HOAproxy ← Harrington Trails Residential Community, Inc.

Document

Harrington Trails Residential Community, Inc. · 16 pages
Open PDF
Pages 1–3

DOC #2023117093 Pages 16 AFTER RECORDING RETURN TO: KRISTI E. STOTTS, ESQ. e WINSTEAD PC 401 CONGRESS AVE., SUITE 2100 AUSTIN, TEXAS 78701 [email protected] HARRINGTON TRAILS SECOND SUPPLEMENT TO COMMUNITY MANUAL AMENDED AND RESTATED POLICIES ADOPTED PURSUANT TO THE 2023 LEGISLATIVE SESSION Montgomery County, Texas Cross-reference to (i) Harrington Trails Amended and Restated Master Covenant [Residential], recorded as Document No. 2022061485, Official Public Records of Montgomery County, Texas (as amended or supplemented, the “Covenant”); and (ii) Harrington Trails Community Manual, recorded as Document No. 2020029822, Official Public Records of Montgomery County, Texas (as amended or supplemented, the “Community Manual”).

i 4866-4698-4844y.1 52952-38 HARRINGTON TRAILS RESIDENTIAL COMMUNITY, INC, SUPPLEMENTAL POLICIES | TABLE OF CONTENTS L AMENDED AND RESTATED FINE & ENFORCEMENT POLICY TABA 2. AMENDED AND RESTATED ASSESSMENT COLLECTION POLICY TAB B PLEASE NOTE THAT THESE POLICIES AND RULES ARE NOT ALL OF THE DOCUMENTS, RULES, OR POLICIES FOR THE ASSOCIATION. THE ASSOCIATION HAS AMENDED THE POLICIES AND PROCEDURES IN THIS DOCUMENT TO COMPLY WITH LEGISLATIVE CHANGES MADE DURING THE 2023 REGULAR SESSION OF THE TEXAS LEGISLATURE, IN THE EVENT THESE POLICIES AND RULES CONEFLICT WITH A PREVIOUSLY RECORDED DEDICATORY INSTRUMENT, THESE POLICIES AND RULES SHALL CONTROL.

4866-4698-4844v.1 52952-38 INTRODUCTION This Second Supplement to the Community Manual (this “Supplement”) is made by FORESTAR (USA) REAL ESTATE GROUP INC., a Delaware corporation, (“Declarant”) and is as follows: A. Declarant is the Declarant under that certain Harrington Trails Amended and Restated Master Covenant [Residential], recorded as Document No. 2022061485, Official Public

Pages 3–5

clarant”) and is as follows: A. Declarant is the Declarant under that certain Harrington Trails Amended and Restated Master Covenant [Residential], recorded as Document No. 2022061485, Official Public Records of Montgomery County, Texas, as amended from time to time (the “Covenant”) and that certain Harrington Trails Community Manual, recorded as Document No. 2020029822, Official Public Records of Montgomery County, Texas, as amended by that certain Harrington Trails First Supplement to Community Manual, recorded as Document No. 2021141439, Official Public Records of Montgomery County, Texas, as amended from time to time (the “Community Manual”).

B, Pursuant to Article 1 of the Covenant, Declarant reserved the right to amend or supplement the Community Manual during the Development Period (as defined in the Covenant). The Development Period has not yet expired.

c. Declarant now desires to amend the Community Manual with the polices attached hereto. This Supplement may be amended by the Declarant during the Development Period and, thereafter, by a Majority of the Board.

D. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Covenant and the Community Manual.

EXECUTED to be effective as of the date this Supplement is Recorded.

[SIGNATURE PAGE FOLLOWS] 4866-4698-4844v,1 52952-38 day of 0 oh .

