The Attached Collection Policies and Procedures

Jim Burneson comments are printed in RED

The following document was authored by Rich Johnston attorney for the Association Dam East Homeowner Association. This “Collection Policies and Procedures was promoted by SB 100 which opened the door for the CAI lawyers to write a set of procedures that will benefit their methods of extracting money from the membership of an HOA. Read each section and at the end mark whether the changes suggested are for the membership or attorney and property manager.

COLLECTION POLICIES AND PROCEDURES

The following policies and procedures were adopted by resolution of the Board of Directors of The Dam East

Homeowners Association ("the Association") pursuant to Colorado law at a regular meeting of the Board.

RECITALS:

A. The Colorado Legislature declared the continued economic prosperity of Colorado is dependant upon the strengthening of homeowners associations in common interest communities financially through enhancing the financial stability of associations by increasing the association's powers to collect delinquent assessments, late charges, fines, and enforcement costs. Based upon that declaration the Colorado Common Interest Ownership Act ("the Act") was adopted.

The purpose of the Dam East Homeowner Association is not to collect legal fees for a lawyer. The lawyer industry has created a function that is not necessary called collections of delinquent assessments. Paragraph A tries to make the sole purpose of this Association is collections against the membership which is incorrect. This association is to be returned to benefit the membership instead of lawyers and property managers.

Pursuant to the Association's governing documents and the Act the Association, acting through the Board of Directors, is obligated to collect the assessments and other charges owed to the Association.

This is true “obligated to collect assessments and no mention of legal fees. THIS EFFORT OF COLLECTION DOES NOT BENEFIT THE ASSOCIATION MEMBERSHIP. IT BENEFITS THE LAWYERS INCOME ONLY. For over 20 years this association was successful in collecting all delinquent assessments by using the power of filing a lien on the delinquent property and not unleashing LAWYERS on the membership. During this time the Association never lost any Association’s money. The Association had a 100 % collection record until unnecessary legal fees were introduced for the sole benefit of the Tort Twisters.

Subsection 209.5 of the Act requires the Association to adopt policies and procedures for collection of unpaid assessments.

B. Subsection 302(1)(k) of the Act provides that subject to the provisions of the declaration the association, without specific authorization in the declaration may: impose charges for late payment of assessments, recover reasonable attorney fees and other legal costs for collection of assessments regardless of whether or not suit was initiated; and, impose reasonable charges for the preparation and recording of statements of unpaid assessments.

Who determines what is reasonable when the Board of Directors in the last 15 years has never approved legal fees charged by a lawyer. Thousands of dollars have been paid from our General Funds to four lawyers with no approval by motion and vote of the board at a duly called board meeting and the motion recorded in the minutes. The only payment which meets this requirement is the $750. the board approved to pay Rich Johnston for this document. All other legal fees were approved by the property manager who has no authority to debit prepaid legal fees in a member’s account again without approval by the Board of Directors.

C. Article VI of the recorded Declaration of Covenants and Restrictions for Dam East ("Declaration") generally provides:

1. Each Owner of a Lot, by acceptance of a deed, is deemed to agree to pay the Association assessments or charges. It says by acceptance agrees to follow the Articles of Incorporation, Covenants and Bylaws not focused on this lawyers interest of only assessments. This lawyer Rich Johnston is hired to be the association attorney and has the duty to represent the membership instead of only profiting from collections. He continues to violate Rule 1.13 Representing a Corporate Client.

2. The assessment. Each monthly installment of the assessment shall be due in advance on the 1^stof each month.

3. Any assessment/installment not paid within 30 days of the due date shall be considered delinquent and subject to interest at the rate of 8 % per annum.

4. Assessments, as that term is defined in the Act, are the personal obligation of the Owner of the Lot when the assessment fell due and a charge against the Lot.

D. The Board of Directors deems it desirable to establish and operate by procedures that balance the Association's interest in the timely collection of Common Expense Assessments and other charges with the Owner's interest of being advised of any delinquent balance in their account and being treated fairly in the resolution of the delinquent account balance prior to the Association instituting legal action to collect the amount it alleges due.

Problem the directors have no authority to rename legal fees as assessments. A member is denied their right to be advised what is the exact amount of delinquent assessment is owed when legal fees are commingled with assessment payments and those payments are credited to the legal fees first. For the purpose of paying the lawyer his fees can be determined but when a report to the membership how much is owed the association as pure assessments the Treasurer Finn Larsen can’t break out the assessments only.

E. The Board also deems it desirable to adopt and define the method in which the Association will apply partial payments on an Owner's account. This partial payment has nothing to do with a member paying a partial to his assessments.

THEREFORE, IT IS RESOLVED THAT the following procedures shall apply to the Association's collection of sums alleged to be due from the Owner.

1. Due Date, Late Fees, and Interest:

Monthly installments of the Common Expense Assessment are due by the first of each month. Payments not received by the 30^th day of each month are considered delinquent and the Owner's account will be subject to a late fee in the amount of $10.00, and interest at the rate of 8 % per annum. The late fee can only be charged once against that month’s late payment. The next month cannot be charged another late fees on the same late payment while the lawyer is in there sucking up the members payment towards his assessment and paid on the lawyer’s legal fees. Under this crooked system a member will never be able to pay down his delinquent assessments’ and the legal fees continue to increase each month. It can become a pension fund for the lawyer.

2. Notice of Delinquent Account:

The Association, through its agent, shall notify the owner of the delinquent payment: once after the first of the month the payment was due; and a second time after the late fee and interest accrue on the account.

In the event the delinquent balance is not paid in full, the Board may suspend the Member's voting rights and Common Element facilities until the account is paid in full, provided notice and an opportunity to be heard is provided to the Owner at least 15 days prior to the suspension of privileges. This doesn’t state who is running the hearing. 1. I have tried by written request to the board to review my account and it has been intentionally refuse for over a year. The property manager Earl Johnson has refused to allow his only bookkeeper to respond to my inquiry about charges against my account. So this paragraph is unfinished. At a member’s request for an audit and explanation of his charges are not answer by the board by the next scheduled board meeting all fines are to be dismissed. All charges and any legal fees must be recorded as being approved by the board at a duly held board meeting. If this requirement is not met then all charge including legal fee are to be dismissed. That is not in this bill but should be.

2. The accounting of assessments by the HOA bookkeeper must be separate of all other charges to maintain a true know pure balance of what the delinquent assessments is owed. All other charges like legal fees and fines if approved by the Board of Directors must be separately accounted for in another account under the members name.

Notices shall be in writing and delivered to the Owner, via U.S. Mail first class postage prepaid, addressed to the property subject to the assessment obligation. The Association, upon the written request of the Owner delivered to the Association personally or by certified mail, return receipt, postage prepaid, will mail the notice of delinquency to another address as set forth in the Owner's written request. Notices or written requests from a member to the board or to the property manager are to be answered within 30 days of mailing. In the event the questions posed by a member needs to be researched an additional 30 days can be extended by a motion and vote of the board at a duly held board meeting. I have over 300 letters since 2000 that the board refused to answer. Had any of these letters been answered this association may not have incurred all the legal fees trying to hide the books. The board violates its fiduciary duties by refusing to respond to a member’s written request with questions about the operation and management of this HOA. It is the Secretary’s responsibility to the membership to maintain all correspondence of the Association. In the event this responsibility is not carried out the Secretary he/she must resign from the board as Secretary and as a Director. By the 90^th day the board must address any correspondence not responded at an open board meeting.

