Crossroads Ranch II Resolutions

R 2022-1 Delegation of Authority -- Committee Discretionary Spending

R 2022-2 Delegation of Authority -- Roads Committee Discretionary Spending

R 2022-3 Roads Committee - Creating the Position of Vice Chairman

R 2022-4 Business Use

R 2022-5 Architectural Control -- Cargo Containers

R 2022-6 Architectural Control -- Refunding ACC Fees

R 2022-7 Association Roads

R 2022-8 Nominating Committee for 2023 Election to the Board of Directors

R 2022-9 Legal Entity - Owner Election to the Board of Directors

R 2023-1 Architectural Control -- Steel Storage Containers

R 2023-2 Management of Horse Manure

R 2023-3 Roads Committee -- Creating the Position of Vice Chairman

R 2023-4 Architectural Control -- Outbuilding Approvals

These Resolutions can be found on HOAMCO's Caliber Portal. HOAMCO's Caliber Portal is property owners' official source for all Crossroads Ranch II information. It may take a few days before documents are posted.

The Resolutions and all relevant documentation will be found by going to the Caliber folders: Documents, Community Information, Governing Documents, Resolutions, Policies, Procedures.

Click here for HOAMCO's Caliber Portal login page: HOAMCO Login ...

If you are not registered at HOAMCO, property owners who know their account number can create a username and password to log into their account by registering at: Register HOAMCO. Your account number can be found on the bill for your annual association dues, which is either mailed or emailed to you. For step-by-step instructions on using the Caliber Portal, click here.

Resolution 2022-1

Resolution 2022-2

Resolution 2022-3

Resolution 2022-4

Resolution 2022-5

Resolution 2022-6

Resolution 2022-7

Resolution 2022-8

Resolution 2022-9

Resolution 2023-1

Resolution 2023-2

Resolution 2023-3

Resolution 2023-4

Crossroads Ranch Phase II Covenants, Conditions and Restrictions

Bylaws

Page 1 of 10 Pages

BYLAWS OF CROSSROADS RANCH PHASE II PROPERTY OWNERS ASSOCIATION, INC.

ARTICLE I

Recitals, Definitions

1. This corporation has been formed pursuant to the non-profit corporation

laws of the State of Arizona.

2. The specific and primary purposes of this corporation are as set forth in

Article IV of the Articles of Incorporation.

3. The corporation is hereby referred to as the “Association”.

4. The term “development” shall mean all of the real property within the

boundaries of that certain real estate development in Yavapai County, Arizona and

commonly known as Crossroads Ranch Phase II Property Owners Association, Inc.

5. The property which the Association shall initially own and control and/or

maintain is that described in the Declaration of Covenants, Conditions and Restrictions

(“Restrictions”) as recorded in Yavapai County, Arizona.

6. The term “parcel” shall mean any parcel designated on a duly recorded

survey map, or under separate ownership.

7. The term “owner” shall mean the person or entity owning or holding the

legal or equitable title to a parcel, including Declarant, which term shall include, but not

be limited to, purchasers under a purchase contract.

8. The term “Restrictions” shall mean the Declaration of Covenants,

Conditions and Restrictions of Crossroads Ranch Phase II, as recorded in the office of the

Recorder of Yavapai County, State of Arizona, in book 3231, page 854, as such

Restrictions may from time to time be amended, supplemented, or modified by or

incorporated by reference in subsequent Restrictions so recorded.

9. The term “common area” shall mean and include collectively all real

property and improvements located thereon conveyed to the Association, if any, or

otherwise designated or maintained by the Association.

10. The term “member” as used herein, shall mean a member of this

Association in good standing whose rights under these Bylaws are not suspended.

CRRII BYLAWS Page 2 of 10 Pages

11. The term “Board” shall mean the duly elected and acting Board of

Directors of the Association.

12. The terms “person” or “entity” shall mean and include any individual,

corporation, partnership, association or other legal entity recognized by the laws of the

State of Arizona.

