come through for its once a spring or fall clean up the fine structure doubles. (More information about curbside trees is available in the Parking Strip Maintenance section under the City of Lacey tab on the Avonlea website: AvonleaHomeownersAssociation.com). In the spring the Association conducts a general aesthetics review of all lots and Common Areas. It is the policy of the Association that no Board member or aesthetics volunteer who participates in these reviews, shall be permitted to review his/her own lot or adjacent lot. 3.1 General Appearance Visible front and side yards, visible back yards, visible planting beds and all visible pathways are to be maintained and free of debris, weeds, fallen leaves and trash. Sidewalks, parking strips and curbside streets and drains should be maintained and free of debris, weeds, fallen leaves and trash. House siding, trim and gutters should be clear of dirt, weeds, fallen leaves and debris, and free of chipping, or fading paint. Tools, lawnmowers, wheelbarrows etc. should be stored out of sight. Tree stumps should be cut to ground level. Firewood should be neatly stacked and out of sight. 3.2 Yard Maintenance Lawns shall be maintained and mowed and edged regularly, all clippings properly discarded and noxious weeds/moss removed. Trees and shrubs should be pruned, dead limbs removed, planting areas should be weeded and hardscapes should be free of weeds, grass clipping, leaves and debris. Woodpiles, Garbage cans and recycle bins should be stored out of sight, behind the fence, or if no fence is present, then store them somewhere behind the front edge of the house, with consideration given to neighbor living next door to those visible cans. Cans may be visible on the street for the 24 hour period before and after garbage pick-up day. Leaf piles and other debris should be removed quickly. Moss, weeds, grass clippings, leaves, limbs and debris should be removed from driveways, ramps, Rules & Regulations Adopted Jan 2018 Page 10 of 21

11 walkways, lawn and planting areas. Tree limbs, shrubs, bushes must be cut back so as not to obstruct the sidewalk or city signs. The lawn should be kept uniform, fertilized, mowed and edged, with weeds and moss controlled. Dead spots should be reseeded. Flower gardens and beds should also be free of weeds, fallen leaves, other debris and overgrowth. Shrubs should be trimmed and undergrowth controlled. 3.3 Paint and Trim Mold, moss and dirt should be removed. Houses with faded, flaking and peeling paint or wood rot should be remediated. 3.4 Driveways Driveways should be free of weeds, moss or grass, leaves or debris. Damaged, crumbled or displaced driveways may require repair or replacement. 3.5 Hedges Hedges, trees (including tree limbs), and shrubs should not obstruct the sidewalk. Low hanging limbs should be removed and those that encroach onto the sidewalk should be cut back, so that the space above the sidewalk, to a height of eight feet (8 ) is clear and open. This is a City of Lacey regulation. Shrubs and bushes that form part of a hedge must be no higher than 6 feet tall. 3.6 Roofs and Gutters Roofs should be free of moss, leaves, needles, limbs, debris etc. and be kept in good repair. Gutters with faded, flaking and peeling paint should be remediated. Gutters should be properly attached, clean on the exterior and clear of vegetation and debris on the inside. 3.7 Sidewalks Sidewalks and pathways should be free of weeds, leaves and grass growing in the cracks and grass clippings. Accumulated needles and leaves should also be removed. 3.8 Dwelling Exteriors Paint and/or stain on each structure (house, fence, deck, mailbox, sheds, etc.) must be uniform in color, and without fading, cracking, or peeling. The structures should be cleaned Rules & Regulations Adopted Jan 2018 Page 11 of 21

12 of dirt and wood rot should be remediated. All exterior paint must have ACC approval prior to painting. In addition, paint finishes to be used on the body of the home should be of a flat or satin content. At no time can high-gloss paint be used on the body, trim (including shutters) or door(s) of a home. 3.9 Holiday Decorations Christmas lights and other holiday displays shall be removed and stored away from view within thirty (30) days following the holiday occurrence Tarps Tarps used to cover debris, woodpiles, vehicles, roofs, fences etc., are strictly prohibited. The use of tarps in general is prohibited if visible from street or neighboring properties Interior Window Coverings Interior window coverings, including garage door windows, visible from the street and neighboring properties, shall not consist of blankets, sheets, shower curtains, tarps, garbage bags, or any other material not manufactured or intentionally produced for use as a window covering. All window coverings shall be a neutral color and in good condition without significant defects. Blinds shall not have missing, bent or broken slats. Draperies and curtains shall not contain visible stains or tears Exterior area coverings The use of shower curtains, blankets, sheets, tarps, garbage bags or other materials not manufactured or intentionally produced for use as a porch, patio, deck or other outdoor area covering shall be prohibited on homeowner property. 4.0 Use Rules 4.1 Animals Only dogs, cats, caged birds, fish and amphibians that live in a tank enclosure, and other small household pets, will be permitted. Dogs are not allowed to run at large or create a disturbance to the neighborhood. Leashed animals are allowed in Common areas while accompanied by owner. Owners are responsible to Poop and Scoop the waste of their pets and to curb excessive barking at any time of the day. 4.2 Noise Noise between the hours of (10) ten p.m. and (7) seven a.m., or at other times that unreasonably disturbs or interferes with the peace, comfort and repose of homeowners is Rules & Regulations Adopted Jan 2018 Page 12 of 21

