Quick Reference Guide
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Dues, Assessments and Other Charges
4.2.1.5. No owner or purchaser's membership  may be canceled, forfeited of, disposed of, nor may any member withdraw, cancel, or transfer his membership except upon transfer of title to the real property to which his membership is appurtenant, as elsewhere herein provided.  The Board of Directors may levy fines, assess charges, suspend memberships, deprive members of privileges and services provided by the Community Club, or exercise any other reasonable restriction, penalty, or admonishment for the violation of any of these Bylaws or the duly adopted and published Rules and Regulations.  Memberships may be suspended and the member deprived of the privileges and services provided by the Community Club, only by the Board of Directors, for non-payment of dues or assessed charges, or any other violation of these Bylaws or the duly adopted and published Rules and Regulations, or for any activity which is in violation of the laws of the Federal, State or Local Governments and which the Board of Directors believes to be detrimental to the Community Club. The annual dues may not be suspended for any reason.  The Board of Directors shall levy late charges and/or charge interest at the rate of 12% per annum compounded monthly beginning 30 days after each assessment or charge is levied on all accounts due the Community Club.
4.2.3.5. Each member, owner or purchaser shall keep the Treasurer informed of his correct mailing address.  Notices for meetings, dues, and other Club business shall be deemed properly sent when mailed to the last address of record.
4.5.1.1. The members of the Community Club shall be liable for the payment of such annual dues as may from time to time be fixed and levied by the Board of Directors pursuant to the Articles of Incorporation and these Bylaws and subject to the provisions of said Articles and Bylaws.  The initial membership fees, and all subsequent maximum annual dues levied upon a member shall not exceed in any one year the sum of $300 per lot as originally platted, annually adjusted (up or down) in accordance with the Consumer Price index (CPI) as published by the United States Department of Commerce for all Urban Consumers in the Seattle-Tacoma-Bremerton Area as registered for the September-October period  each year (base year established as 1992); and shall not be increased unless authorized by the majority vote of the membership present at any meeting of the Community Club, but such annual dues may be decreased or increased within the aforesaid limit by the Board of Directors.  If a special meeting is called for the purpose of raising the annual dues, such notice must set forth the fact that the annual dues will be the subject of a vote.
4.2.1.2. Dues against members or the land owned or being purchased by them shall be levied by the Board of Directors on an equitable basis without distinction or preference of any kind, except that in cases where a member uses two (2) or more contiguous lots as a single building site, dues (only) may be levied at the Board's discretion on only one lot. This exception may be granted only if the use is within the Board's published guidelines (Section 6) and after the dwelling is completed.  All dues, when collected by the Community Club, shall remain the property of the members until such time as they are expended pursuant to the Articles of Incorporation and Bylaws of the Community Club.  All dues, assessments, interest, fines, penalties and other payments due the Community Club shall be payable in U.S. funds or their equivalent.
4.5.1.3. Dues shall be levied for a one-year period commencing 1 January ending on 31 December.  All dues shall be due and payable on 1 January and become delinquent on 1 February thereafter drawing a late charge and/or interest at the rate of 12% per annum compounded monthly and each member is herewith so notified regardless of the mailing of a dues notice or notices of interest charges.
4.5.1.4. From time to time, as and when any such dues, assessments, charges, interest, fines, or penalties are levied, each member with respect to the land or interests therein to which his membership is appurtenant shall pay the amount of such dues, assessments, charges, interest, fines or penalties against the same to the Community Club, at its office within thirty days after the mailing of the notice of such dues, assessments, charges, interest, fines or penalties to the members.  The amount of such dues, assessments, charges, interest, fines or penalties, together with all expenses, attorney fees and costs reasonably incurred in enforcing the same, shall be paid by the member and shall be a lien upon said land and the membership appurtenant thereto, superior to any and all other liens created or permitted by the owner of such land and enforceable by foreclosure proceedings in the manner provided by law for foreclosure of mortgages upon land; provided, that no proceedings for the foreclosure of any said liens, as provided in Section 4.5., shall be commenced except upon the expiration of four months from and after the date of mailing of said notice of dues, assessments, charges, interest, fines or penalties.
4.5.2.1. At any meeting of the membership a majority of the members present may vote special assessments to finance any improvement project, emergency repair, general upkeep, or other desired expenditure.  The purpose of an assessment must be clearly stated, be for one single purpose, carry an exact cost limitation, list the proportionate maximum cost to each lot, state the duration the assessment is to run, give the date the assessment becomes due and payable, and set forth any limitations or other instructions to govern the expenditure of the funds so authorized to be collected and disbursed.  All assessments voted by the membership under this section are to be levied in addition to the annual dues as set forth in 4.5.1.1.  If a special meeting is called for the purpose of voting a special assessment, such notice must set forth the fact that an assessment will be the subject of a vote.  In addition to annual dues and/or assessments levied against all lots, the Board of Directors shall have the power to levy charges against any lot or lots for services actually supplied or rendered, including water.
5.4.3.1. Water may be shut off on any lot upon which the club dues and assessments are overdue.  The cost of disconnection and reconnection shall be billed to the lot owner's account which must be paid in full before water will be reconnected.  Dues will be considered overdue on 1 February for the purposes of this paragraph.
DUES AND ASSESSMENTS (from LISECC Policy #1 – Part 7)

