SOLERA AT JOHNSON RANCH COMMUNITY ASSOCIATION RULES AND REGULATIONS ARTICLE 1

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1 SOLERA AT JOHNSON RANCH COMMUNITY ASSOCIATION RULES AND REGULATIONS ARTICLE Governing Documents The Solera at Johnson Ranch Community Association (the Association ) was established on August 2, 2004, as an Arizona nonprofit corporation for the purpose of providing management, maintenance, and care of the Common Area (including the Community Center) and any other property placed under its jurisdiction. The duties and powers of the Association are defined in the Governing Documents, which are as follows: (i) Declaration of Covenants, Conditions and Restrictions for Solera at Johnson Ranch, as may be amended from time to time (the Declaration ); (ii) Articles of Incorporation of Solera at Johnson Ranch Community Association; (iii) Solera at Johnson Ranch Community Association Bylaws; (iv) Association Rules (the Rules ); and (v) Design Guidelines Each Owner in Solera at Johnson Ranch is provided with a copy of all Governing Documents. By taking title to a Lot within Solera at Johnson Ranch, an Owner agrees to comply with the provisions of the Governing Documents as they pertain to the Owners and Members. Throughout these Rules capitalized words will have the same meanings as described in Article 1 of the Declaration. These Rules are supplemental to the Governing Documents. 1.2 Management The Board of Directors of the Association ( Board ) is responsible for the administration of the Association and is authorized to hire personnel necessary for the daily operation of the Association and its Common Area. Directors are elected according to Article 3 of the Solera at Johnson Ranch Community Association Amended and Restated Bylaws. The Board has selected a management team to oversee the daily operation of the Association, and the team will report to the Association Manager ( Manager ). The Manager will work closely with the Board to assure that the Association is being operated in a manner that will enhance and preserve the Community. 1.3 Committees The Board may appoint members of the Association who are in good standing in the community to serve on Committees to advise the Board on professional, technical, and organizational matters. Currently active committees and their membership are published on the website and are available from Management. Members will be notified when any committees are appointed. Members are encouraged to advise the Manager of their interest in serving on a Committee. 1.4 Communication Communications between the Members, the Board, and the management team is an important component in the success of any neighborhood association. A newsletter and/or website may be prepared and made available at the Community Center. The newsletter and/or website may contain an activity calendar listing special events, craft, sport, and recreation activities, and local happenings. Association policies, procedures, membership programs, and other items of interest will be included from time to time. Approved December 17,

2 One or more bulletin board(s) will be located in the Community Center. The board(s) will be used to promote Association events and activities. Registration sheets for Association classes may also be posted on the board(s). Postings by persons, groups, or organizations other than the Association must be submitted to the Community Manager for approval. Solicitation in the Solera Community and electioneering on Association property will not be allowed. Courtesy telephones are available in the Community Center for local and emergency calls. 1.5 Finance (Amended July 15, 2010) The funds necessary to operate the Association and its facilities are provided by the Assessments levied by the Association against each Lot within Solera at Johnson Ranch. The Board, subject to the provisions of the Declaration, has the authority to levy (i) Annual Assessments to provide for the operation and management of the Association, (ii) Special Assessments for the cost of any construction, reconstruction, repair, or replacement of facilities upon the Common Area, and (iii) Parcel Assessments for special services provided to less than all Owners of Lots. The financial stability of the Association is dependent upon the timely payment of all Assessments. Billing statements for Assessments will be mailed to each Owner at least two weeks prior to the quarterly due date. The amount of the Annual Assessment will be determined each year by the Board. Owners will be notified of that year s assessment amount at least thirty days prior to the beginning of the new year. The following rules shall apply to the payment of Assessments: 1st day of each January, April, July, and October: Assessment is due and payable to: Solera at Johnson Ranch Community Association c/o Associated Asset Management 7740 N. 16 th Street Suite 300 Phoenix, AZ th day of month in which assessment is due: If payment is not received at the above address by this date, a $15.00 charge for late payment is automatically assessed (charges for late payment will be applied on every account showing one full assessment due with no notice to Owner), and interest will be charged from the due date at the rate of 18% per annum. 15th day of following month: If payment has not been received within 45 days after its due date, a letter will be sent to the Owner demanding payment in full of the assessment (and the late charge, if applicable), and any fees for sending the demand letter will be automatically assessed to the Owner s delinquent account. 60 days after assessment was originally due: At the Board s discretion, if payment has not been received within 60 days after its due date, a lien fee will be added to the Owner s delinquent account and a lien will be recorded on the Owner s property. At this point, payment must include all late charges and fees and be paid by cashiers check, certified check, or money order. The lien will remain on the property until the account is current. 75 days after assessment was originally due: Approved December 17,