13 prohibited. This includes but is not limited to deliberate, frequent, repetitive or continuous sounding of any noise attached to a motor vehicle, except as a warning of danger, or the deliberate, frequent, repetitive or continuous sounds and/or noises, such as those emitted from audio sound systems, band sessions, social gatherings or barking dogs. 4.3 Fire Pits The only outdoor fire allowed in the City of Lacey is a propane or charcoal BBQ. 4.4 Fireworks All personal fireworks are prohibited in the City of Lacey. Fireworks present a serious danger to the neighborhood. 4.5 Rentals The Board has discussed the special issues posed by tenants/non-owners residing in the community, regarding their knowledge of, and compliance with, the Declaration of Covenants, Conditions and Restrictions (the CC&R s ), and the provisions of other governing documents including Rules & Regulations. Experience and investigation has led to the conclusion that many owners, and realtors as property managers, are not providing copies of the Association s governing documents to prospective and actual tenants, or even informing them of the existence of these documents. This causes confusion and inadvertent non-compliance by tenants, and problems for the Association that could be easily avoided. Furthermore, some owners do not inform the Association they are renting out their house(s), or do not provide the Association information about their tenants. As a result, the Association experiences difficulty in communicating with the owner and tenant about Association questions or issues. In the interest of ensuring the Association has adequate information with which to communicate with owners and their tenants about Association issues, and to enhance the Association s ability to communicate regarding occupants /tenants compliance with the provisions of governing documents, the following rules are adopted regarding owners who rent out their homes, and their tenants. All owners who rent or who are considering renting their home are subject to these Rules. Each Owner must provide governing documents to their tenants at or before the time a lease agreement is signed, owner or owner s agent will provide copies of the Covenants and the Rules & Regulations (hereafter collectively called the governing documents ), and any amendments to them, to the tenant, urging them to read them. [Copies of the governing documents may be obtained from the Association s website or by ing the HOA at Board@AvonleaHomeownersAssociation.com or mailing the Association at: Avonlea HOA, PO BOX 3088, Lacey, WA A fee of $10.00 will be charged for copy sets requested from the Association, payable at the time of request. An owner intending to rent out their home will specifically include written provisions in the lease to be signed by tenant, binding on tenant, their family members and guests (hereafter collectively tenant ) essentially covering or providing for the following: tenant acknowledges being aware of the governing documents Rules & Regulations Adopted Jan 2018 Page 13 of 21

14 tenant understands and acknowledges that tenant is fully subject to the governing documents and must comply with them in all respects if tenant fails to comply with any provisions of the governing documents it will be considered a material breach or default of the lease agreement, and be reason for eviction. In the course of leasing a home to a tenant, owner or owner s agent will inform tenant that these provisions are contained in the lease agreement Each Owner must provide tenant information to the Association. After a lease agreement is signed, the owner or owner s property manager/agent will provide in writing to the Association a completed Rental form within ten (10) days after a lease agreement is signed. Rental Form contains: owner s correct residence address and home phone number copy of the pertinent part of the lease agreement showing compliance with these rules; ( Agreement Between Homeowner/Lessor and Avonlea HOA form, Exhibit C) the name of every tenant signing the lease agreement the phone number of each tenant if consented to by tenant, the tenant s address. 4.6 Vehicles Recreational Vehicles In no case shall a recreational vehicle (RV), boat, trailer of any kind, truck, or automobile be parked in the public right-of-way for a period of time exceeding forty-eight (48) hours. City of Lacey Code allows RV s on the street for only 24hrs. Vehicles in General All recreational vehicles, vehicles with expired tabs and all non-running vehicles, including but not limited to cars, trucks, golf carts, motorcycles, go-carts, trailers of all kinds, etc., shall be stored in garages or out of sight. Vehicles must not be able to be seen from street level or from ground level of surrounding neighbors. At no time shall vehicles be kept, parked or stored on lawns, walkways, per Lacey ordinance and these Avonlea Rules and Regulations. RV s and utility vehicles may be parked in owners driveways for up to 48 hours, for the purpose of loading and unloading. At no time should extension cords or ropes or cords of any type or length lay across public walkways or street. At no time should vehicles obstruct or block a public walkway or street. Vehicles parked on Avonlea properties must have current tabs. Vehicles visible from the street that are considered to be collectible or classic must provide certification paperwork to the Association and are subject to current licensing or tab requirements as stated above. Vehicles in Disrepair Rules & Regulations Adopted Jan 2018 Page 14 of 21

