Castle Creek Homeowner's Association (CCHA, Inc.) Rules and Regulations

Revised 2003

Statement of Purpose These rules and regulations are to be used by the members and the Board ofDirectors to clarify and be sure that members and CCHA understand their respective responsibilities as well as understand what is permissible by members.

Below are main responsibilities of CCHA and the members. This is a comprehensive listing. Details of specific matters can be found in the different sections of the guidelines.

CCHA's Responsibilities (administered by the Board of Directors) 1. Maintenance and upkeep of the external walls and roof of all townhouses belonging to CCHA. 2. Replacement and structural repairs and maintenance of roofs and external walls, excluding doors

windows and exterior porch light fixtures (see Section 5). 3. Upkeep of the lawn, which is limited to mowing, trimming and fertilizing (see Section 4). 4. Replacement and structural repair of deck and privacy fences, excluding cleaning and staining. Any

alterations to original specifications are at the cost of the owner with written approval ofCCHA. 5. CCHA written approval of structure and/or exterior land development prior to any work. 6. Upkeep and access for common areas, pool, playground, etc. 7. Replacement reserve - to fund long term capital improvements, including siding, painting and roofing. 8. Insurance of original structure, excluding contents, improvements, betterments and personal liability. 9. Maintenance of security lighting on buildings, gas lamps and common area lighting. 10. Maintenance of parking pads owned by CCHA.

Members' Responsibilities: (members are the owners of the units i.e. landlords) 1. Condominium insurance (H06 or equilivant) including betterments & improvements. 2. Yard area must be kept clean and unencumbered of any debris so mowing can be accomplished

without difficulty to the landscape company. All landscaping is to be in mulched beds as approved by CCHA.

3. Upkeep and maintenance of decks - annual cleaning and staining. Approved stain types can be obtained from the CCHA management company.

4. Upkeep and maintenance of driveways, if applicable. 5. Keeping the sidewalk and driveway clear of weather (i.e. snow) and debris (bikes, garbage).

Guidelines for Members and CCHA for Maintenance and Home Improvements

Owning a unit(s) within Seven Fields is a decision of choice. The choice entails involvement with all of those who share that choice with us. Our involvement includes providing for the maintenance of a sound investment in our community, maintaining its physical health and appearance, and respecting the equal entitlements of each other.

The following are guidelines to help achieve these goals. CCHA, Inc. assumes all Unit owners have the best of intentions and where failure to observe a rule does occur, CCHA, Inc. assumes that it may be due to misunderstanding or oversight, without intention to willfully violate any rules. CCHA Inc. aims to provide guidance and, where appropriate, provide sanctions and enforcement. Enforcement is in place for those few cases, which requires measures that protect the interest of all those who do honorably perform as they should without problems. Failure to obey any of the CCHA, Inc. Rules and Regulations will result in the penalties described in section 2.

1

Section I - Overarching Rules and Regulations Common Elements - include open spaces including pool, playground, courts and mini-park with gazebo. Limited Common Elements - include parking pads. CCHA owns the parking pads but each owner has exclusive use of them.

Unit owners may not make any alterations, removal, addition or improvements to the exterior of their Units or to any Common Element or Limited Common Element, without prior written consent from the Board of Directors of CCHA, Inc., referred to as CCHA in most cases.

Unless clearly stated in these Rules and Regulations, all requests for alterations, removal, additions or improvements to any Unit or Common Element or Limited Common Element, or any variation from the requirements of the CCHA Inc. Rules and Regulations must be submitted to CCHA, Inc. Board of Directors for approval prior to the date on which such work is scheduled to begin and shall be in writing. Building permits and all required documents shall be obtained by the Unit Owner. Such request shall state with specificity the work to be done and, if necessary, the reasons for a variance. Work must begin within three (3) months from the date of approval and all work must be completed within a reasonable time thereafter. The work shall be performed substantially as indicated in the request and the Unit Owner shall not vary from the request without prior written consent of CCHA Inc. If no work is begun within three (3) months from the date of approval, such approval shall be deemed void and no longer valid. Unless special actions is required by CCHA, Inc., all requests for approval shall be returned within 30 days after the date of the request and shall be marked "'approved or "not approved" . If not approved, CCHA, Inc. shall state its reasons for disapprove and/or shall indicate the deficiencies in such request. To avoid any loss, inconvenience or disappointment, it is strongly recommended that a Unit Owner make no monetary or legal commitment with any third party, contractor, supplier or other person or entity, or purchase any materials or supplies, prior to receiving approval from CCHA, Inc.

