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17th FAIRWAY VILLA HOUSE RULES

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Table of Contents A. Occupancy (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((4

1. Use of Apartments 2. Animals (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((5

3. Conduct of Tenants, Guests and Other Persons 4. Appointment of Local Agent/Notification of Rental Agreements 5. Rules of Governmental Authority (((((((((((((((((((((((((((((((((((((((((((((((((((((6 6. Child Care Provider Policy

B. Use of Common and Limited Common Elements(((((((((((((((((((((((((((((((((((((((((((((6

1. Parking and Vehicles 2. Camping(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((7 3. Fireworks

4. Barbecuing 5. Feeding of Ducks and other Feral Animals 6. Garage Use((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((7

7. Obstructions 8. Repair and Maintenance of Apartments 9. Damages to the Common Elements

C. Noise and Nuisances 1. Noises and Nuisances (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((8

2. Specific Rules 3. Soliciting Prohibited(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((9

D. Safety Considerations 1. Supervision of Children 2. Scooters, Skateboards 3. Flammable or Dangerous Liquids

4. Right of Entry in Favor of Association 5. Refuse & Green waste

E. Aesthetic Considerations ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((10

1. Cleanliness, Attractive Appearance of Apartments and Private Yards 2. No Objects to be Hung from Windows or Railings

3. Signs, Posters and Security Signs or Stickers 4. Entry Ways 5. Antennas and Satellite Dishes

F. Repairs, Maintenance and Modifications(((((((((((((((((((((((((((((((((((((((((((((((((((((11

1 Repairs and Maintenance 2 Modifications and Additions((((((((((((((((((((((((((((((((((((((((((((((((((((((((((14 3 Board May Require Removal of Unauthorized Work


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G. Violations of these Rules (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((14 1. Reporting Violations and Damages

2. Damage of Common Elements 3. Remedies

H. Fines for Non(Compliance to Governing Documents (((((((((((((((((((((((((((((((((((((((((((15 1. Fines Schedule 2. General Violation Information ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((17

I. Appeals Process((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((18 J. Violation Report(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((19


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These “House Rules” represent the rules for the Fairway Villas at Waikoloa Association of Apartment Owners (“Project”) and supplement, but do not change the obligations of Owners and tenants contained in official condominium documents pertaining to the Project (By(laws, Declaration of Condominium Property Regime). In the event there is any inconsistency between these House Rules and/or the Declaration and/or the By(Laws, the Declaration and/or

By(Laws will prevail. They apply specifically to Owner(residents and tenants of 17th

Fairway Villas at Waikoloa AOAO as well as to members of their families and guests, and shall be enforced by the Board of Directors (“Board”) of the Association of Apartment Owners (“Association”), and/or the Managing Agent.

These rules are intended to serve as a guide for the consideration of others and for the application of common sense in order to create a friendly, pleasant and congenial atmosphere in the Project. Compliance helps to ensure the quiet enjoyment of the Association as well as maintain property values.

The Board has the responsibility to make such other rules from time to time or to amend the foregoing rules as may be deemed needful for the safety, care and cleanliness of the premises

and for securing the comfort and convenience of all the occupants of the 17th

Fairway Villas at Waikoloa AOAO (Bylaws Article IV, Section 4.03 (q) and 5.05).

The primary purpose of these House Rules is to protect the Owners and other occupants, including tenants and guests, from annoyance and nuisance caused by improper use of the Project, the enjoyment, comfort and security of all residents and the reputation and desirability of the Project. The Board of Directors of the Association of Apartment Owners (the "Board") is responsible for enforcing the House Rules, but the responsibility may be delegated to the Managing Agent if one is employed by the Board.

A. OCCUPANCY

1. Use of Apartments

Apartments shall only be used for residential purposes and/or purposes accessory to the residential use of the Project. Apartments will not be used for transient or hotel purposes. Rentals of less than 30 days are prohibited. Time(sharing and Vacation Club activities are prohibited. No more than six persons may reside in any Apartment. If tenants and their guests do not comply with these House Rules and other governing documents the Owner may be fined, and/or legal action may be taken against the Owner and all tenants of the premises may be evicted at the expense of the Owner. Owners are encouraged to make sure that not only are their tenants provided a copy of the House Rules and By(laws but also, they ensure all tenants know the consequences of non(compliance – be it fines and/or eviction.


