HomeMy WebLinkAboutCondominium Declaration for Solera Condominium (Market Rate) (2)AFTER RECORDING RETURN TO:
Solera Manager, LLC
10900 NE 8th St, Suite 1200
Bellevue, WA 98004
CONDOMINIUM DECLARATION
FOR
SOLERA CONDOMINIUM
Grantor: Solera Manager, LLC, a Washington limited liability company
Grantee: Solera Condominium
Abbrev. Legal Description: [To be determined]
Assessor’s Parcel No.: [To be determined]
NOTICE TO AUDITOR’S OFFICE
THE MAP FOR THIS COMMUNITY WAS FILED WITH THE AUDITOR OF KING
COUNTY, WASHINGTON SIMULTANEOUSLY WITH THE RECORDING OF THIS
DECLARATION UNDER AUDITOR’S FILE NO.
IN VOLUME __________ OF CONDOMINIUMS, PAGES _______ THROUGH _______.
THIS COMMUNITY IS A CONDOMINIUM AS DEFINED IN WUCIOA.
DEPARTMENT OF ASSESSMENTS
Examined and approved this ____ day of
____________, 2024.
ASSESSOR
DEPUTY ASSESSOR
CONDOMINIUM DECLARATION - SOLERA PAGE 1
TABLE OF CONTENTS
SOLERA CONDOMINIUM
ARTICLE 1 CONSTRUCTION AND VALIDITY OF DECLARATION 2
ARTICLE 2 DEFINITIONS 2
ARTICLE 3 NAME OF CONDOMINIUM 7
ARTICLE 4 DESCRIPTION OF LAND AND BUILDING 7
ARTICLE 5 DESCRIPTION OF UNITS 8
ARTICLE 6 ALLOCATED INTERESTS 9
ARTICLE 7 COMMON ELEMENTS 9
ARTICLE 8 LIMITED COMMON, ELEMENTS 10
ARTICLE 9 EASEMENTS 11
ARTICLE 10 USE RESTRICTIONS 11
ARTICLE 11 CONSTRUCTION AND MAINTENANCE OF UNITS AND COMMON ELEMENTS 14
ARTICLE 12 ALTERATIONS OF BUILDING 15
ARTICLE 13 OWNERS ASSOCIATION 15
ARTICLE 14 TRANSFER OF CONTROL 17
ARTICLE 15 THE BOARD OF DIRECTORS 17
ARTICLE 16 BUDGET AND ASSESSMENTS 20
ARTICLE 17 LIEN AND COLLECTION OF ASSESSMENTS 23
ARTICLE 18 ENFORCEMENT OF GOVERNING DOCUMENTS 25
ARTICLE 19 TORT AND CONTRACT LIABILITY. 26
ARTICLE 20 INSURANCE 27
ARTICLE 21 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY 30
ARTICLE 22 CONDEMNATION 33
ARTICLE 23 PROCEDURES FOR SUBDIVIDING, COMBINING OR ALTERING UNITS
AND RELOCATING BOUNDARIES 34
ARTICLE 24 AMENDMENT OF DECLARATION, MAP, ARTICLES OR BYLAWS 36
ARTICLE 25 TERMINATION OF CONDOMINIUM 37
ARTICLE 26 NOTICES 37
ARTICLE 27 MORTGAGEE PROTECTION 39
ARTICLE 28 ASSIGNMENT BY DECLARANT 40
SCHEDULE A DESCRIPTION OF REAL ESTATE SUBJECT TO DECLARATION
SCHEDULE B UNIT DATA AND ALLOCATED INTERESTS
SCHEDULE C DESCRIPTION OF LIMITED COMMON ELEMENTS
SCHEDULE D USES RESTRICTIONS ON RETAIL UNIT
CONDOMINIUM DECLARATION - SOLERA PAGE 2
CONDOMINIUM DECLARATION
FOR
SOLERA CONDOMINIUM
ARTICLE 1 CONSTRUCTION AND VALIDITY OF DECLARATION
Section 1.1 Purpose. Declarant has recorded this Declaration for the purpose of
creating a condominium of the real property described in Schedule A under the Act. This
Declaration shall be effective as of the first date that it and the Map are recorded.
Section 1.2 Construction. The Declaration and the Act provide the framework by
which the Condominium is created and operated. In the event a provision of the Declaration is
inconsistent with a provision of the Act and the Act does not permit such inconsistency with such
provision, the Act shall prevail. In the event of a conflict between a provision of this Declaration
and the Bylaws, the Declaration shall prevail except to the extent the Declaration is inconsistent
with the Act and the Act does not permit the inconsistency. The creation of the Condominium
shall not be impaired and title to a Unit and its Common Ownership Interest shall not be rendered
unmarketable or otherwise affected by reason of an insignificant failure of this Declaration or the
Map or any amendment thereto to comply with the Act.
Section 1.3 Covenant Running With Land. This Declaration shall operate as
covenants running with the land, or equitable servitudes, and shall bind Declarant, its successors
and assigns, and all subsequent Owners of the Property, or any portion(s) thereof, together with
their grantees, successors, heirs, executors, administrators, devisees or assigns.
Section 1.4 Severability. The provisions of this Declaration shall be independent and
severable, and the unenforceability of any one provision shall not affect the enforceability of any
other provision, if the remaining provision or provisions comply with the Act.
Section 1.5 Percentage of Owners or Mortgagees. For purposes of determining the
percentage of Owners or Mortgagees, or percentage of voting power for approving a proposed
decision or course of action in cases where an Owner owns, or a Mortgagee holds Mortgages on
more than one Unit, such Owner shall be deemed a separate Owner for each such Unit so owned
and such Mortgagee shall be deemed a separate Mortgagee for each such Mortgage so held.
Section 1.6 Reference to Map. The Map identified on the cover page was filed with
the Recorder of King County, Washington, simultaneously with the recording of this Declaration.
Section 1.7 Inflationary Increase in Dollar Limits. Any dollar amounts specified in
this Declaration in connection with any proposed action or decision of the Board or Association
shall be proportionately increased on July 1 of each year by the percentage change in the consumer
price index specified in RCW 64.90.065 of the Act, as if RCW 64.90.065 applied to such amounts.
ARTICLE 2 DEFINITIONS
Section 2.1 Words Defined. For the purposes of this Declaration and any amendments
hereto, the following definitions shall apply. The singular form of words includes the plural and
CONDOMINIUM DECLARATION - SOLERA PAGE 3
the plural includes the singular. Masculine, feminine and neutral pronouns are used
interchangeably.
“Allocated Interests” means, collectively, the Common Ownership Interest, the Common
Expense Liability and the Voting Interest allocated to each of the Units in the Condominium, as
set forth in Article 6 and Schedule B.
“Apartment” or “Apartments” means an apartment or dwelling, or, collectively, some
or all of the apartments or dwellings, located within the Condominium.
“Articles” means Articles of Incorporation for the Association.
“Assessments” means, collectively, all sums chargeable by the Association against a Unit,
including, without limitation: (a) general and special assessments for Common Expenses;
(b) charges and fines imposed by the Association; (c) interest and late charges on any delinquent
account; and (d) costs of collection, including reasonable attorneys’ fees, incurred by the
Association in connection with the collection of a delinquent Owner’s account.
“Association” means the owners’ association identified in Article 13.
“Authorized Users” means the agents, servants, tenants, invitees and licensees of an
Owner, or of the Owner’s tenants, who are accorded rights, directly or indirectly by that Owner to
use or access all or a portion of that Owner’s Unit and its appurtenant interest in the Common
Elements.
“Board” means the board of directors of the Association, as described in Article 15, the
Articles and the Bylaws.
“Books and Records of the Association” means, collectively, all documents in the
possession or control of the Association, including, without limitation, the following:
(a) Declaration, Map, Articles, Bylaws and other rules and regulations
governing the Condominium or any part thereof, and all amendments
thereto;
(b) Minute books, including all minutes, of all Owner, Board, Officer,
committee or other meetings relating to the Condominium or any part
thereof, including all reports, resolutions, documents, communications or
written instruments attached thereto or referenced therein;
(c) Financial records, including without limitation, current budget, receipts and
expenditures affecting the operation and administration of the Association,
financial statements, tax returns, and other appropriate accounting records,
within the last seven years;
CONDOMINIUM DECLARATION - SOLERA PAGE 4
(d) All reports, documents, communications or written instruments pertaining
to the construction, remodeling, maintenance, repair, replacement or
condition of the Condominium or any part thereof;
(e) All insurance policies under which the Association is a named insured;
(f) Copies of any certificates of occupancy that may have been issued for the
Condominium or any part thereof;
(g) Any other permits or notices by governmental bodies applicable to the
Condominium or any part thereof in force or issued;
(h) All written warranties that are still in effect for the Condominium or any
part thereof, or any other areas or facilities that the Association has the
responsibility for maintaining, from the Declarant, contractor,
subcontractors, suppliers, and manufacturers, together with all owners’
manuals or instructions furnished with respect to installed equipment or
building systems;
(i) A roster of Owners, officers and Directors and Eligible Mortgagees and
their addresses and telephone numbers, if known;
(j) Any leases of the Common Elements or areas and other leases to which the
Association is a party; any employment, service, consultation, professional
or other contracts in which the Association, Board or officer is one of the
contracting parties, or in which the Association or the Owners have an
obligation or a responsibility, directly or indirectly, to pay some or all of the
fee or charge, or which in any way relate to the Condominium or any part
thereof; and
(k) All reports, documents, communications or written instruments pertaining
to any litigation or other legal or mediation/arbitration proceeding (whether
pending, threatened, or under consideration) to which the Association (or
Board or officer) is or may be a party, or which may relate to or affect the
Common Elements or any part thereof.
“Building” means the primary structures in the Condominium built in accordance with the
most recent plans and specifications for the construction or remodeling of the Condominium.
“Bylaws” means the bylaws of the Association as they may from time to time be amended.
“Common Elements” means all portions of the Condominium other than Units, as
described more fully in Section 7.1. The term includes the Limited Common Elements.
“Common Expenses” means expenditures made by or financial liabilities of the
Association, including expenses related to the maintenance, repair and replacement of the
Common Elements, allocations to reserves, and expenses related to any utility services provided
CONDOMINIUM DECLARATION - SOLERA PAGE 5
by or billed through the Association to the Unit Owners. Some Common Expenses are allocated
to the Units according to the Common Expense Liability of the Unit. Other Common Expenses
are Specially Allocated Expenses.
“Common Expense Liability” means the liability for Common Expenses (other than
Specially Allocated Expenses) allocated to each Unit, as described in Article 6.
“Common Ownership Interest” means the undivided ownership interest in the Common
Elements allocated to each Unit, as described in Article 6.
“Condominium” means the condominium created under this Declaration and the Map.
“Act” means the Washington Uniform Common Interest Ownership Act, codified as RCW
64.90.
“Conveyance” means any transfer of the ownership of a Unit, including a transfer by deed
or by real estate contract. Conveyance does not mean a transfer solely as security for a debt or
other obligation or a Foreclosure.
