Rules and Regulations of the Castlegate Community Association

Governing Document Hierarchy

Castlegate Community Association is regulated by a series of governing documents. Conflicts or ambiguities can arise between documents. When they do, the item that is higher on the list prevails. The hierarchy is:

1. CC&Rs
2. Articles of Incorporation
3. Bylaws
4. Rules and Regulations

Design Guidelines

Community Organization

Every homeowner of Castlegate is a member of the Castlegate Homeowners’ Association (the “Association“), the entity responsible for the management of all common areas and related homeowner’s facilities as well as administration of the affairs of the community. The Association is created by the recording of the Declaration of Covenants, Conditions, Restrictions, Reservations and Easements (the “CC&Rs”). The CC&Rs set forth procedures, rules and regulations, which govern the community. These “Design Guidelines and Association rules” are an extension of the CC&Rs and they are designed to be used in harmony.

The Board of Directors (the “Board”) is charged with the responsibility for overseeing the business of the Association and has a wide range of powers. The Design Review Committee (the “Committee”) is established by the Board to review all improvements within Castlegate including new construction, modifications to existing properties and landscaping. The Committee has adopted Design Review guidelines and standards to evaluate proposed construction activities. The Committee is hereby empowered to supplement and amend the Design Review guidelines and its procedural rules and regulations to the extent and with the frequency it deems necessary; provided, however, that such modifications are in general conformity with the standards set forth in the CC&Rs. IMPORTANT: The CC&R’s also have many restrictions and guidelines. Many of these are found in Article 4 “use restrictions”.

Design Review Process

Any change, addition, or modification to a site or building exterior of a residential property requires the prior written approval of the Committee. Residents with proposed changes should contact their management company, with whom the Association has contracted for full Association management, to obtain the necessary Design Review guidelines and submittal documentation.

Simply stated, no new construction, front yard landscaping, or remodeling, including changes in exterior color is to occur on any Lot or exterior of any home without the prior approval of the committee. The responsibility of the Committee is to manage the application and approval process, fairly enforcing guidelines outlined in the governing documents, making objective decisions about guideline compliance, making recommendations to the Board of Directors, reviewing guidelines for adequacy, and educating the community on the guidelines. Your submittal will be returned to you either approved, denied, or for more information once it has been reviewed by the Committee. Homeowners may appeal the decisions of the Committee to the board for consideration, in which case the decision of the Board shall prevail. Such appeals must be requested, in writing/email within 10 calendar days of the date of denial, if this is not received within 10 calendar days from the date of denial, then the decision of the Architectural Review Committee will be final. If you received a denial from the committee, the work is already done, and you do not plan on appealing to the board, you will have 10 calendar days to submit new plans to the committee, then 30 calendar days from the date of approval to complete the revised work.

It is the homeowner’s responsibility to ensure that any proposed construction is coordinated with, and where applicable, approved by all counties, local, state and federal government agencies. The Committee, the Management Company and the Association assume no responsibility for obtaining these reviews and approvals. All submittals must have work completed within 90 days of the approval date (except for work that is completed and receive a denial and need revised work).

General Principals

The Committee monitors any portion of any lot or parcel that is visible from other lots or parcels, the street, or Association common areas. This would include backyards that are visually open to other lots or Association common areas. The Design Guidelines promote those qualities in Castlegate, which enhance the attractiveness and functional utility of the community. Those qualities include a harmonious relationship among structures, vegetation, topography and the overall design of the community.

Protection of Neighbors

The interest of neighboring property must be protected by making reasonable provisions for such matters as access, surface water drainage, around and sight buffer, light and air, and other aspects of design that may have a substantial effect on neighboring properties.

Design Compatibility

The proposed construction must be compatible with the design characteristics of the property itself, adjoining properties, and the neighboring setting. Compatibility is defined as harmony in style, scale, materials, color, and construction details.

Workmanship

The quality of workmanship evidenced in construction must be equal to, or better than, that of the surrounding properties. In addition to being visually objectionable, poor construction practices can cause functional problems and create safety hazards. The Association and the Committee assume no responsibility for the safety or livability of new construction by virtue of design or workmanship.

Building Architecture

In general, any exterior addition or alteration to an existing residence shall be compatible with the design character of the original structure.