Complaints of Board and Management -Any complaints regarding the maintenance and condition of the Common Areas or the action of CCHA Inc or its officers, employees or independent contractors shall be made in writing to CCHA. The Association shall be granted a reasonable time (except with emergencies) to study and act upon the complaint.

Dues and Assessments - the expense of performing the ongoing maintenance and renewal ofCCHA's responsibilities, along with administration, insurance, services and enforcement of these rules and regulations, are funded by a monthly assessment to be paid to the Association as stated by the Associations bylaws. All members shall pay these assessments within 5 days of a due date stipulated. Non­payment of these dues shall be subject to procedures as stipulated in the Association's bylaws (Article XI, Assessments)

It is recognized that the regular assessment may not be sufficient to fund certain or necessary large projects. In such stances, special assessments may be levied against all members, providing a vote of approval was given. Any special assessment shall require a vote of approval of75% of all shareholders in good standing. Approved special assessments shall be lienable and collectible by CCHA Inc. The quarterly maintenance fee may be raised up to I 0% without a majority vote by members.

2

- --- -----

Section 2 - Enforcement of Guidelines and Bylaws CCHA will notify members ofviolation(s) to any of these rules and regulations, and if the violation is not rectified, a fine will be in imposed. CCHA will also upon receipt of a written complaint of any violation or regulation, notify the owner of the violations and set a date whereby the owner is required to correct the violation.

• Common Practice - The practice is to notify members, in writing, of the violation stating there is 30 days to rectify the violation and if not, a fine will be imposed. A fine may be imposed only if there was a) adequate written notice of the violation(s) and the notice was provided by an authorized officer or agent of CCHA Inc, and b) the notice was provided with a brief statement of the violation. The notice may be sent by certified mail to the Unit owner or delivered by hand to the owner.

• Fines - fines vary based on the type of infraction. For matters that are not in violation of a zoning law or ordinance (i.e. unapproved edging or satellite dishes that are not camouflaged) the fine will be $25 for the first violation. However, multiple and continuing fines for violations may result in fines greater than $25 and in multiples thereof Simple interest on the assessed and unpaid fines shall accrue at the rate of 18% per annum.

If an owner or tenant has a violation of the same or substantially similar rule or regulation, after an initial infraction and fine, the Unit Owner may be assessed a $50.00 fine for the second infraction and $100.00 for the third infraction. After the third violation, CCHA may assess a fine in an amount calculated to cause the Unit Owner to cease the violation.

CCHA in its sole discretion may restrict or suspend any rights or privileges of the Unit Owner of Tenant from Common Areas. If the member/ unit owner is unwilling to pay the fine and address the violation, a lien shall be placed against the Unit along with an assessment against the Unit and the Owner.

• Enforcement - the management company for CCHA is responsible for enforcing fines and keeping the neighborhood in compliance with the CCHA Rules and Regulations. If a member has not corrected a violation within 2 weeks of notification, Management/ CCHA, may choose to correct the violation (especially if the violation is a health hazard) and charge the owner to reimburse CCHA their cost to correct the violation.

• Landlords/Tenants - For rental properties, CCHA will deal solely with the landlords. It is the sole responsibility of each Unit Owner to comply with all CCHA Rules and Regulations. It is the landlord's responsibility to pay the fine if their tenant is not in compliance. It is also the landlord' s responsibility to inform each tenant of the Rules and Regulations as well as make sure their tenants abide by the rules and regulations.

• Grand-fathering - with the implementation of these new rules, there will be no more grand-fathering of rules and regulations. For any unit that is not in compliance with the rules and regulations, they will have 30 days to correct the infraction.

3

Section 3 - Neighborhood Environment (#9, 13, 27, 33) • Parking Areas - not to be used as long-term reserved parking for members - 48 hour maximwn

is allowed. CCHA Management Company should be notified of all complaints. Citations will be made on vehicles parked there long term. CCHA is responsible for security lights. No automobile repairs are permitted in parking areas.

• General Work on Homes - Acceptable hours to work on homes is from 8 a.m. to 8 p.m. Fines can be assessed to those working outside of these hours. Please refer to Seven Fields Boro ordinances for additional restrictions.

