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THE RESERVE AT STONEHAVEN HOMEOWNERS' ASSOCIATION 
RULES AND REGULATIONS
 
Pursuant to Section 5.4.12 of the Declaration of Covenants, Conditions, and Restrictions of the Reserve at Stonehaven (the "Declaration") and R.C.W. 64.38.020, the following rules and regulations (hereinafter, "Rules") are adopted. These Rules are intended to provide additional incentive for compliance by owners who violate the requirements of these Rules and provisions of the Declaration and the Association's Bylaws (collectively hereinafter, "Governing Documents"). In the event of an inconsistency or conflict between these Rules and the Declaration or Bylaws of the Association, the Declaration or Bylaws shall supersede and apply.
 
1. RULE ON COLLECTION OF ASSESSMENTS
The Association requires a steady, dependable cash flow from assessments to conduct its operations, maintain common areas, and enforce its Governing Documents. Such assessments are important to the financial stability of the Association and are necessary to maintain property values and the quality of The Reserve at Stonehaven residential community. This Rule on Collection of Assessments is intended to establish a uniform, fair, and consistent manner of collecting assessments and to provide an incentive to owners to timely pay assessments.
 
1.1 Definition of Assessment.
Pursuant to RCW 64.38.010(1), the term, "Assessment," means all sums chargeable to an owner by an association in accordance with RCW 64.38.020, including without limitation annual and special assessments, charges, fines, interest, late charges, and reasonable attorney's fees and costs incurred by the Association in connection with the collection of a delinquent owner's account.
 
1.2 Statement of Authority.
Annual assessments are due on 1st of each year. Any Assessment or installment thereof, including without limitation annual and special assessments, fines, late fees, and other charges. are delinquent if an owner does not pay them within 15 days after such Assessment was first due and payable.
 
1.3 Interest, Late Fees, and NSF Charges.
 
1.3.1. Interest. Delinquent Assessments shall bear interest at twelve percent (12%) per annum until the owner pays them in full. See, Section 8.5 of Declaration.
 
1.3.2 Late Fees. Pursuant to Washington State's Homeowners' Association Act and the Declaration, the Association may impose and collect charges for late payment of assessments. See, RCW 64.38.020(11). A late charge in an amount of $50 will be assessed against any unpaid assessment which has been delinquent for more than fifteen (15) days. Late charges are assessed in addition to interest on past-due accounts.
 
1.3.3 NSF Fees. A charge of $25.00 will be imposed against an owner each and every time a check provided by or on behalf of the owner is returned NSF or rejected by the bank or financial institution on any other grounds.
 
1.3.4 Billing for Late Fees, Interest or NSF Charges. The Association is not required to formally bill the owner for late charges, interest, or NSF fees, as they automatically accrue after expiration of the periods set forth above.
 
1.4 Lien.
Pursuant to Section 8.7 of the Declaration, all assessments, together with interest, costs, late charges, and reasonable attorney's fees, shall be a lien upon the Lot against which each such assessment is made. The Association may formally record a Notice of Claim of Lien with King County for unpaid Assessments at any time at least fifteen (15) days following delivery of the notice of default referred to in Section 7.7
 
1.5 Association Collection Procedures.
The Association will use the following procedures to secure payment from any owner who is delinquent in paying assessments:
 
1.6.1 Notice of Default: The Association, through its Board, manager, or attorney, will mail an owner who remains delinquent in paying any assessment or installment thereof for more than thirty days, a written notice advising of the existence of the default and accelerating and demanding payment of the entire assessment balance within fifteen (15) days.
 
1.6.2 Collection by Attorney: Except in cases where the Board has approved a payment plan, any owner that owes the Association more than $ in 
Assessments and has been sent the Notice of Default letter referred to in subsection 1.6.1 above, may be immediately turned over to the Association's attorney for collection at the discretion of the Board. Collection action by the Association's attorney may include, without limitation, the recording of a Notice of Claim of Lien against the delinquent owner's Lot, legal proceedings to obtain a judgment against the delinquent owner, and lien foreclosure. Owners are responsible for all attorney's fees and costs associated with collection and recovery of delinquent assessments, pursuant to Section 8.12 of the Declaration.
 
1.7. No Waiver. The Association should not deviate from these Rules without good cause. However, there may be occasions where an owner is unable to pay part or all of their Assessments (e.g. a family tragedy, lost employment, or other event which has severely impacted the owner's ability to pay). The Association may use its discretion in enforcing these Rules against an owner, who provides written notice and evidence of a hardship to the Association prior to the commencement of litigation to recover the delinquent Assessments. If an owner demonstrates hardship, the Association will examine each situation on a case-by-case basis, and determine whether to accept a payment plan or whether or offer relief from the procedures and remedies described in these Rules.
 
