Woodman Hills Filing #11Revised Rules Board Amended 03/24/2010 Effective 05/01/2010. Introduction

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Woodman Hills Filing #11Revised Rules Board Amended 03/24/2010 Effective 05/01/2010 Introduction The Purpose of Rules and Regulations The purpose of the Woodmen Hills Filing No. 11 Rules and Regulations is to help create an environment that is pleasing from both aesthetic and practical points of view. The Rules and Regulations apply to all Improvements within Woodmen Hills Filing No. 11, including site planning, architectural design, landscape design, fences, walls, signage, lighting, and site furnishings for all Lots. Design is a complex process balancing many issues. These Rules and Regulations try to balance the immediate wishes of an Owner/builder with the long-term responsibilities to the community and environment. These Regulations are not intended to be rigid regulations, nor are they intended to promote a particular type of design. Variations from these Regulations may be appropriate when weighed against other considerations. The Rules and Regulations do not supersede or modify any existing applicable codes or ordinances. The Board of Directors does not assume responsibility for assuring the conformance of Improvements to applicable local codes and ordinances. The Design Review Committee The purpose of the Design Review Committee ( DRC ) is to review and approve proposed Lot Improvements by Builders and Owners within Woodmen Hills Filing No. 11, Lots 1180-2052, according to the procedures outlined herein. The Design Guidelines are subject to the interpretation of the DRC and the Board of Directors. Additionally, the Board of Directors may amend the Rules and Regulations from time to time, as provided for in the Declaration. The Design Review Process The specific duties and powers conferred on the DRC are set forth in the Declaration. The Rules and Regulations do not supersede adopted regulations and ordinances of applicable jurisdictions and agencies, but may be more restrictive. All construction that is to be undertaken in this community including new construction, subsequent exterior improvements or renovations, and site construction are subject to review under the Rules and Regulations. After approval through this process, the appropriate building permit(s) may be applied for. Unless prohibited, or otherwise specified in this document, any alteration, improvement/addition made on any property within Woodmen Hills Filing No. 11 must receive prior written approval. All Owners (hereinafter referred to as Owners, including all Owners, builders, consultants, and any other designated representatives) shall comply with the following process, in order to gain approval from the DRC for any construction. {05541139.DOCX;1}1

Lot Improvement Standards I. Approval Not Required For certain improvements the submission of a request and approval of the Committee is not required. However, please remember this does not rule out the need to check with outside agencies nor remove the requirement to complete the work in a timely manner. The following are items homeowners may proceed without approval: 1. Addition of plants to a property in accordance with a previously approved landscape plan. 2. Modifications to the interior of a residence where the modifications do not affect the outside appearance of the structure 3. Repainting and/or re-staining of structures in original colors. 4. Repairs to a structure in accordance with previously approved plans and specifications. (Maintenance and upkeep of structures.) 5. Reroofing with Good (or Better) Grade asphalt shingles of the same color. (Remember permits and possible need for previous layer(s) removal. II. Approval Required Any other improvement modification, alteration, change, not referenced in the section above, must be submitted to the Committee for approval. A. Architecture The purpose of the architectural regulations for Woodmen Hills Filing No. 11 is to encourage variety as well as compatibility within a neighborhood and with surrounding neighborhoods. All architectural drawings shall be approved by the DRC prior to commencement of Improvements B. Roof Materials and Colors A variety of roof colors is encouraged within the community. Use of dimensional composition shingle, concrete or clay tile, standing seam metal and built-up roofing is acceptable. C. Exterior Colors Exterior colors shall be limited to earth tones and muted (not vibrant or flashy) colors. White trim paint is permitted. {05541139.DOCX;1}2

