FFHA: Policies, Clarifications

POLICIES, CLARIFICATIONS

Index for Policies and Clarifications:

Home Construction Rules - Covenant Clarification
Setting Annual Assessment Amount
Discharging of Firearms
Rentals
Wind Turbines
Number of Residences Per Property
Residential Structures On Contiguous Lots
Owner-Installed Exterior Lights
Driveways
Construction Deposit
Architectural Committee Inspections
Roads Policy
Placement of Encumbrances on Easements and Rights of Way
Owners' Driveway Maintenance and Repair
Parking on Roads and Other Common Areas
Construction Approval and Delinquent Assessments
Bulletin Board
Trash Can Visibility
Real Estate Signage
Architectural Application Approval - Term
NSF/Returned Check
Contiguous Property
Sub-One Acre Properties
Second Residence (Policy was extinguished 2/24/07)
Green Space Policy
Amendment Voting Period
Vote Count Parameters
Compulsory Amendments
Board Meeting Executive Session Content
Special Funds

Additional Reference Links:
Restrictive Covenants
By-Laws

Covenant Clarification: Home construction rules

Restrictive Covenant
Section 9.6 Approved Exterior materials

Clarification

A. Earth tone materials
Earth tone materials are materials that blend in with the mountain environment of Fairview Forest to minimize offsite visual impact.

B. Exterior materials
The exterior materials used to build, place or renovate structures in Fairview Forest shall consist of wood, brick, concrete composite, rock, logs or other material of an earth tone nature. Exterior paint and/or stain shall be of an earth tone color in shades of brown, tan, taupe, green or gray. Trim colors shall not be white, cream or other off-white vue. Trim colors should be chosen to minimize visual impact. No exterior of any structure shall consist of plastic, vinyl or aluminum.

November 2008

POLICY: SETTING ANNUAL ASSESSMENT AMOUNT

A. Background
From 1990 to 2008, the Board of Directors of the Association has increased the assessment amount every several years based on past and current expenses as well as anticipated future expenses. The following policy is intended to match the assessment amount each year with the expected and budgeted expenses for the prospective year only. Below are the appropriate sections of the Restrictive Covenants and the By-laws.

1) The Restrictive Covenants
Article 5. Homeowners' Association
Section 5.3. The purpose of the Association is to:
d) budget, collect and expend annual and special assessments from property owners to meet common expenses.

2) The By-laws
Article 3. Board of directors
Section 3.9. Duties
It shall be the duty of the board of directors to:
1. Set the amount of the assessments against each lot.

B. Method
The method of setting assessment amount each year shall be broken into two parts, the Base Amount and the Adjustable Amount.

1) The Base Amount:
a) shall be determined by fixed expenses that do not vary greatly from year to year, such as insurance, accounting, utilities, routine road maintenance, postage and office expense, communications and legal.
b) shall be set by the Treasurer with the advice of the Finance Committee and shall be approved by the Board.
c) The Base Amount shall be $350, starting with the budget year 2008-2009.

2) The Adjustable Amount:
a) shall be determined by expenses that vary substantially from year to year, such as major road improvements, road-related emergencies, Clubhouse repairs and improvements are replenishment of the Contingency Reserve account.

C. Procedure
1) Setting the Base Amount:
a) Once the Base Amount has been determined in the initial year, the Treasurer shall be responsible for a detailed explanation to the Board and to the property owners if the Base Amount is going to change in any future year.

2) Setting the Variable Amount:
a) Each year, the Treasurer shall provide the Board details on which the Variable Amount expenses are based. In any case, the Adjustable Amount shall not be more than the Base Amount.
b) Such details shall be delineated in the annual budget for approval by the property owners.

3) Setting the assessment amount:
a) The annual assessment amount for the prospective year shall be determined by the following procedure:

1. The Treasurer shall determine the annual assessment per property by dividing the approved Variable Amount by the number of assessable properties in the Association records as of March 1. The resultant Adjustable Amount per property shall be added to the Base Amount to determine the assessment amount.

2. The budget and assessment amounts shall be approved by the Board at a date that will allow the Association to notify the property owner at least 30 days prior to the Annual Meeting.

February 5, 2008

POLICY: DISCHARGING OF FIREARMS IN FAIRVIEW FOREST

Property owners, their guests, and/or vendors shall not take part in the discharging of any firearm(s) within Fairview Forest.

May 7, 2007

POLICY: RENTALS

The Restrictive Covenants do not address the rental of property in Fairview Forest. Rentals have been in place for much of the history of Arrowhead/Fairview Forest. Most residential rentals do not fall under the restriction against "commercial operations" in the Restrictive Covenants. (Article 8, Restrictions, Section 8.1. Residential property.) As the size of the community has grown, owners have asked that a policy be initiated.

A. Unimproved Property Rentals
1) No vacant lot shall be rented for any purpose, including, but not limited to storage, hunting, trapping or camping.

