Crestline Homeowners Association Rules & Regulations Revised and Distributed 5/1/2012 Parking Rules Revised 2/11/2014

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Rules & Regulations Revised and Distributed 5/1/2012 Parking Rules Revised 2/11/2014 INTRODUCTION is a residential development of 372 homes. The common grounds within the community consist of private streets, sidewalks and lighting, recreational facilities, greenbelts and building structures. All members of our community have an interest in preserving the common grounds and protecting property values. Towards this end and to enhance the quality of living, safety and general welfare of our members, residents and their guests, the following rules have been adopted by the Crestline Board of Directors. These rules are intended to mitigate hazards, preserve the common grounds, control nuisance, and maintain the appearance of the community. In developing these rules the Board strived to meet four (4) criteria; a rule must be necessary, enforceable through reasonable procedures, non-discriminatory, and must balance individual rights with community goals. The following rules are drawn to carry out these aims while respecting the rights of individual homeowners to enjoy their property and all the resources of the community. Each condominium owner is a member of the Association and owner participation is both necessary and encouraged. Resident responsibility, cooperation and action have many rewards. One is that the development continues to be a showcase long after all the homes are sold because the quality of the community is maintained and enhanced. Maintenance of property values is the primary goal. Aside from the fact that it is the primary goal, it is also a good motivator for many owners to follow the rules. If the uniform aesthetic character of the Association is maintained, all of the units will be worth more. All homeowners, residents and guests are required to abide by the established rules. Homeowners are also held responsible for the actions of their tenants, guests and other residents of the unit. Homeowners are obligated to provide a copy of these rules to their tenants. Anyone refusing to abide by these rules may face corrective action by the Board of Directors or the Association s Attorney. RULE I CONDUCT AND GENERAL 1) No alterations or modifications shall be made to the exterior of the buildings or common areas, including plantings, fences and signage without prior approval by the Architectural Committee or Board of Directors in accordance with Article X of the CC&R's and the Association's published architectural standards and guidelines. 2) All costs of correcting alterations, modifications and/or damage to Association buildings or common areas shall be charged to the responsible member. This includes tampering with irrigation heads, time clocks, Jacuzzi and pool equipment. 3) Residents shall not play, or permit to be played, any musical instrument or operate any television, radio, or stereo upon the premises in such a manner as to be disturbing or annoying to other occupants of the buildings during the hours of 10:00 p.m. and 8:00 a.m. Power tools may not be used between the hours of 10:00 p.m. to 8:00 a.m. No noxious or offensive trade or activity shall be permitted upon any Residence or any part of the Covered Property, nor shall anything be done thereon which may be, or may become, an annoyance or nuisance to the neighborhood, or which shall in any way interfere with the quiet enjoyment of each of the Owners of respective Residence, or which shall in any way increase the rate of insurance on any Residence or the Covered Property.

