ANDALUSIA HOMEOWNERS ASSOCIATION

ANDALUSIA RESIDENTS HANDBOOK (updated 12/7/17)

Introduction

Your Andalusia Homeowners Association Board of Directors has created the following "Residents Handbook" document in an effort to address some of the issues associated with living in a Common Interest Development (CID).

A CID is a different environment from that of a traditional home, where the resident is solely responsible for its maintenance and appearance and can do as he or she sees fit.

This handbook is an overview of the rules, regulations, and policies of the Association, as well as the responsibilities of each resident, whether owner or tenant. Please use this in conjunction with your copies of the governing documents ("CC&Rs") when questions arise regarding the proper use of residences and the common area.


TABLE OF CONTENTS

To view the information in any of the following sections, simply click on the section name.

1. Assessments
2. Board Of Directors
3. Committees
4. Exclusive Use of Common Area
5. Garages
6. Garbage and Trash Removal
7. General Rules
8. Outside Storage
9. Owner and Resident Responsibilities
10. Owners of Real Property (updated 12/7/17)
11. Penalties
12. Pets
13. Pool and Spa
14. Recreation Center
15. Renting the Residence
16. Residences, Grounds, and Architectural Control
17. Street, Parking, and Towing
18. Violations

Attachment I: Access to Association Records (Resolution)
Attachment II: Delinquent Assessment Collection Policy
Attachment II: Rules and Regulations Concerning Leasing or Renting Units
Attachment IV: Enforcement Policy for Non-Compliance with CC&Rs
Attachment V: Insurance Deductible Payment Policy
Attachment VI: Investment Policy



1. Assessments

The Board of Directors is responsible for the levy of regular and special assessments sufficient to perform it obligations under the governing documents. These assessments fund the necessary operating and reserve obligations.

The Association's Board of Directors may increase the annual assessment by up to 20% per year or impose a 5% annual aggregate special assessment without a vote of the Association members. Assessment increases above the aforementioned limits allowed must be approved by the membership.

Special Assessment: Special assessments may be levied equally to each homeowner for the Association to meet urgent financial obligations such as unanticipated expenses, inadequate budgetary funding, or emergency repair funding.

Default: Assessments are the personal obligation of each owner. In the event of default of payment of any assessment, the amount of the assessment, whether regular or special, shall become a lien against the property and could result in foreclosure (see Attachment II - Delinquent Assessment Policy).

Fines: Homeowners are subject to fines plus legal and administrative costs, if any, for each violation of the governing, policies, rules and regulations made by the Board of Directors. Monies received go into the Association's General Fund. Fine for the first violation is $50. Second violation generates a fine of $100.

Violation by Tenants: If a tenant violates any of the governing documents of the Association, the owner of the residence will be held responsible for payment of the fine(s).

See also Attachment II: Delinquent Assessment Policy

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2. Board of Directors

The powers of the Board of Directors are vested in the Amended and Restated Enabling Declaration, the By-Laws, and in certain provisions of the California Civil Code. Some of the duties and responsibilities of the Board of Directors include: providing proper care and maintenance to the common area, payment of Association financial obligations, protecting the legal rights of the Association, and establishing reasonable rules and regulations necessary to preserve the integrity of the units, common area, and facilities.

The Board of Directors is elected from the membership of the Association, and Board members serve a two (2) year term. Only owners, who are members of the Association, may serve on the Board. A period of time is set aside at each Board of Directors meeting to take comments and questions from owners. Owners and/or residents may also communicate with the Management Company.

All owners, residents and their guests must comply with the Amended and Restated Enabling Declaration, By-Laws, Handbook of Rules, and any other policies. Owners are liable for their actions, as well as the actions of their guests, tenants, and guests of tenants.

Each owner and resident will be notified in writing or by newsletter of any new rules or restrictions set forth by the Board of Directors before these rules become effective.

Meetings of the Board of Directors: Meetings of the Board of Directors are held monthly. The date, time, and location of the meeting will be in the Association newsletter and are included on the monthly dues statement. Homeowners are encouraged to attend these meetings.

See also Attachment I: Access to Association Records

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3. Committees

All homeowners are strongly encouraged to contribute their time and effort to the Andalusia Homeowners' Association. Committees assist the Board of Directors and are formed on an as-needed basis. Some committees are:

Architectural Control: Makes recommendations to the Board and reviews architectural modification requests (see Architectural Modification Form).

Budget: Works with management and the Board to prepare the budget for the coming fiscal year, advises the Board of Directors of maintenance items due in the next fiscal year, and plans for necessary funding for the Association.

Landscape: Monitors the landscaping, advises the Board of Directors of landscaping maintenance needs, and advises the Board of Directors of the performance of the landscaping contractor.

Other Committees: Other committees may be formed as needed. Please contact the Board of Directors or the Management Company or attend a Board meeting if you are interested in working on a committee. Existing committtees can be found here.

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4. Exclusive Use of Common Area

Patios and Balconies: Patios and balconies are defined as common area to which the unit owner or tenant has exclusive use. Although patios and balconies are "exclusive use common areas" or "restricted common areas," these areas are still subject to common area regulations.

Patios and balconies must not be used for storage. Unsightly items, visible from the exterior of the home, must not be placed on the patio. In addition, all patio furniture must be white, and the bases of all patio furniture items must not scratch or tear the protective membrane over the surface of the patio or balcony.

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5. Garages

Garage doors require regular maintenance, lubrication, and tightening. It is strongly recommended that periodic preventive maintenance in order to maintain a properly functioning garage door.

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6. Garbage and Trash Removal

All garbage must be in cans, recycling containers, or plastic bags and must be left curbside on the day of pick up. Boxes and other large items of trash may not be left in the common area. All containers must be brought in on the day of garbage pick-up.