B. Residential Rentals
All property owners in Fairview Forest who choose to rent out their residences, short-term or long-term, are responsible for the actions of those to whom they rent their residences.

1) Long-term rentals and leases
  Long-term rentals are defined as those rentals that are for a term of six months or more.
a) It is recommended that the name and phone number of the person renting the property be given to the secretary of the Association.
b) It is recommended that the person renting the property be on the newsletter mailing list.

2) Short-term rentals
  Short-term rentals are defined as those rentals that are for a term of one or two days up to six months.
a) Property owners shall inform persons who rent their property that they are renting in a private, residential community.

3) "Bed & Breakfast" rentals
  Bed & Breakfast" rentals are defined as rentals of individual rooms or suites within the same house. Such "B&B" rentals often include a variety of meal services as a feature of the rental agreement. Fairview Forest defines "Bed & Breakfast" operations as falling under the prohibition on commercial operations found in the Restrictive Covenants under Article 8. Restrictions, Section 8.1. Residential property.
a) "Bed & Breakfast" rentals are specifically prohibited, regardless of the availability of food services in the facility.

4) Compliance with this policy shall be enforced under the Restrictive Covenants, Article 12, Enforcement.

March 24, 2007

POLICY: WIND TURBINES

A wind turbine shall not be installed on any property in Fairview Forest after March 24, 2007.

March 24, 2007

POLICY: NUMBER OF RESIDENCES PER PROPERTY

A second residential structure shall not be built on any property in Fairview Forest after March 24, 2007.

March 24, 2007

POLICY: RESIDENTIAL STRUCTURES ON CONTIGUOUS LOTS

A. Construction of residences on a contiguous lots.
1) If a property owner builds a residential structure on a second, contiguous lot deeded under the same name as the first lot, the contiguous-lot-rule as to assessments* shall not apply.
2) Upon completion of the structure on the second lot, the property owner shall:
    a) pay an additional assessment, prorated from the date of the Certificate of Occupancy to the next assessment date, and
    b) pay a full assessment for each year thereafter.

B. Purchase of contiguous lots with residences on both lots.
1) If a property owner acquires a contiguous lot with a residence on it, the contiguous-lot-rule as to assessments* shall not apply, regardless of the name registered on the deeds to the properties. 2) Upon acquisition of the second lot, the property owner shall:
    a) pay an additional assessment, prorated from the date of purchase to the next assessment date, and
    b) pay a full assessment for each year thereafter.

C. This policy shall take effect as of October 2, 2007

* Covenants, Article 10. Assessments. Section 10.7. Liability for payment of assessments.

POLICY: OWNER-INSTALLED EXTERIOR LIGHTS

The Restrictive Covenants do not address owner-installed exterior lights in Fairview Forest. Street lights are available from Progress Energy on a lease basis for a monthly fee. These lights cannot be controlled by the owner; they are turned off and on with a dusk/dawn, light-sensitive control.

As the size of the community has grown, there have been an increasing number of complaints from property owners who are annoyed by such lights shining on their property all night.

This policy addresses several circumstances of installation:

A. Exterior lighting Installed by the owner
Any exterior lighting installed by an owner shall have owner-controlled switching. It is recommended that such lights not be left on all night.

B. New Street lighting installed by Progress energy after February 24, 2007.
Street lighting to be installed by Progress Energy is discouraged inasmuch as the lights cannot be turned off from the owner's property. If such street lights are installed, the following specifications shall followed:
1) Wattage Maximum: 100w. (70 w. recommended).
2) No light pole shall be more than 25 feet.

C. Progress Energy street lights currently in place as of February 24, 2007.
Progress Energy street lights in place, may stay in place with an Association recommendation that they be altered to Association guidelines (see B., above) when the Progress Energy contract comes due.

D. Any owner of Progress Energy lighting, new or in place.
If the Association receives a complaint by any owner regarding a street light, the owner of the property with the street light must have Progress Energy install a light-blocking shield.

E. Compliance.
Noncompliance with this policy shall be enforced per the Covenants, Article 12, Enforcement.

February 24, 2007

POLICY: DRIVEWAYS

Driveways shall be constructed and/or maintained in such a way as to minimize drainage that will damage roads and common areas. Proper ditches, ditch lining and culverts must be installed.

A. Newly created driveways.
1) No driveway or other access to a property shall be installed by an owner until the owner first obtains a Temporary Driveway Installation Permit from the Association Architectural Committee and/or Roads Committee. Applicant must submit the following:
  a) Completed Driveway Permit Application, signed by the property owner
  b) Accurate drawing, showing the following:
    - Location of driveway on lot
    - Where the driveway access will meet the road
    - Size and location of culvert piping
    - All intended actions to mitigate the kinetic energy potential of downhill water

2) Every up hill driveway must have an end-pipe that conforms to the surrounding terrain. The end-pipe must be at least 15" (metal or plastic) and buried to a proper depth so that water can flow under the driveway. A cross-over pipe (X-pipe) under the driveway must be a minimum of 18" or larger based on the amount of land/water the pipe must accommodate. Cross-pipes help to keep water on the property for absorption and minimize runoff. Unconstrained water runoff from a driveway onto an adjacent paved road is unacceptable and must be corrected.

