2009PoliciesProcedures

Acting on the authority granted by the governing documents and the Colorado Common Interest Ownership Act, the Board of Directors has adopted the following Policies to address matters not specifically detailed in the governing documents, and to adopt procedures for the enforcement of the provisions of the governing documents.

The governing documents of the Pine Terrace Homeowners Association are (1) the Declaration of Covenants, Conditions and Restrictions Affecting the Real Property Known as Pine Terrace Phase One, recorded in Book 3830, beginning on Page 1042 of the El Paso County records (the “Original Covenant”); (2) the Amended and Restated Declaration recorded at Reception No. 206093235 of those same records (the “Declaration” or the “Covenants”) adopted by the Board; (3) the Articles of Incorporation and the Bylaws of Pine Terrace Homeowners Association, Inc.; and (4) the rules and policies adopted by the Board. These governing documents will be regarded as controlling in the order of priority set forth above (beginning with the second document) in the event of any conflict between the provisions contained herein and the provisions of the governing documents.

The governing documents were drafted for the purpose of enhancing and protecting the value, desirability and attractiveness of the subdivision and to be binding on and inure to the benefit of all parties having any right, title or interest in the subdivision or any part thereof, their heirs, successors and assigns. When buyers take ownership of their Lots, they agree to abide by the governing documents, which, in accordance with intent of those provisions, are for their own benefit and the benefit of their neighbors as well. Buyers should read and review all governing documents prior to signing any contract or closing upon ownership of a Lot . Therefore, in addition to this document, please read and understand the governing documents.

Technical irregularities or defects in compliance with these Policies and Procedures shall not invalidate the actions of the Association, including but not limited to any proceedings or any fine or sanction imposed pursuant to same. These Policies and Procedures shall be liberally construed to accomplish prompt, effective enforcement of the Association's Declaration, Articles of Incorporation, Bylaws and Rules.

If any doubt or questions shall arise concerning the true intent or meaning of any of the Covenants or these Policies or Procedures, the Board shall determine the proper construction of the provision in question, and shall set forth in a written statement the meaning, effect and application of the provision. These determinations will thereafter be binding on all parties so long as it is not arbitrary or capricious, and they may be filed for record with the Clerk and Recorder of El Paso County and/or posted on the website.

The Board may adopt individual policies at particular times and amend these policies and procedures from time to time. For clarification, fuller explanation or additional information, owners and tenants should refer to the governing documents and to the more current copies of the Policies and Procedures. Copies of the Policies and Procedures are available by writing to the Association at P.O. Box 60292 , Colorado Springs , Colorado 80960 , or at the website www.pineterrace.org .

(a) The Association will post the current assessments on the website and may (but is not required) to send invoices or other statements for those assessments. Owners are responsible for contacting the Association or reviewing the website, and for making arrangements for the delivery of all payments to the Association, whether by mail or direct deposits.

(b) Checks containing a restrictive endorsement on the back may be returned to the owner and the amount tendered shall be considered unpaid.

Regardless of inscriptions or notations on the front of the check, all payments shall be applied to outstanding balances in the following order of priority:

(a) Assessments shall be collected as provided in the Association Documents. The Association's Annual Common Expense Assessment shall be due and payable, in full, on January 1 of each year. Provided, however, the Board shall permit payment to be made in twelve equal monthly installments due on the first day of each month, commencing January 1.

(b) Any payment which is not received by the 10th day of each month shall be considered past due and delinquent, and will be charged a late fee that is set by the Board (currently $30.00) to compensate the Association for the additional administrative costs in processing a delinquent payment, which shall be owed by the Owner for each month such assessment is not paid.

(a) The Association will impose an administrative fee (currently $25.00) or other amount deemed appropriate by the Board for all returned checks. Returned check charges shall become effective on the same date any is instrument tendered to the Association for payment of sums due under the Governing Documents or this Policy.

(b) If notice is sent as provided in C.R.S. § 13-21-109 and the total amount due as set forth in the notice is not paid within 15 days after such notice is given, the person issuing the check, draft or money order (and said Owner) shall be liable to the Association for collection for three times the face amount of the check, but not less than $100.00.

(c) If two or more of an Owner’s checks are returned unpaid by the bank within any fiscal year, the Association may require that all of the Owner’s future payments, for a period of one year, be made by certified check or money order.

(a) The Association may send the Owner notice of delinquency (and may charge for any notices sent to the Owners in connection with such delinquent assessments), but the Owners are responsible for ensuring that their payments are timely and fully made, regardless of whether notice is sent. Owners must notify the Association immediately of any change in mailing address or status.

(b) In the Board's sole discretion, and upon at least thirty (30) days written notice to the Owner, in the event at least two monthly installments are past due, the entire Annual Assessment may be accelerated so that all monthly installments for the remainder of the Assessment year are immediately due and payable.

(c) The Association may also deny rights to use recreational facilities, voting rights, or other rights in the Association (including but not limited to inspection of records) until all assessments and other sums are paid in full. Any release of liens, restoration of voting or other rights, or termination of litigation shall require the payment in full of all assessments and other sums, including sums which arise after the collection process or after the Owner delivers a payment to the Association. The Association shall not be liable for any errors or omissions in any payment statement to the Owner.

(d) Pursuant to the Association Documents, the Association may (but shall not be required) to proceed by filing litigation against any Owner who has not paid his assessment, and without affecting that remedy may also file a lien against the delinquent property, which may be foreclosed as provided in the Association Documents.

(a) After a delinquent account has been referred to the Association’s attorney, all communication with the delinquent Owner shall be handled through the Association’s attorney. Neither the manager, if any, nor any member of the Board of Directors shall discuss the collection of the account directly with an Owner after it has been turned over to the Association’s attorney unless the attorney is present or has consented to the contact. However, the Association has the option and right to continue to evaluate each delinquency on a case by case basis.

(b) Once accounts are turned over to the Association’s attorney, Owners shall make payment to the Association at the address of the Association’s attorney, and the Association shall be entitled to collect interest at the rate of 21% per annum, retroactive to the due date of such payments, as well as reasonable attorney fees, court costs, and all other expenses of collection on said delinquent payment. The reasonable attorney fees incurred by the Association shall be due and payable from the delinquent Owner on the date(s) such expense(s) are incurred by the Association.

(c) In the event the Association receives any notice of a bankruptcy filing by an Owner, or a notice of a foreclosure against any Lot within the Association, the Association shall advise the Association’s attorney of the same and turn the account over to the Association’s attorney.