Discarded items such as furniture, lumber, clothes are not to be placed in the garbage pick-up area. Owners and residents must make arrangements for removal of these items. Call the Salvation Army or Goodwill Industries for pick-up.

Owners are responsible for the removal of garbage and trash left by vacated tenants.

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7. General Rules

Quiet hours are from 10:00PM until 8:00AM.

All Andalusia residents and their guests should observe consideration for others.

Any social functions, parties, etc., should not create a noise nuisance for any residents.

No unit shall be used in such manner as to obstruct or interfere with the enjoyment of other residents.

Homeowners are responsible for damage done by themselves, their tenants, renters, and their guests.

Offensive and illegal activities are prohibited.

Keep stereo volume to a reasonable level. If possible, place stereos away from adjoining walls to avoid disturbing neighbors.

Residents and guests shall avoid honking car horns except in emergency situations.

Keep bicycles, toys, and similar articles out of driveways and walkways.

Drive cautiously, not exceeding five (5) miles per hour, and watch for children and pets.

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8. Outside Storage

Common area storage is prohibited. Owners and residents are prohibited from storing any item in the common area.

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9. Owner and Resident Responsibilities

Should the Association be forced to remove any articles from the common area, the Association will charge the responsible homeowner for disposal of the articles.

Abuse, negligent or willful damage, littering, or inappropriate use, which by reasonable standard of conduct could be considered offensive, unlawful, damaging or a nuisance to others is subject to discipline by the Board of Directors. Costs for any such actions taken by the Board will be assessed to the owner of the unit.

Use of the common area must not infringe upon, or restrict the use of the area by others. (i.e., blocking walkways, driveways, fire lanes, or limiting access by others).

Andalusia Homeowners' Association is a residential property and as such, no commercial activities will be conducted.

Those who ride bicycles, skateboards, roller skates, wheeled toys, or other vehicles do so at their own risk within the common area. The Board of Directors and the Management Company assume no liability for any and all accidents that may occur.

Parents are responsible for the supervision of the their children in the common area.

Residents are responsible for notifying management when there will be a house sitter in their home or if the resident will be away for more than one (1) week.

The speed limit throughout the Andalusia complex is five (5) miles per hour.

All guests must park in the common area parking spaces or outside of the community.

Any vehicles producing excessive smoke or loud, objectionable noise may be prohibited from the Andalusia property. Once notice has been issued, the vehicle will be subject to tow at the expense of the owner.

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10. Owners of Real Property (updated 12/7/17)

Owners own their Unit. The Association has certain maintenance obligations that are included in the Amended and Restated Enabling Declaration. Items outside of the interior surfaces of perimeter walls, floors, ceilings, etc., are usually the responsibility of the Association unless precluded in the governing documents. Windows and some exclusive use common area are typically the responsibility of the homeowner unless precluded in the governing documents. The regulations that follow in Sections 10.1, 10.2, 10.3 and 10.4 below further clarify respective Owner and HOA responsibilities found in CC&R Article V, Section 5.1, Duties, Paragraph A, Maintenance, and Article IX, Section 9.7, Owners’ Right and Obligation to Maintain and Repair.

10.1 Maintenance Obligations

All repairs of the Unit interior, Unit furnishings, and/or utility installations, appliances, and/or fixtures that service the Unit (i.e., light fixtures, telephone and cable installation, sinks, bathtubs, etc.) shall be at the Owner’s expense. Condominium insurance policies shall be purchased for each Unit by each Owner. These policies protect against personal property damage and theft, living expenses for Units that must be vacated, any upgrades including any floor and wall surface materials (e.g., paint, wallpaper, mirrors, carpets, tiles, and hardwood floors), and potential liability for Owner damage caused to other Owners’ units.

10.2 Water Damage and Mold Policy

To reduce the presence of mold, fungi, spores, pollens and other book tentacle substances, or other allergens (collectively “Mold”) within the Unit, the Owner shall inspect the interior of their Units not less frequently than once each quarter to check for water leaks or other breaches of the watertight integrity of the interior, and for the presence of Mold. If any water leaks and/or Mold are detected within the Unit, the Owner shall immediately notify the Association and take appropriate corrective steps to repair the leak, and/or remove the Mold and to maintain proper ventilation within enclosed areas, and to maintain humidity levels to reduce the risk of Mold growth, and to take such other prudent steps as may be appropriate to prevent Mold growth, or eliminate any existing Mold. An Owner that delays reporting (or fails to immediately report) any water leaks, water or and/or other damage to the Association may be assessed a special assessment for the increased costs incurred by the Association resulting from the Owner’s delay or failure to report. Where possible without incurring a delay, all reports given to the Association pursuant to this section should be in writing. Mere receipt of notification by the Association does not create a duty for the Association to make repairs. Repair work that is allocated to an Owner as set forth herein remains that Owner’s responsibility even if notification is given.

The repair, replacement or restoration of the Unit interior, Unit furnishings, utility installations, appliances, and/or fixtures that service the Unit, and all personal property of the Owner, or his or her guests, tenants or invitees, of any Unit, that is due to and/or results from water infiltration and/or water leaks from any source, unless caused by the gross negligence of the Association (its Board, officers, manager and/or employees), shall be borne by the owner of said Unit. In the absence of gross negligence of the Association, each party is responsible for repairing their own damage. This means the Association repairs the Common Areas and the Owner repairs any damaged cabinetry, floor coverings, personal property, etc. Individuals bound by this policy agree to bear the risk of such loss, and the Association shall not be liable to reimburse them for property damage that is not covered by the Association’s insurance and/or any applicable insurance deductible.

10.3 Expenses for a Unit Needing to be Vacated During Corrections or Repairs

Each Owner, or his or her guests, tenants or invitees, is solely responsible for food, housing, and all other expenses incurred by that Owner, or his or her guests, tenants or invitees, during any period the Unit must be vacated for maintenance, repairs and/or pest control.