General Landscape Criteria Landscape guidelines are intended to promote variety while unifying the neighborhoods and adjoining lots. Water Conservation and Irrigation The Metro District may have water restrictions and suggestions on water conservation. Use of low-water use plant materials and ground covers, efficient underground irrigation systems and regular maintenance practices that conserve water are strongly encouraged. Irrigation systems should be designed to minimize overspray and water waste, utilizing drip irrigation whenever possible to water shrubs, trees and perennials. Plant Material Setbacks Trees with vigorous, shallow root systems such as willows and cottonwoods are not permitted within 10 feet of building foundations, driveways, and curbs. Care should be used in placement of trees and plant material so access and visibility are not limited near sidewalks, roadways and building entrances. Landscape Grading The original finish grade of the Lots has met the standards of El Paso County. Planting, earth mounding and hard-scape areas shall not impede or significantly alter drainage patterns. Landscape Restrictions Builders and Owners should refer to County of El Paso, utility company, District or other applicable governmental agency standards for landscaping within a site triangle, around fire hydrants and utility boxes, vaults and meters. Landscape Installation Timing A landscape plan for the lots shall be submitted to the DRC for approval prior to installation. All landscaping shall be completed no later than nine months after initial purchase of the property as evidence by a warranty deed transferring title of the property to the first purchaser. Subsequent purchase of the home shall have all landscape completed no later than six months after purchase of the property (only applicable if portions of the lot are not landscaped at time of purchase) Upon request, the Board of Directors will consider and may grant and extension of this period should extenuating circumstances exist. Landscape Maintenance Landscaping shall be well maintained. Xeriscape landscape methods are strongly encouraged. Weed control is required, avoiding an unkempt appearance on the property. Xeriscape is defined as the application of the principles of landscape, planning and design, soils analysis and improvement, appropriate plant selection, limitation of turf area, use of mulches, irrigation efficiency and appropriate maintenance that results in water use efficiency and water saving practices. {05541139.DOCX;1}3

Xeriscape is not accomplished by applying rock or mulch to an expansive area without plantings; furthermore, xeriscape does not eliminate the use of turf areas. For more information regarding xeriscape, visit www.xeriscape.org. Minimum Planting Requirement The landscape of each lot shall include a minimum of three trees with a minimum of one tree placed in the front yard. Minimum tree sizes are 6 evergreen and 2 caliper deciduous. Sound horticultural practices, such as placing natural wood mulch around trees, are strongly encouraged. Sod/Turf Real or artificial grasses are allowed with prior approval. Indoor/Outdoor carpeting material is not allowed. Native grasses will be allowed on lots in excess of ¾ acre, but must be contained in the rear lot. Native grasses cannot be installed in such a way to create a fire hazard. Native grasses, if presented and approved by the DRC, require maintenance of mowing to keep the Native grass height below 12, with weed control applied as needed. {05541139.DOCX;1}4

Other Property Improvements Fencing No fences or walls (fencing) shall be constructed on any Lot without the prior approval of the Board of Directors. All fencing must be in conformity with the standards and design specifications adopted from time to time by the DRC. Fencing standards will control the height, size, color, location and material composition of all fences. Fencing within front yards is strictly prohibited. Chain link and snow fencing are not an acceptable fence material and is strictly prohibited. Setbacks: Fencing must be set back a minimum of 15 feet from the front corner of the home (not including a porch element). Matching the setback for wing fencing with the adjacent property is encouraged as long as the minimum setback is met. Fences may accomplish two purposes: 1. Open-rail fences define interior lot lines of side and rear yards with maintaining an open appearance. Open-rail fences are not intended to offer security. 2. Privacy fences provide limited areas of privacy and screening for outdoor living areas. There are two types of lot fencing permitted: 1. Three-rail lodge-pole fence, which is placed at a height of four (4 ) feet and is constructed of round pressure-treated dowels. 2. Cedar picket privacy fence, having a maximum height of 6, with slats not less than 4 or more than 6 in width, placed vertically without spacing. The pickets shall face outward with the framework exposed to the interior of the yard. These styles of fencing may be used within the neighborhood of Filing 11 as follows: Lot Fencing Adjacent to the Golf Course To maintain consistency along the Golf Course, the Master home builder has provided fencing along all lots adjacent to the Golf Course consisting of a 3-rail lodge-pole style fence. Any replacement fencing shall be of the same specifications as the existing fencing installed by the Master home builder. All fencing (including wing fences) installed on lots 1295-1409, 1595-1649, 1767-1770, and 1799-1828 must be 3-rail lodge-pole style fence (as defined above). Fencing must be placed along both side lot lines. Wire mesh must be attached to the interior of the lodge-pole fencing (including the fencing installed by the Master home builder) subject to the conditions of the Wire Mesh section. Lots adjacent to the golf course may install privacy (cedar fencing as long as it is limited to an area enclosing a patio or hot tub. Lot Fencing Not Bordering the Golf Course Lots 1410-1594, 1650-1766, 1783-1798 and 1829-2032: Side and rear yard fencing shall be constructed of cedar picket privacy fence. Fencing must be installed along side and rear lot lines. All other lots not bordering the golf course: Side and rear yard fencing shall be limited to 3-rail lodge-pole style fencing. {05541139.DOCX;1}5