Minimum Dwelling Size

No home smaller than 1,000 square feet livable Is allowed, except in “The Villages” no home smaller than 900 square feet livable is allowed.

Community Guidelines

Air Conditioners/Window Units

Window air conditioners require approval of the Committee prior to installation. If approved, the unit must be painted to match the color of the home where installed.

Basketball Goals and Backboards

Homeowners must submit an application to the Committee for approval prior to the installation or placement of a permanent basketball goal or backboard. Strict guidelines will be adhered to regarding the quality of equipment and installation and special attention will be paid to placement of the pole on the lot. Backboards may be transparent or a standard type with highly visible logo material prohibited. No lighting designed to illuminate basketball goals or backboards shall be installed without prior written approval of the Committee. All basketball goals or backboards must be maintained in a near new condition.

Portable basketball goals or backboards must be stored on the homeowner’s lot and may not be stored on sidewalks, roadways, or common areas. Portable basketball goals or backboards must also be sufficiently weighted or secured so they do not tip or fall (such as due to windy weather).

Clotheslines

Clotheslines or other outside facilities for drying clothes are not permitted unless they are placed exclusively within a fenced yard and not visible above the top of the block wall or otherwise concealed.

Driveways/Driveway Extensions

Driveways may not be expanded without the prior approval of the Committee. Any damage incurred will be the sole responsibility of the homeowner.

Flagpoles

Pursuant to A.R.S. 33-1808, flagpole installations must comply with the following:

Height

Flagpoles should be limited to a maximum height of 20 feet. If you will be leaving your American flag up, your pole will be required to have lighting available for the evening hours.

Location

Front Yard: Anywhere except for city street, city sidewalk, driveways, or on the shared privacy wall. If owner wishes to install lighting for a patriotic effect, lighting cannot be directed towards streets, common areas or neighboring property.

Back Yard: Anywhere except for the shared privacy wall. If owner wishes to install lighting for a patriotic effect, lighting cannot be directed towards streets, common areas or neighboring property.

If placing a flagpole on a house or garage, homeowners are advised to use brackets mounted on the house or garage to display flags. For this particular placement, the flagpole cannot exceed 6 foot in length (such as a staff normally sold with the flag).

Construction

Suggestion would be lightweight aluminum, or fiberglass, rust-free.

Rating

For wind speeds - minimum 54 MPH (for monsoon season). The owner will be responsible for all damages should flagpole damage any adjoining property (vehicles, residence, shared privacy wall, etc.).

Gates

Double gates may be installed to allow access ways to yards. Double gates should be the same type, design, and color as the originally installed gates or the same color as the property wall.

All double gates require Committee approval. Shrubs, trees, or other plants should be located between the house and the double gates, where possible.

Gutters and Downspouts

Gutters and downspouts may be considered for approval. The finish on same must match the adjacent surface of the home in color. High-quality materials that offer long life are recommended, as the homeowner will be required to maintain these additions in good repair.

Plans must also include the proposed locations of the gutters and downspouts, the quality of material to be used, warranty by the manufacturer, and the name and telephone number of the installer.

Landscape Guidelines

The Design Review Committee requires that “front yard” (includes visible side yard) landscape plans be submitted for approval before installation. Contact committee before drawing plans.

Rear yard structures which are taller than the fence or are visible from outside the property (swings, gazebos, permanent basketball goals or backboards, trampolines, etc.) also require approval. All yards must be maintained in a neat, weed-free, debris free condition. No tree, shrub, or plant of any kind on any Lot may overhang or otherwise encroach upon any sidewalk or other pedestrian way from ground level to a height of eight (8) feet.

All yards must be maintained in a neat, weed free, debris free condition.

No tree, shrub, or plant of any kind on any Lot may overhang or otherwise encroach upon any sidewalk or other pedestrian way from ground level to a height of eight (8) feet.

Landscape Design Requirements

• A minimum of one 15-gallon tree in all front yards (live and planted in-ground). A cactus is an acceptable substitution so long as it is a minimum of five (5) feet tall when planted (not at full maturity).
• A minimum of three 2.5-gallon shrubs must be maintained in the front yard at all times (live and planted in-ground).
• Granite: approved size range from 1/4”-1” in size and must be of a natural earth tone color. White, green or red rock will not be approved. River rock may be used sparingly in accent locations only.
• Woodchips may not be used as groundcover.
• Artificial plants/trees of any kind will not be considered towards any minimum landscaping requirements.
• If you choose a plant/tree from the approved list, you may bring your yard into compliance without submitting to the Committee. If you want additional plants/trees past these amounts or something different from the approved list, please submit for approval.

