RICE RANCH HOMEOWNERS ASSOCIATION. Rules, Regulations & Document Packet

Transcription

1 RICE RANCH HOMEOWNERS ASSOCIATION Rules, Regulations & Document Packet 2015

2 RICE RANCH HOMEOWNERS ASSOCIATION 2015 ANNUAL POLICY STATEMENT In compliance with California Civil Code 5310 the association is providing the following disclosures to the members. 1) The Board of Directors has designated their management company to receive official communications on behalf of the association. Please send all communication to the following address: The Management Trust Goetz Manderley 2429 Professional Parkway, Suite 102 Santa Maria, CA Please see the enclosed association communication policy which provides detailed instructions on how owners must send documents and other communication to the association. 2) Pursuant to Civil Code 4040(b), an owner has the right to submit a secondary address to the association s management company for the purpose of receiving (1) annual reports the Association is required to provide and for (2) mailings and notices related to assessment payments, delinquencies and foreclosures at an additional address. 3) The Board of Directors has designated the following location for posting of a general notice to the members: No location was designated by the Board of Directors. Documents that are required to be delivered by a general notice method will be sent by an individual delivery method. 4) Pursuant to Civil Code 4045(b), upon receipt of a written request to the association s management company, an owner may receive General Notices by Individual Delivery. 5) In accordance with California Civil Code 4950 homeowners have the right to copies of the minutes of meetings of the Board of Directors excluding executive session minutes. Minutes of all Board of Directors meetings are kept on file at the office of the association s management company and will be made available within 30 days of a meeting. Minutes may be viewed or obtained during regular business hours, by giving reasonable notice, to the association s management company. The association may require reimbursement of the association s costs for making that distribution. 6) Pursuant to Civil Code 5730 the statement of assessment collection policies is included in this packet. 7) The association s policies and practices in enforcing lien rights or other legal remedies for default in the payment of assessments is included in this packet titled Assessment Delinquency Policy. 8) The association s discipline policy including a schedule of penalties for violations of the governing documents is included in this packet titled Discipline and Dispute Resolution Procedures.

3 9) A summary of dispute resolution procedures: Failure of a member of the association to comply with the alternative dispute resolution requirements of the Civil Code may result in the loss of the member s right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law. Members are also entitled to enact the Association's "Internal Dispute Resolution Procedure." If your association has approved an Internal Dispute Resolution Procedure, it is included in this packet. If your association has not approved an Internal Dispute Resolution Procedure, the association follows the Statutory Dispute Resolution Procedure as stated in Civil Code ) Pursuant to Civil Code 4765 the association has adopted an Architectural Review Procedure. This policy is included in this packet. 11) The mailing address for overnight payment of assessments is: Rice Ranch Homeowners Association c/o The Management Trust Goetz Manderley 2429 Professional Parkway, Suite 102 Santa Maria, CA 93455

4 RICE RANCH HOMEOWNERS ASSOCIATION COMMUNICATION AND DOCUMENT DELIVERY POLICY Unless otherwise authorized by the Board of Directors all communication and documents must be directed to the Association s management company. The management company is the agent to the Board of Directors and will process and forward all communication and documents to the proper parties. Owners must deliver all documents to the following address or call regarding association matters to the following phone number. The Management Trust Goetz Manderley 2429 Professional Parkway, Suite 102 Santa Maria, CA Phone (805) Fax (805) Methods of delivering documents or correspondence that are authorized by the Association: The following are acceptable methods for delivering documents (letters, architectural applications etc ) to the Association: 1) First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier. The document shall be addressed to the address above. 2) Personal delivery to the association s business address listed above during regular business hours. A written receipt will be provided upon request. Methods of delivering documents or correspondence that are not authorized by the Association: Due to the unreliable nature of , facsimile, and other electronic means of communication the Association has deemed these as unacceptable forms of communication. If an owner chooses to send documents or communication in this manner the Association will only accept them upon receipt. An acknowledgment that your document or correspondence was received will be sent to you. Owners sending documents or other communication should never assume that they are received by the intended party. Mail can be lost or delayed etc. Owners should contact their association manager to verify that correspondence or documents have been received.

