HOA BOARD MEETING

3 Nov. 2010 @ 7:00pm

Those in Attendance:
Board Members: Edward Takacs, Jeremy Fong, Gene Cosper
Mike Scales (Excused)

Review Minutes & Assignments: 2 Aug. 2010 HOA Board Meeting & 6 Oct. 2010 Special Meeting minutes. Approved by board.

Management:
-Received proposed Collection Policy & Fine Schedule from our management co.
-- Reviewed with board members and discussed the paperwork.

LEXINGTON ESTATES HOMEOWNERS ASSOCIATION
RESOLUTION OF THE BOARD OF TRUSTEES
COLLECTION POLICY
NOVEMBER 3, 2010

WHEREAS, “Declaration” is the “Declaration of Lexington Estates”; and “The Association” is the Lexington Estates Homeowners Association; and “Board” is the Board of Trustees for Lexington Estates Homeowners Association; and

WHEREAS, the Board of Trustees for the Association desires to honor the intent of the governing documents for the Association for the mutual benefit of the membership; and

WHEREAS, Article VII Section 1 of the Declaration states that membership in the Association is appurtenant to and runs with each Lot. All Common Expenses shall be shared and allocated equally among the Lots and Owners.

WHEREAS, Article VII Section 3 of the Declaration authorizes the Committee to adopt administrative or house rules; and

WHEREAS, Article VII Section 4 of the Declaration authorizes the Board to levy fines as a means of enforcing the provisions of the Declaration, Rules and Regulations, and Bylaws of the Association; and

WHEREAS, the Board desires to set forth a procedure to enforce the Declaration and Rules and Regulations of the Association; and

NOW, THEREFORE, BE IT RESOLVED that the following is adopted by the Board:

1. At the beginning of each calendar year; all installments of any General Assessment whether paying yearly or quarterly plus any processing fee which shall not have been received by the Board on or before the tenth (10th) day of January shall be assessed a late charge of five percent (5%) of the amount of the unpaid installment.

2. For owners paying quarterly the installments of any General Assessment plus any processing fee shall be due on or before the tenth (10th) day of each quarter in which it is due, otherwise a late charge of five percent (5%) of the amount of the unpaid installment will be charged.

3. Interest, at a rate of eighteen percent (18%) per annum, will be charged to any owner for any delinquent amount past due (including any past due accrued interest) on the last day of each calendar month beginning the first month end that the account is delinquent pursuant to Section 1 above.

4. Accounts past due for 60 days from the original due date may be sent to the Association’s agent or a separate collection agency, and a reasonable collection fee (not to exceed $100) shall be charged to the delinquent account in addition to applicable interest charges.

5. If any account is past due for 90 days from the original due date, a lien may be placed on the Lot and reasonable attorney’s fees (minimum of $250, not to exceed $500) shall be charged to the delinquent account. The owner shall be given notice of the lien in accordance with Utah Code Ann. §38-12-102.

6. If any account is past due for 120 days from the original due date, the Board or its agent may turn over collection to a Collection Agency or Attorney for further collections.

7. Once an owner has been turned over to a Collection Agency or Attorney for collections, the owner shall work directly with Collection Agency or Attorney to resolve the collection and shall not contact the Board or its agent.

8. Any and all expenses incurred by the Association in collecting a delinquent account, including reasonable attorney’s fees and costs, shall be paid by the owner.

9. Partial payments will be applied to oldest outstanding principal balance and then interest and fees.

10. The Board may allow owners to enter into a payment contract to avoid additional collection costs. Payment contracts will require accounts be paid off within 6 months. Interest will continue to accrue on the outstanding balance until account is brought current. If at any time the payment contract is violated, the collection process will resume.

If a check is not honored by the bank, the Owner will be charged an NSF fee.

