PLEASANT CREEK HOMEOWNERS ASSOCIATION GUIDEBOOK

PLEASANT CREEK HOMEOWNERS ASSOCIATION GUIDEBOOK

TABLE OF CONTENTS I. Welcome Letter 3 II. Association Management 4 III. Disclosure 4 IV. Association Governing Documents 4 V. Governance of the Association A. Annual Meeting 5 B. Board of Directors 5 C. Master Association 5 D. Budgets 6 E. Assessments 6 F. Reserves 7 G. Architectural Review Committee 7 H. Rules & Regulations 8 VI. Routine Maintenance Services A. Garbage Service 11 B. Snow Removal Service 11 C. Landscaping/Irrigation Service 11 VII. Exterior Repair/Replacement Responsibilities Chart 12 VIII. Association Insurance 13 2

Dear New Homeowner, Welcome to the Pleasant Creek Homeowners Association. Moving onto property governed by a homeowners association can be a confusing and challenging ordeal, especially for those who have never before been involved with a homeowners association. The Homeowners Association (HOA) would like your experience here to be a positive and enjoyable one. With the assistance of Community Development, our Property Management firm, we have created this Association Guidebook to touch upon some key areas of interest for all new homeowners. This document is not designed to replace or substitute for the Association s Governing Documents. All potential homeowners were given the opportunity to read and understand the Governing Documents prior to moving into Pleasant Creek, and each homeowner has the responsibility to honor the provisions of those documents. In this Guidebook you will find a great deal of information ranging from what day the is trash picked up on to how to go about requesting an Architectural Change Application. Please review this Guidebook and become familiar with your Homeowners Association. Again, welcome to the neighborhood. We hope you will enjoy being a part of your new community. Thank you, The Board of Directors 3

II. ASSOCIATION MANAGEMENT Community Development Inc., a professional Property and Community Management firm specializing in townhome and single family Homeowners Association Management, manages the Association. The mission of Community Development is to help Pleasant Creek develop into a community, where the community itself becomes a source of pride and value to the members it serves. All questions, concerns and issues relating to the Homeowner Association issues should be directed to your Property Manager, Tammy Hill via email at thill@developcommunity.com or at the office at 763-225-6472. Or she can be reached via fax at 763-225-6473. III. DISCLOSURE This Guidebook does not take the place of, or supercede, the Governing Documents (the Governing Documents ) of the Association and the Minnesota Common Interest Ownership Act (the Act ). The Act is a comprehensive set of Minnesota statutes that governs the operation of the Association. Each homeowner was given the Governing Documents prior to closing on his or her unit. If a conflict exists among this Guidebook, the Governing Documents, and the Act, the Act shall govern. If a conflict exists between the Governing Documents and this Guidebook, the Governing Documents shall govern. This Guidebook was prepared as a service by Community Development to the Association. Neither Community Development nor the Association guarantee that the information provided herein is not without error and/or omission. Neither Community Development Inc. nor the Association shall be held liable and/or responsible for any errors and/or omissions herein. According to federal copyright laws, unauthorized reproductions of this Guidebook without prior approval by Community Development are strictly prohibited. IV. ASSOCIATION GOVERNING DOCUMENTS The Association operates under the guidelines of the Governing Documents as well under applicable federal, state, county, and city laws/ordinances. The Governing Documents consist of the following: A. Articles of Incorporation of the Association B. Bylaws of the Association (the Bylaws ) C. Declaration of Covenants (the Declaration ) D. Policy Resolutions of the Association E. Rules and Regulations (the Rules and Regulations ) Homeowners may request hard copies or electronic copies of the Governing Documents by contacting their Property Manager. Note, there is a charge for hard copies of the Governing Documents. There is no charge for electronic copies. In accordance with the authority granted to the Association s Board of Directors (the Board ) by the Act, the Declaration, and the Bylaws, the members of the Board have voted on and adopted this Guidebook, including all of the Rules and Regulations, polices, and procedures contained herein. 4

