NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION

Transcription

1 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION October 30, 2017 Dear Homeowner: Enclosed is a copy of the Niguel Beach Terrace Condominium Association s 2017/2018 Adopted Pro Forma Operating Budget. The monthly assessments will be increased 20% effective December 1, Please refer to the enclosed fiscal assessment ledger. The Board is currently working on a new reserve study. Once it is complete and approved by the board, the membership will receive a copy. The name and address of the person designated by the Association to receive official communications to the association is as follows: Niguel Beach Terrace Condominium Association Attn: Christine Richards CRSA Management, Inc West Coast Highway, Suite 200 Newport Beach, CA The Association does not agree to receive official communications via , facsimile, or other electronic means. You must deliver to the Association, if any, official communications by personal delivery or first-class mail (postage pre-paid), registered or certified mail, express mail, or overnight delivery. If you would like to receive notices from the Association to an address different from the mailing address we have for you, please provide the secondary address to the Association in writing. The location for posting of the general notices in the community is located at the Niguel Beach Terrace Condominium Association clubhouse door located at Selva Road, Dana Point, CA, Please note that you have a right to receive individual delivery of posted notices. If you would like to receive the posted notice by individual delivery, you must set forth your request in writing delivered to the association. Members of the Association may receive copies of the Board meeting minutes within thirty (30) days of the Board meeting by submitting your request to the Association in writing and agreeing to pay the cost to distribute the minutes in advance. At the time of this publication, the Board of Directors does not anticipate any Special Assessments for the upcoming year West Coast Highway, Suite 200 Newport Beach, CA Office Fax crsamanagement.com

2 October 30, 2017 Page 2 In addition, enclosed please find the following items: Association s Assessment Collection Policy ADR Statues as Alternative Dispute Resolution IDR Policy Current reserve statement Most recent reserve study summary Assessment and Reserve Disclosure Summary Annual Insurance disclosure statement Schedule of fines for violation of the Association s Rules and Regulations Architectural Guidelines FHA and VA Disclosure Automated Clearing House (ACH) is an optional form of electronic payment available to interested homeowners. If you would like more information on how to sign up for this service, please contact our Accounting Department. The mailing address for overnight payment of assessment is as follows: Niguel Beach Terrace Condominium Association, c/o CRSA Management, 2901 West Coast Highway, Suite 200 Newport Beach, CA (Phone: ). Should you have any questions, please feel free to contact me at (949) or by at crichards@crsamanagement.com. Sincerely, Christine Richards Community Executive Manager for Niguel Beach Terrace Condominium Association cc: Mailer File Enclosures 2901 West Coast Highway, Suite 200 Newport Beach, CA Office Fax crsamanagement.com

3 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION ADOPTED ANNUAL BUDGET REVENUE Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov Condo Fees 2,024, , , , , , , , , , , , , CC&R Violations 2, Late Fees 2, Interest Income 3, Key Income 1, Clubhouse Rental Fee 1, Total - Revenue 2,034, , , , , , , , , , , , ,521 EXPENSES Grounds Pool Spa Repair 5, Spa Equipment 2, Pool Equipment 2, Pool Supplies Pool/Spa Contract 8, Pool Repairs 5, TOTAL Pool 23,900 1,992 1,992 1,992 1,992 1,992 1,992 1,992 1,992 1,992 1,992 1,992 1,988 Landscape Landscape Contract 162,408 13,534 13,534 13,534 13,534 13,534 13,534 13,534 13,534 13,534 13,534 13,534 13, Planting 6, Tree Trimming 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1, Mulch 9, Irrigation System 2, Overseed 2, Page 1 of 6

4 ADOPTED ANNUAL BUDGET Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov Back Flow Testing Plumbing TOTAL Landscape 195,028 16,252 16,252 16,252 16,252 16,252 16,252 16,252 16,252 16,252 16,252 16,252 16, Plumbing Repair 6, Slab Leak Repair Expense 60,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5, Mold Test/Clear. 3, Interior Unit Repair/Damage Repair Pool Restroom Plumbing Repair Boiler 50,000 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,163 1, TOTAL Plumbing 120,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10, Boiler Contract 6, Boiler Maintenance/Repairs Service Boiler Emergency 14,400 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 10, TOTAL Boiler 31,200 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 Janitorial Janitorial Contract - Restroom/Pool 5, Clubhouse 1, Street/ Parking Lot Sweeping 5, Janitorial Supplies 1, TOTAL Janitorial 14,232 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 Utilities Refuse Service 55,800 4,650 4,650 4,650 4,650 4,650 4,650 4,650 4,650 4,650 4,650 4,650 4, Electric- Utility 45,000 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3, Gas 126,000 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10,500 10, Water 185,000 15,417 15,417 15,417 15,417 15,417 15,417 15,417 15,417 15,417 15,417 15,417 15,413 Page 2 of 6

5 ADOPTED ANNUAL BUDGET Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov Internet/Telephone 1, Extra Pick-up/ Strategic 16,908 1,409 1,409 1,409 1,409 1,409 1,409 1,409 1,409 1,409 1,409 1,409 1,409 Lighting TOTAL Utilities 430,508 35,876 35,876 35,876 35,876 35,876 35,876 35,876 35,876 35,876 35,876 35,876 35, Lighting Supplies 1, Lighting Contract 4, TOTAL Lighting 6, Pest/Termite Control Termite Control 8, Pest Control 7, Rodent Control 1, TOTAL Pest/ Termite Control 17,772 1,481 1,481 1,481 1,481 1,481 1,481 1,481 1,481 1,481 1,481 1,481 1,481 Annual Maintenance Roof and Window Annual Maintenance Trash Enclosure Repair/Annual Maintenance 24,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 4, TOTAL Annual Maintenance 28,800 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2, Property Protection 15,000 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Miscellaneous Expenses Key Production/Purchase Lock Repairs/Key Sidewalks/Driveways Mailbox Annual Maintenance 3, , Signs/ Doggie 4, TOTAL Miscellaneous 10, TOTAL Grounds 893,216 74,435 74,435 74,435 74,435 74,435 74,435 74,435 74,435 74,435 74,435 74,435 74,431 Page 3 of 6

