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HOA Assessments, Fees & Fines: Marchini Meadows 2016

The following is the delinquency policy, fine policy, and schedules for fees and fines, as provided for in the Declaration of Covenants, Conditions and Restrictions of Marchini Meadows Homeowners Association and RCW 64.38.020.

Assessment Amount Per Home (2019) $ 370.00 Annual
Due Date (2019)   01/01/2019 Annual
Late Charge $ 50.00 Monthly
Annual Assessment Delinquent Interest   12% per annum
Special Assessment Late Fee $  50.00 Monthly
Special Assessment Delinquent Interest   12% per annum
Collection Service Fee $ 25.00 per month
Returned Check Fee (each check) $ 25.00  
Lien Filing Fee $ 330.00  
Legal Handling Fee $ 50.00  
Lien Release Fee $ 100.00  
Escrow Transfer Fee $ 75.00  

 

MARCHINI MEADOWS HOMEOWNERS ASSOCIATION
UNANIMOUS CONSENT IN LIEU OF MEETING OF THE BOARD OF DIRECTORS
ESTABLISHING ASSOCIATION FINE/COLLECTION POLICY

Pursuant to the Washington Nonprofit Corporation Act, the undersigned, being all of the directors of Marchini Meadows Homeowners Association, a Washington nonprofit corporation (the "Association"), by this instrument in lieu of a meeting of the Board of Directors of the Association, consent to the adoption of the following resolutions:

WHEREAS, the Board of Directors of the Association is charged with the responsibility of collecting assessments for common expenses from Owners, and enforcing the rules and regulations of the Association, all pursuant to and in accordance with the terms of that certain Declaration of Covenants, Conditions, and Restrictions for the Plat of Marchini Meadows and recorded in the Official Records of King County, Washington under Recording No. 20050419000595 (as amended, the "Declaration", and with any capitalized terms used but not defined herein having the meanings ascribed to them in the Declaration); and

WHEREAS, from time to time Owners become delinquent in their payments of these assessments, and fail to respond to the demands from the Board to bring their accounts current or to otherwise comply with the rules and regulations of the Association or its Community-Wide Standards (collectively, including the rules and procedures established by this instrument, the "Rules"); and

WHEREAS, the Board deems it to be in the best interests of the Association to adopt a uniform and systematic procedure for ensuring compliance with the Rules, and for dealing with delinquent accounts in a timely manner, and further believes it to be in the best interests of the Association to refer these accounts promptly to an attorney or collection agent for collection so as to minimize the Association's loss of assessment revenue.

NOW, THEREFORE, the following resolutions are hereby adopted and approved:

1. Appointment of Manager.

Pursuant to the terms of that certain Property Management Agreement (the "Management Agreement") between the Association and Port Gardner Property Management, a Washington corporation (collectively with any other managing agent that the Association may appoint from time to time, the "Manager"), the Manager has been authorized and appointed as the Association's agent for management of all matters related to enforcement of the CC&Rs and Rules established pursuant thereto, as well as administration of the day-to-day operations of the Association. Without limiting the authorities established in favor of the Manager under the Management Agreement, the Manager is hereby authorized and directed to implement and enforce, on behalf of the Association, all of the Rules and related collection procedures established by this instrument or otherwise. Except as otherwise specifically set forth herein, the Manager shall be the sole representative of the Association with respect to the subject matter of this instrument, and Owners shall deal exclusively with the Manager with respect to such matters. 

2. Fines for Violations of Rules.

Pursuant to Section 3.6 of the Declaration, for each unique uncured violation of the Rules (a "Violation") by an Owner, the Manager shall impose fines ("Fines") on such Owner and on behalf of the Association in the following amounts at the following times:

Notice Period Fine Amount
If the Violation is not cured within 10 days after Manager provides Owner with written notice of such Violation (the "First Violation Notice"), a Fine in the amount shown shall be imposed, and a second notice of such continuing Violation and Fine (the "Second Violation Notice") shall be delivered to the Owner.
 
$50
If the Violation remains uncured 10 days after delivery of the Second Violation Notice, a second Fine in the amount shown shall be imposed, and a third notice of such continuing Violation and Fine (the "Third Violation Notice") shall be delivered to the Owner.
 
