Picasso Way Owners, Inc. at Lake Pointe. House. Rules

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Picasso Way Owners, Inc. at Lake Pointe House Rules

INTRODUCTION The following are the Rules and Regulations governing the conduct and operation of Picasso Way Owners, Inc., (herein PWO), Amended as of September 1, 2006. These are the only Rules and Regulations, which will be in existence. These Rules supercede any prior House Rules, including those at the end of the Proprietary Lease. ALL PRIOR HOUSE RULES ARE HEREBY REVOKED.

AMENDMENT TO RULES GOVERNING EXTERNAL PORTION OF THE COOPERATIVE No shareholder or other person shall install, replace, paint or otherwise alter the screen door at the entrance of his/her apartment without obtaining prior written Board approval. Such approval shall be solicitude by submitting, in writing, an application that must contain a detailed sketch of the proposed new door or alteration, inclusive of dimensions, color and all other relevant features. All screen doors must be dark brown, almond or white. It is the intention of the Board of Directors to grant such an application by a shareholder provided the proposed door or alteration takes into account the color requirement and is consistent in quality, style and all other respects with the screen doors presently existing at the Cooperative. This House Rule is intended to supplement the existing rules governing external portions of the Cooperative. All prior rules in the category shall remain in full force and effect. This amendment shall take effect September 1, 2006.

AMENDMENT TO RULES GOVERNING SALES AND LEASING SALES: In accordance with the Proprietary Lease and By-Laws of the Cooperative, no apartment may be sold until the proposed purchaser has been approved by the Board of Directors. Approval is solicited by obtaining an application from the Managing Agent and submitting it, together with the required supporting documentation, to the Admissions Committee. The application and all necessary information can be obtained from the Managing Agent. Upon receipt of a completed and acceptable application package, a personal interview will be scheduled between the prospective purchaser and the Admissions Committee. After an interview is conducted and all application materials are reviewed, the Board of Directors will decide whether on not to approve the purchase by the proposed buyer. All parties will be promptly notified of the Board s decision. A Cooperative transfer fee of $550.00 will be charged for each apartment sale. The transfer stamp fee is $.05 cents a share. This fee covers the expense of processing the application, inspection of the apartment, preparing closing documents and attending the closing. The transfer fee shall be payable at closing. In addition, no closing will be conducted unless all maintenance, late charges and any other charges are paid in full prior to the sale, or closing. Prior to each closing, an inspection of the subject apartment will be conducted for purposes of determining whether there are any existing violations of the Proprietary Lease. If any violations are found, except as otherwise provided in the House Rules, such violations must be cured prior to the closing, at the sole expense of the shareholder.

LEASING No application to sublease (rent) any apartment shall be accepted by the Board of Directors for a period of one year after the date the applicant purchases his or her shares. All subleases shall be written, made in a form acceptable to the Board of Directors. The term of all subleases shall be one year. All proposed rental situations and lessees (renter) must be approved in writing by the Board of Directors prior to the commencement of the sublease. Board approval shall be solicited by completing a written rental application, which will be provided by the Managing Agent. Upon receipt by the Managing Agent of the completed rental application, a copy of the proposed subleases and $300.00 administrative fee, the Managing Agent will schedule an interview between the proposed lessee and the Admissions Committee. After conducting the interview, reviewing the rental application and considering any other relevant circumstances, the Board of Directors will decide, whether or not to approve the proposed rental application. All parties will be promptly notified of the Board s decision. Applications to renew the existing sublease shall made to the Managing Agent no later than sixty (60) days prior to the termination of the sublease. An additional written application will not be required. Unless notified to the contrary by the Managing Agent, a personal interview will not be required. The application shall consist of the submission of a copy of either a new proposed sublease, together with a $50.00 administrative fee. The term of each subsequent sublease shall be for, at a maximum of 3 total years, one year, unless otherwise approved by the Board of Directors. The effective date of this amendment to the House Rules is October 1, 2006. Any sublease properly occupying an apartment in accordance with the term of the

Proprietary Lease, By Laws and House Rules existing at the time such sublease began, shall not be affected by this amendment. This amendment to the House Rules is intended to supercede the Sales and Leasing House Rules set forth on page 10 of the House Rules pamphlet. The prior House Rules concerning sales and leasing are hereby revoked.

