POLICIES  -  1349 Race St. Condo Assn.

The following list of 17 Policies were adopted by the 1349 Race Street Condo Association Membership on November 16, 2005, to promote responsible governance of the 1349 Race Street Condominium Association in accordance with Colorado Senate Bill 05-100.  The Board reserves the right to modify any of the following Policies, or add to them from time to time, upon notice to the Members.

1  -  Display of Flags and Political Signs:

In accordance with 38-33.3-107.5, it is the policy of the Association that Unit Owners may display the American flag, a Service flag, or a political sign on the inside of a window of a Unit Owner’s residence or on the entry deck of the Unit, under the following conditions:

            A.  Such flags must be displayed in a manner that is consistent with the Federal                       Flag Code, P.L. 94-244, 90 Stat. 810, 4, U.S.C. 4 - 10.

            B.  A single Service flag bearing a star denoting the service of a Unit Owner or             member of the Unit Owner’s immediate family in the active or reserve military             service of the United States during a time of war or armed conflict may be             displayed on the inside of a Unit Owner’s window.

C.  A maximum of one political sign per political office or ballot issue may be displayed on the deck or in the window of a 1349 Race Unit, in accordance with regulations of the City and County of Denver.  Each such sign may not exceed 36” x 40”.  Such signs may not be displayed earlier than 45 days before an election, nor more than 7 days after an election.

2  -  Parking of Emergency Vehicles:

In accordance with 38-33.3-107.5, it is the policy of 1349 Race Street Condo Association that Unit Owners who are required to have an emergency vehicle available at designated periods of time at Unit Owner’s residence as a condition of employment, may park such vehicles in the Unit Owner’s designated parking space at 1349 Race Street, if:

            A.  The vehicle has a gross vehicle weight of 10,000 pounds or less; and,

            B.  The Unit Owner is a bona fide member of a volunteer fire department or is             employed by an emergency service provider, as defined in Section 29-11-101             (1.6), C.R.S.; and,

            C.  The vehicle bears an official emblem or other visible designation of the             emergency service provider; and,

            D.  Parking of the vehicle can be accomplished without obstructing emergency             access or interfering with the reasonable needs of other Unit Owners to use the             driveways within the 1349 Race Street Condo Association property.

3  -  Collection of Unpaid Assessments:

In accordance with 38.33.3-123, if a Unit Owner fails to timely pay assessments or any money or sums due to the 1349 Race Street Condo Association Association, the Association may require reimbursement for collection costs and reasonable attorney fees and costs incurred as a result of such failure, without the necessity of commencing a legal proceeding.

For any other violation of the Association’s declaration, bylaws, articles or rules, any Unit Owner or Owners adversely affected by the failure to comply may seek reimbursement for collection costs and reasonable attorney fees and costs incurred as a result of such failure to comply, without the necessity of commencing a legal proceeding. 

4  -  Alternative Dispute Resolution:

In accordance with 38-33.3-124, in situations that do not involve an imminent threat to the peace, health, or safety of 1349 Race Street Condo Association residents, it is the policy of the Association that disputes between Unit Owners and the Association must make use of mediation as a precondition to the filing of any legal proceedings between the parties.

5  -  Compliance with Mandated Public Disclosures:

In accordance with 38-33.3-209.4, the 1349 Race Street Condo Association Board makes it a matter of policy that:

A.  At least once per year, all 1349 Race Street Condo Association Unit Owners shall be provided a written notice stating the name of the Association, the name of the Association’s current designated agent or management company, the valid physical address and telephone number for both the Association and the designated agent or management company, the initial date of recording of the declaration, and the reception number or book and page for the main document that constitutes the declaration.  If, during the year, the Association’s address, designated agent or management company changes, the Association shall provide all Unit Owners with an amended notice within 90 days after the change.

            B.  Within 90 days after the end of each fiscal year, the Association shall make             the following information available to Unit Owners upon reasonable notice:

            (1)  The date on which its fiscal year commences;

            (2)  The Association’s operating budget for the current fiscal year;

            (3)  A list, by Unit type, of the Association’s current assessments, including both             regular and special assessments;

            (4)  The Association’s annual financial statements, including any amounts held

             in reserve for the fiscal year immediately preceding the current annual

             disclosure;

            (5)  The results of any financial audit or review for the fiscal year immediately             preceding the current annual disclosure;

            (6)  A list of all Association insurance policies, including, but not limited to,             property, general liability, Association director and officer professional liability,             and fidelity policies.  Such list shall include the company names, policy limits,

            policy deductibles, additional named insureds, and expiration dates of the

            policies listed.