DECLARANT: FORESTAR (USA) REAL ESTATE GROUP INC,, a Delaware corporation By: Name: /|Justine Klinke Title: Vice President THE STATE OF TEXAS § . § COUNTY OF Venn § is instrumentywas acknowledged befgre me on Ln porn { f ; 202 by REAL ESTATE GROUP INC., a Delaware co (SEAL) NOTARY PUBLIC BATE OF TEXAS 108 4130388966 COUN. EX? 08-01-2026 4866-4698-4844v.1 52952-38

is instrumentywas acknowledged befgre me on Ln porn { f ; 202 by REAL ESTATE GROUP INC., a Delaware co (SEAL) NOTARY PUBLIC BATE OF TEXAS 108 4130388966 COUN. EX? 08-01-2026 4866-4698-4844v.1 52952-38 TABA HARRINGTON TRAILS RESIDENTIAL COMMUNITY, INC.

AMENDED AND RESTATED FINE & ENFORCEMENT POLICY 1. Background. Harrington Trails is subject to that certain Harrington Trails Amended and Restated Master Covenant [Residential], recorded in the Official Public Records of Montgomery County, Texas, as the same may be amended from time to time (the “Covenant”). In accordance with the Covenant, Harrington Trails Residential Community Inc., a Texas nonprofit corporation (the “Association”) was created to administer the terms and provisions of the Covenant. Unless the Covenant or Applicable Law expressly provides otherwise, the Association acts through a majority of its board of directors (the “Board”). The Association is empowered to enforce the covenants, conditions and restrictions of the Covenant, Certificate, Bylaws, Community Manual, the Design Guidelines, (if adopted), any applicable Development Area Declaration, any applicable Notice of Applicability, and any rules and regulations promulgated by the Association pursuant to the Covenant or any Development Area Declaration as each may be, adopted and amended from time to time (collectively, the “Documents”), including the obligation of Owners to pay assessments pursuant to the terms and provisions of the Covenant and the obligations of the Owners to compensate the Association for costs incurred by the Association for enforcing violations of the Documents.

The Board hereby adopts this Fine and Enforcement Policy to establish equitable policies and

compensate the Association for costs incurred by the Association for enforcing violations of the Documents.

The Board hereby adopts this Fine and Enforcement Policy to establish equitable policies and procedures for the levy of fines within the Association in compliance with the Chapter 209 of the Texas Property Code, titled the “Texas Residential Property Owners Protection Act,” as it may be amended (the “Act”). To the extent any provision within this policy is in conflict with the Act or any other applicable law, such provision shail be modified to comply with the applicable law.

Terms used in this policy, but not defined, shall have the meaning ascribed to such term in the Documents.

Policy. The Association uses fines to discourage violations of the Documents, and to encourage compliance when a violation occurs —- not to punish violators or generate revenue for the Association. Although a fine may be an effective and efficient remedy for certain types of violations or violators, it is only one of several methods available to the Association for enforcing the Documents. The Association's use of fines does not interfere with its exercise of other rights and remedies for the same violation.

Qwner's Liability. An Owner is liable for fines levied by the Association for violations of the Documents by the Owner and the relatives, guests, employees, and agents of the Owner and Occupants. Regardless of who commits the violation, the Association may direct all communications regarding the violation to the Owner.

Amount. The Association may set fine amounts on a case by case basis, provided the fine is reasonable in light of the nature, frequency, and effects of the violation. The Association may

Page 6

to the Owner.

Amount. The Association may set fine amounts on a case by case basis, provided the fine is reasonable in light of the nature, frequency, and effects of the violation. The Association may establish a schedule of fines for certain types of violations. The amount and cumulative total of a fine must be reasonable in comparison to the violation, and should be uniform for similar TABA SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844v.1 52952-38 violations of the same provision of the Documents. If the Association allows fines to accumulate, the Association may establish a maximum amount for a particular fine, at which point the total fine will be capped.

