Amendment to the Declaration and By-Laws Charter Oaks Condominium Charter Communities Association, Inc.

In August of 1999 an Amendment was passed allowing fines to be imposed on those who repeatedly violate the rules of our Complex.

The Charter Communities Association Declaration and By-Laws were changed, as were the Charter Oaks Condominium By-Laws. The complete text of the Amendment appears below. Both the revised and current wording for the sections that were changed appears in the above-named documents.

In addition, an Arbitration procedure was established to protect the rights of anyone who feels that they did not in fact violate any rules.

Table of Contents

DECLARATION OF CHARTER COMMUNITIES ASSOCIATION, INC.

WHEREAS, a certain Declaration of Protective Covenants, Conditions, Restrictions, Easements, Charges and Liens – The Charter Oaks Communities Association, Inc. (the Association “Declaration”) was recorded on October 6, 1978 in the Erie County Clerk’s Office in Liber 8705 of Deeds at Page 70; and

WHEREAS, the undersigned Unit Owners wish to amend Section 8.02 of the Association Declaration; and

WHEREAS, pursuant to Article VIII of such Association Declaration, two-thirds (2/3) of the Unit Owners agreed to amend the Declaration as hereinafter set forth at a meeting called for such purpose, which meeting was held on the 24th day of August, 1999; and

NOW, THEREFORE, the undersigned Unit Owners hereby declare that Section 8.02 of the Association Declaration is amended as follows: Section 8.02 is deleted entirely and replaced with the following new Section 8.02.

Section 8.02. Enforceability.

a. Actions at Law or Suits in Equity. The provisions of the Declaration shall bind the Property and shall be construed as running with the land and shall inure to the benefit of and be enforceable by the Association (being hereby deemed the agent for all of the owners), and by any member or Owner, their respective legal representatives, heirs, successors, and assigns, by actions at law or by suits in equity. As it may be impossible to measure monetarily the damages which may accrue to the beneficiaries hereof by reason of a violation of the Declaration, any beneficiary hereof shall be entitled to relief by way of injunction or specific performance, as well as any other relief available at law or in equity, to enforce the provisions hereof.

b. Penalties and Fines. In addition to, or as an alternative to an action at law, or suit in equity, the Board of Directors of the Association may, with respect to any violation of this Declaration or of the Rules and Regulations of the Association or any Committee of the Association, and after affording the alleged violator a reasonable opportunity to appear and be heard, establish monetary and non-monetary-penalties, the amount and/or severity of which shall be reasonably related to the violation and to the aim of deterring similar future violations by the same or any other person. Monetary penalties imposed against a Unit Owner or Unit occupant shall be deemed a Special Assessment against the Unit of such Owner or on which the Unit occupied by such occupant is located and, as such, shall be a charge and continuing lien upon such Unit, shall constitute a personal obligation of the Unit Owner, and shall be collectible in the same manner as Assessments under Article V of this Declaration.

BY-LAWS OF CHARTER COMMUNITIES ASSOCIATION, INC.

Section 7.04. Rules, Compliance and Arbitration

A. A Rules Committee shall be appointed by the Board of Directors of the Association to:

1. Oversee compliance with the Association’s Declaration, By-Laws and Rules and Regulations;

2. Participate in Hearings with the Owner in violation, when requested; and

3. Impose fines and other legal actions.

B. The Rules Committee shall be composed of five (5) persons:

1. One (1) officer of the Board of Directors;

2. Four (4) Unit Owners: One (1) each from Charter Oaks Townhouses, Chappelle Villas, at large and two (2) from the Charter Oaks Garden Units.

C. Compliance Procedure:

1. When a written complaint has been received by the Board of Directors, management or the Rules Committee, a letter will be sent to the Unit Owner, by the Manager (within three days), requesting a response regarding the violation within not more than ten days.

2. Should initial contact be Ineffective to secure compliance, a certified written notice of the violation shall be sent to the Unit Owner, (return receipt requested). Such notice shall:

a. specify that the, Unit Owner, his tenant, or a family member, guest, or other invitee of either of them is in violation of a particular provision of the Association’s Declaration, By-Laws or Rules and Regulations;

b. request, as appropriate, either correction of the violation or written assurance that similar violations will not occur in the future;

c. date for compliance is immediate upon receipt of the letter.