The Association shall furnish to an Owner or such Owner’s designee a written statement setting forth the amount of unpaid assessments currently levied against the Owner’s Lot upon written request, delivered personally or by certified mail, first-class postage prepaid, return receipt, to the Association’s registered agent. The statement shall be delivered within 14 calendar days after actual receipt of the request. The fee for the statement shall be assessed in accordance with the management company’s fee schedule for such statements, which fee shall become an assessment. If the Owner’s account has been turned over to the Association’s attorney, such statement shall be handled through the Association’s attorney and shall include any attorney fees incurred in providing the statement.

(a) Nothing in this policy shall require the Board to take specific actions at a specific time but the Board shall not take any action in less than the time stated herein for a particular action. The Board has the option and right to continue to evaluate each delinquency on a case-by-case basis. The Association may modify the procedures contained herein as the Association shall determine appropriate under the particular circumstances.

(b) Failure of the Association to require strict compliance with this Collection Policy shall not be deemed a waiver of the Association’s right to require strict compliance and shall not be deemed a defense to payment of assessment fees or other charges, late charges, return check charges, attorney fees and/or costs as described and imposed by this Collection Policy.

(c) The Board may grant a waiver of any provision herein upon petition in writing by an owner showing a personal hardship. Such relief granted an owner should be appropriately documented in the files with the name of the person or persons representing the Board granting the relief and the conditions of the relief.

(a) Association meetings shall be conducted in accordance with the Association Documents, especially the Association Bylaws, and in accordance with the Colorado Common Interest Ownership Act and the Colorado Revised Nonprofit Corporation Act. In addition, all meetings may be conducted in accordance with the most recent version of Robert’s Rules of Order at the option of the chair.

(b) At all meetings, Owners are expected to maintain proper behavior and decorum, which requires that Owners shall:

(ii) Refrain from name-calling, use of foul language, and other aggressive behavior;

If an Owner fails to observe the above standard, demonstrating inappropriate behavior which negatively impacts the Association’s meeting(s), the Chair shall issue one warning to the Owner. If inappropriate behavior continues, the Owner may be asked to remove him- or herself from the meeting. If the Owner refuses to comply, the meeting may be adjourned at that time, even though there are agenda items not yet heard; or the Chair may take other action, at the sole discretion of the Chair, including request for police assistance.

(a) All meetings of the Board of Directors, except the Executive Session, are open to attendance by any Owner or any person designated in writing by that Owner as the Owner’s Representative.

(b) Any member of the Board may create agendas for Board meetings, but no agenda will be required unless requested by a member of the Board. If an agenda is created for a Board meeting, it may be posted on the website or shall otherwise be provided to any Owners who request a copy.

(c) The Board shall designate an appropriate period of time at the beginning of the meeting, prior to any vote by the Board, for Owners or their representatives to speak on any matter, including shown on the agenda, which shall be conducted as follows:

(i) there will be a list at a sign in table for persons to enter their names if they wish to speak at this meeting;

(ii) only those persons who have entered their names on the list of speakers shall speak;

(iii) speakers will be called upon to speak in the same order in which they entered their names;

(iv) speakers will be subject to the rules of conduct described in ¶ 1(b) above;

(viii) if more than one person desires to address an issue and there are opposing views, the Board shall provide for a reasonable number of persons to speak on each side of the issue, and the President shall allocate the time permitted among the various Owners or designated representatives who wish to speak.

(d) After the designated time, Owners who are not Board members shall not participate in any deliberation or discussion of the Board unless expressly authorized by a vote of a majority of a quorum of the Board so present.

(e) Owners who wish to discuss a certain issue, complaint, or request shall submit such, in writing, at least five days prior to the Board meeting. No action shall be taken upon such matters unless a motion is made stating the proposed action and is seconded by members of the Board prior to discussion. The Board reserves the option to respond to any new business at the next Board meeting, in order to investigate and/or obtain advice to respond to the Owner.

(a) The Board shall determine the agendas for the meetings, subject to any requirements in the Association's Governing Documents, and distribute such agendas with notices of the meetings. Owners who wish to discuss a certain issue, complaint, or request shall submit such, in writing, at least 5 days prior to the meeting.

(b) The President (or such other person as may be designated by the Board) shall preside over all meetings. Items of business and/or discussion must be presented by Motion and such Motion must be seconded prior to discussion.

(c) Any Owner or designated representative of Owner may speak at the designated time in the agenda upon any issue requiring a vote of the Owners (prior to any vote). Upon being recognized, the Owner must state his/her name and address.

(d) The total length of any time for Owners or designated representatives speaking on a single issue of any meeting of the Owners shall not exceed the time set forth by the president at the beginning, but not exceeding a time limit of 20 minutes total, and the President shall pro-rate that time among the various Owners who speak.

(e) Each Owner who wishes to speak will be given 5 minutes to speak, provided the chair may impose reasonable time limits to facilitate Owner participation. Members may not speak a second time until everyone who wishes to speak has been given an opportunity to speak once. Owners may not speak more than twice on any one topic, subject to the chair’s discretion.

(f) All issues that an Owner wishes to discuss at the annual meeting shall be submitted to the Board in writing five days prior to the annual meeting. Any motions must be seconded prior to discussion and voting.

(g) In any case where the nature of a motion and vote may be outside the Owners’ authority, the Board reserves the right to determine whether a motion will be considered binding on the Association; or the Board may adjourn to obtain a recommendation whether to proceed; such determination may be made following consultation with legal counsel.

(a) Board Meetings: Notice of Board Meetings shall be given in accordance with the Association Documents.

(b) Owners Meetings: Notice of Owners Meetings shall also be given in accordance with the Association Documents, but in addition, notice of such shall be physically posted at the front gate or in a conspicuous place (to the extent such posting is feasible and practical) and may be given by electronic posting on the Association's web site or electronic mail notices pursuant to C.R.S. § 38-33.3-308. If an Owner requests notice by e-mail only and provides an e-mail address, the Board shall make an effort to provide e-mail notice to that Owner.

(c) The notice of any meeting must state the time and place of the meeting and the items on the agenda. If the meeting will include any of the following actions, the Notice, agenda or some other method (such as the website) should include:

(d) Notice will only be sent to Owners in good standing who are entitled to vote at a meeting. If mailed, such notice shall be deemed delivered when deposited in the

United States

mail, addressed to each Owner at such Owner’s address as it appears in the records of the Association, with postage thereon prepaid.

