Liberty Woodlands Homeowners Association Enforcement Rules, Regulations, and Fine Schedule Adopted February 1, 2017

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Liberty Woodlands Homeowners Association Enforcement Rules, Regulations, and Fine Schedule Adopted February 1, 2017 The following Enforcement Rules, Regulations, and Fine Schedule for the Liberty Woodlands Homeowners Association have been adopted by the Board of Trustees, pursuant to the authority granted to the Association in RCW 64.38.020(11). The following Rules are designed to ensure that each of us achieves the maximum enjoyment of our homes and property. Each member of the community, whether owner, tenant, or guest needs to abide by the standards of the community and comply with the Amended Declaration of Covenants, Restrictions, and Conditions, (known hereafter as the Declaration), the By- Laws, Design Standards and Policies and Rules of the Association. These Rules enhance the process by which the governing documents will be enforced to promote the harmony and cooperative purpose of the community and our quality of life, and protect the value and marketability of all our homes and property. Each owner is fully responsible for the conduct and the compliance by their family members, guests, tenants and other occupant of the owner s property while they are in the community. Under the statute cited above, the Association may levy fines for violations of the Declaration, Bylaws, Design Standards, Policies, or Rules of the Association. Under the Declaration, the Board, on behalf of the Association, or any Owner has the right to enforce the terms of the Declaration. Dues and Assessments: The Association will not accept non-payment or late payments of Assessments. As provided in the Declaration: 1. If Assessments are not paid and received by the Board Treasurer within 30 days after the dues date, interest will accrue at the rate of 10% per annum from the date due until paid. 2. If legal action to collect past due Assessments is begun, the Owner will be responsible for payment of attorney fees and costs incurred by the Association. 3. The rights to vote or use common areas may be suspended for so long as default in payment of Assessments continues. A fee of $40.00 will be charged on returned checks. Any payment which does not cover all the amounts due, will be applied first to attorney fees and costs, then to late and returned check fees, then to interest and finally to Assessments. Any Owner unable to pay Assessments should contact the President or the Treasurer of the Association as soon as possible to work out a payment plan. The Board, in appropriate circumstances, may waive late fees and interest and provide an alternate payment schedule for Assessments and other charges. Assessment accounts more than 30 days past due may result in the Association engaging an attorney or collection agency to collect the debt. The Owner will be responsible for all attorney fees and costs incurred by the Association. Assessment accounts more than 60 days past due may result in filing of Notice of Assessment Lien. The Owner will be responsible for all costs of preparation and recording of the Notice.

Assessment accounts more than 90 days past due may result in filing a legal action to collect sums due. The Owner will be responsible for all attorney fees and costs incurred by the Association and may be subject to garnishment, foreclosure and other collection procedures. Nonpayment of assessments may result in foreclosure of your property. No homestead exemption will be available in the foreclosure action. Violations of the Declaration and Association Governing Documents: A. Complaints Complaints for violations of Declaration, Bylaws or rules of the Association ("violation") may be initiated by the Board on its own initiative, or in response to a complaint from an Owner. Violations may be reported to any member of the Board, by mail or e-mail, and must identify the complaining Owner, and contain a brief description of the alleged violation, including the Owner alleged to be in violation and relevant dates. These reports must be based on first-hand knowledge of the person making the complaint. The Board will endeavor to respond within 30 days of the complaint. B. Investigation, Notice of Violation Upon receipt of any complaint alleging a violation, the Board will investigate. If investigation results in a finding that no violation has occurred, or if the Board declines to pursue enforcement for good cause, the Board will take no further action, except notifying the complaining Owner of the decision. If investigation results in a finding a violation may have occurred, or in the case of a complaint initiated by the Board, the Board will send a Notice of Violation to the Owner. The Notice of Violation will state the name and address of the Owner allegedly in violation, describe the violation, state with reasonable particularity the action deemed necessary to correct the violation, and state a deadline for correction of the violation. The deadline may not be less than 10 days, but the Board may set a longer deadline, if reasonable under the circumstances. In determining a reasonable deadline, the Board will consider the nature of the violation, the circumstances of the Owner and the property, and the action required to correct the violation. The Notice of Violation will also inform the Owner of the fines and suspension of rights authorized to be imposed and inform the Owner of the right to request a hearing to contest the validity of the Notice of Violation, and of right of the Board to take legal action if the Owner fails to timely correct violations specified in the Notice of Violation. C. Right to Hearing An Owner may contest the validity of a Notice of Violation, or the imposition of fines for failure to correct violations specified in the Notice of Violation. An Owner receiving a Notice of Violation may request a hearing before the Board to offer a defense to, or to offer extenuating circumstances regarding the alleged violation or imposition of fines. The request for hearing, must be mailed or delivered to the President of the Board within 30 days after the date of the Board's Notice of Violation, and must contain a copy of the Notice of Violation, describe the basis for defense to the violation, include copies of all supporting documentation, and identify any witnesses expected to testify at the hearing. The Board will send confirmation of receipt of the request for hearing, which will also set a time and place for the hearing no sooner than 15 days or later than 45 days after the date of the request for hearing. The hearing will be held in Okanagan County, Washington unless the Board and all affected Owners consent to another location. The hearing may be held by conference call if the Board and all affected Owners

