Due Process Procedures

COURTYARD AT REDFIELDS

HOMEOWNERS ASSOCIATION, INC.

(“Association”)

RESOLUTION NO. 2014-0002

COVENANT AND RULE ENFORCEMENT:

NOTICE AND HEARING PROCEDURES

WHEREAS, ARTICLE II, paragraph 5 of the Association’s Second Restated and Amended Courtyard Homes at Redfields Declaration of Covenants, (“Declaration”) and ARTICLE VI, Section 1 of the Association’s Bylaws provide that the business and affairs of the Association are managed by the Association’s Board of Directors (“Board”), and that the Board may exercise all the powers of the Association except those specifically reserved to the Association’s members by applicable law or the Declaration, Bylaws or the Articles of Incorporation;

WHEREAS, pursuant to the Declaration and Sections 55-513 and 55-515 of the Virginia Property Owners’ Association Act (the “Act”), Owners and occupants of Lots within the Courtyard Homes neighborhood area of the Redfields subdivision, Albemarle County, Commonwealth of Virginia must comply with the Act, the Declaration and the Association’s rules and regulations (“Rules and Regulations”); and

WHEREAS, pursuant to ARTICLE IV, paragraph 13 of the Declaration and Section 55-513 of the Act, the Board has the authority to assess violation charges against Owners for violations of the Declaration and Rules and Regulations, and has the authority to suspend the right to use Association services for such violations or if an Owner’s account becomes more than 60 days’ past due;

WHEREAS, pursuant to Section 55-513 of the Act, certain procedural safeguards are to be followed before assessing violation charges or suspending use rights;

WHEREAS, the Board has deemed it to be in the best interests of the Association to establish amended policies and procedures for enforcing the Declaration and Rules and Regulations (collectively referred to in this Resolution as the “Governing Documents”).

NOW, THEREFORE, BE IT RESOLVED THAT the following amended policies and procedures for enforcing the Governing Documents are hereby adopted, and this Resolution supersedes and replaces in its entirety Resolution No. 2010-005 (Complaint and Due Process Procedures):

A. Application of this Resolution/Definitions.

The procedures in this Resolution must be followed prior to the Board assessing violation charges against an Owner for violations of the Governing Documents (other than for nonpayment of assessments) or, if applicable, suspending the right to use Association services. However, these procedures may (but are not required to be) used before taking other types of enforcement action available to the Association.

Owners are responsible for their own violations of the Governing Documents and for violations by their family members, tenants, guests and invitees, as may be applicable.
A capitalized term defined in the Declaration shall have the same meaning when used in this Resolution unless a term is otherwise defined in this Resolution.

B. Complaints Alleging Owner or Resident Noncompliance.

1. Submission of Written Complaint. Any Owner or resident who requests that the Association take action to enforce the Governing Documents must submit a signed and dated written complaint to the Board of Directors. The complaint should identify the offending Owner or resident and/or the Lot address, as applicable, and describe the condition, act or omission that constitutes (or is believed to constitute) a violation of the Governing Documents. However, the failure to submit such a complaint shall not prevent the Association from taking enforcement action in response to a violation of the Governing Documents that comes to the attention of the Board or Board-authorized committees.

2. Initial Review of Complaint / Verification. The complaint will be reviewed by the Board for a determination as to whether the complaint is sufficiently complete and whether further investigation or proceeding with the below notice and hearing procedures is appropriate based on that complaint.

C. Informal Resolution of Complaints / Reminder Letters

1. The Association’s Officers and Committee Chairs, with the approval of the Board (if the violation falls within the committee’s area of responsibility), have the authority to request an Owner, resident, guest or other person within the Courtyard neighborhood area boundaries to cease or correct a violation of the Governing Documents for which that person is directly or indirectly responsible. Such informal requests may be made before formal action is initiated by the Association under Section D below.

2. The Board may also send one or more “friendly reminder” letters or other communications to a non-compliant Owner or resident prior to more formal action being taken as specified below.

D. Notice of Violation.

1. Delivery of Notice. The Association may initiate formal enforcement action by sending a written “Notice of Violation” to the responsible Owner by first-class and certified mail (return-receipt requested) at the Owner’s address of record with the Association. If the violation is by a known tenant, the Notice of Violation may also be sent by first-class mail to the tenant at the Lot address. Notices sent per this Resolution are deemed effective as of the date of mailing (as evidenced by the postmark).