15 Regardless of whether a vehicle might be considered as a classic or collectible model, and regardless of whether operable or licensed or tabbed, vehicles in a state of significant disrepair or deterioration may not be kept, parked or stored on a lot where visible from the street or to neighboring owners. Vehicles in a state of disrepair or deterioration are those that a reasonable person would find unsightly and detracting from the values and marketability of homes in the community due to their condition, which includes without limitation vehicles with significant areas of rust on the fenders, body or wheels and/or significant body or fender(s) damage that goes without repair for an unreasonable period of time. If such a vehicle is going to be kept on a lot this vehicle must not be able to be seen from street level or from ground level of surrounding neighbors. Other Vehicles Homeowner s vehicles in operating condition shall not be parked or stored on non-paved areas within Avonlea s subdivision. Vehicles in running condition must be currently licensed and tabbed. All tabs must be visible from the street. Under no circumstances may tarps be used to cover vehicles if visible from the street or neighboring property. 5.0 Violations Pursuant to R.C.W , the following written rules and restrictions are adopted in order to further foster timely compliance by homeowners for all matters addressed in the governing documents including all Rules and Regulations of the Association. These rules are intended to supplement the CC&R s and/or Bylaw provisions which address the topics set forth below, not supplant or amend them, and in the event of an inconsistency or conflict between these Rules & Regulations and the CC&R s or Bylaws of the Association, the CC&R s and/or Bylaw provisions shall supersede and apply. 5.1 Violations For the purpose of enforcement fines: residents with violations of CCR s will be sent a Notice of Violation. The initial fines for violation are incentives for homeowners to mitigate the violation in a timely manner; however, fines may be increased based upon the effect of the violation on property values and/or interference with the right of quiet enjoyment, or potential health and safety violation of the property that may impact other Association members. Potential Violations may include, but are not limited to, the following. (Please look to the CCR s and Rules and Regulation Documents on the HOA s website for complete detail.) 5.2 Initial Investigation Rules & Regulations Adopted Jan 2018 Page 15 of 21

16 Once a possible violation has been reported or otherwise becomes known to the Association, it will be investigated and a determination made as to whether a violation has actually occurred. If a violation is determined, written notice of the violation will be sent or delivered to the offending homeowner giving him/her a reasonable period of time (usually 30 days) within which to correct the violation and comply. If the violation involves an emergency timeline or circumstances, the notice may then require the homeowner to cease action immediately or to promptly take certain actions in order to comply. 5.3 Legal Action If the owner does not then comply within the timeline and correct the violation, the Association may, after Request for Hearing time line has lapsed, assess fines against him/her as described in Section 6 below. At the Board s discretion, legal action may be taken against the violating homeowner at any time after the deadline correction period. Additional fines will continue to be assessed while the legal action is in process, if the homeowner continues to violate the requirements of the CC&R s or these Rules and Regulations. All attorneys fees and costs shall be awarded to the prevailing party and shall be recoverable from the losing party in any action, lawsuit or other proceeding involving the enforcement of the CC&R s, or these Rules and Regulations. 5.4 Additional Remedies Notwithstanding anything to the contrary in these Rules and Regulations, the Association shall in all cases of a violation regarding exterior maintenance have the right to exercise the Exterior Maintenance provisions in Article VI of the CC&R s. Additional fines, HOA and legal expenses may continue to accrue and be assessed against the violating owner while the violation is being corrected by the Association. 6.0 Fines 6.1 Schedule of Fines Fines may be assessed by the Association against any homeowner starting immediately after the notice period expires without the complete and total correction of the violation by the owner within that period, subject to the Association providing notice to the violating owner he has a right to request a hearing, before the fines commence (pursuant to R.C.W (11)). The Association will issue fines for failure to comply with this policy per the schedule set forth in Exhibit B. Fines do not include additional fees and/or interest which may apply. Fines not paid within 30 days of being levied will accrue interest (10% per month) as specified by Article V Section 8 of CCR s. Fines not paid within 90 days may result in a Lien and/or legal action against the owner. Each violation will be treated separately. The Association Board of Directors shall have the authority to modify monetary fines or liens, and/or alter the process, with the exception of the appeal process, through a formal vote of the Board. Rules & Regulations Adopted Jan 2018 Page 16 of 21

