HORSESHOE BAY HOMEOWNERS ASSOCIATION HOMEOWNERS HANDBOOK. Revised & adopted 9/1/11

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1 HORSESHOE BAY HOMEOWNERS ASSOCIATION HOMEOWNERS HANDBOOK Revised & adopted 9/1/11

2 TABLE OF CONTENTS Introduction...Page 3 Management Company....Page 4 Violation Policy...Page 5 Architectural Control Committee... Page 6 Authorization...Page 7 Review Process... Page 8-9 Specific Review Guidelines... Page Architectural Review Form...Page 17 Current Approved Color Palette... Page

3 INTRODUCTION This manual contains the rules and regulations established by the Board of Directors of this Association. Additional or revised rules and regulations may be enacted in the future and distributed to the members of the Association, which additional or revised rules and regulations will be subject to the enforcement provisions set forth herein. This manual is intended to be of equal benefit to the homeowners and the community. Though some of these policies may seem restrictive in nature, they are designed as guidelines for good community relations. The provisions contained herein are supplemental to and incorporate the covenants contained in the document known as the "Declaration of Covenants, Conditions and Restrictions." At the time of purchase, every property owner in Horseshoe Bay signs a legally binding agreement to abide by the CC&R s. It is, therefore, important that every property owner in our community becomes familiar with the complete CC&R s of Horseshoe Bay as well as those of the Sun Harbor Community Association. Violations of these rules and regulations may result in otherwise unnecessary expense to the homeowner. Deviations from these guidelines shall be permitted with written consent by the Board of Directors. Such deviations must not violate City codes or ordinances and must be deemed harmless to the community by the Board of Directors. Your Board of Directors hopes these policies will facilitate communication and cooperation throughout Horseshoe Bay. Effective Date: 9/1/2011 3

4 HORSESHOE BAY RULES AND REGULATIONS Management Company Planned Development Services, hereafter referred to as "the management company", is presently under a renewable contract to manage Horseshoe Bay. The address and telephone number is: Complaints Planned Development Services 8765 W. Kelton Lane, Bldg A1, Suite 102 Peoria, AZ All complaints directed to the Association through the management company should be made in writing whenever possible. You may contact the Management Company for assistance with your complaint or problem. If the Management Company does not resolve your problem, ask to be placed on the agenda at the next Board of Director's meeting. You are respectfully requested to refrain from contacting individual Directors regarding your complaints or requests. The Management Company is being paid to handle these matters, while the Directors devote a great deal of time, without pay, to Association matters that require their attention. 4

5 VIOLATION POLICY Pursuant to Section of the Arizona Revised Statues, the Board of Directors shall have the power to impose monetary penalties upon the owners of Lots for violations of the Declaration of Covenants, Conditions and Restrictions, By-Laws and rules and regulations of the Association. This power shall apply to violations by the owner(s) and the owner(s) shall also be liable for any violation committed by a family member, guest, tenant or other occupant of the lot of the owner(s). This includes failure to obtain approval, when required under any Association governing document, of the Architectural Control Committee. The Association s notification and penalty process is described below: * A reminder will be sent to the homeowner via first-class mail to make them aware of the violation. If a similar violation occurs within a 6-month period, this step will be dispensed with. * After 10 DAYS, if the violation is not corrected, a written warning will be sent to the homeowner via first-class mail. * If, after an additional 10 DAYS, the violation is not corrected, a $50.00 fine will be assessed to the account. This fine notice will be sent certified mail. The homeowner will not be responsible for the cost of the certified postage at this time. * Again, after another 10 DAYS, and the violation has still not been corrected, an additional fine of $50.00 will be assessed to the account. Notification of this additional fine will be sent via certified mail. Please note that the homeowner will, at this time, be responsible for the cost of the postage of this and any subsequent penalties related to the same violation. * After the second fine is levied, every 10 DAYS after that, a $50.00 fine will be assessed to your account until the violation is corrected. The Management Company has discretion to resort to first-class mail notifications for the third and subsequent penalties. The homeowner will remain liable for postage expenses. * A hearing before the Board may be requested in writing at any time throughout this process. The Board must hear the request in a timely manner. The hearing will be scheduled within 10 DAYS of the request. 5

