Sharon Oaks Association

Board of Directors Meeting

Minutes
For the meeting held September 15, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam, Treasurer Bill Hoffman,
Secretary Jo Anne Kondo, Linda Teng*, Jack Cackler, and Mitzi Moynihan.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association to address
the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
3.1. It was noted that a landscaping project for $5200 with Gachina was approved by the committee, slightly
exceeding their $5000 approval authority limit. The extra $200 was approved by the President.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: A brief update on recent activity was reported.
4.1.1. It was noted Mitzi is working on creating and submitting committee meeting minutes for the decisions made
from late 2021 to current. Noted as in progress.
4.2. Landscape: Ongoing business was reviewed.
4.3. Pool: No news to report.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are interested in
running this committee, are welcome.
4.6. Roofing: No news to report.
4.6.1. Project management is in progress with C.L. Sigler.
4.7. Parking: Reviewed.
4.7.1. The board reviewed and approved appointing Sam Tam and Mitzi to the committee to assist Nili, MSC.
4.8. Maintenance: Reviewed. No new board actions needed.
5. Maintenance Projects – Planned or In Progress
5.1. Preliminary clubhouse remodel options: Tabled.
5.2. Common sewer lines; potential maintenance (Planning/discussion):
5.3. Shake roofing replacement project (C.L. Sigler managing this project; Review updates and monitor)
5.4. Storm water drainage issues; repair options (Planning/discussion): It was noted that this is being evaluated by Jo
Anne and Sam Tam with Manor. Tabled.
5.5. Community painting – Phased painting on hold; Development of plan for new colors/future re-paint: The board
reviewed and approved from the Architecture committee, from homeowner volunteer Brad Burchill, to create
some design mockups for presentation to the board, MSC the board approves this to be done.
5.6. Pool concrete deck aesthetics following recent repairs – Options: The board reviewed this and agreed not to
proceed at this time.
5.7. Backflow devices: It was noted that a backflow repair proposal with The Backflow Pro for $6044 was approved
between meetings due to urgency of repairs. Noted in these minutes as ratified, MSC.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (Draft/review in progress): It was noted that the
board is working on this. It was agreed the board will hold a series of further additional review/strategy meetings
to work on the drafts in the near future, just for the purposes of giving feedback to the HOA’s attorney and
working on revisions.
6.2. Solar system rules – Proposed: Reviewed and tabled.
6.3. Architecture rules and documents/forms – Update: Tabled.
6.4. Parking rules: Tabled.
6.5. Fine schedule: Tabled.
6.6. 2022-2023 annual budget and assessments: Removed from agenda, no action needed.
6.7. Earthquake insurance renewal; election/vote (In progress): It was noted that TIE will be conducting this vote on
behalf of the HOA most likely in October, prior to the renewal of the policies in November. No action by the board
needed at this time.

Doc ID: dd8c726249bafcde9a119c10c7d22ba72717b22d

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held September 15, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

6.8. Possible restructuring or dissolution of the Architectural Committee: Tabled pending receipt and review of
proposed Architectural Rules from Adams Stirling.
7. Other Items
7.1. Gutter cleaning: The board reviewed and approved Commercial Gutter proposal for $8452 for 2 annual services as
usual, MSC.
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the regular
meeting minutes from the August 18, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial reports as
provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved continuation of
ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 8:52 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for those
decisions. The following is a general summary of the topics that were addressed/decided in executive session:
12.1. Hearing/enforcement discussions. No decision taken yet.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Doc ID: dd8c726249bafcde9a119c10c7d22ba72717b22d

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held August 18, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam, Treasurer Bill Hoffman,
Secretary Jo Anne Kondo*, Linda Teng, Jack Cackler, and Mitzi Moynihan.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association to address
the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: A brief update on recent activity was reported.
4.1.1. The board approved appointing Lori Cohen to the committee, replacing Bob Mullen, MSC.
4.2. Landscape: Ongoing business was reviewed.
4.3. Pool: No news to report.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are interested in
running this committee, are welcome.
4.6. Roofing: No news to report. Project management is starting and in progress with C.L. Sigler.
4.7. Parking: Reviewed. No new board decisions.
4.8. Maintenance: The board generally agreed to have maintenance issues in the common area identified by Jack to
be reviewed/repaired by one of the HOA’s maintenance contractors.
5. Maintenance Projects – Planned or In Progress
5.1. Preliminary clubhouse remodel options: Tabled pending receipt of a proposal/update from the clubhouse
committee.
5.2. Common sewer lines; potential maintenance (Planning/discussion): Tabled pending an update from Joanne.
5.3. Shake roofing replacement project (C.L. Sigler managing this project; Review updates and monitor): Sigler is
currently getting started on this project. Tabled while the board continues to monitor progress.
5.4. Storm water drainage issues; repair options (Planning/discussion): A couple of pending issues with stormwater
drainage were discussed. Tabled pending further review with the nearby homeowners and the HOA
plumbing/drainage contractors.
5.5. Community painting – short and long term planning and color palette; Group C 2022 phase (Approved and
starting in progress/monitoring): The board heard from Mitzi on behalf of the architectural committee, and
discussed the forthcoming painting phase, and whether or not it makes sense to consider changing the color
palette at this time. Following discussion, the board agreed to cancel this year’s painting phase and instead to
focus on working with volunteer Brad Burchill and to develop a proposal for potentially updating the community’s
exterior paint color scheme and design. Motion to postpone painting except to the extent necessary to preserve
wood, and proceed with working with Brad Burchill to work on develop new color schemes for the whole
community, MSC. This will be considered further at future board meetings.
5.6. Pool concrete deck aesthetics following recent repairs – Options: It was noted that the concrete contractor
recommends against installing a coating on the current deck, due to issues that the contractor has observed with
such coatings at other pools. However, the board will consider any options proposed by the committee.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (In progress - Questionnaire): Tabled pending
receipt of a summary of changes letter from Adams Stirling. Paul will follow up with A-S.
6.2. Solar system rules – Proposed: A proposed document was received from Adams Stirling. The board agreed to have
Bill review the draft document with Adams Stirling to consider changes/edits before the board votes on
approving.
6.3. Architecture rules and documents/forms – possible updates: Tabled pending receipt of draft from Adams Stirling.
6.4. 2022-2023 annual budget and assessments: The board reviewed and approved the budget as presented by the
Treasurer, with monthly assessments decreasing to $960 per home, per month, MSC.
6.5. Earthquake insurance renewal; election/vote: The board reviewed a proposal from TIE to conduct this election

Doc ID: 22c6dc8a49cba9a309e121cb20a075fd2446e9f1

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held August 18, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

using a hybrid online/paper voting method, and with the election not requiring counting of ballots at a board
meeting, which per TIE is allowed due to the type of election it is. This would not be allowed yet for elections of
directors. The board approved proceeding as proposed, MSC.
6.6. Pool noise; Rules and concern: The board reviewed a concern regarding pool noise that was reported, and agreed
to install signs requesting that residents be mindful of the proximity of neighbors and to be considerate with noise
levels. The board approved the pool committee to select the signs and installation locations and to proceed with
installing them.
6.7. Possible restructuring or dissolution of the Architectural Committee: The board heard from Jack regarding a
proposal to consider these options and different ideas for improving the process of architectural review. The
board discussed this and tabled the topic for further discussion.
7. Other Items
7.1. None
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the regular
meeting minutes from the July 21, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial reports as
provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved continuation of
ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 9:14 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for those
decisions. The following is a general summary of the topics that were addressed/decided in executive session:
12.1. None.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Doc ID: 22c6dc8a49cba9a309e121cb20a075fd2446e9f1

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held July 21, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam*, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng, Jack Cackler*, and Mitzi Moynihan.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: A brief update on recent activity was reported.
4.2. Landscape: Ongoing business was reviewed.
4.2.1.Committee structure and chair(s): The board confirmed that Mitzi will continue to serve as the
chair.
4.2.2.Gachina and Urban projects (recently approved/completed; monitoring and status updates): This
topic was reviewed. No new board decisions or approvals needed at this time.
4.3. Pool: It was noted that the concrete in both the large and small pool areas was worked on recently. The
work appears to be done well but some aesthetic concerns were noted regarding the repairs on the
large pool deck. The board might consider ways to improve the aesthetics in the future.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: No news to report. Project management contract with Sigler is approved and will proceed
based upon Sigler’s availability.
4.7. Parking: Reviewed. No new board decisions.
5. Maintenance Projects – Planned or In Progress
5.1. Preliminary clubhouse remodel options – review: Discussed and tabled.
5.2. Common sewer lines; potential maintenance: This topic was discussed and it was noted that West Bay
Sanitation has indicated they can service sewer lines in the community upon homeowner/resident
request. The board directed Manor to encourage homeowners/residents who report sewer issues to
contact West Bay Sanitation first to potentially avoid the cost of dispatching a private plumber for
services.
5.3. Shake roofing replacement project (Large project; Beginning of project/monitoring): In progress. No
board action needed at this time.
5.4. Storm water drainage issues; repair options (Planning/discussion phase): Tabled pending feedback from
one or more affected homeowners and further evaluation of options by the board.
5.5. Exterior painting; Group C 2022 phase (Approved and starting in progress/monitoring): This topic was
discussed and it was agreed that the board is willing to consider a modification to the exterior paint
colors. Mitzi will discuss with volunteer resident Brad Burchell to work on a proposal for the board to
consider at the next meeting. Tabled.
5.6. Concrete repairs/replacements proposals (Approved and pending/monitoring): The board reviewed a
proposal for repair/replacement of the concrete driveway at 2457 from Pineda Construction. The board
voted to delegate final review and approval of the proposal to Paul, MSC. Paul will review the proposal
with the contractor and decide whether or not to approve proceeding.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (In progress - Questionnaire): The
board discussed the first draft and it was agreed to request a detailed summary of the key changes and

Doc ID: 02439920d750f4eb83cf8466c7f6c80e37d73d63

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held July 21, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

differences of the current CC&Rs versus the new draft CC&Rs from Adams Stirling. Tabled pending
receipt and review of that detailed summary.
6.2. Solar system rules: A draft from Adams Stirling was reviewed and tabled.
6.3. Architectural and other potential rules updates: It was noted that the board previously approved
Adams Stirling to draft new documents for the Architecture Review process. Tabled because the board
is currently waiting for the first draft from A-S.
6.4. 2022-2023 annual budget and assessments: The board discussed and reviewed a draft budget. The
board generally agreed upon the draft budget but decided to table it for final review and approval at
the August board meeting.
6.5. Earthquake insurance renewal; election/vote: The board approved proceeding with having The
Inspectors of Election proceed with conducting a membership vote regarding the question of renewal
and coverage level for the association’s earthquake insurance policy.
7. Other Items
7.1. Pest control/wildlife concerns: No further decisions were made. The board will consider any further
feedback or recommendations that are received in the future.
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
regular meeting minutes from the June 16, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 9:05 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. None.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Doc ID: 02439920d750f4eb83cf8466c7f6c80e37d73d63

 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held January 5, 2023 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 1

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam*, Treasurer Bill Hoffman,
Secretary Jo Anne Kondo, Linda Teng*, Jack Cackler, and Mitzi Moynihan.
2. Emergency business
The board voted to approve both pieces of the drainage proposal from Del Conte's Landscaping for 2456.

Bill noted that Robert Papagni from Del Conte's told him that he does not think that the drainage issue is
causing the water problem in the home and that he (Robert) gave this opinion to the homeowner also. Paul
will reiterate that to the homeowner.

Jo Anne asked, and the board agreed, that we ask a general contractor to inspect the situation to see if they
can see other possible causes, such as a roof leak or a leak through a window frame. The intent is to get
documentation on potential causes of the water damage in case issues arise down the line.

3. Adjournment: The board adjourned the meeting.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board
 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held October 20, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam, Treasurer Bill Hoffman,
Secretary Jo Anne Kondo, Linda Teng*, Jack Cackler, and Mitzi Moynihan.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association to address
the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
3.1. It was noted that a landscaping project for $5200 with Gachina was approved by the committee, slightly
exceeding their $5000 approval authority limit. The extra $200 was approved by the President.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: A brief update on recent activity was reported.
4.2. Landscape: Ongoing business was reviewed.
4.3. Pool: No news to report.
4.4. Finance: A general status of the financials was reviewed.
4.4.1. The board approved Paul to sign an engagement letter for CPA firm Van Sloten and Laranang to provide the
annual tax and reporting services as has been done in the past, MSC.
4.5. Roofing: No news to report. Project management is in progress with C.L. Sigler.
4.6. Parking: It was noted that Nili is moving out of the community and therefore is stepping down from her
committee assignments with thanks from the HOA. Sam Tam was appointed by the board to take over as chair of
this committee.
4.7. Maintenance: Reviewed. No new board actions needed. Jack will continue to oversee and monitor.
4.8. Social: The board appointed Nancy to lead a social committee, and approved her to proceed with planning and
coordinating a fall/holiday social event for the community as has been done in the past, MSC.
4.9. Website: The board agreed to form this committee with Barry Jones as the chair to work on transitioning the
website hosting from Nili who is resigning, and to discuss further development of the website in the future.
5. Maintenance Projects – Planned or In Progress
5.1. Preliminary clubhouse remodel options: Tabled.
5.2. Common sewer lines; potential maintenance and ideas/options (Planning/discussion): This topic was discussed
and it was noted that Jo Anne is working on developing some instructions for residents to be included in a future
newsletter.
5.3. Shake roofing replacement project (C.L. Sigler managing this project; Review updates and monitor): This topic was
noted as in progress with Sigler. Board will continue to monitor and review updates in future board meetings.
5.3.1. It was also noted that there are three pending Shelton Roofing repairs proposals for three addresses in the
community. The board reviewed and agreed it was necessary to complete these repairs because there is no
firm ETA for the start of the re-roofing project yet. The board voted to approve all three proposals as
presented, MSC.
5.4. Storm water drainage issues; repair options/proposals (Planning/discussion): Proposals for repairing drainage
issues at 2471 and 2351 continued to be received and reviewed. It was noted that the proposals seem quite
expensive relative to the work that is being proposed. The board agreed to request a couple more proposals for
consideration from landscapers who are able to perform drainage modification work. Tabled.
5.5. Community painting – Future planning for new community-wide color scheme update: It was noted that this is
being overseen by the Architecture committee and is in progress of being worked on. Tabled for further
monitoring.
5.6. Street repairs: The board discussed this and agreed to postpone major asphalt repairs until the roofing project
scope and costs have become better known and defined. In the meantime, the Maintenance Committee will work
with a maintenance contractor to perform minor temporary asphalt repairs for any potholes or trip hazard issues.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (Draft/review process currently in progress): It
was noted that the board continues to work on reviewing and listing notes, questions, and feedback for the

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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held October 20, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

attorney. Tabled while the board continues to work on this in the coming weeks.
6.2. Solar system rules – Proposed: Draft was reviewed and tabled, to be addressed in conjunction with the draft
governing documents.
6.3. Architecture rules and documents/forms – Proposed: Draft was reviewed and tabled, to be addressed in
conjunction with the draft governing documents.
6.4. Parking rules; Committee members and expectations; Enforcement; Etc.: This topic as discussed. Sam Tam, Paul,
and Manor will work on this outside of the meeting and the board will discuss further at a future meeting.
6.5. Fine schedule: Tabled.
6.6. Earthquake insurance renewal; election/vote (In progress): It was noted this is in progress of being voted on by
the membership. In the meantime, the board voted to approve the $30 million coverage policy with the 15%
deductible option, subject to anticipated approval from the membership for this option in the vote that is
concluding on October 26, MSC.
6.7. Possible restructuring or dissolution of the Architectural Committee: Noted to be combined with the Architectural
Rules topic on future agendas. Tabled.
6.8. Sharon Oaks website: Tabled.
7. Other Items
7.1. Dog waste: Issues were discussed. The board approved Jo Anne and Mitzi to choose and coordinate with
maintenance to install new Private Property signage, with design and placement to be determined by Mitzi and Jo
Anne, MSC.
7.2. Community survey ideas
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the regular
meeting minutes from the September 15, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial reports as
provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved continuation of
ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 9:32 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for those
decisions. The following is a general summary of the topics that were addressed/decided in executive session:
12.1. Hearing/enforcement discussions. No decision taken yet.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Doc ID: dd8c726249bafcde9a119c10c7d22ba72717b22d

 Statement of Account/Demand (4525)
Sharon Oaks Association
The Manor Association

Property Information: Requestor:

2369 Sharon Oaks Dr Chicago Title Company
Menlo Park, CA 94025-6816 Beneathea Britton
Seller: Hongyi Wei 510-494-7106
Buyer: Unknown TBD Estimated Closing Date: 01-31-2023

General Information
This information is good through 02-13-2023
Comments: DEMAND is valid for 30 days from the date of issue
The regular assessment is paid through: 01-31-2023
The regular assessment is next due: 02-01-2023
What day of the month are regular assessments due? 1
How many days after the due date is the regular assessment considered delinquent? 15
The penalty for delinquent assessments is: $10 or 10%
Specific Fees Due To Sharon Oaks Association
Assessment Data:
Recology Assessmnet ( Frequency: Monthly ) $39.39
Monthly Assessment ( Frequency: Monthly ) $960.00
Owner's current balance due (you may total the owners balance due using the breakdown $0.00
below):
Insurance Information
Insurance broker's or agent's company name: EPIC
Insurance agent's phone number: 925-244-77005555

Peter Duong

Peter Duong, Account Receiveable Date: 01-13-2023

The Manor Association

Phone: 650-637-1616

Please return check with barcode for faster processing Page 1 of 5

 Statement of Account/Demand (4525)
Sharon Oaks Association
The Manor Association

Property Information: Requestor:

2369 Sharon Oaks Dr Chicago Title Company
Menlo Park, CA 94025-6816 Beneathea Britton
Seller: Hongyi Wei 510-494-7106
Buyer: Unknown TBD Estimated Closing Date: 01-31-2023

Comments:
***Please advise the seller to log into the web portal https://manorinc.com/portal-login to cancel the automatic payment
if they are enrolled in ACH. If they have question about ACH cancellation, they can email [email protected] for
further assistance.

NOTE: This Demand is valid for 30 days from the date of issue.

**SPECIAL ASSESSMENTS must be PAID IN FULL at close of escrow.**

NOTE: THE MANOR ASSOCIATION ADDRESS CHANGE AS OF APRIL 1, 2019

1800 Gateway Drive, Ste. 100, San Mateo, CA 94404

Please return check with barcode for faster processing Page 2 of 5

 Statement of Account/Demand (4525)
Sharon Oaks Association
The Manor Association

Property Information: Requestor:

2369 Sharon Oaks Dr Chicago Title Company
Menlo Park, CA 94025-6816 Beneathea Britton
Seller: Hongyi Wei 510-494-7106
Buyer: Unknown TBD Estimated Closing Date: 01-31-2023

Fee Summary
Amounts Prepaid
Closing Statement of Fees, $452.00
Association Documents and
Minutes (Required Civil Code
Sec. 4525)
Convenience Fee $7.95
Total $459.95
Fees Due to The Manor Association
Transfer Fee $250.00
Total $250.00
Fees Due to Sharon Oaks Association
Prepaid Assessments $999.39
Total $999.39

Please return check with barcode for faster processing Page 3 of 5

 Statement of Account/Demand (4525)
Sharon Oaks Association
The Manor Association

Property Information: Requestor:

2369 Sharon Oaks Dr Chicago Title Company
Menlo Park, CA 94025-6816 Beneathea Britton
Seller: Hongyi Wei 510-494-7106
Buyer: Unknown TBD Estimated Closing Date: 01-31-2023

PLEASE RETURN THIS FORM WITH YOUR CHECK AND CERTIFIED COPIES OF THE CLOSING
DISCLOSURE FORM (FORMERLY THE HUD-1 FORM) AND THE GRANT OR WARRANTY DEED.
PLEASE INDICATE CONFIRMATION NUMBER DW73HJD2H ON THE CHECK TO ENSURE PAYMENT IS
CREDITED PROPERLY.
Fees Due to The Manor Association
Transfer Fee $250.00
Total $250.00
Fees Due to Sharon Oaks Association
Prepaid Assessments $999.39
Total $999.39
Include this confirmation number DW73HJD2H on the check for $250.00 payable to and send to
the address below.
The Manor Association
1800 Gateway Drive Ste. 100
San Mateo, CA 94404
Include this confirmation number DW73HJD2H on the check for $999.39 payable to and send to
the address below.
Sharon Oaks Association
1800 Gateway Drive Ste. 100
San Mateo, CA 94404

Please return check with barcode for faster processing Page 4 of 5

 Statement of Account/Demand (4525)
Sharon Oaks Association
The Manor Association

Property Information: Requestor:

2369 Sharon Oaks Dr Chicago Title Company
Menlo Park, CA 94025-6816 Beneathea Britton
Seller: Hongyi Wei 3340 Walnut Avenue, #116
Buyer: Unknown TBD Fremont , CA 94538
510-494-7106
[email protected]

Closing Information

File/Escrow Number: Sales Price:

Estimated Close Date: 01-31-2023 Closing Date:
HomeWiseDocs Confirmation #: DW73HJD2H Is buyer occupant? Yes

Status Information

Date of Order: 01-03-2023 Order Retrieved Date:

Board Approval Date: Inspection Date:
Order Completion Date: 01-13-2023
Date Paid: 01-03-2023

Community Manager Information

Company: The Manor Association

Completed By: Peter Duong
Primary Contact: Peter Duong
Address:
1800 Gateway Drive Ste. 100
San Mateo, CA 94404
Phone: 650-637-1616
Fax:
Email: [email protected]

Please return check with barcode for faster processing Page 5 of 5

Articles of Incorporation (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
HomeWiseDocs
 Sharon Oaks Association
_______________________________
THE MANOR ASSOCIATION, INC.

CALIFORNIA GOV’T. CODE §12956.1

Disclosure (2019)

"If this document contains any restriction based on

race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, familial status, marital
status, disability, veteran or military status, genetic
information, national origin, source of income as defined in
subdivision (p) of §12955, or ancestry, that restriction
violates state and federal fair housing laws and is void, and
may be removed pursuant to §12956.2 of the Government
Code. Lawful restrictions under state and federal law on the
age of occupants in senior housing or housing for older
persons shall not be construed as restrictions based on
familial status."

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
HomeWiseDocs
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
Bylaws (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
HomeWiseDocs
 Homeowners’ Management, Inc.

l “If this document contains any restriction based

' '
on race, color, religion, sex, familial status,
marital status, disability, national origin, or
ancestry, that restriction violates state and federal
fair housing laws and is void and may be removed
pursuant to Section 12956.1 of the Govermnent i"
Code.“ Lawful Restrictions under state and federal
law on the age of occupants in senior housing or
housing for older persons shall not be construed
as restrictions based on familial status.”

G0wmmentCode 12956.1. (1)

macraigjraziwfmmaijw 1, 2000 by SmateBill 1148.

700 Gale Drive, Suite 140. Campbell,California 95008

if (408) 87!-9500 Fax (408) 871-9515 _____i....__-i_-
SECOND RESTATED BYLAWS

OF

SHARON OAKS ASSOCIATION

July 29, zoos

 SECOND RESTATED BYLAWS

OF

SHARON OAKS ASSOCIATION

TABLE OF CONTENTS

ARTICLE I Q ¢ - > - ~ - - - - - - . . - . . - . . . . . . . - - - - - - - Q Q - ¢ ¢ . - . - - - | - - - - - . . - . . - - - ¢ ~

Recitals and Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - ¢ - . . .-

Section 1.01. Name of Corporation . . . . . . . . . . . . . . . . . . . . . - - » - . ¢ . .1

Section 1.02. Corporation is Non-Profit . . . . . . . . . . . . . . . . . ..

Section 1.03. Specific Purpose . . . . . . . . . . . . . . . . . . . . . . . . ..
Section 1.04. Defmitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Q o . - v Q - 4 l1liI—-4l1|D1l§¢*

ARTICLE II . . . . . - Q . . ~ . - . . - - Q ¢ . o v v v » » - - - - - . . - . . . . - - . . - - ¢ . . - - ¢ ~- . . - ¢ - - - . 3
Principal Office . . . - . . . - - . - . . - . . . . . . - ~ Q Q Q o v v o » » ¢ ~ ¢ > . ¢ - - ~ - .- ¢ - - - - - . O 3
Section 2.01. Location of Principal Office . . . . . . . . . . . . . . . . . v ~ ¢ ¢ - - I . 3

ARTICLE III . . . . . . . . . . - - - - - - . . - - - . . . - . . » - - - - ~ ¢ - Q . - ¢ - - - - - - . . - .. . - . . - - at

Membership . . - . - Q - - . . ~ o ~ » o ¢ o ~ - - . . - . . - . - - . . - - - . - . ¢ - .-

Section 3.01. Members of the Association . . . . . . . . . . . . . . . . .........

Section 3.02. Term of Membership . . . . . . . . . . . . . . . . . . . . . .........
Section 3.03. Multiple Ownership of Lots. . . . . . . . . . . . . . . . . . . . - ~ . --

Section 3.04. Furnishing Evidence of Membership . . . . . . . . . ......... UJUJUJUJUJUJ

ARTICLE IV . . . . . . . . . - . - - . - . . - - - - . . . . - - Q . . » ~ - Q > ¢ ¢ - . - - - - . . - - - .. . - . - . ~ .-

Membership Voting - - - . - | - - - - - - . . . . . . - - ¢ ¢ Q v o o o o o v ~ o - - v ¢ ¢ > -- ~ - - . . . 00

Section 4.01 Single Class of Membership . . . . . . . . . . . . . . . . . Q ¢ . . ¢ » .-

Section 4.02. Member Voting Rights . . . . . . . . . . . . . . . . . . . . . - . . - ¢ » .-

Section 4.03 Eligibility to Vote . . . . . . . . . . . . . . . . . . . . . . . . . - Q - - . . ..

Section 4.04. Manner of Casting Votes. . . . . . . . . . . . . . . . . . . . . . . - . . .-

Section 4.05 Proxies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ ¢ . - . .-

Section 4.06. Action by Written Ballot Without a Meeting . . . . ~ ~ ¢ ~ - . .. O\U1-l>P- P-I>

Section 4.07 Only Majority Vote of Members Represented
at Meeting Required, Unless Otherwise Specified - - - - - . -¢ 8

ARTICLE V Q . - - - - - - - - - - - - - - - - - - - - - - - - - - - ¢ Q . ~ u Q v v » - Q - . - - - - - - Q - - - - - - - - OI 8
Membership Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . o v o ¢ ~ ¢ IO 8
Section 5.01. Place of Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - o ~ ~- 8
 Section 5.02 Annual Meeting - - - - - - - - - - - - - - - Q - ~ ¢ ~ ¢ ¢ - . - - - - ~ - - - .-

Section 5.03 Special Meetings Q Q - Q » - . . Q Q - - . ¢ » - - » ¢ ¢ » ¢ ¢ - - Q - - - - - ¢ -- 0000

Section 5.04. Notice of Members‘ Meetings . . . . . . . . . . . . . . . . . . . . . . . . 9

Section 5.05 Quorum Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Section 5.06. Adjourned Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Section 5.07 Waiver of Notice or Consent by Absent Members . . . . . . . 11
Section 5.08 Record Dates for Member Notice, Voting
and Giving Consents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 5.09. Open Forums .. . . ...................... . . . . . ..l3
Section 5.10 Meeting Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Section 5.11 Authentication of Signatures . . . . . . . . . . . . . . . . . . . . . . . 14

ARTICLE VI . - . . . . - .... . ...................

- . . . . . . . . . - - - . . . . . . . . . ..15
Membership Rights ...... ..................
¢ . . . . - - - . . . . . . . . . . . ..15
Section 6.01 Use and Enjoyment of Common Area . . . . . . . . . . . . . . . . 15
Section 6.02 Use of Common Area by Household Members . . . . . . . . . 15
Section 6.03 Tenants .. .. ........................ . . . . . . . . . 15
Section 6.04. Guests ........................ . . . . . . . . . 16
Section 6.05. Compliance with Association Governing
Documents and Association Rules . . . . . . . . . . . . . . . . . . . 16

ARTICLE VII . . . . . . . . Q Q a o o » - ~ ¢ no Q Q Q ¢ » Q - o Q Q a ~ v o o Q Q Q - - - p Q Q Q u o o o o - ~u]-6

Board of Directors - | Q - I - Q . Q .- - | - Q Q I Q ¢ | | Q ¢ Q Q ¢ ~ v » Q Q ¢ ¢ Q Q Q Q - Q . Q I OI16

Section 7.01. General Corporate Powers . . . . . . . . . . . . . . . . . . . . . . . .. 16

Section 7.02. Tenn of Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
Section 7.03. Nominations of Directors . . . . . . . . . . . . . . . . . . . . . . . . .. I7
Section 7.04. Secret Ballot Elections . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Section 7.05. Vacancies on Board of Directors . . . . . . . . . . . . . . . . . . .. 21

ARTICLE VIII . . . . . . . . . . - . - - . - . . . - . . . - Q » Q Q Q v - Q - - . . - - - - - 4 -

Board Meeting . . . . o o Q o » » ~ » ¢ O 0 - ¢ ¢ ¢ ¢ Q v ¢ ¢ ¢ Q v Q ¢ o ~ o o . - o o n ¢ » ¢ o o o Q ~ 0 0

Section 8.01. Place of Meetings . . . - ¢ - . . . . . . . - - . . Q . . - . - - . - - . - - . -

Section 8.02. Meetings of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Section 8.03. Notice of Regular Meetings . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 8.04. Agenda. . . . . ........... . . . . . . . . . . . . . . . . . . . . . . 23
Section 8.05. Special Meetings of the Board . . . . . . . . . . . . . . . . . . . . . . 25
Section 8.06. Attendance by Members and Association Manager . . . . . . 26
Section 8.07. Meeting Format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 8.08. Quorum Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 8.09. Waiver of Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 8.10. Adjournment ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
 Section 8.11. Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 8.12. Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

ARTICLE IX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..29
Duties and Powers of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 9.01. Standard of Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 9.02. Specific Powers and Duties . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 9.03. Limitations on Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 9.04. Due Process Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 33

ARTICLE X . . . . . . . . . . . . ............................... . . . . . . . . . . . . . . ..34

Committees . . . . . . vine ........................ .... . . . . . . . . . . . . . . . . 34
Section 10.01 Committees Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Section 10.02 Standing Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 10.03 Executive Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 10.04. Meetings and Actions of Committees . . . . . . . . . . . . . . . . 35

ARTICLE XI . . . . . . . . . . ........................ . . . . . . . .. . . . . . . . . . . . . . 36
Officers . . . . . . . . . ........................ . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.01 Officers . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.02 Election of Officers . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.03 Subordinate Officers . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.04 Removal of Officers . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.05 Resignation of Officers . . . . . . . . . . . . .. . . . . . . . . . . . . . 36
Section 11.06 Vacancies . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 37
Section 1 1.07. President . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 37
Section 11.08. Vice-President . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 37
Section 11.09. Secretary . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 37
Section 11.10. Treastuer . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 38
Section 11.11. Multiple Offices . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 38

ARTICLE XII . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..38

Assessments and Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Section 12.01. Description of Assessments to which
Owners are Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Section 12.02. Creation of the Lien and Personal
Obligation of Assessments . . . . . . . . . . . . . . . . . . . . . . . . 38
Section 12.03. Purpose and Basis of Assessments . . . . . . . . . . . . . . . . . . 38
Section 12.04. Date of Commencement of Assessments: Due Dates . . . . 39
Section 12.05. Effect of Non-Payment of Assessment: Remedies
of the Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

-iii-
 Section 12.06. Annual Notice Concermng Assessment Collection
Section 12.07. Notice Regarding Secondary Addresses
Section 12.08. Subordination of Lien to Mortgages
Section 12.09. Checks . . . . . .
Section 12.10. Association Accounts
Section 12.11. Budgets and Financial Statements
Section 12.12. Fiscal Review
Section 12.13. Withdrawal From Reserves
Section 12.14. Limitation on Reserve Expendittues
Section 12.15. Reserve Study Requirements
Section 12.16. Secondary Address

ARTICLE XIII . Q Q Q . . | Q Q - - Q Q Q ¢ » - Q - - Q - -

Indemnification and Insurance . . . . .

Section 13.01 Indemnification Right and Power
Section 13.02 Indemnification Approval
Section 13.03 Standard of Care
Section 13.04. Advancement of Expenses
Section 13.05 Insurance . . . .
Section 13.06 Officer and Director Liability

ARTICLE XIV . - . - - . . . . . . - . . - - - - . - - --

Miscellaneous . . . . . - - ¢ ¢ - | | - - --

Section 14.01 Records . . . . .

Section 14.02 Inspection of Books and Records
Section 14.03 Association Manager
Section 14.04 Corporate Seal
Section 14.05 Amendment or Repeal of Bylaws
Section 14.06. Notice Requirement
Section 14.07 » Construction and Defmitions
Section 14.08 - Fiscal Year . .
Section 14.09 » Conflicts Between Documents

Certificate of Secretary . . . . - ¢ - ¢ Q - Q Q - - -.

Index - - Q Q Q o o ~ ~ n ~ o n Q Q Q - . » Q Q ¢ - - - . Q ¢ no

-l\F-
 SECOND RESTATED BYLAWS

OF

SHARON OAKS ASSOCIATION

ARTICLE I

Recitals and Definitions

Section 1.01. Name of Corporation. The name ofthis corporation shall be Sharon
Oaks Association and shall be referred to herein as the “Association”.

Section 1.02. Corporation is Non-Profit. This corporation has been formed

pursuant to the California Non-Profit Corporation Law as a mutual benefit corporation.

Section 1.03. Specific Purpose. The specific and primary ptupose of this
Association shall be to own, repair, maintain and manage the Common Area within that
certain common interest development located in the County ofSan Mateo, State ofCalifornia
and commonly referred to as Sharon Oaks, to maintain individual Townhouses and Lots to
the extent and in the manner more particularly described in the Covenants, Conditions and
Restrictions, to enforce the Association Rules adopted by the Board ofDirectors, as amended
from time to time, and the terms and conditions of the Covenants, Conditions and
Restrictions, and to otherwise enhance and promote the use and enjoyment of the Common
Area and Association property by the Owners in common.

Section 1.04. Definitions.

(a) “Covenants, Conditions and Restrictions” or “CC&Rs” shall mean all

limitations, restrictions, covenants, tenns and conditions set forth in the Restated Declaration
of Covenants, Conditions and Restrictions recorded in the Office of the Recorder of the
County of San Mateo with respect to the Properties described as Lots 1 through 6 inclusive,
and 1 1 through 16, inclusive “Resubdivision ofParcel B of Sharon Heights Unit 14,” which
Map was filed in the Office ofthe Recorder ofthe County of San Mateo, State of Califomia

Second Restated Bylaws-Sharon Oaks HOA Page 1 of 63

on October 11, 1966 in Volume 65 of Maps, Pages 38 and 39; Lots 7 through 10 inclusive
and 17 through 32 inclusive, “Resubdivision of Lots 7, 8, 9, 10, 17, 18, 19, 20, 21, 22, 23,
24, 25, 26, 27, 28, 29, 30, 31 and 32, Sharon Heights Unit 14, Menlo Park, San Mateo
County, Califomia,” which Map was filed in the Office ofthe Recorder ofthe County of San
Mateo, State of California on July 24, 1967 in Book 3 of Parcel Maps, at Page 23; Lots 1
through 19 inclusive “Sharon Oaks, Menlo Park, San Mateo Cotmty, California,” which Map
was filed in the Office of the Recorder of San Mateo County, State of California on
December 4, 1970, Book 71 ofMaps, Pages 34 and 35; Lots 20 through 47 inclusive “Sharon
Oaks Unit 2, Menlo Park, San Mateo County, California,” which Map was filed in the Office
ofthe Recorder of San Mateo County, Califonria, on August 21, 1972 in Book 77 of Maps
at Pages 1 1 and 12; and Lots l through 12 and Lot 13 (common area) inclusive “Sharon Oaks
Unit 3, Menlo Park, San Mateo Cotmty, California,” which Map was filed in the Office of
the Recorder of San Mateo County on August 23, 1973 in Book 82 ofMaps at Pages 32 and
33, as such Declaration may from time to time be supplemented, amended or modified by
a subsequent declaration, or amendment thereto, duly recorded in said Recorder's Office.

(b) “County” shall mean the County of San Mateo, State of California.

(c) “Director” shall mean a member of the Board of Directors ofthe Association.

(d) “Office of Recorder” shall mean the Office of the Recorder, County of San
Mateo, State of California.

(e) “Person” shall mean and include any individual, corporation, partnership,
association, limited liability company or other entity recognized by the laws of the State of
California.

(f) “Properties” shall have the meaning set forth in Article I, Section 1.34, in the
Covenants, Conditions and Restrictions.

(g) “Voting Power” shall mean the total membership of the Association eligible
to vote, that is, all Members, except those suspended for default in payment of assessments
or otherwise.

(h) Other Defmitions Incorporated by Reference. The tenns defined in the

Covenants, Conditions and Restrictions shall have the same meaning when used herein
unless the context clearly indicates a contrary intention.

Second Restated Bylaws-Sharon Oaks HOA Page 2 of 63

 ARTICLE H

Principal Office

Section 2.01. Location of Principal Office. The principal office of the Association
shall be located at such place within the County as the Board may, from time to time,
designate by resolution.

ARTICLE III

Membership

Section 3.01. Members of the Association. Every Owner of a Lot within the
Properties shall be a Member of the Association. Membership in the Association shall be
appurtenant to, and may not be separate from, ownership ofany Lot. Membership rights are
subject to temporary suspension in the event that a Member is in default in the payment of
assessments or is otherwise in violation of these Bylaws, the Covenants, Conditions and
Restiictions or the Association Rules, provided that disciplinary action resulting in such
suspension is taken in accordance with Article XIV, Section 14.06, of the Covenants,
Conditions and Restrictions.

Section 3.02. Term of Membership. Each Owner who is a Member shall remain
a Member until he or she no longer qualifies as such under Section 3.01 above.

Section 3.03. Multiple Ownership ofLots. Ifmore than one person owns a Lot, all
ofsaid persons shall be deemed to be one Member. In the case ofmultiple ownership, unless
the Secretary of the Association is given written notice to the contrary, and is given a copy
ofthe instrument or court order allocating voting rights differenfly, only one ofsuch multiple
Owners shall be entitled to vote the membership. The Secretary of the Association or the
Association Manager shall be notified in writing of the Owner designated by his or her
co-Owners as having the sole right to vote the membership on their behalf. ln the absence
ofsuch designation, the person voting shall be deemed the designated voting co-Owner for
such vote. If more than one multiple Owner attempts to vote a membership, the Secretary
may refuse to count any ballot pertaining to said Lot.