Violation Notice. Except as set forth in Section 5(C) below, before levying a fine, the Association will give (i) a written violation notice via certified mail to the Owner (at the Owner's last known address as shown in the Association records) (the “Violation Notice”) and (ii) an opportunity to be heard, if requested by the Owner. The Association’s Violation Notice will contain the following items: (1) the date the Violation Notice is prepared or mailed; (2) a description of the violation or property damage that is the basis for the Individual Assessment, suspension action, or other charge; (3) a reference to the rule or provision that is being violated; (4) a description of the action required to cure the violation and a reasonable timeframe in which the violation is required to be cured to avoid the fine or suspension; (5) the amount of the possible fine; (6) a statement that no later than the thirtieth (30) day after the date the notice was mailed, the Owner may request a hearing by the Board, pursuant to Section 209.007 of the Texas Property

le fine; (6) a statement that no later than the thirtieth (30) day after the date the notice was mailed, the Owner may request a hearing by the Board, pursuant to Section 209.007 of the Texas Property Code; and (7)a statement that the Owner may have special rights or relief related to the enforcement action under federal law, including the Servicemembers Civil Relief Act (60 U.S.C.

app. section et seq), if the Owner is serving on active military duty. The Violation Notice sent out pursuant to this paragraph is further subject to the following: (A) First Violation. If the Owner has not been given notice and a reasonable opportunity to cure the same or similar violation within the preceding six (6) months, the Violation Notice will state those items set out in (1) — (7) above, along with a reasonable timeframe by which the violation must be cured to avoid the fine. The Violation Notice must state that any future violation of the same rule may result in the levy of a fine. A fine pursuant to the Schedule of Fines may be levied if an Owner does not cure the violation within the timeframe set forth in the notice.

(B) Uncurable Violation/Violation of Public Health or Safety. If the violation is of an uncurable nature or poses a threat to public health or safety (as exemplified in Section 209.006 of the Texas Property Code), then the Violation Notice shall state those items set out in (1), (2), (3), (5), (6), and (7) above, and the Association shall have the right to exercise any enforcement remedy afforded to it under the Documents, including but not limited to the right to levy a fine pursuant to the Schedule of Fines.

(C) Repeat Violation without Attempt to Cure. If the Owner has been given a Violation

Page 7

o it under the Documents, including but not limited to the right to levy a fine pursuant to the Schedule of Fines.

(C) Repeat Violation without Attempt to Cure. If the Owner has been given a Violation Notice and a reasonable opportunity to cure the same or similar violation within the preceding six (6) months but commits the violation again, then the Owner shall not be entitled to an additional Violation Notice or a hearing pursuant to Section 209.007 of the Texas Property Code, and the Association shall have the right to exercise any enforcement remedy afforded to it under the Documents, including but not limited to the right to levy a fine pursuant to the Schedule of Fines. After an Owner has been provided a Violation Notice as set forth herein and assessed fines in the amounts set forth in the Schedule of Fines, if the Owner has never cured the violation in response to any Violation Notices sent or any fines levied, then the Board, in its sole discretion, may determine that such a circumstance is a continuous violation which warrants a levy of a fine based upon a daily, monthly, or quarterly amount as determined by the Board.

TABA SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844v.1 52952-38 Violation Hearing. If the Owner is entitled to an opportunity to cure the violation, then the Owner has the right to submit a written request to the Association for a hearing before the Board to discuss and verify the facts and resolve the matter. To request a hearing, the Owner must submit a written request (the “Request”) to the Association’s manager (or the Board if there is no manager) within thirty (30) days after receiving the Violation Notice. The Association must then

must submit a written request (the “Request”) to the Association’s manager (or the Board if there is no manager) within thirty (30) days after receiving the Violation Notice. The Association must then hold the hearing requested no later than thirty (30) days after the Board receives the Request. The hearing will be scheduled to provide a reasonable opportunity for both the Board and the Owner to attend. The Board or the Owner may request a postponement, and if requested, a postponement shall be granted for a period of not more than ten (10) days. Additional postponements may be granted by agreement of the parties. Notwithstanding the foregoing, the Association may exercise its other rights and remedies as set forth in Section 209.007(d) and (e) of the Texas Property Code. Any hearing before the Board will be held in a closed or executive session of the Board. At the hearing, the Board will consider the facts and circumstances surrounding the violation. At least (10) days before the date of the hearing, the Board must notify the Owner of the date, time, and place of the hearing, and shall provide to the Owner a packet containing all decuments, photographs, and communications relating to the matters the Board intends to introduce at the hearing. If the Board does not provide a packet within the ten (10) day time period described above, the Owner is entitled to an automatic fifteen (15) day postponement of the hearing. During the hearing, the Board or a representative of the Board shall first present the Board's case against the owner. Next, the Owner, or the Owner's designated representative, shall be entitled to present the owner's information and issues relevant to the appeal or dispute.

resent the Board's case against the owner. Next, the Owner, or the Owner's designated representative, shall be entitled to present the owner's information and issues relevant to the appeal or dispute.

