AMENDED AND RESTATED RESPONSIBLE GOVERNANCE POLICIES
OF
SILVERJACK HOMEOWNERS ASSOCIATION,
a common interest community
These Amended and Restated Responsible Governance Policies (the “Policies”) of Silverjack Homeowners Association, a Colorado nonprofit corporation (the “Association”), are adopted this 16th day of July, 2022.
ARTICLE I
PURPOSES
Section 1.1 The Association. The Association is a Colorado nonprofit corporation charged with administering Silverjack Subdivision, a common interest community, located in the Gunnison County, Colorado in accordance with the terms and conditions of the Amended and Restated Declaration of Silverjack Subdivision.
Section 1.2 Requisite Policies. C.R.S. § 38-33.3-209.5 of the Act requires that to promote responsible governance, common interest community associations must adopt policies and procedures, and rules and regulations concerning the following matters:
Section 1.2 Requisite Policies. C.R.S. § 38-33.3-209.5 of the Act requires that to promote responsible governance, common interest community associations must adopt policies and procedures, and rules and regulations concerning the following matters:
Conducting meetings.
Accessing Association records. Collecting unpaid assessments. Enforcing covenants and rules. Addressing disputes arising between the Association and Lot Owners. Developing reserve fund studies. Developing a plan for establishing reserve funds. Handling conflicts of interest involving Directors. Procedures for amending the Governing Documents. |
Section 1.3 Adoption of Policies. Consistent with its obligations under the Act and the Governing Documents, and to address other matters concerning the governance of the Association, the Board adopts the following policies and procedures.
Section 1.4 Definitions. The Definitions contained in the Declaration are incorporated by reference.
Section 1.4 Definitions. The Definitions contained in the Declaration are incorporated by reference.
ARTICLE II
NOTICE, COMMUNICATIONS
The following shall apply to notices and communications required by the Governing Documents.
Section 2.1 Notices. All notices or communications required by the Governing Documents shall be sent by email transmission to, as applicable, the Association, the Director, or the Lot Owners to the email address of such party set forth in the Association’s records. Notices sent by email shall be deemed to be in writing and sent on the date of successful transmission of the email.
Section 2.2 Option For Mail Delivery. Any Lot Owner may, by written notice to the Association, opt to receive notices and communications required by the Governing Documents by mail. In that event, notices and communications shall be sent by certified mail, return receipt requested. Notice shall be deemed delivered three days after the date such notice is mailed by certified mail. Any Lot Owner exercising such option shall be assessed an additional $50 each year to cover the additional cost of sending and receiving notices and communications by mail.
Section 2.1 Notices. All notices or communications required by the Governing Documents shall be sent by email transmission to, as applicable, the Association, the Director, or the Lot Owners to the email address of such party set forth in the Association’s records. Notices sent by email shall be deemed to be in writing and sent on the date of successful transmission of the email.
Section 2.2 Option For Mail Delivery. Any Lot Owner may, by written notice to the Association, opt to receive notices and communications required by the Governing Documents by mail. In that event, notices and communications shall be sent by certified mail, return receipt requested. Notice shall be deemed delivered three days after the date such notice is mailed by certified mail. Any Lot Owner exercising such option shall be assessed an additional $50 each year to cover the additional cost of sending and receiving notices and communications by mail.
ARTICLE III
MEETINGS
The following shall apply to the conduct of meetings by the Association.
Section 3.1 General Rules. The following rules apply to all Meetings of the Association.
Section 3.1 General Rules. The following rules apply to all Meetings of the Association.
3.1.1 Mannerly Behavior.
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3.1.1.1 Anyone wishing to speak must be recognized by the President.
3.1.1.2 Only one person may speak at a time. 3.1.1.3 Each person who speaks shall first state his or her name and Lot number. 3.1.1.4 All persons attending the meeting shall conduct themselves appropriately. Speaking out when not authorized or interrupting proceedings will not be permitted. Name calling, use of foul language, or any form of aggressive behavior will not be permitted. If an attendee cannot properly conduct himself or herself, law enforcement may be contacted to remove the attendee and/or the meeting may be adjourned. |