6 ADOPTED ANNUAL BUDGET ADMINISTRATIVE EXPENSES Legal Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov General Counsel 50,000 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4, Construction Defect Litigation 100,000 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,337 TOTAL Legal 150,000 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 Collections Intent Fees Late Notices 1, Lien Filing and Preparation Fee Small Claims Collection 2, Bad Debts Expense 1, Collection Fees 6, TOTAL Collections 12,095 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,007 Insurance Master Policy 45,800 3,817 3,817 3,817 3,817 3,817 3,817 3,817 3,817 3,817 3,817 3,817 3, Earthquake 49,116 4,093 4,093 4,093 4,093 4,093 4,093 4,093 4,093 4,093 4,093 4,093 4, Insurance 14,400 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 TOTAL Insurance 109,316 9,110 9,110 9,110 9,110 9,110 9,110 9,110 9,110 9,110 9,110 9,110 9,106 Management Management Fee 49,680 4,140 4,140 4,140 4,140 4,140 4,140 4,140 4,140 4,140 4,140 4,140 4, Board Meetings Secretarial Mailer TOTAL Management 51,000 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 Office/ Supplies/ Postage Postage 3, Printing & Copying 2, Records Storage Envelopes Page 4 of 6

7 ADOPTED ANNUAL BUDGET Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Postage Website Service 1, Recording secretary TOTAL Office/ Supplies/ CPA/ Year End/Taxes Audit and Tax Preparation 8, , Property Taxes 2, Franchise/Federal CPA Records Preparation TOTAL CPA/ Year End/Taxes 4, RESERVES Reserves Contribution Reserve Contribution Reserve Contribution Reserve Contribution Reserve Contribution Reserve Contribution Reserve Contribution Reserves Contribution Reserve Contribution- 1, ,000 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1, , , , ,528 8,127 8,127 8,127 8,127 8,127 8,127 8,127 8,127 8,127 8,127 8,127 8, ,000 26,417 26,417 26,417 26,417 26,417 26,417 26,417 26,417 26,417 26,417 26,417 26,413 10, Reserves Siding 345,301 28,775 28,775 28,775 28,775 28,775 28,775 28,775 28,775 28,775 28,775 28,775 28, Reserves Carports 1, Page 5 of 6

8 ADOPTED BUDGET Annual Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov Reserves Windows 2, Reserves Stairs 1, Reserve Boilers 10, TOTAL Reserves 805,845 67,152 67,152 67,152 67,152 67,152 67,152 67,152 67,152 67,152 67,152 67,152 67,173 TOTAL Administrative & Reserves 1,141,036 95,085 95,085 95,085 95,085 95,085 95,085 95,085 95,085 95,085 95,085 95,085 95,101 Total Expenses All Categories 2,034, , , , , , , , , , , , ,532 Net Income (11) Printed on Friday, October Page 6 of 6

9 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION ADOPTED FISCAL ASSESSMENT Plan (Total billed) # Covered Carports CORRECTED ASSESSMENT ADOPTED TOTAL ANNUAL INCREASE 20 % / DOLLAR AMOUNT 1 (82) $ $399, % $ (42) $ $225, % $ (52) $ $284, % $ (49) $ $284, % $ (48) $ $278, % $ (43) $ $215, % $ (09) $ $ 56, % $ (41) $ $266, % $ (02) $ $ 13, % $93.31 TOTAL ANNUAL INCOME = $2,024,348.64

10 NIGUEL BEACH TERACE CONDOMINIUM ASSOCATION DELINQUENT ASSESSEMENT COLLECTION POLICY EFFECTIVE DECEMBER 1, It is the fiduciary responsibility of the Board of Directors to collect all assessments levied under the CC&Rs for your community in a timely manner. The Association is entitled to recover assessments, reasonable collection costs, reasonable attorney s fees, late fees and interest. The Association shall comply with the requirements of the California Civil Code when collecting delinquent assessments. If an error is made that requires termination of any collection proceeding or beginning a collection process over, the Association shall bear the costs; otherwise, the owner is responsible for all costs as identified above. 2. Assessments are due on the first day of each month and are delinquent at 5:00 p.m. on the 15 TH day of the month, after which time a late charge in the amount of $10.00 or N/A % of the assessment [or special assessment], whichever is greater will be charged [per the governing documents] on the 15 TH day of the month. All balances due as of 5:00 p.m. on the 15 TH day of the month will be subject to interest of 10% per annum. All such amounts must be paid in full and the Association shall not be required to accept partial payments absent a written agreement. 3. Unpaid assessments are delinquent 15 days after they are due. 4. For every delinquent account, if the balance is not paid upon demand, the Association will take whatever action is deemed necessary and allowable under law, including but not limited to commencing a court action (i.e., lawsuit) for a personal judgment, and/or processing an assessment lien through foreclosure. 5. The process of placing an assessment lien on the property is as follows. a. When an assessment becomes more than 45 days past due, the Association will send a pre-lien letter to the owner as required by Civil Code, by certified mail to the owner's address of record. If the delinquent record owner(s) have provided a written notice of a secondary address, correspondence shall be also sent to that address. Such correspondence will include an itemized statement of the total amounts delinquent, including but not limited to, assessments, late charges, interest and costs of collection, if any, and a notice that the owner is entitled to ask to meet with the Board or Board representative (s) pursuant to the

