RANCHO LA LAGUNA ("COMMUNITY") ASSOCIATION MEMBERSHIP RULES AND REGULATIONS

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RANCHO LA LAGUNA ("COMMUNITY") ASSOCIATION MEMBERSHIP RULES AND REGULATIONS I. INTRODVCfION. The Rules and Regulations of the Rancho La Laguna Community' Association ("Rule and Regulations") are supplemental to the Amended and Restated Declaration of Establishment of Conditions, Covenants, and Restrictions and Reservations of Easements for Rancho La Laguna ("CC&R'S") and By-Laws. Owners are WIder the obligation to abide by the requirements set forth within Rancho La Laguna ("Community") Association ("Assoeiation") governing documents including its CC&Rs and By-Laws, and the below Rules and Regulations. The intent of these regulations is, among other things, to promote a safe, visually pleasing, and harmonious environment for the community as a whole. II. DEFINITIONS. These rules shall be deemed to incorporate the terms and definitions contained elsewhere in the Association's governing documents. In the event of any conflict, the terms and definitions in the CC&Rs and By-Laws will prevail. A. Community is defined as the Rancho La Laguna Homeowners' Association. B. "Owner" is defined as the person, persons or entity who holds the record tille to a Home. The term "Home" and "Homesite"? are used interchangeably unless the context requires otherwise. C. "Tenant" is defined as any person, persons or entity who rents a Home. D. "Occupant" is defined as any person who resides within a Home and who is not an Owner or Tenant. E. "Guests" are defined as visitors or invitees of the Owner, Tenant or Occupant. F. "Management" is defined as Elite Community Management, 38760 Sky Canyon Drive, Suite C, Murrieta, California 92563. The primary contaet is Tim McLean at (888) 354~ 8322 or (909) 699-1220; Fax (909) 699-1661. III. GENERAL RULES. A. An owner shall be responsible (whether financially or otherwise) for any aet or omission of his Tenant, Occupant or Guest which is in violation of any of the Association's governing doeuments as if such act or omission has been that of the Owner. B. An O\VT1er must furnish his Tenant with a copy of the Rules and Regulations prior to the commencement of the Tenancy. C. No owner shall lease or rent a Home for a term of fewer than thirty (30) days. Occupancy of any Home is limited to SINGLE FAMILY USE ONLY. D. Owners must give written notice to Management within ten (10) days after the sale or rental of their home and furnish Management with the name and address of the new Owner or Renter at the close of escrow or signing of the Lease as the case may be. I 0[6

E. No outside clothesline or outside drying or airing device shall be erected or maintained so as to be visible from any other Home. F. Garages shall not be used for any other purpose other than the parking of motor vehicles. G. No articles shall be draped over any railings or fences. Balconies, patios, entry ways, etc., must be kept free of miscellaneous items, trash, debris, etc. H. All play equipment, including, but not limited to, bicycles, tricycles, skateboards, portable basketball standards, etc., shall be stored inside of the home, garage or rear yard when not in use. I. At no time shall an Owner allow or suffer his Home, or any structure or improvement of any nature thereon (e.g., house, fencing, driveway and walkways) to become deteriorated or fall into disrepair so as to materially adversely affeet the appearance or value of adjoining homes or the Community generally. For the purposes ofthis paragraph, the Board shall be entitled to determine that a Home or any structure or improvement thereon has so deteriorated or is in such disrepair based upon the advice of suitable professionals. J. Owners shall maintain their landscaping in a manner which is aesthetically pleasing and in keeping with the overall standard of landscaping in the Community which standard shall be determined by the Board. In determining such standard, the Board shall be entitled but not obliged to base the same upon the advise of a licensed landscape arehitect, contractor or other suitable professional. Ground cover, shrubs, bushes, plants and trees shall be kept nourished, trinuned and weed free. Any diseased vegetation shall be promptly treated and any dead or dying vegetation promptly removed and replaced with suitable healthy vegetation. K. Exterior holiday deeorations are to be maintained only during the respective holiday season. After the respective holiday season, all applicable exterior decorations are to be promptly removed. For the purpose of the paragraph, "holiday season" shall mean the period of not more than five (5) weeks before and two (2) weeks after the actual recognized date or dates of the holiday concerned. IV. VEIDCLE PARKING. A. Motor vehicles emitting abnormal or excessive fumes, noise, oil or grease may be barred from the Community and the Owner of such vehicle(s) will be liable for damages caused by such emissions. Use of a drip pan on the driveway is acceptable and reeommended. An excessive amount ofoil and/or grease accumulation on an Owner's driveway and/or drip pan must be promptly removed or cleaned. In addition, the drip pan must be put away when there is nol a motor vehicle standing over it. B. Vehicle repairs are prohibited on the streets and driveways. C. All vehicles operating on the streets and/or parked in the driveways within the Community must be safe for operation on publie streets and duly licensed and insured for all in aecordance with California Vehicle Code and any applicable loeal, municipal or governmental codes or ordinances. D. Trailers, commercial vehicles, boats, motor homes and self-contained recreational vehicles must be placed and maintained entirely within the side or rear ofthe Homesite and enclosed by a fence or closed gate. Such vehicles may be parked on the street in front of the owners Homesite in order to load and unload. The loading and unloading time frame shali be defined as 24 hours before a trip and 24 hours after a trip. 20f6