5 PREFACE Rice Ranch Homeowners Association is a community where the welfare of one resident is closely related to the welfare of all. A deep sense of pride is being developed; pride in our new home and pride in working together as a community. There is an awareness that Rules and Regulations are for mutual good. To obey the rules is a mark of maturity, responsibility, and shows pride in our area. All rules contained in this booklet or by reference are binding upon all owners, tenants, lessees, and other residents as applicable. They are also binding on guests of owners and other residents. It is the owners' responsibility to inform their tenants of these rules and regulations. Violations of these rules and regulations by tenants will ultimately be assessed against the owner of the unit. Owners should ensure a copy of this booklet is given to all tenants. This is not intended to replace the Declaration of Covenants, Conditions and Restrictions of Rice Ranch as written and recorded on August 13, 2008 or any amendments recorded subsequently. The CC&Rs will take precedence in the event of any real or apparent contradiction between this document and the CC&Rs. There may be some items in the CC&R s that are not reflected in this document. All applicable references to the CC&R s are identified by the section number. Any policies adopted by the Board are indicated with the date of adoption.

6 RICE RANCH HOMEOWNERS ASSOCIATION INSURANCE DISCLOSURE In accordance with California Civil Code 5300(b)(9) the following insurance disclosure is provided: Agent: Arthur J. Gallagher, (425) General Liability Insurance: Insurer: American Insurance Co. Policy Limits: $2,000,000 aggregate, $1,000,000 per occurrence Deductible: None Renewal Date: 03/31/15 Directors and Officers Insurance: Insurer: National Union Fire Insurance Company Aggregate Limit: $1,000,000 Defense Cost Outside The Limit: $1,000,000 Retention: $1,000 Renewal Date: 03/31/15 Fidelity: Insurer: Hartford Policy Limits: $75,000 Deductible: $500 Renewal Date: 03/31/15 Property Insurance: Insurer: Fireman s Fund Insurance Company Policy Limits: $70,200 Deductible: $1,000 Renewal Date: 03/31/15 Automobile Liability: Insurer: American Insurance Co. (Non-owned, Hired, and Borrowed Autos Only) Liability Coverage Each Accident: $1,000,000 Hired Physical Damage: Included Deductible Comprehensive: $250 Deductible Collision: $500 Renewal Date: 03/31/15 Note: Terrorism Coverage (TRIA) is Included Also, please note the following: This summary of the association's policies of insurance provides only certain information, as required by 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the association's insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in the summary, the association's policies of insurance may not cover your property, including personal property, or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.

7 RICE RANCH HOMEOWNERS ASSOCIATION RULES AND REGULATIONS 1. Single Family Residence. (CC&R 2.1) The Residence shall be used as a dwelling for a single Family and for no other purpose. An Owner may rent his Lot or to a single Family provided that the Lot or Condominium is rented pursuant to a written lease or rental agreement subject to the provisions of the CC&Rs. Any failure by a tenant of a Lot or Condominium to comply with the provisions of this Master Declaration constitutes a default under the lease or rental agreement. 2. Business or Commercial Activity. (CC&R 2.2) No part of the Community may be used for any auctions or similar events, or for manufacturing, mercantile, storage, transient occupancy lodging (rental periods less than 30 continuous days), time shares, or other nonresidential purposes, or any business or trade. This Section does not preclude home-based businesses or trades, provided that all of the following apply: a. The business or trade complies with applicable law including zoning regulations b. Non-residential patrons, clientele or employees park their vehicles in the Owner s garage or driveway c. The activities are not apparent or detectable by sight, sound or odor from outside the boundaries of the Lot or Condominium d. The activity does not increase the Association s liability or casualty insurance obligation or premium e. The activity is consistent with the residential character of the Community and the CC&Rs f. The Owner or occupant does not erect, install, place, or maintain any signs, logos, billboards, or other advertising materials or devices on the Lot or Common Property to advertise the activity. 3. Nuisances. (CC&R 2.3) Noxious or offensive activities are prohibited in the Community. The Board is entitled to determine if any device, noise, odor, or activity constitutes a nuisance. Nuisance devices may not be kept or operated in the Community or exposed to the view of other Lots or Common area. Nuisance devices include the following: a. Horn, whistles, bells and other such sound devices (except security devices). b. Noisy or Smokey Vehicles, power equipment (except lawn mowers and other landscape items) c. Devices that create or emit loud noises or noxious odors. d. Construction or demolition waste containers e. Plants and seeds infected with noxious insects or plant diseases f. Any other item which may increase the rate of insurance of the project, cause cancellation of the insurance, obstruct or interfere with the rights of other owners, violate any law, or any other threat to health and safety. Nuisance activities may not be undertaken in the Community. Nuisance activities include the following: a. Hanging or drying or airing clothing, fabrics or unsightly articles in any place that is visible from other Lots, Common Area, or public streets