(e) Any Owner may waive notice of any meeting before, at or after such meeting. The attendance in person or by proxy of an Owner at a meeting shall constitute a waiver of notice of such meeting, except where an Owner attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

(f) Any notice that conforms to the above requirements is fair and reasonable, but other means of giving notice may also be fair and reasonable when all the circumstances are considered.

(g) If an annual, regular, or special meeting of the Owners is adjourned to a different date, time, or place, notice need not be given of the new date, time, or place, if the new date, time or place is announced at the meeting before adjournment. If a new record date for adjournment meeting is or must be fixed under C.R.S. 7-127-106, however, notice of the adjournment meeting must be given under this section to the Owners of record as of the new record date .

(h) The Board may fix the record date for determining the Owners entitled to notice or to vote at any Owners’ meeting or to exercise any rights in respect to any lawful action pursuant to C.R.S. 7-127-106 or otherwise. Such record date may not be more than seventy (70) days before the meeting or action requiring a determination of owners occurs. Unless otherwise directed by the Board, the Association shall not be required to prepare the list of names described in C.R.S. 7-127-201.

(a) Votes allocated to a Unit may be cast pursuant to a proxy duly executed by an Owner. If a Unit is owned by more than one person, each Owner of the Unit may vote or register protest to the casting of votes by the other Owners of the Unit through a duly executed proxy. An Owner may not revoke a proxy given pursuant to this section except by actual notice of revocation to the person presiding over a meeting of the Association or as otherwise provided below. A proxy is void if it is not dated or purports to be revocable without notice. A proxy terminates eleven months after its date, unless it provides a shorter term.

(b) An Owner may appoint a proxy by transmitting or authorizing the transmission of a telegram, teletype, or other electronic transmission providing a written statement of the appointment to the proxy, to a proxy solicitor, proxy support service organization, or other person duly authorized by the proxy to receive appointments as agent for the proxy or to the Association; except that the proxy must be received by the individual designated on the notice of meeting no later than 11:59 p.m. the day before the meeting date, with written evidence from which it can be determined that the Owner transmitted or authorized the transmission of the appointment.

(c) An appointment of a proxy is revocable by the Owner. Appointment of a proxy is revoked by the person appointing the proxy:

(ii) Signing and delivering to the secretary or other officer or agent authorized to tabulate proxy votes either a writing stating that the appointment of the proxy is revoked or a subsequent appointment form.

(d) Such proxy shall be filed with the secretary of the Association before or at the time of the meeting. A proxy shall not be valid if obtained through fraud or misrepresentation. The association is entitled to reject a proxy appointment if the secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory’s authority to sign for the Owner.

(a) Only those Owners of a Unit who are in good standing are eligible to vote. For purposes of this policy, the Board may suspend the Vote allocated to a Unit and the right of an Owner to cast such Vote, or by proxy the Vote of another, during any period in which such Owner is in default in the payment of any Assessment, or, after notice and a hearing, during any time in which a Owner is in violation of any other provision of the Governing Documents.

Each Owner will sign in prior to the meeting for himself/herself and for any proxies he/she holds. If an election or vote is to be held, the Owner will be given the appropriate number of ballots, unless the voting rights have been suspended, in which case Owners shall not be given ballot.

(b) Any ballot for the contested election of directors shall be a secret ballot. At the discretion of the Board or upon the request of twenty percent of the Unit owners who are present at the meeting or represented by proxy, if a quorum has been achieved, a vote on any matter affecting the Association on which all Owners are entitled to vote shall be by secret ballot. If secret balloting is not required, the Association may indicate the number of proxies held on the ballot itself.

(c) Each voting Owner is entitled to one vote on each matter submitted to a vote of the Owners entitled to vote thereon. Cumulative voting shall not be allowed. The right to vote of any Owner which is (a) a Trust may be exercised by the trustee(s) of the Trust; and (b) a corporation or unincorporated association may be exercised by such officer, agent or proxy as the bylaws, constitution or other governing instrument of such corporation or association may prescribed or, in the absence of such provision, as the board of directors of such corporation or association may determine.

(d) If only one of the multiple owners of a Unit is present at a meeting of the association, such owner is entitled to cast all the votes allocated to that Unit. If more than one of the multiple owners are present, the votes allocated to that Unit may be cast only in accordance with the agreement of a majority in interest of the owners. There is a majority agreement if any one of the multiple owners casts the votes allocated to that Unit without protest being made promptly to the person presiding over the meeting by any of the other owners of the Unit.

(e) The Association Secretary shall be in charge of providing secret ballots, which protect the voters’ privacy, but also provide for the security of the election. Either the Association Secretary, or the Managing Agent, or both, shall constitute a neutral third party to count the ballots. If no neutral party is available, the ballots may be counted by a committee of volunteers, who shall be Owners selected or appointed at an open meeting, in a fair manner, by the Chair of the Board or another person presiding during that portion of the meeting, provided however, that said volunteers shall not be Board members and, in the case of a contested election, shall not be candidates.

(f) The results of a vote taken by secret ballot shall be reported without reference to the names, addresses, or other identifying information of Owners participating in such vote.

(g) As used in the Bylaws, the term "majority of Members" shall mean fifty-one percent (51%) of the combined votes cast by all Owners (one vote per Unit) who are present at a meeting containing a quorum.

The Association’s Board may meet in executive closed sessions to discuss matters pertaining to employees, the managing agent’s contract, consultation with legal counsel, investigative proceedings concerning possible or actual criminal misconduct, matters which are subject to specific constitution and statutory or judicially imposed requirements protecting the proceedings, any matter of disclosure which would constitute an unwarranted invasion of individual privacy, and a review and/or discussion relating to any written or oral communication from legal counsel.

Prior to holding an executive session, the President or other person designated to preside over the meeting, shall announce the general matter of discussion as stated above. The Board will take no final action in executive session, but it may give direction to legal counsel therein. Any proposed Rule or Regulation discussed during an executive session may only be validly adopted only during a regular or special meeting, or after the Board returns from its executive session.

The minutes of all meetings at which an executive session was held shall indicate that an executive session was held and the general subject matter of the executive session. The Board Members and other Owners permitted to attend shall preserve attorney-client privilege regarding consultation and communications from legal counsel.

1. The Board of Directors shall comply with all of Colorado ’s statutory provisions against conflicting interest transactions as found in the Colorado Revised Nonprofit Corporation Act and the Colorado Common Interest Ownership Act. A “conflicting interest transaction” is defined by the Colorado statutes, but generally means a contract, transaction, or other financial relationship between:

(b) between the Association and a party related to a director, or (a parent, grandparent, spouse, child, sibling; or the parent or spouse of the director’s parent, grandparent, spouse, child or sibling); or

(c) between the Association and an entity in which a director of the Association is a director or officer or has a financial interest.

