WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) to adopt Policies (“BP” or “Policies”) not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).
WHEREAS 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.
WHEREAS the Restated Articles of Incorporation and the Corporate Bylaws shall take precedence over Board Policies and that the following Board Policy on Code of Conduct and RCSC Rules and Regulations shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed by the Board.
NOW, THEREFORE BE IT RESOLVED the Corporation shall adhere to the following policies regarding Annual Property Assessments, Fees and Collections:
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 holding or owning a current ownership interest in 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): Any Person or entity holding or owning a current ownership interest in 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. If a trust holds or owns the current ownership interest in the Property, then the Owner(s) shall be no more than two of the current income beneficiaries of the trust. Remainder, contingent or non-vested beneficiaries of a trust shall not be considered Owner(s). If a corporation, limited liability company, partnership or other entity (the “Company”) holds or owns the current ownership interest in the Property, then the Owner(s) shall be no more than two individuals selected by the Company from its shareholders, members or partners in accordance with the RCSC 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. Any Property which has any change in its legal or beneficial ownership 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 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 (a) Owners consistently maintain the Property as their primary Arizona residence as defined in the Corporate Bylaws; (b) Owners are in compliance with the Restated Articles of Incorporation, Corporate Bylaws, Board Policies and any Rules and Regulations of the Corporation; and (c) original Owners as of February 1, 2003 remain as majority Owners or income beneficiaries of the Property. If any purchase, acquisition, transfer, inheritance of the Property occurs after February 1, 2003, or if any Owner or beneficial interest is added to the Deed after February 1, 2003, then the assessment basis shall be changed to a Per Property basis and a new Facilities Agreement shall be executed by all 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 sixty (60) 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.
iv. All accounts ninety (90) days in arrears may 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.
v. 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.
vi. 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.
vii. 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 for all properties owned in Sun City. A Member must pay all late fees, interest and lien fees, as well as their property and special assessments and transfer and preservation and improvement fees on all Sun City properties owned before they will be allowed to use RCSC facilities or vote. If any individual has unpaid assessments or fees relating to any Sun City property, that individual will not be allowed to use RCSC facilities or vote until all assessments and fees have been paid in full regardless of current ownership of the property.
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. If an any individual has unpaid assessments or fees relating to a Sun City property that has been previously owned, that individual will not be allowed to use RCSC facilities or vote until such time that the unpaid assessments and fees have been paid in full.
BE IT FURTHER RESOLVED that a copy of this resolution shall be posted on the RCSC website for members and shall be made available to members upon request at no cost.
Adopted and signed this 19th day of December, 2013 at a duly called Board meeting by a majority (5) of the Recreation Centers of Sun City, Inc. Board of Directors.