8 b. The creation of unreasonable levels of noise from parties, recorded music, radios, television or related devices, or live music performance c. Repair or maintenance of vehicles or mechanical equipment, except in a closed garage or rear yard screened from view by other Lots or Common Area d. Outdoor fires, except barbecue grills and fire pits designed and used in such a manner that they do not create a fire hazard e. Outdoor storage of bulk materials or waste except in temporary storage areas designated by the Committee. 4. Signs. (CC&R 2.4) No sign or advertising device shall be displayed in the Community or on any public street in or abutting the Community except for the following signs: a. One nameplate or address identification sign per lot. b. One sign per lot advising of the existence of security services protecting a Lot. c. One sign advertising the Lot for sale or lease; however such sign must comply with the Rules and Regulations and be of such colors and styles as are approved by the Design Review Committee rules. 5. Parking and Vehicular Restrictions. (CC&R 2.5) No vehicle may be parked in any manner that the Association determines will restrict the normal passage of pedestrians or vehicles over driveways, streets or sidewalks in the Community. No recreational vehicles (e.g., motor homes, travel trailers, etc.), commercial vehicles, buses, trailers, boats, or inoperable vehicles are allowed to be parked, stored, or kept in any public street in the community. General Restrictions. (CC&R 2.5.3) All vehicles owned or operated by or under the control of an Owner or a resident of an Owner s Lot and kept in the Community shall be parked in the Owner s garage or driveway. Each resident of the Community shall ensure that the garage accommodates at least two (2) Authorized Vehicles at all times. No maintenance or restoration of any vehicle may be conducted in the Community except in a garage when the garage door is closed, provided such activity is not undertaken as a business and provided that it does not constitute a nuisance. Guest Parking. (CC&R 2.5.5) Guest parking spaces are for guests and other invitees of residents only. No resident of the Community may park any vehicle in a guest space, except for temporary purposes where the vehicle is not parked in excess of thirty (30) minutes in any twenty-four (24) hour period. 6. Animal Regulations. (CC&R 2.6) Animals, such as dogs, cats, birds, or other customary household pets belonging to Owners, tenants, residents, or guests must be kept in the residence or in an enclosed yard. When outside an enclosed yard area, animals must be kept under control of a Person capable of controlling the animal on a leash. Each Owner shall be liable to each and all Owners and other residents and guests for damages or injuries caused by animals. Owners shall immediately remove any excrement or clean other unsanitary conditions caused by such Owner s animals on any portion of the Community. Pets are not allowed off-leash within the Open Space, except in the fenced dog park areas. 7. Satellite Dish/Antenna Policy (adopted April 7, 2010) Antennas or dishes with a diameter of 1 meter or less may be installed only if they conform to the following Rules:

9 Dishes can be installed anywhere on an owners Lot as long as the dish is not visible from the street or private driveway areas and is located in a way that has the least visual impact to the surrounding areas. Preferred location is facing rear yard of Lot. All wiring connecting the dish to the decoder/receiver must be done in a neat workmanlike manner so as to minimize intrusions through the walls and visible impact. Wiring color must match the color of the surface it is attached to or in front of. If a satisfactory signal cannot be obtained from the above-described area, a petition must be made to the Board or Architectural Committee, which will be evaluated on a case-by-case basis, to install the dish in some other manner. Permission granted to one owner does not constitute permission to another to install in such a manner. Consideration of other resident s views, safety issues, power lines, aesthetics of the installation, and interference with another s exclusive use areas shall all be considered prior to approval. Prior to granting approval, the Board reserves the right to petition other residents that may possibly be affected, to formally object to the installation. In all cases, professional installation is recommended. It is not the intent of these rules to hinder the ability of any owner to install a satellite dish. If any of these criteria cannot be reasonably met, the owner should submit a written request to the Board for approval of an installation that explains where and how the unit is to be installed. The Board shall make every attempt to provide a response within 14 days. 8. Trash. (CC&R 2.8) Trash must be stored in sanitary trashy containers. No trash containers may be left or stored outdoors. However, trash containers may be set out at curbside for a reasonable period of time on trash collection days (not to exceed twelve (12) hours before and after scheduled trash collection hours). Owners must store trash containers in the garage or in side yards not visible from the street until scheduled collection times. 9. Improvements. (CC&R 2.9) No Person may install outdoors in sight of any other Lot or Common Area any clotheslines, balcony, patio, or deck cover, trellises, wiring, air conditioning equipment, heating units, water softeners, swimming pools and other water features, hedges, walls, dog runs, fences and/or other exterior additions or alterations to any Residence. No swing sets or sports or play equipment, such as basketball standards, soccer nets and the like, may be left in front yard or in streets, driveways or sidewalks when not in use. No Person may paint any window or cover any window in foil or other reflective material. 10. No Liability. (CC&R 2.11) Neither the Declarant nor any Participating Builder nor the Master Association shall be liable or responsible for any damage that results from Improvements constructed or modified by an Owner (e.g., water leaks or structural damage caused by Ownerinstalled patio covers, trellises, or other Improvements attached to building exteriors.) Improvements should not be installed, constructed or modified without the assistance of qualified consultants. 11. Installation of Landscaping. (CC&R 2.17) Unless installed by the Participating Builder, each Owner shall complete the installation of landscaping on the front and rear yard areas not designated for maintenance by the Association in accordance with a plan approved by the Design Review Committee within six (6) months after the Close of Escrow. Each Owner shall obtain all permits necessary and shall comply with all requirements of the County.