V. GOVERNANCE OF THE ASSOCIATION A. Annual Meetings: According to the Act and the Bylaws, an Annual Meeting of the Association s members must be held once a year. The primary purpose of the Annual Meeting is as follows: 1. Elect members to fill vacancies on the Board 2. Review the previous year s financials 3. Review the next year s budget 4. Allow members the opportunity to gather information and voice their viewpoints You will be notified in the mail of the date, time, and location of the Annual Meeting. B. Board of Directors: Vacancies on the Board will be filled by members who are elected by the membership of the Association at the Annual Meeting. The number and term of the members of the Board are established in the Bylaws. Following the Annual Meeting, the Board will meet and appoint the officers of the Association for the upcoming year. All officer positions are for one year. The Board is responsible for establishing policies, procedures and guidelines for operating the Association. The Board may establish the Association s policies through the adoption of Rules and Regulations and through policy resolutions as allowed by the Act and the Governing Documents. The Board is charged with the responsibility of running a non-profit corporation (the Association) and as such it has real power and authority. Careful consideration should be given prior to serving on the Board and respect should be granted to those who do serve. C. Master Association: This Association is not a member of a Master Association. No further discussion is needed since there is no Master Association. This Association is a member of a Master Association and as such is often referred to as a sub-association. All members of this sub-association are by definition also members of the Master Association as well. This means that as a homeowner in this Association you are also a member of the Master Association. As a member of two Associations you are bound by the Governing Documents of both Association s. While assessments for both Association s are collected together for purposes of simplification, the Association s are in fact completely separate entities that operate separate budgets, reserves, bank accounts and have total segregation of all funds. Additionally, in the eyes of the government, they are separate corporations with completely separate Articles of Incorporation, Bylaws and Declaration of Covenants. Being a member of both Associations means that you will be provided with two different sets of Governing Documents, two different budgets annually and shall have the opportunity to attend two separate annual meetings annually. The document you are reading only applies to the sub-association. 5

D. Budgets: The Board is responsible for drafting the Association s annual budget each year. The Board has the authority to increase the assessments (commonly known as dues), however there are limits on how much it can increase the assessments from year to year without a vote of the membership. The Declaration establishes the exact percentage that the Board can increase the assessments from year to year without requiring a vote of the membership. The Board is also required to send each member a copy of the approved annual budget at the beginning of each year. Look for this in the mail within the first month of the year. Keep in mind that associations do not always follow a calendar year. Consult the Manager to find out when the Association s year-end is. E. Assessments: Assessments are due on monthly basis and are billed through the use of a coupon book. Although assessments are due on the first day of each month, there is a 30-day grace period before your account is considered delinquent. Homeowners who do not pay their assessments in a timely manner place a burden on those homeowners who are in good standing. Since the Association operates on a balanced budget, the Association depends heavily upon homeowners paying their assessments on time. When a homeowner does not pay his or her assessments the Association has remedies that include applying late fees, sending collection letters, filing liens, and foreclosing the lien against a delinquent homeowner s unit. According to the Act and the Declaration all past due amounts, administrative costs and attorney fees associated with the collection of delinquent accounts are the responsibility of the homeowner and part of the Association s lien against the homeowner s unit. Additionally, for those homeowners who are continually delinquent the Board has the right to accelerate their assessments and require payment for the balance in one lump sum. In the interest of maintaining the financial integrity of the Association and in accordance with the Act and the Declaration, the Association has adopted the following Collections Policy: 1. Any homeowner account not paid in full within thirty days of the date on the relevant billing statement (coupon statement) will be assessed a $25.00 late fee and will be considered delinquent. A First Notice will be sent to the homeowner informing him/her of the delinquency. If the account is not paid, including the late fee, within the next 30-day period, the homeowner s account will be turned over to the Association s attorney for collection. 2. Any homeowner account not paid in full within 60 days of the date on the billing statement (coupon statement) will be turned over to the Association s attorney for collections. Attorney fees and costs associated with the delinquency collection will be added to the homeowner s account and will need to be paid in full, along with all past due assessments and late fees, in order to bring the account current. 3. Any homeowner account not paid in full within 90 days of the date on the billing statement (coupon statement) shall face additional legal action by the Association, including, but not limited to, foreclosure of the Association s lien against the unit owned by the delinquent homeowner. 6

