RULES REGULATIONS PREPARED FOR THE PASEOS ASSOCIATION · has the power to revise these rules,...

THE PASEOS ASSOCIATION

RULES & REGULATIONS

PREPARED FOR

101553324.2 The Paseos 20838-01231 Association Rules

FINAL: July 22, 2011

101553324.2

A: Delinquency Policy B: Enforcement Policy C: Fine Schedule

Exhibits:

SECTION 19 DISCLAIMER 28

SECTION 18 PRIVACY POLICY FORM 27

SECTION 17 PRIVACY POLICY 26

SECTION 16 ELECTION RULES 24

SECTION 15 PROCEDURE FOR OWNER HEARING 23

SECTION 14 RULES AND VIOLATION REPORT 22

SECTION 13 INTERNAL DISPUTE RESOLUTION POLICY. 20

SECTION 12 STORM DRAIN WATER RUN-OFF POLICY 19

SECTION 11 NEIGHBOR TO NEIGHBOR DISPUTE POLICY 18

SECTION 10 RECREATIONAL FACILITY ACCESS .17

SECTION 9 TOT LOT RULES 16

SECTION 8 PARK RULES 15

SECTION 7 POOL/SPA RULES 12

SECTION 6 SIGNAGE I DECORATIVE FLAGS RULES 9

SECTION 5 PET RULES 8

SECTION 4 PARKING RULES 6

SECTION 3 TENANT/USE OF HOME RULES AND REGULATIONS 5

SECTION 2 GENERAL RULES 3

SECTION 1 MEMBERSHIP INFORMATION & DEFINITIONS .1

TABLE OF CONTENTS

IO l 5 53324.2 The Paseos 20838-01231 Association Rules

The purpose of the Paseos Association ("Association") is to operate, manage and maintain the Paseos Community for the benefit of the Owners. The Board governs the Association, and meets regularly to make decisions pertaining to those matters for which the Association is responsible. Owners will be notified of the date, time and location of all meetings of the Members and the Board. If you are interested in becoming involved in the Association, please contact the Property Management Company.

P ASEOS ASSOCIATION

Paseos Association c/o Keystone Pacific Property Management, Inc. Phone: (951) 491-6866 Fax: (951) 491-6864

Please read these Association Rules carefully, and be sure your family, guests and tenants fully understand and follow the rules, regulations and guidelines set forth below. If you have questions, please contact the Management Company ("Management Company" or "Property Management Company"):

These Association Rules constitute the "Association Rules" contemplated by the Declaration. All Owners, tenants, residents and their guests are required to follow these Association Rules for the good of the Community and its well-being of its residents.

These Association Rules are subject to the Declaration of Covenants, Conditions and Restrictions of The Paseos ("Declaration"), Articles of Incorporation of Paseos Association ("Articles") and Bylaws of Paseos Association ("Bylaws") ( collectively, the "Governing Documents"). The Board has the power to revise these rules, regulations, and any guidelines, policies and procedures set forth in these Association Rules from time to time. If you would like to contribute suggestions for these Association Rules, please submit them to the Management Company for consideration by the Board.

Paseos is a residential condominium community. Because community living relies on the mutual cooperation of all to be successful, The Paseos Association ("Association") created these rules and regulations ("Association Rules"). Inside you will find practical rules, regulations and guidelines that are intended to help foster a harmonious, enjoyable and safe environment for all residents of Paseos. These Association Rules contain basic guidelines that, if observed, help ensure that the grounds of Paseos remain in good condition and that neighbors treat each other with respect and consideration.

INTRODUCTION

SECTION 1 MEMBERSHIP INFORMATION & DEFINITIONS

THE PASEOS ASSOCIATION A PLANNED COMMUNITY

2 101553324.2 The Paseos 20838-0123 I Association Rules

These Association Rules are in addition to the restrictions set forth in the Declaration and other Association Documents. Owners must comply with all of the restrictions.

ASSOCIATION GOVERNING DOCUMENTS

If there is a conflict between these Association Rules and the provisions of the Governing Documents, the more restrictive provisions shall control.

CONFLICTS

If any provision of these Association Rules is held to be invalid, the remainder of the provisions shall remain in full force and effect.

SEVERABILITY

Please note that, throughout these Association Rules defined terms are used, identifiable by their initial capital letters. Except as the context otherwise requires, these defined terms have the same meaning as set forth in the Declaration. As used in these Association Rules, the term "Resident" refers to both a Residential Owner and a Lessee of a Condominium, but notwithstanding such use of the term Resident, each Residential Owner remains responsible for any violation of the Association Rules by such Residential Owner's Lessee. It is each Residential Owner's responsibility to ensure that any and all Lessees of such Residential Owner's Residential Condominium are provided a copy of the Governing Documents, including the Association Rules (as they may be amended from time to time) and that such Lessees comply with all of the Association Governing Documents.

DEFINED TERMS

To report problems related to the Association Property (such as landscape, sewer, street problems, etc.), please contact the Property Management Company.

Association Rules The Paseos 20838-01231

3 101553324.2

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Washing, hosing or rinsing of driveways, sidewalks or hardscape into the street. Washing, hosing or rinsing of vehicles into the street. Washing, hosing or spilling of any hazardous materials into the street.

•

2.6 Storm Water. The community is subject to all federal, state and local requirements of the National Pollutant Discharge Elimination System ("NPDES") adopted pursuant to the Federal Clean Water Act. No Owner may dispose of hazardous waste, substance or material into any storm drain or other drainage device located anywhere within the community. Owners are required to add sandbags to their yard area as necessary to prevent any storm water/mud run-off from their Condominiums to the Association Property, both pre and post-construction. Owners shall maintain and replace sandbags as necessary until yard installation is complete. The following are prohibited:

2.5 Hazardous Materials. No hazardous waste, substance or material shall be stored or permitted upon any portion of the community, except in compliance with all applicable laws, ordinances and regulations of all applicable Governmental Agencies.