Landscape Submittal Requirements

• A completed copy of the design review approval request form. Contact the management company.
• Specifications list including plant list with sizes, quantities, granite type and color, border materials, etc.
• Drawings in 8 ‘/2 x 11” or 11x17” size (front yard only).
• Anything else the Committee requests.

Approved Plants

• Orange/Yellow Bells
• Texas Sage
• Langman’s Sage
• Any variety of Lantana
• Red or Mexican Bird of Paradise
• Flattop Buckwheat
• Ocotillo
• Dwarf Oleander
• Lavender
• Texas Mountain Laurel
• Globe Mallow
• Hibiscus
• Texas Olive
• Purple Prickly Pear

Approved Trees

• Fruitless/Non flowering Olive
• Purple Leaf Plum
• Palo Verde
• Oak
• Pistache
• Willow Acacia
• Desert Willow
• Mesquite
• Ash
• Elm

Prohibited Plants/Trees

• Fountain Grass
• Buffelgrass
• Sitka Spruce
• African Sumac
• Stinknet
• Russian Olive
• Red Brome
• Filaree
• Desert Broom
• Salt Cedar
• Sissoo
• Mulberry
• Tree of Heaven
• Giant Reed
• African Rue
• Iceplant
• Catsclaw

Ornamentation

The utilization of non-living objects as ornaments in the landscape must be harmonious with the character of the neighborhood, must be in general good taste which enhances the landscaping and home (all at the sole discretion of the Design Review Committee) and must be approved prior to installation.

Maintenance

All landscaping shall be maintained in a neat and attractive condition. Minimum maintenance requirements include watering, mowing, edging, pruning, removal/replacement of dead or dying plants, removal of weeds and noxious grasses, and removal of trash.

Outdoor Fireplaces

Installation of outdoor fireplaces requires advance approval by the Committee. Outdoor fireplaces may not exceed fence height.

Outdoor Lighting and Holiday Decorations

Any additional outdoor lighting installed on a Lot or dwelling must receive advance approval by the Committee. Permanent lighting sources shall not be directed towards streets, common areas or neighboring property. Holiday lights/decorations may be placed no more than 30 days before a holiday and shall be removed 30 days after the holiday. The Board reserves the right to require removal of decorations based on size, quantity, location and any other criteria that the Board may determine.

Painting (Home Exterior)

Approval from the Committee to paint your home the original color scheme is not required, however; the Board requires that the Association be provided in writing (email is sufficient) with the color scheme detail and date that the home is painted so that the Lot file may be updated. If a color change is desired, the proposed color scheme must be submitted to the Committee for approval prior to painting.

The Association’s paint palette is available for review at Sherwin Williams locations or online at: www.sherwin-williams.com/homeowners/color/find-and-explore-colors/hoa Original schemes are separated by Parcel, however; Owners may submit to the Committee for a scheme outside of the specific Parcel the home is located. If you do not know which Parcel your home is in, you may contact the Management Company.

Patio Covers and Storage Sheds

Storage sheds, along with any permanent addition to a home, including patio covers and other buildings, must be submitted to the Committee for approval prior to construction. Backyard storage sheds detached from the house will be considered provided they are not more than 8 feet in height. The shed must be set back a minimum of 4feet from the side and rear property line. The storage shed shall not be served by any utility (electric, gas or water), and all roof drainage must flow back onto the owner’s property. All colors must be similar to the colors of the home. When submitting, please include height, setbacks, colors being used, photos, sample screenshots/photos of colors being used, and plot map of where shed will be located. This list is not all inclusive, the committee may request additional information.

Planters & Walkways

Planters, paved walkways and other landscape features visible from neighboring property must be reviewed and approved by the Committee. Surface textures and colors are to match the paint color and materials of the house.

