COVENANT ENFORCEMENT AND FINE POLICY OF HIGHLANDS RANCH COMMUNITY ASSOCIATION, INC.
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1 COVENANT ENFORCEMENT AND FINE POLICY OF HIGHLANDS RANCH COMMUNITY ASSOCIATION, INC. Pursuant to Section of the Colorado Common Interest Ownership Act ("CCIOA"), Highlands Ranch Community Association, Inc. (hereinafter the Association ) is required to adopt policies, procedures and rules and regulations concerning the enforcement of covenants and rules, including notice and hearing procedures and the schedule of fines. This Covenant Enforcement and Fine Policy ("Policy"), together with the terms of the Community Declaration for Highlands Ranch Community Association, Inc. ( Declaration ) and the Bylaws of the Association, is intended to comply with such requirement. 1. Covenant Enforcement Policy. The Notice and Hearing Procedure set forth in Section XII of the Bylaws of the Association, a copy of which is attached to this Policy, shall be a part of the Association's Covenant Enforcement and Fine Policy. All covenant enforcement matters will be subject to this Policy. 2. Fine Policy. Following the Notice and Hearing Procedure, if an Owner is found to be in noncompliance with the provisions of the Declaration, the rules and regulations or the architectural guidelines of the Association, the Board of Directors of the Association ("Board"), may levy a fine against the Owner. A fine will be levied at $25.00 per day, or such other amount as may be set forth on a Schedule of Fines as may be adopted by the Board from time to time, for each violation found by the Board. A fine will be imposed only after the Owner has had an opportunity for Notice and Hearing as set forth in Section XII of the Bylaws of the Association. Fines may be imposed for actions of the Owner as well as Related Users as defined in the Declaration. 3. Waiver of Fines. The Board may waive or reduce all, or any portion, of a fine if the Board, in its sole discretion, determines such waiver or reduction is appropriate under the circumstances. Additionally, the Board may condition a waiver or reduction upon the violating party coming into compliance with the governing documents of the Association. The Board may delegate its authority to waive or reduce fines hereunder to the Community Manager by resolution, which authority may be revoked by resolution of the Board at any time in its sole discretion. 4. No Precedent. The Board will not be bound by precedent in any enforcement matters or in granting waivers or reduction in fines. 5. Definitions. Unless otherwise defined in this Policy, capitalized terms or terms defined in the Declaration shall have the same meaning herein as set forth in the Declaration. 6. Deviations. The Board may deviate from the procedures set forth in this Policy if, in its sole discretion, such deviation is necessary under the circumstances. Any such deviation will be in accordance with the governing documents of the Association. 7. Amendment. The Board may amend this Policy from time to time.
2 The undersigned, being the President and Secretary of the Highlands Ranch Community Association, Inc., a Colorado nonprofit corporation, certify that the foregoing Policy was approved and adopted by the Board of Directors of the Association, at a duly called and held meeting of the Board of Directors of the Association on, 2011 and in witness thereof, the undersigned have subscribed their names. HIGHLANDS RANCH COMMUNIY ASSOCIATION, INC., President ATTEST:, Secretary 2
3 SECTION XII OF THE BYLAWS (Notice and Hearing Procedure) Section X-1
4 RESOLUTION OF BOARD OF DIRECTORS OF HIGHLANDS RANCH COMMUNITY ASSOCIATION, INC. The Board of Directors ("Board") of Highlands Ranch Community Association, Inc., a Colorado nonprofit corporation (the "Association"), do hereby take, ratify, affirm and approve the following actions: WHEREAS, pursuant to Section of the Colorado Common Interest Ownership Act ("CCIOA"), the Association has adopted a Covenant Enforcement and Fine Policy; and WHEREAS, the Board pursuant to its power as set forth in Section 5.25 of the Community Declaration for Highlands Ranch Community Association, Inc., and in the interest of more efficiently addressing covenant enforcement matters believes it is in the best interests of the Association to provide that the Board may delegate its authority to waive or reduce fines for noncompliance with the provisions of the Declaration, the rules and regulations of the Association or the architectural guidelines of the Association to the Community Manager in the Covenant Enforcement and Fine Policy; and WHEREAS, following amendment of the Covenant Enforcement and Fine Policy, the Board wishes to delegate its authority to waive or reduce fines for noncompliance with the provisions of the Declaration, the rules and regulations of the Association or the architectural guidelines of the Association. NOW THEREFORE, BE IT RESOLVED, that the Covenant Enforcement and Fine Policy of Highlands Ranch Community Association, Inc. is amended to provide that the Board may delegate its authority to waive or reduce fines thereunder to the Community Manager by resolution, which authority may be revoked by resolution of the Board at any time in its sole discretion, and that said Covenant Enforcement and Fine Policy, as amended, a copy of which is attached hereto as Exhibit "A", is adopted by the Association. BE IT FURTHER RESOLVED, that the Board authorizes the Community Manager to waive or reduce fines for noncompliance with the provisions of the Declaration, the rules and regulations of the Association or the architectural guidelines of the Association until such time as such authority is revoked by resolution of the Board in accordance with the Covenant Enforcement and Fine Policy. BE IT FURTHER RESOLVED, that all prior acts of any directors, officers, agents or employees of the Association that are in conformity with the purposes and intent of this Resolution shall be and are hereby in all respects ratified, approved and confirmed. These Resolutions shall be in full force and effect upon their passage and approval. Adopted by the Board of Directors of the Highlands Ranch Community Association, Inc. this th day of, { / 1}
5 CERTIFICATION: The undersigned, being the President and Secretary of the Association, certify that the foregoing Resolutions were adopted by the Board of the Association at a duly called and held meeting of the Board on, 2011 and in witness thereof, the undersigned have subscribed their names. HIGHLAND RANCH COMMUNITY ASSOCIATION, INC. By: Its: President Attest: By: Its: Secretary { / 1} 2
To adopt a uniform procedure to be followed when enforcing covenants and rules to facilitate the efficient operation of the Association.
Page 1 of 5 SUBJECT PURPOSE AUTHORITY Adoption of a policy regarding the enforcement of covenants and rules and procedures for the notice of alleged violations, conduct of hearings and imposition of fines.
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