ARTICLE II

Principal Offices

The principal offices of the Association shall be located in such place in Yavapai

County, Arizona, as the Board of Directors shall from time to time designate by

resolution.

ARTICLE III

Membership

1. Each owner of a parcel within the development shall be a member of the

association.

2. Each owner who is a member shall remain a member until he no longer

qualifies as such under Article I above.

3. The Board may provide for the issuance of certificates evidencing

membership in the Association which shall be in such form as determined by the Board.

The name and address of each member shall be entered into a membership register

maintained by the Secretary.

4. If more than one person owns a parcel, all of said persons shall be deemed

one member, with only one person being recognized as a voting member.

5. The Secretary shall have the right to demand proof of parcel ownership

prior to accepting a person or entity as a member.

CRRII BYLAWS Page 3 of 10 Pages

ARTICLE IV

Membership Voting

1. The Association shall have two classes of voting membership, with each

member having one vote for each acre owned, except Declarant who shall be entitled to

three (3) votes for each acre owned.

2. At any meeting of the membership called and held pursuant to the

provisions of these Bylaws, each member shall be entitled to one (1) vote for each acre

owned by such member, except Declarant who shall be entitled to 3 votes for each acre

owned.

3. Any member may attend and vote at meetings or cast his/her ballot as the

case may be, in person or by proxy holder duly appointed by a written proxy signed by

the member and filed with the Secretary. Any proxy shall be for a term not to exceed 11

months unless otherwise expressly provided therein, and may be revoked at any time by

written notice delivered to the Secretary. A proxy shall be deemed revoked when the

Secretary shall receive actual notice of the death or judicially declared incompetence of

such a member upon termination of such member’s status as an owner.

4. When more than one person holds an interest in any parcel, only one (1)

person shall be the member. Such persons holding an interest shall designate the person

to be the member and give written notice thereof to the Association. The vote for such

parcel may be exercised as the owners among themselves determine, but in no event shall

more than one vote be cast with respect to any parcel. The votes for such parcel must be

cast as a unit, and fractional votes shall not be allowed. In the event the joint owners are

unable to agree among themselves as to how their vote or votes shall be cast, they shall

lose their right to vote on the matter in question. If any owner or owners cast a vote

representing a certain parcel, it will thereafter be conclusively presumed for all purposes

that he or they were acting with the authority and consent of all other owners of the same

parcel. In the event more than one vote is cast for a particular parcel, none of said votes

shall be counted and said votes shall be deemed void.

5. Any matter or issue requiring the vote of the members may be submitted

for vote by written ballot, without a meeting of the members. The determination to

conduct a vote in this fashion shall be made by a majority of the Board or by members

having one-third of the total votes of the membership signing a written request and

delivering same to the Secretary. In the event of such a vote, the Board shall give written

notice thereof specifying the time place where the ballots are to be cast and the question

or questions to be voted upon. Such notice shall then be mailed to the members at least

10 days prior to the date that the ballots should be received and counted and shall include

the form of ballot to be used. A quorum shall be deemed to have been present for

purposes of the vote if members having two-thirds of the total votes cast ballots in any

such election. Upon tabulation of the ballots, the Board shall notify the members of the

outcome of the election. If insufficient votes to constitute a quorum are cast, the Board

shall notify the members.

CRRII BYLAWS Page 4 of 10 Pages

ARTICLE V

Membership Meetings

1. There shall be an annual meeting of the members on the first Monday of

September of each year at Prescott, Arizona, or such other date or time as voted upon by

the membership. The meeting of the members shall be at the offices of the Association,

at the development, or such other reasonable place and time within the County and time

not more than thirty (30) days before or after such date, as may be designated by notice of

the Board of the meeting.