Section 3.04. Furnishing Evidence ofMembership. A person shall not be entitled

to exercise the rights ofa Member until such person has advised the Secretary or Association
Manager in writing that the person is qualified to be a Member under Section 3 .01 above, and
has provided the Secretary with evidence of such qualification in the form of a copy of a
recorded grant deed, a currently effective policy of title insurance, or other satisfactory

Second Restated Bylaws-Sharon Oaks HOA Page 3 of 63

 evidence, or in the absence ofsuch evidence the Secretary may rely on the Association’s then
cmrent membership list or the records of the County Assessor. Exercise of membership
rights shall be further subject to the rules regarding record dates for notice, voting and actions
by written ballot set forth herein. Authentication of signatures shall occur as provided in
Section 5.11 of these Bylaws.

ARTICLE IV

Membership Voting

Section 4.01. Single Class of Membership. The Association shall have but one
class of voting membership.

Section 4.02. Member Voting Rights. On each matter submitted to a vote of the
Members, whether at a meeting ofthe membership called and held pursuant to the provisions
of these Bylaws or otherwise, each Member shall be entitled to cast one vote for each Lot
owned by such Member. Single memberships in which two or more persons have an
indivisible interest shall be voted as provided in Article III, Section 3.03 of these Bylaws.
The Association shall not be obligated to conduct a hearing in order to suspend a Member's
voting privileges on the basis of the nonpayment of assessments, although a delinquent
Member shall be entitled to request such a hearing in accordance with the Declaration of
Covenants, Conditions and Restrictions. A Member who owns more than one Lot shall be
ineligible to vote if that Member is delinquent with respect to any of such Lots.

Section 4.03. Eligibility to Vote. The persons entitled to vote at any meeting of
Members shall be those persons who are Members as of the record date determined in
accordance with Section 5.08 of Article V hereof, subject to the provisions of Califomia's
Non-Profit Corporation Law. A Member must be in good standing, with all assessments
current, and not be subject to any suspension of membership rights, in order to be eligible to
vote.

Section 4.04. Manner of Casting Votes. Voting may be by voice or by ballot,

provided that elections concerning assessments pursuant to Article IV of the Declaration,
selection ofmembers ofthe Association’s Board ofDirectors pursuant to Section 7.04 ofthe
Bylaws, amendments to the governing documents, or the grant of exclusive use of Common
Area property pursuant to Section 2.07 of the Declaration, and Civil Code Section 1363.07
shall be held by secret ballot in accordance with the procedures set forth in Section 7.04(c).
Members otherwise eligible to vote may do so in person or by proxy in accordance with
Section 4.05 of this Article IV.

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 Section 4.05. Proxies.

(a) Any Member entitled to vote may do so either in person or by one or more
agents authorized by a written proxy signed (whether by manual signature, typewriting,
telegraphic transmission or otherwise) by the Member and filed with the Secretary of the
Association or the Association Manager before the appointed time of each meeting. Any
proxy shall be for a term not to exceed eleven (ll) months from the date thereof, unless
otherwise provided in the proxy; provided that the maximum term ofany proxy shall be fliree
(3) years from the date of execution and, provided further, that any proxy pertaining to the
nomination or election ofDirectors shall have a maximum term not to exceed one year. Any
form of proxy distributed by any person to the membership of the Association shall afford
the opportunity to specify a choice between approval and disapproval ofeach matter or group
of matters to be acted upon. The proxy also shall identify the person or persons authorized
to exercise the proxy and the length of time it will be valid. In addition, voting by proxy
shall comply with other applicable requirements of California Corporations Code Section
7514 and 7613.

(b) Any proxy issued hereunder shall be revocable by the person executing such
proxy at any time prior to the vote pursuant thereto, by (1) delivery to the Secretary of a
written notice of revocation; (2) a subsequent proxy executed by the Member executing the
prior proxy and presented prior to the meeting or (3), as to any meeting, by attendance at
such meeting and voting in person by the Member executing the proxy. The dates contained
on the forms ofproxy presumptively determine the order ofexecution, and the order in which
they are mailed. A proxy shall be deemed revoked when the Secretary shall receive actual
notice of the death or judicially declared incompetence of the Member issuing the proxy, or
upon termination of such Member's status as an Owner of a Lot as provided in Article III,
Section 3.01 above.

(c) Any proxy given with respect to any ofthe matters described in this Subsection
(c) shall be valid only if the proxy sets forth the general nature of the matter to be voted on.
The matters subject to this requirement are:

(1) Removal of Directors.

(2) Filling of vacancies on the Board.

(3) Approval ofcontracts or transactions between the Association and one

or more of its Directors, or between the Association and a corporation,
fnm or association in which one or more of its Directors has a material
fmancial interest.

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 (4) Action to amend the Articles of Incorporation, these Bylaws or the
Covenants, Conditions and Restrictions.

(5) Sale, lease, exchange, transfer or other disposition ofall or substantially

all ofthe Association's assets otherwise than in the regular course ofthe
Association's activities-

(6) Approval of any merger ofthe Association or adoption and approval of

an amendment of an agreement of merger.

(7) Election by the Association to voluntarily wind up and dissolve.

(8) Action to change any Association assessments in a manner requiring

membership approval tmder the Covenants, Conditions and
Restrictions.

(d) In any election of Directors any fonn of proxy in which the Directors to be
voted upon are named therein as candidates, and which is marked by a Member “withhold”
or otherwise marked in a marmer indicating that the authority to vote for the election of
Directors is withheld, shall not be voted either for or against the election of a Director. Ifany
proxy issued in connection with the election of Directors is marked so as to direct the proxy
holder to vote the proxy for a specified candidate or candidates, the proxy holder shall vote
in accordance with the direction of the proxy issuer.

(e) Where two or more persons constitute a Member, any proxy with respect to the
vote of such Member may be signed by any of such persons, but only one proxy may be cast
for each Member. All such persons may attend meetings, but no vote of such Member shall
be cast without the unanimous consent of all persons present at such meeting constituting
each Member.

(f) No amendment of the Articles or these Bylaws repealing, restricting, or

expanding proxy rights may be adopted without approval by the affirmative vote of a
majority ofthe Voting Power ofthe Members represented and voting at a duly held meeting
at which a quorum is present, or the affirmative vote of a majority of the Voting Power of
the Members by written ballot as provided in Article IV, Section 4.06.

Section 4.06. Action by Written Ballot Without a Meeting.

(a) Any matter or issue requiring the vote of the Members may be submitted for
vote by written ballot without a meeting of the Members, provided the requirements for

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 action by written ballot set forth in this Section 4.06 and the provisions of California
Corporations Code Section 7513 and 7516 are met. However, written ballot votes
conceming the subjects described in Section 7.04(c) shall be conducted in accordance with
Section 7.04. The determination to seek Member approval for corporate action in this
fashion shall be made by a majority of the Board or by Members having ten (10%) percent
of the total votes of the membership signing a written request and delivering this request to
the Secretary. In the event that any matter or issue is to be voted upon by written ballot, at
least fifteen (15) days prior to the date the written ballots are to be received to be counted,
the Board shall distribute the written ballot to every Member entitled to vote on the matter.
Such ballot shall set forth the proposed action and provide an opportunity to specify a choice
between approval or disapproval ofeach matter or a group of matters to be acted upon. The
written ballot shall provide a reasonable time within which to return the written ballot to the
Association and shall state on its face or in an accompanying notice the date by which the
written ballot must be returned in order to be counted. The written ballot shall provide that,
where the Member specifies a choice, the vote shall be cast in accordance with that choice.
The time fixed for the rettun of ballots may only be increased if the Board has notified the
Members in writing in the initial ballot ofits right to do so and elects to do so in writing prior
to expiration ofthe balloting period and then for no more than sixty (60) days from the initial
retmn date of the ballots.

(b) Approval by written ballot shall be valid only when the number of votes cast
by ballot within the time period specified equals or exceeds the quormn required to be
present at a meeting of Members authorizing the action, and the number of approvals equals
or exceeds the number of votes that would be required to approve the action at a meeting of
Members.

(c) Written ballots shall be solicited in a manner consistent with the requirements
of Article V, Section 5.04(c) pertaining to the giving of notice of Members’ meetings. All
solicitations of written ballots shall indicate the number of responses needed to meet the
quonun requirement for valid action and shall state the percentage of approvals necessary
to pass the measure submitted. If deemed necessary by the Board, the ballot shall be
conducted in accordance with such additional procedures, not inconsistent with the
provisions of this Section, as may be prescribed by a firm of certified public accotmtants of
good repute who may also be retained to supervise the secrecy and control of the vote.

(d) Upon tabulation of the ballots, the Board shall notify the Members of the
outcome of the balloting process. If iusufficient votes to constitute a quorum are cast, the
Board shall so notify the Members. Once exercised, a written ballot may not be revoked.

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 Section 4.07. Only Majority Vote ofMembers Represented at Meeting Required,
Unless Otherwise Specified. If a quorum as defmed in Article V, Section 5.05, of these
Bylaws is present, the affnmative vote of the majority of the Members represented at the
meeting, entitled to vote and voting on any matter (other than the election ofDirectors), shall
be the act of the Members, unless the vote of a greater number is required by Califomia's
Non-Profit Corporation Law, by the Articles of Incorporation, by the Bylaws or by the
Covenants, Conditions and Restrictions of the Association.

ARTICLE V

Membership Meetings

Section 5.01. Place of Meeting. The meetings of the Members shall be at such
reasonable place within the County and at such time as may be specified herein or designated
by notice of the Board of the meeting.

Section 5.02. Annual Meeting. There shall be an annual meeting of the Members
on the first Tuesday in March of each year at the hour of 7:00 p.m. If for any reason it is
impossible or impractical to hold the annual meeting on such date, the meeting shall be held
at such time within thirty (30) days preceding or following such date, as the Board shall
determine.

Section 5.03. Special Meetings.

(a) Who May Call. A majority of the Board, the President or Members
representing five percent (5%) or more of the Voting Power of the Association may call
special meetings of the Members at any time to consider any reasonable business of the
Association.

(b) Calling Special Meetings by Members. If a special meeting is called by

Members other than the President or a majority of the Board, the request shall be submitted
by such Members in writing, specifying the general nature of the business proposed to be
transacted, and shall be delivered personally or sent by registered mail or by telegraphic or
other facsimile transmission to the President, any Vice President, or the Secretary of the
corporation. The officer receiving the request shall cause notice to be promptly given to the
Members entitled to vote, in accordance with the provisions of Section 5.04 of this Article
V, that a meeting will be held, and the date and time for such meeting, which date shall be
not less than thirty-five (35) or more than ninety (90) days following the receipt of the
request. If the notice is not given within twenty (20) days after receipt of the request, the

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 persons requesting the meeting may give the notice. Nothing contained in this Subsection
shall be construed as limiting, fixing, or affecting the time when a meeting of Members may
be held when the meeting is called by action of the Board of Directors or the President.

Section 5.04. Notice of Members’ Meetings.

(a) All notices of meetings of Members (whether atmual or special) shall be sent
or otherwise given in writing to each Member who, on the record date for notice of the
meeting (Article V, Section 5.03) is entitled to vote thereat, in accordance with Subsection
(c) of this Section 5.04, not less than ten (10) nor more than ninety (90).days before the date
of the meeting stating (1) in the case of a special meeting, the general nature of the business
to be transacted, and no other business may in that case be transacted, or (2) in the case of
an annual meeting, those matters which the Board of Directors, at the time of giving the
notice, intends to present for action by the Members; but any proper matter may be presented
at the meeting for such action so long as a quorum is present. The notice of any meeting at
which Directors are to be elected shall include the names of all those individuals who are
nominees at the time the notice is given to the Members. If notice is given by mail and the
notice is not given by first-class, registered or certified mail, the notice shall be given not less
than twenty (20) nor more than ninety (90) days before the meeting.

(b) If action is proposed to be taken at any meeting for approval of any of the
following proposals, the notice shall also state the general nature of the proposal. Member
action on such items is invalid unless the notice or written waiver ofnotice states the general
nature of the proposal(s):

(1) Removing a Director without cause.

(2) Filling vacancies on the Board of Directors under those circtunstances

where a vote of the Members is required pursuant to Article VII,
Section 7.05 of these Bylaws.

(3) Amending the Articles of Incorporation, these Bylaws or the

Covenants, Conditions and Restrictions in any manner requiring
approval of the Members.

(4) Approving a contract or transaction between the Association and one

or more of its Directors, or between the Association and any
corporation, firm or association in which one or more of its Directors
has a material fmancial interest.

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 (5) Approving a plan of distribution of assets, other than cash, in
liquidation.

(6) Approving any change in the Association's assessments in a manner

requiring membership approval Lmder the Covenants, Conditions and
Restrictions.

(7) Voting upon any election to voluntarily wind up and dissolve the
corporation.

(c) Notice of any meeting ofMembers shall be given either personally or by first-
class mail, or other means of written communication, charges prepaid, addressed to each
Member either at the address of that Member appearing on the books of the Association or
the address given by the Member to the Association for the purpose ofnotice. If no address
appears on the Association's books and no other has been given, notice shall be deemed to
have been given if either (1) notice is sent to that Member by first class mail, telegraphic or
other written communication addressed to the Association's principal office, or (2) notice is
published at least once in a newspaper of general circulation in the county where that office
is located. Notice shall be deemed to have been given at that time when delivered personally
or seventy-two (72) hours following deposit in the mail. In the event that the Association
regularly sends its Members a newsletter or magazine, the requirement of written notice
hereunder may be satisfied by setting forth the required information in said newsletter or
magazine so long as it is addressed and mailed or delivered to the Member at the Member's
address as shown on the books of the Association.

(d) An affidavit of the mailing or other means of giving any notice of any
Members’ meeting may be executed by the Secretary or Assistant Secretary of the
Association, and if so executed, shall be filed and maintained in the Association's minute
book. Such affidavit shall constitute prima facie evidence of the giving of notice.

Section 5.05. Quorum Requirements.

(a) Fifty-one percent (51%) of the Voting Power of the Members, represented in
person or by proxy, shall constitute a quorum for the transaction ofbusiness at a meeting of
the Members. Provided, however, that if that quorum is not present or represented at any
meeting, a majority of the Members entitled to vote at the meeting may, unless otherwise
provided by law, adjourn the meeting to a different time andlor date at which meeting the
quorum requirement shall be twenty-five percent (25%) of the total voting power. The
quorum requirements of this Section 5.05 shall apply to votes of the membership by secret
ballot pursuant to Section 7.04 of the Bylaws. Notwithstanding anything herein to the

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 contrary, a quorum for purposes of obtaining membership approval of special assessments
or increases in regular assessments as may be required by Article IV, Sections 4.02(a) and
4.03(c) of the Covenants, Conditions and Restrictions means more than fifty (50%) percent
of the Owners. .

(b) The Members present at a duly called or duly held meeting at which a quorum
is present may continue to transact business until adjournment, notwithstanding the
withdrawal of enough Members to leave less than a quorum, if any action taken (other than
adjournment) is approved by at least a majority of the Members required to constitute a
quonuin.

Section 5.06. Adjourned Meeting. Any Members’ meeting, annual or special,

whether or not a quorum is present, may be adjourned from time to time by the vote of the
majority of Members represented at the meeting, either in person or by proxy. Unless there
is an absence of a quorum, the adjourned meeting may take any action which might have
been transacted at the original meeting. When a Members‘ meeting is adjourned to another
time or place, notice need not be given ofthe adjourned meeting ifthe time and place thereof
are announced at the meeting at which the adjournment is taken. No meeting may be
adjourned for more than forty-five (45) days. If, after adjournment, a new record date is
fixed for notice or voting, a notice of the adjourned meeting must be given to each Member
who, on the record date for notice of the meeting, is entitled to vote thereat.

Section 5.07. Waiver of Notice or Consent by Absent Members.

(a) The transactions ofany meeting ofMembers, either annual or special, however
called or noticed, and wherever held, shall be as valid as though taken at a meeting duly held
after regular call and notice, if a quorum be present either in person or by proxy, and ii either
before or after the meeting, each person entitled to vote, who was not present in person or
by proxy, signs a written waiver of notice or a consent to a holding of the meeting, or an
approval ofthe minutes. The waiver ofnotice or consent need not specify either the business
to be transacted or the ptupose of any annual or special meeting of Members, except that if
action is taken or proposed to be taken for approval of any of those matters specified in
Section 5.04(b) ofthis Article V, the waiver ofnotice or consent shall state the general nature
of the proposal. All such waivers, consents, or approvals shall be filed with the corporate
records or made a part of the minutes of the meeting.

(b) Attendance by a person at a meeting shall also constitute a waiver of notice of

that meeting, except when the person objects at the beginning of the meeting to the
transaction ofany business due to the inadequacy or illegality ofthe notice. Also, attendance
at a meeting is not a waiver of any right to object to the consideration ofmatters not included

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in the notice of the meeting which are required to be described therein pursuant to Section
5.04(b) of this Article V, if that objection is expressly made at the meeting.

Section 5.08. Record Dates for Member Notice, Voting and Giving Consents.

(a) For the purpose of determining which Members are entitled to receive notice
ofany meeting, vote, act by written ballot without a meeting or exercise any rights in respect
to any other lawful action, the Board of Directors may fix, in advance, a “record date” and
only Members of record on the date so fixed are entitled to notice, to vote, or to take action
by written ballot or otherwise, as the case may be, notwithstanding any transfer of any
membership on the books of the corporation after the record date, except as otherwise
provided in the Articles of Incorporation, by agreement, or in the Califomia Non-Profit
Corporation Law. The record dates established by the Board pursuant to this Section shall
be:

(1) In the case of determining those Members entitled to notice of a

meeting, not more than ninety (90) nor less than ten (10) days before
the date of the meeting.

(2) In the case ofdetermining those Members entitled ‘to vote at a meeting,
not more than sixty (60) days before the date of the meeting.

(3) In the case of detemiining Members entitled to cast written ballots, not
more than sixty (60) days before the day on which the first written
ballot is mailed or solicited.

(4) In the case of determining Members entitled to exercise any rights in

respect to other lawful action, not more than sixty (60) days prior to the
date of such other action.

(b) Failme of Board to Fix a Record Date.

(l) Record Date for Notice of Meetings. Unless fixed by the Board, the
record date for determining those Members entitled to receive notice of
a meeting of Members, shall be the business day preceding the day on
which notice is given, or, if notice is waived, the business day
preceding the day on which the meeting is held.

(2) Record Date for Voting. Unless fixed by the Board, the record date for
determining those Members entitled to vote at a meeting of Members

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 shall be the day of the meeting, or in the case of an adjourned meeting,
the day of the adjourned meeting.

(3) Record Date for Action by Written Ballot Without Meeting. Unless
fixed by the Board, the record date for determining those Members
entitled tolvote by written ballot on proposed corporate actions without
a meeting, when no prior action by the Board has been taken, shall be
the day on which the first written ballot is mailed or solicited. When
prior action of the Board has been taken, it shall be the day on which
the Board adopts the resolution relating to that action.

(4) Record Date for Other Lawful Action. Unless fixed by the Board, the
record date for detennining those Members entitled to exercise any
rights in respect to any lawful action shall be Members at the close of
business on the day on which the Board adopts the resolution relating
thereto, or the sixtieth (60th) day prior to the date of such other action,
whichever is later.

(5) “Record Date” Means as of Close of Business. For purposes of this

Section (b) a person holding a membership as of the close of business
on the record date shall be deemed the Member of record.

Section 5.09. Open Forums. In addition to the annual and special meetings
discussed in Sections 5.02 and 5.03 of this Article V, the Secretary of the Association shall
be entitled to call informal meetings of the membership, to be known as Open Fortuns, for
the purpose ofdiscussing problems common to Members residing in a particular area within
the Properties or problems common to all Members. Open Forums shall be called on written
notice delivered to all Members at least five (5) days before the date of the meeting. The
notice shall set forth the date, time and place of the Open Forum and the general nature of
each item to be discussed. Although the Members attending the Open Forum may discuss
any issue that has been noticed, no formal action may be taken at the meeting, such action
being reserved to membership meetings satisfying the requirements ofSections 5.01 through
5.08 of this Article V.

Section 5.10. Meeting Procedures. Meetings ofthe membership ofthe Association

shall be conducted in accordance with a recognized system of parliamentary procedure or
such parliamentary procedures as the Association may adopt. The Board shall permit any
Member of the Association to speak at any meeting of the Association. A reasonable time
limit for all Members of the Association to speak before a meeting of the Association shall
be established by the Board.

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 Section 5.11. Authentication of Signatures.

(a) If the name signed on a ballot, consent, waiver, or proxy appointment

corresponds to the record name of a Member, the Association, if acting in good faith, is
entitled to accept the ballot, consent, waiver or proxy appointment and give it effect as the
act of the Member.

(b) Ifthe name signed on a ballot, consent, waiver, or proxy appointment does not
correspond to the record name of a Member, the Association, if acting in good faith, is
nevertheless entitled to accept the ballot, consent, waiver, or proxy appointment and give it
effect as the act of the Member if any of the following occur:

(1) The Member is an entity and the name signed purports to be that of an
officer or agent of the entity.

(2) The name signed purports to be that of an attomey-in-fact of the

Member and if the Association requests, evidence acceptable to the
Association of the signatory’s authority to sign for the Member has
been presented with respect to the ballot, consent, waiver, or proxy
appointment.

(3) Two or more persons hold the membership as cotenants or fiduciaries

and the name signed purports to be the name of at least one of the
coholders and the person signing appears to be acting on behalf of all
the coholders.

(4) The name signed purports to be that of an administrator, executor,

guardian, or conservator representing the Member and, if the
Association requests, evidence of fiduciary status acceptable to the
Association has been presented with respect to the ballot, consent,
waiver, or proxy appointment.

(5) The name signed purports to be that of a receiver or trustee in

bankruptcy of the Member, and, if the Association requests, evidence
of this status acceptable to the Association has been presented with
respect to the ballot, consent, waiver, or proxy appointment.

(c) The Association is entitled to reject a ballot, consent, waiver, or proxy

appointment ifthe Secretary or other officer or agent authorized to tabulate votes, including

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 an inspector, acting in good faith, has a reasonable basis for doubt conceming the validity
of the signature or the signatory’s authority to sign for the Member.

(d) The Association and any officer or agent thereof who accepts or rejects a
ballot, consent, waiver, or proxy appointment in good faith and in accordance with the
standards of this Section 5.11 shall not be liable in damages to the Member of the
consequences of the acceptance or rejection.

(e) Association action based on the acceptance or rejection of a ballot, consent,

waiver, or proxy appointment under this Section 5.11 is valid unless a court of competent
jurisdiction determines otherwise.

ARTICLE VI

Membership Rights

Subject to the provisions hereofand the provisions ofthe Covenants, Conditions and
Restrictions, the Members shall have the following rights:

Section 6.01. Use and Enjoyment of Common Area. Each Member shall be
entitled to the use and enjoyment of the Common Area and Common Facilities within the
Properties.

Section 6.02. Use of Common Area by Household Members. In the interests of

safety, and ofenforcing the Association Management Documents, each Member shall notify
the Board in writing of the names of the occupants of the Member’s Townhouse who may
use and enjoy the Common Area and Common Facilities within the Properties.

Section 6.03. Tenants. Subject to the Covenants, Conditions and Restrictions, each
Member shall have the right to assign the Member’s rights as a Member (other than voting
rights and qualification to serve as a Director) to a Tenant residing within said Member's Lot.
Such assignment shall only be effective so long as said Tenant is so residing in said
Member's Lot and is in compliance with the Covenants, Conditions and Restrictions and the
Association Rules, as the same may exist from time to time. At all times the Member shall
remain responsible for compliance by the Member’s Tenant with the provisions of these
Bylaws, the Covenants, Conditions and Restrictions and the Association Rules. The
assignment of the Member’s right to use Common Area recreational facilities to a Tenant
shall not be effective until such time as the Member has given the Secretary or managing
agent written notice thereof setting forth the name of the assignee and the members of the

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assignee’s Household who will be entitled to the use and enjoyment of the Common
Facilities by virtue of said assignment. Dining the period of any lease or rental of a Lot,
neither the Member nor the Member’s Guests shall be entitled to use the Common Facilities
except to the extent reasonably necessary to perfonn the usual responsibilities of a landlord
or to ensure or gain compliance by the Tenant with the requirements ofthese Bylaws and the
Covenants, Conditions and Restrictions.

Section 6.04. Guests. The Guests of a Member or assignee of the Member under
Section 6.03 above shall have the right to use and enjoy the Common Area, recreation
facilities and roads within the Properties subject to the terms of the Covenants, Conditions
and Restrictions, and ftnther subject to the Association Rules, provided that such Guests are
accompanied by the Member or the assignee while using the Cormnon Facilities.

Section 6.05. Compliance with Association Governing Documents and

Association Rules. The right of use and enjoyment hereunder, shall at all times be subject
to the rules, limitations and restrictions set forth herein and, in the Association Rules, as the
same are in existence from time to time. The Board shall have the right to impose monetary
penalties or to temporarily suspend the use and enjoyment of any Common Facilities, with
the exception ofthe tight ofuse ofany roads or driveways, for the failure ofa Member to pay
any assessments when due under the Covenants, Conditions and Restrictions, or to comply
with any other rule or regulation imposed upon such Member, the Member’s Tenants or
Guests, pursuant to the Articles ofIncorporation, these Bylaws or the Covenants, Conditions
and Restrictions; provided, however, that any such suspension shall only be imposed after
such person has been afforded the notice and opportunity for a hearing more particularly
described in the Covenants, Conditions and Restrictions.

ARTICLE VII

Board of Directors

Section 7.01. General Corporate Powers. Subject to the provisions of the

California Non-Profit Corporation Law, the Covenants, Conditions and Restrictions, and any
limitations in the Articles and these Bylaws relating to action requiring approval by the
Members, the business and affairs ofthe Association shall be vested in and exercised by, the
Association's Board of Directors consisting of seven (7) persons who shall be Members in
good standing, provided, however, that no two persons owning or residing in the same Lot
may serve as Director at the same time. Subject to the limitations expressed in Article X,
Section 10.01, the Board may delegate the management of the activities of the Association
to anyperson or persons, management company or committee, provided that notwithstanding

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 any such delegation, the activities and affairs of the Association shall continue to be
exercised under the ultimate direction of the Board.

Section 7.02. Term of Office. Each Director elected at the annual meeting shall hold
office for a term of two (2) years and until a successor Director has been elected and
qualified. A Member elected or appointed to fill an unexpired Board vacancy shall serve for
the unexpired term ofthe Member’s predecessor. Three (3) Directors shall be elected in each
even numbered year and four (4) Directors shall be elected in each odd numbered year.

Section 7.03. Nominations of Directors.

(a) Candidates Selected by Nomination Committee. At least sixty (60) days prior
to the date of any election ofDirectors, the Board shall appoint a Nominating Committee to
select qualified candidates for election to those positions on the Board of Directors held by
Directors whose terms are then expiring. The Nominating Committee shall consist of a
Chairman, who shall be a member of the Board of Directors, and two or more Members of
the Association who may or may not be Board members. The Nominating Committee shall
make as many nominations for election to the Board as it shall, in its discretion, determine,
but not less than the number of vacancies on the Board to be filled. Members in good
standing may be nominated as candidates for election to the Board. The Nominating
Committee shall make a report to the Board at least thirty (30) days before the date of the
election, and the Board will provide the recommendations of the Nominating Committee to
the Members as well as its Own endorsements.

(b) Candidate Communications. The Board shall adopt procedures that provide
for a reasonable opportunity for nominees to communicate their qualifications and reasons
for candidacy to the Members and to solicit votes, and for a reasonable opportunity for all
Members to choose among the nominees.

(c) Self-Nomination. A Member can become a candidate for election by self-

nomination as a candidate in the Ballot described in Section 7.04, by (i) giving timely notice
to the Board, (ii) as a write-in candidate, or (iii) as a candidate nominated from the floor if
the secret ballot election concludes at a meeting of the Members.

(d) Good Standing Requirement for Candidacy. In order to be eligible for

nomination, election and service on the Board, the Association Secretary must certify that
the candidate-Member is in good standing with the Association and is current in the payment
of his or her assessments.

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 Section 7.04. Secret Ballot Elections.

(a) Annually, the Members shall elect persons to those positions on the Board of
Directors held by Directors whose terms are then expiring. The persons thus elected shall
be selected from among those persons nominated pursuant to Section 7.03 above.

(b) Cumulative voting for the election of Directors is prohibited. Voting for
Directors shall be by secret written ballot, and the candidates receiving the highest number
of votes, up to the number of Directors to be elected, shall be elected.

(c) An election regarding assessments pursuant to Article IV of the Declaration,

selection or removal of members of the Association’s Board of Directors pursuant to this
Section 7.04 of the Bylaws, amendments to the governing documents, or the grant of
exclusive use of Common Area property pursuant to Section 2.07 of the Declaration, and
Civil Code Section 1363.07 shall be held by secret ballot in accordance with the procedures
set forth in this Subsection (c).

(1) The Association shall select an independent third party or parties as an

inspector of election. The number ofinspectors of election shall be one
or three.

(2) For the purposes of this Subsection (c), an independent third party
includes, but is not limited to, a volunteer poll worker with the County
registrar of voters, a licensee of the California Board ofAcco1.u1tancy,
or a notary public. An independent third party may be a Member ofthe
Association, but may not be a member of the Board of Directors or a
candidate for the Board of Directors or related to a member of the
Board of Directors or a candidate for the Board of Directors. An
independent third party may not be a person who is currently employed
or under contract to the Association for any compensable services
unless expressly authorized by election rules ofthe Association adopted
pursuant to Civil Code Section 1363.03.

(3) The inspector or inspectors of election shall do all of the following:

(A) Determine the niunber of memberships entitled to vote and the

Voting Power of each.

(B) Determine the authenticity, validity, and effect ofproxies, if any.

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 (C) Receive ballots.

(D) Hear and determine all challenges and questions in any way
arising out of or in connection with the right to vote.

(E) Count and tabulate all votes.

(F) Determine when the polls shall close.

(G) Determine the tabulated results of the election.

(H) Perform any acts as may be proper to conduct the election with
fairness to all Members in accordance with Civil Code Section
1363.03, the Corporations Code and the governing documents
ofthe Association regarding the conduct ofthe election that are
not in conflict with Civil Code Section 1363.03.

The inspector of election shall perform his or her duties impartially, in

good faith, to the best of his or her ability, and as expeditiously as is
practical. Ifthere are three inspectors of election, the decision or act of
a majority shall be effective in all respects as the decision or act of all.
Any report made by the inspector or inspectors of election is prima
facie evidence of the facts stated in the report.

Any instruction given in a proxy issued for an election that directs the
manner in which the proxy holder is to cast the vote shall be set forth
on a separate page of the proxy that can be detached and given to the
proxy holder to retain. The proxy holder shall cast the Member's vote
by secret ballot.

Ballots and two preaddressed envelopes with instructions on how to

return ballots shall be mailed by first-class mail or delivered by the
Association to every Member not less than thirty (3 0) days prior to the
deadline for voting. In order to preserve confidentiality, a voter may not
be identified by name, address, or lot, parcel, or unit number on the
ballot. The Association shall use as a model those procedures used by
California counties for ensuring confidentiality of voter absentee
ballots, including all of the following:

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 (A) The ballot itselfis not signed by the voter, but is inserted into an
envelope that is sealed. This envelope is inserted into a second
envelope that is sealed. In the upper left hand comer of the
second envelope, the voter prints and signs his or her name, and
indicate the address, or separate interest identifier that entitles
him or her to vote.

(B) The second envelope is addressed to the inspector or inspectors

of election, who will be tallying the votes. The envelope may
be mailed or delivered by hand to a location specified by the
inspector or inspectors of election. The Member may request a
receipt for delivery.

All votes shall be counted and tabulated by the inspector or inspectors

ofelection in public at a properly noticed open meeting ofthe Board of
Directors or Members. Any candidate or other Member of the
Association may witness the counting and tabulation of the votes. No
person, including a Member of the Association or an employee of the
management company, shall open or otherwise review any ballot prior
to the time and place at which the ballots are counted and tabulated.
However, the inspector of election, or his or her designee, may verify
the Member’s information and signature on the outer envelope prior to
the meeting at which the ballots are tabulated. Once a secret ballot is
received by the inspector of elections, it shall be irrevocable.

The tabulated results of the election shall be promptly reported to the

Board of Directors of the Association and shall be recorded in the
minutes of the next meeting of the Board of Directors and shall be
available for review by Members ofthe Association. Within fifteen (15)
days ofthe election, the Board shall publicize the results ofthe election
in a communication directed to all Members.

The sealed ballots at all times shall be in the custody ofthe inspector or
inspectors of election or at a location designated by the inspector or
inspectors until after the tabulation of the vote, and until the time
allowed by Section 7527 ofthe Corporations Code for challenging the
election has expired, at which time custody shall be transferred to the
Association. In the event ofa recoimt or other challenge to the election
process, the inspector(s) shall, upon Written request, make the ballots
available for inspection and review by Association Members or their

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 authorized representatives. Any-recount shall be conducted in a manner
that shall preserve the confidentiality of the vote.

(10) After the transfer of the ballots to the Association, the election ballots
shall be stored by the Association in a secure place for no less than one
year after the date of the election.

(l I) Association funds shall not be used for campaign purposes in

connection with any Association Board election. Funds of the
Association shall not be used for campaign p1.u'poses in connection with
any other Association election except to the extent necessary to comply
with duties of the Association imposed by law.

(12) For the purposes of 'tl‘llS Section “campaign ptnposes” include, but are
not limited to, the following:

(A) Expressly advocating the election or defeat or any candidate that

is on the Association election ballot.

(B) Including the photograph or prominently featuring the name of

any candidate on a communication from the Association or its
Board, excepting the ballot and ballot materials, within thirty
(30) days of an election, provided that this is not a campaign
pmpose if the communication is one for which subdivision (a)
of Civil Code Section l363.03 requires that equal access be
provided to another candidate or advocate.

Section 7.05. Vacancies on Board of Directors.

(a) A vacancy or vacancies on the Board of Directors shall be deemed to exist on

the occm-rence of any of the following: (1) the death or resignation of any Director or the
removal of a Director pursuant to Subsection (d) hereof; (2) the failtue of the Members, at
any meeting of Members at which any Director or Directors are to be elected, to elect the
number of Directors to be elected at such meeting.

(b) Except as provided in this Section, any Director may resign, which resignation
shall be effective on giving written notice to the President, the Secretary, or the Board of
Directors, unless the notice specifies a later time for the resignation to become effective. If
the resignation ofa Director is effective at a future time, the Board ofDirectors may appoint
a successor to take office when the resignation becomes effective.

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 (c) Vacancies on the Board shall be filled by a majority vote of the remaining
Directors, though less than a quorum, or by a sole remaining Director. The successor
Director shall serve for the unexpired tenn of his or her predecessor. The Members may
elect a Director or Directors at any time to fill any vacancy or vacancies not filled by the
Directors, but any such election or written ballot shall require the approval of a majority of
the Voting Power. A vacancy created by the removal of a Director can be filled only by
election of the Members.

(d) The Board ofDirectors shall have the power and authority to remove a Director
and declare such office vacant if the Director has: (1) been declared of unsound mind by a
final order of court; (2) been convicted of a felony; (3) been fotmd by a final order or
judgment ofany court to have breached any duty under Sections 7230-7236 ofthe California
Non-Profit Corporation Law (relating to the standards ofconduct ofDirectors); (4) failed to
attend three (3) consecutive regular meetings of the Board which have been duly noticed in
accordance with California law; or (5) becomes more than ninety (90) days delinquent in the
payment of assessments. Except as otherwise provided in the irrnnediately preceding
sentence and in Subsection (e) hereof, a Director may only be removed from office prior to
expiration ofthe Director’s term by the affmnative vote of a majority ofthe votes conducted
by secret ballot as required by the procedures set forth in Section 7.04 .

(e) No reduction of the authorized number of Directors shall have the effect of
removing any Director before that Directors term of office expires.

ARTICLE VIII

Board Meeting

Section 8.01. Place of Meetings. Regular meetings of the Board of Directors may
be held at any place within the County that has been designated from time to time by
resolution of the Board. In the absence of such designation, regular meetings shall be held
at the principal office of the Association. Special meetings ofthe Board shall be held at any
place within the County that has been designated in the notice ofthe meeting or, ifnot stated
in the notice, at the principal office ofthe Association. Notwithstanding the above provisions
of this Section 8.01, a regular or special meeting of the Board may be held at any place
consented to in writing by all the Board members, either before or after the meeting. If
consents are given, they shall be filed with the minutes of the meeting.

Section 8.02. Meetings of Directors. Within thirty (30) days following each annual
meeting ofMembers, the Board ofDirectors shall hold a regular meeting for the purpose of

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 organization, election of officers, and the transaction of other business. Reasonable notice
of this meeting shall be given to the Members. Regular meetings shall be conducted at least
quarterly.

Section 8.03. Notice of Regular Meetings. Notices of regular and special meetings
of the Board of"Directors shall be given to the Board members upon four (4) days ’ notice by
first-class mail or forty-eight (48) hours’ notice delivered personally or by telephone,
including a voice messaging system or other system or technology designed to record and
communicate messages, telegraph, facsimile, electronic mail, or other electronic means.
Notice ofthe date, time and location of all regular Board meetings also shall be given to the
Members at least four (4) days prior to the meeting by posting the notice in a prominent place
or places within the Common Area, by mail, or delivery of the notice to each Townhouse,
or by newsletter or similar means of communication, except for an emergency meeting.
Notice shall be given by mail to any Owner who had requested notification of Board
meetings by mail, at the address requested by the Owner. An emergency meeting of the
Board of Directors may be called by the President, or by any two (2) members of the Board
of Directors other than the President, if there are circumstances that could not have been
reasonably foreseen which require immediate attention and possible action by the Board and
which, ofnecessity, make it impracticable to provide notice as required by this Section. The
notice shall contain the agenda for the meeting.

Section 8.04. Agenda.

(a) Except as described in Subsections (b) to (d), inclusive, of this Section 8.04,
the Board of Directors may not discuss or take action on any item at a nonemergency
meeting unless the item was placed on the agenda included in the notice that was posted and
distributed pursuant to Section 8.03. This Section does not prohibit a resident who is not a
member of the Board from speaking on issues not on the agenda.

(b) Notwithstanding Subsection (a), a member of the Board of Directors, a

managing agent, or other agent of the Board of Directors, or a member of the staff of the
Board of Directors, may do any of the following:

(1) Briefly respond to statements made or questions posed by

a person speaking at a meeting as described in Section 8.06(a)

(2) Ask a question for clarification, make a brief

announcement, or make a brief report on his or her own
activities, whether in response to questions posed by a member
of the Association or based upon his or her own initiative.

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 (C) Notwithstanding Subsection (a), the Board of Directors or a member of the
Board of Directors, subject to rules or procedures of the Board of Directors, may do any of
the following:

(1) Provide a reference to, or provide other resources for

factual information to, its managing agent or other agents or
staff.