10 12. Temporary Buildings. (CC&R 2.19) No outbuilding, tent, shack, shed or other temporary building or Improvement may be placed upon any portion of the Community either temporarily or permanently, without the prior written consent of the Design Review Committee or the County. No garage, carport, trailer, camper, motor home, recreation vehicle or other vehicle may be used as a residence in the Community. ARCHITECTURAL REVIEW PROCEDURES (adopted on June 24, 2009) In compliance with Civil Code 4765, in reviewing and approving or disapproving a proposed change, the association shall satisfy the following requirements: a) The association shall provide a fair, reasonable, and expeditious procedure for making its decision. The procedure shall be included in the association s governing documents and is located in Article V of the CC&R s. The procedure shall provide prompt deadlines. The procedure shall state the maximum time for response to an application or a request for reconsideration by the board of directors. The Committee must respond to the applicant within 45 days from submittal or the plans shall be deemed approved. An applicant has 45 days to request a re-consideration by the board of directors. b) A decision on a proposed change shall be made in good faith and may not be unreasonable, arbitrary, or capricious. c) A decision on a proposed change shall be consistent with any governing provision of law, including, but not limited to, the Fair Employment and Housing Act (Part 2.8 commencing with Section of Division 3 of Title 2 of the Government Code.) d) A decision on a proposed change shall be in writing. If a proposed change is disapproved, the written decision shall include both an explanation of why the proposed change is disapproved and a description of the procedure for reconsideration of the decision by the board of directors. e) If a proposed change is disapproved, the applicant is entitled to reconsideration by the board of directors of the association that made the decision, at an open meeting of the board. This paragraph does not require reconsideration of a decision that is made by the board of directors or a body that has the same membership as the board of directors, at a meeting that satisfies the requirements of Reconsideration by the board does not constitute dispute resolution within the meaning of RICE RANCH ASSESSMENT DELINQUENCY POLICY (adopted on June 24, 2009) 1. Prompt payment of assessments by all owners is critical to the financial health of the Association, to the enhancement of the property values of our homes and for the health, safety and welfare of the owners and tenants. Assessments are the lifeblood of the Association. Your Board of Directors takes very seriously its obligation under the Declaration of Covenants, Conditions and Restrictions (the CC&Rs ) and the California Civil Code to enforce the owner s obligation to pay assessments. The policies and practices outlined shall remain in effect until such time as they may be changed, modified, or amended by a duly-adopted resolution of the Board of Directors. Therefore, pursuant to the CC&Rs and Article 2 and 3 of Chapter 8 of the Civil Code, the following are the

11 Association s assessment practices and policies: 2. Assessments, late charges, interest and collection costs, including any attorneys fees, are the personal obligation of the owner of the property at the time the assessment or other sums are levied. (Civil Code 5650(a)) *In addition to the other costs of collection, the Association will assess a charge of $10.00 for each late statement sent to an owner that has a balance due to the Association. For every Pre-Collection Letter that is prepared and mailed a charge of $35.00 will be assessed to the owner s delinquent account. For every Pre-Lien Notice that is prepared and mailed a charge of $ will be assessed to the owner s delinquent account. These collection costs are in addition to late charges that the association assesses on delinquent accounts. These collection costs are charged to the owner s account to reimburse the Association in accordance with the Association s delinquency policy and Civil Code 5650(b). Any payments returned by the bank for Non-Sufficient Funds will incur a charge of $35.00 each. 3. Regular monthly assessments are due and payable on the first day of each month. All other assessments, including special assessments, are due and payable on the date specified by the Board in the Notice of Assessment, which date will not be less than 30 days after the date of notice of the special assessment. 4. Any payments made shall be first applied to assessments owed, and only after the assessments owed are paid in full shall such payments be applied to late charges, interest, and collection expenses, including attorneys fees, unless the owner indicates the payment is to be applied in a different manner, or the owner and the Association enter into an agreement providing for payments to be applied in a different manner. 5. Assessments not received within 15 days of the stated due date are delinquent and shall be subject to a late charge of $10.00 or 10% of the delinquent assessment, whichever is greater. 6. An interest charge at the rate of 12% per annum will be assessed against any outstanding balance, including delinquent assessments, late charges and costs of collection, which may include attorneys fees. Such interest charges shall accrue 30 days after the assessment becomes due and shall continue to be assessed each month until the account is brought current. 7. If a special assessment is payable in installments and an installment payment of that special assessment is delinquent for more than 30 days, at the option of the Association, all installments may be accelerated and the entire unpaid balance of the special assessment shall become immediately due and payable. The remaining balance shall be subject to a late charge, interest, and other charges as provided herein. 8. A first notice of past due assessments (an account statement or late letter) will be prepared and mailed after an assessment becomes delinquent. 9. If an assessment is not received within 30 days after the assessment becomes delinquent, the Association or its designee, in the event the account is turned over to a collection agent, will send a prelien letter to the owner as required by Civil Code 5740(b) (for liens that may record before January 1, 2003) or 5660 (for liens that may record on or after January 1, 2003), by certified and first class mail, to the owner s mailing address of record advising of the delinquent status of the account and impending collection action. The owner will be charged a fee for the pre-lien letter.