The Association, pursuant to its right to recover legal costs of collection, shall have the right to recover its actual costs of maintaining the delinquent balance, written notice to the Owner, and other costs associated with the Owner's delinquency. All charges against a homeowner must be approved by the Board of Directors at a duly called meeting and notice must be given the member of the date and time of the meeting these charges are going to be reviewed.

3. Collection Procedure:

In the event the alleged delinquent balance is not resolved within 30 days of the second written notice of delinquency set forth above, the Board of Directors, through the

delegated agent, may refer the Owner's account to the Association's attorney for collection. The agent has no authority to approve or refer any charges against a member to an attorney. Only the Board of Directors has this authority and it can’t be assigned when a cost will be charged a member for this action. All legal fees must be approved by a full vote of the Board of Directors duly called meeting.

Generally the Association's attorney/Treasurer/agent will prepare and record a Notice of Assessment Lien against the real property subject to the assessment obligation. The Association's attorney/Treasurer/agent must may prepare and mail a letter demanding payment of a sum equal to the alleged delinquent assessment, late fees, interest, costs of collection including attorney fees, court costs, and other legal costs incurred through the date the letter was prepared. All fees charged must be approved by the board and all charges must be accounted for in a separate account from the pure assessment account. A members assessment account must be keep separate of all other charges so it can be used for lien purposes without commingling of legal fees. The lien right of the Dam East Homeowner Association is clearly stated to be for delinquent assessments only. No Interest can be charged for legal fees, which is what happens to the amount cited in a recorded lien which includes legal fees now collecting interest .

Legal fees once approved by the board must be collected by the law firm without being included in a lien on the delinquent members assessment account. In the CCIOA is no provision that a lawyers fees can be included in a property lien issued by the HOA. But this fee must be approved by the Board of Directors at a duly held director’s meeting. Right now lawye’s fee for any amount approved by the property manager can be included in the HOA lien against a HOA member. No Board of Director’s involvement in the reasonableness of the lawyer fees include in a property lien. This is called screwing the public with a law degree.

If the delinquent balance is not resolved within thirty days of the letter demanding payment the Board of Directors, through its designated agent, may authorize the Association's attorney to file a lawsuit asserting claims against the Owner of property subject to the assessment obligation, an action to foreclose the Assessment Lien encumbering the real property subject to the assessment obligation, or both. The lawsuit shall claim the alleged assessment delinquency, late fees, interest, costs of collection Does not include attorney fees unless by a court order. including attorney fees, if you have court cost you will have a court Order for judgment. court costs, and other legal costs incurred through the date of judgment or decree. No designated agent has the authority to authorize a lawyer to file a lawsuit against a member of this association. Only the Board of Directors can authorize filing a lawsuit by motion and vote at a duly held meeting with a quorum and recorded in the minutes of the board meeting. All previous lawsuits filed against the membership without board approval are without authority and the lawyers are to be held and charged for misrepresenting their authority to file the lawsuits. The board is also liable for allowing unauthorized lawsuits to be filed without their approval.

Nothing in this policy precludes the Association from seeking the appointment of a receiver or implementing other legal and equitable methods to collect the alleged delinquent assessments, late fees, interest, costs including attorney fees. Wrong there is to be no other litigation or actions beyond the filing of a lien on the member’s property unless the delinquent member had file for bankruptcy. This is a catch all clause to give the lawyer more fees.

The Board of Directors shall designate a Committee of the Board, Board Member, or the Wrong no Managing Agent Managing Agent, to work with the Association's attorney for purposes of authorizing settlement agreements and authorizing collection efforts. The designated agent shall use diligent efforts to timely communicate with the Association's attorney with respect to changes affecting the account including, but not limited to, payments on account, additional debits on the account, bankruptcy filings, foreclosure proceedings, and conveyances. Big wrong. No one other than the board can authorize a settlement. An Agent allowed to communicate with the Association’s Attorney can run up legal fees with his good friend lawyer who he is working with on 20 other HOAs. These two are hired to provide their services as a team to 20 to 40 HOAs. The lawyer’s loyalty becomes blurred between representing the membership and the actions of the property manager that is a source of income to both of them. . The lawyer and manger have a conflict of interest to get as much money from each HOA as they can. The word justice isn’t involved in this arrangement and the member has no protection against legal fees approved by the property manager.

4. Partial Payments on Account:

The Colorado Supreme Court has held that a creditor is entitled to apply payments to the Debtor's account in a manner it chooses where the Debtor does not instruct creditor otherwise. See: Westor Group, Inc. v. Hirschfeld Press, Inc., 845 P. 2nd 1162 (Colo. 1993).

Wrong see the following cases copied from law library. NOTHING STATED HEREIN IS A VIOLATION OF MY PRACTICING AS A LAWYER WITHOUT A LICENSE. Johnston and Hummel are running scared and to stop me from tell the truth they will scream I need a license to quote the law as copied from the law library or from the Internet.

“The general rule is that announced by the trial court. We find the rule to be stated thusly: that a debtor owing more than one debt to a creditor has the right to direct to which debt the payment shall be applied. 40 Am. Jur. (Payment) 110; Restatement on Contracts, § 387; Mumm v. Taylor, 121 Colo. 157, 213 P.2d 836. In the absence of direction or expression by the debtor of his intent as to how payment should be applied, the presumption is that he thereby assents to such application of the funds as the creditor may desire to make. The creditor is allowed to make the appropriation in a way most advantageous for himself. Perot v. Cooper, 17 Colo. 80, 28 Pac. 391; Culkin v. Matz, 27 Colo. App. 198, 149 Pac. 270; Richie v. Phillebaum, 137 Colo. 295, 324 P.2d 375; 70 C.J.S. (Payment) § 57.”

This quote from the public law library states a debtor owing more than one debt to a creditor has the right to direct to which debt the payment shall be applied.

This means all delinquent members can instruct how their assessment payments are applied with in their account, The Treasurer of this association must follow the instructions of how the debtor wants his payment accounted for. This does not mean the bookkeeper of the management company can apply the payments any way she wants to. I in the past have instructed Western States Property Services Inc. how I wanted my payments to be applied and they didn’t follow my instructions. They will be held for thief and misappropriations of my payments. The treasurer Finn Larsen will be personally held liable for this intentional misapplying my payments from 2000 to the present.

NONE OF THE FOLLOWING HAS ANY BASIS IN THE LAW TO BE DEMANDED BY Rich Johnston. Neither the board or Johnston can overturn how a member wants his payments to be applied. With this in effect a delinquent owner can order all his payments be applied against his delinquent assessment only and pay off the delinquent amount owed without paying off the legal fees owed the attorney. The Association now becomes liable for unpaid legal fees and that will come out of the memberships general fund. THIS IS A MAJOR REASON TO FIRE THE LAWYER AND PROPERTY MANAGER NOW!