Play Structures and Trampolines

Play Structures may be placed in rear yards only and require review and approval by the Committee, subject to the following guidelines:

• Structure must be set back a minimum of 4 feet from any perimeter wall.
• Maximum height allowed to top support bar or highest point of structure is 10 feet.
• Maximum height of any deck/platform is to be 4 feet above ground.
• The distance from the ground elevation to the top of the perimeter fence must be measured and submitted with plans.
• The Committee will take appearance, height, and proximity to neighboring property into consideration.
• Any shade canopy must be a solid tan, earth tone, forest green or sky blue.
• Submit a brochure or picture.

Ramadas, Gazebos, and Pergolas

Ramadas (a flat roofed, open air shade structure), gazebos (a roofed structure that offers an open view of surrounding area), and pergolas (an open air structure with a cross beam “roof”) may be considered in the rear yards only and require prior review and approval by the Committee, subject to the following guidelines:

• Maximum square footage (under roof area) is 200 square feet.
• Maximum roof height Is 10 feet at the highest point.
• The structure must be set back a minimum of 4 feet from any perimeter wall.
• The structure must be maintained in good condition at all time.
• Any lighting must be approved prior to installation.
• The structure must be decorative, attractive and tasteful at the sole discretion of the committee.
• The structure must not obstruct any meaningful view of public or neighbor.

Roof Materials

Roofing materials shall be concrete tile, clay tile, dimensional fiberglass shingles (30-year minimum) or wood shake shingles.

Satellite Dishes

While the Association cannot prohibit the use of satellite dishes, they do regulate the size and location of the “dish: All dishes should be placed in the rear yard or on the back side of the home. Any dish larger than one meter (39 inches) may not be visible above the fence line to streets, neighboring property, and common areas. Those homes with “view” fencing must locate the dish in the best possible location so as to minimize the visibility from neighboring property and common areas. All dishes that are above the fence line must be painted to match the color of the house. Prior committee approval is not required.

Security/Screen Doors

The Committee must approve screen doors and “security” doors prior to installation.

Installations should be high quality in a color that is similar to the house. Overly ornate designs would be discouraged. Pictures or brochures must be provided with the submission.

Swimming Pools

Prior to construction of a swimming pool, a homeowner should contact the Management Company to coordinate the point of construction access to assure damage to common landscaped areas and common perimeter walls is avoided. In most cases, residents will be advised to enter through the side yard wall, from the front of their homes. Any opening that effects a common Association wall shall require a Design Review submittal and a $1,000 deposit for such work, payable to the HOA, and refundable after the walls and landscape are returned to their original condition. The Committee may also require the Association to replace and repair any common wall, which has been affected to ensure continuity within the community with the ability to charge back to the member for labor and materials.

Pools may not be backwashed into the drainage ditches, natural washes, common landscaped areas, drainage-ways or streets. All backwashed water is to be retained on the owner’s lot. If necessary, a hold should be dug and filled with tocks to provide for the needed capacity.

Swimming pool fence requirements are regulated. The city should be contacted to determine the safety fence requirements for your pool. For safety reasons, all openings in walls must be securely covered during the construction to prevent children from entering and being injured.

Pool plans will not need prior approval unless there is a feature (pool slide or other structure), which would be visible above the top of the wall. All pool equipment shall be screened from view of neighboring property, streets, and common area with walls, which match the Design Review character and color of the house, or the existing wall. If pool equipment is placed near view fencing, space must be allowed to accommodate the screening wall.

Pool Drainage

No person shall deposit in, sweep upon, or permit to drain into any public right-of-way place of the City any garbage, junk, obstruction or similar matter or any hazardous material that impedes passage or is detrimental to public health (gray water). It is unlawful for any person to discharge or cause to be discharged to the sanitary sewers. You must obtain a permit from the Engineering section first.

Umbrellas and Shade Sails

Umbrellas and sails in the backyard visible from neighboring properties will be permitted without submittal if they are temporary for summer season only and do not cause a disturbance to neighboring properties. If they will be permanent or up more than the summer season, they will need to have ARC approval.

Window Coverings Criteria

No reflective materials, Including, but not limited to, aluminum foil, reflective screens or glass, mirrors or similar type items, or temporary window coverings such as newspaper or bed sheets shall be installed or placed upon the outside or inside of any window of any house without the prior written approval of the Committee. No enclosures, drapes, blinds, shades, screens, awnings, or other items affecting the exterior appearance of the house shall be constructed or installed in any home without the prior written consent of the Committee. The Board has given blanket approval to all off-white or white, shutters, mini-blinds, and vertical blinds installed on the interior of windows.