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2. Animals

No more than 2 pets are permitted in any Apartment (cats, dogs, parakeets, canaries) or any number of small fish. The Board of Directors must pre(approve all pets, and proof of license and vaccinations also must be presented to the Board or Managing Agent. Tenants of an Apartment Owner may keep a pet in an Apartment provided that written authorization is obtained from the Owner and the Board; and, all other provisions in these House Rules related to pets are met. No outdoor pets are allowed even if they are leashed. Pets are not permitted within the common areas of the Association except when in transit to and from the Association and must be on a leash or in a carrier. All incidental pet waste must be removed from common and limited common areas promptly. Any animal that is causing a nuisance or any unreasonable disturbance, including excessive barking and/or whining, to any other occupant of the Project by reason of the failure of the Owner/Resident to exercise appropriate control over the animal shall be permanently and promptly removed upon notice given by the Board.

3. Conduct of Owners, Tenants, Guests, and Other Persons

All Apartment Owners and occupants have a right to expect and enjoy peace and quiet at their Unit especially from 10 p.m. to 8 a.m. without having loud noises or conversations from nearby Units. All occupants are asked to be considerate and thoughtful when outside their Unit or inside the Unit with the windows open. Owners are responsible for the conduct of their guests, tenants and tenant's guests and will be held responsible for the behavior of guests and tenants to the same extent as if the Owners themselves were violating the rules. If Owners are unable to control the conduct of their tenants or their tenant's guests, the Owners will, upon request of the Board or Managing Agent, immediately remove such person or persons from the Project and the Board and the Association will not be liable for any lost rents or other damages suffered by the Owners. Tenants may NOT sublet any or all of a Unit under a rental agreement. Only those tenants listed on the Owner’s lease/rental agreement may reside in the Apartment or have their vehicles parked within the Project on a consistent basis. Guest parking is for regular, non(commercial vehicles of casual guests of no more than 7 days in any given month.

4. Appointment of Local Agent/ Notification of Rental Agreement

Owners shall designate a local Agent or contact to represent them if their residence is outside of a 30(mile radius of the Project in Waikoloa, Hawaii or if

they will be absent from the Project for more than thirty days (30). The Owners will file their out(of(town address and telephone number, and the address and telephone number of their local Agent, with the Board or Managing Agent and keep such information up to date as soon as any changes occur. All Owners that rent their Apartments must provide a copy of the rental agreement and


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contact information to the Board or Managing Agent prior to tenant occupancy. This requirement is part of the Hawaii State Landlord – Tenant Code and is required.

5. Rules of Governmental Authority

Each Owner, tenant, or guest shall at all times observe and comply with all laws, ordinances, rules and regulations now and hereafter made by any governmental authority or the Association applicable to the use of the Project.

6. Child Care Provider Policy

Childcare is limited to Owner(occupants. The following requirements must be met prior to engaging in such activity: 90 days notice of intent to operate, proof of liability insurance, and compliance with ADA rules are required. Parent waiver of liability and proof of insurance forms must be kept current and on file with the Board or Managing Agent. Childcare must not cause undue hardships on Owners of the Association. All residents are entitled to quiet enjoyment of their units, screaming and other loud noise nuisances are not permitted.

B. USE OF COMMON AND LIMITED COMMON ELEMENTS

1. Parking and Vehicles

Homeowner, occupant, tenant, and/or guest vehicles may be parked only in the

garage or within the paved driveways of each unit. No more than two vehicles

are to be parked in any driveway. Guests (temporary visitors of 7 days or less)

are permitted to park in the visitor parking stalls. These stalls are not for the use

of owners and/or tenants with one exception. Owners and/or tenants may rent a

visitor parking stall for their excess vehicles at a cost of $50/month payable in

advance.

No vehicles may be parked in the roadway except during loading or unloading.

Trailers, large commercial vehicles, boats and other similar vehicles may not be

parked within the confines of the project. The posted speed on the project

roadway is 10 MPH and vehicles are not permitted to exceed that speed.

a. Violations

The Board or its managing agent, when dealing with parking and speeding

violations, may take any action deemed necessary to remedy the situation

including the vehicle being towed if warnings fail to motivate the vehicle owner.

The owner will be held responsible for the cost of corrective action and any fines

imposed.