Privacy Fencing Owners of lots that are not adjacent to the golf course, but require a split rail perimeter fence, may install, subject to DRC approval, cedar picket privacy fencing in the rear yard to provide a limited private outdoor living area subject to the following conditions: a. The fencing consists of cedar slats not less than 4 or more than 6 in width, placed vertically without spacing b. The enclosed area shall not exceed 25% of the total square footage of the lot. c. The privacy area shall be maintained a minimum of 5 from the side property line and a minimum of 15 from the rear property line. Wire Mesh Two-by-four inch welded wire mesh is permitted to be used in conjunction with an open-rail fence for the purpose of enclosing pets, attached to the interior of the fence system. Wire mesh will be inspected periodically by the DRC; if not properly maintained, the DRC may require immediate repair, replacement or removal. Wire mesh, used alone with steel or wood posts, is not permitted. Dog Runs Dog runs are restricted to side and rear yard placement; a maximum of 300 square feet is permitted. Dog run fencing may be constructed with either style of fencing (see Fencing) but in no case shall the run exceed a height of 6. The run area must be adequately screened in the opinion of the DRC from adjoining residences and streets. The DRC may require the use of landscape material to buffer the visibility of the run. Owners may install an invisible electric pet fence. Electric fencing is limited to rear and side yard placement. Dog Houses DRC approval of the materials, dimensions and placement of dog houses is required. Generally, such structures shall be placed in the rear yard. Driveways/Address Parking Elsewhere Driveways shall meet the width, thickness and lot coverage requirements identified in the County Zoning Code. In addition, driveways may not comprise more than seventy five (75%) percent of the front portion of any Lot. Dirt, gravel and asphalt will not be permitted for use as a driveway material. Driveway materials such as concrete, colored concrete, brick, exposed aggregate, and textured concrete are allowed. A minimum of two vehicular parking spaces within an enclosed garage shall be provided on all Lots. A minimum of two spaces shall be provided on the driveway. Sidewalks Sidewalks are the property of El Paso County and are not to be permanently painted, stained or sealed. Decks, Balconies and Covered Patios The design of elevated decks and balconies, including colors and materials, shall be consistent with the main structure and not appear tacked on. All vertical elements (deck railings, supports, {05541139.DOCX;1}6

and columns), fascia and overhead structures shall be painted or stained to match the body color of the main structure. Metal railings may be painted an accent color. Columns or supports are encouraged to appear substantial and proportionate to the building mass of the home. Retaining Walls Retaining walls shall be as low as possible, not to exceed 3 feet in height unless specifically approved by the DRC. Grade changes which require retaining walls shall be terraced, with a minimum separation between walls of 3, and include landscaping between walls. Acceptable finish materials for retaining walls visible from the street, District areas or Golf Course include natural stone, manufactures stone, masonry (except grey precision block) and stucco. The use of boulders and dry set stone is highly recommended. Other materials such as textured or split-face concrete block, high quality wood timbers and other materials that are consistent with the natural surroundings and architecture of the residence may be considered on a case-by-case basis. All concrete-backed retaining walls should be waterproofed and must be adequately drained on the uphill or surcharge side. Accessory Structures The following standards shall apply to accessory structures: Maximum square footage of a detached garage or workshop shall be 1,200 sq ft. Maximum square footage of other accessory structures (garden shed, greenhouse, playhouse, etc.) shall be 240 sq ft. Maximum height of a detached garage or workshop shall be 25 feet; however at no time shall an accessory structure be taller than the primary structure. Maximum height of garden sheds, playhouses and gazebos shall be limited to 12ft. in height. Accessory structures shall be similar in architectural style of the primary residence and shall be painted or stained to match the primary residence unless specific written authorization is given by the DRC for a variance. Roof materials shall match the roof material of the primary residence. Accessory structures shall generally be placed in the rear yard; structures are not permitted within building setbacks or easements. Accessory structures proposed on highly visible lots (i.e. corner lots) shall be given consideration based upon visual impact to community roadways. Consideration of visual impact upon adjacent residences shall be given on all accessory structures. Building permits required by El Paso County shall be the responsibility of the owner. Flagpoles Owners have the right to display the American flag within their property, subject to the following standards; Displayed: by a pole attached to the home or a free-standing flagpole Flag size: maximum of 3 x 5 {05541139.DOCX;1}7