The procedure for the hearing is described in Exhibit A, attached hereto. The Owner or the Association may make an audio recording of the meeting. Disclosure of any intent to record shall be made before the hearing begins. The minutes of the hearing must contain a statement of the results of the hearing and the fine, if any, imposed. A copy of the violation notice and request for hearing should be placed in the minutes of the hearing. If the Owner appears at the meeting, the notice requirements will be deemed satisfied.

Due Date. Fine and/or damage charges are due immediately if the violation is uncurable or poses a threat to public health or safety. If the violation is curable, the fine and/or damage charges are due immediately after the later of: (1) the date that the cure period set out in the first Violation Notice ends and the Owner does not attempt to cure the violation or the attempted cure is unacceptable to Association, or (2) if a hearing is requested by the Owner, such fines or damage charges will be due immediately after the Board’s final decision on the matter, assuming that a fine or damage charge of some amount is confirmed by the Board at such hearing.

Lien Created. The payment of each fine and/or damage charge levied by the Board against the Owner of a Lot is, together with interest as provided in Section 5.11 of the Covenant and all costs of collection, including attorneys’ fees as herein provided, secured by the lien granted to the Association pursuant to Section 5.1.2 of the Covenant. The fine and/or damage charge will be

Page 8

d all costs of collection, including attorneys’ fees as herein provided, secured by the lien granted to the Association pursuant to Section 5.1.2 of the Covenant. The fine and/or damage charge will be considered an Assessment for the purpose of this Article and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to Article 5 of the Covenant.

Levy of Fine. Any fine levied shall be reflected on the Owner's periodic statements of account or delinquency notices.

TABA SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 A 10.

11.

Foreclosure. The Association may not foreclose its assessment lien on a debt consisting solely of fines.

Amendment of Policy. This policy may be revoked or amended from time to time by the Board.

This policy will remain effective until the Association records an amendment to this policy in the county’s official public records.

Schedule of Fines The Board has adopted the following general schedule of fines. The number of notices set forth below does not mean that the Board is required to provide each notice prior to exercising additional remedies as set forth in the Documents. The Board may elect to pursue such additional remedies at any time in accordance with applicable law. The Board also reserves the right to set fine amounts on a case by case basis, provided the fine is reasonable in light of the nature, frequency, and effect of the violation: FINES+: New Violation: General Violation Categories | Fine Amount: © Unsightly Conditions oon oe Tose $25.00 (if a curable violation, may be Unauthorized avoided if Owner Construction or cures the violation by Modification of the time specified in Improvements the notice) Notice of Violation Landscape Violations

Pages 8–10

a curable violation, may be Unauthorized avoided if Owner Construction or cures the violation by Modification of the time specified in Improvements the notice) Notice of Violation Landscape Violations (mowing, etc.)

Trash Container Violations Failure to Maintain Dwelling (Exterior) or Fencing Other Violations Repeat Violation (No Fine Amount: Right to Cure or Uncurable Violation): 1st Notice $50.00 2nd Notice $75.00 3rd Notice $100.00 4th Notice $125.00 TAB A SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 Continuous Violation: Amount TBD Continuous Violation Notice + The Board reserves the right to adjust these fine amounts based on the severity and/or frequency of the violation.

TABA SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 EXHIBIT A HEARING BEFORE THE BOARD Note: An individual will act as the Association representative. The Association representative will L, Ini i Association Rep: Il. Presentation of Facts Association Rep: [Presentations] TH. Discussion Association Rep: IV. Resolution Association Rep: Vv. Adjournment Association Rep: 4866-4698-4844v.1 52952-38 provide introductory remarks and administer the hearing agenda.