3 At the Board s discretion, the matter is referred to an attorney or collection agency for collection. Remedies may include filing a lawsuit against the delinquent Owner. Any fees incurred in the collection of this matter will be charged to the delinquent Owner. Returned checks: There will be a $25 charge for checks not paid by an Owner s bank. Fiscal Year The fiscal year for the Association is the calendar year. ARTICLE 2 RELATIONSHIP OF GOLF COURSE TO THE ASSOCIATION AND OWNERS The Johnson Ranch Golf Club, L.L.C. operates the golf course, restaurant, and pro shop. Ownership of property in Solera at Johnson Ranch does not entitle the Association or any Owner to any ownership interest in the golf course or its related facilities. The golf course is open to the public. ARTICLE 3 ASSOCIATION PROPERTY AND FACILITIES GENERAL RULES 3.1 General Rules Applicable to Community Access Cards Community Access Cards Community access cards permit access to the Community through the gated entrances and also to the Community Center. Community access cards will be distributed to Residents only upon timely payment of Assessments for the Lot occupied by such Residents. If Assessments are not paid within fifteen (15) days after due, or if an Owner or Resident has violated any other provisions of the Governing Documents and has failed to cure such violation within fifteen (15) days after notification to do so, then the Association may suspend the right of a Resident to use the Association facilities. The access cards give evidence to Association employees that a person is entitled to use the facilities; each person who has an access card should be prepared to show the card whenever asked by Association employees. The facilities are not open to the general public, and only those persons holding access cards (and their guests) are allowed to use the facilities. If an access card is lost or stolen, it should be reported to the Manager immediately. Replacement cards will be issued for a fee to cover the cost of replacing the card Owner/Resident Access Cards A maximum of two (2) access cards shall be issued to the Residents of a Lot within Solera at Johnson Ranch. If an Owner does not reside in or occupy a Residential Unit, the Owner will be entitled to obtain an access card that permits entry gate access only; however, the Owner will not be entitled to have access to or use of the recreational facilities Associate Access Cards If more than two Residents occupy a Residential Unit, the additional Residents must purchase an Associate Access Card at a cost of one-half the current Annual Assessment to be able to use the recreational facilities. If an additional Resident can show proof that he/she does not intend to and will not use the recreational facilities, then the Board may waive the fee charged for an associate access card, in which event the associate access card shall be programmed only for access through the gated entry. An Associate Access Approved December 17,

4 Card for which one-half the current Annual Assessment has been paid will entitle a Resident to full use of the Association facilities. Associate Access Cards must be purchased on an annual basis only, and no refunds will be given to Residents that elect to vacate the Residential Unit during the year for which the fee was paid Renter Access Cards If a Lot is being leased, the Residents of that Lot shall be entitled to use all Association facilities provided the provisions set forth in Subsection to these Rules are satisfied. The Owner of the Lot shall surrender any Community access cards in his possession or have the access cards re-programmed to permit entry gate access only prior to issuance of renter access cards. In accordance with Section of the Declaration, an Owner has no right to use the recreational facilities if such Owner s Lot is leased. A maximum of two renter access cards shall be issued to renter Residents of a Residential Unit within Solera at Johnson Ranch. If additional renters residing within the same Residential Unit wish to use the Association facilities, the Owner of the Lot may purchase an associate renter access card at a cost of one-half the current Annual Assessment. An associate renter access card will entitle a renter to full use of the Association facilities. Associate renter access cards may be purchased on an annual basis only, and no refunds will be given to Residents that elect to vacate the Residential Unit during the year for which the fee was paid. 3.2 General Rules Applicable to Association Common Areas and Facilities Code of Conduct (i) All persons must conduct themselves in a civil and courteous manner at all times and must not jeopardize or interfere with the rights and privileges of others. (ii) Loud, profane, indecent, or abusive language is prohibited. (iii) Harassment or physical abuse of any person by another is prohibited. (iv) No person s actions shall compromise the safety of another. All persons using Association facilities shall obey all safety rules and shall cease unsafe activity when directed to do so by Association employees Association Employees All persons shall respect the duties and authority of Association employees. Any directives from Association employees shall be respected. If an owner disputes an Association employee s actions, then that person shall be entitled to a hearing before the Board, or any committee or individual appointed by the Board for such purpose, to determine the validity or acceptability of any disputed action. Until the Board or its appointee decides otherwise, the action shall be deemed valid and acceptable. Any inattention to duty or lack of courtesy by an Association employee may be reported to the Manager. Association employees who are not Residents shall be permitted to use the Association facilities during normal hours of operation Responsibility Residents are responsible for their guests when participating in community activities and social events and when using Association Common Areas and facilities. Residents must accompany their guests at all times when participating in community activities and social events. Guests under the age of nineteen (19) must be accompanied by a Resident or adult guest at all times when using Association Common Areas and facilities No Smoking Policy Smoking is prohibited in any indoor area of Association facilities and in the outdoor pool areas and in the bocce court area. Where outdoor smoking receptacles are provided, smoking is allowed. Approved December 17,