3) The driveway should be slanted toward the ditch line when possible. Water running down the driveway should be diverted on a diagonal at needed intervals to avoid dumping large amounts of water at the end of the driveway.

4) A paved driveway cap, connecting the driveway to the road, must be installed at the time of construction of a driveway. The driveway cap must be 10� with proper radii at grade that forms a smooth transition to the Association�s road. The cap may be constructed of any hard surface material that has sufficient impact resilience like hot-mix asphalt, ASTMAT/triple sealed liquid asphalt, concrete, or interlocking pavers. The property owner is responsible for maintaining the driveway cap during and after any construction.

5) Upon receipt of a completed application, the Architectural Committee shall act upon it within ten business working days. The Committee may request an on-site meeting, approve the application, reject the application or request additional information. If the Architectural Committee approves the application for construction of the driveway, a Provisional Driveway Permit will be issued for construction to begin. The construction of the driveway must be completed within ninety (90) days of the homeowner receiving the Provisional Driveway permit. If the Committee does not respond as listed above within the specified period, the application shall be considered approved. However, this type of approval does not absolve the property owner from responsibility from damage to the right of way.

6) When requested, the property owner or his designee shall be prepared to meet with Association representative(s) at the site to review the application.

7) Upon completion of the driveway, the property owner or his/her representative shall notify the Association Architectural Committee to request a Final Driveway Permit. Construction of any structure on the property is contingent on the Final Driveway Installation Permit being isssued.

B. Existing driveways.

Driveways that are found to be out of compliance must be corrected by the property owner. If the problem is not corrected within a reasonable time, the Association will make the repairs and bill the property owner. If the bill is not paid within 30 days, such billing shall constitute a lien against the owner's property.

Revised November, 2008

POLICY: ARCHITECTURAL COMMITTEE INSPECTIONS

The Architectural Committee and/or its assigns shall have access to the site of any construction project for which an Architectural Application has been submitted and/or approved.

1) Access shall not be denied to the assigned person(s) between 9:00 a.m. and 5:00 p.m. Monday through Saturday.

2) Any owner who denies access to the construction site shall have his Construction Approval suspended and must cease all construction activity until such an inspection has taken place.

3) The Board of Directors may choose to initiate a fine of up to $100.00 per day until such an inspection has been allowed.

February, 2006

POLICY: BULLETIN BOARD

The bulletin boards near the entrance to the community are for the property owners to post notices and for the FFHA Board and committees to communicate with the property owners who have residences in the community. Owners should be aware that the entrance is a "first impression" area for member's guests, potential buyers of properties, realtors, vendors and others.

A. Use of the bulletin boards.
1) The boards are not for the use of contractors, realtors, vendors and others who do not own property in the community.
2) The boards are for the use of property owners in Fairview Forest subject to the following limitations:

Acceptable postings:
• Announcement of events
• Missing pets
• Services available (computer consulting, baby-sitting, pet care, etc.)
• Items for sale

Unacceptable postings:

• Real estate sales notices
• Political statements/posters
• Opinion statements*

* Such statements are not being censored. The appropriate venues for such statements include the web site, the newsletter, email and/or letters to directors and monthly meetings of the board.

October, 2005

POLICY: VOTE COUNT PARAMETERS

When the Association is going to conduct a vote of all the property owners, the following parameters shall be followed:

A. Total Votes

1) The total number of votes is equal to the number of assessments on record as of the closing date of the vote period, meeting date, etc., regardless of any property owner's standing with the Association.

2) The vote from any owner who has sold his/her property during the voting period or prior to a meeting date shall not be counted in the total number of votes.

3) A property owner who establishes and retains ownership during the vote period or prior to a meeting date shall count toward the total votes.

4) The quantity requirement (i.e., 25 percent; quorum; simple majority; 67 percent majority, etc.) shall be based on the total votes as defined above.

B. Voter Qualification

1) The vote of a property owner who is not in good standing with the Association shall not be counted in the vote tally.

2) The vote from any owner who has sold his/her property during the voting period or prior to a meeting date shall not be counted in the vote tally.

November, 2005

POLICY: COMPULSORY AMENDMENTS

The Restrictive Covenants require that a member-proposed amendment to the Covenants that is supported by a petition signed by at least 25 percent of qualified property owners must be presented by the Board of Directors to the property owners for a vote. Such an amendment will be called a "compulsory amendment" in this policy.

A. Format required for a compulsory amendment

1) An owner-proposed compulsory amendment must be presented to the Board of Directors at a regular Board Meeting or a Special Board Meeting.

2) The amendment must be the exact wording requested by the owner(s) proposing it and must be clear and legible.

3) The petition from more than 25 percent of property owners in good standing must have the a) signer's name legibly printed, b) a signature and c) the date of signing.