PARKING & PARKING LOT USE Parking is permitted only within market stalls. Only properly registered and inspected vehicles are permitted within the cooperative lots. Parking of trucks, buses, etc., in excess of 5,000 lbs., unladen weight is prohibited except for immediate pickup and delivery. Overnight parking of rental vehicles is permitted with prior approval from the Managing Agent. Commercial vehicles may be parked in the designated portions of each court only. Repairs to vehicles which require more than two (2) days for completion are prohibited. Oil, gas, etc., may not be disposed of in the sewer/ drains in the parking lot. Violators are subject to the cooperative fine system. Violators are subject to towing instead of or in addition to the implementation of the fine system. The shareholder is responsible for towing and storing charges. No boats, regardless of size, may be stored upon the premises. The changing of oil in automobile engines on the premises is prohibited.

RULES GOVERNING INTERIOR PORTIONS OF APARTMENT No alterations may be made without prior written Board approval. Any alteration or addition started or completed prior to the adoption of these rules must be reported in writing to the Managing Agent. Upon discovering any alteration made or begun prior to the effective date of these rules and not reported to the Board, or any alteration made on or after the effective date of these rules, without Board approval, the Board will require that the shareholder remove the alteration at the shareholder s expense.

RULES GOVERNING EXTERNAL PORTION OF THE COOPERATIVE It is prohibited to hang garments, etc., from the windows or from any building or to string clotheslines or to use any portion of the premises for storage purposes. No fence, deck, gate or dog runs shall be erected without prior written Board approval. No shareholder or tenant shall paint the exterior surfaces of the windows, walls or doors. Sign posting of any kind, whether done inside or outside the unit, is prohibited. No alterations of common property shall be made, except with written Board approval. Without limiting the generality of the foregoing, this includes planting flowers and shrubbery, hanging items from the doors and windowsills and installing Christmas lights. THIS DOES NOT MEAN THAT THESE TYPES OF ALTERATIONS MAY NOT BE MADE. It only means that prior, written Board approval must be obtained. No written Board approval is required for plantings made prior to the effective date of these rules. The sizes and shape of balconies may not be altered. In passing upon requests to erect fences, etc., unless individual circumstances indicate otherwise, the Board will grant requests if conforming to previously announced policy set forth in Appendix B.

MAINTENANCE (RENT) All maintenance must be paid in full each month. In an event a partial payment is made a late fee will be imposed. Any account delinquent for sixty (60) days will AUTOMATICALLY be sent out for legal action. Any payment received after the 15 th of the month will be late and a late charge of $50.00 will be assessed. Any sums charged by the bank and/ or Managing Agent for dishonored checks shall be charged to the shareholder as additional maintenance.

REPAIRS AND SERVICES All non-emergency requests for repairs and services are to be called into Total Community Management. Upon receipt, the Managing Agent will investigate the request and take appropriate action. It must be borne in mind that in order for the maintenance or service to be performed, the shareholder making the request will have to be available to provide access to his / her apartment and information to the person making the repair. In addition, if service is requested for items of repair, which are the shareholder s responsibility, pursuant to the Proprietary lease, the shareholder will be informed, in advance, that he may be charged for the labor and materials provided. Each shareholder s maintenance responsibilities are set forth in paragraph 17 of the Proprietary Lease. Other questions, problems, etc., can be put to the Managing Agent directly by calling Total Community Management at (516) 826-9700. Emergency Service- In situations such as sewer back ups, severe leaks and any possible health and / or property endangering situations, shareholders are directed to call TCM during business hours at the above number and during weekends, holidays and evenings at 516-826-9700. The Managing Agent will see to it that the proper remedial action is taken.