Flagpole standards: maximum 20 in height (placement must be approved by the DRC). Owners may also display a Military Service Flag denoting the service of the owner or a member of the owner s immediate family in the active or reserve military service during times of war or armed conflict. Owners should observe the Federal Flag Code USC4-10 when displaying their flag(s). House Address Numbers No more than two sets of address numbers are allowed for each property. Address numbers may be placed at the street and on the residence. The address numbers shall not exceed a total of one square foot for each number. Address numbers located at the driveway shall be on an approved fixture. Solar Equipment When solar panels are used, they are to be integrated into roof designs. Frames must be colored to complement roofs to which they are attached. Related plumbing and mechanical equipment must be enclosed and/or screened from view. Air Conditioning and Evaporative Cooling Units Air conditioning and evaporative cooling units shall be located at ground level adjacent to the residence they serve, and screened from public view. Units located on roofs, in windows or attached to the side of a building are prohibited. Gutters, Downspouts and Vents Design Gutter and downspouts shall be integrated into the design of the residence and appear as an unobtrusive architectural element. Downspouts shall be located on vertical members in inconspicuous locations. Color Requirements: All gutters, downspouts, flashing, sheet metal, radon mitigation systems, vent stacks and pipes shall be painted to match the surface to which they are attached or from which they project. Hot Tubs / Spas and Pools Design Requirements Hot tubs may be incorporated into decks or patios or may be freestanding; however, all freestanding units must be treated to visually blend with the residence, or be adequately screened. Screening, including landscape buffers, may be required at the discretion of the DRC to minimize visual impact. Location: Hot tubs and pools are permitted in rear yards only and must be designed and located to minimize visual impact and potential nuisances to adjacent properties, common areas and the golf course. Swimming pools may be in-ground or above ground and must set back a minimum of 10 feet from any property line. {05541139.DOCX;1}8

Antennas, Satellite Systems, Poles, Utility Lines and Transmitters The Telecommunications Act of 1996 allows satellite dishes measuring 1 meter in diameter or less to be installed such that acceptable signal reception is not impaired. Except for utility meters, pipes for water, gas, sewer, drainage or other purposes, all wires, poles, aerials, antennae, satellite dishes and other facilities for the transmission or reception of audio or visual signals or electricity or other utility facilities shall be kept and maintained, to the extent reasonably possible, underground or within the Property except as may be approved by the Design Review Council. No exterior radio antennae, television antenna, or satellite dish shall exceed one (1) meter in diameter and project higher than four (4) feet above the tallest projection of the dwelling unit or other improvement. Recreation Equipment Sports equipment, recreational equipment, play structures, swing sets, and amusement structures ( Equipment ) shall not be permanently placed in the front portion of any Lot except that a basketball hoop (neutral colors only) may be placed on a permanent pole or portable apparatus on the driveway of a Lot. If a portable basketball apparatus is on the property, while not in use it must be moved upright and adjacent to the home or stored out of street view. Equipment exceeding 8 feet in height shall require prior DRC approval of height, color, and placement, all of which should minimize visual impact upon neighboring Lots. Lighting Lighting design should take into account the effect on neighboring homes, preventing light spillage onto adjacent properties. Floodlights for the purpose of lighting large areas shall not be permitted except for security purposes with limited use, or where approved by the DRC. The use of landscape up-lighting or down-lighting is encouraged. Lighting that causes glare, discomfort or disrupts the visual environment of neighboring lots is prohibited. All exterior lighting requires DRC approval before installation. All exterior lighting, including sports court and motion-detector security lighting, shall be designed to avoid spilling onto adjacent lots. Concealed light sources such as wall sconces, recessed lighting, soffit lighting and directional lighting are preferred. Exposed bulbs (not within a fixture) are prohibited. Windows and Window Coverings No reflective glass is permitted. All window coverings shall consist of curtains, drapes or other acceptable treatments or coverings within no more than six months of occupancy. (Bed sheets, towels, foil, plastic, cardboard, plywood, etc do not meet acceptable coverings expectations.) Film type coverings are allowed, with prior DRC approval, if installed by a professional window covering company. Mailboxes Mailboxes will consist of grouped mailbox units provided and maintained by the United States Postal Service. The Postal Service will determine the location of these group mailbox units. {05541139.DOCX;1}9