This is why no one is allowed to cause legal fees to be charged except as approved by the board of directors. A property manager and his buddy lawyer if allowed to self approve legal fees and the member pays off his delinquent assessments no longer owes any legal fees and now the association will have to pay the lawyer his charges. Remember no liens for legal fees because of the interest charged against member.

“Any payments of less than the full amount owed to the Association shall be applied to pay the following (if applicable) in the order listed, from oldest to most recent in each category:

1^stto attorney fees and legal costs,

2^ndto association's costs and other legal charges,

3^rdto fines,

4^thto late charges,

5^thto interest,

6^thto special assessments, and 7^thto annual assessments.

The Association through its designated agent shall have the discretion to return any partial payment that directs the funds to be applied in a manner inconsistent with the Association's policy pertaining to partial payments set forth above. All of the above is BS and your board is selling the membership down the river if they want to approve it without the membership approval. If the board tries this they must all resign and a new board be elected. THE MEMBERSHIP MUST UNDERSTAND JAKE HUMMEL AND THE DIRECTORS WERE READY TO VOTE FOR ALL OF THESE CHANGES WITHOUT TELLING THE MEMBERSHIP. THEY ALSO SET UP A SYSTEM TO TRY AND NOT SEND OUT THESE PROPOSAL BECAUSE YOU THE MEMBERS ARE LAZY OR DON’T CARE OR DON’T UNDERSTAND YOUR RIGHTS TO THE OWNERSHIP IN THIS HOA.

5. Miscellaneous Provisions: All of the following is BS. This entire procedure is about how Rich Johnston wants your board to protect his income. Everything is attorney fees and treble damages. THIS BOARD DOESN’T NEED AN ATTORNEY INVOLVED IN COLLETING OUR DELINQUENT ASSESSMENTS WHEN THE BOARD HAS THE RIGHT TO FILE A LIEN ON THE DELINQUENT OWNERS PROPERTY. Without an attorney involved 2/3 of this proposed procedure can be deleted.

In the event the Owner intends to satisfy the entire debt to the Association by means of a restrictive endorsement of a check or money order for an amount less than the entire balance then due on the Owner's account, that check must be delivered to the Association's managing agent personally or by certified mail first class postage prepaid return receipt requested. This is a joke no one needs a procedure to pay off the total charges if he wants to.

If a check or other instrument is tendered to the Association and the instrument is not honored by the financial institution the Association may impose a $20.00 fee as a returned check fee, or pursue the statutory remedies which generally allow the Association to collect treble damages and attorney fees in the event the issuer fails to honor the instrument. The returned check fee, if charged, shall be the personal obligation of the issuer of the check as well as a lien against the real property subject to the assessment obligation.

The Association has the right to evaluate each delinquency on a case-by-case basis and take action on each case based on the Board's good faith business judgment.

Generally alleging a failure of the Association to maintain the Common Elements/Area or generally alleging a failure of the Association to comply with provisions of the Association's governing documents shall not constitute a defense or set-off of the lawfully imposed assessments.

In the event a Court of competent jurisdiction finds a provision of this collection policy void or otherwise unenforceable, the other provisions shall remain in full effect.

These policies and procedures were adopted this________________ day of 200_, by resolution of the Board of Directors of The Dam East Homeowners Association.

by________________________________

its________________________________

ENFORCEMENT PROCEDURE

The following enforcement procedures were adopted by resolution of the Board of Directors of The Dam East Homeowners Association ("the Association") pursuant to Colorado law at a regular meeting of the Board.

RECITALS:

A. Pursuant to Colorado Revised Statute ("C.R.S.") 38-33.3-209.5 (1)(b)(IV) the Association is required to adopt a policy concerning the enforcement of the Association's governing documents.

B. C.R.S. 38-33.3-302(1)(k) allows the Association (Board of Directors only) to levy reasonable fines for violations of the declaration, bylaws, and rules and regulations ("the Governing Documents") provided notice and an opportunity to be heard is given to the Member prior to the fine being imposed.

C. C.R.S. 38-33.3-302(1)(d) authorizes the Association to institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Unit Owners on matters affecting the Common Interest Community. In the event the Association prevails with its claim C.R.S. 38-33.3-123 allows the Association to seek reimbursement of its reasonable attorney fees and costs. (To be determined by a court of law what is reasonable as per our Articles of Incorporation, and covenants not the manager and lawyer charging the fees.)

D. For the benefit and protection of the Association and its Members, the Board deems it desirable to establish and operate by procedures to insure due process in cases where an Owner or tenant, their family Members, their guests or invitees are alleged to have violated provisions of the Governing Documents, other than failure to pay assessments. This is not the board’s responsibility but the ACC committee.

THEREFORE, IT IS RESOLVED:

That the following procedures shall apply to a violation of the Declaration, Bylaws, or the Rules and Regulations. However, this resolution shall not apply to those sections of the Declaration and Bylaws concerning payment and collection of assessments.

1. Informal Resolution of Violation

Any Owner, Owner's tenant, or agent (agent no/ ACC yes) of the Association may directly request that an Owner or resident cease or correct any act or omission, which appears to be in violation of the Governing Documents. It is the preference of the Board that residents of the community attempt informal resolution prior to seeking formal resolution. This is not clear who determines what is a violation the Board or the ACC.

In the event the perceived violation is also a violation of Federal, state, or local laws or regulations, the Board may request the complaining resident to contact the appropriate governmental entity to report the perceived violation.

In some cases the Association may be more reluctant to institute litigation than is the complaining Member. The Association would like this opportunity to advise the Members that any person subject to the Declaration and the Colorado Common Interest Ownership Act may institute legal or equitable proceedings to enjoin violations of the Declaration or the Act, and if successful, the complaining party is entitled to seek reimbursement of their reasonable attorney fees and costs A court will determine what is reasonable not the board. A member of this association has the same right to sue the association and if the member prevails he/she can seek the same reimbursement of their reasonable attorney fees and cost. .

2. Mediation

The Association encourages residents of the community to mediate with their neighbors on issues that impact the party's involved but not necessarily other Members of the community. The Association intends to use mediation as a tool to address complaints alleging violations of the Association's governing documents; the decision of whether or not to employ mediation will be within the reasonable discretion of the Board of Directors. This association has a history of failing to complete a mediation or arbitration after a hearing was concluded and documents were presented to be signed by the board of directors. Jake Hummel Lawyer and President was the cause of the last settlement being cancelled after it was approve by both Mr. Emmett Johnson and the board.

Formal Resolution of the Violation

A. The Board or its agent may initiate Formal Resolution of violations upon observation of a violation, no written notice of violation is necessary. This is another BS clause that tries to give power to the property manager to issue tickets at his discretion, which he is not ever to be granted this authority. Any notice of a violation must be in writing and approved by a vote of the ACC committee. It must be signed all members of the ACC who are recorded as voting approval of issuing a written notice of a violation to a member.