“Declarant” means Solera Manager, LLC, and its successors and assigns to the extent that
they are within the meaning of “Declarant” in the Act.
“Declaration” means this Condominium Declaration as it may from time to time be
amended in accordance with the terms hereof.
“Eligible Mortgagee” means any Mortgagee who has filed with the secretary of the
Association a written request that it be given copies of notices of any action by the Association
that requires the consent of Mortgagees. The request must state the name and address of the
Eligible Mortgagee and the Identifying Number or address of the Unit on which it holds (or insures
or guarantees) a Mortgage. As of the date of this Declaration and until the Association is notified
to the contrary, Citibank, N.A. is an Eligible Mortgagee on each Unit, with an address of Citibank,
N.A., Transaction and Asset Management Group, 388 Greenwich Street, Trading 6th Floor, New
York, New York 10013, for so long as Citibank, N.A. is the beneficiary of a mortgage or deed of
trust encumbering a Unit in the Condominium.
“Floor Area” means the total finished floor area of the Levels of the Building enclosed
within each Unit (excluding the surface of the roof). Floor Area is approximate and may not match
the interior area of a Unit when measured by the Owner, Association or others. Floor Areas set
forth in Schedule B are final and conclusive.
“Foreclosure” means a forfeiture or judicial or nonjudicial foreclosure of a Mortgage or a
deed in lieu thereof.
“Governing Documents” means this Declaration, the Articles, the Bylaws, and any rules
or regulations adopted by the Board, as they may be amended from time to time.
CONDOMINIUM DECLARATION - SOLERA PAGE 6
“Identifying Number” means the number of each Unit shown on the Map and in
Schedule B.
“Investor” means BF Solera Affordable, LLC, a Delaware limited liability company, and
its permitted successors and assigns, only during such time that such entity or its affiliates,
successors or assigns is member in the Unit Owner that owns Residential Unit, and when BF
Solera, LLC or its affiliates, successors or assigns is not a member in the Unit Owner that owns
Residential Unit, references to Investor shall be of no force or effect.
“Level” means any of the floors or levels of the Building as depicted or described on the
most recent plans and specifications used in the construction or remodeling of the Condominium.
“Limited Common Element” means a portion of the Common Elements allocated in this
Declaration, or by operation of law, for the exclusive use of one or more but fewer than all of the
Units, as described more fully in Section 8.1.
“Managing Agent” means the Person designated by the Board under Section 15.3.
“Map” means the map for the Condominium. Section 1.6 refers to the recording number
of the Map, which was recorded simultaneously with this Declaration. The Map includes any
recorded amendments, corrections, and addenda thereto.
“Mortgage” means a mortgage, deed of trust or real estate contract.
“Mortgagee” means any holder, insurer or guarantor of a Mortgage on a Unit.
“Owner” or “Unit Owner” means the Declarant or other Person who owns fee title to a
Unit, but does not include any Person who (i) has an interest in a Unit solely as security for an
obligation, monetary or regulatory, (ii) is the beneficiary of rights under easements and/or
covenants granted by an Owner, or (iii) is an Authorized User.
“Person” means a natural person, corporation, partnership, limited partnership, trust,
governmental subdivision or agency, or other legal entity.
“Property” means all real property comprised by the Condominium pursuant to
Section 4.1 of this Declaration.
“P-T Slab” means the concrete post-tension slab which separates Levels 2 and 3 in the
Building.
“Residential Tenant” means any person holding a leasehold interest in an Apartment
pursuant to a residential lease or having a right to occupy an Apartment under such a lease or rental
agreement.
“Rules and Regulations” means those certain written rules or regulations, if any,
governing use of the Condominium that may be adopted by the Board.
CONDOMINIUM DECLARATION - SOLERA PAGE 7
“Specially Allocated Expenses” means those Common Expenses described in
Section 16.6 of this Declaration.
“Transition Date” means the date that the first Unit in the Condominium is subject to a
Conveyance.
“Unit” means a physical portion of the Condominium designated for separate ownership,
the boundaries of which, both as to vertical and horizontal planes, are described in Section 5.2 and
shown on the Map; excepting that a Unit excludes all Common Elements (including Limited
Common Elements), if any, that are located within the boundaries of the Unit. The Units are
individually classified as follows:
“Residential Unit” means the Unit consisting of 315 residential apartments on
Levels 1 through 7 of the Building, and related ancillary facilities (including gym and
sports facilities, leasing and administrative offices, and tenant common spaces), all
designated for tenants meeting certain affordable housing income requirements.
“Garage Unit” means the Unit occupying approximately 230,568 square feet on
Levels P1, 1, and 2 of the Building, consisting of approximately 490 structured parking
spaces and related ancillary facilities. The Garage Unit may not be used for residential
purposes.
“Retail Unit” means the Unit occupying approximately 13,319 square feet on
Levels 1 and 2 of the Building consisting of commercial/retail spaces, and approximately
9,618 square feet of childcare services on Level 1 of the Building, and related ancillary
facilities. The Retail Unit may not be used for residential purposes or any of purposes
restricted in Schedule D.
“Voting Interest” means the number of votes in the Association allocated to each Unit, as
described in Article 6.
Section 2.2 Statutory Definitions. Some of the terms defined above are also defined
in the Act. The definitions in the Declaration are not intended to cause any violation of the Act.
To the extent necessary so that no provision hereof will violate the Act or cause any failure to
satisfy the requirements of the Act, if there is any inconsistency or conflict, the definition in the
Act will prevail.
ARTICLE 3 NAME OF CONDOMINIUM
The name of the Condominium created by this Declaration and the Map is Solera
Condominium.
ARTICLE 4 DESCRIPTION OF LAND AND BUILDING
Section 4.1 Description of Property. The real property included in the Condominium
is the land described in Schedule A together with all improvements and fixtures now or hereafter
thereon, and all appurtenances thereto.
CONDOMINIUM DECLARATION - SOLERA PAGE 8
Section 4.2 Description of Building. There is one building in the Condominium. The
location of the Building is shown on the Map.
ARTICLE 5 DESCRIPTION OF UNITS
Section 5.1 Number and Identification of Units. The Condominium contains three
(3) Units. The location and configuration of each Unit created by this Declaration is shown on the
Map. Schedule B of this Declaration contains the following information as to each Unit created
by this Declaration:
5.1.1 Unit Designation. The Identifying Number of each Unit
created by this Declaration as shown on the Map.
5.1.2 Unit Data. With respect to each Unit created by this
Declaration, the Floor Area and the Levels that are located within each Unit.
5.1.3 Allocated Interests. With respect to each Unit, its
allocation of Common Ownership Interest, Common Expense Liability and Voting Interest, as
described in Article 6.
Section 5.2 Unit Boundaries. The boundaries of each Unit shall be the walls, floors
and ceilings of the Units, as shown on the Map. All lath, furring, wallboard, plasterboard, plaster,
paneling, tiles, wallpaper, paint, finished flooring, and any other material constituting any part of
the finished interior surfaces thereof are part of the Unit. All other portions of the walls, floors or
ceilings, are part of the Common Elements. The windows and exterior doors at the boundaries of
a Unit are not part of the Unit, but are Limited Common Elements allocated to that Unit. Subject
to the provisions of Article 7, all spaces, interior partitions and other fixtures and improvements
within the boundaries of the Units are a part of the Units.
The lower horizontal boundary of Residential Unit is the floor of Level 1 of the Building.
The upper horizontal boundary of Residential Unit is a plane in space at the highest elevation of
any part of the Building, including the roof of the Building and all Building features and equipment
located thereon, with the exception of those areas designated as Limited Common Elements in
Article 8. And the vertical boundaries (side boundaries) of Residential Unit coincide with the
interior face of the perimeter walls or inside face of glazing of perimeter windows and doors of
the Building enclosing the Unit. Residential Unit includes all exterior weatherproofing and
cladding, windows, doors, exterior walls and other structural elements located therein on Levels 3
through 7, including the roof.
The lower horizontal boundary of Garage Unit is the floor of Level P1 in the Building. The
upper horizontal boundary is the lower surface of P-T Slab in the Building. And the vertical
boundaries (side boundaries) coincide with the interior face of the perimeter walls or inside face
of glazing of perimeter windows and doors of the Building enclosing the Unit.
The lower horizontal boundary of Retail Unit is the upper surface of the subflooring on
Level 1. The upper horizontal boundary is the lower surface of the P-T Slab in the Building. And
CONDOMINIUM DECLARATION - SOLERA PAGE 9
the vertical boundaries (side boundaries) coincide with the interior face of the perimeter walls or
inside face of glazing of perimeter windows and doors of the Building enclosing the Unit.
ARTICLE 6 ALLOCATED INTERESTS
Section 6.1 Allocated Interests. This Declaration allocates certain interests in the
Condominium to each Unit. Those interests are: a Common Ownership Interest, a Common
Expense Liability and a Voting Interest. The method used for allocating these interests is set forth
in this Article 6. The allocation of these interests to each Unit can be changed only as provided in
this Declaration. The Allocated Interests and the title to a Unit may not be separated or separately
conveyed, whether voluntarily or involuntarily, except in conformity with this Declaration. The
Allocated Interests shall be deemed to be conveyed with the Unit to which they are allocated even
though the description in the instrument of conveyance may refer only to the title to the Unit.
Residential Unit shall have three (3) Voting Interests and Garage Unit and Retail Unit shall
each have one (1) Voting Interest. If any Unit is split into multiple Units, then the Voting Interest
of each resulting Unit shall be an equal fraction of the original Unit’s total Voting Interest, such
that the total votes shall still equal five (5).
Common Ownership Interest and Common Expense Liability is the undivided interest in
the Common Elements and Limited Common Elements allocated to each of the Units as set forth
in Schedule B. Each Unit will have equal, undivided Common Ownership Interest and Common
Expense Liability for Common Elements (not including Limited Common Elements), as set forth
in Schedule B. Specially Allocated Expenses are allocated according to Section 16.6.
ARTICLE 7 COMMON ELEMENTS
Section 7.1 Description. The Common Elements consist of all portions of the
Condominium other than the Units. The Common Elements include all portions of the walls,
floors, or ceilings that are not within the Unit boundaries established by Section 5.2 or otherwise
specified as part of a Unit herein. The Common Elements also include any chute, flue, duct, wire,
conduit, bearing wall, bearing column, or any other fixture that lies partially within and partially
outside the designated boundaries of a Unit if it serves more than one Unit or any portion of a
Common Element.
Section 7.2 Alteration of Common Elements. A Unit Owner may not alter any
Common Element (other than Limited Common Elements allocated solely to such Owner’s Unit,
as described in Article 8) or construct or remove anything in or from any Common Element (other
than Limited Common Elements allocated solely to such Owner’s Unit) except upon the prior
written consent of the Board. The Limited Common Elements allocated to a Unit may be
constructed, altered or modified by the Owner of that Unit. The right to use the Common Elements,
including the Limited Common Elements, shall be governed by the provisions of the Act and the
Governing Documents.