General Rules Trash Receptacles All containers used for the purpose of storing waste shall be screened from public view. Garbage shall be put out at the curb (not in the street or sidewalk) no sooner than the night before the service day and returned to its stored location within 24 hours of service. Garbage must be stored in a durable container with a lid to prevent trash from blowing onto adjacent properties. Parking Resident Parking (Vehicles) Residents shall park first in their garage or their driveways. After the garage and driveway have been utilized, vehicles may be parked on the streets as long as the vehicles do not block access to driveways, sidewalks or streets. Vehicles may not be parked on the street closer than 15 feet to the intersections, fire hydrants, stop or yield signs. Vehicle Storage All vehicles parked in the Community Area (unless parked in the garage) must have current license plates. Inoperative, abandoned or unlicensed vehicles may not be parked on any part of the Community Area (unless within garage). Vehicles shall be deemed to be abandoned or inoperative if they meet one or more of the following criteria: I. The vehicle has a flat tire or other condition rendering it inoperable. ii. Does not have current license plates. iii. It has not moved in over 72 hours. iv. Is in an obvious state of disrepair, such as but not limited to a missing tire, smashed window, missing or damaged body panel or other parts, or the vehicle is on jacks or blocks. Prohibited Vehicles No boat, camper (on or off supporting vehicles), camper shell, trailer, tractor, truck, industrial or commercial vehicle (both cabs or trailers), towed trailer unit, motorcycle, disabled, junk or abandoned vehicles, motor home, mobile home, recreational vehicle, or any other vehicle, the primary purpose of which is recreational, sporting or commercial use, shall be parked or stored {05541139.DOCX;1}10

in, on or about any Lot or street within the community except within the garage or unless such vehicles are concealed or screened from view as approved by the Board of Directors ( Prohibited Vehicles ). A one (1) ton or smaller vehicle commonly known as a pickup truck shall not be deemed a commercial vehicle or truck, provided that any attached camper shell not exceed in height more than ten (10) inches above the cab portion of the vehicle. Prohibited vehicles shall not be allowed in any driveway, or other exposed parking areas, or any street within the community, except such vehicles may be parked on streets as a temporary expedience for up to 72 (consecutive or non-consecutive) hours within a seven day period. Vehicles in violation of parking regulations are subject to be towed at owner's expense and / or be fined by the Board. A notice will be placed on the vehicle and must be responded to within 48 hours. If there is no response or if the vehicle has not been removed within 72 hours, the vehicle will be considered abandoned and will be towed at the owners expense. Parking of Emergency Vehicles An Owner may be allowed to park a motor vehicle on a street, driveway or parking area in the community if the Owner is required by his/her employer to have a motor vehicle at his/her residence during designated times and if all of the following conditions are met: The vehicle weighs 10,000 lbs., or less, and The Owner must be a member of a volunteer fire department or an emergency service provider (defined as a primary provider of emergency fire fighting, law enforcement, ambulance, emergency medical or other emergency services), and The vehicle has some visible emblem or marking designating the vehicle as an emergency vehicle, and The parking of the vehicle does NOT obstruct emergency access or interfere with other residents to use the community s streets and driveways. Sidewalks Sidewalks are to be free of obstructions including snow (within 24 hours of snow fall ending), ice, rocks, vehicles, garbage cans, etc. Holiday Decorations Christmas decorations, including decorative lights may be put out no earlier than 30- days prior to the holiday and must be removed 30-days after Christmas. All other holiday decorations may be put out no earlier than 14-days prior to and 7-days after that holiday. Signage In an effort to be sensitive to neighborhood aesthetics, while granting an individual s opportunity to express and support their political candidate or issue, the DRC shall permit political signage to be displayed based on the following standards: {05541139.DOCX;1}11