LEXINGTON ESTATES HOMEOWNERS ASSOCIATION
RESOLUTION OF THE BOARD OF TRUSTEES
FINE SCHEDULE
#2010-2
NOVEMBER 3, 2010

WHEREAS, Declaration is the Declaration for Lexington Estates; and Association is the Lexington Estates Homeowners Association; and “Board” is the Board of Trustees of Lexington Estates Homeowners Association; and

WHEREAS, the Board of Directors for the Association desires to honor the intent of the governing documents for the Association for the mutual benefit of the membership; and

WHEREAS, Article VII of the Declaration authorizes the Committee to adopt administrative or house rules; and

WHEREAS, Article VII of the Declaration authorizes the Board to levy fines as a means of enforcing the provisions of the Declaration, Rules and Regulations, and Bylaws of the Association; and

WHEREAS, the Board desires to set forth a procedure to enforce the Declaration and Rules and Regulations of the Association; and

NOW, THEREFORE, BE IT RESOLVED that the following is adopted by the Board:

FINE SCHEDULE: Each and every violation is hereby made specifically subject to and punishable by the specific fines provided for in this section. Unless otherwise specifically noted, the fines and penalties are in the specific amounts as follows:

First Violation: The Association shall give a written warning to the owner that shall inform the owner that a fine will be imposed if a second similar violation occurs or if a continuing violation is not cured within 48 hours.

Second Violation: Upon the second violation of the same type after a warning in any one-year time period, or a continuing uncorrected violation after the initial 48 hour warning period, a fine of $25.00 shall be imposed on the owner.

Third Violation: Upon the third violation of the same type after a warning in any one-year time period, or an uncorrected violation continuing at least 48 hours after the assessment of the second violation fine, a fine of $50.00 shall be imposed on the owner.

Fourth Violation and Subsequent Violation(s): Upon the fourth violation of the same type after a warning in any one-year time period, or an uncorrected violation continuing at least 48 hours after the assessment of the third violation fine, a fine of $100.00 shall be imposed on the owner.

Cumulative fines for a continuing violation will not exceed $500 per month.

APPEAL PROCESS: An owner who is assessed a fine may request an informal hearing to protest or dispute the fine within thirty (30) days from the date the fine is assessed. The hearing shall be conducted in accordance with the standards below:

1. If a hearing is requested, no interest or late fees shall accrue related to the fine until after the hearing has been conducted and a final decision has been rendered by the Board.

2. All requests for hearing shall be in writing and shall be mailed or delivered to the Managing Agent.

3. The hearing must occur within fourteen (14) days after the owner delivers a written request for hearing to the Managing Agent.

Any hearing as a result of such a request shall be governed by the following rules:

1. The owner must appear at the time and place designated by the Board for the hearing.

2. At the hearing, the owner contesting the fine shall be entitled to fifteen (15) minutes to present evidence to challenge the alleged occurrence of the violation of the rule or such other evidence and information as the owner believes is pertinent or appropriate to the consideration of the Board.

3. The Board may establish and announce at the hearing any other reasonable rules regarding the hearing.

4. Within ten (10) days of the hearing, the Board shall issue and mail to the owner a written decision regarding the dispute.

5. The Board’s response shall be final.

6. The Board may rely on any reasonable information and evidence in determining whether or not a violation has occurred, both initially and after a hearing.

7. Fines not paid by the monthly assessment due date following their issuance shall accrue interest and late fees the same as any other late assessment amount, and may be collected as an unpaid assessment as set forth in the Declaration.

-- Ed Takacs has been in contact with Mike Scales, and he has reviewed these documents and he votes yes to put them into effect.
-- Put the proposed Collection Policy and Fine Schedule to a vote by Board Members.
--- Edward Takacs, Jeremy Fong, Gene Cosper voted yes.

Landscape:
- Water has been turned off.
- Jeremy Fong will see to draining the lines.

Next HOA Board Meeting: To be announced.
Review of notes: All Board members agreed.
CLOSED: 8:00 pm