Lake Sherwood HOA

FINING POLICY

Covenant Violation Fining Policy

LAKE SHERWOOD HOME OWNERS ASSOCIATION
FINE POLICY


Preliminary Statement

To enforce compliance with the Association’s Declaration, Bylaws and Rules & Regulations (the “Association Documents”), the Board of Directors with homeowner input has instituted a monetary fining procedure. The procedure implemented is allowed by, and in accordance, with the Colorado Common Interest Ownership Act (CCIOA). The procedure insures that any fines are levied in a fair manner, and that violators will be provided the opportunity for due process as stipulated by CCIOA.

Note: It is not the intent of this policy to serve as a revenue source for the Association: Our Homeowners have voiced concerns about violations and asked that the Board be resolute in enforcing the Association Documents and in resolving violations. This policy was developed so the best interests of the Association at large are served.

Notice of Violation (“Notice”)

1. The Association or any homeowner within the subdivision may note a violation. If noted by a homeowner, it should be reported in writing to the Homeowners’ Association Board:
c/o Touchstone Property Mgmt
2850 McClelland, Suite 1000
Fort Collins, CO 80525
(Violations may be reported confidentially).

2. The Board will verify the violation and instruct the Management Company to take further action and issue a Notice.

3. The Notice will be sent via US Mail postage pre-paid, addressed to the last registered address of the Owner and/or Lessee as listed in The Association’s records. The Notice will describe the nature of the violation, the timeframe for correcting the violation (expressed as a certain number of days after the effective date of the Notice as determined below), and state that the Association may seek to remedy the violation and otherwise protect its rights as specified in the Association Documents and as provided by law. The Notice will be considered effective three days after it is deposited in the mail.

4. The Owner receiving the Notice then has the amount of time specified in the Notice to correct the violation.

5. If the violation is not corrected within the specified time, a fine is levied starting on the first day after the time period for correcting the violation expires, subject to the Request for Conflict Resolution provisions below.

Fines

For routine violations, the Owner is fined as follows:

1st Offense Warning
2nd Offense $50.00
3rd Offense $100.00
4th Offense $150.00

Routine violations include situations such as (but not limited to):

* Improper storage of personal property (i.e. boats, RVs, trailers etc.) General Property Maintenance Issues
* Pets (at large, waste, noise, etc.)
* Noise and Nuisance
* Architectural Control Violations

In addition, for ongoing and continuing violations, the Board can decide to charge a daily fine to promote compliance of $20.00 per day, or such other amount as the Board determines to be reasonable, until the Owner has corrected the violation. The Owner is responsible for notifying the Association in writing when and if the violation has been corrected. The daily fine shall start at the stated rate until the Owner gives written Notice regardless of when the violation was corrected. Following commencement of the daily fine, the Association shall make a good faith effort to resolve the violation with the Owner. If, despite the Association’s effort to reach a resolution, the violation has not been corrected within 120 days after commencement of the daily fine, the Association shall commence the necessary legal proceedings under the Association Documents or under law to compel correction of the violation as well as to recover any unpaid fines, court costs, attorney’s fees and other Association expenses arising from the violation. Nothing in the foregoing language shall preclude the Association from commencing legal proceedings to correct the violation prior to the expiration of the 120 day period.

In addition to the daily fines, the Board reserves the right to assess substantial one-time fines as needed necessary to promote compliance with the Association Documents.

The assessed fines are billed to the Owner by U.S. Mail, and are legally collectable as assessments in accordance with the Association Documents and Colorado law. The fines are the personal obligation of the violating Owner and, in addition, constitute a lien against such Owner’s property. Furthermore, the violating Owner is responsible for all costs and reasonable attorney fees incurred by the Association as a result of the violation.

Request for Conflict Resolution

Any owner, who believes the Notice was sent in error, or who feels there are mitigating circumstances, has the right to request a hearing before the Board of Directors. To request a hearing, the Owner must contact the Property Management Company within ten days after the effective date of the Notice. The Management Company will contact the Board and set a date for the hearing convenient for the involved parties. If the hearing for whatever reason cannot be held prior to the date when the fine is otherwise scheduled to commence, the date the fine begins shall be extended to the day following the hearing.

The purpose of the hearing is three-fold:

1. To determine if a mistake was made in issuing the Notice.
2. To determine if there are mitigating circumstances.
3. To make arrangements for bringing the violation into compliance over a period of time if it seems warranted.

The Resolution Process will not and cannot be used to determine the desirability of a particular provision of the Association Documents.

The general procedure for a Resolution Hearing is as follows:

1. The presiding member of the Board will:

* Establish a quorum
* Explain the rules, procedures and guidelines for conducting the process.
* Describe the nature of the violation as specified in the Notice.

2. The Owner may then provide rebuttal to the Notice using witnesses or any other information deemed relevant and necessary.

3. After all testimony and other evidence have been presented, the Board shall decide whether or not the Notice was justified, or whether there are any mitigating circumstances. If the Board finds the Notice was justified, a fine shall then be assessed or mutually agreeable arrangements made with the Owners to ensure compliance in the future. If the Board finds the Notice was not justified, no fine shall be assessed.

Repeat Violations

A “repeat violation” is a violation committed by an Owner which is the same as the original violation committed by that Owner, and which occurs within twelve months after the original violation. A repeat violation is considered a continuation of the original violation, and thus an Owner committing repeat violation is not entitled to the same hearing procedures set forth above. However, the Association shall provide Notice of the repeat violation to the Owner in accordance with Paragraph 3 under the Notice of Violation section above. For repeat violations, the fine will be double the fine assessed for the original violation and, notwithstanding the Notice provisions above, will commence on the expiration of the correction time period set forth in the Notice. An Owner committing a repeat violation shall have no right to a hearing on such violation before the Board.

Fines Not Exclusive Remedy

Fines levied under this Fine Policy are not the Association’s exclusive remedy for addressing a violation. Nothing in this Fine Policy precludes the Association from pursuing any other remedy provided under the Association Documents or under law for correcting the violation.

Approved by the Board of Directors effective April 12, 2005.