PETS Pursuant to the House Rules of the cooperative, all dogs and cats are grandfathered into the cooperative as of October 1, 2006. The undersigned purchaser(s) of the shares and Proprietary Lease relative to Apartment No. at Picasso Way Owners, Inc., Middle Island, New York, hereby represent that they will not harbor or cause to be harbored upon the premises, nor will they bring or permit to be brought onto the premises, any dogs or cats, unless a request is made to the Board of Directors by mailing a letter to Total Community Management and approval is granted in writing by the Board of Directors. The undersigned further acknowledges that a breach of the above representation shall be considered a material breach and shall constitute a ground upon which the Board of Directors shall be authorized to terminate the Proprietary Lease which shall hereafter be assigned to, or executed by, the undersigned. Date: Signature Unit #

FINE SYSTEM Fines for violations of the House Rules shall be as follows: First Offense: Written Warning Second and Subsequent Offenses $250.00 Fine All fines shall be collected and payable as additional maintenance (i.e., subject to maintenance rules set forth herein) and must be paid in full each month. Repeat violators may be subject to legal action in addition to or instead of the implementation of a fine. GARBAGE VIOLATION - $250.00 Fine. You must call TCM if you need a special pick up. DOG WASTE VIOLATION - $250.00 Fine

SALES AND LEASING All proposed sales and leases must be submitted to the Admissions Committee for approval. Approval is solicited by completing an application package and submitting it, together with supporting documentation, to the Admissions Committee. The application and all necessary information can be obtained from the Managing Agent. No rental will be approved unless all maintenance payments for the subject unit are paid in full. The processing fee for a sale is $600.00. The fee for a sublet is a charge of $50.00 per month. The subject unit will be inspected for violations of the Proprietary lease prior to each sale and lease. No lease shall be for a term in excess of one year, with a total of three (3) years. No proposed purchaser or sublease will be approved without an interview with the Admissions Committee, which is scheduled through the Managing Agent.

APPENDIX B DECKS AND FENCES As a result of an extensive survey of the existing situation with respect to fences and decks, the Board of Directors has passed the following addition to the House Rules effective September 1, 2006. The specifications for fences are as follows and cannot exceed: SIZE: 6 feet high from the ground 15 feet depth from outer most wall of the building Width shall not exceed the length of the unit STYLE: Three styles of fencing are acceptable: T-111, Board on Board and stockade Color: The outside of the fence is to be painted regardless of whether treated lumber is used, with Benjamin Moore Tudor Brown color paint. DECKS: Decks are acceptable within the aforementioned width and length specifications, keeping in mind that any fence surrounding a deck is to be 6 feet in height from the ground, not the deck to the top rail. Prior to the time of closing on a unit, all non-conforming fences will be made to confirm to these specifications, at the Corporation s expense. It is the seller s responsibility to advise prospective buyers of this prior to signing a contract of sale of the unit.

Maintenance of the fence and/ or deck, as well as the area it surrounds, is the shareholder s responsibility. The above are guidelines that the Board of Directors will use to determine approval of a request by a shareholder to put up a fence and / or deck. BARBECUES Barbecues: I. With Wood Deck/Fencing: A. Per the letter from the Suffolk County Fire Marshal, all open flame cooking devices, propane tanks, flammable liquids, etc. may not be used or stored within 10 of any and all combustible building materials including, but not limited to, exterior wood decks/fences. This includes decks/fencing of neighboring units. B. Per the current house rules, the maximum foot print of any proposed personal space may not exceed 15 from the outside wall of the unit. C. Any and all propane and/or charcoal barbecues MUST conform to both the Fire Marshal s regulations as well as those set forth in the house rules. For example, if you have a wood deck or fence extending 10 from your unit, there is no feasible way for you to store, maintain, or otherwise operate a propane or charcoal barbecue on your premises as you would either be breaking the house rules or the Fire Marshal s regulations to do so. IT IS NOT PERMITTED TO USE A BARBECUE OF ANY TYPE ON COMMON GROUNDS FOR ANY REASON. II. Without Wood Deck/Fencing: A. Please refer to items A & B, above. B. Owners may submit a plan for board approval to extend a

non-combustible deck (concrete slab, pavers, etc.) to create an attractive addition that would allow a barbecue to be stored and operated in a manner compliant with both the Fire Marshal s regulations and the house rules. As with any alteration/expansion of personal space, plans and a brief description must be submitted to the board for approval before proceeding with the work. UPPER DECKS May only utilize an electric grill