RESOLUTION regarding INSURANCE

page 1
VILLAGE TWO, INC.
BOARD OF DIRECTORS' RESOLUTION
REGARDING INSURANCE AND WATER LEAK

WHEREAS, Village Two, Inc. (“Association”) is governed by a
Declaration of Horizontal Property Regime and Declaration of Covenants,
Conditions and Restrictions for Village Two, recorded at recording number 83-
490885, Official Records of Maricopa County, Arizona, and all amendments
thereto (“Declaration”). The Declaration applies to the real property as described
in the Plat recorded in Book 256 of Maps, Page 36 of the Official Records of
Maricopa County, Arizona;
WHEREAS, all Units within the Association are governed by the
Declaration;
WHEREAS, Section 17 of the Declaration allows the Association to
adopt reasonable rules and regulations.
WHEREAS, Section 4 of the Declaration provides that the Association is
responsible for the maintenance and repair of the Common Elements.
WHEREAS, Section 12 of the Declaration provides that Unit Owners are
responsible for the maintenance and repair of their Unit and certain areas used
exclusively by the Unit Owner.
WHEREAS, Section 12 of the Declaration provides that Unit Owners are
responsible for damage caused to Common Elements or Units by the willful or
negligent acts of the Unit Owner or the Owner’s residents, family, tenants,
guests or invitees.
WHEREAS, Section 9 of the Declaration obligates the Association to
carry casualty, liability, workmen’s compensation, and fidelity insurance for the
benefit of the Association and the Unit Owners.
When recorded, return to:
Carpenter, Hazlewood, Delgado & Wood, PLC
1400 East Southern Avenue, Suite 400
Tempe, Arizona 85282

page 2
WHEREAS, the Board of Directors is extremely concerned about water
damage to Units and Common Elements, and the potential ramifications of such
damage to the members of the Association in general, as well as any members
specifically affected due to the damage caused to Units and the Common
Elements and the increase in insurance premiums that result from numerous
water claims.
WHEREAS, changing the hoses for toilet tanks, washers, water heaters,
bathroom sinks, kitchen sinks, dishwashers, and refrigerators with ice makers to
more durable hoses as described below is required for the welfare and safety of
the members of the Association to help prevent future water damage;
NOW, THEREFORE, based on the power authorized to the Board of
Directors and the responsibilities of the Owners, the Board of Directors hereby
adopts the following resolution and makes the provisions below part of the
Association’s rules and regulations:

RULES COVERING THE COSTS OF DAMAGE IF
LESS THAN THE INSURANCE DEDUCTIBLE
1. If damage occurs solely to one Unit that is less than the Association’s
insurance deductible, the owner of the Unit shall be responsible for full
payment of the cost for repair, replacement or restoration thereof, unless
the damage was caused by another Unit Owner’s negligence or actions.
2. If damage occurs to more than one Unit but not the Common Elements
that is less than the Association’s insurance deductible, each respective
Unit Owner shall be responsible for full payment of the cost of the repair,
replacement or restoration thereof, unless the damage was caused by
another Unit Owner’s negligence or actions.
3. If damage occurs to one or more Units and to the Common Elements that
is less than the Association’s insurance deductible, the costs of repair,
replacement or restoration thereof shall be prorated based on the
percentage of damage caused to each Unit and the damage caused to the
Common Elements, and each respective Unit Owner shall be responsible
for full payment of his or her pro rata share and the damage caused to the
Common Elements, unless the damage was caused by another Unit
Owner’s negligence or actions.