2. Reimbursement of actual expenses shall not be deemed a financial benefit for purposes of this policy; and transactions that are of a general benefit to a group of homeowners that includes one or more directors shall not be considered a conflicting interest transaction.

3. Each Board member is obligated by law to disclose, in an open Board meeting, any existing conflict of interest prior to any discussion or action on that issue, and the Board member shall not vote on such issue. Such disclosure should be reflected in the minutes of the meeting or other written form.

4. The director should not take part in the discussion and should leave the room during the discussion and the vote on the matter. Notwithstanding the foregoing, a majority of the disinterested Board members may ask the interested Board member to remain during any portion of the discussion and/or vote, provided that the director does not vote.

5. The above notwithstanding, at any Board meeting, a Board member with a conflict of interest may be counted “present” for the purpose of determining whether a quorum exists; and the foregoing requirements shall not be construed as preventing the interested Board member from briefly stating his or her position in the matter, nor from answering pertinent questions of other Board members, since his or her knowledge may be of great assistance.

6. The contract, Board decision or other Board action must be approved by a majority of the disinterested Board members. No contract, Board decision or other Board action in which a Board member has a conflict of interest shall be approved unless it is commercially reasonable to (and/or in the best interests of) the Association.

7. Any contract or action in violation of this policy shall be brought to the attention of the remaining Board members for appropriate action and shall be declared void and unenforceable, unless the transaction:

1. Mediation by Board. The members of this Association prefer to resolve all disputes concerning these covenants in a peaceful manner whenever possible. Therefore, whenever there is a dispute between Owners of properties in the Association, if both Owners agree, the Board, or a committee of the Board, may act as mediator, and attempt to resolve said dispute. This option will not be used in cases where the Board itself is involved in said dispute.

2. Alternative Dispute Resolution with Board. In the event of any dispute involving the Association and an Owner, the Owner is invited and encouraged to meet with the Board of Directors to resolve the dispute informally and without the need for litigation. If the Owner requests to meet with the Board, the Board shall make a reasonable effort to comply with the Owner’s request. Disputes which do not involve payment of sums and charges due to the Association, upon approval of both the Owner(s) and the Board of Directors, may be submitted to binding arbitration.

3. Meeting in lieu of hearing. The primary purpose of hearings before the Board is to resolve covenant enforcement matters as early as possible, without the expense of litigation. As a result, any Owner or alleged violator who appears at a hearing is encouraged to discuss resolution in lieu of or in addition to the hearing. If the Board believes that the Owner/violator is acting in good faith and that there is a realistic chance of resolution, the Board may reschedule the hearing and attempt to use the remainder of the time that was originally scheduled for hearing for the alternative dispute resolution described in Section.2 above. However, if at any time the Board, in its sole judgment, believes that delay will harm the interests of the Association, it may proceed with the hearing.

This Rule shall apply to any alleged violation (“violation”) of the Association’s Declaration, Articles of Incorporation, Bylaws and Policies, Procedures, Rules and Regulations, except and excluding non-payment of assessments or other sums.

(a) Initial complaints of any violation may be presented to the Board in writing or orally by any person before or at any meeting, and shall be investigated by an “impartial decision maker” (or “ IMP ”) such as the Property Manager or a Board Member(s) who will not receive a greater benefit or detriment from the outcome of a investigation than the general membership of the Association.

(b) It is recommended that anyone observing a violation of these Covenants should notify the Association in writing or Email, and include the name and address (if known) of the person(s) in violation (the “alleged rule violator”), and the date, time, and location of the violation. Notification should include name, address and phone number of the reporting party. Reports will be handled confidentially (within reason or unless disclosure is legally required), but the Board may require such information in order to validate any necessary legal actions.

(c) The IMP shall, in its discretion, determine whether or not the complaint shows cause for further proceedings and is empowered to send courtesy letters concerning reported violations and/or warnings of possible sanctions, fines and/or suspension of privileges, and/or issue a 'cease and desist' order, to the alleged rule violator. If the IMP is unable to convince the alleged rule violator that the offending practice should be ceased, then the IMP shall make a formal report to the Board. The Board shall not decide the validity of the complaint at such meeting, but rather shall notify the Owner and shall set the matter for hearing at a later date (the “Notice”).

(a) The Board, or its officers or agents, shall serve the Notice by personal delivery, regular mail and/or certified U.S. Mail, return receipt requested, to the Owner, and a copy may be sent to the alleged violator (if the name has been furnished to the Association), such as a tenant, contractor, guest or family member of the owner. The Notice shall be deemed received by the Owner three (3) days after mailing. The Notice may be sent to the Unit if the owner has failed to register a current mailing address. The Notice may also be sent to the complaining party.

(b) The Notice will advise the Owner that if the Owner desires a hearing to challenge or contest any violations and/or the sanctions, fines and/or suspension of privileges, and/or to discuss any mitigating circumstances, the Owner must request such hearing, in writing, to the Board, within thirty (30) days of receipt of the Notice. If a request for hearing is made, the hearing shall take place at the next regularly scheduled meeting of the Board of Directors. The request for hearing or other written response from the Owner must describe the basis for challenging the alleged violation or the mitigating circumstances; and must also describe the basis for asserting that a Board Member would not be an IMP , if that advisement is included in the Notice.

(c) Impartial Decision Maker. At the hearing, the Owner has the right to have the matter heard by an IMP , such that any Board Members who would receive a greater benefit or detriment from the outcome of a hearing than the general membership of the Association will recuse themselves from acting as Members of the Board during any hearing. However, if that advisement is included in the Notice, the Owner must furnish a written response describing the basis for asserting that any Board Member(s) would not be an IMP .

(d) Any written statement from the Owner must be received by the Board at least 24 hours before the hearing, and must be served by personal delivery or US Mail, postage prepaid, addressed to the Association in care of its registered agent, as maintained with the Colorado Secretary of State, or such other address as the parties may be advised of in writing. Any notice personally delivered shall be deemed received on the date of delivery, and any notice mailed shall be deemed received on the third day following the date of mailing. If the Owner plans to be represented by legal counsel, the Owner must give the Board at least five (5) days prior written notice. If the time requirements set forth above conflict or the Board deems appropriate in its discretion, the hearing may be re-scheduled to the next regularly scheduled meeting of the Board of Directors. Any hearing or request for hearing shall not stay the other enforcement procedures described below, unless otherwise directed by the Board of Directors.

