Ridgeline Townhomes are located at the northeast corner of Tarpley Road and Keller Springs in Carrollton, Texas.

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1 II. INTRODUCTION The following rules and regulations, and architectural control standards have been adopted by the board of directors of Ridgeline Townhomes in accordance with the declarations and by-laws to not only protect the architectural integrity and harmony of the community, but also to promote the safety and welfare of residents and to maintain an acceptable quality of life. It should be noted that the rules and regulations do not replace the declarations or by-laws, which the board of directors uses as its primary governing document. Both documents are in force. In case of conflict between the wording of these documents, the declarations will prevail over the by-laws and the by-laws will prevail over the rules and regulations. The rules and regulations shall apply to all property owners, their residents, family members, tenants, occupants, agents, visitors, employees, and guests; and shall be enforced by the board of directors in accordance with applicable covenants and declarations. In establishing and maintaining the rules and regulations, the board shall make every effort to ensure that they do not affect unit owners' right to the enjoyment of reasonable and unrestricted use of their property or privileges of ownership. The rules and regulations and standards may be modified, repealed or amended at any time by a resolution of the board of directors when deemed necessary in the best interest of unit owners/residents and the community. III. GENERAL INFORMATION Ridgeline Townhomes are located at the northeast corner of Tarpley Road and Keller Springs in Carrollton, Texas. Property in the development is classified as, General Common Elements and Limited Common Elements." The streets, curbs, sidewalks, lawns and yard areas, trees and shrubs, exterior lighting, carports and parking areas and pools comprise the GENERAL COMMON ELEMENTS. Your homeowners association (HOA), along with your management agent, is responsible for the operational management and oversight of maintenance and improvement of these areas, which are for the exclusive use of the individual residents/unit owners and/or their guests. Page 5 of 16

2 The LIMITED COMMON ELEMENTS include patios, and fenced areas. YOU AS A UNIT OWNER OR YOUR TENANT HAVE THE RESPONSIBILITY FOR THE UPKEEP OF THESE AREAS. Trees are not permitted on patios. Homeowners are responsible for any damage to the buildings or other common areas caused by a tree on their patio. The board has the responsibility to assure that patios are properly maintained and representatives of the association have authority to enter patios at any time for required maintenance. Maintenance items that are the responsibility of the homeowner are listed in Section 3.7 (page 18) of the Declarations and Restrictions. IV. GENERAL RULES AND REGULATIONS These are the general rules and regulations of the association. Requests for exemptions or exceptions to any of these rules must be made in writing to the board of directors and may only be granted by written consent of the board of directors. Any damage to buildings, grounds, or other common areas or to equipment by any owner, tenant guest, family member or pet shall be repaired at the expense of the unit owner. This charge may be assessed in addition to a fine. Unit owners are fully responsible for the actions of their tenants, family members, guests and pets, and shall be held accountable for any damage done to the property. Page 6 of Common areas: The lawns and walkways shall not be used for storage or parking and must not be obstructed in any way. No bicycles, toys, trashcans,, or other personal property shall obstruct entranceways, walkways, parking or other common areas. 2. Garage Sales: No yard, patio, carport or garage sales are allowed. 3. Unlawful and Disturbing Noises/Practices: No unit owner or resident shall make or permit any unreasonable noise that will disturb or annoy other residents, or permit anything to be done which will interfere with the rights, comfort and convenience of other residents. All residents must comply with City Of Carrollton regulations to reduce noise levels between 10:00 P.M. - 6:00 A.M. so that the neighbors are not disturbed. At no time are musical instruments, stereos, radios, television sets, or other devices to be so loud as to become a nuisance. 4. Trash, Refuse and Garbage: No one shall place trash or other refuse in the common areas, except in containers or depositories designated. Trash cannot be stored by the front door or on the patio for more than one hour. Arrangements for the removal of bulky items such as mattresses, furniture, appliances, construction materials, etc., must be made by the resident and these items shall not be placed outside or in the dumpster. 5. Play areas: There is no designated play area in the common elements, therefore there is no playing or bicycling permitted on the lawns. Play cannot be of a nature that is destructive or potentially destructive of property and should not violate the provisions of item No.3.