Association Rules

The following community rules summarize some of the common provisions found in the CC&Rs as well as rules established by the Board. Cooperation on the part of all residents in following these rules will make living at Castlegate an enjoyable experience.

Right of Entry

During reasonable hours and upon reasonable notice to the Owner or other Occupants of a Lot, any member of the Design Review Committee, any member of the Board, shall have the right to enter upon and inspect any Lot, and the improvements thereon, except for the interior portions of any completed Dwelling Unit, for the purpose of ascertaining whether or not the provisions of this Declaration have been, or are being, complied with, and such persons shall not be deemed guilty of trespass by reason of such entry.

General Property Restrictions

Owners may rent only the entire lot or dwelling unit. Rental must be made only to a single family. No gainful occupation, commercial, trade or other non-residential use may be conducted on the property or receiving products or services related to such usage. Owners must receive Board permission to apply for any re-zoning, variances or use permits.

Building Repair

No building or structure shall be permitted to fall into a state of disrepair. The Owner of every home or structure is responsible at all times for keeping the buildings in good condition and adequately painted or otherwise finished. In the event any building or structure is damaged or destroyed, the Owner is responsible for immediate repair or reconstruction. Roofs must be kept in good condition at all times.

Trash/Recycling Containers and Collection

No garbage or trash shall be kept on any lot except in covered containers as provided by the city. These containers must be stored out of sight except for days of collection. The only exception to this guideline would be bulk-trash collection days as set forth by the city.

Parking

It is the intent of the Declaration to prohibit on street parking as much as possible. Vehicles of all Owners, Lessees and Residents are to be parked in garages or the driveway(s) of the Lot so long as space is available. On-street parking shall be for temporary or overflow parking only. No garage located on a Lot shall be used for any purpose other than the parking of vehicles and other household items, and in no event shall any such garage be converted to living area. In no event shall a disabled or inoperable vehicle be maintained where visible from neighboring property. Vehicles may not park on the front or side yard landscape, with the only exception being parking on an approved driveway expansion constructed of 1/4“ minus decomposed granite.

Campers, Boats, Commercial, Recreational, and all other Motorized Vehicles

No motor vehicle classed by manufacturer as exceeding 3/4 ton, mobile home, travel trailer, camper shell, boat, or other similar equipment or vehicle may be parked, maintained, or repaired on any lot or on any street so as to be visible from neighboring property. Temporary parking of recreational vehicles, boats and similar equipment will be permitted, if it is apparent that the item(s) are being loaded or unloaded. All motorized vehicles, including ATVs, motorcycles, go-carts, and similar vehicles (such as dune buggies) are prohibited from entering onto any common areas. No commercial vehicles exceeding a gross vehicle weight of 10,000 pounds shall be parked on streets or lots in the community. Vendors may park for a reasonable amount of time while rendering a service.

Pets

Residents are allowed to keep a reasonable number of generally recognized house or yard pets. Animals cannot be kept or raised for commercial purposes, and they are not allowed to make an unreasonable amount of noise or become a nuisance to neighbors. Dog runs must have prior approval of the Committee. Dogs must remain on leashes at all times while outside fenced yards and are not allowed on or within 100 feet of tot lots or play areas. All owners must clean up after their pet.

Audiotaping or Videotaping of Board and Member Meetings

Per to A.R.S. §33-1804(A), the Board of Directors has the authority to adopt reasonable rules governing the audiotaping and videotaping of open Board Meetings and Member Meetings. Pursuant to this authority, the Board of Directors adopts the following resolution regarding rules for the audiotaping or videotaping of Open Board Meetings and Member Meetings.