            (7)  Copies of all of the Association’s bylaws, articles, and rules.

            (8)  The Minutes of the Association’s board and member meetings for the fiscal             year immediately preceding the current annual disclosure; and

            (9)  Copies of the Association’s responsible governance policies as adopted             under Section 38-33.3-209.5.

C.  The 1349 Race Street Condo Association Board shall provide the above disclosures to Unit Owners without charge, either by posting on an internet web site (with notice to all Unit Owners by first-class mail or e-mail), or by mail or personal delivery.

6  -  Record Maintenance:

In accordance with 38-33.3-317, it is the policy of the 1349 Race Street Condo Association to maintain Association records according to the following standards:

            A.  Maintain sufficiently detailed financial records to enable the Association to             comply with 38-33.3-316 concerning statements of unpaid assessments.

            B.  Permanent records shall be kept of Minutes of all meetings of Unit Owners

            and the Board.  Records shall be kept of all actions taken by the Unit Owners or

            Board by written ballot or written consent in lieu of meetings.  Records shall be

            kept of all actions taken by a committee of the Board in place of the Board,

            on behalf of the Association.  Records of all waivers of notices of meetings of

            Unit Owners and of the Board, or any committee of the Board shall also be

            kept.

            C.  The Association or its agent shall maintain a record of Unit Owners in a

            form that permits preparation of a list of the names and addresses of all Unit

            Owners, showing the number of votes each Unit Owner is entitled to cast.

            D.  The Association shall maintain its records in written form, or in another form             capable of conversion into written form within a reasonable time.

            E.  All financial and other records shall be made reasonably available for 

            examination and copying by any Unit Owner and such Owner’s authorized             agents. 

            F.  The Association may, at it’s discretion, charge a fee, not to exceed the             Association’s actual cost per page, for copies of Association’s records.

            G.  As used herein, “reasonably available” means available during normal             business hours, upon notice of five business days, to the extent that:

            1.  The request is made in good faith, and for a proper purpose;

            2.  The request is in writing, and describes with reasonable particularity the             records sought, and the purpose of the request; and

            3.  The records are relevant to the purpose of the request.

The Association shall keep a copy of each of the following records at its principal office:

            The Association’s Articles of Incorporation, Declaration, Bylaws, Rules, resolutions adopted by the Association’s Board related to the characteristics, qualifications, rights, limitations and obligations of Unit Owners or any class or category of Unit Owners, the Minutes of all Unit Owners’ meetings, records of all action taken by Unit Owners without a meeting (all for the last three years), all written communications within the past three years to Unit Owners generally as Unit Owners, a list of the names and business or home addresses of Association Board members and officers, the Association’s most recent annual report, if any, and all financial audits or reviews conducted pursuant to Section 38-33.3-303 (4) (b) during the immediately preceding three years.

7  -  Handling Conflicts of Interest

        Involving Board Members:

In accordance with 38-33.3-310.5, it is the policy of 1349 Race Street Condo Association to follow these procedures in any situation of potential conflict of interest by Board members:

            A.  If any contract, decision, or other action taken by or on behalf of the Board would financially benefit any member of the Board or any person who is a parent, grandparent, spouse, child, or sibling of a member of the Board or a parent or spouse of any of those persons, that member of the Board shall declare a conflict of interest for that issue.  The member shall declare a conflict of interest in an open meeting, prior to any discussion or action on that issue.  After making such declaration, the member may participate in the discussion, but shall not vote on that issue.

            B.  Any contract entered into in violation of this policy is void and unenforceable.

8 -  Conduct of Meetings:

Meetings of Unit Owners will be held in accordance with 38-33.3-308, the Association’s Declaration and Bylaws, with advance notices and agendas posted in a conspicuous place, to the extend that such posting is feasible and practical, in addition to any electronic posting or other methods of notice given pursuant to the Association’s governing documents.

The Association shall provide notice of all regular and special meetings of Unit Owners by electronic mail to all Unit Owners who so request, and who furnish the Association with their electronic mail addresses.  Electronic notice of a special meeting shall be given as soon as possible, but at least 24 hours before the meeting.

It is the policy of the Association that all meetings of the Association and the Board of Directors are open to every Unit Owner of the Association, or to any person designated by a Unit Owner in writing as the Unit Owner’s representative.  All Unit Owners or designated representatives so desiring shall be permitted to attend, listen, and speak at an appropriate time during the deliberations and proceedings’ except:

            A.  For regular and special meetings of the Board, Unit Owners who are not             Board members may not participate in any deliberation or discussion unless             expressly authorized by a vote of the majority of a quorum of the Board.