B. Liability for Association expenses related to a compulsory amendment vote

1) The Board of Directors may, by a majority vote, require that the expenses of presenting a compulsory amendment to the property owners be paid for by the owner(s) proposing the compulsory amendment. Such expenses shall be the liability of the owner(s) proposing a compulsory amendment only if the amendment fails to pass. For the purposes of this policy, the owner or owners who propose and sign the amendment are the only owners liable for such expenses.

2) The Board of Directors shall make all reasonable decisions as to actions and expenses related to the compulsory amendment. These expenses may include, but are not limited to, legal expenses, postage, printed material, etc.

3) The Board of Directors may by a majority vote require a cash deposit from the owner(s) based on previous vote expenditures. Such funds, if required by the Board, shall be held in the Association deposits account also used for construction deposits.

4) If the compulsory amendment fails to pass, the Treasurer shall present to the owner(s) proposing the compulsory amendment a statement of expenses upon which a resolution of settlement shall be based.

November, 2005

POLICY: CONSTRUCTION DEPOSIT

A. Deposit amount and terms

1. A property owner shall provide to the Association a construction deposit of up to $1,000.00 before a Construction Approval slip is issued for an Architectural Application.

2. An impact fee of $500.00 will also be required at the time of application. The impact fee will be retained by Fairview Forest Homeowners� Association.

3. Structures on which a construction deposit must be made include, but are not limited to, septic systems, wells, residences, additions to residences, garages, work shops, guest houses, etc. Final determination as to a structure's qualification for a deposit shall be made by the Architectural Committee Chair.

4. The construction deposit amount shall be based on the following schedule:
a. A minimum of $300.00, regardless of structure size
b. One dollar per square foot up to 1,000 square feet under roof
(Actual deposit amount shall be rounded off to the nearest $100.00. e.g.: 660 sq. ft. under roof = $700; 825 sq. ft. = $800)
c. $1,000.00 deposit on a structure of 1,000 square feet or more under roof
Minimum square footage rules for a residence still apply regardless of deposit amount.

5. The funds shall be held in an Association savings account until the Association has received a copy of the Buncombe County Certificate of Occupancy for a residence or until an Architectural Committee member has completed a final inspection of any structure(s). In the event only infrastructure improvements to the property are made and a permanent residence is not under construction within fifteen (15) months of the Provisional Driveway Permit being issued, the construction deposit will be forfeited. If construction of a residence is begun after the fifteen (15) months, a new permit and construction deposit will be required. Interest shall be paid to the property owner at the time of return of the deposit. Interest paid shall equal the savings account annual interest rate, prorated to the nearest whole month.
6. The Association may change the amount of the deposit by a majority vote of the board.

7. The dollar amount of the deposit shall not be assumed to be the limit of liability for damage to the common elements. Property owners are liable for all of the costs of repairs for damage caused by the property owner or his/her vendor(s).

B. Reasons to debit the deposit

1. In the event that the property owner or his/her vendor(s) damage Association common elements, the property owner is responsible for repairing the damage to the satisfaction of the Association. If such repairs are not accomplished in a timely manor, the Association shall debit the property owner's deposit to cover the cost of repairs. Such costs shall be determined by an invoice for repairs or by a written quotation for the cost of repairs. Common elements include, but are not limited to, road surfaces and rights-of-way, community signs, Clubhouse and mail center, etc.

2. The decision as to whether a property owner is liable for repairs is determined solely by a majority vote of the Board of Directors.

3. The property owner shall be notified in writing that he/she is liable for damage.

4. The property owner shall be notified in writing that his/her deposit will be debited.

5. A property owner may appeal the decision of the Board. Such an appeal must be in writing and must be submitted to the President no more than five business days after he/she receives notice of a deposit debit. The appeal shall be considered by the Board no more that five business days after receipt. The property owner may be present at the appeal hearing and/or may be represented by counsel.

C. Deposit Account Minimum

In the event the deposit balance drops to less than on half of the original amount and upon notice from the Association, the property owner shall be responsible for providing funds to reestablish the original balance. Refusal to comply in a timely manner shall be subject to the Restrictive Covenants, Article 12. Enforcement.

D. Limitation of deposit debits

The Association shall not debit the property owner's deposit for unpaid assessments, unpaid fines for non-compliance or for any other unpaid debts to the Association other than those specified above.

Revised November, 2008

POLICY: AMENDMENT VOTING PERIOD

Upon the Board of Directors' approval or acceptance of a proposed amendment to be presented to the membership for a vote, the Board shall also set a date after which no additional votes shall be accepted or tallied.
a) The period for voting shall start on the date on which the proposed amendment is first presented to or mailed to property owners.
b) The period for voting shall be at least two months (60 days) but not to exceed four months (120 days). The Board of Directors shall set the period based on the circumstances surrounding the proposed amendment.
c) The approved period for voting must begin and end during the term of the Board of Directors under which the amendment was proposed.