2.4 Trash. Each Owner shall place all rubbish, trash, garbage, waste and recyclable material in closed containers approved by the applicable Governmental Agency. Such containers shall be exposed to view of neighboring residences only when set out for a reasonable period of time (not to exceed twelve (12) hours before and after scheduled trash collection hours). If containers are behind a side gate that is not solid, the side gate shall be modified, after approval by the Architectural Committee, so that items behind the side gate cannot be seen.

2.3 No Nuisance. No Owner shall permit or allow any activity to be performed or any material of any kind to be kept within or upon his/her residences which will obstruct or interfere with the rights of quiet enjoyment of the other occupants in the community, or annoy them by unreasonable noises or otherwise, nor will any Owner commit or permit any nuisance on his/her residences.

2.2 No Increase to Rate oflnsurance. No Owner shall keep any materials of any kind or allow any activities to be conducted on his/her Condominium or on Association Property which will increase the rate of insurance for the Association or will result in the cancellation of insurance or be in violation of any law. If, by reason of the occupancy or use of said premises by the Owner, the rate of insurance on Association Property shall be increased, the Owner shall become personally liable for the additional insurance premiums.

2.1 Use of Common Area Association Property. Use of Common Area and Association Property shall be subject to the provisions of the Declaration and the Association Rules, and to any limitations imposed by any other Association Documents.

SECTION2 GENERAL RULES



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2 .16 Outside Drying or Laundering. No exterior clothesline shall be erected or maintained or hung within any Condominium ( excluding the Residence) and there shall be no exterior drying or laundering of clothes, towels or any other items on Association Property.

2.15 Antennas and Signs. Owners shall have the right to install antennas or signs in accordance with the provisions of the Declaration and the Architectural Guidelines.

2.14 Window Coverings. Window coverings and exterior sun shades are addressed in the Architectural Guidelines.

2.13 Waste. All trash and waste must be disposed of properly.

2.12 Maintenance. Residents shall maintain and repair their home, property, yard and any improvements thereon in good condition and as further outlined in the CC&R's. Please refer to the Maintenance Matrix included with your Welcome Packet if you have questions concerning maintenance responsibilities. Residents are also obligated to maintain your Condominium in accordance with the Owner Maintenance Manual.

2.11 No Obstruction. Obstruction of the Association Property or Association Maintenance Areas throughout the Community is not permitted. No one may store anything in the Association Property. The Association will not be responsible for any damage to, or loss of, any personal property left in any Association Property.

2.10 Firearms. Firearms are not permitted to be fired in the community at any time.

2.9 Roller Blades. Roller blades, skates, skateboards, motorized scooters, off-road vehicles and the like shall not be used in the Association Property.

2.8 Alterations. All exterior alterations must be approved by the Architectural Committee in writing prior to commencement of said project. See Architectural Guidelines for further explanation.

2. 7 .3 Lights. All holiday lighting must have a "UL" or comparable rating. Outdoor lights must be designed for outdoor use. Please ensure that lights do not disturb other Owners.

2.7.2 Location. No Owner may place holiday decorations within the Association Property.

2. 7 .1 Acceptable Timeframe. All decorations are permitted up to 30 days prior to the holiday and must be removed within 10 days after the holiday. All holiday decorations celebrating holidays in December and January may be placed from Thanksgiving and removed by January 15 of each year. Homeowners should be considerate of neighbors when decorating for holidays.

2.7 Holiday Decorations. Holiday decorations are permitted as follows:

5 I 01553324.2 The Paseos 20838-01231 Association Rules

3. 7 Offices. Any Owner of a residence in the community may maintain a home-office and conduct business activities there from in accordance with the Declaration, Section 7.2.

3 .6 No Use of Facilities During Rental. Owners who choose to rent/lease or otherwise allow another person( s) to utilize their home shall forfeit their rights to use the Association Property and Common Area and any recreational facilities that might be available. Rights for use of the Association Property and Common Area and any recreational facilities shall transfer to the Tenant. Except as superseded by any applicable law or ordinance (such as the operation of a daycare), or as otherwise provided in the Declaration, no Residence shall be used in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storage, vending or other nonresidential purposes.

3 .5 Single Rentals. Single rooms may not be rented out. Any rental or lease agreement shall encompass the entire home.

3 .4 Rental of Guest Units. The rental of any guest or caretaker units or detached areas of the main home ( except to family Owners of the Owner of the respective Lot upon which such unit is located) is expressly prohibited.

3.3 Written Lease. All rental and lease agreements shall be in writing and shall provide that the terms of such agreement shall be subject in all respects to the provisions of Association Documents, and that any failure by the tenant or lessee to comply with the terms of the Association's Documents shall constitute a default under such agreement.

3.2 Lease Terms. No Owner may rent or lease his/her Dwelling for transient or hotel purposes or for a period of less than sixty (60) days.

3.1 Responsibility for Tenants. The Owner shall have the responsibility to acquaint their Tenants and Guests with the Association Rules of the Association. Owners are responsible for all actions of their Tenants, Guests and Guest of their Tenants.

SECTION3 TENANT/USE OF HOME RULES AND REGULATIONS



6 101553324.2

4.11 Compliance With Laws. Residents must obey all laws as defined by California Vehicle Code when operating a vehicle in the community.

4.10 Vehicles Blocking Access. Vehicles parked in a shared driveway, courtyard, or in manner which blocks another's access to their driveway or garage may be towed at the Owner's expense.

4.9 Stored Vehicles. Stored Vehicles as defined by California Vehicle Code shall be towed at the Owner's expense.

4.8 Vehicles Parked in Association Pronertv. Vehicles parked in the Association Property longer than 72 hours will be considered stored and may be towed at the Owner's expense.

