Third Amended and Restated Governance Policies and Procedures

 10.   ENFORCEMENT.  DISPUTE RESOLUTION. 

10.1.          Reporting Violations.  Complaints regarding alleged violations of the Governing Documents may be reported by an Owner or resident within HOC, a group of Owners, the HOC’s management company, Board member(s), DRB Members, or committee member(s) by submission of a written complaint.

10.2.          Complaints.

10.2.1.    Complaints by Owners shall be in writing and submitted to the Board of Directors through the HOC’s manager.  The complaining Owner or resident shall have observed the alleged violation and shall identify the complainant (“Complainant”), the alleged violator (“Violator”), if known, and set forth a statement describing the alleged violation, referencing the specific provisions which are alleged to have been violated, when the violation was observed and any other pertinent information.  Non-written complaints or written complaints failing to include any information required by this provision may not be investigated or prosecuted at the discretion of the HOC.

10.2.2.    Complaints by a member of the Board of Directors, a committee member, or the manager, if any, may be made in writing or by any other means deemed appropriate by the Board if such violation was observed by the HOC’s Manager.

10.3.          Investigation.  Upon receipt of a complaint by the HOC, if additional information is needed, the complaint may be returned to the Complainant or may be investigated further by the HOC’s manager or a member of public safety staff.

10.4.          Initial Warning Letter.  If a violation is found to exist, a warning letter shall be sent to the Violator explaining the nature of the violation.  The Violator will have fifteen (15) days from the date of the letter to come into compliance.  With respect to matters which are an immediate nuisance or capable of immediate cure, the Violator may be given such shorter period of time to come into compliance and the HOC’s manager or public safety staff may reasonably determine.

 10.5.          Continued Violation After Initial Warning Letter.  If the alleged Violator does not come into compliance within the period of time stated in the first warning letter, this will be considered second violation for which a fine may be imposed following notice and opportunity for a hearing.  A second letter shall then be sent to the alleged Violator, providing notice and an opportunity for a hearing, and explaining if a violation is found to exist, a fine may be imposed pursuant to this Policy.  The letter shall further state that the alleged Violator is entitled to a hearing on the merits of the matter provided that such hearing is requested in writing within ten (10) days of the date on the second violation letter.  If the alleged Violator does not timely request a hearing, he or she shall be deemed to have waived any and all rights to a hearing with respect to the matter.

 10.6.          Continued Violation After Second Letter.  If the alleged Violator does not come into compliance within the later of thirty (30) days of the second letter, or, in the event the alleged Violator has requested a hearing after receipt of the second letter, thirty (30) days after that hearing if the merits of the matter are determined against the alleged Violator at the hearing, this will be considered a third violation for which a fine may be imposed.  A third letter shall then be sent to the alleged Violator, explaining that a violation has been found to exist, and that a fine is imposed pursuant to this Policy.  The alleged Violator shall not be entitled to advance notice of the fine or an opportunity for a hearing because, in connection with delivery of the second letter to the Violator, Violator shall have either not requested a hearing and therefore waived any right thereto, or shall have had a hearing at which the merits of the matter were determined against the alleged Violator.

 10.7.          Notice of Hearing.  If a hearing is requested by the alleged Violator, the Board, committee or other person conducting such hearing as may be determined in the sole discretion of the Board (the “Hearing Panel”), may serve a written notice of the hearing to all parties involved at least ten (10) days prior to the hearing date.  The Hearing Panel must be composed of “Impartial Decision Makers”.  An Impartial Decision Maker but must be a person who does not receive any greater benefit or detriment from the outcome of the hearing than any other member of the HOC.

 10.8.          Hearing.  At the beginning of each hearing, the presiding officer, shall introduce the case by describing the alleged violation and the procedure to be followed during the hearing.  Each party or designated representative, may, but is not required to, make an opening statement, present evidence and testimony, present witnesses, and. make a closing statement.  The presiding officer may also impose such other rules of conduct as may be appropriate under the given circumstances.  Neither the Complainant nor the alleged Violator are required to be in attendance at the hearing.  The Hearing Panel shall base its decision solely on the matters set forth in the Complaint, results of the investigation and such other credible evidence as may be presented at the hearing.  Unless otherwise determined by the Hearing Panel, all hearings shall be open to attendance by all Owners.  After all testimony and other evidence has been presented at a hearing, the Hearing Panel shall, within a reasonable time, not to exceed ten (10) days, render its written findings and decision, and impose a fine, if applicable.  A decision, either a finding for or against the Owner, shall be by a majority of the Hearing Panel members present at the hearing.  Failure to strictly follow the hearing procedures set forth above shall not constitute grounds for appeal of the hearing committee’s decision absent a showing of denial of due process.

