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FRANSSON FARMS
OWNERS GUIDE | RULES & REGULATIONS
RULES & REGULATIONS
COLLECTION POLICY
This Association is responsible for the operation and maintenance of the portions of the community owned by the Association. In order to carry out this responsibility, the Association assesses each owner as required by the governing documents and the laws of the State of Washington. These assessments are informally known as homeowner dues. The common expenses are based on the Association’s projection of the expense necessary to conduct its activities as set forth in the budget adopted by the Association. It is necessary to ensure that all owners pay their assessments promptly so that sufficient funds are available to fulfill the Association’s obligations to all its members. Failure of any owner to promptly pay assessments results in additional burdens on all owners. It is, therefore, this Association’s policy to take such steps as are necessary to ensure compliance by owners with their obligation to promptly pay assessments levied by the Association.
SECTION 1 | ASSESSMENTS
Assessments are based on the budget adopted by the Association, and are due on the first day of January, April, July, and October. Assessments include all sums chargeable by the Association against a Lot including, without limitation, regular and special assessments, conditional assessments (see Section 7.5 of the Declaration), charges and fines levied by the Association, interest and late charges on any delinquent account, and costs of collection, including reasonable attorneys' fees incurred by the Association is collected with the collection of a delinquent Owner’s account. Accounts are delinquent if payment in full is not received by the fifteenth of the month in which the payment is due.
SECTION 3 | ADMINISTRATIVE FEES
Administrative Fees are in addition to Late Fees and include specific administrative or service fees and costs such as the preparation and mailing costs of a delinquency notice, a bank charge for a dishonored check, an account monitoring fee, and a credit card processing fee. Should the Association incur Administrative Fees associated with an owner’s account it may assess that owner those Administrative Fees.
SECTION 4 | INTEREST
As provided in the governing documents, assessments not paid by the fifteenth of the month accrue interest from the date of delinquency at the greater of 12% per annum or the highest rate permitted by State law.
SECTION 5 | ATTORNEYS' FEES & COST
As provided in the governing documents, should the Association be required to use the services of legal counsel and should the Association incur costs in the collection of delinquent assessments, the delinquent owner shall be responsible for all attorneys' fees and costs incurred.
SECTION 6 | APPLICATION OF PAYMENT
Payments made by a delinquent Owner toward a delinquent debt are applied as follows: first to interest accrued; then to late fees; then to administrative fees; then to any other costs and reasonable attorney’s fees incurred in collection; then to fines; and lastly to specific assessments and budgeted special and periodic assessments. The Association may change the order in which payment are applied if it determines that such a change is in the Association's interest. This policy regarding Application of Payment does not require the Association to change how it applies payments in its standard bookkeeping practice.
SECTION 7 | RESTRICTIVE ENDORSEMENTS
Notwithstanding any restrictive endorsement, designation or instruction placed on or accompanying a payment, the payment shall be applied as indicated above.
SECTION 8 | OWNER'S RESPONSIBILITY
Each Owner has the responsibility to pay so that the payment arrives on or before the date the payment is due.
SECTION 9 | COLLECTION STEPS
The following steps are those the Association will typically take in collecting an unexcused delinquency. The Association is neither required to take these specific steps nor must it adhere to these specific time frames. The Association may evaluate each delinquency on a case-by-case basis and determine which steps and what timing it believes will best achieve the payment of delinquent assessments:
DAY 15
Late fee assessed and statement to Owner.
DAY 45
Letter to Owner requesting prompt payment.
DAY 75
Matter Referred to Association's legal counsel.
DAY 85
Claim of Lien prepared and recorded; demand letter from legal counsel to owner.
In the event of continued non-payment after affording the Owner an opportunity to respond to the demand letter, legal counsel may commence suit, begin foreclosure proceedings against the Owner and the Lot, and take such other action permitted by the governing documents and the laws of the State of Washington. It is the intention of the Association to follow the above procedure and owners are strongly encouraged to make payments promptly to avoid additional costs and legal action. Once referred to legal counsel, all contacts regarding a delinquent account with a delinquent owner shall be handled through the Association's attorney. The attorney shall have authority to settle the collection of the account directly with an owner after it has been turned over to the Association's attorney. The Association reserves the right to vary from the policy adopted above where particular circumstances warrant such deviation in the reasonable business judgment of the Association or its legal counsel.