1. For in person meetings, the audiotaping or videotaping device must always be visible to the Board of Directors while audiotaping or videotaping.
2. For in person meetings, the audiotaping or videotaping device and any tripod used must not obstruct the view of any person in attendance at the meeting.
3. For in person meetings, all audiotaping or videotaping devices must run on batteries. The Association cannot guarantee that power will be available and power cords cause a tripping hazard to those in attendance.
4. Any audio or video tape of a meeting, regardless of whether the meeting is in-person, virtual or telephonic, shall not be edited.
5. The resulting audio or video tape, regardless of whether resulting from in-person, virtual or telephonic meeting, may only be presented to Members and cannot be delivered to non-Members or posted where non-Members have access to hear or view the audiotaping or videotaping, except as used as evidence in a dispute resolution proceeding.

Fine Policy & Fine Appeal Process

Effective March 26, 2024

Fine Policy

The following Fine and Appeals Policy shall be followed for Castlegate Community Association.

First notice: A courtesy notice of the violation shall be mailed via regular mail to the homeowner requesting compliance within fourteen (14) days - NO FINE.

Second notice: If violation still exists, a second notice requesting compliance within fourteen (14) days shall be mailed to the homeowner. A $25.00 FINE will be assessed and due immediately with the second notice.

Third notice: If violation still exists, a third notice requesting compliance within fourteen (14) days shall be mailed to the homeowner. A $50.00 FINE will be assessed and due immediately with the third notice.

Fourth notice: If violation still exists, a fourth notice requesting compliance within fourteen (14) days shall be mailed to the homeowner. A $100.00 FINE will be assessed and due immediately with the fourth notice.

Continuing violations: If the violation continues without resolution after the fourth notice, a FINE of $100.00 shall be assessed every fourteen (14) days until the violation is resolved. In addition, the Board shall have the right to remedy the violation and/or take legal action, the cost of which shall be billed to the homeowner and collected as allowed by Arizona Revised Statutes.

Fines: No fine shall be imposed without first providing a written warning to the Owner describing the violation and stating that failure to stop the violation within no less than fourteen (14) days or another recurrence of the same violation within three (3) months of the original violation shall make the Owner subject to imposition of a fine.

Notwithstanding the foregoing, the Board reserves the right to remedy, regardless of the presence or absence of notices hereunder, any violation that the Board determines in its sole and absolute discretion constitutes a material danger to persons or property or requires immediate action for any other substantial reason.

Violation Appeal Process

• When a violation notice is sent to a homeowner, the notice includes a statement notifying the homeowner that they have the “Right of Appeal”.
• When a homeowner wants to appeal a violation, they must send the Management Company written notice that they are requesting an appeal of the violation.
• Appeals shall be received within ten (10) days of the date of the fine notification (violation letter).
• Appeals shall demonstrate extenuating circumstances which require deviation from the CC&R’s and/or guidelines.
• Appeals shall include all pertinent backup information to support the existence of the extenuating circumstance.
• All decisions of the Board are final and may not be further appealed.
• Any appeal that does not meet the above requirements shall be heard by the Board and shall be considered DENIED.
• If a homeowner wishes to appeal in person, the homeowner appealing the violation will be given written notice that the appeal is scheduled.
• The appeal shall be heard in Executive Session.
• The Board President will introduce all parties.
• Lengthy discussions are not a part of an appeal process.
• The homeowner who is appealing will be asked to state their case and present any documentation that is applicable.
• Each Board Member will have the opportunity to ask the homeowner specific questions regarding the appeal.
• Upon completion of the question and answer period, the Board President will state that the appeal has been heard and the Board will make their decision in closed session. Then “Written Notice” will be given to the homeowner of the Board’s decision within seven (7) working days.
• If the appeal is denied, the homeowner must bring the violation into compliance within fourteen (14) days. If the violation still exists after fourteen (14) days, the homeowner will be fined $100.00 every fourteen (14) days until the violation is corrected. In addition, the Board of Directors may seek legal action to remedy the violation.

Assessment Collection Policy

Effective July 1, 2021

The following Assessment Collection Policy shall be followed for Castlegate Community Association.

Defined Terms

Late Charges means the charges applied to an account in compliance with Arizona Revised Statute §33-1803(A), as described below.

Owner means the owner of the property whose responsibility it is to bring an account current.

Payment Plan means a board-authorized written payment plan containing terms described below.

Late Charges

In compliance with Arizona Revised Statute §33-1803(A), a late charge of Fifteen Dollars ($15.00) or ten percent (10%) of the unpaid assessment, whichever is greater, will be applied to every account showing any part of an assessment ($15.00 or greater) that is over 15 days past due.