• Mailbox Area (#23) - no parking around mailboxes is permitted. The only accepted mailboxes are postal approved mailboxes and supports.

• Street Parking (#32) - Is not allowed in accordance to local ordinances. If a member has a complaint they should contact the Boro or the Police to resolve the matter.

• Garbage (#8, 11)- storage of garbage, garbage cans, milk bottles or any other articles must be in areas that are not visible from the street (ex. Back patio or deck). There is to be no hanging of towels, linens, clothing, rugs, curtains, mops or laundry of any kind from windows or decks or exposed on any part of the Common Elements or Limited Common Elements, in order to preserve a respectable appearing neighborhood. Please refer to the Boro ordinances for additional restrictions.

• Pets (#25) - members may own pets, however they are to always abide by the leash laws, which includes picking up of pet waste and its proper disposal. Pet waste is NOT to be disposed in the common area trash cans. All pets are the responsibility of the owner and are to always be supervised when outside.

• Zoning ( #28) - No unlawful use of premises is permitted. All zoning ordinances and regulations of all governmental bodies shall be observed (ex. No operation of a commercial business from home, building without a building permit, etc.).

• Noise/Nuisance (#26) - No member or any resident is permitted to make loud noises, especially with outside radios or do anything that will interfere with the rights or comforts of another member or resident. This also includes vocal or musical instnnnents; audio/visual devises and any activity which would create an annoyance to other members and residents. Any resident who experiences such an annoyance may address the matter with the Police and is requested to file a written complaint with the Board ofCCHA, with the specifics of the noise/nuisance infraction.

• Sidewalks ( #6) - it is the member's responsibility to keep sidewalks and driveways clean and maintained free of snow and debris.

• Vandalism or any Environmental Hazard~ will not be tolerated and violators will be prosecuted to the full extent of the law. Violators will be responsible for all cost to repair any damages.

• Outdoor Fires - Due to homeowner' s insurance costs and the close proximity ofbuildings outdoor fires (other than grills used for cooking) ARE NOT PERMITTED.

4

Section 4 - Lawn Upkeep and Landscaping (#2, 3, 4, 5, 7) Unit owners or residents are not permitted to make any alterations to the landscaping without prior written consent of CCHA, Inc, unless being done within the guidelines below and done from an approved list.

• Shrubs and Trees - It is the responsibility of the member for the upkeep of existing shrubs and trees. If a member wishes to plant other shrubs or trees, the Board must approve the scheme of the landscaping plan, prior to any changes.

• Flowers - can be planted in existing mulched beds. The beds must be kept clean and unencumbered of any debris so mowing can be accomplished without difficulty. AU landscaping is to be in mulched beds, so mowing can easily be done.

• Edging/Borders - There are approved edging and borders. These specifications are mailed to the owner once the required letter/application has been submitted for approval.

• Fences (#21) No fences, including invisible fences, other then the original privacy fences built by the developer are permitted.

• Outside buildings (sheds, etc.) No swing sets, playhouses, trampolines, storage sheds or any external building is permitted in or on the yard area or common elements. Sandboxes are not to be left in the yard, where mowing is encumbered, and must be stored on a patio or cemented area.

Section 5 -External House (#1, 2, 18, 22) • Lights (#24) - members are responsible for maintaining their front and back porch lights. The only

lights that can be on after midnight are those less than 100 watts OR security and safety lights. Any members whose units have gas lights are not permitted to shut them off.

• Decks/Hot Tubs - the Board must approve any structural changes to a unit. Hot tubs are NOT permitted.

• Firewood (#10) - must be stored neatly, up off of the ground and, where it can not be seen from the street.

• Doors (#17) Members and landlords are permitted to install storm doors, front and back doors, and sliding doors; provided that they are an approved style. Members are responsible for maintenance/ painting of doors. All doors must be repainted with the paint that matches the unit's shutters and is an approved color. A list of approved doors and paint colors can be obtained from the Management Company.

• Garage Doors (#19) - are not to be left open for an extended period of time. For ventilation purposes, garage doors shall not be open more than eight (8) inches. Replacetnent, upkeep and painting of garage doors are the responsibility of the members. Doors must be replaced with an approved list of garage doors and/or painted with an approved paint. The list of approved garage doors and paint colors can be obtained from the Management Company.