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b. Repairing Cars, etc

No car repairs or adjustments may be made at any time on the Common Elements of the Project.

c. Responsibility for Damage

Damage to cars and other objects or to the Common Elements shall be the responsibility of the person causing the damage.

2. Camping

Camping or use of tents on the Common Elements of the Project is not allowed at any time.

3. Fireworks

Use of fireworks of any kind anywhere in the Project is strictly prohibited at all times.

4. Barbecuing

Outdoor cooking is permitted only on the back lanai of the Private Yard of the individual Apartments. All refuse and residue related to such outdoor cooking will be cleaned up and be disposed of properly. (See section C(Noise & Nuisances regarding the use of charcoal lighter fluid.)

5. Feeding of feral animals

Feeding of feral animals on 17th

Fairway Villas @ Waikoloa Project is not permitted.

6. Garage Use

Garages are part of each Apartment and shall be used only for the parking of vehicles and no garage shall be eliminated or converted to other uses. New residents will be provided a 10(day grace period in which to unpack and clear their garage in order to park their vehicles. No more than two vehicles per driveway. Additional vehicles must be parked off site and not in visitors parking.

7. Obstructions

No Apartment Owner or occupant shall place, store or maintain on walkways, roadways, grounds or other common elements any furniture, packages, or objects of any kind or otherwise obstruct transit through such common elements.


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8. Repair and Maintenance of Apartments

Every Apartment Owner, at their own expense, at all times, shall substantially repair, maintain, amend and keep his or her Apartment and the limited common elements appurtenant thereto, including without limitation all internal installations such as water, electricity, telephone, sewer, sanitation, air conditioning, lights and all other fixtures and accessories belonging to their Apartment and the interior decorated or finished surfaces of all walls, floors and ceilings of the Apartment, with all necessary reparations and amendments, whatsoever in good order and condition and shall be liable for all loss or damage whatsoever caused by his or her failure to perform any such work diligently, and, in case of such failure after reasonable notice to perform, shall reimburse to the Association promptly on demand all expenses incurred by the Association in performing any such work authorized by the Board or Managing Agent.

9. Damages to the Common Element

All Apartment Owners and occupants shall reimburse the Association for any and all expenses incurred by the Association in repairing or replacing any uninsured loss or damage, to the common elements and equipment including the irrigation system caused by such Owner or occupant or any person under them. Owners, occupants or their guests are required to report to the Board or Managing Agent promptly, any such loss or damage or other defect in the Project when discovered. All concerns must be submitted in writing by filling out the form provided by the Board and/or Managing Agent.

C. NOISE AND NUISANCES

1. Noises and Nuisances

No nuisance shall be allowed in the Project nor shall any use or practice be allowed which is improper or offensive in the reasonable opinion of the Board or which is in violation of the By(Laws or these House Rules or which unreasonably interferes with or is an unreasonable annoyance to the peaceful possession, quiet enjoyment and proper use of the Project by other Owners or occupants. All occupants are asked to be considerate and thoughtful when outside their Unit or inside the Unit with the windows open. Non(compliance to these considerations may result in fines, legal action and, in the case of tenants, eviction proceedings.

2. Specific Rules

a. Excessive Noise and Objectionable Odors or Actions Prohibited

Residents and other occupants of the Apartments shall avoid unreasonable


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excessive noise of any kind at all times and shall not cause or permit any unreasonably disturbing noise or objectionable odors to emanate from their Units including, but not limited to, excessive use of charcoal lighter fluid, animal noises and smells, trash and/or clippings and obscene behavior or language.

b. Hours for Workmen

No workmen will be allowed in any Apartment before 8:00 a.m. or after 7:00 p.m. except in an emergency.

c. Hours for Reduced Volume for Televisions, Radios. Stereos, Vehicles, and other Outdoor/Indoor Gatherings and Conversations

The volume from activities shall be reduced to a minimum after 10:00 p.m. and before 8:00 a.m. including, but not limited to, all gatherings and/or parties, outdoor and indoor conversations, radios, TVs, stereos, vehicles and the like to a level allowing for the quiet enjoyment of all other residents in the Project.

d. Departure of Guests Minimizing Noise

When guests of any Apartment are leaving at night, noise must be kept to a minimum.

3. Soliciting Prohibited No commercial, religious or any other form of soliciting is allowed in the Project. Report all solicitations to the Board or Managing Agent.

