Terrace at Highpointe Community Association, Inc. 35 Hyland Drive Troy, NY

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1 Terrace at Highpointe Community Association, Inc. Dear Terrace Residents: 35 Hyland Drive Troy, NY April 30, 2011 Rev: January 14, 2013 Rev: April 18, 2014 All original residents of the Terrace received a 200-page OFFERING PLAN when they bought their property. In many cases, this was passed on to subsequent buyers, as it should have been, but often it was not. In any event, the only portions of that volume that still apply to all residents are the DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND LIENS, which is on pages , and the BY-LAWS, which are on pages For those who do not have the original OFFERING PLAN, you can purchase a copy of the DECLARATION AND BY-LAWS from the Board of Directors. Over the past few years, the population of the Terrace has undergone quite a few changes, and will undergo even more as, inevitably, other homes come under different ownership. That means much of our "institutional memory" gradually has been reduced. To rectify that, your Board of Directors has excerpted a list of key points from our DECLARATION and BY-LAWS that newer residents often ask about and veteran residents may have forgotten. We hope this will be of assistance to all of you, but keep in mind that this is merely a convenience. The original Terrace DECLARATION and BYLAWS are still the governing documents that we all must abide by. That covenant also contains more detailed explanations of the items in this checklist. It is recommended that all Homeowners become familiar with the original document since they are legally bound to adhere to it. Your Board of Directors

2 Terrace at Highpointe Community Association Page 2 of 8 A summary of selected requirements from the Declaration and By-laws FINANCIAL OBLIGATIONS OF THE ASSOCIATION AND THE HOMEOWNERS Homeowners are required to pay the Community Association dues on a quarterly basis (changed at a general meeting on September 21, 1998, from the original monthly requirement). Checks are due to the Treasurer on January 1, April 1, July 1 and October 1. The Board of Directors is empowered to assess a series of financial penalties for payments not made within 15 days of the deadline(s). Each homeowner is required to obtain and keep in force insurance adequate for full replacement cost of their home on the lot. Proof of such insurance may be requested annually by the Board in writing if it so desires. [Note: Per a letter from the City of Troy dated September 1, 1994, the Terrace is an area designated as Zone C. It is outside the flood plain, thus flood insurance is not required.] The Community Association may levy special assessments, equally divided among the 34 Terrace residences, as needed. The Association is not obligated in any calendar year to spend all the money collected by way of assessments or otherwise, and may carry forward as surplus any balances remaining. A REPLACEMENT FUND has been in effect since 1995 for major repairs or replacement. It was separated from the general fund in 2000 to be used only for the repair and/or replacement of association-owned roadways, mailbox area and overflow parking areas. A RESERVE FUND also was separated from the general fund in 2000 to be used only for major repairs and replacements. PURPOSE OF RESIDENCES Each residence is intended primarily as living quarters. However, a home office is permitted as long as it generates no extraordinary traffic or parking and there are no signs indicating its existence. Owners may not lease out their property, or any portion of it, for an initial period of less than four months. All leases must be in writing, and lessees are subject to all by-laws, rules and regulations of the Association. PARKING Recreational vehicles -- including, but not limited to, all-terrain vehicles, cars, motorbikes, motorcycles, mini-bikes, snowmobiles or other such vehicles -- are allowed on a Homeowner s lot only if stored in the garage. Prohibited vehicles include any vehicle that cannot fit into a garage, commercial vehicles unless fully garaged, or unlicensed vehicles of any sort unless fully garaged. Vehicles belonging to the guests of occupants must be parked in the occupants driveways or in the parking lots. Garage doors should be left closed as much as is practical.