B. Residents of the Association may initiate Formal Resolution of violations by filing a written notice of violation with the Association via mail or hand delivery to its management company, in care of the Board. Said notice of violation must clearly indicate the specific nature of the violation, the date, time and location of the violation, the witnesses of the alleged violation, and the name(s) or Unit number of the violator(s). At this time, the name of the Owner(s) or resident(s) making the complaint will not be divulged to persons other than the Board of Directors and its agents. How crooked can you get? After an investigation is completed and the violation is verified by the Board and there is a decision to bring charges against a member for violations then at that time the complaining witness will be named to the accused. If the charges are not proven to the Board’s to be true the charges will be dismissed and the complaining witness will not be named. All actions by the ACC and or Board will be made a part of the Association books.

C. If within the discretion of the Board, the written notice does not allege facts necessary to constitute a violation, the complainant will be notified in writing as to why no action was taken. The complainant may request a reconsideration of the complaint at a subsequent meeting of the Board. The complainant is required to attend this meeting.

D. If the Board, having reviewed the allegations contained in the notice believes a violation of the Association's governing documents has occurred, the accused individual, or the Owner if the accused individual is a tenant, family Member, guest, or invitee, will be notified in writing that a complaint has been made citing the nature, date, time and location of the violation. The person charged shall have twenty (20) days from the receipt of this notification to request a hearing with the Board. Failure to respond to such notification may be construed as an admission of the violation, at which point the Board may levy a reasonable fine against the Owner(s) for the alleged violation. I asked for a hearing on the famous grandfathered swamp cooler to the board and ACC and was never granted a hearing yet the violation notice was taped to my door each month and was unsigned by anyone. If the notice of violation is not signed by the entire ACC committee it is not valid and to be ignored by the accused member. If the ACC members are too big of cowards to sign a complaint they have to get off the board.

E. If the Board, after the Owner has been provided with at least 15 (30)days notice and the opportunity to be heard (within 30 days after the 30 day notice), determines the Owner, resident, guests or invitees have violated provisions of the Association's governing documents, the Board may suspend the Owner's voting rights, and the Owner's or resident's privileges to use the Common Element facilities for up to 30 days for each infraction; written notice of the suspension shall be provided to the Owner or resident. Once the violation has been corrected the members rights will be immediately restored.

F. the person charged with a violation responds requesting a hearing, a hearing shall be set and written notice of the date, time and place of hearing, together with a copy of the hearing procedures shall be provided to the accused. (To be held within 30 days or at the next scheduled board meeting.)

G. The hearing procedures shall be as follows: (Must be held under Robert's Rules Of Order as required by our Bylaws and if any of the following are in conflict with RRO then RRO will rule instead of the following: .

1. The Board, through its Chair, shall direct the proceedings at the hearing. The person charged, the person's representative, the other Members or residents may speak only after being recognized by the Chair.

2 The Chair will describe the specific provision of the declaration or rule or regulation, which is said to have been violated, including the date and place, or read the written complaint to the person charged.

3. The person charged shall be asked to admit or deny the charge. If a charge is made on a violation that is grandfathered as described in the CCIOA act it can’t be considered as a violation by the ACC or Board of directors. A Violation is grandfathered if the ACC did not cite the violation by issuing a notice of the violation for one year. Example Burneson’s swamp cooler has been in use during the summers for over 20 years. Cited by ACC last 6 years. ITS GRANDFATHERED. The person charged may speak for himself or may be represented by counsel throughout the hearing. Failure to respond or attend the hearing may be construed as an admission of the alleged violation.

4. If the charge is denied, the complaining witness or other witnesses having personal knowledge of the facts supporting the alleged violation shall be required to describe the details and circumstances giving rise to the violation of the Governing Documents at the hearing. Without witness the charges will be dropped.

5. The person charged shall have the opportunity to confront each witness who testified against him, and offer a defense to the actions or omissions giving rise to the alleged violation of the Association's Governing Documents.

6. When all complaining witnesses have been heard, the person charged may make statements in rebuttal, and may provide witnesses in support of that position. The Chair may ask questions of each such witness in turn.

7. The Board shall have the opportunity to question any witness or involved parties if it so desires.

8. At the conclusion of the hearing, the Board shall discuss the statements and vote whether or not the person charged violated the provisions of the Association's Governing Documents. A majority vote shall control.(with a quorum) The result of the vote shall be recorded in the minutes of the meeting, and announced to the person charged and the party or parties who filed the Complaint.

9. If the Board levies a fine,( Fines must be approved by the membership at an annual meeting for all general violations and must be posted in the newsletter and the Associations website. the Board shall provide written notice to the Owner of the fine and the date payment of the fine is due. In the event the Owner fails to pay the fine consistent with the notification, appropriate legal . action may be initiated by the Board of Directors to collect the fine.

10. The Board of Directors must use reasonable discretion in levying fines in accordance with the severity of the violation. The following is a schedule of the presumptive fine range for ordinary violations of the Governing Documents: The second through the Fourth cannot be charged during the time member is waiting for a scheduled hearing before the board.

First Violation a warning letter

Second Violation up to $25.00

Third Violation up to $50.00

Fourth and Subsequent Up to $100.00

4. Miscellaneous Provisions:

The Person obligated to pay the fine shall be the record Owner of real property subject to the Association's Governing Documents whether it is a natural person or a legal entity.

Continuing violations shall constitute a separate violation for each 24-hour period the violation exists. Poorly written when does the violation begin during the 1 to 4 levels of fines stated above.

Fines for violations of the governing documents will be imposed against the Owner and the real property subject to the Declaration Fines that were approved by the membership at an annual meeting. .

Any and all money collected from such fines may be deposited in the Association's general operating fund.

In the event the violation is of a continuing nature or if the violation constitutes a threat to the health, safety, or welfare of the residents or the property within the community, the Association acting through the Board of Directors may institute an action in a court of competent jurisdiction seeking injunctive relief to abate the violation without proceeding through procedures set forth in 3(D), 3(E), or 3(F) above. Nothing in this paragraph constitutes an election of remedies nor precludes the Board from levying fines as set forth above while at the same time seeking injunctive relief for violations of a continuing nature or violations that affect the health, safety, or welfare of the residents or the property.

In the event it is determined the Association was the prevailing party in the suit the Association shall be entitled to seek reimbursement of its costs including reasonable attorney fees, court costs, and other legal costs; conversely, if it is determined the Owner was the prevailing party, the Owner shall be entitled to reimbursement of the same expenses and costs.( As approved to be reasonable by the court)

In the event a Court of competent jurisdiction finds a provision of this Enforcement Policy void or otherwise unenforceable, the other provisions shall remain in full effect.

Procedure adopted this__ day of_____________ , 200_ by Resolution of the Board of Directors of The Dam East Homeowners Association.

by its

Notice of Violation

Date:

Your Name:_________

Your Address:______ Your Telephone Number: Your E-mail address:

Information regarding incident(s): (Please include as much information as possible.)