4) Barbecuing shall be limited to the resident's deck or patio area. The use of outdoor cooking or barbecue stoves shall be in accordance with standard rules of safety and fire protection considering the type of equipment used. The Association shall have the right to restrict or forbid the use of such equipment pursuant to the California Fire Code Section 308. 5) Unless otherwise authorized by the Board of Directors, parties and gatherings are not allowed on the exterior common areas. 6) No window shall be covered with aluminum foil, newspapers, sheets, or other materials not designed for use as a window cover. Commercial posters, flags, or banners may not be displayed on or in any Unit or Common Area within the community. 7) Littering in the common areas, including but not limited to beverage cans, bottles, cigarette butts, or trash is strictly prohibited. 8) Residents and their guests shall not leave items of personal property in the common areas. Material left in the common areas for twenty-four (24) hours shall be deemed abandoned and subject to disposal. The homeowner will be assessed for the cost of the disposal. 9) The Association shall not be responsible for articles intended for delivery to a resident, but left elsewhere within the community. 10) Weeds rubbish, debris, pet defecation, oil, newspapers or unsightly material of any kind shall not be placed, stored, or allowed to accumulate in the resident's carport, patio or balcony. This includes hanging items over balcony or railing, fences. Carports, balconies and patios must be kept in a neat and organized manner. 11) No one is allowed on any roof of any building (except for maintenance personnel). 12) Businesses that negatively affect the community, outwardly impact surrounding residences or conduct of which is patently evident to other community members are strictly prohibited. Day care centers, which comply with California Health & Safety code Section 1597.531 and the rules specific to day care centers are permissible, provided that they have submitted a copy of the license and insurance naming the Association as additionally insured. 13) No exterior clotheslines shall be erected or maintained and there shall be no outside drying or laundering of clothes on Association property or on the common area. 14) Trellises, plantings, or any other type of structure shall not exceed the height of the fence without obtaining prior approval from the Architectural Committee or the Board of Directors. 15) Window boxes, potted plants, or any similar type plants in containers shall not be placed on top of fences or balcony railings. Potted plants are permitted on decks and landings provided an appropriate saucer or spacer is placed under the plant to prevent water damage to the deck surface. 16) No sports, games or any activities are permitted on common areas that will damage vehicles, trees, lawns, sprinklers or buildings. This does not restrict reasonable activities on the common area. Skateboard ramps and basketball hoops are prohibited and will be removed from the common areas at cost to the owner. 17) No skateboarding or bicycling on the sidewalks or within carports. Acrobatics, crashing into curbs or plantings or any other type of activity that either causes damage to property or disturbs the peaceful enjoyment of one's property is not permitted. 2

18) No skateboarding or bicycling on the sidewalks or within carports. Acrobatics, crashing into curbs or plantings or any other type of activity that either causes damage to property or disturbs the peaceful enjoyment of one's property is not permitted. No skateboarding or bicycling is permitted without helmets and pads per California State Law. 19) Parents are fully responsible for the safety and welfare of their children. Knowing and intentional violation of these rules, by children, is considered by the Association to be willful misconduct within the meaning of the Civil Code Section 1714.1, which holds parents civilly liable for the damages caused by such conduct. 20) The owner of any vehicle causing damage to the common area buildings, landscape or other areas of the community will be assessed charges of any damages. 21) Holiday decorations and lighting may be displayed no more than thirty (30) days in advance and thirty (30) days following Nationally recognized holidays. Decorations and lighting may be displayed on the exterior of the units provided no damage is caused to the buildings and decorations do not prevent the Association from performing routine maintenance work. 22) Homeowners must obtain prior written approval from the Architectural Committee prior to changing entry and patio light fixtures. However no flood lights will be permitted. 3

RULE II ANIMALS AS PETS 1) The Association requires compliance by residents with Title 4 Division 1 of the Orange County Ordinances. This Ordinance requires the leashing of dogs and the licensing of all dogs. 2) No unit shall maintain more than three (3) un-caged animals (i.e., dogs and cats). Each unit shall comply with City and County ordinances as per total number of animals per household. 3) It is the responsibility of the resident, while walking their animals, to dispose of any animal defecation deposited in the common areas immediately. 4) Noisy animals, which are a nuisance to other residents, shall not be permitted. 5) Animal droppings, including those on patios, porches, and balconies must be immediately picked up and disposed of in a healthful, non-offensive manner. If complaints are received, an immediate hearing with the Board of Directors will be called to correct the health hazard. 6) The Association, acting through the Board of Directors, shall have the absolute right to prohibit any resident from keeping any animal on the premises, which constitutes, in the opinion of the Board, a nuisance to other residents. 7) Wild animals, livestock or poultry may not be kept on any property at any time. 8) Owners are responsible and liable for any personal injury or property damage caused by their pets. If the pet owner is a tenant, the owner of the unit may be held liable. 9) Pets may not be left unattended in garages or on balconies 4