2. Content. The Notice of Violation shall contain the following minimum information:

(a) The Owner’s name;

(b) The alleged violation(s); and

(i) The action required to abate or correct the alleged violation; and

(ii) A request or demand that the alleged violation be abated or corrected within 14 days of the date of the notice or such other time period as may be deemed appropriate under the circumstances, in the discretion of the Board; and

(iii) A statement to the effect that the Owner must request in writing a hearing in front of the Board if the Owner wants to contest the citation or the imposition of sanctions (i.e., violation charges). The notice shall indicate that the Owner can be represented by his/her legal counsel at the requested hearing, but that if the Owner’s written request for a hearing is not submitted so that it is received by the Corporate Secretary within the stated deadline to cure the violation (or 14 days from the date of the notice, whichever is later), then the Owner will be deemed to have waived any right to a hearing and the Board may thereafter (without a hearing) impose sanctions or take other enforcement action as it deems appropriate if the violation was not corrected by the stated deadline.

(d) For violations that are not of a continuing nature:

(i) A request or demand to avoid or refrain from violating the same covenant or rule again in the future, and a warning that any future violation of that covenant or rule may result in enforcement action by the Association; and

(ii) [If the same covenant or rule violation previously occurred and was cited in a prior Notice of Violation within the previous 12 months, then include:] A statement to the effect that the Owner must request in writing a hearing in front of the Board if the Owner wants to contest the citation or the imposition of sanctions (i.e., violation charges). The notice shall indicate that the Owner can be represented by his/her legal counsel at the requested hearing, but that if the Owner’s written request for a hearing is not received by the Corporate Secretary within 14 days from the date of the notice, then the Owner will be deemed to have waived any right to a hearing and the Board may then impose sanctions or take other enforcement action as it deems appropriate.

3. Temporary Compliance / Repeated Violation. Notwithstanding anything in this Resolution to the contrary, if the same covenant or rule violation occurs again at any time within 12 months (from the date of a prior Notice of Violation) by the same Owner (or that Owner’s family members, tenants, guests and invitees), then the reoccurrence of the same violation within that 12-month period shall be deemed to be a failure to cure the previously cited violation, and that temporary compliance shall not be considered sufficient to trigger the need for the Association to provide yet another opportunity to cure the same violation before proceeding with enforcement action (including imposing sanctions). In these instances, a Notice of Violation may be combined with the Notice of Hearing referenced below.

E. Failure to Request a Hearing.

1. In the event the responsible Owner (“Respondent”) fails to timely request a hearing in response to the Notice of Violation, sanctions may be imposed against the Respondent by the Board without holding a hearing. However, even if the Respondent fails to timely request a hearing, the Board reserves the right to schedule a hearing on the matter if it deems it appropriate or prudent under the particular facts and circumstances.

2,Board Authorization to Managing Agent Providing Accounting and Financial Services. When the previously specified deadline has passed and no hearing is timely requested by the Owner then if the Board of Directors concludes that a previously cited violation has not been corrected within the deadline specified in the Notice of Violation, the Board hereby approves the assessment of $10/day violation charges (starting from the specified deadline) and authorizes and directs any managing agent providing accounting and financial services to the Association to post the charges to the Owner’s account and to promptly notify the Owner (by first-class mail and by certified mail, return-receipt requested) of the imposition of the violation charges.

F. Request for a Hearing. If Respondent desires a hearing before the Board, the Respondent must request a hearing in writing so that it is received by the Corporate Secretary within the time period stated in the Notice of Violation.

G. Notice of Hearing.

1. Delivery of Notice / Content. After receipt of a timely request for a hearing (or if the Board decides to schedule a hearing), the Corporate Secretary shall send the Respondent written notice of the hearing’s date, time and place by mailing it by first-class mail and by certified mail, return-receipt requested, to the Respondent’s address of record on file with the Association, at least 14 days prior to the hearing (or within such other time period as required by the Act, as may be subsequently amended). This Notice of Hearing shall state the alleged violation, the potential for enforcement action against the Owner (including, e.g., violation charges), and that the Respondent may be represented by his/her own legal counsel at the hearing.

2, Scheduling / Continuances. The hearing shall be scheduled at a reasonable time and place within the discretion of the Board. Requests for continuances must be received by the Board thorough its Corporate Secretary prior to the hearing date. A continuance request must describe the reasons for the request. If a continuance is granted, notice of the new date and time shall be mailed by first-class mail to the Owner at his or her address of record. However, it is ultimately the Owner’s responsibility to contact the Corporate Secretary prior to the originally scheduled hearing date to determine whether a continuance request was granted. Requests for a continuance of a Board hearing may be granted by the Association’s president if a decision is necessary prior to the next scheduled Board meeting.