Section 7.3 Conveyance or Encumbrance of Common Elements. No portion of the
Common Elements may be conveyed or subjected to a security interest by the Association except
upon the unanimous consent of all Unit Owners, Eligible Mortgagees and the Investor. Except
CONDOMINIUM DECLARATION - SOLERA PAGE 10
where permitted by the Act, the Common Elements (including Limited Common Elements) are
not subject to partition. Any conveyance, encumbrance, judicial sale or other transfer (voluntary
or involuntary) of an individual interest in the Common Elements shall be void unless the Unit to
which that interest is allocated is also transferred. Except upon the unanimous consent of all Unit
Owners, Eligible Mortgagees of Residential Unit and the Investor, no construction, repair or
replacement of any portion of the Common Elements shall be financed using the proceeds of bonds
the interest on which is exempt under Section 103 of the Internal Revenue Code of 1986 as
amended (the “IRC”).
ARTICLE 8 LIMITED COMMON, ELEMENTS
Section 8.1 Description. The following, when constructed, shall constitute Limited
Common Elements, the use and maintenance of which shall be restricted to the Units to which they
are allocated:
(i) Except to the extent expressly set forth in this Declaration, any fireplaces, shutters,
awnings, window boxes, doorsteps, stoops, porches, balconies, patios, decks and
all exterior doors and windows or other fixtures designed to serve a single Unit, but
which are located outside that Unit’s boundaries, are Limited Common Elements
allocated exclusively to that Unit.
(ii) Except to the extent expressly set forth in this Declaration, if any chute, flue, duct,
wire, conduit, bearing wall, bearing column, or any other fixture lies partially
within and partially outside the designated boundaries of a Unit, any portion thereof
serving only that Unit is a Limited Common Element allocated solely to the Unit,
and any portion thereof serving more than one Unit or any portion of the Common
Elements is a part of the Common Elements.
(iii) Any areas, fixtures or equipment identified in Schedule C are Limited Common
Elements allocated to the Units set forth therein.
Section 8.2 Reallocation or Incorporation of Common Elements. A Common
Element may be reallocated as a Limited Common Element and a Common Element (but not a
Limited Common Element) may be incorporated into an existing Unit with the unanimous
approval of Unit Owners and with the written approval of the Eligible Mortgagees and the Investor.
A Limited Common Element may be incorporated into a Unit (or Units) with the consent of all
Unit Owners to whom the Limited Common Element has been allocated and the Owner of the Unit
or Units into which it is being incorporated and with the written approval of the Eligible
Mortgagees and the Investor. Such reallocation or incorporation shall be reflected in an
amendment to the Declaration and the Map.
Section 8.3 Reallocation Between Units. A Limited Common Element may be
reallocated between Units only with the approval of the Unit Owners, written consent of all
Eligible Mortgagees and the Investor and by an amendment to the Declaration executed by the
Owners of the Units to which the Limited Common Element was and will be allocated. The
amendment shall be recorded in the names of the parties and of the Condominium.
CONDOMINIUM DECLARATION - SOLERA PAGE 11
Section 8.4 Use of Limited Common Elements. Each Owner of a Unit to which a
Limited Common Element is allocated shall have the exclusive right to use the Limited Common
Element in Common with the other Owners, if any, to which that Limited Common Element is
allocated, except as otherwise provided herein. Furthermore, each Owner of a Unit to which a
Limited Common Element is solely allocated shall have the right to alter that Limited Common
Element if the other Units and Common Elements serving the other Units, and easement rights of
other Units in such Limited Common Element, are not affected. The right to use the Limited
Common Element extends to the Owner’s Authorized Users, but is governed by the provisions of
the Act and the Governing Documents.
ARTICLE 9 EASEMENTS
Section 9.1 Use, Maintenance and Repair of Common Elements. Subject to the
Governing Documents and to the Association’s rights to regulate the use, maintenance, repair,
replacement and modification of the Common Elements, each Unit Owner, for its benefit and the
benefit of its Authorized Users, has (i) an easement in, over and through the Common Elements
for access to its Unit, and (ii) a right to use, maintain, repair, and replace the Common Elements
(subject to restrictions pertaining to Limited Common Elements) for the purposes for which the
Common Elements were intended.
Section 9.2 Utility Serving Improvements. Each Unit has an easement in and through
each other Unit and the Common Elements for existence, installation, use, maintenance, repair and
replacement of all utility and service elements, equipment and facilities serving the Owner’s Unit
improvements, and for reasonable access thereto, as required to effectuate and continue the proper
operation of the Condominium. Each Unit Owner has the right to grant easements through the
Common Elements to any utility provider or municipality for the installation, construction,
maintenance, repair and reconstruction of all utilities serving any portion of the Owner’s Unit
improvements or Common Element improvements, including, without limitation, such utility
services as water, sanitary sewer, storm sewer, electricity, cable television, Internet access and
telecommunications; and access thereto.
Section 9.3 Ingress and Egress. Each Unit has an easement for ingress and egress
through any portion of the Condominium intended for common ingress and egress, including
without limitation, entries, exits, lobbies, corridors, stairs, elevators, walkways, sidewalks,
driveways and plazas. This easement is for the purpose of accommodating normal and customary
ingress and egress, and emergency ingress and egress. The Unit Owners and the Association may
(i) install in any such areas, security devices, panic hardware, signage, access restrictions and other
features that do not violate this Declaration or applicable ordinances and regulations relating to
ingress and egress, (ii) control access outside of the business hours, and (iii) subject to the other
provisions of the Governing Documents, relocate such areas to accommodate changes or
improvements within a Unit or the Condominium.
Section 9.4 Duration. Any easements granted herein are perpetual and run with the
land. Any such easements shall, however, terminate upon the termination of this Condominium
pursuant to Article 25 of this Declaration.
ARTICLE 10 USE RESTRICTIONS
CONDOMINIUM DECLARATION - SOLERA PAGE 12
Section 10.1 Permitted Uses.
10.1.1 Residential Unit. Residential Unit of the Condominium and
the Limited Common Elements appurtenant thereto may be used only for the operation of a
multifamily apartment complex, including (i) use of the Apartments within Residential Unit as
primary residences, (ii) social, recreational, and other activities normally incident to residential
uses of the Apartments, and (iii) any maintenance, management or rental offices for the Apartments
in Residential Unit.
10.1.2 Garage Unit. Garage Unit and the Limited Common
Elements appurtenant thereto may be used for any lawful use that is compatible with the operation
of parking structure serving Residential Tenants and the Retail Unit. Subject to the foregoing, the
Owner of Garage Unit or its lessee shall have the right to adopt and to modify from time to time,
in its discretion, rules and regulations for all users of the Garage Unit parking facilities. In no
event shall Residential Tenants be excluded from access and use of the parking spaces within
Garage Unit as a result of the Owner of Garage Unit or its lessee making such parking spaces
available for use by entities or individuals that are not Residential Tenants. The Garage Unit may
not be used for residential purposes.
10.1.3 Retail Unit. Retail Unit and the Limited Common Elements
appurtenant thereto may be used for any lawful use that is compatible with its intended use as
commercial and retail space, provided, however that the Retail Unit may not be used for residential
purposes or any of purposes restricted in Schedule D.
10.1.4 Not Permitted Uses. Notwithstanding the foregoing, none
of the Units may be used for any use that is hazardous or offensive, that threatens the safety or
security of the Authorized Users of the Units, that generates noise or odors generally considered
inappropriate in a mixed use residential building, that will result in the cancellation of insurance
on any part of the Condominium, that violates the certificate of occupancy for the applicable
portion of the Building, that would reasonably lead to an increase in crime around the Building, or
that would be in violation of any applicable laws, codes, or regulations, including uses in violation
of federal law whether or not permitted under state law.
Section 10.2 Effect on Insurance. Except for such activities and improvements as are
permitted by the Act or the Governing Documents, nothing shall be done or kept in any Unit or in
any Common Element that will increase the rate of insurance or result in the cancellation of
insurance on the property without the prior written consent of the Board.
Section 10.3 Intrusive Activity. No Owner shall conduct, permit or allow (i) any noise,
vibration, odor or other undesirable effect to emanate from a Unit or Common Element except in
connection with construction, repair or renovation of the Property; or (ii) any illegal, noxious or
offensive activity to be carried on in any Unit or Common Element. No Owner or Authorized
User shall conduct, permit or allow any activity or the keeping of anything in a Unit or a Common
Element that may interfere with the use or enjoyment of the Apartments or Common Elements,
threaten the comfort, safety or security of any Owner or its Authorized Users, or be or become an
annoyance or nuisance to other Owners or Authorized Users. Upon notice by the Board or a Unit
Owner to an Owner that any of the aforesaid is occurring, the Owner shall, within ten (10) days
CONDOMINIUM DECLARATION - SOLERA PAGE 13
thereafter, remove or control the same and, if any such condition is not so remedied, then the Board
may, at its discretion, either: (1) cure such condition at the Owner’s expense; or (2) pursue any
other available legal or equitable remedy. Notwithstanding the foregoing, noise and odors
commonly associated with occupation of residential dwellings, not constituting a nuisance or
violation of applicable laws, statutes or ordinances, shall be permitted.
Section 10.4 Use of Building.
10.4.1 General. No Unit Owner or Authorized User shall use the
plumbing facilities for any purpose other than the provision of water or disposal of ordinary
wastewater. No Unit Owner or Authorized User shall install, operate or maintain in any Unit any
electrical equipment which will overload the electrical system of the Condominium, or any part
thereof, beyond its reasonable capacity for proper and safe operation as determined by the Board.
No Unit Owner or Authorized User shall use or occupy a Unit or a Common Element, or do or
permit anything to be done thereon, in any manner which will cause structural injury to the
Building, or which would violate any present or future, ordinary or extraordinary, laws,
regulations, ordinances, or requirements of the federal, state, or local governments, or of any
department, subdivision, bureaus, or offices thereof, or of any other governmental public or quasi-
public authorities now existing or hereafter created having jurisdiction over the Condominium.
10.4.2 Deliveries. The delivery or shipment of goods,
merchandise, and supplies to and from the Units shall be accomplished in a manner that does not
unreasonably interfere with the enjoyment and security of the Residential Tenants and the Owner
or Authorized Users of the Units. Any business operated in Retail Unit may not be open for
delivery or shipment of goods between the hours of 10:00 p.m. and 6:00 a.m.; provided, however,
occasional deliveries to Retail Unit outside of these hours shall be permitted so long as such
activities do not unreasonably interfere with the enjoyment and security of the Residential Tenants
and the Owner or Authorized Users of the Units.
