Collections Policy

FIRST REVISED COLLECTION POLICY OF THE TRILLIUM HOLLOW COHOUSING NEIGHBORHOOD HOMEOWNER’S ASSOCIATION

(Adopted by the Board of Directors (“Board”) of Trillium Hollow Cohousing Neighborhood Homeowner’s Association (the “Association”) on March 7, 2004) and Amended June 6, 2004 by Consensus at a Community Meeting

The Board recognizes that each member of the Association has the opportunity to participate in meetings at which financial decisions are made that affect the entire Trillium Hollow community. Each member of the Association also has the responsibility to remain current in his or her financial obligations to the Association.

On or about February, 2003, the Board adopted a Collections Policy (the “Original Policy”) to provide a clear policy statement of the Association concerning any member of the Association who becomes delinquent in his/her financial obligations to the Association. After having the Original Policy in place for one (1) year, the Board has recognized that certain revisions to the Original Policy are necessary.

The Board has determined to adopt a revised Collections Policy that will include further clarification of the rights and obligations of the Association and its members concerning the collection of delinquent financial obligations and the authorization of the Board to pass Resolutions that address special community-wide circumstances that arise from time to time (such as reconstruction). Such Resolutions may also address any specific exceptions or additions to the Collections Policy as the Board deems necessary and any particular circumstance facing the entire community (whether pertaining to a special assessment for reconstruction, another like-special assessment in the future or other Association financial matters). Such Board Resolutions may also address reimbursement of Association members following recovery of money from insurance companies or other third parties on behalf of the Trillium Hollow community as a whole.

In consideration of the foregoing, it is hereby RESOLVED that the following be adopted as the First Revised Collections Policy (the “Collection Policy”) for the Association. The Collections Policy shall replace the Original Policy and be effective as of March 7, 2004.

I.

DUE DATE AND INTEREST PAYMENTS

1.1 Pursuant to the provisions of the Declaration and the Bylaws of the Association, each owner of a unit in the Association (a “Unit Owner”) is required to pay monthly Association dues on the first (1st) day of each month. If a Unit Owner fails to pay his/her monthly Association dues on or before the sixteenth (16th) day of any month, the amount of dues then due shall bear interest at a rate of eighteen percent (18%) per annum, commencing on the sixteenth (16th) day of the month such amount was due and continuing thereafter until paid in full.

1.2 Any special assessment or other like-charge authorized by the Board shall be due at the time specified by the Board. The Board shall provide each Unit Owner with no less than fourteen (14) calendar days’ prior notice before any special assessment or other like-charge shall be due. Unless the Board has passed a Resolution specifically to the contrary, any special assessment or other like-charge which remains unpaid after the fifteenth (15th) day after the due date for such special assessment, shall bear interest at the rate of eighteen percent (18%) per annum, commencing on the sixteenth (16th) day after the due date for such special assessment or other like-charge.

II.

FIRST NOTICE

2.1 The Board shall deliver a First Notice to the Unit Owner who has failed to pay Association dues, special assessment or other like-charge within thirty (30) days of the due date thereof by mailing such First Notice to the Unit Owner’s last known address. The First Notice shall include the following information and otherwise be substantially as set forth in Attachment 1 to this Collections Policy:

2.1.1 A reminder that the dues, special assessment or other like-charges are more than thirty (30) days in arrears and are immediately due and payable;

2.1.2 An itemization of the amount owed (including any interest and other ancillary amounts that are due);

2.1.3 A reference to the applicable portions of this Collections Policy;

2.1.4 A demand for immediate payment of all sums then due; and

2.1.5 A reminder that if the Unit Owner is unable to pay the full amount due, he/she can contact a member of the Board to attempt to work out a payment schedule reasonably acceptable to the Board.

2.2 Within fifteen (15) days of mailing of the First Notice by the Board, the delinquent Unit Owner shall either (i) remit to the Association payment in full of all amounts owing to the Association, including all interest and other charges; or (ii) provide a written proposal to the Board setting forth an alternative arrangement for payment of all amounts then due.

2.3 Upon receipt of such written proposal, the Board shall meet and confer and shall either notify the delinquent Unit Owner that such Unit Owner’s proposal is acceptable to the Board or that such Unit Owner’s proposal is unacceptable. If the Board notifies the delinquent Unit Owner that its proposal is unacceptable, the Board shall make a counter proposal that is acceptable to the Board within fifteen (15) days of receipt of the Unit Owner’s proposal.

