RULES AND REGULATIONS SHADY GROVE VILLAGE II CONDOMINIUM ASSOCIATION

RULES AND REGULATIONS SHADY GROVE VILLAGE II CONDOMINIUM ASSOCIATION c/o Abaris Realty, Inc. 7811 Montrose Road Suite 110 Potomac, MD 20854 Phone (301)468-8919 Fax (301)468-0983 Effective: April 27, 2017 Revised January 26, 2017 An important part of the home ownership is proper maintenance of one s property. The condition of each home affects its value as well as the value of the other homes in the community. Units that are well maintained are more likely to attain their full economic potential and contribute positively to the community as a whole. The Board of Directors for the Shady Grove Village II Condominium Association recognizes the need to implement proper enforcement guidelines to ensure the success of its operations. WHEREAS, Articles I, II and III of the Master Deed creating Shady Grove Village Condominium No.2, Inc. (Also known as and referred hereafter as Shady Grove Village II Condominium Association), define the Condominium units, limited common elements and general common elements; and WHEREAS, Articles VII, X and XI of the Bylaws of the Council of Unit owners of Shady Grove Village II Condominium, Inc. (hereinafter referred to as the "Bylaws"), provide for restrictions on use of units and common elements, and for architectural control of all changes and alterations in the appearance of units and common elements and specify the ownership, rights of use and responsibilities for repair and maintenance of these units and elements; and WHEREAS, Article V, Section 3 of the Bylaws assigns the Board of Directors (hereinafter referred to as the "Board") all the powers and duties necessary for the administration of the affairs of the condominium project, and authorizes the Board to promulgate and enforce such rules, regulations, restrictions, requirements, policies and procedures as are necessary respecting the use, occupancy and maintenance of the Condominium; and WHEREAS, there is a need for clearly stated policies on the responsibilities for repair and maintenance, and the permitted uses and modifications for units, limited common elements, and general common elements. WHEREAS, there is a need to establish, clarify, define, extend, reasonable and equitable rules and regulations for the parking spaces upon the common elements for the use of residents, and in addition, to provide for the enforcement of such rules and regulations. Page 1 of 11

Revised January 26, 2017 WHEREAS, Article IX, Section 1 of the Bylaws of The Council of Unit Owners of Shady Grove Village II Condominium, Inc. (hereinafter referred to as the "Bylaws") creates an assessment obligation for Owners; and WHEREAS, Article IX, Section 4 of the Bylaws authorizes the assessment of interest, costs and attorney's fees as a personal obligation of the delinquent Owner; and WHEREAS, Article IX, Section 6 of the Bylaws authorizes the Board to accelerate assessments in the event collection action is required; and WHEREAS, there is a need to establish orderly procedures for the billings and collection of said assessments. The Board of Directors of Shady Grove Village II Condominium, Inc., (hereinafter referred to as the "Board") has adopted the following House Rules and Regulations (hereinafter referred to as "REGULATIONS"). These REGULATIONS may be amended from time to time by resolution of the Board of Directors. Wherever in these Regulations there is reference to "unit owners" such term shall be intended to apply, as appropriate to the context, to the co-owner of any Condominium unit, to his tenants in residence, and to any guests, invitees or licensees of such co-owner or tenant of such co-owner. Council and the Board of Directors may delegate to the Management Agent where determined to be proper its authority to act on its behalf. The unit owners shall comply with all the rules and regulations here and hereinafter set forth, governing the buildings, drives, recreational areas, grounds, and parking areas (Unit, General Common Elements and Limited Common Elements) that the Board in its discretion may adopt. The unit owners agree that they, their families, tenants, guests, invitees and licensees will at all times observe all such rules and regulations. The failure by the Board to enforce a rule or regulation whether it is within these Rules and Regulations, or in the Bylaws, Declaration or Articles of Incorporation, shall not invalidate that rule or regulation or the document within which it was stated. These Rules and Regulation as created by the Board from time to time may be amended in accordance with applicable provisions of the Declaration and Bylaws of the Condominium and applicable statutes. Any conflict between these Rules and Regulations, the Master Deed, Bylaws and Articles of Incorporation, those documents shall supersede. These rules and regulations found here are in addition to any other provisions of the Master Deed, Bylaws and Articles of Incorporation Page 2 of 11

