The following collection policy was adopted by the Board of Directors of the Little Elk Creek Village Home Owners Association ("Association"), pursuant to C.R.S. § 38-33.3-209.5, at a meeting of the Board of Directors.

Effective Date: May 13, 2026

NOW, THEREFORE, IT IS RESOLVED that the Association does hereby adopt the following Collection Policy:

ARTICLE I

(Due Date, Late Fees, Interest, Itemized List, Designated Contact, Language Preference)

1. Due Date. Assessments shall be made on a fiscal year basis. The Fiscal Year shall be from July 1 to June 30 of the following year. Such assessment shall be due and payable in full within ten (10) days of the date that the Association provides notice to the owner. However, the owner may choose to pay, without further notice required, such assessment in quarterly installments due July 1, October 1, January 1 and April 1 of each fiscal year.
2. Late Payment Service Fees. Assessments not received on or before the date due shall be considered delinquent. If the full amount of any past due assessment is not received by the Association within thirty (30) days of the due date, the assessment may be subject to additional collection actions. A Late Payment Service Fee calculated at 2% of the outstanding balance, or $10.00, whichever is greater, will be posted monthly to all accounts still outstanding at the end of each monthly accounting period.
3. Interest. Delinquent assessments shall bear interest at the rate of eight percent (8%) per annum from the due date until paid in full.
4. Itemized List. For each Owner who has a delinquent balance owed to the Association, the Association shall send an itemized list of all assessments, fines, fees, and charges that the Owner owes to the Association. The Association shall send the itemized list as follows:
   1. Period: On a monthly basis, until the Owner is no longer delinquent.
   2. Means of Sending: To the Owner and, if applicable, to the Owner's designated contact by (i) first-class mail; and (ii) if the Association has the relevant e-mail address, by e-mail.
   3. Language Preference: The itemized list shall be sent in English unless the Owner has indicated a preference for receiving correspondence and notices from the Association in another language, per Section 6 herein below. If the Owner indicates a language preference other than English, then the itemized list shall be sent in the language indicated.
   4. Designated Contact: If the Owner has identified another person to serve as a designated contact for the Owner, per Section 5 herein below, then the Association shall also send a copy of the itemized list in English to the designated contact for the Owner.
   5. Courtesy Notices: The itemized list may be included in one or more courtesy notices sent to the Owner prior to sending a Notice of Delinquency in accordance with Section 10 herein below.
5. Designated Contact. An Owner may identify another person to serve as a designated contact for the Owner to be contacted on the Owner's behalf for purposes of contact related to delinquency. If an Owner has identified a designated contact, the Owner and the Owner's designated contact must receive the same correspondence and notices any time communications are sent out; except that the Owner must receive the correspondence and notices in the language for which the Owner has indicated a preference, if any. To identify a designated contact, an Owner must complete the attached Designated Contact Form, a blank copy of which is attached to this Policy, and return it to the Association by certified mail, return receipt requested.
6. Language Preference for Delinquent Account. An Owner may notify the Association if the Owner prefers that correspondences and notices sent to the Owner by the Association regarding the Owner's delinquent account be in a language other than English. If the Owner does not notify the Association of a language preference, then the Association shall send all correspondences and notices to the Owner in English. If the Owner does notify the Association of a language preference, then the Association shall send all correspondences and notices related to the Owner's delinquent account to the Owner in English and in the language identified by the Owner as the Owner's preferred language. NOTICE: The Association's obligation to provide notice and correspondence in a language other than English is expressly limited to notices and correspondences about an Owner's delinquent account and/or alleged violations that are sent to the Owner. The Association is not obligated to provide notices and correspondences to the Owner related to any other subject matter in a language other than English. To identify a preference that correspondence and notices from the Association be made in a language other than English, an Owner must deliver a written language preference request to the Association by certified mail, return receipt requested.