            B.  The Board may place reasonable time restrictions on those persons

            speaking during the meeting, but shall permit a Unit Owner or a Unit Owner’s

            designated representative to speak before the Board takes formal action on an

            item under discussion, in addition to any other opportunities to speak.  The

            Board shall provide for a reasonable number of persons to speak on each side

            of an issue.

            C.  Upon the final resolution of any matter for which the Board received legal 

            advice or that concerned pending or contemplated litigation, the Board may

            elect to preserve the attorney-client privilege in any appropriate manner, or it

            may elect to disclose such information, as it deems appropriate, about such

            matter in an open meeting.

9  -  Voting - Proxies:

In accordance with 38-33.3-310, notwithstanding any contradictory provisions in the 1349 Race Street Condo Association declaration or bylaws, it is the policy of the 1349 Race Street Condo Association to conduct Unit Owner voting for Board positions by written secret ballot.  Upon the request of one or more Unit Owners, a vote on any other matter affecting the Association on which all Unit Owners are entitled to vote shall be by written secret ballot.

Ballots shall be counted by a neutral third party, or by a Unit Owner who is not a candidate, who attends the meeting at which the vote is held, and who is selected at random from a pool of two or more such Unit Owners.  The results of the vote shall be reported without reference to voters’ names, addresses, or other identifying information.

Votes allocated to a Unit may be cast pursuant to a proxy duly executed in writing by a Unit Owner.  A proxy shall not be valid if obtained through fraud or misrepresentation.   

The Association is entitled to reject a vote, consent, written ballot, waiver, proxy appointment, or proxy appointment revocation if the Secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reason for doubt about the validity of the signature on it, or about the signatory’s authority to sign for the Unit Owner.

10  -  Assessments for Common Expenses:

In accordance with 38-33.3-315, it is the policy of the 1349 Race Street Condo Association to enter into escrow agreements with holders of Unit Owners’ mortgages, when requested in writing, so that Association assessments may be combined with the Unit Owner’s mortgage payments and paid at the same time and in the same manner.  Such escrow agreements shall comply with any applicable 1349 Race Street Condo Association rules, and rules of the Federal Housing Administration, Department of Housing and Urban Development, Veterans’ Administration, or other governmental agencies.

11 - Investment of Reserve Funds:

Section 32 of the 1349 Race Condominium Declaration requires that the Association maintain a Reserve Fund, and recommends an amount equal to at least three times the amount of the total monthly assessments, for capitol repairs and/or replacements, purchase of equipment, and for extraordinary Common Expenses.

It is the policy of the Association that such Reserve Funds shall be placed or invested in a secure bank account, separate from the Association’s operating account.  Such account shall be FDIC insured, and not allow for any reduction of the principal deposited therein, or of any interest earned therein.  Such account shall require the signatures of two officers for the removal of any sums.      

12 - Audit or Review of Financial Books:

In accordance with 38-33.3-303, it is the policy of the 1349 Race Street Condo Association to conduct an audit or review of the Association’s books and records, using generally accepted auditing standards, at least once every two years, by a person selected by the Board.  Such person need not be a certified public accountant, except in the case of an audit.

An audit shall be conducted at the discretion of the Board, or when BOTH of the following conditions are met:

            A.  The Association has annual revenues or expenditures of at least $250,000:             and,

            B.  An audit is requested in writing by the Owners of at least one-third of the                  1349 Race Street Condo Association Units (4).  

Copies of any audit or review conducted by or on behalf of the Association shall be made available upon written request to any Unit Owner beginning no later than 30 days after its completion.  All audits or reviews shall be retained in Association files for at least three years.

13 - Procedures for Obtaining

        Approval of Architectural Modifications:

In accordance with 38-33.3-302, it is the policy of the 1349 Race Street Condo Association to make decisions concerning the approval or denial of a Unit Owner’s written application for architectural changes as recorded actions of the Board, at a Board meeting, in accordance with the standards and procedures set forth in the Association’s governing documents.  Such decisions shall not be made arbitrarily or capriciously.