S100
If the Violation remains uncured 10 days after delivery of the Third Notice, a third Fine in the amount shown shall be imposed, and a notice of such continuing Violation and Fine shall be delivered to the Owner.
 
$200
Total: $350*

* Such total does not include interest or the additional $50 late charge imposed under Section 6 if special Assessments for Fines that are not paid when due, and does not include any discretionary fines for ongoing serious violations that may be imposed by the Board in accordance with this Section.

In addition to the foregoing Fines imposed by the Manager, in the event that any Violation remains uncured 10 days after imposition of the final $200 fine by the Manager, the Manager shall refer such Violation to the Board, which may (i) impose such additional fines at such times and in such amounts as the Board deems appropriate under the circumstances until such Violation has been cured, and/or (ii) pursue any other remedy available at law or in equity to remedy such Violation, including but not limited filing suit against the violating Owner for specific performance.

All Fines imposed pursuant to the foregoing Fine schedule, or by the Board in its discretion, shall be deemed special assessments, due and payable in full on the last day of the calendar month in which such Fine(s) are imposed (except that that if a Hearing is requested, then the obligation to pay any Fines for a Violation being contested at such Hearing shall be suspended until the date that such Hearing has been completed and such Fines were found by the Board to have been properly imposed). 

3. Procedures for Contesting Violations/Fines.

Any notice of a Violation for which a Fine may be imposed (a "Notice") shall be delivered by the Manager in accordance with Section 3.21 of the Bylaws. Without limiting the foregoing, such notice of Violation shall specify:

(a) the nature of such Violation;

(b) the schedule of fines that may be imposed pursuant to section 2, above, in the event such Violation is not timely cured;

(c) that the violator may, within 10 days after the date of the notice, request a hearing regarding the Violation and the Fines that could be imposed;

(d) the name, address and telephone number of a representative of the Manager to contact to challenge such fine;

(e) that the violator may requesting a hearing regarding such Violation and related Fines (a "Hearing"), at which statements, evidence, and witnesses may be presented by the violator; and

(f) that all rights to have the Violation and any resulting Fines reconsidered will be deemed waived if a Hearing is not requested within 10 days after the date of the Notice.

Upon receipt of any request for a Hearing, the Manager is directed to reconsider the Notice of Violation in good faith, taking into account any evidence or information provided as part of the request for a Hearing, and any other evidence or information the Manager deems appropriate. If the Manager determines that such Notice of Violation was delivered in error, the Manager shall rescind such Notice and any related Fines. If the Manager determines that such Violation exists, however, then within 5 days after receipt of the request for a Hearing, the Manager shall refer such matter to the Board of Directors, and the Board shall then hear such matter in accordance with the requirements of Section 3.21(b) of the Bylaws. The obligation to pay any Fines for a Violation being contested at such a hearing shall be suspended during the pendency of any such hearing.

4. Collection of Assessments.

The Association, acting through the Manager, shall diligently pursue collection of all delinquent regular, special or specific assessments, or other charges authorized by the Association's governing documents, including but not limited to any special assessments for Fines imposed pursuant hereto (hereinafter referred to as "Assessments"), and other related matters which the Board or Manager may from time to time encounter, and shall use all reasonable and lawful methods as are deemed prudent to collect such delinquent Assessments.

5. Authority of Agent.

The Manager, acting on behalf of the Association and at the direction of the Board, shall employ the services of a collection agent or an attorney (collectively referred to herein as the "Agent") and other related professionals, as needed, to carry out this resolution. 

6. Late Fee for Delinquent Assessments.

Pursuant to Section 4.7 of the Declaration, there is hereby levied against any Assessment account which is not paid in full within 10 days after the due date therefore, a late fee of fifty dollars ($50.00), which the Manager is authorized and directed to charge to and collect from any delinquent Owner, and which shall be levied each month in which an assessment account is delinquent and not paid in full within such 10 day period. In addition, interest shall accrue on all delinquent Assessments and any resulting late fees at an annual rate of 12%.

7. First Notice of Delinquent Assessments.

The Manager is directed to send to any Owner who is more than thirty (30) days delinquent in the payment of any Assessment, a written notice (hereinafter referred to as the "First Notice") of the late fee and a request for immediate payment.