(2) Request its managing agent or other agents or staff to

report back to the Board of Directors at a subsequent meeting
concerning any matter, or take action to direct its managing
agent or other agents or staff to place a matter of business on a
future agenda.

(3) Direct its managing agent or other agents or staff to

perform administrative tasks that are necessary to carry out this
Subsection.

(d)( 1) Notwithstanding Subsection (a), the Board ofDirectors maytake action on any
item ofbusiness not appearing on the agenda posted and distributed pursuant to Section 8 03
under any of the following conditions:

(i) Upon a determination made by a majority ofthe Board of

Directors present at the meeting that an emergency situation
exists. An emergency situation exists ifthere are circumstances
that could not have been reasonably foreseen by the Board, that
require immediate attention and possible action by the Board,
and that, of necessity, make it impracticable to provide notice.

(ii) Upon a determination made by the Board by a vote of

two-fliirds (2/3rds) ofthe members present at the meeting, or, if
less than two-thirds (2/3rds) of total membership of the Board
is present at the meeting, by a tmanimous vote of the members
present, that there is a need to take immediate action, and that
the need for action came to the attention of the Board after the
agenda was posted and distributed pursuant to Section 8.05.

(iii) The item appeared on an agenda that was posted and

distributed pursuant to Section 8.03 for a prior meeting of the
Board of Directors that occurred not more than thirty (30)

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 calendar days before the date that action is taken on the item
and, at the prior meeting, action on the item was continued to
the meeting at which the action is taken.

(d) (2) Before discussing any item pursuant to this Section, the Board of
Directors shall openly identify the item to the Members in attendance at the meeting.

Section 8.05. Special Meetings of the Board.

(a) Special meetings of the Board of Directors for any purpose may be called at
any time by the President, the Vice-President, the Secretary, or any two Directors.

(b) Notice of Special Meetings.

(1) Manner of Giving. Notice ofthe time and place of special meetings of
the Board shall be given to each Director by one of the following
methods:

(i) By personal delivery of written notice.

(ii) By first-class mail, postage prepaid.

(iii) Bytelephone commtmication, including a voice message system

or other system or technology designed to record and commtu1i-
cate messages.

(iv) By telegraph, facsimile, electronic mail, or other electronic

means.

All such notices shall be given or sent to the Director's address or telephone number
as shown on the records of the Association. Notice of a meeting need not be given to any
Director who signed a written waiver of notice or a written consent to holding the meeting
or an approval ofthe minutes thereof, whether before or after the meeting, or who attends the
meeting without protesting, prior thereto or at commencement of the meeting, the lack of
notice to such Director. All such waivers, consents and approvals shall be filed with the
corporate records or made a part of the minutes.

Reasonable advance notice of any special meeting ofthe Board also shall be given to
the Members of the Association. Notice of the date, time and location of special Board
meetings also shall be given to the Members at least four (4) days prior to the meeting by

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posting the notice in a prominent place or places within the Common Area, by mail, or
delivery of the notice to each Townhouse, or by newsletter or similar means of
communication. Notice shall be given by mail to any Owner who had requested notification
of Board meetings by mail, at the address requested by the Owner. Notices of emergency
meetings of the Board need not be given to the Members.

(2) Time Requirements. Notices sent by first-class mail shall be deposited

into a United States mailbox at least four (4) days before the time set
for the meeting. Notices given by personal delivery, telephone, e-mail
or telegraph shall be delivered, telephoned, e-mailed or given to the
telegraph company at least forty-eight (48) hours before the time set for
the meeting.

(3) Notice Contents. The notice shall state the date, time, place and
purpose for the meeting.

Section 8.06. Attendance by Members and Association Manager.

(a) With the exception of executive sessions of the Board (see Subsection (b),
below) and emergency meetings of the Board as defined in Civil Code Section l363.05(h),
all meetings of the Board shall be open to Members of the Association provided that
non-Director members may only participate in deliberations or discussions of the Board
when expressly authorized by a vote of a majority of a quorum of the Board. However, the
Board shall permit any Member of the Association to speak at any meeting of the Board,
except for meetings of the Board held in executive session. A reasonable time limit for all
Members of the Association to speak to the Board shall be established by the Board. The
Association Manager may, at the Board's discretion, attend regular and special meetings. As
used in this Section, “meeting” includes any congregation of a majority of the members of
the Board at the same time and place to hear, discuss, or deliberate upon any item ofbusiness
scheduled to be heard by the Board, except those matters that may be discussed in executive
session.

(b) The Board may adjotun a meeting and reconvene in executive session to
discuss and vote upon litigation, matters that relate to the formation of contracts with third
parties, Member discipline, personnel matters, or to meet with a Member, upon the
Member’s request, regarding the Member’s payment of assessments, as specified in
California Civil Code Section 1367 or 1367.1. The nature of any and all business to be
discussed in executive session shall first be announced in open session. The Board of
Directors shall meet in executive session, if requested by a Member who may be subject to
a fine, penalty, or other form of discipline, and the Member shall be entitled to attend the

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executive session. Nothing provided herein shall be construed to obligate the Board to first
call an open meeting before meeting in executive session with respect to the matters
described above. Any matters discussed in executive session shall be generally noted in the
minutes of the immediately following meeting that is open to the entire membership.

Section 8.07. Meeting Format. Members ofthe Board may participate in a meeting
through use of conference telephone, electronic video screen communications, or other
communications equipment. Participation in a meeting through use ofconference telephone
pursuant to this Section constitutes presence in person at that meeting as long as all Members
participating in the meeting are able to hear one another. Participation in a meeting through
use of electronic video screen communication or other communications equipment (other
than conference telephone) pursuant to this Section constitutes presence in person at that
meeting if all of the following apply:

(a) Each member ofthe Board participating in the meeting can commtmicate with
all of the other Members concurrently.

(b) Each member ofthe Board is provided the means ofparticipating in all matters
before the Board, including, without limitation, the capacity to propose, or to interpose an
objection to, a specific action to be taken by the corporation.

(c) The corporation adopts and implements some means of verifying both of the
following:

(i) A person participating in the meeting is a Director or other person

entitled to participate in the Board meeting.

(ii) All actions of, or votes by, the Board are taken or cast only by the
Directors and not by persons who are not Directors.

(d) The rights of Members of the Association to attend and participate in the
meeting as provided in Section 8.06 of these Bylaws are preserved.

Section 8.08. Quorum Requirements. A majority of the authorized number of

Directors shall constitute a quorum for the transaction of business, except to adjourn as
provided in Section 8.10 ofthis Article VII_I. Every act done or decision made by a majority
ofthe Directors present at a meeting duly held at which a quorum is present shall be regarded
as the act of the Board of Directors, subject to the provisions of the California Non-Profit
Corporation law, especially those provisions relating to (l) approval of contracts or
transactions in which a Director has a direct or indirect material financial interest, (2)

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appointment of committees, and (3) indemnification of Directors. A meeting at which a
quorum is initially present may continue to transact business, notwithstanding the withdrawal
of Directors below a quorum, if any action taken is approved by at least a majority of the
required quorum for that meeting.

Section 8.09. Waiver of Notice. The transaction of any meeting of the Board of
Directors, however called and noticed or wherever held, shall be as valid as though taken at
a meeting duly held afier regular call and notice, if (a) a quortun is present, and-(b) either
before or after the meeting, each of the Directors not present, individually or collectively,
signs a written waiver of notice, a consent to holding the meeting, or an approval of the
minutes. The waiver ofnotice or consent need not specify the piupose of the meeting. All
waivers, consents, and approvals shall be filed with the corporate records or made a part of
the minutes of the meeting and shall have the same force and effect as a unanimous vote of
the Board. The requirement ofnotice of a meeting also shall be deemed to have been waived
by any Director who attends the meeting without protesting before or at its commencement
about the lack of notice.

Section 8.10. Adjournment. A majority of the Directors present, whether or not

constituting a quorum, may adjourn any meeting to another time and place. If the meeting
is adjourned for more than twenty-four (24) hours, notice of adjournment to any other time
or place shall be given prior to the time of the adjourned meeting to the Directors who are
not present at the time of the adjourmnent. Except as hereinabove provided, notice of
adjournment need not be given.

Section 8.11. Compensation. Directors, officers and members of committees shall

not be entitled to compensation for their services as such, although they may be reimbursed
for such actual expenses as may be determined by resolution ofthe Board ofDirectors to be
just and reasonable.

Section 8.12. Minutes. The minutes, minutes proposed for adoption that are marked
to indicate draft status, or a summary of the minutes, of any meeting of the Board of
Directors, other than an executive session, shall be available to Members within thirty (30)
days of the meeting. Any matter discussed in executive session shall be generally noted in
the minutes of the immediately following meeting open to the entire membership. The
minutes, proposed minutes, or summary minutes shall be distributed to any Member of the
Association upon request and upon reimbursement of the Association's costs in making that
distribution. Members ofthe Association shall be notified in writing at the time that the pro
forma budget required in California Civil Code Section 1365 is distributed, or at the time of
any general mailing to the entire membership ofthe Association, oftheir right to have copies

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 of the minutes ofmeetings of the Board of Directors, and how and where those minutes may
be obtained.

ARTICLE IX

Duties and Powers of the Board

Section 9.01. Standard of Care. Each Director shall perform his or her duties as
a Director, including the duties as a member of any committee of the Board on which the
Director serves, in good faith, in a manner such Director believes to be in the best interests
ofthe Association, and with such care, including reasonable inquiry, as an ordinarily prudent
person in a like position would use under similar circtunstances.

Section 9.02. Specific Powers and Duties. Without prejudice to the general powers
of the Board of Directors set forth in Article VII, Section 7.01, the Directors shall have the
power to:

(a) Exercise all powers vested in the Board under the Articles of Incorporation,
these Bylaws, the Covenants, Conditions and Restrictions, and under the laws of the State
of California.

(b) Appoint and remove all officers of the Association, the Association Manager
of the Association, if any, and any Association employees, prescribe any powers and duties
for such persons that are consistent with law, the Articles, the Covenants, Conditions and
Restrictions and these Bylaws.

(c) Appoint such agents, employees and consultants, including attorneys and
accountants, as it sees fit to assist in the operation of the Association, and to fix their duties
and to establish their compensation.

(d) Subject to the provisions of the Covenants, Conditions and Restrictions, to

adopt, establish and distribute upon adoption, rules and regulations governing the use ofthe
Common Area, the Common Facilities, and the personal conduct of the Members and their
Guests thereon, and to take such steps as it deems necessary for the enforcement of the
Association Rules, including the imposition of monetary penalties and/or the suspension of
voting rights and the right to use any Common Facilities; provided notice and an opporttmity
for a hearing are furnished as more particularly set forth in the Covenants, Conditions and
Restrictions. Association Rules adopted by the Board may contain reasonable variations and
distinctions as between Owners and Tenants.

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 (e) Enforce all applicable provisions of the Covenants, Conditions and
Restrictions, these Bylaws and all other regulations relating to the control, management, and
use ofthe Lots within the Properties and the Common Area and Common Facilities; provided
that the procedures set forth in Section 9.04 are followed.

(f) Contract and pay premiums for fire, casualty, liability and other insurance and
bonds (including indemnity bonds) which may be required from time to time in relation to
the Properties.

(g) Contract for and pay for maintenance, landscaping, utilities, materials, supplies,
labor and services that may be required from time to time in relation to the Properties.

(h) Pay all taxes, special assessments and other assessments and charges which are
or would become a lien on any portion of the Common Area, and complete and file all tax-
related reports and returns.

(i) Contract for and pay for construction or reconstruction of any portion or
portions ofthe Properties which have been damaged or destroyed and which are to be rebuilt.

(j) If and when the Board deems it appropriate and subject to the limitations
expressed in Article X, Section 10.01 hereof, to delegate its duties and power hereunder to
the officers of the Association or to committees established by the Board or a manager or
management company retained by the Board.

(k) Establish and levy assessments on the Members of the Association and to
collect the same, in accordance with the Covenants, Conditions and Restrictions, and to
establish and collect reasonable use charges for any or all of the Common Facilities as the
Board may deem necessary or desirable from time to time for the purpose of equitably
allocating among the Members the cost of maintenance and operation thereof.

(1) Perform all acts required of the Board under the Covenants, Conditions and
Restiictions.

(m) Prepare budgets and maintain a full set of books and records showing the
fmancial condition of the affairs of the Association in a manner consistent with generally
accepted accounting principles, and at no greater than annual intervals prepare an annual
fmancial report, a copy of which shall be delivered to each Member as provided in Article
XII, Section 12.11 hereof. The Board may appoint a Budget and Finance Committee as
provided in Section 10.02(c) of the Bylaws to assist in the preparation of the annual budget.

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 (n) Appoint a Nominating Committee for the nomination ofpersons to be elected
to the Board, and to prescribe rules under which said Nominating Committee is to act, all as
more particularly described in Section 7.03 of Article VII hereof.

(0) Appoint or serve as an Architectural Committee and to prescribe rules under

which said committee is to act in order to discharge its responsibilities under the Covenants,
Conditions and Restrictions.

(p) Appoint such other committees as it deems necessary, from time to time, in
cormection with the affairs of the Association, in accordance with Article X hereof, and to
prescribe the duties, powers and rules of such committees.

(q) Fill vacancies on the Board of Directors or in any committee.

(r) Open bank accounts and borrow money on behalf of the Association and to
designate the signatories to Association bank accounts.

(s) Bring and defend actions by or against one or more Members of the
Association to protect the interests ofthe Members or the Association, as such, so long as the
action is pertinent to the operation ofthe Association, and to assess the Members for the cost
of such litigation.

(t) Subject to the Covenants, Conditions and Restrictions, to enter Lots as

necessary in connection with construction, maintenance or emergency repairs for the benefit
of the Common Area or the Owners in common.

(u) To maintain and otherwise manage: (I) all easements and real property and all
facilities, improvements and landscaping thereon in which the Association holds an interest,
subject to the terms of any instrument transferring such interest to the Association, (2) all
personal property in which the Association holds an interest, subject to the terms of any
instrument transferring such interest to the Association, and (3) all property, real or personal,
which the Association is obligated to repair or maintain pursuant to the Declaration of
Covenants, Conditions and Restrictions.

(v) Provide an Owner within ten (10) days ofthe delivery of written request, with
(1) a copy ofthe Association's governing instruments; (2) a copy ofthe most recent financial
statement distributed pursuant to California Civil Code Section 1365; (3) a true written
statement from an authorized representative of the Association as to the amount of the
Association's current Regular and Special Assessments and fees, as well as any assessments
levied upon the Owner's Lot which are unpaid on the date of the statement. The statement

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 also shall include true information on late charges, interest and cost of collection which, as
of the date of the statement, are or may be made a lien upon the Owner's Lot pursuant to
California Civil Code Section 1367; (4) any change in the Association's cmrent Regular and
Special Assessments and fees which have been approved by the Board of Directors, but have
not become due and payable as ofthe date disclosure is provided pursuant to this Subsection;
and (5) a copy or a summary of any notice previously sent to the Owner pursuant to
subdivision (h) of Califoniia Civil Code Section 1363 that sets forth any alleged violation of
the governing documents that remains tmresolved at the time ofthe request. The notice shall
not be deemed a waiver ofthe Association's right to enforce the governing documents against
the Owner or the prospective purchaser ofthe separate interest with respect to any violation.
This Subsection shall not be construed to require the Association to inspect an Owner's
separate interest. The Association may charge a fee for this service, which shall not exceed
the Association's reasonable cost to prepare and reproduce the requested information.

(w) The Board shall have the duty to conduct the business of the Association in
such manner that the Association can qualify and be considered an organization exempt from
federal and state income taxes pursuant to Internal Revenue Code Section 528 and California
Revenue and Taxation Code Section 2370 l t, as amended. The Board shall cause to be timely
filed any annual election for tax-exempt status as may be required under federal or state law,
and shall undertake to cause the Association to comply with the statutes, rules and
regulations which have been or shall be adopted by federal and state agencies pertaining to
such exemption.

Section 9.03. Limitations on Powers. Without the vote or written assent of a

majority ofthe Members, the Board ofDirectors shall not take any ofthe following actions:

(a) Enter into a contract with a third party for the furnishing of goods or services
to the Common Area or the Association for a term longer than one year. This restriction
shall not apply to: (1) FHA or VA approved management contracts; (2) public utility
contracts where the rates charged for materials or services are regulated by the Public
Utilities Commission; provided, however, that the tenn of the contract does not exceed the
shortest term for which the supplier will contract at the regulated rate; (3) prepaid casualty
or liability insurance policies not to exceed three years duration; provided the policies
provide for short rate cancellation by the insured; (4) lease agreements for laundry room
fixtures and equipment not to exceed five years duration; (5) agreements for cable television
services and equipment or satellite dish television services and equipment not to exceed five
(5) years duration; or (6) agreements for sale or lease of burglar alarm and fire alarm
equipment, installation and services not to exceed five (5) years duration.

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 (b) Incur aggregate expenditures for capital improvements to the Common Area
in any fiscal year in excess of ten percent ( 10%) of the budgeted gross expenses of the
Association for that year. For purposes ofthis Section 9.03(b), capital improvements do not
include reserve expenditures for those components described in Section 12.14 of these
Bylaws, and means a new fixture or facility proposed for the Common Area.

(c) Sell during any fiscal year personal property of the Association having an
aggregate fair market value greater than five percent (5%) of the budgeted gross expenses
of the Association for that year. Sale of real property of the Association requires the
approval of two thirds (2/3rds) of the Members as more particularly provided in Section
2.0l(g) of the Declaration.

(d) Pay compensation to members ofthe Board ofDirectors for services performed
in the conduct of the Association's business; provided that Directors can be reimbursed for
reasonable travel and other expenses, verified in writing, incurred in the discharge of their
duties.

(e) Borrow money on behalf of the Association in a sum in excess of twenty

percent (20%) of the budgeted gross receipts for the current fiscal year.

Section 9.04. Due Process Requirements. Before the Board imposes any monetary
penalties (except late charges and interest for late payment of any assessment), or suspends
membership rights or Common Area use privileges against anyMember for failure to comply
with the Declaration, these Bylaws, or Association Rules, the Board must act in good faith
and must satisfy each of the following requirements:

(a) The Member is given not less than ten (10) nor more than sixty (60) days prior
notice ofthe discipline to be imposed and the reasons for the imposition ofthe discipline, and
ofthe right to request a hearing. The notice may be given by either personal delivery or first-
class mail. The notification may contain, at a minimum, the nature of the alleged violation
for which the Member may be disciplined, and a statement that the Member has a right to
attend and may address the Board at the meeting, if a meeting is requested. The Board of
Directors of the Association shall meet in executive session if requested by the Member
being disciplined.

(b) If a hearing is held, the Board shall deliver its decision in writing and the
reasons therefor to the Owner within fifteen (15) days after the hearing, by either personal
delivery or first-class mail. The disciplinary and/or corrective action and/or penalties
determined by the Board shall become effective five (5) days after delivery of the decision
and the reasons therefor to the Owner. The provisions of this Section 9.04 shall not apply

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to any monetarypenalties, suspensions ofmembership rights or CommonArea use privileges
against any Member for failure to pay Regular or Special Assessments in accordance with
the provisions of Article IV of the Covenants, Conditions and Restrictions.

(c) The Board shall adopt and distribute to each Member, by personal delivery or
first-class mail, a schedule of the monetary penalties that may be assessed. The Board of
Directors shall disuibute, in like marmer, additional schedules of monetary penalties
whenever changes to the schedule are adopted.

ARTICLE X

Contmittees

Section 10.01. Committees Generally. The Board may, by resolution, adopted by

a majority ofthe Directors then in office, designate one or more committees, each consisting
of one or more Members to serve at the pleasure of the Board, which shall have such
authority as the Board may specify, except that no committee, regardless ofBoard resolution,
may:

(a) Take any fmal action on any matter which, under the Non-Profit Corporation
Law of California, also requires approval of the Members.

(b) Fill vacancies on the Board of Directors or in any committee which has been
delegated any authority of the Board.

(c) Amend or repeal Bylaws or adopt new Bylaws.

(d) Amend or repeal any resolution ofthe Board ofDirectors which by its express
tenns is not so amendable or repealable.

(e) Appoint any other committees of the Board of Directors or the members of
those committees.

(i) Approve any transaction (1) to which the corporation is a party and one or
more Directors have a material financial interest; or (2) between the corporation and one or
more of its Directors or (3) between the corporation or any person in which one or more of
its Directors have a material financial interest.

(g) Levy monetary penalties.

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 Section 10.02. Standing Committees. Standing committees maybe established and
maintained by the Board as the Board deems appropriate, including the following:

(a) Architectural Committee. The Board may appoint or serve as an Architectural

Committee consisting of three or more Members, said committee to have the powers and
responsibilities described in Article VIII of the Covenants, Conditions and Restrictions.

(b) Nomination Committee. The Board may appoint a three person Nomination
Committee in accordance with Article VII, Section 7.03 ofthese Bylaws, which committee
shall have the powers and responsibilities described in said Section 7.03.

(c) Budget and Finance Committee. The Board may appoint four Members, one
of whom shall be the Association's Treasurer, to a Budget and Finance Committee. The
Committee shall meet a minimum of two (2) times annually. The Committee shall assist the
Treasurer in executing his or her responsibilities as described herein and shall be responsible
for developing the Association's armual budget for presentation to the membership at the
Annual Meeting. The Committee shall also monitor and report to the Board on financial and
tax developments of interest to the Association.

(d) Landscape Committee. The Landscaping Committee shall consist ofthree or

more members and shall be chaired by a member ofthe Board. The Landscaping Committee
shall periodically inspect the grotmds, make recommendations to the Board concerning
landscape modifications and improvements, and advise the Board with respect to the
performance ofthe Association’s landscape contractor. The Landscape Committee shall also
make recommendations, as it shall deem fit, for the implementation of landscape
improvements in the Properties.

Section 10.03. Executive Committee. Subject to Section 10.01 ofthis Article X, the
Board shall have the power to appoint an Executive Committee composed of two or more
members of the Board to act on its behalf during intervals between regular Board meetings.

Section 10.04. Meetings and Actions of Committees. Meetings and actions of

committees shall be governed by, and held and taken in accordance with, the provisions of
Article VIII of these Bylaws, concerning meetings of Directors, with such changes in the
context ofthose Bylaws as are necessary to substitute the committee and its members for the
Board ofDirectors and its members, except that the time for regular meetings of committees
may be determined either by resolution of the Board of Directors or by resolution of the
committee. Special meetings of committees also may be called by resolution of the Board
of Directors. Notice of special meetings of committees also shall be given to any and all
alternate Members, who shall have the right to attend all meetings ofthe committee. Minutes

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shall be kept of each meeting of any committee and shall be filed with the corporate records.
The Board of Directors may adopt rules for the government of any committee not
inconsistent with the provisions of these Bylaws.

ARTICLE XI

Officers

Section 11.01. Officers. The officers of the Association shall be a President, a

Vice-President, a Secretary and a Treasurer all ofwhom shall be members ofthe Board. The
Association may also have, at the discretion ofthe Board, one or more Assistant Secretaries,
one or more Assistant Treasurers, and such other officers as may be appointed in accordance
with the provisions of Section 11.03 following.

Section 11.02. Election of Officers. The officers of the Association, except such
officers as may be appointed in accordance with the provisions of Section l 1.03 following,
shall be chosen annually by majority vote of the Board at its first regular meeting, and each
shall hold office tmtil he or she shall resign or shall be removed or otherwise disqualified to
serve, or his or her successor shall be elected and qualified.

Section 11.03. Subordinate Officers. The Board may appoint, and may empower
the President to appoint, such other officers as the affairs of the Association may require,
each ofwhom shall hold office for such period, have such authority and perform such duties
as are provided in the Bylaws and as the Board may from time to time determine.

Section 11.04. Removal of Officers. Any officer may be removed, either with or
without cause, by the Board at any regular or special meeting, or by any officer upon whom
such power of removal may be conferred by the Board; provided, however, that no such
officer shall remove an officer chosen by the Board.

Section 11.05. Resignation of Officers. Any officer may resign at any time by
giving written notice to the Board or to the President or to the Secretary. Any such
resignation shall take effect at the date of the receipt of such notice or at any later time
specified therein; and unless otherwise specified therein, the acceptance of such resignation
shall not be necessary to make it effective. Any resignation is without prejudice to the rights,
if any, of the Association tmder any contract to which the officer is a party.

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 Section 11.06. Vacancies. A vacancy in any office because of death, resignation,
removal, disqualification or any other cause shall be filled in the manner prescribed in the
Bylaws for regular appointments to such office.

Section 11.07. President. The President shall be the chief executive officer of the
Association, and subject to the control ofthe Board, shall have general supervision, direction
and control of the affairs and officers of the Association. The President shall preside at all
meetings ofthe Board, shall see that orders and resolutions ofthe Board are carried out, shall
sign all leases, mortgages, deeds and other written instruments and shall sign all promissory
notes and shall have the general power and duties ofmanagement usually vested in the office
of president of a California nonprofit mutual benefit corporation, together with such other
powers and duties as may be prescribed by the Board or the Bylaws.

Section 11.08. Vice-President. In the event of absence, disability or refusal to act

ofthe President, the Vice-President shall perform all the duties ofthe President and when so
acting shall have all the powers of, and be subject to all the restrictions upon, the President.
The Vice-President shall have such other powers and perform such other duties as fiom time
to time may be prescribed by the Board or the Bylaws.

Section 11.09. Secretary. The Secretary shall keep or cause to be kept at the
principal office or such other place as the Board may order, the following:

(a) A book ofminutes ofall meetings ofDirectors and Members, with the time and
place ofholding same, whether regular or special, and ifspecial, how authorized, the notice
thereof given, the names of those present at Directors’ meetings, the number of Members
present in person or by proxy at Members’ meetings, the proceedings thereof and record of
the votes.

(b) Appropriate current records showing the Members ofthe Association, together
with their addresses.

(c) A copy of the Articles, Bylaws and Covenants, Conditions & Restrictions as
amended to date.

The Secretary shall give, or cause to be given, notice of all meetings of the Board
required by the Bylaws or by law to be given, and the Secretary shall keep any seal of the
Association in safe custody, and shall have such other powers and perform such other duties
as may be prescribed by the Board or by the Bylaws. The Secretary shall be responsible to
verify the filing of the registration form and statement of principal business activity as
required by Civil Code Section 1363.6.

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 Section 11.10. Treasurer. The Treasurer shall keep and maintain, or cause to be
kept and maintained, adequate and correct accotmts of the properties and business
transactions of the Association, including accounts of its assets, liabilities, receipts,
disbursements, gains, losses, capital, fund balance and other matters customarily included
in fmancial statements. The books of account shall at all reasonable times be open to
inspection by any Director or Member. The Treasurer shall deposit or cause to be deposited
all monies and other valuables in the name and to the credit of the Association with such
depositories as may be designated by the Board. The Treasurer shall disburse the fLlIldS of
the Association as may be ordered by the Board, shall render to the President and Directors,
whenever they request it, an account ofall ofsuch officer’s transactions as Treasurer and of
the financial condition of the Association, and shall have such other powers and perform
such other duties as may be prescribed by the Board or the Bylaws. Ifrequired by the Board,
the Treastuer shall give the Association a bond in the amount and with the surety or sureties
specified by the Board for faithful performance of the duties of his or her office and for
restoration to the Association of all its books, papers, vouchers, money, and other property
of every kind in the Treasurer’s possession, or under his or her control, on the death,
resignation, retirement, or removal from office of the Treasurer.

Section 11.11. Multiple Offices. The office ofSecretary and Treasurer may be held
by the same person. No person shall simultaneously hold more than one of any of the other
offices, except in the case of subordinate officer positions created pursuant to Section l 1.03
of this Article XI.

ARTICLE XII

Assessments and Finances

Section 12.01. Description ofAssessments to which Owners are Subject. Owners

of Lots within the Properties are subject to Annual and Special Assessments as more
particularly described in Article IV of the Covenants, Conditions and Restrictions.

Section 12.02. Creation ofthe Lien and Personal Obligation ofAssessments. The
creation of the lien and personal obligation for assessments are governed by Section 4.01 of
Article IV of the Covenants, Conditions and Restrictions.

Section 12.03. Purpose and Basis of Assessments. The purpose and basis of
assessments are as specified in Sections 4.02 through 4.05 of Article IV of the Covenants,
Conditions and Restrictions.

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 Section 12.04. Date of Commencement of Assessments: Due Dates. The date of
commencement and the due dates of assessments are as specified in Sections 4.02(f), 4.03(d)
and 4.04(b) of Article IV of the Covenants, Conditions and Restrictions.

Section 12.05. Effect of Non-Payment of Assessment: Remedies of the

Association. The effect ofnon-payment of assessments and the remedies ofthe Association
shall be as specified in Section 4.09 of Article IV of the Covenants, Conditions and
Restrictions.

Section 12.06. Annual Notice Concerning Assessment Collection. The

Association shall distribute the written notice described herein to each Member of the
Association during the sixty (60) day period immediately preceding the begirming of the
Association's fiscal year. The notice shall be printed in at least 12-point type. The notice
required by this Section shall read as follows:

“NOTICE ASSESSMENTS AND FORECLOSURE

This notice outlines some of the rights and responsibilities of owners of

property in common interest developments and the associations that manage
them. Please refer to the sections of the Civil Code indicated for further
infonnation. A portion of the information in this notice applies only to liens
recorded on or after January 1, 2003. You may wish to consult a lawyer ifyou
dispute an assessment.

ASSESSMENTS AND FORECLOSURE

Assessments become delinquent 15 days after they are due, unless the
governing documents provide for a longer time. The failure to pay association
assessments may result in the loss of an owner's property through foreclosure.
Foreclosure may occur either as a result of a court action, known as judicial
foreclosure or without court action, often referred to as nonjudicial foreclosure.
For liens recorded on and after January 1, 2006, an association may not use
judicial or nonjudicial foreclosure to enforce that lien if the amount of the
delinquent assessments or dues, exclusive ofany accelerated assessments, late
charges, fees, attorney's fees, interest, and costs of collection, is less than one
thousand eight hundred dollars ($1,800). For delinquent assessments or dues
in excess of one thousand eight htmdred dollars ($1,800) or more than 12
months delinquent, an association may use judicial or nonjudicial foreclosure
subject to the conditions set forth in Section 1367.4 of the Civil Code. When
using judicial or nonjudicial foreclosure, the association records alien on the

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 owner's property. The owner's property may be sold to satisfy the lien if the
amounts secured by the lien are not paid. (Sections 1366, 1367 .1 , and 1367.4
of the Civil Code)

In a judicial or nonjudicial foreclosure, the association may recover

assessments, reasonable costs of collection, reasonable attorney's fees, late
charges, and interest. The association may not use nonjudicial foreclosure to
collect fines or penalties, except for costs to repair conmion areas damaged by
a member or a member's guests, if the governing documents provide for this.
(Sections 1366 and 1367.1 of the Civil Code)

The association must comply with the requirements of Section 1367.1 of the
Civil Code when collecting delinquent assessments. If the association fails to
follow these requirements, it may not record a lien on the owner's property
until it has satisfied those requirements. Any additional costs that result from
satisfying the requirements are the responsibility of the association. (Section
1367.1 of the Civil Code)

At least 30 days prior to recording a lien on an owner's separate interest, the

association must provide the owner of record with certain documents by
certified mail, including a description of its collection and lien enforcement
procedures and the method of calculating the amount. It must also provide an
itemized statement of the charges owed by the owner. An owner has a right to
review the association's records to verify the debt. (Section 1367.1 ofthe Civil
Code)

If a lien is recorded against an owner's property in error, the person who

recorded the lien is required to record a lien release within 21 days, and to
provide an owner certain documents in this regard. (Section 1367.1 ofthe Civil
Code)

The collection practices of the association may be governed by state and

federal laws regarding fair debt collection. Penalties can be imposed for debt
collection practices that violate these laws.

PAYMENTS

When an owner makes a payment, he or she may request a receipt, and the
association is required to provide it. On the receipt, the association must
indicate the date of payment and the person who received it. The association

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 must infonn owners of a mailing address for ovemight payments. (Section
1367.1 of the Civil Code)

An owner may dispute an assessment debt by submitting a written request for

dispute resolution to the association as set forth in Article 5 (commencing with
Section 1368.810) of Chapter 4 of Title 6 of Division 2 of the Civil Code. In
addition, an association may not initiate a foreclosure without participating in
alternative dispute resolution with a neutral third party as set forth in Article
2 (commencing with Section 1369.510) of Chapter 7 of Title 6 of Division 2
of the Civil Code, if so requested by the owner. Binding arbitration shall not
be available if the association intends to initiate a judicial foreclosure.

An owner is not liable for charges, interest, and costs of collection, if it is

established that the assessment was paid properly on time. (Section 1367.1 of
the Civil Code)

MEETINGS AND PAYMENT PLANS

An owner of a separate interest that is not a timeshare may request the

association to consider a payment plan to satisfy a delinquent assessment. The
association must inform owners of the standards for payment plans, if any
exist. (Section 1367.1 of the Civil Code)

The board of directors must meet with an owner who makes a proper written
request for a meeting to discuss a payment plan when the owner has received
a notice of a delinquent assessment. These payment plans must confonn with
the payment plan standards ofthe association, ifthey exist. (Section 1367.1 of
the Civil Code)”

The notice specified above is required pursuant to Civil Code Section 1365.1. In the
event Civil Code Section 1365.1 is amended, the provisions of this Section 12.06 shall be
deemed amended to confonn to amendments to that statute or to any successor statute
thereto.

Section 12.07. Notice Regarding Secondary Addresses. The Association shall

notify Owners of their right to submit secondary addresses to the Association, at the time the
Association issues the pro fonna operating budget pursuant to Section 1365. The Owner's
request shall be in writing and shall be mailed to the Association in a manner that shall
indicate the Association has received it. The Owner may identify or change a secondary
address at any time, provided that, if a secondary address is identified or changed during the

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collection process, the Association shall only be required to send notices to the indicated
secondary address from the point the Association receives the request.

Section 12.08. Subordination of Lien to Mortgages. The lien of the assessments

shall be subordinated to the lien or charge of any fn'st mortgage of record as more
particularly described in Section 4.11 of Article IV of the Covenants, Conditions and
Restrictions.

Section 12.09. Checks. Except as provided in Section 12.13, all checks or demands
for money and notes ofthe Association shall be signed by the President and Treasurer, or by
such other officers or such other persons as the Board of Directors may from time to time
designate, but in no event less than two (2) persons.

Section 12.10. Association Accounts. The Board shall maintain a deposit account
and any other accounts it shall deem necessary to carry out its purposes, including reserve
accounts as more particularly set forth in Section 4.08 of Article IV of the Covenants,
Conditions and Restrictions.

Section 12.11. Budgets and Financial Statements. Financial statements for the
Association shall be regularly prepared and copies thereof shall be distributed to each
Member of the Association as follows:

(a) A pro forma operating budget for each fiscal year shall be distributed to
Members not less than thirty (30) nor more than ninety (90) days before the beginning ofthe
fiscal year. The pro forma operating statement shall include all of the following:

(1) The estimated revenue and expenses on an accrual basis.

(2) A summary of the Association's reserves based upon the most recent
review or study conducted pursuant to California Civil Code Section
1365.5 (or any successor statute thereto), based only on assets held in
cash or cash equivalents, which shall be printed in at least 10-point
boldface type and include all of the following:

(i) The current estimated replacement cost, estimated remaining

life, and estimated useful life of each major component;

(ii) As of the end ofthe fiscal year for which this study is prepared:

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 (A) The current estimate of the amount of cash reserves
necessary to repair, replace, restore or maintain the
major components.

(B) The current amount of accumulated cash reserves

actually set aside to repair, replace, restore or maintain
major components.

(iii) The percentage that the amount determined for purposes of

clause (B) of Subsection (ii) is of the amount determined for
ptuposes of clause (A) of Subsection (ii).

The current deficiency in reserve funding expressed on a per unit basis.

The figure shall be calculated by subtracting the amount determined for
purposes ofclause (B) ofsubparagraph (ii) from the amount determined
for purposes of clause (A) of subparagraph (ii) and then dividing the
result by ninety (90).

Whether the Board of Directors has determined to defer or not

undertake repairs or replacement of any major component with a
remaining life of thirty (30) years or less, including a justification for
the deferral or decision not to tmdertake the repairs or replacement.

A statement as to whether the Board ofDirectors ofthe Association has

determined or anticipates that the levy of one or more special
assessments will be required to repair, replace, or restore any major
component or to provide adequate reserves therefor.

The mechanism or mechanisms by which the Board of Directors will

fimd reserves to repair or replace major components, including
assessments, borrowing, use of other assets, deferral of selected
replacement or repairs, or alternative mechanisms.

Whether the Association has any outstanding loans with an original

term of more than one year, including the payee, interest rate, amount
outstanding, annual payment, and when the loan is scheduled to be
retired.

A general statement admessing the procedures used for the calculation

and establishment of those reserves to defray the future repair,

Second Restated Bylaws Sharon Oaks HOA Page 43 of 63

 replacement, or additions to those major components that the
Association is obligated to maintain. The report shall include, but need
not be limited to, reserve calculations made using the formula described
in Paragraph (4) of Subdivision (b) ofCivil Code Section l365.2.5, and
may not assrune a rate of rettun on cash reserves in excess of two
percent (2%) above the discount rate published by the Federal Reserve
Bank of San Francisco at the time the calculation was made.

Cormnencing January 1, 2009, a summary of the reserve funding plan

adopted by the Board of Directors, as specified in Civil Code Section
1365.2.5. The summary shall include notice to Members that the full
reserve study plan is available upon request, and the Association shall
provide the full reserve plan to any Member upon request.

For the purposes of preparing a summary pursuant to this Section

l2.ll(a)(l0):

(i) “Estimated remaining useful life” means the time reasonably

calculated to remain before a major component will require
replacement.

(ii) “Major component” has the meaning used in Civil Code Section
1365.5. Components with an estimated remaining useful life of
more than thirty (30) years may be included in a study as a
capital asset or disregarded from the reserve calculation, so long
as the decision is revealed in the reserve study report and
reported in the Assessment and Reserve Ftmding Disclosure
Stumnary.

(iii) The form set out in Civil Code Section 1365.2.5(a) shall
accompany each pro forma operating budget that is delivered
pursuant to this Section l2.ll(a). The form may be
supplemented or modified to clarify the information delivered,
so long as the minimum information set out in Civil Code
Section l365.2.5(a) is provided.

(iv) For the purpose of the report and summary, the amount of
reserves needed to be accumulated for a component at a given
time shall be computed as the current cost of replacement or
repair multiplied by the number of years the component has

Second Restated Bylaws Sharon Oaks HOA Page 44 of 63

 been in service divided by the useful life of the component.
This shall not be construed to require the Board to fund reserves
in accordance with this calculation.

(b) Within one hundred twenty (120) days after the close of the fiscal year, an
annual report consisting of:

(1) A balance sheet as of the end of the fiscal year.