3.1.2 Recording. Meeting attendees may not record the proceedings by any means or fashion.
3.1.3 Meetings of Lot Owners. Annual meetings of the Lot Owners are held primarily to elect Directors to the Board but shall include such other matters as set forth in the Governing Documents and any other matters that have properly come before the Lot Owners pursuant to the Governing Documents. Special meetings of Lot Owners may be called pursuant to the Governing Documents. No business shall be transacted at a special meeting except as stated in the notice. All meetings of Lot Owners will be in person. 3.1.4 Notice of Annual Meeting. Notice of the date, place and time of the annual meeting shall be given to each Lot Owner at least thirty days prior to the date of the meeting. The Notice of Annual Meeting shall ask the Lot Owners to submit to the Board any matters to be included in the Agenda or any proposed amendments to the Governing Documents within ten days of the date of this Notice. A Lot Owner may waive notice of any meeting. 3.1.5 Notice of Agenda for Annual Meeting. Notice of the Agenda shall be given to each Lot Owner at least ten days prior to the date of the meeting. No item can be voted upon at the Annual Meeting unless it is in the Agenda for the Annual Meeting. No changes to the Governing Documents can be approved unless Lot Owners have received at least 10 day's notice of such change. Proxy forms will be included with the Notice of Agenda. A copy of any proposed amendment to any of the Governing Documents that will be considered at the annual meeting will be either sent with the Notice of Agenda or sent separately to the Lot Owners. A Lot Owner may waive notice of the Notice of Agenda. 3.1.6 Notice of Special Meeting of Lot Owners. Notice of the date, place, time, and business to be transacted shall be given to each Lot Owner at least ten days prior to the date of the meeting. 3.1.7 Quorum. A majority of the Lot Owners of the Association in good standing and in actual attendance in person or by proxy at any annual or special meetings of the Association shall constitute a quorum at such meeting for the purpose of transacting business. If a quorum is present, the affirmative vote of a majority of the Lot Owners present at such meeting in person or by proxy and entitled to vote on the subject matter shall be the act of the membership, unless the vote of a greater number is required by the Amended Articles, the laws of the State of Colorado, or the Declaration. 3.1.8 Voting of Proxies. At all meetings of the Lot Owners, a Lot Owner may vote by a proxy executed in writing by the Lot Owner or by his or her duly authorized attorney in fact. Such proxy shall name either the Board or the name of only one person and shall be received by the Association or a Board member by email or in writing at least 48 hours before the start of the meeting. No proxy shall be valid after eleven months from the date of its execution unless otherwise provided in the proxy. 3.1.9 Order of Business. The order of business at the annual meeting, and as applicable at any special meeting, shall be as follows: |
Roll call
Proof of Notice of Meeting Approval of minutes Reports of Directors, Officers, and committees Unfinished business New Business Election of Directors Adjournment |
Section 3.2 Meetings of the Board.
3.2.1 Regular Meetings. The regular meeting of the Board shall be held immediately after and at the same place as the annual meeting of the Lot Owners of the Association. Additional regular meetings shall be held at least quarterly at a time and place to be designated in the notice of such meetings.
3.2.2 Special Meetings. Special meetings of the Board may be called by the President or any two Directors. Any special meeting shall be held at a time and place designated in the notice of such meeting. 3.2.3 Quorum. A majority of the Board shall constitute a quorum for the transaction of business at any meeting of the Board. The act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board, unless the act of a greater number of Directors is required by the Articles of Incorporation, the statutes of the State of Colorado, or the Declaration. 3.2.4 Notice. Notice of any meeting of the Board shall be given to all Directors and Lot Owners at least 5 days prior to the meeting. In an emergency, the Board may meet without giving any notice to Lot Owners. Any Director may waive notice of any meeting. The attendance of a Director at a meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the expressed purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Notice of Board meetings shall be posted on the Association website. 3.2.5 Lot Owners Attendance. Meetings of the Board are open for attendance by Lot Owners, or their properly designated representatives as follows: |
3.2.5.1 Lot Owners or their properly designated representatives shall give 48 hours’ notice of their intention to attend a meeting.
3.2.5.2 At the beginning of each meeting, Lot Owners in attendance will be given agendas for the meeting unless such agendas have been posted for at least 5 days on the Association website. 3.2.5.3 After the meeting is called to order, and after the routine matters, such as Officer/committee reports have been taken care of, Lot Owners shall have an opportunity to make comments or voice concerns on any matter on the agenda or other matters of concern to them. The Board may limit the length of time any Lot Owner may speak on any one topic and may limit the number of Lot Owners allowed to speak on any one topic. 3.2.5.4 At a time determined by the Board, but prior to a vote by the Directors, Lot Owners present at such time shall be afforded an opportunity to speak on the motion as follows: |
3.2.5.4.1 The President will ask those Lot Owners present to indicate by a show of hands who wishes to speak in favor or against the motion. The President will then determine a reasonable number of persons who will be permitted to speak in favor of and against the motion and for how long each person will be permitted to speak. The President shall also announce the procedure for who shall be permitted to speak if not everyone will be permitted to speak.
3.2.5.4.2 Following Lot Owners’ input, the President will declare Lot Owners’ input closed and there shall be no further Lot Owners participation on the motion at hand unless a majority of the Board votes to open the discussion to further Lot Owner participation. |
3.2.6 Action without a Meeting. Pursuant to C.R.S. § 7-128-202, the Board is entitled to act without a meeting. The following procedure will be followed when action is to be taken without a meeting:
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3.2.6.1 A notice via email will be sent to each Director by the President or another Director authorized to do so by the President, setting forth the action that is proposed to be taken, the time by which a response is to be received from Director , and that the failure of a Director to respond within the time stated will have the effect that the Director has abstained from voting and has not called for a meeting.