8. Hardship Hearings.

The First Notice sent by the Manager to a delinquent Owner shall state that any request for special consideration of hardship circumstances, including all reasons why the Board should consider the request, must be submitted in writing to the Board before the Assessment becomes sixty (60) days delinquent, together with a request for a hearing, or in the alternative, a request that the determination be made by the Board based on the written request. If a request for special consideration is not so submitted, then the right to make such request shall have been deemed waived.

9. Second Notice of Delinquent Assessments.

The Manager is directed to send to any Owner who is more than sixty (60) days delinquent in the payment of Assessments written notice (hereinafter referred to as the "Second Notice") that if the account is not paid in full within fifteen (15) days of the date of the Second Notice, a Notice of Claim of Lien will be recorded and a copy thereof will be forwarded to any Eligible Holder (as defined in the Declaration) of a Mortgage against the Lot.

10. Claim of Lien.

The Manager is directed to file a Notice of Claim of Lien against the delinquent Owner's Lot as described in the Second Notice and is further directed to send a copy thereof to any eligible holder of a Mortgage on the Lot if the Owner's assessments remain delinquent for fifteen (15) days after the date of the Second Notice.

11. Referral to Agent.

The Manager is directed to send to any Owner who is more than ninety (90) days delinquent in the payment of Assessments a written notice (hereinafter referred to as the "Third Notice") that if the account is not paid in full within ten (10) days it will be turned over to the Association's Agent for collection and the Owner will be liable for payment of charges imposed by the Agent to cover fees and costs charged to the Association. The Manager is directed to refer any account which remains delinquent for ten (10) days after the Third Notice to the Association's Agent for collection. The Manager is directed to consult with the Board to make a determination to turn over for collection immediately any account where the Owner files or is the subject of a petition for relief in bankruptcy or a lender has commenced any action for foreclosure of its lien against the Lot.

12. Collection by Agent.

The following policies shall apply to all delinquent accounts turned over to the Association's Agent for collection: 

a. All contacts with a delinquent Owner shall be handled through the Association's Agent. Neither the Manager nor any Association officer or director shall have any obligation to discuss the collection of the account directly with an Owner after it has been turned over to the Association's Agent unless the Association's Agent is present or has consented to the contact.

b. All sums collected by the Association's Agent on a delinquent account shall be remitted directly to the Association until the account has been brought current.

c. Any minimum legal fee charged by the Agent shall be assessed against each delinquent Lot and its Owner (including repeat offenders) when the account is turned over to the Association's Agent for collection. That amount shall be credited against the fees and costs actually incurred in the collection of the Owner's account. All legal fees and costs incurred in the collection of a delinquent account shall be assessed against the delinquent Lot and Owner and shall be collectible as an Assessment as provided in Article 4 of the Declaration. The Association's Agent shall give notice to the delinquent Owner that, if the delinquent account is not brought current within the time stated, or a satisfactory agreement has not been reached to accomplish this, remedies will be pursued and sanctions imposed pursuant to Article 4 of the Declaration, until full payment is received. At the expiration of the notice period, the Association's Agent shall inform the Manager and the Board of the status of the account, and the Manager shall implement any such remedies as may be directed by the Board.

d. To the extent appropriate in the circumstances, the Association's Agent is authorized to accept an installment payment plan, secured by a Stipulation for Judgment; provided, however, that any payment plan which provides for a down payment of less than the greater of one third (1/3) of the delinquent balance or twice the current quarterly assessment, or monthly payments of less than twice the current assessment amount, or a duration in excess of six (6) months shall require the approval of the Board.

e. Where, at the expiration of the period specified in the Agent's demand letter an account remains delinquent or with a payment plan embodied in a signed Stipulation for Judgment or a signed agreement by a renter and in the event of a default under the terms of either agreement, the Association's Agent is authorized to take such further action as the Agent, in consultation with the Manager and/or the Board, believe to be in the best interest of the Association, including but not limited to:

1. Filing suit against the delinquent Owner for money due;

2. Instituting a non-judicial action for foreclosure of the Association's lien;

3. Filing a proof of claim in bankruptcy; and/or

4. Instituting a judicial action for foreclosure of the Association's lien; and/or

5. seeking the appointment of a receiver for the Lot.

13. Notice to Owners.

A copy of this Consent shall be sent to all Owners at their last known address.

This resolution was adopted by the Board of Directors on September 26, 2006, and shall be effective on October 26, 2006.