11 Association s internal dispute resolution meet and confer program. The owner will be charged $75.00 for the pre-lien letter. b. If the owner fails to pay the amount set forth in the pre-lien letter within 30 days of receipt of that letter, a lien for the amount of any delinquent assessments, late charges, interest and/or costs of collection, including attorneys' fees, may be recorded against the owner's property. The owner will be charged a $ fee for the lien. A copy of the lien will be sent to the owner at his/her address of record via certified mail within ten (10) days of recordation thereof. After the expiration of thirty (30) days following recordation of the lien, the lien may be enforced in any manner permitted by law. 6. The decision to record a lien shall be made by the Board of Directors, approved by a majority vote in an open meeting. The Board shall record the vote in the minutes of that meeting referring to the property by parcel number, and not name of the owner. Likewise, the decision to file a lawsuit to collection delinquent assessments and related charges and costs shall be made by the Board and not the Association s agent. 7. If all sums secured by the duly recorded assessment lien are not paid in full within thirty (30) days after the owner s receipt of the notice of recordation of the lien, and (a) the amount of the delinquent regular or special assessments reaches $1,800.00, not including accelerated assessments, late charges, fees and cost of collection, attorney s fees, or interest, or (b) has been delinquent more than 12 months, the Board may foreclose the lien. All late fees, interest, and resulting collection fees and costs will be added to the total delinquent amount. At some point in time prior to initiating foreclosure, the Board shall offer the owner and, if so requested by the owner, shall participate in dispute resolution pursuant to the association s meet and confer program or alternative dispute resolution with a neutral third party. 8. The decision to initiate foreclosure shall be made only by the Board of Directors, by majority approval, and while the discussion may be held in executive session, the decision shall be recorded in the minutes of an open meeting in the same form as the decision to record a lien was made (by parcel number only). A Board vote to approve foreclosure of a lien must take place at least 30 days prior to any public sale. 9. If the Board votes to foreclose, the Board shall provide notice of its decision by service to an owner (in the same manner as service of a summons) who occupies the separate interest or to the owner s legal representative. If the owner does not occupy the separate interest, said notice will be sent by first-class mail, postage pre-paid, to the

12 most current address shown on the books of the Association. In the absence of written notification by owner to the association, the address of the owner s separate interest may be treated as the owner s mailing address. In addition, statutory procedures including recorded notices regarding foreclosure and sale will be accomplished as may be required by law. 10. IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT ACTION. 11. A non-judicial foreclosure by an association is subject to the owner s right to redeem the property up to 90 days after the sale. 12. All charges placed upon the assessment account must be paid in full as a condition to curing and releasing a recorded assessment lien and/or documents of foreclosure (e.g., Notice of Default). The Association is not required to accept any partial or installment payments, except with execution of a mutually agreeable payment agreement. Arrangements for such agreement are to be made with the Association s Agent assigned to the collection of the account or the Board or a Board representative, at a meeting arranged under the meet and confer process of the Association or upon such other conditions as the parties may mutually agree. 13. When a payment is made, the owner may request a receipt and the Association will provide it. On the receipt, the Association shall indicate the date of payment and person who received it. 14. You may but are 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. 15. Each payment from an owner shall be applied first to the principal sum owed, then, in descending order to interest, late charges, and collection expenses, unless agreement is entered into between the Association and the owner. 16. An owner may request the Association to consider a payment plan to satisfy a delinquent assessment sum or sums. The Board will inform the owners of the standards for payment plans, to the extent standards have been adopted by the Board. Certain timelines apply as follows: If an owner s request is mailed within 15 days of the date of the postmark of the notice of delinquency (lien), the Board will meet with the owner in executive session within 45 days of the postmark of that request. However, if there is

13 no regularly scheduled Board meeting during that period, the Board may designate one or more Directors to meet with the owner. Payment plans may incorporate any assessments that accrue during the payment plan period, however they shall not impede an association s ability to record a lien to secure payment of delinquent assessments. Additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan. In the event of a default on any payment plan, the association may resume its efforts to collect the delinquent assessments from the time prior to entering into the payment plan. 17. Any check returned by the bank for insufficient funds, stop payment or any other reason will be charged back the unit and a $35.00 administrative fee plus any bank fees will be assessed to the account. If the account has been turned over to the Association s agent for collection and a check is returned, the account will be assessed whatever administrative fees as the Agent provides. 18. The mailing address for overpayment of assessments is the same as that for routine assessment payments unless otherwise noted. 19. An owner of a separate interest has the right to inspect the Association s financial books and records to verify the delinquency, per laws related to inspection of HOA records. 20. Except where prohibited by law, the Board of Directors of the Association may revise the policy, either generally or on a case-by-case basis, if it finds good cause to do so. To the extent there are any general discretionary changes (rather than compliance related to the law or governing documents), the Board shall circulate the policy to owners at least 30 days before the meeting at which the revisions will be considered.

14 NOTICE ASSESSMENTS AND FORECLOSURE 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 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 a 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). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or non-judicial foreclosure subject to the condition set forth in Section 5705 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 of the amounts secured by the lien that are not paid. (Sections 5600, 5700 and 5705 of the Civil Code) 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 non-judicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member s guests, if the governing documents provide for this. (Sections 5600 and 5700 of the Civil Code) The association must comply with the requirements of Section 5600 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 5600 of the Civil Code)

15 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 the right to review the association s records to verify the debt. (Section 5600of the Civil Code) If a lien is recorded against an owner s property in error, the person recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 5600 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, he or she 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 5600 of the Civil Code) You may, but are 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 doing so, specifically reserve the right to contest the disputed charge or sum in court or otherwise. An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the association, including, but 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 5 (commencing with Section 4525) of Chapter 4 of Title 6 of Division 2 of the Civil Code. In addition, an association may not initiate foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 2 (commencing with Section 5925) of Chapter 7 of Title 6 of Division 2 of the Civil Code,

16 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 established that the assessment was paid properly on time. (Section 5600 of the Civil Code) MEETINGS AND PAYMENT PLANS An owner of a separate interest that is not a timeshare may request the association consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exist. (Section 5600 of the Civil Code) The Board of Directors 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. The payment plans must conform with the payment plan standards of the association, if they exist. (Section 5600 of the Civil Code).