12 10. Prior to the recording of a lien, homeowners that are delinquent will be sent a pre-lien letter that will include an offer by the association to engage in informal dispute resolution upon receipt of a written request within thirty (30) days of the pre-lien letter, pursuant to the association s meet and confer program required by Article 2 (commencing with Section 5900) of Chapter 10 of the Civil Code. 11. If an owner fails to pay the amounts set forth in the pre-lien letter within 30 days of the date of that letter, the Association or its designee will record a lien for the amount of any delinquent assessments, late charges, interest and/or costs of collection, including attorneys fees, against the owner s property. The owner will be charged for the fees and costs of preparing and recording the lien. Thirty days following recordation of the lien, the lien may be enforced in any manner permitted by law, including, without limitation, judicial or non-judicial foreclosure. (Civil Code Sections 5673, 5675, 5700, 5705, 5710, 5715 and 5720) 12. If any owners, within 30 days from the date of recordation of the lien, pays to the Association, under protest, all amounts required by Civil Code 5650(b) (the amount of assessments, late charges, interest, all fees and costs to date of preparing and filing the lien, including attorneys fees of not more than $425.00), the owner may request resolution of the assessment dispute by Alternative Dispute Resolution as outlined in Civil Code 5925 through 5965, by civil action, or by other procedures available through the Association. 13. An owner is entitled to inspect the Association s accounting books and records to verify the amounts owed pursuant to Corporations Code In the event it is determined that the owner has paid the assessments on time, the owner will not be liable to pay the charges, interest, and costs of collection associated with collection of those assessments. 15. Any owner who is unable to pay assessments will be entitled to make a written request for a payment plan to be considered by the Board of Directors. An owner may also request to meet with the Board in executive session to discuss a payment plan. The Board will consider payment plan requests on a caseby-case basis and is under no obligation to grant payment plan requests. Generally the Board will accept a payment plan when a lien is already in place or when the owner agrees to allow a lien to be recorded against the owner s property and the payment plan requires payment in full (including all assessments, interest, late charges, costs of collection and attorneys fees) within 90 days. The payment plan should be in writing and signed by the owner. The Association or its collection agent may charge a fee for the monitoring of an approved payment plan. 16. Nothing herein limits or otherwise affects the Association s right to proceed in any lawful manner to collect any delinquent sums owed to the Association. 17. Prior to the release of any lien, or dismissal of any legal action, all assessments, late charges, interest, and costs of collection, including attorneys fees, must be paid in full to the Association. 18. All charges listed herein are subject to change upon thirty 30 days prior written notice. 19. The mailing address for overnight payment of assessments is: Rice Ranch Homeowners Association c/o The Management Trust - Goetz Manderley 2429 Professional Parkway, Suite 102 Santa Maria, CA 93455