3 Terrace at Highpointe Community Association Page 3 of 8 SIGNAGE No commercial signs or other advertising device may be displayed on a residential lot, in a residential window or in or on any other portion of the lot. Signs advertising the property for sale may be displayed only on weekends. [Note: Homeowners must inform real estate agents of such restrictions.] OUTDOOR STORAGE AND LOT USAGE Hot tubs, pools and the like are not permitted. No storage or personal property is permitted outside the Residence, on a patio, deck or lawn, except for the customary seasonal furniture and grills. No extensive work on any motor vehicles, boats, trailers or other equipment is permitted on the property. Trash and garbage may be kept only in the garage, in receptacles supplied by the City of Troy, except when placed at the side of the road on Thursday, the night before weekly collections. [Note: Recycling is mandatory in Troy. Refuse that does not fit in the receptacle generally will not be collected by the City if placed alongside it. You can schedule a special pickup for such items by calling City Hall at or ] No clotheslines or outdoor drying devices of any type are permitted. PETS In the case of dogs or cats, pets must be kept leashed and not allowed to roam freely about the Terrace. Also, bear in mind that the City of Troy has leash laws. No doghouses are permitted, and the Board may at its discretion prohibit certain types of pets. (Also see Board Policy decision dated Jan. 14, 2013) MEETINGS The Association meets in general membership session twice annually, usually in May and October. Notice is given via bulletin board notices, website postings ( and announcements at earlier meetings. Among other activities at such meetings are approval of minutes, budgets and elections of officers when necessary. Each residential unit is limited to one (1) vote no matter how many people reside in the unit. Voting privileges may be transferred by written proxy on a permeeting basis. The Board of Directors meets as needed, usually monthly. HOME MAINTENANCE Deviations from the original design, color or other aspects of each residence are not allowed without prior, written approval of the Board of Directors. Exterior trim paint has an estimated five-year lifespan. Homeowners are responsible for painting the trim on that recommended schedule and otherwise keeping it in acceptable condition should repairs and/or repainting be necessary.

4 Terrace at Highpointe Community Association Page 4 of 8 Exterior trim colors on shutters, doors and door- and window-trim may not be changed from their original color. This includes the cedar trim. [Note: Check the Terrace Times website or an Architectural Committee member for approved colors.] Homeowners are responsible for care and maintenance of their own driveways and walkways. Bi- or tri-annual sealcoating is recommended to extend their life. [Note: We keep such costs low by contracting with a vendor for such service and getting a group rate each summer. Such a project is announced on the mailbox bulletin board, accompanied by a sign-up sheet.] All Homeowners with residential fireplaces are responsible for keeping the fireplace and chimney in a safe, working condition. Regardless of whether a unit is occupied, the owner is obligated to maintain sufficient heat to prevent damage to the unit or other units. PERMANENT RESIDENTIAL MODIFICATIONS AND ADDITIONS In addition to any pertinent City of Troy requirements and permits needed to modify, add to, or otherwise act on a residence (such as constructing decks, patios, sun rooms, fencing, changing the style of storm and screen doors, etc.), Homeowners must make written application on the approved form to the Architectural Committee, outlining the proposed changes and, if needed, attaching pertinent sketches, images or text. The Committee will review the request, may ask for additional information, and then send it along to the Board of Directors with a recommendation to either approve or deny the request. No actual work may begin until such written approval is received by the applicant. No awnings, additional shutters, window guards or other exterior window and/or door coverings, either decorative or protective, may be installed without prior written approval of the Board. Shades, blinds and/or drapery linings should be white, light beige, or an off-white color on the sides facing the windows. No outside antennae or satellite dishes for television and/or radio or other communications devices are permitted without prior written approval of the Board. No nameplates or house numbers that were not part of the original installation are permitted without prior written approval of the Board. Anyone wishing to add an identifying number to a residence must file a request for approval to the Architectural Review Committee. Such additional numbers must be flat black in color, and be installed only in the middle of the trim at the top of garage doors. The original brass numbers may not be removed. Any screen planting, fence enclosure or walls initially planted, installed or erected on any property may not be removed or replaced by any owner without prior written permission of the Board. Dead trees or shrubs must be removed from any property in a timely fashion. Any costs for doing so are the responsibility of the property owner unless said plantings are on Association property.