ARTICLE II

(Prior to Referral to Attorney or Collection Agency- Contact, Notices of Delinquency)

1. Record of Contacts. The Association shall maintain a record of any contact with an Owner regarding a delinquency. These records shall include the following information:
2. Contact/ Notices of Delinquency. In the event of a delinquent assessment, the Association shall take the following steps:
3. Notice of Delinquency - Definition. "Notice of Delinquency" means the written notice that an Association sends to an Owner to notify the Owner of any unpaid assessments, fines, fees, or charges that the Owner owes the Association, as required by C.R.S. § 38-33.3-209.5(1.7)(a)(I).
4. Content of Notice of Delinquency. The Notice of Delinquency must:
1. Specify the total amount due, with an accounting of how the total was determined;
2. Specify whether the opportunity to enter into a payment plan exists pursuant to C.R.S. § 38-33.3-316.3 and instructions for contacting the entity to enter into such a payment plan;
3. Specify the name and contact information for the individual the Owner may contact to request a copy of the Owner's ledger in order to verify the amount of the debt;
4. Be written in English and in any language that the Owner has indicated a preference for correspondence and notices;
5. Specify whether the delinquency concerns unpaid assessments; unpaid fines, fees, or charges; or both unpaid assessments and unpaid fines, fees, or charges;
6. If the Notice of Delinquency concerns unpaid assessments, the Notice of Delinquency must notify the Owner that unpaid assessments may lead to foreclosure; and
7. Include:
   1. A description of the steps the Association must take before the Association may take legal action against the Owner, including a description of the Association's cure process for violations of the Association's governing documents established in accordance with C.R.S. § 38-33.3-209.5(1.7)(b); and
   2. A description of what legal action the Association may take against the Owner, including a description of the types of matters that the Association or Owner may take to small claims court, including injunctive matters for which the Association seeks an order requiring the Owner to comply with the declaration, bylaws, covenants, or other governing documents of the Association;
8. State the following or similar statement, depending on whether more than one Notice of Delinquency will be sent: "Action is required to cure the delinquency. Failure to do so within thirty (30) days may result in your account being turned over to a collection agency, a lawsuit being filed against you, the filing of a lien against your property and foreclosure of a lien against your property if the delinquency is for unpaid assessments, the sale of your property at auction to pay delinquent assessments could result in you losing some or all of their equity in the property, or other remedies available under Colorado law. The Association may, but is not required, to exercise these remedies, except for foreclosure of a lien against your property, in small claims court if the amount at issue does not exceed $7,500, exclusive of interest and costs;"
9. State the following or similar statement, "The State of Colorado HOA Information and Resource Center ("Resource Center") provides resources relating to the collection of assessments by an association - including the association's ability to foreclose an association lien for unpaid assessments and force the sale of the unit owner's home. The link for the Resource Center website is https://dre.colorado.gov/hoa-center;
10. State the following or similar statement, "The Federal Department of Housing and Urban Development ("HUD") provides online information and resources, including a search tool, to find HUD-approved housing counselors who can help homeowners facing foreclosure, which may be accessed through a link on the Colorado Department of Local Affairs' website at https://cdola.colorado.gov/ or directly on the HUD website at https://www.hud.gov/helping-americans"; and
11. The Association may send more than one Notice of Delinquency.
5. Means of Sending Notice(s) of Delinquency. In sending the Owner or a designated contact a Notice of Delinquency, the Association shall send the Notice of Delinquency by the following means:
   1. Certified mail, return receipt requested, the actual cost of such certified mailing may be charged to the Owner; and
   2. Two of the following means:
      1. Telephone call to a telephone number that the Association has on file because the Owner or the designated contact has provided the number to the Association. If the Association attempts to contact the Owner or designated contact by telephone but is unable to contact the Owner of designated contact, the Association shall, if possible, leave a voice message for the Owner or designated contact;
      2. Text message to a cellular number that the Association has on file because the Owner or designated contact has provided the cellular number to the Association; or
      3. E-mail to an e-mail address that the Association has on file because the Owner or designated contact has provided the e-mail address to the Association.
   3. By regular U.S. Mail, if the Owner or designated contact has not provided a telephone number, cell phone number, or email address as additional means by which to receive notices.
6. Owner's Mailing Address for Mail. All notices and correspondences shall be mailed to the address of the unit owned by the Owner that is within the Association's community. However, upon the written request of the Owner delivered to the Association personally, by certified mail, return receipt, postage prepaid, or any other form of delivery allowed by the Association, the Association will mail Notices of Delinquency to another address as set forth in the Owner's written request.
7. Board Vote in Executive Session. If the Owner has not paid the delinquency within the time frame set forth in the last Notice of Delinquency sent to the Owner, then the Association may take any or all of the following actions:
1. Refer a delinquent account to a collection agency or attorney only if a majority of the Board votes to refer the matter in a recorded vote at a meeting conducted pursuant to C.R.S. § 38-33.3-308(4)(e);
2. Send an additional Notice of Delinquency;
3. File a claim in Small Claims Court, pursuant to C.R.S. § 38-33.3-209.5(9); or
4. Take no current action to collect the delinquency, except that the Association's statutory lien may continue to encumber the Owner's property, subject to the six-year statute of limitations, pursuant to C.R.S. § 38-33.3-316(5).