14 - Procedures for the Adoption of

        Amendments to Governing Documents:

Section 18 of the 1349 Race Street Condo Association Declaration specifies that at least seventy-five percent (75%) of the votes of the Members and one hundred percent (100%) of the holders of recorded first mortgage or deeds of trust must approve a Declaration amendment.  However, Section 8 of Senate Bill 100 (38-33.3-217 (1), Colorado Revised Statutes) changes the percent of Members required for Declaration amendment to sixty-seven percent (67%).

Both the Declaration and SB 100 (38-33.3-217) contain other provisions related to Declaration amendment, and shall be followed by the Association. 

Section XVII of the 1349 Race Street Condo Association Bylaws specifies that at least “two-thirds” of the votes of all of the Members (9) is required to amend the Bylaws.  The Bylaws contain other provisions related to Bylaw amendment. 

It is the policy of the 1349 Race Street Condo Association Board that Rules and Policies which the Board deems appropriate for the responsible governance of the Association may be adopted and/or amended at the will of the Board upon majority vote of a quorum at a regularly called Board meeting.  Further, it is the policy of the Association that any proposed change or addition to the policies and/or rules of the Association shall be distributed in writing to all Board members at least 10 days in advance of any Board meeting where such proposal is to be voted on. 

15 - Board Member Education:

In accordance with 38-33.3-209.6, upon authorization by the Board, Board members may be reimbursed for actual and necessary expenses incurred in attending educational meetings and seminars dealing with responsible governance of the 1349 Race Street Condo Association Association.

16 - Unit Owner Education:

In accordance with 38-33.3-209.7, once each year the Association shall educate Unit Owners about their rights and responsibilities, at no cost to the Unit Owners.  Annually, the Board shall determine the method of such education. 

As part of the Unit Owner’s education, it is the policy of 1349 Race Street Condo Association to make Owner’s aware that under 10-4-110.8, they may file a claim against the 1349 Race Street Condo Association insurance policy to the same extent, and with the same effect, as if the Unit Owner were an additional named insured.

17  - Disclosures to Unit Buyers:

In accordance with 38-35.7-102, it is the policy the 1349 Race Street Condo Association to educate its Unit Owners regarding disclosures they must make when selling their Units.

Among those requirements, a 1349 Race Street Condo Association Unit Seller shall cause to be furnished to the Buyer, at the Seller’s expense, all documents required by Section 38-33.3-223, at least 10 days before closing in the case of sales by Owners, or within the time limits set forth in Section 38-33.3-223 in the case of a brokered transaction.

The Seller shall provide the Buyer with a Disclosure Statement in bold-faced type that is clearly legible and in substantially the following form:

"THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS RECEIVED COPIES OF THE DECLARATION, COVENANTS, BYLAWS, AND RULES AND REGULATIONS OF THE  1349 RACE STREET CONDO ASSOCIATION, IN WHICH THE PROPERTY IS LOCATED, AND THE BUYER UNDERSTANDS THAT THESE DOCUMENTS CONSTITUTE AN AGREEMENT BETWEEN THE ASSOCIATION AND THE BUYER.  BY SIGNING THIS STATEMENT, THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ AND UNDERSTANDS THE ASSOCIATION'S DECLARATION, COVENLANTS, BYLAWS, AND RULES AND REGULATIONS.  THE BUYER ALSO UNDERSTANDS THAT BY COMPLETING THIS PURCHASE, THE BUYER IS RESPONSIBLE FOR PAYING ASSESSMENTS TO THE ASSOCIATION.  IF THE BUYER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO COLLECT THE DEBT.

THE BUYER ALSO UNDERSTANDS THAT ANY CHANGE TO THE EXTERIOR OF THE PROPERTY MAY BE SUBJECT TO ARCHITECTURAL REVIEW AND APPROVAL.  FAILURE TO SECURE SUCH REVIEW AND APPROVAL COULD BE A VIOLATION OF THE DECLARLATION AND COULD RESULT IN REMEDIAL ACTION BEING TAKEN BY THE ASSOCIATION."

It shall be the responsibility of any 1349 Race Street Condo Association Seller to obtain from the Purchaser a signed acknowledgement of receipt of the information and Disclosure Statement described above, whether such acknowledgement is incorporated in the Contract of Purchase and Sale, or otherwise, at the time of closing, and to deliver such signed acknowledgement to the Association’s Secretary or President as soon as is practicable thereafter.

Unit Sellers are hereby notified that in the event of the failure of the Seller to provide such information and Disclosure Statement, Section 38-35.7-102 provides that with certain exceptions, the Purchaser shall have a claim for relief against the Seller for all damages to the Purchaser resulting from such failure plus court costs.