(a) The primary purpose of hearings before the Board is to resolve covenant enforcement matters as early as possible, without the expense of litigation. As a result, any owner or alleged violator who appears at a hearing is encouraged to discuss resolution in lieu of or in addition to the hearing. If the Board believes that the owner/violator is acting good faith and that there is a realistic chance of resolution, the Board may reschedule the hearing and attempt to use the remainder of the time that was originally scheduled for a hearing for the alternative dispute resolution described in Exhibit D. However, if at any time the Board, in its sole judgment, believes that delay will harm the interests of the Association, it may proceed with the hearing.

(b) Hearings shall be conducted by Board Members who are IMPs. As a result, any Board Members who would receive a greater benefit or detriment from the outcome of a hearing than the general membership of the Association shall recuse themselves from acting as Members of the Board during any hearing. If disqualification of any Board Member(s) results in an even number of remaining Board Members eligible to hear a case, the Presiding Officer may appoint an impartial owner, in good standing, to serve as a voting Member of the Board for that hearing.

(c) Hearings shall be held in executive session because they may involve privacy and/or possible litigation issues. The Board may exclude any person other than the owner or alleged violator and witnesses, when testifying.

(d) At the hearing, the Board may consider any written or oral information produced by the owner, the alleged violator or other interested party. Any legal or statutory rule of evidence or procedure shall not apply to the hearing, and the Board may restrict testimony or proceed in any manner or order which it deems appropriate in its discretion. Generally, any relevant evidence may be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, 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. Hearsay evidence shall be sufficient in itself to support a finding. The Board may tape record or otherwise transcribe the hearing. The Board may proceed with the hearing even if the owner fails to appear or refuses to participate or to submit information. The owner may be represented by legal counsel so long as said owner gives the Board at least five (5) days prior written notice, in which case the Board’s attorney may be present as well. Any participant may question any witnesses and examine any documents presented at the hearing.

(e) After hearing any information, witnesses, or documents presented at the hearing, the Board's decision shall be made by majority vote of the Board Members present. If requested by the Owner, the Board will furnish a brief summary of the decision and the sanction, if any, which may be sent by regular mail to the owner and, if requested or the Board deems it necessary, to the alleged violator. The Board may also issue and record a Notice of Finding of Violation with the County Clerk and Recorder, and release same upon satisfactory compliance with the Governing Documents.

Each incident or each day of a continuing violation shall be considered a separate violation for which any maximum fine may be imposed. For example, each day during which a pet or a sign is permitted to remain is a separate violation. The Board may in its discretion impose increased fines for repeated or intentional violations.

Owners shall be responsible for violations committed by their contractors, guests, family members, and tenants, for example, pets kept by tenants or signs placed by real estate agents. The Board may proceed against both the owner and the alleged violator, simultaneously or separately, and actions against one shall not bar action against the other. The Board may contact the police, any regulatory or licensing authorities or other third parties regarding the alleged violation, but any action or decision by those parties shall not bar the Board from proceeding.

(a) Any violation of the Governing Documents will subject the Owner to a reasonable fine assessment imposed by the Association as follows:

In the event of a continuing violation, each day is a separate violation and a daily fine may be levied, but only if the Association's agent performs a daily inspection to verify the violation is continuing. Fines may not exceed $1,000.00 for any finding of violation.

(b) This schedule is not intended to cover all possible violations and there are instances where the amount of fines may vary depending on the circumstances. The amount of the fines are intended to bear a reasonable relationship to the actual harm that is being caused; the potential risk of loss to the Association if compliance does not take place; the costs of investigative demand letters and hearings to ensure compliance; and the cost of remedial measures (if used).

(c) Repeat offences and/or repeat offenders will justify higher fines. Fines should also be commensurate with the time and effort of the various board members in investigating and gathering evidence of violations, sending demand letters and conducting hearings. The above schedule is (at most) an attempt in order to ensure uniformity for routine violations.

(d) Fines will be due and payable within thirty (30) days of the date of the imposed fine, and shall be considered delinquent after the due date. A delinquent fine will result in a lien being filed on the property for nonpayment and will bear interest at eight percent (8%) per annum, calculated from the date of the fine, as well as late fees and legal fees.

(e) Any fine shall be both a personal obligation of the owner or the violator or both and shall also be an assessment creating a lien which may be recorded against the unit and may be foreclosed as provided in the Declaration. The Board may notify any lender and credit agency of such obligation and lien. Additionally, the Board may bring legal action to enforce the violated provision and to recover the fine.

(f) Any violation shall entitle the Board to recover from the owner or violator or both, its reasonable attorneys fees, court costs, interest, and any other collection expenses, regardless of whether litigation is instituted or is successfully concluded. The Board may seek to recover such fees and costs by all legal remedies, including without limitation, charging such fees and costs to the owner’s account with the Association.

(g) The Board, in its discretion, may waive fines, attorney fees, court costs, interest and other collection expenses, if, in its reasonable discretion, such waiver is appropriate under the circumstances. Additionally, the Board may condition waiver of the entire fine, or any portion thereof, upon the violator coming into compliance with the Declaration, Bylaws or rules.

(h) The Board reserves the right to fine for first violations of rules that involve health and safety issues and other violations where a warning may not be deemed necessary by the Board in its reasonable discretion. Additionally, upon prior written notice, the Board reserves the right to levy fines in excess of the above schedule, if the Board determines that the fines set forth in the schedule are not likely to provide effective incentives to induce compliance.

(i) Payment of an assessed fine does not relieve the violator from the responsibility of correcting the violation.

If the actions described above do not cure the default, or in the event of emergency, health or safety reasons, the Association will thereafter have the right (but not the obligation) to undertake whatever actions are reasonably necessary to remedy such violation, including:

(a) The right to enter any portion of a Unit for the purpose of correcting the default, in which case the party performing such action shall not be liable for any losses, costs or damages to any tenant or Owner of any Unit on account of its performance of such action except for any such loss, cost or damage caused by the party’s gross negligence or willful misconduct. Said right of entry shall include, but is not limited to, the right to make repairs, perform maintenance, remove any nuisance or otherwise undertake action to cure the breach or otherwise bring the Unit into compliance; and

(b) The right to file an action in any court of competent jurisdiction to evict any tenant in violation of these covenants or to obtain injunctive relief against any Owner or tenant, any of their agents, contractors or assigns, enjoining any activity which is in violation of the Covenant. If any such action is brought by the Association, it shall not be required to post any bond as a condition to the granting of any injunctive relief (including a preliminary injunction or temporary restraining order), nor shall the Association’s right to such injunctive relief be affected by an arbitration provisions in any contract executed by such Owner, tenant or their agents.