Page 3 of 11 Revised January 26, 2017 All Rules and Regulations found in this Handbook, as well as all provisions of the Declaration and Bylaws are subject to enforcement per Section 2 of these Rules and Regulations. The enforcement procedures comply with section 11-113 of the Maryland Horizontal Property Act. Communications with the Board or the Management Agent regarding the management of Shady Grove Village II Condominium and/or regarding actions of other unit owners must be sent in writing by letter, fax or email to the Management Agent s office. All such communications must include the correspondent s current address, phone number, fax number and email address, as may exist. Unit owners are responsible for the actions (violations) of their tenants. Notice of violations will be sent to the unit owners, it is the unit owner s responsibility to communicate the violation to their tenant. In accordance with the aforementioned provision, the Board of Directors has implemented policies to address the enforcement of regulations governing the condominium association. All guidelines and regulations will be strictly enforced without exception. Unit owners may obtain a complete copy of the Association s Covenants and Bylaws through the office of the Managing Agent at cost. Questions or clarification of the Governing Documents may be directed to the office of the Managing Agent or the Board of Directors. Unit owners are encouraged to attend the association s meetings; meeting dates can be found on the community website, www.sgv2.org. The time and location can be obtained from the Management Agent. The intention of these policies is to protect and better maintain the condominium association. The Board of Directors believes that with these regulations in place the overall appearance and value of the community will be improved. Cooperation from the association membership is expected and greatly appreciated SECTION 1 ARCHITECTURAL CONTROL Except for the original construction, and for proper maintenance and repair, it is prohibited to install, erect, attach, apply, paste, hinge, screw, nail, build, alter, remove or construct any lighting, shades, screens, awnings, patio covers, decorations, fences, aerials, antennas (subject to the Federal Communications Act of 1996), slabs, sidewalks, curbs, gutters, patios, porches, driveways, walls or to make any change or otherwise alter (including any alteration in color ) in any manner what so ever to exterior of any condominium unit or upon any of the common elements within the project until complete plans, and specifications, showing the location, nature, shape, height, material, color, type of construction and or any other proposed form of change (including, without limitation, any other information specified by the Board of Directors or it s designated committee)

Revised January 26, 2017 shall have been submitted to and approved in writing as to harmony of external design, color and location in relation to surrounding structures and topography by the Board of Directors, or by an Architectural Control Committee designated by it. Simply, no unit owner is allowed to change the color of woodwork, etc., shutters, fences, shed, windows, doors, roofs etc., including the limited common area {rear yard}) without approval from the Architectural Committee, by requesting an architectural change form. Failure to do so will subject the owner to a fine and possible correction by the Association and the cost of doing so to be paid by the unit owner. See Application for Architectural Change form. Only the original style shed is an acceptable replacement. SECTION 2 ENFORCEMENT Notice of Violation will be sent to the unit citing the noted infraction of any of the rules and guidelines listed in this document. A 30-day corrective period to cure the violations will be granted. A unit owner is encouraged to contact the Board or Management to discuss any alleged violations. Appeals of a violation notice can be made at any Board of Directors meeting. Failure to comply could subject the unit owner to a $100 fine. Additional $100 fines could be assessments to the unit owner s account each month until the infraction(s) have been cured. The Association through its Management Agent may choose to cure a violation after the initial corrective period. All costs associated with curing said infraction will be charged to the unit owner, plus the appropriate fines. If the violation presents a life or safety hazard to the community, the Association will exercise its right to immediately cure the infraction(s) on the unit owner s behalf. All costs associated with curing said infraction will be charged to the unit owner, plus the appropriate fines. Public drinking of alcohol, drug activity, littering and the disturbance of peaceful enjoyment by other residents on common grounds, is strictly prohibited at all times. Fines and including requiring a landlord to discontinue the lease of a tenant could be imposed. Fines may also be assessed if a written complaint is made or the police become involved in an incident. SECTION 3 PROPER DISPOSAL OF DEBRIS All unit owners are responsible for properly disposing of any debris accumulated from their unit. Household garbage MUST be disposed of on the designated service date. Should it become necessary for the Association to arrange removal services on behalf of the unit owner, charges according to the following could be assessed: Page 4 of 11

