HOA Dues and Collection Policy

Your Board of Directors has taken a firm stance on collection of late assessments. This policy is not intended to punish homeowners, but to be fair to all homeowners who pay their assessments on time. If late assessments were allowed to accrue, homeowners who paid on time and in good faith would be forced to subsidize those who do not pay: either assessments would have to be raised, or reserves would dwindle. The Association as a whole would suffer financially because of the irresponsibility of a few.

No owner may, for any reason, exempt himself from liability for such assessments. The invoiced annual homeowner's Association dues must be paid as indicated and on time. Should a homeowner disapprove of the way the Association is being managed, the homeowner does not have the right to withhold the dues in protest; the Covenants and Bylaws specifically prohibit such action. All homeowners have a legal right to appeal any decision or action, financial or otherwise, of the Association in writing.

If, for any reason, you are unable to pay assessments by the due date, please contact the Association. We would prefer to amicably work out a payment plan rather than begin legal proceedings.

An unpaid $200.00 assessment can become a $2,000.00 obligation within one year with interest, late charges, and legal expenses if there is no attempt from the homeowner to rectify the situation. It is important that you completely understand the collection procedures. Therefore, please review the following collection policy:

• The HOA retains a company to collect assessments (current and delinquent). They will not accept cash delivered by mail or in person. Personal checks and/or money orders will be accepted if payable to the Association. Assessments may also be paid by credit card, but include an additional 4% processing fee.
• A homeowner may request and the Association shall provide a receipt for the payment of assessments if the owner requests in writing such a receipt.
• It is the owner's responsibility to allow ample time for the mailing of payments, and payments must be received by 5:00PM on the due date — postmarks on or after the due date are considered late. In all cases, every owner shall be responsible for payment within the given time limit regardless of circumstances.
• An owner may dispute any Notice if the owner submits to the Board a written explanation ("Explanation Letter") of the reason for his or her dispute within fifteen days of the postmark of any Notice. If the owner submits an Explanation Letter in a timely fashion, the Association, by and through its Board, shall respond, in writing, to the owner within fifteen days of the date of the postmark of the owner's Explanation Letter.
• Any owner who is unable to pay assessments is entitled to make a written request for a payment plan to be considered by the Board of Directors. An owner may also request to meet with the Board in executive session to discuss a payment plan. The Board will consider payment plan requests on a case-by-case basis and is under no obligation to grant payment plan requests.
• The total amount due the Association MUST be paid in full in order to reinstate the delinquent account and prevent legal action. Payments will be applied in the following order:
  1. Fines
  2. Legal Fees and Costs
  3. Interest
  4. Late Charges
  5. Special Assessments
  6. Assessments
• The HOA uses the provided registered address for all correspondence with the homeowner, as specified in the Association Bylaws. It is the homeowner's responsibility to provide correct or updated addresses.

The Association intends to enforce collection of all amounts due by any and all methods available for enforcement of contractual obligations or liens, including judicial and non-judicial foreclosure of lien and legal action in court against the person or persons responsible for the amounts owed. The Board reserves the right to use any other lawful means which may now or hereafter be available for the collection of amounts due the Association.

Schedule of Actions

Please review the below schedule regarding payment of dues and approximate dates of policy enforcement actions:

• On December 1^st or each preceding year, an annual HOA dues assessment invoice is sent to each homeowner of the Association.
• Assessments are due in full on January 1^st of the following year.
• On February 1^st, a second invoice is sent to those owners who have not paid with additional penalties and retroactive interest from January 1^st.
• On March 1^st, a Late Notice is sent and charged to the account.
• On April 1^st, a Delinquent Notice is sent and charged to the account.
• On May 1^st, a Default Notice is sent and charged to the account. Request for Lien Notice is sent to the Board for action.
• On June 1^st, if approved, title search is performed, a property lien is prepared, and all necessary paperwork is filed with the courts. Legal expenses are added to the account; a copy of the lien paperwork is sent to the homeowner. A Collection By Attorney Notice is sent to the homeowner.
• On July 1^st, all further collection efforts are handled by the Association's attorney, including property foreclosure.

This process is designed to collect the annual assessment, not to own real estate. At numerous steps, the homeowner is afforded the opportunity to bring their account into balance. Throughout the process, there is opportunity for exceptions due to unusual or unfortunate circumstances.

Beyond this, there are numerous avenues for homeowners to regain ownership of a residence. It is important to note that the Association does not have any additional legal or liability exposure if we foreclose or evict. The HOA does not become responsible for the mortgage, taxes, insurance, care or upkeep. These are the responsibilities of the mortgage holder. We are not allowed to cut off electricity, water or telephone services to the residence. In fact, the HOA is advised not to have any direct contact with the defendants.

Late Charges and Legal Fee Amounts

Please review the below listing of late charges and legal fees that will be applied to delinquent accounts:

• The Association applies an 18% annual interest rate to all accounts and assessments past due as specified in the Covenants.
• A charge of $35.00, in addition to late fees if applicable, will be assessed to any account whose payment has been returned or rejected for any reason.
• A debt collection services charge of $25.00 will be added to the account for each Late, Delinquent, Demand, Default, Lien, Intent to Foreclose, Foreclosure or other similar Notices sent to an owner.
• The cost to perform a deed / title search is $100.00
• The cost to file a property lien is $195.00.
• The cost to file a notice of payment on a property lien is $75.00.
• The cost for each contact with / letter from the Association attorney is $150.00
• The cost to file a non-judicial foreclosure is $950.00.
• Any additional expenses incurred by the Association during the collection process will be added to the account.

The costs above are estimates and may in fact be greater than those stated and are subject to change without notice.