(2) An operating (income) statement and a statement of cash flows for the
fiscal year.

(3) A statement of changes in financial position for the fiscal year.

(4) A statement of the place where the names and addresses of the current
Members are located.

(5) Any information required to be reported under Section 8322 of the

Corporations Code with respect to certain transactions in excess of
Fifty Thousand Dollars ($50,000.00) per year between the Association
and a Director or officer of the Association and indemnifications and
advances to officers or Directors in excess of Ten Thousand Dollars
($10,000.00) per year or such other transactions as may be required to
be disclosed by such statute or any successor statute.

A review of the fmancial statement shall be prepared by an independent accountant

for any fiscal year in which the gross income of the Association exceeds Seventy-Five
Thousand Dollars ($75,000.00), and shall be prepared in accordance with generally accepted
accounting principles and standards as established by the California State Board of
Accountancy. If the annual report is not prepared by an independent accountant, it shall be
accompanied by the certificate of an authorized officer ofthe corporation that the statements
were prepared without audit from the books and records of the corporation.

(c) In lieu ofthe distribution ofthe pro forma operating budget required by Section
12.1 1(a) of this Article XII, the Board may elect to distribute a summary ofthe budget to all
Members with a written notice that the pro forma operating budget is available at the
business office ofthe Association or at another suitable location within the boundaries ofthe
development and that copies will be provided upon request and at the expense of the
Association. If any Member requests a copy of the pro fonna operating budget required by
said Section 12.1 1(a) to be mailed to the Member, the Association shall provide the copy to

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the Member by first-class United States mail at the expense ofthe Association and delivered
within five (5) days. The written notice that is distributed to each of the Association
Members shall be in at least 10-point bold type on the front page of the summary of the
budget.

(d) A statement as to the Association's policies and practices in enforcing the lien
rights or other legal remedies for the default in the payment of its assessments against its
Members shall be annually delivered to each Member of the Association not less than thirty
(30) days nor more than ninety (90) days prior to the beginning of the fiscal year.

(e) The Association shall distribute the Written notice conceming assessments and
foreclosure prescribed by California Civil Code Section 1365.1 to each Member of the
Association during the sixty (60) day period immediately preceding the beginning of the
Association’s fiscal year. The notice shall be printed in at least 12-point type.

Section 12.12. Fiscal Review. The Board of Directors shall do all of the following:

(a) Review a current reconciliation of the Association's operating accounts on at

least a quarterly basis.

(b) Review a current reconciliation ofthe Association's reserve accounts on at least

a quarterly basis.

(c) Review the current year's actual reserve revenues and expenses compared to
the current year's budget, on at least a quarterly basis.

(d) Review the latest account statements prepared by the financial institution where
the Association has its operating and reserve accounts.

(e) Review an income and expense statement for the Association's operating and
reserve accounts on at least a quarterly basis.

Section 12.13. Withdrawal From Reserves. The signatures of at least two (2)
persons, who shall be members ofthe Board, shall be reqmed for the withdrawal ofmonies
from the Association's reserve accounts.

Section 12.14. Limitation on Reserve Expenditures. The Board of Directors shall

not expend funds designated as reserve funds for any purpose other than the repair,
restoration, replacement, or maintenance of, or litigation involving the repair, restoration,
replacement, or maintenance of, major components which the Association is obligated to

Second Restated Bylaws-Sharon Oaks HOA Page 46 of 63

 repair, restore, replace, or maintain and for which the reserve fund was established.
However, the Board may authorize the temporary transfer of money from a reserve fund to
the Association's general operating fund to meet short-tenn cash-flow requirements or other
expenses, if the Board has provided notice of the intent to consider the transfer in a notice
ofmeeting, which shall be provided as specified in Civil Code Section 1363.05. The .notice
shall include the ‘reasons the transfer is needed, some of the options for repayment, and
whether a Special Assessment may be considered. If the Board authorizes the transfer, the
Board shall issue a written finding, provided the Board has made a written finding, recorded
in the Board's minutes, explaining the reasons that the transfer is needed, and describing
when and how the money will be repaid to the reserve fund. The transferred funds shall be
restored to the reserve fund within one (1) year of the date of the initial transfer, except that
the Board may, after giving the same notice required for considering a transfer, and, upon
making a finding supported by documentation that a temporary delay would be in the best
interests of the Association, temporarily delay the restoration. The Board shall exercise
prudent fiscal management in maintaining the integrity of the reserve account, and shall, if
necessary, levy a Special Assessment to recover the full amount of the expended funds
within the time limits required by this Section. The Board may, at its discretion, extend the
date the payment of the Special Assessment is due. Any extension shall not prevent the
Board from pursuing any legal remedy to enforce the collection of an unpaid Special
Assessment.

When the decision is made to use reserve funds or to temporarily transfer money from
the reserve fund to pay for litigation, the Association shall notify the Members of the
Association ofthat decision in the next available mailing to all Members pursuant to Section
5016 of the Corporations Code, and of the availability of an accounting of those expenses.
The Association shall make an accounting of expenses related to the litigation on at least a
quarterly basis. The accounting shall be made available for inspection by Members of the
Association at the Association's office.

Section 12.15. Reserve Study Requirements. At least once every three years the
Board of Directors shall cause to be conducted a reasonably competent and diligent visual
inspection of the accessible areas of the major components which the Association is
obligated to repair, replace, restore, or maintain as part of a study of the reserve accotmt
requirements ifthe current replacement value ofthe major components is equal to or greater
than one-halfofthe gross budget ofthe Association which excludes the Association’s reserve
account for that period. The Board shall review this study annually and shall consider and
implement necessary adjustments to the Board's analysis ofthe reserve account requirements
as a result of that review.

Second Restated Bylaws-Sharon Oaks HOA Page 47 of 63

 The study required by this Section shall at a minimum include:

(a) Identification of the major components which the Association is obligated to

repair, replace, restore, or maintain which, as of the date of the study, have a remaining
useful life of less than thirty (30) years.

(b) Identification of the probable remaining useful life of the components

identified in Subsection (a) of this Section l2.l5, as of the date of the study.

(c) An estimate of the cost of repair, replacement, restoration, or maintenance of

each major component identified in Subsection (a) of this Section 12.15.

(d) An estimate of the total annual contribution necessary to defray the cost to
repair, replace, restore, or maintain the components identified in Subsection (a) dining and
at the end oftheir l.1S6fl.ll life, after subtracting total reserve funds as of the date ofthe study.

(e) A reserve ftmding plan that indicates how the Association plans to ftmd the
contribution identified in subparagraph (d) to meet the Association's obligation for the repair
and replacement ofall major components with an expected remaining life ofthirty (30) years
or less, not including those components that the Board has determined will not be replaced
or repaired. The plan shall include a schedule of the date and amount of any change in
regular or special assessments that would be needed to sufficiently fund the reserve fimding
plan. The plan shall be adopted by the Board of Directors at an open meeting before the
membership of the Association as described in Section 1363.05. If the Board of Directors
determines that an assessment increase is necessary to fund the reserve funding plan, any
increase shall be approved in a separate action of the Board that is consistent with the
procedure described in Civil Code Section 1366.

As used in this Section 12.15, “reserve accounts” means both (1) monies that the
Board of Directors has identified for use to defray the future repair or replacement of, or
additions to, those major components which the Association is obligated to maintain; and (2)
the funds received and not yet expended or disposed fi'om either a compensatory damage
award or settlement to the Association from any person or entity for injuries to property, real
or personal, arising from any construction or design defects. These ftmds shall be separately
itemized fi'om funds described in Subsection (1) above. The term “reserve accotmt
requirements” means the estimated funds which the Board of Directors has determined are
required to be available at a specified point in time to repair, replace, or restore those major
components which the Association is obligated to maintain.

Second Restated Bylaws-Sharon Oaks HOA Page 48 of 63

 Section 12.16. Secondary Address. A member of an association may provide
written notice by facsimile transmission or United States mail to the Association of a
secondary address. If a secondary address is provided, the Association shall send any and all
correspondence and legal notices required pursuant to this Article XII to both the primary
and the secondary address.

ARTICLE XIII

Indemnification and Insurance

Section 13.01. Indemnification Right and Power.

(a) The Association shall indemnify any agent ofthe Association who was a party
to any proceeding by reason of the fact that the person is or was an agent of the Association
against expenses actually and reasonably incurred in any proceeding to the extent that the
agent was successful on the merits in defense of the proceeding or in defense of any claim,
issue, or matter therein. Expenses shall include any attorney's fees and any other expenses
of establishing a right to indemnification.

(b) The Association may indemnify any agent of the Association who was or is a
party or is threatened to be made a party to any proceeding by reason of the fact that such
person is or was an agent of the Association, against expenses actually and reasonably
incurred in connection with such proceeding provided the approval requirements described
in Section 13.02 of these Bylaws have been satisfied.

(c) For purposes of Sections 13.01-13.05 ofthese Bylaws, the term “agent” means
any present or former Director, officer, employee, or other agent ofthe association, the term
“proceeding” means any threatened, pending or completed action or proceeding, whether
civil, criminal, administrative or investigative, and the term “expenses” includes judgments,
fines, or settlements occurring in any proceeding other than a proceeding brought by or on
behalf of the Association.

Section 13.02. Indemnification Approval.

(a) Unless indemnification is required as provided in Section 13.01 of these

Bylaws, indemnification shall be made only if authorized in the specific case on a
determination that indemnification is proper inthe circtunstances because the agent satisfied
the appropriate standard of care described in Section 13.03 of these Bylaws. The
determination must be made by one of the following methods:

Second Restated Bylaws-Sharon Oaks HOA Page 49 of 63

 (1) A majority vote of a quorum of the Board consisting of Directors who
are not patties to the proceeding.

(2) The affirmative vote of a majority ofthe Voting Power ofthe Members
entitled to vote at a duly held Members’ meeting in which a quorum
was present, or the approval by written ballot under the procedures
described in Section 4.06 of these Bylaws, provided that if the agent to
be indemnified is a Member, the agent shall not be entitled to vote.

(3) The court in which such proceeding is or was pending on application

made by the Association or the agent or the attorney or other person
rendering services in connection with the defense, whether or not the
application is opposed by the Association.

(b) Notwithstanding the foregoing, any indemnification in any proceeding brought

by or on behalf ofthe Association shall be subject to the restrictions contained in California
Corporation Code Section 7237(0).

Section 13.03. Standard of Care. In any proceeding brought by or on behalf of the

Association, the applicable standard of care shall require that the agent acted in good faith,
in a maimer the agent believed to be in the best interests ofthe Association and with the care,
including reasonable inquiry, that an ordinarily prudent person in like position would use
under similar circumstances. In all other proceedings, the agent must have acted in good
faith, in a manner the agent believed to be in the best interests of the Association and, in the
case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was
unlawful.

Section 13.04. Advancement of Expenses. On approval by the Board, expenses

incurred in defending any proceeding may be advanced by the Association prior to the final
disposition of the proceeding, provided the Association receives an undertaking by or on
behalf ofthe agent that the advances will be repaid unless it is ultimately determined that the
agent was entitled to indemnification as required or authorized by these Bylaws.

Section 13.05. Insurance. The Association shall have the power to purchase and
maintain insurance on behalf of its agents against any liability asserted against or incurred
by any agent in such capacity or arising out of the agent's status as such, whether or not the
Association would have the power to indemnify the agent against such liability under Section
13.01-13.04 of these Bylaws.

Second Restated Bylaws-Sharon Oaks HOA Page 50 of 63

 Section 13.06. Officer and Director Liability.

(a) Until Section 1365.7 of the California Civil Code is amended to provide
otherwise, any person who suffers injury, including, but not limited to, bodily injury,
emotional distress, wrongful death, or property damage or loss as a result ofthe tortious act
or omission of a volunteer officer or volunteer Director of the Association shall not recover
damages from a voltmteer officer or volunteer Director ifall ofthe following criteria are met:

(i) The act or omission was performed within the scope of the officer's or
Director's Association duties.

(ii) The act or omission was performed in good faith.

(iii) The act or omission was not willful, wanton, or grossly negligent.

(iv) The Association maintained and had in effect at the time the act or
omission occurred and at the time a claim is made one or more policies
ofinsurance which shall include coverage for (1) general liability ofthe
Association and (2) individual liability of officers and Directors ofthe
Association for negligent acts or omissions in that capacity; provided,
that both types of coverage are in the minimum amount of Five
Hundred Thousand Dollars ($500,000). However, in no event shall the
Association maintain lower limits of insurance than are provided in
Article XI, Sections 11.01 and 1 1.09 ofthe Covenants, Conditions and
Restrictions.

(b) The payment of actual expenses inctured by a Director or officer in the

execution of the duties of that position does not affect the Director's or officer's status as a
volunteer within the meaning of this Section.

(c) Nothing in this Section shall be construed to limit the liability of the
Association for its negligent act or omission or for any negligent act or omission ofan officer
or Director of the Association.

(d) This Section shall only apply to a volunteer officer or Director who is a Tenant
ofa separate interest in the Properties or is an Owner ofnot more than two separate interests
in the Properties.

Second Restated Bylaws-Sharon Oaks HOA Page 51 of 63

 ARTICLE XIV

Miscellaneous

Section 14.01. Records. The Association shall maintain the following records:

(a) Adequate and correct books and records of accoimt.

(b) Written minutes of the proceedings of its Members, Board and committees of
the Board.

(c) A record of its Members, giving their names, addresses and voting rights.

(d) The Association shall keep at its principal office the original or a copy of the
CC&Rs, the Articles, these Bylaws, and the Association Rules as amended to
date.

Section 14.02. Inspection of Books and Records.

(a) For the purposes of this Section 14.02, the following definitions shall apply:

(1) “Association records” means all of the following:

(A) Any financial document required to be provided to a Member in

Civil Code Section 1365.

(B) Any financial document or statement required to be provided in

Civil Code Section 1368.

(C) Interim unaudited financial statements, periodic or as compiled,

containing any of the following:

(i) Balance sheet.

(ii) Income and expense statement.

(iii) Budget comparison.

Second Restated Bylaws-Sharon Oaks HOA Page 52 of 63

 (iv) General ledger. A “general ledger” is a report that shows
all transactions that occurred in the Association account
over a specified period of time.

The records described in this Subsection (C) shall be prepared

in accordance with generally accepted accounting principles.

Executed contracts not otherwise privileged under law.

Written Board approval of vendor or contractor proposals or

invoices.

State and federal tax returns.

Reserve account balances and records of payments made from

reserve accounts.

Agendas and minutes ofmeetings of the Members, the Board of

Directors and any committees appointed by the Board of
Directors; excluding, however, agendas, minutes, and other
information from executive sessions of the Board of Directors
as described in Civil Code Section 1363.05.

(i) Membership lists, including name, property address, and

mailing address, if the conditions set forth in Subsection
(ii) are met and except as otherwise provided in
Subsection (iii).

(ii) The Member requesting the list shall state the purpose for
which the list is requested which purpose shall be
reasonably related to the requester's interest as a
Member. If the Association reasonably believes that the
information in the list will be used for another purpose,
it may deny the Member access to the list. If the request
is denied, in any subsequent action brought by the
Member under Civil Code Section 1365.2, the
Association shall have the burden to prove that the
Member would have allowed use of the information for
purposes unrelated to his or her interest as a Member.

Second Restated Bylaws Sharon Oaks HOA Page 53 of 63

 (iii) A Member ofthe Association may opt out ofthe sharing
ofhis or her name, property address, and mailing address
by notifying the Association in writing that he or she
prefers to be contacted via the alternative process
described in subdivision (c) of Section 8330 of the
Corporations Code. This opt-out shall remain in effect
until changed by the Member.

(J) Check registers.

“Enhanced Association records” means invoices, receipts and canceled

checks for payments made by the Association, purchase orders
approved by flie Association, credit card statements for credit cards
issued in the name ofthe Association, statements for services rendered,
and reimbursement requests submitted to the Association, provided that
the person submitting the reimbursement request shall be solely
responsible for removing all personal identification information from
the request.

The Association shall make available Association records and enhanced

Association records for the time periods and within the time flames
provided in Subsections (g) and (h) for inspection and copying by a
Member ofthe Association, or the Member's designated representative.
The Association may bill the requesting Member for the direct and
actual cost of copying requested documents. The Association shall
inform the Member ofthe amotmt ofthe copying costs before copying
the requested documents.

A Member of the Association may designate another person to inspect

and copy the specified Association records on the Member's behalf.
The Member shall make this designation in Writing.

The Association shall make the specified Association records available

for inspection and copying in the Association's business office within
the common interest development.

If the Association does not have a business office within the

development, the Association shall make the specified Association
records available for inspection and copying at a place that the
requesting Member and the Association agree upon.

Second Restated Bylaws Sharon Oaks HOA Page 54 of 63

 If the Association and the requesting Member cannot agree upon a
place for inspection and copying pursuant to Subsection (c)(2), or ifthe
requesting Member submits a written request directly to the Association
for copies ofspecifically identified records, the Association may satisfy
the requirement to make the Association records available for
inspection and copying by mailing copies of the specifically identified
records to the Member by first-class mail within the time frames set
forth in subdivision (j).

The Association may bill the requesting Member for the direct and
actual cost of copying and mailing requested docmnents. The
Association shall inform the Member ofthe amount ofthe copying and
mailing costs, and the Member shall agree to pay those costs, before
copying and sending the requested documents.

In addition to the direct and actual costs of copying and mailing, the
Association may bill the requesting Member an amount not in excess
of ten dollars ($10) per hour, and not to exceed two hundred dollars
($200) total per written request, for the time actually and reasonably
involved in redacting the enhanced Association records as provided in
Section (2) of Subsection (a).

The Association shall inform the Member ofthe estimated costs, and the Member shall agree
to pay those costs, before retrieving the requested documents.

(d) (1) Except as provided in Subsection (d)(2), the Association may withhold
or redact information from the Association records for any of the
following reasons:

(A) The release of the information is reasonably likely to lead to

identity theft. For the pU1‘pOS€S of this Section, “identity theft”
means the unauthorized use of another person's personal
identifying information to obtain credit, goods, services, money,
or property. Examples of information that may be withheld or
redacted pursuant to this Section include bank account numbers
of Members or vendors, social security or tax identification
numbers, and check, stock, and credit card numbers.

(B) The release of the information is reasonably likely to lead to

fraud in connection with the Association.

Second Restated Bylaws-Sharon Oaks HOA Page 55 of 63

 (C) The information is privileged under law. Examples include
documents subject to attomey-client privilege or relating to
litigation in which the Association is or may become involved,
and confidential settlement agreements.

(D) The release of the infonnation is reasonably likely to

compromise the privacy of an individual Member of the
Association.

(E) The information contains any of the following:

(i) Records of a-la-carte goods or services provided to

individual Members of the Association for which the
Association received monetary consideration other than
assessments.

(ii) Records of disciplinary actions, collection activities, or

payment plans ofhomeowners other than the homeowner
requesting the records.

(iii) Any person's personal identification information,

including, without limitation, social sectuity number, tax
identification number, driver's license number, credit
card account numbers, bank account number, and bank
routing nmnber.

(iv) Agendas, minutes, and other information from executive

sessions of the Board of Directors as described in Civil
Code Section 1363.05, except for executed contracts not
otherwise privileged. Privileged contracts shall not
include contracts for maintenance, management, or legal
services.

(v) P61'SOIl1'16l records other than the payroll records required

to be provided under Subsection (d)(2).

(vi) Interior architectural plans, including security features,

for individual homes.

Second Restated Bylaws-Sharon Oaks HOA Page 56 of 63

 (2) Except as provided by the attomey-client privilege, the Association
may not withhold or redact information concerning the compensation
paid to employees, vendors, or contractors. Compensation information
for individual employees shall be set forth byjob classification or title,
not by the employee's name, social security ntunber, or other personal
information.

(3) No Association, officer, Director, employee, agent or volunteer of an

Association shall be liable for damages to a Member ofthe Association
as the result of identity theft or other breach of privacy because of the
failure to withhold or redact that Member's information under this
subdivision unless the failure to withhold or redact the information was
intentional, willfiil, or negligent.

(4) If requested by the requesting homeowner, an Association that denies

or redacts records shall provide a written explanation specifying the
legal basis for Withholding or redacting the requested records.

(e) (1) The Association records, and any information from them, may not be
sold, used for a commercial purpose, or used for any other purpose not
reasonably related to a Member's interest as a Member. An Association
may bring an action against any person who violates this Section for
injtmctive relief and for actual damages to the Association caused by
the violation.

(2) This Section may not be construed to limit the right of the Association
to damages for misuse of information obtained from the Association
records pursuant to this Section or to limit the right of an Association
to injunctive relief to stop the misuse of this information.

(3) The Association shall be entitled to recover reasonable costs and

expenses, including reasonable attorney's fees, in a successful action to
enforce its rights tmder this Section.

(1) Requesting parties shall have the option of receiving specifically identified
records by electronic transmission or machine-readable storage media as long as those
records can be transmitted in a redacted format that does not allow the records to be altered.
The cost of duplication shall be limited to the direct cost of producing the copy of a record
in that electronic fonnat.

Second Restated Bylaws-Sharon Oaks HOA Page 57 of 63

 (g) The time periods for which specified records shall be provided are as follows:

(1) Association records shall be made available for the current fiscal year
and for each of the previous two fiscal years.

(2) Minutes of Member and Board meetings shall be permanently made

available. If a committee has decision making authority, minutes ofthe
meetings of that committee shall be made available commencing
January 1, 2007, and shall thereafter be pennanently made available.

(h) The time frames in which access to specified records shall be provided to a
requesting Member is as follows:

(l) Association records prepared dming the current fiscal year, within ten
(10) business days following the Association's receipt of the request.

(2) Association records prepared during the previous two fiscal years,
within thirty (30) calendar days following the Association's receipt of
the request.

(3) Any record or statement available pursuant to Civil Code Section 1365
or Civil Code 1368, within the time frame specified therein.

(4) Minutes of Member and Board meetings, within the time frame
specified in subdivision (d) of Civil Code Section 1363.05.

(5) Minutes ofmeetings of committees with decision making authority for

meetings commencing on or after January 1, 2007, within fifteen (15)
calendar days following approval.

(6) Membership list, within the time frame specified in Section 8330 of the
Corporations Code.

Section 14.03. Association Manager. The Board may employ the services of an
Association Manager to manage the affairs of the Association and, to the extent not
inconsistent with the laws of the State of California, and upon such conditions as are
otherwise deemed advisable by the Board, may delegate to the Association Manager any of
its day-to-day management and maintenance duties and powers under these Bylaws and the
Covenants, Conditions and Restrictions, provided that the Association Manager shall at all
times remain subject to the general control of the Board.

Second Restated Bylaws-Sharon Oaks HOA Page 58 of 63

 Section 14.04. Corporate Seal. The Association may have a seal in circular form
having within its circumference the words Sharon Oaks Association, State of California.

Section 14.05. Amendment or Repeal of Bylaws. Except as otherwise expressly

provided herein, these Bylaws may only be amended or repealed, and new Bylaws adopted
by the secret vote by written ballot pursuant to Section 7.04 of a majority of the total
membership of the Association; provided that if any provision of these Bylaws requires the
vote of a larger proportion or all of the Members, such provisions may not be altered,
amended or repealed except by such greater vote, unless otherwise specifically provided
herein.

Section 14.06. Notice Requirement. Except as otherwise specifically provided in

these Bylaws, any notice or other document permitted or required to be delivered as provided
herein may be delivered either personally or by mail. If delivery is made by mail, it shall be
deemed to have been delivered seventy-two (72) hours after a copy of same has been
deposited in the United States mail, postage prepaid, addressed as follows: if to the
Association or the Board, c/o of the management agent of the Association, or such other
address as the Board of Directors may from time to time designate in a writing distributed
to the Members; if to a Director, at the address fiom time to time given by such Director to
the Secretary for the pmpose of service of such notice; if to a Member, at the address from
time to time given by such Member to the Secretary for the purpose ofservice of such notice,
or, if no such address has been so given, to any Townhouse within the Properties owned by
such Member.

Section 14.07. Construction and Definitions. Unless the context requires otherwise
or a term is specifically defmed herein, the general provisions, rules of construction, and
definitions in the California Non-Profit Corporation Law shall govem the construction of
these Bylaws. Without limiting the generality of the above, the masculine gender includes
the feminine and neuter, and singular number includes the plural and the plural number
includes the singular. All captions or titles used in these Bylaws are intended solely for
convenience of reference and shall not affect the interpretation or application of that which
is set_forth in any of the terms or provisions of these Bylaws.

Section 14.08. Fiscal Year. The fiscal year of the Association shall be the calendar
year. However, the fiscal year of the Association is subject to change from time to time as
the Board shall determine by resolution, and without the necessity of amending these
Bylaws.

Section 14.09. Conflicts Between Documents. The terms and provisions set forth
in these Bylaws are not exclusive as Owners also shall be subject to the terms and provisions

Second Restated Bylaws-Sharon Oaks HOA Page 59 of 63

of other Association management documents including the Articles of Incorporation,
Declaration ofCovenants, Conditions and Restrictions, Association Rules, and Architectural
Standards. In the event of a conflict between any provisions of any of said Association
management documents with the provisions of any other Association management
documents, the order of superiority of such documents shall be (l) Articles ofIncorporation,
(2) Declaration of Covenants, Conditions and Restrictions, (3) Bylaws, (4) Architectural
Standards, and (5) Association Rules, and the provisions of any such documents shall be
superseded by the provisions ofthe document shown above to be superior to such document
to the extent of such conflict.
A
In Witn ss Whereof, we have hereunto subscribed our names this day
of lglllttnlni/‘ , zoos.
Sharon Oaks Association

By:
resr ent

By; >, IQI/r_—>'v<-¢-L.va_s-—

Second Restated Bylaws-Sharon Oaks HOA Page 60 of 63

 Certificate of Secretary

I, the undersigned, the duly elected and acting Secretary of Sharon Oaks Association,
do hereby certify:

That the within and foregoing Bylaws were adopted by secret writteniballot of the
Me bers o r sai‘<1 A ssocra
' 11 on as the B y1 aws o fsaid Association on the \‘i5 day of
gttykfg , 2008, and that the above foregoing Bylaws consisting of 61 pages do
now constitute the Bylaws of said Association.

I Witness Whereof I have hereunto subscribed my name this day of

Ntvtfinlloef ,2oos. ’

Secretary

o:\ua:rs\l:a|l1y\gnvim1\.sh.nron oaks 2“ rsmd byl:w:\July29. 2008

Second Restated Bylaws-Sharon Oaks HOA Page 61 of 63

 Index

Assessments . . . . . . . . . 2-4, 6, 10, 11, 16-18, 22, 26, 30-32, 34, 38-40, 42, 43, 46, 48, 56
Board . . . . . . . . . . . . . . . . .. 1-5, 7-9, 12, 13, 15-18, 20-38, 41-48, 50, 52, 53, 56, 58,59
Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,30, 35, 41, 42, 44-47, 52
Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 30, 31,34, 35, 52, 53, 58
Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 4, 15, 16, 18, 23, 26, 29-34
Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6, 11, 14, 15, 25, 28
Directors . . . . . . . . . . . . 1, 2, 4-6, 8, 9, 12, 16-18, 20-29, 31-38, 41-48, 50, 51, 53, 56, 59
Executive Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-28, 33
Guests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 29,40
Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 16, 29, 33
Household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 16
Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 49, 50
Indemnifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 38, 47, 52, 54, 55
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 30, 32, 49-51
Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 30, 32, 50, 51
Lots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4,30,31,38
Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 5, 26, 29, 30, 58
Meetings . . . . . . . . . . . . . . . . . . . . . . . . . 6-9, 12, 13, 22, 23, 25, 26, 29, 35, 37, 41, 53, 58
Member . . . . . . . . . . . . . 2-7, 9-20, 23, 24, 26-30, 33-35, 38-40, 42, 44-46, 49, 50, 52-59
Members . . . . . . . . . . . . . . . . . . . . 2-4, 6-13, 15-37, 42, 44-47, 50, 52, 53, 55, 56, 59, 61
Membership . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8, 10-15, 24, 27,28, 33-35, 48, 53, 58, 59
Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 20, 22, 25, 2'7-29, 35, 37, 47, 52, 53, 56, 58
Notice . . . . . . . . . . . . 3-5, 7-13, 15-17, 21-26, 28, 29, 32, 33, 35-37, 39, 41, 44-47, 49, 59
Noticed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 13, 20, 22, 28
Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23, 28-30, 36, 37, 42, 45, 51
Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1,3,11,29,31,38, 39, 41,59
Person . . . . .. 2-5, 10, 11, 13, 14, 16, 18, 20, 23, 27, 29, 34, 35, 37, 38, 40, 48-51, 54, 57
Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 29, 31, 32, 35, 37, 38, 58
President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 9, 21, 23, 25, 36-38, 42, 60
Proxies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 18
Proxy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4-6, 10, 11, 14, 15, 19, 37
Quorum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-11, 22, 26-28, 50
Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 9, 11-14, 23, 25, 37, 40, 42, 52, 57, 58
Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 11, 25, 28, 30, 36, 37, 39, 40, 45, 52-S8
Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, 19, 23, 24, 30, 35, 44, 45, 53
Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33, 42-44, 46-48, 53

Second Restated Bylaws-Sharon Oaks HOA Page 62 of 63

 Reserves . . . . . . ... . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42-46
Rights . . . . . . . . ... . . . . . . . . ... . . . 3, 4, 6, 12, 13, 15,27, 29, 33,34, 36, 39, 46, 52,57
Secretary . . . . . . ... . . . . . . . . ... . . . . . . . . 3-5, 7, 8, 10, 13-15, 17,21, 25, 36-38, 59-61
Separate Interest ... . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20, 32, 40, 41, 51
Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15, 16, 51
Tenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 16,29
Townhouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 23, 26, 59
Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35, 36, 38, 42
Treasurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............. Q . . u a - - . . . . . ..36
Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1, 2,19, 43
Vice-President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25, 37
Vote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13, 18-22, 2 2, 36, 50, 59
Votes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 7, 1 NJ 0, 22, 27, 37
Voting Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _‘cl>_-P\J,_. l\J"O\9-“"N ,°<>3,u:»-—°- 0, 18, 22, 50

Second Restated Bylaws-Sharon Oaks HOA Page 63 of 63

CC&Rs (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
HomeWiseDocs
NOTICE:

If this document contains any restriction based on age,

race, color, religion, sex, gender, gender identity,
gender expression, sexual orientation, familial status,
marital status, disability, veteran or military status,
genetic information, national origin, source of income as
defined in subdivision (p) of Section 12955, or ancestry,
that restriction violates state and federal fair housing
laws and is void, and may be removed pursuant to
Section 12956.2 of the Government Code by submitting
a “Restrictive Covenant Modification” form, together
with a copy of the attached document with the unlawful
provision redacted to the county recorder’s office. The
“Restrictive Covenant Modification” form can be
obtained from the county recorder’s office and may be
available on its internet website. The form may also be
available from the party that provided you with this
document. Lawful restrictions under state and federal
law on the age of occupants in senior housing or
housing for older persons shall not be construed as
restrictions based on familial status.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
_______________________________
THE MANOR ASSOCIATION, INC.

CALIFORNIA GOV’T. CODE §12956.1

Disclosure (2019)

"If this document contains any restriction based on

race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, familial status, marital
status, disability, veteran or military status, genetic
information, national origin, source of income as defined in
subdivision (p) of §12955, or ancestry, that restriction
violates state and federal fair housing laws and is void, and
may be removed pursuant to §12956.2 of the Government
Code. Lawful restrictions under state and federal law on the
age of occupants in senior housing or housing for older
persons shall not be construed as restrictions based on
familial status."

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Document not for resale
HomeWiseDocs
Operating Rules (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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HomeWiseDocs
 Revised 9/20/18

Sharon Oaks Association

Sharon Oaks Drive, Menlo Park, CA
www.sharonoaks.org

Dear New Sharon Oaks Neighbor:

On behalf of the Sharon Oaks Association, welcome to the community!

We look forward to meeting you in person soon. In the meantime, we hope the attached
list will help you get off to a smooth start. It answers some of the most common questions
that we hear around Sharon Oaks – from assessments to websites and everything in
between.

If you have other questions, we’d love to hear from you! The main point of contact for
Sharon Oaks Association is our management company:

The Manor Association

1800 Gateway Drive #100, San Mateo, CA 94404
Tel: (650) 637-1616 x1
Email: [email protected]

You may also find our website helpful: www.sharonoaks.org.

Again, welcome to Sharon Oaks and we hope you enjoy your new home!

Sincerely,

Board of Directors, Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Revised 5/5/18

About Sharon Oaks

Below is a brief introduction to Sharon Oaks. It is by no means a comprehensive list! Please be sure to
review the CC&Rs and other governing documents for complete and detailed information.

Feel free to contact The Manor Association with any questions. Their contact information is at the bottom
of the page.

Thanks for taking the time to learn about your new neighborhood.

Assessments / HOA Dues

The monthly assessment for Sharon Oaks homeowners currently covers the costs of insurance, water,
landscaping, cable TV, and Internet services as described in various Association documents.

The amount of the assessment is derived from the Association’s annual budget, which is available for
download from the Sharon Oaks website at www.sharonoaks.org.

Board of Directors
The operations of Sharon Oaks are governed by a board of seven volunteer directors. Board members
are elected by Association members to oversee the policies, operations, and financial responsibilities
of the Association, as well as to maintain members’ compliance with our established rules.

Directors are elected in March and may serve up to two consecutive two-year terms.

Board Meetings
Monthly Board meetings are currently held on the third Thursday of every month at 5:00pm at the
clubhouse. Board meetings are open to all owners. There is also an Annual Homeowners’ Meeting,
generally held in March.

Previous meeting agendas and minutes may be downloaded from the Sharon Oaks website.

CC&Rs / Rules / Governing Documents

All owners and tenants at Sharon Oaks agree to comply with the Association’s governing documents:
CC&Rs, Bylaws, and Rules & Regulations. The rules were carefully designed to protect property
values, preserve the beauty of our environment, and make life more enjoyable for everyone.

Reading these documents is also a great way to learn about the community. All of the governing
documents are available to search or download at the Sharon Oaks website.

Order: DW73HJD2H
For help with any of the topics listed on these pages,
Address: 2369please contact
Sharon The Manor
Oaks Dr Association at
(650) 637-1616 x1 or [email protected], or visit the Sharon
Order Date: 01-03-2023 Oaks website at www.sharonoaks.org.
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 Revised 5/5/18

Clubhouse
The Sharon Oaks clubhouse at 2421 Sharon Oaks Drive includes indoor seating for up to 25 people, a
full kitchen, a fireplace, a television, and wireless Internet. Any Sharon Oaks resident may request to
reserve the clubhouse via the Sharon Oaks website or by contacting The Manor Association. There is a
$150 deposit, which is fully refundable.

Please note that the swimming pool and outdoor patio next to the clubhouse are not included as part
of the rental.

Committees / Volunteering
We encourage you to share your talents, meet other neighbors, and contribute to the neighborhood by
volunteering for a committee! The Association currently has the following committees: Architectural,
Finance, Landscaping, Maintenance, Parking, Pool, and Social.

All residents are welcome to participate either as a committee member or by volunteering for the
Association in another capacity.

Common Areas
The common areas at Sharon Oaks are for the use and enjoyment of residents and their guests. This
includes the roads, walkways, parking areas, gardens, pools, and other shared environments.
Residents are not allowed to place any items in common areas, or alter them in any way, unless
permitted by the Board of Directors.

Emergencies
To report an urgent maintenance issue, contact The Manor Association at (650) 637-1616.

For police or fire emergencies, dial 911 for immediate assistance. You may also contact the Menlo
Park Police at 650-330-6300, or after-hours at 650-325-4424.

In the rare instance that there is a break in the water main (water flowing continuously from a hole in
the street), contact the Menlo Park Water District emergency number at 650-330-6780, or after-hours
at 650-330-6300.

Garbage Collection
Garbage services are provided by Recology and bins are picked up on Thursdays. Please place your
bins near the street on Wednesday afternoon/evening, and remove empty containers promptly on
Thursday. Note that certain homes must take their bins to the end of the cul-de-sac because Recology
trucks will not enter cul-de-sacs.

Trash containers are to be stored out of sight and not on Association property. To change the size of
your garbage bin, please contact Recology.

Order: DW73HJD2H
For help with any of the topics listed on these pages,
Address: 2369please contact
Sharon The Manor
Oaks Dr Association at
(650) 637-1616 x1 or [email protected], or visit the Sharon
Order Date: 01-03-2023 Oaks website at www.sharonoaks.org.
Document not for resale
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 Revised 5/5/18

History / Style
Sharon Oaks was built in three phases from the mid-1960s through 1974. The community is a
planned development of individually-owned townhomes, with common facilities that are owned and
maintained by a governing Association.

Although the homes vary in their structural configurations and floor plans, all were designed to
complement each other in a “California Contemporary” style featuring shake roofs; clean lines; and,
with a few exceptions, light stucco exteriors with contrasting brown trim.

One of the many benefits of life at Sharon Oaks is the beauty of our community. The harmony of the
building exteriors combined with private roads, landscaped common areas and a mature tree canopy
give Sharon Oaks a gracious, welcoming appearance that is both unique and desirable.

Home Improvements
As a new homeowner, you may already have some ideas on how you’d like to improve your property.
All proposed modifications to your home’s exterior, and any internal changes that affect structural
integrity or noise blocking, must be submitted to a committee for approval:

• The Architectural Committee reviews proposed changes to exterior surfaces (front doors,
skylights, windows, outdoor planters, benches, lighting, etc.).
• The Landscape Committee reviews proposed changes to landscaping (plants, trees, walkways,
etc.).

The committee will review your plans to ensure that they follow the guidelines outlined in our
governing documents. The guidelines are designed to maintain the quality and aesthetics of our
neighborhood, as well as our property values. They are also intended to ensure that owners’ changes
do not impose additional cost burdens on the Association.

Note that the governing documents also outline restrictions on additional items such as exterior
storage, signage, satellite dishes, and window coverings (e.g., exterior lining must be white).

Landscaping
The Association owns and maintains all trees, shrubs, lawns, and other plantings in the Common
Areas of Sharon Oaks, including all of the vegetation around your home. If you’re interested in
changing the landscaping around your home, please see “Home Improvement,” above. Residents are
not permitted to add, remove, or alter any plantings without prior authorization.

We appreciate input and suggestions from residents in order to help keep our landscaping looking
beautiful. The landscape maintenance contractor is onsite weekly, usually on Tuesdays, and tree
pruning occurs two times per year, typically in fall and spring.

Order: DW73HJD2H
For help with any of the topics listed on these pages,
Address: 2369please contact
Sharon The Manor
Oaks Dr Association at
(650) 637-1616 x1 or [email protected], or visit the Sharon
Order Date: 01-03-2023 Oaks website at www.sharonoaks.org.
Document not for resale
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 Revised 5/5/18

Maintenance / Management
The Manor Association is the contracted community manager for Sharon Oaks Association. Manor
should be contacted for maintenance issues on property owned by the Association, such as
streetlights and sprinklers. Manor can also assist with questions regarding your homeowners’
assessments or anything you’d like the Board of Directors to address.