Revised September 11, 2007

POLICY: BOARD MEETING
EXECUTIVE SESSION CONTENT

Executive Sessions of the Board of Directors shall conform to the following guidelines:

1. Content
Subjects for discussion at an Executive Session of the Board of Directors shall be limited to the following:
a) Confidential legal matters
b) Legal/financial circumstances of a property owner
c) Any matter regarding a property owner that may hold him or her up to embarrassment or ridicule

2. Attendees
Attendees shall be limited to:
a) Directors
b) Officers
c) Attendees approved by the Board of Directors

December, 2004

COVENANT CLARIFICATION:
NOT SUFFICIENT FUNDS/RETURNED CHECK

Restrictive Covenant
Section 10.11.d) A check returned to the Association for insufficient funds will be charged a fee, to be set by the Board of Directors, up to the maximum allowed by the State of North Carolina.

Clarification
The returned check fee shall be $25.00, plus any charges assessed to the Association by the bank. The fee and charges shall be due upon receipt of notification by the Association.

July, 2004

POLICY: TRASH CAN VISIBILITY

A. Background
Trash cans left out in a visible location create two problems:
a) The cans are a draw to animals, in some cases dangerous animals
b) The cans left out after pick-up day create the appearance of a messy community.

B. Policy
Trash cans put out for pick-up service shall be stored out of view of neighbors and passers-by no later than the end of the day after trash pick-up.

Enforcement
Enforcement shall be complaint-driver and shall comply with the Restrictive Covenants, Article 12. Enforcement.

July, 2004

COVENANT CLARIFICATION:
REAL ESTATE SIGNAGE

Restrictive Covenant
Section 8.3. Real Estate signage
It is the intent of Fairview Forest to maintain a neat and orderly community appearance, and discourage uninvited non-residents randomly driving through our private community.
a) Sign placement
Real estate signs shall be placed only on the property that is for sale or rent. No more than two signs per property shall be posted.
b) Sign maintenance
Realtors/owners must maintain their signs in an upright, orderly way.

Clarification
A. Sign Placement
Real estate signs may be placed only on the property that is for sale or rent. No more than two signs per property may be posted. Direction or "pointer" signs may not be placed anywhere in Fairview Forest other than on the property for sale or rent except as follows:
1. Direction or supplementary signs for an open house may be posted at the entrance to Fairview Forest and at appropriate intersection(s). Such signs may be posted on Friday of the weekend of the open house and must be removed on the following Monday. Signs not removed will be disposed of by the Association.
2. Parade of Homes signs may be posted per normal procedure for that event. Such signs should be removed by the sponsoring Realtor on the week after the event.

B. Sign Maintenance
Realtors/owners must maintain their signs in an upright, orderly way. Signs on properties for sale or rent that are not neat and orderly will be gathered by the Association and stacked behind the stone gates at the entrance.

February, 1999

Note to Realtors: The Association wishes to maintain a good working relationship with Realtors and those selling or offering for rent properties in Fairview Forest. We make every effort to cooperate with you by providing copies of the Covenants and Bylaws, the assessment status of properties for closings, etc. At the same time, we endeavor to make Fairview Forest orderly and secure.

POLICY: ROADS

1. Intent
The Roads Policy is intended to define the roads network in Fairview Forest.

2. Definition
A "road" in Fairview Forest is defined as a right-of-way that is approved for maintenance, repair and improvement by the Fairview Forest Homeowners' Association Inc. Such a right-of-way is intended for non-exclusive access to properties by property owners, their guests and vendors. The maintenance, repair and improvement of such roads is the right and responsibility of the Association.

A. Roads Included
The following list designates road rights-of-way qualified for maintenance, repair and improvement in Fairview Forest:

— Fairview Forest Drive
— Apple Forest Lane
— Black Oak Forest Road
— Cherry Forest Lane*
— Chestnut Forest Road
— Dogwood Forest Road
— Hickory Forest Road
— Hickory Forest Lane
— Maple Forest Road
— Poplar Forest Road
— Red Oak Forest Road
— Rock Springs Loop (except portion retired in 1999)
— Rock Springs Lane (at the end of Rock Springs Road)*
— Rock Springs Court (also called Rock Springs Lane)
— Rock Springs Road (except portion retired in 1998)
— Weeping Cherry Forest Road
— White Oak Forest Road

* These roads are currently unimproved. Each will be improved and maintained in conjunction with an expedited upgrade agreement between FFHA and property owners on the road. See section "3. Road Maintenance, Expedited Upgrade" below.

B. Roads and Private Driveways Excluded
The following list excludes various private driveways and unapproved, private rights-of-way in Fairview Forest:

— Locust Forest Drive
— Prayer Ridge Road
— Red Oak Forest Lane
— Spruce Forest Lane or Road

3. Road Maintenance
Road and right-of-way maintenance, repair and improvement is the right and responsibility of the Association.