5 3.2.5 Notices and Advertisements No notices, advertisements, or posters of any kind shall be placed or distributed on Association Common Area without the prior written consent of the Community Manager Alcoholic Beverages No alcoholic beverages may be brought to and/or consumed in or on any Association Common Area except at an Association sponsored or approved event. Minors (persons under the age of 21) may not consume or be served alcohol in or on any Association Common Area. Intoxicated persons will not be allowed in or on any Association Area. At no time will the Association sell or serve alcoholic beverages Pets Pets (except for assistive animals) shall not be allowed inside the Community Center or in any of the surrounding Association facilities Violations Any person who refuses to abide by Association Rules may be asked to leave an Association facility or Common Area by Association employees Lost and Found Lost and found items will be retained at the Community Center for a reasonable period of time and then discarded if not claimed. 3.3 General Rules Applicable to the Community Center Rules Applicable to Community Center Activities, social events, and facilities for Residents and their guests are available at the Community Center. Procedures governing guest attendance at community activities and social events are posted at the Community Center and on the community website. Instructions may be posted at the Community Center to assist Residents and their guests with the operation of equipment at the facility. The following rules apply to activities, social events, and facilities at the Community Center Days/Hours of Operation The days and hours of operation may vary from season to season. Hours for activities will be posted in the Community Center Guest Registration Non-Resident Guest Use of Facilities Residents guests may use Community Center facilities when unaccompanied by Residents provided the guests hold guest passes. Residents must register their guests and obtain guest passes at the Community Center during business hours. A guest pass will list the name of the resident, the name of the guest, and the date(s) during which the guest will be visiting the community. Guests who do not carry guest passes must be accompanied by the Resident when using the facilities. Non-Resident Guest Participation in Community Activities and Social Events For activities and social events that require enrollment, Residents must register their guests at the Community Center during business hours. For activities and social events that do not require enrollment, Residents must register their guests with the sponsor of the activity or social event. At the time of registration, a guest pass will be issued listing the name of the resident, the name of the guest, and the date(s) during which the guest will be visiting the community. Residents must accompany their guests at all times during community activities and social events Private Use of Facilities The Multi-Purpose Room, Kitchen, Patio, Barbecue Grills, and Card Room may be reserved by Owners for private events when those facilities are not reserved for community meetings, activities, or social events. To reserve facilities, an Owner must complete the Facilities Rental Agreement and submit the agreement to the Association Office for Approved December 17,

6 approval. Only Owners are allowed to reserve Community Center facilities. The Host Homeowner must be present throughout the entire event Library The library is a read/share library and is based on an honor system. Residents may donate and borrow books and DVD s. There are no requirements to donate, but each person is required to return to the library within a reasonable period of time any borrowed item. The success of the library is dependent upon participation by the Residents. Computers are also available in the library on a first-come, first-served basis. The use of cell phones is not permitted in the library. A permanent copy of all Governing Documents is available for review in the library. The Association shall not be responsible for items donated to the library Community Center Showcases Display cases at the Community Center shall be used to display articles approved by the Community Manager Billiard Room Two (2) billiard tables are available for use. Tables may be used on a firstcome, first-served basis. Equipment is available in the room for use by the Residents, or Residents may bring their own equipment. The following rules shall apply to the billiard room. (i) Players are limited to three (3) games or one (1) hour (whichever comes first), if others are waiting to play. (ii) Food and beverages are not allowed in the billiard room except at an Association sponsored event when tables are covered. (iii) Persons shall not sit on billiard tables. (iv) A person must have one foot on the floor at all times when taking shots. (v) Billiard equipment may not be removed from the billiard room. (vi) Equipment must be returned to its proper place after use. (vii) Massé shots (shooting straight down on the ball) are prohibited. (viii) No person under the age of 16 may use the billiard tables. Persons between the ages of 16 and 19 may use the billiard tables if supervised by an adult Fitness Center The fitness center contains exercise equipment and television monitors. It is not supervised by any Association employees having exercise knowledge; therefore all persons using the equipment are advised to obtain independent advice regarding the status of their health and specific recommendations for exercise before using the equipment. Neither the Association nor the Master Association shall be responsible for any injury as a result of using the Fitness Center. The following rules shall apply to the Fitness Center: (i) A signed Waiver of Liability form is required for use of Fitness Center. Forms are available at the Association office. (ii) No person under the age of nineteen (19) shall be allowed in the fitness center. (iii) The use of any one piece of equipment is limited to thirty (30) minutes per person if others are waiting to use the equipment. Approved December 17,