In the event the Association elects to make repairs, perform maintenance or take other action pursuant to Sections 3 through 7 above, the Association will submit all charges incurred for same to the Owner or persons responsible for the property upon which or for whose benefit such costs were incurred. If the Association’s costs have not been paid after expiration of thirty days after the date they become due, the Association may thereafter:

(a) deny rights to use the Common Areas, voting rights, or other rights in the Association; and

(b) record a lien against the Unit (including improvements thereon) for all fines and charges, as well as all costs (including reasonable attorneys’ fees) incurred by the Association in collecting such costs and foreclosing upon the lien. This portion of any assessment lien shall be junior to all other liens or encumbrances of record with respect to the Unit on the date this lien is recorded. This lien may thereafter be foreclosed upon in the manner provided by Colorado law for foreclosing upon real estate mortgages. This lien shall provide all sums expended by the Association (including reasonable attorneys’ fees) shall be additional indebtedness secured by the lien.

Owner(s) shall be responsible for violations committed by their guests, contractors, family Owners, agents or tenants. The Board may proceed against the Owner, the individual violating the Covenants, or both, and may suspend the voting rights of said Owner(s) for so long as a violation continues or the fines assessed pursuant to Section 6 remain unpaid.

All rights and remedies set forth hereinabove shall be in addition to, and not in lieu of, any other rights and remedies which any Owner may have to personally enforce the Covenants. All such rights and remedies shall be cumulative, and the exercise of any one or more of such rights and remedies shall not be deemed an election precluding the exercise of any of the others.

Technical irregularities or defects in the complaint, Notice or other compliance with this Rule shall not invalidate the proceedings or any fine or sanction imposed. This Rule shall be liberally construed to accomplish prompt, effective enforcement of the Association's Declaration, Articles of Incorporation, Bylaws and Rules.

If any doubt or questions shall arise concerning the true intent or meaning of any of the Covenant or these Rules, the Board shall determine the proper construction of the provision in question, and shall set forth in a written statement the meaning, effect and application of the provision. These determinations will thereafter be binding on all parties so long as it is not arbitrary or capricious, and they may be filed for record with the Clerk and Recorder of El Paso County.

The purpose of this policy is to institute proper guidelines for the ongoing management of the Association's investment of its reserve funds.

The principal represents the reserve funds for maintenance, repair, and replacement of those items for which the Association is responsible and that must be periodically maintained, repaired, or replaced. Reserve funds are to be invested in a manner that assures maximum safety and appropriate liquidity and, secondarily, maximizes yield within such constraints. The investment objectives are, in order of priority, as follows:

The Board has sole authority to approve and amend, alter or otherwise make changes to this Policy. Any modifications to this policy shall be in writing and approved by the Board. The Board shall have direct control with regard to opening appropriate bank accounts and establishing safekeeping accounts or other arrangements for the custody of securities and execute such documents as may be necessary. The Board may employ the service of a qualified investment advisor to direct a portion or all of the investment activities of the Association consistent with guidelines set forth in this investment policy. The Board will monitor ongoing investment activities to ensure proper liquidity is being provided and that the investment strategy is consistent with the Association's objectives. The Board of Directors shall review investment performance no less than quarterly.

a) Eligible Investments: The portfolio will be limited to the following investments:

b) Credit Quality Restrictions: All investments shall be AAA-rated , US Treasury securities or other full faith and credit obligations of the US Government

· The weighted average maturity of the portfolio will not exceed 1 year in order to meet anticipated cash requirements. This average shall be computed using the remaining maturity of any investment.

d) Custodian: Investments will be held in custodial accounts with approved banks or finantia1 institutions federally insured either through FDIC or the US Government, with no more than the FDIC insured amount held in any one bank.

a) Transfers of budgeted additions to reserves shall be made on a monthly basis; and

b) A quarterly report of earnings shall be prepared by management, financial advisor, or the treasurer and presented at a Board meeting; and

c) Two Board member signatures must be required to withdraw funds from investment accounts; and

d) In addition to any requirements provided by the Association's governing documents, the Association shall obtain coverage by fidelity insurance to protect the Association from loss due to theft for any person with access to its investments.

(a) Owners of properties in the Association in good standing are entitled to have made available to them copies of all Association Documents, on the Association’s website or by making an appointment with the Board to review same, which include the following:

i. Declaration of Covenants, Conditions and Restrictions Affecting the Real Property Known as Pine Terrace Phase One, recorded in Book 3830, beginning on Page 1042 of the El Paso County records (the “Original Covenant”);

ii. Amended and Restated Declaration recorded at Reception No. 206093235 of those same records (the “Declaration” or the “Covenants”);

v. Policies, Procedures, Rules and Regulations, and/or Resolutions adopted by the Board relating to the characteristics, qualifications, rights, limitations, and obligations of Owners; (These first four documents are hereinafter collectively described as the “Governing Documents”).

vi. Minutes of the Owners’ meetings, minutes of Board meetings, except Executive sessions, a record of all actions taken by the Owners or Board by written ballot or written consent in lieu of a meeting, a record of all actions taken by a committee of the Board in place of the Board on behalf of the Association, and a record of all waivers of notices of meetings of Owners and of the Board or any committee of the Board;

vii. A record of Owners in a form that permits preparation of a list of names and addresses of all Owners, showing the number of votes each Member is entitled to vote (“Membership list”);

viii. Financial records sufficiently detailed to enable the Association to provide statements of unpaid assessments in accordance with the Colorado Common Interest Ownership Act (“CCIOA”);

ix. Written communications within the past three years to Owners generally as Owners;

x. A list of the names and business or home addresses of its current directors and officers;

xii. All financial audits or reviews conducted pursuant to CCIOA during the immediate preceding three years.

(b) For purposes of this policy, the “good standing” of a member shall be based upon satisfactory compliance with the Governing Documents, including the payment of all assessments levied by the Association, and the absence of any sanctions, fines or charges for violations in accordance with the Covenant Enforcement Policy of the Association; the Board reserves the right to waive this requirement on a case by case basis for purposes such as a member’s right to a hearing before the Board.

(c) Each owner/member is responsible for knowing the information in the Governing Documents and for abiding by the standards for this Association, as set forth in the Governing Documents.

