POLICY 12 – VIOLATIONS AND FINES I. Purpose Prompt correction of any violations of the Governing Documents by Owners or Occupants of The Village Grande at English Mill Homeowners Association (the “Association”) is critical to the health and welfare of the Community and to the preservation and/or enhancement of the property values of the homes. The Board takes its obligation to enforce the Association’s Governing Documents very seriously. The policies and practices outlined herein shall remain in effect until such time as they are modified by the Board pursuant to a duly adopted resolution. This policy is designed to provide a structured corrective action process to improve or prevent undesirable actions or inactions by Owners and Occupants within the Association. The Board reserves the right to combine or skip steps depending upon the facts of each situation and the nature of the offense. Some of the factors that will be considered are whether the offense is repeated despite coaching and counseling, previous issues, and the severity of the issue. Should there be a conflict between the terms of this policy or the procedure and the terms of the Governing Documents, the terms of the Governing Documents shall control. II. Scope - This policy applies to every Owner and Occupant within the Association. III. Roles and Duties A. Owner and/or Occupant – Correct the violation and pay any fines imposed. B. Site Manager – Primary contact with Owner and/or Occupant. Prepares and maintains appropriate documentation in the files. C. Board of Trustees – Authorizes imposition or waiver of any fines or other fees. D. Alternative Dispute Resolution Committee (“ADR Committee”) – The ADR Committee shall mediate any disputes to bring prompt resolution to the issue. IV. Procedure A. Verbal Warning– This creates an opportunity for the Board or Manager to make verbal contact with the offending Owner and/or Occupant, in a nonthreatening and constructive manner, to identify the specific violation, and outline steps the Policy 12 – Violations and Fines Adopted: December 3, 2013 Revised: November 9, 2021 Page 2 Owner and/or Occupant must take to cure the violation. The verbal contact will be documented and placed in the Owner’s/Occupant’s File. The Manager will follow-up the verbal communication in ten days. B. Written Warnings - While it is hoped that the issue identified in step one has been corrected, the Board recognizes that this may not always be the case. A written warning provides a more formal documentation of the situation and potential consequences. In some cases, the verbal warning may be skipped, and the issue initially addressed with a written warning. ACC violations will be addressed in writing via email or U.S. Mail. During this step, the Board will send a written “Notice of Concern” to the Owner and/or Occupant confirming the verbal warning, outlining the violation, and requesting corrective action within ten days of the date of the written notice or another timeframe as appropriate. The warning letter will be emailed and sent via U.S. Mail. In some circumstances, this step may be repeated before moving to a final warning. Copies of all documents will be placed in the Owner’s/Occupant’s File. C. Final Warning - A letter will be prepared outlining previous warnings and the failure to comply. The letter will inform the Owner and/or Occupant that they are afforded ten days from the date of the letter to remedy the violation by either: 1. Addressing/correcting the noted violation; 2. Requesting in writing, more time to address/correct the noted violation; 3. Submitting Form 13 notifying the Board that they wish to initiate Alternate Dispute Resolution to mediate or arbitrate the noted violation. D. Final Warning notices, including emails and letters are reviewed and approved by the Board of Trustees prior to being sent. V. Fining Process - If an Owner and/or Occupant fails to take corrective action as outlined above, a fine may be imposed in accordance with Article 9.05 of the Declaration and Article 12.02 of the By-Laws. All fines must be approved by the Board. VI. Appeal Process - The Owner or Occupant will have the right to request Alternative Dispute Resolution pursuant to Policy 13 – Alternative Dispute Resolution. Policy 12 – Violations and Fines Adopted: December 3, 2013 Revised: November 9, 2021 Page 3 VII. References A. Article 9.05 of Declaration of Covenants and Restrictions B. Articles VI and XII of the By-Laws C. Policy 13 – Alternative Dispute Resolution