page 3
4. If damage occurs solely to the Common Elements that is less than the
Association’s insurance deductible, the Association shall be responsible
for the costs of repair, replacement or restoration thereof, unless the
damage was caused by a Unit Owner’s negligence or actions.
5. If damage occurs solely to a Common Element(s) or Limited Common
Element(s) that benefit fewer than all of the Units that is less than the
Association’s insurance deductible, the Association shall be responsible
for the costs of repair, replacement or restoration thereof, and the costs
shall be assessed exclusively against the Units benefited, unless the
damage was caused by another Unit Owner’s negligence or actions.
6. If the negligence or actions of a Unit Owner (or the Owner’s residents,
tenants or guests) causes any of the damage as set forth above, the Unit
Owner shall be responsible for the full costs of repair, replacement or
restoration thereof.
7. The Board of Directors shall determine the costs to be paid by each party
if the amount of damage is less than the Association’s insurance
deductible. Any amount determined to be the payment obligation of a
Unit Owner to repair the Common Elements or any Unit other than the
Owner’s Unit shall be charged to the Owner and collectible in the same
manner as a regular assessment.
8. If damage is caused to the Common Elements that is not covered by
insurance, and if such damage was caused by the negligence or actions of
an Owner, or an Owner’s residents, family, tenants, guests or invitees, the
Association shall charge the cost to repair such damage to the Owner,
which is collectible in the same manner as a regular assessment.
9. Each Owner should be aware of the amount of the Association’s
insurance deductible so that the Owner carries proper insurance coverage
to meet any gaps in insurance coverage.

RULES RELATING TO PAYMENT OF INSURANCE DEDUCTIBLES
1. In the event that loss or damage covered by the Association’s insurance
policy is caused by the negligence or willful act of a Unit Owner, the
Owners residents, family, guests, tenants or invitees, or from unknown
causes within the Unit without any negligence being attributable, such
Unit Owner shall be liable for the full amount of any deductible on the
Association’s insurance policy.

page 4
2. In the event that more than one Unit is involved in any insured loss, and
the cause of the damage cannot be attributable to any one Unit or Owner,
the deductible will be proportionately distributed among all Units who
have experienced the loss.
3. In the event that the cause of the insured loss is directly attributable to a
failure in operation of a Common Element, the Association shall pay the
deductible.

RULES REGARDING INSURANCE CLAIM PROCEDURES
1. Nothing herein shall relieve a Unit Owner of the absolute and primary
responsibility to insure their property, including their condominium Unit,
pursuant to the requirements of the Association’s Declaration. In the
event a Unit Owner or resident is insured for any loss to the condominium
Unit or their property, the Association shall be entitled to require the Unit
Owner or resident to claim any loss under such Owner or resident’s
insurance policy.
2. Unit Owners must file all claims on the Associations policies with the
Association’s managing agent, not with the Association’s insurance
agent. The managing agent will not refer the claim to the Association’s
insurance agent until the Unit Owner provides proof that the claim
exceeds the applicable insurance deductible.
3. The Association shall disburse insurance proceeds pursuant to the
requirements of Section 9.6 of the Declaration.

RULES RELATING TO MAINTAINING UNITS TO HELP PREVENT WATER LEAKS
1. Each Owner must provide the name of the Owner’s insurance company,
agent name, address and telephone number to the Association within
forty-five (45) days from the date that the Association requests this
information.
2. Each Owner shall install steel-braided toilet tank fill hoses with steel
connectors and ball valve shutoffs at the wall. These will replace the fill

page 5
hoses with plastic connectors at the toilet tank and screw-type shutoff
valves. This provision is not applicable if the Owner has installed braided
fill hoses with steel connectors and ball valve shutoffs.
3. Each Owner shall install steel-braided washer hoses to replace plain
rubber hoses provided at purchase. This provision is not applicable if the
Owner has installed steel-braided hoses.
4. Each Owner shall install copper, steel-braided, or nylon mesh tubing on
ice maker refrigerators to replace plain plastic tubing. This provision is
not applicable if the Owner has already installed authorized tubing as
described above.
5. Each Owner shall install steel-braided hoses with steel connectors and
ball valve shutoffs at the wall connecting any and all bathroom or kitchen
sink(s) to its water supply.
6. Each Owner shall install copper or steel-braided hoses with steel
connectors on any and all dishwasher water connections.
7. Each Owner shall install copper or steel-braided hoses with steel
connectors on any and all water heater connections. Each Owner shall
also install water heater catch pans and water drainage lines where
installation of the water drainage lines is feasible.
8. If an Owner leaves a Unit vacant for more than seven (7) days, the Owner
shall shut off the water to the Unit. If the Owner is on a common water
line and cannot shut off all of the water to the Unit, the Owner shall shut
off all water valves inside of the Unit to shut off water to the Unit to the
greatest extent possible. Furthermore, if an Owner leaves a Unit vacant
for more than two (2) weeks, the Owner shall have a person perform
weekly inspections of the Unit to ensure that no water leaks or other
damage has occurred to the Unit.
9. Each Owner shall provide the Association with an emergency contact
person with appropriate contact information, including telephone number.