17 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION ALTERNATIVE DISPUTE RESOLUTION California Civil Code Section 5930: Requires that prior to the filing of a civil action by either an association or an owner member of the association, which action is declaratory relief or injunctive relief related to the enforcement of the governing documents, the initiating party shall submit the dispute to a form of alternative dispute resolution ( ADR ) such as binding on nonbinding mediation or arbitration. This does not apply to action to collect assessment, nor to claims for monetary damages in excess of $5,000. The initiating party must serve on the other party a Request for Resolution that includes a description of the dispute, a request for ADR, and a notice that a response is required within 30 days of receipt of the notice or it will be deemed rejected, and the party rejecting may subject itself to a potentially higher award of attorney fees in the event it is not the prevailing party in the action to follow. California Civil Code 5965: Failure by any member of the Association to comply with the alternative dispute resolution requirements of Section 5930 of the Civil Code may result in the loss of your right to sue the association or any other member of the association regarding enforcement of the governing documents or the applicable law. California Civil Code : Internal Dispute Resolution ( IDR ) Procedures for IDR have been adopted by the Board of Directors of the Association or have been included in the Declaration of the Covenants, Conditions, and Restriction (CC&R s) for the Association and are attached to this document.

18 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION INTERNAL DISPUTE RESOLUTION CIVIL CODE This procedure applies to a dispute between an association and a member involving their rights, duties, or liabilities. 1. The procedure may be invoked by either party to the dispute. A request invoking the procedure must be in writing. 2. If submitted by a member, once received the association will respond to the request in 30 days, setting a date for the IDR. 3. If submitted by the association to a member, the member may elect not to participate in the IDR. If the member does not respond in 30 days requesting to participate in the IDR then the request shall be deemed rejected. If the member participated but the dispute is resolved other than by agreement of the member, the member shall have a right to appeal to the association s Board of Directors. 4. A meeting will be set where an appointed Board Member and the member will meet and confer at a mutually convenient time and place to explain their positions to each other, and confer in good faith in an effort to resolve the dispute. 5. 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. 6. A resolution of a dispute pursuant to the procedure, that is not in conflict with the law or the governing documents, binds the association and is judicially enforceable. An agreement reached pursuant to the procedure, that is not in conflict with the law or the governing documents, binds the parties and is judicially enforceable. 7. A member of the association shall not be charged a fee to participate in his process.

19 Summary of Niguel Beach Terrace Condominium Association Current Reserve Account, and Summary of the Association s Most Recent Reserve Study (Most recent Reserve Study conducted: November 2015) The following are summaries and forms relating to the Association s reserve account and its Reserve Study. Under the Davis-Stirling Common Interest Development Act, these summaries are to include the following information: Any funding plan adopted by the board. A statement of the board s determination to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, with the reasons for the decision. A statement as to whether the board has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves to do so. A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms. A general statement addressing the procedures used for the calculation and establishment of reserve funds to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The summary information was prepared by the Association s reserve study specialist, Intraspect. You may request a copy of the complete reserve study plan by putting your request in writing addressed to the Association.

20 NIGUEL BEACH TERRACE CAPITAL RESERVE ACCOUNT SUMMARY As of 10/30/17: ACCOUNT BALANCE NAME , Reserves - Lighting Reserves - Contingency , Reserves - Deck , Reserves - Fencing , Reserves - Interest , Reserves - Landscape Replacements , Reserves - Clubhouse , Reserves - Mailbox & Signs , Reserves - Painting , Reserves - Pools , Reserves - Spa , Reserves - Roof , Reserves - Wood Repairs , Reserves - Streets & Sidewalks , Reserves - Water Heater (0.70) Reserves- Chimney Repair Reserves - Pool/Spa , Reserves - Siding , Reserves - Boilers , Reserves - Stairs , Reserves - Carports , Reserves - Windows , Reserves- Pool Furnishing 1,466, = TOTAL Printed on Friday, October Page 1 of 1

21 Reserve Study Report Part 3 Financial Analysis EXECUTIVE SUMMARY For the Fiscal Year Ending November 30, 2015 The following information is a condensed summary of the current full reserve study, to be conducted every 3 years (physical inspection necessary) and reviewed annually. It is intended to provide the general information for inclusion with the annual budget information to be distributed to the homeowners, and is prepared in compliance with California Civil Codes Reference to the complete study provides detailed estimates of individual remaining lives, current costs, and projected future replacement costs. Summary of Cost of Inventory Base Identification Component Inventory Groupings Estimated Remaining Useful Life Estimated Replacement Costs Annual Account Requirement Accumulated Account Requirement Allocation of Fund Balance Percent of Fund Balance Paving and Surfacing 2-18 $ 383,950 $ 23,275 $ 115,800 $ 37, % Landscaping & Irrigation ,100 9, ,580 61, % Fences, Walls and Gates ,000 4,393 16,787 5, % Structural and Pest Controls ,982, ,673 2,631, , % Roof & Waterproofing ,843,200 72, , , % Doors & Windows 18 64,400 3,220 6,440 2, % Flooring ,000 1,313 14,887 4, % Painting and Coverings ,500 45, ,617 50, % Specialties ,600 1,820 36,030 11, % Site Facilities, Equip. & Furnishings ,000 4,300 23,700 7, % Aquatic Facilities ,600 4,437 18,760 6, % Plumbing, Mechanical, & Utility Sys ,000 13, ,388 34, % Electric & Lighting ,000 4,133 34,667 11, % Contingency 0 25, ,000 32, % Totals $ 8,659,550 $ 392,719 $ 4,283,659 $1,377, % Summary of Financial Position Accumulated Deficit $ 2,906,532 Per Unit $7, Percentage Funded as of the Year End: 32.15% Current Annual Funding (from Budget) $ 523,800 Actual Cash Balance: November 30, 2015 $1,377,127 Anticipated Funding to Year End: - Anticipated Expenditures to Year End:* - Actual Cash Balance: November 30, 2015 $1,377,127 Summary of the Funding Plan *Annual **Current ***Recommended Dollar Amount Per Unit, Per Month (All Funding options assume a 3% increase per year) *Annual Reserve Account Requirement: Deficits could occur beginning FY **Current Annual Funding: Deficits could occur beginning FY ***Recommended Funding Program: To avoid deficits that could occur beginning FY 2016, a special assessment is necessary in FY 2016 for $550,000. This over view summary we have prepared for you is based on our best estimate of anticipated funding and distributions from the reserve funds through the current fiscal year ending November 30, The related reserve funding projection for the 30-year period goes from YEAR to YEAR. It is based on compilation of information provided by current management and a consultant s most likely estimates at the time of inspection, as described in the physical analysis portion of the report. The Annual Account Requirement is based on the cost of each component divided by its total useful life. The Accumulated Account Requirement is the annual requirement multiplied by the number of expended years. The Difference between the Accumulated Requirement total and the Actual Cash Balance may indicate a deficit or surplus, which would be expressed in the Percentage Funded. There has not been an audit or review of the accompanying analysis performed. Therefore, no expressed opinion or form of assurance is offered. We assume no responsibility to update this report for events or circumstances occurring after the date of issuance of this report. Niguel Beach Terrace HOA Executive Summary

