SAMPLE HOMEOWNERS ASSOCIATION

PAYMENT PLAN STANDARDS

These payment standards are adopted to ensure a fair and reasonable approach for the Board in assisting owner's with past due obligations and in promoting the identified objectives whenever possible.

Objectives:

The Board shall adhere to the below identified objectives during the process of evaluating and deciding an owner's Request for Payment Plan.

1. Refrain from interference with ownership rights;

2. Never ostracize, belittle or otherwise impugn the integrity

of a delinquent owner(s);

3. Promote a harmonious relationship between delinquent owner(s),

the Board, and members;

4. Cure delinquency as soon as feasible; and

5. Respect the privacy of the delinquent owner(s).

Factors for Consideration:

The Board shall consider all relevant factors in determining a payment plan that both promotes the objectives identified above including, but not limited to, the following:

1. The circumstance, if any, which has caused the delinquency.

2. Financial, health or other hardship of owner(s).

3. Loss of employment, income or support.

4. Divorce or death.

5. Current and future ability to pay.

6. Ability to cure delinquency within 12 months.

Standards:

The Board shall use the following standards when evaluating and deciding on an owner's Request for Payment Plan.

1. The Board shall consider each Request for Payment Plan on a case-by-case basis.

2. The Board shall make best efforts to devise a payment plan that does not exceed twelve (12) months of payments.

3. The Board shall include in the payment plan any future assessment(s) which will become due during the payment plan period.

4. The Board retains the right to modify already agreed upon payment plans, upon application by an owner.

5. The Board shall approve modifications to Payment Plans in exceptional cases, where there is a changed circumstance.

6. The Board shall not arbitrarily refuse a reasonable Payment Plan Request.

7. The Board cannot forgive an assessment

Board of Directors

Homeowners Association

Fiscal Year 2013