The following information should be made available to Owners in the Association in good standing within 90 days of the end of each fiscal year by posting on the Association’s website, with a notice of the URL by email or first class mail:

iii. A list (organized by unit type) of the Association’s current regular and special assessments;

v. The results of any financial audit or review for the fiscal year preceding the current disclosure;

vii. The Governing Documents, including the date of recording and recording number of the Declaration;

viii. The Board meeting and Owners’ meeting minutes for the fiscal year immediately prior to current annual disclosures; and

x. The Association’s responsible governance policies adopted under Section 38-33.3-209.5 concerning the following:

H. Procedures for the adoption and amendment of policies, procedures, rules and regulations.

xi. The name, address and phone number of the Association and its managing agent, if any.

(a) Owners in good standing have the right to examine certain records of the Association. The Association has compiled certain documentation which will provide an Owner with a wide variety of Association information. It is the obligation of every Owner to hold this information in appropriate confidentiality so that information is not released to other parties.

(b) Requests by Owners in good standing to inspect documents must be made in good faith, for a proper purpose, and describe with reasonable detail what records are needed and why. Requested documents must also be relevant to the stated purpose for the request. To be deemed “relevant,” the requested documents must directly pertain to the stated purpose. Owners shall not exercise their inspection or copying rights in order to harass any other Owner, nor for any commercial, illegal or improper purpose.

(c) A Membership list may not be obtained or used for any purpose unrelated to an Owner’s interests as an Owner in the Association, and it may not be:

i. Used to solicit money or property unless such money will be used solely to solicit votes of the Owners in an election held by the Association;

Any member requesting a Membership list shall furnish a sworn statement to verify:

ii. that in the event the list is used for any improper purpose, he/she will be responsible for any and all damages, penalties and costs incurred by the Association, including attorney fees, and shall be subject to all enforcement procedures available to the Association through its governing documents and/or Colorado law.

(d) Notwithstanding the foregoing, certain information has been deemed “not available” to the general membership for review or reproduction without the express written consent of the Board. This information includes the following:

ii. Delinquent account information, unless requested by the owner responsible for said account;

iv. Information involving pending or anticipated litigation or contract negotiations;

v. Information involving the employment, promotion, or dismissal of Association employees or other personnel;

vi. Documents related to investigate proceedings concerning possible or actual criminal misconduct;

vii. Documents which, if disclosed, would constitute an unwarranted invasion of individual privacy;

viii. Documents which the Association is prohibited from disclosing to a third party as a matter of law;

ix. Inter-office memoranda, preliminary data, working papers and drafts, and general information or investigations; and

(e) The Association shall not be liable for the disclosure or copying of any materials which are required to be provided by statute or judicial proceeding. The Association does not warrant or represent the accuracy, completeness, or any other matter in the materials provided.

(a) Owners who desire to examine and/or have copies made of Association records must make an appointment with the records custodian and submit the Document Request Form, which is attached hereto. Reasonable effort will be made to accommodate the Owner within a reasonable period of time. When the appointment is made, the Owner will be asked to designate the amount of time they want to reserve the library.

(b) If possible, the Association shall make an appointment with the Owner at a place and a time convenient to both parties, to conduct the inspection. However, if the request requires the participation of unpaid volunteer board members, the time, place and length of inspections will be based upon the board member’s schedule. All appointments for inspection will be limited to 1 hour unless otherwise agreed by the board member; if additional time is needed, additional appointments will be made.

(c) At the discretion of the Board of Directors or Manager, records will be inspected only in the presence of a Board member, management company employee or other person designated by the Board.

(d) Owners shall not remove any document from the Association’s records, nor shall they remove records from the Association’s place of business. Certain records may be copied, at the Owner’s expense. During an inspection, the Owner may designate such records for copying by use of tab, clip, or Post-It note upon the pages desired, but may not otherwise alter the records (for example, no folding, pencil or pen marks, etc.). The Association’s records custodian, on behalf of the Association, will make the copies.

(e) The Owner requesting the copies shall reimburse the Association for the actual cost of copying, which may include labor and materials for copying, research, locating and

(f) Copies should be available within ten (10) working days of receipt of the request, unless the condition or voluminous nature of the records makes this time frame impractical. In such cases, the copies should be made available as soon as is practical.

(g) Depending on the number of pages requested, the records custodian may request

ii. that the Owner return at a later date to pick up the requested copies, in order to allow personnel to set aside time to reproduce the documentation requested.

(h) All persons inspecting or requesting copies of records shall conduct themselves in a businesslike manner and shall not interfere with the operation of the Association’s office where the inspection or copying is taking place.

(a) To the extent that sellers within the Association are required by law to disclose to their buyers certain documents of the Association, the Association shall cooperate with such requests in accordance with this Rule.

(b) To request written copies of required Association documents, the seller or the seller’s agent must follow the rules and procedures listed herein, including payment for the actual cost of the copying. If records are available on a website, the seller or seller’s agent should use that website to obtain the documents.

(c) The Association uses reasonable efforts to provide copies, but shall have no liability for the information provided, nor for compliance with any deadlines or other contractual requirements.

(a) Any violation of these rules shall cause the immediate suspension of the inspection or copying until the violator agrees in writing to comply herewith, as well as other remedies such as fines. The Association’s Board or its representatives may take any available legal action to enforce this Rule.

(b) The Association will not honor any requests for inspection or copying that do not comply with this Rule, but the Association shall send a written notice to the person who made the request indicating the nature of any noncompliance.

(c) Any Association representative who receives an oral request for inspection or copying shall refer the person making the request to this policy, and the Association or its representatives will have no further obligation to respond until it receives a written request.

(d) The Association’s Board shall be entitled to resolve any dispute regarding the Association’s records based upon the Board’s reasonable business judgment.

Name of Requesting Party: ______________________________________________________________________

Relation of Requesting Party to Owner: ____________________________________________________________

Unit Address: ________________________________________________________________________________

Daytime Phone: ______________________________ Email: ____________________________________

Pursuant to Colorado State Law and the Association’s procedure regarding member access, inspection and copying of the Association’s documents, I agree to pay the cost of copying, as set by the Association’s property manager. Payment must be received at time of service, paid by certified funds or money order (no cash).

I certify that my request to review the books and records of the Association is for a proper purpose related to my membership in the Association, and that this request is not for commercial purposes or my personal financial gain or for any solicitation, illegal or improper purpose. Specifically, my reason for wanting to review the books and records of the Association is as follows: ____________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________.

I understand that examination of books and records of this Association will be made available during normal business hours in accordance with state law at a time and place designated by the Association. I estimate that the inspection will require _____ hours.

