Whereas the North Carolina Planned Community Act assigns the Board the authority to impose monetary fines or take legal action for violations of the Declaration of Covenants and Restrictions; Declaration of Rights, Restrictions, Affirmative Obligations and Conditions; Rules and Regulations and the Architectural Guidelines,

       Whereas the Board of Directors recognizes the need to establish such penalties and a process for administering such:


Definition: Penalty is defined as monetary fine based on violation.

When a violation is determined, the following steps shall be taken:

Step One

A letter will be issued to the owner noting the violation with a request that it be brought into compliance within 15 days.  A written response to Managementís office from an owner expressing a good faith effort to resolve will result in a reasonable extension.  It is noted that the owner has the right, prior to being assessed a penalty, to a hearing with the Board of Directors to be heard and to present evidence.  Request for the hearing must be submitted in writing to the office of the HOA within the 15 day time period or will be considered waiver of such right.

Step Two

Upon expiration of 15 days and the violation remains, the penalty will be assessed and statement that compliance must occur in fifteen (15) days to avoid further action.

Step Three

Upon expiration of the second 15 day period and the violation remains, the penalty will be assessed again followed by notification of such by a certified letter that the penalty will continue until the violation is removed.  Statement is made that Association will continue action via applying penalty and, where appropriate, through court action or direct action by HOA to correct violation.

        It is noted that anywhere during the process owners are strongly encouraged to contact the Association to discuss and/or arrange for compliance.

Approved by the Board of Directors: November 8, 2000