ADDITIONAL OWNER OBLIGATIONS
1. Any Owner, member of the Owner’s family, Owner’s resident(s),
tenant(s), or guest(s) is prohibited from throwing or flushing any foreign
object (i.e., any item that is not intended to enter into the sewer/plumbing

page 6
system) into the sewer/plumbing system, including, but not limited to,
female hygiene products, and paper products, other than toilet paper.
2. Each Owner shall be responsible for the repair or service upon a
sewer/plumbing line situated within a Unit at his or her own expense,
whether or not such need for repair or service is caused by any foreign
object or the like.
3. In the event that a foreign object, as discussed in paragraph 1 of this
section, has caused the need for repair or service upon a sewer/plumbing
line that serves the Common Elements or forms part of any system
serving more than one Unit, the cost of such repair or service shall be
charged and assessed against such Owner and such assessment shall be
collected in the same manner as a regular assessment.

The original document shows that the following information was completed and notorized, and that the entire document has been recorded. Copies were mailed to all Village 2 homeowners on January 6, 2011. Questions should be directed to National Property Services at 480-443-5566.

A majority of the Board of Directors adopted the above Resolution on this
____ day of ________________, 20____.

DATED this ___ day of ___________________, 20___.
VILLAGE TWO, INC.
By: ____________________________
Its: President
STATE OF ARIZONA )
) ss.
COUNTY OF MARICOPA )
On this ___ day of ________________, 20____, before me the
undersigned Notary Public, personally appeared _____________________, who
acknowledged to me that he/she is the President of Village Two, Inc. and that
he/she executed the foregoing resolution on behalf of the Association for the
purposed expressed therein.
___________________________
Notary Public

STAY INFORMED

Air conditioning repairs…Please be sure your repairmen have a 32 foot ladder to reach the A/C towers. They should NOT be walking on the tile roofs. Broken tiles and roofing repairs are expensive.

Village Two CCRs and By-Laws that everyone signed on to at time of purchase ARE being enforced. ALL HOMEOWNERS and RENTERS ARE RESPONSIBLE FOR KNOWING THE RESTRICTIONS. When in doubt, contact Management for clarification. Saves problems later…..THANKS

Towels…Rugs, swimsuits, bedspreads, etc. must not be left hanging over balcony railings. POOL C is a NO SMOKING area, and no glassware means NO GLASS BEER OR WINE BOTTLES.

Garbage…PLEASE be sure your trash is placed IN the dumpster bin. Trash on the floor of the enclosure encourages rats, ants, etc. Please close sliding doors and lids.

Concerns….If you are aware of an issue (repairs, violations, safety problems, etc.) that needs to be brought to the attention of the HOA Board or Management, please call MANAGEMENT at 480-433-5566.

EMERGENCY PHONE NUMBERS:
Village 2 concerns call NATIONAL PROPERTY SERVICES 480-443-5566
Pool, tennis courts, and green belt areas call PARKER-FINCH 480-284-5551

ANNUAL HOA MEETING

The annual meeting of Village Two Homeowners' Association will be on
Saturday, March 5, 2011 at 2:15 PM
Mustang Library Auditoriom
10101 N. 90th Street...Scottsdale

Watch for details in the newsletter that will be mailed at the
end of January or beginning of February.

2011 HOA ELECTIONS

Board candidates....if you are interested in volunteering for the 2011 Village 2 Board of Directors and want your name on the ballot, please submit a "candidate snapshot" ASAP to ashleynps@aol.com. This information must be received by January 15, 2011 in order to meet handling deadlines.