7 (iv) Appropriate exercise clothing and athletic shoes are required. Upper-body garments must be worn at all times. Sandals and other loose fitting shoes which could be caught in equipment are prohibited Dressing, Shower and Locker Rooms The following rules shall apply: (i) Persons may use these facilities for personal showers or shaving only in conjunction with the use of the fitness center. (ii) No clothing or personal effects are to be left in these areas unless stored in lockers or on clothing racks. Overnight use of the lockers and clothing racks is not permitted. (iii) Lockers may be used without charge; locks must be cleared after each visit Swimming Pool and Spa The following rules shall apply to all pool facilities: (i) THERE ARE NO LIFEGUARDS ON DUTY. SWIMMERS MAY SWIM AT THEIR OWN RISK. IT IS RECOMMENDED THAT NO PERSON SHOULD SWIM ALONE. No person under the age of nineteen (19) shall be permitted to use the pool facilities. Pool facilities are available for person(s) under nineteen (19) years of age at the Johnson Ranch Master Community. (ii) Running, diving, jumping, and inappropriate behavior leading to personal injury or property damage are prohibited in all pool facilities. (iii) Water toys of any type are prohibited, except for noodles, life jackets for handicapped persons, and swim boards for exercise. Single-person rafts (one per person) are allowed provided there are no more than ten (10) persons in the water. All persons using flotation devices must give way to lap swimmers and planned activities (iv) Association employees may close all water facilities if there is threat of an electrical storm. (v) All swimmers are required to shower before entering the pool or spa. (vi) No suntan oils are ever permitted, but waterproof, greaseless lotions and sun blockers are permitted and encouraged. (vii) Smoking is not allowed within the pool enclosure. (viii) No glass containers of any type are allowed in the pool enclosure. (ix) Only non-alcoholic beverages may be consumed around the pool facilities. Intoxicated persons will not be allowed in or around the pool facilities or any other Association Common Area. (x) Appropriate swimwear is required for swimming in all pool facilities. Street clothing or cut-off jeans shall be prohibited. Nude or partially nude swimming is also prohibited. (xi) Pets, other than assistive animals, are prohibited in and around the pool facilities. Approved December 17,

8 (xii) Management shall have the authority to schedule special pool events for groups upon request. Timing and length of such events shall be at the discretion of management. (xiii) No music, other than the music originating from the recreation center speakers or for scheduled water classes, is allowed in the pool facilities. Televisions or other entertainment devices are prohibited. The following rules shall apply to the spa/hot tub: (xiv) Use of the spa/hot tub shall be limited to Residents and approved guests 19 years of age or older. (xv) Persons with heart conditions or hypertension or who are using medication should consult their physician before using the spa/hot tub. (xvi) Use of the spa/hot tub should be restricted to fifteen (15) minute sessions to avoid drowsiness, and it is recommended that the spa/hot tub not be used if any alcoholic beverages have been consumed by the user. (xvii) Exercising in the spa/hot tub is prohibited. (xviii) THERE ARE NO LIFEGUARDS ON DUTY. SPA USERS MAY USE AT THEIR OWN RISK Bocce Courts The following rules shall apply to the bocce courts: (i) Equipment is stored in the Billiard Room and must be returned immediately after play has ended unless directed by Association employees to transfer the equipment to the next group of players. (ii) Play periods except for Association approved groups shall not exceed one (1) hour unless there are no players waiting for courts. (iii) Golf shoes, other spiked shoes, and bare feet are prohibited on the court. (iv) During play, the concrete walkways should be used to the extent possible. Players should walk on the carpeted area only when necessary. (v) Children under the age of 16 are not allowed on the courts. Children between the ages of 16 and 19 must be accompanied by an adult at all times. (vi) Management shall have the authority to schedule special bocce events for groups upon request. The timing and length of such events shall be at the discretion of Management. (vii) Smoking is not allowed on and around the Bocce Courts. ARTICLE 4 GENERAL RULES GOVERNING THE USE OF GOLF CARTS All streets within the Community of Solera at Johnson Ranch are private. The following regulations apply to golf carts operated within Solera at Johnson Ranch: Approved December 17,