10.4 Architectural Modifications

An owner shall not make structural modifications or alterations in or outside of his or her unit house without first submitting a written request to the Board of Directors or Architectural Control Committee and receiving written approval from the Board for the described changes. (See Residences, Grounds, and Architectural Control for more information.)

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11. Penalties

Each homeowner may be subject to a penalty for any infraction of the CC&Rs and/or Rules of the Association, caused by the homeowner and/or their guest or by the residents and/or their guests.

All penalties levied against a homeowner shall be uniform as to all homeowners and shall be based upon the following guidelines:

1. For a first violation, written warning with a specific date for correction of the issue will be sent.

2. If the violation is not settled by that date, the owner will be sent a letter inviting them to a hearing before the Board of Directors. Failure to attend will result in an automatic fine. The Association's schedule of fines is as follows: First Violation: $50; and Second Violation: $100. Payment of damages caused by a homeowner, resident or guest of a homeowner or resident, shall be in addition to the above penalties.

See Attachment IV: Enforcement Policy for Non-Compliance with the CC&Rs, Rules, etc.

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12. Pets

All dogs must be leashed and supervised when in the common area.

Pet owners shall immediately remove animal waste from the common area and dispose of it in a sanitary manner.

No animal may be permitted to chase vehicles or molest passersby. Pet owners are responsible for any damage caused by their pet.

No animals of any kind shall be kept for commercial purposes or for breeding.

Pets must be prevented from making excessive noise. Pet care must prevent the creation of obnoxious odors or unsanitary conditions.

Alameda County regulations concerning the number of pets allowed per household apply.

Residents with complaints should try to alleviate any and all problems directly with the pet owner. If dissatisfied with the result, residents should contact the Management Company.

No pets are allowed in the recreation area.

All unleashed, untagged, or unattended animals should be reported to Animal Control.

Animals causing a nuisance to others or damaging the common area/property may be prohibited from the development.

Pets may not be kept in outdoor kennels.

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13. Pool and Spa

Cooperation in abiding by the following rules and regulations will allow pleasant enjoyment of the pool and spa area. Parents and/or residents are requested to advise children and guests of these rules and regulations.

A. Pool Rules and Regulations

1. THERE IS NO SUPERVISION OF THE POOL AREA. USE IT AT YOUR OWN RISK.
2. Designated pool hours are from 7:00AM to 10:00PM.
3. No children under the age of 14 are allowed in the pool area without a parent or other adult over 18 present. Any child unaccompanied by an adult will be asked to leave immediately.
4. Shower before entering the pool and re-entering after applying lotion or oil.
5. Proper swim attire is required. Cut-offs are prohibited in the pool. Remove hairpins and metal clips from hair before entering the pool and spa.
6. Barbecues are not permitted in the pool area.
7. Glassware, glass bottles or other glass products are not permitted in the pool area.
8. Alcoholic beverages are not permitted in the pool area.
9. Entry to the pool area is permitted through the gates only. Do not open the gate for those who do not have a key.
10. Infants who wear diapers are not allowed in the pool. Plastic or rubber cover pants are allowed.
11. Swimming aids such as kick boards, life preservers, and children's flotation devices are acceptable. All other toys, games, furniture and accessories are not allowed.
12. Running, rough play, climbing, sitting on fences, or other similar behavior is not permitted.
13. No bicycles, skateboards, roller-skates, or in-line skates are to be brought to the pool area.
14. Radios are permitted, but only with the use of headphones.
15. Smoking is not permitted in the pool area.
16. No dogs or other pets are allowed in the pool area at any time.
17. Life-saving equipment is to be handled by qualified pool maintenance people only. Report all malfunctions to the Management Company.
18. Members are responsible for the conduct of their guests and must see that the Rules are obeyed. Residents are limited to four (4) guests per residence and must be accompanied at all times by an adult resident.
19. Private pool parties are not allowed without prior written approval of the Board.
20. Residents are responsible for removing any food or garbage that they bring into the pool area and/or cleaning up any messes, etc., before leaving the pool area.
21. The pool cannot be exclusively reserved.

B. Spa Rules and Regulations

1. Spa hours are the same as the pool (i.e., 7:00AM to 10:00PM).
2. Children under the age of 14 years are not allowed in the area unless accompanied by a resident adult (18 years or older) who must remain in the spa as long as the child is present.
3. Children four (4) and under are never allowed in the spa.
4. No diving, jumping, horseplay, or toys are allowed in the spa.
5. The spa must be covered after each use.
6. Residents and guests should be reminded that the spa is used for its therapeutic value and care should be exercised as to avoid danger. It is recommended that any people with heart trouble, expecting a child, or persons who have been drinking alcohol should not use the spa.
7. The spa cannot be exclusively reserved.
8. Rules regarding food and beverages in the pool area apply.

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14. Recreation Center

The following rules and regulations have been drafted to address the use of the recreation center by residents and their guests. The intent of these rules is to allow residents and their guests to utilize the recreation center, while still preserving each resident in the community's right of the quiet enjoyment of his or her home.

It is the hope of the Board of Directors that each resident will adhere to these rules and regulations, thereby preserving the accessibility of the recreation center for all residents in a relaxed, casual environment. However, should the Board of Directors find that this system of self-accountability is unsuccessful in preserving the recreation center, they may revise these rules and regulations to restrict or limit access to the clubhouse by re-keying the locks and requesting that all requests to use the recreation center be scheduled in advance from a responsible party. Remember, Andalusia Homeowners Association is a community of owners who share in the cost of maintaining, protecting, and enhancing the value of everyone's property. Thank you in advance for careful review of the following rules and regulations, and please don't hesitate to contact management should you have any questions and/or wish to discuss any of the rules and regulations.

