Home-Based Businesses

No-Impact Home-Based Businesses

Notwithstanding anything contained herein to the contrary, pursuant to Title 11B of the Maryland Homeowners Association Act (the “HOA Act”), “No-impact home-based businesses” are permitted upon the Lots, subject to the following requirements:

(a) Owners shall notify the Association before operating a No-impact home-based business.

(b) No-impact home-based businesses are expressly prohibited in any Common Areas.

(c) Such additional requirements, and/or any Rules and Regulations as may be adopted or amended by the Board of Directors of the Association as provided in Section 11.10 herein, to the extent permitted by applicable law.

The foregoing provisions of this Section are intended to be a restatement of the provisions of Section 11B-111.1 of the HOA Act, and any future amendments or modifications thereto shall be deemed incorporated by reference herein as a part hereof.

For purposes hereof, a “No-impact home-based business” means a business that:

(a) Is consistent with the residential character of the dwelling;

(b) Is subordinate to the use of the dwelling for residential purposes and requires no external modifications that detract from the residential appearance of the dwelling;

(c) Uses no equipment or process that creates noise, vibration, glare, fumes, odors, or electrical or electronic interference detectable by neighbors or that causes an increase of common expenses that can be solely and directly attributable to a No-impact home-based business; and

(d) Does not involve use, storage, or disposal of any grouping or classification of materials that the United States Secretary of Transportation or the State of Maryland or any local governing body designated as a hazardous material.

See Declaration of Covenants: Section 2.4

Rules and Regulations

The following Rules and Regulations have been unanimously adopted on the 18th day of October 2011, by the Board of Directors of Mill River Homeowners Association, Inc. pursuant to the Board of Directors' authority as provided by, and pursuant to the procedural requirements of Article Il, Section 2.4 and Article Xl, Section 11.10 of Mill River Homeowners Association, Inc.' Declaration of Covenants, Conditions and Restrictions, as amended from time to time.

Any capitalized terms used in these Rules and Regulations shall have the meanings ascribed to them in the Declaration unless otherwise provided herein.

NO-IMPACT HOME-BASED BUSINESSES

The following Rules and Regulations shall apply to "No-impact home-based businesses” as described in Article Il, Section 2.4 of the Declaration and as such term is defined in Section 11B-Ill.1 of the HOA Act. It is not the intent of the Board of Directors, nor shall any Rule or Regulation provided herein, be construed in any manner as an express prohibition of such “No- impact home-based businesses”.

Parking

Parking for customers, clients, employees, or other persons related to any No-impact home-based business on a Lot shall be limited to the driveway of any such Lot.

Traffic

The number of customers, clients, deliveries or other persons visiting the Lot of a No-impact home-based business, for such business, shall be no more than four (4) per day.

Non-Resident Employees

There shall be a limitation of one (1) non-resident employee per day for a No-impact home-based business on the Lot of such business.

Commercial Signs/External Modifications

There shall be no commercial signs or external modifications related to any No-impact home-based business Lot. Lot Owners and/or Lot Owners' Family - At least one (1) Lot Owner and/or member of such Lot Owners' family must be engaged in the No-impact home-based business on such Lot.

Hours of Operation

The hours of operation for any No-impact home-based business on any Lot shall be limited to 8 a.m. to 8 p.m. on any day.

Insurance/License

As part of the notification process by the Owner to the Association before operating a No-impact home-based business, Owners may also be required to provide to the Association, such insurance and/or license information as the Board of Directors deems appropriate.

See MRHOA RESOLUTION 2011-01

Family Day Care

Notwithstanding anything contained herein to the contrary, no Owner may use his or her residence as a “family day care home” (“Home”) (as defined in Section 11B-111.1 of the Code); provided, however, to the extent this prohibition is not enforceable under applicable Maryland law, then an Owner may operate a Home, subject to the following requirements:

(a) The Owner or day care provider (as defined in Section 11B-111.1 of the Code) operating the Home shall be registered with and have a license issued by the Department of Human Resources, in accordance with the registration and licensing provisions set forth in Title 5, Subtitle 5 of the Family Law Article. The Owner or day care provider shall furnish a copy of the license to the Architectural Review Committee prior to establishing and operating the Home and upon each renewal thereof.

(b) The Owner or day care provider shall obtain the liability insurance provided by applicable Maryland law. The Owner or day care provider may not operate the Home without the liability insurance described herein, and shall present proof of insurance to the Architectural Review Committee before establishing and operating the Home and upon any renewal of the policy.

(c) The Owner or day care provider shall pay, on a pro-rata basis with other Homes then in operation in the Community, any increase in the insurance costs of the Association attributable solely and directly to the operation of the Home, upon presentation of a statement from the Architectural Review Committee setting forth the increased costs and requesting payment of same. The increased insurance costs shall be considered an assessment against the Lot, and may be collected under the Maryland Contract Lien Act.

(d) TThe Owner or day care provider shall not use any of the Common Areas for any purpose directly or indirectly relating to the operation of the Home.

See Declaration of Covenants: Section 2.5