Payments received by homeowners will be applied in the following order: attorney fees, costs of collection, fines, late fees, and assessments. At the Association s discretion, payments will be applied to the oldest outstanding charge on a homeowner s account. From time to time it may be necessary for the Association to levy a special assessment to cover an unforeseen expense of the Association. If this becomes necessary, you will be notified and will have the opportunity to vote on the assessment. If the special assessment is approved, it will be levied; if the special assessment is not approved, it will not be levied. Consult the Property Manager or the Declaration for more information on special assessments. F. Reserves: As required by the Declaration, the Association maintains a reserve account for repair and replacement of exterior items that are defined in the Declaration as Association responsibility (as opposed to homeowner responsibility). The reserves are identified on the annual budget and are collected as a component of your assessments. The purpose of the reserve account is to allow for the Association to have adequate funds saved when capital repair/replacement projects become necessary, and hopefully to avoid the need for a special assessment. The reserve account is kept in a bank account separate from the Association s operating account. The Board may elect to invest the reserve funds in conservative investments that will ensure moderate growth and at the same time protect the principal balances. The reserve account is used for items such as roof repairs/replacements, exterior painting, or sealcoating of driveways. The exact list of items that the reserves may be used for can be determined by reviewing the Declaration or contacting the Property Manager. G. Architectural Review Committee (ARC): The ARC exists as defined by the Declaration. The ARC is a real committee with legitimate powers to approve and disapprove landscape and architectural modifications. All alterations, changes, modifications or additions to the exterior of your unit and/or the landscaping must be approved in writing by the ARC, pursuant to the provisions of the Declaration and this Guidebook. This includes, but is not limited to, the following examples, installation or changes to landscape beds, decks, patios, retaining walls, trees and fences. Prior to performing such alterations, changes, modifications and additions, you must submit to the ARC an Architectural Modification Application. Those Applications are sent out every spring to all the homeowners. You may contact the Property Manager to have an Application e-mailed to you as well. Please note that your failure to receive approval from the ARC prior to making such alterations, changes, modifications or additions is a violation of the Declaration. Violations may result in fines, administrative fees, legal fees and legal actions to correct the violations. 7

H. Rules and Regulations: The following Rules and Regulations have been adopted by the Association. General Rules 1. Any homeowner who wishes to report a violation of the Rules and Regulations must do so in writing to a Board member or the Property Manager. Writing may be via e-mail, fax or letter. 2. Except as otherwise provided in this Guidebook, residents may not leave any personal items in their yards and/or on their driveways overnight. This includes, but is not limited to, the following: trailers, play or recreational equipment, toys, gardening equipment, bikes, signs, and garbage cans. An exception of seasonal furniture that is removed immediately at the end of the season may be granted by the Board. 3. Garage doors shall be left closed when not in use. 4. Homeowners may not act or carry on in any manner that potentially endangers or infringes upon another resident s quiet enjoyment of the resident s property. 5. No signs of any sort may be displayed from a door or window of a unit that is visible from the exterior of the unit. 6. An owner shall not intentionally or negligently do anything that results in the cancellation of any insurance carried by him or her or by the Association, or which causes an increase in the premiums for such insurance. Pet Rules 1. The pet owner is responsible for any personal injury or damage to property caused by his or her pet(s). 2. A pet must be on a leash when on the exterior of the unit. 3. The pet owner is responsible for damage to any portion of the Association s landscaping caused by his or her pet. Damage includes, but is not limited to, anything that requires the following: sod replacement, shrub replacement, filling of holes, and landscape bed repairs. 4. Exterior dog kennels, runs, and pens are prohibited. 5. Breeding of animals is prohibited. 6. Pet owners agree to indemnify, defend, and hold harmless the Management Company, the Association, the Association s officers, directors, and other members, against any loss or liability of any kind or character arising from having an animal. 7. Pets shall not be allowed to bark, whine, cry, or behave in any manner that causes an individual s safety and/or quiet enjoyment of their property to be taken away and/or jeopardized. 8