13 20. The association may not foreclose unless delinquent assessments are greater than $1, or greater than one year in arrears. 21. Prior to commencing foreclosure, the association will offer to engage in informal dispute resolution upon receipt of a written request within thirty (30) days of the offer of such informal dispute resolution, pursuant to the association s meet and confer program required by Civil Code 5900 and will also offer to engage in formal alternative dispute resolution with a neutral third party pursuant to Civil Code 5925 through Prior to commencement of foreclosure, the Board of Directors will approve the foreclosure in executive session and note the approval in the regular minutes of the association without identification of the name of the individual. 23. All foreclosures shall be subject to a ninety (90) day right of redemption. 24. Owners are entitled to give the association a secondary address for both fiscal matters and collection matters. Fiscal second address notices may be served on the association by facsimile or first class mail. Collection second address notices must be served on the association in a way that shows that the association received it. (i.e., Fed Ex, certified, or registered mail.) The owner must state, in writing, what the second address is to be used for, i.e., fiscal or collection second address. NOTICE OF ASSESSMENT AND FORCLOSURE This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, You may wish to consult a lawyer if you dispute an assessment. ASSESSMENTS AND FORECLOSURE Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay association assessments may result in the loss of an owner s property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure, or without court action, often referred to as non-judicial foreclosure. For liens recorded on and after January 1, 2006, an association may not use judicial or non-judicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney s fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800.00). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800.00) or more than 12 months delinquent, an association may use judicial or non-judicial foreclosure subject to the conditions set forth in Article 3 (commencing with Section 5700) of Chapter 8 of Part 5 of Division 4 of the Civil Code. When using judicial or non-judicial foreclosure, the association records a lien on the owner s property. The owner s property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections 5700 through 5720 of the Civil Code, inclusive) In a judicial or non-judicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney s fees, late charges, and interest. The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common area damaged by a

14 member or a member s guests, if the governing documents provide for this. (Section 5725 of the Civil Code) The association must comply with the requirements of Article 2 (commencing with Section 5650) of Chapter 8 of Part 5 of Division 4 of the Civil Code when collecting delinquent assessments. If the association fails to follow these requirements, it may not record a lien on the owner s property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the association. (Section 5675 of the Civil Code) At least 30 days prior to recording a lien on an owner s separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the association s records to verify the debt. (Section 5660 of the Civil Code) If a lien is recorded against an owner s property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 5685 of the Civil Code) The collection practices of the association may be governed by state and federal laws regarding fair debt collection. Penalties can be imposed for debt collection practices that violate these laws. PAYMENTS When an owner makes a payment, the owner may request a receipt, and the association is required to provide it. On the receipt, the association must indicate the date of payment and the person who received it. The association must inform owners of a mailing address for overnight payments. (Section 5655 of the Civil Code) An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the association, including, but not limited to, an assessment, fine, penalty, late fee, collection cost, or monetary penalty imposed as a disciplinary measure, and by so doing, specifically reserve the right to contest the disputed charge or sum in court or otherwise. An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 2 (commencing with Section 5900) of Chapter 10 of Part 5 of Division 4 of the Civil Code. In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure. An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time. (Section 5685 of the Civil Code) MEETINGS AND PAYMENT PLANS An owner of a separate interest that is not a time-share interest may request the association to consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exists. (Section 5665 of the Civil Code)

15 The board must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment plans must conform with the payment plan standards of the association, if they exist. (Section 5665 of the Civil Code) APPROVAL AND ADOPTION All rules and regulations contained here in detail or by reference are hereby approved and adopted by a majority vote of the Board of Directors of Rice Ranch Homeowners Association. HEARING PROCEDURE AND FINES (adopted on June 24, 2009) 1. Notice and Hearing Procedures. The following notice and hearing procedures will be used whenever the Board meets to consider an alleged violation which could result in disciplinary action against a Member. a. Notice of Hearing. Notice of the hearing will be sent at least ten (10) days prior to the hearing and will be given either personally or by prepaid first-class mail to the most recent address shown in the Association s records. The notice shall contain, at a minimum, the date, time, and place of the meeting, the nature of the alleged violation for which a Member may be disciplined, and a statement that the Member has a right to attend and may address the Board at the meeting. b. Opportunity to Be Heard. Members have the right to send a letter, send a representative, or appear in person to present evidence as to why they should not be disciplined. Members also have the right to bring an attorney with them to advise them or to speak on their behalf. The hearing will be held in executive session unless the member requests otherwise. c. Rescheduled Meetings. Upon timely, written request and for worthy cause, an accused party may be granted a continuance to a new hearing date. In the event a person fails to appear for a hearing, the Board will review the evidence presented and make its decision accordingly. d. Correction of Violation. In the event the violation is corrected prior to the hearing date, the Board may, if appropriate, discontinue the proceedings. e. Notice of Decision. Within fifteen (15) days of the Board s decision, the Member will be given written notice of the decision. f. Conflicts of Interest. If members of the Board have a conflict of interest (i.e., they filed the complaint, or the complaint was filed against them) such persons may not vote on the issue. 2. Remedies for Enforcement. To enforce the governing documents, the Board may impose one or more of the remedies described below as it deems appropriate to be effective. The selection of one remedy does not preclude the Association s right to pursue others. a. Warning letters b. Monetary penalties c. Suspension of membership privileges d. Alternative dispute resolution (arbitration or mediation) e. Litigation