6 ARCHITECTURAL CONTROL COMMITTEE The Architectural Control Committee, hereafter referred to as "the Committee", is the primary governing body responsible for approving ANY additions, modifications or deletions to any residence contained within the community. The Committee is authorized under Article 8, Section 3 of the CC&R's. This Article and section also establishes the composition and delineates the members terms of service. Members of the Committee serve at the pleasure of the Horseshoe Bay Board of Directors ("the Board") and may be replaced or removed at any time as the Board deems necessary. If, for any reason, an Architectural Control Committee cannot be established, the Board of Directors has the authority to act in its place. Approval by the Architectural Control Committee does not negate the need for municipal or county permits. All homeowners and/or contractors are encouraged to consult with the City of Peoria, Maricopa County or other governing agency to determine what, if any, permits are required for improvements to any Lot or common area. 6

7 AUTHORIZATION As set forth below, written notification of any proposed changes must be submitted to the Committee for its consideration prior to undertaking the project. The Committee will take into consideration the suitability of the proposed alteration, the material to be used (including type and color), the site (including location, topography, finished grade elevation) upon which it is proposed to be erected, the harmony thereof with the surroundings and the effect of the alteration as planned on any adjacent or neighboring property. (Article 8, Section 1, CC&R's) No building, fence, wall, obstruction, balcony, screen, patio, patio cover, evaporative cooling system, solar collector, antenna, tent, awning, carport, carport cover, improvement or structure of any kind shall be commenced, erected, painted, or maintained upon the Project, nor shall any alteration or improvement of any kind be made thereunto until the same has been approved in writing by the Architectural Control Committee. There shall be no construction, alteration or removal of any structure or improvement in the Project which would impair or affect the integrity or stability of any existing structure and no changes to exterior color schemes in the Project shall be permitted without prior written consent of the Architectural Control Committee. (Article 8, Section 2, CC&R's) Plans and specifications showing the nature, kind, shape, color, size materials and location of such improvements or alterations shall be submitted to the Committee for approval. No permission or approval shall be required to rebuild in accordance with plans and specifications previously approved by the Committee. No landscaping of patios or yards visible from the street or Common Area shall be undertaken by the homeowner until plans and specifications shall have been submitted to and approved in writing by the Committee. 7

8 REVIEW PROCESS Homeowners in Horseshoe Bay are required to obtain written approval from both the Horseshoe Bay HOA and Desert Harbor Community Association prior to making any exterior improvements or alterations to their property visible from the lake or other common areas maintained by the Desert Harbor Community Association. Improvements or alterations visible from only the interior of the Horseshoe Bay HOA are subject to Horseshoe Bay ACC approval only. This approval shall serve as a de facto approval by the Desert Harbor Community Association. Should the Horseshoe Bay ACC deny a request for improvement or alteration, the homeowner can appeal the decision to the Desert Harbor Community Association. Written confirmation of the Horseshoe Bay ACC s decision must accompany the appeal. Application for improvement or alteration of a property requires that a standard application form be completed and submitted to the Management Company with supporting documentation. (See Attachment B) After consideration by the Board, the Management Company will return a written response to the homeowner. Sufficient information must be included with the application form to enable the Committee to understand the proposal, its contextual relationship, and any potential impacts on neighboring property or the overall community. This may include one or more of the following items depending on the nature and type of the proposed alteration or improvement: 1. A dimensioned site plan showing property lines, building setbacks, location of existing and proposed improvements, alterations, grade changes, etc. 2. A sketch of each elevation showing the height, dimensions, configuration, materials and colors. 3. Paint chips, material samples, manufacturers brochures or photos 4. Detailed construction plans, floor plans or landscape plans 5. Estimated timeframe in which the work will be completed. It is recommended that all projects be completed in 45 days, (total, cumulative days); however the HOA recognizes that not all projects are equal and some may require more time. As a courtesy to fellow residents, it is recommended that no work involving power tools, machinery or other noise-generating equipment, (including radios) begin before 7:00am or continue past 7:00pm. The HOA shall not enforce noise concerns. Noise complaints regardless or time or cause, must be made to the City of Peoria. The Committee will review all application forms for consistency with these guidelines and the requirements of the CC&R's. The Committee may reject incomplete applications, approve the request with or without conditions or deny the request. The Committee will then report their decision to the Board. 8