2.4 The delinquent Unit Owner shall have ten (10) days after receipt of the Board’s counter proposal to either (i) pay the amount due in full; (ii) notify the Board that such Unit Owner accepts such counter proposal; or (iii) to request further modifications to the Board’s counter proposal. Upon receipt of such response by the Board, the Board may determine, in its sole and absolute discretion, whether to (a) accept the further modification of its proposal; (b) continue a dialogue with the Unit Owner to resolve any remaining differences; or (c) to require immediate payment.

2.5 In the event a delinquent Unit Owner makes a proposal to the Board for paying the amount due, upon request by such Unit Owner, the Board will provide any and all information available about any funding sources of which the Board is aware.

III.

SECOND NOTICE

3.1 If any Unit Owner fails to pay any Association dues, special assessment or other like-charge within seventy (70) days of the due date thereof, and the delinquent Unit Owner has not reached a repayment agreement with the Board (and commenced payments in accordance with such agreement), the Board shall send a Second Notice to such delinquent Unit Owner, which Second Notice shall include the following information and otherwise be substantially as set forth in Attachment 2 to this Collection Policy:

3.1.1 A reminder that the dues, special assessment or other like-charge is more than seventy (70) days in arrears and is immediately due and payable;

3.1.2 An itemization of the amount owed (including any interest and other ancillary amounts that are due);

3.1.3 A reference to the applicable portions of this Collections Policy;

3.1.4 A demand for immediate payment of all sums then due;

3.1.5 A reminder that if the Unit Owner is unable to pay the full amount due, he/she can contact a member of the Board to attempt to work out a payment schedule reasonably acceptable to the Board;

3.1.6 A clear statement that the delinquent Unit Owner has fifteen (15) days from the date of the Second Notice to either (i) remit to the Association payment in full of the past due amounts owing to the Association or (ii) provide a written proposal to the Board setting forth an alternative arrangement for payment of all amounts then due in accordance with the procedures set forth in Paragraphs 2.3, 2.4 and 2.5 above; and

3.1.6 In the event a delinquent Unit Owner has failed to either pay all sums then due to the Association in full or reach an alternative payment arrangement with the Board, the Board shall turn the matter over to the Association attorney or other collections professional for all legal action necessary to compel payment by the delinquent Unit Owner.

3.2 The Board shall notify the members of the Association at the next Association meeting after the date of the Second Notice that the delinquent Unit Owner has received the Second Notice and that the collection of all past due amounts will be turned over to the Association attorney or other collections professional for legal action if no payment is made or the Unit Owner fails to enter into an alternative arrangement for payment with the Board within fifteen (15) days from the date of the Second Notice.

IV.

4.1 If a Unit Owner fails to pay all amounts due or to make appropriate alternative arrangements with the Board (and promptly start making payments of such delinquent amounts), the Board will authorize the Association attorney or other collections professional to take all legal action necessary to compel payment unless the Board, in its reasonable discretion, determines that such collection action is not in the best interests of the Association. In the event the Board makes such a determination, the Board shall enter in the Association records a Resolution describing, in reasonable detail, the reasons for making that determination.

4.2 In the event the Board determines to retain the services of the Association attorney or other collections professional to collect any delinquent amount, all costs of collection, including all collection and attorney’s fees will be charged to the delinquent Unit Owner including the cost of any lien previously recorded by the Board against such delinquent Unit Owner’s unit.

V.

MISCELLANEOUS

5.1 Notwithstanding anything to the contrary contained in this Collections Policy, in the event any Unit Owner is delinquent in its obligation to pay Association dues, special assessments or any other like-charge in an amount of One Thousand Dollars ($1,000) or more, the Board may, with or without notice to the Unit Owner, record a lien against such delinquent Unit Owner’s unit as permitted by ORS Section 100.450 and such delinquent Unit Owner shall be liable for any and all costs incurred by the Association or its agent in preparing and recording such lien, including all recording fees, attorney’s fees and other costs.

5.2 The Board may, in its discretion, take any action necessary to cause the temporary or permanent release of any lien so long as the Board reasonably determines that such action is in the best interest of the Association.