V. PETS. E. Vehicles must not block sidewalks or driveways. F. Any vehicle within the Community whieh is not regularly driven outside of the Community (i.e. not driven at least once in every seven (7) consecutive days) or which is non-operational, must be parked inside of the garage or stored off-sire. The storage of inoperable vehicles in driveways or streets is prohibited. A. Owners may keep commonly accepted household pets for non-commercial purposes in accordance with County regulations governing number and licensure, provided that the pets shall not be a nuisance to other residents of the Community. B. All pets shall be restrained (leashed) at all times within the Community, C. Pet owners are responsible for prompt cleanup of animal waste. VI. TRASH, BINS AND RUBBiSH. A. All refuse, trash cans and containers MUST be kept concealed from view from the street and any other Home, except for 12 hours before the scheduled pick up and 12 hours after the scheduled pick up. VII. ENFORCEMENT. A. All Owners are encouraged to request clarification from the Board of Directors regarding any Rules and Regulations. The Board of Directors does not relish a punitive role, but wishes to maintain a community atmosphere of cooperation and respect for mutual rights. The Association's CC&Rs and By-Laws specify procedural safeguards to protect the rights ofmembers accused of violating any provision of these Rules and Regulations or the CC&R's. B. Article 4, Section 4.1.20 of the Association's CC&R's affords the Board ofdirectors the ability to adopt a schedule of fines. As adopted by the Board of Directors, the fine policy is as follows: C. Schedule of Notices First offense: $100.00 per month Second offense: $125.00 per month Third offense and subsequent offenses: S150.00per month 1. First Notice of Violation(s): The first violation of an Association's rule or regulation will generally result in a warning letter unless, in the Board's opinion, the violation relates to a matter of such seriousness that it is appropriate to proceed immediately to a Hearing or the Board proceeding with other types of enforcement action.,i 2. Final Notice of Violation: A notice providing a deadline by which to correct the violation or be called in for a Hearing before the Board ofdirectors. 30f6

3. Continued Violation: Failure to correct the violations will result in aetion being carried out in accordance with the Hearing Results determined by the Board of Directors, ie., fines, loss ofprivileges, etc. VIII. COMPLAINTS. An complaints ofbelieved violations must be submitted to the Association, in writing, signed by the complainant and sent to the Management office. Complaints may be in the fonn or a letter or made by completing a complaint form, Complaint forms are available through Management. A written complaint is necessary in that it provides documentation to assist the Association in the investigation and enforcement of the alleged violation. Please provide as much detailed information as possible in your complaint. ) 40f6

RULES AND REGULATIONS OF THE RANCHO LA LAGUNA COMMUNITY ASSOCIATION UNINCORPORATED LAKE ELSINORE AREA OF THE COUNTY OF RNERSIDE, CALIFORNIA CERTIFICATION I, the undersigned, do hereby certify: (1) That I am the duly elected and acting Secretary of the above-named assoeiations; and (2) That these Rules and Regulation, comprising six (6) pages, including this page, constitute the Rules and Regulations of the Association as uly adopted by action of the Board ofdirectors of the Association duly taken on, ;) UXJ IN WITNESS WHE~OF. I have hereunto subscribed my name and affixed seal of said Association this ~day of, ~km k<.. 2004.. D.Q-hVnt ~ Secretary 50f6

DISCLAIMER THESE RULES AND REGULATIONS ARE INTENDED TO COMPLY WITH ALL APPUCABLE LOCAL, STATE AND FEDERAL LAWS. THE MATERIAL CONTAINED IN THESE RULES AND REGULATIONS IS NOT INTENDED TO SUBSTITITUE FOR THE SERVICES OF AN ATTORNEY. THE LAW AND ITS INTERPRETATION ARE CONSTANTLY CHANGING. SHOULD YOU HAVE ANY LEGAL QUESTIONS REGARDING YOUR INVOLVEMENT IN A COMMUNTY ASSOCIATION, YOU ARE ADVISED TO CONSULT AN ATTORNEY. 6of6