DOVE VALLEY RANCH COMMUNITY ASSOCIATION ENFORCEMENT POLICY AND PROCEDURES

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1 DOVE VALLEY RANCH COMMUNITY ASSOCIATION ENFORCEMENT POLICY AND PROCEDURES REVISED January 15, 2015

2 DOVE VALLEY RANCH COMMUNITY ASSOCIATION ENFORCEMENT POLICY AND PROCEDURES A. AUTHORITY In accordance with Article 16.3 of the Declaration of Covenants, Conditions, Restrictions, Assessments, Charges, Servitudes, Liens, Reservations and Easements, as filed in Maricopa County Records on July 17, 1998, (CC&R s) for Dove Valley Ranch, a Master Planned Community, the Dove Valley Ranch Community Association (Association) is authorized to impose sanctions for violations of the CC&R s, Bylaws, Association Rules or Architectural Design Guidelines. B. STATEMENT OF POLICY It shall be the policy of the Association to fairly and impartially enforce the CC&R s, Bylaws, Rules and Architectural Design Guidelines and to impose sanctions for violations of these requirements. C. ASSESSMENT COLLECTION POLICY 1. In accordance with Article of the CC&R s any Assessment not paid within fifteen (15) days after the date of the Assessment shall be deemed delinquent. 2. Late Fee. Delinquent Assessments or installments of Assessments shall be subject to a late fee of $15.00 or 10% (ten percent) per annum of the Assessment or installment of an Assessment. The late fee will be charged on the 15 th day after the Assessment is due. 3. Interest. In addition to the late fee, an account with a delinquent Assessment shall bear interest on the full Assessment at a rate of twelve (12% percent per annum, which interest will be assessed monthly as long as the account remains delinquent. The interest will begin to be charged on the 15 th day after the Assessment is due. 4. When a check is returned NSF the homeowner s account will be billed $35.00 for each returned item. D. ASSESSMENT COLLECTION SCHEDULE 1. A written reminder will be sent to the property owner via regular mail after the delinquent date of that assessment period, which reminder will contain the Assessment levied against the unit and monetary penalties imposed. 2. A written demand letter will be sent to the property owner via certified mail, return receipt requested, and regular mail the 45 th day after the Assessment is due. 3. A lien will be recorded for the entire assessment on each account 60 days after the date the first Assessment becomes delinquent. The delinquent account shall also be assessed a lien fee in addition to all other applicable late fees and interest. The lien shall not be released until such time as the account is paid in full.

3 4. After the lien is recorded, should the account remain outstanding, the balance may be referred to an attorney or collection agency for collection, at the Association s discretion. The Owner shall be liable for all incidental costs, including attorney fees, associated with collection. 5. Payments will be applied to an account in the following sequence: a. Lien Fee and legal costs b. Interest c. Late charges d. Fines e. Past due assessments The Board of Directors shall not consider waiver of the late fees, lien fees, or attorney fees incurred on an account where the Assessment was not paid in accordance with the Assessment Collection Policy through no fault of the Association or its Agents. E. COMPLIANCE AND FINE POLICY At the January 15, 2015 Dove Valley Ranch Homeowners Association Meeting, the Board decided to clarify and modify the compliance policies regarding the Covenants, Conditions and Restrictions (CC&R s) and Design Guideline regulations. New guidelines are effective February 16, Many community members have requested a quicker and more concise response to violations of the CC&R and design guidelines. Consequently, the clarification was designed to reach quicker resolutions to violations. Specifically, the violations are divided into two distinct categories: those that are deemed less offensive to the greater community in general are Category A violations. Those violations that are seen to have greater overall community impact are classified as Category B violations. (See chart below) Category- A violations carry a $25 fine for each violation. Category B violations carry a $50 fine for each violation. 1 st violation of either category a warning letter is sent to the homeowner. The homeowner has 10 days to comply without penalty of fine. 2 nd violation of the same offense or 1 st violation has not been corrected-homeowner will be fined either $25 or $50 (depending upon the category of the violation). Homeowner will now be given 7 days to comply. Notification will be made via Certified Mail. Homeowner pays the cost of the letter. 3 rd violation of the same offense or compliance of 1 st violation has still not been realized-homeowner will be fined an additional $25 or $50 depending upon the category of the violation. Notification will be made via Certified Mail. Homeowner pays the cost of the letter. Homeowner has 7 days to comply. 4 th violation of the same offense or compliance of a previous violation has still not been realized- Homeowner will be fined an additional $25 or $50 depending upon the category of the violation. Notification will be made via Certified Mail. Homeowner pays the cost of the letter. In addition, the Board may engage legal counsel for injunctive relief. Homeowner has 7 days to comply. The homeowner will continue to be fined until the violation is corrected. The fines are cumulative. For egregious violations that cause sustained excessive disturbance to residents, or that cause a dangerous environment to occur that threatens the health and safety of other residents, an immediate fine