I agree that I am solely responsible for any legal liability or damages arising from or relating to their use of the information; and that the Association assumes no liability or responsibility for the information provided, nor its use or misuse, and that the Association does not warrant or represent the accuracy, completeness, or any other matter in the materials provided.

I agree that any information shall not be used for commercial, solicitation, illegal or improper purposes, and to indemnify the Association from any claims or expenses resulting from the use of such information, in the event the records provided to me by the Association are used for any improper purpose; in such case I will be responsible for any and all damages, penalties and costs incurred by the Association, including attorney fees, and I shall be subject to all enforcement procedures available to the Association through its governing documents and/or Colorado law.

Signature of Requesting Party: _____________________________________ Date: __________________

1. Authority. The board of directors shall have the authority to adopt policies, procedures and rules to the extent they do not conflict with the Declaration, Articles of Incorporation, and Bylaws of the Association (hereinafter collectively referred to as the “Governing Documents” or as the “Association Documents”) in order to interpret, supplement and/or enforce the governing documents.

2. Board Resolves Questions of Construction. If any doubt or questions shall arise concerning the true intent or meaning of any of the governing documents the Board shall determine the proper construction of the provision in question, and shall set forth in a written statement the meaning, effect and application of the provision. These determinations will thereafter be binding on all parties so long as it is not arbitrary or capricious.

3. Notice to Membership. In any case where the Board is adopting a major policy or a Rule that will carry a fine, the Association give notice to the members of the association prior to adopting the final policy/rule. This announcement can be made in a newsletter and the owners should be told how they can obtain a copy of the proposed rule/policy (such as a posting to a web site). The association may invite comments from the owners who cannot attend the planned meeting and those comments should be included in minutes, which should name those owners, describing their comments and the actions taken as a result of same.

4. “Rules” vs. “Policies”. Notwithstanding the above, there is a difference between “Rules” and “Policies,” even though both of these governing documents may be/are often combined into a single document or publication. Although both “Rules” and “Policies” are adopted at board meetings; “policies” are usually documented in the minutes; while “Rules” are sent to Owners after adoption, because the Owners are expected to comply (and can be fined if they fail to comply); by comparison, “policies” do not require notice because policies do not require any action by the Owners, and there are usually no fines for failure to comply. Notwithstanding the above, the Board may elect to combine policies and rules in one publication in order to consolidate interpretations that the Board has made.

5. Open Meetings. Rulemaking meetings shall be conducted in public session. The board will review written comments from owners who could not attend the meeting, and shall take comments from the owners in public session; the Board may then go into executive session as part of the deliberation process, but the Board must come back into open meeting for the final vote to adopt a Rule or policy. The Board shall consider the following criteria for adopting or amending a policy, procedure or rule:

6. Publication. Policies and procedures shall be effective upon adoption by the Board, and Rules shall be effective fifteen days after sending Notice of the adoption, amendment or repeal of any Rule, in writing, to each Owner. This can ordinarily be accomplished by giving Notice in a newsletter and publication of the Rules by posting to the website.

As stated in the Pine Terrace Declarations: “Each Owner, by acceptance of a deed or other instrument conveying an interest in a Unit, agrees Improvements within the Community must be made in accordance with the Design Guidelines adopted by the Board.”

One mission of Pine Terrace Homeowner's Association is to provide for the welfare of its members by offering an environment designed to:

· Preserve property values and improvements through preservation and enhancement of the attractiveness and desirability of the community.

· Assure that improvements, changes or additions in the neighborhood are compatible with other improvements; that common architectural themes, styles and colors are maintained.

These Design Guidelines are a collective reference to all written design and development guidelines, policies and procedures, application and review procedures and fee schedules, and all architectural controls which shall apply to all construction and all other Improvement activities within the Units, and which are enacted by the Board of Directors pursuant to its rule-making authority.

The Board may authorize variances from compliance with any of the architectural provisions, Guidelines or Rules, when circumstances so warrant. Such variances must be evidenced in writing and must be approved by the Board of Directors. If such a variance is granted, no violation of the Covenants shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular property and particular provision in the particular instance covered by the variance.

1. Architectural Control. The Board of Directors must approve all major proposed exterior changes in a building or major proposed changes to any undeveloped lot after such proposed changes are first reviewed and recommended by the Property Manager and Architectural Control Committee. The request for approval of such matters shall be of sufficient detail, in the exclusive opinion of the Board of Directors, as to provide the information necessary to make a considered determination. The objective is to control the exterior appearance of any proposed change and such approval shall not be unreasonably denied.

2. Awnings. Awnings may be installed by owner on his/her unit at the owner’s cost and responsibility. The fabric color must be Sunbrela Terra Cotta 4622 or equivalent. The valence edge Roman Key style and the binding in a vanilla color. Maintenance of the awnings is the owner’s responsibility.

3. Garage Doors. Any new or replacement garage doors must be metal and meet the specifications of Overhead Door, model 390 series, color 391 brown or equivalent. Maintenance of the doors is the owner’s responsibility.

4. Storm Doors. Storm doors may be installed by the owner on the front door(s) of his/her unit at the owner’s cost and responsibility. The doors must be steel and a dark brown color and subject to the owner giving written notice to the Board prior to installation. Maintenance of the doors is the owner’s responsibility.

5. Exterior Improvements or Structural Modifications. Plans for any exterior improvements or structural modifications must be submitted to the Architectural Control Committee and approved by the Board.

6. New or Major Construction Projects. Any new construction on vacant lots or rebuilding requires prior approval of the plat plan, construction drawings and plans for discharge of roof water by the Architectural Control Committee and the Board. Gutters must be six (6) inches and must be installed with flashing under the edge roof tiles and extending into the gutter. Prior to any construction a $2,000 non-refundable new construction fee must be paid to the Pine Terrace Homeowners Association to compensate for the extra wear on road surfaces. In addition, there is a $7,500 refundable contractor’s damage fee to cover any potential damage incurred by the community or HOA. The $7,500 will be placed into a simple savings (escrow type) account. Construction traffic shall only use the upper gate during daylight hours unless otherwise instructed by the Property Manager. No construction vehicles shall be overweight, dangerously loaded, or operated/parked in any manner to endanger or annoy any of the residents. Any damage caused by construction traffic, including excessive road wear, shall be the joint and several responsibilities of the driver, the vehicle owner, the employing contractor and the property owner. Performing construction activities at Pine Terrace and driving on its private road system shall be deemed as consent to this Rule.