SECTION 11 | LIEN AND HOMESTEAD PROTECTION
In the event of continued non-payment after affording the Owner an opportunity to respond to the demand letter, legal counsel may commence suit, begin foreclosure proceedings against the Owner and the Lot, and take such other action permitted by the governing documents and the laws of the State of Washington. It is the intention of the Association to follow the above procedure and owners are strongly encouraged to make payments promptly to avoid additional costs and legal action. Once referred to legal counsel, all contacts regarding a delinquent account with a delinquent owner shall be handled through the Association's attorney. The attorney shall have authority to settle the collection of the account directly with an owner after it has been turned over to the Association's attorney. The Association reserves the right to vary from the policy adopted above where particular circumstances warrant such deviation in the reasonable business judgment of the Association or its legal counsel.
DECLARATION
ARTICLE 1 | INTERPRETATIONS
SECTION 1.5.3 | ASSESSMENTS
Assessments shall mean all sums chargeable by the Association against a Lot, including, without limitation: (i) Initial Assessments, Annual Assessments and Special Assessments, as defined in Article 7 (ii) Special Assessments against an Owner for work done on the Owner's Lot (iii) Conditional Assessment for the benefit of Native Growth Protection Areas, as described in Section 6.11 (iv) fines imposed by the Association (v) interest and late charges on any delinquent account (vi) costs of collection, including reasonable attorneys' fees, incurred by the Association in connection with the collection of a delinquent Owner's account
SECTION 1.5.18 | NOTICE & OPPORTUNITY
Notice and Opportunity shall mean the procedure wherein the Board shall give written notice of the proposed action to all Owners, tenants, or occupants of Homes whose interest would be significantly affected by the proposed action. The notice shall include a general statement of the proposed action and the date, time and place of the hearing, which shall be not less than five (5) days from the date the notice is delivered by the Board. At the hearing, the affected person shall have the right, personally or by a representative, to give testimony orally, in writing or both (as specified in the notice), subject to reasonable rules of procedure established by the Board to assure a prompt and orderly resolution of the issues. Such evidence shall be considered in making the decision but shall not bind the Board. The affected person shall be notified of the decision in the same manner in which notice of the meeting was given.
ARTICLE 4 | MANAGEMENT OF THE ASSOCIATION
SECTION 4.3.1 | ASSESSMENTS
To levy, collect, and enforce the collection of: Assessments, as more particularly set forth in Article 7 hereof, to defray expenses attributable to carrying out the duties and functions of the Association hereunder.
ARTICLE 7 | ASSESSMENTS
SECTION 7.2 | INITIAL ASSESSMENT
Upon the sale of each Lot by the Declarant, each Owner, at the time of his/her purchase of the Lot, shall pay an initial start-up assessment to the Association in the amount of Two Hundred Dollars ($200.00) (the "Initial Assessment"). The Initial Assessment shall be in addition to any other Assessment provided for in this Article 7 and shall be for the purpose of reimbursing the Declarant and/or Association for maintenance and operating expenses of and for the Common Area during the Declarant Control Period. The Declarant shall not be subject to or liable for any Initial Assessments assessed or due so long as Declarant owns any Lot.
SECTION 7.5 | CONDITIONAL ASSESSMENTS
Each Lot may be subject to periodic assessments of charges levied by the Board for the benefit of Marshland Flood Control District ("Marshland") to offset any increase in Marshland's operating costs and expenses attributable to increased surface water runoff, increased siltation, or increased electricity costs of pumping water caused by acceptance of surface water runoff generated by the Property ("Conditional Assessment"). The amount to be assessed against each Lot shall be determined by Marshland in accordance with applicable law; provided, however, that any such Assessment shall be in an amount equal to any surface water assessment then levied against such Lot by Snohomish County, less the normal administrative costs of levying and collecting the Conditional Assessment; and provided further, that Marshland shall not be entitled to any Conditional Assessment from any Lot or Owner unless and until Snohomish County has ceased making payments to Marshland for Marshland's management of surface water runoff from the Property, as such payments are currently made pursuant to an inter-local agreement between Marshland and Snohomish County, as authorized by RCW 39.34.