2. Special meetings of the members may be called at any time to consider

any reasonable business of the Association. Said meetings shall be called by notice to the

membership signed by a majority of the Board or by members having one-third (1/3) of

the total votes of the membership, and mailed to members not less than ten (10) days or

not more than sixty (60) days prior to the date fixed for said meeting. Said notice may be

included in a newspaper or circular, shall specify the date, time and place for a meeting

and the matters to be considered thereat. The place for such special meetings shall be at

the offices of the Association at the development or at such other reasonable place with

the County as designated by the persons calling the same.

3. The presence at any meeting, in person or by proxy, of members having at

least 66 2/3 ‘s of the votes shall constitute a quorum. If a quorum is not met at a meeting,

such meeting shall be adjourned to a time not less than 48 hours, nor more than sixty (60)

days after the time the original meeting was called. At an adjourned meeting, the quorum

requirements shall be one-half of that required for the initially called meeting.

4. Unless otherwise provided in these Bylaws or in the Restrictions, a vote of

the majority of the votes cast shall prevail with respect to any issue presented to a

membership.

5. Any vote taken for the election of Directors shall be by secret written

ballot in form prescribed by the Board. All other issues presented at any meeting for a

vote by the membership, shall be voted upon either by oral vote or by raise of hands or by

secret written ballot at the election of the Chairman of the meeting, unless 25% of the

votes present at such meeting request that the vote be by secret ballot, in which event the

vote shall be by secret ballot.

CRRII BYLAWS Page 5 of 10 Pages

ARTICLE VI

Membership Rights

Subject to the provisions hereof, the provisions of the Restrictions, the members

have the following rights:

1. Each member shall be entitled to the use and enjoyment of any Common

Area, if any, within the Development, which is for use by its members.

2. Each member shall have the right to designate members of his or her

family who reside with the member who may use and enjoy any Common Area, if any

within the Development, which is for use by members.

3. The invitees and guests of a member shall have the right to use and enjoy

any Common Area, if any, within the Development, which is for use by members, to the

extent any Common Area, if any, permits, as determined by the Board.

4. The right to use and enjoyment hereunder, shall at all times be subject to

all existing published rules and regulations promulgated by the Board, and shall at all

times be subject to the Restrictions. In the event of a conflict, the Restrictions shall

prevail. The Board shall have the right to suspend the use and enjoyment of any

Common Area, if any, for the failure of a person to comply with such rules and

regulations and Restrictions, provided, however, that such suspensions shall only be

imposed after such person has been notified in writing and has been offered a reasonable

opportunity to be heard.

ARTICLE VII

Board of Directors

1. The corporate powers of the Association are vested in and shall be

exercised by the Board consisting of not less than three (3) or more than five (5) owners

as may be determined from time to time by a vote of the membership.

2. The Board of Directors shall select a Nominating Committee consisting of

at least two (2) members, which members may also be Board members. The purpose of

said Nominating Committee shall be to name persons to fill vacancies on the Board

caused by the expiration of a Board member’s term. The Nominating Committee shall

prepare a slate of eligible persons, which slate shall be presented to the membership

which shall vote for the appropriate number of Directors necessary to fill the vacancies

on the Board. No other Board nominations shall be voted upon except from the slate

prepared by the Nominating Committee. The Board of Directors shall set the term of

office and fill all vacancies which may arise on the Nominating Committee.

CRRII BYLAWS Page 6 of 10 Pages

3. At each annual meeting of the members, the members shall elect the

Board for the forthcoming year. Each member may cumulate his votes and give one or

more candidates for Director a number of votes equal to the number which such member

has hereunder multiplied by the number of Directors to be elected. The candidates

receiving the highest number of votes up to the number of directors to be elected shall be

elected.

4. Directors shall serve a term of one (1) year on until their respective

successors are elected, or until their the death, resignation or removal, whichever is the

earlier. Vacancies on the Board shall be filled by a majority vote of the remaining

Directors though less than a quorum, and each Director so elected shall hold office until

his successor is elected by the members.

5. The membership has the power to remove the entire Board or an

individual member of the Board at any time provided, however, that an individual

Director shall not be removed during his term if the number of votes cast against his

removal exceed twenty percent (20%) of the total number of votes of the ownership.