RULE III RECREATION AREA REGULATIONS Recreation areas (pools, spas, community room and areas) hours are as follows: EVERY DAY: 8:00 AM to 10:00 PM NO EXCEPTIONS All pools are designated No Smoking. 1) Persons with cuts and wounds are not permitted in the pool or spa. 2) No person may enter any recreation area outside of the posted hours. Ingress and egress must be through the designated gates or entries. 3) Each condominium unit shall have no more than four (4) guests, at any time, in the recreation area without prior written permission and consent of the Board of Directors. 4) Guests must be accompanied by a resident host or hostess while using the recreational areas. 5) Owners are responsible for the actions of their tenants and/or guests and are liable for any damages incurred. 6) The giving of any keys (by gift or otherwise) required to gain access to the recreation areas to persons other than residents of Crestline is strictly forbidden. 7) Usual and customary swimming attire is required. 8) All bobby and hairpins must be removed before entering the pool or spa. 9) Ball playing, tag games, cannon-balling, running, or boisterous play of any kind is prohibited in the pool/spa/patio/recreation areas. 10) Playing games or diving in a manner which inhibits others from full use of the pool is prohibited. 11) When others are waiting, Jacuzzi use is limited to twenty (20) minutes. 12) No oils, eucalyptus leaves, soap, bubble bath or other foreign materials may be put in the Jacuzzi. Persons observed doing so will be assessed the cost of draining, cleaning, refilling and other costs incurred due to pool or spa damage. 13) No radios, stereos, or televisions are allowed in the recreation area unless earphones are used. 14) Residents and their guests are responsible for their own safety. The Association takes no responsibility for accidents or injuries. 15) The Association does not provide any type of lifeguard or supervisory service. Anyone using the recreational facilities shall do so at their own risk, responsibility and liability. 5

16) Unbreakable beverage containers are permitted in the recreational areas, but must be removed following use. Food, alcohol, glass, or breakable containers or utensils are prohibited in the pool/patio areas. This includes barbecues. 17) Towels should be placed over outdoor furniture for their protection when using suns tan lotions or sunscreens. 18) Rafts, surf mats, or floating devices are allowed in the pool so long as they do not unreasonably restrict the use of the pool by other swimmers. 19) Children under the age of fourteen (14) will not be permitted in the swimming pool/spa/patio/area/community center unless under the direct supervision of a person mature and physically able to provide for the child's safety, well-being and conduct. 20) Children still wearing diapers must wear some type of plastic pants. 21) Children, under 2 year of age, are not permitted in the spa for their health and safety. 22) The pool gates may not be left ajar or propped open, for any reason, at any time. 23) Pool safety equipment is to be used for emergency purposes only. 24) No private parties are allowed in any part of the pool area. 25) The pool areas are NOT included in the rental of the clubhouse. 26) Additional or replacement keys are available from the Association s property manager upon payment, made payable to, for $200 for the second key. 27) Animals are not allowed in the enclosed pool and spa area. 28) There are no lifeguards on duty at any time. 6

RULE IV RUBBISH AND DISPOSAL TRASH AREAS 1) All trash must be bagged and sealed prior to placement in dumpsters (bins) in order to keep areas as clean as possible. 2) Dumpster lids should be kept closed at all times. No trash shall be placed in dumpsters so as to protrude over top of bins, as Refuse Company will not empty dumpsters. 3) No hazardous material will be placed in the dumpsters or common area (this includes paint, motor or cooking oil, any kind of chemicals). 4) No building material, furniture, appliances, bed frames, mattresses or unflattened cartons shall be placed on or in the dumpsters. Please contact management 949-581-4988 for removal of these items. Boxes shall be broken down and placed in the dumpsters. Residents seen dumping these kinds of materials in the dumpsters are subject to a fine on the first offense of $150.00 in accordance with the fine policy. 5) Persons are expressly prohibited from playing, climbing on or in dumpsters. 6) Residents with individual trash pick-up will remove emptied trash containers within 24 hour after trash pickup. 7) Trash containers shall be kept within closed garages until 4:00 p.m. on the day prior to scheduled trash pick up, and shall be returned within 24 hours after pick-up. 8) Residents shall be responsible for being aware of delays in trash pick-up, schedule caused by Holidays. The following Holidays may delay trash pick-up: New Year's Day, Presidents Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas Day. 9) All newspapers should be removed from carports and in front of garages within 24 hours of delivery. 7