The Board of Directors has convened to conduct a hearing at the written request of an owner.

This hearing is being conducted as required by Section 209.007 of the Texas Property Code, and is an opportunity for the Association and the owner to discuss and verify facts and attempt to resolve the matter at issue. If no resolution is reached during the hearing, the Association will communicate its decision in writing within fifteen (15) days.

This portion of the hearing is to permit a representative of the

Pages 10–11

sue. If no resolution is reached during the hearing, the Association will communicate its decision in writing within fifteen (15) days.

This portion of the hearing is to permit a representative of the Association the opportunity to describe the violation and to present any information the Association wishes to offer. After the Association's representative has finished the presentation, the owner or any representative will be given the opportunity to present information and issues relevant to the appeal or dispute.

This portion of the hearing is to permit the Board and the owner to discuss matters relevant to the violation.

[Announce any agreement or resolution or state that the Board will take the matter under advisement] At this time the hearing is adjourned.

Exhibit “A” to TAB A SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS TAB B HARRINGTON TRAILS RESIDENTIAL COMMUNITY INC.

AMENDED AND RESTATED ASSESSMENT COLLECTION POLICY Harrington Trails is a community (the “Community”) created by and subject to the Harrington Trails Amended and Restated Master Covenant [Residential], recorded in the Official Public Records of Montgomery County, Texas, and any amendments or supplements thereto (the “Covenant“). The operation of the Community is vested in Harrington Trails Residential Community Inc. (the “Association”), acting through its board of directors (the “Board”). The Association is empowered to enforce the covenants, conditions and restrictions of the Covenant, Certificate, Bylaws, Community Manual, the Design Guidelines, (if adopted), any applicable Development Area Declaration, any applicable Notice of Applicability, and any rules and regulations promulgated by the Association

Community Manual, the Design Guidelines, (if adopted), any applicable Development Area Declaration, any applicable Notice of Applicability, and any rules and regulations promulgated by the Association pursuant to the Covenant, or any Development Area Declaration, as adopted and amended from time to time (collectively, the Documents”), including the obligation of Owners to pay Assessments pursuant to the terms and provisions of the Documents.

The Board hereby adopts this Assessment Collection Policy to establish equitable policies and procedures for the collection of Assessments levied pursuant to the Documents. Terms used in this policy, but not defined, shall have the meaning ascribed to such term in the Documents.

SECTION 1. DELINQUENCIES, LATE CHARGES & INTEREST 1-A. Due Date, An Owner will timely and fully pay Assessments. Regular Assessments are assessed annually and are due and payable on the first calendar day of the month at the beginning of the fiscal year, or in such other manner as the Board may designate in its sole and absolute discretion.

1-B. Delinquent. Any Assessment that is not fully paid when due is delinquent. When the account of an Owner becomes delinquent, it remains delinquent until paid in full — including collection costs, interest and late fees.

1-C. Late Fees & Interest. If the Association does not receive full payment of an Assessment by 5:00 p-m. on the due date established by the Board, the Association may levy a late fee of $25 per month and/or interest at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date thereof (or if there is no such highest rate, then at the rate of 1 and 1/2% per month) until paid in full.

Page 12

ed by applicable usury laws then in effect on the amount of the Assessment from the due date thereof (or if there is no such highest rate, then at the rate of 1 and 1/2% per month) until paid in full.

1-D. Liability for Collection Costs. The defaulting Qwner is liable to the Association for the cost of title reports, certified mail, long distance calls, court costs, filing fees, and other reasonable costs and attorney’ s fees incurred by the Association in collecting the delinquency.

1-E. Insufficient Funds. The Association may levy a charge of $25 for any check returned to the Association marked “not sufficient funds” or the equivalent.

1-F, Waiver. Properly levied collection costs, late fees, and interest may only be waived by a Majority of the Board.