To reach someone at The Manor Association, submit a request at the Sharon Oaks website or use the
contact info below.

The Manor Association

1800 Gateway Drive #100, San Mateo, CA 94404
Tel: (650) 637-1616 x1
Email: [email protected]

Newsletter
A newsletter is mailed or emailed to all homeowners and tenants at the beginning of each month. The
newsletter includes upcoming repairs, community announcements, and other useful information.
Please make sure that Manor has your current email address to receive your newsletter electronically.
Archives of previous newsletters are available on the Sharon Oaks website.

Parking / Vehicle Registration

Complete parking guidelines may be found in the Association’s CC&Rs. Here’s a brief introduction:

• Guest Parking areas are intended for short-term use (72-hour maximum)
• Parking in driveways is allowed for brief periods. Overnight driveway parking is not allowed.
• The residents of a home may park no more than two vehicles on the properties.
• For your convenience, long-term guest parking permits are available.

Please contact Manor to register your vehicle(s) or to obtain a guest parking permit if needed. This
helps prevent you from receiving parking violation notices unnecessarily.

Pools
Sharon Oaks offers two community pools as an amenity to residents and their guests. The larger pool
is located at the clubhouse and the smaller pool is located in the middle of the complex across from
2426 Sharon Oaks Drive. You should have received a pool gate key when you moved in. Both pools
are heated and available for use from 7:00am-9:00pm, May through September.

We encourage you to familiarize yourself with the current pool rules, available on the Sharon Oaks
website. No one under the age of 14 is allowed in the pool areas unless accompanied by an adult 18
years of age or older, and there are no lifeguards on duty. Please swim safely!

Order: DW73HJD2H
For help with any of the topics listed on these pages,
Address: 2369please contact
Sharon The Manor
Oaks Dr Association at
(650) 637-1616 x1 or [email protected], or visit the Sharon
Order Date: 01-03-2023 Oaks website at www.sharonoaks.org.
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 Revised 5/5/18

Resident Roster
A directory of Sharon Oaks homeowners and residents is available and updated annually or as
needed. The roster is intended only for use within our community. Please ensure that Manor has your
current email address and phone number(s) so that your information can be included. View the
current roster at the Sharon Oaks website.

Social Events
The Association typically hosts two social events per year: one in the summer and one in the winter.
Dates are announced in the Sharon Oaks Association newsletter and all residents are invited. Come
mix and mingle with your neighbors!

Speed Limit
The speed limit on Sharon Oaks Drive is 15 miles per hour. Please respect the safety of our
neighborhood by obeying the speed limit and being alert for pedestrians.

Utilities
Your homeowners’ assessment currently includes the cost of water, cable TV, and Internet access at
your home. You may elect to upgrade your TV or Internet service by calling Comcast.

Website
Our residents-only website includes upcoming activities and events, copies of our governing
documents, a maintenance request form, and more. All current Sharon Oaks owners and tenants can
request a login to access to the website; just visit www.sharonoaks.org and click on the “Sign up”
link at the bottom.

Order: DW73HJD2H
For help with any of the topics listed on these pages,
Address: 2369please contact
Sharon The Manor
Oaks Dr Association at
(650) 637-1616 x1 or [email protected], or visit the Sharon
Order Date: 01-03-2023 Oaks website at www.sharonoaks.org.
Document not for resale
HomeWiseDocs
 Sharon Oaks Association
_______________________________
THE MANOR ASSOCIATION, INC.

CALIFORNIA GOV’T. CODE §12956.1

Disclosure (2019)

"If this document contains any restriction based on

race, color, religion, sex, gender, gender identity, gender
expression, sexual orientation, familial status, marital
status, disability, veteran or military status, genetic
information, national origin, source of income as defined in
subdivision (p) of §12955, or ancestry, that restriction
violates state and federal fair housing laws and is void, and
may be removed pursuant to §12956.2 of the Government
Code. Lawful restrictions under state and federal law on the
age of occupants in senior housing or housing for older
persons shall not be construed as restrictions based on
familial status."

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 SHARON OAKS ASSOCIATION

RULES & REGULATIONS

Revised and Adopted April 16, 2013

Amended January 19,2016

GENERAL MANAGEMENT:
Executive management of the Sharon Oaks Association (SOA) is vested in the Board of Directors,
elected by the residents, in accordance with the Bylaws of the Association. A paid professional
manager, responsible to the Board, performs operating management The Board has the power to
adopt and enforce reasonable rules and to levy and collect fines, as provided in the CC&Rs Section 3.08
(a) and 3.09 (a,b) and as specified under Section H below.

INSURANCE CLAIM PROCEDURE:

All Homeowner Insurance damage claims are to be reported to the designated Board Members or our
Homeowners' Management Company FIRST. This will provide the homeowner with the needed
Association insurance policy information based on deductibles and coverage.

TERMITE TENTING PROCEDURE:

All Homeowners planning to have termite tenting completed must contact the management company
prior to the start date. Homeowners must complete and sign an indemnification agreement and a roof
inspection wil be completed prior to tenting. After tenting is completed, a final roof inspection wil be
performed. Homeowners wil be responsible for any and all damage to the roof caused during the
termite tenting.

ARCHITEaURAL CONTROL AND GROUNDS:

Please read thoroughly Article VIII of the Restated CC&Rs, dated May 31, 2001 as revised. Concerns
regarding the landscaping in the common area should be addressed to the landscape committee and/or
the management company.

All trees, shrubs, and other plantings inside patios or enclosed yard (Exclusive Use Common Areas) are
the responsibility of the homeowner and shall be kept within the homeowner's patios or enclosed
yards and not allowed to encroach onto or damage other homeowner's or Association's property.
Oak trees in the Exclusive Use Common Areas are the responsibility of the Association.

If any owner desires to change any landscaping in the common area, those proposed changes must be
approved by the Board in advance and wil generally be at the owner's expense.

The landscape maintenance contract does not provide for care of special plantings such as flowers. The
homeowner is responsible for that maintenance
Order: and it must be done to acceptable standards.
DW73HJD2H
Address: 2369 Sharon Oaks Dr
Revised Rules Adopted
Order Date: 01-03-2023
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-2-

Private gardeners should not damage common area property and are responsible for removing cuttings
and leaf debris that they generate.

Due to the damaging effect on deck surfaces of chemicals and plant drainage, provisions must be
made to contain and prevent such substances from coming in contact with deck surfaces maintained by
the Association, as identified in CC&Rs Section 6.01 ©, (3) and (10) as amended.

USE RESTRICTIONS:

Please refer to Article IX of the Restated CC&Rs, dated May 31, 2001.

Non-resident family members and guests may use Sharon Oaks facilities only upon the express
invitation of Sharon Oaks residents for each use. Non-residents are not to be given keys to the
clubhouse or pools. Residents are responsible for all actions of their guests.

There is no parking along the roadway, except in areas set off for parking.

Parking in driveways is allowed only for brief periods. Overnight parking in driveways is not allowed.
Guest parking areas are for short-term use, except as noted below.
• Occasional parking for up to two nights by a guest or resident does not require approval
or a permit.

• Per 9.16(b) of the CC&Rs, the Board or its representative may issue a written permit for
temporary (up to 72 hours) overnight parking of a guest, visitor, or resident vehicle.
• Per 9.16(b) of the CC&Rs, for temporary parking of longer duration, the Board or its
representative may, after a showing of good cause (e.g., care giver, student home for the
summer, or renovation work that limits garage space), issue a written permit for a guest,
visitor, or resident vehicle to be parked for a fixed period of time.
• Per 9.26 of the CC&Rs, under special circumstances and at the request of an Owner
facing undue hardship, the Board as a whole can issue a 1-year permit to allow an Owner
to park a vehicle overnight in one of the guest parking areas having three or more
parking spaces. The 1-year permit can be annually renewed by Board approval in
January.

• In all cases, the permit will be displayed in the vehicle and show the dates of validity.

Parking in driveways is allowed only for brief periods. Overnight parking is not allowed.

No commercial activity of any kind shall be conducted on any lot except as expressly allowed by
C a l i f o r n i a l a w.

Shades, awnings, window guards, ventilators, fans and air conditioning devices shall not be installed on
Order:
the exterior of buildings, patios or fences withoutDW73HJD2H
prior written approval of the Board.
Address: 2369 Sharon Oaks Dr
Revised Rules Adopted Order Date: 01-03-2023
April 16,2013
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No one shall go on the roofs at any time without prior written approval from the Board. This includes
repair and installation personnel, building inspectors, and antenna installers.

Satellite dish antenna installations require prior Board review. (Ref. CC&Rs Section 9.15)

Pets of the usual household type (excluding livestock and poultry) are allowed, subject to the following.

The residences in Sharon Oaks are closely spaced and common areas are small. Therefore, owners
must be certain that their pets do not become a nuisance or hazard to others. Dogs must be on a leash
at all times that is no more than 6 feet long and under the control of a responsible person at all times
when on the common area. Owners are responsible for removal and disposal of animal's wastes.

Pet owners are asked to be especially considerate of their neighbors by making sure that pets are not
left on a patio or in a garage to bark or yowl unreasonably. If pets do become nuisances, the Board
may impose fines or other measures. Please also be attentive to pets that are brought to Sharon Oaks
by your visitors. Pets are not allowed in the clubhouse and swimming pool areas.

NON-OWNER OCCUPANCY:
The owner of a unit occupied by others must comply (a) with the notification provision of Section 2.02
(4) of the CC&Rs and (b) with the requirement of Section 2.02 (5) to provide a tenant with copies of the
Declarations and the Rules, and must so certify to the management company.

Failure of the owner to comply with these requirements within 14 days of occupancy by a non-owner
will result in a fine of $100 per month until these requirements are met.

STREETS AND GROUNDS:

The provisions of the California Vehicle Code apply to the private streets of Sharon Oaks. Visitors and
resident vehicles shall not be parked on the street except for brief periods.

When driving or parking, avoid damage to lawns and plantings. Vehicles must be parked on one side of
the street only to allow legal access for emergency vehicles.

The lawns and walkways in front of residences are common areas and shall not be obstructed or used
for any purpose other than access to residences.

Residents may not post signs in the common area, expect that a "for sale" sign, of reasonable
dimensions and design, may be placed in front of a townhouse being offered for sale. Such a sign must
be promptly removed upon sale and the site restored.

In consideration of your neighbors and in order to maintain the appearance of Sharon Oaks, trash and
recycling bins should be placed curbsideOrder:
the nightDW73HJD2H
before the scheduled pickup and taken in as early as
possible following collection.
Address: 2369 Sharon Oaks Dr
Revised Rules Adopted
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 A

No garage sales shall be permitted on the property at anytime. "By appointment only" estate sales will
be allowed during the sale of a residence. Such sales must be conducted with prior approval of the
Board and must comply with Sharon Oaks parking restrictions.

USES OF THE COMMON AREA BY OWNERS DURING MAINTENANCE AND CONSTRUCTION

WITHIN THEIR UNITS OR THE ASSOCIATED EXCLUSIVE-USE COMMON AREA:

During maintenance and construction by individual owners, there are often instances where they wish
to use nearby common area for material storage, heavy equipment transfer, or placement of a port-a-
potty or dumpster. Plans for such use must be approved by the Architectural Committee in advance.

Approval will be favorably considered in most situations when the usage is of short duration (one or
two weeks). When approval is sought for a longer term, there must be special circumstances. For
example, in the case of a port-a-potty, approval will be favorably considered when there is no ground-
level bathroom available within the unit. Port-a-potties must be serviced on an acceptable schedule.

CLUBHOUSE:

The clubhouse is for the use of residents and their invited guests, subject to the Clubhouse Use
Agreement. Arrangements for private parties in the clubhouse must be made with the designated
Board member. A reservation form must be completed certifying that a home owner will be in
attendance and will be responsible for the actions of the guests, for clean-up and for any damage that
m a y o c c u r.

SWIMMING POOLS:

The pools are heated and available for use by members and their guests 7:00 am to 9:00 pm from May
1 to October 31. This schedule is subject to modification by the Board.
Rules
1. Pool gates must be kept locked at all times.
2. Pool/Patio may not be reserved for private use.
3. Persons under 14 years of age must be accompanied by an adult 18 years of age or older.
Etiquette and Courtesies
1. Toddlers must wear leak-proof diapers, and soiled diapers should not be disposed of in the pool
trash containers.
2. Lap swimmers and casual swimmers should respect one another.
3. Place towels on pool furniture to prevent damage from suntan lotion.
4. Close umbrellas after use to prevent wind damage.
5. No excessive noise or boisterous playing such as Frisbee or ball throwing.
6. All litter must be disposed of in trash containers.
Safet>
1. No lifeguard is on duty. Please observe water safety procedures.
2. Food and Beverages must be inOrder:
plastic orDW73HJD2H
metal containers. No breakable objects allowed on
pool deck or in the pools Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
Revised Rules Adopted
April 16, 2013
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E N F O R C E M E N T:
In accordance with the Bylaws and CC&Rs of the Association, the Board may enforce these rules by
imposing fines or by other disciplinary means. The member affected must be given at least 15 days
notice of any disciplinary action or fine, including an explanation for the action. An opportunity must
be provided for the member to be heard by the Board, orally or in writing, not less than 5 days before
the effective date of the discipline or fine.

The Board has approved the following fines for violation of these rules:

A fine of up to five hundred dollars ($500) for holding a garage sale or an estate sale not approved by
the Board, on any property in Sharon Oaks.

A fine of fifty dollars ($50) per day for parking any motor home, recreation vehicle, boat or comparable
vehicles in Sharon Oaks for a period longer than forty eight (48) hours without prior Board approval.
Ref. CC&Rs 9.16 (h)

Any violation of other rules may result in a fine of $100. Second and third violations of the same rule
may result in fines of $200 and $300, respectively. Further violations may result in a fine of $500.
ELIGIBILITY OF CANDIDATES FOR ELECTION TO THE BOARD OF DIRECTORS:
A candidate must have been a resident owner for at least one year.
A candidate cannot be elected to more than two consecutive full terms as a director without having at
least a one-year hiatus.

The board may, under special circumstances, waive either of the above provisions.
The nominating process for the Board begins in November of each year. The term is two years
beginning in March. President, Vice President, Treasurer, and Secretary positions are elected by the
newly constituted Board after the Annual Meeting in March of each year. Homeowners are
encouraged to become active at the Board level.
ARCHITECTURAL REVIEW PROCEDURES
Sharon Oaks was built in three phases from the mid-'60s to 1974 and features a variety of structural
configurations and floor plans. The basic style of the development is "California Contemporary"
featuring shake roofs, simple clean lines and, with a few exceptions, light stucco exteriors with
contrasting brown trim. Sharon Oaks' low housing density and extensive landscaping give it a
gracious, welcoming appearance that is unique in the area and is very desirable. From time to
time, individual homeowners may wish to modify, remodel, or repair their townhouses. All
changes to the exterior of the townhouses or alterations that may affect the roof cover are subject to
architectural review.

Architectural control is a major function within the Sharon Oaks board. A summary of its purposes and
the procedures for its enforcement are circulated annually to all owners. This has become more
important in recent times because there is considerable turnover in ownership and many
residents are not familiar with the restrictions. In addition, more renovations are occurring.
Order: DW73HJD2H
Revised Rules Adopted Address: 2369 Sharon Oaks Dr
April 16, 2013 Order Date: 01-03-2023
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The Sharon Oaks architectural review procedures are intended to preserve uniformly the harmony
of exterior design and to help assure the structural integrity, safety, and high-quality appearance of the
complex. Below under "Review Criteria" are some of the conceptual standards that guide the
Architectural Committee's decisions.

Homeowners are encouraged to review Article VI11 of the CC&Rs, entitled, "Architectural Control',
before undertaking any external changes to a residence, or to seek changes in the common area or
exclusive use common area. Included among them are:

(1) Changes to any building, including entryways, doors, windows, trim; fence; patio;
balcony or other structure;

(2) Installation or attachment of any lighting, shades, screens, awnings, patio covers,
decorations, fences, or any changes affecting the exterior of any building, fence, balcony
or other structure. Any installations that require penetrating the roof, such as vents, skylights,
or securing of antennas or other devices must be approved.

(3) Installation, or construction of any sidewalks, slabs, walkways, curbs, gutters, patios, porches,
driveways, fences, lighting, decorations, radio or television broadcasting de vices or other
structures of any kind upon the Common Area.

(4) Exterior color of any residence or structure.

A homeowner, wishing to make a physical change to his/her residence or exterior area must first submit
a written application for approval of the proposed work to the Association's Architectural Committee.
Section 8.01 (a-b) of the CCSiRs describes in detail the approval process.

Revised Rules Adopted

April 16,2013
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Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Indemnification Agreement
Architectural Application

I, ____________________________________________________, owner of property located at

_____________________________________________, do hereby assume all responsibility,
both legal and financial, for any and all damages to any exterior surfaces or damages of a
structural or personal nature that my architectural changes may cause.

Further, I understand that I am solely responsible for the maintenance and repair of my
alteration.

My alteration consists of:

My alteration will conform to all current building codes and to the specifications of this
Association. I shall obtain all necessary inspections and permits. A copy of such permits will be
available to the Association upon demand.

I understand that this Agreement must be transferred to any future owner of this unit. I further
agree to notify any future owner of the existence of this form and that the terms and conditions of
this agreement will be binding on the new owners.

Owner(s) Date

Please attach and submit as many additional pages/sheets as needed.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 SHARON OAKS ASSOCIATION
AMENDMENT TO
RULES & REGULATIONS
Adopted September 26, 2017

PORTABLE BASKETBALL STANDARDS:

As provided by Section 9.19 of the CC&Rs, no fixed basketball standards or fixed sports
apparatus shall be attached to any Townhouse or garage or erected on a lot.

Portable basketball standards (“hoops”) may be placed and used in a homeowner’s Townhouse
driveway, subject to the following restrictions:

1. The homeowner must register the portable basketball standard with the Association, on a
form provided by the Association, prior to its placement and use. Homeowners are
strongly encouraged to discuss in advance with the Association’s Architectural
Committee any plans for a portable basketball standard prior to its purchase to ensure that
the intended placement and use is consistent with these rules.

2. Hoops may be placed and used only on or immediately adjacent to and facing a
homeowner’s driveway. Hoops may not be placed in or used on common area (except as
provided by this rule), or in streets.

3. Hoops must be moveable and must be of a reasonable size, in the sole judgment of the
Board.

4. Hoops must be mechanically sound, clean, and well maintained. Owners may not permit
hoops to become unsafe or unsightly or to be placed or used in a manner inconsistent
with these rules, and the Board, in its sole judgment, may require the removal of
noncompliant hoops at the homeowner’s expense.

5. Hoops, players, or balls must not be permitted to damage surrounding common area,
landscape, structures, vehicles, or signage in common areas or other owners' property. A
homeowner shall be liable for all damage resulting from the placement and use of the
homeowner’s portable basketball standard.

6. Hoops may not be positioned to encourage playing in common area adjacent to a

neighbor’s Townhouse or lot, or in a street.

7. Hoops may be used only during the hours of 9:00 a.m. to 8:00 p.m.

8. This rule grants a temporary, revocable license for the reasonable use and storage of
portable basketball standards by homeowners and residents consistent with these rules.
The Board, in its sole discretion, may revoke this license with respect to any homeowner
or resident at any time.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 ELECTION RULES
SHARON OAKS ASSOCIATION
a California nonprofit mutual benefit corporation

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 TABLE OF CONTENTS
Table of Contents........................................................................................................................................... i

Article 1: Definitions .................................................................................................................................... 1

1.1 “Association”................................................................................................................................... 1
1.2 “Board” or “Board of Directors” ................................................................................................... 1
1.3 “CC&Rs” ......................................................................................................................................... 1
1.4 “Director” ....................................................................................................................................... 1
1.5 “Davis Stirling Act” ......................................................................................................................... 1
1.6 “Inspector of Election” .................................................................................................................... 1
1.7 “Member” ........................................................................................................................................ 1
1.8 “Separate Interest” .......................................................................................................................... 1

Article 2: Membership Meetings ................................................................................................................. 1

2.1 Generally. ......................................................................................................................................... 1
a. Annual Meetings ......................................................................................................................... 1
b. Special Meetings ......................................................................................................................... 2
c. Date, Time and Location of Meetings ......................................................................................... 2
2.2 Notice Requirements. ....................................................................................................................... 2
a. Notice of Special Meetings Called by the Board ......................................................................... 2
b. Notice of Special Meetings Called by Petition of the Members .................................................. 2
c. Notice Contents ........................................................................................................................... 2
d. Delivery ....................................................................................................................................... 3
2.3 Chair of Meeting .............................................................................................................................. 3
2.4 Quorum ............................................................................................................................................ 3
2.5 Lack of Quorum................................................................................................................................ 3
2.6 Loss of Quorum ................................................................................................................................ 3

Article 3: Directors ....................................................................................................................................... 3

3.1 Number and Term of Directors ........................................................................................................ 3
3.2 Candidate and Director Qualifications ............................................................................................ 4
a. Candidates Must be Members ..................................................................................................... 4
b. Prior ownership for One Year ..................................................................................................... 4
c. Member in Good Standing .......................................................................................................... 4
d. Co-Owners Eligible for Only One Position ................................................................................. 4
e. Criminal Conviction .................................................................................................................... 4
f. Internal Dispute Resolution ......................................................................................................... 5
3.3 Impersonal Entities .......................................................................................................................... 5
3.4 Trusts ................................................................................................................................................ 5
3.5 One Directorship Only ..................................................................................................................... 5

Article 4: Inspector(s) of Election ............................................................................................................... 5

4.1 Selection ........................................................................................................................................... 5
a. Order: DW73HJD2H
Process......................................................................................................................................... 5
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 b. Eligible Inspector(s). ................................................................................................................... 5
4.2 Duties ............................................................................................................................................... 6
a. Membership. ................................................................................................................................ 6
b. Validity of Proxies....................................................................................................................... 6
c. Closing and Reopening of Polls. ................................................................................................. 6
d. Receive Ballots. ........................................................................................................................... 6
e. Custody........................................................................................................................................ 6
f. Challenges. .................................................................................................................................. 6
g. Counting Ballots. ......................................................................................................................... 6
h. Appoint Assistants. ...................................................................................................................... 7
i. Results. ........................................................................................................................................ 7
j. Impartiality. ................................................................................................................................. 7
k. Miscellaneous. ............................................................................................................................. 7
4.3 Removal............................................................................................................................................ 7

Article 5: Nominations ................................................................................................................................. 7

5.1 Nomination Procedures and Notice ................................................................................................. 7
5.2 Self-Nomination................................................................................................................................ 7
5.3 Nominating Committee ..................................................................................................................... 7
5.4 Write-Ins and Floor Nominations .................................................................................................... 8

Article 6: Ballots and Proxies ...................................................................................................................... 8

6.1 Voting Rights. ................................................................................................................................... 8
a. Number of Votes ......................................................................................................................... 8
b. Record Date ................................................................................................................................. 8
c. Proof of Membership ................................................................................................................... 8
d. No Cumulative Voting ................................................................................................................ 8
e. Co-Owners .................................................................................................................................. 8
f. Presumption of Consent. ............................................................................................................. 8
g. Voting for Properly Nominated Candidates. ............................................................................... 8
6.2 Proxies ............................................................................................................................................. 9
a. Generally ..................................................................................................................................... 9
b. Proxy Form .................................................................................................................................. 9
c. Vote by Proxyholder ................................................................................................................... 9
d. Who May Be Proxyholder? ......................................................................................................... 9
6.3 Pre-Ballot Notice. ............................................................................................................................ 9
6.4 Candidate List and Voter List. ......................................................................................................... 9
6.5 Verification of Lists .......................................................................................................................... 9
6.6 Secret Ballots ................................................................................................................................... 9
a. Signature.....................................................................................................................................10
b. Inner Envelope ...........................................................................................................................10
c. Outer Envelope ...........................................................................................................................10
d. Delivery ......................................................................................................................................10
6.7 Election Rules. ................................................................................................................................10
6.8 Power of Attorney. ..........................................................................................................................10
6.9 Quorum by Ballot. ...........................................................................................................................10

Article 7: Campaigning ...............................................................................................................................10

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 7.1 Access to Media...............................................................................................................................10
a. Use of Association Resources ....................................................................................................10
b. Exception ....................................................................................................................................11
7.2 Use of Common Area During Election Campaign ..........................................................................11
a. Purpose .......................................................................................................................................11
b. Reservation .................................................................................................................................11
7.3 No Use of Association Funds for Campaign Purposes. ..................................................................11
7.4 Improper Electioneering. ................................................................................................................12
a. Prohibited Activities. ..................................................................................................................12
b. Report Violations. ......................................................................................................................12
c. Fines. ..........................................................................................................................................12

Article 8: Canvassing and Petitioning........................................................................................................12

8.1 Generally .........................................................................................................................................12
8.2 Impermissible Conduct....................................................................................................................13

Article 9: Distributing Information ...........................................................................................................13

9.1 Generally .........................................................................................................................................13

Article 10: Petitions .....................................................................................................................................13

10.1 Purpose.......................................................................................................................................13
10.2 Signatures ...................................................................................................................................13
10.3 Invalidity of Signatures...............................................................................................................13
10.4 Setting the Date ..........................................................................................................................14
10.5 Recall Petitions...........................................................................................................................14

Article 11: Post-Election Results ................................................................................................................14

11.1 Breaking a Tie ............................................................................................................................14
11.2 Results of an Election .................................................................................................................14
11.3 Status of the Election Materials after Election ...........................................................................14
11.4 Election Recount.........................................................................................................................14

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 ELECTION RULES
SHARON OAKS ASSOCIATION
a California nonprofit mutual benefit corporation

These Election Rules revoke all previous election rules, and all amendments thereto, and
substitute in their place these Election Rules. If these rules are adopted before January 1, 2020,
they will not become effective until January 1, 2020. Otherwise they will become effective when
adopted.

ARTICLE 1: DEFINITIONS

1.1 “Association” means the Sharon Oaks Association, a California nonprofit, mutual
benefit corporation.

1.2 “Board” or “Board of Directors” means the Board of Directors of the Association.

1.3 “CC&Rs” means the Association’s declaration as the term is defined in the Davis-
Stirling Act.

1.4 “Director” means any member of the Association’s Board of Directors.

1.5 “Davis Stirling Act” means and refers to the Davis-Stirling Common Interest
Development Act which is the portion of the California Civil Code beginning with Section 4000
that governs common interest developments.

1.6 “Inspector of Election” means an inspector of elections as defined in the Davis-

Stirling Act.

1.7 “Member” means a Member of the Association as defined in the Association’s

CC&Rs.

1.8 “Separate Interest” means a separate interest as defined in the Association’s

CC&Rs.

ARTICLE 2: MEMBERSHIP MEETINGS

2.1 Generally.

a. Annual Meetings. The Association must hold an annual meeting each year to
conduct any Association business requiring a membership vote. Such meetings
may include Director elections, or other types of elections. The annual meeting
shall be on the first Tuesday in March of each year at the hour of 7:00 p.m.;
however, if for any reason it is impossible or impractical to hold the annual
meeting on such date, the meeting shall be held at such time within thirty (30)
days preceding or following such date, as the Board shall determine. The Board
must set the date and hour to hold such meetings.

Order: DW73HJD2H
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b. Special Meetings. Special meetings may be called for any lawful purpose by any
of the following: (i) President of the Association, (ii) majority of the Board, or
(iii) Members constituting at least five percent (5%) of the voting power of the
Association, or as required by law. If a special meeting is called by Members of
the Association, the request must be submitted to the Board in writing, specifying
the nature of the business to be transacted. The Director or officer receiving the
request must promptly deliver the request to the remaining Directors.

c. Date, Time and Location of Meetings.

i. Selected by the Board. Annual and special membership meetings will be

held at a reasonable location within the County of San Mateo.

ii. Selected by the Membership. If the date, time and/or location of a

membership meeting selected by petitioning Members in the manner
described in is unreasonable or contrary to the governing documents
and/or statutory requirements, the Board is empowered to reschedule the
date, time and/or location to something reasonable, relatively close to the
original date, time and location requested by the Members calling the
meeting, and compliant with the governing documents and statutory
requirements.

2.2 Notice Requirements.

a. Notice of Special Meetings Called by the Board. Except where one or more
different periods are required by superseding provisions of the Davis-Stirling Act,
all the following requirements apply: Notice of special meetings called by the
Board must be given not less than ten (10) days nor more than ninety (90) days
before the date of the meeting. If action is to be taken at the meeting, secret
ballots must be mailed to every member not less than thirty (30) days prior to the
deadline for voting as provided for in these Bylaws.

b. Notice of Special Meetings Called by Petition of the Members. Except where one
or more different periods are required by superseding provisions of the Davis-
Stirling Act, all the following requirements apply: Notice of special meetings
called by the Members must be given by the Board within twenty (20) days after
the Board’s receipt of such request. If the Board fails to give notice, the persons
calling the special meeting may give notice consistent with these Bylaws. The
special meeting must be held not less than thirty-five (35) days nor more than
ninety (90) days following the Board’s receipt of the request. If action is to be
taken at the meeting, secret ballots must be mailed to every member not less than
thirty (30) days prior to the deadline for voting as provided for in these Bylaws.

c. Notice Contents. The notice must specify the place, date, and hour of the meeting
and (i) in the case of a special meeting, the nature of the business to be transacted
as specified by those persons calling the meeting (and that no other business may
be transacted except as specified in the notice), or (ii) in the case of the annual
Order: DW73HJD2H
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 meeting, those matters which the Board intends to present for action by the
Members.

d. Delivery. Notice of any membership meeting must be given as follows:

i. Method of Delivery. Either personally, by electronic transmission (when

consented to by the Member) or by first-class mail, charges prepaid.

ii. Location of Delivery. To the Member: (a) at a primary or secondary

address stated in a written notice provided by the Member to the
Association pursuant to Civil Code §4041(a); or (b) if the Member fails to
provide such notice, the last address provided in writing by the Member;
or (c) if none of the above, the address of the Member’s Separate Interest.

iii. Delivery Deemed Given. Notice of a membership meeting is deemed given

when delivered personally, deposited in the mail, or upon completion of
electronic transmission to those Members who have consented to same.

2.3 Chair of Meeting. The President of the Board must call the membership meeting
to order and must chair the meeting unless the President or a majority of the Board selects
another person to chair the meeting.

2.4 Quorum. The quorum requirement for membership meetings is fifty-one percent
(51%) of the voting power of the Association. The Members may be represented in person, by
ballot, or by proxy. When a quorum is present, the affirmative vote of a majority of the voting
power represented at the meeting, entitled to vote and voting on any matter, is an act of the
Members unless the vote of a greater number is required by the articles, bylaws, CC&Rs or law.

2.5 Lack of Quorum. In the absence of a quorum at the beginning of a membership

meeting, no business may be transacted except to adjourn the meeting to another date and time.
A majority of the Members present and entitled to vote may adjourn the meeting, if at any
meeting of the Association a quorum is not present. The date of an adjournment for lack of a
quorum must be no later than forty-five (45) days from the date the original meeting was called.
If a new record date is fixed for notice or voting after the adjournment, a notice of the adjourned
meeting must be given to each Member who, on the record date for notice of the meeting, is
entitled to vote at the meeting.

2.6 Loss of Quorum. The Members present at a duly called membership meeting at
which a quorum is initially present may continue to transact business until adjournment,
notwithstanding the loss of quorum. The business must be approved by enough Members to
constitute at least a majority of a quorum had a quorum been present.

ARTICLE 3: DIRECTORS

3.1 Number and Term of Directors. The Board will consist of seven (7) Directors.
The term of each Director is two (2) years or until a qualified successor is elected to fill his/her
seat. Three (3) Directors are to be elected in even-numbered years and four (4) Directors are to
be elected in odd-numbered years. Order: DW73HJD2H
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 3.2 Candidate and Director Qualifications. Members must meet the qualifications in
the subsections hereafter to be eligible for nomination as a candidate for, or to serve as a
Director, on the Board. The determination of whether any of these qualifications are met and, if
not, whether a nominee or Director must be disqualified from running for office or serving on the
Board, must be made at a properly noticed disciplinary hearing conducted at an executive session
Board meeting.

a. Candidates Must be Members. The Association must disqualify the nomination of

a candidate who is not a Member of the Association at the time of nomination.

b. Prior ownership for One Year. To be eligible for nomination and/or to serve on
the Board, a candidate for the Board or serving as a Director must be the record
Owner of a Separate Interest for a period of at least one year, proof of which must
be a recorded deed. Persons holding a fee simple interest in a Separate Interest
merely as security for the performance of an obligation are not eligible to either
be a candidate for or to serve on the Board.

c. Member in Good Standing. To be eligible for nomination and/or to serve on the

Board, the person or impersonal entity must not be delinquent by more than sixty
(60) days in the payment of any regular or special Assessment (following proper
notice, hearing, and a finding by the Board), except:

i. A person may not be disqualified from nomination for nonpayment of

fines, fines characterized as assessments, collection charges, late charges
or costs levied by a third party.

ii. A person may not be disqualified from nomination because the person has
paid the regular or special assessment under protest.

iii. A person may not be disqualified from nomination due to delinquent

assessments if the person has entered into a payment plan with the
Association pursuant to Civil Code §5665 and is fulfilling the terms of the
payment plan.

d. Co-Owners Eligible for Only One Position. To be eligible for nomination and/or
to serve on the Board, the person or impersonal entity must not have a record fee
simple ownership interest in a Separate Interest which is part of the Development
with another person or impersonal entity concurrently serving as a Director.
Where two or more co-Owners concurrently seek election to the Board, only the
first nomination will be effective.

e. Criminal Conviction. A person who has disclosed, or concerning whom the Board
has become aware, of a past criminal conviction that would, if the person is
elected, either prevent the Association from purchasing the fidelity bond coverage
required by Civil Code Section 5806, or any successor statute, or which
conviction would cause such coverage to be terminated, is ineligible for
nomination to the Board. Each nominee, at the time of nomination, shall disclose
the existence of anyOrder: DW73HJD2H
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 sufficient details in order to allow the Association to determine whether the
criminal conviction will prevent the Association from purchasing the required
fidelity bond coverage.

f. Internal Dispute Resolution. Before any candidate for nomination or serving

Director may be disqualified, the person or impersonal entity must be provided
the opportunity to engage in internal dispute resolution as provided in the Davis-
Stirling Act.

3.3 Impersonal Entities. If title to a Separate Interest is held by a legal entity that is
not a natural person, the governing authority of that legal entity shall have the power to appoint a
natural person to be a Member for the purpose of candidacy or serving on the Board. The
designation by the impersonal legal entity must be in writing with documentation confirming
both the designation and its authority to do so.

3.4 Trusts. If title is held in the name of one or more trustees, subject to a trust, a sole
trustee or one of several trustees are permitted to be a candidate for a position on the Board or to
serve on the Board subject to all qualifications and/or requirements of the Association’s
governing documents and/or the law. The designation of one of several trustees must be in
writing with documentation confirming both the designation and the authority of the designator
to do so.

3.5 One Directorship Only. No current Director may hold multiple positions on the
Board. Any Director, whose term extends beyond a current election and who wishes to become a
candidate for that election, must first resign his/her seat on the Board. This rule does not apply to
a candidate whose term is expiring and who wishes to run for re-election.

ARTICLE 4: INSPECTOR(S) OF ELECTION

4.1 Selection.

a. Process. Prior to the date ballots are first sent out, the Board of Directors must, at
an open meeting of the Board, select either one (1) or three (3) persons as
Inspector(s) of Election.

b. Eligible Inspector(s). The Board may select as Inspector(s) of Election, any

person or entity or subdivision of a business entity not currently employed or
under contract to the Association. Eligible Inspectors include, but are not limited
to:

i. Poll Workers. A volunteer poll worker with the County Registrar of

Voters;

ii. Accountants. A licensee of the California Board of Accountancy, not

under contract to the Association;

iii. Notary Public. A notary public commissioned by the California Secretary

of State. Order: DW73HJD2H
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 iv. Association Members. Members of the Association, but not: (i) members
of the Board, (ii) candidates for the Board, (iii) persons related to a
member of the Board, or (iv) persons related to a candidate for the Board;

v. Professional Inspectors. Third party persons or entities who provide

professional election services who contract to the Association solely to
serve as an Inspector of Election.

4.2 Duties. Duties of Inspector(s) of Election include the following:

a. Membership. Determine the number of memberships entitled to vote and the

voting power of each.

b. Validity of Proxies. Determine the authenticity, validity and effect of proxies, if

any.

c. Closing and Reopening of Polls. Determine when the polls close, including any
desired extensions of the voting period, and determine whether to reopen the polls
to allow Members to cast ballots if the polls were previously closed, all consistent
with the Association’s other governing documents.

d. Receive Ballots. Receive all ballots. Once received by an Inspector of Election,

ballots are irrevocable.

e. Custody. The sealed ballots, signed voter envelopes, voter list, proxies, and
candidate registration list shall at all times shall be in the custody of the
Inspector(s) of Election or at a location designated by the Inspector(s) until after
the tabulation of the vote, and until the time allowed by Section 5145 for
challenging the election has expired, at which time custody shall be transferred to
the Association. No person, including a Member of the Association or an
employee of the management company, is permitted to open or otherwise review
any ballot prior to the time and place at which the ballots are counted and
tabulated. The Inspectors(s) of Election or the Inspector(s) designee(s) may verify
the Member’s information and signature on the outer envelope prior to the
meeting at which ballots are tabulated.

f. Challenges. Hear and determine all challenges and questions in any way arising
out of or in connection with the right to vote. If there is a recount or other
challenge to the election process, the Inspector(s) of Election must make the
ballots available for inspection and review by an Association Member or the
Members authorized representative, upon written request. An Association
Member may authorize a representative to review the ballots on his or her behalf.
Any recount must be conducted in a manner that preserves the confidentiality of
the vote.

g. Counting Ballots. Count and tabulate all votes. All votes must be counted and
tabulated by the Inspector(s) of Election or the Inspector(s) designee(s) in public
at a properly noticedOrder:
open meeting of the Board of Directors or Members.
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 Candidates and Members may witness, but not interfere with, the counting and
tabulation of the votes from at least two (2) feet away from the Inspector(s) and
his/her/their assistants.

h. Appoint Assistants. Appoint and oversee additional independent third parties to

verify signatures, and to count and tabulate votes as the Inspectors of Election
deem appropriate provided that such persons are independent third parties.

i. Results. Determine the tabulated results of the election.

j. Impartiality. Perform all duties impartially, in good faith, to the best of the ability
of the Inspector(s) of Election, as expeditiously as is practical, and in a manner
that protects the interest of all Members of the Association. Any report made by
the Inspector(s) of Election is prima facie evidence of the facts stated in the
report.

k. Miscellaneous. Perform any acts as may be proper to conduct the election with
fairness to all Members in accordance with the Civil Code, the Corporations
Code, the Association’s governing documents, and all applicable rules of the
Association regarding the conduct of the election that are not in conflict with the
Civil Code.