RULE V TRAFFIC, VEHICLES & PARKING Revised 4/30/2012 Revised 2/11/2014 1) The speed limit within Crestline is ten (10 MPH) miles per hour. 2) Vehicles must STOP at the posted stop signs. 3) Drivers are to remain alert for pedestrian traffic. 4) Vehicles must be parked in spaces designated for parking by appropriate lining. Failure to do so will result in towing of vehicle at the owner's expense. No vehicle may be parked in a fire lane. Fire Lanes include all red curbing, fronts of garages and carport entries. Vehicles parked in fire lanes are subject to immediate tow at the owner's expense. Vehicles attended by the driver and temporarily parked in front of their garage or carport for purpose of loading, unloading, or washing are permitted provided the driver is in attendance at all times. 5) Vehicle displaying permits or motorcycles parked in non-assigned parking spaces longer than seventy-two (72) hours will be deemed as stored and subject to being towed at the owner's expense, per California Vehicle Code 22658. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 6) Vehicles without valid vehicle license registration tags parked in non-assigned parking spaces will be considered either abandoned or being "stored" and will be subject to being towed at the owner's expense, per California Vehicle Code 22658. 7) Vehicles not fitting (too large) within the confines of garages, carports or designated open parking spaces are not permitted to be parked on the premises and will be subject to tow. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 8) No vehicles or boats shall be dismantled in the carports, garages or streets. Minor repairs in carports and garages may not exceed eight (8) hours. NOTE: After an oil change, oil must be disposed of per California Regulations. Vehicles leaking oil or fluids are not permitted to be parked in the common area. Vehicles that leak oil or fluids will be cited and are subjected to towing. 9) Inoperative vehicles shall not be parked or stored within any open parking area at any time. Any motor vehicle that is not in operating condition shall be removed from the common areas of the project promptly after the inoperable condition becomes known. Failure to do so within seventytwo (72) hours will result in vehicle being towed. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 10) Equipment may not be parked/stored in the common area without the prior written approval of the Board of Directors. This includes moving pods and trailers. 11) Boats, trucks, campers, trailers, recreation or commercial trucks, as defined in Section 8.05 of the CC&R s, are expressly prohibited from parking on the project. This does not preclude temporary parking, as defined in Section 8.05, Paragraph (e) of the CC&R's. Recreational vehicles are permitted for loading and unloading purposes only for a period not to exceed twenty-four (24) hours. 8

12) Commercial Vehicles registered with the HOA and displaying the proper HOA Commercial Vehicle parking passes are allowed. The Board of Directors may grant a variance in special circumstances where the vehicle is required for transportation to and from work. Vehicle owner must submit a letter on the letterhead of the company owning the vehicle, explaining that the vehicle is required for work and is the primary vehicle used by the resident to go to and from work. If the Board grants a variance the commercial vehicle will be safelisted and may be parked in the community provided that a valid Commercial Vehicle common area parking pass is displayed and the vehicle does not violate any other parking rule. 13) Storage in garages should not interfere with the space allocated for vehicles. 14) Homeowners with carports are responsible for keeping their carport floor clean, including immediate removal of grease and oil. 15) Vehicle or motorcycle engines shall not be excessively "gunned" or "revved" in a manner that is disturbing to nearby residents. 16) Sidewalks and grass areas are for foot traffic only. Operation or storage of skateboards, basketball hoops, scooters, bicycles, motorcycles, or any type of vehicle is not permitted on any sidewalk or landscape area. 17) No one is permitted to sleep or live in any vehicle in the common area. 18) Inasmuch as the Homeowners Association has limited liability to control the speed of traffic within Crestline, parents are strongly advised to instruct their children not to play in the streets. By permitting their children to play in the streets of Crestline, parents accept full responsibility for their safety and welfare and assume the risk of injury to their children insofar as any claim against the Association is concerned. 19) Any vehicle receiving three (3) citations, for the same violation, within a six month (180 day) period, will be subject to be towed at owner's expense. Garages, Carports and Storage 1) No Storage shall be permitted in a garage that prevents parking the number of vehicles per the garage s designed vehicle capacity. Homeowners with a one-car garage capacity must park one (1) vehicle in their garage. Homeowners with a two-car garage capacity must park at least one (1) vehicle in their garage. Homeowners with a two-car garage capacity and who own three (3) or more vehicles must park at least two (2) vehicles in their garage. All vehicles not in compliance of this regulation will be towed Without Notice and at the expense of the owner or person(s) having custody. New occupants shall be allowed two (2) months to unpack sufficiently to accommodate at least one car and a total of four (4) months to fully comply with this regulation. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 2) Garage doors shall remain closed except for entry and exit and while the owner is engaged in some activity in and about the garage. Owners may not leave their garage doors open, without obvious activity, for more than two (2) hours. 3) No storage is permitted in the carports, except within the individual storage lockers. 9

