Senate Bill 100 Bob Clinard 5 October 2005

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

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.

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

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 15 th of the month –Demand Letter issued if not paid by 15 th of month –Turned over to legal for collection if not paid by 15 th of following month

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

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)

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.

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.