Preamble:
In 1971 your Board of Directors first began to collect past due Dues and Assessments as required by the Bylaws. By 1975 a policy had been established for collection of such dues. Some figures have been modified from time to time to keep them current with the costs of administration. This is a recitation of that policy reflecting the current figures and dates that trigger action and the action which each will set in motion.
References:
Part 4 of our Bylaws, which only the membership can change, is cited as the Board's authority.  Please read Bylaws 4.2.1.5., 4.2.3.5., 4.4.2.9., and all of Section 4.5.

Charges:
Following are the various charges a member may accrue. All are due and payable within thirty (30) days and become delinquent thereafter.

(1) Annual Dues cover the period of January 1 to December 31 of each year and are billed by January 1.
(2) Special Assessments when voted in by the membership will be treated either as set out herein for dues or according to the instructions contained in the Special Assessment.
Late Charges shall be assessed as follows:
April 1 $5 per month for the first three months past due (invoiced quarterly).
May 1 $50 administrative fee for all delinquent accounts.
August 1 $50 additional administrative fee for all delinquent accounts.
 AND
 $75 lien fee will be charged additionally for those accounts with a balance still owing and for which no other lien has been filed. Liens will be cleared automatically upon receipt of full payment of charges against a lot.
November 1 $50 additional administrative fee for all delinquent accounts.
Additional charges may accrue if an account is placed in the hands of our attorney. See the section on Collection for specifics of transfer of an account to our attorney. Upon receipt of the account, the attorney may assess interest of 12% per annum compounded monthly on the total of each monthly balance. Interest shall be calculated from 30 days past due and included in the balance forwarded to the new dues year.
(4) Miscellaneous charges may occur from time to time and include such items as contracted services between the member and the club such as the cost of a water service installation.  Other costs can be the result of services rendered to abate a problem on the member's private property (4.4.2.9.), for services actually supplied or rendered (4.5.2.1.), and from fines or penalties. These charges are due and payable within 30 days following the date of the invoice; become delinquent thereafter; and are subject to late charges, lien charges, and collection costs as specified herein.  A lien shall be filed to cover the charges set out on the invoice 60 days after the date of the invoice, if still unpaid.
(5) The balance forward from one dues year to the next can include: previous balance forward; dues; special assessments; miscellaneous charges; late charges; lien charges; and other charges which the member may incur during the dues year.

Notification:
All notifications will be sent to the owner of record at the address of record as required by the Bylaws via regular mail (4.5.1.3.) or by certified mail when deemed necessary.
(1) Dues and Assessments statements will be mailed four times each year on January 1, April 1, July 1, and October 1.
(2) Each member will be notified by a letter informing the member that the account has been transferred to our attorney for collection.

Collection:
Following the filing of a lien on August 1, all lots having an overdue balance for a period of two years, in either lot dues or service fees, will be forwarded to our attorney for collection. Collection costs are added by the attorney and are collected by him (4.5.1.4.) Collection actions by the attorney will include demand for payment. Time payments can be negotiated between the member and the attorney. Failure to obtain payment or payment arrangements within the attorney’s time specifications will result in foreclosure proceedings being automatically started by the attorney and carried forward to an early conclusion. Foreclosure can result in the lot being sold by the Sheriff to the highest bidder at an open auction. 
Monies due to the Club may be paid in installments as a member may choose but all late charges and liens will be charged as indicated above. Members can keep their accounts out of the hands of our attorney if arrangements for payment have been approved by the Board prior to the date the Club actually turns the account over to the attorney. Payment schedules agreed to between the Board and a member must be met on time. Failure to make the payments when promised will trigger nullification of the payment agreement and the account will then be sent to the attorney. Notification will be per paragraph (2) under Notification above.

Special Action:
A lot owner who fails to pay his County Property Taxes for a period of three years will trigger a foreclosure by the County Treasurer in the fall of the third year.  When this occurs, a lien will be immediately placed on the property for the current dues year if unpaid.  Lummi Island Scenic Estates Community Club may elect to pay such property taxes and acquire a tax lien against the lot to prevent foreclosure by the County.


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Lummi Island Scenic Estates • 1211 Island Dr. • Lummi Island, WA 98262
Phone/Fax: (360) 758-2699 • e-mail: help@lisecc.com
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