4.7 Parking Lots. Parking is prohibited in facility parking lots (if applicable to your community) from the hours of 11 :00 PM- 5 :00 AM, except for authorized events. Owner shall be responsible for parking violations of Tenants and guests.

4.6 Garage Doors. All garage doors shall remain closed at all times, except as reasonably required for entry to and exit from the garage.

4.5 Major Repairs. No Owner shall conduct major repairs to any vehicle of any kind whatsoever within the Community, including on his/her residence, on any public street or elsewhere in the community, except for emergency repairs thereto and then only to the extent necessary to enable the vehicle to be moved to a proper repair facility. No person may carry on in any portion of the community any vehicle repair, maintenance or restoration business.

4.4 Storage in Garages. If an Owner has fewer vehicles than garage parking spaces, such unused space(s) may be used for the storage of goods or other permissible use so long as the garage door remains closed at all times ( except during entry or exit from the garage) so that the stored goods or other use are not visible to other residents within the community.

4.3 Parking Restrictions in Declaration. Residents shall adhere to all parking restrictions as found in Section 7.9 of the Declaration.

4.2 Fire Lanes. No parking shall be permitted along any portion of a street designated as a fire lane or "No Parking" zone. Vehicles found parked in a fire lane or "No Parking" zone shall be towed at the Owner's expense without notice.

4.1 Curbside Parking. All streets within the community are private streets. Curbside parking along the streets in the community may be restricted.

SECTION 4 PARKING RULES


7 101553324.2 The Paseos 20838-01231 Association Rules

4.17 Alleyways. All Residents and guests are prohibited from parking within the Alleyways.

4.16 Notification to Tenants. Each Owner is responsible for advising their Tenant and Guests of the parking regulations.

4.15 Restrictions on Car Washing. Car Washing is strictly prohibited.

4.14 Conversion of Garages. Garages may not be used for office space, workshops or converted for living, recreational activities or businesses.

4.13 Parking on Exterior Spaces. Vehicles that are too large to fit into a garage may not be parked in guest parking or other parking areas, unless parking is designated as open for first come- first serve.

4.12 Initial Move-Ins and Clear Out of Garages. Residents shall have forty-five (45) days from close of escrow/start of lease to clear out garages for the parking of vehicles inside the garage as required by the Declaration and these Association Rules.


5.8 No Pets in Recreational Facilities. No animals, including dogs, cats, birds and other domesticated animals, are permitted in recreational facilities at any time.

5.7 Animal Control. Problems associated with animals, including noise disturbances and defecation must be directed to Animal Control.

5.6 Liability for Pets. Every person keeping an animal within or bringing an animal into the community shall be liable pursuant to the laws of the State of California to any and all persons for any injury to persons or damage to property caused by such animal.

5.5 Nuisance Pets. The Board shall have the right to prohibit maintenance of any animal within the community (including any common domesticated household animal or any previously approved exotic animal) which, in the opinion of the Board, constitutes a nuisance to any other person.

5.4 Pet Enclosures. All animals must be kept either within an appropriate enclosure or the yard or patio or, when outside of the Residence, on a leash held by a person capable of controlling the animal. Barking dogs kept within patios or balconies or any other excessively noisy animal that disturbs the quiet enjoyment of any Resident will not be tolerated.

5.3 Clean-Up of Pet Waste. Each Owner shall be responsible for cleaning up any excrement or other unclean or unsanitary condition caused by his/her animal( s) anywhere within the community. Owners shall also keep their residence and yard area, including balcony/deck in a clean and sanitary condition at all times.

5.2 Compliance With Requirements. In all cases, animals may only be kept in accordance with applicable City/County ordinances and codes, and may not be kept, bred or maintained for any commercial purpose or in unreasonable numbers as determined by the Board, from time to time.

5 .1 Limitation on Number of Pets. Only domestic animals that are kept as household pets and are not kept, bred, or raised for commercial purposes are permitted to be maintained within the Community. No Owner shall keep more than a total of two (2) domestic dogs or two (2) domestic cats, or a combination thereof (but not to exceed two (2) total) with such Owner's Condominium.

SECTION 5 PET RULES

THE P ASEOS ASSOCIATION


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6.6.1 Size of Open House Signs. The total sign area of any "open house" sign shall be contained within a 14 W' x 14 Yz" square area and must be professionally prepared on

6.6 Open House Signage.

6.5 Removal of Signage Upon Sale or Lease. After a property has closed escrow or a lease has been executed, the sign must be removed within fifteen (15) days.

6.4 Additional Signage. Only one additional "rider" sign showing the word "Sold" is permitted.

6.3 .4 The sign is subject to review for color and style by the Architectural/Design Review Committee.

level; and 6.3 .3 The top of the sign is not more than five (5) feet in height above the ground

6.3 .2 The sign must be attached to the ground by a conventional, single vertical stake which does not exceed two inches (2") by three inches (3") in diameter. Posts, pillars or hang man type signs are not permitted;

size; 6.3.1 The sign is not larger than eighteen inches (18") by thirty inches (30") in

6.3 For Sale and Foreclosure Signage. One (1) sign advertising for sale or rent may be erected provided it complies with the following requirements:

6.2 Signage of Owners. In accordance with Section 712 of the California Civil Code, an Owner may display on his/her residence or on real property owned by others with their consent, or both, signs which are reasonably located, in plain view of the public, are of reasonable dimensions and design, do not adversely affect public safety, including traffic safety, and which advertise the property or the Owner's or agent's address and telephone number. As provided in Section 712 of the California Civil Code, a sign which conforms to an ordinance adopted in conformity with Section 713 of the California Civil Code shall be deemed to be ofreasonable dimension and design. Such signage shall also comply with the requirements set forth in Section 7.8 of the Declaration.