ARTICLE VIII

Board Meetings

1. A regular meeting of the Board shall be held each year following the

annual meeting of the membership.

2. Special meetings of the Board shall be held when called by any officer of

the Association, or by any two (2) Directors, after not less than three (3) days prior

written notice, unless such notice is waived in writing by all Directors.

3. The Board may act without a meeting if all of the Board shall individually

or collectively consent in writing to such action. Such consent shall be filed with the

minutes of the Board.

ARTICLE IX

Duties and Powers of the Board

1. To exercise all power vested in the Board under the Articles of

Incorporation, these Bylaws, the Restrictions, and under the laws of the State of Arizona.

2. To appoint and remove all officers of the Association sees fit.

CRRII BYLAWS Page 7 of 10 Pages

3. To appoint such agents and employ such employees, including attorneys

and accountants, as it sees fit to assist in the operations of the Association, and to fix their

duties and establish compensation.

4. Subject to the provisions of the Restrictions, to adopt and establish rules

and regulations governing the use of any Common Area, and to take such steps as it may

deem necessary for the enforcement of such rules and regulations.

5. To enforce all applicable provisions of the Restrictions, these Bylaws and

all other regulations relating to the control, management and use of any Common Area

within the Development.

6. Contract and pay premiums for casualty, liability and other insurance and

bonds, including indemnity bonds, which may be required from time to time by the

Association.

7. Contract for any and pay for maintenance, landscaping, utilities, materials,

supplies, labor and services that may be required from time to time in relation to

Association property, and any Common Area within the Development.

8. Pay all taxes, special assessments and other assessments and charges

which are or would become a lien on Association owned or maintained property.

9. To contract for and pay for construction or reconstruction of Association

property damaged or destroyed.

10. If and when the Board deems it appropriate to delegate its duties and

powers hereunder to the officers of the Association.

11. To establish, in accordance with the Restrictions, and thereafter levy

assessments on the members of the Association and to collect same all in accordance with

the Restrictions; provided no annual assessment shall exceed that provided for in the

Restrictions and no special assessment may be set without a vote of the Association as

provided in the Restrictions. The Board shall also have the power to collect reasonable

use charges for the use of any or all of the Common Area.

12. To appoint a Nominating Committee for the nomination of persons to be

elected to the Board, and prescribe rules under which said Nominating Committee is to

act.

13. To appoint such other committees as it deems necessary from time to time

in connection with the affairs of the Association.

CRRII BYLAWS Page 8 of 10 Pages

ARTICLE X

Officers

1. The officers of the Association shall be members of the Association and

shall consist of a President, Vice President, Secretary and Treasurer. If a member is a

partnership, corporation, or other legal entity under Arizona law, then the member’s

employees shall qualify to be officers. The Association may also have, at the discretion

of the Board, one or more assistant secretaries, one or more assistant treasurers, and such

other officers as may be appointed in accordance with the provisions of paragraph 3

following. One person may hold two or more offices, except that the offices of President

and Secretary shall not be held by the same person.

2. The officers of the Association, except such officers as may be appointed

in accordance with the provisions of paragraphs 3 and 5 following, shall be chosen

annually by the Board and each shall hold his office until he shall resign or be removed

or otherwise disqualified to serve, or his successor is elected and qualified.

3. The Board may appoint, and may empower the President to appoint, such

other officers as the affairs of the Association may require, each of whom shall hold

office for such period, have such authority and perform such duties as are provided for in

these Bylaws or as the Board may from time to time determine.

4. Any officer may be removed, either with or without cause, by the Board or

by any officer upon whom such power of removal may be conferred by the Board,

provided, however, that no such officer shall remove an officer chosen by the Board.

Any officer may resign at any time by giving written notice to the Board or to the

President or to the Secretary. Any such resignation shall take effect at the date of the

receipt of such notice or at any later times specified therein; and unless otherwise

specified therein, the acceptance of such resignation shall not be necessary to make it

effective.