3 6. Outside Activities: There shall be no organized sports activities, picnicking or fires, except in areas approved by the board. Outdoor cooking is permitted in the patio area of your unit only. A protected metal barbecue container must be used for any outdoor fires. Fires cannot be left unattended and cannot be hazardous to buildings or other property. 7. Defacing of property: Signs, notices, advertisements, or any alteration of exterior surfaces shall not be placed, inscribed, or exposed on any window, door, or other exterior parts of any unit, or on the common areas. Window air conditioning units are not permitted. Specifically excluded from this regulation are seasonal decorations, security signs and "For Sale" signs, which can be located inside the front window only, in accordance with the Declaration and Restrictions, or as approved in writing by the board. The board has the responsibility to control visual attractiveness of the property including, without limitations, the right to require owners to eliminate objects which are visible from the common area and which, in the board s judgment, detract from the visual attractiveness of the property. 8. Rental Property: All unit owners who rent to a tenant shall: (1) provide the tenant with a copy of the by-laws and rules and regulations, (2) include in the lease agreement a provision that the tenant has been given said copies, has read and understood, and agrees to abide by these documents, (3) notify the board of directors in writing that the unit is tenant-occupied, giving the name(s), address and phone number of the occupants, and (4) provide to the management agent the name of any agent retained by the unit owner to manage the unit for him/her. The unit owner is responsible at all times for the enforcement of the established guidelines. 9. Vandalism: Unit owners and their families, tenants, and guests shall not deface, remove, or destroy, or permit the defacing, removing or destruction of any element of the common areas. 10. Improper Use of Common Areas: There shall be no use of the common areas which injures or scars the common area or the plantings thereof, increases the maintenance thereof, or causes unreasonable embarrassment, disturbance or annoyance to other owners in their enjoyment of the same. This includes outdoor activities that damage lawns 11. Hanging of Clothes, Etc: No clothes, linens, or other materials shall be hung from windows, placed on window sills, hung or draped on fences or railings, or otherwise left or placed in such way as to be visible to the public. 12. Littering: There will be no littering. Paper, cans, bottles, cigarette butts, foods and other trash are to be deposited only in appropriate trash containers, and under no circumstances are such items to be dropped or left on the grounds or other common areas. 13. Water Cut Off: The management company must be notified by the owner/tenant prior to any water cut off. The owner/tenant of the unit where the work will be performed Page 7 of 16

4 must obtain from the property manager a listing of all units that will be affected by the water shut-off. A written notice must be placed on the door of each of these units 24 hours in advance of the shut-off. This notice must contain: 1. The unit number where the work will be performed 2. Contact information for the owner or tenant 3. The planned time of the water shut-off The period for non-emergency repairs is from 10:00 A.M. 5:00 P.M. for a period not to exceed greater than a four (4) hour span. For emergency purposes the owner/tenant must contact the management company immediately. The management company will need to speak to both the owner/tenant and the plumber. The owner/tenant will be responsible for keeping the water cut off to an absolute minimum amount of time. V. RESIDENTIAL USE 1. All units shall be used for residential purposes exclusively. 2. No unit within Ridgeline Townhomes shall be rented for transient or hotel purposes or for a period of less than six (6) months. 3. No noxious or offensive trade or activity shall be carried on within any unit, nor shall anything be done therein or thereon which may be or become an annoyance to the neighborhood or other owners. There shall be no use of or activity in any unit or common element that shall be in violation of any governmental law, ordinance, rule or regulation. VI. INSURANCE` 1. Nothing shall be done or maintained in any unit or on any of the common elements, which will increase the rate of insurance on any unit or on or the common elements, or result in the cancellation thereof. VII. ANIMALS AND PETS 2. The maintenance, keeping, boarding and/or raising of animals, livestock or poultry of any kind, regardless of number is prohibited within any unit or common elements. This shall not prohibit the keeping of dogs, cats, and/or caged birds as domestic pets, provided they are not maintained, kept or bred for commercial purposes and provided further that the keeping of dogs, cats and/or caged birds will not constitute such type of noxious or offensive activity as covered in Part IV, item All pets shall be kept leashed and under the control of their owner whenever they are outside the unit (including patio). Pets shall not be allowed to run free or unleashed at any time, or to otherwise interfere with the rights, comfort or convenience of other residents. 4. Dogs may not be walked on grassy areas in the common elements. Any defecation by a pet on the Common property shall be immediately picked up and properly disposed. Page 8 of 16