9 In the event the Committee fails to approve or disapprove such plans, specifications and proposed improvement or alteration within forty-five (45) days after said plans and specifications have been submitted to it, written approval by the Committee will not be required and Article 8 of the CC&R's will be deemed in full compliance. Homeowners are always required to conform to these guidelines and any applicable provisions of the CC&R's. However, the formal review process will be waived for the following types of alterations and routine maintenance for the sake of efficiency and convenience: When in doubt, please contact the Management Company or submit a request to the Committee for consideration. Please note that, while the items listed below do not require use of the formal review process, many are governed by Horseshoe Bay and Desert Harbor Community Association CC&R s, rules and regulations. Failure to comply with applicable provisions of the CC&R s and the rules and regulations which are established in the following pages, may result in a violation letter and, if necessary, assessment of a monetary penalty until such time as the violation is corrected. 1. Security doors on the first floor, rear elevation of the house for interior Lots. Other Lots may be subject to Desert Harbor Community Association restrictions. 2. Refinishing yard gates 3. Temporary holiday lighting and yard decorations 4. Rear yard landscaping for interior Lots. Other Lots may be subject to Desert Harbor Community Association restrictions. 5. Minor routine maintenance such as caulking and paint touch-up (This does not include major house repainting) 6. Shade and bug screens on the first floor, rear elevation of the house. Screens, however, must conform as to color as set forth in the regulations of the Association. Other Lots may be subject to Desert Harbor Community Association restrictions. 7. Minor changes to front yard landscaping such as plant or tree replacement and sprinkler system repair which does not change grades, affect the relative amount of hardscape vs. plant material, or otherwise change the landscape character 8. Rear yard patio mist systems 9. House wall decorations on the first floor rear elevation or, 10. Replacing exterior lights for which prior approval was obtained from the Horseshoe Bay HOA or those installed by the builder 9

10 SPECIFIC REVIEW GUIDELINES 1.0 HOUSE EXTERIOR Awnings Canvas or other fabric awnings mounted on internal steel or aluminum frame may be approved on any window. Aluminum, wood or painted steel awnings will not be approved. Shiny fabric, backlighting and ornamentation beyond simple stitching or piping will not be approved. The size and style of the awning must be in proportion with the window and the elevation. The awnings on the house must have a uniform color. Stripes and other patterns will not be approved. Permissible colors are those which match either the exterior color of the house or the trim as established in the approved Horseshoe Bay color palette. Doors, Front Entry Front entry doors should match in material, style and finish the originals used by either L.J. Hooker or Rising Star Homes. The doors must be made of wood with carved accents or panels. Flat surface doors are not acceptable. Leaded glass inserts are optional. If stained, the finish must allow the natural beauty of the wood and be of a medium-oak color. Though not preferred, doors may be painted to match the approved trim or accent color of the home. Doors, Garage Sectional metal roll-up doors should be similar to those installed by the builder. They must be painted to match the color of the house or trim. Doors, Other Primary Patio doors, balcony doors and garage service doors should be similar in style to those installed by the builder. They must be painted to match the trim or accent color of the house. Doors, Security and Screen Screen doors will not be permitted on the front doors. Security doors with screen inserts are permitted provided that they are kept within the aesthetics of the neighborhood and are painted to match the exterior color of the house trim or accent. (See Attachment C for examples of approved security door styles.) 10

11 Front Entry Canopies Front entry canopies will not be permitted. Screens, Shade All shade screens must be black in color with an aluminum frame and maintained in original condition at all times. An alternative color frame is acceptable only if it complies with the approved color palette for the home. If the homeowner desires, all shade screens may be removed from the residence. Lattice Lattice must be painted to match the exterior color of the house or its trim or may be stained an identical color as the backyard access gate. Lights, Front Elevation Coach lights similar in size and style with those offered by the builder may be mounted on the exterior of the house. Other styles, such as those conforming to the architectural style of the house and overall aesthetics of the neighborhood, may be approved. The lights should be uniform in design. Lights, Entry Some elevations may accommodate a hanging chandelier in the entryway. It may be removed without the need for prior approval. When replacing it, it should be done with a light fixture similar to the one installed by the builder. Other styles, such as those conforming to the architectural style of the house and overall aesthetics of the neighborhood, may be approved. Lights, Other Except as may be installed by the Declarant, no spotlights, floodlights or other external lighting shall be placed upon any unit without the prior written consent of the Architectural Control Committee and the Board of Directors. Exposed conduit or wiring must be painted to match the color of the structure against which it is placed. Lights, Temporary Seasonal Seasonal lights may be attached to the outside of the house thirty (30) days prior to the holiday. They must be removed within thirty (30) days of the event. 11