22 Reserve Study Report Part 3 Financial Analysis ASSESSMENT AND RESERVE FUNDING DISCLOSURE SUMMARY (1) Regular Assessments Assessments to members are $ per unit per month for the year starting December 1, *If assessments vary by the size or type of unit, the applicable assessment rates may be found in the Association s Annual Budget and/or can be provided by the Associations/management agency. (2) Special Assessment -- Additional assessments that have already been scheduled to be imposed or charged, regardless of the purpose, which have been approved by the Board and/or members. (3) Reserve Account Balances Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balance be sufficient at the end of each year to meet the Association s obligation for repair and/or replacement of major components during the next 30 years? Yes No X (4) Additional Assessments If the answer to #3 is NO, what additional assessments or other contributions to reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board of directors or the members? Recommended Funding: To avoid deficits that could occur beginning FY 2016, a special assessment is necessary in FY 2016 for $550,000. Date Assessment is Due Amount Per Unit/Per month Total Amount of Assessment PerYear December 1, 2016 $ $550,000 (5) Major Components All major components are included in the reserve study and are included in its calculations. (6) Current Funding Comparisons As of the current reserve study or update, the balance in the actual cash balance is projected to be $1,377,127. Based on the method of calculation in paragraph (4) of the subdivision (b) of Section 5570 of the Civil Code, the estimated accumulated account requirement is $4,283,659. The percentage funding is: 32.15%. (7) Funding over next 5 Budget Years Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is projected to be: $3,623,678 $2,085,393 $2,429,357 $2,772,275 $3,111,525 The projected reserve fund cash balance at the end of each of those years is projected to be, taking into account only assessments already approved and other known revenues, as follows: $889,541 -$487,045 -$18,629 $466,967 $967,758 % Funded 24.55% % -0.77% 16.84% 31.10% If the recommended reserve funding plan is approved by the Association and implemented, the projected reserve fund cash balance at the end of each of those years would be: $889,541 $62,955 $547,871 $1,050,462 $1,568,758 % Funded 24.55% 3.02% 22.55% 37.89% 50.42% Note: The financial representations set forth in this summary are based on best estimates of the preparer at the time. These estimates are subject to change. Niguel Beach Terrace HOA Reserve Funding Disclosure Summary

23 ANNUAL INSURANCE DISCLOSURE STATEMENT ASSOCIATION Niguel Beach Terrace Condominium Association DATE October 30, 2017 RE: Civil Code 5300(b)(9) and 5805 Dear Homeowner: Civil Code 5805 offers civil liability protection to owners within common interest developments. By maintaining minimum limits of liability insurance and following the notification process in this new law, you are protected from direct lawsuits for injuries in the common area. Your association is pleased to provide you the information required under Civil Code 5300(b)(9) as follows: Liability Insurance Carrier: Farmers Insurance Limit of Coverage $3 mill./$4 mill.aggregate The above limit [X ] DOES [ ] DOES NOT comply with the minimum limits in this law. Property Insurance Carrier : Farmers Insurance The deductible is $5,000 Amount of Coverage is $ 39,100, Earthquake Insurance Carrier: QBE Specialty The deductible is 10% Amount of Coverage is $20,000, Flood Insurance Carrier: N/A The deductible is Amount of Coverage is $ Directors and Officers Liability Carrier: Farmers Insurance Exchange Amount of Directors and Officers Liability Coverage $1 million Deductible $75, Fidelity Bond/Employee Dishonesty Carrier: Farmers Insurance Amount of Coverage $2,000, Deductible $5, Insurance Agent- This law requires the name of any insurance agent selected to assist the association in the development of the general liability policy limits. Our Association Used: Lewis R. Cohen (949) Ivy Glen Drive, Suite 201, Laguna Niguel, CA This summary of the association s policies of insurance provides only certain information, as required by section 5300 of Civil Code, and should not be considered a substitute of 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 this summary, the association s policies of insurance may not cover your property, including personal 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.