5 Terrace at Highpointe Community Association Page 5 of 8 BOARD OF DIRECTORS The business affairs of the Association shall be managed by the Board of Directors. The Board must consist of at least three (3) members, although a five-person board has been the norm. An uneven number is used to avoid tie votes. All directors must be unit owners, spouses of unit owners or mortgagees of unit owners. Term of office is two years. There are no term limits. Directors are elected at general meetings in October. Board vacancies are filled by majority vote of the remaining Directors. Directors receive no compensation for their work, although reimbursement is permissible for actual, reasonable expenses incurred in the performance of duties. Every Director and officer of the Association shall be indemnified by the Association against all expenses and liabilities, including fees of counsel, reasonably incurred by or imposed upon such a person in the execution of Association business. COMMITTEES There are several standing committees: Architectural, Grounds, Beautification, Rules and Nominating. Other committees may be created on an ad hoc basis. Their general duties are as follows. Architectural The Committee serves in an advisory capacity to the Board, with final approvals and/or enforcement resting solely with the Board. The Committee is composed of three or more members as determined by the Board. In practice, the current Board president has served as Committee chairman. Terms are two years, although there is no prohibition to reappointment. The Committee advises the Board on all proposed additions, modifications or alterations to Association property it deems necessary, as well as all proposed additions, modifications or alterations involving the exterior of any residential unit. This includes exterior doors, garage doors and windows. The Committee also may perform such other functions as assigned by the Board. Any proposed modifications to home exteriors must be submitted by the homeowner on a standard form -- available on the Terrace website or from any Committee member -- to the Committee. The Committee will review the particulars, sometimes requesting additional information or modifications to the application, then make recommendation to the Board for approval or denial. The Committee and the Board have up to 60 days to act on applications. Approvals may be rescinded if work has not begun within six months of Board approval. Written notification of disapproval by the Board may be incurred if it is determined work is proceeding out of compliance with the scope of the approval. If work on exterior modifications has begun then is stopped for what is deemed by the Board to be an unreasonable period, the Board may contract to have the work completed if it deems it necessary to protect the appearance, value or structural integrity of the unit. Costs for such

6 Terrace at Highpointe Community Association Page 6 of 8 an action become the responsibility of the unit owner and must be paid to the Association. Failure to do so will make the outstanding debt a lien against the property. Grounds The Committee consists of three people, appointed by the Board. The Association, through its Board and the Grounds Committee, obtains contracts for grounds maintenance services, paid for by the Association. They include Lawn and landscaping services Lawn mowing as needed Edging and mulching in early Spring Trimming shrubbery in Summer and Fall Pruning of trees when possible Cutting back wood line as needed Spring and Fall cleanup Fertilization Five applications of fertilizer; weed and insect control as needed Pre-emergence crabgrass control in early Spring Grub control in late summer Information concerning lawn treatments is posted as needed on the mailbox bulletin board. Snow plowing All driveways, mailbox area, Hyland Court and overflows will be plowed and sidewalks shoveled when there is an accumulation of three (3) inches or more of snow. Hyland Court and mailbox area will be salted as needed. Owners responsibilities Watering lawns and maintaining sprinkler systems Seeding lawns as needed Weeding property as needed Salting driveways and sidewalks as needed City of Troy responsibility Plowing and salting Hyland Circle and Hyland Drive which are dedicated city streets. Beautification The Committee is responsible for seasonal decoration of the mailbox gazebo, planting containers and any other such plantings on Community property.

7 Terrace at Highpointe Community Association Page 7 of 8 Rules & Regulations The Committee is responsible for reviewing the Association's formal rules and regulations from time to time and, when deemed necessary, suggest to the Board modifications to same. These may include such things as changes in technology, local or state laws or policies. Nominating A Committee of three (3) people shall be appointed by the Association president every two years to create a slate of candidates for fall election to the Board. BOARD POLICIES In addition to these excerpts from the Declaration and Bylaws, the current Board of Directors has formalized certain policies that may be continued or modified as deemed necessary by future boards. Among them: If the Association checking account balance as of the end of the calendar year is below $6,500 or above $10,000, an automatic review of property assessment dues is triggered to ascertain whether an increase or decrease in dues is appropriate. This mechanism was adopted at the Board's January 10, 2011, meeting. The Board of Directors is required to meet quarterly. However, it generally meets on a monthly basis, or as deemed necessary by its members. Minutes of the meetings shall be kept on permanent file. Minutes of general and board meetings shall be completed and distributed within 10 days, as decided by the board at its January 10, 2011, meeting. Cards or other acknowledgements such as memorial contributions in the case of illness or death of Terrace residents shall be dispatched by the Association secretary. This is not extended beyond residents. As a result of an inquiry from a potential new owner, the Board considered whether to allow invisible pet-restraining fences. The idea was unanimously rejected. In addition, pets may not be tied up and left outside. (Added January 14, 2013)

8 Terrace at Highpointe Community Association Page 8 of 8 TERRACE GEOGRAPHIC PARAMETERS The Terrace at Highpointe consists of 34 town homes in 17 dual-residence units, as well as several parcels of commonly-owned property. The latter consists of seven (7) irregularly shaped parcels, one lying within the Town of Brunswick, the others within the City of Troy. All have been properly filed as unimproved parcels. They range from in size from 16,313 to 340 square feet, with a total of 52,999 square feet. The Terrace, with common areas blackened, is shown on the following map.

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