Name of person committing the alleged violation: Address of person committing the alleged violation:

Date(s) of alleged incident(s):_____________________________________ Please describe the incident(s) in as much detail as possible (use additional sheet(s) if necessary):

What statutes, covenants, or other rules were violated (please identify specific sections):

Did anyone else witness these incidents:_________________________ If the answer is "Yes," please state the witnesses' names, addresses and telephone numbers:

Must be signed by the ACC members all who voted to issue this violation and recorded in the minutes of the ACC meeting.

Please sign below: Date

Please send completed form to:

The Dam East Homeowners Association

Notice of Complaint

Notice of Complaint

Date:

Name:_____________________________________________

Address:__________________________________________

City/State/Zip:___________________________________

Re: Alleged Violation

Dear_________________

The following information has been brought to the attention of the Board of Directors: Information regarding alleged incident(s)

Date(s) of alleged incident(s):

If true, the alleged incident(s) violate the following statutes, covenants, bylaws, rules, regulations, policies, or procedures (include citations to specific provisions):

Pursuant to Colorado Revised Statute 38-33.3-302(1)(k) and the Associations policies this letter shall serve as written notice of the alleged violation of the provisions mentioned above. Violation(s) of the/these provision(s) may subject the Owner of real property within the community to fines which may also result in a lien against the real property subject to Colorado Revised Statute 38-33.3-316.

This letter shall also serve to allow you an opportunity to be heard with regard to the alleged violation(s) prior to the Board considering fines for the alleged violation(s).

In order to be heard by the Board of Directors you must respond to this notice of Complaint within 30 days of the date of this Notice of Complaint by completing, signing, and returning this form as set forth below.

The information regarding the alleged incident(s) is not accurate or the alleged incident(s) should not be a violation of the cited authority because:

This notice has to be signed by the Secretary and President of the Board of Directors.

Please sign below: Date

The Dam East Homeowners Association (% of Western States Property Services 10020 East Girard Avenue, Suite 175 Denver, CO 80231

You will be contacted in writing to be advised of the date, time, and location for the hearing, or in the alternative that no hearing is necessary and no fine will be imposed.

MEETING POLICY

The following policy was adopted by the Board of Directors of The Dam East Homeowners Association ("the Association") pursuant to Colorado law at a regular meeting of the Board. All meetings must be conducted under the rules of Robert's Rules Of Order, Regular and Annual meetings. This Policy statement does not have the authority to remove the requirements of Robert's Rules Of Order.

RECITALS:

A. Colorado Revised Statute 38-33.3-209.5(1)(b)(III) requires the Association to adopt a policy pertaining to the conduct of meetings. Our Bylaws has a policy to conduct meetings. Any efforts to change the Bylaws must state the Article and section being changed by this proposed procedure.

B. This policy is not intended to take the place of or invalidate provisions contained

in the Association's Bylaws or the Colorado Revised Nonprofit Corporation Act:

the policy is intended to incorporate provisions of Senate Bill 100 into the

Association's procedures for meetings of both the Members and the board.

THEREFORE, IT IS RESOLVED:

1. Meeting of the Members

Each meeting of the Members of the Association shall be called at least once per year in accordance with the provisions of the Colorado Common Interest Ownership Act ("the Act"), if applicable, if not then in accordance with the Association's Bylaws or operative sections of the Association's other governing documents. In the event the Association's governing documents are silent with respect to a specific issue, the provisions of the Colorado Revised Nonprofit Corporation Act will control.

Pursuant to the Act, special meetings of the Members may be called by the President, a majority of the Members of the Board, or by the Unit owners having 20% of the votes of the Association.

Notice of the meeting of the Members shall be delivered by hand or by U.S. Mail postage prepaid to each Member of the Association. The notice shall be addressed to the Member's Unit within the community unless the Member has designated another address in writing and delivered that request to the Association or its agent no less than twenty days prior to the record date applicable to that meeting of Members. The notice shall be delivered no less than 10 days, nor more than 50 days prior to the date of the meeting, and shall state the date, time, and location of the meeting as well as the items on the agenda, including matters to be approved by Members. The notice required for mailing of these policy provisions are in violation of this Notice of the Meeting of the Membership. A copy of this Proposed Procedure l must be mailed to all the members and not offered only if a written request is received as stated in the January newsletter. Post card notice doesn’t make it.

In addition to the delivery of the notice to the Members, the Association shall cause to be posted a notice of the meeting of the Members in a conspicuous place within the Community if feasible and practicable. If electronic means are available the Association shall provide notice to the Members via e-mail to those who request and furnish the Association with their e-mail addresses. Electronic notice of special meetings shall be given as soon as possible but at least 24 (25) days hours before meeting. Notice will also be made on the website of the association for all members to read. www.dameast.com

All meetings of the Members shall proceed on issues generally set forth in the notice required by Colorado Revised Statute 38-33.3-308 and in accordance with the written order of business unless a majority of Members in person or proxy vote to amend the written order of business. In the event a written order of business has not been produced for the meeting, the following order of business shall apply:

a) Call to Order

b) Proof of Notice of meeting or waiver of notice

c) Proof of Quorum

d) Offer to the membership to speak on issues they want the board or committee chairmen to review.

d) Reading of minutes of last Members' meeting, approval of same Copies of minutes to be provided all members present at the board meeting for their review. Many time the audience has a better remembrance of the past meeting and can offer corrections the minutes which the board must consider before granting approval. The minutes are not a secret from the membership.

e) Reports of Officers

f) Reports of Committees

g) Election of directors

h) Unfinished business

i) New business

j) Adjournment

All meetings of the Members shall be open to attendance by all Members of the Association or their duly appointed representatives. In the event the Board of Directors has the authority to suspend a Member's right to vote at the meeting, the Board must have provided that Member, with at least 15 days written notice, of the Board's intention to suspend the right to vote, and provide an opportunity for that Member to be heard, not less than five days prior to the suspension of the Member's right to vote. This is a joke. It can’t be done say just before an annual membership meeting in an effort to get a member. The board will try to hold a special meeting 5 days before the scheduled annual meeting. It will not happen and if it doesn’t the member’s right to vote will not be suspended because the member has the right to a hearing, which failed.

Notwithstanding the status of the Member's right to vote at a meeting of the Members, each Member, or a duly appointed representative, may speak at the appropriate time during the deliberations based on the reasonable time restrictions imposed by the Board. Reasonable time restrictions shall include the requirement that a reasonable number of persons are permitted to speak on each side of an issue before a vote is called for the issue. The Chair of the meeting shall have discretion to determine the appropriate time for the Members to speak, the reasonable time restrictions imposed on the Members right to speak, and the reasonable number of persons permitted to speak of each side of the issue. This is an open door for the Chair to restrict who speaks and for how long. Example at the January board meeting Rick Johnston was allowed to summarize his proposal herein that lasted over 40 minutes. I was allowed 2 minutes to speak without a copy of the proposal. That is just plain BS. If one side gets 40 minutes then the other side gets 10 minutes per each speaker to address the same subject for at least a total of one and a half hour. Individuals get time to discuss the issues even when the Chair doesn’t like what will be said.

