The Lauren, A Condominium in downtown DC - Conflict Resolution Procedures, June 1999

Board of Directors

THE LAUREN, A CONDOMINIUM

ADMINISTRATIVE RESOLUTION ADOPTED JUNE 16, 1999

CONFLICT RESOLUTION PROCEDURE

Recitals

A. The Bylaws assign to the Board of Directors ("Board") all of the powers and duties necessary for the administration of the affairs of the Condominium. Unit Owners Association ("Association");

B. The Bylaws empower the Board to adopt and enforce rules and regulations; and

C. For the benefit and protection of the Association and of the individual owners, the Board deems it necessary and desirable to establish a procedure to ensure due process in cases involving alleged violations of the provisions of the Declaration, the Bylaws or the Rules and Regulations ("Governing Documents");

THE BOARD OF DIRECTORS HEREBY RESOLVES that any and all previous enforcement procedures are repealed, and the following enforcement procedure is adopted.

I. PROCEDURE

A. Initial Actions to Secure Compliance.

1. Informal Action. In the interest of cooperation and good relations between neighbors, it is the policy of the Association that residents of the community should try to work together informally and cooperatively to resolve matters which appear to violate the Governing Documents. Any resident, officer, or agent of the Association may request that an owner or resident correct any apparent violation of the Governing Documents. Such informal requests should be made before the formal process is initiated.

2. Written Complaint. If informal requests do not result in compliance, a written complaint providing the specifics of the alleged violation may be filed with the Management Office. A written complaint may be filed by any person. The complaint shall specify the facts of the alleged violation in sufficient detail so that -the respondent will be able to understand the nature of the alleged violation and be able to prepare a defense. The complaint shall identify the specific provisions of the Governing Documents which allegedly have been violated. The complaint must be as specific as possible as to times, dates, places and persons involved.

3. Preliminary Investigation. Upon receipt of the written complaint, Management shall make a preliminary investigation as to the validity of the complaint. If the alleged violation has been corrected since the complaint was made, or if the complaint is for any other reason no longer valid, Management shall respond in writing to the complainant. After a complaint has been filed, Management may, if appropriate, contact the complainant and the alleged violator to try to resolve the complaint informally. If such efforts are not appropriate, or are not successful, and if the preliminary investigation indicates the need for further action, the process shall continue as set forth below.

B. Written Request. Management shall send a written request to the alleged violator, in accordance with the following procedure:

1. The written request shall ask the alleged violator to correct the alleged violation and shall specify: (i) the violation; (ii) the provision of the Governing Documents that has been violated; (iii) the action required to correct the violation; and (iv) a time period of not less than 10 days during which the violation may be corrected without further sanctions or a statement that any further violations of the same provision may result in sanctions after a further notice and a hearing.

2. The request shall be mailed to the owner at the address on file at the Management Office, and to the resident of the property, if not the owner.

3. A copy of the request shall be filed in the Management Office. A copy also shall be provided to the Board.

C. Failure to Comply with Request. The following procedures shall be followed when a continuation or a repetition of a violation occurs:

1. Notice of Hearing. If a preliminary investigation indicates further action is necessary, and if the violation has not been corrected pursuant to the written request specified above, Management shall serve a Notice of Hearing and a copy of the complaint on the respondent. The Notice shall be served not less than 14 days prior to the date of the hearing. The Notice shall be hand delivered or mailed by first class United States mail to the respondent at the address or addresses required for notice of meetings and, in the case of non-owner residents, to the property address as well. Service by mailing shall be deemed effective 2 days after such mailing. No order adversely affecting the rights of the respondent may be made in any case unless notice has been given as provided herein.

The Notice of Hearing sent to the respondent shall state the time, date and location of the hearing and shall inform the respondent of his or her right to be present at the hearing, to be represented by counsel and to present any witnesses or evidence. The Notice shall also describe any sanctions which may be imposed on the respondent.

2. If any parties can promptly show good cause as to why they cannot attend the hearing on the set date and indicate times and dates on which they would be available, Management may reset the time and date of hearing and promptly deliver notice of the new hearing date.

D. Hearing. A hearing shall be conducted by the Board of Directors ("Board") to afford all parties a chance to present or defend their cases. The following procedure shall apply:

1. Proof of Notice, Minutes. Proof of notice and the invitation to be heard shall be placed in the minutes of the meeting. Such proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the party who delivered such notice. The notice requirement shall be deemed satisfied if the respondent appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed.

2. Constraints on the Board. Any member incapable of objective consideration of the case shall disclose this fact to the Board and shall not take part in the proceedings or in the Board decision. Any member of the Board has the right to challenge any other member who is unable to function in a disinterested and objective manner. Any such challenge shall be decided by the Board, provided, however, that the challenged member shall not have a vote on the challenge.

3. Hearing Procedures.

a. The Board shall select a person to serve as hearing officer and preside over the hearing. Such hearing officer need not be an owner or a member of the Board. At the beginning of the hearing, the hearing officer shall explain the rules and procedures by which the hearing is to be conducted.

The Board may determine the manner in which the hearing will be conducted, so long as the rights set forth in this section are protected. The hearing need not be conducted according to technical rules relating to evidence and witnesses. Generally, any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions.

b. Neither the complainant nor the respondent must be in attendance at the hearing. The hearing shall be conducted in executive session.

c. Each party shall have the right to do the following, but may waive any or all of these rights:

(1) make an opening statement;

(2) introduce evidence, testimony, and witnesses;

(3) cross-examine opposing witnesses by directing questions to the hearing officer;

(4) rebut evidence and testimony; and

(5) make a closing statement.

Even if the complainant or the respondent does not testify in his own behalf, each may still be called and questioned, if in attendance.

4. Decision. After all testimony and documentary evidence has been presented to the Board, the Board shall consider and vote upon the matter. Agreement of a majority of the Board in attendance at the hearing shall be required for a decision. The decision shall be made promptly after the hearing and shall include the Board's decision with respect to any fines or other sanctions or actions to be taken.

The Board shall prepare written findings of fact and a written decision. A copy of the findings and decision of the Board shall be sent to each party in the matter and his/her attorney, if any. A summary of the decision, excluding names of persons involved and addressing only the issues and the Board decision shall be included in the Board Minutes.

II. INTERPRETATION

This Resolution is intended to serve as a protection to owners and residents to ensure that their rights are protected and to serve as a guideline for the Board as it carries out its duties to enforce the Declaration, Bylaws and Rules and Regulations.

The Board may determine the specific manner in which the provisions of this Resolution are to be implemented, provided that reasonable due process is afforded.

Any inadvertent omission or failure to conduct any proceeding in exact conformity with this Resolution shall not invalidate the results of such proceeding, so long as a prudent and reasonable attempt has been made to ensure due process according to the general steps set forth in this resolution.

Ill. REMEDIES

Upon reaching a decision, the Board may invoke any sanctions or take any actions legally available to the Association. Such sanctions may include reasonable fines levied pursuant to the Condominium Act, which shall be part of the lien for assessments against the unit.

IV. LEGAL ACTION

Notwithstanding any provision of this Resolution, the Association may initiate legal action at any time without following the procedures set forth herein if, in the judgment of the Board, the interests of the Association so require.