Covenant Violation Policy

POLICY REGARDING A PROCEDURE AND SCHEDULE FOR VIOLATION OF COVENANTS

WHEREAS the Board of Directors (the Board) of the Meadow Springs Second Nine Homeowners Association (the Association) is charged with governing in accordance with the Declaration of the Covenants, Conditions, and Restrictions for Meadow Springs Second Nine Homeowners Association as recorded under Benton County Auditor's File No. 669883.

WHEREAS the Board finds no restrictions in its governing documents which prevent it from levying reasonable fines for violations of the by-laws and covenants and

WHEREAS our covenants provides that the board may adopt rules and regulations for levying reasonable fines unless governing documents otherwise provide; and

WHEREAS the Board finds that it would reduce the number and duration of violations of the covenants and serve the best interest of the members of the Association;

BE IT RESOLVED the following rules and regulations and fine schedule are, hereby adopted by the board and voted on by the membership and shall be provided to all members of the Association.

PROCEDURE

1. FIRST NOTICE: Upon determining that a violation of the covenants has occurred or is occurring, the Board shall send notice of violation to the owner in violation. The first notice shall describe the violations and if such violation is of a continuing nature, shall prescribe a reasonable time for cure of such violation which shall in no event be less than three (3) business days.

2. SECOND NOTICE: If a violation of the covenants is not cured within the time specified in the first notice, or if the Board determines that a repeat violation has occurred, the Board shall send a second notice of violation. The second notice shall be delivered by certified mail, return receipt requested, or other traceable means. The second notice shall state the date of the first notice and a copy of the first notice shall be attached to the second notice. The second notice shall also state that if the violation occurs again or, is of a continuing nature, is not cured within three (3) business days, a fine will be levied in accordance with the fine schedule.

3. FINE: After a three (3) day time period is provided by the second notice, the Board shall levy a fine against the owner. Such fine shall have the effect of an assessment levied pursuant to our covenants and bylaws of the association. Notice of the levy of fine shall describe the violation, include copies of the first and second notices and shall be delivered by certified mail, return receipt requested, or other traceable means. An owner is not entitled to a new first or second notice of violation prior to imposition of a fine if the violation of which the fine is imposed is the same as a violation for which the owner has previously been given notice.

4. FINE SCHEDULE: For any occurrence of a violation, the fine shall be $50.00. For violations continuous in nature, the fine shall be $50.00 per day for the first five (5) days and $25.00 per day for each day thereafter.

5. APPEAL: At any time after a first notice has been issued and up to thirty (30) days after the date of a notice of levy of fine, an owner may appeal such notice or fine to the Board. Thirty (30) days after a notice of levy of fine is issued, the fine shall become final and not subject to appeal. All appeals shall be in writing and shall be delivered to the President of the Board by certified mail, return receipt requested, or other traceable means. While the appeal is pending, the time to cure and/or fine shall be stayed. The Board shall respond to the appeal with a written decision within thirty (30) days of receiving the appeal. If the appellant disagrees with the Board's decision on appeal, further appeal of the decision may be had using the procedures set forth in the covenants. It is the goal of the Board to try and resolve all issues of the covenants by working with the owner first.

DISPUTE RESOLUTION

In the event of any claims or disputes arising out of this Declaration, the parties hereby agree to submit the same to binding arbitration at a location to be mutually agreed upon in Benton County, Washington. In the event the parties are unable to agree upon an arbitrator, or location, the same shall be selected by the presiding judge for the Benton County Superior Court at the request of either party. The mandatory arbitration rules, as implemented in Benton County Superior Court, shall be binding as to procedure. The prevailing party in any such dispute shall be entitled to recover reasonable attorneys' fees.

Effective March 15, 2011