Voting for positions on the Executive Board shall be taken by secret ballot and upon the request of one or more Members, the vote on any other matter affecting the Common Interest Community on which all other Members are entitled to vote, shall be by secret ballot. Ballots shall be counted by a neutral third party and by a Member who is not a candidate. If the ballots are to be counted by a Member, that person must be selected. randomly from a pool of two or more Members who are not candidates. The results of a vote by secret ballot shall be reported without reference to names, addresses, or other identifying information respective to the parties casting secret ballots.

Proxy voting shall proceed in strict compliance with Colorado Revised Statutes 7-127203, 1-127-204, and 38-33.3-310. Further, all proxy appointments shall be delivered by hand or U.S. Mail postage prepaid to the Secretary or designated agent no later than 72 hours prior to the date and time of the Members meeting.

In the event a quorum is not present for a meeting of the Members, an officer may adjourn the meeting to be reconvened at a later date and time provided the meeting is reconvened within 30 days and the location of the reconvened meeting is announced at the meeting prior to adjournment.

2. Board Meetings

Each meeting of the Board of Directors shall be called in accordance with the provisions of the Act if applicable, if not, then with the Association's Bylaws or operative sections of the Association's governing documents. In the event the Association's governing documents are silent with respect to a specific issue, the provisions of the Colorado Revised Nonprofit Corporation Act will control.

Meetings of the Executive Board shall proceed on issues as generally set forth in the agenda. The agenda will be made reasonably available to Members or their duly appointed representatives.

Unless the Executive Board is in executive session pursuant to subsection 308 of the Act, all meetings of the Executive Board or a committee thereof are open to attendance by all Members of the Association or their duly appointed representative.

Unless a majority of the Members of the (Board of Directors) Executive Board vote to allow Members to participate in deliberation or discussion, the Members other than Members of the Executive Board, may not participate in the meeting of the Executive Board. The members can be kept censored from expressing their opinion and must be allowed this freedom of speech to the board during regular meetings. Otherwise public board meetings are unnecessary. FREEDOM OF SPEECH MUST BE ENFORCE BY THE BOARD FOR ALL MEMBERS NOT JUST THE FRIENDS OF THE BOARD.

Notwithstanding the restriction placed on a Member's participation in a meeting of the Executive Board, Members or their duly appointed representative shall be afforded a right to speak before the Board takes formal action on an item under discussion. If THE MEMBERSHIP IS NOT ALLOWED TO SPEAK THEN THE BOARD CAN’T VOTE ON THE MOTION BEFORE THE BOARD.

The following procedure is intended to balance the Association's interest to promote the efficient administration of the Association's affairs and the Member's right to speak before the Board takes formal action on an item under discussion:

a. Board meetings shall follow appropriate parliamentary procedure and pursuant to the Association's governing documents. This requirement shall not mandate the strict adherence to the provisions of Robert's Rules

of Order, Wrong. Robert's Rules Of Order can be suspended only by a vote of the board and the members at membership meeting. One vote by anyone at the meeting can object and thus Robert's Rules Of Order will be required for the rest of the meeting. This statement by Rich Johnston does not have the authority to remove what Robert's Rules Of Order requires for a meeting. but rather facilitate the orderly administration of the business of the Association.

b. Members may participate in the meeting only by being recognized individually by the Chair of the meeting. Generally membership participation is scheduled after the meeting is called to order and before the minutes of any prior meetings are approved.

c. All Members attending the meeting who intend to speak in any fashion shall be required to sign the appropriate sign-in sheet for that meeting. Members shall be recognized in the order in which they sign in except upon special permission by the Board of Directors. To the extent that Members wishes to speak to specific issues on the agenda, those Members shall designate those issues on the sign-in sheet and indicate what side of each issue that Member will speak to.

d Members must wait to speak until recognized by the chair of the meeting.

e. Members must speak in a calm manner and conduct themselves with respect to all in attendance. This is another BS clause that can give the power to the Chair to stop a member from expressing his opinion see “The New York Times v Sullivan freedom of speech.

f. Members make their comments within the time allotted by the Chair of the meeting. The time allotted must be for more than two minutes since the Chair has no idea the amount of discussion the member needs to explain his viewpoint. The chair in the past has used the 2 minutes rule to censor a member’s viewpoint that the chair disagrees with. Freedom of Speech is the rule that allows the members viewpoint as provided by The New York times v Sullivan. It is the right of a citizen to express his viewpoint against the government, judges, and since a HOA is a form of government he/she can express a critical viewpoint that over rides the “fighting words” theory.

Robert's Rules Of Order over rules any of the efforts to give the chairman dictatorial powers to run meetings that prevent a minority opinion from being expressed in a monthly board meeting. “POINT OF ORDER” IS ALWAYS AVAILABLE TO A MEMBER WHO IS BEING DENIED HIS RIGHT TO SPEAK. THE CHAIR CAN NOT RULE A MEMBER OUT OF ORDER WHEN HE USES “Point of Order” to speak in a meeting. It has to be on the subject, brief and if to the point. May times it is to point out the chair has made a mistake in a voting porceedure.

The Chair of the meeting has the authority to enforce Robert's Rules Of Order not just this policy. This is a perfect example why Robert's Rules Of Order exist to prevent a chairman over running the membership for his own purpose and addenda. The failure to comply with this policy may result in the denial of the ability to speak at that meeting and may result in fines being imposed and/or the Member being removed from the meeting. The action of removing a member must be approved by a vote of the board. These provisions may be in addition to other specific provisions outlined in the Rules and Regulations, the Declaration, Bylaws or Articles of Incorporation of the Association. The Association may at any time pursue legal remedies, including filing a court action and seeking injunctive relief, or seek assistance from other enforcement authorities. All of the proceeding must be approved by the board by motion and vote. Not just the President Lawyer Jake Hummel.

In the event a Court of competent jurisdiction finds a provision of this Meeting Policy void or otherwise unenforceable, the other provisions shall remain in full effect.

Policy adopted this_ day of______ , 200_ by Resolution of the Board of
Directors of The Dam East Homeowners Association.

by______________________________ its

The entire following section is to be deleted. It is nothing more that a lawyers effort to hide the books. If this association can be run with the member’s rights to review the books as the Bylaws state then the Board of Directors are being truthful and are not hiding something the Board of Directors doesn’t what us to see. The board doesn’t represent the membership if they want to follow the procedures listed below. Would the membership want to hide the books NO? WHAT BENEFIT WOULD HIDING THE BOOKS BE TO THE MEMBERSHIP? NONE. The only benefit of hiding the books is to cover up something that is against the membership’s rights or money is misspent without the proper approval.