A. Improved roads will be maintained using the following criteria:
— funds available
— condition of the each road
— number of assessable properties on, and length of, each road

B. Unimproved roads as of June 1, 2003 include:
— Cherry Forest Lane
— Chestnut Forest Lane
— Rock Springs Lane (at the end of Rock Springs Road)

    1) Upgrade
Each unimproved road will be upgraded over time to the level of maintained roads using the following criteria:
— funds available
— condition of the road
— number of residences on the road
— number of assessable properties on, and length of, the road

    2) Expedited Upgrade
— With approval of the Board, the Association may participate in an expedited upgrade of an unimproved road.
      a. The Roads Committee will obtain an estimate of the upgrade cost.
      b. Most of or all of the property owners on the road will agree in writing to pay for up to two-thirds of the cost.
      c. The Association will pay for the remainder and will contract and supervise the upgrade.

C. Roads Not Qualified for Association Maintenance
Private driveways; shared driveways; construction and well-drilling access roads; roads and rights-of-way established in property owners' deeds; roads and rights-of-way established by developers without the approval of the Association.

1) Non-qualified roads as of June 1, 2003 include:
— Locust Forest Drive
— Prayer Ridge Road
— Red Oak Forest Lane
— Spruce Forest Lane (or Road)

4. Road Names

A. Roads Naming Scheme
With few exceptions (defined below in B. Exceptions), roads in Fairview Forest conform to the following scheme:

1. The main road that runs the length of the community is named "Fairview Forest Drive" and is the only road called "Drive".

2. Major side roads that originate off of Fairview Forest Drive are named as follows:
The name of a tree or shrub (i.e. "Chestnut" or "Laurel") followed by "Forest Road".

3. Side roads that originate off of a major side road are named as follows:
The name of a tree or shrub followed by "Forest Lane". In most cases, the lane bears the same name as the road off of which the lane originates. Example: Chestnut Forest Lane originates off of Chestnut Forest Road. When more than one lane originates off of a road, it will bear another tree name lane designation. Example: Apple Forest Lane and Cherry Forest Lane originate off of White Oak Forest Road.

B. Exceptions
A portion of the community was under a separate developer and set of restrictions. The Rock Springs road names were used for that section, now a part of Fairview Forest.

Rock Springs Road originates at Fairview Forest Drive and runs to the north boundary of the Steven White property. The portion of Rock Springs Road that was entirely on the Steven White property was retired as a right-of-way in 1998.

Rock Springs Loop originates at Fairview Forest Drive, just south of Hickory Forest Road, and runs east. This road was originally a "loop" and exited onto Fairview Forest Drive. The portion of Rock Springs Loop that was entirely on the Michael Werst property was retired as a right-of-way in 1999.

Rock Springs Lane originates at the end of Rock Springs Road and runs southwest. Rock Springs Lane is unimproved and will only be improved and maintained in conjunction with an upgrade agreement between FFHA and property owners on the road.

Rock Springs Court (also called Rock Springs Lane) originates at Fairview Forest Drive, northeast of Hickory Forest Road, and runs south.

C. Changing Road Names
1) Road name changes may be accomplished by agreement of the property owners on a road and the Association. Road naming schemes other than the established " ______ Forest Road (Lane, etc.)" shall not be approved.

2) For the sake of community continuity and residents safety, road name changes to any of the Rock Springs rights-of way are encouraged by the Association. For the sake of safety, a naming clarification regarding the two Poplar Forest Roads is encouraged.

3) Procedure
  a. Obtain the approval* in writing of all the property owners on the road.
  b. Fill out a ROAD NAME PETITION form obtained from the Buncombe County Department of Planning and Development.
  b. Obtain the approval of the Association in writing by presenting your petition to the Association Board of Directors.
  c. Submit your petition to the county.
  d. Inform all property owners of the change.
  e. Request new road signs from the Association.

4) Some tree names available:
Ash, Beech, Birch, Buckeye, Butternut, Hemlock, Pecan, Persimmon, Sourwood, Sycamore, Walnut

* If a property owner does not reply either "for" or "against" a new name, send a registered letter informing the owner that unless you are informed otherwise, their non response will be assumed to be an approval.

5. Rights-of-Way

Restrictive Covenant
Section 5.3. The purpose of the Association is to:
a) repair, maintain and improve the rights-of-way...

Background
Property owners' property lines extend to the middle of the road in Fairview Forest*. However, there has been established a right-of-way of 30 feet on either side of the road centerline. That right-of-way was established to build, maintain and improve roads to access properties, and along with established easements, provide access for electricity, telephone and other utilities. Two major functions of the Association responsibility to "repair, maintain and improve" roads and rights-of-way concern 1) road damage, and 2) road safety.

A. Road damage
Any situation or activities (construction, landscaping, etc.) initiated by a property owner that damages the roads shall be the responsibility of the owner to correct or repair to the satisfaction of the Association. Refusal to correct or repair the road shall result in repairs by the Association the cost of which shall constitute a lien upon the property until settled.