6.1 Signage in Common Area. No sign or billboard of any kind shall be displayed to the public view on any portion of the Association Property excluding signs used by Declarant in connection with the development of the community and sale or lease of residences and except for open house signage in accordance with Section 6.6 below.

Sign age

SECTION 6 SIGNAGE I DECORATIVE FLAGS RULES


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6.14 Other Signage. Other signs or displays must be approved by the DRC prior to installation.

6.13 Commercial Signage. Except as provided above, commercial signs are not permitted.

6.12 Security Signage. One (1) sign is permitted advising of the existence of security services protecting a home, which also must comply with the above requirements in item # 1, a through d.

6.11 Political Signs. Political signs relating to upcoming elections/voting proposals are permitted on private property until the end of voting day, and must be removed thereafter. Political signs are not allowed on Association Property.

6.10 Advertising. No riders or flags are permitted. This restriction does not apply to the United States flag as permitted under Applicable Laws.

6.9 Signage in Common Area Entries. Only one sign (in total) per corner. At a four- way intersection there are four corners where only four signs may be placed.

6.8 Signage Identify Owner. The Owner of any sign shall identify their address on the sign as his/hers in an area no larger than 2" x 3".

6.7 Responsibility of Owner. The Owner selling or renting the Residence is solely responsible for adherence to the Association Rules and other Association policies and guidelines

6.6.5 Posting of Open House Signs. "Open House" signage may be posted on Thursdays, Saturdays and Sundays only.

6.6.4 Removal of Signs from Common Area. "Open House" signs may not remain on Association Property overnight. "Open House" signage may be posted on Thursdays, Saturdays, and Sundays only. Signs other than Association approved signs may be removed from the Association Property, without notice, and stored at a central location for pick up by the real estate agent or owner. Signs not picked up within 48 hours may simply be disposed of.

6.6.3 Directional Signage. No signs are permitted on Association Property except for one "Open House" directional sign per unit at intersections; however, in no case can there be more than one "Open House" directional sign per corner. "Open House" directional signs must fit within a 14 Yz" x 14 W' square area and have no rider signs.

6.6.2 Restrictions on Advertising Displays. Owners featuring "Open House" activities are not permitted to display flags, banners, balloons, or "makeshift" signs and must comply with these signage rules.

weather-resistant material. The top of any "open house" sign shall not be higher than 2'9" above the ground.

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Association Rules The Paseos 20838-01231 101553324.2 11

6.17 Replacement of Flags. Flags must be replaced if tattered, faded, torn or in disarray.

6.16 United States Flag. One (1) American Flag is allowed per residence on the Residential Lot in addition to a decorate flag.

6.15 Decorative Flags. One (1) decorative flag per residence is permitted on the Residential Lot provided it is maintained.

Decorative Flags


7.4. 9 Swim Diapers. Swim diapers and plastic pants, specifically for pool use, must be worn in the pool by all users with incontinence issues and children who wear diapers.

7.4.8 Attire. All swimmers must shower before entering the pool and must wear a bathing suit (no ragged-edged garments are allowed.) Showers are only for persons using the facilities and not for individual personal hygiene not related to use of the facility.

7.4.7 Additional Furniture. Owners are not permitted to bring additional furniture and/or equipment into the pool area.

7.4.6 Pool Furniture. Pool furniture is available on first come, first serve basis and may not be taken out of the pool area for any reason at any time.

7.4.5 Consideration of Others. Use of the pool facilities and Association Property is a privilege which is enjoyed by all Owners or occupants, however, consideration of others concerning noise is also important. Conduct by a Resident or his or her guests which deprives any other Resident's use of the facilities shall not be allowed.

7.4.4 No Use by Owner During a Rental. If Owner elects to rent or lease his/her home the Owner relinquishes his/her access rights to the pool facility to the Lessee.

7.4.3 No Responsibility for Pool Use. Use the pool at your own risk. The Association assumes no responsibility for any accident or injury in connection with such use or for any loss or damage to personal property. This also applies in the event that a lifeguard is staffed on the premises.

7.4.2 Guests. Owners are permitted to host no more than [ ten] guests in the pool area at any given time provided the resident sponsors and their guests are courteous of the neighbors and control noise and otherwise comply with the Governing Documents. Guests may make use of the swimming pool only when accompanied by the resident host. Guests not accompanied by a resident host may be requested to leave the premises.

7.4.1 Access. Residents are required to utilize their pool key/access card/key fob to gain access to the pool facility. If a key is forgotten, they will need to return home to obtain it. This is to avoid non-residents gaining access to the pool.

7.4 General Pool Facility Rules.

7.3 Pool Manager. Any problems should be reported immediately to management.

7.2 Reservations. Residents may not reserve pool area facilities for exclusive use.

7.1 Pool Facility Hours. The pool facility will operate during the posted hours.

SECTION 7 POOL/SP A RULES


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(p) Anyone urinating or defecating in the pool is subject to immediate removal from the pool and pool area and imposition of appropriate discipline, after notice and hearing, which may include suspension of privileges to use pool area facilities, monetary penalties and charging residents with all costs of draining and cleaning of pool. Residents are also subject to discipline, including but not limited to, imposition of fines, for such actions by themselves or their guests.

( o) No pool furniture in the pool.

(n) Alcohol in the pool area is not permitted.

(m) No smoking.

(l) No rafts, inflatable toys, or diving rings during busy periods, which shall be at the discretion of the lifeguard (if staffed) or roving patrol. Lifejackets are always allowed. No "boogie boards".

No diving from benches, tables or other facility structures inside the

No radios/playback sound devices without headsets inside the

No unduly loud or disturbing noise inside the fenced area.

No pets or animals inside fenced area.

No glass bottles or other glass containers/objects inside fenced area.

No toys in pool area.

No skateboards/bicycles/tricycles/skates/roller blades/ scooters or

No gum in pool area.