The books have not been reviewed by any member in over 4 YEARS. Secretary Hamel has not reviewed any of the books. Right now only the property manager knows what crimes may be committed in the books. NO ONE KNOWS WHAT FILES ARE MISSING OR ARE KEPT IN JEFFREY LANES OFFICE SO AN INSPECTION CAN’T REVIEW THEM. LAWYER RICH JOHNSTON HAS INCLUDED RULES IN THIS PROPOSAL THAT ARE TOTALLY ILLEGAL IN AN EFFORT TO COVER THE PAST BOARD’S WRONGFUL ACTIONS. THESE EFFORTS TO LEGALIZE A LAWYER AND THE BOARD’S WRONGFUL ACTIONS IS PROOF IN ITSELF HE KNOWS THEY WERE WRONG AND NEED THESE PROCEDURES PASSED BEFORE BURNESON SUES THE BOARD. We the membership allow Johnston to cover up the failures of the board to represent the membership (that’s you) and is trying to give cover to the board for their past mistakes. .

RECORDS INSPECTION POLICY

The following record inspection policy was adopted by resolution of the Board of Directors of The Dam East Homeowners Association ("the Association") pursuant to Colorado law at a regular meeting of the Board. (NOT YET. This is a catch all clause trying to say everything said in this proposal is by the law. This is not true. )

RECITALS:

A. Colorado Revised Statute 38-33.3-209.5(1)(b)(v) And the Bylaws which supersedes this Colorado Revised Statutes. provides that the Association shall adopt a policy for Members to inspect and copy the Association's records. We have a procedure in place which is our Bylaws and Covenants. The CCIOA act mention above is to be used if the HOA doesn’t have a procedure. The Bylaws say any member can inspect the books during regular business hours at the HOA Office. That’s it and all these pages are written to hide what the lawyer and property manager are doing to the membership.

B. The intent of this policy is to generally define (what records will be hidden) the types of records the Association maintains,(all records including all past lawsuits that are missing right now 165 cases. define the costs of copies, SB-100 say reasonable which is .05 cents a copy. Property managers will want to charge .30 cents to make a profit on copies. and provide a general procedure (to stop) the Members to inspect and copy records; it is not the intent to limit Members statutory remedies for record inspection. Johnston doesn’t need 6. pages to open the books to the membership but to close them.

THEREFORE, IT IS RESOLVED THAT:

The following policy shall apply to the inspection and copying of the Association's records:

1. Types of Records

The Association's Statutory Records shall consist of:

a. Financial records (all the records) sufficiently board decides what is sufficient detail which can be the summary statement printed in our newsletter that tells you nothing about legal fees paid)detailed to enable the Association to establish the amount of unpaid assessments, late fees, interest, fines and other legal charges for each Unit/Lot subject to the Declaration;

b. Minutes of meetings of the membership and minutes of meetings of the Board and committees of the Board as well as records of all actions taken by the Unit owners or the Board by written ballot Our Bylaws are very clear on what is required to be approved by the Board to be legal not something here called written consent. An Executive meeting of the board cannot vote to approve any action with is slipped in here which is wrong. or written consent in LIEU OF A MEETING Nothing can be approved in lieu of a duly held meeting open to the public with a quorum by a Motion and vote approving an action and a recording of the action must be in the minutes of the meeting or if not then the action was never approved. and any there is no waivers of notice of a duly held board meeting. Otherwise it is a secret meeting at one of the director’s house. waivers of notice of meetings of the Unit owners, the executive Board or committees of the executive Board; and Stop right here don’t go any farther until you read the following; In the past your board would cancel board meeting for many reasons using the excuse there wasn’t quorum. Our Bylaws state in two places that the treasurer and the Board of Directors must have approval to spend our money or approve an action of the Association. There is no waver of this requirement yet President Hummel lawyer has violated these requirements as follows: When a monthly board meeting is not held business is conduct without the Bylaws requirements of approval. Earl Johnson property manager will prepare checks for the Treasurer's and Presidents signature and they are mailed and paid without board approval. This is wrong and both Finn Larsen and Jake Hummel and Greg Silva will be held liable for all our money spent without proper board approval. This includes checks to Jeffrey Lane and all past lawyers employed by Dam East. Tim Moeller walked out of here as the attorney for our HOA with $65,000 after 3 years with no approval nor was he hired to represent the board. This proposal is a sham to try and make these past actions legal before I sue the association. Mr. Rich Johnston as Association attorney is in violation of Rule 1.13 as he is not representing the membership when he receives notice of wrong doings and fails to investigate and order the board to take action if found to be wrong. (This is grounds for Disbarment) . Why does he have this attitude? He and Tim Moeller are friends and worked together at the same law firm Winzenburg, Leff, Purvis & Payne That’s why Johnston will not require an investigation on his friend Tim Moeller.

c. Records of the name and address of each Unit Owner within the Community as well as each Unit owners voting power as established by the Declaration. There is no requirement to list any voting power in our Declaration.

In addition to the Statutory Records, the Association shall maintain a copy of each of the . following at its principal office:

d. Articles of Incorporation;

e. Bylaws;

f. Declaration including Covenants;

g. Policies, procedures, and rules and regulations;

h. Resolutions adopted by the executive Board relating to the characteristics, qualifications, rights, limitations, and objections of Unit Owners of the Common Interest Community;

i. Minutes of all Unit Owner's meetings, and records of all actions taken by the Unit Owners without a meeting, for the past three years. (SB 100 says all minutes and other records are to be kept forever and we have them from 1998 to the present which are now by law to be maintained as permanent records.

j. All written communication within the past three years to Unit Owners generally as Members; If the record exist keep them don’t throw them away to hide past lawsuits and Court Orders such as Judge Stuart and Judge Hickman’s Orders against this HOA.

k. A list of the names and business or home addresses of its current and Past directors and officers; and

I. A copy of its most recent annual report and financial statements, audits and review for periods ending during the last three years. All records from 1998 to the present because they exist.

m. Copies (Not the original)of all lawsuits of record from 1997 to the present which are designated permanent records. These record are intentionally missing by the lawyers who were paid by this Association to sue a member or when a member sued the Association and won. THIS LIST OF DOCUMENTS MUST BE EXPANDED FROM THE LIST PROVIDED ABOVE AT ANOTHER TIME BEFORE THIS PROPOSAL IS APPROVED.

2. Inspection Request

A Unit Owner, or a duly appointed representative, is entitled to inspect and copy the Association's records during regular business hours at the Association's principal office provided the Unit Owner delivers written notice to the Association at least five business days prior to the date the Unit Owner expects to inspect and copy the records. Further, if the Unit Owner seeks to inspect or copy the Statutory Records, the Unit Owner must:

a. Describe with reasonable particularity the records the Unit Owner wants to review; and There must be a list of approved reasons offered to the membership so the board can’t deny any reason to review all the records as a dodge to deny the request to review certain at the sole discression of the board. The list should be at least 20 reasons listed by a member that will allow approval. The simplest way to handle this question is to delete this paragraph.

b. (Duplicated in A above to be removed. Describe with reasonable particularity the purpose the Unit Owner has to want to review the statutory records.