5. A vacancy in any office because of death, resignation, removal,

disqualification or any other cause shall be filled in the manner prescribed in these

Bylaws for regular appointments to such office.

6. The President shall be elected by the Board from among the Directors.

He/she shall be the chief executive officer of the Association and shall, subject to the

control of the Board, have general supervision, direction and control of the affairs and

officers of the Association. He/she shall preside at all meetings of management and shall

have the powers usually vested in the office of President of a corporation, together with

such other powers and duties as may be prescribed by the Board or these Bylaws.

7. The Vice President shall be elected by the Board from among the

Directors. In the absence of the President, the Vice President shall perform all the duties

of the President, and when so acting shall have all the powers of, and be subject to all the

CRRII BYLAWS Page 9 of 10 Pages

restrictions upon the President. He/she shall have such other powers and perform such

other duties as from time to time may be prescribed by the Board or these Bylaws.

8. The Secretary need not be a Director, but shall be elected by the Board of

Directors. He/she shall keep or cause to be kept, at the principal office or such other

place as the Board may order, a book of minutes of all meetings of Directors and

members, with the time and place of holding same, whether regular or special, and, if

special, how authorized, the notice thereof given, the names of those present at Directors’

meetings, the number of members present in person or by proxy at members’ meetings,

and the proceedings thereof. The Secretary shall keep, or cause to be kept, appropriate

current records showing the members of the Association, together with their addresses.

He/she shall give, or cause to be given, notice of all meetings of the Board required by

the Bylaws or by law to be so given, and he/she shall keep the seal of the Association in

safe custody, and shall have such other powers and perform such other duties as may be

prescribed by the Board or these Bylaws.

9. The Treasurer need not be a Director, but shall be elected by the Board of

Directors. He/she shall keep and maintain, or cause to be kept and maintained, adequate

and correct accounts of the properties and business transactions of the Association,

including accounts of its assets, liabilities, receipts and disbursements. The books of

account shall be at all reasonable times to be open to inspection by any Director or

member. The Treasurer shall deposit all monies and other valuable in the name and to

the credit of the Association with such depositories as may be designated by the Board.

He/she shall disburse the funds of the Association as may be ordered by the Board, shall

render to the President and Directors, whenever they request it, an accounting of all of

his/her transactions as Treasurer and of the financial condition of the Association and

shall have such other powers and perform such other duties as may be prescribed by the

Board or these Bylaws.

ARTICLE XI

Miscellaneous

1. All books, records and papers of the Association shall at all times during

reasonable business hours be subject to the inspection of any member at the offices of the

Association.

2. The Board may, from time to time, employ the services of a manager to

manage the affairs of the Association, and to the extent not inconsistent with the laws of

the State of Arizona, and upon such conditions as are otherwise deemed advisable by the

Board, the Board may delegate to the manager any of its powers under these Bylaws and

the Restrictions.

CRRII BYLAWS Page 10 of 10 Pages

3. These Bylaws may only be amended or repealed, and new Bylaws adopted

by the members by a three-fourths vote of the total votes cast by the membership,

provided, however that Article VII shall not be amended or repealed without the

affirmative vote of members having at least two-thirds (2/3) of the total votes of the

membership approving such amendment or repeal, and further provided that no such

amendment shall be inconsistent with the Restrictions as same may be modified or

amended from time to time.

4. Any notice or other document permitted or required to be delivered as

provided herein may be delivered either personally or by mail. If delivery is made by

mail, it shall be deemed to have been delivered twenty-four (24) hours after a copy of

same has been deposited in the United States Mail, postage prepaid, to the last known

address of the addressee.

