Governing Documents-RR2003-1

A. The Bylaws assign to the Board of Directors (“Board”) all of the powers and duties necessary for the administration of the affairs of the Cloisters West Homeowners Association, Inc. (“Association”);

B. The Bylaws and the Declaration of Covenants Conditions and Restrictions authorize the Board and the Covenants Committee to adopt and enforce rules, guidelines and regulations; and

C. For the benefit and protection of the Association and of the individual owners, the Board deems it necessary and desirable to establish a procedure to provide due process in cases involving noncompliance by an owner or resident with provisions of the Declaration of Covenants, Conditions and Restrictions, the Bylaws or the Rules and Regulations (“Governing Documents”);

THE BOARD OF DIRECTORS HEREBY RESOLVES that any and all previous enforcement procedures are repealed, and the following enforcement procedure is adopted.

1. Informal Action. In the interest of cooperation and good relations between neighbors, it is the policy of the Association that residents of the community should try to work together informally and cooperatively to resolve matters which appear to violate the Governing Documents. Any resident, officer, or agent of the Association may request that an owner or resident correct any apparent violation of the Governing Documents. Such informal requests should be made before the formal process is initiated.

2. Written Complaint. If informal requests do not result in compliance, a written complaint providing the specifics of the alleged violation may be filed with the Management Agent. A written complaint may be filed by any person, including without limitation residents, Board members and management personnel. The complaint shall specify the facts of the violation in sufficient detail so that the respondent will be able to prepare a defense. The complaint shall identify the specific provisions of the Governing Documents which allegedly have been violated. The complaint must be as specific as possible as to times, dates, places and persons involved.

3. Preliminary Investigation. Upon receipt of the written complaint, in conjunction with the Covenants Committee, Management shall make a preliminary investigation as to the validity of the complaint. If the alleged violation has been corrected since the complaint was made, or if the complaint is for any other reason no longer valid, Management shall respond in writing to the complainant. If preliminary investigation indicates the need for further action, the process shall continue as set forth below.

B. First Written Notice. After a complaint has been filed or upon the request of the Board of Directors, Management shall send a written request to the alleged violator, in accordance with the following procedure:

1. The notice shall ask the alleged violator to correct the alleged violation and shall specify: (i) the violation; (ii) the provision of the Governing Documents that has been violated; (iii) the action required to correct the violation; and (iv) a time period of not less than 10 days during which the violation may be corrected without further sanctions or a statement that any further violations of the same provision may result in further enforcement action.

2. With respect to the following specific types of violations, the First Written Notice will assess a fine pursuant to the provisions of Exhibit A. Schedule of Fines, below:

(b) Improper and/or unapproved storage of rubbish, trash, garbage, refuse containers, wood piles, storage areas and machinery on Lots;

Such fine or fines shall be charged to a homeowner's account are due and payable within 15 calendar days of issuance. To avoid additional monetary penalties, the homeowner must take one of the following actions:

i) Pay the fine. If the homeowner admits liability and waives the right to a hearing, the homeowner must mail a check payable to the Cloisters West Homeowner's Association, to the Property Manager, or

ii) Request a hearing with the Board of Directors. If the homeowner wishes to contest the fine, a hearing must be requested in writing submitted to the Property Manager within 15 calendar days of the date of the fine. A hearing date will be set and the provisions of Sections I(E) through Section IV, below, will generally apply.

Failure to remit payment or to request a hearing in accordance with this section within 15 calendar days, or to attend the scheduled hearing shall constitute an admission of liability and shall result in the automatic doubling of each fine.

3. The request shall be mailed to the owner at the address on file with the Management Agent, and to the resident of the property, if not the owner.

4. A copy of the request shall be filed in the office of the Management Agent. A copy also shall be sent to the Board and to the members of the Covenants Committee.

C. Failure to Comply with First Written Notice. The following procedures shall be followed when a continuation or a repetition of a violation occurs after the First Written Notice:

1. Management shall send a Second Written Notice, requiring a written response from the alleged violator within a specified time, and stating that further action may be taken by the Association.

2. The request shall be mailed to the owner at the address on file with the Management Agent, and to the resident of the property, if not the owner.