3. Approval to Inspect Records

It is within the reasonable discretion of the Board of Directors, (No agent since the property manager does not have the authority on his personal likes or dislikes of a member. or an agent designated by the Board, to determine if the Unit Owner's written notice to inspect the Association's records is made in GOOD FAITH AND FOR A PROPER PURPOSE. Here again a list of reasons must be published that will be approved as good faith and for a proper reason In determining whether records may be inspected, or copied, the Board or its (no agent) agent shall consider among other things:

a. Whether the written notice is made, in good faith, to ascertain the condition of the Association; List provided as approved good faith.

b. Whether the inspection is for an illegal, or improper purpose, or for a purpose other than that stated in the written notice; List of legal reaons to be approved.

c. Whether the Unit Owner or the representative has improperly used information secured through a previous inspection of records; This is a catch all clause that could be used by a crooked board to deny the books claiming a certain record that was damaging to the board was improperly used. This paragraph must be removed.

d. Whether disclosure would violate a constitutional provision, a statutory provision, a Court Order, or public policy; Another catch all paragraph must be removed.

e. Whether disclosure may result in an invasion of personal privacy, breach of confidence or privileged information; This does not include denying the delinquency report as previously tried to be hidden from the membership because it shows the legal fees being collected by lawyers. A member of this Association has the right to know what is owed them (that’s right members are owed by delinquent members) and other membership organizations publish their delinquent lists of members on the front enterance of the Club’s bulletin board of County Clubs. Also if we published a delinquent list in our newsletter it would help in collecting from delinquent members without a lawyer getting any fees. Lawyers don’t like no cost tools of collection.

f. Whether disclosure would unreasonably interfere with or improperly disrupt the operation of the Association; and Catch all clause to be used for any reason by a crooked board. This must be removed.

Whether inspection results in private harm or damage that outweighs the right to access. Catch all clause for a crooked board to use to hide the books. This must be removed.

In the event the Board, or its agent, determines the Unit Owner's request is not consistent with the standards set forth above, or is not specific with respect to the particular records requested or the particular purpose for which the records are requested, the Unit Owner shall be given written notice of the defects of his written request as soon as practical. Catch all clause in part. Any notice of denying the records must be in detail and can’t be as a reason to denied any records that have been provided the membership in the past. Jim Burneson has been granted all the records by a court order and that means all the records must be allowed to be reviewed. The following must be added for the benefit of the membership. Any records found to be missing are to be notified to the secretary and an immediate effort is to be put forth to find the missing records. Example all IRS files must be complete including W 2s and 1099s. In the event these are missing a request must be made by the Secretary to IRS to send copies of these records as replacements.

4. Limitations on the use of the Association's Records

Without the consent of the Board of Directors, a membership list or any part thereof may not be obtained or used by any person:

a. For any purpose unrelated to a unit owner's interest as a unit owner; (What is to be considered unrelated to a units owner’s interest? Must be defined by a list of interests that would allow the records to be used. T

b. To solicit money or property unless such money or property will be used solely to solicit the votes of the unit owners in an election to be held by the Association; How does money and property get confused with solicit votes?

c. For any commercial purpose;

d. To be sold to or purchased by any person or entity; or

The Association may pursue actions for damages or injunctive relief or both for any violation of the limitations set forth above, and seek reimbursement of all costs, including attorney fees and costs. This is a clause that is music to a lawyers ears. This paragraph must be rewritten to delete or state which paragraphs are included above.

5. Miscellaneous Provisions

The Unit Owner's request should be made on the Association's Notice of Intent to Inspect and Copy Association Records form, but in any event, the request to inspect and copy the statutory records must be made in good faith for a purpose and the records requested must directly relate to the particular purpose described as well as the Unit Owner's interest. REDUNDANT NEEDS TO BE REMOVED.

Wrong this is an effort to deny the records by charging a fee too high and can be used to by a crooked board as an excuse not allow the books to be reviewed. No one knows what the cost will be of copies before the books are reviewed. The cost cannot exceed .05 cents a copy as that is the cost of maintiance of a copy machine which can be reduced by increasing the numbers of copies made. A member has the right to bring his own copy machine to the office and make all his copies at his own expense. This will not cause a burden to the Management company or the HOA. The Association may charge a fee in advance for the estimated amount to copy the records not to exceed the Association's actual cost per page, including services to prepare the records for review, (prepare the records is not a cost of a member since the HOA must maintain the records ready for inspection at all times. This is an on going expense of an HOA with or without inspections by the membership. to oversee the Owner's inspection, and The member is responsible for making copies of all records he deems necessary and not cause an expense to the HOA for his/her inspection. to prepare the requested copies of the Association's records. This possibility would only occur if the request comes from a lawyer and that would need to be negotiated at that time. In the event a Unit Owner's request will result in review and/or copying of voluminous documents, the Association may break the inspection into several sessions to reasonably accommodate the staff at its principal office. This can be used to delay the reproduction of documents by the claim of the management company they don’t have time for several weeks or longer as a delay actions of providing records. I have been denied a review of the records because Earl Johnson wasn’t available for weeks. Johnson has 40 HOAs under management and none of this commitment to other HOAs can interfere with a members right to inspect the books. No staff member has any function during an inspection of the books except to answer questions about the copy machine or where is are the missing records. At an inspection Johnson doesn’t participate in the process at all. So why is he used as an excuse to stop an inspection? Oh that’s right he never works on Friday and so our Association can not function on Fridays because of his work schedule.

Absent a court order from a Court of competent jurisdiction, the Unit Owner shall not be authorized to inspect or copy any confidential communication including but not limited to: a) documents subject to the attorney/client privilege; ( Client privilege must be defined and does not include lawsuits that are completed and closed. The membership has the right to review all past lawsuits of record. These records have to be available which they are not. b) documents subject to privilege imposed by Federal or state law, or by court order; and c) documents that contain information that if disclosed would constitute an invasion of personal privacy (examples include, but are not limited to social security numbers, medical evaluations, employment information, personal bank account or personal financial information).

Careful scrutiny will be employed by the Board for requests to review records pertaining to other Unit Owners' accounts with the Association. Delinquent reports are not private documents between the membership.

In the event a Court of competent jurisdiction finds a provision of this Records Inspection Policy void or otherwise unenforceable, the other provisions shall remain in full effect.

Policy adopted this day of_____________ , 200 by Resolution of the Board of Directors of The Dam East Homeowners Association.

By___________________________________

Its ___________________________________

NOTICE OF INTENT INSPECT ASSOCIATION RECORDS

This Notice of Intent to Inspect Association Records shall be completed pursuant to the Resolution, Records Policy for Inspection of Records, adopted by the Board of Directors of The Dam East Homeowners Association on_______ , 2005.

Date of this Request: _______________ , 200_

Date you or your agent intends to review the records: _____ , 200_

Person(s) requesting the review of the Association's records: _______

Person(s) who will be present for the review of the Association's records:

Please note that all actual costs of inspection and any authorized copies must be paid in advance by the person requesting them. This clause is void and to be removed

This is to be removed Specify with particularity the records requested for this review. Please include type of record, date of record, any specifics that will identify the information you seek to review.