9 (i) Drivers of golf carts must have a valid driver's license for automobiles. (ii) Drivers of golf carts are responsible for any damage or injury caused by negligence or willful misconduct. (iii) Golf carts shall be considered Motor Vehicles as such term is defined in the Declaration and may not be driven or parked on any property within Solera at Johnson Ranch except (i) streets, (ii) parking lots, (iii) concrete driveways and (iv) designated golf cart paths. Golf carts driven or parked in violation of this rule or the Declaration shall be subject to the remedies provided in the Declaration, including the towing of vehicles. (iv) Golf carts driven on the streets shall be operated in the same manner as automobiles. Drivers must observe all traffic regulations and use proper hand signals. (v) Golf carts may not block doorways, access areas, or sidewalks, cause congestion, or violate fire codes (vi) No gas operated golf carts shall be allowed in Solera at Johnson Ranch without the prior written approval of the Board of Directors. ARTICLE 5 GENERAL RULES GOVERNING THE USE OF LOTS AND CERTAIN COMMON AREAS 5.1 Garage & Yard Sales Garage or yard sales that require access to the Community by the general public are prohibited unless sponsored by the Solera at Johnson Ranch Community Association. 5.2 Open Houses (Amended July 15, 2010) Open houses for the purpose of selling or leasing homes may be held by Owners and their real estate agents between the hours of 8:00 a.m. and 6:00 p.m. No more than two (2) open house directional signs may be placed on any Association common area for any one open house without the prior written approval of the Architectural Review Committee. 5.3 Garage Doors Garage doors must remain closed except (i) when an Owner is performing activities in the garage which do not violate the provisions of the Declaration, and (ii) for access to and from the garage. Allowing the garage doors to remain open a maximum of one foot (1 ) from the driveway surface during the summer months for the purpose of ventilation shall not be deemed to be a violation of this rule. 5.4 Maintenance of Lots Responsibility of Owners It is each Owner s responsibility to maintain his/her Lot in accordance with Article 7.4 of the Declaration at all times even though an Owner may be a seasonal Resident or an absentee Owner Remedies Failure by an Owner to maintain a lot may result in the Association taking any action available to it under the Declaration, including without limitation, the right to perform the maintenance at the cost of the Owner, and the Association levying fines as provided for in Article 6 of these Rules. Approved December 17,

10 5.5 Trash Containers and Collection Trash containers may be left at the curb for pickup no earlier than 5:00 p.m. on the day before the scheduled pickup is to occur and may remain at the curb until no later than 9:00 a.m. on the day after the scheduled pickup is to occur. 5.6 Street Parking Overnight street parking for guests for holidays and special occasions will be considered only upon request by an Owner of a variance to Subsection 3.5.2(iii) of the Declaration. The Board or the Architectural Review Committee will consider variances for this purpose at regularly scheduled meetings if an Owner can demonstrate that the requirements for a variance, as set forth in Section 3.34 of the Declaration, are present. ARTICLE 6 POLICY OF CORRECTIVE ACTIONS AND SCHEDULE OF FINES 6.1 Notice and Hearing; Additional Remedies No fines will be assessed without notice and an opportunity to be heard. Article 5 of the Bylaws sets forth the notice and hearing procedures for fines. Subject to the provisions of Article 5 of the Bylaws, any fine for which an Owner has waived the right to be heard, or any fine affirmed by the Board after hearing shall be paid in accordance with Article 5 of the Bylaws. In addition to levying fines as penalties for infractions, the Association also may exercise any other remedy available pursuant to the Declaration or pursuant to Arizona law. 6.2 Violations of Section 3.2 of the Declaration, Architectural Control The Board shall deliver a Notice of Violation (as defined in Article 5 of the Bylaws) and levy a fine of two hundred and fifty dollars ($250) against an Owner for the failure by such Owner, or by a Resident or Lessee of such Owner s Lot, to obtain written approval from the Architectural Review Committee prior to constructing or installing an Improvement that requires approval of the Architectural Review Committee, or for the failure to comply with any other provision of Section 3.1 of the Declaration or any provision of the Design Guidelines. An Owner may submit a request for approval to the Architectural Review Committee after the Board delivers the Notice of Violation and levies the fine, but the request will not be considered until the earlier of (i) payment of the fine by the Owner, or (ii) determination by the Board pursuant to a hearing requested by the Owner in accordance with the provisions of the Bylaws that the fine should not be assessed The failure by an Owner or Resident to remove or satisfactorily correct an Improvement for which the Architectural Review Committee has disapproved may result in the Association taking legal action to correct the violation. In any such legal action, the Association will seek to recover all attorneys fees, costs and expenses resulting from the action pursuant to the provisions of the Declaration and pursuant to Arizona law. In addition, the Board may levy a fine of five hundred dollars ($500) if an Owner fails to comply with instructions from the Board or Architectural Review Committee within fourteen (14) days after a Notice of Violation has been delivered, or any other time period provided for in the Notice of Violation, with respect to removal or correction of an Improvement disapproved by the Architectural Review Committee If the owner fails to comply with the instructions from the Board or Architectural Review Committee within fourteen (14) days of the third notice of violation, the Association will act in accordance with article 7.4 of the Declaration and shall have the right to enter the lot and make the necessary corrective actions and the cost of such action shall be payable by the Lot owner to the association upon demand. 6.3 Violations of Section 3.29 of the Declaration and Section 5.5 of the Association Rules, Trash Containers and Collection The Board shall deliver a Notice of Violation and levy a fine in the amount of ten dollars ($10) against an Owner for the failure by such Owner, or by a Resident Approved December 17,