Assessment Collection Procedures

• A written reminder will be mailed to the Owner on the sixteenth (16th) day after the assessment due date stating that the Owner has a past-due assessment and a late charge has been applied to the Owner’s account. The Owner is responsible for paying all late charges.

• A written demand letter will be mailed to the Owner on the sixtieth (60th) day after the assessment due date and trash collection services will be suspended. The delinquent account is assessed a fee for the preparation of the demand letter and the Owner is responsible for paying this fee.

• A notice of lien will be filed with the county recorder on every account that shows the assessment being at least ninety (90) days past due. The delinquent account is assessed a fee for the preparation and filing of the notice of lien and the Owner is responsible for paying this fee. The lien shall not be released until such time as the account is paid in full.

• Thirty (30) days after a lien notice is recorded on the property, should the account remain delinquent, the Board will determine how to proceed with collection efforts, which may include one of the following:

  a. For accounts with an outstanding balance of less than Three Thousand Five Hundred Dollars ($3,500.00), the Community may file a complaint in Small Claims Court to pursue a personal judgment against the Owner or the account may be referred to an attorney or a collection agency. If a complaint is filed in Small Claims Court and the account is not paid in full or the Owner does not enter into a Payment Plan prior to a personal judgment being obtained, the account may be referred to an attorney or a collection agency for collection upon obtaining the personal judgment. The Owner is responsible for paying all collection costs, legal fees, document preparation fees, and other costs permitted by law or contract.

  b. For accounts with an outstanding balances greater than Three Thousand Five Hundred Dollars ($3,500.00), the account may be referred to an attorney or a collection agency for further collection proceedings at the discretion of the Board of Directors. The Owner is responsible for paying all collection costs, legal fees, document preparation fees, and other costs permitted by law or contract.

• For properties that have been foreclosed upon, the Board of Directors has sole discretion as whether to take action to collect past due assessments.

Applying Payments Received on Past Due Accounts

Per Arizona Revised Statute §33-1256(K), unless an Owner directs otherwise, all payments received on an Owner’s account shall be applied in the following order:

1. Past Due Assessments;
2. Late Charges;
3. Collection Fees (including demand letter, notice of lien, and other applicable document preparation and filing fees);
4. Attorney Fees and Costs; and
5. Other unpaid fees, charges and monetary penalties, or interest and late charges on any of those amounts.

Payment Plans

The Board of Directors authorizes Payment Plans for past due balances (including past due assessments and related fees) (the ‘Debt’) with the following terms:

• Payment Plans shall be in writing and signed by the Owner. Payments made without benefit of a written Payment Plan signed by the Owner will not be treated as payments toward the Payment Plan and collection activity shall be initiated in accordance with the Assessment Collection Procedures outlined above.
• The Payment Plan length and the amount of the monthly installments owed will be determined by the amount of the Debt:
  • If the Debt is less than $500.00, a payment plan of six months (six equal monthly installments) will be offered.
  • If the Debt is $500.01 to $1,000.00, a payment plan of twelve months (12 equal monthly installments) will be offered.
  • If the Debt is $1,000.01 or more, a payment plan of eighteen months (18 equal monthly installments) will be offered.
• Late Charges as provided in this Assessment Collection Policy will not be charged on the Debt during the term of the Payment Plan so long as payments are received in accordance with the Payment Plan.
• The Owner will be responsible to pay additional assessments as they become due while a Payment Plan remains in effect. Future assessments cannot be included in the Payment Plan amount.
• All Payment Plans will be monitored by the managing agent.
• Upon default of Payment Plan, the managing agent will resume collection efforts with the next step of the Assessment Collection Procedures without further notice to the Owner based on where in the process the amount was at the time the Payment Plan commenced.

Waiver of Past Due Amounts

The Board of Directors will generally not consider waiver of late fees, lien fees, attorneys’ fees, or other collection costs incurred on an account where the assessments were not paid in accordance with the Assessment Collection Policy through no fault of the Association or its Agent(s). However, the Board of Directors retains full discretion to make business decisions concerning the collectability of accounts and their compromise or settlement.

