Serratoga Falls Metropolitan District No. 2

Covenant Enforcement Policy 

Policy for the Enforcement of Covenants, Architectural and Landscape Designs
1. Purpose. The purpose of this Policy is to provide transparency to Owners regarding the enforcement of the Declaration of Covenants, Conditions, and Restrictions for Serratoga Falls (“Covenants”) by the Serratoga Falls Metropolitan District No. 2 (“District”).
2. Notice of Violation and Opportunity to Cure. When the District Board of Directors (“Board”) or its authorized representative determines, in its sole discretion, that a violation(s) of the Covenants has occurred, the Owner shall receive written notice of the violation(s) requiring Owner to cure said violation(s) within thirty (30) days of the date of the written notice, or within such other time period deemed by the Board to be in the best interest of the Owners and residents of the District.
3. Fines. Failure by Owner to cure said violation(s) within thirty (30) days of written notice, or within such other time period deemed by the Board to be in the best interest of the Owners and residents of the District, shall result in the imposition of the following fines:
a. Continuous Fines. Fines that are continuous in nature include those which are applied to ongoing violations not fully remedied in accordance with the Covenants. Continuous fines shall be imposed as follows:
i. $25.00 per day for each violation outstanding up to fourteen days after passage of the deadline to cure each violation;
ii. $50.00 per day for each violation outstanding more than fourteen (14) days but no more than twenty-eight days after passage of the deadline to cure each violation; and
iii. $100.00 per day for each violation outstanding thereafter.
4. Request for a Hearing. Upon receipt of a notice of a violation, Owner shall have twenty (20) days from the date of the notice to request a hearing with an Impartial Decision-Maker, as defined under Section 32-1-1004.5, C.R.S., to dispute any violation(s). The Board shall, upon a request for a hearing, set and provide written notice of the date, time and place of hearing to Owner. The hearing shall be open to attendance to the public.
5. Hearing Procedures. The hearing procedures shall be as follows:
a. The Board, through the chair of the meeting, shall direct all proceedings at the meeting. The Board, through the chair, may exercise its discretion as to the specific manner in which the hearing shall be conducted and may take such reasonable action during the course of the hearing as it deems appropriate to ensure an orderly and efficient hearing and to reach a just decision. The Board and Owner may be, at their distraction, represented by legal counsel or another designee. The hearing procedures shall include the following:
b. At the beginning of the hearing, the chair will describe the specific provision of the Covenants which is alleged to have been violated by Owner, including the date and place.
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c. Owner shall be asked to admit or deny the violation. If admitted, then no further proceedings are necessary and the Impartial Decision-Maker shall find that the violation(s) occurred, with such determination provided to the Owner within seven days of the hearing.
d. If denied, the Board shall present evidence and testimony regarding the alleged violations( s). The Owner may ask questions of any witnesses presented
e. Following the presentation of evidence and testimony by the Board, the Owner may present evidence and testimony regarding the alleged violations(s). The Board may ask questions of any witnesses presented.
f. Upon completion of the presentation of the evidence and testimony, the Owner and the Board may each make a closing statement.
6. Determination of Alleged Violation(s). Upon completion of the hearing, the Impartial Decision-Maker shall determine whether the violation(s) occurred, with such deliberation to be held immediately after the hearing or at a meeting open to the public held no later than fourteen (14) days following the hearing. Such decision shall be provided in writing to the Owner withing seven days of the determination, which may include a requirement to cure and fines. Such determination shall be final.
7. Failure to Appear. If Owner or its designated representative fails to appear at the hearing, the Impartial Decision-Maker may accept evidence showing the alleged violation(s) and make a determination as if Owner had appeared.
8. Failure to Cure or Pay Fine/Lien/Enforcement. If Owner fails to cure the violation(s) following a determination that a violation occurred and/or fails to pay the fine imposed, the District may pursue any remedy available in law or equity to the District under the Covenants or Colorado law. Until paid, any fee, rate, toll, fine, penalty, or charge assessed according to this Policy shall constitute a perpetual lien on and against the property unit for which the covenant enforcement and design review services were provided. Further, the Board, by resolution and at a public meeting held after notice has been provided to an affected Owner, may elect to have certain delinquent fees, rates, tolls, fines, penalties, charges, or assessments made or levied for covenant enforcement and design review services certified to the county treasurer to be collected and paid over in the same manner as taxes are authorized to be collected and paid.
The prevailing party in any court proceeding shall be entitled to recover from the other party their reasonable attorney fees and costs incurred in prosecuting or defending the court proceeding.
9. No Hearing Required. In the event the alleged violation(s) constitute an immediate threat to the health, safety and welfare of the public or property within the District, the District may pursue any remedy available to it in law or equity to abate the violation, including, for example, an injunction; the assistance of law enforcement, the fire department, animal control, or other enforcement authorities. Upon request by an Owner contesting the alleged violation, a hearing shall be held as soon as practicable thereafter to determine the nature of the violation(s) and any applicable fines.
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10. Enforcement of Building Restrictions. Notwithstanding any law to the contrary, an action shall not be commenced or maintained to enforce the terms of any building restriction contained in the Covenants to compel the removal of any building or improvement because of a violation of the terms of any such building restriction, unless the action is commenced within one year after the date that the District first knew or, in the exercise of reasonable diligence, should have known of the violation forming the basis of the action.
11. Option to Mediate. Any controversy between the District and an Owner that arises out of the enforcement of Covenants may be submitted to mediation by agreement of the parties prior to the commencement of any legal proceeding. Either party to the mediation may terminate such mediation process without prejudice. If a mediation agreement is reached between the District and Owner, the mediation agreement may be presented to a court as a stipulation. The stipulation shall not include a requirement that the Owner pay additional interest or unreasonable attorney fees. If either party subsequently violates the stipulation, the other party may apply immediately to the court for relief.
12. Supersedes and Replacement. This Resolution, upon adoption, supersedes and replaces all prior resolutions and policies of the District related to the enforcement of covenants and the architectural and landscape guidelines.