TAB B SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 SECTION 2. INSTALLMENTS & ACCELERATION If an Assessment, other than a Regular Assessment, is payable in installments, and if an Owner defaults in the payment of any installment, the Association may declare the entire Assessment in default and accelerate the due date on all remaining installments of the Assessment. An Assessment, other than a Regular Assessment, payable in installments may be accelerated only after the Association gives the Owner at least fifteen (15) days prior notice of the default and the Association’s intent to accelerate the unpaid balance if the default is not timely cured. Following acceleration of the indebtedness, the Association has no duty to reinstate the installment program upon partial payment by the Owner.

SECTION 3. PAYMENTS 3-A. Application of Payments. After the Association notifies the Owner of a delinquency and the

has no duty to reinstate the installment program upon partial payment by the Owner.

SECTION 3. PAYMENTS 3-A. Application of Payments. After the Association notifies the Owner of a delinquency and the Owner's liability for late fees or interest, and collection costs, any payment received by the Association shall be applied in the following order, starting with the oldest charge in each category, until that category is fully paid, regardless of the amount of payment, notations on checks, and the date the obligations arose: (1) Delinquent assessments (4) Other reasonable attorneys’ fees (2) Current assessments (5) Reasonable fines (3) Reasonable attorney's fees and costs (6) Any other reasonable amount associated solely with delinquent assessments or any other charge that could provide the basis for foreclosure 3-B. Payment Plans. The Association shall offer a payment plan to a delinquent Owner with a minimum term of at least three (3) months from the date the payment plan is requested for which the Owner may be charged reasonable administrative costs and interest. The Association will determine the actual term of each payment plan offered to an Owner in its sole and absolute discretion. An Owner is not entitled to a payment plan if the Owner has defaulted on a previous payment plan in the last two (2) years. The Association is not required to make a payment plan available to a Member after the Delinquency Cure Period allowed under Paragraph 5-B expires.

If an Owner is in default at the time the Owner submits a payment, the Association is not required to follow the application of payments schedule set forth in Paragraph 3-A.

3-C. Form of Payment. The Association may require that payment of delinquent Assessments be made

Page 13

Association is not required to follow the application of payments schedule set forth in Paragraph 3-A.

3-C. Form of Payment. The Association may require that payment of delinquent Assessments be made only in the form of cash, cashier's check, or certified funds.

3-D. Partial and Conditioned Payment. The Association may refuse to accept partial payment (i.e., less than the full amount due and payable) and payments to which the payer attaches conditions or directions contrary to the Board's policy for applying payments. The Association’s endorsement and deposit of a payment does not constitute acceptance. Instead, acceptance by the Association occurs when the Association posts the payment to the Owner's account. If the Association does not accept the payment at that time, it will promptly refund the payment to the payer. A payment TAB B SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 $2952-38 3-E.

4-A.

that is not refunded to the payer within thirty (30) days after being deposited by the Association may be deemed accepted as to payment, but not as to words of limitation or instruction accompanying the payment. The acceptance by the Association of partial payment of delinquent Assessments does not waive the Association’s right to pursue or to continue pursuing its remedies for payment in full of all outstanding obligations.

Notice of Payment. If the Association receives full payment of the delinquency after Recording a notice of lien, the Association will cause a release of notice of lien to be publicly Recorded, a copy of which will be sent to the Owner, The Association may require the Owner to prepay the cost of preparing and Recording the release.

Credit Reporting. Before the Association reports any delinquency, including delinquent fines,

he Owner, The Association may require the Owner to prepay the cost of preparing and Recording the release.

Credit Reporting. Before the Association reports any delinquency, including delinquent fines, fees, or assessments, to a credit reporting service, the Association must first send the owner, via certified mail, hand delivery, or electronic delivery, a notice that includes: (i) a detailed report of all delinquent charges owed; and (ii) information about the opportunity to enter into a payment plan. Notice of the intent to report the delinquency may be combined with the 45 day notice set forth in Paragraph 5-B below. The Association or its agent may not report any delinquent fines, fees, or assessments to a credit reporting service that are the subject of a pending dispute between the owner and the Association. In addition to the foregoing requirements, the notice must be sent at least thirty (30) business days before the report is made. No fee may be charged back to the owner for the cost of the actual reporting of the delinquency to the credit reporting service. If the Association receives full payment of the delinquency after reporting the defaulting Owner to a credit reporting service, the Association will report receipt of payment to the credit reporting service, SECTION 4. LIABILITY FOR COLLECTION COSTS Collection Costs. The defaulting Qwner may be liable to the Association for the cost of title reports, certified mail, long distance calls, filing fees, and other reasonable costs and attorneys’ fees incurred in the collection of the delinquency.