Section 10.5 Hazardous Substances. No Owner or Authorized User shall permit any
Hazardous Substance to be generated, processed, stored, transported, handled, or disposed of on,
under, in, or though the Owner’s Unit or the Property, except for storage, handling or use of
reasonable quantities and types of cleaning solvents, paint, herbicides for landscape maintenance
and similar materials which are incidental to normal commercial, rental or residential uses in the
ordinary course and prudent conduct of an Owner’s or Authorized User’s business and used in
compliance with applicable laws and regulations. Each Owner shall indemnify, defend, and hold
harmless the other Owner or Owners and the Association from all fines, suits, procedures, claims,
and actions of any kind arising out of or in any way connected with any spills or discharges of
Hazardous Substances or wastes arising from the operation or use of the Unit or the Property by
the Owner or Authorized User. As used herein, the term “Hazardous Substance” means any
hazardous, toxic, or dangerous substance, waste, or material which is or becomes regulated under
any federal, state, or local statute, ordinance, rule, regulation, or other law now or hereafter in
effect pertaining to environmental protection, contamination, or cleanup, including without
limitation any substance, waste, or material which now or hereafter is designated as a “Hazardous
Substance” under the Comprehensive Environmental Response, Compensation and Liability Act
(42 USC, §9601 et seq); or under any local or state rule or regulation. Without limiting the
CONDOMINIUM DECLARATION - SOLERA PAGE 14
foregoing, Hazardous Substances shall include, but not be limited to, any substance which after
being released into the environment or indirectly by ingestion through food chains, will or may
reasonably be anticipated to cause death, disease, behavior abnormalities, cancer, and/or genetic
abnormalities.
Section 10.6 Conveyance by Owners; Notice Required. Conveyance of Residential
Unit will require written approval by the Investor. The right of an Owner to transfer the Unit shall
not be subject to any right of approval, disapproval, first refusal, or similar restriction by the
Association or the Board, or anyone acting on their behalf. The Board shall have the right to notify
the purchaser, the title insurance company, and the closing agent of the amount of unpaid
Assessments and charges outstanding against the Unit, whether or not such information is
requested. If the Association is the named insured under any insurance policy under Article 20,
the Association shall notify each insurance company that has issued an insurance policy under
Article 20 of the name and address of the new owner and request that the new Owner be made an
additional insured under such liability policy.
Section 10.7 Signs. An Owner or Authorized User may install, display or use any
advertising media or device in or on any Common Element only to the extent permitted by
applicable laws, codes, and regulations.
Section 10.8 Trash, Garbage and Recycling. Each Owner shall be responsible for
removing all trash and garbage from the Owner’s Unit and placing it in such location and
receptacles as are authorized by the Board. The Board shall determine what trash and recycling
removal service to provide for the Condominium. The Board may provide different trash removal
services for the Units and may specially assess those costs to each Owner. Each Owner is
responsible for removing from the Condominium all trash and garbage generated by that Owner
or its Authorized Users that is not required to be picked up by such service. An Owner may
separately contract for removal of trash and garbage generated by Owner or its Authorized Users,
with approval of Board. “Trash” as used herein includes materials to be recycled or composted.
ARTICLE 11 CONSTRUCTION AND MAINTENANCE OF UNITS AND COMMON
ELEMENTS
Section 11.1 Owner Maintenance. Each Owner shall, at the Owner’s sole expense, be
responsible for the maintenance, repair and replacement of the portions of the Building and
improvements located within the Owner’s Unit, or otherwise constituting a part thereof, and the
Limited Common Elements allocated solely to such Unit. Each Owner shall maintain the
improvements located within its Unit in sound condition and shall not allow such improvements
to fail, deteriorate or cease functioning through lack of regular or proper maintenance. Each Owner
shall be responsible for any damage to the improvements located within its Unit, the improvements
located within another Unit or the Common Elements caused by such Owner’s failure to maintain
its improvements pursuant to this section.
Section 11.2 Association Maintenance. Except as set forth in Section 11.1, the
Association is responsible for the maintenance, repair, and replacement of the Common Elements,
the cost of which shall be a Common Expense or Specially Allocated Expense, as set forth in this
Declaration. Except as set forth in Section 11.1, the Association is responsible for the maintenance
CONDOMINIUM DECLARATION - SOLERA PAGE 15
and repair of the Common Element improvements and Limited Common Elements that are
allocated to more than one Unit. The Board may permit or require Unit Owners to maintain some
or all of the Common Elements or Limited Common Elements that are allocated to more than one
Unit if it concludes that the Owners will properly maintain those Common Elements, and that there
is little risk of damage to the Condominium or cost to the Association from such transfer of
maintenance responsibility. The Board may contract with any Owner to perform certain of these
functions recognizing that the Owner or its Affiliates may have the personnel with the necessary
qualifications to operate, maintain and repair the Common Element improvements, on terms and
conditions as the Board deems advisable. The Board shall have this authority notwithstanding that
such an Owner is affiliated with certain of the directors.
Section 11.3 Construction Work — Common Elements. Except as provided in this
Declaration, the Common Elements shall not be reconstructed, rebuilt, altered, removed or
replaced except by the Association acting through the Board in accordance with the Act, this
Declaration and the Bylaws.
ARTICLE 12 ALTERATIONS OF BUILDING
Any structural modifications of or affecting in any way the Building and any modifications
affecting the exterior of the Building or affecting any Common Element that is part of the Building
shall require the approval of the Association
ARTICLE 13 OWNERS ASSOCIATION
Section 13.1 Form of Association. The Owners of Units shall be members of an owners
association to be known as the Solera Condominium Association (the “Association”). The
Association shall be organized as, a nonprofit corporation, no later than the Transition Date.
Except where expressly reserved to the Owners under the Act or the Governing Documents, the
affairs of the Association shall be managed by the Board. The rights and duties of the Board and
of the Association shall be governed by the provisions of the Act, The Washington Nonprofit
Corporation Act (RCW Chapter 24.03A), the Declaration and the Bylaws.
Section 13.2 Bylaws. The Board will adopt initial Bylaws to supplement the Declaration
and to provide for the administration of the Association and the property and for other purposes
not inconsistent with the Act or the Declaration. The initial Bylaws may be amended pursuant to
the procedures set forth in Article 24.
Section 13.3 Qualifications For Membership. Each Owner of a Unit (including the
Declarant as to Units it owns) shall be a member of the Association and shall be entitled to one
membership for each Unit owned. Only Owners may be members of the Association. Ownership
of a Unit shall be the sole qualification for membership in the Association.
Section 13.4 Transfer of Membership. The membership of an Owner in the
Association is appurtenant to the Unit giving rise to the membership. The membership may not
be transferred in any way except upon the transfer of title to the Unit and then only to the transferee
of title to the Unit, provided that if a Unit has been sold on contract, the contract purchaser shall,
except as otherwise set forth in the Governing Documents, exercise all rights of the Owner under
CONDOMINIUM DECLARATION - SOLERA PAGE 16
the Governing Documents, and shall be the voting representative unless otherwise specified. Any
attempt to make a prohibited transfer shall be void. Any transfer of title to a Unit will automatically
transfer the membership in the Association to the new Owner.
Section 13.5 Number and Classes of Votes. The allocation of Voting Interest in the
Association is set forth in Article 6 of the Declaration. Other matters concerning voting are set
forth in the Bylaws.
Section 13.6 Powers of Association.
13.6.1 General Powers. Except to the extent limited by the
Governing Documents, the Association with at least 60% of the total Voting Interests shall have
(i) all powers authorized under the Act and The Washington Nonprofit Corporation Act; (ii) all
powers necessary for the operation of the Condominium and governance of the Association; (iii)
any other powers authorized by this Declaration; and (iv) all other powers that may be exercised
under the common law by any owners association.
13.6.2 Capital Improvements. The Association may cause
additional improvements to be made as a part of the Common Elements, and acquire, hold,
encumber, convey, and dispose of, in the Association’s name, right, title, or interest to real or
tangible and intangible personal property, and arrange for and supervise any addition or
improvement to the Condominium.
13.6.3 Rules and Regulations. The Board may adopt such Rules
and Regulations as in the judgment of the Board are necessary for the safe, sanitary and efficient
operation of the Condominium. Any such Rules and Regulations must accommodate the business
needs and interests of, and the governmental restrictions imposed upon, the Owners and
Authorized Users of the Units. All Rules and Regulations adopted by the Board shall comply with
the following provisions (which shall not apply to amendments to this Declaration adopted in
accordance with Article 24):
13.6.3.1 No Rule or Regulation shall interfere with the
freedom of Residential Tenants to determine the composition of their households.
13.6.3.2 In adopting, amending or rescinding Rules
and Regulations, the Board shall give consideration to the interests of the Unit Owners and their
respective Authorized Users, as well as the interests of the Association. No Rule or Regulation
may be arbitrary or capricious. All Rules and Regulations must treat similarly situated Units,
Owners and Authorized Users similarly. No Rule or Regulation shall be inconsistent with or
violate the provisions of the Declaration, Articles, or Bylaws.
13.6.3.3 The Board and the Association shall have no
power to adopt Rules and Regulations or otherwise take any action with respect to any Residential
Tenants that would constitute a violation of applicable landlord/tenant law, the Fair Housing Act,
the Americans with Disabilities Act or any other federal, state or local antidiscrimination laws.
CONDOMINIUM DECLARATION - SOLERA PAGE 17
13.6.3.4 Following adoption, amendment, or repeal of
a rule, the Association must give notice to the Unit Owners and the Investor of its action and
provide a copy of any new or revised rule.
Section 13.7 Financial Statements and Records. The Association must keep all of its
funds in accounts in the name of the Association with a Qualified Financial Institution. The
Association shall keep financial records in accordance with accrual-based accounting principles.
The Association must establish and maintain its accounts and records in a manner that will enable
it to credit Assessments for Common Expenses and Specially Allocated Expenses, including
allocations to reserves, and other income to the Association, and to charge expenditures, to the
account of the appropriate Units in accordance with the provisions of this Declaration. At least
annually, the Association shall prepare, or cause to be prepared, a financial statement of the
Association in accordance with accrual-based accounting principles. The annual financial
statement need not be audited. Any Mortgagee or Investor will be entitled to receive the financial
statement upon written request.
Section 13.8 Inspection of Condominium Documents, Books and Records. The
Books and Records of the Association shall be kept in the offices of the Association, as designated
in the Bylaws. The Association shall make available to Owners, Mortgagees, the Investor,
prospective purchasers and their prospective Mortgagees, and the agents or attorneys of any of
them, current copies of the Books and Records of the Association. “Available” shall mean
available for inspection upon request, during normal business hours or under other reasonable
circumstances. The Association may require the requesting party to pay a reasonable charge to
cover the cost of making the copies.
ARTICLE 14 TRANSFER OF CONTROL
Section 14.1 Declarant’s Transfer of Association Property. Within sixty (60) days
after the Transition Date, the Declarant shall deliver to the Association all property of the Owners
and of the Association held or controlled by the Declarant including, but not limited to, the Books
and Records of the Association and control of Association funds.
Section 14.2 Audit of Records Upon Transfer. Within 120 days after the Transition
Date, the records of the Association shall be audited as of the date of transfer by an independent
certified public accountant in accordance with generally accepted auditing standards unless the
Owners, other than the Declarant, elect to waive the audit. The costs of the audit shall be a
Common Expense.