DATED this 29th day of August 1996

s/Betty J. Culton

Secretary

AMENDMENTS

AMENDMENT

- DATE TOPIC T SECTION

(Article-Paragraph) 02/15/2010 Term Directors Term

Length (VII-4)

| 12/31/2008 Quorum Membership Voting

(IV-5)

12/31/2008 Quorum Membership

Meetings (V-3)

12/31/2008 Quorum

Miscellaneous (XI-3)

"Directors shall serve a term of two (2) years or until their respective successors are elected, or until their death, resignation or removal, whichever is the earlier."...

"A quorum shall be deemed to have been present for purposes of the vote if members having 51% of the total votes cast ballots in any such election." ... “The presence at any meeting, in person or by proxy, of members having at least 51% of the votes shall constitute a quorum."...

"These Bylaws may only be amended or repealed, and new Bylaws adopted by the members by a three-fourths vote of the total votes cast by the membership provided, however that Article Il], Paragraphs 1,2 and 4 or Article VII shall not be amended or repealed without the affirmative vote of members having at least 51% of the total votes of the membership approving such amendment or repeal, and further provided that no such amendment shall be inconsistent with the Restrictions as same may be modified or amended from time to time."

"There shall be an annual meeting of the members in March of each year at Prescott, Arizona, or such other date or time as voted upon by the membership."

7/21/2000

Annual Membership Meeting Meetings (V-1) Date

Procedures

Enforcement Procedure and Schedule of Penalties

Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

This Enforcement Procedure applies to all Crossroads Ranch Phase II Property Owners Association, Inc. (“Association”) community documents, including the Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, inclusive of all current and future amendments, and to all associated Policies, Procedures and Resolutions adopted thereto (collectively referred to herein as the “Community Documents”).

The purposes of this Enforcement Procedure is to guard against the collective diminution of property value where violations of Community Documents which create certain community expectations go unchecked and to protect and preserve to all members the quiet peaceful enjoyment of their property consistent with the theme of the Association as an upscale community where structures, landscaping and member conduct are in harmony with each other and with the surrounding environment and terrain and do not adversely impact the outlook or atmosphere of adjacent or neighboring properties or the character of the community as a whole and to maintain, vindicate and preserve the Association’s Board of Director’s (“Board’s) authority to enforce the Community Documents.

In furtherance of these purposes, where the Board has determined that a member has violated one or more provisions of the Community Documents, the Board and/or its designated representatives (hereinafter collectively, the “Board”) shall apply the following procedure:

1. Notice of Violation (“Notice”):

a. Issue or cause to be issued a Notice to the offending member[s], either personally delivered or sent by United States mail, postage prepaid, return receipt requested, addressed to the member at the address placed on file by the member with the Association. A separate Notice should be issued for each distinct violation.

b. Each Notice shall contain at least the following information:

i. A statement that the Board has determined that the member is in violation of the Community Documents, with specific reference to the provision that has allegedly been violated. To the extent feasible, the specific implicated provision itself should be recited within the Notice;

ii. The date of the violation or the date the violation was observed;

Page 1 of 6

Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

iii. The first and last name of the person or persons who observed the violation;

iv. The process the member must follow to contest the Notice; and

v. That if the violation remains uncorrected and fines unpaid, the Association may bring a lawsuit seeking a personal judgment against the member to require the performance of the referenced action, for payment of all fines, for the Association’s attorney fees and costs, and for any other relief to which the Association may be entitled.

2. Process to contest the Notice: Where applicable, the following statements must be included in the Notice:

a. If a monetary penalty has been immediately assigned, it must be described as “provisional” and that it will not be assessed against the member’s account until after the member has had an opportunity to be heard;

b. A description of the action the member is required to take, such as remove an unapproved structure, repaint with an approved color, submit plans for approval, etc., in order to correct the violation and the time within which such action must be taken to avoid imposition of or additional penalties. Absent special circumstances, the member should be granted thirty-days to comply/correct the violation. Where special circumstances exist to increase or decrease the time allowed for correction, those special circumstances should be recited in the Notice;

c. That the member may provide the Association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the Notice and that within this response the member may:

i. Provide whatever information the member deems appropriate under the circumstances regarding the alleged violation;

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Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

ii. Request a hearing before the Board in which the member may appear in person or through a representative and present pertinent information in support of the member’s position;

iii. Request that any hearing be conducted at an open meeting that may be attended by any other Association member;

d. That at any time before or after completion of the exchange of information as described, the member may petition for a hearing pursuant to Ariz. Rev. Stat. § 32-2199.01 if the dispute is within the jurisdiction of the state real estate department as prescribed in Ariz. Rev. Stat. § 32-2199.01.