SECTION 5. COLLECTION PROCEDURES Delegation of Collection Procedures. From time to time, the Association may delegate some or all

Page 14

sts and attorneys’ fees incurred in the collection of the delinquency.

SECTION 5. COLLECTION PROCEDURES Delegation of Collection Procedures. From time to time, the Association may delegate some or all of the collection procedures, as the Board in its sole discretion deems appropriate, to the Association’s Manager, an attorney, or a debt collector.

Delinquency Notices. If the Association has not received full payment of an Assessment by the due date, the Association may send written notice of nonpayment to the defaulting Owner, by certified mail, stating: (a) the amount delinquent and the total amount of the payment required to make the account current, (b) the options the Owner has to avoid having the account turned over to a collection agent, as such term is defined in Texas Property Code Section 209.0064, including information regarding availability of a payment plan through the Association, and (c) that the Owner has forty-five (45) days for the Owner to cure the delinquency before further collection action is taken (the “Delinquency Cure Period”). The Association’s delinquency-related correspondence may state that if full payment is not timely received, the Association may pursue any or all of the Association’s remedies, at the sole cost and expense of the defaulting Owner.

TABB SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 5-C.

5-D.

5-E.

5-F, 5-G.

5-H, 5-I.

5-J.

Verification of Owner Information. The Association may obtain a title report to determine the names of the Owners and the identity of other lien-holders, including the mortgage company.

Collection Agency. The Board may employ or assign the debt to one or more collection agencies.

determine the names of the Owners and the identity of other lien-holders, including the mortgage company.

Collection Agency. The Board may employ or assign the debt to one or more collection agencies.

Notification of Mortgage Lender. The Association may notify the Mortgage lender of the default obligations.

Notification of Credit Bureau. The Association may report the defaulting Owner to one or more credit reporting services.

Collection by Attorney. If the Owner's account remains delinquent for a period of ninety (90) days, the Manager of the Association or the Board of the Association shall refer the delinquent account to the Association’s attorney for collection. In the event an account is referred to the Association’s attorney, the Owner will be liable to the Association for its legal fees and expenses.

The Association’s attorney will ensure the following notices are provided in accordance with applicable law: (1) Notice of Delinquency: Preparation of written notice of delinquency. If the account is not paid in full by the deadline set forth in the notice letter, then (2) Second Notice: Preparation of the second written notice of delinquency. If the account is not paid in full by the deadline set forth in the notice letter, then (3) Lien Notice: Preparation of the Lien Notice Letter and recordation of a Notice of Unpaid Assessment Lien. If the account is not paid in full by the deadline set forth in the notice letter, then (4) Final Notice: Preparation of the Final Notice of Demand for Payment Letter and any notice required to be sent to any holder of a lien of record on the property whose lien is evidenced by a deed of trust and is inferior or subordinate to the association’s lien. If the account is not paid in full within thirty (30) days, then

Page 15

f a lien of record on the property whose lien is evidenced by a deed of trust and is inferior or subordinate to the association’s lien. If the account is not paid in full within thirty (30) days, then (5) Foreclosure of Lien: Only upon specific approval by a Majority of the Board.

Notice of Lien. The Association’s attorney may cause a notice of the Association’s Assessment lien against the Owner’s home to be publicly Recorded. In that event, a copy of the notice will be sent to the defaulting Owner, and may also be sent to the Owner’s Mortgagee.