Revised January 26, 2017 - Debris removal fine in the amount of $100 plus all other applicable charges could be assessed to the unit (to the unit owner) receiving the service. - Removal service charges in the amount of $200 plus all other applicable charges could be assessed to the unit for disposal of hazardous materials such as paint or chemicals. - Construction debris should be removed from the property in a timely manner. The unit owner is responsible for arranging the removal of debris of this nature prior to the commencement of work. If construction debris remains on the premises for an extended period of time, a notice will be forwarded to the respective unit owner requesting removal within fifteen (15) days. In cases in non-compliance, the condominium will remove the debris and charge the unit owner the expense of doing so. If a unit owner anticipates the presence of construction debris on the property for an extended period, they must notify the Management office in writing to avoid the aforementioned penalties. - The city of Gaithersburg picks up bulk items on the first Wednesday of each month. You may place items which would not be normally picked up by the trash contractor and place them on the designated areas along School and Story Drives. The items must be placed on the grass strip between the street curb and the sidewalk. Please place your items in neat piles combining it with other piles of debris. If you have any questions on what types of items may be placed out or other items of concern on this matter, you should call Gaithersburg Department of Public Works at 301-258-6370. - For items which are not acceptable by the City of Gaithersburg or if you wish to dispose of items on other than the first Wednesday of each month, you may do so at the County s transfer station which is located at 16101 Frederick Road, which is the corner of Route 355 and Shady Grove Road. You may call them at 240-777-0311. 1. If infractions are repeated you could immediately be subjected to fine(s) without the 30 day notice and Management will remove the trash cans or debris and charge all expenses for doing such to the home owner(s). 2. Recycle bins may not be stored in sight (the front, side or rear) of the unit except on the scheduled pickup day. Failure to do so could subject the owner to a fine. 3. Your trash must be in trash cans with tight fitting lids at all times. This includes when the trash is placed out for pick up by the trash removal company. If this is not done you could be subject to a fine. 4. No trash cans are to be left in sight Friday thru Tuesday evenings (before 6 pm), failure to do so could subject the property owner to a fine of $100 and the removal of the trash can. Page 5 of 11

SECTION 4 COMMON AREAS AND LIMITED COMMON AREAS 1. No new plantings may be made on the common or limited common areas which will adversely affect the structures (units) or property of the Association or other Association members. The present unit owner(s) are responsible for any currently existing trees or shrubbery within the unit owner s limited common areas as to any damages or costs those planting may cause. 2. You must clean up after your animal(s) or you could be subject to a fine. 3. The Board does not endorse any playing in the parking lots by children or adults. Any damage to the property of others, including the Condominium Association is the responsibility of the unit owner from which the person(s) causing the damage resides or is visiting. Any activities on the parking areas, as with any common areas may not disturb other residents. 4. Any vehicle in any space must have current tags and be in good repair or the owner could be subject to a fine and/ or towing. 5. No Pods or trailers, boats, RV s or commercial vehicles are permitted to remain on the common areas overnight. To do so may subject the unit owner to a fine and/or immediate towing (removal). 6. Fences must be kept in good repair. When replacing a fence, it must be in the same style, height, etc., as existed in the original development, or the unit owner must submit for approval, of a different style or height. Please note if a six foot fence is approved, the rear light must be raised to one foot over the new rear fence height. The cost to do so is that of the unit owner making the request. Fences which are not 4 must have written approval of both neighbors. 7. Sheds must be maintained in good repair or replaced. The owner must submit an Architectural change request to the Architectural Committee for approval to replace the shed. Failure to maintain the shed could subject the owner to a fine and possible removal with costs by the Association. Only original style, including color, is acceptable. Existing plastic sheds are permitted to remain until repair is required, at such time, the shed must then be replaced as originally existed: in wood; 4 wide x 6 long x 8 high (at the peak); siding matching the house is permitted. A replacement shed as existed in the original development will be automatically approved, same color, etc. 8. You must keep you home in good repair, you cannot alter it, change the color(s) without permission from the Board. It is best to submit your chosen color(s) before having the work done. All exterior modifications must be submitted via the Association s architectural change request form or the owner could be subject to a fine and/or correction by the Association with costs. 9. At this time the Association has assumed the responsible for the light posts, light head and light sensor. The unit owner is responsible for providing the wiring and the electric power for the lights. Page 6 of 11