4. Harassment

No owner, tenant, or personnel employed by the association shall be verbally harassed or threatened in any way, for any reason, or be subjected to lewd, improper gestures. Any resident or employed personnel who have been subjected to such behavior should document the incident at once, and report the incident to the Management Company.

Neither the Management Company, members of the Board of Directors, or any personnel employed by the association are to be contacted by phone, or at their home, or confronted in any way, regarding a citation or to submit a complaint except in case of emergency. An emergency is an immediate threat to life or property, in which case 911 should be called. Direct confrontation, as described above, will be treated as harassment. Any behavior, which interferes with the rights of any tenant to enjoyment of the property in peace including but not


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limited to loud behavior of any sort, shouting, slamming doors, loud harassing talk outside a resident’s unit, etc. will not be tolerated.

C. SAFETY CONSIDERATIONS

1. Supervision of Children

Children play at their own risk in the Project and should be supervised by an adult at all times. Such risks may include unattended equipment, poisonous substances, fertilizers, open pits, etc., which may be left or stored within the common areas. Parents are responsible for the actions of and will exercise control over their children.

2. Scooters, Skateboards

The operation of skateboards, rollerblades, scooters or any unlicensed motorized devices is not permitted within the Project.

3. Flammable or Dangerous Liquids

Flammable liquids such as gasoline, kerosene, or explosive materials or articles deemed hazardous to life, limb, or property will not be stored anywhere within the Project, except in connection with the use of small tools or appliances (e.g. lawn maintenance equipment), by an Owner or tenant.

4. Right of Entry in Favor of Association

Every Owner, tenant, or guest hereby grants right of entry to any person authorized by the Board in the event of an emergency originating in or threatening an Apartment, whether or not the Owner or occupant is present at the time.

5. Refuse

No refuse, garbage or trash of any kind shall be thrown, placed or kept on any common elements of the Project outside of the disposal facilities provided for such purpose. No refuse, garbage, trash or green waste may be stored within the private yard of any Apartment. Green waste may be placed in the on(site dumpsters the evening prior to the scheduled pick(up.

E. AESTHETIC CONSIDERATIONS

1. Cleanliness, Attractive Appearance of Apartments and Private Yards


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All Owners and tenants are responsible for the cleanliness and maintenance of their Apartments, patios, driveways, private yards and other limited common areas. Said areas shall be maintained in a neat, attractive, and sanitary condition.

2. No Objects to Be Hung from Windows or Railings

No garments, rugs, bedding, carpeting, or anything else shall be hung from windows, fences or facades of the Project.

3. Signs and Posters

No Owner or tenant shall place or maintain any posters or signs whatsoever that is visible from the exterior of any Apartment. Real Estate “For Sale” signs are only permitted as follows; one small real estate “For Sale” sign in the rear of the lanai area of the Apartment and one similar sign inside the front window of the Apartment. In lieu of individual garage sales by an Apartment Owner, which are not permitted in the Project, there will be a Community Garage Sale once every six months in which all interested Units may participate. In the case of a real estate open house, a single small sign may be placed near each entry area and one in the yard of the Apartment, all of which may only be in place during the hours of the open house. In all cases prospective buyers must be directed to park outside of the Project and walk to the property. No propping open of the entry gates is allowed. Security Signs or stickers issued by a contracted Security Company can be posted in the front window or rear window of a unit.

4. Entry Ways

No Owner or tenant shall decorate or landscape any entrance of his or her Apartment or any other portion of the Project except in accordance with the standards therefore established by the Board or specific plans approved in writing by the Board. At all times entry ways must be neat and tidy, maintained in an aesthetically pleasing manner, contain a minimal amount of clutter (e.g. shoes, toys) and not be used for any kind of storage.

5. Antennas and Satellite Dishes

No Apartment Owner or tenant shall, without prior written approval of the Board, as to the item's size and placement, install on the roof of any Apartment any antennae or satellite dish as defined in Section 514A(89 of the Condominium Property Act.