2011 MONTHLY ASSESSMENTS

Please remember that ...beginning January 1, 2011, the Village Two monthly assessment has changed to $204. The increased $34 is going into reserves and will be used for the tile roofing project. The actual project is delayed until January of 2012 when there will be a special assessment to raise the necessary money needed between the 2011 monthly assessment increase and the actual cost of the project. Questions??? Call Management at 480-443-5566 or e-mail ashleynps@aol.com

VILLAGE TWO CONDOMINIUMS CCRs

This is a reminder of some of the Conditions, Covenants and Restrictions / By-laws. Please review pages 36 - 39 of the CCRs. If your condo is a rental, please make a copy of this information available for the convenience of your renters. Paragraph 1, pg 39 of the CC&R’s explains the Board’s authority to levy fines upon the Owner of any unit in violation.

Occupancy
No commercial/business activities, or signs of any type, are allowed
(Exception: ONE “for sale” and ONE “open house” (when appropriate), ONE “for rent/lease” sign per condo INSIDE WINDOW is permitted. No signage allowed on common property. (Contact Management for details)

No gas or charcoal grills permitted on balconies or patios…this is a violation of City of Scottsdale fire law. Only electric grills are acceptable. The Fire Department will be called to cite violators

Dogs larger than 15 pounds are prohibited. Dogs must be leashed, and PLEASE CLEAN UP after your pet

Signed permission from HOA board is required for satellite dishes and all other changes/additions to Village Two property (front and/or back)

Rentals must be for a minimum of 30 days & the CCRs do allow that a copy of the lease may be called for by the Board of Directors

Patios/balconies are not to be used for storage, and only typical patio furniture is allowable…no overstuffed chairs/couches

No items of any kind (towels, rugs, clothes) may be hung over railings

No bamboo-type shades may be hung on patios or balconies

Holiday decorations must be removed by January 15 (per McCormick Ranch CCRs)

Vehicles
Numbered spaces are assigned to condos. Please use your assigned space as guest parking fills up during the winter months. No parking on streets.

Parking of Trailers, RV’s, sport equipment is not allowed on Village Two property

Bicycles should be locked to an available post near your covered parking space and
should not be parked on front entry door porches or in atriums.

No unsightly vehicles allowed

Pools and Tennis Courts
Quiet time is 10:00 PM to 7:00 AM. Please be considerate of poolside homeowners

Pools and tennis courts are for the use of homeowners and their guests. Please be prepared to prove your status if you are questioned as we attempt to remove trespassers.

All eight (8) pools and the surrounding decking are NO-SMOKING areas

Children under 14 must be accompanied by an adult and are not permitted in the hot tub for health reasons

No pets allowed in pool area

Please read and be familiar with signs at the pools and tennis courts.

EMERGENCY PHONE NUMBERS:
Village 2 concerns call NATIONAL PROPERTY SERVICES at 480-443-5566
Pool, tennis courts, and common areas call PARKER FINCH at 480-284-5551

JANUARY 2011 BOARD OF DIRECTORS' MEETING

Notice of BOARD of DIRECTORS’ MEETING:

Next meeting is set for Tuesday, January 25, at 8:00 AM
National Property Service Office
7127 E. Sahuaro Drive #101
Homeowners are ALWAYS welcome

VILLAGE 2 JANUARY NEWSLETER

Village 2 Udate

http://village2scottsdale.blogspot.com
ashleynps@aol.com (note new e-address)

January 1, 2011

ELECTIONS...It will soon be time to elect board members for 2011.
If you are interested in being a candidate, please contact Management. You must submit a “candidate sketch” no later than January 15, 2011, to be on the ballot.

The 2010 Village Two HOA Board of Directors includes:
Ken Salt president
Sammy Khaled vice president/secretary
Karen Larson treasurer
Pat Anderson board member/VRA rep
Betty Johnson board member

ANNUAL MEETING of Village Two Homeowners’ Association will be held at Mustang Library Auditorium on Saturday, March 5, 2011
2:15 PM Check-in and refreshments, and 2:30 PM Meeting begins
Homeowners will be receiving official meeting information in the mail soon.

HOLIDAY DECORATIONS…McCormick Ranch CCRs stipulate that all holiday decorations must be removed by January 15 of the new year.

JANUARY MAILINGS…please be looking for the following:
1…Early January: insurance information
2…Late January/early February: HOA election information/ballots

EMERGENCY PHONE NUMBERS:
Village 2 concerns call NATIONAL PROPERTY SERVICES 480-443-5566
Pool, tennis courts, and green belt areas call PARKER-FINCH 480-284-5551