16 Failure to pay fines within thirty (30) days may result in legal action to collect the fines. If the Association is forced to retain an attorney to ensure compliance, collect fines, etc., the owner shall be liable for those attorney fees and all related expenses in addition to the fines. 3. Schedule of Penalties. Unless indicated otherwise, monetary penalties for violation will be as follows: First violation, warning or fine up to $50.00 depending on severity Second violation, same offense: $ Third violation, same offense: $ Additional violations, same offense: up to $ Continuing violations: fines will accrue at a rate determined by the Board until the violation is cured Failure to correct a violation in response to a warning letter may result in a single fine or continuing fines which may be imposed on a daily, weekly, or monthly basis as the Board determines to be appropriate to be effective. If the continuing violation is not cured by the time the fines accumulate to the maximum amount, the Association may elect to take legal action to cure the violation. The imposition of such fines shall be subject to the notice and hearing procedures. The suspensions and sanctions may be imposed singly and/or in such combination as the Board determines to be appropriate to be effective. The Association has the right to pursue one or more remedies simultaneously. The selection of one remedy does not preclude the Association s right to pursue others. Discipline and Dispute Resolution Procedures of Rice Ranch Homeowners Association (Adopted on June 24, 2009) In compliance with Articles 1, 2, 3 & 4 (commencing with Section 5850) of Chapter 10 of the California Civil Code the Board of Directors has adopted the Dispute Resolution Procedure below. The following procedures are intended to help resolve disputes between homeowners and the association in a fair, reasonable, expeditious and cordial manner. I. Discipline Procedure (Monetary Penalties, Suspension of voting rights, etc.) To enforce any alleged violation of the CC&Rs, Rules or other governing documents of the Association (except for the failure to pay assessments), the Board must give the owner written notice setting forth the nature of the alleged violation and the date, time and place of the Board hearing according to the following: (A) The notice of hearing must be sent to the owner by prepaid first class or registered United States mail (to the most recent address in the Association s records) or personally delivered at least ten (10) days before the hearing before the Board. (B) The written notice shall state that the owner has the right to attend the hearing and may address the Board at the hearing.

17 (C) The hearing shall be held in closed executive session of the Board, if requested by the owner. (D) Following the hearing, the Board must decide whether or not the owner should in fact be disciplined. The written notice of the decision and penalty or discipline must be sent to the owner by personal delivery or first-class mail within fifteen (15) days of the action by the Board. At any time the owner or the Association may invoke the following dispute resolution process, which may or may not affect the above discipline procedures. II. Dispute Resolution Procedures Please keep in mind that the following procedures do not replace the Alternative Dispute Resolution per Civil Code This law requires associations and owners to use mediation or arbitration under most circumstances before they are allowed to file a lawsuit. These procedures apply to a dispute between the association and a member involving their rights, duties, or liabilities under the Nonprofit Mutual Benefit Corporation, the CC&Rs or under the other governing documents of the association. A. Either party to a dispute, within the scope of the section listed above, may invoke the following procedure: (1) The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing. (2) A member of an association may refuse a request to meet and confer. The association may not refuse a request to meet and confer. (3) The association's board of directors shall designate one or more members of the board to meet and confer. (4) The parties shall meet within 30 days of receipt of the written request at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. (5) Only the member and the designated Board member(s) shall be allowed to meet on confer. No agents to either party or legal counsel will be allowed to participate in the meeting. (6) The Association may involve a neutral third party of its choosing to mediate the dispute. (7) A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board designee on behalf of the association. The written resolution shall state that the resolution is subject to ratification by the Board and is subject to review by the Association s legal counsel. B. An agreement reached under this section binds the parties and is judicially enforceable if both of the following conditions are satisfied:

18 (1) The agreement is not in conflict with law or the governing documents of the common interest development or association. (2) The agreement is either consistent with the authority granted by the board of directors to its designee or the agreement is ratified by the board of directors. C. A member of the association may not be charged a fee to participate in the process. III. Requirements Prior to Filing a Lawsuit In accordance with Article 3 (commencing with Section 5925) of Chapter 10 of the Civil Code the following are the requirements an owner must follow, as applicable, prior to filing a lawsuit or other proceeding: A. Definitions for terms used in this Section III. (1) "Alternative dispute resolution" means mediation, arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the decision making process. The form of alternative dispute resolution chosen pursuant to this article may be binding or nonbinding, with the voluntary consent of the parties. (2) "Enforcement action" means a civil action or proceeding, other than a cross-complaint, for: (a) enforcement of the Davis-Stirling Common Interest Development Act; (b) enforcement of the Nonprofit Mutual Benefit Corporation Law; (c) enforcement of the CC&Rs, rules and other governing documents of the Association. B. Filing enforcement actions (1) The Association or an owner may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to alternative dispute resolution as described below. (2) This section applies only to an enforcement action that is solely for declaratory, injunctive, or writ relief, or for that relief in conjunction with a claim for monetary damages not in excess of five thousand dollars ($5,000.00). (3) This section does not apply to a small claims action and assessment disputes. C. Request for Resolution (1) Any party to a dispute may initiate the process by serving on all other parties to the dispute a Request for Resolution. The Request for Resolution shall include: (a) a brief description of the dispute between the parties; (b) a request for alternative dispute resolution; (c) a notice that the party receiving the Request for Resolution is required to respond within 30 days of receipt or the request will be deemed rejected;