24 I. ENFORCEMENT OF RULES NIGUEL BEACH TERRACE ENFORCEMENT POLICY A. The enthusiastic cooperation of you, the homeowners and tenants, is required. If you observe abuses of community rules and regulations by your neighbor, you are encouraged to bring the matter to their attention. Remember, they may not be aware that such a rule exists. A friendly reminder may painlessly correct the problem. Otherwise, the observed violations should be reported to the Management Company. (See Exhibit A ) If the problem is serious and requires action by the Police Department, their emergency number is 911. The Board of Directors of your Association feels that any rule worth making is worth enforcing. If reminders and encouragement do not correct a particular problem, all available legal remedies, including but not limited to, action for injunction and damages will be vigorously pursued. Remember, the cost of the foregoing may be borne by every owner. Therefore, it is each resident s obligation not only to comply, but also to encourage compliance with these rules which simply set forth in writing a good neighbor policy. Common sense, mutual cooperation and consideration of your neighbors are the keys to a harmonious coexistence. In the event of damage to Association property, the Association may perform corrective work, at the expense of the offending party after giving a ten (10) day written notice. Said offending party will be responsible for legal fees and costs involved in any suit. B. All residents have the right and responsibility to bring to the attention of the Association, through its Board of Directors or Management Company, any infractions or violations of the Declaration of Covenants, Conditions and Restrictions (CC&R s). This report must be in writing to the Directors in care of the Management Company. The following action will be taken by the Board of Directors: 1. A warning letter will be sent to the alleged violator asking that the specified violation be corrected. 2. If the violation is not corrected within the amount of time set forth in the letter or continues to be repeated, the Board of Directors will instruct the Management Company to send a letter notifying the homeowner (and tenant if applicable) to attend a hearing to discuss the alleged violation. 3. If it is determined by the Board of Directors that the violation did in fact occur, a fine may be implemented. Repeated violations after the hearing may result in legal action on behalf of the Association to enforce the CC&R s and Rules and Regulations. Legal fees resulting from such action will be borne by the offending party. 4. If the homeowner does not attend the hearing, or send a representative, a fine will be implemented. The Schedule of fines is listed on Exhibit B.

25 EXHIBIT B SCHEDULE OF NOTIFICATION AND FINES I. First Notice Warning Letter Second Notice Hearing Letter Third Notice Hearing non-compliance $25.00 Fourth Notice 30 day compliance letter $50.00 Fifth Notice Non-compliance letter $ Each additional notice: $ All fines are added to dues assessments and collected monthly II. Towing A. Towing of abandoned/stored cars and vehicles used as storage in reserved space 1. Randomly checked by Security Company 2. Ticket placed on vehicle and Security Company reports to Management 3. Thirty (30) day compliance letter mailed by management 4. Within waiting period, Security places tickets on vehicle 5. Non-compliance TOW B. Towing of abandoned or stored vehicles from guest parking is subject to a 96 hour ticket notice by security and then tow. C. In the event a situation arises which necessitates that a vehicle be parked in a reserved or guest parking space for longer than the allowed time period, the Management Company must be notified to avoid non-compliance tow. III. Pets 1. First - Courtesy Notice 2. Second Notice Hearing Notice and possible $50.00 fine 3. Third Notice - $ fine 4. Fourth Notice - $ fine

26 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION I. ARCHITECTUAL STANDARDS (Excerpt from Rules and Regulations) Living in a planned community such as Niguel Beach Terrace offers many privileges as well as imposing certain restrictions. Niguel Beach Terrace has been developed for the mutual benefit of all members. In order to preserve the value, desirability, attractiveness and architectural integrity of the Niguel Beach Terrace Community, the Covenants, Conditions and Restrictions have authorized the formation of the Architectural Committee. This Committee is vested with the power to review and approve ALL improvements to all residential units in Niguel Beach Terrace. Unless otherwise provided in the Architectural and Landscape Guidelines, no improvements shall be built, constructed, installed, expanded, made, planted, attached, applied, pasted, hinged, screwed, nailed, commenced, erected or maintained upon the Common Property including, without limitations, solar heating panels, lighting, shades, screens, awnings, patio covers, decorations, fences, aerials, antennas, radio or television broadcasting or receiving devices, air conditioning units or change or otherwise alter the exterior of any residence, except in compliance with the plans and specifications therefore which have been submitted to the and approved by the Architectural Committee. Upon a request by an owner after completion of the work, the Architectural Committee or its duly appointed representative may inspect any improvement for which approval of plans were required. The Architectural Committee as appointed by the Board (further referred to as Architectural Committee) does not seek to restrict individual creativity or personal preferences, but rather to help assure a community in design which will help preserve and improve the appearance of the Community. Prior to commencement of any addition, alteration or construction work of any type you must first file an application to the Architectural Committee. Failure to obtain the written approval of the Architectural Committee may constitute a violation of the CC&R s and shall require modification or removal of unauthorized work or improvements at your expense. In addition, a building permit may be required by the City/County or other governmental agencies prior to the commencement of any work. The Architectural Committee does not assume any responsibility for your failure to obtain such permits. Also, obtaining such permits does not waive the obligation to obtain Architectural Committee approval. A. Patio s and Balconies 1. Storage: Balconies and patios are for individual use and not intended for storage of any kind. Homeowners are to use the storage areas provided within their balconies and patios. Standard patio furniture and accessories are allowable, however non-standard items which extend beyond the height of the patio fence such as greenhouses, storage bins, play equipment, spas, hot tubs, or other elements must be submitted for evaluation. Hot tubs, spas are not permitted on balconies. Bicycles, surfboards, windsurfers, and boogie boards are not to be kept within the open areas in patios and balconies. No clothing, household fabrics or other unsightly articles shall be hung, dried or aired on any portion of the Property, including the interior of any Residence, so as to be visible from other Residences or the street. 2. Plants: No plants or planters placed on decks or balconies shall be attached to the building. (Exception: See IV, D2). Plants and planters shall be placed so as not to create damage to residents residing below in the event of unusual weather conditions or earthquake. No items (including potted plants) may be placed on top of any yard, boundary wall or fence. They cannot be placed on railings or any other location where they may fall or cause damage to underlying wood. This would also include any part of the building structure. Vegetation shall not be permitted to grow directly into the soil within a patio. All vegetation must be grown in pots, planters, or similar and customary containment. Vegetation will not be allowed to grow above 24 inches

