Financial Hardship Policy

This resolution was approved by the Board during its meeting on April 14, 2009.

Whereas the Royal Creek Homeowners Association Board of Directors is empowered by statutory law [ORS 94.630 (1)(a)], and further supported by the Association documents including the Declaration of Covenants, Conditions and Restrictions [Article 4, Section 4.23 to create rules and regulations regarding certain actions and activities of the association and its members,

Whereas the Royal Creek Homeowners Association Board of Directors finds it necessary to set forth restrictions on certain activities within the association property,

Whereas the Royal Creek Homeowners Association Board of Directors wishes to enhance the livability of all residents within the association.

Whereas members of the association may from time to time have debts to the association and claim an inability to resolve those debts based on financial hardships.

Now be it therefore resolved that the Royal Creek Homeowners Association Board of Directors does adopt the following procedures in regards to the activities listed:

1. Only fines, penalties, and special assessments will be eligible for adjustment or waiver based on financial hardship. Annual assessments will not be eligible for adjustment.
2. Any request for consideration based on financial hardship must be made before the debt has been turned over to an external agency for collections.
3. If a member asserts the inability to pay his or her debt to the association based on financial hardship, they may request a hearing with the Board.
4. The Board will notify the member of the date, time, and location of the hearing. In that notification, the member will also be informed to bring to the hearing documentation that establishes his or her assertion of a financial hardship (e.g. pay statements, listing of debts, income tax returns, etc.)
5. During the hearing, the Board may go into Executive Session to review and consider personal financial information presented by the member IAW ORS 192.660 (2)(f).
6. The Board is not limited to considering only the information presented by the member, but may also consider other relevant information it obtains.
7. The final decision of the Board will be made outside of Executive Session.
8. The Board may use the following guidelines in making its decision:

a. The primary purpose of fines and penalties is to ensure compliance with the CC&Rs and other related resolutions, not to produce income for the association.
b. The Board should generally not waive or adjust hard costs associated with the fine (i.e. the cost of mailings, cost of placing a lein, etc.).
c. The Board will not waive any portion of a fine until the underlying violation of the CC&Rs has been resolved.
d. The Board can waive the entire debt or any portion thereof, link any reduction of the fine or penalty with continued compliance with the CC&Rs, or decline to reduce the debt.

The Royal Creek Homeowners Association Board of Directors passed this resolution on this 14th day of April, 2009.