5 5. Pets must be vaccinated and kept in accordance with the city/county health department laws and regulations. Contact the city/county animal control or the health department for more information. In addition, all City of Carrollton pet ordinances must be strictly adhered to. 6. Food for pets or animals and/or feeders may not be placed on any common elements. 7. Owners are responsible for all damages caused by their pets to common areas and to the property of others. VIII. MOTOR VEHICLE OPERATION AND PARKING RULES 1. Vehicles are prohibited from parking upon the common elements except in designated parking spaces. 2. Each unit shall have one assigned covered parking space near the unit. Unit owners, upon acquiring their unit, should call the management company to register their vehicles and request parking stickers. You are allowed two (2) free parking stickers. A third sticker may be purchased for $ per year. No more than three (3) vehicles per unit are allowed. 3. Only mobile and operable motor vehicles with current and valid registrations, license plates and inspection stickers may occupy any parking areas within the common elements. No junk vehicle or other unused vehicle may be stored on the property. No trailer, truck, camper, house trailer, or boat may be kept on any common elements 4. Each unit has one assigned covered parking space. Residents are required to use their assigned parking space. Extra parking is for your second car and guests. Visitor parking is on a first come first served basis and is limited. The board reserves the right to review abuse of any visitor parking. 5. No vehicle shall be left in a guest space for longer than two days without displaying a visitor permit. These can be obtained from the property manager. 6. No washing of vehicles is allowed on property. 7. No vehicle shall impede the free passage of any vehicle through the common area. 8. No vehicle shall impede any maintenance operations. 9. Repair costs for damage to common areas caused by vehicles, (i.e., leaking fluids in parking spaces, damaged landscaping, buildings, structures, etc.) shall be assessed to the owner of the unit where the owner of the vehicle causing said damages resides. 10. Motorcycles are required to utilize kick-stand plates to prevent damage to the pavement Page 9 of 16

6 Page 10 of 16 and cannot be parked more than two to a space. 11. Off road and recreational vehicles (i.e. dirt bikes, ATV s etc.) are prohibited from operation or use on the common property. 12. No commercial vehicles shall be parked on the property. Commercial vehicles are defined to possess one or more of the following: a. More than two (2) axles or four (4) wheels. b. Open stake body c. Length in excess of eighteen (18) feet d. Display of lettering or advertising such as company name, services, or contact information 13. All parking shall be in marked spaces only. 14. No stopping or parking is allowed in front of fire hydrants or in fire lanes. (Note that all drives are fire lanes.) 15. No stopping or parking is allowed in front of the dumpsters. 16. No stopping or parking is allowed at the mailbox area except in designated parking spaces. 17. Only minor vehicle maintenance is allowed on the property. Minor vehicle maintenance is defined to include only the following repairs: a. Battery replacement. b. Flat tire replacement. 18. Changing oil or other vehicle fluids is specifically prohibited. 19. Designated handicapped parking spaces may only be used by vehicles displaying handicap license plates or by vehicles stopped to pick up or drop off persons with a handicap or disability. Speed Limit: The speed limit for all vehicles within the community is 10 mph. Enforcement of Vehicle and Parking Rules: 1. If a vehicle is in violation of any one or more of the previous sections of the MOTOR VEHICLE OPERATION AND PARKING RULES, the managing agent or a representative will place a dated notice on the offending vehicle. If the violation is not corrected the owner of the unit may be assessed a fine of not less than $50.00 per occurrence. Continued violation may result in towing. 2. When applicable, any vehicle in violation of the Ridgeline Townhomes Rules and Regulations requiring removal from the property will be towed by a registered towing

