Prestwick POA Covenants and Restrictions Compliance Policy

As a result of the persistent violation of the provisions of the “Declaration of Covenants and
Restrictions of Prestwick Property Owners Association, Inc.” on the part of several property
owners, the POA Board is implementing a Compliance Policy that includes a schedule of fines
for all violations of the covenants and restrictions in a concerted effort to bring all property
owners in compliance with the covenants and restrictions.

Any property owner who observes a violation of the covenants and restrictions shall initiate the
Compliance Policy by sending a letter of complaint to our Property Management Company
(PMC). The letter must contain the offending property owner’s name and/or address, the nature
of the violation, and the name and signature of the complaining part. The complaining party must
be willing to present their evidence at any requested hearing by the offending party. Our PMC or
Board Members may also initiate the Policy. The first step requires the PMC to contact the
offending property owner and discuss the violation with said owner making him or her fully
aware of their responsibilities with respect to the covenants and restrictions. A second violation
by the same property owner or member of their residence will result in a formal letter of
notification from the PMC to the offending property owner. This letter will state that any future
violation will result in a fine of $50.00 being added to the offending homeowners’ quarterly
assessment. Any subsequent violation will result in a formal letter from the PMC plus the $50.00
fine. Among other things this letter will notify the homeowner that should another violation
occur within 30 days of the date of the letter that the homeowner will receive another letter and a
fine of $100.00. The letter announcing the $100.00 fine will include among other things,
notification to the homeowner that another violation within 30 days of the date of that letter will
result in another letter and a fine of $200.00. The letter associated with the $200.00 fine will
include among other things, notification to the property owner that all subsequent violations will
result in additional fines of $200.00 per violation.

A property owner receiving a $100.00 fine and not having a violation within 30 days of the
notification letter but having one within 60 days of the letter, will receive another $100.00 fine
and another letter reiterating the fine escalation policy and time limits. A property owner
receiving a $100.00 fine and not having another violation within 60 days of the letter of
notification will receive a $50.00 fine and a letter reiterating the fine escalation policy and time
limits.

A property owner receiving a $200.00 fine and not having a violation within 30 days of the
notification letter but having one within 60 days of the letter, will receive a $100.00 fine and
another letter reiterating the fine escalation policy and time limits. A property owner receiving a
$200.00 fine and not having another violation within 60 days of the letter of notification will
receive a $50.00 fine and a letter reiterating the fine escalation policy and time limits.

The board, at its discretion, may elect to advise a homeowner that his/her previous record of
violations has reached a point whereby the reduction of fines for “good behavior” is no longer
appropriate and that all subsequent violations will result in fines of $200.00 for each occurrence.
Furthermore, if two $200.00 fines do not eliminate the violations, the Board reserves the right to
seek a court order against the homeowner pertaining to the violations and to assess the
homeowner involved for all costs, including attorney’s fees, associated with seeking and/or
obtaining such a court order.

Any property owner receiving a fine has the right to appeal the fine by requesting, in writing
within fifteen days of receiving notification of the fine, a hearing before the Board of Directors.