3. If the same violation continues or a similar violation re-occurs after the above notice, the Committee shall then recommend to the Board of Directors, monetary penalties be imposed. The amount and/or seventy shall be reasonably related to the violation and to the aim of deterring similar future violations by the same or any other person.

a. The fine shall be a special assessment against the Unit as well as the personal obligation of the Unit Owner;

b. The Unit Owner shall also be personally liable for any fine imposed upon the Unit Owner’s family, tenant, guest, or invitee, or the family guest or invitee of a tenant.

4. Failure to correct the condition or situation immediately after the initial fine becomes due and payable shall constitute a second offense for which an additional fine will be due.

5. Notice of the imposition of such fine or fines shall be mailed to the Owner by regular and certified mail.

6. The fine shall be paid to the Charter Communities Association, Inc. within 15 days from the date such notice is received, unless the Owner requests a Hearing within said 15 day period by written notice to the Association Manager.

7. If no written request for a Hearing is received, and the fine is not paid within the said 1 5 day period, legal action may be taken.

8. The Board of Directors may bring an action against the Unit Owner to pay the same or to take appropriate legal action. Reasonable attorneys fees shall be added to the amount of such fines.

D. Arbitration Procedure:

1. The Manager shall promptly forward a request for a hearing to the Rules Committee.

2. The Rules Committee shall meet within 20 days thereafter to hear and dispose of the matter.

3. Notice of the time, date, and place of the Hearing shall be sent to the Owner by certified and regular mail.

4. Both the Unit Owner and the Rules Committee shall be given the opportunity to be heard at the Hearing.

5. The Rules Committee shall render a decision on the matter at such Hearing and shall promptly send written notice of such decision to the Owner and the Board of Directors.

6. If the Rules Committee decides to uphold the original determination, the provisions related to the payment and enforcement of the fines set forth in Section C above shall apply.

7. If the Rules Committee decides in favor of the Owner, no fine will be imposed. Written notice of such decision will be sent to the Owner, and the Board of Directors.

AMENDMENT TO DECLARATION AND BY-LAWS
(SCHEDULE ‘D’ TO DECLARATION)

Whereas certain Declaration of Condominium for the Charter Oaks Condominium (the ‘Declaration’) was recorded on October 6, 1978 in the Erie County Clerk’s Office in Liber 8705 of Deeds at Page 102; and

WHEREAS, the By-Laws of the Condominium were attached to the Declaration as Schedule ‘D’; and

WHEREAS, the undersigned Unit Owners wish to amend the By-Laws of the Condominium; and

WHEREAS, pursuant to Article IX of such Declaration, 66 2/3% of the Unit Owners in number and common interest agreed to amend the Declaration as hereinafter set forth at a meeting called for such purpose, which meeting was held on the day of August, 1999; and

WHEREAS, pursuant to Article XI of such By-Laws, 66 2/3% of the Unit Owners in number and in common interest agreed at said meeting to amend the By-Laws as hereinafter set forth.

NOW THEREFORE, the undersigned Unit Owners hereby declare that the By-Laws (Schedule ‘D’ to the Declaration of Condominium) of the Charter Oaks Condominium are amended as follows: Section 7.07 is deleted entirely and replaced with the following new Sections 7.07, 7.08, 7.09, 7.10 and 7.11.

7.07. Abatement and Enjoinment of Violations. The violation of any rule or regulation adopted by the Board of Managers, or the breach of any By-Laws contained herein, or the breach of any provision of the Declaration, shall give the Board of Managers (and each aggrieved Unit Owner with respect to any violation or breach by any other Unit Owner or by the Board of Managers) the right, in addition to any other rights set forth in these By-Laws: (a) to enjoin, abate or remedy by appropriate legal proceedings, either at law or in equity and at the expense of the defaulting party, the continuance of any such breach; or (b) to establish a penalty in accordance with Section 7.09 and 7.11 below.

All rights, remedies and privileges granted to the Board of Managers and to aggrieved Unit Owners herein shall be deemed to be cumulative, and the exercise of any one or more shall not be deemed to constitute an election of remedies or privileges as may be granted by the Condominium Declaration, these By-Laws or the Rules and Regulations at law or in equity.

7.08. Obligations and Lien for Cost of Enforcement. If an action is successfully brought to extinguish a violation of any rule or regulation adopted by the Board of Managers or to successfully enforce the provisions of the Declaration or By-Laws, the cost of such action, including legal fees, shall become a binding personal obligation of the violator. If such violator is (1) the Unit Owner, or (2) any family member, tenant or guest or invitee of such Unit Owner, or (3) a family member, guest or invitee of a tenant of such Unit Owner, or (4) a guest or invitee of (i) any member of such Unit Owner’s family or (ii) any family member of the tenant of such Unit Owner; such cost shall also be a lien upon the Unit Or Units of such Unit Owner.