27 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION of the patio or balcony rail with the exception of hanging plants. Hanging plants will not be allowed to grow below a point that is 18 inches above the patio or balcony rail. All potted plants placed on balconies must be raised up off of decking material to allow drainage and air flow and prevent damage to deck surface. 3. Alterations: Unacceptable construction materials for patio and balcony deck structures shall be: Metal structures Corrugated plastic Fiberglass Plastic webbing Reeded or strawlike bamboo materials Wire: There is to be no chicken wire or wire of any kind. If you wish to extend your wood fence to the ground to keep pets inside, you may use only treated cedar or redwood boards attached and detailed to match existing fence work. Exposed surfaces shall match the existing colors and materials of the main dwelling. Additional wood slats may be added between the existing slats on balcony railings. They may be a minimum of 2 apart and match both size and shape of the original slats. Cedar or redwood slats must be painted white to match the existing railings. No indoor/outdoor carpet, other carpet, tile, paving, or any other material shall be placed on any upper deck surface at any time. Each owner assumes full responsibility and liability for any damage or loss which may be claimed or incurred in connection with such use. B. Front Entry Areas No permanent improvements (materials) of any kind shall be affixed to the front porch, the concrete stairs, or the landing at the bottom of the stairs of any unit. Screen doors on the front entry door are allowed if they are approved by the Architectural Committee. Screen doors must be painted white and of French door style (also known as Colonial ). Screen doors must include automatic closing devices. The original black or bronze Montego model is being phased out and is not approved for new or replacement installations. Personal treatments to the entry ways must be in good taste and shall not block traffic or create a nuisance. Staircases and landings must be kept clear of obstacles to avoid accidents and allow for emergency access. No statues, rocks or ornaments of any kind are to be placed on staircases and landings. Potted plants of reasonable size and numbers are permitted on landings provided they do not hinder access in any way.

28 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION C. Miscellaneous 1. Athletic Equipment: No permanent basketball net, post of any kind or stationary equipment shall be erected or attached to the dwelling structure or affixed in the ground without approval of Architectural Committee. 2. Antennas: No television, radio, or other antenna of any type shall be installed on the exterior of any unit or anywhere on the common area, without written approval of the Architectural Committee. 3. Exposed Equipment: No water softeners, air conditioners and other such equipment shall be exposed to public view without written approval of the Architectural Committee. 4. Glass Tinting: Glass tinting requests will be considered by the Architectural Committee. However, mirror finishes will not be approved. 5. Unit Numbers: Units numbers shall be uniform. Unit numbers other than those originally installed or those approved for the association by the Board of Directors will not be permitted. 6. Lighting: Patio and deck lighting must be Low voltage (12V). Higher voltage lighting may be approved if it is not directed, or if it is placed so that it does not create any annoyance to the neighbors, as determined by the Architectural Committee. Any change to the Developer installed lights shall require Architectural Committee approval. Exterior Christmas lighting in season is permitted without Architectural Committee evaluation ONLY from Thanksgiving through January 15 th, and they may not be placed in such a manner as to damage any Common Area. In private outdoor patios, no lights shall be placed on common area exterior surfaces such as door frames, eaves, or stucco surfaces in any manner as to permanently damage Common Area. 7. Painting: Any improvements may be repainted without Architectural Committee approval, so long as the improvement is repainted with the identical color and quality with which it was last painted. (Call Management Company for specific information.) 8. Window Covers: Windows can be covered only by drapes, shades, blinds or shutters and cannot be painted or covered by aluminum foil, cardboard, or other similar materials. Window coverings are to be installed within one hundred twenty (120) days from close of escrow. Coverings and shades shall be on interior not exterior. 9. Exterior Roll Down Shades: Roll down shades are not permitted.

29 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM Please complete and include this request form, along with two (2) sets of your proposed home improvement plans to: Niguel Beach Terrace C/O CRSA Management, Inc West Coast Highway, #200 Newport Beach, CA Name: Date: Address: Phone: Building#: Description Of Improvement: Proposed Start Date: Completion Date: Installation to be at no cost whatsoever to the Association. Any further maintenance shall be the responsibility of the owner, heirs or assigns. Homeowner s signature PLEASE INCLUDE THE FOLLOWING INFORMATION WITH YOUR REQUEST 1. Description of improvement. 2. Location of improvement to unit and the dimensions. 3. Complete dimensions of improvement proposed. 4. Measurements of improvements in relationship to unit and neighboring unit(s) line. 5. Description of materials and color scheme. 6. Plan review deposit fee $. Architectural Committee: Date: ( ) Approved ( ) Disapproved

30 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM NIGUEL BEACH TERRACE FACING, ADJACENT AND IMPACTED NEIGHBOR STATEMENT The attached plans were made available to the following neighbors for review: FACING NEIGHBOR: Name Building # Unit# Signature FACING NEIGHBOR: Name Building # Unit# Signature FACING NEIGHBOR: Name Building # Unit# Signature ADJACENT NEIGHBOR: Name Building # Unit# Signature ADJACENT NEIGHBOR: Name Building # Unit# Signature IMPACTED NEIGHBOR: Name Building # Unit# Signature IMPACTED NEIGHBOR: Name Building # Unit# Signature The neighbors have seen the plans I am submitting for Architectural Committee approval (see above verification). I understand neighbor objection do not in themselves cause denial. However, the Architectural Committee will contact the neighbors to determine their objections and their appropriateness, if necessary. Submitted by: Name: Date: Request for Access

