Senate Bill 100

1. Senate Bill 100 Bob Clinard 5 October 2005

2. What is SB 100? • Passed by the State Legislature in the last session to address some fairly aggressive HOAs • Our HOA was impacted minimally – primarily the documentation of already existing policies and procedures. • Full compliance with SB 100 introduced two proposed amendments to the CC&Rs, and one to the Design Criteria and Guidelines. • The CC&R amendments require approval by the Community represented by those in attendance. • The document “Policies Responsive to SB 100” provides explicit responses to explicit paragraphs of SB 100

3. CC&R Amendments • Amendment to paragraph 3.16 Restrictions on Signs and Advertising. – This amendment allows the posting of political signs, and defines the number allowed and their dimensional constraints. • Amendment to paragraph 3.32 No Overnight On-Street Parking– This amendment introduces wording to allow overnight on-street parking of emergency vehicles if required by the homeowner’s employment.

4. Design Criteria Guidelines and Standards Amendment • Design Criteria Guidelines and Standardsparagraph II. A. Signs is amended to agree with the amendment to CC&R paragraph 3.16 Restrictions on Signs and Advertising

5. Policies and Procedures • Biannual HOA Assessment Payment Structure – This policy simply documents the policy of biannual assessments due and payable on 1 January and 1 July. • Collection Policy and Procedure – This policy describes the Board’s process and procedure for collecting delinquent assessments. • Due and payable on the 15th of the month • Demand Letter issued if not paid by 15th of month • Turned over to legal for collection if not paid by 15th of following month

6. Policies and Procedures (continued) • Finance Charges for Delinquent Assessments – This policy documents finance charges the Board will apply to delinquent assessments. This policy is a companion to the Collection Policy and Procedure. • 18% per annum accrued monthly on unpaid balance • Legal fees if imposed are included • Enforcement Policy and Procedure – This simply restates an existing amendment to the Bylaws’ paragraph 10.1 Association's Enforcement Rights

7. Policies and Procedures (continued) • Conflicts of Interest Policy and Procedure – This documents the expected conduct of the Board as it relates to potential conflicts of interest related to official decisions in their capacity as a Board member. • Board member will recuse himself/herself if there is a conflict of interest related to a issue requiring a Board decision. • Fence Reconditioning/Painting – This documents the acceptable selections for reconditioning/painting the homeowner’s split rail fence. • Behr’s Clear Waterproofing Wood Sealer & Finish, or an equivalent product; or • Behr’s Semi on Cedar Natural Tone (DP-533)

8. Policies and Procedures (continued) • Procedure for Adoption and Amendment of Policies, Procedures, and Rules – This documents the procedure for introducing new policies and procedures or amending existing policies and procedures. • Addresses new or changes to policies, procedures, rules, Bylaws, CC&Rs, and Design Guidelines. • Proposed change is submitted to Board for review and discussion with submitter. Modification to wording may result. • After review by Board, the submittal is submitted to the Community for review and adjudication at the next Community Meeting. • The Board submittal is accompanied by its opinion of Yes or No, but it is only an opinion/recommendation • The Community vote is the ruling decision.

9. Policies and Procedures (continued) • Procedure for Examination, Inspection, and Copying of Association Records – This documents the procedure for and the owner’s expense to request and have copied explicit HOA documents. • Homeowner submits an explicit request for the information they require to the Board Secretary. • The Board Secretary will compile the documents and have them reproduced at Kinkos or an equivalent commercial repro service. • The homeowner is obligated to a $50 service fee plus the cost of reproduction.