• Windows (#15) - all glass doors and windows are to have drapes, curtains and/or blinds of a tasteful neutral decor, to present a "lived in" appearance from the exterior. Window replacement is the members' responsibility and must be replaced with a similar appearing windows (color and style) that is approved by CCHA.

5

-- - - - - -

• Trim Paint Color (#18)-Building, door and trim paint colors may not be altered from the standard CCHA colors originally assigned to each unit.

• Satellite Dishes (#12)- With approval from CCR.A, satellite dishes, are permitted provided they are NOT directly attached to the building or deck. The dish must be placed within the confines of the back deck or patio area or if installed in the front of any unit, the dish or antenna must be hidden or camouflaged so it can not be able to be seen from the road. It must also comply with FCC regulations.

• Driveways ( #31) - are to be used for parking of licensed and inspected automobiles in operating condition. Commercial vehicles, campers, boats, etc. are not to be parked in the driveways. No major automobile repairs are to take place in driveways.

• Flags - No flags are permitted.

• Awnings (#14) -no metal or fabric rigid awning, canopy, shutter or other object projecting from an outside wall or roof can be installed. A neutral color retractable awning may be installed with approval from the CCHA Board.

• Utility/Ground Matters - any utility problems are at the sole responsibility of the owner, after the unit bas been accepted into CCHA.

• Environmental Matters (#30) No flammable or any explosive or otherwise hazardous material, except for the use in common household purposes in compliance with any law, regulation or ordinance, can be brought into the unit, balcony, deck or patio of the unit.

• Other Decorative Objects (#16,) Residents may not place statues or decorative accessories in front/ back of their units, suspend from balconies, decks or patios except for potted or hanging plants.

• Signs and Advertising- No signs, advertisement, notice or other lettering is permitted to be inscribed, painted, displayed, exhibited or "fixed" on any part of the property or Unit. The one exception is advertising the sale of a unit, provided that the sign be placed in the front of the property being sold. No signs may be placed in any common area. For Sale signs must be removed within 48 hours of the execution of contract of Sale for the Unit. Any exceptions to this ruled must be approved by CCHAinc.

6

-- - - ------ - -

/

Castle Creek Homeowners Association Fees Charged on the Resale of Units

WHEREAS, The PENNSYLVANIA CONSOLIDATED STATUTES; TITLE 68 REAL AND PERSONAL PROPERTY; SUBPART D. PLANNED COMMUNITIES authorizes the BOARD OF DIRECTORS to impose certain fees and charges upon the resale of an Association unit;

WHEREAS, The Association, as a business entity, requires funds to operate;

Therefore, BE IT RESOLVED that the following is the fee policy on the resale of units in Castle Creek Homeowners Association:

1. A charge to the seller for the preparation of resale certificates required by section 5407 of the PA statute. Currently, there are several certifications required to be prepared for a closing. The current amount charged will be identified in the Income section of the annual budget. In addition, any additional copies required will be charged prevailing copy and postage charges.

2. A capital improvement fee will be charged to the buyer as part of the closing costs. This fee will be $300.00. The current amount charged will be identified in the Miscellaneous Income section of the annual budget.

Both of the above are to be made payable to Castle Creek Homeowners Association.

This resolution is effective for all units sold on or after March 1, 2015.

Date

Date

/

Castle Creek Homeowners Association Fees Charged on the Resale of Units

WHEREAS, The PENNSYLVANIA CONSOLIDATED STATUTES; TITLE 68 REAL AND PERSONAL PROPERTY; SUBPART D. PLANNED COMMUNITIES authorizes the BOARD OF DIRECTORS to impose certain fees and charges upon the resale of an Association unit;

WHEREAS, The Association, as a business entity, requires funds to operate;

Therefore, BE IT RESOLVED that the following is the fee policy on the resale of units in Castle Creek Homeowners Association:

1. A charge to the seller for the preparation of resale certificates required by section 5407 of the PA statute. Currently, there are several certifications required to be prepared for a closing. The current amount charged will be identified in the Income section of the annual budget. In addition, any additional copies required will be charged prevailing copy and postage charges.

2. A capital improvement fee will be charged to the buyer as part of the closing costs. This fee will be $300.00. The current amount charged will be identified in the Miscellaneous Income section of the annual budget.

Both of the above are to be made payable to Castle Creek Homeowners Association.

This resolution is effective for all units sold on or after March 1, 2015.

Date

Date