3. Association Reply to Member Response: If the member provides a written response within the twenty-one-day response period, the Board shall cause a Reply to be issued within ten business days, either personally delivered or sent by United States mail, postage prepaid, return receipt requested, addressed to the member at the address placed on file by the member with the Association. The Reply must include the following information, as applicable:

a. If the member has contested the Notice, state the Board’s final determination, including, without limitation, whether based on the information provided in the member’s response the Board has decided to affirm or vacate its initial determination, grant a variance, or stay enforcement pending further investigation;

b. If the member requested a hearing, whether closed session or open meeting, the date, time and place that the hearing will be held. If it is not feasible to determine a date, time and place within the ten business-day reply period, the reply must include a commitment to provide such information when it is available and that Board’s determination will not be final until after such hearing has taken place.

4. No Member Response: If the member does not provide a response as contemplated in Section 2(c), then the Association shall deem its initial determination final as detailed in the Notice of Violation, apply any provisional penalties against the member and take whatever additional action the Association deems necessary or appropriate under the circumstances that are consistent with Arizona law and this Enforcement Procedure.

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Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

Schedule of Monetary Penalties

Pursuant to Ariz. Stat. § 33-1803, for violation of provisions of the Community Documents the Board may impose reasonable monetary penalties according to the schedule below. Penalties thus imposed are intended not to compensate the Association or its members for actual damages or loss, which although real and material are difficult to ascertain and not easily susceptible to proof with the degree of certainty otherwise required by law. Rather, the imposition of penalties is intended to encourage compliance through voluntary cooperation and to deter intentional, deliberate, and knowing disregard for the restrictions and obligations contained within the Community Documents, which if left unchecked would serve to deprive the membership as a whole of the nature, character and atmosphere of the Association community to which they are entitled.

The following schedule is advisory only. The Board is not required to impose a monetary penalty for every violation and the Board may vary the amount of the penalty based on particularized circumstances where reasonably justified to achieve the purposes, goals and intent of this Enforcement Procedure:

1. In no event will a penalty be effective or assessed against a member account until after the member has had an opportunity to be heard as contemplated in this Enforcement Procedure;

2. Absent special circumstances, a monetary penalty ordinarily will not be imposed until after the member has been given an opportunity to voluntarily correct the condition or behavior that occasioned the Notice; provided, however, an immediate imposition of a penalty is appropriate where the violation surrounding circumstances demonstrate the member’s disregard or disdain for his/her obligations under the Community Documents, such as engaging in repeat or multiple violations; knowingly and willfully violating a rule or restriction; being uncooperative or deceitful during a Board’s inquiry into a possible violation; engaging in discourteous behavior toward members of the Board as they attempt to fulfill their obligations to enforce Community Documents, or other articulable circumstances indicating that immediate imposition of a penalty is warranted. Where the Board determines that immediate imposition of a penalty is warranted, the basis for that determination shall be included in the Notice;

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Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

3. Penalty progression: The purpose of a progressive penalty is to encourage prompt attention to and correction of a violative condition by progressively increasing the severity of the penalty the longer it remains uncorrected.

