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Board of Directors: The Board of Directors has five (5) position(s) available. This ballot is valid for this election of the Board of Directors, establishing quorum, and is irrevocable once submitted. In order to be considered eligible to vote, Owners must be current in all assessments by December 31, 2025. CC&R Article 4, Section 4.15 Amendment This notice is to inform you of an item on the agenda for the Villas at Palm Valley Condominium Association Annual Meeting which is being held on January 20, 2026. The Annual Membership Meeting is scheduled to begin at 4:00 PM. One item on the agenda is to vote on the adoption of a proposed Amendment to the Condominium Declaration for Villas at Palm Valley Condominiums. The Amendment proposes to modify the Association?s use restrictions for leasing and renting within the community. The Board of Directors believes that imposing such restriction is in best interest of the Association. The complete text of the proposed amendments is attached to the absentee ballot enclosed with this notice. Pursuant to the Declaration, the Declaration may be amended by a vote of the Unit Owners to which at least sixty-seven percent (67%) of the votes in the Association are allocated. Additionally, the presence in person or by absentee ballot, of Members entitled to cast at least one-half of the total authorized votes in the Association shall constitute a quorum at all meetings of the Members. The Association encourages you to vote in favor of the proposed Amendment in order to restrict short-term rentals within our community. Proposed Amendment. The Board proposes to amend Article 4, Section 4.15 of the Declaration as follows: Rental of Units. All leases shall be in writing and shall provide that the terms of the lease shall be subject in all respects to the provisions of this Declaration, the Articles, the Bylaws and the Association Rules. All tenants shall be subject to the terms and conditions of this Declaration, the Articles, the Bylaws, the Association Rules. Each Owner shall cause tenants or other Occupants of the Owner?s Unit to comply with this Declaration, the Articles, the Bylaws, the Association and, to the extent permitted by applicable law, shall be responsible and liable for all violations and losses caused by any such tenants or other Occupants, notwithstanding the fact that the tenants or other Occupants are also fully liable for any violation of each and all of those documents. No Owner may lease less than his entire Unit including all structures within its boundaries. No Unit shall be leased or rented for an initial term of less than thirty days. No Unit shall be advertised for lease or for rent in violation of the rental time restrictions set forth in this Declaration. All leases must be in writing and must provide that the terms of the lease are subject in all respects to the provisions of this Declaration, and the Rules and Regulations. The lease must set forth that any violation of this Declaration or the Association Rules by the lessee or the other occupants shall be a default under the lease. There shall be no subleasing of Units or assignments of leases. At least ten (10) days before commencement of the lease term, the Owner shall provide the Association with all information requested by the Association, unless prohibited under Arizona law. At least ten (10) days before commencement of the lease term, the Owner, even in the absence of a request or tenant registration form that may be utilized by the Association, shall provide the Association with the following information: (i) the commencement date and expiration date of the lease term: (ii) the names and contact information of each of the lessees and each other adult person who will reside at the Unit during the lease term: (iii) the address and telephone number at which the Owner can be contacted by the Association during the lease term; and (iv) a description and license plate numbers of the lessees' vehicles. Any Owner who leases his/her Unit must provide the lessee with copies of this Declaration and the Rules and Regulations. The Owner shall be liable for any violation of this Declaration and the Association Rules and Regulations by the lessees or other persons residing at the Unit and their guests or invitees and, in the event of any such violation, the Owner, upon demand of the Association, shall immediately take all necessary actions to correct any such violations or, if demanded by the Association, immediately take all necessary action (including, but not limited to, legal action) to remove from the Unit the lessees and all other persons residing at the Unit pursuant to the lease. The Association reserves the right to charge a fee of not more than $25.00, or such higher amount as may be allowed by law, for each new tenancy (but not continuations or renewals of existing tenancies). Subject to the provisions of this Declaration and the laws of the State of Arizona, the Association shall be entitled to adopt, amend, and repeal rules governing the leasing of Units.

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