A. General Rules and Regulations

1. Designated Recreation Center hours are from 8:00AM to 10:00PM on weekdays and 9:00AM to 10:00PM on weekends.
2. If the recreation center has been reserved for a private function, it may not be used by other residents.
3. Owners are financially responsible for any damage to furniture, appliances, walls, etc., by themselves, their tenants, and their guests.
4. Residents under 18 years or age are restricted from using the Recreation Center unless accompanied by a responsible adult that is at least 21 years of age or older.
5. Pets are not permitted in the Recreation Center.
6. All person using the Recreation Center shall be properly clothed, and bare feet are not permitted in the recreation center.
7. Smoking is prohibited in the Recreation Center.
8. Alcoholic beverages are allowed in moderation.
9. Live bands or heavily amplified music are not permitted.
10. Noise, radios, amplified music, etc., must be kept at a moderate level, so as not to disturb residents who live adjacent to the Recreation Center.
11. Furniture and appliances should not be moved from the Recreation Center or placed outside.
12. Clubhouse equipment must be used for its intended purpose (i.e., exercise on exercise equipment, etc.).
13. Residents should report any damage noted and/or non-functioning appliances to management promptly.
14. Each resident shall be issued one (1) key to the Recreation Center and may not duplicate this key or provide it to their guests or other non-residents.
15. Residents must adhere to the posted occupancy of the Recreation Center as established by applicable law.
16. The Board of Directors may authorize exceptions to these rules and regulations on a case-by-case-basis, if they find good cause to do so.

B. Rules and Regulations Concerning the Reservation of the Recreation Center

1. The Recreation Center may be reserved for private functions by completing and returning a Recreation Center Reservation Form (online, or contact management), and providing both a non-refundable $50 usage fee for administration and inspection following the reservation and a $100 refundable deposit to management at least two weeks before the anticipated reservation date. Any costs associated with the removal of garbage, cleaning of the recreation center, repair of damage caused by residents, their guests, etc., will be deducted from the $100 deposit.

2. The Recreation Center shall be reserved on a first-come, first-served basis and may not be reserved for events open to the general public, such as sales events, fund raisers, etc. In addition, the recreation center may not be reserved more than one time during any given weekend. For example, if one resident has already reserved the recreation center for Saturday, another resident may not reserve the recreation center on Saturday or Sunday of the weekend during which the prior reservation is made.

3. The Recreation Center may not be reserved by parties who are not members and/or residents in the Association.

4. The pool and spa may not be exclusively reserved and are not included in the reservation of the recreation center.

5. The Recreation Center must be reserved by an adult who is 21 years of age or older, and the reservation must be made by an adult who will be responsible for the supervision of any minors present throughout the duration of the reserved function.

6. Overnight functions are prohibited.

7. Exterior decorations are prohibited, and any decorations may not be permanently affixed (i.e., nailed, drilled, etc.) to the interior walls of the Recreation Center.

8. Persons should not congregate outside of the Recreation Center for any reserved function.

9. After any reserved functions, the resident reserving the Recreation Center is responsible for cleaning the recreation center thoroughly, removing any garbage and debris, returning furniture to its original location, and making sure all lights and air conditioning or heating equipment are turned off, and doors and windows are shut and locked.

10. The Board of Directors may authorize exceptions to these rules and regulations on a case-by-case-basis, if they find good cause to do so.

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15. Renting the Residence

See Attachment III: Rules and Regulations Concerning Leasing or Renting Units

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16. Residences, Grounds, and Architectural Control

Residences shall be occupied as a single-family residence only.

No trade or business shall be conducted, except that the residence may have an in-home office, so long as this does not interfere with the quiet enjoyment of other residents and does not include visiting clients.

An owner shall not make structural modifications or alterations in his house without first submitting a written request (Architectural Modification Request Form) to the Board of Directors or Architectural Control Committee and receiving written approval from the Board for the described changes. The request must show plan specifications, color, shape, materials, and location of the proposed installation. The Board must answer any and all written requests within thirty (30) days of receipt of the request. Failure to do so shall mean and imply that the Board has no objection to the proposed installation, alteration, or modification.

Approval/disapproval of the proposed installation will be made in accordance with the governing document guidelines and standards of appearance for the complex. Failure to make a written request for any external modifications or installations could result in mandatory removal of the modification or installation at the homeowners' expense.

No resident or owner shall install electrical or telephone wiring, TV antennas, radio antennas, air conditioning units, cable televisions lines, washers, dryers, etc., on the exterior of the unit, without first submitting a written request (Architectural Modification Request Form) to the Board of Directors.

No alterations or additions shall be made to the common area landscaping without first obtaining written permission and approval from the Board of Directors.

Auto Repairs: Residents may not use their unit or garage for major auto repairs of any motor vehicle except in the case of strict emergency. Tune-ups, changing of oil or antifreeze, with proper equipment, are permitted. Disposal of oil and antifreeze must be done with approved oil recycling and disposal centers and must not be disposed of in the common area, sewers, housing toilet system, or landscaped areas.

Hazardous materials: Residents must not keep any substance in the unit or garage that would increase the Association's insurance rate.

The storage of dangerous, chemicals, explosive or flammable liquids in the unit or the common area is prohibited. Please check with the Fremont Fire Department concerning storage and safety of chemicals or hazardous materials.

Chimney Sweep: It is highly recommended that all residents have their chimneys swept once a year or after two cords of wood have been burned. If a fire begins because of negligence or improper fireplace maintenance, the owner will be held liable for any and all damages.

Signs: The following are guidelines for signs advertising your house for sale or rent:

1. One "For Sale" or "For Rent" sign with reasonable dimensions may be displayed in the window or on the balcony or patio of the unit.
2. Prior written permission from the Board of Directors is required to display any sign to the public view or from the residence or the common area.
3. Any owner, who wishes to have their unit address placed in the "For Sale" or "For Rent" indication on the entrance map, should contact the Management Company.