7.09. Penalties and Fines In addition or as an alternative to an action at law or suit in equity, the Board of Managers may, with respect to any violation of the Declaration or of these By-Laws or of any rules and regulations of the Condominium pr of any committee of the Condominium, and after affording the alleged violator a reasonable opportunity to appear and be heard, establish monetary and non-monetary penalties, the amount and severity of which shall be reasonably related to the violation and to the aim of deterring similar future violations by the same or any other person. Monetary penalties imposed against a Unit Owner or occupant shall be deemed an assessment against the Unit of such Owner, and, as such, shall be a charge and continuing lien upon such Unit, and shall constitute a personal obligation of the charges and special assessments under these By-Laws and the Declaration.

7.10. Owner Responsible for Tenants. Any lease of a Unit shall provide for full compliance by the tenant with the Declaration, By-Laws and Rules and Regulations of the Condominium. Should a tenant be in violation thereof at any time, the Board of Managers of the Condominium may send the Owner of the Unit which said tenant occupies written notice of such violation by certified or registered mail, return receipt requested. If the violation is not cured or eviction proceedings commenced against the tenant within seven (7) days after the Owner has received notice of such violation, or if the eviction proceedings are not reasonably diligently pursued thereafter, the Board of Managers may pursue any remedies which it may have under this Article VII.

7.11. Rules Compliance and Arbitration

A. A Rules Committee shall be appointed by the Board of Managers of the Condominium to:

1. Oversee compliance with the Condominium’s Declaration, By-Laws and Rules and Regulations;

2. Participate in Hearings with the Owner in violation, when requested; and

3. Impose fines and other legal action.

B. The Rules Committee shall be composed of five (5) persons:

1 . One officer of the Board of %tanagers; and

2. Four (4) Unit Owners.

C. Compliance Procedure

1. When a written complaint has been received by the Board of Managers, management or the Rules Committee, a letter will be sent to the Unit Owner, by the Manager (within three days), requesting a response regarding the violation within not more than ten days.

2. Should initial contact be ineffective to secure compliance, a certified written notice of the violation shall be the Unit Owner, (return receipt requested). Such notice shall:

(a) specify that the Unit Owner, its tenant, or a family member, guest or other invitee of either of them is in violation of a particular provision of the Condominium’s Declaration, By-Laws or Rules and Regulations;

(b) request, as appropriate, either correction of the violation or written assurance that similar violations will not occur in the future;

(c) date for compliance is immediate upon receipt of the letter;

3. If the same violation continues or similar violation re-occurs after the above notice, the Committee shall then recommend to the Board of Managers, monetary penalties be imposed. The amount and/or severity shall be reasonably related to the violation and to the aim of deterring similar future violations by the same or any other person.

(a) The fine shall be a special assessment against the Unit as well as the personal obligation of the Unit Owner;

(b) The Unit Owner shall also be personally liable for any fine imposed upon the Unit Owner’s family, tenant, guest or invitee or the family, guest or invitee of a tenant.

4. Failure to correct the condition or situation immediately after the initial fine becomes due and payable shall constitute a second offense for which an additional fine will be due.

5. Notice of the imposition of such fine or fines shall be mailed to the Owner by regular and certified mail.

6. The fines shall be paid to the Charter Oaks Condominium within 15 days from the date such notice is received, unless the Owner requests a Hearing within said 1 5 day period by written notice to the Condominium Manager.

7. If no written request for a Hearing is received, and the fine is not paid within the said 15 day period, legal action may be taken.

8. The Board of Managers may bring an action against the Unit Owner to pay the same or to take appropriate legal action. Attorneys fees shall be added to the amount of such fines.

D. Arbitration Procedure

1 . The Manager shall promptly forward a request for a Hearing to the Rules Committee.

2. The Rules Committee shall meet within 20 days thereafter to hear and dispose of the matter.

3. Notice of the time, date and place of the Hearing shall be sent to the Owner by certified and regular mail.

4. Both the Unit Owner and the Rules Committee shall be given the opportunity to be heard at the Hearing.

5. The Rules Committee shall render a decision on the matter at such Hearing and shall promptly send written notice of such decision to the Owner and the Board of Managers.

6. If the Rules Committee decides to uphold the original determination, the provisions related to the payment and enforcement of the fines set forth in Section C above shall apply.

7. If the Rules Committee decides in favor of the Owner, no fine will be imposed. Written notice of such decision will be sent to the Owner and the Board of Managers.