8. Pet owners shall clean up after their pets at all times regardless of the season. Pet droppings shall not be allowed to remain on the ground for more than 12 hours. 9. Pet owners are responsible to follow all city pet ordinances. Rental/Leasing Policy 1. The homeowner is responsible for providing his or her tenant with a complete set of the Governing Documents and this Guidebook. 2. The homeowner must notify the Association of his or her alternate mailing address. 3. The homeowner must continue to pay all Association assessments and any fines associated with a violation by his or her tenant, and shall remain obligated under the Governing Documents the same as all other homeowners. Satellite Dish Policy 1. Dishes may not exceed 1 meter in diameter. 2. Residents are responsible for any damages to the Unit(s) caused by the installation of the dish. 3. Dishes must be approved by the ARC prior to their installation. 4. The contractor installing the dish must be fully insured. Parking Regulations 1. Parking in front of, and/or partially blocking, mailboxes, fire hydrants, driveways, roads, and entrances are prohibited. 2. According to city traffic ordinances, parking is not allowed on any street within the Association. Parking on the street may result in your vehicle being ticketed by the sheriff s department and/or towed by the Association. Please be aware that the streets within the Association are private, and therefore these rules may be enforced by the Association itself, or by the sheriff s department. 3. Recreational vehicles and trailers are prohibited from being parked in the street, in outside parking spaces, and in driveways. Recreational vehicles and trailers include, but are not limited to, the following: boats, snowmobiles, personal watercraft, RVs and utility trailers. Recreational vehicles and trailers must be kept inside a homeowner s garage. 4. Non-operable or unlicensed vehicles are prohibited from driveways, outside parking spaces, and the street. 9

5. A homeowner is responsible for all costs associated with the clean up of leaks, stains, and spills on a driveway or street caused by, or made in connection with, a vehicle owned by that homeowner or owned by a person visiting that homeowner. 6. Homeowners are not allowed to drive or park vehicles or trailers on the landscaping. Landscaping includes, but is not limited to, turf and landscape beds. If a homeowner drives or parks on the landscaping, he or she shall be responsible for the costs of all repairs including, but not limited to, the following: repairs to irrigation, turf, trees, bushes, shrubs, flowers, and landscape beds. 7. Any person violating the above parking regulations will be subject to fines, penalties and all other enforcement remedies available to the Association by the Act and the Governing Documents. In addition, the Association shall have the authority to tow a vehicle or trailer that is parked or kept in an unauthorized manner. All costs and expenses, included, but not limited to, attorney fees, incurred by the Association in enforcing the parking regulations shall be the responsibility of the violator and/or the owner of the unit visited by the violator if the violator is not an owner. Enforcement of Rules and Regulations A violation of the Rules and Regulations in this Guidebook will result in the following actions: 1. First Violation Notice: A violation notice will be sent to the homeowner. The notice will provide the time period within which the violation must be cured in order to avoid further actions. If the homeowner disputes the violation, he or she will be given the option to do so in writing to the Board. 2. Second Violation Notice: If, after the first violation notice, the violation is not remedied within the time period set forth in the first violation notice, the Association will levy a fine against the offending homeowner and that homeowner s unit, subject to the offending homeowner s right to a hearing as set forth in the next section. The fine shall be $25.00/day for each day that the violation remains uncured. Fines levied by the Association will be added to the offending homeowner s account balance. If the fine is not paid within 30 days of the date of the first violation, the Association will attempt to collect the fine in accordance with the Association s Collections Policy. The Association will pursue collection of the fine in the same manner as collection of delinquent assessments. This may include, but not be limited to, the following actions: late charges, administrative charges, attorney charges, liens, and lien foreclosure. Violation Hearing Violation Hearing: A homeowner who has a received a violation notice and chooses to dispute the violation may do so. The homeowner must make a written request to the Board disputing the violation and requesting a hearing in front of the Board. The request for a hearing must be sent to the Property Manager via e-mail, fax, or mail. The request for hearing must be received by the deadline set forth in the violation notice received by the homeowner. The hearing will be scheduled at a fair and reasonable time by the Board. 10

In the case of imposition of any fines for violations of the Governing Documents or the Rules and Regulations, the Board shall, upon written request of the offending homeowner, grant to the offending homeowner a hearing. The hearing may be held before the Board. The offending homeowner shall be given written notice of the nature of the violation and the right to a hearing, and at least 10 days within which to request a hearing. The hearing shall be scheduled by the Board and held within 30 days of receipt of the hearing request by the Board and with at least 10 days prior written notice to the offending homeowner. If the offending owner fails to request, or to appear at, the hearing, then the right to a hearing shall be deemed waived and the Board may take such action as it deems appropriate. Hearings shall be conducted in a fair and equitable manner. The decision of the Board, and the rules for the conduct of hearings established by the Board, shall be final and binding on all parties. The Board's decision shall be delivered in writing to the offending homeowner within 10 days following the hearing, if not delivered to the offending homeowner at the hearing. Any fines to be imposed by the Association may, at the Board s discretion, be retroactive to the date of the violation or offense. If the Board elects to dismiss the violation or offense, the matter will be closed immediately with no fine levied. However if the Board elects to confirm the violation or offense, then all fines associated with the violation shall be paid in full immediately following the hearing or within the time frame set forth in a notice to the homeowner. 11