12 Materials and Colors All repairs and new construction should match the original construction. This includes the application of stucco finish where appropriate. The exterior walls of the house, including any block fencing, and its trim must be painted with an approved color. (See color palette below.) Aluminum and vinyl siding is not acceptable. Color Palette- Attachment A Mechanical Equipment All air conditioning and other mechanical units must be ground mounted. The unit must not be visible from the street or Common Area. Patio Covers All attached patio covers must be constructed to match the architecture and trim color used by the original builder.. Patio extensions and enclosed patio covers (a.k.a. Arizona Rooms) may be approved by the ACC, but such improvements shall be constructed to match the existing home to the extent possible. Wall Decorations, Front Elevation Wall decorations will be reviewed on a case-by-case basis for architectural compatibility. Decorative addressing numbers are not considered wall decorations and can be changed at the homeowner s discretions, provided no single number is larger than 6-inches in height. Solar Collectors Whenever possible, solar collectors should be located in the back yard and not be visible from the street or common areas. Driveways Driveways shall be kept clean and free of oil, grease, stains, rust and other similar, unsightly markings. Alternative paving materials shall be permitted with written approval by the ACC. Examples of alternative paving materials include smooth concrete, salt-finish concrete, stained concrete to match color palette, pavers, brick, brick accents in concrete, or other material deemed appropriate by the ACC. Glass The Owner shall repair damage to any glass surface of a home within seven (7) days of occurrence. Windows may be tinted with a non-reflective material at the homeowner s discretion. ACC approval is not required for window repair or tinting; however damaged or failing window tinting is subject to notification of repair and penalties if not corrected in accordance with this document. 12

13 2.0 Parking General No vehicle, including motorcycles or boats, which is inoperative or abandoned shall be stored or kept on, or in front of, any Lot. No vehicles or mechanical equipment may be dismantled or allowed to accumulate on, or in front of, any Lot. All vehicles of homeowners and their guests should be kept in the garages or residential driveways when at all possible. No vehicle, camper, boat, trailer, mobile home or recreational vehicle may be parked on a side yard. Recreational Vehicles No recreational vehicle, mobile home, boat or similar type vehicle may be parked in front of any Lot or in a front driveway or otherwise on any Lot where it can be seen from any street for a period not to exceed 4 consecutive hours. Such vehicles shall not be stored in any rear yard if visible from any street, adjacent Lot or common area, including the lake. This does not apply to pickup trucks of less than 3/4 ton capacity with camper shells not exceeding seven (7) feet in height or mini motor homes not exceeding seven (7) feet in height or eighteen (18) feet in length which are used on a regular and recurring basis for basic transportation. 3.0 Yards Play Structures All adjoining neighbors and those within view must give written approval for the installation of any play equipment that extends vertically past the height of the wall before the committee will consider its approval. Play equipment needs to be placed no closer than six (6) feet from any block wall and not be visible from any common area or street. All play sets must be maintained in like-new condition at all times. Canvas covers shall be green or tan so as to blend with the surrounding area. Play structures will be considered on a case by case basis. Clotheslines Exterior clotheslines shall not be erected or maintained nor shall there be any outside laundering or drying of clothes. Gates Gates may be stained with a transparent finish resembling redwood, cedar or oak colors. Gates may also be painted the same color as the house body or trim. Any missing hardware must be replaced. Gate hardware must also be replaced when it has deteriorated to the point of being unsightly or is no longer capable of performing the function for which it was designed. Any broken or missing wooden slats or support beams must be replaced in a manner so as to preserve the uniform appearance of the gate. This includes, but is not limited to, the dimension of the replacement parts, type of wood used and application of approved finish if necessary. 13

14 If replacement of individual parts will not restore the gate to proper working order or bring the aesthetic appearance up to an acceptable level, it will be necessary for the homeowner to replace the entire gate. The new gate must be of the same architectural design and dimensions as the original and be constructed of the same type of wood and hardware. It is not necessary to apply an approved finish to the new gate until such time as weathering becomes apparent. Lights, Malibu-type, Front Elevation Malibu-type lights for the front yard are not acceptable. Basketball Standards, Permanent and Temporary Basketball poles and backboards are permitted with written approval from the ACC. Immediate neighbors must indicate in writing that the homeowner of the proposed installation has notified them. House-mounted backboards are prohibited. Permitted backboards shall be clear to minimize visual clutter and poles must be painted black or dark gray and shall be permanently installed in a concrete foundation. Portable basketball poles and backboards are permitted, but must be stored inside or out of sight when not in use. 4.0 Signs Sale, Lease or Rent Signs Signs should not be located where they will block views from driveways. Signs, which hang over the rear yard walls, are not permitted. 5.0 Access to Common Areas General Reasonable use, including time of day and equipment, should be exercised. Pool No person under the age of sixteen (16) is permitted to use the pool without adult supervision. Glass containers are prohibited at the pool/spa and surrounding area. Guests must be accompanied by resident when using pool/spa. Violation of these rules may result in revocation of an individual s pool usage. Pool and common area hours are restricted to 6:00 a.m. to 11:00 p.m. 6.0 General Garage Sales Two (2) are permitted for the association each year. The Board shall establish the time and date. 14