Open Parking 1) All vehicles parked in an open common area parking space shall display a current and valid parking permit between the hours of 12:01 AM and 6:00 AM. Parking permits must be affixed to the lower driver-side corner of the vehicle's rear windshield. Vehicles with tinted windows may affix the parking permit to the lower left hand corner on the front windshield. Vehicles not properly displaying an affixed current permit are subject to tow. Every home is entitled to one parking permit for parking in the common area open parking spaces. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 2) Additional permits may be issued, at the discretion of the Board of Directors, provided the resident complies with the following requirements: A. Submits to an inspection of carport or garage to demonstrate the resident is parking vehicles in carport or garage to the carports or garages designed capacity. Cost of inspection shall be borne by resident. B. Provide copies of current vehicle registration for all vehicles maintained within the Property. In addition, applicants must provide copies of all drivers licenses and proof of residency. Only vehicles owned by residents of the Unit will be eligible for parking permits. C. The number of vehicles maintained at the residence may not exceed the number of resident drivers by more than one. Motorcycles as designated by the California Motorcycle Handbook http://www.dmv.ca.gov/pubs/dl655/dl665mcycle.pdf that have current California registration to be driven on roadways within the State of California, and are registered to a Class M1 licensed rider will be counted as an eligible vehicle up to one - additional motorcycles are not eligible to be counted on any application for additional parking permits. D. The number of eligible vehicles maintained at the residence equals or is more than the number of parking spaces available to the household per the number of permits issued and garage or carport capacity of the Unit. E. As determined by the board, submit to annual inspection of carport or garage to demonstrate resident is continuing to park in carport or garage to their designed capacity. Cost of inspection shall be borne by resident. F. No more than two (2) additional permits will be issued per household. G. There will be a $250.00 fee for all replacement permits (for lost or stolen permits). H. Permits reported as lost or stolen will be immediately voided and will be invalid. Vehicles displaying permits reported as lost or stolen are subject to immediate tow without notice. 3) Residents may safelist guest vehicles for up to seventy-two (72) hours by contacting Nordic Security at (714) 751-0350. To safelist your vehicle for a period longer than seventy-two (72) hours you must contact Accell Property Management, Inc. 949-581-4988. Vehicles may not be safelisted more than seven (7) days in a thirty (30) day period. 4) Vehicles not safelisted or displaying an affixed current parking permit will be towed, at the owner s expense. One (1) citation will be given before a vehicle is towed if the license plate has never been cited and a photo will be taken of the citation on the windshield and the license plate. 10

5) Homeowners/residents may request their vehicle be safelisted, for a maximum of two (2) weeks per request, for vacations, business trips, medical emergencies and other special circumstances for which the homeowner or resident will not be available to move the vehicle. 6) Pursuant to Rule #1 above, all open parking requires a permit. A permit is no guarantee of a parking space. 11