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17. Street, Parking, and Towing

A. Street and Parking Rules

1. Speed Limit: 5 mph throughout the community.
2. No vehicle may be parked anywhere on the streets, which are fire lanes. Guests may park in Guest Parking spaces as outlined below.
3. Unauthorized vehicles (trailer, camper, mobile home, commercial vehicle, recreational vehicle, truck having a capacity of greater than 1/2 ton, or van having seating capacity in excess of eight persons or vehicle which is too large to fit within the garage or parking space, boat, inoperable automobile, or similar equipment) are prohibited anywhere within the community.
4. No resident or occupant shall have or park more than two (2) permitted vehicles in the community at any one time.
5. Vehicles shall not be parked backwards in parking spaces.
6. No garage space may be converted into any use (i.e., storage room, recreational room, office, etc.) that will prevent its use as a parking space for the number of vehicles the space was designed to contain.
7. Residents are only to use their garage and assigned parking spaces for the parking of their vehicles.
8. No skateboarding, in-line skates, or roller-skating allowed.
9. No shopping carts may be left anywhere on the property.
10. If a permit system is used to monitor vehicular parking, residents must place their parking permits in the rear window of their vehicles when parking in their respective assigned parking spaces.

B. Guest Parking Spaces

No owner or resident may park their vehicle in guest parking spaces at any time. Vehicles will be towed in accordance with the Towing Policy below.

Guests may not park their vehicles in the guest parking spaces in the development for more than two days in any seven-day period, regardless of the time the vehicle is parked in the space. On three-day holiday weekends, guest vehicles may park in guest parking for up to three days in any seven-day period. For example, if a guest vehicle parks in a guest parking space for any length of time (overnight, fifteen minutes, one hour, etc.) on a Monday and then returns and parks in a guest parking space on Tuesday, the vehicle may not be parked in a guest parking space on Wednesday, Thursday, Friday, Saturday, or Sunday of that week (i.e., the seven-day period beginning when the vehicle first parked in guest parking). Similarly, if the vehicle parks in a guest parking space for any length of time on a Monday and then returns and parks in a guest parking space on the Friday, the vehicle may not be parked in a guest parking space until the Monday following the Monday that the vehicle initially parked in the space.

Guests visiting in excess of two days within a seven-day period or in excess of three days on a three-day holiday weekend must display a permit in the rear window of their vehicle. This permit must be requested from the management company. Otherwise, they must abide by the rules, which apply to residents, meaning they must park within a garage or outside the development.

Guests who are going to stay for two weeks or less will be issued a permit with a limit of one permit per guest being issued within any 6-month period.

C. Towing Policy

The Board of Directors, Parking Committee, or management company will arrange for towing of vehicles at the vehicle owner's expense under the following circumstances:
  • Any vehicle parking on the street (i.e., fire lane)
  • Any unauthorized vehicles parked in either assigned parking spaces or handicapped parking spaces
  • Vehicles parking in guest parking who are in violation of the above-stated rules

Notification: After a vehicle has been parking in guest parking for 48 hours within any seven-day period, a towing notice will be placed on the vehicle, notifying the owner of that vehicle that it will be towed if it is still in a guest parking space 24 hours later.

Towing: If the vehicle is still parking in guest parking after another 24 hours (a total of 3 days) and does not have a guest permit, it will be towed at the vehicle owner's expense.

In addition to the above towing policy for dealing with parking violations, the Board of Directors may choose to enforce the governing documents in regard to parking violations with the use of hearings and fines.

If you have a parking situation that conflicts with the above restrictions concerning parking, please contact management to discuss your concern and to discuss alternative parking arrangements for you and/or your guests.

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18. Violations

Each resident shall comply with the provisions of the governing documents, decisions and rules of the Association and the Board of Directors or its authorized agents. Failure to comply shall be grounds for action to recover sums due, for damages, or for injunctive relief. An owner shall reimburse the Association for any and all expenditures incurred in repairing or replacing damage to the common area through his or her negligence or fault.

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ATTACHMENT I: ACCESS TO ASSOCIATION RECORDS (RESOLUTION) (updated 9/1/06)

Whereas the Association keeps correct and complete books and records of account and Minutes of the proceedings of its members and Board of Directors;

And whereas California Corporation Section 8333 provides that the owners shall have the right, during reasonable business hours, to inspect the accounting books and records of the Association and Minutes of the proceedings of the members and the Board and committees of the Board;

And whereas it is desirable to impose certain reasonable restrictions to maintain control;

Now, therefore, be it resolved that the following requirements are hereby established for the inspection of the records of the Association:

1. A notice of intent to inspect must be submitted in writing to the Board of Directors or its duly authorized managing agent at least five (5) days prior to the planned inspection.

2. The notice must specify, with particularity, which records are to be inspected.

3. All records shall be inspected at the registered office of the Association located at Community Management Services, Inc., 1935 Dry Creek Road, Suite 203, Campbell, CA 95008-3631, between the hours of 9:00AM and 5:00PM, Monday through Friday.

4. At the discretion of the Board of Directors or its agent, certain records may only be inspected in the presence of a Board member or employee of the managing agent.

5. The person(s) requesting access shall not disrupt the ordinary business activities of the registered office or its employees during the course of inspection.

6. No records may be removed from the office without the express written consent of the Board of Directors.

7. When applicable, all costs of inspection shall be borne by the person requesting access. In the event the person reviewing the records is desirous of making photocopies, the person requesting same will incur all costs of copying.