ARTICLE 15 THE BOARD OF DIRECTORS
Section 15.1 Selection of the Board and Officers. The qualifications, number, method
of election, removal and terms of service of the directors and officers shall be as specified in the
Bylaws.
Section 15.2 Powers of the Board. Except where expressly reserved to the Owners
under the Act or the Governing Documents, the affairs of the Association shall be managed by the
Board. The Board may exercise all powers of the Association, except as otherwise provided in the
CONDOMINIUM DECLARATION - SOLERA PAGE 18
Governing Documents. The Board shall have the power to contract for and provide goods and
services necessary for the proper functioning of the Condominium pursuant to the Governing
Documents. Those goods and services may include, but are not limited to, the following:
15.2.1 Utilities. All necessary utility services for the Common
Elements that are not the Limited Common Elements, and all such services for the Limited
Common Elements and the Units if not separately metered or charged, in which case, the Board
may by reasonable formula allocate a portion of such expense to each such Unit involved as part
of its Common Expense Liability.
15.2.2 Additions to Common Elements. Additions or
improvements to the Common Elements.
15.2.3 Professional Services. The legal and accounting services
necessary or proper for the operation of the project or enforcement of Governing Documents.
15.2.4 Maintenance. Unless otherwise provided in the
Declaration, the maintenance, repair and replacement of the Common Elements.
15.2.5 Other Necessary Expenditures. Any other materials,
supplies, structural alterations, furniture, labor, services, insurance, taxes or assessments that the
Association is required to secure or pay for pursuant to the terms of this Declaration, the Bylaws,
or under law, or that, in its opinion, are necessary or proper for the operation of the Condominium,
or for the enforcement of this Declaration or the Bylaws; provided that if any such services are
provided for particular Units, the cost thereof shall be specially assessed to the Owners of such
Units and shall be due and payable within thirty days of written notice and demand made to such
Owners.
15.2.6 Liens. The Board may cause the Association to pay any
amount necessary to discharge any lien or encumbrance levied against the entire Property or any
part thereof that may or is claimed, in the opinion of the Board, to constitute a lien against the
Property or against the Common Elements, rather than merely against the interest therein of
particular Owners. Where one or more Owners are responsible for the existence of such lien, they
shall be jointly and severally liable for the cost of discharging it, and any costs and expense
incurred by the Association by reason of such lien or liens shall be assessed against the Owners
and the Units responsible to the extent of their responsibility and shall be immediately due and
payable to the Association.
15.2.7 Representation by Association. The Association shall
represent the Unit Owners in any proceedings related to the condemnation, destruction, or
liquidation of all or part of the Condominium, and shall have the sole authority to participate in all
negotiations and enter into all related settlements or agreements on behalf of the Unit Owners;
provided, however, that the written consent of the Investor shall also be required with respect to
any such settlements or agreements. The Unit Owners hereby appoint the Association as their
attorney-in-fact in all such matters.
CONDOMINIUM DECLARATION - SOLERA PAGE 19
Section 15.3 Managing Agent. The Association may contract with a Managing Agent
to assist the Board in the management and operation of the Condominium and may delegate such
of its powers and duties to the Managing Agent as it deems to be appropriate, except as limited
herein. Any contract with a Managing Agent must be approved by the holder of each first
Mortgage on a Unit, shall have a term no longer than one year (but may be renewable by agreement
of the Board and Managing Agent for successive one-year periods) and shall be terminable by the
Board without payment of a termination fee either with or without for cause on not more than 30
days’ written notice.
Section 15.4 Exclusive Right to Contract. The Board shall have the exclusive right to
cause the Association to contract for all goods and services for which payment related thereto in
accordance with the approved budget is to be made from the common expense fund.
Section 15.5 Authorization of Board of Directors. In the event the moneys in the
common expense fund are insufficient to pay the expenditures provided for herein, the Board is
authorized (subject to the limitations set forth in this Declaration) to cause the Association to
borrow money to meet such expenditures on behalf of the Association and, to secure the repayment
thereof, encumber any portion of the Common Elements. Prior to incurring debt or encumbering
or conveying any interest in the Common Elements, the Board must obtain the written consent of
all Unit Owners, Eligible Mortgagees and the Investor. Proceeds of the financing authorized under
this section are an asset of the Association. Any agreement for the sale or financing of Common
Elements shall be in writing, contain a legal description of the Common Elements affected thereby,
shall be signed by all Unit Owners, and all such signatures shall be acknowledged. The agreement
shall be recorded in the county in which the property is located and shall contain a deadline by
which it must be recorded. No conveyance or encumbrance of Common Elements pursuant to this
Section shall deprive any Unit of its rights of access or support. In addition, the Board is
authorized, subject to the limitations set forth in this Declaration, to cause the Association to
borrow money to meet such expenditures on behalf of the Association and, to secure the repayment
thereof to encumber future income of the Association, including any receivable, right to payment,
and special and general assessments from the Unit Owners, but any assignment of future income
may be made only with the written consent of the Eligible Mortgagees and the Investor. In
connection with the encumbrance of future income of the Association, the Association may
execute such loan documents and undertake such obligations as the lender may require to realize
on the encumbrance including powers of attorney, control over deposit accounts, the right to file
or foreclose assessment liens, and the right to contact account debtors (including the Unit Owners)
and require that payment be made directly to the lender.
Section 15.6 Actions by the Board. Except when a higher or different standard is
required by a provision of this Declaration, the Act, or the Governing Documents, the Board shall
act by majority vote. The Board shall act reasonably, in light of the facts determined by the Board,
in making all determinations, exercising its discretion, granting or withholding consent, or taking
any action on behalf of the Association. The Board shall not act on behalf of the Association to
amend the Declaration in any manner that requires the vote or approval of the Unit Owners
pursuant to Article 24, to terminate the Condominium pursuant to Article 25, or to elect members
of the Board or determine the qualifications, powers, and duties, or terms of office of members of
the Board.
CONDOMINIUM DECLARATION - SOLERA PAGE 20
Section 15.7 Indemnification. Each Board member, officer and committee member,
including the Declarant when acting in any such capacity, shall be indemnified by the Association
against all expenses and liabilities, including attorneys’ fees, reasonably incurred by or imposed
in connection with any proceeding to which such person may be a party, or in which such person
may become involved, by reason of holding or having held such position, or any settlement thereof,
whether or not such person holds such position at the time such expenses or liabilities are incurred,
except to the extent such expenses and liabilities are covered by any type of insurance and except
in such cases wherein such person is adjudged guilty of negligence or willful misfeasance in the
performance of such person’s duties; provided, that in the event of a settlement, the
indemnification shall apply only when the Board approves such settlement and reimbursement as
being for the best interests of the Association.
Section 15.8 Entry for Repairs or Maintenance. The Association, the Managing
Agent, and their agents or employees may enter a Unit and the Limited Common Elements
allocated thereto to inspect and to effect repairs, improvements, replacements, maintenance or
sanitation work deemed by the Board to be necessary in the performance of its duties; to obtain
access to Common Elements; to do work that the Owner has failed to perform in violation of this
Declaration; to prevent damage to the Common Elements or to another Unit; or to prevent
unnecessary Common Expenses. To the extent practical, the Board shall cause reasonable advance
notice of entry to be given to the Unit Owners. If the Board determines there is a need to repair or
replace a portion of a Unit or Limited Common Element, the Association may either require the
Owner to make the repair or replacement or make the repair or replacement itself and allocate the
cost to the Owner. The Board may levy a special Assessment against the Owner of the Unit for
all or a part of such sums, which may be collected and foreclosed by the Association in the same
manner as Assessments are collected and foreclosed under Article 17. In furtherance of this right,
the Board may require Owners and their Authorized Users to furnish the Board or its agent with
duplicate keys to the Units.
ARTICLE 16 BUDGET AND ASSESSMENTS
Section 16.1 Fiscal Year. The fiscal year shall be the calendar year.
Section 16.2 Preparation of Budget. Not less than thirty (30) days before the end of the
fiscal year, the Board shall prepare a budget for the Association for the coming year. In preparing
its budget the Board shall estimate the Common Expenses of the Association to be paid during the
year, may make provision for accumulation of reserves, including amounts reasonably anticipated
to be required for maintenance, repair, and replacement of the Common Elements, and may take
into account any surplus or deficit carried over from the preceding year and any expected income
to the Association.
Section 16.3 Ratification of Budget. Within thirty (30) days after adoption of any
proposed budget for the Condominium, the Board shall provide a copy of the proposed budget to
each Owner and the Investor and shall set a date for a meeting of the Owners to consider ratification
of the budget not fewer than fourteen (14) nor more than sixty (60) days after mailing of the
proposed budget. The proposed budget shall be deemed ratified unless Owners holding at least
60% of the Voting Interest vote to reject the budget. In the event the proposed budget is rejected
CONDOMINIUM DECLARATION - SOLERA PAGE 21
at such meeting, the periodic budget last ratified by the Unit Owners shall be continued until such
time as the Unit Owners ratify a subsequent budget proposed by the Board pursuant to this Section.
If the Board proposes a supplemental budget during any fiscal year, such budget shall not take
effect unless ratified by the Unit Owners in accordance with this Section.
Section 16.4 Revisions to Budget. The Board may revise the budget and any
Assessments based thereon, from time to time for any reason, including non-payment of any
Owner’s Assessments. A revised budget shall be ratified pursuant to Section 16.3.
Section 16.5 Assessments for Common Expenses. The sums required by the
Association for Common Expenses as reflected by the annual budget and any supplemental
budgets shall be paid annually (or at such other interval to be established by the Board) over the
period to be covered by the budget or supplemental budget. The annual Assessment for Common
Expenses for each Unit shall be the total of (a) the Common Expense Liability of that Unit (except
Specially Allocated Expenses) and (b) any Specially Allocated Expenses of that Unit.
Assessments shall commence against all Units that have been created by this Declaration at such
time as is determined by the Board.
Section 16.6 Specially Allocated Expenses. The Common Expenses described in this
section shall be assessed against the Owners as described herein, and not on the basis of the
Owner’s Common Expense Liability.
16.6.1 Insurance. The Common Expense of procuring and
maintaining insurance shall be allocated among the Units on the basis of the Owner’s Common
Expense Liability; except that such costs may be allocated by the Board among the Unit Owners
based on the relative cost of insuring each Unit and the operations conducted therein, if the
insurance provider or other third-party professional provides the Association with a reasonable
alternative allocation of insurance expenses among each Unit and the Common Elements, based
upon the uses and relative values of each Unit, and the allocation implemented by the Board is
based upon such reasonable alternative allocation method. Upon placement or renewal of
insurance, the Board shall consult with its insurance agent, broker, insurer or insurance advisors
to determine how to fairly allocate the Common Expense for insurance among the Unit Owners
based on the relative cost of insuring each Unit and the operations conducted therein.