11 or Lessee of such Owner s Lot, to comply with Section 3.29 of the Declaration and Section 5.5 of these Rules. The Owner of each Lot shall be entitled to one (1) courtesy letter describing the violation and requiring compliance with the Governing Documents prior to a Notice of Violation being delivered to the Owner. If no other violation is committed within the six (6) month period after a courtesy letter is issued, then another courtesy letter shall be issued before a Notice of Violation is delivered and a fine is levied. If more than one (1) violation is committed within any six (6) month period, no courtesy letter will be issued on the second and subsequent violations. 6.4 Violations of Section 3.7 of the Declaration, Animals The Owner of a Lot shall be subject to a fine of (i) twenty-five dollars ($25) for the first violation, and (ii) one hundred dollars ($100) for the second violation and each violation thereafter for the following violations of Section 3.7 of the Declaration: (i) Failure by a Resident to observe the leash rule; (ii) Failure by a Resident to control an animal so that it is not a nuisance or does not make an unreasonable amount of noise; and (iii) Failure by a Resident to immediately remove feces deposited by an animal on any Lot or Common Area. The Owner of a Lot shall be entitled to one (1) courtesy letter describing the violation and requiring compliance with the Governing Documents prior to the first Notice of Violation being delivered to the Owner and a fine being levied. If no other violation is committed within the six (6) month period after a courtesy letter is issued, then another courtesy letter shall be issued before a Notice of Violation is delivered and a fine is levied. If more than one (1) violation is committed within any six (6) month period, no courtesy letter will be issued on the second and subsequent violations. 6.5 Violations of Section 3.5 of the Declaration, Vehicles and Parking The Owner of a Lot or Parcel shall be entitled to one (1) courtesy letter describing the violation and requiring compliance with the Governing Documents prior to a Notice of Violation being delivered to the Owner. The failure to comply with the courtesy letter in the time provided therein, or the occurrence of any subsequent violation after the courtesy letter is sent, will result in the Board delivering a Notice of Violation and levying a fine of fifty dollars ($50). If the violation is not corrected after the notice of violation and fine pursuant to Section 3.6 of the Declaration the offenders vehicle will be towed. The costs and expenses of towing the vehicle shall be charged to the Owner as provided in Section 3.6 of the Declaration. 6.6 Violations of Section 3.33 of the Declaration, Housing for Older Persons; Age Restriction. Failure to comply with Section 3.33 of the Declaration or Article 8 of these Rules will result in the Board delivering a Notice of Violation and levying against an Owner a fine equal to $250. The Notice of Violation will inform the owner of the right to request a hardship exception per section of the Declaration. If the owner fails to request a hardship exception within fourteen (14) days a second Notice of Violation will be delivered levying a second $250 fine and informing the owner that legal action will be taken to enforce the Declaration. If the owner s request is granted for a hardship exception for a defined period of time, and the violation persists after the granted time, a notice similar the second Notice of Violation referenced above will be delivered to the owner. 6.7 Violations of Section 3.32 of the Declaration, Leasing of Residential Units Failure to comply with Section 3.32 of the Declaration or Article 8 of these Rules will result in the Board delivering a Notice of Violation and levying against an Owner a fine equal to $250. If the violation Approved December 17,