No ball/Frisbee or object throwing.

No "horse play" in the swimming pool.

No running or "horse play" on pool deck. (a)

(b)

(c)

(d)

(e) the like inside fenced area.

(t)

(g)

(h)

(i)

G) fenced area.

(k) fenced area.

Additional Rules. The following rules shall also apply: 7.4.12

7.4.11 Hair. For shoulder length hair or longer, it is recommended that hair be tied back, braided or cap worn (hair clogs the drains).

7.4.10 Health Conditions. Any individual with a condition or disease which may be transmitted through pool water or open sores will not be permitted to use the pool facilities.

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7.5.2 Use by Children Under Five. It is recommended that children 5 years old or younger not use the spa at any time.

7.5.1 Use by Children Under Thirteen. It is recommended that persons age 13 years old or under be accompanied by an adult.

7.5 Spa.

7.4.17 Rule Violations. In addition to any other remedies for a violation of the Association Rules, violation of these rules may result in a verbal warning, time-out period, ejection for the day or suspension of privileges.

7.4.16 Jumping Fences: Any resident or resident's guest caught jumping the fence to any gated facility will be asked to leave the facility for the day. If the same person is caught jumping the fence for a second time, they will be asked to leave the facility for the day and a letter will be sent to the Owner. Non-resident violators will be turned over to the police as trespassers.

Gates. All gates must remain closed and locked at all times. 7.4.15

7.4.14 Swimming Alone. The "buddy system" is recommended to be used by all swimmers at all times. For safety no one should swim alone.

7.4.13 Damage. Any damage to equipment or furnishings must be reported promptly. Owners responsible for the damage will be required to immediately reimburse the Association for losses related to the damage.


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8.7 Bounce Houses and Insurance Requirements. Residents who procure a bounce house must name the Association and the management company as additional insureds by endorsement to their Owner's policy and the bounce house company's policy. Copies of such endorsements shall be provided to the Association before any bounce house is placed.

8.6 Skate Boarding. Skate boarding, roller blading, and motorized equipment (i.e. scooters) are prohibited at all times.

8. 5 Park Closure. Management reserves the right to close the park at any time in order to repair, clean and maintain premises.

8.4.2 Responsibility for Clean-Up. Owners hosting a small party shall be completely responsible for his/her own set-up and clean-up. All clean-up shall be completed prior to leaving the area. Should any damage occur to the facility, including failure to adequately clean up the area used by the Owner, the Association shall have the right to hold a hearing and thereafter assess the Owner and to withhold some or all of a deposit to cover any damage to the facility that results from the Owner's reservation and/or use of the facility.

8.4.1 Small Parties. Small parties ofless than 20 guests may be held, provided the resident sponsors are courteous of the neighbors and control noise.

8.4 No Commercial Uses. The Park may not be used for commercial purposes other than those endorsed by the Association.

8.3 Guests. The Park area is for the use of Owners and their guests. Guests must be accompanied by an Owner at all times. Owners shall be responsible for the conduct of their guests.

8 .2 Use By Children. Children under the age of 12 should be supervised by parents/guardians/persons over 18 at all times.

8.1 Park Hours. Park hours are from dawn until dusk, unless reserved by the Association for special events.

SECTIONS PARK RULES



9. 7 Bounce House. Residents who procure a bounce house must name the Association and the management company as additional insureds by endorsement to their Owner's policy and the bounce house company's policy. Copies of such endorsements shall be provided to the Association before any bounce house is placed.

9.6 Restrictions on Public Broadcasting. Public broadcasting (i.e., deejays), skate boarding, roller blading, and motorized equipment (i.e., scooters) are prohibited at all times.

9.5 Closure of Tot Lot. Management reserves the right to close any of the facilities at any time in order to repair, clean and maintain premises.

9.4 No Commercial Uses. The TotLotmaynotbe used for commercial purposes other than those endorsed by the Association.

9.3 Use By Guests. The Tot Lot area is for the use of Owners and their guests. Guests must be accompanied by an Owner at all times. Owner is responsible for the conduct of their guests.

parents/guardians/persons over 18 at all times. Children under 12 should be supervised by Use By Children. 9.2

9.1 Tot Lot Hours. Tot Lot hours are from dawn until dusk.

SECTION9 TOT LOT RULES



10.6 Compliance with Governing Documents. Owners and tenants and their guests must comply with all rules contained within the Governing Documents of the Association and any rules posted at the facilities. Failure to abide by rules may result in loss of privileges for the facilities.

It is not the responsibility of the Association to insure the key fobs are transferred. If the new owner does not receive key fobs at the point of sale, they will be required to pay $25 per key fob they wish to purchase from the Association, up to the limit of 4. The key fobs on file for the previous owners will be deactivated.

10.5 Transfer I Resale to New Owner/Buyer. It is the previous Owner's responsibility to transfer their key fobs to a new buyer. The new buyer shall notify management upon close of escrow that they received their key fobs within 30 days by sending in the Owner Information Form. Failure to do so will result in deactivation of the key fobs until the new buyer submits the form.

10.4 Key Fob Limit. Owners may purchase up to four (4) key fobs per home only.

10.3 Tenants. Owners are responsible to provide their key fobs to tenants, if applicable. An Owner who chooses to rent their home to a tenant also transfers their access rights to all facilities.

10.2 Facilities Key Fobs. Two (2) key fobs will be issued to each Lot in the Association upon submittal of the completed Owner Information Form, for the 1st Owner only (sale from developer to 1st Owner). Lost key fobs will require anon-refundable fee of $25.00 per key fob prior to issuance. Key fobs will only be issued to Owners only.

10.1 Pedestrian Gate Keys. Two (2) keys will be issued to each Lot in the Association upon submittal of the completed Owner Access Gate Information Form. Lost keys will require a non-refundable fee of $25. 00 per key prior to issuance.