consent. The hearing will be heard by the Board, or if the notice of violation was initiated by the Board, the Board will appoint and assemble a minimum of two disinterested members of the Association who are not Officers or Directors to act with the Board at the hearing. The Owner will have up to thirty minutes to present a defense and provide reasons why the Notice of Violation was not valid, or why any fine or other penalty should be waived, reduced, or cancelled. The Board may continue the hearing to conduct further investigation. The concurrence of a majority of the hearing panel will be required to render a decision. The Board will notify the Owner of the decision on the hearing no later than 7 days after conclusion of the hearing. The notice of decision will state any fines, costs, and fees due. Fines, costs and fees are payable within 60 days after the notice of decision. Imposition of fines or other penalties will be stayed pending the outcome of the hearing, but if the decision of the Board is adverse to the Owner, fines may be imposed beginning as of the deadline for cure stated in the Notice of Violation. Appeals of Board decisions may be made to state courts sitting in Okanagan, Washington, and will be valid only if commenced (i) after exhausting remedies under this rule and (ii) within 30 days after the notice of decision. D. Enforcement The determination of an Owner s satisfactory cure of a violation will be in the sole and exclusive judgment of the Board. If the Owner does not request a hearing and fails or refuses to cure a violation within the time allowed, the Board may determine an appropriate enforcement action where more than one option is available. Without limiting any other available remedy, the Board may initiate legal action to collect damages or to require the Owner to cure the violation, assess fines against the Owner according to the Fine Schedule below, and/or suspend the Owner's rights to vote or use Common Area for up to 90 days. Fines may continue to accrue while a hearing or legal action is in process. If the Board employs an attorney to assist with enforcement, the Owner will be responsible for payment of attorney fees and costs incurred, even if no action is started. In any action, lawsuit, or other proceeding brought to enforce the Declaration, Bylaws, Design Guidelines, Policies or Rules of the Association, the prevailing party may recover reasonable attorney fees and costs incurred Fine Schedule RCW 64.38.020(11), (See below), provides that an Association may levy reasonable fines in accordance with a previously established schedule adopted by the Board and provided to the owners for violations of the governing documents of the Association. The Board establishes the following Fine Schedule for Violations of the Declaration, Bylaws, or rules of the Association: Plans Not Submitted: A fine of up to $5000 will be imposed on any Owner that begins any construction, alteration, addition, refurbishing, or erection on a Lot (including any exterior remodel to an existing improvement, or change in exterior colors) without prior approval by the Architectural Review Committee. This fine may be imposed even if plans are subsequently submitted and approved. Construction Not in Compliance with Approved Plans: A fine of $100 per day will be imposed for construction not in compliance with plans approved by the Architectural Review Committee, from the date of Notice of Violation to the date the violation is cured, provided however, if the noncompliance is remedied by the deadline stated in the Notice of Violation, the fine will be waived.

Other Violations: o First violation not cured by the Notice of Violation cure deadline - $50. o Second similar violation in a 12-month period, - $250. o Third and subsequent similar violation in a 12-month period - $500. o If a violation is not cured within 30 days after the Notice of Violation cure deadline, a second fine of $250 will be assessed. Thereafter, a $500 fine will be assessed each succeeding 30 days until the violation is cured. Fees and Costs: All attorney fees and costs incurred by the Association in connection with any violation or collection of a fine will be considered a part of the fine and must be paid by the Owner in order to cure the violation. All fines which are not paid when due will be the personal obligation of the Owner, and may be enforced and foreclosed upon in the same fashion as a debt. ADOPTED by the Board of Directors at a meeting held on date first set forth above, to be effective upon mailing to the Members. Certificate of Mailing I HEREBY CERTIFY that I am the President of the Liberty Woodlands Homeowners Association and that on the 1st day of February 2017, I caused to be mailed a true and correct copy of the foregoing Enforcement Rules and Fine Schedule to each Member of the Association at their respective last known address. Mary Ann Bailey, Director

RESOLUTION of the Board of Directors of Liberty Woodlands Homeowners Association WHEREAS, the Board of Directors ("Board") of Liberty Woodlands Homeowners Association ("Association") wishes to adopt and enact Enforcement Rules and Fine Schedule in the form attached, to establish procedures and fines to be applied in cases of enforcement of the provisions of the Amended Declaration of Covenants, Restrictions, and Conditions, and Articles, Policies and Bylaws of the Association BE IT RESOLVED by the Board: That pursuant to the authority granted to the Association in RCW 64.38.020(11), the Enforcement Rules and Fine Schedule in the form attached are hereby adopted. Adopted by the Board on February 1, 2017, to be effective upon mailing of the Enforcement Rules and Regulations and Fine Schedule to the Members. Mary Ann Bailey, Director Deb McLaughlin, Director Bryan Burpee, Director Tony Basco, Director