12 is not corrected within fourteen (14) days a second Notice of Violation will be delivered levying a second $250 fine and informing the owner that legal action will be taken to enforce the Declaration. 6.8 Violations of Section 7.2 of the Declaration, Maintenance of Lots The Owner of a Lot shall be entitled to one (1) courtesy letter prior to the Board delivering a Notice of Violation and levying a fine. The failure to comply with the courtesy letter in the time provided therein will result in the Board delivering a Notice of Violation to the Owner and levying a fine of twenty five dollars ($25). The failure to correct the violation within fourteen (14) days after the Notice of Violation is delivered to the Owner (or any other time period set forth in the Notice of Violation) will result in the Board delivering another Notice of Violation and levying an additional fine of one hundred dollars ($100). If a fourth violation occurs The Board also shall exercise its rights pursuant to Section 7.4 of the Declaration by performing the work at the cost of the Owner. 6.9 Other Violations of Governing Documents Violations by an Owner of any provision of the Declaration, a Supplemental Declaration, Bylaws, Design Guidelines or these Rules not specifically provided for in this Article 6 may result in the Board delivering a Notice of Violation and levying a fine against the Owner in the amount of (i) ten dollars ($10) for the first violation, (ii) twenty-five dollars ($25) for the second violation and (iii) fifty dollars ($50) for the third violation and each violation thereafter; or for violations of a continuing nature, the Board may deliver a Notice of Violation and levy each of the foregoing fines within a specific period of time if the violation is not corrected within the time periods required in the Notices of Violation. ARTICLE 7 COMPLAINTS CONCERNING VIOLATIONS An Owner or Resident may report an alleged violation to the Association by written notice to the following address: Community Manager Solera at Johnson Ranch Community Association North Echo Canyon Road Queen Creek, Arizona ARTICLE 8 POLICIES, PROCEDURES, RULES AND REGULATIONS FOR OCCUPANCY RESTRICTIONS 8.1 Purpose The Community is intended and operated for occupancy by persons fifty-five (55) years of age or older. 8.2 Occupancy Requirements Age Restrictions Except as provided for in this Rule and the Declaration, at least one occupant of each occupied Residential Unit must be fifty-five (55) years of age or older and no person under nineteen (19) years of age may occupy or reside in a Residential Unit Approval Required for Exceptions Under the Declaration, the Board, in its sole discretion, may permit persons, all of whom are under the age of fifty-five (55), to occupy a Residential Unit unless such permission would result in fewer than eighty percent (80%) of the Residential Units being occupied by one person fifty-five (55) years of age or older or otherwise jeopardize the Community s status as housing for older persons under the law. Persons desiring to reside in a Approved December 17,

13 Residential Unit where at least one proposed occupant is not fifty-five (55) years of age or older (or where any proposed temporary occupant is under nineteen (19) years of age) shall submit a written request for approval of occupancy to the Board and are not allowed to take occupancy until written approval is granted by the Board Verification of Occupancy Requirements upon Sale of a Residential Unit At the time a prospective purchaser enters into a purchase agreement, the purchaser shall be required to certify as to compliance with the fifty-five (55) and older occupancy requirement. Certification shall be completed by the prospective purchaser and submitted to the Association for approval. Upon receipt of the certification containing all required information, the Board will determine whether the proposed occupancy of the Residential Unit is in compliance with the Declaration and these Rules and either grant or disapprove the proposed occupancy. The prospective occupants may not take occupancy until written approval of the proposed occupancy is granted by the Board Verification of Occupancy Requirements for Leasing Owners desiring to lease their Residential Units must comply with Sections 3.32 and 3.33 of the Declaration and the following Rules and submit a written request to the Board for approval of the proposed Lessees. The request must include (i) a completed Age Verification for Renters and (ii) a copy of the lease or rental agreement signed by the proposed Lessee (subject to Board approval), which lease or rental agreement complies with all the provisions of Section 3.32 of the Declaration and these Rules, and (iii) the address and telephone number of the Owner. Upon receipt of the written request containing all required information, the Board will determine whether the proposed leasing of a Residential Unit is in compliance with the Declaration and either grant or disapprove such request. The proposed tenant may not take occupancy until written approval of the lease is granted by the Board. If a tenant takes occupancy prior to approval, the Owner s access card will be deactivated, the Owner will be subject to fines under Section 6.6 of these Rules and the Association will have all other rights and remedies available pursuant to the Declaration and applicable law. If the proposed tenant is approved for occupancy, the Owner, after execution of the lease, shall deliver a fully executed copy of the lease to the Manager for further delivery to the Board Exceptions for Visiting Children. A person under nineteen (19) years of age may visit a Residential Unit as the guest of the Resident(s) of such Residential Unit for a period of not more than sixty (60) days in any twelve (12) month period. 8.3 Age Verification. At least once every two (2) years, an age verification survey shall be completed to verify occupancy of each Residential Unit in the Community. Pursuant to the Age Certification Survey, one adult occupant of each Residential Unit shall certify to the Association whether such Residential Unit is occupied by at least one person fifty-five (55) years of age or older. Such certification shall be supported by reliable official documentation of the age of the occupant(s) of such Residential Unit. The following documents are acceptable as proof of age: (i) Valid driver s license; (ii) Birth certificate; (iii) Passport; (iv) Immigration Card; (v) Military identification; or Approved December 17,