F. REPAIRS, MAINTENANCE, AND MODIFICATIONS


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1. Repairs and Maintenance:

a. Apartment Owner's Duty to Repair and Maintain

Every Owner, from time to time and at all times, shall promptly perform all repair and maintenance work within or upon his Apartment, the omission of which would adversely affect any Common Element or any other Apartment and shall be responsible for all loss and damage causes by his failure to do so.

b. Liability

Except as provided by law, nothing shall be allowed, done or kept in any Apartment or Common Element of the Project which would overload or impair the floors, walls or roofs thereof, or cause any increase in the premium rates ordinarily prevailing for the use allowed or the cancellation or invalidation of any insurance thereon maintained by or for the Association.

c. Repairs to Apartments to be at Owner's Expense

All repairs of internal installations within each Apartment, such as plumbing and electrical fixtures and accessories belonging to such Apartment, including the walls and floor coverings of such Apartment, shall be at the Owner's expense. All repairs to the exterior of each Apartment are at the expense of the individual Owner of said Apartment. The Owner must, prior to any exterior changes to the Apartment, obtain Board approval. Failure to obtain prior board approval may result in the Owner being required to restore the property to its original condition.

d. Repairs Affecting Common Elements

Unless otherwise agreed by all the Owners, a licensed contractor shall perform any repairs or maintenance, which may affect the Common Elements.

e. Repairs and Maintenance to Limited Common Areas

These are areas within the Project that are designated or set aside for the exclusive use of certain Apartments. The limited common areas are as follows and are to be maintained at the sole cost of the respective Apartment Owners.

1) Private Yards

The yards that are under and surrounding each of the Apartments including, without limitation, the portion of driveways within the Private Yards are the responsibility of the respective Owners to maintain. A list of approved plants is attached as Exhibit A and also can be found on the Associations website. No plant material should be changed or replaced


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without prior written approval from the Board or Managing Agent. All Owners or their tenants are required to maintain the Private Yards in a clean and well(manicured manner. All weeds should be removed and proper maintenance, fertilization and pest control should be provided in a timely manner. The front and side yards will be restricted to the approved plant material list. The rear yards will be permitted more latitude within a range of tropical plants and colors to ensure an aesthetically pleasing and uniform appearance within the Association. All required sprinkler head repairs within the private yards will be billed back to the respective Owner. Apartment owners, tenants or their landscaping agents are prohibited from making repairs or modifications to the irrigation system. If leaks or breaks are present in the irrigation pipe in your yard notify the Board or Managing Agent.

2) Lanai Furniture

Only Outdoor lanai furniture will be permitted on the lanais (no indoor furniture such as sofas, etc.) Lanai’s must be kept clean and tidy.

3) Water, Sewer and Drain Lines

All lines, with the exception of the irrigation system, located under the Private Yard of an Apartment which serve only that Apartment shall be maintained by the Apartment Owner. Please report all leaks within the irrigation system to the Board or its Managing Agent. When a home is left vacant for a period greater than two weeks, the owner is responsible to ensure that the ball valve that controls water flow into the apartment is turned to the off position. This prevents water wastage and protects the inside of the unit from water damage in the event of fixture leakage or breakage.

4) Walkways Any walkway located between any two Apartments shall considered for the exclusive use of said Apartments and maintained at the expense by those same Apartment Owners.

5) Mailboxes One mailbox shall be appurtenant for the exclusive use of each Apartment. The Cost for replacement of said mailbox and keys will be at the cost of the individual Owner.

6) Roofs


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The structures and roofs all Apartments shall be inspected periodically and Apartment Owners shall ensure that all necessary or prudent repairs are made promptly by a licensed contractor.

2. Modifications and Additions

If required by the Declaration and/or By(Laws, any modification or additions to an Apartment or Common Element must receive the prior approval of the Board.

a. Signs

Owners or tenants shall not place any signs in or on buildings or in or upon any other Common Area except as permitted by the Board.

b. Written Pre(approval for all Exterior Changes Required

The Board requires the presentation of written plans and specifications for all changes affecting the appearance of the exterior of any Unit prior to any changes being made; and, as the Board deems appropriate, it may require such plans to be prepared by a registered architect or engineer prior to approval. Any work not so approved may be required to be removed at the request of the Board at the Owners expense.

c. No Attachment of Objects to the Exterior without Board Approval

No Owner or tenant, except with the written consent of the Board, shall permit the attachment, hanging, projection, or protrusion of any object, including garments, wiring or other devices for electrical or telephone installations, television, machines, or other equipment or appurtenances on the exterior of a building or protruding through the walls, windows, or roof thereof.