3.2.6.2 Directors shall either vote for the action, vote against the action, abstain from voting, or fail to respond. 3.2.6.3 The proposed action is deemed approved if the affirmative number of votes received within the time to respond equals or exceeds the minimum number of votes required to pass the action at a meeting at which all Directors were present and no Director has demanded by email within the time for a response that a meeting be held. 3.2.6.4 The action taken shall be effective at the expiration of the time period for a response. |
ARTICLE IV
ACCESSING ASSOCIATION RECORDS
The following applies to the keeping, inspection and copying of the Association’s records.
Section 4.1 Association Documents. The Association shall keep copies of the following documents and records:
Section 4.1 Association Documents. The Association shall keep copies of the following documents and records:
4.1.1 Lot Owners:
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4.1.1.1 The names of the Owners of each Lot, together with their current telephone numbers, physical mailing address(es), and email address(es).
4.1.1.2 A list of Directors and Association Officers together with their current telephone numbers, physical mailing address(es), and email address(es). |
4.1.2 Governing Documents.
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4.1.2.1 The Plat and the Declaration, and any amendments thereto.
4.1.2.2 The Association’s Articles of Incorporation, Bylaws, Responsible Governance Policies, and the Rules and Regulations and any amendments thereto. |
4.1.3 Actions by the Association.
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4.1.3.1 Minutes of all Lot Owner meetings and Board meetings, together with all notices of such meetings, proposed budgets, proposed amendments, records of all actions taken at such meeting, ballots, proxies, and other records related to voting by owners, all exclusive of executive sessions of the Board. Records relating to proxies and voting shall only be retained for two years after the date of the meeting.
4.1.3.2 Written communications among, and the votes cast by, Directors that are related to an action taken by the Board without a meeting. |
4.1.4 Financial Documents. Financial documents shall be retained to the extent available. At a minimum, tax returns shall be retained for the past seven years, and all other financial documents shall be retained for the past three years.
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4.1.4.1 All financial statements showing the Association’s assets, liabilities, and results of its operations
4.1.4.2 Operating budgets of the Association. 4.1.4.3 Results of any financial audits or reviews. 4.1.4.4 All tax returns filed by the Association. 4.1.4.5 Records of receipts and expenditures affecting the operation and administration of the Association. 4.1.4.6 Bank account statements and records. |
4.1.5 Other Documents:
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4.1.5.1 Copies of all the Association’s insurance policies, including, but not limited to, property, general liability, association director and officer professional liability, and fidelity policies.
4.1.5.2 Any reserve studies. 4.1.5.3 Current written contracts to which the association is a party and contracts for work performed for the Association. 4.1.5.4 All written communications of the Association within the last three years to all Lot Owners. 4.1.5.5 Any other documents or records the Board desires to include. |
4.1.6 Copies of Documents. Except as may be otherwise directed by the Board, the Association shall keep all Association records in PDF or some similar format. Except for Governing Documents, documents five or more years old may be archived and properly stored.
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Section 4.2 Access to Association Documents. Subject to the limitations set forth below, all Association’s records are available for examination and copying by a Lot Owner or the Lot Owner’s authorized agent.
4.2.1 Request for copies. To obtain copies of any records, a Lot Owner must submit to the Association a written request describing with particularity the records sought. The Association shall, within 30 days of the request, forward such documents to the requesting Lot Owner by email transmission or other similar means. Depending on the documents requested, the Lot Owner may be charged a reasonable amount, to be paid in advance, to cover the costs of labor for providing the documents and a flash drive or other electronic storage device, if required.
4.2.2 Alternate formats. If the documents are desired in a format other than by email transmission, the Lot Owner shall so specify in the document request, in which event, the Lot Owner will be charged a reasonable amount, to be paid in advance, to cover the costs of labor and material for providing the copies in the format requested. 4.2.3 Organization of Documents. The Association’s Records will be delivered as kept. The Association is not obligated to compile or synthesize information for the Lot Owner. 4.2.4 Lot Owner Information. Upon request of any lot owner, the Association shall provide the names and physical address(es) of the Lot Owners showing the number of votes each Lot Owner is entitled to vote provided, however, that such information shall not include the phone numbers or email address(es) of such Lot Owners unless the Lot Owner has specifically agreed to the Association providing that information. 4.2.5 Use of Records. Association records, or any part thereof including membership list, shall not be: |
4.2.5.1 Used by any Person for a purpose unrelated to an Owner’s interest as a Property Owner. 4.2.5.2 Used to solicit money or property. 4.2.5.3 Used for any commercial purpose. 4.2.5.4 Sold or purchased by any person. |
Section 4.3 Limitations on access to records. The following records will not be made available for inspection or copying:
4.3.1 Contracts, leases, bids, or records related to transactions to purchase or provide goods or services that are currently in or under negotiation.