Time frame: Installed up to thirty (30) days prior to the election and removed within seven (7) days after the election Maximum size: 36 x 48 Number of signs: Maximum of one (1) political sign per political office or ballot issue. Where displayed: Window of the home or on the Owner s property. Political signage is defined as a sign that carries a message intended to influence the outcome of an election, including supporting or opposing the election or a candidate, the recall of a public official, or the passage of a ballot issue. Other signs: A maximum of two (2) for sale signs or two (2) for rent signs per property or lot Advertisement signs are not allowed. Banners and Streamers are not allowed. Garage Sale signs are allowed one day prior and one day after the dates of the sale. Each homeowner is responsible for removing their garage sale signs from all locations placed within the community. One professionally lettered security or alarm system sign not exceeding one square foot Prohibited Uses Certain uses are prohibited within the residential neighborhoods at Woodmen Hills Filing No. 11. Among those prohibited uses are the following (refer to the covenants for more detail). A. Nuisances or Annoying Activity Uses or activities that constitute an annoyance or nuisance to the neighborhood are prohibited, including those which will detract from residential value, and from the overall enjoyment and quality of the neighborhood. Uses or activities that are defined as nuisances or annoyances include, for example, parking vehicles on lawns, exterior sound systems that create noise heard beyond the property lines, etc. B. Outdoor Storage Storage of trash, building materials, equipment, garden supplies, vehicles, etc., in unscreened areas on a residential site is prohibited. C. Commercial uses Most business activities are prohibited within residential neighborhoods. Prohibited activities include in-house business that attract clients or customers. Such in home businesses as machine shops, car repair or other similar commercial industrial businesses are also prohibited. Pets No animals, livestock, poultry of any kind, including dogs, cats, birds, snakes, bees, or other insects, shall be raised or kept in the community, except as provided below. A. A maximum of 3 domesticated dogs, cats, birds, or other household pets may be kept or raised in a Residence, subject to all applicable local ordinances. 1. In no event will any dog which is registered as a dangerous dog with the state of Colorado be permitted in the community, nor will any animal of any kind that has venom, or poisonous or capture mechanisms, or if let loose would constitute vermin, be allowed. 2. Seeing Eye dogs will be permitted for those persons holding certificates of blindness and necessity. Other animals will be permitted if such animals serve as {05541139.DOCX;1}12