19 (d) if the party on whom the request is served is the owner of a separate interest, a copy 5925 through 5965 of the Civil Code. (2) Service of the Request for Resolution shall be by personal delivery, first-class mail, express mail, facsimile transmission, or other means reasonably calculated to provide the party on whom the request is served actual notice of the request. (3) A party on whom a Request for Resolution is served has 30 days following service to accept or reject the request. If a party does not accept the request within that period, the request is deemed rejected by the party. D. Timeline for completion, Inadmissibility in Court, Costs (1) If the party on whom a Request for Resolution is served accepts the request, the parties shall complete the alternative dispute resolution within 90 days after the party initiating the request receives the acceptance, unless this period is extended by written stipulation signed by both parties. (2) Evidence obtained through mediation shall be inadmissible in court (3) The costs of the alternative dispute resolution shall be borne by the parties. E. Tolling of statute of limitations If a Request for Resolution is served before the end of the applicable time limitation for commencing an enforcement action, the time limitation may be tolled during this process. F. Certificates filed with initial pleading (1) At the time of commencement of an enforcement action, the party commencing the action shall file with the initial pleading a certificate stating that one or more of the following conditions is satisfied: (a) alternative dispute resolution has been completed in compliance with this article; (b) one of the other parties to the dispute did not accept the terms offered for alternative dispute resolution; (c) preliminary or temporary injunctive relief is necessary. (2) Failure to file a certificate pursuant to subdivision (a) is grounds for a demurrer or a motion to strike unless the court finds that dismissal of the action for failure to comply with this procedure would result in substantial prejudice to one of the parties. (3) The costs of the alternative dispute resolution shall be borne by the parties. G. Award of fees and costs In an enforcement action in which fees and costs may be awarded pursuant to Civil Code 5975(c), the court, in determining the amount of the award, may consider whether a party's refusal to participate in alternative dispute resolution before commencement of the action was reasonable.

20 ALTERNATIVE DISPUTE RESOLUTION In accordance with California Civil Code 5965 as required, the following summary is provided: Associations and their members are required to pursue Dispute Resolution prior to filing in civil court. Failure by any member of the association to comply with alternative dispute resolution requirements of 5930 of the Civil Code may result in the loss of your right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law.

21 a) Submittal Checklist SUBMITTAL CHECKLIST RICE RANCH HOMEOWNERS ASSOCIATION DESIGN REVIEW COMMITTEE (DRC) APPLICATION (Owner to Complete) This checklist must be completed by Owner and be attached to the DRC Application. Failure to complete and include this checklist constitutes an incomplete submittal. The DRC will return all incomplete submittals without review. PART I - ALL IMPROVEMENTS This part lists the submittal requirements for All Improvements that must be included with any and all submittal requests. Completed ARC Application Form Exhibit A (2 pages) Submittal Checklist Plot Plan 2 sets Signed Neighbor Awareness Form As It Applies To Common or Lot Line Improvements Exhibit B PART II - LANDSCAPE IMPROVEMENTS This part must be completed by all applicants for Improvements involving all landscaping in any yard (i.e.: plant material, hardscape, spa or pool, fences and walls). Part I submittal requirements Landscape Plan (may be included on plot plan) PART III - EXTERIOR IMPROVEMENTS This part must be completed for exterior alterations including room additions, trellis and sunshades, gazebos, balcony, window and door treatment and exterior color or material changes. Part I submittal requirements Exterior Elevations Floor plans (in the case of detached structures such as gazebos, floor plans may be included on the plot plan). PART IV - SPACE IMPROVEMENTS This part must be completed for space Improvements such as room additions, large decks and room conversions affecting exterior appearance of the Dwelling Unit. Part I submittal requirements Exterior Elevations Floor Plans (may be included on plot plan) Building Section(s) Roof Plan