4.3.2 Communications with legal counsel that are otherwise protected by attorney-client privilege or the attorney-work-product doctrine. 4.3.3 Records of which disclosure would be in violation of law. 4.3.4 Records of an executive session of the Board. 4.3.5 Records concerning properties other than those of the requesting owners. 4.3.6 Personnel, salary, or medical records relating to specific individuals. 4.3.7 Personal identification and account information of Lot Owners, including bank account information, telephone numbers, email addresses, driver’s license numbers, and social security numbers. |
ARTICLE V
COLLECTING UNPAID ASSESSMENTS
The following shall apply to the collection of unpaid assessments by the Association.
Section 5.1 Obligation to Pay Assessments. Each assessment or charge is an obligation of the Lot Owner at the time the assessment or other sums are levied. Each assessment or charge is also a lien on the Lot Owner’s property from and after the time the Association causes a Notice of Delinquent Assessment Lien to be recorded with the County Clerk’s Office.
Section 5.2 Notice of Assessments. The Association will give the Lot Owners notice of the annual assessment or any special assessment. The Association may elect, from time to time, to provide a statement of assessments and charges, but lack of statements does not relieve the Lot Owners of the obligation to pay the assessments.
Section 5.3 Designation of Agent. The Board may designate an agent or agents to collect assessment payments and administer this collection policy. The designated agent may be an Officer of the Association, manager, bookkeeper, attorney, or other appropriate agent.
Section 5.4 Due Date/Delinquency Date of Assessments. Unless otherwise specified by the Board, regular assessments are levied annually and are due 30 days after the annual meeting, and special assessments are due on the date designated by the Board. An assessment, or any portion thereof, is delinquent if payment is not received by the Association when it is due. Delinquent
assessments shall bear interest at the rate of 1.5% per month, compounded monthly, from the date of delinquency.
Section 5.5 Late Charges. After 30 days past due, an assessment, or any portion thereof, that is unpaid shall incur a monthly $25 late charge until paid.
Section 5.6 Return Check Charges. A return check fee of $50 shall be assessed against a Lot Owner in the event any check or other instrument attributable to, or payable for the benefit of, the Lot Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including insufficient funds.
Section 5.7 Attorneys’ Fees. The Association shall be entitled to recover its reasonable attorney fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent Lot Owner. The reasonable attorney fees incurred by the Association shall be due and payable immediately when incurred, upon demand.
Section 5.8 Interest and Collection Charges. Any costs, charges, and fees incurred in processing and collecting delinquent amounts, including, without limitation, late charges, return check charges, charges for preparation of delinquency notices or referral to collections, postage, copies, and attorney’s fees and court costs shall bear interest at the rate of 1.5% per month from the date incurred, and shall become an additional charge against the Lot Owner and the Lot Owner’s property and shall be subject to collection pursuant to this collection policy.
Section 5.9 Application of Payment. Payments shall be applied first to late charges, return check charges, charges for preparation of delinquency notices, referral to collections, postage, copies, and attorney’s fees and court costs, and second to any delinquent assessments and interest thereon.
Section 5.10 Delinquency Notices. Lot Owners who are delinquent 30 days after the due date will receive a Notice of Delinquent Assessment and Intention to send the account to a designated collection agent within 30 days. Accounts remaining delinquent more than 60 days after the due date may have a lien filed against the Lot Owner’s property and/or may be turned over to the Association’s attorney or collection agent for collection in accordance with the terms of the Governing Documents.
Section 5.1 Obligation to Pay Assessments. Each assessment or charge is an obligation of the Lot Owner at the time the assessment or other sums are levied. Each assessment or charge is also a lien on the Lot Owner’s property from and after the time the Association causes a Notice of Delinquent Assessment Lien to be recorded with the County Clerk’s Office.
Section 5.2 Notice of Assessments. The Association will give the Lot Owners notice of the annual assessment or any special assessment. The Association may elect, from time to time, to provide a statement of assessments and charges, but lack of statements does not relieve the Lot Owners of the obligation to pay the assessments.
Section 5.3 Designation of Agent. The Board may designate an agent or agents to collect assessment payments and administer this collection policy. The designated agent may be an Officer of the Association, manager, bookkeeper, attorney, or other appropriate agent.
Section 5.4 Due Date/Delinquency Date of Assessments. Unless otherwise specified by the Board, regular assessments are levied annually and are due 30 days after the annual meeting, and special assessments are due on the date designated by the Board. An assessment, or any portion thereof, is delinquent if payment is not received by the Association when it is due. Delinquent
assessments shall bear interest at the rate of 1.5% per month, compounded monthly, from the date of delinquency.
Section 5.5 Late Charges. After 30 days past due, an assessment, or any portion thereof, that is unpaid shall incur a monthly $25 late charge until paid.
Section 5.6 Return Check Charges. A return check fee of $50 shall be assessed against a Lot Owner in the event any check or other instrument attributable to, or payable for the benefit of, the Lot Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including insufficient funds.
