Compliance Issues Documented Via Photograph by PM or from an Owner

1. OHPOA COVENANTS PROCESS Compliance Issues Documented Via Photograph by PM or from an Owner Notification by Owner to Property Manager Property Manager On-Site Checks Friendly/Informal Notice Owner Contacted Immediately (24 hrs) by PM via Telephoneor Email (Letter if Necessary) – “Friendly Notice” with photo - 7 Days to Correct/Advise of Plans PM Follows on Violation In 7 Days Corrected or Plan in Place (PM Checks To Ensure Plan Executed) PM Logs Violation and ALL Correspondence & Phone Contact(s) With Owner on Compliance Tracking Form NO YES First Formal Notice Owner Contacted Immediately (24 hrs) by PM via Telephone, Email, or Letter – “First Formal Notice” of Covenants Process Beginning – Owner Given 10 days to Correct/Advise of Plans PM Closes Violation on Compliance Tracking Form YES PM Follows on Violation In 10 Days – Corrected or Plan in Place? NO Notice of Hearing PM Sends Owner “Notice of Hearing” Letter with new photo, $ Fine Amount and Day/Time/Location of Covenants Committee Hearing (at least 14 days out) Repeat, like, violations w/in 12 mos go directly to this step PM Forwards Compliance Tracking Form, Photo’s, and Any Other Pertinent Information to Covenants Committee 1 Week Prior to Regularly Scheduled Hearing Meeting Committee Action Required On All “Open” Items BOARD Appoints Committee; Authorizes PM to Handle All Violations; and Establishes Covenant Violation Fine Schedule YES Covenants Committee Covenants Committee Reviews ALL OPEN ITEMS ( with owner, if present) & CONFIRMS, MODIFIES, RESCINDS, or DELAYS the $ Fine Owners Property Manager Board of Directors Covenants Committee Responsibility:

2. OHPOA Covenants Roles & Responsibilities • Board of Directors • Appoints Covenants Committee members (maximum of five members) • Authorizes the property manager (PM) as its “delegate” to handle all violation and hearing notices • Authorizes the PM to issue all fines at the maximum daily amount of $50 per day up to a maximum of $1000 in the aggregate • Property Manager (PM) • Conducts routine/regular covenants compliance checks throughout the community & documents all covenants violations with a photograph – ideally time & date stamped • Responds to owner reported covenants violations – requests photo from owner or takes photo of reported violation. When a complaint is received PM opens a “violation” in the system to start the process • Communicates observed violations to owner via phoneor email, (or letter, if necessary) within 24 hours of observing the violation or having the violation reported by an owner. “Friendly” communication that includes photo (sends photo separately if owner contacted by phone) and asks that the violation be corrected/addressed within 7 days to avoid further formal action as outlined in the Master Declaration (MD). PM develops a “Friendly” violation letter in Tops as the first letter in the action table to go out. If communicating by email this letter can be attached to the email with a photo. There is no verifiable way to track that there was a phone conversation. • Logs violations on the Covenants Compliance Tracking Form (“Ride List”) – which tracks violations by type, owner, and property over-time. Log includes phone conversations with owner(s) germane to the covenant violation(s). Maintains the Tracking Form/“Ride List”. • Follows up on “Friendly” communication regarding the violation after 7 days via personal inspection. If corrected, file is closed on tracking form; if not corrected, takes another photo and sends “First Formal Notice” email or letter (with photo) to owner giving them 10 days to correct/address, and advising them if violation is not corrected/addressed within the 10 days, a fine could be levied. • Follows up on “First Formal Notice” after 10 days and takes another photo, if necessary. If corrected, file is closed on the tracking form; if not corrected, a “Notice of Hearing” Letter (certified or return receipt) is sent advising the property owner that the scheduled fine is being levied, beginning the day the Hearing Letter is sent, and requests the propertyowner to attend the next Covenants Committee Hearing Meeting (must be at least 14 days out) • Schedules a standing Covenants Committee meeting once per month (same week/day/time each month – i.e. third Thursday at 3:00 PM). • Provides Covenants Committee with updated Compliance Tracking Form (“Ride List”), pictures, and any other pertinent information one (1) week prior to each regularly scheduled meeting – highlighting open issues that require Committee action. Repeat, like, violations within 12 months go directly to a Hearing Letter. • Takes minutes of the meeting and includes all documentation required for the meeting along with a written statement of the results of the hearing and approved sanctions, if any are imposed (Legal Counsel is reviewing the form previously used to accomplish this). • Covenants Committee & Covenants “Fining” Committee • Covenants Committee made up of 5 property owners shall be the hearing tribunal of the Association relative to alleged infractions of the MD, Bylaws and the rules and regulations of the Association (but not the Planning Criteria). • At each Hearing Meeting, the Covenants Committee hears from the PM and the owner (if present) and makes a decision by majority vote to: 1) uphold the levied fine; 2) modify the levied fine based on the Committee’s evaluation of the information presented; and 3) rescind the levied fine if the violation has been corrected prior to the Hearing Meeting, or 3) delay action for a prescribed period of time due to extenuating circumstances that the Committee feels justifies an extension. • The Covenants Committee will also communicate (and update, if needed) the “rules & regulations” for the community & have them posted on the OHPOA website. • From time to time, the Covenants Committee will recommend to the Board that the PM communicate to all owners concerning broad-based covenants issues/concerns • The Covenants Committee will, if needed, recommend revisions to this process and the roles/responsibilities consistent with the MD.