VI. ROUTINE MAINTENANCE SERVICES According to the Declaration of Covenants, the Association is required to provide trash removal, snow removal and landscape maintenance services. These services are classified as routine services. Although many other services are provided by the Association these three services are the most common and frequent. A. Trash Removal Service: The Association has contracted with Randy s Sanitation for trash service. Trash removal service day is Tuesday. Randy s Sanitation provides recycling on the same day. The Association provides one 65-gallon trash container for each home. Please place your trash container at the end of your driveway no later than 7:30 AM on the day of service. Aside from the day of service, trash containers are to be kept inside your garage at all times. If you require a special pickup for non-standard refuse items please contact the Property Manager. B. Snow Removal Service: The Association s snow contractor will remove the snow from your driveway, front sidewalk and front steps. The Association does not remove snow from patio or decks. Each year the Board of Directors will sign a contract with a snow removal contractor. The snow contract will stipulate the snow removal parameters that the contractor is bound to follow. For example, the contract will stipulate a minimum snowfall requirement before the contractor is required to remove snow. Common townhome snowfall minimums are 1.5 or 2 of accumulation. Each October the Board will mail all residents the Snow Removal Guidelines for the coming snow season. The guidelines will provide you with a detailed understanding of how snow removal will function. Please read and become familiar with this document. Lastly, in most Minnesota winters, temperatures rise above freezing for brief periods causing snow to melt. When temperatures drop below freezing again, as they always do, it may result in small patches of ice on your driveway, sidewalk, or front steps. Ice resulting from this type of freeze/thaw cycle is not covered under the Association s snow removal contract. For this reason, the Association recommends that each homeowner purchase a small bag of de-icing salt. When this type of weather occurs it would be appropriate to apply the de-icing salt to any ice that forms on your driveway, sidewalk or front steps to ensure your safety as well as the safety of your guests. C. Landscape Maintenance Service: Each March, the Association will mail to all residents the upcoming season s Landscape Maintenance Guidelines. These guidelines will provide detailed information regarding the level of service you can expect for that landscape season. Any landscape service not provided by the Association is considered to be a homeowner responsibility. An example of a homeowner responsibility would be a homeowner who plants annuals on his or her unit will be required to maintain the annuals. Watch for these guidelines each March and contact the Property Manager if you have any questions regarding landscape services. 12

VII. ETERIOR REPAIR/REPLACEMENT RESPONSIBILITIES CHART As defined by the Association s Declaration of Covenants, the maintenance, repair and replacement of certain exterior items is the responsibility of the Association and all other items are the responsibility of the homeowner. The following chart was created to clearly identify those areas of responsibility. ITEM ASSOCIATION HOMEOWNER Air Conditioner Drain Pipes Driveway Sealcoating Driveway Repair/Replacement Deck Staining/Painting Deck Repair/Replacement Door Exterior Side Door Hardware Doors Storm Doors Dryer Vent Exterior Garage Door The Door Itself Garage Door Hardware Gutters Interior Items All Irrigation System Landscaping (grass, shrubs, trees) Lighting (Exterior) Locks Mailbox Patio Pest Control Plumbing & Sewer Privacy Fence Roof - Shingles Roof Vents Siding Exterior Sidewalk & Steps Front Sump Pump Hose Windows Frames and Sash Windows Screens Windows Hardware Windows Glass All Other Items Not On This List All items that fall under Association responsibility are done at a scope and frequency determined at the sole discretion of the Association s Board of Directors. Additionally, if a homeowner intentionally or unintentionally damages their home in a manner that requires repair/replacement of an item under Association responsibility the homeowner will be responsible to pay for the repairs/replacement. For example, a homeowner installs a satellite dish, which causes the roof to leak; the homeowner would be financially responsible for the roof repairs. If you have a specific question about an item not identified on this list, please contact your Association s Property Manager. 13

