Rules Committee, Exhibits

Exhibit 012

REV 12-12-01

SILVER FIRS PHASE II HOMEOWNERS ASSOCIATION

Design Review Violation Guidelines:

If a design review request was not submitted, the ACC shall have 6 months from the completion date to give written notice requiring compliance.  (According to CC&Rs Article 6 Section 5C).

The process for dealing with violations is outlined in the Neighborhood Rules & Guidelines and stated below:

The first written notice should include the violation, a 30 day period in which to comply, any potential penalties, and a method in which the homeowner may contact the property manager to discuss the violation.

If after the 30 day time period the violation has not been remedied or the property manager has not been contacted the issue will be taken to the board of directors at the next monthly board meeting.  The homeowner will be notified of this by certified mail and may attend to provide any additional information.  At that time the board of directors shall make a decision as to what action, if any, will be taken to remedy the violation.  Each case shall be judged on its individual merits, and any previous enforcement of the same or similar violations shall not be binding upon the board in its decision.

There are seven different letters.  The first three letters are considered violation letters.  The first letter requests that they submit a design review request (a form is attached).  The second letter, sent 30 days later, states that CWD has still not received a request and notifies them that they must call CWD within 15 days of receipt of the notice and if they don’t then the issue will be taken to the Board.  The third letter, sent 15 days after receipt of the second letter, states that the issue will be taken to the Board by a particular date and outlines penalties.

The last four letters are considered consequence letters.  The fourth letter, sent after the meeting by the Board states what action the Board will take (basically it suspends voting and assess fines).  The fifth letter, sent only when the violation is corrected, states what the fine is and where they can send payment.  The sixth letter, sent only when the violation was not corrected, states the fine of $300.00 and that the Board will enter the lot and correct the violation on a specific date (this is if the Board wants to do this).  The seventh letter is sent only after repairs were made and includes the total amount assessed to the lot.

If after all seven letters have been sent and the homeowner still has not paid the fines, The Board will decide to either lien the lot or turn it over to an attorney for collection.