14 (vi) State, local, national or international official documents containing a birth date of comparable reliability. In the event there is a change in the occupancy of a Residential Unit, the occupant shall immediately notify the Board in writing of such change by delivering such written notice to the Community Manager Penalty for Non-Compliance with 8.3 Age Verification (Section added May 20, 2010) The Board of Directors shall deliver a Notice of Violation (as defined in Article 5 of the Bylaws) and levy a fine of $250 and suspend use of the Common Area (other than the right of an Owner and such Owner s family, tenants, and guests to use any streets which are part of the Common Area for ingress and aggress to the Owner s Lot) as allowed in CC&R s Section 4.1.1(vii) against an Owner for failure by such Owner or by a Resident or Lessee of such Owner s Lot to return the Age Verification Survey as set forth in Section 8.3 of this document by the documented deadline date. This deadline date shall be set by the Board of Directors and will be communicated to each Owner as part of the Age Verification Survey. After delivery of the initial Notice of Violation and fine and suspension of Common Area use, an Owner or Resident or Lessee of such Owner shall have 30 days to return the Age Verification Survey. If the completed survey is not returned in this period of time, another fine in the amount of $250 will be assessed against the Owner. The Owner or Tenant or Lessee will be given 14 days to complete the survey and return it to the Association. Failure to comply after receipt of the second notice shall result in $250 fines against the Owner for each 14 days the Owner or Tenant of Lessee fails to return the Age Verification Survey. 8.4 Incorporation of Provisions in Declaration. The provisions of Section 3.33 of the Declaration, as they may be amended from time to time, are incorporated herein. Each Owner and occupant of a Residential Unit should read and understand the restrictions in the Declaration and these Rules with respect to the status of the Community as housing for older persons. ARTICLE 9 LEASING OF RESIDENTIAL UNITS 9.1 REGISTRATION OF PROPERTIES AVAILABLE FOR LEASE. All Residential Units within Solera at Johnson Ranch which are available for lease, lease option, or rent must be registered by the Owner with the Association at the Community Manager s office prior to any advertising, posting, or offering of said property on any portion of the Common Area. Signs offering the Residential Unit for rent, or for lease, may only be displayed on the Lot in accordance with Section 3.20 of the Declaration. 9.2 TERM OF LEASE The lease or rental agreement for any Residential Unit offered for lease, lease option, or rent must be in writing and for a term of not less than 90 consecutive days, in accordance with Section (i) of the Declaration. The Owner is responsible for insuring any actions on his or her behalf by Realtors, property managers, or other such agents are in compliance with all governing documents. 9.3 ADVERTISING / POSTING Advertising a term of less than 90 consecutive days in any offering of a Residential Unit for lease, lease option, or rent through advertising in any outlet, whether public or private, will be deemed a violation of the Governing Documents and may subject the Owner to corrective action as provided in the Governing Documents. 9.4 TIMELINE FOR SUBMISSION OF INFORMATION REGARDING THE LEASE AND OCCUPANTS OF THE LOT Before the commencement of each lease term, the Owner or the Approved December 17,

15 Owner s agent shall deliver the following to the Association: (a) a copy of the lease signed by the Lessee, (b) the names and ages of all occupants of the Residential Unit and such affidavits and other documents as the Board may request to verify the age of such occupants, and (c) current address and telephone number of the Owner. 9.5 SUBLETTING / TIME SHARING A lease or rental agreement must be signed by all Residents occupying the Residential Unit during the lease term. All Residents signing the lease or rental agreement must occupy the Residential Unit during the term of the lease or rental agreement. Additional leases on the same Residential Unit shall not commence until the expiration of any existing lease. No subletting or time sharing is permitted. 9.6 OCCUPANTS As per Section 3.32 (ii) of the Declaration, The occupants of the Residential Unit under the lease shall satisfy the Housing for older persons, restrictions set forth in Section 3.33 of the Declaration. Owners and leasing agents should review all Governing Documents prior to entering into a lease agreement. Any leases wherein all proposed occupants are under fifty-five (55) years of age must be approved in advance by the Board of Directors, or designee, in accordance with Section of the Declaration. Any such leases not approved by the Board of Directors are in violation of the Declaration. 9.7 OWNER RESPONSIBLE Tenants, all occupants, and guests must comply with all Governing Documents of the Association. Violations could result in penalties, revocation of privileges and / or eviction. The Owner is responsible for the compliance of the lessee, all occupants, and guests and shall be held liable for their actions and any damages to Association property The foregoing rules may be modified from time to time as may be deemed necessary in the sole discretion of the Solera at Johnson Ranch Community Association including, without limitation, for purposes of compliance with 42 U.S.C. 3607(b)(2)(C), A.R.S and 24 CFR Part 100. Forms and documents referenced within these Rules and Regulations are available at the Association Office or on the community website. In the event of any conflict between these Rules and the Declaration, the Declaration shall control. In the event of any conflict between these Rules and the Bylaws, the Bylaws shall control. Approved December 17,

16 Approved December 17,