4.3 Removal. The Board has the power to remove any Inspector who ceases to meet
the required qualifications, are unable or unwilling to perform their duties, or for any other good
reason, and to appoint one or more replacement Inspectors.

ARTICLE 5: NOMINATIONS

5.1 Nomination Procedures and Notice. Prior to the election of Directors, the Board
must, by written notice to all Members, solicit nominees. The solicitation must include the
“Candidate and Director Qualifications” described above and provide general notice of the
procedure and deadline for submitting a nomination. The deadline must be at least thirty (30)
days after giving notice. Delivery of the solicitation must be given by individual notice, pursuant
to Civil Code §4040, if individual notice is requested by a Member before the solicitation is
given. Nominees must be listed as candidates on the ballot provided (i) they meet candidate and
Director qualifications and (ii) their nomination is made prior to the date and time set for the
close of nominations.

5.2 Self-Nomination. Any qualified person may nominate himself or herself for
election to the Board of Directors by submitting to the Association a written statement signed
and dated by the person nominating himself or herself. The Association must set a cut-off date
for the receipt of self-nomination statements, which date must be publicized in advance to the
Members.

5.3 Nominating Committee. As provided for in the Bylaws, a nominating committee

shall be appointed each year by the Board to solicit candidates to run for the Board and notify
them of (i) the date for the close of candidate applications, (ii) the date for election of Directors,
either at an annual meeting or by ballot without
Order: a meeting, (iii) and the qualifications to serve on
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the Board. Per Civil Code §5105(a), the nominating committee may not preclude qualified
Members from nominating themselves.

5.4 Write-Ins and Floor Nominations. Any qualified person may also nominate
himself or herself for election to the Board of Directors as a write-in candidate or from the floor
if the secret ballot election concludes at a meeting of the Members.

ARTICLE 6: BALLOTS AND PROXIES

6.1 Voting Rights.

a. Number of Votes. Each Member is entitled to one (1) vote per Separate Interest on
all matters presented to the Members for a vote.

b. Record Date. For Membership elections where a secret ballot is required under
the law, and any other Membership election where the Board has not set a Record
Date for the election, the Record Date will be the date ballots are distributed to the
Membership. Only owners on title on the Record Date are entitled to vote.
Persons acquiring title after the Record Date may attend the election meeting but
are not entitled to vote. For any Membership election where a secret ballot is not
required under the law, the Board is permitted to set a Record Date for an election
no more than sixty (60) days before the date of the election meeting.

c. Proof of Membership. No person or entity may exercise the rights of membership

without an ownership interest in a Separate Interest subject to Association’s
CC&Rs. If the Board requests proof of ownership, the required proof is a
recorded deed showing the required ownership or, if the property was transferred
within the past thirty (30) days and a copy of the newly recorded deed is not yet
available, a completed escrow closing statement is sufficient.

d. No Cumulative Voting. Cumulative voting is not permitted.

e. Co-Owners. Where there is more than one owner of a Separate Interest subject to
the Association’s CC&Rs, all such co-Owners are Members and may attend any
meeting of the Association, but only one co-Owner is entitled to exercise the vote
to which the Separate Interest is entitled. Fractional votes are not permitted. In the
event more than one ballot is cast for a particular Separate Interest, only the first
ballot received will be opened and counted.

f. Presumption of Consent. Unless the Inspector(s) of Election receive a written

objection prior to the close of balloting from a co-owner, it is conclusively
presumed that a voting owner acted with the consent of his or her co-owners.

g. Voting for Properly Nominated Candidates. Members must vote only for those
candidate(s) who have been properly nominated prior to the close of nominations.

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 6.2 Proxies.

a. Generally. The Association may use and accept proxies as permitted by law and
the Association’s governing documents, provided that the Association is not
required to prepare or distribute proxies. Proxies are not permitted to be construed
or used in lieu of a ballot at a meeting.

b. Proxy Form. Any instruction given in a proxy issued for an election that directs
the manner by which the proxyholder is to cast the vote must be set forth on a
separate page of the proxy that can be detached and given to the proxyholder to
retain. Proxies must meet all requirements of Chapter 4 of Article 2 of the Davis-
Stirling Act, other laws, and the Association’s governing documents.

c. Vote by Proxyholder. The proxyholder must cast the Member’s vote by secret
ballot unless the proxy is revoked by the Member prior to the receipt of the ballot
by any Inspector of Election as described in Corp. Code §7613.

d. Who May Be Proxyholder? As provided for in Civil Code §5130(a)(1),

proxyholders must be Members.

6.3 Pre-Ballot Notice. At least 30 days before the ballots are distributed, the
Association must provide general notice (or individual notice to a Member who requested it)
which includes:

a. The date, time and physical address to mail or hand deliver ballots to the
Inspector(s);

b. The date, time and location ballot counting meeting; and

c. A list of candidates to appear on the ballots.

6.4 Candidate List and Voter List. The Association must retain, as Association
election materials, both a candidate registration list and a voter list. The voter list must include
name, voting power, and either the physical address of the voter’s Separate Interest, the parcel
number, or both. The mailing address for the ballot shall be listed on the voter list if it differs
from the physical address of the voter’s Separate Interest or if only the parcel number is used.

6.5 Verification of Lists. The Association must permit Members to verify the
accuracy of their individual information on the candidate registration list and the voter list at
least 30 days before the ballots are distributed. The Association or Member must report any
errors or omissions to either list to the Inspector(s) of Election who must make the corrections
within two business days. Reports of any errors or omissions should be made early enough to
allow for corrections to be made before the ballots are distributed.

6.6 Secret Ballots. All ballots mailed or otherwise delivered to the membership must
include a double-envelope system and voting instructions for returning the ballots as provided
for in the Davis-Stirling Act, and must be mailed by first-class mail or delivered to every
Member entitled to vote at least thirty (30) days
Order: before the initial voting deadline. Ballots
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seeking approval to amend or restate governing documents must be delivered to the Members
with the text of the proposed amendment.

a. Signature. Ballots do not require a signature. Ballots signed by Members remain

valid.

b. Inner Envelope. The Association will provide two envelopes. To preserve

secrecy, the ballot is to be placed within an inner envelope with no identifying
information. However, information written on the inner envelope by a Member
will not invalidate the ballot. The inner envelope containing the ballot is to be
placed into a second “outer” envelope containing identifying information.

c. Outer Envelope. In the upper left-hand corner of the outer envelope, the voting
Member must sign his/her name and indicate (print, type, etc.) his/her name and
the address entitling the voter to vote. The outer envelope must be addressed to
the Inspector(s) of Election.

d. Delivery. The outer envelope may be mailed to the address on the envelope or
delivered to a location specified by the Inspector(s) of Election. The Member may
request a receipt for delivery.

6.7 Election Rules. At least 30 days before the voting deadline, the Inspector(s) of
Election must deliver, or cause to be delivered, the election operating rules to all Members. Such
rules may be delivered (1) by individual delivery (Civil Code §4040) or (2) by posting the rules
on an internet website and including the website address (URL) on the ballot with the phrase, in
at least 12-point font: “The rules governing this election may be found here:”

6.8 Power of Attorney. The Association cannot deny a ballot to a person with general
power of attorney for a Member. The ballot of a person with a general power of attorney must be
counted if timely returned.

6.9 Quorum by Ballot. Each ballot received by an Inspector(s) of Election within a

properly completed outer envelope from a Member is deemed as a Member present at a meeting
for purposes of establishing a quorum.

ARTICLE 7: CAMPAIGNING

7.1 Access to Media.

a. Use of Association Resources.

i. Association Media. Neither candidates nor Members may use the

Association’s newsletter, website, any other Association media for
campaign purposes.

ii. Membership List. Candidates and Members have the right to request a
copy of the Association’s membership list for the purposes of distributing,
at their own expense, materials which advocate a point of view reasonably
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Address: 2369
10 Sharon Oaks Dr
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 related to an election, or as otherwise permitted by Civil Code §4515.
Candidates and Members also have the right to contact Members who
have opted out of the membership list through the alternate means of
communication permitted under Cal. Civ. Code §5220 for the purposes of
distributing, at their own expense, materials which advocate a point of
view reasonably related to the election or as otherwise permitted by Civil
Code §4515.

b. Exception. If any candidate or Member is provided access to Association

newsletters, website, or other Association media during an election, or given
permission to post campaign material in the common area for purposes that are
reasonably related to that election, equal access must be provided to all candidates
and Members. The access is limited to information relating to that election and
cannot exclude those candidates and Members not endorsed by the Board. The
Association is not permitted to edit or redact any content from these
communications but is permitted to include a statement that the candidate or
Member, and not the Association, is responsible for that content. The Association
and its Directors, officers, and agents are immune from liability for the content of
those communications to the fullest extent provided by law.

7.2 Use of Common Area During Election Campaign.

a. Purpose. Regarding any Association election, each candidate, Member, or

resident is permitted to use, if available, the Association’s common area at no cost
for a purpose relating to Association elections as described in Civil Code §4515,
including to advocate a point of view reasonably related to the election.

b. Reservation. Each candidate, Member, or resident, who wants to use the common
area pursuant to Civil Code §§4515 or 5105 must make a reservation in advance
of the date and time requested. Such requests to use the common area are granted
on a first-come, first-served basis, provided that the area is not already reserved.
In order to assure fairness, each candidate may not reserve or use the common
area for more than two (2) hours on any particular date. In addition, each
candidate or Member is permitted to make only one (1) reservation per day to use
the common area.

7.3 No Use of Association Funds for Campaign Purposes. Association funds may not
be used for campaign purposes in connection with any Board election and may not be used for
campaign purposes in connection with any other Association election except to the extent
necessary to comply with duties of the Association imposed by law. The Association is not
permitted to include the photograph or prominently feature the name of any candidate on a
communication from the Association or its Board. Directors, in their capacities as Members, are
permitted to advocate for the election or defeat of any issue or candidate on the ballot at their
own expense and are not permitted to use Association funds for that purpose in any capacity.

Order: DW73HJD2H
Address: 2369
11 Sharon Oaks Dr
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 7.4 Improper Electioneering.

a. Prohibited Activities. In addition to any of the prohibitions under this article,

candidates, Members, and residents, including their tenants, families, employees,
agents, visitors, licensees, or servants are prohibited from engaging in any of the
following activities:

i. Causing any printed campaign or other election related materials to be

placed upon or affixed to (1) resident’s vehicles, (2) common area walls,
doors, or windows, (3) mail boxes or mail box structures, (4) or any
portion of the common area not expressly permitted in these rules without
prior authorization from the Board or management;

ii. Attempt to solicit either a vote or proxy from another Member, or their
power of attorney, through deceit, harassment, intimidation, improper
influence, undue coercion, or force;

iii. Attempt to prevent a Member from casting a vote or delegating their right
to vote via proxy through deceit, harassment, intimidation, improper
influence, undue coercion, or force;

iv. Interfere with the counting or tallying of votes;

v. Solicit the vote of a Member while in that Member’s immediate presence

or residence and during the time he or she knows the Member is voting;

vi. Induce other Members to divert ballots away from the Inspector(s) of
Elections; or

vii. Interfere with any candidate’s ability to distribute authorized campaign

materials.

b. Report Violations. Members are encouraged to report any electioneering

violations they witness to the Board or management.

c. Fines. The Board is permitted to levy a fine of up to $100 for each violation of
this section.

ARTICLE 8: CANVASSING AND PETITIONING

8.1 Generally. Canvassing and petitioning the Members, the Board, and residents for
purposes permitted in Civil Code §4515, by telephone and/or personal visits to private residences
in the development, is limited to the hours of 9:00 a.m. until 9:00 p.m. However, any Member or
resident who declines to be contacted on any issue, including for a purpose specified in Civil
Code §4515, must not be contacted by telephone or personal visits thereafter.

Order: DW73HJD2H
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12 Sharon Oaks Dr
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 8.2 Impermissible Conduct. Nothing in this section permits a Member or resident to
contact another Member or resident in a manner that constitutes a breach of the Member’s or
resident’s quiet enjoyment, or a nuisance.

ARTICLE 9: DISTRIBUTING INFORMATION

9.1 Generally. Reasonably distributing and circulating information for any purposes
described by Civil Code §4515, is permitted and restricted as follows:

a. Members or residents may distribute or circulate printed information for purposes

specified in Civil Code §4515 to other Members or residents by (1) mail, (2)
placing printed materials under front doors, front door mats, and/or behind screen
doors, and (3) handing out printed material in the common area to Members and
residents willing to accept such materials. The handing out of materials in the
common area may be conducted only between the hours of 9:00 a.m. and 9:00
p.m.

b. Member and residents may not cause any printed materials, including those for
any purposes specified in Civil Code §4515, to be placed upon or affixed to (1)
resident’s vehicles, (2) common area walls, doors, windows or other surfaces, (3)
mail boxes or mail box structures, (4) or in any portion of the common area not
expressly permitted in these rules without prior authorization from the Board or
management.

c. Members and residents distributing and circulating printed materials permitted in

these rules, such as those left at front doors or in other permissible locations in the
development, are responsible to collect and discard any such materials that remain
uncollected after twenty-four (24) hours from distribution or circulation.

ARTICLE 10: PETITIONS

10.1 Purpose. The purpose of the petition for a membership meeting must be set forth
in the petition so Members know what they are signing. Meetings may only be called for a
proper purpose.

10.2 Signatures. Only Members may sign petitions. Signatures by persons not on title
are invalid. The Association may validate signatures by comparing them against signatures on
file with the Association or by contacting signers to verify their signatures. Any person on title to
a property can sign on behalf of the property but it counts only once. For example, if there are
ten owners on title for one unit, all of whom sign a petition, it counts as one signature not ten.

10.3 Invalidity of Signatures. A petition can be rendered invalid if a sufficient number

of signatures are found invalid or rescinded for good cause (such as fraud, mistake, undue
influence or other valid grounds for rescission), such that the number of remaining signatures
falls below 5% of total voting power of the membership.
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Address: 2369
13 Sharon Oaks Dr
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 10.4 Setting the Date. The date of the special meeting for a recall must be set in the
manner provided for in these Election Rules above and the law.

10.5 Recall Petitions. Recalls are not permitted to be started against the Board as a
whole or any individual Director if: (a) the Board or Director has held office during the current
term for less than ninety (90) days; (b) a recall election has been determined in the Board’s or
Director’s favor within the last six (6) months; (c) for the recall of a Board, when an annual
meeting will be held within six (6) months or less or (d) for the recall of individual Directors,
when their term will end within six (6) months or less. Additionally, if a recall of the entire
Board fails, a six (6)-month waiting period must be observed before recall petitions may be filed
against individual Directors who served on that Board.

ARTICLE 11: POST-ELECTION RESULTS

11.1 Breaking a Tie. In the event of a tie leaving the outcome of the election
unresolved, the following will apply:

a. The Inspector(s) of Election, and any designees, will immediately conduct a

recount of the ballots. If there is a charge, the Association will bear the expense.
Members may observe the recount under the same conditions as the original ballot
counting.

b. Following the immediate recount, if the tie remains, all other newly elected
Directors will immediately begin serving their terms. An incumbent Director
whose seat was tied will continue in office until a runoff election determines the
winner for his/her seat. Only candidates who tied for the seat will be in the runoff.

c. In lieu of a runoff and if the tied candidates agree, the winner may be decided by a
coin toss or the drawing of names by the Inspectors of Election.

11.2 Results of an Election. The tabulated results of the election must be announced
immediately after all the ballots have been counted. The tabulated results of the election must be
promptly reported to the Board of Directors and must be recorded in the minutes of the next
Board meeting. Within fifteen (15) days of the election, the Board must publicize the tabulated
results of the election in a communication directed to all Members.

11.3 Status of the Election Materials after Election. The sealed ballots, signed voter
envelopes, voter list, proxies, and candidate registration list shall at all times shall be in the
custody of the Inspector(s) of Election or at a location designated by the Inspector(s) until after
the tabulation of the vote, and until the time allowed by Section 5145 for challenging the election
has expired, at which time custody shall be transferred to the Association. If there is a recount or
other challenge to the election process, the Inspector(s) of Election shall, upon written request,
make the ballots available for inspection and review by an Association Member or the Member’s
authorized representative. Any recount shall be conducted in a manner that preserves the
confidentiality of the vote.

11.4 Election Recount. Election recounts, other than the automatic recount following a
tie leaving the outcome of an election unresolved,
Order: will be conducted as follows:
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Address: 2369
14 Sharon Oaks Dr
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a. Any Member of the Association may demand a recount of the ballots provided (i)
demand is made in writing to the Inspector(s) of Election within five (5) days
after the election results have been announced, and (ii) the Member pays in
advance for the estimated cost of the recount which estimate will be provided by
the Inspector(s) of Election. Monies advanced by the Member must be refunded if
the outcome of the election is changed by the recount.

b. The recount must be commenced no less than seven (7) days following the
request for the recount and must be done by or under the supervision of the
Inspector(s) of Election. If the Inspector(s) of Election declines to perform the
recount, the Board may appoint a replacement Inspector(s) of Election, using the
criteria specified in these rules and the replacement Inspector(s) will assume
custody of the ballots.

c. Any recount may be observed by Members of the Association. No election

materials may be touched or handled by any person without the express consent
of the Inspector(s) of Election and under the supervision of the Inspector. The
results of the recount must be reported to the Board of Directors and must be
recorded in the minutes of the next Board meeting and reported to the
membership.

Order: DW73HJD2H
Address: 2369
15 Sharon Oaks Dr
Order Date: 01-03-2023
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 COVID-19 PANDEMIC POOL FACILITY RULES

SHARON OAKS ASSOCIATION

These rules are Operating Rules as defined in the Davis-Stirling Common Interest
Development Act (Davis-Stirling Act) and, to the extent they may conflict with any previous
Operating Rules, supersede and prevail over such previous rules. These rules are adopted to
address the unique and special circumstances being encountered by this Association as a result of
the global COVID-19 pandemic. Every effort will be made to comply with the Association’s
other governing documents and the Davis-Stirling Act, but the overriding purpose of these rules
is to help protect the community from and reduce exposure to and transmittal of the virus which
causes the COVID-19 condition when residents are using the Association’s pool facility.
Accordingly, strict compliance with the Davis-Stirling Act and the Association’s governing
documents may not always be possible. These rules will remain in full force and effect until
further notice.

The Board reserves the right to close the pool facilities if residents are not complying with these
Rules.

ARTICLE 1: DISINFECTION PLAN

1.1 High Touch Areas. The Association is to implement a sanitation protocol which
provides regular disinfection of high touch areas in the common area of the swimming pool
facilities (e.g. entry/exit gate and door handles, and pool handrails).

1.2 Hand Sanitizer/Disinfectant Wipes. Residents are strongly encouraged to bring

60% alcohol-based hand sanitizer and disinfection wipes with them to the pool.

1.3 Pool Furniture/Towels. Residents should bring their own towels, pool chairs
and/or toys to the pool and should not share towels with those outside of their household. All
items should be removed by Residents when they leave the pool area.

1.4 Wash Hands. Residents are strongly encouraged to wash their hands with soap
and water, use hand sanitizer, and cover coughs and sneezes with a cloth or tissue or, if not
available, into one’s elbow.

ARTICLE 2: POOL FACILITY USAGE

2.1 No Entry if Symptomatic. Residents must stay home and not enter the pool
facility areas if they are experiencing any COVID-19 symptoms, including but not limited to a
fever of 100°F and above, sore throat, runny nose, chills, shortness of breath or difficulty
breathing, not feeling well, sneezing, coughing, muscle pain, abdominal pain, diarrhea or new
loss of taste or smell. Residents must stay home and not enter the pool facilities if they were
exposed to someone with COVID-19 within the last fourteen (14) days.

2.2 Limited Number of Users. Use of the large pool is restricted to two households at
a time. Use of the small pool is restricted to two households at a time. The Association may

Order: DW73HJD2H
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Pool COVID-19 Rules 7/1/20
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implement a monitored appointment system to ensure compliance with these rules. Pool time
should be limited to a maximum of 35 minutes if resident(s) are waiting.

2.3 Must Sign Hold Harmless. Adult residents must sign and return the
Acknowledgement and Hold Harmless form attached to these rules before entering and using the
pool facility. Each adult utilizing the pool facilities must sign the hold harmless agreement.
Adults must also sign on behalf of minor residents that will be entering the pool facility.

2.4 No Parties or Guests. Parties or gatherings are prohibited in all common areas
including the pool facility. Guests that do not reside in the development are not allowed to use
the pool facility.

2.5 Social Distancing. Residents must ensure they remain at least six (6) feet apart
from other residents, (except members of the same household) at all times, including in the
water.

2.6 Face Coverings. Residents aged two (2) and over must wear a face covering over
the nose and mouth when outside the water. Remove face covering before entering the water.

2.7 Pool Furniture. You may bring your own pool furniture and are strongly
encouraged to distance the furniture at least six feet apart. All furniture must also provide a clear
deck space of four (4) feet around the pool, as required by California law.

ARTICLE 3: SIGNAGE

3.1 Posting of Rules. These rules shall be posted at the entrance and exit of the pool
area.

3.2 Post Required Governmental Signs. All required signage, if any, by the State of
California, County of San Mateo shall be posted at the entrance and exit of the pool facility.

ARTICLE 4: POOL VENDORS

4.1 Pool Vendors. The pool maintenance vendor is there to maintain the pool and will
not be expected to enforce these guidelines.

ARTICLE 5: BARRIERS AND SIGNS

5.1 Damage to Barriers. Alteration, damage or removal any barriers or other objects
indicating closure of the pool facility, restrooms or showers, including, without limitation, pool
gates, locks, fences, and caution tape, is prohibited.

5.2 Damage to Pool Signs. Removal or damage to signs pertaining to use of the pool
facilities is prohibited.

5.3 Reimbursement Assessment. Members who remove or damage any barriers or

pool signs, or whose tenants, family members, residents or guests do so, will be subject to a

Order: DW73HJD2H
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Pool COVID-19 Rules 7/1/20
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reimbursement assessment for the cost to repair or replace any such items. An unpaid
reimbursement assessment may be the subject of a lien on the Member’s separate interest.

ARTICLE 6: ENFORCEMENT

6.1 Strict Compliance by Residents. All residents are expected to strictly comply with
these rules and to adhere to any directive issued when using the pool amenities. Residents failing
to follow the rules and directives when asked may be required to immediately leave the pool
facility. The Board reserves the right to close the pool facilities if residents are not
complying with the rules.

6.2 Suspension of Rights. Failure to comply may result in suspension use privileges
as set forth in the Association’s governing documents.

6.3 Any Other Lawful Enforcement. All other enforcement mechanisms authorized
by the Governing Documents and California law, including seeking a court order to gain
compliance, may also be utilized.

ARTICLE 7: DISCLAIMER

7.1 No Guarantee of Virus Free Environment. The Association is unable to guarantee

that the common areas, including the pool facility are a COVID-19 free zone. Users
acknowledge they are using the pool facility at their own risk.

Order: DW73HJD2H
Adopted on ______________.
July 16, 2020 Address:Page
23693 Sharon Oaks Dr
Pool COVID-19 Rules 7/1/20
Order Date: 01-03-2023
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 Waiver may be completed online at www.sharonoaks.org/pools
or emailed to [email protected]. Thank you!
SHARON OAKS ASSOCIATION

ACKNOWLEDGMENT AND HOLD HARMLESS – COVID-19

Property address: _________________________________________________________

Resident User’s Name (please print): _____________________________________________

Property Owner’s Name (if different from resident user): _____________________________

I, ______________________________, am the resident of the above-mentioned property

location. I desire to use SHARON OAKS ASSOCIATION’s (“Association”) community pool
facilities during the ongoing COVID-19 pandemic.

I hereby agree to adhere to the current rules governing use of the community pool facilities,
including social distancing, which means I must stay at least six (6) feet from other people
(excluding household members), while in the pool facility and in the water. I also agree to take
all reasonable precautions to protect myself and others. This includes wearing face covering at
all times outside the water and disinfecting any frequently touched surfaces I come into contact
with, such as; tables and countertops, light switches, sinks, faucets, toilets, doorknobs, gate,
latch, and handrails.

By signing below, I acknowledge the Association’s Common Areas, including the pool facilities
are not a COVID-19 free zone. I acknowledge the contagious nature of COVID-19 and that
entering and using the Association’s common area amenities including the pool, restrooms and
pool area may expose me to infection, personal injury, illness, permanent disability or death. I
agree to enter and use the Association’s common facilities, at my own risk.

I hereby agree to fully release and hold harmless the Association and its officers, directors,
employees, agents, attorneys, insurance carriers, successors and assigns (“Released Parties”)
FROM ALL LIABILITIES, CAUSES OF ACTION, CLAIMS AND DEMANDS (including
attorneys’ fees and costs) that arise in any way from any illness, injury, loss, harm, or death
that occurs to me arising from use of the Common Area pool and related facilities, plus any other
common area during the COVID-19 pandemic. This RELEASE AND HOLD HARMLESS
includes claims for the negligence of the Released Parties. This RELEASE does not extend to
claims for gross negligence, intentional or reckless misconduct, or any other liabilities that
California law does not permit to be excluded by agreement. I also agree NOT TO SUE or make
a claim against the Released Parties for illness, injury, loss, harm or death that may occur.

I HAVE READ THE FOREGOING AGREEMENT AND I ACCEPT AND AGREE TO

THE PROVISIONS IT CONTAINS AND HEREBY EXECUTE IT VOLUNTARILY
WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

Date:

Signature:

Print Name:

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Adopted on ______________.
July 16, 2020
Order Date:
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 Waiver may be completed online at www.sharonoaks.org/pools
or emailed to [email protected]. Thank you!
If participant is a minor, signature of parent or responsible adult is required below:

In consideration of the minor child being permitted to enter and use the Association’s pool
facility during the COVID-19 pandemic, I accept and agree to the full contents of this agreement.
I certify that I have the authority to sign on behalf of the minor child and to make decisions for
the minor child regarding use of the Association’s pool facility. I also agree to RELEASE AND
HOLD HARMLESS the Released Parties (defined above) from all liabilities and claims that
arise in any way from any illness, injury, loss, harm or death that occurs to the minor child in
any way related to entering and use of the Association’s pool facility. This includes any claim of
the minor and any claim arising from the negligence of the Released Parties. I understand that
nothing in this agreement is intended to release claims for gross negligence, intentional, or
reckless misconduct, or any other liabilities that California law does not permit to be excluded by
agreement.

Date:

Parent/Responsible
Adult Signature:

Print Name:

Relationship to Minor:

Names of Minors: __________________________________________

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Adopted on ______________.
July 16, 2020
Order Date:
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 Date Adopted 8/24/2011
Sharon Oaks Association
ASSESSMENT COLLECTION POLICY
Notice to Members:
This document sets forth the Association's policy regarding the collection of assessments pursuant to the Association's Governing
Documents and California Civil Code Sections 5600 - 5740.

1.0 Assessments in General.

The Association has a duty to levy regular and special assessments sufficient to perform its obligations under the governing documents
and California law. Regular assessments are determined at least once annually and are payable during the year in Monthly installments
or at such other intervals as the Board of Directors shall designate. The Association shall distribute the written notice described in Civil
Code Section 5730 to each member of the Association during the 60-day period immediately preceding the beginning of the
Association’s fiscal year.
2.0 Obligation to Pay Assessments.
A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney's fees, if any, and
interest, if any, as determined in accordance with Civil Code Section 5650, shall be a debt of the owner of the separate interest at the
time the assessment or other sums are levied. Each assessment or charge is also a lien on the owner's property from and after the time
the Association causes a Notice of Delinquent Assessment (Lien) to be recorded with the County Recorder's Office of the County in which
the property is located.
3.0 Monetary Charge for Reimbursement to Association for Damage to Common Areas and Facilities.
A monetary charge imposed by the Association as a means of reimbursing the Association for costs incurred by the Association in the
repair of damage to common areas and facilities for which the member or the member's guests or tenants were responsible may
become a lien against the member's separate interest enforceable by the sale of the interest under Sections 2924, 2924b, and 2924c,
provided the authority to impose a lien is set forth in the governing documents.

4.0 Monetary Penalty Imposed by the Association as a Disciplinary Measure.

A monetary penalty imposed by the Association as a disciplinary measure for failure of a member to comply with the governing
instruments, except for the late payments, may not be characterized nor treated in the governing instruments as an assessment that
may become a lien against the member's subdivision separate interest enforceable by the sale of the interest under Sections 2924,
2924b, and 2924c.
5.0 Notice of Assessments.
Not less than 30 days nor more than 60 days before any increase in the regular assessment or any special assessment becomes due, the
Association will give the owners notice of the assessment. Notice will be sent by first-class mail to addresses on the membership register
as of the date of notice. The Association can deliver notice of change of assessments via e-mail, if the owner has agreed in writing to
accept Association documents via e-mail. The Board of Directors may elect from time to time to provide additional periodic statements
of assessments and charges, but lack of such statements does not relieve the owners of the obligation to pay assessments.
6.0 Designation of Agent.
The Board of Directors may designate an agent or agents to collect assessment payments and administer this Assessment Collection
Policy. Such designated agent may be an officer of the Association, manager, collection service, banking institution, law firm, attorney or
other appropriate agent. A.S.A.P. Collection Services at 331 Piercy Road, San Jose, CA 95138 (408) 363-9600 is one of the designated
agents authorized to administer this policy.

7.0 Association Cannot Voluntarily Assign or Pledge the Association’s Right to Collect.
An Association may not voluntarily assign or pledge the Association's right to collect payments or assessments, or to enforce or foreclose
a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under
federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the Association; however,
the foregoing provision may not restrict the right or ability of an Association to assign any unpaid obligations of a former member to a
third party for purposes of collection. After the expiration of 30 days following the recording of a lien per the Covenants, Conditions and
Restrictions (CC&R’s), the lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee
designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to Section 2934a. Any sale by the trustee
shall be conducted in accordance with Sections 2924, 2924b, and 2924c applicable to the exercise of powers of sale in mortgages and
deeds of trusts. The fees of a trustee may not exceed the amounts prescribed in Sections 2924c and 2924d.

8.0 Due Date/ Delinquency Date of Assessments.

Unless otherwise specified by the Board or the governing documents,
Order: an assessment is due on the first of each month. An assessment,
DW73HJD2H
or any portion thereof, is delinquent if it has not been received as directed by the Board or its designated agent 15 days after it is due.
Address: 2369 Sharon Oaks Dr
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 9.0 Late Charges and Interest on Delinquent Amounts.
Delinquent accounts become subject to the following additional charges as contained in Civil Code section 5650 and the governing
documents: costs of collection including reasonable attorney's fees; a late charge of $10 or 10% of the delinquent assessment, whichever
is greater and interest on all sums (including the delinquent assessment, collection fees and costs, and reasonable attorney’s fees) at an
annual interest rate not to exceed 12.00% commencing 30 days after the assessment becomes due; whether or not charged prior to
collection. If it is determined the assessment was paid on time to the association the owner will not be liable to pay the charges, interest,
and costs of collection.
10.0 Collection Charges.
Any costs and fees *incurred in setting up, processing and collecting delinquent amounts, including, without limitation, late charges,
statement charges, monthly administrative charges, charges for preparation of delinquency notices or forward to collection charges, or
request for a payment plan as well as the recordation of a lien or initiation of foreclosure proceedings, postage, copies, envelopes,
labels, filing and recordation charges, delivery charges, and attorney's fees and costs, title searches, bankruptcy searches, pulling copies
of grant deeds or property ownership history, address and or phone number verification searches, in addition to any other charges
necessary to collect a delinquent assessment shall become an additional charge against the owner and the owner's property and shall be
subject to collection action pursuant to this Policy.
*Incurred means as the services are provided, they are added to the owner's account.

11.0 Application of Payments.

If partial payments are accepted, they must be applied pursuant to Civil Code 5655: first to assessments owed, then when those are paid
in full, payments shall be applied to the fees and costs of collection, then attorney's fees, then late charges, or interest. Owners may
request a receipt and the association shall provide it. The receipt shall indicate the date of payments and the person who received it.
Payments may be required to be made in certified funds, i.e. cashier's check or money order.

12.0 Initial Delinquency Notice.

Once an assessment, or any portion thereof, has become delinquent, the owner may receive an initial delinquency notice stating all
amounts past due and any known collection charges imposed as of the date of the notice, which may be in the form of a letter, monthly
statement, past due notice, or any other form of writing or notice from the Association or its designated agent.
13.0 Notice of Intent to Record a Lien.
If an assessment account remains unpaid for 45 days after it is due, the Association or its designated agent shall, at least 30 days prior to
recording a lien upon the separate interest of the owner of record, notify the owner in writing by certified mail all of the notice
requirements pursuant to Civil Code Section 5660. Prior to recording a lien for delinquent assessments, the owner has the right to
request to participate in dispute resolution pursuant to the Association' s "Meet and Confer" program required in Civil Code Sections
5900 - 5920. A copy of the "Meet and Confer" Offer and Procedure is attached to this collection policy as an ADDENDUM titled
"ADDENDUM TO ASSESSMENT COLLECTION POLICY: OFFER FOR INTERNAL DISPUTE RESOLUTION (IDR), MEET AND CONFER, AND ADR."

14.0 Recording of Lien.

At the expiration of 30 days following the Notice of Intent to Record a Lien, the Association or its designated agent will without further
notice to the owner, record a lien against the owner's property. The notice of delinquent assessment shall be mailed in the manner set
forth in Section 2924b, to all record owners of the owner's interest in the common interest development no later than 10 calendar days
after recordation.
15.0 Association Lien Subordination.
A lien created pursuant to 14.0 Recording of Lien shall be prior to all other liens recorded subsequent to the notice of assessment,
except that the declaration may provide for the subordination thereof to any other liens and encumbrances.
16.0 Recording of Release of Lien.
A release of lien will not be recorded until the entire balance of the owner's account is paid in full. All charges incurred in recording a
Release of Lien, including reasonable attorney or agent fees and costs, will be charged to the account. Within 21 days of payment in full
the Association shall record or cause to be recorded in the office of the county recorder a release of lien or notice of rescission and
provide the owner of the separate interest a copy of the recorded release of lien.

17.0 Lien Recorded In Error.

If it is determined that a lien previously recorded against a separate interest was recorded in error, the party who recorded the lien shall,
within 21 calendar days, record or cause to be recorded in the office of the county recorder, a release of lien or notice of rescission and
Order: DW73HJD2H
provide the owner of the separate interest a copy of the recorded document with a declaration stating that the recording was in error.
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 18.0 Foreclosure.
Judicial or Non Judicial foreclosure proceedings may not begin until the amount of the delinquent assessments secured by the lien,
exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, equals or exceeds one
thousand eight hundred dollars ($1,800) or the assessments are more than 12 months delinquent. Prior to initiating a foreclosure for
delinquent assessments, the association will offer the owner and, if so requested by the owner, shall participate in dispute resolution
pursuant to the association's "Meet and Confer" program required in Civil Code Sections 5900 - 5920 or alternative dispute resolution
with a neutral third party pursuant to Civil Code Sections 5925 - 5965. The decision to pursue dispute resolution or a particular type of
alternative dispute resolution shall be the choice of the owner, except that binding arbitration shall not be available if the association
intends to initiate a judicial foreclosure. A copy of the "Meet and Confer" Offer and Procedure is attached to this collection policy as an
ADDENDUM titled "ADDENDUM TO ASSESSMENT COLLECTION POLICY: OFFER FOR INTERNAL DISPUTE RESOLUTION (IDR), MEET AND
CONFER, AND ADR."
19.0 Deed in Lieu of Foreclosure.
Nothing in this section or in subdivision (a) of Section 726 of the Code of Civil Procedure prohibits actions against the owner of a
separate interest to recover sums for which a lien is created or prohibits an association from taking a deed in lieu of foreclosure.

20.0 Payment Plan Agreement.

An owner of a separate interest may submit a written request to meet with the Board of Directors, in executive session, to discuss a
payment plan agreement to allow the owner to make periodic partial payments on the entire balance of the assessment account in
addition to assessments that will accrue during the payment plan period. The Association has no obligation to enter into such a payment
agreement. If the Association accepts an agreement with the owner it shall be reasonable, as determined by the Board in its sole
discretion, and in accordance with the standards for payment plans, if any exist. The payment agreement shall be in writing and will
include a provision that additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms
of the payment plan. Interest and administrative charges will accrue until the account is paid in full. The agreement will also include a
provision that in the event of a default on the payment plan, the Association may resume its efforts to collect the delinquent assessments
from the time prior to entering into the payment plan. A lien will be recorded against the property to secure debt for the Association.
The owner will be charged for the additional collection fees and costs to administer the payment plan. Payment plan requests outside of
the Association's payment plan standards require Board approval. The board may designate a committee of one or more members to
meet with an owner .
21.0 Validation of Debt.
Unless an owner disputes the validity of the debt, or any portion thereof, within 30 days after receipt of the notice pursuant to 13.0
Notice of Intent to Record a Lien, the debt will be assumed to be valid. Validation of the debt will be provided in writing, at no additional
cost to the owner and will include 1) an itemized statement of the charges owed by the owner, including items on the statement which
indicate the amount of any delinquent assessments, the fees and reasonable costs of collection, reasonable attorney’s fees, any late
charges, and interest, if any 2) the Association’s name and 3) the Association’s mailing address.
22.0 Disputes.
Federal law states that initial dispute can be either oral or in writing. State law requires disputes to be in writing. It is therefore
recommended that all disputes be put in writing to avoid misunderstanding.
23.0 Internal Dispute Resolution (IDR) Procedure, Meet And Confer.
An owner has the right to dispute the assessment debt by submitting a written request for dispute resolution to the Association
pursuant to the Association’s “Meet and Confer” program required in Civil Code Sections 5900 - 5920. A copy of the "Meet and Confer"
Offer and Procedure is attached to this collection policy and serves as an official offer to the owner. See attached ADDENDUM titled
"ADDENDUM TO ASSESSMENT COLLECTION POLICY: OFFER FOR INTERNAL DISPUTE RESOLUTION (IDR), MEET AND CONFER, AND ADR."

24.0 ADR - Alternative Dispute Resolution.

An owner has the right to request alternative dispute resolution with a neutral third party pursuant to Civil Code Sections 5925 - 5965
before the Association may initiate foreclosure against the owner’s separate interest, except that binding arbitration shall not be
available if the Association intends to initiate judicial foreclosure. A summary of the ADR - Alternative Dispute Resolution Civil Code
5965 is attached as an ADDENDUM to this policy titled "ADDENDUM TO ASSESSMENT COLLECTION POLICY: OFFER FOR INTERNAL
DISPUTE RESOLUTION (IDR), MEET AND CONFER, AND ADR."