16.6.2 Misconduct. To the extent that any Common Expense is
caused by the negligence of, misconduct by, or violation of the Governing Documents by, an
Owner or Authorized User of any Unit, the Association may assess the expense (including the cost
of any deductible under the Association’s property insurance) against the Unit.
16.6.3 Limited Common Elements. Any Common Expense
associated with the operation, maintenance, repair, or replacement of a Limited Common Element
shall be assessed against the Unit(s) to which that Limited Common Element is allocated.
16.6.4 Unequal Benefit. The Board must assess any Common
Expense, or portion thereof, that benefits fewer than all the Units solely against the Units receiving
the benefit.
CONDOMINIUM DECLARATION - SOLERA PAGE 22
16.6.5 Utilities. If utilities paid for by the Association are
separately metered or sub-metered to the Units, the Common Expense for those utilities will be
assessed to the user(s) of the service based on the metering. If utilities are not separately metered
to the Units, the Board shall assess the Common Expense for those utilities, or any portion thereof,
according to the Common Expense Liability if they serve all Units; and otherwise in proportion to
usage as estimated by the Board or its designee.
16.6.6 Real Property Taxes. To the extent (and only to the extent)
real property taxes become due prior to the segregation of the Units into separate tax parcels by
the taxing jurisdiction, then such taxes shall be assessed to the Units by the Board based on
Common Expense Liability taking into account any tax exemptions available to such Units.
Section 16.7 Special Assessments. For those Common Expenses which cannot
reasonably be calculated and paid on a regular basis, the Board may levy special Assessments for
such expenses against the Units, subject to ratification by the owners pursuant to Section 16.3.
Section 16.8 Creation of Reserves; Assessments. The Board may establish reserve
accounts as it deems appropriate, may withdraw funds from such accounts as it determines, and
may make assessments for reserves in such budgets.
Section 16.9 Notice of Assessments. The Board shall notify each Owner in writing of
the amount of the general and special Assessments to be paid for the Owner’s Unit and shall furnish
copies of all budgets and the Common Expense Liability allocations which apply to the Unit, on
which the general and special Assessments are paid. The Board shall furnish duplicate copies of
the same information to the Investor. The Board shall furnish the same information to an Owner’s
Mortgagee if so requested.
Section 16.10 Payment of Assessments. On such installment schedule adopted by the
Board, each Owner shall pay or cause to be paid to the treasurer or designated agent of the
Association all Assessments against the Unit for that year (or such other installment period as
adopted by the Board). Any Assessment not paid by within five (5) days of the designated payment
due date shall be delinquent and subject to late charges, interest charges and collection procedures
as provided in Article 17.
Section 16.11 Proceeds Belong to Association. All Assessments and other receipts
received by the Association on behalf of the Condominium shall belong to the Association.
Section 16.12 Failure To Assess. Any failure by the Board or the Association to make
the budgets and Assessments hereunder before the expiration of any year for the ensuing year shall
not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a
release of the Owner from the obligation to pay Assessments during that or any subsequent year,
and the Assessment amounts established for the preceding year shall continue until new
Assessments are established.
Section 16.13 Certificate of Unpaid Assessments. Upon the request of any Owner,
Investor or Mortgagee of a Unit, the Board will furnish a certificate stating the amount, if any, of
unpaid Assessments charged to the Unit. The certificate shall be conclusive upon the Board and
CONDOMINIUM DECLARATION - SOLERA PAGE 23
the Association as to the amount of such indebtedness on the date of the certificate in favor of all
purchasers and mortgagees of the Unit who rely on the certificate in good faith. The Board may
establish a reasonable fee to be charged to reimburse it for the cost of preparing the certificate.
Section 16.14 Recalculation of Assessments. If Common Expense Liabilities are
reallocated, Common Expense Assessments, special Assessments, and any installment thereof not
yet due shall be recalculated in accordance with the reallocated liabilities.
Section 16.15 Assessments Due in Future. No assessment of any kind shall be made that
will come due more than one year after the date of the Board action making such assessment. Any
Assessment that has not yet come due may be reduced or rescinded by a vote of the majority of
the Board, by written notice to the Owners.
ARTICLE 17 LIEN AND COLLECTION OF ASSESSMENTS
Section 17.1 Assessments Are a Lien; Priority.
17.1.1 The Association has a lien on a Unit for any unpaid
Assessment levied against a Unit from the time the/Assessment is due.
17.1.2 A lien under this Article shall be prior to all other liens and
encumbrances on a Unit except: (a) liens and encumbrances recorded before the recording of this
Declaration and all modifications, amendments, restatements and extensions of such liens and
encumbrances; (b) a Mortgage on the Unit recorded before the date on which the Assessment
sought to be enforced became delinquent; and (c) liens for real property taxes and other
governmental assessments or charges against the Unit.
17.1.3 Recording of this Declaration constitutes recorded notice
and perfection of the lien for Assessments, however, the Association may record a notice of claim
of lien for Assessments in the real property records of the county in which the Condominium is
located.
17.1.4 The Association shall not enforce its lien rights against a
Unit Owner unless and until the Association shall have provided written notice of default to the
Investor and any Eligible Mortgagee and the Investor or Eligible Mortgagee have failed to cure
the default giving rise to such enforcement within (i) 60 days if such default can be cured by the
payment of a sum of money and (ii) 180 days for any other type of default. Said 180-day cure
period shall be tolled so long as the defaulting Unit Owner is in bankruptcy or so long as the
Investor or Eligible Mortgagee are attempting in good faith to resolve the default.
Section 17.2 Lien May Be Foreclosed; Judicial Foreclosure. The lien arising under
this Article may be enforced judicially by the Association or its authorized representative in the
manner set forth in RCW 61.12, or nonjudicially in the manner set forth in Section 17.3. The
Association or its authorized representative shall have the power to purchase the Unit at the
foreclosure sale and to acquire, hold, lease, mortgage, or convey the same. Upon an express waiver
in the complaint of any right to a deficiency judgment in a judicial foreclosure action, the period
of redemption shall be eight (8) months. Nothing in this section shall prohibit the Association
CONDOMINIUM DECLARATION - SOLERA PAGE 24
from taking a deed in lieu of foreclosure. The holder of a Mortgage or other purchaser of a Unit
who obtains the right of possession of a Unit through foreclosure shall not be liable for any
Assessments or installments thereof that became due prior to such right of possession. Any such
unpaid Assessments that became due prior to the holder of a Mortgage or other purchaser of a Unit
taking of possession by foreclosure shall be deemed to be Common Expenses collectible from all
the Owners, including such Mortgagee or other purchaser of the Unit. The holder of a Mortgage
or other purchaser of a Unit who obtains the right of possession of a Unit through foreclosure shall
be liable for any Assessments or installments thereof that became due after taking possession.
Foreclosure of a Mortgage does not relieve the prior Owner of personal liability for Assessments
accruing against the Unit prior to the date of such sale.
Section 17.3 Nonjudicial Foreclosure. A lien arising under this Article may be
foreclosed nonjudicially in the manner set forth in RCW 61.24 for nonjudicial foreclosure of deeds
of trust. For the purpose of preserving the Association’s nonjudicial foreclosure option, this
Declaration shall be considered to create a grant and conveyance of each Unit in trust to First
American Title Insurance Company or its successors or assigns (“Trustee”), to secure the
obligations of each Unit Owner (“Grantor”) to the Association (“Beneficiary”) for the payment
of Assessments. Grantor shall retain the right to possession of Grantor’s Unit so long as Grantor
is not in default of an obligation to pay Assessments. The Trustee shall have a power of sale with
respect to each Unit, which becomes operative in the case of a default in a Grantor’s obligation to
pay Assessments. No Unit is used principally for agricultural or farming purposes. If the
Association forecloses its lien nonjudicially pursuant to this Section, it shall not be entitled to the
lien priority over Mortgages provided in Section 17.1.2 and shall be subject to the limits on
deficiency judgments under chapter 61.24 RCW.
Section 17.4 Receiver During Foreclosure. In an action to collect Assessments or to
foreclose on a lien on a Unit, the Association shall be entitled to the appointment of a receiver to
collect all sums due and owing to the Unit Owner before commencement of the action or during
the pendency of the action. The receivership shall be governed by chapter 7.60 RCW. During the
pendency of the action, the court may order the receiver to pay sums held by the receiver to the
Association for any Assessments against the Unit. The exercise by the Association of the
foregoing rights shall not affect the priority of preexisting liens on the Unit.
Section 17.5 Assessments Are Personal Obligations. In addition to constituting a lien
on the Unit, all sums assessed by the Association chargeable to any Unit, including all charges in
this Article, shall be the personal obligation of the Owner of the Unit when the Assessments are
made. Suit to recover personal judgment for any delinquent Assessments shall be maintainable
without foreclosing or waiving the liens securing them.
Section 17.6 Extinguishment of Lien and Personal Liability. A lien for unpaid
Assessments and the personal liability for payment of Assessments is extinguished unless
proceedings to enforce the lien or collect the debt are instituted within three years after the amount
of the Assessments sought to be recovered becomes due.
Section 17.7 Joint and Several Liability. In addition to constituting a lien on the Unit,
each Assessment shall be the joint and several obligation of the Owner or Owners of the Unit to
CONDOMINIUM DECLARATION - SOLERA PAGE 25
which the same are assessed as of the time the Assessment is due, except as otherwise specifically
provided herein. In a voluntary conveyance, the grantee of a Unit shall be jointly and severally
liable with the grantor for all unpaid Assessments against the grantor up to the time of the grantor’s
conveyance, without prejudice to the grantee’s right to recover from the grantor the amounts paid
by the grantee therefore. Suit to recover a personal judgment for any delinquent Assessment shall
be maintainable in any court of competent jurisdiction without foreclosing or waving the lien
securing such sums.
Section 17.8 Late Charges and Interest on Delinquent Assessments. The Association
may from time to time establish reasonable late charges and a rate of interest to be charged on all
subsequent delinquent Assessments or installments thereof. In the absence of another established
nonusurious rate, delinquent Assessments shall bear interest from the date of delinquency at the
maximum rate permitted under RCW 19.52.020 on the date on which the Assessments became
delinquent.
Section 17.9 Recovery of Attorneys’ Fees and Costs. The Association shall be entitled
to recover any costs and reasonable attorneys’ fees incurred in connection with the collection of
delinquent Assessments, whether or not such collection activities result in suit being commenced
or prosecuted to judgment. In addition, the Association shall be entitled to recover costs and
reasonable attorneys’ fees if it prevails on appeal and in the enforcement of a judgment.
ARTICLE 18 ENFORCEMENT OF GOVERNING DOCUMENTS
Section 18.1 Rights of Action. Each Owner, its Authorized, Users and the Association
shall comply strictly with the Governing Documents and the proper decisions of the Board. The
Declarant shall enjoy all the rights and assume all the obligations of an Owner as to each unsold
Unit in the Condominium owned by the Declarant. The Association acting on behalf of the Owners
or any Owner acting on his own behalf may bring an action to recover sums due or damages, or
for injunctive relief, or any or all of them, against any party who fails to comply with the Governing
Documents and the proper decisions of the Board.
