DEED RESTRICTION ENFORCEMENT

REVISION DATE: 11/21/2002

PURPOSE

This policy is to adopt an equitable and consistent policy to enforce the Association's deed restrictions and guidelines to ensure that members' property values are maintained and that PCA families continue to live in a healthy and attractive community.

SCOPE

This policy applies to all members of the Pineloch Community Association, Inc., and all Lots which are subject to the Declaration of Covenants, Conditions and Restrictions for Bay Glen, Section One, a Subdivision in Harris County, Texas and any Amendments thereto (hereinafter sometimes "Pineloch Declarations"), including, but not limited to Bay Knoll, Section Two; Bay Knoll, Section Three; Bay Knoll, Section Five; Bay Knoll, Section Six; Bay Knoll, Section Seven; Bay Knoll, Section Eight; Bay Glen, Section Two; Bay Glen, Section Three; Bay Glen, Section Four; Bay Glen, Section Five; Bay Glen, Section Six; Bay Glen, Section Eight; and Bay Glen, Section Eleven.

REFERENCE(S)

The Declaration of Covenants, Conditions and Restrictions for Bay Glen, Section One, a Subdivision in Harris County, Texas and any Amendments thereto (the "Restrictive Covenants").

DEFINITIONS

Deed Restriction: As used herein, the term "deed restriction" shall mean any restriction of use of real property in Article VII of the Declaration of Covenants, Conditions and Restrictions for Bay Glen, Section One, A Subdivision in Harris County, Texas and any Amendments thereto (the "Restrictive Covenants").  Enforcement of the deed restrictions is important to enhance and protect the value, desirability and attractiveness of the land.

Deed Restriction Letters: A series of three letters sent to homeowners notifying them of an alleged violation of deed restriction.  If the homeowner fails to correct the alleged violation, the matter may be turned over to the General Counsel.

Inspector: An individual employed by the Property Management Company (hereafter referred to as Management) shall routinely inspect all residential, commercial and Association common ground for violations of the Association DCCRs and ACC Guidelines, Fall, 2002 and carry out the provisions of this Policy to enforce such restrictions upon the membership.  A Board of Director or an ACC committee member may also inspect property for deed restriction violations and convey such information to Management for enforcement in accordance with this Policy.

Maintenance: To repair or replace to an operable, functional and aesthetically pleasing condition.

Violation: Any act or condition, or lack of maintenance, willful or not, by property owner or tenant that causes a property or permits improvements to be in noncompliance with the Deed Restrictions.

POLICY

1. The Management Company contracted by the PCA Board of Directors will keep up to date records of violations noted during their regularly bi-monthly inspection of the neighborhood.  Pictures may be taken and dates recorded as needed.  Each owner shall notify the association in writing, at all times, of his/her current mailing address.

2. When a violation is first observed a pleasant letter is sent to the property owner by the Management Company giving the homeowner a reasonable time to cure the condition.  The definition of "reasonable time" depends on the nature of the violation.  Example: 30 days to repair a fence, a sidewalk, remove mildew and paint; fourteen days to dispose of trash or remove an improperly parked vehicle.  In the letter, the homeowner is urged to contact the Management Company if there are any questions or concerns about the stated violation.  Homeowners are also encouraged to speak to the Board of Directors at a regularly scheduled meeting if they wish to do so.  If the violation is one which the Association believes an injunction is necessary, the Association is not required to follow these notice and hearing provisions and may instruct its attorney to file suit immediately.

3. If the violation is not cured at the end of the time specified in the first letter, the Management Company will send a second, more forceful letter.  This letter will be sent via regular mail.  A length of time of fourteen days will be given to correct the violation.

4. If needed, a third letter concerning the violation will be sent to the homeowner via certified mail.  This letter will describe the violation, state that the violation must be cured within 30 days from the owner's receipt of the letter or attorney's fees and costs associated with enforcement may be charged if the violation continues.  All correspondence requiring certified mail will be subject to collection costs if the violation is not cured within the time specified.  This amount represents the collection costs associated with preparing and mailing the notices to cure.  A new law, the Texas Residential Property Act, gives homeowners thirty days from the owner's receipt of the notice to request in writing a hearing before the BOD before attorney's fees, collection costs, and other expenses may be charged to an owner's account.  Owner and tenant (if applicable) will be advised to notify Management if extenuating circumstances exist, if additional time to correct is necessary, or if further information is needed.  If a hearing is requested, the Board of directors must make arrangements for it to be held no later than 30 days after the date that the Board or the managing agent received the written request.  The owner must be notified of the date, time and place for the hearing no later than ten days prior to the hearing date.  The hearing may be recorded by either party and the owner does not have to be present for the hearing to be conducted.

5. The Board of Directors, after the hearing or the deadline for a hearing has passed, shall determine whether the violation will be turned over to General Counsel for enforcement.  When the stated matter is turned over to the attorney a copy of all paperwork, pictures, etc. must accompany the letter of request.  All fees directly related to this matter will be subject to payment by the homeowner.

6. The attorney will send a letter to the property owner via certified mail, detailing the violation and the restriction violated and giving a reasonable time to cure.  If a tenant occupies the house and the name of the tenant has been furnished to the Association, a copy of the letter will also go to him.  A tenant is also responsible for complying with the restrictions.

7. If the letter comes back marked "returned", "unclaimed", "moved, left no address", or the like, the attorney will do a title search and review the records at the Harris County Appraisal District (HCAD) for the name of the current owner.  If new homeowner or occupant information is found, the initial attorney demand letter will be sent to the new homeowner and/or occupant.  The attorney will work with the homeowner to get the violation cured in a reasonable amount of time.

8. A recurring violator is an owner or tenant who has violated the same or similar restriction within the preceding six months after notice of the original violation.  The board has the discretion to impose a fine immediately against an owner (or tenant) upon written notice for a similar violation within six months of the original violation, so long as the owner received the third notice (giving the opportunity for a hearing).  The recurring violator is not entitled to an opportunity to avoid the fine by curing the violation and suit may be filed without the hearing notice required by the Texas Residential Property Act.

9. Any action taken and information obtained by the attorney is reported in the monthly status report to the Board of Directors.  If the violation is not cured after a reasonable amount of time, keeping in mind that everyone has worked with the homeowner in a professional, helpful manner, the attorney will ask the Board of Directors for permission to file suit.  Observations including notes and pictures will be taken/dated at this time.  The attorney may attempt to contact the homeowner by telephone prior to filing suit if the owner has furnished this information to the Association or if a phone number is published.  The attorney will advise the Board of Directors in which court of law this matter should be filed.  Most violation matters will be taken to the Justice of the Peace; others will be handled in the County or District Court.  JP courts can not issue an injunction ordering the homeowner to remove the violation, but the Texas Property Code gives the Association the right to ask for $200.00 per day in civil damages for each day that the violation exists.

Comments and questions about the Pineloch Community Association may be emailed to the Management Company at CMSI.

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