B. Road safety
Any situation or activities (construction, landscaping, etc.) initiated by a property owner that creates a danger to those using the roads shall be the responsibility of the owner to correct or repair to the satisfaction of the Association. Refusal to correct the unsafe conditions shall result in action by the Association the cost of which shall constitute a lien upon the property until settled.

* Exception: Owners of property sited on Fairview Forest Drive between the Community entrance and Red Oak Forest Road.

6. Driveway Connection to Fairview Forest Drive

A. Applicability
1) Property Site Types
This policy only applies to:
a) those properties in Fairview Forest that are sited on Fairview Forest Drive and
b) those properties in Fairview Forest that are sited on a side road and are also bordered on one side by Fairview Forest Drive.

B. Policy
1) Properties sited on Fairview Forest Drive
Properties sited on Fairview Forest Drive will have a driveway connection onto the Drive. Prior to installation of a driveway, owners of such properties must confer with the Roads Committee regarding the location of driveway connection concerning both safety and erosion.
2) Properties sited on side roads and bounded by Fairview Forest Drive Properties sited on side roads that have a boundary on Fairview Forest Drive may not install a driveway connection to Fairview Forest Drive.* If owners feel that there are extenuating circumstances that support connection to the Drive, they can appeal to the Board in writing and/or in person.

* Note: The property at the north corner of Maple Forest Road and Fairview Forest Drive has a driveway connection to Fairview Forest Drive that was granted by a former developer. That connection is grandfathered and therefore approved by default.

7. Parking on Roads and Other Common Areas

A. General rules:
1. Do not park vehicles on or beside the roads and cul-de-sacs.
2. Owners are responsible for the vehicles of their guests and vendors.
3. Vehicles (including trailers) not licensed for their intended use that are parked in common areas, on or beside roads and cul-de-sacs shall be considered abandoned and shall be towed towed away at the owner's expense.
4. FFHA vendor vehicles shall be given wide latitude on staging and parking of equipment.

B. Specific restrictions and guidelines:
1. Fairview Forest Drive
  a) Do not leave a vehicle unattended on or beside the Drive.
  b) Short term parking (less than an hour) is acceptable but not encouraged. Short term parking shall not be around curves or on steep portions of the Drive.

2. Clubhouse/Mail Center parking area
  a) The parking area is intended for a variety of uses:
— Clubhouse attendee parking
— Property owners guest parking
— Transfer truck work area
— Construction equipment storage (short term, such as a day or two)
— FFHA vendor vehicle and equipment storage area
— Winter bad weather parking area

3. Side roads
  a) Do not leave a vehicle unattended on or beside side roads.
  b) Short term parking (less than half an hour) is acceptable but not encouraged. Short term parking shall not be around curves or on steep portions of a side road. Short term parking shall not block or partially block a side road.

4. Cul-de-sacs
Cul-de-sacs shall be kept clear as a turn-around area for fire and emergency vehicles as well as larger trucks and vehicles.
  a) Do not leave a vehicle unattended in cul-de-sacs, short or long term.
  b) Construction materials, trailers, etc. shall not be stored in cul-de-sacs. A cul-de-sac may be used as a transfer area for such materials.

C. Exceptions:
1. Parties
When a property owner has a party, guests may park on the area beside the road. Please ask your guests to leave enough road clearance for neighbors to pass.

2. Major deliveries and construction
  a) Instruct delivery driver to keep a passage open.
  b) Be prepared to have the driver move the vehicle in case of emergency.
  c) Contractor's subs should park on the construction property whenever possible. When parking on the road is necessary, workers shall park so as to not block road passage.

3. Winter
Parking on the sides of the main road and at the entrance to side roads is sometimes necessary during winter weather. Use good judgment so as not to put your vehicle in a position dangerous to others.

August, 2003

POLICY: PLACEMENT OF ENCUMBRANCES ON EASEMENTS AND RIGHTS OF WAY

Property owners who, after November 1, 2006, plant to install, place or plant any encumbrances* along the edge of the road(s) that are adjacent to their property are advised to placed such encumbrances at least 15 feet from the edge of the road.

The areas mentioned are part of 1) the road right of way reserved to the Association for maintenance and, 2) the easements reserved to utilities for installation of lines.

Both the Association and utility companies may remove such encumbrances without notice to the property owner and without liability.

*For purposes of this policy, "encumbrances" are defined as (but not limited to) fences, gates, walls, trees, shrubs, posts (excluding house number signs) or any item that:
• impedes road maintenance or
• interferes with utility work or
• creates a roadside hazard for motorists

October 30, 2006

COVENANT CLARIFICATION:
SUB-ONE ACRE PROPERTIES

Restrictive Covenant
Section 9.8. Minimum lot size.
No residence may be constructed on a lot smaller than one acre.

Clarification
1. A residence may be constructed on a lot consisting of less than one acre only if:
a) the lot was platted and registered in the Buncombe County Deed Book as of October 5, 1988.
b) the property defined in the deed in force as of October 5, 1988 not have been reconfigured in any way.