2. FINE SCHEDULE AND NOTICE AND OPPORTUNITY TO BE HEARD
 
2.1 Introduction.
Section 5.4.12 of the Declaration and R.C.W. § 64.38.020(11), provide that the Association can levy reasonable fines, in accordance with a previously established schedule adopted by the Association and furnished to the owners, for violations of the Declaration, Bylaws, and the Association's Rules and Regulations (collectively herein, "Governing Documents")
 
2.2 Investigation/Notice of Violation.
Once a possible violation has been reported to or otherwise becomes known to the Board, the Board will use ordinary and reasonable care in determining whether to issue a violation notice to the offending owner. If a violation is found, the Board will send written notice of the violation to the offending owner stating the specific provisions of the Governing Documents or decision of the Board which the owner, or his tenants, guests, or invitees, are alleged to have violated. The violation notice shall state, to the extent reasonably available, the time, date, location, nature of violation, applicable fines, and persons involved.
 
2.3 Service of Violation Notice.
Within fourteen (14) days of the Board's decision to issue a violation notice, the Board secretary shall cause it, together with a copy of this Section 2 of the Rules and Regulations, to be served upon the owner at his or her address on file with the Association. If an owner has not provided another address to the Board for purposes of receiving mailings and notifications from the Association, the address of the owner's lot within The Reserve at Stonehaven shall be the owner's address for purposes of receiving violation notices. Service of the notice of violation shall be made by leaving the same with the owner personally, by leaving the same with a person of suitable age and discretion at the owner's residence, or by first-class mail. Service of any documents upon the Association by the owner or his/her agents shall be made by service upon the Secretary or President of the Association, or the Association's manager or attorney if so directed by the Secretary or President in writing.
 
2.4 Right to a Hearing.
 
2.4.1 Opportunity to be Heard. Upon service of a violation notice pursuant
to sub-section 2.3 above, the owner shall be entitled to request a hearing to offer a defense to, or otherwise offer information or testimony regarding the circumstances relating to the alleged violation.
 
2.4.2 Request of Hearing. The owner must request a hearing, in writing, within fifteen (15) calendar days of service of the violation notice in accordance with sub-section 2.3 above. The request for a hearing must contain the following: 
  1. The owner's name and address within The Reserve at Stonehaven;
  2. The name and address of any non-owner occupants of the owner's Lot;
  3. The owner's reasons, basis and defense for the hearing;
  4. A copy of all supporting documentation;
  5. The name of any attending attorneys, witnesses or other collaborating guests; 
  6. The owner's signature and date of the signature.
2.4.3 Failure to Request Hearing. An owner shall be found liable for the violations stated in a duly served violation notice, if said owner fails to: (a) request a violation fine hearing within the fifteen (15) day period; or (b) fails to materially comply in all respects with the requirements contained in sub-section 2.4.2 above.
 
2.5 Hearing Board. Hearings with respect to violation notices shall be handled by the Board of Directors, or a Hearing Board appointed by the Board of Directors consisting of at least two Board members ("Hearing Board"). The Hearing Board shall select from among its members a Chairman of the Hearing Board and a Secretary of the Hearing Board. The Hearing Board is authorized and empowered to investigate, hear, and determine all violation notices issued for violations of the Association's Governing Documents_ The Hearing Board is further authorized and empowered to impose a fine as provided for herein upon any person whom it finds to have violated the Governing Documents, and to require the non-prevailing party to reimburse the Association for its costs, including reasonable attorney's fees, in connection with the matter. Nothing herein shall be construed to prevent the Board of Directors from serving as the Hearing Board.
 
2.6 Hearing Procedure.
 
2.6.1 Confirmation of Request for Hearing. An owner will be sent confirmation by the Hearing Board of its receipt of the Request for Hearing.
 
2.6.2 Notice of Hearing Date. No later than ten (10) calendar days following the Association's receipt of an owner's Request for Hearing, the Hearing Board shall mail or deliver notice to the owner of a hearing date, which notice will provide the date, time, and location of the hearing, which is to be determined by the Hearing Board.
 