25.0 Owner has Right to Request Meeting with Board.

An owner has the right to request a meeting with the board. The board shall meet with the owner in executive session within 45 days of
the postmark of the request, if the request is mailed within 15 days of the date of the postmark of the notice 13.0 Notice of Intent to
Order: DW73HJD2H
Record a Lien, unless there is no regularly scheduled board meeting within that period, in which case the board may designate a
committee of one or more members to meet with the Address:
owner. 2369 Sharon Oaks Dr
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 26.0 Owner has Right to Review Association Records.
Owner has the right to review the Association records, pursuant to Civil Code Section 5205. Owner should contact the Association’s
managing agent for the policies and procedures set forth to inspect the records.

27.0 Dispute Resolution, Meet And Confer Procedure Civil Code Section § 5920. See attached Addendum titled "ADDENDUM TO
ASSESSMENT COLLECTION POLICY: OFFER FOR INTERNAL DISPUTE RESOLUTION (IDR), MEET AND CONFER, AND ADR."

28.0 Other Remedies.

The Association reserves the right to avail itself of any other remedy permitted by law and the Association's governing documents to
collect assessments and related costs and charges, including but not limited to bringing an action in Small Claims or Superior Court. Such
remedies may be taken in addition to, or in lieu of, any action already taken, and commencement of one remedy shall not prevent the
Association from electing at a later date to pursue another remedy.
29.0 Address of the Association and the Board of Directors.
For the purpose of OVERNIGHT PAYMENTS owners are directed to use the same mailing address that is used for mailing routine
assessment payments, unless otherwise directed by the designated agent. For the purpose of CORRESPONDENCE owners are directed to
use the mailing addresses of the designated agent, unless otherwise directed. These addresses are subject to change after the
distribution of this policy. Notification of a change will be in writing to the membership through normal day-to-day correspondence from
the association or its designated managing agent. It is the owners’ responsibility to note any changes for their records.
30.0 Returned Payments.
Payments returned for insufficient funds, closed account, stop payment or for any other reason will be charged back to the owners
account in addition to any administrative fee, bank fee or collection fees and costs incurred to handle the returned payment. Personal
checks will not be accepted if two (2) payments are “Returned” by the bank for any reason.
31.0 Sufficiency of Notice.
Except for notice that under California law must be sent by certified mail, notice is sufficient if either hand delivered or mailed first class,
postage prepaid, to the owner at the address on the membership register at the time of notice. Notice is presumed received three (3)
days after notice was mailed.

32.0 Owner's Change of Address.

Owner is required to notify the Association of any change in the owner’s name or mailing address. Upon receipt of a written request by
an owner identifying a SECONDARY ADDRESS for purposes of collection notices, the Association shall send additional copies of any
notices required by this section to the secondary address provided. The owner's request shall be in writing and shall be mailed to the
Association in a manner that shall indicate the Association has received it. The owner may identify or change a secondary address at any
time, provided that, if a secondary address is identified or changed during the collection process, the Association shall only be required
to send notices to the indicated secondary address from the point the Association receives the request.
33.0 Void Provisions.
If any provision of this Policy is determined to be null and void, all other provisions of the Policy shall remain in full force and effect.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
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 ADDENDUM TO ASSESSMENT COLLECTION POLICY: OFFER FOR
INTERNAL DISPUTE RESOLUTION (IDR), MEET AND CONFER, AND ADR
DISPUTE RESOLUTION, MEET AND CONFER PROCEDURE CC §5920
WHO MAY START: This procedure may be invoked by the Association or an Owner. Either party may make a written request to meet and confer to
resolve a di spute. The Board shall designate a member of the Board to meet and confer.
WHO PARTICIPATES: When a written request for Dispute Resol ution is received from an owner, the Association shall participate. If the Association
makes a written request for an owner to participate, the owner may elect not to participate.
NON-PARTICIPATION BY THE OWNER: If the owner declines to participate, the Association may begin Alternative Di spute Resoluti on, pursuant to Civil
Code § 5930.
IF THE OWNER PARTICIPATES, THEN THE MEET AND CONFER TAKES PLACE:
A. The Association will act on a request by the owner within 45 days of receipt of the written request to meet.
B. The meeting shall be established in good faith, take place promptly at a mutually convenient date, ti me and location. Each party shall explain their
position and shall confer in good faith to resolv e the dispute. If an attorney or other person will be present to assist the owner, the Associ ation must be
notified i n writing 10 days pr ior to the established date. If notice is not given 10 days prior, the Association can request a continuance. Each party to
pay for their own costs.
C. An agreement resolving the dispute by the parties shall be made in writing and dated and signed by the parties, including the Board designee on
behalf of the Associ ation.
D. A written decision shall be made by the designated Board Member and delivered or receiv ed by the owner within ten (10) days after the meet and
confer.
E. If the owner participates, but t he dispute is resolved other than by agreement of the owner, the owner shall hav e the right to appeal to the
Association's Board of Directors.
APPEAL:
A. If the owner disputes the resol ution, an appeal must be taken to the Board of Directors within thirty (30) days of the date of the decision by the
designated Board member.
B. If there is an appeal, the Board must hear the Appeal at its next regularly scheduled meeting in executive session, then issue a written decision
wi thin ten (10) days.
NO CONFLICT:
A. The r esolution must not be in conflict with the law or the governing documents.
B. The agreement must be consi stent with t he authority granted to the Board of Director s or the Board must ratify the agreement.
C. The written agreement, which is dated and signed by the parties, will bind both parties and be judici ally enforceable.
NO FEE: No fee will be charged to the owner during this process.
EXCEPTIONS: Reasonable exceptions may be made to the time deadlines, in the discretion of the Board. Any excepti ons will be made on a case-by-case
basis.
TIME: The maximum time to act on a written request by the owner is forty-five (45) days. Initiation to completion of the di spute wil l take no more than
one hundred eighty (180) days, unless extended by both parti es.
ADR - ALTERNATIVE DISPUTE RESOLUTION CC §5925 - 5965 [SUMMARY] As of January 1, 2006
1. If an association, owner or member of an associati on seek s ei ther:
A. Declaratory or injunctive relief; or
B. Declaratory or injunctive relief and a claim for monetary damages not in excess of the jurisdictional limi ts of small claims court (as of
January 1, 2012: $10,000 for individuals or $5,000 for homeowner association), other than for association assessments, concerning the
enforcement of the governing documents; the parties shall submit their dispute to Alternative Dispute Resolution (ADR), such as
mediation or arbitration. A Request for Resolution (“Request”) begins the process and it shall include:
1) A description of the dispute;
2) A request for ADR
3) Notice that the party receiving the Request is required to respond within thirty (30) days or the Request will be deemed rejected.
C. This does not apply to small claims action.
D. Except as required by law, this does not apply to an assessment dispute.
2. A par ty on whom a Request for Resoluti on is served has 30 days following service to accept or reject the request. If a party does not accept the
request within that period, the request is deemed rejected by the party.
3. If the Request is accepted, ADR shall be completed within ninety (90) days from the date of accept ance, or it can be extended by a wri tten
stipulation signed by both parties.
"FAILURE OF A MEMBER OF THE ASSOCIATION TO COMPLY WITH THE ALTERNATIVE DISPUTE RESOLUTION REQUIREMENTS OF S ECTION 5930
OF THE CIVIL CODE MAY RESULT IN THE LOSS OF THE MEMBER’S RIGHT TO SUE THE ASSOCIATION OR ANOTHER MEMBER OF THE ASSOCIATION
REGARDING ENFORCEMENT OF THE GOVERNING DOCUMENTS OR THE APPLICABLE LAW."
Order: DW73HJD2H
Unless otherwi se stated by t he Association, this document serv es as the Association’s OFFER FOR INTERNAL DISPUTE RESOLUTION (IDR), MEET AND
Address: 2369 Sharon Oaks Dr
CONFER, AND ADR and it serves as its procedure for the same.
Order Date: 01-03-2023
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 Insurance Responsibility according to the CC&Rs
Homeowner associations (HOA) are a unique group. There are two entities that make up an HOA,
the Homeowners Association as a legal entity (usually a corporation) and the individual unit
owners/members of the association.

Early on the association must determine its insurance responsibility and needs. An association
typically chooses one of three levels of responsibility. These levels are known as:

• Bare walls: this is where, in the event of a loss, the association has accepted the responsibility of
rebuilding the structure to the bare walls.

• Original Construction: this is where, in the event of a loss, the association has accepted the
responsibility of rebuilding the structure to its original construction.

• Betterments & Improvements: this is where, in the event of a loss, the association has accepted
the responsibility of rebuilding the structure to include betterments & improvements, whether
made by the association or an individual unit owner.

*After a careful review, Sharon Oaks Association’s CC&Rs have been interpreted to provide for:

• Betterments & Improvements: this is where, in the event of a loss, the association has
accepted the responsibility of rebuilding the structure to include betterments &
improvements, whether made by the association or an individual unit owner.

* Please note that the carrier's interpretation of the CC&Rs will supersede ours in the event of a
loss.

Notice to Owners to Carry an HO6 Unit-owners Package Policy and Earthquake

Loss Assessments Coverage
The current master policy for Sharon Oaks Association is extremely broad as insurance policies go, and
covers all parts of the building including additions and alterations you have made to the building at any
time, within the guidelines of the CC&Rs. This includes not only the structure, but also building items
such as wall to wall carpets, draperies, wall coverings, cabinets and fixtures (and upgrades to these items)
and things which are generally attached to the building with nails, screws or glue.

As is standard on all homeowner's association master policies, there are exposures which are NOT
covered by the association's master insurance policies. The major ones are outlined below. In no case does
the association's master policy cover the personal property, loss of use (or rental income) and personal
liability of unit owners and their tenants. Whether you live in the unit or rent it out, each owner should
carry what is commonly known as an HO6 policy to cover the following exposures.

A. Building — The only building exposure that Sharon Oaks Association owners currently need to
cover with their HO6 policy would be the $2,500 property deductible on the master policy, which
could be levied against the unit owner(s) if the damage occurs within one or more units.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
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 B. Personal Property — such as furniture, clothes, etc. This is NOT intended for the personal property
of a tenant if you rent out your unit. They must carry a "renter's policy" known as an HO4.

C. Loss of Use — of your unit should a covered loss occur. This could pay for things such as hotels or
rent in a temporary apartment or home after a covered property loss. If you rent your unit to others,
this coverage could pay for the loss of rental income to you during the repairs.

D. Loss Assessments (other than earthquake) — This could pay the unit owners' share of an assessment
to cover certain losses to association property that result in an assessment being made by the
association due to inadequate insurance. An example might be repair from a fire where the insurance
proceeds were not enough to cover the loss and a general assessment was made to pick up the
difference.

E. Personal Liability — such as a guest getting hurt while visiting you or your accidentally causing
bodily injury to another, such as when playing tennis, on or off the premises (not vehicle accidents).
If you rent your unit to others, this could be extended to cover the liability you have to a tenant who
may get hurt while occupying your unit. The Association recommends that Owners continuously
maintain personal liability insurance.

F. Earthquake Loss Assessment — In addition to these coverage's offered by the standard HO6 unit owner's
policy, you can also take a separate policy for losses due to earthquake for all of the A, B and C exposures
described above. This important coverage is known as earthquake loss assessments. It is typically sold as
part of the earthquake policy you can buy for your individual unit to cover your personal property or you
can buy EQ loss assessments coverage on its own. You can buy it from the same agent or broker you
use for your HO6 policy and depending on which insurance you have your HO6 with, you may
be offered an earthquake policy from that carrier or through the California Earthquake Authority.

The earthquake loss assessments coverage form is important whether or not the association carries earthquake
insurance. This is because even if there is a master earthquake policy, there is typically a large deductible of
15% of the "total insurable value" of the complex. That deductible would then be split up among all owners by
way of a special earthquake loss assessment. If there were no earthquake policy in force at all, there would be
an even larger assessment for each unit's share of the total earthquake damage. The earthquake loss
assessments coverage form can help pay the unit owners' share of the assessment due to an earthquake loss.
You should confirm with your agent or broker that your polices are integrated properly with the HOA's
policies.

Earthquake and Earthquake Loss Assessments Coverage

Most standard homeowners, mobile home, condominium, and renters insurance policies do not cover
earthquake damage. Similar to flood insurance, earthquake insurance usually must be purchased
separately. Residential property insurers (insurance companies that sell homeowners policies and
policies for qualifying condominiums and apartments) are required under California Insurance Code
(CIC) Section 10081 to offer earthquake coverage for the peril of earthquake.

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Address: 2369 Sharon Oaks Dr
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If you have purchased an HO6 you should have also been offered earthquake coverage. You should
have been given 30 days from the date of mailing from the insurance company to accept the offer of
earthquake coverage, if your homeowners insurance company does not receive a response from you,
then they can consider the offer rejected.

If you didn't accept your property insurer's earthquake coverage, you may want to contact a broker-
agent to assist you with securing a monoline "stand-alone" policy. Stand-alone policies are offered by a
few specialty insurance companies who do not require you to purchase your homeowners insurance
from them in order to offer you earthquake coverage. They offer a stand-alone policy, which is referred
to as a monoline policy (one line of insurance) by the insurance industry.

In California there is another option, the California Earthquake Authority also known as the CEA. The
CEA has more than 800,000 policies in force, representing about 70 percent of all residential
earthquake insurance policies sold in California. CEA earthquake insurance policies are sold and
serviced exclusively through CEA's participating insurance companies California law requires you to
have a residential insurance policy in-force with a CEA participating insurance company in order to
have a CEA earthquake policy. Participating insurance companies process all CEA policy applications,
policy renewals, invoices, and payments and handle all CEA claims.

Whether purchasing through a standard earthquake carrier or the CEA, every offer of earthquake
insurance must provide coverage for your dwelling, your personal property, and for any additional
living expense (ALE). You may waive ALE coverage if you or your family does not occupy the
dwelling you wish to insure. In addition we recommend that you purchase earthquake loss assessment
coverage.

What is Earthquake Loss Assessment and what does it cover?

In condominium communities, the exterior of buildings, certain building components, and common
areas are typically owned by all the condominium owners as a group. In the event of earthquake
damage to such property, the association may, in accordance with its bylaws, impose an assessment
against all members of the association to pay for exterior or structural repairs.

This coverage is unique to condominium owners, in that if damage from an earthquake occurs and
the losses are not fully covered by the association's master insurance policy, Loss-Assessment
coverage may help you pay for your share of certain assessments the association may impose on all
property owners in your condominium development.

A partial list of assessments not covered are those made to pay for the repair of non-residential
structures, awnings, patio coverings, pools, spas, club houses, artistic features, or separate parking
structures.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 SHARON OAKS ASSOCIATION
AMENDMENT TO
RULES & REGULATIONS
Adopted September 26, 2017

PORTABLE BASKETBALL STANDARDS:

As provided by Section 9.19 of the CC&Rs, no fixed basketball standards or fixed sports
apparatus shall be attached to any Townhouse or garage or erected on a lot.

Portable basketball standards (“hoops”) may be placed and used in a homeowner’s Townhouse
driveway, subject to the following restrictions:

1. The homeowner must register the portable basketball standard with the Association, on a
form provided by the Association, prior to its placement and use. Homeowners are
strongly encouraged to discuss in advance with the Association’s Architectural
Committee any plans for a portable basketball standard prior to its purchase to ensure that
the intended placement and use is consistent with these rules.

2. Hoops may be placed and used only on or immediately adjacent to and facing a
homeowner’s driveway. Hoops may not be placed in or used on common area (except as
provided by this rule), or in streets.

3. Hoops must be moveable and must be of a reasonable size, in the sole judgment of the
Board.

4. Hoops must be mechanically sound, clean, and well maintained. Owners may not permit
hoops to become unsafe or unsightly or to be placed or used in a manner inconsistent
with these rules, and the Board, in its sole judgment, may require the removal of
noncompliant hoops at the homeowner’s expense.

5. Hoops, players, or balls must not be permitted to damage surrounding common area,
landscape, structures, vehicles, or signage in common areas or other owners' property. A
homeowner shall be liable for all damage resulting from the placement and use of the
homeowner’s portable basketball standard.

6. Hoops may not be positioned to encourage playing in common area adjacent to a

neighbor’s Townhouse or lot, or in a street.

7. Hoops may be used only during the hours of 9:00 a.m. to 8:00 p.m.

8. This rule grants a temporary, revocable license for the reasonable use and storage of
portable basketball standards by homeowners and residents consistent with these rules.
The Board, in its sole discretion, may revoke this license with respect to any homeowner
or resident at any time.

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
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 Sharon Oaks Association
Indemnification Agreement

I, ____________________________________________________, owner of property located at

_____________________________________________, do hereby assume all responsibility,
both legal and financial, for any and all damages to any exterior surfaces or damages of a
structural or personal nature that my architectural changes may cause.

Further, I understand that I am solely responsible for the maintenance and repair of my
alteration.

My alteration consists of:

My alteration will conform to all current building codes and to the specifications of this
Association. I shall obtain all necessary inspections and permits. A copy of such permits will be
available to the Association upon demand.

I understand that this Agreement must be transferred to any future owner of this unit. I further
agree to notify any future owner of the existence of this form and that the terms and conditions of
this agreement will be binding on the new owners.

Owner(s) Date

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Regular Meeting Minutes (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held June 16, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 3

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Sam Tam, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng*, Jack Cackler, and Mitzi Moynihan.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: No news was reported.
4.2. Landscape: Ongoing business was reviewed.
4.2.1.Committee structure and chair(s): It was noted that an agreement had been reached regarding
committee operations and divisions of responsibilities within the committee, with Mitzi serving as
the committee chair and delegating responsibilities internally within the committee. The board
approved of this arrangement as long as it works well for the committee.
4.2.2.Gachina and Urban projects (recently approved/completed; monitoring and status updates): The
board delegated approval of pending Gachina proposals to the committee, subject to the following
committee expenditure authorization.
4.2.3.Budgetary approvals/expenditure authorizations: The board voted to approve giving the landscape
committee chair the authority to approve landscaping and irrigation proposals and expenditures
submitted by Gachina without bringing them before the board for a board vote, on the conditions
that: 1. The committee reviews and approves of all proposals, 2. that no single project may exceed
$5000 without board approval, and 3. that the committee’s total expenditure approvals for any
given year may not exceed the dollar amounts allocated in the current annual association budget
for landscaping extras and irrigation expenses without board approval; MSC.
4.3. Pool: Report received that everything is going well. Clubhouse is being rented regularly. The committee
also reported that they would be working on a proposal for some remodeling of the clubhouse for the
board to consider.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: No news to report. Contract is currently in process of being finalized.
4.7. Parking: Discussion was held regarding parking. The board’s decision regarding the parking rules is
recorded below under item 6.3.
5. Maintenance Projects – Planned or In Progress
5.1. Preliminary clubhouse remodel options – review: Tabled.
5.2. Common sewer lines; potential maintenance: Jo Anne noted that she is currently investigating options.
Tabled for now.
5.3. Shake roofing replacement project (Large project; Beginning of project/monitoring): It was noted that
the contract with Sigler is being reviewed and finalized. Tabled.
5.4. Storm water drainage issues; repair options (Planning/discussion phase): It was noted that options are
still being evaluated, including awaiting feedback on potential options.
5.5. Exterior painting; Group C 2022 phase (Approved and starting in progress/monitoring): Tabled pending
input from the Architecture Committee.
Order: (Approved
5.6. Concrete repairs/replacements proposals DW73HJD2Hand pending/monitoring): It was noted that some
concrete work is already approved Address: 2369
and pending Sharon
completion Oaks
in July. Dr action needed.
No board
Order Date: 01-03-2023
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held June 16, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 3

6. Administrative Projects – Planned or In Progress

6.1. Governing documents (CC&Rs and Bylaws) restatement/update (In progress - Questionnaire): This
project is in progress. The board has held additional working session board meetings recently for the
purpose of reviewing and answering the questionnaire and listing questions/feedback for the
attorneys. It is expected that it will take additional board time in the future to continue to work on this
for the foreseeable future.
6.2. Solar system rules: A draft from Adams Stirling was reviewed and tabled pending further review and
feedback/requested possible changes.
6.3. Architectural and other potential rules updates
6.3.1.Parking rules: The board deliberated upon the current parking rules. Following deliberation, the
board voted to approve drafting proposed new rules which would allow residents to park in their
driveways for up to 4 hours per day between the hours of 7AM and 10PM, and prohibit parking
overnight in driveways between the hours of 10PM and 7AM, MSC with Jack voting against. The
President and manager will work on draft rules for distribution to all homeowners for review.
6.4. 2022-2023 annual budget and assessments: Reviewed and tabled to the July board meeting to be
finalized.
6.5. Upcoming earthquake renewal; election: It was noted that the board would work on drafting the
informational letter for the annual election regarding which level of earthquake insurance to maintain,
and the board approved hiring TIE to act as the Inspector of Election for this vote, MSC.
7. Other Items
7.1. Pest control/wildlife: This topic was discussed and it was noted that Sharon Oaks does have wildlife in
the community, and that homeowners and residents should be mindful of this and take precautions as
individuals may determine to be reasonable. The board also agreed to allow volunteer homeowner
David Deming to review recommendations with third party agencies and professionals, and to collect
and report to the board regarding any findings. The board will consider any recommendations and
suggestions in good faith.
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
regular and executive meeting minutes from the March 19, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 9:00 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. Legal matters; Mediation/dispute resolution
12.2. Reimbursement request
12.3. Contracts
Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held June 16, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 3 of 3

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held May 3, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 1

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo*, Linda Teng*, Nancy Child, and Samuel Tam.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. Administrative
3.1. Governing documents (CC&Rs and Bylaws) restatement/update (In progress - Questionnaire): The
board reviewed and collaborated on completing Adams Stirling’s questionnaire for the governing
documents.
4. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
5. Adjournment: The board adjourned the meeting at 7:37 PM.
6. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
6.1. Hearing: The board conducted a homeowner hearing.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held April 21, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng*, Nancy Child, and Samuel Tam.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: No news was reported.
4.2. Landscape: Ongoing business was reviewed.
4.3. Pool: No news was reported.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: No news to report.
4.7. Parking: The board discussed the issue of parking generally and agreed that residents must follow the
current rules.
5. Maintenance Projects – Planned or In Progress
5.1. Shake roofing replacement project (Large project; Beginning of project/monitoring): It was noted that
the contract with Sigler is in process of final review with the assistance of Adams Stirling, and will be
signed once finalized.
5.2. Storm water drainage issues, proposal(s), options (Planning/discussion phase): The board reviewed
options for drainage improvements as proposed by vendors for different locations in the community.
Further discussion was tabled to executive session.
5.3. Asphalt paving (Planning/discussion phase): Paul reported on a review that was conducted with
Reliable Paving regarding the priority of asphalt relative to other projects in the community, and it was
generally agreed that given the roofing project and its anticipated expense, the asphalt in the
community is not the highest priority. The board agreed to postpone asphalt work except for localized
repairs or patching that may be needed on a case by case basis, until the roofing project’s total costs
have been more accurately determined.
5.4. Exterior painting; Group C 2022 phase (Approved and starting in progress): It was previously discussed
and agreed that the Architecture Committee has been delegated the authority to review the current
paint colors of a few addresses included in this group, and work with Ekim to decide whether or not to
modify their exterior color schemes to better match the rest of the homes in the community. No board
action needed at this time.
5.5. Concrete repairs/replacements proposals (Approved and pending): Proposals from Pineda Concrete
Construction are approved, including one for repairs to the pool area (which was recommended versus
replacement), and are just pending scheduling by the contractor.
5.6. Gachina proposals
5.6.1.The board reviewed and approved a mulch proposal for $4900, MSC.
5.6.2.The board approved replacement of some plants as proposed, MSC.
5.6.3.The board approved community wide irrigation repairs for $7900 as proposed, MSC.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Order:
Bylaws)DW73HJD2H
restatement/update (In progress - Questionnaire): Noted as
in progress. The board spent some Address:
time working 2369 Sharon
on this Oaksand
collaboratively Drwill conduct some extra
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 Sharon Oaks Association
Board of Directors Meeting
Minutes
For the meeting held April 21, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

meetings dedicated to more thoroughly reviewing and completing it.

6.2. Solar system rules: The board discussed and approved hiring Adams Stirling to draft Solar System Rules
and Requirements for the board to consider adopting, MSC. The board will review further upon receipt
of a draft.
6.3. 2022 Annual Meeting and Election (In progress, monitoring): No action needed; in progress.
7. Other Items
7.1. The board approved Jo Anne and Nancy to work on a potential social event with an approved budget of
$450.
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
regular and executive meeting minutes from the March 17, 2022 board meeting, MSC.
8.2. Review management status review: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 8:31 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. Legal matters – Mediation/dispute resolution process
12.2. Contracts
12.3. Reimbursement request
12.4. Long term parking permit request

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held March 17, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng, Nancy Child, and Samuel Tam.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: No news was reported.
4.2. Landscape: Ongoing business was reviewed. No new board decisions were made.
4.3. Pool: It was agreed upon to target opening the pool on April 16.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: The committee reported that it has met with the candidates for project management, and is
recommending C.L. Sigler to serve as the project manager for this project.
4.7. Parking: The board heard from a homeowner regarding a long term parking permit request, and tabled
the decision the next meeting.
5. Maintenance Projects – Planned or In Progress
5.1. Shake roofing replacement project (Large project; currently in planning phase with committee): The
board deliberated and voted to approve Sigler to serve as the roofing project manager subject to their
contract documents being reviewed and, if needed revised, by Adams Stirling, MSC. Paul will work with
A-S and Sigler on the next steps.
5.2. Stormwater drainage issues, proposal(s), options (Planning/discussion phase): The board reviewed
proposals for possible drainage modifications, and tabled further discussion to executive session.
5.3. Asphalt paving (Planning/discussion phase): The board discussed this and heard from Paul who recently
discussed project prioritization with Reliable Paving company. Following that discussion, it was
tentatively agreed to temporarily postpone most of the proposed work from Reliable Paving, due to it
being agreed that most of the work was not a high priority, and the roofing project is the priority at the
moment. For the foreseeable future, the board agreed to focus on the roof project, with spot/area
repairs being made to the asphalt when needed.
5.4. Exterior painting; Group C 2022 phase (Approved and starting in progress): It was noted that this is
approved pending an agreement between the architecture committee and Ekim Painting regarding a
few outstanding issues.
5.5. Concrete repairs/replacements proposals (Planning/discussion phase): The board reviewed and
approved three proposals from Pineda Concrete, for the large pool deck refurbishment, installation of a
new concrete path in the small pool area, and repair of a section of street gutter, MSC. It was agreed to
not replace the large pool deck and instead to just refurbish it as proposed by Pineda.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (Approved; In progress): Pending,
tabled.
6.1.1.The board discussed the possibility of homeowners potentially/likely desiring to install solar panels
once the new roofs are installed,
Order:and the board agreed that solar rules and procedures are needed
DW73HJD2H
in advance of that happening. The board voted
Address: 2369toSharon
approve having
OaksAdams
Dr Stirling draft solar rules
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held March 17, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

for the board to review and consider adopting, MSC. The board also agreed to inquiring with A-S
about options for installation of whole house batteries and other related questions at the same
time.
6.2. 2022 Annual Meeting and Election (In progress, monitoring): In progress. No action needed by the
board.
7. Other Items
7.1. None
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
regular and executive meeting minutes from the February 17, 2022 board meeting, MSC.
8.2. Review management report: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 8:37 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. Legal matters – Mediation/dispute resolution process
12.2. Contracts

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held February 17, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng, Nancy Child, and Samuel Tam.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: No news was reported.
4.2. Landscape: Ongoing business was reviewed. No new board decisions were made.
4.3. Pool: No new business at this time.
4.4. Finance: A general status of the financials was reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: The committee reported that it has been making progress on narrowing down the selection of
a project management contactor. No new board actions are needed at this time.
4.7. Parking: No news to report.
5. Maintenance Projects – Planned or In Progress
5.1. Shake roofing replacement project (Large project; currently in planning phase with committee): it was
noted this is pending recommendations from the roofing committee.
5.2. Stormwater drainage issues, proposal(s), options (Planning/review phase): The board is continuing to
review proposals and options from vendors as they are received, and is still waiting on some proposals.
Tabled pending further review.
5.3. Asphalt paving (Planning phase): The board discussed this and it was noted that the high anticipated
cost of the roofing project may need to take priority over some of the asphalt work. Tabled for further
discussion.
5.4. Exterior painting; Planning for 2022 phase: The board reviewed the “Group C” painting proposal from
Ekim Painting, and approved it as presented, MSC. The board also reviewed and approved to authorize
the Architectural Committee to work with Ekim to arrange for the paint colors on addresses 2408,
2410, and 2413 to be modified to have them match the rest of the community, MSC. The committee
will work with Ekim on this to determine how to proceed and address that before Ekim proceeds with
the work.
5.5. Concrete repairs/replacements proposals: Tabled pending receipt of an updated proposal from Pineda
Construction.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (Approved; In progress): This has
already been approved and Adams Stirling has been authorized to work on it.
7. Other Items
7.1. None
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
meeting minutes from the January 20, 2022 board meeting, MSC.
8.2. Review management report: A report was provided to the board for review.
9. Financial Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held February 17, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 8:26 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. Legal matters – Mediation/dispute resolution process

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held January 10, 2022 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 1

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo, Linda Teng, Nancy Child, and Samuel Tam.
2. Inspector of Election Appointment and Services: The board reviewed and deliberated on options for election
administrations. The board voted to approve “The Inspectors of Election” company to act as the
Association’s inspector of election and approved all necessary or optional services offered by their company,
as proposed, to allow them to run the entire election process, MSC.
3. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
4. Adjournment: The board adjourned the meeting at 7:45 PM.

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held December 16, 2021 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 1 of 2

1. Call to Order/Roll Call: Called to order at 7:00 PM.

1.1. Directors roll call (* denotes absent): President Paul Flynn, Vice President Mitzi Moynihan, Treasurer Bill
Hoffman, Secretary Jo Anne Kondo*, Linda Teng, Nancy Child, and Samuel Tam.
2. Business from the floor/Homeowner forum: Time was provided for homeowner members of the association
to address the board of directors.
3. President’s Report: The President provided a status report on recent and ongoing business.
4. Committees: Committee reports and any related board decisions that may be needed.
4.1. Architectural: No news was reported.
4.2. Landscape: Ongoing business was reviewed. It was noted that the committee has been working with
Gachina to revise the proposal for the landscaping near the new stairs. Estimated cost should be no
more than $4000-$4300. The board voted to pass the following resolution to allow the new proposal to
be reviewed and approved by the board president when received without waiting for another board
meeting: Resolved that the president of the association has the standing authority of the board to
approve, at the president’s discretion, any service proposals/contracts as long as they do not exceed
$5000, MSC.
4.3. Pool: A status update was provided and reviewed. It was noted that a group of homeowners had
approached the board president to allow the small pool heater to remain on longer in December on the
condition that those homeowners reimburse the HOA for the cost of heating, and the president had
reached an agreement with them and approved doing this. The small pool heater was subsequently left
on until December 13 and then shut off, and those homeowners will be billed to reimburse the HOA for
the extra heating costs.
4.4. Finance: A general status of the financials was provided and reviewed.
4.5. Community Preparedness: It was noted that this is a dormant committee. Volunteers, if any are
interested in running this committee, are welcome.
4.6. Roofing: The committee is in the stage of considering and evaluating project management companies
to oversee the project.
4.7. Nominating: No news to report.
4.8. Parking: No news to report.
5. Maintenance Projects – Planned or In Progress
5.1. Shake roofing replacement project (Large project; currently in planning phase with committee): Noted
as in progress.
5.2. Site drainage proposal(s) (Planning phase): Proposals have been received for drainage concerns at 2351
SOD. Deferred to executive session for further review.
5.3. Asphalt/paving (Planning phase): A proposal is in hand for asphalt and concrete repairs in the
community. Tabled pending further review.
5.4. Exterior painting; 2021 phase (Approved; in progress): It was noted that the 2021 phase of painting by
EKIM Painting appears to be complete. Completion will be reviewed with EKIM and planning will begin
soon for the 2022 phase.
5.5. Concrete proposals: Tabled pending further review.
6. Administrative Projects – Planned or In Progress
6.1. Governing documents (CC&Rs and Bylaws) restatement/update (Approved; Pending next steps):
Tabled, Paul will be speaking with Adams Stirling to review their proposal further.
Order:
6.2. Parking enforcement services: Tabled. The DW73HJD2H
board has approved considering hiring a professional parking
enforcement service, but the chairAddress: 2369
of the parking Sharon
committee, Nili,Oaks Dr interest in continuing
has expressed
Order Date: 01-03-2023
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Sharon Oaks Association

Board of Directors Meeting
Minutes
For the meeting held December 16, 2021 at 7:00 PM
Via Zoom Video/Teleconference (Participation instructions were on the meeting notice)
MSC = Motion made, seconded, and carried unanimously unless individual votes are recorded otherwise
Page 2 of 2

to serve in that role. Paul and Sam will meet with Nili to review expectations and procedures further.
7. Other Items
7.1. Inspector of election; New election requirements: Tabled pending receipt of proposals for
consideration.
8. Administrative
8.1. Review and approve prior board of directors meeting minutes: The board reviewed and approved the
regular and executive session minutes from the November 18, 2021 board meeting, MSC.
8.2. Review management report: A report was provided to the board for review.
9. Financial
9.1. Review monthly financial reports: The board reviewed the reconciled, unaudited monthly financial
reports as provided by management.
9.2. Review and actions on aged receivables: The board reviewed aged receivables and approved
continuation of ongoing collection services by A.S.A.P. Collections as may be needed.
10. Confirm next meeting date: The normal meeting schedule is the third Thursday of each month at 7:00 PM.
11. Adjournment: The board adjourned the meeting at 8:04 PM.
12. Executive Session: If any decisions are made in executive session, then separate minutes will be recorded for
those decisions. The following is a general summary of the topics that were addressed in executive session:
12.1. Legal matters – Mediation/dispute resolution
12.2. Contracts
12.2.1. New Gachina Contract

____________________________________________________________________________
Board/Secretary Signature
Minutes are “Draft” until they are signed by the Board

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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Annual Budget Report (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 SHARON OAKS ASSOCIATION Board Approval Date:
FY23 OPERATING FUND BUDGET 8/18/2022
October 1, 2022 - September 30, 2023

$990.00 Monthly Owner Assessment $960.00

% Change Difference
FY22 FY22 FY23 Per Unit from FY22 FY23 Budget vs.
Budget Est. Actual Budget Per Month Est. Actual FY22 Est. Actual

INCOME
$ 1,069,200.00 $ 1,069,200.00 Assessments $ 1,036,800.00 $ 960.00 -3.03% $ (32,400.00)
$ - $ 699.40 Other Income $ - $ - $ (699.40)
$ - $ 2,277.00 Late/Interest Fees $ - $ - $ (2,277.00)

$ 1,069,200.00 $ 1,072,176.40 Total Income $ 1,036,800.00 $ 960.00 $ (35,376.40)

OPERATING EXPENSES
$ - $ 1,151.00 Bad Debt $ - $ - $ (1,151.00)
$ 2,500.00 $ 2,500.00 Audit & Tax Return $ 2,500.00 $ 2.31 0.00% $ -
$ 22,000.00 $ 52,916.86 Legal & Professional $ 25,000.00 $ 23.15 -52.76% $ (27,916.86)
$ 25,200.00 $ 25,200.00 Management Fee $ 26,000.00 $ 24.07 3.17% $ 800.00
$ 300.00 $ 300.00 Social Committee $ 500.00 $ 0.46 66.67% $ 200.00
$ 1,400.00 $ 2,238.53 Misc. Administration $ 2,300.00 $ 2.13 2.75% $ 61.47
$ 7,000.00 $ 3,217.61 Clerical/Mailing/Office $ 3,400.00 $ 3.15 5.67% $ 182.39
$ 123,000.00 $ 115,561.96 Gen. Casualty Insurance $ 128,000.00 $ 118.52 10.76% $ 12,438.04
$ 115,000.00 $ 104,673.36 Earthquake Insurance $ 116,000.00 $ 107.41 10.82% $ 11,326.64
$ 100.00 $ 100.00 Corporate Taxes $ 100.00 $ 0.09 0.00% $ -
$ 66,000.00 $ 65,443.20 Landscape Service Contract $ 69,384.00 $ 64.24 6.02% $ 3,940.80
$ 23,000.00 $ 23,000.00 Landscape Special Projects $ 25,000.00 $ 23.15 8.70% $ 2,000.00
$ 10,100.00 $ 14,847.32 Landscape - Irrigation $ 15,600.00 $ 14.44 5.07% $ 752.68
$ 43,000.00 $ 43,000.00 Large Tree Care $ 46,000.00 $ 42.59 6.98% $ 3,000.00
$ 3,600.00 $ 3,600.00 Janitorial Service $ 3,780.00 $ 3.50 5.00% $ 180.00
$ 11,000.00 $ 12,616.92 General Repair $ 14,000.00 $ 12.96 10.96% $ 1,383.08
$ 10,000.00 $ 8,580.00 Pest Control $ 9,100.00 $ 8.43 6.06% $ 520.00
$ 14,000.00 $ 8,479.80 Drainage & Plumbing Rep $ 10,000.00 $ 9.26 17.93% $ 1,520.20
$ 16,000.00 $ 14,342.99 Pool Service/Supply/Repair $ 16,000.00 $ 14.81 11.55% $ 1,657.01
$ 19,000.00 $ 9,956.74 Roof Maintenance $ 11,000.00 $ 10.19 10.48% $ 1,043.26
$ 1,600.00 $ 1,598.99 Refuse $ 1,700.00 $ 1.57 6.32% $ 101.01
$ 8,000.00 $ 6,855.00 Gutter Maintenance $ 8,000.00 $ 7.41 16.70% $ 1,145.00
$ 15,200.00 $ 16,800.64 Electricity & Gas $ 17,400.00 $ 16.11 3.57% $ 599.36
$ 81,400.00 $ 66,341.52 Cable TV & Internet $ 69,700.00 $ 64.54 5.06% $ 3,358.48
$ - $ 6,480.00 Broadband Consulting Services $ 6,500.00 $ 6.02 0.31% $ 20.00
$ 151,400.00 $ 130,051.95 Water $ 139,200.00 $ 128.89 7.03% $ 9,148.05

$ 769,800.00 $ 739,854.37 Total Operating Expenses $ 766,164.00 $ 709.41 3.56% $ 26,309.63

$ 3,795.73 $ 4,000.00 Contingency $ 4,059.53 $ 3.76 1.49% $ 59.53

$ 285,670.50 $ 285,670.50 Reserve fund contribution $ 314,238.00 $ 290.96 10.00% $ 28,567.50

$ - $ - Reserve fund loan repayment $ - $ - $ -
Order: DW73HJD2H
$ 1,059,266.23 $ 1,029,524.87 Total Expenses $ 1,084,461.53 $ 1,004.13 5.34% $ 54,936.66
Address: 2369 Sharon Oaks Dr
$ (9,933.77) $ 5,010.00 Order Date:
Carryover 01-03-2023
of Prior Year Surplus (Deficit) $ 47,661.53 $ 44.13 851.33% $ 42,651.53
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$ 0.00 $ 47,661.53 Operating Fund Surplus (Deficit)
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 Sharon Oaks Association
4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and
substantially the following form:

CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*

The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser,
at no cost, current copies of any documents specified by Section 4525 that are in the possession of the
seller.
A seller may request to purchase some or all of these documents, but shall not be required to purchase
ALL of the documents listed on this form.
2369 Sharon Oaks Dr, Menlo Park, CA 94025-6816
Property Address: _______________________________________________________________
Owner of Property: _____________________________________________________________
Hongyi Wei
Owner’s Mailing Address: ________________________________________________________
(if known or different from property address)

Provider of the Section 4525 Items:

______________________________________________________________________________
Denise Wolfinger-Okeefe
Escrow Coordinator The Manor Association 01-10-2023
Print Name Position or Title Association or Agent Date Form Completed

Check or Complete Applicable Column or Columns Below:

Civil Code Section Fee for Not Available (N/A) or
Document Document
Included Not Applicable (N/App)
Articles of Incorporation (or
statement that not Section 4525(a)(1) $20.00
incorporated)
CC&Rs Section 4525(a)(1) $40.00
Bylaws Section 4525(a)(1) $35.00
Operating Rules Section 4525(a)(1) $60.00
Age Restrictions, if any Section 4525(a)(2) N/App
Rental Restrictions, if any Section 4525(a)(9) $0.00 Refer to CC&Rs
Annual Budget Report (or
Sections 5300 and
summary, including Reserve $60.00
4525 (a)(3)
Study)
Assessment and Reserve Sections 5300 and
Funding Disclosure Summary 4525 (a)(4) Included in Budget
Sections 5305 and
Financial Statement Review $60.00
4525(a)(3)
Assessment Enforcement Sections 5310 and
Policy 4525(a)(4) Included in Budget
Sections 5300 and
Insurance Summary Included in Budget
4525 (a)(3)
Regular Assessment Section 4525(a)(4) Refer to the Demand
Special Assessment Section 4525(a)(4) $0.00 Refer to the Demand
Emergency Assessment Section 4525(a)(4) Refer to the Demand
 Sharon Oaks Association

Civil Code Section Fee for Not Available (N/A) or

Document Document
Included Not Applicable (N/App)
Other Unpaid Obligations of Sections 5675 and
Seller 4525(a)(4) Refer to the Demand
Approved Changes to Sections 5300 and
Assessments 4525(a)(4), (8) Included in Budget
Sections
Settlement Notice Regarding
4525(a)(6), (7) N/A
Common Area Defects
and 6100
Sections
Preliminary List of Defects 4525(a)(6), 6000 N/A
and 6100
Sections 5855 and
Notice(s) of Violations Refer to the Demand
4525(a)(5)
Required Statement of Fees Section 4525 $202.00 aka Demand
Minutes of Regular Board
Meetings (conducted over the Section
previous 12 months, if 4525(a)(10)
$60.00
requested)
Total fees for these documents: $ $537.00
*The information provided by this form may not include all fees that may be imposed
before the close of escrow. Additional fees that are not related to the requirements of
Section 4525 shall be charged separately.