Section 18.2 Additional Rights. Without limiting any rights and powers of the
Association, the Board may take any of the following actions against any party who fails to comply
with the Governing Documents and the proper decisions of the Board:
18.2.1 Require an Owner, at its own expense, to stop work on, and
remove, any improvement from such Owner’s Unit or other areas of the Condominium in violation
of the Governing Documents and to restore the Unit or other areas to its or their previous condition
and, upon failure of the Owner to do so, the Board or its designee shall have the right to enter the
Unit or other areas, remove the violation and restore the improvements within the Unit or other
areas to substantially the same condition as previously existed and any such action shall not be
deemed a trespass;
18.2.2 Levy Assessments against a Unit Owner to cover costs
incurred by the Association to cure a violation of the Governing Documents by such Unit Owner;
CONDOMINIUM DECLARATION - SOLERA PAGE 26
18.2.3 Impose reasonable monetary fines which shall constitute an
Assessment and a lien upon the violator’s Unit. No fine may be imposed, however, unless pursuant
to a previously established schedule thereof adopted by the Board and distributed to Owners;
18.2.4 To the extent allowed by applicable law, suspend any right
or privilege of a Unit Owner who fails to pay an Assessment, but the Association may not (i) deny
a Unit Owner or other occupant access to the Owner’s Unit, (ii) suspend a Unit Owner’s right to
vote, or (iii) withhold services provided to a Unit or a Unit Owner by the Association if the effect
of withholding the service would be to endanger the health, safety, or property of any Person; and
18.2.5 To the extent allowed by applicable law, exercise self-help
or take action to abate any violation of the Governing Documents.
Section 18.3 Remedies Cumulative; Attorneys’ Fees. All remedies set forth in the
Governing Documents shall be cumulative of any remedies available at law or in equity. In any
action to enforce the Governing Documents, if the Association or Owner prevails, it shall be
entitled to recover all costs, including without limitation, its attorneys’ fees and court costs,
reasonably incurred in such action.
ARTICLE 19 TORT AND CONTRACT LIABILITY.
Section 19.1 Association Liability. An action alleging a wrong done by the Association
must be brought against the Association and not against any Owner or any officer or director of
the Association. An Owner is not precluded from bringing an action contemplated by this section
because he or she is a Unit Owner or a member or officer of the Association.
Section 19.2 Limitation of Liability for Utility Failure. Except to the extent covered
by insurance obtained by the Association, none of the Association, the Board, the Managing Agent
nor the Declarant (except in its role as Unit Owner) shall be liable to any Unit Owner for:
19.2.1 the failure of any utility or other service to be obtained and
paid for by the Association;
19.2.2 injury or damage to person or property caused by the
elements, or resulting from electricity, water, rain, dust, mold or mildew which may leak, travel or
flow from outside of the Building, from any Unit, any Common Element or from any part of the
Building, or from any pipes, drains, conduits, appliances, or equipment, or from any other place;
or
19.2.3 inconvenience or discomfort resulting from any action taken
to comply with the Governing Documents, any law, ordinance or orders of a governmental
authority. No diminution or abatement of Assessments shall be claimed or allowed for any such
utility or service failure, or for such injury or damage, or for such inconvenience or discomfort.
Section 19.3 No Personal Liability. So long as a Board member, officer and committee
member, including the Declarant when acting in such capacity, and the Managing Agent has acted
in good faith, in accordance with applicable law, without willful or intentional misconduct, upon
CONDOMINIUM DECLARATION - SOLERA PAGE 27
the basis of such information as is then possessed by such person, no such person shall be
personally liable to any Owner, or to any other person, including the Association, for any damage,
loss or prejudice suffered or claimed on account of any act, omission, error, or negligence of such
person; provided, that this section shall not apply to deny coverage for any such act, omission,
error or negligence under any insurance obtained by the Board. Notwithstanding anything to the
contrary herein, the Board shall use commercially reasonable efforts to collect Assessments levied
under Article 16.
ARTICLE 20 INSURANCE
Section 20.1 Required Insurance. Unless otherwise agreed in writing by the Owners
holding at least 60% of the Voting Interest, the Association shall maintain, to the extent reasonably
available, a policy or policies necessary to provide (a) property insurance on the Condominium,
and (b) liability insurance. The Board shall review at least annually the adequacy of the
Association’s insurance coverage. All insurance shall be obtained from insurance carriers that are
generally acceptable for similar projects, are authorized to do business in the state of Washington,
and meet the reasonable requirements of Mortgagees and the Investor, except to the extent such
coverage is not available on commercially reasonable terms or has been waived in writing by such
Mortgagees or Investor, as applicable. If any insurance required by this Section is obtained by the
Unit Owners and not the Association, the Owner shall furnish evidence to the other Owners that
such insurance is in effect. If any insurance required by this Section is obtained by the Association
on behalf of the Owners, the premiums therefor (and any applicable deductible in the event of
casualty) may be specially allocated to the Owners in accordance with risk as provided in Section
16.6.1 of this Declaration.
Section 20.2 Property Insurance Requirements. The Association shall maintain
property insurance written on a “special form” of coverage. The property insurance shall cover (i)
all Common Element improvements, (ii) all Unit improvements and all fixtures, betterments and
alterations within the Unit but only to the extent comprising the initial construction, and not any
fixtures, improvements, betterments, alterations or additions subsequently made by, or trade
fixtures, equipment or appliances of, the Unit Owner or Tenants (iii) to the extent not described in
the foregoing clauses, the tangible personal property of the Association. The property insurance
shall insure against all risks of direct physical loss and may, but need not, include damage caused
by earthquakes or terrorism. The property insurance shall not provide coverage for any personal
property of the Unit Owners or Tenants. The amount of insurance shall not be less than 100% of
the current replacement cost of the insured property at the time the insurance is purchased and at
each renewal date, exclusive of land, excavations, foundations and other items normally excluded
from property policies, and subject to such deductibles as the Board may determine. The Board
may, in its discretion (but without any obligation to do so), from time to time obtain, cancel,
increase or reduce earthquake insurance on any portion of the Condominium that is to be insured
by the Association as provided above in this Declaration. Any Owner may maintain earthquake
insurance for its own benefit. The Association’s property policy need not cover the Unit
improvements within a Unit to the extent the Board approves in writing, in its sole discretion, a
written request from the Owner to allow such Owner to be the first named insured on an alternative,
separate property policy for those Unit improvements. Any such property insurance obtained by
an Owner on its Unit improvements shall name the Association as a loss payee and shall comply
CONDOMINIUM DECLARATION - SOLERA PAGE 28
with all requirements of this Article 20 including those applicable to coverage amounts, coverage
endorsements, and maximum deductibles. Each Owner who obtains separate insurance to cover
its Unit improvements shall deliver to the Association acceptable proof of insurance evidencing
the coverage as required by this Section. The Association shall have the right but not the obligation
to insure the Unit improvements of any Owner notwithstanding any prior approval of an Owner’s
request to insure those Unit improvements if such Owner fails to obtain the insurance in strict
accordance with the requirements of this Section 20.2. Any approval by the Association of an
Owner’s request to insure its Unit improvements shall not change the Association’s primary
authority with regard to the rebuilding of those Unit improvements following any damage to
property as provided in Article 21 and, if the Association has elected to rebuild those Unit
improvements, such Owner shall make the insurance proceeds available to the Association for that
purpose. Owners are required to obtain separate insurance for their personal property and
operations pursuant to Section 20.8 of this Declaration.
Section 20.3 Liability Insurance Requirements. The Association shall maintain
commercial general liability insurance, including medical payment insurance, which provides
coverage for bodily injury and property damage resulting from the operation, maintenance or use
of the Common Elements in an amount of at least $1,000,000 for any single occurrence and
$2,000,000 aggregate and which contains a specific endorsement to preclude the insurer’s denial
of a Unit Owner’s claim because of the negligent act of the Association or other Unit Owners.
Section 20.4 Fidelity Insurance. At the option of the Association, the Association may
maintain fidelity insurance. Such fidelity insurance shall name the Association as insured. It shall
protect against dishonest acts on the part of officers, directors, trustees, and employees of the
Association and all other persons who handle or are responsible for handling funds held or
administered by the Association. All such fidelity insurance shall name the Association as an
insured and shall be not less than the estimated maximum of funds, including reserve funds, in
custody of the Association at any time while the policy is in force, but, in no event, shall the
aggregate amount of insurance be less than three months’ aggregate Assessments plus reserve
funds. The policy shall contain waivers of any defense based upon the exclusion of persons who
serve without compensation from any definition of “employee” or similar expression.
Section 20.5 Additional Insurance Requirements. The insurance obtained pursuant to
Sections 20.2, 20.3, and 20.4 shall:
20.5.1 Provide that the Association is the named insured, and that
each Unit Owner is an insured under the policy with respect to liability arising out of the Owner’s
interest in the Common Elements or membership in the Association.
20.5.2 Provide that the insurer waives its right to subrogation under
the policy as to any and all claims against the Association, the Owner of any Unit and/or their
respective agents, employees or Tenants, and members of their household, and waives any
defenses based upon coinsurance or upon invalidity arising from the acts of the insured.
20.5.3 Provide that no act or omission by any Unit Owner, unless
acting within the scope of that Person’s authority on behalf of the Association, and no failure of
the Association to comply with any warranty or condition regarding any portion of the premises
CONDOMINIUM DECLARATION - SOLERA PAGE 29
over which the Association has no direct control, will void the policy or be a condition to recovery
under the policy.
20.5.4 Provide that if, at the time of a loss under the policy, there is
other insurance in the name of a Unit Owner covering the same risk covered by the policy, the
Association’s policy provides primary insurance, and that the liability of the insurer thereunder
shall not be affected by, and the insurer shall not claim any right to set off, counterclaims,
apportionment, proration, contribution or assessment by reason of any other insurance obtained by
or for any Unit Owner or any Mortgagee.
20.5.5 Provide that, despite any provision giving the insurer the
right to restore damage in lieu of a cash settlement, such option shall not be exercisable without
the prior written approval of the Association, or when in conflict with the provisions of any
insurance trust agreement to which the Association is a party, or any requirement of law, and that
insurance trust agreements will be recognized; and
20.5.6 Contain standard mortgagee clauses which name
Mortgagees and their successors and assigns and contain no provision (other than insurance
conditions) which will prevent Mortgagees from collecting insurance proceeds.
20.5.7 Provide that coverage may not be cancelled or substantially
modified (including cancellation for nonpayment of premium) without at least thirty (30) days’
prior written notice to the named insured and Investor.
The provisions of Sections 20.1 through 20.5 are not intended to contradict or limit any insurance
policy or coverage obligations of the Association under any loan agreement, deed of trust, bond
guaranty agreement or similar document.