31 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM Across Common Area Property Niguel Beach Terrace Architectural and Landscape Guidelines Request is hereby made by: The undersigned Owners of Record of the Property located at: (Homeowner s Address) To temporarily use or modify an existing portion of the Common Area land for the purpose of transporting construction materials as required by the approved work indicated in the submittal request for home improvement. We (the Owner of Record) understand that this access is granted, is for a limited time only during the construction phases as specified in the Construction Schedule, at the completion of those phases of construction requiring the temporary access, any and all effort will be made at our (the Owner of Record) expense to repair any damage to the Common Area to the extent of returning the entire area to its original condition prior to the granting of this access. We also agree to coordinate with any effort the Landscape Maintenance Contract may pursue during the entire course of construction, so as to assist them with any improvement or procedure they are involved in which may affect the Common Area over which we are requesting access. Homeowner Signature: Date: NOTICE OF COMPLETION

32 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM Notice is hereby given that: The undersigned is the owner(s) of the property located at: (Street, Building & Unit Number) (City) The work of improvement on the described property was COMPLETED on: day of, 20 in accordance with the Architectural Committee written approval through the above owners plans and submittal package. Signature of Owner: Date: NEIGHBOR NOTIFICATION

33 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM It is the intent of the Architectural Committee to have input from the applicant s neighbors on any improvement which may impact the use and enjoyment of their unit. Neighbor approval or disapproval of a particular improvement shall only be advisory and shall not be binding in any way on the Architectural Committee s decision. Impacted Neighbor Statement (Exhibit B) must be provided to the Architectural Committee to verify that the neighbors have been notified about the proposed improvements. 1. Definitions: Facing Neighbor; Adjacent Neighbor and Impacted Neighbor Facing Neighbor: means the three (3) units most directly across from the unit. Adjacent Neighbor: Impacted Neighbor: means all units adjoining the unit in question means all units in the immediate surrounding area which would be affected by the construction of any improvement. 2. Improvements Requiring Notification a. Any exterior improvements that may impact the neighbors in the community. b. Fencing and walls. c. Landscape elements and materials that may obstruct views. NOTICE OF COMPLETION

34 NIGUEL BEACH TERRACE HOME IMPROVEMENT FORM Upon completion of any work for which approval has been given, the owner shall submit written notice of completion to the Committee. Within 90 days thereafter, a representative of the Committee may inspect such improvement. If the Committee finds that such work was not done in substantial compliance with the approved plans, it shall notify the owner in writing of such noncompliance within a 60-day period and require the owner to correct the matter. If upon expiration of 60 days from the date of notification the owner has failed to remedy the noncompliance, the Committee shall notify the Board of Directors of the Association (sometime hereafter referred to as the Board ) in writing of such failure. After affording such owner notice of hearing, the Board shall determine whether there is a noncompliance of Architectural Guidelines and, if so, the nature thereof and the estimated cost of correcting or removing the same. If a noncompliance exists, the owner shall remedy or remove the same within a period of not more than forty-five (45) DAYS FROM THE DATE OF ANNOUNCEMENT OF THE BOARD RULING OF NONCOMPLIANCE. If the owner does not comply with the Board ruling within such period, the Board may levy a Compliance Assessment against such Owner for the costs of removing or remedying such noncompliance. All construction, alteration or other work shall be performed promptly and diligently as possible and shall be completed within one hundred twenty (120) days after the date on which the work commenced. VARIANCE The Board may authorize variances from compliance with any architectural provision contained in the CC&R s for Niguel Beach Terrace including, without limitations, restrictions upon height, size, floor area, or placement of structures, or similar restrictions when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration may require such variances. The granting of a variance must be evidenced in writing, must be signed by a majority of the members of the Board, and if possible should be recorded in the Office of the County Recorder of the County of Orange.

35 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION NOTICE FOR APPROVAL OF PHYSICAL CHANGES TO PROPERTY In accordance with Civil Code Section 4765(c), the Association is required to provide this notice of any requirements for Association approval of physical changes to property. If an owner wants to make physical changes to his/her property, he or she is required under the Declaration of the Covenants, Conditions and Restrictions ("CC&Rs") to comply with the architectural review process provided therein and with any applicable architectural guidelines adopted by the Association. The CC&Rs provide for any owner, who proposes to construct improvements or take other actions requiring prior approval of the Board or an architectural review committee appointed by the Board, to first apply to the to the Board of Directors or if applicable, the architectural review committee, for prior written approval by submitting plans and specifications and any other materials required by the Board or architectural review committee. The Board or if applicable, architectural review committee, then reviews the plans and specifications and either approves them, conditionally approves them, requests further information or denies the request within the prompt deadlines provided in the CC&Rs or in any applicable architectural review guidelines. For further information regarding the architectural review procedures, see the CC&Rs and the architectural guidelines, if any.

36 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION Certification by the Federal Housing Administration may provide benefits to members of any association, including an improvement in an owner s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest. This Common Interest Development is a condominium project. The association of this Common Interest Development is not certified by the Federal Housing Administration.

37 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION Certification by the Department of Veterans Affairs may provide benefits to members of any association, including an improvement in an owner s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest. This Common Interest Development is a condominium project. The association of this Common Interest Development is not certified by the Department of Veterans Affairs.

38 NIGUEL BEACH TERRACE CONDOMINIUM ASSOCIATION CORRECTION NOTICE November 7, 2017 Dear Homeowner: The 2017/2018 Niguel Beach Terrace Condominium Association Adopted Pro Forma Budget mailed on October 30, 2017 had a mathematical error located within the fiscal assessment ledger. Enclosed you will find the corrected fiscal assessment ledger and budget that will be effective December 1, We apologize for any inconvenience. All other enclosures included with the prior budget are in effect and no changes have been made. Please keep this notice along with the prior notice mailed. The mailing address for overnight payment of assessment is as follows: Niguel Beach Terrace Condominium Association, c/o CRSA Management, 2901 West Coast Highway, Suite 200 Newport Beach, CA (Phone: ) Should you have any questions, please feel free to contact me at (949) or by at crichards@crsamanagement.com. Sincerely, Christine Richards Community Executive Manager for Niguel Beach Terrace Condominium Association cc: Mailer File Enclosures 2901 West Coast Highway, Suite 200 Newport Beach, CA Office Fax crsamanagement.com