H. Hearing Procedures.

1. If a hearing is scheduled as set forth above in Section G, a hearing shall be conducted by the Board to afford the Respondent an opportunity to present his or her position regarding the alleged violation(s) of the Governing Documents and whether sanctions should be imposed. However, if the Respondent fails to appear at the hearing at the scheduled time, the Board may deem the allegations to have been admitted. Any defects in the hearing notice shall be deemed waived by the Respondent if the Respondent appears at the hearing (either in person or by legal counsel) for any purpose other than to object to the validity of the notice.

2. The hearing shall be conducted in executive session, and witnesses and/or complaining parties present at the hearing will be allowed to make presentations to the Board during the hearing. The Board, or the presiding officer at the hearing, may determine the particular manner in which the hearing will be conducted, such as setting reasonable time limits on presentations, so long as the procedures are otherwise consistent with the provisions of this Resolution.

3. Right to Legal Counsel. Respondents have the right to have their own legal counsel represent them at the hearing, but attorney-representation is not required. Respondent’s failure to have an attorney at the scheduled hearing shall constitute a waiver of such right for purposes of the hearing.

4. Board’s Decision and Notice of Hearing Results. After all presentations have been made within the allotted time period, the Board shall request others who are present to leave the room (except for the Association’s legal counsel, if applicable) and, while still in executive session, discuss whether it believes that there is satisfactory evidence of the violation and whether sanctions should be imposed. After reconvening into open session, the Board shall decide the matter by majority vote of the members of the Board participating in the hearing; however, if additional time is needed to reach a decision, the Board may continue the hearing to an announced date and time for purposes of additional deliberation, with no further written notice required. Within seven (7) days after the hearing (including any continuances), the Corporate Secretary shall notify the Respondent of the Board’s decision by first-class mail and by certified mail, return receipt requested, to the Respondent’s address of record with the Association.

I. Sanctions.

1. Violation Charges. After the above procedures are followed, the Board may assess charges for violations of the Governing Documents. Any assessed violation charges shall be in amounts authorized by the Act and shall be treated as an assessment against the Owner for purposes of collection and filing liens. Currently, the Act provides that for each single violation, a charge of up to $50.00 can be assessed; or for a violation of a continuing nature, a charge of up to $10 per day can be assessed for up to 90 days or until the violation ceases, whichever occurs first.

J. Other Remedies. This Resolution shall not be interpreted to require following the above procedures prior to the Association taking enforcement action other than assessing violation charges and suspending use rights. The exercise of any one or more remedies shall not constitute an election of remedies. Remedies may be cumulative and also include, without limitation, the following:

1. Abatement and Removal of Violations on the Lot. Subject to Board approval, the Association or its agents have the authority under ARTICLE VII, Paragraph 2 of the Declaration to enter onto an Owner’s Lot for the purpose of carrying out neglected maintenance if the Lot’s Owner fails to carry out required maintenance as specified by written notice. Before taking this action, the Corporate Secretary shall send written notice of the maintenance actions that must be taken by the Owner, providing a deadline of at least 10 days in which to complete them. The notice will be sent by first-class and certified mail to the Owner’s last known address. All maintenance and repair costs incurred by the Association shall be specially assessed against the Owner;

2. Legal Action. The Board has the authority to file a lawsuit for monetary damages and/or injunctive relief, and to seek recovery of legal fees;

3. Resale Disclosure Packet. Violations of the Governing Documents may be disclosed in any Association-issued resale disclosure packet in accordance with the Act; and/or

4. Reporting to Government Officials. Violations implicating local, state or federal laws, ordinances or regulations may be reported to the appropriate government official, agency or department.

K. Records. The Corporate Secretary shall keep copies of all correspondence related to violations in the Owner’s file or in a separate file specifically for violations, as well as a record of each hearing (including proof of notice or indication that the Respondent appeared at the hearing). For the record of the hearing, the sample form attached as Exhibit A may be used by the applicable Board.

EXHIBIT A

RECORD OF HEARING

Hearing Date and Time: _________________

Owner(s): ________________________________________________________________________________

Lot Address: _________________________________________________________________________________

Mailing Address if other than Lot: ________________________________________________________________

Alleged Violation(s): ___________________________________________________________________________

____________________________________________________________________________________________

Provision(s) of Declaration/Rules Allegedly Violated: ____________________________________________________________________________________________

____________________________________________________________________________________________

Persons in Attendance: _________________________________________________________________________

____________________________________________________________________________________________

Date Notice given: ___________ (by first-class and certified mail, return-receipt requested)

Decision/Recommendation and Reasoning:

____________________________________________________________________________________________

Additional Comments:

____________________________________________________________________________________________