Transfer Fee

The undersigned, representing a majority of the members of the Board of Directors of Castlegate Community Association, an Arizona non-profit corporation, hereby take the following actions at a duly called meeting of the Board held on January 25, 2021.

WHERAS pursuant to Article 7, Section 7.13 of the Declaration of Covenants, Conditions and Restrictions for Castlegate Community Association (CC&R’s) ‘Each Purchaser of a Lot shall pay to the Association immediately upon becoming the Owner of the Lot a transfer fee in such amount as is established form time to time by the Board to compensate the Association for the administrative cost resulting from the transfer of a Lot.

RESOLVED that the Board of Directors hereby establishes such transfer fee in the amount of $250.00. Such Transfer Fee shall be made payable to Castlegate Community Association and shall be used for maintenance, repair and replacement of the common areas within the Community.

FURTHER RESOLVED such Transfer Fee shall be effective as of February 1, 2021.

IN WITNESS WHEREOF, the undersigned has executed this consent as of this 27th day of

January, 2021.

Edward Fabritis II

President and Director, Board of Directors

Castlegate Community Association

Board Code of Conduct

Effective February 1, 2019

Pursuant to the authority contained in the Arizona Revised Statutes and the governing document of the association, the Board of Directors of the Castlegate Community Association Inc. hereby adopts the following resolution by unanimous consent for and as the actions of the Castlegate Community Association, as of the date set forth above:

RESOLVED, to adopt the following:

The Homeowners Association Board of Directors has approved the following code of conduct for its members to ensure that they maintain a high standard of ethical conduct in the performance of the Association business, and to ensure that the residents maintain confidence in and respect for the entire Board.

The following principles and guidelines constitute the code of conduct.

• Board Members shall attend as many meetings as possible and prepare in advance by reviewing all materials.
• Board Members shall act in a courteous and civil manner toward other directors, owners, residents, employees and contractors of the Association in all forms of communication, including social media.
  • Follow the rules of decorum and etiquette for every meeting,
  • Harassment and discrimination, while on or off Board duty, will not be tolerated
  • Be sensitive to individual differences, respectful of dissenting opinions and cooperative in implementing the will of the majority of the Board.
  • Board Members shall not engage in any writing, publishing, speech making or conversation that defames any other member of the Association Board or Resident of the Association community. This includes communication on social media
• Board Members will not divulge confidences or sensitive information to non-directors. All information discussed during an Executive Session will not be discussed with anyone outside of the Board & Management and Legal Representation.
  • Board members will protect confidentiality of all personal information of homeowners and fellow board members.
• Board members will make themselves familiar with the CC&Rs, Design Review Guidelines and other rules that govern the HOA.
• Board Members will ensure that they follow the Governing Documents of the Association, including any use restrictions, and obligation for fees and expenses charged by the Association
• Board Members shall not make promises of any kind to a homeowner, resident, subcontractor, supplier or contractor during negotiations, unless approved by the Board.
• Board Members shall recognize the Board’s fiduciary obligation on behalf of all owners and use sound business judgement in all decision-making. This fiduciary duty includes not allowing others to take any actions that do not conform to the governing documents of the HOA.
• Board Members shall refrain or abstain from voting on any issues which will result in a direct personal economic benefit beyond any benefit that would generally accrue to all owners and residents of the Association.
  • Board Members shall not use their position as a Board member for private gain:
  • Board Members shall not accept a gift or favor made with intent of influencing decisions or action on any official matter
  • Board Members shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value from a person who is seeking to obtain contractual or other business or financial relations with the Association
  • Board Members shall not receive any compensation from the association for serving as a Board Member.
  • Board Members shall not knowingly misrepresent facts to the residents of the community for the sole purpose of advancing a personal cause or influencing the community to place pressure on the Board to advance a Board member’s personal cause.
• Board Members will not interfere with a contractor implementing a contract in progress. All inquiries with contractors will go through management or be in accordance with policy.
• Board Members will not interfere with the system of management established by the Board and the management company.
• Board Members will not harass, threaten, or attempt through any means to control or install fear in an Association contractor, other board members, management company personnel or home owner.
• The Board of Directors as a Board will not endorse a candidate running for election to the Board, nor will any HOA funds be used to endorse a candidate.

Any Board member who violates this code of conduct understands that the Board of Directors may remove him / her from the office they hold on the board.