SECTION 10 RECREATIONAL FACILITY ACCESS



11.2.4 Association Action. Upon receiving Written Certification that the parties first attempted to resolve the Neighbor to Neighbor Dispute through ADR, the Board shall determine whether a violation of the Declaration or Governing Documents exists which requires Association action, whether Association enforcement is required under the particular circumstances and, if so, the action to be taken in accordance with Association Notice and Hearing procedures.

11.2.3 Mediation. The parties to the Neighbor to Neighbor Dispute shall be required to attempt to submit their dispute to mediation prior to seeking association involvement in resolving the dispute. This may be accomplished by complaining party serving the other (responding) party(ies) with a Request for Resolution in accordance with California Civil Code Section 1369.530 et. seq.

11.2.2 Notification to Owners of a Neighbor to Neighbor Dispute. If the Board finds that the complaint or dispute constitutes a Neighbor to Neighbor Dispute, it shall notify the parties of the Neighbor to Neighbor Dispute of its decision.

11.2.1 Determination of Whether a Neighbor to Neighbor Dispute Exists. When a dispute or complaint is brought to the attention of the Board regarding interpretation of rights under, or enforcement of, the Governing Documents, the Board shall, at its next scheduled meeting, discuss the complaint or dispute and make a reasonable business judgment decision based upon the particular facts as to whether or not it constitutes a Neighbor to Neighbor Dispute.

11.2 POLICY TERMS

11.1.2 "Written Certification" means a letter signed by the disputing parties, certifying that one party requested the other party to submit the dispute for resolution and, either mediation was completed or the other party refused to submit the dispute to mediation.

11.1.1 "Neighbor to Neighbor Dispute" means a dispute or complaint (s) lodged by one Lot Owner against another Lot Owner which, in the Board's sole discretion, would not be in the best interest of the Association to pursue.

11.1 DEFINITIONS

Nothing herein is intended to be construed as an attempt to relieve the Association or the Board of Directors from any of its duties under the Declaration for the Association or any other Governing Documents of the Association. This Policy only establishes a prerequisite to Association involvement in certain, limited, "Neighbor to Neighbor Disputes". THE POLICY SET FORTH IN THIS SECTION SHALL BE INAPPLICABLE TO ANY COMPLAINTS OTHER THAN NEIGHBOR TO NEIGHBOR DISPUTES.

SECTION 11 NEIGHBOR TO NEIGHBOR DISPUTE POLICY


. . • I


12.2 Storm Drain Violations. Any assessment related to storm drain violations and collection thereof will be subject to the Delinquency Policy of the Association.

12.1 Fines by Governmental Agencies. Any fines assessed by a City, County or government agency against the Association that are assessed as result of acts by an Owner or their guest(s) will be passed along to the Owner in the form of an "Enforcement Assessment".

SECTION 12 STORM DRAIN WATER RUN-OFF POLICY


20 1 015 53324.2 The Paseos 20838-01231 Association Rules

13.1.5 Parameters to Resolve the Dispute. Within the same fifteen (15) day period described in (a), above, the Board shall appoint one or more board Owners (or other person(s) who is/are not a Owner of the Board) to be representatives of the Board, and set the

13 .1.4 Mediation. At the Owner's request, as an alternative to a meet and confer, the parties may mediate their dispute through the Mediation Committee of the Orange County chapter of the Community Associations Institute (CAI). Such mediation shall be scheduled to occur within thirty (30) days following the responding party's receipt of the written request for Internal Dispute Resolution, or if both parties agree to extend the time to complete mediation beyond thirty (30) days in the event that the Mediation Committee is unable to schedule a mediation within thirty (30) days. The Owner shall not be charged a fee to participate in such a mediation; any fees shall be paid by the Association.

13.1.3 Notice Regarding Meet and Confer Process. Within fifteen (15) days after the next regularly scheduled Board meeting, following the Association's receipt of a Request for IDR or Response accepting IDR from a Owner, the Board shall inform the Owner by certified mail, of the representative or representatives it has designated to represent the Association in the process, together with a proposed date, time and place for the Association's designated representative(s) and the Owner to meet and confer in an attempt to resolve the dispute. The parties shall schedule and conduct the meet and confer within thirty (30) days following the responding party's receipt of the written request for Internal Dispute Resolution.

13.1.2 Response. If an Owner is the responding party and agrees to participate in IDR, the Owner shall return a written response ("the Response") accepting the Association's Request for IDR.

13 .1.1 Initiation of the Process. The Internal Dispute Resolution (IDR) process may be initiated by either the Association or the Owner (the "Requesting Party") requesting the same, in writing, and serving the other party (the "Responding Party") with a copy of the written request ("the Request") by certified mail. If the process is invoked by an Owner, the Association shall participate. If the process is invoked by the Association, the Owner may elect not to participate in the procedure. Should the Owner elect not to participate in the procedure, however, the Owner shall thereby waive any right to appeal or ask the Board of Directors to reconsider any decision it may make regarding the dispute.

13.1

Pursuant to Civil Code§ 1363.820, the purpose of the Internal Dispute Resolution (IDR) Policy is to provide a fair, reasonable and expeditious procedure for resolving a dispute between the Association and a Owner involving the parties' rights, duties, or liabilities under the Davis-Stirling Common Interest Development Act, Civil Code § 1350 et seq, under the Nonprofit Mutual Benefit Corporations Law contained in Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code, or under the Governing Documents of the Association.