3. Board May Require Removal of Unauthorized Work

The Board may inspect any work and may order the removal of any work, which has not been approved, or which may adversely affect the Common Elements or the exterior appearance of the Project.

G. VIOLATIONS OF THESE RULES

1. Reporting Violations and Damages


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Alleged violations of the DCC&R or the House Rules should be reported on the

“DCC&R and House Rules Violation Report Form” which is appended to this

document or available from the Managing Agent or on our website at

http://hmcmgt.com click “Links” drop down menu listed then click “Community

Lookup” type in 17th Fairway Villas. Click “Resident Services” then “Online

Forms”. The form should be completed, signed, and submitted to our Managing

Agent. It will then be submitted to the Board for investigation. If warranted the

Board will issue a letter of warning and/or possibly a violation letter if warranted.

Please note all sections of the “DCC&R and House Rules Violation Report Form”

form must be complete, before the Board will investigate.

2. Damage to Common Elements

Any damage to the Common Elements shall be surveyed by the Board or other authorized personnel at the direction of the Board and the cost of repair or replacement and any legal fees incurred may be assessed by the Board against the person or persons responsible, including, but not limited to, any Owner for damages caused directly or indirectly by his tenants or such Owner's (or his tenant's) family members, domestic servants, or guests.

3. Remedies

The violation of any of these House Rules shall give the Board or its Agents the right to:

a. Enter Apartments

Enter the Apartment and/or Limited Common Elements in which, or as to which, such violation or breach exists and to summarily abate and remove, at the expense of the defaulting Owner (whether or not caused by the Owner or any person for whose conduct the Owner may be responsible), any structure, thing or condition that may exist therein contrary to the intent and meaning of the provisions hereof, and the Board or the authorized Agents shall not thereby be deemed guilty in any manner of trespass.

H. FINES FOR NON(COMPLIANCE TO GOVERNING DOCUMENTS

The governing documents of the 17th

Fairway Villas @ Waikoloa AOAO expressly provide that the Board of Directors has the authority to adopt fines to enforce the provision of those documents.

The board has established a schedule of fines and penalties for the violation of the documents

that govern the 17th

Fairway Villas at Waikoloa AOAO by an Owner, Owner(occupant, resident, tenant, Owner's families and/or guests. Fines and penalties will be levied against the Owner of

http://hmcmgt.com/


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the Apartment in all cases. Unpaid fines and penalties may constitute a lien against the Apartment that could result in foreclosure. Any rules and regulations promulgated pursuant to this procedure shall provide that no fine or penalty shall be levied without the following procedural safeguards:

Notice of the violation by the resident and/or the Apartment occupant of a violation will be provided to the Owner of the Apartment. If the unit is rented, and proper notification is made to the Board or its Managing Agent, the Board may also notify the Owner’s Managing Agent in addition to the unit Owner. For expediency, a copy of the violation notice may also be posted on the door of the corresponding Apartment. Notification of the Owner’s Managing Agent and posting on the door of the Apartment is not a requirement to enforce the correction of the violation or to assess fines. A copy of this “Fines and Appeals Process” will be provided along with the notice of the violation and assessment of the fine. Unless otherwise stated within the Fine Schedule of these House Rules, The first violation notice will be a warning notice only and no fine will be assessed. This process does not allow the Apartment to continue the violation of the House Rules or preclude action by the Board or its Agent to remedy the violation. Corrective action must be taken immediately upon written notice of a violation in accordance with the notice.

The Board of Directors pursuant to the Bylaws has adopted the following schedule of fines.

1. FINE SCHEDULE

a. Violation of General Rules:

1st violation written Notice .......................... Warning* 2nd violation Written Notice and Fine..................$100 3rd violation Written Notice and Fine..................$200

* No warning notice will be required for severe nuisance and/or dangerous violations which the Board, at its sole discretion, deems severe enough to warrant an immediate fine.

b. Fines for Violation of Parking or Nuisance Rules and/or in Dangerous Situations:

For the first violation, owners of illegally parked vehicles will have twenty(four hours from written notice to remove the vehicle before a fine will be charged. All vehicles parked in front of any particular Unit, or identifiable to a Unit but parked in the Guest Parking area or other Common Areas, are assumed to be from that Unit. Owners/occupants should notify the Board or its Managing Agent immediately if a vehicle is parked in front of their Unit that is not associated with their Unit.

