BOARD POLICY RESOLUTION No. 28 (“BP 28”)
ANNUAL PROPERTY ASSESSMENTS, FEES & COLLECTIONS
WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board
of Directors to adopt Policies not in conflict with the Restated
Articles of Incorporation (“Articles”) or the Corporate Bylaws
(“Bylaws”).
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors (“Board” or
“Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or
“Corporation”) in an effort to maintain and carry out its fiduciary
responsibility to its Members, adopts the following Board Policy (“BP”
or “Policies”) on May 29, 2008.
NOW, THEREFORE, BE IT RESOLVED that to minimize inconsistencies,
misunderstandings and misinterpretations inherent in verbal
instructions, rules and regulations, the Board of Directors has
established Board Policies in written form. Such Policies shall be
titled, numbered and indexed for easy reference and use.
NOW, THEREFORE, BE IT RESOLVED that the Restated Articles of
Incorporation and the Corporate Bylaws shall take precedence over Board
Policies and that the following Board Policy on Annual Property
Assessments, Fees & Collections shall provide instruction, direction and
guidelines regarding such and shall remain in effect until such time it
is amended or removed.
For purposes of clarification, the following definitions shall be used:
a.
Property:
Any land, building or structure or portion of any building or structure
which is, has been and/or is intended to be, for use and occupancy as a
dwelling unit; real property in Sun City, Arizona as defined by the
Corporate Bylaws.
b. Person:
Each individual deeded owner of any land, building or structure or
portion of any building and/or structure which is, has been or is
intended to be, for use and occupancy as a dwelling unit; real property
in Sun City, Arizona as defined by the Corporate Bylaws.
c. Owner(s):
Deeded Real Estate
Owners of property located in the area entitled "Sun City General Plan,
Maricopa County, Arizona," as prepared by the Del E. Webb Development
Company and dated July 1972, November 1974, August 1975, and September
1978 with subsequent amendments thereto
as defined by the Corporate Bylaws.
The Corporation may levy an annual property assessment against each
Property and/or Owner. Each Owner of a Property, by accepting a deed or
entering into a Facilities Agreement, is deemed to covenant and agree to
pay these annual property assessments. All annual property assessments,
together with interest due from the due date of such annual property
assessment, late charges, costs (including lien fees and administrative
costs) and reasonable attorneys’ fees, shall be a charge and continuing
lien upon each Property against which the annual property assessment is
levied until paid and shall be the obligation of the Owner(s) of such
Property at the time the annual property assessment is imposed. Upon a
transfer of title to a Property, the grantee(s) shall be jointly and
severally liable with the grantor(s) for any assessments and other
charges due at the time of conveyance. No first mortgagee or first deed
of trust beneficiary who obtains title to a Property by exercising the
remedies provided in its mortgage or deed of trust, as the case may be,
shall be liable for unpaid annual property assessments which accrued
prior to such acquisition of title. Annual property assessments shall be
paid in such manner and on such dates as the Board may establish. No
Owner may exempt himself, herself or itself from liability for annual
property assessments, by non-use of the Corporation’s facilities,
abandonment of his, her or its Property, or by any other means. The
obligation to pay annual property assessments is a separate and
independent covenant on the part of each Owner. No diminution or
abatement of annual property assessments or setoff shall be claimed or
allowed for any alleged failure by the Corporation, Board or RCSC
Personnel to take any action or any perform such function required of
it.
Annual property assessments are assessed on two methods, as follows:
1. Per
Property:
The Property is assessed, regardless of the number of Owners, one annual
assessment fee Per Property as determined by the Board of Directors
annually. Property with any change in ownership of legal or beneficial
interest in title after February 1, 2003 will be assessed on a Per
Property basis. Up to two (2) Member cards are issued on a Per Property
basis as defined in the Corporate Bylaws.
2. Per
Person:
The Property is assessed for each individual Deeded Owner at the rate of
one-half (1/2) of the annual Per Property assessment fee as determined
by the Board of Directors annually. Property owned prior to February 1,
2003 will continue being assessed on a Per Person basis as long as they
consistently maintain a primary Arizona residence in Sun City and are in
compliance with the Restated Articles of Incorporation, Corporate
Bylaws, Board Policies and any Rules and Regulations of the
Corporation. If any Owner or beneficial interest is added to the Deed
after February 1, 2003, the assessment basis shall be changed to a Per
Property basis and a new Facilities Agreement shall be executed by all
Deeded Owners. A RCSC card is issued for each qualified (per the
Corporate Bylaws) Owner on a Per Person basis, however, only up to two
Member Cards may be provided for each property.
Every Owner, whether their property is assessed on a Per Property or Per
Person basis, is responsible for the total of all assessments and fees.
All property assessments are due annually on the date escrow closed on
the property and shall be considered in arrears following that date.
Special assessments may be assessed from time to time, at the discretion
of the Board, and shall be due and payable as outlined in the billing of
such and shall be considered in arrears after the due date. Owners are
responsible for providing current and accurate billing information to
the Corporation at the Cardholder Services Offices located in the
Lakeview Recreation Center; failure of an Owner to receive billing does
not relieve the Owner of the obligation and liability to pay annual or
special assessments or fees, nor does it eliminate the following
collection process and fees:
i. At
thirty (30) days in arrears, Owners shall be charged a late fee, as
determined by the Board of Directors and shall be sent a reminder notice
regarding the unpaid balance on their account.
ii. At
sixty (60) days in arrears, interest will begin to accrue on the unpaid
balance on their account and a reminder notice regarding the unpaid
balance on their account shall be sent.
Interest equal to the
interest rate charged by Maricopa County for delinquent taxes as set
forth in Arizona Revised Statues will be charged by the Corporation on
any delinquent fees and/or assessments and interest shall accrue on a
monthly basis until the account has been paid in full.
iii. At
ninety (90) days in arrears, RCSC shall file a lien upon the property
with the office of the Maricopa County Recorder and a lien filing fee,
as determined by the Board, shall be charged to the Owners. All
accounts ninety (90) days in arrears shall be reported to the Credit
Bureau(s) as a delinquent account. If any annual property assessment,
special assessment or fee is not paid within ninety (90) days after it
becomes due, said lien may be foreclosed as set forth in the Facilities
Agreement. Said lien shall be subordinate to the lien of any mortgage
or deed of trust now or hereafter placed on the Property.
iv. The
Corporation may pursue all available legal processes or actions
available to it in order to collect any unpaid assessments or fees owed
the Corporation. Owners shall be required to pay for all costs
associated with such legal collection actions or processes.
v. The
Corporation may turn any unpaid accounts over to a third party for
collections and Owners shall be required to pay for all costs associated
with such collection processes.
vi. At
such time that the account is paid in full, RCSC shall file a lien
release with the office of the Maricopa County Recorder and a lien
release fee, as determined by the Board, shall be charged to the Owners.
RCSC Member Cardholders shall not be considered Members in good standing
until such time that their account balance is zero. A Member must pay
all late fees, interest and lien fees, as well as their property and
special assessments before they will be allowed to use RCSC facilities
or vote.
If a property has unpaid assessments or fees relating to such property
and the ownership changes, the new Owner(s) will not be allowed to use
RCSC facilities, obtain a RCSC Member Card or vote until such time that
the unpaid assessments and fees have been paid in full.
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