Section 5.7 Attorneys’ Fees. The Association shall be entitled to recover its reasonable attorney fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent Lot Owner. The reasonable attorney fees incurred by the Association shall be due and payable immediately when incurred, upon demand.
Section 5.8 Interest and Collection Charges. Any costs, charges, and fees incurred in processing and collecting delinquent amounts, including, without limitation, late charges, return check charges, charges for preparation of delinquency notices or referral to collections, postage, copies, and attorney’s fees and court costs shall bear interest at the rate of 1.5% per month from the date incurred, and shall become an additional charge against the Lot Owner and the Lot Owner’s property and shall be subject to collection pursuant to this collection policy.
Section 5.9 Application of Payment. Payments shall be applied first to late charges, return check charges, charges for preparation of delinquency notices, referral to collections, postage, copies, and attorney’s fees and court costs, and second to any delinquent assessments and interest thereon.
Section 5.10 Delinquency Notices. Lot Owners who are delinquent 30 days after the due date will receive a Notice of Delinquent Assessment and Intention to send the account to a designated collection agent within 30 days. Accounts remaining delinquent more than 60 days after the due date may have a lien filed against the Lot Owner’s property and/or may be turned over to the Association’s attorney or collection agent for collection in accordance with the terms of the Governing Documents.
ARTICLE VI
ENFORCING RULES AND REGULATIONS
The following applies to routine enforcement of the Rules and Regulations. It does not apply to collection of assessments, emergency situations, or any situation where the Board determines that deviation from the policy is appropriate.
Section 6.1 Violations Deemed a Nuisance. Every violation of the Rules and Regulations is deemed to be a nuisance and is subject to all the remedies contained in the Governing Documents together with all public and private remedies allowed at law or equity.
Section 6.2 Reporting of Violation. Any Owner (including a Director) observing a violation of the Rules and Regulations may file a written complaint with the Association. At a minimum, the complaint must contain the following information:
Section 6.1 Violations Deemed a Nuisance. Every violation of the Rules and Regulations is deemed to be a nuisance and is subject to all the remedies contained in the Governing Documents together with all public and private remedies allowed at law or equity.
Section 6.2 Reporting of Violation. Any Owner (including a Director) observing a violation of the Rules and Regulations may file a written complaint with the Association. At a minimum, the complaint must contain the following information:
6.2.1 The name of violator, if known, or the Lot number, if known.
6.2.2 The date and time the incident was observed. 6.2.3 A description of the incident (photographs are preferred). 6.2.4 The name of the Lot Owner reporting the incident. |
If a Lot Owner is not willing to put the report in writing, the Board may take the position that the violation was not severe enough to warrant enforcement. In taking enforcement action on any violation, the Board must be able to prove that the violation occurred. Whether it can prove the violation will, in most cases, depend on the Owner observing the incident, photographs if provided, and his or her willingness to come forward.
Section 6.3 Confidentiality. The Board will keep the name of the complaining Owner confidential until and unless it becomes necessary as part of enforcement proceedings for that Owner to be identified.
Section 6.4 Board Action. When a violation is reported, the Association will take the following actions:
Section 6.3 Confidentiality. The Board will keep the name of the complaining Owner confidential until and unless it becomes necessary as part of enforcement proceedings for that Owner to be identified.
Section 6.4 Board Action. When a violation is reported, the Association will take the following actions:
6.4.1 Courtesy Letter. As soon as practicable after receipt of the complaint, the Association shall send a courtesy notice of such violation to the Owner of the Lot involved in the alleged violation.
6.4.2 Notice of Violation. If the violation has not been abated within 15 days after the courtesy notice was sent, the Association shall send a notice of violation to the Lot Owner involved in the alleged violation. The notice will state the particulars of the violation and request that the violation be corrected within ten days, or that the Board contacted within that time with an explanation of the owner’s position on the alleged violation. 6.4.3 Violation Cured. If the violation has been corrected within such ten days, no further action will be taken. 6.4.4 Violation not Cured. If the Board determines that the violation has not been corrected, the Board may take corrective action at the expense of the owner, turn the matter over to its attorney for enforcement, and/or may file a court action for enforcement or for injunctive relief. All the remedies set forth herein are cumulative and not exclusive. |
Section 6.5 Fees for Corrective Action and/or if Referred to an Attorney. The Association shall be entitled to recover its expenses, together with reasonable attorney fees and collection costs incurred in the enforcement of any Rules and Regulations. Such charges shall bear interest at the rate of 1.5% per month from the date incurred and shall become an additional charge against the Lot Owner and the Lot Owner’s property and shall be subject to collection. The reasonable attorney fees incurred by the Association shall be due and payable immediately when incurred.
Section 6.6 Application of Payment. Payments shall be applied first to attorney’s fees and court costs, and second to the delinquent assessments and interest thereon.
Section 6.6 Application of Payment. Payments shall be applied first to attorney’s fees and court costs, and second to the delinquent assessments and interest thereon.