SECTION 7.7 | MANNER AND TIME OF PAYMENT
Assessments shall be payable by each Owner in such reasonable manner as the Board shall designate. Any Assessment or installment thereof which remains unpaid for at least fifteen (15) days after the due date thereof shall beat interest at an annual rate of twelve percent (12%), and the Board may also assess a late charge in an amount not exceeding twenty-five percent (25%) of any unpaid Assessment which has been delinquent for more than fifteen (15) days. The Assessment shall also be subject to any attorneys' fees and costs incurred in the collection of the Assessment, whether or not a lawsuit, arbitration or other action shall be commenced.
SECTION 7.11 | CURING OF DEFAULT
The Board shall prepare and record a satisfaction and release of the lien for which a claim of lien has been filed and recorded in accordance with this Article upon timely payment or other satisfaction of all delinquent Assessments, and all other Assessments which have become due and payable following the date of such recordation with respect to the Lot as to which such claim of lien was recorded, together with all costs, late charges and interest which have accrued thereon. Prior to the preparation and recordation of the satisfaction and release of such lien, an additional administrative fee covering the cost of preparation and recordation of such satisfaction and release, including, without limitation, reasonable attorneys' fees, shall be paid to the Association prior to such action. The satisfaction of the lien created by the claim of lien shall be executed by the president or treasurer of the Association or by any authorized representative of the Board. For the purposes of this Section 7.12, the term "costs" shall include costs and expenses actually incurred or expended by the Association in connection with the cost of preparation and recordation of the claim of lien and in efforts to collect the delinquent Assessments secured by the lien and a reasonable sum for attorneys' fees.
ARTICLE 8 | LIEN & COLLECTION OF ASSESSMENTS
SECTION 8.2 | LIEN
Assessments, together with interest, costs, late charges and reasonable attorneys' fees, shall be a charge on the land and shall be a continuing lien upon the Lot against which each Assessment is made. In the event any Assessment or installment thereof remains delinquent for more than thirty (30) days, the Board may, upon fifteen (15) days prior written notice to the Owner of such Lot of the existence of the default, accelerate and demand immediate payment of the entire Assessment. The amount of any Assessment assessed to any Lot plus interest, costs, late charges and reasonable attorneys' fees, shall be a lien upon such Lot. A claim of lien may be recorded in the office where real estate conveyances are recorded in Snohomish County. Such claim of lien. may be filed at any time at least fifteen (15) days following delivery of the notice of default referred to above. The lien for payment of such Assessments and charges shall have priority over all other liens and encumbrances, recorded or unrecorded, limited as provided in Section 1.1. Suit to recover a money judgment for unpaid Assessments shall be maintainable with or without foreclosure or waiver of the lien securing the same. See Article 11 regarding priority of liens.
SECTION 8.3 | FORECLOSURE OF ASSESSMENT LIEN | ATTORNEYS' FEES & COST
The Declarant or Board. on behalf of the Association, may initiate collection action to foreclose the lien of any Assessment. In any action to foreclose the lien of delinquent Assessments, any judgment rendered in favor of the Association shall include a reasonable sum for attorneys' fees and all costs and expenses reasonably incurred in preparation. for or in the prosecution of said action (including in any arbitration, on appeal, and in any bankruptcy proceeding), in addition to taxable costs permitted by law.
SECTION 8.5 | PERSONAL OBLIGATIONS
Each Assessment, together with interest, costs, late charges, and reasonable attorneys' fees, shall also be the joint and several personal obligations of each Owner of the Lot at the time when the Assessment fell due. The personal obligation for delinquent Assessments shall pass to successors in title if the lien for such delinquent Assessments had been properly recorded prior to title transfer or unless expressly assumed by them. Provided, however, that in the case of a sale of any Lot which is charged with the payment of an Assessment or Assessments payable in installments, the person or entity who is the Owner immediately prior to the date of any such sale shall be personally liable only for the amount of the installments due prior to said date. The new Owner shall be personally liable for installments which become due on and after said date. No Owner may avoid or escape liability for Assessments provided for herein by abandoning his/her Lot.
SECTION 8.6 | RECOVERY OF ATTORNEYS' FEES & COST
In any action to collect delinquent Assessments, the prevailing party shall be entitled to recover as part of its judgment a reasonable sum for attorneys' fees and all costs and expenses reasonably incurred in connection with the action, in addition to taxable costs permitted by law.