ARTICLE III

(Payment Plans)

1. Legal Authority and Standard. The Association shall make a good-faith effort to communicate with an Owner to set up a payment plan that meets the requirements of C.R.S. § 38-33.3-316.3 and, if seeking foreclosure, §38-33.3-209.5(7)(a)(II), unless the Association is not obligated to negotiate or enter into a payment plan with an Owner.
2. Right to a Payment Plan. The Association is obligated to negotiate, coordinate, and enter into a payment plan with an Owner, unless:
   1. The Owner has previously entered into a payment plan with the Association under this Policy; or
   2. The Owner does not occupy the property and has acquired the property as a result of:
   1. A default of a security interest encumbering the property; or
   2. Foreclosure of the Association's lien.
3. Minimum Period of Payment Plan and Minimum Installment Amount. The Association must permit the Owner to pay off the deficiency in installments over a period of at least eighteen (18) months. The Owner may choose the amount of each installment payment as long as each installment payment is at least $25.00 and the total amount owed is paid by within the eighteen (18) month period and the Owner remains current on payment of regular assessments.
4. Failure to Accept Payment Plan. After the Association has provided the Owner with a written offer to enter into a payment plan, the Owner is deemed to have not accepted the payment plan if the Owner has failed to accept the payment plan within thirty (30) days after the written offer was made.
5. Failure to Comply with Payment Plan. An Owner fails to comply with the terms of the payment plan if the Owner fails:
   1. To remit payment of three (3) or more agreed-upon monthly installments within fifteen (15) days after the monthly installments were due; or
   2. To remain current with regular assessments as they come due during the term of the payment plan.
6. Effect of Failure to Comply with Payment Plan. If an Owner fails to comply with the terms of his or her payment plan, the Association may pursue legal action against an Owner without further notice to the Owner.

ARTICLE IV

(Remedies)

1. Remedies. The remedies available to the Association to collect on an Owner's delinquent account include:
1. Recording a notice of assessment lien against a delinquent Owner's property, in addition to the Association's statutory lien;
2. Bringing an action at law for entry of a money judgment in favor of the Association and against a delinquent Owner;
3. Bringing an action for appointment of receiver, pursuant to C.R.S. § 38-33.3-316(9);
4. Bringing an action for foreclosure of the Association's lien against the property of the delinquent Owner;
5. Suspending a Member's right to vote on any matter brought before any regular, annual or special meeting of the membership if the Member is in arrears in the payment of any assessments;
6. Filing necessary claims, documents, and motions in bankruptcy court in order to protect the Association's interest;
7. Filing a claim in Small Claims Court, pursuant to C.R.S. § 38-33.3-209.5(9); and
8. Turning over a delinquent account of an Owner to a collection agency or attorney.