10.9.          Failure to Timely Request Hearing.  If the alleged Violator fails to request a hearing within ten (10) days of any letter, or fails to appear at any hearing, the Hearing Panel may make a decision with respect to the alleged violation based on the Complaint, results of the investigation, and any other available information without the necessity of holding a formal hearing if a violation is found to exist, the alleged Violator may be assessed a fine pursuant to these policies and procedures.

 10.10.      Notification of Decision.  The decision of the Hearing Panel, shall be in writing and provided to the Violator and Complainant within ten (10) days of the hearing, or if no hearing is requested, within ten (10) days of the final decision.

 10.11.      Fine Schedule. 

10.11.1.                All fine assessments shall be due and payable immediately upon notice of such fine or assessment, as described above.  Notwithstanding anything to the contrary in these Policies, the HOC shall be entitled to take such action and perform such work as specified in these Rules or as otherwise permitted or required by law, the Declaration or the Bylaws, prior to, in the absence of, or during the pendency of any hearing.  If any fine assessment is not paid within ten days after the due date, a late charge in the amount of $100 shall be assessed to compensate the HOC for the expenses, costs and fees involved in handing such delinquency. Owners shall be personally, jointly, and severally liable for all fines/penalty assessments. 

(a)                First Violation Warning letter

(b)                Second Violation (see Fine Schedule)

(c)                Third Violation (see Fine Schedule)

(d)                Third and subsequent covenant violations may be turned over to the HOC’s attorney to take appropriate legal action.

10.11.2.The “Fine Schedule” for violations of the Governing Documents is set forth in the Aldasoro Ranch Fee Schedule, which fine schedule may be updated by the Board from time to time and posted on the HOC Website.  SEE LINK ABOVE.

10.11.3.All fine assessments shall be due and payable immediately upon notice of such fine or assessment, as described above.  Notwithstanding anything to the contrary in these Policies, the HOC shall be entitled to take such action and perform such work as specified in these Rules or as otherwise permitted or required by law, the Declaration or the Bylaws, prior to, in the absence of, or during the pendency of any hearing.  If any fine assessment is not paid within ten days after the due date, a late charge in the amount of $100 shall be assessed to compensate the HOC for the expenses, costs and fees involved in handing such delinquency. Owners shall be personally, jointly, and severally liable for all fines/penalty assessments. 

10.11.4.Each day that the violation remains uncured shall constitute a continuing violation and the fine shall be assessed for each day that the violation continues. All fines constitute an Assessment against the Owner and may be collected in accordance with the Declaration. 

10.11.5.In the event a fine assessment is not paid within ten days, the HOC may thereafter commence an action at law, or in equity, or both, against any Owner personally obligated to pay the same, for recovery of said assessment plus late charges, as aforesaid.  

10.12.      Waiver of Fines.  The Board may waive all, or any portion, of the fines if, in its sole discretion, such waiver is appropriate under the circumstances.  Additionally, the Board may condition waiver of the entire fine, or any portion thereof, upon the Violator coming into and staying in compliance with the Articles, Declaration, Bylaws or Rules.

10.13.      Other Enforcement Means.  This fine schedule, and enforcement process is adopted in addition to all other enforcement means which are available to the HOC through its Declaration, Bylaws, Articles of Incorporation and Colorado law.  The use of this process does not preclude the HOC from using any other enforcement means.

 10.14.      DRB Violations.  Notwithstanding any provisions contained in these Policies, in the event of any specific violations of DRB rules and regulations or design guidelines, then enforcement provisions of the design guidelines or DRB rules and regulations shall apply if they are inconsistent with the provisions of these Policies.