8. Limitations of Access: Consistent with an individual's right to privacy and applicable law, the following records will not be made available without the express written consent of the Board of Directors:
  • Minutes of Executive Sessions, where existent
  • Minutes of Administrative Hearings pertaining to the imposition of punitive measures
  • Where disclosure would violate a constitutional or statutory provision or applicable public policy
  • Personnel records
  • Inter-office memoranda
  • Litigation files
  • Confidential attorney/client correspondence or notes
  • Preliminary data, information, or investigations which have not been formally approved by the Board of Directors, such as contractor bid prospects
  • Where disclosure may result in an invasion of personal privacy, breach of confidence, or privileged information
  • Where disclosure would unreasonably interfere with or disrupt the operation of the Association
  • Where access results in a private harm or damage that outweighs the right to access

9. The Association is under no obligation for any additional information other than that which is required by law.

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ATTACHMENT II: DELINQUENT ASSESSMENT COLLECTION POLICY STATEMENT (Revised April 2006, updated 9/1/06)

1. Regular assessments are due, in advance, on the first (1st) day of each assessment period and delinquent if not received, in full, by the Association within fifteen (15) days after the due date thereof, unless the governing documents provide for a longer period of time. Special and Special Individual Assessments are due on the date(s) specified upon imposition and each installment thereof shall be delinquent if not received by the Association within twenty (20) days after it is due. A late charge of ten dollars ($10.00) or 10%, whichever is greater, shall be due on any such delinquent assessment.

2. At the option of the Association, interest shall be due on all such amounts, once due and unpaid for thirty (30) days, at the rate of twelve percent (12%) per annum.

3. If any portion of any such assessment, late charge, interest or cost of collection remains unpaid sixty (60) days after the original due date thereof, a "Letter of Intent" to file a Notice of Delinquent Assessment ("Lien") will be prepared and sent to the record owner(s). Please be advised that the Association has the right to collect all reasonable costs of collection.

4. All such amounts, and all other assessments and related charges thereafter due to the Association until all such amounts are paid, must be paid in full and the Association shall not be required to accept any partial or installment payments from the date of the institution of an action to enforce the payment of delinquent amounts to the time that all such amounts are paid in full.

5. If all such amounts have not been received ninety (90) days after the original due date thereof, a Lien will be prepared and recorded as to the delinquent property and the owner(s) thereof, and all resulting collection fees and costs will be added to the total delinquent amount.

6. 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 non-judicial foreclosure.

7. For liens recorded on and after January 1, 2006, an Association may not use judicial or non-judicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney's fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800).

8. For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an Association may use judicial or non-judicial foreclosure subject to the conditions set forth in Section 1367.4 of the Civil Code.

9. When using judicial or non-judicial foreclosure, the Association records a lien on the 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)

10. In a judicial or non-judicial foreclosure, the Association may recover assessments, reasonable costs of collection, reasonable attorney's fees, late charges, and interest. The Association may not use non-judicial foreclosure to collect fines or penalties, except for costs to repair common 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)

11. 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)

12. 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 charges owed by the owner. An owner has a right to review the Association's records to verify the debt. (Section 1367.1 of the Civil Code)

13. The decision to record a lien must be made by the board of directors in open session by majority vote and recorded in the meeting minutes. The Association must offer and, if accepted, participate in a form of alternative dispute resolution.

14. The decision to initiate foreclosure of a lien for delinquent assessments shall be made only by the board of directors. The board shall approve the decision by a majority vote of the board members in an executive session. The board shall record the vote in the minutes of the next board meeting of the board open to all members. The board shall maintain the confidentiality of the owner(s) by identifying the matter in the minutes by the parcel number of the property, rather than by the name of the owner(s). A board vote to approve foreclosure of a lien shall take place at least 30 days prior to any public sale. The Association must offer and, if accepted, participate in a form of alternative dispute resolution.

15. A non-judicial foreclosure shall be subject to a right of redemption. The redemption period shall end 90 days after the sale.

16. 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. (Section1367.1 of the Civil Code)

17. 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.

18. All payments received by the Association, regardless of the amount paid, will be directed to the oldest assessment balances first, until which time all assessment balances are paid, and then to late charges, interest and costs of collection unless otherwise specified by written agreement.

19. The Association shall charge a "returned check charge" of twenty-five dollars ($25.00) for all checks returned as "non-negotiable," "insufficient funds," or any other reason.

20. All above-referenced notices will be mailed to the record owner(s) at the last mailing address provided in writing to the Association by such owner(s).

21. A member may provide written notice to the Association of a secondary address. If a secondary address is provided, the Association shall send all correspondence and legal notices to both the primary and secondary addresses.

22. The mailing address for overnight payment of assessments is Community Management Services, Inc., 1935 Dry Creek Road, Suite 203, Campbell, CA 95008-3631.

23. The Board of Directors of the Association may revise this policy, either generally or on a case-by-case basis, if it finds good cause to do so.

PAYMENTS

1. 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.

2. 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. Prior to initiating foreclosure, the Association shall offer the owner and, if requested by the owner, participate in dispute resolution (or "meet and confer") or ADR. The decision to pursue either dispute resolution or ADR shall be with the owner, except binding arbitration shall not be available if the Association intends to initiate a judicial foreclosure.

3. 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

1. 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.

2. The Association must inform owners of the standards for payment plans, if any exist. (Section 1367.1 Civil Code)

3. 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 conform to the payment plan standards of the Association, if they exist. (Section 13.67.1 of the Civil Code)

4. The Board may approve a resolution for owners to pay a special assessment over time (payment plan) to avoid a delinquency status. This payment plan shall consist of equal principal installments each due on the first (1st) day of each assessment period and delinquent if not received, in full, by the Association within fifteen (15) days after the due date thereof, unless the governing documents provide for a longer period of time. The unpaid balance of the special assessment may bear interest per annum at the percent determined by the resolution of the Board. If an owner becomes delinquent in a payment plan (defaults), this collection policy will be followed in order to collect the past due amount and any costs.

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ATTACHMENT III: RULES AND REGULATIONS CONCERNING LEASING OR RENTING UNITS (updated 9/1/06)

These rules and regulations have been created to answer questions posed by residents that are not addressed in the First Amendment to the Amended and Restated Enabling Declaration (the Amendment) and clarify information included in this Amendment. These rules and regulations should not be considered a substitute for this Amendment, so please refer to the Amendment for greater detail regarding the lease or rental of units.