17 6.2 Collection of Fines The Association will bill the offending homeowner the applicable fines at such time and for such periods as the Association considers reasonable. If, after all the fines accrue, they remain unpaid and outstanding for more than 30 days from the date of the last such billing, interest shall commence and apply to the unpaid fines at a rate of 10% per month on the unpaid balance. All fines imposed by the Association ACC upon an owner which remain unpaid for an additional 30 days shall constitute a lien on the Lot and all its improvements, and may be handled and foreclosed upon in the same fashion as if it were a lien for unpaid assessments under the CCR s and the laws of the State of Washington. The Association may file a formal lien with the county in order to further protect its interests regarding the unpaid fine(s) and/or turn it over to our attorney for collection. The amount of the fine shall include interest, and all costs and office expenses, including attorney s fees, incurred by the Association in the collection of such unpaid fines. 6.3 Appeal of Fines The Revised Code of Washington (RCW) grants the homeowner the right to appeal any dispute with the Association. Homeowner must put a request to appeal in writing, sent to the address of the Association. Thereafter, the Association Board of Directors will notify the homeowner within 14 days of the date of the appeal hearing. 6.4 Appeal Process The homeowner must complete a written Request of Appeal which shall be mailed or delivered to the Association, and received with the time period set forth above. The appeal request must contain the following: Homeowner s name and address Homeowner s reason and basis for an appeal A copy of all supporting documentation The name of any attending witnesses or other collaborating guests (Purpose of such a hearing is to permit the owner to provide information to the Board as to why he believes there is no violation or are extenuating circumstances calling for a different level of decision.) The appealing homeowner shall be sent confirmation receipt of a Request for Appeal from the Association. The Board President will assemble at least two current members of the Association s Board of Trustees to act as a Review Board (the Review Board ) following receipt of a written Request for Appeal complying with the requirements set forth above. Upon formation of the Review Board (normally within 14 business days), the Review Board shall mail or deliver notice to the appellant owner of a hearing date, which will provide the date, time, and location of the hearing, to be determined by the Review Board. The Review Board will permit the appealing homeowner up to thirty minutes to explain the circumstances of the appeal and provide grounds as to why the violation and/or fine should be waived, reduced or withdrawn. At the conclusion of the presentation, the Review Board will adjourn into closed session to review the circumstances of the Request of Appeal as presented. Within a reasonable time frame (normally within 14 business days) of the hearing for the Request for Appeal, the Review Board will mail or deliver written notice to the homeowner as to the Review Board s decision. If the Review Board finds in favor of the appealing homeowner, it shall advise the homeowner as to whether the violation and/or the fines originally imposed are reduced, modified, or waived. Any Rules & Regulations Adopted Jan 2018 Page 17 of 21

18 adjustment(s) shall reflect on the homeowner s account the following month. If the Review Board determines that the owner s explanation or defense presented at the hearing was inadequate or otherwise failed to justify a reduction, modification, or waiver of the violation and/or fines, the owner will be so notified, in which case the fines imposed will continue to be owing to the Association until paid in full regardless of whether the violation has since been removed or corrected. The homeowner shall sign and date the Request for Appeal. 6.5 Effective Dates Effective January 1, 2016, the Association will issue fines for failure to comply with this policy and the CC&R s and Rules and Regulations per schedule in Exhibit B. The Association may assess fines in excess of the schedule in Exhibit B if, in the opinion of the Board, the violation creates a hazard to the safety, welfare or property of the other residents. 7. CHRONIC OFFENDERS When the acts or omissions of an owner, which violate governing documents requirements or restrictions, including those within this Rule or Policy, repeatedly and continually occur over periods of time despite past notice or letters of the Association informing owner that such actions or omissions are violations, such as owner is deemed a Chronic Offender. 7.1 Standards of conduct/violations The following standards of conduct/violations will assist the board in determining whether an owner should be classified as a Chronic Offender, but are not the sole factors that the Board may or are required to consider when making a determination whether an owner is a Chronic Offender. Due to the increased problems for the Association and the community caused by Chronic Offenders and because such owners continue to violate the same or similar governing document issues more than 2 times in a continuous one-year period, it is reasonable to impose enhanced fines or penalties upon them. If the Board or any Committee designated by it, to monitor and address this topic determines that an owner is a Chronic Offender regarding one or more issues or violations of the governing documents, the board will issue a notice to owner at his or her last known address that owner is now considered a Chronic Offender and to cease and desist the violation(s) then at issue. The Notice will include reference to the Owner s right to request a hearing on the determination he is a Chronic Offender and the deadline by which he must request such a hearing in writing or his right will be deemed waived. After such notice is sent to Owner, if he/she does not stop or correct the violation(s) involved, enhanced fines may be imposed pursuant to those listed in the schedule below. Rules & Regulations Adopted Jan 2018 Page 18 of 21