ARTICLE VII
DISPUTES BETWEEN THE ASSOCIATION AND LOT OWNERS
The following applies to addressing disputes between the Association and Lot Owners.
Section 7.1 Informal Dispute Resolution. In the event of any dispute between the Association and a Lot Owner, for which a method, policy or procedure to address such dispute is not provided by the Governing Documents, the Lot Owner is invited and encouraged to meet with the Board, to resolve the dispute informally and without the need for litigation. If the Lot Owner requests to meet with the Board, the Board shall make a reasonable effort to comply with the Lot Owner’s request.
Section 7.2 No Precedent. Any settlement or compromise reached as a result of this Policy shall not constitute a precedent for purposes of any other subsequent dispute between the Association and any other Lot Owner.
Section 7.3 No ADR Required. Nothing in this policy shall be construed to require any specific form of alternative dispute resolution, such as mediation or arbitration, or to require the parties to meet. In addition, nothing in this Policy shall be construed to require the Association to mediate or arbitrate disputes between Lot Owners. Neither the Association, nor the Lot Owner waives any right to pursue whatever legal or other remedial actions are available to either party.
Section 7.1 Informal Dispute Resolution. In the event of any dispute between the Association and a Lot Owner, for which a method, policy or procedure to address such dispute is not provided by the Governing Documents, the Lot Owner is invited and encouraged to meet with the Board, to resolve the dispute informally and without the need for litigation. If the Lot Owner requests to meet with the Board, the Board shall make a reasonable effort to comply with the Lot Owner’s request.
Section 7.2 No Precedent. Any settlement or compromise reached as a result of this Policy shall not constitute a precedent for purposes of any other subsequent dispute between the Association and any other Lot Owner.
Section 7.3 No ADR Required. Nothing in this policy shall be construed to require any specific form of alternative dispute resolution, such as mediation or arbitration, or to require the parties to meet. In addition, nothing in this Policy shall be construed to require the Association to mediate or arbitrate disputes between Lot Owners. Neither the Association, nor the Lot Owner waives any right to pursue whatever legal or other remedial actions are available to either party.
ARTICLE VIII
RESERVE FUND STUDY
The following applies to establishing the Association’s Reserve Fund Study.
Section 8.1 Reserve Study. The Board shall conduct a study to determine the necessity and amount of reserves required to maintain, repair, replace, upgrade, and restore Association’s properties. Such study shall be conducted at any time the Board, in its discretion, determines the study is necessary. Such reserve study shall be conducted internally by a committee appointed by the Board which shall obtain such professional assistance as it deems necessary to accomplish the study. Expenses for the Reserve Study, including but not limited to any professional assistance, shall not exceed $5,000. The reserve study shall be based on a physical analysis and financial analysis. The reserve study shall be reviewed at least annually to determine if reserves are sufficient based upon current costs, economic conditions, and inflation.
Section 8.2 Fund Designation. Monies shall be kept in a Reserve Fund for use for major capital repairs, replacements, maintenance, care, restoration, and improvements to items for which the Association is responsible.
Section 8.3 Funding Plan and Sources. The Reserve Fund shall be funded primarily from Assessments and the investment income from the Reserve Fund in accordance with such funding plans as are established by the Board.
Section 8.4 Reserve Fund Investments. The Reserve Fund assets will be invested in accordance with the provisions of Section IX.
Section 8.5 Deviations. The Board may deviate from the procedures set forth in this policy if, in its sole discretion, such deviation is necessary under the circumstances.
Section 8.1 Reserve Study. The Board shall conduct a study to determine the necessity and amount of reserves required to maintain, repair, replace, upgrade, and restore Association’s properties. Such study shall be conducted at any time the Board, in its discretion, determines the study is necessary. Such reserve study shall be conducted internally by a committee appointed by the Board which shall obtain such professional assistance as it deems necessary to accomplish the study. Expenses for the Reserve Study, including but not limited to any professional assistance, shall not exceed $5,000. The reserve study shall be based on a physical analysis and financial analysis. The reserve study shall be reviewed at least annually to determine if reserves are sufficient based upon current costs, economic conditions, and inflation.
Section 8.2 Fund Designation. Monies shall be kept in a Reserve Fund for use for major capital repairs, replacements, maintenance, care, restoration, and improvements to items for which the Association is responsible.
Section 8.3 Funding Plan and Sources. The Reserve Fund shall be funded primarily from Assessments and the investment income from the Reserve Fund in accordance with such funding plans as are established by the Board.
Section 8.4 Reserve Fund Investments. The Reserve Fund assets will be invested in accordance with the provisions of Section IX.
Section 8.5 Deviations. The Board may deviate from the procedures set forth in this policy if, in its sole discretion, such deviation is necessary under the circumstances.
ARTICLE IX
PLAN FOR RESERVE FUNDING
The following applies to reserve funding:
Section 9.1 Capitalizing the Reserve Fund. The Board will determine the amount to be transferred to the Reserve Fund on an annual basis. This amount will be included in the Association’s annual budget.