7 operation selected by the property management. 3. The board may elect to seek legal and court-enforced assistance in an effort to resolve a condition of violation of these rules. All costs and liabilities associated with ensuring compliance shall be assessed against the owner of the unit where the owner of the noncomplying vehicle resides. 4. Failure by any owner who has received notice of violation of the aforementioned rules to pay an assessment penalty within thirty (30) days of the date of the penalty letter, could result in: late payment penalties, legal fees, a lien being recorded on the owner s property, court fees, and responsibility for any and all costs associated with the collection of said assessment penalty. IX. ARCHITECTURAL MAINTENANCE/CONTROL 1. Any structural alteration (construction, addition or removal) of any unit or common element shall be commenced or conducted only in strict accordance with the provisions of Article 3.8 of the declarations and must be specifically approved by the board. (This includes items such as storm doors, exterior lighting fixtures, etc.) a. Porch lights must be kept in good repair and replacements must be brass in color and of a style approved by the board. b. Any storm door installed must be dark bronze in color and of a style approved by the board 2. No owner or resident may make or cause to be made any architectural or landscaping change outside his/her unit without the prior written approval of the board of directors. This requirement could be waived if the board fails to respond within 60 days of a written request submitted to the property manager. 3. All changes proposed by the unit owner to the exterior of his/her unit shall be submitted in writing to the Board of directors. All requests shall include a written description and a diagram or plan of the proposed changes, and must be signed by the unit owner. Once written approval has been obtained and the approved changes have been made, the unit owner must contact the board so that a final inspection may be made and signed off by the board. 4. Any potted plants or garden accessories must be well maintained, in good repair, and in an acceptable style as determined by the board. Artificial plants are not permitted in exterior landscaping. Page 11 of 16

8 X. SATELLITE DISHES 1. Ridgeline s rules regarding the installation of satellite dishes are based on the Federal Communications Commission s Telecommunications Act of 1996 and subsequent amendments. 2. Owner/residents, according to this act, have the unrestricted right to install one satellite dish that is installed wholly within the exclusive use area of a limited common element area. The only area of this type at Ridgeline is the patio. Wholly within the area means that the satellite dish installation must not exceed the patio fence height. 3. If you cannot receive a signal from a satellite by installing a dish antenna on your patio, you may install it in an alternative location. However, installation on exterior walls or fascia is prohibited. 4. Satellite dishes installed on or in general common element areas without permission may be removed and the owner assessed charges for the removal as well as applicable fines. The satellite dish must be removed when the home is sold if the new owner does not agree to maintain the dish. Any damage done by the satellite dish installation is the responsibility of the homeowner. 5. The board is not obligated to provide a place for installation and the rules regarding unreasonable delay or expense do not apply to condominium areas where the owner/resident does not have exclusive use. XI. POOL RULES 1. Ridgeline pools are private property and are for the exclusive use of Ridgeline owners, residents and their guests. One guest is allowed for each individual at the pool. Additional guest may be permitted if the pool is not crowded. Owner or resident will be held responsible for the actions of their guests. 2. Management reserves the right to deny the use of the pool to anyone at any time. 3. The pool is open from 8:00 A.M. until 10:00 P.M. 4. No Lifeguard is on duty 5. All persons using the pool do so at their own risk. Ridgeline Townhomes Owners Association and its management are not responsible for accidents or injuries 6. All children fourteen (14) or under must be accompanied by an adult. Page 12 of 16

9 7. Running, pushing, wrestling, dunking, excessive splashing, or causing undue disturbance in or about the pool area will not be tolerated. 8. Diving is not permitted 9. Glass or other breakable items should not be brought into the pool area. 10. No cooking or grilling in the pool area 11. Alcohol and other drugs are not permitted 12. Profanity, disruptive behavior, and intoxication are not allowed 13. Smoking is prohibited inside the pool areas. 14. Pets are not permitted in the pool areas. 15. Loud music or noise is not permitted at the pool at any time. 16. For the protection of all concerned, persons with skin rashes, skin ailments, nasal or ear discharges or colds, or any communicable disease, are forbidden to enter the pool. 17. Appropriate swimwear must be worn in the pool. No cut off jeans or pants, shorts or tennis pants 18. Babies who are not toilet trained are not allowed in the pool, unless in swimmer diapers and rubber pants. 19. All individuals must have valid identification proving their Ridgeline residency in their possession in the pool area. Lack of this identification can be cause for removal from the pool area. 20. For the safety and enjoyment of all, management has full authority to ask disruptive or unruly guests to leave the facility. 21. The pool may be closed or it s use limited at any time because of weather, operational difficulties, or other conditions, at the discretion of the property manager. XII. ENFORCEMENT/PENALTIES 1. A system of penalties has been established to ensure compliance with the Ridgeline Rules and Regulations. The board believes that the enforcement procedure will result in greater community awareness of reasonable conduct that all unit owners have the right to expect from each other. If the violator is not a unit owner, the owner will be provided with copies of all correspondence pertaining to the violation and any ensuing penalties and hearings. The unit owner is ultimately responsible for all fines and the removal of all violations. 2. Fines may be imposed for violation of any of the above rules, according to the following schedule: Page 13 of 16