D. Failure to Comply with Second Written Notice. The following procedures shall be followed when a continuation or a repetition of a violation occurs after the Second Written Notice:

1. Notice of Hearing. If preliminary investigation indicates that further action is necessary, and if the violation has not been corrected pursuant to the Second Written Request specified above, Management shall serve a Notice of Hearing and a copy of the complaint on the respondent. The Notice shall be served not less than 14 days prior to the date of the hearing. The Notice shall be hand delivered or mailed by first class United States mail to the respondent at the address or addresses required for notice of meetings and, in the case of non-owner residents, to the property address as well. Service by mailing shall be deemed effective 2 days after such mailing.

The Notice of Hearing sent to the respondent shall state the time, date and location of the hearing and shall inform the respondent of his or her right to be present at the hearing and to present any statements or evidence. The Notice shall also describe any sanctions which may be imposed on the respondent.

2. If any parties can promptly show good cause as to why they cannot attend the hearing on the set date and indicate times and dates on which they would be available, Management may reset the time and date of hearing and promptly deliver notice of the new hearing date.

1. Proof of Notice, Minutes. Proof of notice and the invitation to be heard shall be placed in the minutes of the meeting. Such proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is provided by the party who delivered such notice. The notice requirement shall be deemed satisfied if the respondent appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed.

2. Board Members. Any member incapable of objective consideration of the case shall disclose this fact to the Board and shall not take part in the hearing or in the Board decision. Any member of the Board has the right to challenge any other member who is unable to function in a disinterested and objective manner. Any such challenge shall be decided by the Board, provided, however, that the challenged member shall not have a vote on the challenge.

a. The Board shall select a person to serve as hearing officer and preside over the hearing. Such hearing officer need not be an owner or a member of the Board or the Covenants Committee. At the beginning of the hearing, the hearing officer shall explain the rules and procedures by which the hearing is to be conducted.

The Board may determine the manner in which the hearing will be conducted, so long as the rights set forth in this section are protected. The hearing need not be conducted according to technical rules relating to evidence and witnesses. Generally, any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions.

b. Neither the complainant nor the respondent must be in attendance at the hearing. The hearing shall be conducted in executive session.

Even if the complainant or the respondent does not testify in his/her own behalf, each may still be called and questioned, if in attendance.

4. Decision. After all testimony and documentary evidence has been presented to the Board, the Board shall deliberate and vote upon the matter. Agreement of a majority of those voting shall be required for a decision. The decision shall be made promptly after the hearing.

The Board shall prepare written findings of fact and a written decision. A copy of the findings and decision of the Board shall be sent to each party in the matter and his/her attorney, if any. The decision shall state whether a violation of the Governing Documents has occurred and, if so, shall indicate what sanctions or remedies may be invoked by the Association. A summary of the decision, excluding names of persons involved and addressing only the issues and the Board decision shall be included in the Board Minutes.

This Resolution is intended to serve as a protection to owners and residents to ensure that their rights are protected and to serve as a guideline for the Board as it carries out its duties to enforce the Governing Documents.

The Board may determine the specific manner in which the provisions of this Resolution are to be implemented, provided that due process is afforded.

Any inadvertent omission or failure to conduct any proceeding in exact conformity with this Resolution shall not invalidate the results of such proceeding, so long as a prudent and reasonable attempt has been made to ensure due process according to the general steps set forth in this resolution.

In enforcing the Governing Documents, the Board may invoke any remedy legally available to it, including, without limitation, legal action and self-help remedies to the extent permitted by, and in accordance with the requirements of, applicable law. In addition, the Board may levy monetary fines in the amounts set forth on the schedule of fines attached hereto as Exhibit A.

Notwithstanding any provision of this Resolution, the Association may initiate legal action at any time without following the procedures set forth herein if, in the judgment of the Board, the interests of the Association so require.

If the Board determines that a homeowner or resident is in violation of the Governing Documents, rules and regulations, the Board may levy monetary fines against any homeowner, resident and/or lot of up to:

2) Five Hundred Dollars ($500.00) for the third similar recurring violation within a three month period and then for each additional violation after the third; and/or

3) Twenty-five Dollars ($25.00) per day for the first month, and Fifty Dollars ($50.00) per day for subsequent months for violations of an ongoing daily nature until the violation is remedied.