5.3 In the event any Unit Owner elects to lease or grant occupancy rights in any unit within the Association (each, a “Lease”) to any third-party who is not a Unit Owner, the Lease shall be subject to the review and approval by the Board. Each Unit Owner executing a Lease shall cause the following provision (the “Joint Responsibility Provision”) to be included in the Lease and the Joint Responsibility Provision shall be set out in capital letters:

“NOTICE: THE PREMISES TO BE OCCUPIED PURSUANT TO THIS AGREEMENT ARE WITHIN THE TRILLIUM HOLLOW COHOUSING NEIGHBORHOOD HOMEOWNER’S ASSOCIATION (THE “ASSOCIATION”) AND EACH OWNER OF A UNIT WITHIN THE ASSOCIATION IS REQUIRED TO PAY MONTHLY ASSOCIATION DUES, SPECIAL ASSESSMENTS AND OTHER LIKE-CHARGES WHICH MAY COME DUE DURING THE TERM OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS OCCUPANCY AGREEMENT, THE PARTY OR PARTIES OCCUPYING THE PREMISES (THE “OCCUPANT”) AND THE UNIT OWNER SHALL BE JOINTLY AND SEVERALLY LIABLE TO THE ASSOCIATION FOR PAYMENT OF SUCH ASSOCIATION DUES, SPECIAL ASSESSMENTS AND OTHER LIKE-CHARGES, AND THE ASSOCIATION MAY MAKE DEMAND UPON EACH PARTY FOR PAYMENT OF ANY OF SUCH AMOUNTS THAT ARE MORE THAN THIRTY (30) DAYS PAST DUE. IN THE EVENT THE ASSOCIATION MAKES SUCH DEMAND UPON THE OCCUPANT, THE OCCUPANT SHALL PAY THE AMOUNTS DEMANDED AND THE PARTIES TO THIS LEASE AGREE THAT THE OCCUPANT MAY OFFSET THE AMOUNT PAID TO THE ASSOCIATION AGAINST ALL RENT OR OTHER OCCUPANCY CHARGES COMING DUE THEREAFTER UNTIL THE SUM PAID TO THE ASSOCIATION HAS BEEN FULLY REIMBURSED TO THE OCCUPANT. THE UNIT OWNER HEREBY WAIVES ANY CLAIM OR DEMAND AGAINST THE OCCUPANT AS CONCERNS ANY AMOUNT PAID TO THE ASSOCIATION AFTER RECEIPT OF DEMAND AND AGREES THAT THE AMOUNT OF RENT OR OTHER OCCUPANCY CHARGES COMING DUE THEREAFTER SHALL BE DEEMED TO HAVE BEEN REDUCED BY AN AMOUNT EQUAL TO THE AMOUNT PAID TO THE ASSOCIATION BY OCCUPANT. OCCUPANT AND UNIT OWNER HEREBY RELEASE THE ASSOCIATION FROM AND AGAINST ANY AND ALL COSTS, EXPENSES, DAMAGES, CLAIMS OR LIABILITY ARISING OUT OF THE PROVISIONS OF THIS JOINT RESPONSIBILITY PROVISION AND ACKNOWLEDGE THAT EACH HAS CAREFULLY REVIEWED AND UNDERSTOOD THE JOINT RESPONSIBILITY PROVISION, INCLUDING THE ENFORCEMENT THEREOF. NOT WITHSTANDING ANYTHING ELSE IN THIS AGREEMENT, THE OCCUPANT WILL NOT BE LIABLE FOR AMOUNTS DUE TO THE ASSOCIATION GREATER THAN THAT DUE TO THE UNIT OWNER UNDER THE OCCUPANCY AGREEMENT.

Unit Owner Occupant

Within five (5) days of the execution of any Lease, the Unit Owner shall deliver a copy thereof to the Board for the sole purpose of assuring that the Joint Responsibility Provision has been included in the Lease. The Board shall, within five (5) days of any receipt of a Lease either approve or disapprove of the Lease. If the Board disapproves of the Lease, the Board shall specify the reasons for such disapproval, and the Unit Owner shall cause the Lease to be modified as required by the Board. If the Board fails to either approve or disapprove the Lease within said five (5)-day period, the Lease shall be deemed approved.

Notwithstanding the failure by any Unit Owner to include the foregoing provision in any Lease for any unit within the Association, the foregoing provision shall be deemed to be included as part of any Lease between a Unit Owner and any Occupant as if set forth in full in such Lease.