15 Antennas The installation, use and maintenance of satellite dishes and antennas will be allowed in accordance with FCC regulations. Installation must be in accordance with the manufacturer s instructions. If the antenna is attached to a mast, the following regulations apply: A. Mast height shall be no higher than absolutely necessary to receive acceptable signal quality. B. Masts that extend more than 12 feet above the roof line must be approved by the Association before installation and the application to do so must include a detailed description of the method by which the mast is secured and an explanation regarding the necessity of such a mast. C. Masts must be painted to match their surroundings. D. Masts must not encroach upon the common area or another s property. E. Masts installed upon a roof may not be installed nearer to the lot line than the total height of the mast and antenna. Location and Installation Pets A. No antenna may encroach upon the common area or the property of another owner. B. An antenna must be placed inside the dwelling if an acceptable signal quality may be received from any place within the dwelling. C. The antenna must be shielded from view from the street and neighboring properties to the maximum extent possible as long as an acceptable signal quality may be received. If necessary, to shield the antenna from view, the Association may require that the antenna be shielded by reasonably priced landscaping that complies with the Association s landscape requirements. D. Antennas, masts and any visible wiring or conduit must be painted to match the color of the structure to which they are installed. No animals of any kind shall be raised, bred or kept on any lot, except that usual and ordinary household pets such as dogs, cats or birds may be kept, provided that they are kept under control at all times. All cats and dogs shall be on leashes when outside of the owner's home. 15

16 Garbage Cans All garbage and recycling containers shall be kept screened and concealed from view of the other Lots, streets and Common Area. In no event shall such containers be maintained so as to be visible from neighboring property except to make them available for collection and then only for the shortest time reasonably necessary. Speed Limit The posted speed limit is 15 miles per hour. 7.0 Landscaping Trees It is the responsibility of the homeowner to maintain his or her trees. Adjacent Lot owners are encouraged to coordinate the maintenance of trees that overhang property lines. Trees shall be maintained in a manner that promotes the health of the tree. Desert trees are encouraged, however in areas where the public is likely to come into incidental contact with the tree, thornless species are encouraged. The HOA shall not regulate the number or species of trees being placed on any Lot. Tree canopies overhanging sidewalks shall be trimmed to approximately 7-seven in height and approximately 11-feet in height where overhanging the street. Tree canopies not overhanging sidewalks or streets shall be trimmed to approximately 5-feet in height. No part of any tree shall have sustained contact with any part of a home or yard wall. Trimming to prevent incidental contact due to wind is encouraged. Fallen trees and branches must be removed from sight within forty-eight (48) hours of occurrence. Grass To maintain integrity of the community, dormant grass in front yard needs to be replaced with winter grass and maintained year around. An alternative to grass would be desert landscaping which requires approval from the ACC. Weeds Weeds must be removed from all properties as soon as visible growth appears 16

17 ARCHITECTURAL REVIEW REQUEST The Desert Harbor CC&R's require that a homeowner obtain the prior, written approval of the Architectural Committee for any exterior alteration or addition to any property within the Desert Harbor Community Association. To comply with the CC&R's, please complete the form below. Under NO circumstances is work to commence prior to final approval of both the Sub-Association and Master Associations. Homeowners shall also be responsible for obtaining all required City or other Building Permits. Owner's Name: Date: Property Address: Home Telephone: Mobile Phone: Sub-Association: Brief description of work to be performed: Lot Number: ESTIMATED START DATE COMPLETION DATE Please attach three (3) copies of detailed plans of the proposed alteration or addition. Your Sub-Association will keep a copy, the Master Association will keep a copy, and you will be returned a copy. Comments: FOR SUB-ASSOCIATION ARCHITECTURAL COMMITTEE USE ONLY Approved Denied No Action or Review Required Signed: Date: Sub-Association shall review request and provide comments on all three (3) sets of plans as required. Then forward all three (3) sets of plans onto the Master Association for review. Comments: Mail to: Desert Harbor Architectural Committee FOR MASTER ASSOCIATION Planned Development ARCHITECTURAL Services COMMITTEE USE ONLY Approved 8765 W. Denied Kelton Ln., Bldg. A1, Suite No 102 Action or Review Required Peoria, AZ Signed: Date: Master Association shall review request and provide comments on all three (3) sets of plans as required. One copy of reviewed plans shall be retained by the Master, one copy will be returned to the Sub-Association for its records and the final copy will be returned to Owner. Mail to: Horseshoe Bay Architectural Committee Planned Development Services 8765 W. Kelton Ln., Bldg. A1, Suite 102 Peoria, AZ Revised AQR