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Proposed Rule Amendments

Dear Homeowner:

As you know, the Board of Directors (“Board”) for the Association is responsible for the management, operation and maintenance of our community, as well as the conduct of residents and their families, guests and invitees while in our community. To facilitate the management and operation of our community, the Board has been given the power to adopt reasonable rules and regulations relating to the operation and use of the Common Area, Exclusive Use Common Area and Units. California Civil Code section 4350 et seq. and Article 3, Section 3.7.1 of the Association’s CC&Rs grants the Board this power.

The Board has determined that amendments should be made to the Facilities & Services Advisory Committee (FSAC) Charter, Rule 2.12.4 of the Rules & Regulations relating to estate sales, and Rule 2.3 of the Rules & Regulations relating to renting or leasing a residence. The Board also determined that it is in the best interests of the community to establish a Lifestyles Advisory Committee and to entirely restate the Enforcement Policy and Schedule of Monetary Penalties. Copies of the verbatim proposed amendments to the FSAC Charter, Rule 2.12.4, Rule 2.3 are posted with this notice as well as the proposed Lifestyles Advisory Committee Charter and the proposed restated Enforcement Policy and Schedule of Monetary Penalties.

The purpose of the proposed amendment to the FSAC Charter is to change the maximum number of committee members from seven (7) to eleven (11). The intended effect of this proposed amendment will be that more people may participate as members of the FSAC committee.

The purpose and intended effect of the proposed amendment to Rule 2.12.4 is to expand the number of days an estate, probate or liquidation sale can be held in the community at a residence from one day to two days as long as a two-day sale is approved by HOA management in writing. An HOA permit to hold an estate, probate or liquidation sale will need to be issued before holding either a one-day or two-day sale.

The purposes of the proposed amendments to Rule 2.3 are to eliminate a conflict between the Rule 2.3 and CC&Rs Section 2.6.2 regarding the minimum rental period, to provide a definition of “responsible vacation rental program administrator” as this term is referenced in CC&Rs Section 2.6.2.

The purposes and intended effects of the proposed restated Enforcement Policy and Schedule of Monetary Penalties are (1) to define the procedure by which Owners may be found to be in violation of the Association’s governing documents as well as to ensure that Owners charged with allegedly violating the governing documents receive “due process” and (2) to more effectively deter governing document violations.

The purpose and intended effect of the proposed Lifestyles Advisory Committee Charter is the creation of such a committee as described in the proposed charter.

Please note, California Civil Code (“Code”) section 4360 grants homeowners a twenty (28) day period to review and comment on most rules and rule amendments prior to their adoption. In accordance with section 4360, please provide the Board with any comments regarding this proposed rule you would like it to consider prior to voting on whether to adopt the same.

Please note that if adopted by the Board, these rules will immediately go into effect.

Once the Board votes on this matter, the Board will notify all homeowners of the outcome of the vote.

Thank you in advance for taking the time to read this letter and for providing the Board with your feedback.

Sincerely,

Board of Directors

Sun City Shadow Hills Community Association