SECTION 13 INTERNAL DISPUTE RESOLUTION POLICY


21 !01553324.2 The Paseos 20838-0123 l Association Rules

13.4 Appeal to Board. If the parties do not reach tentative agreement at the meet and confer or mediation, the Board of Directors shall send its written decision regarding the issue or matter in dispute to the Owner by certified mail, within fifteen (15) days following the next regularly scheduled meeting of the Board of Directors following the meet and confer or mediation. If the Owner participates in the meet and confer or mediation, but the dispute is resolved by decision of the Board of Directors rather than by agreement of the parties, the Owner may appeal to the Board to reconsider its decision by submitting written request for the same to the Board of Directors, by certified mail, within fifteen (15) days of the Owner's receipt of the Board's written decision. If the Association requested IDR and the Owner refused to participate in the process, the Board of Director's decision shall be final and not subject to reconsideration or appeal.

13.3 Agreement of the Parties. Whether the parties meet and confer or mediate their dispute, they shall each have the opportunity to state and explain their positions regarding the issue or matter in dispute. If during the meet and confer or mediation the Owner and the Board's representative( s) reach an agreement in principal regarding the manner in which the dispute may be resolved, they shall put the agreement in writing and the Owner shall sign it. At the next regularly scheduled meeting following the meet and confer or mediation, the Board of Directors should consider the agreement and, if it is approved by a majority vote of a quorum of the Board, the appropriate officer(s) shall sign the agreement, at which time the agreement shall become binding upon the Association and the Owner. The agreement shall only become binding and enforceable upon the parties if such action is taken by the Board of Directors and it is not in conflict with the law or the Association's Governing Documents. Should the Board of Directors decide to become bound by, and therefore sign, the agreement, a copy of the signed agreement shall be returned to the Owner within fifteen (15) days following the Board's execution of the agreement, and the original of the agreement shall be maintained in the Association's business records.

13 .2 Attorney Participation. The parties are encouraged not to involve their attorneys in the IDR process, so that the parties may feel free to engage in direct and informal discussion. Should the Owner decide to bring his/her/its attorney to the meet and confer or mediation, the Owner shall give the Association ten (10) business days' written notice of the same by fax, overnight mail or overnight delivery, so that the Association can arrange to have its attorney attend as well.

parameters within which the Board's designated representative(s) may propose to resolve the dispute.

22 l O 1553324.2 The Paseos 20838-01231 Association Rules

COMPLAINTS REGARDING ANIMAL NOISE/ISSUES MUST BE DIRECTED TO ANIMAL FRIENDS AT (951) 674-0618

COMPLAINTS REGARDING NOISE DISTURBANCES MUST BE DIRECTED TO THE POLICE DEPARTMENT AT (951) 506-1408

Dates and times alleged violation occurs?----------------- How often does the alleged violation occur?

(If additional space is needed, please use reverse side of form.)

Description of alleged violation: ----------------------

Name: Address: Phone: -----------~ (Alleged Violator's Name) (If Known)

Signature: -----------

Phone: Date: -------- ---

Address: ------------ Name: ~

Signature:-----------

Phone: Date: -------- ----

VIOLATION INFORMATION :

Signature:------------

Phone: Date: -------- ---

Address: ------------ Name: ------------~ Signature:-----------

Phone: Date: -------- -~~

REPORT FILED BY:

Please be as specific as possible to allow the Board to expedite the process in a timely manner. All alleged violations will be evaluated to ensure they are considered an infraction as defined by the Association's legal documents and are not considered a "Neighbor to Neighbor Dispute".

SECTION 14 RULES AND VIOLATION REPORT



There shall be no appeal once the Board has made a decision.

15.10 Adjournment.

15.9 Enforcement procedures as applicable.

15.8 Board ruling without Owner present.

15. 7 Owner is thanked for coming and told that they will be notified of the Board's decision within fifteen (15) days.

15.6 Questions and final statement by invitee.

15.5 Discussion and questioning of the invitee by the Board.

15 .4 Review of CC&R requirements, Bylaws, and Rules and Regulations of The Paseos Association.

15.3 Invitee's statement and presentation of oral or written evidence.

15 .2 Statement of alleged violation by acting chairperson.

15.1 Introductions and hearing session procedures.

Procedure:

SECTION 15 PROCEDURE FOR OWNER HEARING



24 101553324.2

16.5 Solicitation Materials. Every candidate and Owner shall have equal access to the Association mailings, newsletters, and website, if any access is provided, for the publication of view points reasonably related to any issue presented for Membership vote.

16.4 Nominations. Nomination for election to the Board may be made by a nominating committee consisting of three (3) persons. Nomination my also be made from the floor at each meeting at which directors are to be elected. Nominations will be solicited by candidacy statements being sent out by management on behalf of the association prior to the annual election and must be returned by the date specified in order to be sent with the balloting materials.

16.3 Qualifications of Candidacy on the Board. A candidate must be in good standing and remain in good standing to serve as Director. Good standing shall mean an Owner is current in the payment of their Association account to include assessments, late charges, fines, etc., and is not in violation of the Governing Documents, Rules & Regulations, or Architectural Standards, including yard installation.

The authenticity, validity and effect of all ballots shall be determined by the Inspector(s) of Election on the night of any election. The polls for any vote of the Membership shall be open from the date the Secret Ballot is mailed and shall be closed at the time that envelopes are opened, unless the Inspector determines another time for the polls to close. The polls for any vote of the Membership shall close when the Inspector(s) of Election has determined that the ballots shall be counted.

Following Notice and Hearing in compliance with Corporations Code Section 7341, the Association's Board of Directors may terminate or suspend any Owner's right to vote as a penalty for violation of the Association's Governing Documents.

The Board may fix a record date in accordance with Corporations Code Section 7511 or as addressed in the Bylaws.

Class B Members. Class B Members shall be the Declarant who shall be entitled to three (3) votes for each Condominium until expiration of the Class B membership.

Class A Members. Class A Members shall be all Owners, with the exception of Declarant, and shall be entitled to one (1) vote for each Condominium owned.