4 of $100 may be imposed upon the owner causing the violation, upon the approval of two members of the Board of Directors. The homeowner must appeal within 10 days from the date of the fine notice to the Board of Directors by notifying the Property Manager in writing of the nature and reason for the appeal. Failure to appeal within this timeframe will result in the fine remaining on the account until paid. For all standard Category A and Category B violations, the homeowner may appeal the matter directly to the Board of Directors by notifying the Property Manager in writing of the nature and reason for the appeal. The compliance records and account of each homeowner will be kept for two six-month periods in a given calendar year. Records and accounts will be valid from January 1 st until June 30 th. Beginning July 1 until December 31 st the homeowner begins the compliance account with a fresh start. This means that homeowners will be given a clean slate every 6 months. CATEGORY A VIOLATIONS-$25 fine per violation after 1 st warning -non-removal of trash can in proper timeframe -storage or placement of trash can in visible location -non-removal of dead trees, plants, shrubs, vines -appearance of weeds in front yard -lack of front yard or home maintenance -basketball hoop visible in front of home when not in use -display of holiday decorations prior to or after approved timeframes CATEGORY B VIOLATIONS-$50 fine per violation after 1 st warning -Vehicles parked in front/side landscape area and not on driveway or in garage -Homeowner or resident s commercial vehicle parked in driveway or street -Boat, trailer, recreational vehicle or oversized truck parked in driveway or street -Inoperable vehicle parked in driveway or street -Existence of unapproved architectural, landscape or home improvement items, structures, building materials or improvements F. RENTALS (Amendment approved April 16, 2015) 1. Section of the CC&R s allows Owners to rent the entire Dwelling Unit to a Single Family tenant from time to time. 2. Time to time shall be defined as anything thirty (30) days or more. 3. In accordance with relevant municipal ordinances that limit timeshare and short term rentals, leases shorter than thirty (30) days are prohibited and shall be deemed a Short Term Rental. 4. In addition to any other violations of the governing documents that may occur as a result of any Short Term Rental, the Board hereby declares all Short Term Rentals to be a nuisance as set forth in Section of the CC&R s 5. Furthermore, due to the potential incentive of an Owner to simply pay a fine and add the cost of the fine to the rental amount, the Board hereby declares Short Term Rentals to be an egregious violation (as defined in the Enforcement Policy and Procedures), and further authorizes the imposition of fines in excess of those delineated in the standard classification of violations set forth in the Enforcement Policy and Procedures. 6. The Board may impose a fine of up to $500 for the first violation. Additional violations shall result in fines of up to $1,000 per day.

5 7. Evidence that a Dwelling Unit is being utilized as a Short Term Rental may include, but not be limited to, advertising materials and/or verbal and written offers that provide for nightly, weekend, or weekly rental rates. G. APPEAL PROCESS 1. Any appeal shall be in writing and be received by the Board of Directors in care of the managing Agent. 2. The appeal shall be received no later than seven (7) days of the date of mailing of the third notification. 3. In the event a timely request for a hearing is received, the fine will be held in abeyance pending the hearing, although lack of success at the haring will result in all fines becoming due and payable. 4. Any appeal shall include all pertinent information and evidence to support the claim asserted by the appellant. 5. Any appeal, which does not meet the above requirements, shall not be heard by the Board and shall be considered DENIED. 6. All decisions of the Board of Directors of the Association are final and may not be further appealed. 7. Fines shall be collected in the same fashion as any other Assessment pursuant to the CC&R s and Arizona statutes.

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