Proposed Covenant Amendment: Rental Properties

July 2016

Dear Homeowners:

The Hedgerow Homeowners Association, Inc.’s (“Association”) Board of Directors is seeking homeowner input from Full Active Permanent Members regarding a proposed amendment to the Restated and Amended Declaration of Protective Covenants and Easements for Hedgerow to control leasing/renting in the community. The Association Board has raised this issue with the thought that a limit on the total number of homes that may be leased/rented at one time will help protect property values and ensure the community meets most mortgage lenders’ underwriting requirements for future sales of homes in the community.

The draft amendment provides for Lots that are being leased/rented as of the Effective Date of the amendment to be “Grandfathered” such that those Owners would be allowed to lease/rent their Lots for as long as they own their Lots. The amendment draft also includes a Hardship Lease Permit provision that will allow the Board to consider special circumstances on a case by case basis and to allow additional hardship lease permits as the Board may deem beneficial to the community.

The proposed amendment draft also authorizes the Association to deny and/or revoke leasing permits for anyone shown on the Association’s books and records as being more than 30 days past due in the payment of assessments and charges to the Association, or who are in violation of the Association’s governing legal documents. The draft also requires the payment of a Lease/Rental Administration Fee to help offset the administrative costs the Association will incur in having to coordinate and manage the leasing permit efforts.

All Owners leasing/renting at the time of the Amendment will be Grandfathered, but must provide the Board copies of their leases/rentals in order to be allowed to continue to lease for so long as they own their Lot. All Grandfathered Owners who lease in the future must provide copies of the leases accordingly as well.

The Board would like your input and feedback regarding this proposed amendment.

Please let the Board Members know if you have any questions or concerns regarding the amendment or the process for amending, and if you have comments, concerns or requested changes.

HEDGEROW HOMEOWNERS ASSOCIATION, INC.

Board of Directors