RULE VI SIGNAGE RULES AND REGULATIONS 1) No more than two (2) For Sale signs per owner's unit. For Sale signs must be displayed at opposite ends of unit (no two signs displayed on same side of unit), for example, one (1) sign displayed in front window of unit and one (1) sign displayed in back window of unit. For Sale and Open House signs may be displayed in the landscape area immediately adjacent to the Unit's entry. No "For Sale" signs or signs of any type may be attached to the exterior of the unit or patio fence. 2) All signs must be removed at the time the home enters escrow. 3) Open House signs shall conform to the following guidelines: a) No flags, balloons, etc. will be allowed. b) One (1) non-generic Open House sign in front of unit. c) Only one (1) Open House sign will be permitted at each Crestline entrance. A maximum of four (4) green directional arrow signs are permitted, per open house. All signs are to be generic. d) All types of Open House signs shall go up and come down the same day. e) Only green and white generic signs, for Open House, conforming to standards as approved in the City of Laguna Hills are permitted. 4) All signs or billboards must be approved by the Architectural Committee or Board of Directors. Only approved signs are allowed in common area. a) Real Estate signs must conform to the Real Estate Signage Rules and Regulations. b) All other signs or billboards shall not be placed in any common area. 5) It is the Homeowner's responsibility to inform the Real Estate agent of these rules. 6) Signs for Garage Sales are allowed on Saturday and Sunday, during the hours of 6 a.m. and 5 p.m. (both days). Homeowners are allowed four (4) garage sales per year, one (1) per quarter, as follows: January, February and March - one (1) garage sale allowed during these months. April, May and June - one (1) garage sale allowed during these months. July, August and September - one (1) garage sale allowed during these months. October, November and December - one (1) garage sale allowed during these months. 12

RULE VII TELEVISION ANTENNA & SATELLITE DISHES 1) Unless approved, in writing, by the Board or the Architectural Committee, no exterior television antenna, radio antenna, citizens band antenna, ham radio antenna, earth receiving station, satellite dish or other similar electronic receiving or broadcasting device shall be placed or attached to any portion of the common area. 2) All satellite dishes are subject to removal after 30 days written notice if not installed properly or approval has not been obtained. Removal for labor and materials will be at homeowner s expense. 3). The following guidelines apply to requests for approval of a video or television antenna, including a satellite dish that has a diameter or diagonal measurement of thirty-six (36) inches or less: A. Applications for satellite dishes shall be submitted to the Architectural Committee through the Association s property manager: The application shall contain the following information: a. A sketch of the residence showing the location of the proposed satellite dish, in plan view and in elevation. b. Generally, devices shall be located so as not to be visible from streets. If the proposed location is visible from any street within Crestline, an explanation as to why the location is necessary shall be provided. c. A description of the size and color of the proposed device (with the manufacturer s brochure, if possible) and the manner in which it will be affixed or installed and where and how the lead-in cable will enter the structure. Cables shall be substantially hidden from view when mounted on the exterior of buildings. B. Generally, satellite dishes proposed to be mounted to the wood eaves of the building immediately adjacent to the applicant's home and with no more than six (6') feet of cabling exposed will be deemed acceptable by the Architectural Committee. All repairs to roof, fireplace, wood eaves or structure will be charged to the homeowner. C. To the extent that it does not significantly decrease efficiency or performance of the proposed antenna, the Architectural Committee may condition the approval of a device upon its being painted the same or a compatible color to the residence. D. The Architectural Committee shall promptly review the application and give its approval or disapproval within thirty (30) days of the submission of a fully completed application or the application shall be deemed to have been approved. E. All satellite dishes must be removed when: a. Replaced with another satellite company. b. Unit is sold c. Unit has a new renter that does not plan on using satellite dish or company. 13