a. The initial penalty is $250;

b. If the violation is not corrected within thirty-days, a second penalty of $750 may be imposed;

c. If the violation remains uncorrected thirty-days after imposition of the second penalty, a third penalty of $500 may be imposed, with an additional $500 penalty imposed for each thirty-days thereafter in which the violation remains uncorrected, up to a cumulative maximum of $5,000 per year;

d. Where a progressive penalty has been imposed, a statement describing the progressive nature of the penalty, the interval and associated amounts, and that it will continue automatically and without further notice must be included in the Notice reflecting the penalty;

e. Where the Board imposes a penalty in an amount greater than as set forth in this schedule the basis for that determination shall be included in the Notice;

f. Where the Board initially does not impose a monetary penalty but later determines that the member’s post-Notice conduct reflects an unwillingness to cooperate or correct the violation, the Board may issue a subsequent notice advising the member of the imposition of a monetary penalty and its amount; provided, however, that such post Notice imposition of a penalty may not be retroactive and the member must be provided an opportunity to contest the post-Notice imposition of a penalty as provided in this procedure;

4. Legal Action: At any time after issuing a Notice as contemplated by this Enforcement Procedure, the Association may pursue a legal action to enforce the Community Documents. Where the Association substantially prevails in its legal claim to enforce the Community Documents, whether by capitulation, summary judgment, trial or settlement, the Association shall be entitled to reimbursement from the member of the Association’s attorney

Page 5 of 6

Crossroads Ranch Phase II Enforcement Procedure And Schedule of Penalties

October 2022

fees and costs incurred in pursuing the claim as an element of damages in the litigation.

______________________ Anita MacFadden

Director-President

_____________________ Sandy Stamper

Director-Treasurer

_____________________ Stacy Lee

Director-Vice President

_______________________ Edward Risko

Director

Page 6 of 6

Policies

• Assessment Collection Policy
• Nuisance Policy
• Record Retention Statement of Policy and Schedule
• Mailbox Policies
  

Assessment Collection Policy

Nuisance Policy

NUISANCE DEFINITION & POLICY

Adopted 7/18/2008

CC&R’s (section 6, paragraph Q)

Nuisances. No Parcel Owner shall place or maintain any animate or inaminate object upon any Parcel so as to create a nuisance to the Owners of the neighboring Parcels. No vehicles or motors of any type without mufflers shall be allowed. No all terrain type

vehicles or off road motorcycles shall be operated, except within the confine of the Owner’s individual Parcel. No firearms may be discharged in any area of the Property.

LEGAL DEFINITION OF NUISANCE

Under the common law, persons in possession of real property (either land owners or tenants) are entitled to the quiet enjoyment of their lands. If a neighbor interferes with that quiet enjoyment, either by creating smells, sounds, pollution or any other hazard that extends past the boundaries of the property, the affected party may make a claim in nuisance.

To be a nuisance, the level of interference must rise above the merely aesthetic. For example, if you neighbor paints their house a color you don’t like but has been approved by the ACC, it may offend you, but it does not rise to the level of nuisance. In most cases, normal uses of a property that can constitute quiet enjoyment cannot be restrained in nuisance either. For example, the sound of a crying baby may be annoying, but it is an expected part of quiet enjoyment of property and does not constitute a nuisance.

NUISANCE DETERMINATION POLICY

For a nuisance to be identified and determined a nuisance in which the Board can ultimately fine the property owner if not resolved, the following steps should take place.

1. The Property Owner that believes that their right of quiet enjoyment of their property has been violated and they have not been able to resolve the issue with the offending party in a manner that they are comfortable with, they must file a written complaint with the Board of Directors.

2. The offended Property Owner should note dates, times and durations that the offence is occurring and provide that information to the Board of Directors. Pictures and additional witnesses could also help.

3. The Board of Directors will contact the property owners of the property that the offending behavior is happening on and asked the activity be stopped.

4. If the property owner where the offending behavior is happening contests the violation believing that the activity is normal use, then the Board of Directors will make a ruling as to whether the activity is normal or nuisance.

5. If the Board of Directors defines the activity as nuisance and the activity is not curtailed to a normal acceptable activity, then the Board of Directors can incorporate fines to bring into compliance with the CC&R’s.

Record Retention Statement of Policy and Schedule

Mailbox Policies