FINES AND PENALTIES

Pursuant to the authority granted by Arizona Revised Statutes permitting Homeowners Associations (HOA) to impose reasonable monetary penalties upon members for violations of the declaration, by-laws and rules of the Association; the Board of Directors of the Village at Apache Wells HOA has adopted the following procedures and schedule of fines:

1. The Property Manager, the Board or any member thereof, shall notify the homeowner in writing of an alleged violation, providing the homeowner with the option of appearing before the Board or responding to the Board in writing.

2. In the event the homeowner elects to appear before the Board, the homeowner shall arrange to have the hearing within 5 days from the date the homeowner received the notice of the alleged violation.

3. In the event the homeowner elects to respond to the notice in writing, the homeowner’s response must be received by the Board within 5 days from the date the homeowner received the notice of the alleged violation.

4. In the event the homeowner fails to request a hearing before the Board or fails to respond in writing, the alleged violation shall be considered to be a continuing violation.

5. In the event the homeowner appears before the Board or responds in writing, but such action fails to produce a satisfactory conclusion to the alleged violation--after either event, the alleged violation shall be considered to be a continuing violation.

6. For any continuing violation, the Board may impose a fine upon the homeowner in an amount not to exceed $100.00 per day until the violation has been corrected to the Board’s satisfaction.

7. The Board shall notify the homeowner, in writing, of its decision. In the event the Board imposes a fine upon the homeowner, the notification shall include the amount of the fine.
8. The Board may also, at its discretion, suspend the homeowner’s voting rights, use of facilities, and any other remedies available to the Association.
9. In accordance with A.R.S. §§ 33-1242 or 33-1803, in the event the infraction of the Governing Documents pertains to the condition of the owner's property, the owner may provide the Association with a written response to the notice of violation by sending the response via certified mail to the Association in accordance with the relevant statutes. Upon receipt of such a response, the Association shall thereafter refrain from taking any enforcement action until such time as the Association secures an emergency order from a court of competent jurisdiction and/or provides the owner with the following information:
a. The provision(s) of the Governing Documents that has allegedly been violated;

b. The date of the violation or the date the violation was observed; and

c. The first and last name of the person or persons who observed the violation.
If the Association has provided the foregoing information to an owner in a notice of violation prior to receiving the written response from the owner, then the Association will be deemed to have complied with A.R.S. §§ 33-1242 or 33-1803, and the Association may proceed immediately with enforcement action.

January 16, 2007