To maintain these lights the Association will be entering limited common areas (front and rear yards), without obtaining prior notice. Entrance will only be made during normal work hours. 10. If a homeowner or tenant parks in a visitor spot they will be warned once. Owners and tenants are not to park in visitor spots. Any repeat offenses are subject to an immediate tow and fine of $200 for each incident. A warning may be in the form of a sticker being placed on the vehicle. Residents may submit complaints against other residents for violations of this rule. 11. You may not make any repairs at all on automobiles on the common areas, except for changing a tire, if you do make any other repairs else you could be subject to an immediate fine. This could be a maximum of $200 plus all other costs associated with curing the violation (cleaning up spills, etc.) 12. Failure to pay your condo fee(s) or other assessments for a period of 2 months or more may result in the loss of your assigned parking spots. You will be subject to a fee of $200.00 for each space designation removed and $200.00 for each space designation replaced. During the time your unit numbers have been removed, your spots will have become unassigned spots and remain so until you bring your account current. 13. You must keep your patio in good repair and clean of debris. Failure to do so could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner 14. You cannot leave chairs, other household items, bikes, scooters or toys or any debris of any kind in your front yard overnight. Non-compliance could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner. 15. Open fire pits are not allowed. Failure to comply could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner. The regulations of the City and County Fire Departments govern the use of any outdoor flame or fire. Violations will also be reported to the fire department who have separate fines and penalties. 16. If you wish to make any structural changes to your limited common area you must submit an architectural change request to the Board or its designated committee. 17. Vehicles are not permitted to be parked in the yellow (no parking) areas. Violators subject to a fine and tow and the police may also be notified (who can also fine up to $250). 18. You must keep the handrails to your home in good order. Failure to do so could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner 19. You must maintain your doors, roof, windows, siding (entire exterior) of your home. Failure to do so could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner Page 7 of 11

20. Fruit and vegetable gardens are not permitted in the front or side of any unit. Failure to comply could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner 21. Nothing is permitted outside of the rear fences of any home. Failure to comply could subject you to a fine(s) and any cost incurred by the Association to correct will be assessed to the unit owner 22. Willful destruction of anything on the community property could result in an immediate fine and the cost to repair the vandalism. 23. No parties or loud groups are permitted from 10PM till 8AM in the morning, if you engage in this activity you could be subject to a fine(s), as well as the police being called. This is also City ordinance. SECTION 5 PET AND NUISANCE VIOLATIONS Proper pet care and supervision is also a requirement of the association s protective covenants. All pet owners are expected to exercise their pets with a leash at all times and to dispose of waste in the appropriate manner. Notice of warning will be forwarded to any unit owner failing to adhere to pet leash and disposal guidelines. A fine in the amount of $100.00 could be assessed to any unit owner failing to comply with this provision after the initial notice has been issued. Increasing amounts of fines can be determined by the Board of Directors for subsequent violations. No pet(s) may cause a nuisance to other residents. After a compliant is received by the Board, a hearing will be held to determine what if any actions the Board will take. The Board has the authority to fine or require the pet(s) to be removed from the property. The removal would only be enforced for extreme situations. Fines could be assessed for lesser violations. The maintenance, keeping, breeding, boarding or raising of animals, livestock, or poultry of any kind, regardless of number shall and is hereby prohibited within any condominium unit or upon any common elements, except that this shall not prohibit you from item number 1 of this section. SECTION 6 RENTAL UNITS Pursuant to Article X, Section 2 of the Bylaws, no portion of the condominium unit (other than the entire unit) shall be leased for any period. Simply stated, unit owners may not lease individual rooms or sections of their units for any length of time. This practice constitutes a residential zoning ordinance for Montgomery County and City of Gaithersburg. A minimum allowable lease is for 12 months. A current lease must be on file with the Management Agent for all leased units on the property within 30 days of the date of the unit being occupied by the new tenant and any renewal of any lease. Failure to comply will result in further action by the board. It should be noted that tenants leasing units on association property are required to adhere to all Bylaws and Covenants governing the Shady Grove Village II Condominium Association. This requirement of Page 8 of 11