physical aids to the handicapped persons and such animals have been trained of provided by an agency or service qualified to provide or train such animals. 3. The DRC shall determine what is considered other common household pets. B. No animals, including livestock, poultry, birds or bees of any kind shall be bred, raised or boarded or kept for any commercial purpose. C. Pet owners shall immediately clean up after their pet and dispose of the same in suitable containers. D. Pets, including dogs and cats, must be carried or kept on a leash while in any part of the community and shall not be allowed to roam unrestrained in the community. E. Pets shall not be tethered anywhere upon the common areas. Leasing of Residences Primary Residence / Lodging No Residence shall be occupied or leased except under terms and conditions set forth in these Rules. Each Residence shall be occupied and used by Owners, their guests, occupants or lessees as residential dwellings only. Owners who permit guests to occupy or lease their property are responsible for actions of their guests and/or tenants. Leasing Requirements For security reasons each Owner or Rental Agent must provide the Association with the following information on an association provided form three days of leasing the Residence for all tenants: 1. Tenant information, including name(s), address, and names of all occupants under the age of 18, and any other information reasonably requested by the Association or its agents. Forms for providing this information are available from the Association. 2. A copy of the current executed lease. Annoyance or Nuisance No noxious, offensive, illegal, dangerous, or unsafe activity shall be carried on in any Residence or the Common Areas, nor shall anything be done therein, either willfully or negligently, which may be or become an annoyance, nuisance or disturbance to the other Homeowners or occupants or which may interfere with their peaceful and proper enjoyment of the Common Areas or Residences for the purposes for which they were designed. No Homeowner or occupant shall make or permit any disturbing noises or nuisance activities or do not permit anything to be done that will interfere with the rights, comforts or convenience of other Homeowners or occupants. No Homeowner or occupant shall play, or cause to be operated, an engine, phonograph, television set or radio or other device, item or object, at high volume or in any other manner that shall cause unreasonable disturbances to other Homeowners or occupants. Annoyances may include but are not limited to: barking dogs, loud parties, altercations and vandalism. {05541139.DOCX;1}13

Hearing Process Request for a Hearing In the event any Owner desires to attend a hearing or Board meeting to challenge or contest any alleged violation and possible fine, Owner must, prior to the first Board Meeting following receipt of the Notice of Hearing, request such hearing by notifying the Association, in writing, of such hearing request. In requesting a hearing before the Association, an Owner shall state and describe the grounds and basis for challenging or denying the alleged violation as well as such other information the Owner deems pertinent. In the event a proper and timely request for a hearing is not made as provided herein, the right to a hearing shall be deemed forever waived. If a hearing is not requested within the period, the Board, shall determine if there was a violation, and if so, assess a reasonable fine within the guidelines contained in these Rules and Regulations. The Owner shall be notified in writing, by U.S. Mail, postage prepaid, of the Board s decision within two weeks of the hearing. The fine assessment is due and payable immediately upon receipt of the notice of the fine assessment and will be immediately added to the Owner s account. Board to Conduct Hearing The Board shall hear and decide cases set for hearing pursuant to these Rules and Regulations. The Board may appoint an officer or other Homeowner to act as the Presiding Officer at any of the hearings. Hearing Each hearing shall be held at the scheduled time, place and date, provided that the Presiding Officer may grant continuances for good cause. At the beginning of each hearing, the Presiding Officer shall explain the rules, procedures and guidelines by which the hearing shall be conducted and shall introduce the case before the Board by reading the Notice of Hearing. The general procedure for hearing shall consist of opening statements by each party; presentation of testimony and evidence, including cross examination of witnesses by each party; and closing statements by each party. Notwithstanding the foregoing, the Board may exercise its discretion as to the specific manner in which a hearing shall be conducted and shall be authorized to question witnesses, review evidence, and otherwise take such reasonable action during the course a hearing of which it may deem appropriate or desirable to permit the Board to reach a just decision in the case. Neither the complaining parties nor the Owner must be in attendance at the hearing. Decision After all testimony and other evidence has been presented to the Board at a hearing, the Board shall render its decision thereon within fourteen (14) days after the hearing. A decision, either a finding for or against the Owner, shall be by a majority of the Board. The Board shall issue written findings of fact and conclusions, and, if applicable, shall impose a reasonable fine as provided in the Association s Rules and Regulations. The Board may also issue a record with the Clerk and Recorder, a Notice of Finding and Violation. Upon satisfactory compliance with the Association s governing documents, the Notice of Violation may be released by the Association issuing and recording a Release of Notice of Findings of Violation. The decision of the Board of Directors is final and will not be subjected to review without a change in {05541139.DOCX;1}14

circumstance or fact. After the decision of the board, any review of the decision will occur in a court of competent jurisdiction. Enforcement and Attorney s Fees In accordance with the Declaration, Bylaws and Rules and Regulations, it is hereby declared to be the intention of the Association to enforce the provisions of the Documents by any and all means available to the Association at law or in equity, and to seek recovery and reimbursement of all attorney s fees, Association expenses and costs incurred by the Association in connection therewith. {05541139.DOCX;1}15