Section 9.2 Investment. The Reserve Fund shall be maintained in a federally insured checking or savings account. In the event that there are reserve funds that will not be needed in the upcoming year, Reserve Funds may be invested in the following financial instruments that may be recommended by Association’s financial advisor and in accordance with Association’s financial goals:
Section 9.1 Capitalizing the Reserve Fund. The Board will determine the amount to be transferred to the Reserve Fund on an annual basis. This amount will be included in the Association’s annual budget.
Section 9.2 Investment. The Reserve Fund shall be maintained in a federally insured checking or savings account. In the event that there are reserve funds that will not be needed in the upcoming year, Reserve Funds may be invested in the following financial instruments that may be recommended by Association’s financial advisor and in accordance with Association’s financial goals:
9.2.1 Certificates of deposit. 9.2.2 Money market deposit accounts or funds. 9.2.3 US Treasury Bonds. 9.2.4 Municipal bonds. |
9.3 Review. All Reserve Fund investment decisions will be subject to the approval of the Board and will be reviewed on a yearly basis at the annual meeting.
9.4 Insurance. The Association shall maintain adequate fidelity coverage to protect against theft or misuse of the Reserve Funds.
9.5 Monthly Statements. The Association shall maintain monthly or quarterly reserve fund statements, including detailed accounting of all transactions.
9.4 Insurance. The Association shall maintain adequate fidelity coverage to protect against theft or misuse of the Reserve Funds.
9.5 Monthly Statements. The Association shall maintain monthly or quarterly reserve fund statements, including detailed accounting of all transactions.
ARTICLE X
CONFLICTS OF INTEREST INVOLVING DIRECTORS AND OFFICERS
The following shall apply to the standard of conduct, standards of behavior, and the handling of conflicts of interest involving Directors and Officers.
Section 10.1 Standards of Conduct. A Director and the Association’s Officers shall discharge his or her duties in good faith, with the care that an ordinarily prudent person would exercise in a like position, and under similar circumstances, and in a manner that he or she reasonably believes to be in the best interests of the Association. The duty of care includes the following:
Section 10.1 Standards of Conduct. A Director and the Association’s Officers shall discharge his or her duties in good faith, with the care that an ordinarily prudent person would exercise in a like position, and under similar circumstances, and in a manner that he or she reasonably believes to be in the best interests of the Association. The duty of care includes the following:
10.1.1 Directors and Officers should have knowledge of the provisions in the Governing Documents.
10.1.2 Directors and Officers act through the Board as a governing body and have no authority to make decisions or authorize action without having been given express authority to do so by the Board. 10.1.3 Directors and Officers should attend Board and Lot Owner meetings and diligently pursue any duties and tasks they are directed or volunteer to complete. 10.1.4 Officers are designated certain duties by the Bylaws and should fulfill those duties and other duties normally associated with that office. Where an Officer is uncertain as to authority to act in that capacity, he/she should seek guidance from the Board. |
Section 10.2 Standards of Behavior. Directors and Association’s Officers must understand that they are managing a business. Their behavior should be professional. Professional behavior includes courtesy towards the Association’s Lot Owners, managers, the committee members, and vendors. Professional behavior includes the avoidance of profanity or other inappropriate language and conduct, whether at meetings or in other places. Professional behavior includes putting the interests of the Lot Owners and the Association ahead of any personal agenda the Director or Officer may have.
Section 10.3 Code of Ethics. In addition to the above, each of the Directors and Association’s Officers shall adhere to the following Code of Ethics:
Section 10.3 Code of Ethics. In addition to the above, each of the Directors and Association’s Officers shall adhere to the following Code of Ethics:
10.3.1 No Director or Officer shall use his or her position for private gain, including for the purpose of enhancement of his or her financial status by using certain contractors or suppliers.
10.3.2 No contributions will be made to any political parties or political candidates by the Association. 10.3.3 No Director or Officer shall solicit or accept, directly or indirectly, any gifts, 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. 10.3.4 No Director or Officer shall accept a gift or favor made with the intent of influencing a decision or action on any official matter. 10.3.5 No Director or Officer shall receive any compensation from the Association for acting as a volunteer. 10.3.6 No Director or Officer shall knowingly misrepresent facts to the Lot Owners for the sole purpose of advancing a personal cause or influencing the community to place pressure on the Board to advance a personal cause. 10.3.7 No Director or Officer shall interfere with a contractor engaged by the Association while a contract is in effect. All communications with Association contractors shall go through the Board President or designee or be in accordance with policy. 10.3.8 No Director or Officer shall harass, threaten, or attempt through any means to control or instill fear in any Lot Owner or agent of the Association. 10.3.9 No promise of anything not approved by the Board as a whole can be made by any Director to any subcontractor, supplier, or contractor during negotiations. |
Section 10.4 Conflicts of Interest. “Conflicting Interest Transaction” means any relationship, whether contractual, financial, familial, or ownership between a Director or Officer and the Association or a person related to a Director or Officer and the Association or an entity in which the Director or Officer has an interest and the Association. “Conflicts of Interest” shall mean a Conflicting Interest Transaction or other interest in a matter that could result in a Director or Officer violating his or her Duty of Care as set forth above.