2.6.3 Order of Proceedings. The order of proceedings for a violation hearing shall be as follows:
  1. Each party to the proceeding is entitled to make an opening statement setting, for their version of the facts, starting with the complainant. If the Association is the complainant, then a member of the Board, the Association's manager, attorney, or other designated agent shall be entitled to speak for the Association at the hearing.
  2. Each party, starting with the complainant, is entitled to produce evidence, witnesses and testimony; except that, no witnesses shall be permitted to testify unless disclosed to the other party at least 72 hours in advance of the hearing.
  3. Each party, starting with the owner, is entitled to make a closing statement. The owner is entitled to make a final statement in rebuttal following the complainant's closing statement. 
  4. Any member of the Hearing Board may question any party or witness. The Hearing Board members may, on their own motion, call witnesses or secure tangible evidence.
  5. Depending on the circumstances, the Hearing Board may decide, in its discretion, to conduct the hearing in executive session.
  6. The Hearing Board may expel any person from any hearing for improper, disorderly or contemptuous conduct.
  7. Rules of Evidence: Any relevant evidence which is not privileged or subject to the attorney-work product doctrine is admissible regardless of whether the evidence is hearsay or would be otherwise be inadmissible in a court of law. The Chair of the Hearing Board may exclude irrelevant, immaterial or unduly repetitious evidence.
  8. At the conclusion of the presentation, the hearing will adjourn, and the Hearing Board will review the circumstances of the Request for Hearing as presented.
2.6.4 Deliberation.
As soon as possible after conclusion of the hearing, the Hearing Board shall meet in executive session to deliberate and reach a decision. A majority of the Hearing Board shall be controlling. The decision of the Hearing Board shall be in writing, and shall summarize the evidence presented to and considered by the Hearing Board, shall state the facts upon which the Hearing Board has based its decision, and shall contain a finding as to whether or not the Respondent violated the Governing documents or a decision of the Board as provided in the Governing Documents.
 
2.6.5 Notification of Decision.
Within ten (10) calendar days of the hearing, the Hearing Board will mail or deliver written notice to the owners of the Hearing Board's decision.
 
2.7 Fine Schedule.
2.7.1 Continuous or Ongoing Violations. Fines may be imposed and shall accrue at the rate of twenty-five ($25) per day until compliance occurs with respect to those violations of the Governing Documents that are deemed by the Hearing Board to be continuing or ongoing in nature (i.e. violations that are not intermittent or occur sporadically). Per board resolution on 3/20/2018 The board has adopted the Intermittent Offense fine schedule for all violation types and will escalate to the next violation level every 10 days until corrected.
 
2.7.2 Intermittent Offenses. If the violation involves an intermittent offense or conduct (for example, the failure to quiet and control a barking dog or a non-continuous but repeated parking violation), the Association may levy fines on a per incident basis as follows:
 
1st offense: Warning to the owner and occupant
2nd offense: $25.00
3rd offense: $50.00
4th offense and each subsequent offense: $100.00 per offense
 
2.7.3 Specific Violation Fines.
The Board may also adopt, publish, and levy specific violation fines applicable to particular offenses/violations of the Governing Documents. If a specific fine amount or fine schedule is provided with respect to a particular violation, then that specific fine amount or fine schedule shall apply.
 
2.7.4 No Duplication of Fines for Same Offense. In no event shall the Board impose fines for the same violation under more than one of the above sub-sections (2.7.1 thru 2.7.3)
 
3. RESPONSIBILITY OF OWNERS
3.1 compliance.
Each owner is responsible for ensuring that their guests, tenants, invitees, and occupants of said owner's Lot, comply with the Association's Governing Documents.
 
3.2 Copy of Governing Documents.
Each owner who rents or leases a Lot in the Association, or allows a non-owner to occupy his or her Lot (aside from relatives of the owner) shall provide that person with a complete copy of the Governing Documents.
 
3.3 Owner Liable.
Owners shall be personally liable for any violation fines incurred, directly or indirectly, as a result of the actions or inactions of their tenants, guests, invitees, licensees or other non-owner occupants of their logs). In addition, to the extent that arty common expense (such as, cost incurred by the Association to repair damage to the common elements) is caused by the misconduct of an owner's tenant, guest, invitee, licensee, or occupant of said owner's Lot, the Association may assess that common expense against the owner and his or her Lot.
 
4. RULE ENFORCEABILITY AND EFFECTIVE DATE
These Rules shall supersede and replace any previously adopted Rule or Rules as to the matters addressed herein. If any portion of these Rules is determined to be legally unenforceable, it shall not negate the enforceability of the remaining portions of these Rules. These Rules shall be effective thirty (30) days after said Rules have been both adopted by the Board and furnished to the owners. A copy of the Rules then in force shall be retained by the Secretary of the Association and shall be available for inspection by any owner during reasonable business hours. These Rules shall have the same force and effect as if set forth in the Declaration.