VIII. ASSOCIATION INSURANCE The Association maintains the insurances as required by the state of Minnesota and by the Association s Declaration of Covenants. Those insurances are: A. Directors and Officers Insurance: D & O insurance as it is called for short, is required by the state. This insurance protects all Directors, Officers, Committee Members and other volunteers of the Association from any personal liability in connection with their service to the Association. B. General Liability Insurance: This insurance is also required by the state. It insures the Association against a liability claim. For example, the Association is required to hire lawn mowers to mow the turf. If a lawn mower were to hit a rock and cause it to be thrown through the air and accidentally hit someone injuring them the Association as well as the lawn company may be sued. In this case, the liability insurance would protect the Association. C. Fidelity Insurance: This insurance is also required by the state. Fidelity insurance insures the Association s funds against theft by those who have access to it. Namely the Board of Directors and the Management Company. 14

D. Property Insurance: This insurance is required by Declaration of Covenants. The property policy covers the entire structure. It does not cover any personal property, betterments or improvements. If you have any questions about the Association s insurance coverage please contact the Property Manager. The HO-6 Policy The Association s Property Insurance does NOT insure a homeowner s personal property or improvements the homeowner has made to the unit. Because it does not cover personal property, the insurance industry created the HO-6 policy (HO stands for Home Owner) or Unit Owners policy. Unit owners are STRONGLY encouraged to purchase their own HO-6 policy. You may purchase this policy from the insurance company of your choice. The policies tend to have a wide range of endorsements available. You are recommended to have a policy that bridges any gaps in coverage left by the Association s insurance. Common endorsements are Coverage A, Loss Assessment Coverage, All Peril, and Gap Coverage. Consult an insurance professional for further information. A ll premiums for the Association s insurance shall be assessed and paid as part of the annual assessment. If improvements and betterments to the units are covered by the insurance, any increased cost may be assessed against the units affected. The Association may, in the case of a claim for damage to a unit or units, (i) pay the deductible amount as a common expense, (ii) assess the deductible amount against the units affected in any reasonable manner, or (iii) require the owners of the units affected to pay the deductible amount directly. The Association s decision as to who shall be charged with paying the deductible amount may, but need not, be based on fault. If the loss occurs inside the unit, the Association s deductible amount shall be the responsibility of the unit owner. The Association is not responsible for any loss to or of personal property. Upon request, the Property Manager can provide to you copies of the certificates of insurance coverage maintained by the Association. Insurance Deductibles The Association insurance policy has the following deductible amounts: A. Property insurance on the Common Elements and Units: $2500.00 B. Commercial general liability insurance: $2500.00 See below for an example of how this policy works. Note, it is very important that homeowners understand this policy and insure their property appropriately. You are strongly encouraged to consult an insurance professional. What if a loss occurs? It is very important for homeowners to understand how the claim procedure works, and to insure themselves appropriately. You are strongly encouraged to consult an insurance professional. If you believe you have a 15

loss, contact the Property Manager immediately and he or she will initiate the claim procedure. Below is A Sample Claim that explains the procedures that will be followed when a claim is made on the Association s insurance. A. A roof leak causes $13,000.00 in damage to a unit (which, in this example, is covered by the Association s property insurance). B. The Association has a $5,000.00 deductible on its property insurance, which is assessed to the homeowner. C. The homeowner has an HO-6 policy. The HO-6 deductible is $250.00. D. Since the deductible on Association s insurance is $5,000.00, the Association will receive an $8,000.00 payment from its insurance company to apply towards repair of the damage. The homeowner will file a claim with its HO-6 insurance carrier for the balance of the repair cost (which is, in theory, equal to the deductible on the Association s insurance ($5,000.00). E. The homeowner s HO-6 insurance carrier will pay to the homeowner and the Association the $5,000.00, less the homeowner s deductible on the HO-6 insurance policy ($250.00). The homeowner will then pay that $250.00 to the Association to apply towards the repair cost. F. In this scenario, the Association does not go out-of-pocket for any of the repair cost. The homeowner will go out-of-pocket $250.00. Any additional repair costs will be paid by the homeowner. If you have any questions about the Association s insurance coverage, please contact the Property Manager. 16