RULE VIII ENFORCEMENT POLICIES AND PROCEDURES 1) "Fine", as used in the Enforcement Policies and Procedures, shall mean a monetary and/or nonmonetary penalty assessed against the homeowner for non-compliance with Crestline's CC&R's and/or Rules and Regulations. 2) In addition to a Fine, the homeowner may be held responsible for reasonable costs incurred in bringing about compliance and collection of any Fine. 3) Homeowner shall be held responsible monetarily for all costs of damages caused by the owner, owner s tenants or guests and invitees to the property of Crestline. 4) Homeowners are responsible for the actions of their children, tenants, guests and invitees. 5) The Association may also tow, at the owner's expense, any vehicle not complying with the CC&R's and/or Rules and Regulations. 6) Reports of violations shall be submitted, in writing, to the Property Management Company and/or the Board of Directors so action may be commenced to bring about compliance. 7) Homeowners, in violation, will be notified in writing about such violations (exception Vehicles & Parking Regulations and Rules). 8) Prior to levying any fine or penalty, the Association shall invite the homeowner to a hearing before the Association s Board of Directors. At the hearing, the homeowner will be entitled to present facts bearing upon non-compliance and any mitigating circumstances. 9) Persons electing not to appear at such a hearing will waive their opportunity to be heard. The Board shall then make their findings based on the evidence at hand. 10) Following a hearing, a written decision will be sent to the homeowner and shall include a statement of any Fines assessed. 11) The monetary Fine assessment for an initial violation shall not exceed $150.00. 12) For each repetition or continuation of non-compliance, a new and additional Fine assessment may be levied as follows: a) Second Violation Fine shall not exceed an additional $250.00. b) Third Violation Fine shall not exceed an additional $350.00. c) Fourth Violation Fine shall not exceed an additional $650.00. d) Subsequent violations may be levied a Fine of an amount not to exceed $650.00 each. Total Fines shall not exceed $5,000.00. 13) Should homeowner fail to pay the Fine assessments levied against him/her for non-compliance, or for monetary damages or corrections to Crestline property, the Association shall enact appropriate legal proceedings to recover such assessments or damages. 14) In addition to the Fine schedule noted above, non-monetary penalties may also be levied for violations of the Association s Rules & Regulations and governing documents. These may include the suspension of all rights of membership in the Association, including the right to vote and the right to use the recreational facilities. 14

RULE IX RENTAL REQUIREMENTS 1) All leases and/or rental agreements are subordinate to the CC&R s, Bylaws and other governing documents of the Association. The Association shall not function as a landlord in any capacity. 2) No short-term rentals of less than thirty (30) days are allowed (City Zoning Department and Association document restrictions). All leasing of units shall be exclusively for single-family use. Leasing for gainful occupation, profession, trade or other non-residential use is not permitted. 3) All owners must provide their tenant with a copy of the Rules and Regulations and all tenants must comply with these regulations, the Bylaws and CC&R s. Owners are held responsible for their tenants and guests and are financially liable for damage to the common area and equipment and for violations of the Rules and Regulations. See Renter s Rules and Regulations Receipt. 15

Renter s Rules and Regulations Receipt CRESTLINE HOMEOWNERS ASSOCIATION Owner s Name: Unit Address: Current Address: List renters names and work phone numbers: Name: Name: Name: List phone number(s) at the unit: Work Phone: Work Phone: Work Phone: Residence Phone: Residence Phone: We, the undersigned renters, have received a copy of the Crestline Homeowners Association Rules and Regulations and agree to comply with them. Signature: Date: Signature: Date: Signature: Date: Return form to: c/o Accell Property Management, Inc. 23046 Avenida de la Carlota, Suite 700 Laguna Hills, CA 92653 16

Owner s Name: Unit Address: Additional Parking Permit Request Form CRESTLINE HOMEOWNERS ASSOCIATION (Residents will be required to submit to a garage inspection prior to the issuance of any permits) Current Mailing Address: Owner's Phone List renters names and work phone numbers: Name: Name: Name: List phone number(s) at the unit: Work Phone: Work Phone: Work Phone: Residence Phone: Residence Phone: Owner's Signature: Date: If the parking permit is for a renter's vehicle this section must be signed We, the undersigned renters, have received a copy of the Rules and Regulations and agree to comply with them. Signature: Signature: Signature: Date: Date: Date: Vehicle Information (Please list all vehicles, provide copies of all licenses for drivers and registrations for all vehicles): 1) 2) 3) License Year Make Model Color Reason for requesting additional permit(s): Return form to: c/o Accell Property Management, Inc. 23046 Avenida de la Carlota, Suite 700 Laguna Hills, CA 92653 17