compliance must be stated in all leases. The Board thereby has the authority to force termination of a lease. All units must be licensed by the City. SECTION 7 ASSESSEMENT AND COLLECTION POLICY 1. All installments of the annual assessments shall be due and payable on the first day of the applicable month; all special assessments shall be due as specified in the notice of special assessment. 2. All documents, correspondence and notices relating to the charges shall be mailed to the address which appears on the books of the Association or to such other address as is designated in writing by the Owner. Non-Resident Owners shall furnish the Board of Directors or the Management Agent with an address where mail shall be promptly received by the Owner. 3. Non-receipt of payment coupons, billing statements, or such other devices shall in no way relieve the Owner of the obligation to pay the amount due by the due date. SECTION 8 REMEDIES FOR NON-PAYMENT OF ASSESSMENTS 1. Any assessment which is not paid within fifteen (15) days of the due date shall be considered delinquent. The Association may, upon notice to the Owner, declare the entire balance of any annual general assessment or special assessment due and payable in full. 2. If payment of the total assessment or charges due, including special assessments, charges assessed, interest, and/or returned check charges are not received by the Managing Agent within fifteen (15) days of the due date, they shall be deemed late and a late charge of $15.00 shall automatically be added to any amount due and shall be part of the continuing lien for assessments, as provided for the Bylaws, until all sums due and owing shall have been paid in full. 3. The failure of any Owner to pay any assessment within thirty (30) days from the due date shall result in the assessment of an interest charge on the amount unpaid from the due date until the date of payment at the rate of eight (8%) percent per annum. 4. In any instance where a check is returned dishonored, a $25.00 returned check charge shall be assessed against the account of the Owner responsible for payment. 5. Any account which remains delinquent for more than sixty (60) days may be referred to legal counsel for collection. Pursuant to Article IX, Section 4, of the Bylaws, all attorney's fees incurred by the Unit Owners Association in connection with the collection of the delinquent account shall be assessed against the Owner's account. Counsel shall initiate appropriate legal action, which may include the filing of a lien and/or suit to collect all sums due the Condominium, and/or the initiation of a foreclosure on the lien. Page 9 of 11

9. Homeowners/residents are responsible for advising their visitors/guests about these restrictions, and to arrange for parking in non-assigned areas. Page 10 of 11 6. Failure to pay your condo fee(s) or other assessments for a period of 60 days or more may result in the loss of your assigned parking spots. You will be subject to a fee of $200.00 for each space designation removed and $200.00 for each designation replaced. During the time your unit numbers have been removed, your spots will have become unassigned spots and remain so until you bring your account current. 7. After an account becomes delinquent, payment received from an Owner will be credited in the following order of priority: i. Charges for attorney's fees and court costs; ii. Interest, late charges and returned check charges; iii. All other charges and fees incurred by the Condominium as a result of any violation by an Owner, his family, employees, agents, tenants or licensees. iv. Any and all special assessments; v. The regular monthly assessment. Guidelines for Reserve Parking SECTION 9 PARKING 1. Each housing shall be authorized two (2) parking spaces. 2. The Board shall cause numbers to be painted within each reserved parking space for the Board s use in assigning parking spaces. 3. The Board of Directors may revoke the reserve parking privileges of any owner who has a current Statement of Lien filed among the Land Records. All costs associated with the revoking of the parking privileges and reinstatement of the privileges will be assessed to the owner(s). 4. The Board shall have the authority to contract with a towing company to provide towing service for the Association. The name and telephone number of the contracted towing company will be posted as required on the condominium property and on the community website. 5. Homeowners/residents are responsible for notifying the towing company of unauthorized parking in their space only. Towing is optional at the discretion of the complaining homeowner/resident. 6. The towing company will require personal identification and signatures of each owner/resident before towing an illegally parked vehicle from an assigned space. 7. Violators are responsible for all towing fees. Towing is at the risk and expense of the violator. 8. The Board of Directors or its authorized representatives will not be held responsible for damage to towed vehicles that are parked in violation of these regulations.

10. The assignment of a reserved parking space does not give the owner/resident the right to violate any of the rules of regulations contained herein. General Parking Restrictions 1. All vehicles must be parked within a designated parking space. 2. Any designated parking space that has more than one (1) vehicle (automobile, truck) parked in the space will be subject to immediate towing. 3. Any vehicle which is double parked or blocking another vehicle in any other manner will be subject to immediate towing. 4. Any vehicle parked along a marked (yellow painted) fire lane will be subject to immediate towing. 5. Visitor spaces are for short term parking (not to exceed two weeks) by non-resident guests only. Beyond two weeks towing, fines may also be imposed. Visitor spaces are not for use of owners or their tenants, towing is enforced for violations. 6. You may not park in visitor spaces when a snow emergency is declared. Vehicles parked in visitor spaces during snow emergencies will be towed immediately without any notice. Page 11 of 11