10.4.1 With respect to Conflicting Interest Transactions and Conflicts of Interest, the following shall apply: |
10.4.1.1 The Association shall make no loans to any Director or Officer. A Director or Officer shall make no loans to the Association.
10.4.1.2 Where a Director has a Conflict of Interest, any Director or Officer who has the relationship that creates the Conflicting Interest Transaction or who has a Conflict of Interest shall disclose to the Board the material facts as to that relationship or conflict. When a Director or Officer is uncertain as to whether he or she has a conflict, the Director or Officer should err on the side of disclosing material facts regarding the relationship. 10.4.1.3 The Association shall not enter into a Conflicting Interest Transaction when a Director or Officer has identified a conflict of interest unless all of the following are met: |
10.4.1.3.1 The transaction is fair to the Association.
10.4.1.3.2 The material facts of the relationship giving rise to the Conflicting Interests Transaction have been made known to the Board. 10.4.1.3.3 The Board, acting in good faith and by majority vote without the participation of the conflicted Director, approves the transaction. 10.4.1.4 Where a Director or Officer has a Conflict of Interest, he or she shall abstain from any vote or decision related to the matter involving the Conflict of Interest. |
This Policy shall be reviewed by the Board periodically.
ARTICLE XI
AMENDING GOVERNING DOCUMENTS
The following applies to any amendment of the Governing Documents.
Section 11.1 Purpose. The Governing Documents provide for their amendment to facilitate the efficient operation of the Association. The Declaration may be amended by an affirmative vote of 67% of Lot Owners. The Bylaws, these Policies and any Rules and Regulations may be amended by an affirmative vote of the Owners of 20 or more of the Lots. The voting for the amendment of any Governing Document may be done at an annual or special meeting or by written approval of the document. To allow and encourage Lot Owners to participate in any amendments to the Governing Documents, the Association shall follow the following procedures.
Section 11.2 Drafting Procedure. Any Lot Owner or Director proposing any amendment shall prepare a proposed draft of the amendment together with a short statement of the reasons for such amendment. The proponent shall consider the following:
Section 11.1 Purpose. The Governing Documents provide for their amendment to facilitate the efficient operation of the Association. The Declaration may be amended by an affirmative vote of 67% of Lot Owners. The Bylaws, these Policies and any Rules and Regulations may be amended by an affirmative vote of the Owners of 20 or more of the Lots. The voting for the amendment of any Governing Document may be done at an annual or special meeting or by written approval of the document. To allow and encourage Lot Owners to participate in any amendments to the Governing Documents, the Association shall follow the following procedures.
Section 11.2 Drafting Procedure. Any Lot Owner or Director proposing any amendment shall prepare a proposed draft of the amendment together with a short statement of the reasons for such amendment. The proponent shall consider the following:
11.2.1 Whether the amendment is authorized by the Governing Documents and consistent with Colorado law.
11.2.2 The need for such amendment based upon the scope and importance of the issue and whether the Governing Documents adequately address the issue. 11.2.3 The immediate and long-term impact and implications of the amendment. |
Section 11.3 Notice and Comment. Any proposed amendment by a Lot Owner shall be submitted to the Board prior to consideration at the next annual meeting or at a special meeting. The consideration of any amendment whether proposed by the Board or by a Lot Owner shall be listed on the agenda for such meeting, which notice shall include a copy of the proposed amendment and the statement of the reasons therefor. Lot Owners shall be allowed a minimum of 10 days to provide written comment on the proposed amendment. In addition, any Lot Owner who wishes to comment on the proposed amendment shall be afforded such opportunity at the annual meeting or special meeting in accordance with these Policies.
Section 11.4 Adoption Procedure. The amendment may be approved or disapproved at that meeting or continued for consideration to a later date. If the Amendment is approved, the amendment (including the effective date) shall be provided in writing to all Lot Owners. If the amendment is an amendment to the Declaration, the amendment shall be executed and recorded as provided by the Declaration.
Duly adopted the 16th day of July, 2022, by the Members of Silverjack Homeowners Association, a Colorado Nonprofit Association
SILVERJACK SUBDIVISION, INC.
Section 11.4 Adoption Procedure. The amendment may be approved or disapproved at that meeting or continued for consideration to a later date. If the Amendment is approved, the amendment (including the effective date) shall be provided in writing to all Lot Owners. If the amendment is an amendment to the Declaration, the amendment shall be executed and recorded as provided by the Declaration.
Duly adopted the 16th day of July, 2022, by the Members of Silverjack Homeowners Association, a Colorado Nonprofit Association
SILVERJACK SUBDIVISION, INC.