Cancellation of Debt. If the Board deems the debt to be uncollectible, the Board may elect to cancel the debt on the books of the Association, in which case the Association may report the full amount of the forgiven indebtedness to the Internal Revenue Service as income to the defaulting Owner.

Suspension of Use of Certain Facilities or Services. The Board may suspend the use of the Common Area amenities by an Owner, or his Occupant, whose account with the Association is delinquent for at least forty-five (45) days.

TABB SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y.1 52952-38 NOTE: Texas law requires that at least two (2) notices precede the recording of any lien. For accounts that become delinquent on or after September 1, 2023, a lien may only be recorded after notice of the delinquency has been sent: (1) to the Owner by email using an email address the Owner has provided to the Association or, alternatively by first-class mail (the first-class mai] requirement may be satisfied by a letter sent by USPS certified mail) sent to the Owner's | last known mailing address, as reflected in the records maintained by the Association; and also

t-class mai] requirement may be satisfied by a letter sent by USPS certified mail) sent to the Owner's | last known mailing address, as reflected in the records maintained by the Association; and also (2) to the Owner, by certified mail, return receipt requested, directed to the Owner's last known mailing address, as reflected in the records maintained by the Association. The certified letter must be sent no earlier than (30) days after the first required notice of delinquency has been sent to the Owner, and the lien may only be recorded if at least ninety (90) days have passed since the date the certified delinquency notice was sent to the Owner. The foregoing requirements conform to the requirements set forth in Chapter 209 of the Texas Property Code and apply only to the extent applicable law continues to require such notices before a lien may be recorded.

t SECTION 6. GENERAL PROVISIONS 6A. Independent Judgment. Notwithstanding the contents of this detailed policy, the officers, directors, Manager, and attorney of the Association may exercise their independent, collective, and respective judgment in applying this policy.

6-B. Other Rights. This policy is in addition to and does not detract from the rights of the Association i to collect Assessments under the Documents and the laws of the State of Texas.

6-C. Limitations of Interest. The Association, and its officers, directors, Managers, and attorneys, intend to conform strictly to the applicable usury laws of the State of Texas. Notwithstanding anything to the contrary in the Documents or any other document or agreement executed or made in connection with this policy, the Association will not in any event be entitled to receive or

Page 16

thstanding anything to the contrary in the Documents or any other document or agreement executed or made in connection with this policy, the Association will not in any event be entitled to receive or collect, as interest, a sum greater than the maximum amount permitted by applicable law. If from any circumstances whatsoever, the Association ever receives, collects, or applies as interest a sum in excess of the maximum rate permitted by law, the excess amount will be applied to the reduction of unpaid Assessments, or reimbursed to the Owner if those Assessments are paid in full.

6-D. Notices. Unless the Documents, applicable law, or this policy provide otherwise, any notice or other written communication given to an Owner pursuant to this policy will be deemed delivered to the Owner upon depositing same with the U.S. Postal Service, addressed to the Owner at the most recent address shown on the Association's records, or on personal delivery to the Owner. If the Association's records show that an Owner’s property is owned by two (2) or more persons, notice to one co-Owner is deemed notice to all co-Owners. Similarly, notice to one Occupant is deemed notice to all Occupants. Written communications to the Association, pursuant to this policy, will be deemed given on actual receipt by the Association's president, secretary, managing agent, or attorney.

TABB SECOND SUPPLEMENT TO COMMUNITY MANUAL HARRINGTON TRAILS 4866-4698-4844y, |] 52952-38 Doc #: 2023117093 Pages 16 E-FILED FOR RECORD 12/07/2023 09:47AM fo) Boa har Bina County Clerk, Montgomery County, Texas STATE OF TEXAS, COUNTY OF MONTGOMERY | hereby certify that this instrument was e-filed in the file number sequence on the date and time stamped herein by me and was duly e-RECORDED in the Official Public

TE OF TEXAS, COUNTY OF MONTGOMERY | hereby certify that this instrument was e-filed in the file number sequence on the date and time stamped herein by me and was duly e-RECORDED in the Official Public Records of Montgomery County, Texas.

12/07/2023 County Clerk, Montgomery County, Texas