In addition, the purpose of the Amendment and these rules and regulations is to protect and preserve property values, the availability of preferred financing through compliance with secondary market standards for similar projects, the active participation and cooperation of the owners in the management of the community by the Board of Directors, and the residential nature and quality of the community by limiting the number of units that are leased or rented.

1. All owners leasing or renting their units prior to May 18, 2000, are required to "register" with the Board of Directors by submitting a copy of their existing lease or rental agreement to management, which are deemed approved. This deemed approval applies to month-to-month lease or rental agreements and/or renewals of existing lease agreements to the same tenant, which are in effect prior to May 18, 2000.

2. All other owners wishing to lease or rent their units must seek approval from the Board of Directors before entering into a lease or rental agreement by submitting a Completed Application and obtain approval prior to leasing or renting their units.

3. Leases or rentals must be for the entire unit and not merely part of the unit. If the owner remains in residence, it is not a "lease" within the CC&Rs Section 7.19B(1).

4. A Completed Application must consist of 1) a written request to lease/rent the unit, which identifies the unit, the proposed lease term, and tenant information; 2) a written lease that specifies the unit, tenant information, the lease term of not less than thirty (30) days, parking space(s) assigned to the unit, and the provision that the tenant is subject to all of the same provisions included in the Governing Documents as the owner and that failure to comply with these provisions will constitute a default of the rental/lease agreement.

5. This Completed Application should be sent to Community Management Services, Inc., 1935 Dry Creek Road, Suite 203, Campbell, CA 95008-3631.

6. Once this Completed Application has been received, the Board will make its determination within thirty (30) days of the date of receipt of the Completed Application. Owners requesting to rent their unit, may also request a hearing before the Board by submitting their request for a hearing with their Completed Application. The hearing must be held within thirty (30) days following receipt of the application, and the Board must render their decision within five (5) days following the hearing. The foregoing time period will not begin to run if the application submitted is not complete. In addition, these time limits may be extended with the written agreement of both the Board and the owner requesting approval to lease or rent his or her unit.

7. If the Board fails to make a determination on a Completed Application or fails to hold the aforementioned hearing, its right to disapprove the request is waived.

8. The Board shall adhere to criteria included in section 7.19E of the Amendment when considering applications for approval to lease or rent units from owners.

9. The Board shall have the authority to approve the temporary leasing of a unit for one year regardless of any quota limitation based on special circumstances, such as a non-permanent job transfer, adverse change in owner's financial condition, or other such hardship.

10. All owners who request to lease or rent their units based on such special circumstances must also include a Statement of Hardship and Request for Board Hearing with their Completed Application.

11. Owners must provide management with the telephone number and/or other contact information for their tenant.

12. Owners are responsible for providing their tenants with a copy of the Governing Documents and all polices, rules, and regulations.

13. Once the quota limitation established by the Amendment has been filled, owners desiring to lease or rent their units may have their name placed on the waiting list by contacting management. Requests of owners on the waiting list will be handled on a first-come, first-served basis. As mentioned above, owners requesting to rent their unit under special circumstances may be considered by the Board once the quota is filled.

14. The Board may utilize the Association's Enforcement Policy for Non-Compliance with the CC&Rs, Rules, etc., when addressing accusations of non-compliance with both the Amendment and these rules and regulations.

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ATTACHMENT IV: ENFORCEMENT POLICY FOR NON-COMPLIANCE WITH THE CC&Rs, RULES, ETC.

Accusations of Non-Compliance: The Incident Report Form

1. The Board will only consider accusations of non-compliance if an Incident Report Form is filled out.

2. No one (including Board members, committee members, etc.) filling out an Incident Report Form may be involved in the decision making process of addressing non-compliance. The Board cannot act as accuser, judge, jury, and executioner.

3. To maintain impartiality, the role of Board is not that of making accusations, but objectively deciding what action, if any, an Incident Report Form requires.

4. Management should not be involved in making accusations for the following reasons:
  1. if management acts as an accuser, then they cannot also act as judge
  2. management's most important role is that of advising on judgment
  3. management can not act as an objective third party when answering a residents call regarding a notice of non-compliance if they were the accuser
  4. if management takes on the role of accusing residents, then they are perceived as an adversarial organization, rather than a place to find assistance in a time of need
5. Accusations may be made by the following parties (provided the person does not also act in the role of judge): 1) by any resident; 2) by a member of a committee appointed by the Board to notify them of accusations of non-compliance; 3) by a Board member; or 4) by management.

6. If an accusation of non-compliance is made during a Board meeting, the Board will direct that owner to contact management after the meeting for an Incident Report Form.

7. The Board will only consider accusations of non-compliance at a Board meeting in executive session if an incident form was received prior to the Board meeting.

8. The Board will consider only one accusation per owner, per month, unless the matter constitutes a liability.

9. The information regarding the accuser will be provided to the accused if a hearing becomes necessary, and the accused party requests the information.

Addressing Accusations: Non-Compliance Letter/Notice

If the Board decides that an Incident Report Form needs to be addressed, the Board will direct management to make a courtesy call to the owner and/or send the standard non-compliance letter/notice, by first-class mail, to the pertinent owner.

Failing To Comply with the Letter/Notice of Non-Compliance: Hearing Notice

If the owner fails to comply with the letter/notice of non-compliance, the Board will direct management to send the standard notice of a hearing by first-class mail and certified mail, to the pertinent owner.