Note: This form, California 4528, is a listing of fees for each document and is not meant to act as an
invoice. Actual fees paid may vary depending on what is ordered. See the Order Summary or Order
Statement for actual fees paid for this transaction.

This is the minimum document offering required to meet CA statute 4525. You may opt to acquire
additional documents including, but not limited to, Meeting Minutes, Reserve Studies, Insurance
Declaration Pages, and/or property inspections not mandated by law but helpful to the prospective
buyer(s) and/or their agent to make a more informed decision regarding the subject property.

Please note: Other fees including, but not limited to, Transfer Fees, Capital Contributions, Collection
fees, etc. may be assessed to each property and will be disclosed on the Statement of Fees
(Demand), and are not included within estimated charges outlined within this form.
Financial Statement Review (Required Civil Code Sec. 4525)
Sharon Oaks Association

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association

January 25, 2022

To: Sharon Oaks Association

Re: Annual Financial Statements

Dear Association Member:

Our Homeowner Association’s Certified Public Accountants have completed their

review of the Association’s Financial Statements and have issued their Independent
Auditors’ Report for the fiscal year ending September 30, 2021. The documents
include:

• Independent Auditor’s Report

• Balance Sheets
• Statements of Revenues, Expenses and Changes in Fund Balances
• Statements of Cash Flows
• Notes to Financial Statements
• Supplementary Information on Future Major Repairs and Replacements

Please keep this important document with your other Association records.

If you have any questions, please contact the Board of Directors through The Manor
Association at (650) 637-1616.

Sincerely,

Sharon Oak Association

Board of Directors

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr 1800 Gateway Drive #100
Order Date: 01-03-2023 San Mateo CA 94404
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 Van Sloten & Laranang
Certified Public Accountants, PC

Sharon Oaks Association

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2021

608-A Main Street, Pleasanton, CA 94566,

Order: PH: (925) 484-5801 Fax: (925) 484-5584
DW73HJD2H
39572 Stevenson Place Suite
Address: 2369 226,Sharon
Fremont, CA 94538,
Oaks Dr
PH: (510) 585-0230 Fax: (510) 585-0235
Order Date: 01-03-2023
Website: www.vslcpa.com E-mail: [email protected]
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 Sharon Oaks Association

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITOR’S REPORT …………....... 1

FINANCIAL STATEMENTS

Balance Sheet ............................................. 2

Statement of Revenues, Expenses, and Changes in

Fund Balances ........................................ 3

Statement of Cash Flows ................................. 4

Notes to Financial Statements ............................ 5–8

SUPPLEMENTARY INFORMATION

Supplementary Information on Future Major

Repairs and Replacements…………………. 9

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 VAN SLOTEN & LARANANG
Certified Public Accountants, PC
INDEPENDENT AUDITOR'S REPORT
The Board of Directors and Members
Sharon Oaks Association

We have audited the accompanying financial statements of Sharon Oaks Association, which comprise of the balance sheet as of
September 30, 2021, and the related statements of revenue and expenses and changes in fund balances and cash flows for the
year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sharon
Oaks Association at September 30, 2021, and the results of its operations and its cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

Disclaimer of Opinion on Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Required Supplementary Information
on Future Major Repairs and Replacements on page 10 be presented to supplement the basic financial statements. Such
information, although not part of the basic financial statements, is required by the Financial Accounting Standards Board, which
considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.

Van Sloten & Laranang CPAs, PC

Pleasanton, CA
December 21, 2021
608-A Main Street, Pleasanton, CA 94566 Tel: 925-484-5801 / 39572 Stevenson Place Suite 226 Fremont, CA 94539
Tel: 510-794-1040 Fax: 510-585-0235
Website: www.vslcpa.com E-mail: [email protected]

Order: DW73HJD2H
Address: 2369 Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Balance Sheet
September 30, 2021

Operating Replacement Total

Fund Fund Funds

ASSETS:
Cash and cash equivalents $ 32,711 1,173,341 1,206,052
Assessments receivable (less allow of $2,191) 2,031 2,031
Prepaid insurance 9,204 9,204
Prepaid income tax 3,307 3,307

Total Assets 43,946 1,176,648 1,220,594

LIABILITIES AND FUND BALANCES:

Accounts payable 23,485 23,485
Assessments received in advance 25,655 25,655
Due from replacement/due to operating fund (10,204) 10,204
Contract liability(Assessments rec. in adv.) 1,166,444 1,166,444

Total Liabilities 38,936 1,176,648 1,215,584

Fund Balances 5,010 5,010

Total Liabilities and Fund Balances $ 43,946 1,176,648 1,220,594

SEE NOTES TO FINANCIAL STATEMENTS

Order: DW73HJD2H
SEE INDEPENDENT AUDITOR'S REPORT
Address: 2369 Sharon Oaks Dr
2
Order Date: 01-03-2023
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 Sharon Oaks Association
Statement of Revenue and Expenses and Changes in Fund Balances
Year Ended September 30, 2021

Operating Replacement Total

Fund Fund Funds

REVENUE:
Regular assessments (Note B and Note H) $ 619,050 277,350 896,400
Recovery of assessments 1,169 1,169
Owner Billed Charges income 37,490 37,490
Interest on savings (Note A-3) 1,673 1,673
Late fees and Penalties 1,862 1,862
Other income 25 25

Total Revenue 659,596 279,023 938,619

EXPENSES:
Management 24,400 24,400
Insurance 198,773 198,773
Legal and accounting 42,965 42,965
Other administrative expenses 50,966 50,966
Gas and electricity 15,536 15,536
Water and sewer 133,877 133,877
Pest Control 9,281 9,281
Garbage removal 1,410 1,410
Custodial 3,600 3,600
Landscape Expenses 89,613 89,613
Pool service and supplies 14,403 14,403
Cable service 74,223 74,223
Telephone 3,152 3,152
Gutter Cleaning 6,950 6,950
Roof repair 15,523 15,523
Reserve expenses 331,690 331,690
Irrigation and plumbing 8,428 8,428
Other common area maintenance 26,510 26,510
Income taxes (Note D) 139 139

Total Expenses 719,610 331,829 1,051,439

Excess (deficiency) of revenue over expense (60,014) (52,806) (112,820)

Beginning fund balance 65,024 65,024

FASB ASC 606 adjustment- See Note H 52,806 52,806

Ending fund balance $ 5,010 5,010

SEE NOTES TO FINANCIAL STATEMENTS
Order: DW73HJD2H
SEE INDEPENDENT AUDITOR'S REPORT
Address: 2369 Sharon Oaks Dr
3
Order Date: 01-03-2023
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 Sharon Oaks Association
Statement of Cash Flows
Year Ended September 30, 2021

Operating Replacement Total

Fund Fund Funds

Cash Flows From Operating Activities:

Excess (deficiency) of revenue over expenses (60,014) (52,806) (112,820)

Adjustments to reconcile net income to net

cash provided by operating activities:
(Increase) - Decrease in:
Accounts receivable 585 585
Interest receivable 388 388
Prepaid insurance (877) (877)
Prepaid income tax (615) (615)
Increase - (Decrease) in:
Accounts payable (8,564) (8,564)
Assessments received in advance 13,335 13,335
Due from/due to replacement fund 3,473 (3,473)

Net cash flows from operating activities (52,062) (56,506) (108,568)

Cash Flows From Investing Activities:

Proceeds from matured certificates of deposit 100,000 100,000

Net cash flows from investing activities 100,000 100,000

Cash Flows From Financing Activities:

Net cash flows from financing activities

Net increase(decrease) in cash and cash (52,062) 43,494 (8,568)

equivalents

Cash and cash equivalents at beginning of year 84,773 1,129,847 1,214,620

Cash and cash equivalents at end of year 32,711 1,173,341 1,206,052

FASB ASC 606 Adjustment -Note H 52,806 52,806

SEE NOTES TO FINANCIAL STATEMENTS

Order: DW73HJD2H
SEE INDEPENDENT AUDITOR'S REPORT
Address: 2369 Sharon Oaks Dr
4
Order Date: 01-03-2023
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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2021
(A) - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

(1) Organization
Sharon Oaks Association (the Association) was incorporated September 1966, to provide for the orderly
maintenance, preservation, and architectural control of the common areas within the development, which
consists of 90 residential units located in the Menlo Park California, California.

The Association derives its authority and responsibilities from its Declaration of Covenants, Conditions and
Restrictions. An elected Board of Directors makes most policy decisions and oversees daily operations, but
major decisions are referred to the general association membership if required by the governing documents.

Membership in the Association is mandatory for homeowners. Voting members consist of all owners. Each
owner is obligated to pay monthly assessments to the Association to support its operations and purposes.

(2) Funds
Since the Association is a not-for-profit organization, the accompanying financial statements have been
prepared using a fund method of accounting. Under this method of accounting, funds are separated into two
categories, operating funds and replacement funds. Operating funds are those whose disposition is at the
discretion of the Board of Directors and are generally used for regular operating expenses. Replacement funds
are those funds that have been limited to specific purposes by the membership or the Board of Directors.

(3) Interest Earned

It is the policy of the Board of Directors that interest earned is allocated to the operating and replacements
funds in proportion to the interest-bearing deposits of each fund.

(4) Concentration of Credit Risk

Financial instruments that potentially expose the Association to concentrations of credit risk consists of cash.
Cash is maintained at two (2) financial institutions and credit exposure is limited to these institutions.

(5) Capitalization Policy and Depreciation

The Association has not capitalized in the financial statements the common area real property acquired at its
inception from the developer. This policy of non-capitalization is widely followed in the homeowners
association industry as all beneficial rights of ownership belong to the unit owners and not to the Association.

Replacements and improvements to the real property are not capitalized for the same reasons described above.
They are instead charged directly to either operating or restricted funds in the period they are incurred.

(6) Short-Term Investments/Cash and Cash Equivalents

For purposes of the Balance Sheet and the Statement of Cash Flows, the Association considers all short-term
investments with maturities of three months or less as of the statement date to be cash equivalents. At
September 30, 2021, the Association held certificates of deposit totaling $0 having maturities of less than three
months and accordingly reported as cash equivalents.

SEE INDEPENDENT AUDITOR'S REPORT

Order: DW73HJD2H
(CONTINUED)
Address: 2369
5
Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2021
(A) - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES-Continued

(7) Assessments Receivable

Association members are subject to monthly assessments to provide funds for the Association's operating
expenses, future capital acquisitions, and major repairs and replacements. Assessments receivable at the
balance sheet date represent fees due from unit owners. The Association's Declaration provides for various
collection remedies for delinquent assessments including the filing of liens, foreclosing on the unit owner, and
obtaining judgment on other assets of the unit owner. An alllowance for doubtful accounts has been recorded
in the amount of $2,191 as of September 30, 2021.

(8) Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.

(9) Contract Liabilities (Assessments received in advance-replacement fund)

The Association recognizes revenue from members as the related performance obligations are satisfied. A
contract liability (assessments received in advance-replacement fund) is recorded when the Association has the
right to receive payment in advance of the satisfaction of performance obligations related to replacement
reserve assessments. The balances of contract liabilities (assessments received in advance-replacement fund) as
of the beginning and end of the year are $1,219,250 and $1,166,444 respectively.

(10) Fair Value of Financial Instruments

The carrying amounts of financial instruments, including cash, certificates of deposit, accounts receivable and
accounts payable approximate their fair value due to the short term maturities of these instruments.

(B) - REGULAR ASSESSMENTS

During the fiscal year ended September 30, 2021, regular annual assessments were payable to the Association
in monthly installments of $830 per unit per month.

The annual budget and owners' assessments are determined by the Board of Directors. Annual budgets are
approved and assessments are divided between the operating fund to meet normal operating costs and
contributions to the replacement funding program.

Delinquent assessments may be secured by a lien on the property against which the assessments are made, and
the Association has the power to foreclose the property of any owner who fails to pay assessments.

The membership voted and the Board then passed a resolution that any excess operating funds at the end of a
fiscal year were to be applied to the following year's assessment.

SEE INDEPENDENT AUDITOR'S REPORT

Order: DW73HJD2H
(CONTINUED)
Address: 2369
6
Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2021

(C) - RESTRICTED FUNDS AND REPLACEMENT FUNDING PROGRAM

Restricted funds represent amounts designated for specific uses by the membership or Board of Directors;
generally these funds are set-aside in interest bearing accounts to be retained for the designated purpose.
Restricted replacement funds are amounts to be spent on future repair and replacement of selected Association
common areas.

A long-term, formal funding program is one that is based on a study that identifies specific common area
components such as roofs, streets, paint, decks, etc., the expected replacement costs and expected remaining
service lives of each, and provides a plan for accumulating over time the funds that will be needed to replace
each major item at the time that replacement becomes necessary.

An independent formal study to determine the adequacy of the current funding program for the replacement of
selected Association common area components was conducted by Association Reserve Inc. of San Francisco in
2021. The 2021-2022 budget, which was approved by the Board of Directors in August 2021, incorporates the
current funding requirements determined by the study.

Actual expenditures may vary from the estimated amounts and the variations may be material. Therefore,
amounts accumulated in the replacement fund may not be adequate to meet future needs. If additional funds
are needed, however, the Association has the right, subject to member approval, if required by the Association's
governing documents, to increase regular assessments or levy special assessments, or it may delay major repairs
and replacements until funds are available.

(D) - INCOME TAXES

Homeowners' associations may be taxed either as homeowners' associations under IRC section 528 or as
regular corporations. For the year ended September 30, 2021, the Association was taxed as a regular
corporation. As a regular corporation, membership income is exempt from taxation if certain elections are
made, and the Association is taxed only on its non-membership income, such as interest earnings, at regular
federal and state corporate rates.

Income tax expense at September 30, 2021, was $139. During the year ending September 30, 2021, the
Association paid $3,446 in cash for income taxes.

As of September 30, 2021, the tax returns are no longer subject to income tax examination by federal
authorities for years ending September 30, 2017 and before and by state authorities for years ending September
30, 2016 and before. In evaluating the Association's tax provisions and accruals, the association believes that
it's estimates are appropriate based on current facts and circumstances.

(E) - UNINSURED CASH BALANCES

The Association has interest bearing accounts in various commercial banks. On September 30, 2021, the
Association's deposits exceed federal depository insurance coverage by approximately $900,228. FDIC limit is
$250,000.

(F) - SUBSEQUENT EVENTS

Management has evaluated subsequent events through December 21, 2021 the date on which the financial
statements were available to be issued. No items noted that requires disclosure to the financial statements.

SEE INDEPENDENT AUDITOR'S REPORT

Order: DW73HJD2H
(CONTINUED)
Address: 2369
7
Sharon Oaks Dr
Order Date: 01-03-2023
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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2021

(G) - CONTINGENCY

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a
global pandemic and recommended containment and mitigation measures worldwide. The outbreak in the
United States has caused business disruption through mandated closuring of businesses and shelter in place
orders. The outbreak may have a continued and adverse impact on economic and market conditions. As such ,
our financial condition and liquidity may be negatively impacted for the fiscal year 2021-2022.

(H) - FASB ASC 606 NEW ACCOUNTING GUIDANCE IMPLEMENTATION

The Financial Accounting Standards Board (FASB) issued new guidance that created Topic 606, Revenue from
Contracts with Customers, in the Accounting Standards Codification (ASC). Topic 606 supersedes the revenue
recognition requirements in FASB ASC 972-605, Real Estate-Common Interest Realty Associations, Revenue
Recognition, and requires the recognition of revenue when promised goods or services are transferred to
customers in an amount that reflects the consideration to which a CIRA expects to be entitled in exchange for
those goods or services.

The Association adopted the new guidance as of October 1, 2019, using the modified retrospective method of
transition, which requires that the cumulative effect of the changes related to the adoption be charged to
beginning fund balance. The association applied new guidance using the practical expedient provided in Topic
606 that allows the guidance to be applied only to contracts that were not complete as of October 1, 2019.
Adoption of the new guidance resulted in changes to our accounting policies for assessment revenue and
contract liabilities (assessments received in advance-replacement fund), as previously described.

The effect of the adoption is a decrease in 2020-2021 assessments by $0 and recording of contract liability at
September 30, 2021 of $1,166,444. The Association has no customer contract modifications that had no effect
on the Association's transition to the new guidance.

Order: DW73HJD2H
SEE INDEPENDENT AUDITOR'S REPORT
Address: 2369
8
Sharon Oaks Dr
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 Sharon Oaks Association
Supplementary Information On Future Major Repairs And Replacements ( Unaudited)
September 30, 2021

Association Reserve Inc. conducted a study in 2021, to estimate the remaining useful lives and the
replacement costs of the components of common property. The estimates were based on future
replacement costs at the date of the study. Estimated current replacement costs have been adjusted to
reflect a 3.0% inflation factor between the date of the study and the date that the components will require
repair and replacement. A .5% after tax interest rate has been applied to the cash flow.

The following table is based on the study and presents significant information about the components of
common property.

Estimated
Remaining Useful Estimated Current
Components Useful Lives Yrs Lives Yrs Replacement Costs
Concrete Walkways/Wood Repair Cmmn Area 0 0-25 $ 41,970
Asphalt Resurface 5 25 333,000
Asphalt-Reseal/Repair 1 5 15,300
Entry Drive 7 25 6,335
Pole Lights 2 30 71,350
Mailbox 19 25 24,000
Wood Fence 0-3 5-20 100,050
Trash 0 20 18,200
Landscape 15 0-13 185,300
Irrgiation System 2-27 3-50 10,625
Backflow Devices 2 30 7,375
Sounds Wall 4 12 5,400
Signage 0 18 4,515
Sump Pump 2 10 38,650
CCRs/Reserve Study 0-8 3-10 11,510
Balcony/Deck/Door 1-3 5-9 183,775
Building Ext Repaint 0-2 6 461,000
Shingle Siding 0-14 6-24 189,150
Siding Trim 4-6 12 352,200
Fire Alarm 15 20 191,700
Wood Shingle Roof 7-13 25 3,006,000
Plumbing 0-2 1-5 27,150
Pool & Spa 0-27 6-30 156,145
Total $ 5,440,700

The Association uses the cash flow method of funding the replacement fund. Under the cash flow
method, the funding for each individual component is not separately calculated. The contract liability
balance at September 30, 2021 is $1,166,444 with expected contributions of $285,670 for the year ending
September 30, 2022.

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 Van Sloten & Laranang
Certified Public Accountants, PC

Sharon Oaks Association

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2020

608-A Main Street, Pleasanton, CA 94566,

Order: PH: (925) 484-5801 Fax: (925) 484-5584
DW73HJD2H
39572 Stevenson Place Suite
Address: 2369 226,Sharon
Fremont, CA 94538,
Oaks Dr
PH: (510) 585-0230 Fax: (510) 585-0235
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 Sharon Oaks Association

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITOR’S REPORT …………....... 1

FINANCIAL STATEMENTS

Balance Sheet ............................................. 2

Statement of Revenues, Expenses, and Changes in

Fund Balances ........................................ 3

Statement of Cash Flows ................................. 4

Notes to Financial Statements ............................ 5–9

SUPPLEMENTARY INFORMATION

Supplementary Information on Future Major

Repairs and Replacements…………………. 10

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 VAN SLOTEN & LARANANG
Certified Public Accountants, PC
INDEPENDENT AUDITOR'S REPORT
The Board of Directors and Members
Sharon Oaks Association

We have audited the accompanying financial statements of Sharon Oaks Association, which comprise of the balance sheet as of
September 30, 2020, and the related statements of revenue and expenses and changes in fund balances and cash flows for the
year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sharon
Oaks Association at September 30, 2020, and the results of its operations and its cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

Disclaimer of Opinion on Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Required Supplementary Information
on Future Major Repairs and Replacements on page 10 be presented to supplement the basic financial statements. Such
information, although not part of the basic financial statements, is required by the Financial Accounting Standards Board, which
considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.

Van Sloten & Laranang CPAs, PC

Pleasanton, CA
January 14, 2021
608-A Main Street, Pleasanton, CA 94566 Tel: 925-484-5801 / 39572 Stevenson Place Suite 226 Fremont, CA 94539
Tel: 510-794-1040 Fax: 510-585-0235
Website: www.vslcpa.com E-mail: [email protected]

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 Sharon Oaks Association
Balance Sheet
September 30, 2020

Operating Replacement Total

Fund Fund Funds

ASSETS:
Cash and cash equivalents $ 84,773 1,129,847 1,214,620
Assessments receivable (less allow of $3,360) 2,616 2,616
Investment in certificates of deposit 100,000 100,000
Interest receivable 388 388
Prepaid insurance 8,327 8,327
Prepaid income tax 2,692 2,692

Total Assets 95,716 1,232,927 1,328,643

LIABILITIES AND FUND BALANCES:

Accounts payable 32,049 32,049
Assessments received in advance 12,320 12,320
Due from replacement/due to operating fund (13,677) 13,677
Contract liability(Assessments rec. in adv.) 1,219,250 1,219,250

Total Liabilities 30,692 1,232,927 1,263,619

Fund Balances 65,024 65,024

Total Liabilities and Fund Balances $ 95,716 1,232,927 1,328,643

SEE NOTES TO FINANCIAL STATEMENTS

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 Sharon Oaks Association
Statement of Revenue and Expenses and Changes in Fund Balances
Year Ended September 30, 2020

Operating Replacement Total

Fund Fund Funds

REVENUE:
Regular assessments (Note B and Note H) $ 562,800 158,409 721,209
Owner Billed Charges income 31,155 31,155
Interest on savings (Note A-3) 13,778 13,778
Late fees and Penalties 1,577 1,577
Other income 8,045 8,045

Total Revenue 603,577 172,187 775,764

EXPENSES:
Management 23,600 23,600
Insurance 175,350 175,350
Legal and accounting 10,085 10,085
Other administrative expenses 31,085 31,085
Gas and electricity 12,703 12,703
Water and sewer 129,855 129,855
Pest Control 4,188 4,188
Garbage removal 1,080 1,080
Custodial 3,811 3,811
Landscape Expenses 98,982 98,982
Pool service and supplies 12,583 12,583
Cable service 81,428 81,428
Bad debts expense 3,360 3,360
Gutter Cleaning 6,352 6,352
Roof repair 247 247
Reserve expenses 168,743 168,743
Irrigation and plumbing 21,382 21,382
Other common area maintenance 12,161 12,161
Income taxes (Note D) 3,444 3,444

Total Expenses 628,252 172,187 800,439

Excess (deficiency) of revenue over expense (24,675) (24,675)

Beginning fund balance 89,699 1,119,659 1,209,358

FASB ASC 606 adjustment- See Note H (1,119,659) (1,119,659)

Ending fund balance $ 65,024 65,024

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 Sharon Oaks Association
Statement of Cash Flows
Year Ended September 30, 2020

Operating Replacement Total

Fund Fund Funds

Cash Flows From Operating Activities:

Excess (deficiency) of revenue over expenses (24,675) (24,675)

Adjustments to reconcile net income to net

cash provided by operating activities:
(Increase) - Decrease in:
Accounts receivable 10,053 10,053
Interest receivable 1,293 1,293
Prepaid insurance (7,003) (7,003)
Prepaid income tax (2,692) (2,692)
Increase - (Decrease) in:
Accounts payable 12,768 (12,173) 595
Assessments received in advance (10,414) (10,414)
Income tax payable (4,166) (4,166)
Contract liability-net FASB ASC 606 adj. 99,591 99,591

Net cash flows from operating activities (21,963) 84,545 62,582

Cash Flows From Investing Activities:

Proceeds from matured certificates of deposit 550,000 550,000

Net cash flows from investing activities 550,000 550,000

Cash Flows From Financing Activities:

Due from replacement/due to operating fund (9,431) 9,431

Net cash flows from financing activities (9,431) 9,431

Net increase(decrease) in cash and cash (31,394) 643,976 612,582

equivalents

Cash and cash equivalents at beginning of year 116,167 485,871 602,038

Cash and cash equivalents at end of year 84,773 1,129,847 1,214,620

FASB ASC 606 Adjustment -Note H 1,119,659 1,119,659

SEE NOTES TO FINANCIAL STATEMENTS

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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2020
(A) - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

(1) Organization
Sharon Oaks Association (the Association) was incorporated September 1966, to provide for the orderly
maintenance, preservation, and architectural control of the common areas within the development, which
consists of 90 residential units located in the Menlo Park California, California.

The Association derives its authority and responsibilities from its Declaration of Covenants, Conditions and
Restrictions. An elected Board of Directors makes most policy decisions and oversees daily operations, but
major decisions are referred to the general association membership if required by the governing documents.

Membership in the Association is mandatory for homeowners. Voting members consist of all owners. Each
owner is obligated to pay monthly assessments to the Association to support its operations and purposes.

(2) Funds
Since the Association is a not-for-profit organization, the accompanying financial statements have been
prepared using a fund method of accounting. Under this method of accounting, funds are separated into two
categories, operating funds and replacement funds. Operating funds are those whose disposition is at the
discretion of the Board of Directors and are generally used for regular operating expenses. Replacement funds
are those funds that have been limited to specific purposes by the membership or the Board of Directors.

(3) Interest Earned

It is the policy of the Board of Directors that interest earned is allocated to the operating and replacements
funds in proportion to the interest-bearing deposits of each fund.

(4) Concentration of Credit Risk

Financial instruments that potentially expose the Association to concentrations of credit risk consists of cash.
Cash is maintained at two (2) financial institutions and credit exposure is limited to these institutions.

(5) Capitalization Policy and Depreciation

The Association has not capitalized in the financial statements the common area real property acquired at its
inception from the developer. This policy of non-capitalization is widely followed in the homeowners
association industry as all beneficial rights of ownership belong to the unit owners and not to the Association.

Replacements and improvements to the real property are not capitalized for the same reasons described above.
They are instead charged directly to either operating or restricted funds in the period they are incurred.

(6) Short-Term Investments/Cash and Cash Equivalents

For purposes of the Balance Sheet and the Statement of Cash Flows, the Association considers all short-term
investments with maturities of three months or less as of the statement date to be cash equivalents. At
September 30, 2020, the Association held certificates of deposit totaling $100,000 having maturities of less
than three months and accordingly reported as cash equivalents.

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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2020
(A) - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES-Continued

(7) Assessments Receivable

Association members are subject to monthly assessments to provide funds for the Association's operating
expenses, future capital acquisitions, and major repairs and replacements. Assessments receivable at the
balance sheet date represent fees due from unit owners. The Association's Declaration provides for various
collection remedies for delinquent assessments including the filing of liens, foreclosing on the unit owner, and
obtaining judgment on other assets of the unit owner. An alllowance for doubtful accounts has been recorded
in the amount of $3,360 as of September 30, 2020.

(8) Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.

(9) Contract Liabilities (Assessments received in advance-replacement fund)

The Association recognizes revenue from members as the related performance obligations are satisfied. A
contract liability (assessments received in advance-replacement fund) is recorded when the Association has the
right to receive payment in advance of the satisfaction of performance obligations related to replacement
reserve assessments. The balances of contract liabilities (assessments received in advance-replacement fund) as
of the beginning and end of the year are $0 and $1,219,250 respectively.

(10) Fair Value of Financial Instruments

The carrying amounts of financial instruments, including cash, certificates of deposit, accounts receivable and
accounts payable approximate their fair value due to the short term maturities of these instruments.

(B) - REGULAR ASSESSMENTS

During the fiscal year ended September 30, 2020, regular annual assessments were payable to the Association
in monthly installments of $760 per unit per month.

The annual budget and owners' assessments are determined by the Board of Directors. Annual budgets are
approved and assessments are divided between the operating fund to meet normal operating costs and
contributions to the replacement funding program.

Delinquent assessments may be secured by a lien on the property against which the assessments are made, and
the Association has the power to foreclose the property of any owner who fails to pay assessments.

The membership voted and the Board then passed a resolution that any excess operating funds at the end of a
fiscal year were to be applied to the following year's assessment.

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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2020

(C) - RESTRICTED FUNDS AND REPLACEMENT FUNDING PROGRAM

Restricted funds represent amounts designated for specific uses by the membership or Board of Directors;
generally these funds are set-aside in interest bearing accounts to be retained for the designated purpose.
Restricted replacement funds are amounts to be spent on future repair and replacement of selected Association
common areas.

A long-term, formal funding program is one that is based on a study that identifies specific common area
components such as roofs, streets, paint, decks, etc., the expected replacement costs and expected remaining
service lives of each, and provides a plan for accumulating over time the funds that will be needed to replace
each major item at the time that replacement becomes necessary.

An independent formal study to determine the adequacy of the current funding program for the replacement of
selected Association common area components was conducted by Association Reserve Inc. of San Francisco in
2019. The 2020-2021 budget, which was approved by the Board of Directors in August 2020, incorporates the
current funding requirements determined by the study.

Actual expenditures may vary from the estimated amounts and the variations may be material. Therefore,
amounts accumulated in the replacement fund may not be adequate to meet future needs. If additional funds
are needed, however, the Association has the right, subject to member approval, if required by the Association's
governing documents, to increase regular assessments or levy special assessments, or it may delay major repairs
and replacements until funds are available.

(D) - INCOME TAXES

Homeowners' associations may be taxed either as homeowners' associations under IRC section 528 or as
regular corporations. For the year ended September 30, 2020, the Association was taxed as a regular
corporation. As a regular corporation, membership income is exempt from taxation if certain elections are
made, and the Association is taxed only on its non-membership income, such as interest earnings, at regular
federal and state corporate rates.

Income tax expense at September 30, 2020, was $3,444. During the year ending September 30, 2020, the
Association paid $6,136 in cash for income taxes.

As of September 30, 2020, the tax returns are no longer subject to income tax examination by federal
authorities for years ending September 30, 2016 and before and by state authorities for years ending September
30, 2015 and before. In evaluating the Association's tax provisions and accruals, the association believes that
it's estimates are appropriate based on current facts and circumstances.

(E) - UNINSURED CASH BALANCES

The Association has interest bearing accounts in various commercial banks. On September 30, 2020, the
Association's deposits exceed federal depository insurance coverage by approximately $659,975. FDIC limit is
$250,000.

(F) - SUBSEQUENT EVENTS

Management has evaluated subsequent events through January 14, 2021 the date on which the financial
statements were available to be issued. No items noted that requires disclosure to the financial statements.

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 Sharon Oaks Association
Notes To Financial Statements
September 30, 2020

(G) - CONTINGENCY

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a
global pandemic and recommended containment and mitigation measures worldwide. The outbreak in the
United States has caused business disruption through mandated closuring of businesses and shelter in place
orders. The outbreak may have a continued and adverse impact on economic and market conditions. As such ,
our financial condition and liquidity may be negatively impacted for the fiscal year 2020-2021.

(H) - FASB ASC 606 NEW ACCOUNTING GUIDANCE IMPLEMENTATION

The Financial Accounting Standards Board (FASB) issued new guidance that created Topic 606, Revenue from
Contracts with Customers, in the Accounting Standards Codification (ASC). Topic 606 supersedes the revenue
recognition requirements in FASB ASC 972-605, Real Estate-Common Interest Realty Associations, Revenue
Recognition, and requires the recognition of revenue when promised goods or services are transferred to
customers in an amount that reflects the consideration to which a CIRA expects to be entitled in exchange for
those goods or services.

The Association adopted the new guidance as of October 1, 2019, using the modified retrospective method of
transition, which requires that the cumulative effect of the changes related to the adoption be charged to
beginning fund balance. The association applied new guidance using the practical expedient provided in Topic
606 that allows the guidance to be applied only to contracts that were not complete as of October 1, 2019.
Adoption of the new guidance resulted in changes to our accounting policies for assessment revenue and
contract liabilities (assessments received in advance-replacement fund), as previously described.

The adoption of the new revenue recognition guidance resulted in the following change to fund balance as of
October 1, 2019:

Fund Balance, as previously reported, at October 1, 2019. $ 1,209,358

Adjustment (1,119,659)
Fund balance, as adjusted, at October 1, 2019 $ 89,699

The effect of the adoption is a decrease in 2019 assessments by $99,591 and recording of contract liability at
September 30, 2020 of $1,219,250. The Association has no customer contract modifications that had no effect
on the Association's transition to the new guidance.

The modified retrospective method of transition require us to disclose the effect of applying the new guidance
on each item included in our 2019-2020 financial statements. Following are the line items from our balance
sheet as of September 30, 2020, that were affected, the amounts that would have been reported under the
former guidance, the effects of applying the new guidance, and the balances reported under the new guidance

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 Sharon Oaks Association
H-FASB ASC 606 New Accounting Guidance Implementation
September 30, 2020
Amounts that Effects of
As
would have been Applying New
reported Guidance Reported
LIABILITIES AND FUND BALANCES:

Contract Liabilities $ - 1,219,250 1,219,250

Total Liabilities 44,369 1,219,250 1,263,619

Fund Balance
Ending Fund balance $ 1,284,274 (1,219,250) 65,024

The following are the line items from the statement of revenues, expenses and changes in fund balances and the
statement of cash flows for the year ended September 30, 2020. that were affected, the amounts that would have been
reported under former guidance, the effects of applying the new guidance, and the amounts reported under the new
guidance:

Amounts that Effects of

would have been Applying New As
reported Guidance Reported
Revenue
Operating assessments $ 562,800 - 562,800
Reserves assessments 258,000 (99,591) 158,409

Net total regular assessments 820,800 (99,591) 721,209

Excess of revenues over expenses 74,916 (99,591) (24,675)

Cash Flows

Excess of revenues over expenses 74,916 (99,591) (24,675)

Increase in contract liabilities $ - 1,219,250 1,219,250

SEE NOTES TO FINANCIAL STATEMENTS

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 Sharon Oaks Association
Supplementary Information On Future Major Repairs And Replacements ( Unaudited)
September 30, 2020

Association Reserve Inc. conducted a study in 2019, to estimate the remaining useful lives and the
replacement costs of the components of common property. The estimates were based on future
replacement costs at the date of the study. Estimated current replacement costs have been adjusted to
reflect a 3.0% inflation factor between the date of the study and the date that the components will require
repair and replacement. A 1.0% after tax interest rate has been applied to the cash flow.

The following table is based on the study and presents significant information about the components of
common property.

Estimated
Remaining Estimated Current
Components Useful Lives Yrs Replacement Costs
Concrete Walkways - Repair Common Area 0-1 $ 13,870
Asphalt Lateral 0-35 175,500
Asphalt - Overlay 4-25 406,800
Asphalt-Reseal/Repair 0-5 30,500
Landscape Lights - Replace 9-25 3,400
Perimeter Block Wall 0-1 15,000
Patio Stucco Fence 2-15 12,050
Patio Wood Fence 0-1 4,120
Perimeter Wood Fence 0-4 6,180
Irrgiation System 0-1 12,350
Backflow Devices 2-30 7,240
Irrigation Timeclocks 3-7 5,435
Perimeter Wall/Fence Repaint 1-10 17,460
Monument Signs - Replace 7-15 11,845
Plumbing/Sewer System 0-1 10,285
Fresh Water Feeds - Partial Replace 0-5 4,225
Roof Decking 13-30 92,100
Stucco- Repaint 0-12 111,450
Wood Surface 0-6 158,650
Asphalt Roof 0-1 18,100
Wood Shingle Roof 2-25 1,526,150
Clubhouse 0-20 197,405
Total $ 2,840,115

The Association uses the cash flow method of funding the replacement fund. Under the cash flow
method, the funding for each individual component is not separately calculated. The contract liability
balance at September 30, 2020 is $1,219,250 with expected contributions of $277,350 for the year ending
September 30, 2021.

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Special Assessment (Required Civil Code Sec. 4525)
Sharon Oaks Association

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Rental Restrictions (Required Civil Code Sec. 4525)
Sharon Oaks Association

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