Nuisance violations and/or situations that endanger others will be fined immediately and repeatedly if the situation remains unresolved. If the situation becomes so unreasonable that


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the Board or other community members must take action to address the situation, the fines will be doubled. Blatant disregard of House Rules may result in a) more severe fines and/or b) other actions to correct the situation which shall be at the sole discretion of the Board. The first fine will be $100.00 and then $50.00 for each day thereafter until the situation is completely remedied. If the violation persists or is of an ongoing or sporadic nature the $50.00 per day violation fine will continue to apply.

c. 150% of Costs Charged for the Association to Correct Action

Further action may include the Association contracting to have the corrective measures taken and, if so, the Owner will be charged at 150% of the cost of the contractor’s fees and materials over and above the fines being assessed. 2. General Violation information:

a. Scope and Frequency This schedule is not intended to be an exhaustive list of potential violations for which a fine may be assessed. The Board of Directors may assess fines for any violation of the

documents that govern the 17th

Fairway Villas @ Waikoloa AOAO. Fines at the highest violation level may continue against the Owner(s) until the violation has ended for a period of a minimum of six months. Chronic violators may be assessed at the highest levels at a more frequent time frame if the violator is not making a reasonable effort to remedy the violation. All fines are payable within thirty days (30) from notice of being assessed unless appealed. All fines will be assessed against the Owner of the unit involved and it is the responsibility of the Owners to collect fines from their tenant(s). Repeat occurrence of the same violation within 6 months will result in immediate fines at the highest possible level.

b. Failure to Pay Fines Failure to pay fine(s) will result in the fine(s) being deducted from the Owner’s maintenance fee payment which may cause a delinquency. Any maintenance fee account delinquent for more than sixty days (60) will be referred to the Association’s attorney for collection. Delinquent Owners will be responsible for all legal fees, collection and court cost.

c. Fines are assessed against the Owner of the unit All fines are assessed against the Owner of the Unit at or from which the violation is occurring. It is recommend that Owners state in their rental agreements that “fines will be paid by the tenant and the fine be payable with the next monthly rental payment”. Non(payment by a tenant is not grounds for the Owner to not pay any fines that have been assessed. The Owner of the unit is ultimately responsible for the payment of the fine. Fines are due and payable with the next month’s maintenance fee payment. Refer to Assessment Payment Resolution.

I. APPEALS PROCESS


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1. The Owner of the unit shall have thirty days (30) to appeal the fine from the date of the notice. All requests for appeal must be written and delivered to the Managing Agent or the Board within the 30(day period. Verbal request will not be accepted. Request for appeal may be sent US Certified Mail to:

At the time of this revision: 17th Fairway Villas @ Waikoloa AOAO C/o Hawaiiana Management Company

7495620 Palani Rd. Suite 215 Kailua9Kona, Hawaii 96740

Or, at the then9current Managing Agent’s address.

This process does not allow the Owner to continue the violation of the House Rules or preclude action by the Board or its Agent to remedy the violation. Corrective action must be taken upon written notice of a violation in accordance with the notice. Only fines may be appealed.

2. The board shall institute a panel of at least three (3) members (one of whom shall be designated as Chairman) who shall hear the charges and evaluate the evidence of the alleged violation(s).

3. At such hearing, the Owner so charged shall have the right to present oral and written evidence and to question witnesses.

4. The panel shall deliver to the Owner so fined within fourteen (14) days after the hearing a written decision, which specifies the fines or penalties, levied, if any, and the reasons therefore.

5. The written decision shall include the time frame in which the corrections must be

made in order to avoid additional fines and/or further action. Further action may include the Association Board of Directors contracting to have the corrective measures taken and, if so, the Owner will be charged at 150% of the cost of the contractor’s fees and materials over and above the fines being assessed.

J. DCC&R & HOUSE RULES VIOLATION REPORT

Date of Notice to the 17th Fairway Villas Board of Directors_____________________________ Name_______________________________________________ Your Unit #___________________________________________


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Reference # of DCC&R or House Rule Violation (Found in the Governing Documents for AOAO) ___________________________________________________________________________ Unit # of the Violation__________________________________ If you have spoken with the Owner of the Unit about this situation, please document the date and time here: _________________________________________________________________________ Summary of the violation:

To be completed by the 17th Fairway Villas Board of Directors or Management Company Representative Name__________________________________ Date received_____________