19 7.2 FINES and REMEDIES Chronic Offenders- at such time as an owner is determined to be a Chronic Offender as set forth above, the following enhanced fines are applicable to and may be imposed against such owner. The owner will be subject to double the fine structure set in the Enforcement Policy. If the homeowner has not corrected the problem within the specified time, the association has the right, after giving the owner 24 hour advance notice, to hire a professional to go to the property and bring the property into compliance at the homeowner s expense. 8. Board Meeting Conduct 8.1 Homeowners Addressing Board Homeowners may address the Board at regularly scheduled Board meetings; due to time constraints comments must be limited to 3 minutes. Homeowners cannot donate their 3 minutes to other members. 8.2 Comment Period The comment period will be limited to 30 minutes or less. If the comment period ends and other Homeowners have questions, or if a specific question of the Board requires a lengthy or detailed answer, the question must be submitted to the Board in writing. The Board will then respond back to the owner in writing. 9. Assessment Collections The maintenance of common areas, the enforcement of the governing documents, and the conducting of operations by the Association requires a steady, dependable cash flow from assessments. Coupled with that need is the importance of ensuring that the collection of assessments, regarding all owners, is conducted in a timely, consistent and fair manner. These rules are intended to supplement the CCR s, not supplant or amend them. In the event of inconsistency or conflict between these Rules and the CCR s of The Association, the CC&R s provisions shall supersede and apply. In the interests of achieving such goals, these procedures and policy are adopted. 9.1 Assessments Assessments are charged yearly. Notices regarding assessments being due are sent to each owner. Annual statements are mailed during the first week of December. Payment is required by January 1 st and considered delinquent if not received before January 31st. Assessments that are not received by February 1 st will have a 10% annual late fee added. Rules & Regulations Adopted Jan 2018 Page 19 of 21

20 The late fee will be calculated based upon the present statement balance (Article V, Section 8 of the CC&R s). A first Delinquent Statement will be mailed to all homeowners with outstanding balances after the 10% late fee has been added. The owners of delinquent Assessments that are not received by March 1 st will be sent a Second Delinquent statement indicating that liens will be applied on April 1 st. Liens will be applied for assessments not received by April 1 st. The Homeowner will be sent a statement indicating that liens have been applied. In the event of delinquency, the following procedures and policy shall apply and be used by the Association in its efforts to secure payment from the delinquent member/owner. 9.2 Collection Procedure FIRST DELINQUENT STATEMENT After late fees have been added on approximately February 1 st The Association shall mail to owner a statement, as a courteous reminder which informs the member/owner is delinquent in paying assessment(s). States the dollar amount owing at date of statement, including the 10% late fee. Provides Association contact information for homeowner questions Asks for prompt attention to payment of the delinquent assessment. If no response has been made by owner, then a Second Letter shall be sent to the owner. SECOND DELINQUENT STATEMENT On approximately March 1 st the Association shall mail to owner a statement, as a courteous reminder, which: Points out the member/owner is delinquent in paying assessment(s). States the dollar amount owing at date of statement, including the 10% late fee. Provides Association contact information for homeowner questions. Asks for prompt attention to payment of the delinquent assessment. Informs owner that a lien will be applied and/or legal collection action will be initiated at the discretion of the board on approximately April 1 st. The Association may have to record a formal Lien against owner s property in order to protect its assessment collection rights without further notice to owner and that the attorneys fees and recording costs will be added to the assessment amounts owing, and that member/owner will also have to prepay a Release of Lien fee and recording costs in order have the Lien removed from his/her property. THIRD DELINQUENT STATEMENT After the lien has been record with the Thurston County Auditor, the Association shall mail to member/owner a statement, as a courteous reminder, which: reminds of the two (2) prior letters. Provides a copy of the Lien showing recording numbers States the total amount now owing to the Association, including lien preparation fees, recording costs, and attorneys fees for preparation of the lien. Warns that if payment in full is not received there will be no further communication from the Association and that the HOA Rules & Regulations Adopted Jan 2018 Page 20 of 21

21 may inform its attorney to proceed with collection action. Reminds owner that if the Association s attorney becomes involved in further collection efforts the owner will be liable for all attorneys fees, costs, etc. incurred by the Association including the assessments owing and the interest accruing. Rules & Regulations Adopted Jan 2018 Page 21 of 21

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