The Hearing: Ground Rules

1. An owner will be given at least fifteen (15) days advance notice prior to the hearing.
2. One purpose of the hearing is to give the owner the opportunity to explain why he/she has not complied with the letter/notice of non-compliance.
3. The Board does not reach a decision regarding the hearing until after the owner has left and in executive session.
4. An owner may decide if he/she wants their hearing conducted publicly or in executive session.
5. The Board's decision will consist of one or more of the following actions/sanctions:
  1. no further action required
  2. a fine of $50 per occurrence (or per month)
  3. conduct another hearing
  4. refer the matter to an attorney
  5. request that the owner participate in mediation or arbitration (i.e., Alternative Dispute Resolution, or ADR)
  6. file a Civil Action against the owner if ADR is rejected
  7. correction of the problem by the Association and the cost applied to the owner's account in the form of a reimbursement assessment
6. The length of time the owner may speak is 5 to 15 minutes.
7. The purpose of the hearing is to fully, fairly, and completely present any and all information the owner thinks may influence the Board or committee determination.
8. The Board or committee should listen to all information presented and not cross-examine the owner or ask any unnecessary questions. Only questions, which would influence their decision, should be asked.
9. The owner should be thanked for taking time to attend and participate in the hearing process.

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ATTACHMENT V: INSURANCE DEDUCTIBLE PAYMENT POLICY

Pursuant to the powers conferred upon it in the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) for the Association, the Board of Directors hereby adopts the following policy regarding losses:

The Association maintains a comprehensive insurance policy insuring against losses resulting from fire, casualty, liability, and other perils. This insurance policy is subject to a deductible amount for claims made.

The individual owner is responsible for the deductible for any loss or damage under the following conditions:
  • Damage or loss, which occurs through the negligence or willful act of an owner, his tenants, pets, family, guests, or invitees.
    • In such cases, the owner shall be responsible for all costs incurred by the Association in repairing such damage or compensating such loss to the extent such costs (including any applicable deductibles) are not covered by the Association insurance proceeds. The insurance company, the fire department, or the Board of Directors, will make the determination of whether negligence or a willful act caused the loss or damage.
  • Damage or loss which originated within the unit or exclusive use Common Area will be the responsibility of the owner to the extent such costs are not covered by the Association's insurance proceeds.
    • The Association will pay the insurance deductible only for damage or loss when the cause originates in the common area.

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ATTACHMENT VI: INVESTMENT POLICY

I. POLICY STATEMENT

Andalusia Homeowners' Association's Board of Directors recognizes their fiduciary responsibility to manage the reserve assets in a prudent manner. Accordingly, the directors have set forth an investment strategy, security selection criteria, and control and review procedures to pursue the stated objectives and goals.

The policy is based on the historical rates for bonds, money market instruments, and inflation. In addition, this policy recognizes any restrictions included in the governing documents as to limitations and requirements for Association funds that are held by a fiduciary. The directors expect that over longer periods of time, the strategy will produce results consistent with history and, therefore, meet the reserve fund's specific goals.

II. GOALS & OBJECTIVES

Andalusia Homeowners' Association capital replacement reserve assets shall be invested in an effort to achieve the following prioritized objectives:

FIRST: Promote and assure the preservation of the reserve fund's principal.

SECOND: Structure maturities to assure availability of assets for that time when reserve analyses anticipate needs.

THIRD: Mitigate the effects of interest rate volatility upon reserve assets.

FOURTH: Achieve long-term investment performance that exceeds inflation by 1-3% on a net after-tax basis.

FIFTH: Restrict investments to those that meet criteria included in the governing documents.

III. INVESTMENT STRATEGY

Select individual securities that have effective maturities of 1 to 3 years.

Structure these maturities so that approximately equal proportions come due each year. With new or matured funds, consistently purchase securities at the long end of the maturity range. Variations may alter the longest maturity and the number of length of periods.

The expectation of this "laddering" strategy is that the reserve assets shall benefit from long-term rates, which are commonly higher than short-term rates, while maintaining ready availability of funds and cash flow. It is further expected that this strategy shall track the middle range of interest rate fluctuation by lessening the impact of any year's particularly high or low rates.

Expectation to this strategy may be employed if reserving a portion for a specific expense. Utilize the most recent reserve funding study to match the effective maturities to the dates of such specific expenses.

It is understood that effective maturity may be sooner than stated maturity.

IV. SELECTION CRITERIA

Securities will be selected with an emphasis upon these characteristics: preservation of capital, quality, effective maturity, and net after-tax return.

A. Cash Equivalents

These include the following:
  • Money market funds of a bank or major brokerage firm
  • Bank certificates of deposit
  • U.S. Treasury or agency securities
  • Equivalent quality securities with maturities of up to three years, unless economic conditions dictate that securities with longer terms are necessary

B. Fixed Income

Utilize taxable income securities for that portion of association income that may be taxable within the lower brackets. Invest in tax-exempt securities above that level if the after-tax return is favorable.

The taxable portion may consist of U.S. Treasury securities, and insured bank certificates of deposit.

Tax-exempt securities will be rated in the AAA quality level by at least one major credit rating agency at the time of purchase or be of equivalent quality if non-rated. For securities that have their credit rating lowered after purchase and securities presently in the portfolio that fall below these criteria, an issue-by-issue review will be conducted. A decision will be made to hold and monitor, or liquidate.

V. Review & Control

Andalusia Homeowners' Association's Board of Directors will meet at least quarterly, or more often if deemed necessary to review the reserves' investment performance. Policy considerations concerning changes of investment strategy or security selection criteria will also require a meeting to gain a consensus.

The performance review will be compared to the goals and objectives of the reserve fund. The directors recognize the price volatility of fixed income investments and note the primary strategy (though not requirement) to hold such securities to their fixed value at maturity.

Monthly statements of the Association's reserved investments will be delivered to the manager. They will provide detailed accounting of current values, income, and transactions. Additional, customized, analytical reports may be available upon request.

Banking and investment professionals may propose specific investment actions to management and/or the directors. An individual designated by corporate resolution will make execution of investments transactions by such professionals only after approval.

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