10 Page 14 of 16 a. Written warning (usually by written letter or parking citation) b. 1st violation, after written warning - $50.00 c. 2 nd Repeated violation - $75.00 d. 3 rd Repeated violation - $ The following two fines are automatic fines no warning will be issued a. Violation of water cut off rule (Rule IV-13) Automatic $ b. Violation of trash disposal (Rule IV-4) Automatic $50.00 With the exception of the two automatic fines noted above, the board of directors may not impose any fine or infringe upon any rights of a unit owner for violations of the rules until the following procedures have been complied with: a. If a violation of the rules is alleged in a written complaint to the board, the board will notify the alleged violator in writing to cease and desist from the violation. This notification will include: (a) the nature of the alleged violation; (b) the action required to remove the violation, and (c) notification of a grace period of ten (10) days, within which the violation may be removed without penalty. Should the violation continue beyond the grace period, a fine will be imposed. b. The alleged violator may request a hearing within ten (10) days after imposition of the fine. The request must be made in writing and be addressed to the board of directors. The hearing shall be held in executive session (that is, a closed session) of the board, and will afford the alleged violator a reasonable opportunity to be heard. The alleged violator may present his/her case to the board, and the board will decide, based on the available information regarding the alleged violation, whether or not any fines and/or penalties should be lifted. c. The hearing process is also available to anyone who has been assessed one of the automatic fines. 4. If a violation is repeated within twelve (12) months of the first notice, a fine will be imposed without a grace period. 5. If any unit owner fails to comply with the rules and regulations or by-laws, or with any decision rendered under the rules and regulations and by-laws, the unit owner may be sued for damages or injunctive relief, or both, by the board. Legal fees, as determined by the court, may be imposed against the owner. 6. A fine will be assessed to the unit owner regardless of whether the offender is the unit owner, a tenant, a guest or a household member. The payment of a fine does not relieve the obligation of correcting the violation.

11 7. If the association incurs expenses to correct a violation, this expense will be assessed to the unit owner. 8. If the unit owner does not pay any assessment or fine after 90 days, an additional fine may be imposed. 9. If any fine remains unpaid, a lien may be placed against the unit in question. This means that the unit cannot be sold unless the fine and all associated expenses in filing the lien are paid, and the lien has been removed. In addition, management may foreclose on a lien if it is deemed necessary. Other penalties for not paying the aforementioned fines and expenses may also be considered including, but not limited to, the following: a. Suing the unit owner for damages. b. Imposing criminal penalties through the proper authorities (violations of county or state laws). XIII. RIDGELINE TOWNHOMES OF CARROLLTON HOMEOWNERS ASSOCIATION, INC. FEES After the budget is adopted, each owner s individual fee is determined by their proportional interest in the common area. The fees are assessed against your unit on an annual basis, but are billed in 12 monthly installments due on the 1 st of each month. If you fall delinquent, the Board reserves the right to declare the full year s assessment due and payable and to proceed with collections that could include additional late fees, legal fees, a lien on your property, and foreclosure. The assessments cover such costs as: 1. Landscaping and maintenance of the common areas 2. Garbage collection 3. Water charges (including your personal water usage) 4. Common area lighting 5. Pool care and maintenance 6. Accounting and Legal fees 7. Management fees 8. Insurance of the common areas (owners should insurance contents) 9. Other operating costs and Capital expenses The method for the determination of the amount of assessments is governed by Section 5.3 of the Declaration and Restrictions (page 26) and a complete listing of the purpose of assessments is in Section 5.2 (also page 26). Page 15 of 16