2. The Association will not recognize plat designations drawn and then discontinued before October 5, 1988.

March, 2003

POLICY: CONSTRUCTION APPROVAL
AND DELINQUENT ASSESSMENTS

1. The FFHA Architectural Committee shall not issue a Construction Approval certificate to a property owner who is delinquent in the payment of annual assessments.

2. This prohibition may be waived only by a vote of a majority of the Board of Directors.

July 30, 2001

COVENANT CLARIFICATION:
ARCHITECTURAL APPLICATION APPROVAL - TERM

Restrictive Covenant
Section 9.10. Architectural Committee approval of structures.
a) No structure shall be constructed or placed on a lot unless the property owner first obtains a cerfiticate of Construction Approval from the Association Architectural Committee.

Background
Many owners in Fairview Forest have, on occasion, built structures on their properties over a two or even three-year period. Monitoring of such construction is more complicated than a house built in less than a year. Rather than setting a completion term for construction, the Board requires the following:

Clarification
Any owner who has not completed a structure within one year of Construction Approval must provide a notice of intent to complete construction. The notice (in the form of a letter) shall be addressed to the Architectural Committee and shall include a construction progress report, details of any changes in plans since first application and an expected completion date. Failure to comply shall fall under the Restrictive Covenants, Article 12, Enforcement.

October, 2002

POLICY: CONTIGUOUS PROPERTY

A. Definition
Two or more properties that share a boundary or touch at any point shall be considered contiguous.

B. Assessments
Two or more properties that are contiguous shall be assessed one assessment if they:
1) meet the requirements of A. (above), and
2) bear deeds registered under exactly the same ownership.

September, 2002

COVENANT CLARFICATION: OWNERS'
DRIVEWAY MAINTENANCE AND REPAIR

Restrictive Covenants
Section 8.9. Liability for damage to roads and common property.
A property owner is responsible for the repair of damage done by the property owner, his/her guests or vendors, to common property of the Association. If repairs are not effected within a reasonable time, the Association will make the repairs and bill the property owner. If the bill is not paid within 30 days, such billing shall constitute a lien against the owner's property.

Clarification
A. The construction, maintenance and repair of a property owner's driveway is the responsibility of each owner.

B. If the right-of-way maintained by the Association is damaged by a property owner's driveway, the repair of the damage to the right-of-way is the responsibility of the homeowner.
1) Damage may be due to the configuration or maintenance of the driveway, including the surface, ditches or culvert(s).
a) The determination of responsibility for damage shall be determined by the Roads Committee Chair. Such a determination may be appealed by the property owner to the Board of Directors.

C. If the property owner refuses to make proper repairs in a timely manner, the Association shall repair the damage and invoice the property owner for the expense. An invoice for such repair that is delinquent past 30 days shall be considered a lien against the property.

July, 2002

GREEN SPACE POLICY

A. Definition
The Association owns a variety of green spaces in the community. The Green Space covered by this policy is the tract of Association land specified below under "B".

B. Location
The Green Space is the ravine adjacent to Fairview Forest Drive. It runs from Black Oak Forest Road to the South to Red Oak Forest Road to the North and from owners' property boundaries to the East to Fairview Forest Drive to the West.

C. Use
The Green Space is set aside as a nature refuge for use by members in good standing and for their guests and/or tenants.

D. Prohibitions
1. Removal of foliage
   a. No unauthorized member shall remove foliage (trees of any size, bushes, plants) from the Green Space.
   b. The Board of Directors may authorize the removal of foliage to maintain hiking trails and/or to maintain the adjacent road rights-of-way.

2. Owners of property adjacent to the Green Space:
   a. shall not clear any foliage for any reason.
   b. shall not use any portion of the Green Space for storage of any material.

3. As in all of Fairview Forest, no one shall burn any material on the Green Space under any circumstance.

4. The Green Space shall not be used for trash or dumping.

5. The Green Space is not available for camping or sleep-overs.

6. Motorized vehicular traffic shall not be permitted.

June, 2002 / Modified April, 2006

POLICY: SPECIAL FUNDS

The Treasurer of the Association shall maintain two special funds, the Emergency Fund and the Discretionary Fund.

A. The Emergency Fund
The Emergency Fund shall be maintained for the purpose of paying for some or all of the cost of repair for major damage to the common elements of the community, including rights-of-way and the Clubhouse. (Example: A major road collapse or wash-out.)

Replacement of a depleted or partially depleted Emergency Fund shall come from future budget assignments as quickly as is feasible while still maintaining the community.

The minimum balance for this fund shall be set by agreement of a majority vote of the directors and officers.

B. The Discretionary Fund
The Discretionary Fund shall be maintained for the purpose of paying for minor, but unexpected expenses that occur during a budget year. (Example: Replacement of a collapsed culvert pipe.)

Replacement of a depleted or partially depleted Discretionary Fund shall come from assignment from the subsequent year's budget.

The minimum balance for this fund shall be set by agreement of a majority vote of the directors and officers.

March, 2004