16.2 Qualifications for Membership Voting. Pursuant to the Association's Governing Documents, the Association has the following voting classes:

16.1 Application of Rules. These rules shall apply to any meeting of the Membership or solicitation of Membership approval by a ballot vote.

SECTION 16 ELECTION RULES


25 101553324.2 The Paseos 20838-0123 l Association Rules

16.9 Meeting Conduct. Any inspection of ballots shall be done at an open meeting of the Membership or the Board of Directors. Any candidate or Owner may observe the count, but shall stand at least five feet away from the Inspector(s). Candidates and/or Owners may not harass, cajole

. or otherwise interfere with the Inspector(s) of Elections while the count is taking place. Owners or persons not specifically authorized to do so may not touch any secret ballot or other election materials. All ballots will be made available for inspection by any Candidate or Owner during regular business hours at the Association's management office once the meeting is concluded. Any person violating this Section may be asked by the Inspector of Elections to leave the meeting to prevent further disruption.

16.8 Selection of Inspector of Election. Prior to the presentation of any issue to the Owners for a Membership vote, the Association shall appoint one (I) Inspector of Election. The Inspector appointed by the Board may be any person or entity other than: (1) a Director; (2) a Candidate; (3) a Director's relations; or (4) a Candidate's relations. The appointed Inspector of Election must be an independent third party and may include, but not be limited to, a Owner of the Association or any person or entity employed by and receiving compensation from the Association.

16.7 Availabilitv of Meetine: Snace. Access to Association Property meeting space, if any, shall be made equally available, at no cost, to all Candidates and/or Owners desiring to use such space for any reason reasonably related to a Membership vote. The Association may meet the requirements of this section by hosting a "Meet the Candidates Night", or other such special meeting, so long as every Candidate and/or Owner is provided with an equal opportunity to participate in the event.

16.6 Proxies. Every Owner entitled to cast a vote at a meeting of the Owners shall be entitled to vote either in person, or by proxy. The Association shall make available to owners upon written request, proxy materials for use at any meeting of Owners whereat the Owners are entitled to vote. The granting of a proxy shall not authorize the retrieval of any ballot previously cast. Ballots, once cast, are final and irretrievable.

16.5.2 Limitation on Publication Space Made Available. So long as each Candidate and/or Owner is provided the same opportunities for publication, the Association may restrict the availability of any publication by limiting the printing space made available or the number of words that will be included from each Candidate or Owner included in the publication. In the absence of more restrictive limitations adopted by the Board for any particular matter, each Candidate and/or Owner should be limited to no more than 200 words for any one publication. The Board may, in its sole discretion, present a candidacy questionnaire with questions for all interested Candidates and/or Owners to complete. If such a questionnaire is provided, then the Association will only print the answers to such questions and may impose a limitation upon the number of words for the response to any question presented.

16.5.1 Content. The Association shall not edit or redact any content from these messages, but may include a statement specifying that the Candidate or Owner, and not the Association, is responsible for the content of any published statement.

26 !01553324.2 The Paseos 20838-01231 Association Rules

17 .3 Effectiveness of Opt-Out. If you chose to opt-out of sharing your name, property address, and mailing address under the Membership list, pursuant to Civil Code Section 1365.2(A)(l )(I)(iii), the opt-out designation shall remain in effect until changed by you, by written notification to the Association's Managing Agent.

17.2 Removal from the Membership List. Newly adopted California Code of Civil Procedure Section 1365.2 (a)(l)(I)(iii), effective July 1, 2006, allows a Owner to request to be removed from the Membership list to prevent release of their private contact information to a Owner requesting the Membership list. In order to opt-out of the Membership list, you must notify the Association in writing. By opting-out, you are notifying the Association that you prefer to be contacted via the alternative process described in Corporations Code Section 8330(c).

17 .1 Membership Lists. California statute currently allows an Owner or the Association to request and obtain a Membership list, including Owners' names and addresses. The requesting Owner can only obtain the Membership list if he/she articulates in writing a purpose reasonably related to his/her interest as a Owner. Unless the Board determines that a request for the Membership list is made pursuant to a purpose not reasonably related to the requester's interest as a Owner, the requester must be provided with the Membership list, or offer a reasonable alternative, as provided in California Corporations Code Section 8330(c).

SECTION 17 PRIVACY POLICY



VIA E-MAIL: [email protected]

THE PASEOS ASSOCIATION Keystone Pacific Property Management, Inc.

16845 Von Karman, Suite 200 Attn: Accounts Receivables

VIA FACSIMILE: (949) 833-0919

Please mail, fax or email this form to:

Signature(s): _ Print Full Name(s): _ Property Address: ~

D I/we do not opt out of the sharing of my/our name, property address, and mailing address under the Membership list.

D I/we opt out of the sharing of my/our name, property address, and mailing address under the Membership list, pursuant to Civil Code Section 1365.2(A)(l)(I)(iii), and prefer to be contacted via the alternative process described in subdivision (c) of Section 83 3 0 of the Corporations Code. This opt-out shall remain in effect until changed by me.

DESIGNATION FOR OPTING OUT OF PERSONAL INFORMATION DISCLOSURE

If you do not want your name and address to be disclosed to other Owners in the Association and would like the Association to withhold your private information, you must now opt out of the sharing of your name, property address, and mailing address by completing this form. This opt out shall remain in effect until changed by you.

SECTION 18 PRIVACY POLICY FORM



28 101553324.2

INVOLVEMENT IN THIS ASSOCIATION.

PLEASE CONSULT YOUR PROFESSIONAL ADVISOR REGARDING YOUR

INTERPRETATION ARE CONSTANTLY CHANGING.

SUBSTITUTED FOR THE SERVICES OF AN ATTORNEY. THE LAW AND ITS

THE MATERIAL CONTAINED WITHIN THIS PACKET IS NOT INTENDED TO BE

SECTION 19 DISCLAIMER

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