Section 20.6 Adjustment of Losses; Insurance Trustee; Power of Attorney. Any loss
covered by the insurance described in Section 20.2 must be adjusted with the Association, but the
proceeds for that loss are payable to any insurance trustee designated for that purpose, or otherwise
to the Association, and not to any holder of a Mortgage. The insurance trustee or the Association
must hold any insurance proceeds in trust for the Association, Unit Owners and lien holders as
their interests may appear. Subject to the provisions of Sections 20.10 and 21.4, the proceeds must
be disbursed first for the repair or restoration of the damaged property, and the Association, Unit
Owners and lien holders are not entitled to receive payment of any portion of the proceeds unless
there is a surplus of proceeds after the property has been completely repaired or restored or the
Condominium is terminated. Each Owner appoints the Association, or any insurance trustee or
successor trustee designated by the Association, as attorney-in-fact for the purpose of purchasing
and maintaining such insurance, including the collection and appropriate disposition of the
proceeds thereof, the negotiation of losses and execution of releases of liability, the execution of
all documents and the performance of all other acts necessary to accomplish such purposes. Each
Owner and the Owner’s Mortgagee, if any, are beneficiaries of the policy in accordance with
percentages established by the Common Ownership Interest of the Owner’s Unit. Certificates of
insurance shall be issued to each Owner and Mortgagee upon request.
CONDOMINIUM DECLARATION - SOLERA PAGE 30
Section 20.7 Additional Insurance. The Association may maintain such other insurance
as the Board deems advisable.
Section 20.8 Owners’ Individual Insurance. Any Unit Owner who is permitted to be
the first named insured on a separate, alternative property policy for such Owner’s Unit
improvements, at its own expense, shall obtain and maintain such property insurance with the
coverage described in Section 20.2, and such other insurance as is typically maintained by owners
of similar properties. Provided, however, an Owner shall not have the right to maintain insurance
coverage in any manner which would decrease the amount which the Association, or any trustee
for the Association, on behalf of all of the Owners, will realize under any insurance policy which
the Association may have in force on the Condominium at any particular time. Each Unit Owner,
at its own expense, shall carry insurance that is consistent with reasonable, usual and customary
requirements and practices in the ownership and operation of first class, apartment projects in the
area with regard to all personal property and business operations of such Owner or its Tenants.
Section 20.9 Waiver of Claims. The Association and each Owner hereby waive any and
all claims they may have against any and all of the other. Owners or their lessees arising out of or
in connection with damage to or destruction of the Condominium, or any loss of use of any portion
of the Condominium arising out of the actions or omissions of the other Owners or their lessees,
regardless of whether such claim results from negligence or fault, but only to the extent the claim
is covered by the property insurance maintained by the Association.
Section 20.10 Use of Insurance Proceeds. Any portion of the Condominium for which
insurance is required under this Article is damaged or destroyed, other than by uninsured casualty,
shall be repaired or replaced promptly by the Association pursuant to Article 21 except as
otherwise expressly provided in Section 21.4. The cost of repair or replacement in excess of
insurance proceeds, reserves and deductibles paid by Owners is a Common Expense that the Board
shall allocate according to the Common Expense Liability or as a Specially Allocated Expense.
Section 20.11 Certificate. An insurer that has issued an insurance policy under this
Article 20 shall issue certificates or memoranda of insurance to the Association and, upon written
request, to any Unit Owner or Mortgagee. The insurer issuing the policy may not modify the
amount or the extent of the coverage of the policy or cancel or refuse to renew the policy unless
the insurer has complied with all applicable provisions of chapter 48.18 RCW pertaining to the
cancellation or non-renewal of contracts of insurance.
Section 20.12 Notification of Sale of Unit. Promptly upon Conveyance of a Unit, the
new Unit Owner shall notify the Association of the date of the Conveyance and the Unit Owner’s
name and address. The Association shall notify each insurance company that has issued an
insurance policy to the Association for the benefit of the Owners of the name and address of the
new Owner and request that the new Owner be made a named insured under such policy.
ARTICLE 21 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY
Section 21.1 Definitions: As used in this Article 21:
CONDOMINIUM DECLARATION - SOLERA PAGE 31
21.1.1 “Damage” shall mean all kinds of damage, whether of slight
degree or total destruction caused by casualty or an occurrence, but shall not include construction
defects, deterioration or wear and tear.
21.1.2 “Repair” shall mean restoring the damaged improvements
to substantially the condition they were in before they were damaged, with the Unit and the
Common Elements having substantially the same boundaries as before. Modifications to conform
to applicable governmental rules or available means of construction may be made.
21.1.3 “Emergency Work” shall mean work that the Board deems
reasonably necessary to avoid further damage or substantial diminution in value to the Building,
any Unit and/or the Common Elements and to protect the Owners from liability from the condition
of the site.
Section 21.2 Initial Board Determination. In the event of Damage to any portion of
the Condominium for which insurance is required by This Declaration, the Board shall promptly
take the following actions. In doing so, the Board shall obtain such advice from professionals
(such as engineers, architects, contractors, insurance consultants, lenders and attorneys) as the
Board deems advisable and shall consider the information then known to the Board:
21.2.1 Determine the nature and extent of the Damage to the
Condominium and loss to the Association and Unit Owners, together with an inventory of the
improvements and property directly affected thereby.
21.2.2 Obtain as reliable an estimate as possible of the cost and time
to Repair the damage, which estimate shall, if reasonably practicable, be based upon two or more
firm bids obtained from responsible contractors.
21.2.3 Determine the insurance proceeds that would be allocable to
the particular damaged Unit under Section 21.5 and reserves, if any, that will likely be available
to pay for the Damage.
21.2.4 Determine (i) the amount, if any, by which the estimated cost
of Repair is likely to exceed the expected insurance proceeds, the reserves available to Repair the
damage, other available funds of the Association, and the deductibles owed by Owners; and (ii)
the likely amount of the Assessments that would have to be made against each Unit if the excess
cost were to be paid as a Common Expense.
Section 21.3 Notice of Damage. The Board shall promptly provide each Owner and
Eligible Mortgagee, and the Investor if such Damage affects Residential Unit, with a written notice
summarizing the initial Board determinations made under Section 21.2, explaining any further
information needed by the Board to make a final decision on the cost and schedule for repairs. If
the Board determines that the Damage is substantial, the Board may call a special meeting to
consider whether to repair the Damage. If the Board fails to call such a special meeting, the
Investor or Eligible Mortgagee may request such a meeting. The Board may, but is not required
to, call such a meeting in other circumstances.
CONDOMINIUM DECLARATION - SOLERA PAGE 32
Section 21.4 Execution of Repairs.
21.4.1 The Association or Owner(s) shall use the available
insurance proceeds, reserves and other funds identified pursuant to Section 21.2.4 to promptly
repair any damaged portion of the Condominium that the Association or an Owner is responsible
to insure and to maintain or repair unless any Mortgage or related loan documents require
otherwise or:
21.4.1.1 The Condominium is terminated by vote of
the Unit Owners and with written consent of the Eligible Mortgagees and the Investor at a special
meeting called in accordance with Section 21.3 and taken in accordance with the termination
provisions of the Declaration and Act;
21.4.1.2 Repair would be illegal under any state or
local health or safety statute or ordinance; or
21.4.1.3 Owners holding 100% of the Voting Interest
in the Association vote not to Repair the Damage. In addition to the consent by the Owners
specified above, any election not to repair the damage or not to rebuild substantially in accordance
with the original plan will require (i) the approval of the Eligible Mortgagees holding a Mortgage
on a Unit that will be altered from the most recent plans and specifications used in the construction
or remodeling of the Condominium by the Repair or that will not be repaired and (ii) the approval
of the Investor.
21.4.2 The Board may enter into a written agreement with a
reputable financial institution or trust or escrow company to act as an insurance trustee to adjust
and settle any claim for casualty loss, or to collect the insurance proceeds and carry out the
provisions of this Article 21. The cost of Repair in excess of insurance proceeds, reserves, and
deductibles paid by Owners is a Common Expense. The Board may delegate some or all of its
authority to make Repairs and use insurance proceeds under this Section 21 to each of the Unit
Owners.
21.4.3 The Board may expend so much of the insurance proceeds
and Association funds as the Board deems reasonably necessary for Emergency Work (which
Emergency Work may include but is not necessarily limited to removal of the damaged
improvements and clearing, filling, and grading the land), and the remaining funds, if any, and the
property shall thereafter be held and distributed as provided in Section 21.5.
Section 21.5 Effect of Decision Not To Repair. If all of the damaged or destroyed
portions of the insured property are not repaired or replaced:
21.5.1 The insurance proceeds attributable to the damaged
Common Elements shall be used to restore the damaged area to a condition compatible with the
operation of the remainder of the Condominium;
21.5.2 The insurance proceeds attributable to Units and Limited
Common Elements that are not fully repaired or replaced shall be distributed to the Owners of
CONDOMINIUM DECLARATION - SOLERA PAGE 33
those Units and the Owners of the Units to which those Limited Common Elements were allocated
or to Mortgagees, as their interests may appear; and
21.5.3 The remainder of the proceeds shall be distributed to all the
Unit Owners or Mortgagees, as their interests may appear, in proportion to their Common
Ownership Interests as of the date the damage occurred.
If the Unit Owners vote not to rebuild any Unit, that Unit’s allocated interests are automatically
reallocated upon the vote as if the Unit had been condemned under Article 22, and the Association
promptly shall prepare, execute, and record an amendment to this Declaration reflecting the
reallocations.
Notwithstanding the provisions of this section, Article 25 and RCW 64.34.268 shall govern the
distribution of insurance proceeds in the event the Condominium is terminated.
ARTICLE 22 CONDEMNATION
Section 22.1 Consequences of Condemnation; Notices. If any Unit or portion thereof
or the Common Elements or Limited Common Elements or any portion thereof is made the subject
matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired
by a condemning authority, notice of the proceeding or proposed acquisition shall promptly be
given by the Association to each Owner, Mortgagee and the Investor, and the provisions of this
Article shall apply.
Section 22.2 Power of Attorney. Each Owner appoints the Association as attorney-in-
fact for the purpose of representing the Owners in any proceedings, negotiations, settlements or
agreements regarding a condemnation of any part of the Condominium. Any proceeds from a
condemnation shall be paid to the Association for the benefit of affected Units and their
Mortgagees. Should the Association not act, based on their right to act pursuant to this section,
the affected Owners may individually or jointly act on their own behalf.
Section 22.3 Condemnation of a Unit. If a Unit is acquired by condemnation, or if part
of a Unit is acquired by condemnation leaving the Unit Owner with a remnant of a Unit which
may not practically or lawfully be used for any purpose permitted by this Declaration, the award
must compensate the Owner for the Owner’s Unit and its appurtenant interest in the Common
Elements, whether or not any Common Elements are acquired. The proceeds from the
condemnation of a Unit shall be paid to the Owner or Mortgagee of the Unit, as their interests may
appear. Upon condemnation of a Unit, unless the decree otherwise provides, that Unit’s Allocated
Interests are automatically reallocated to the remaining Units in proportion to the respective
Allocated Interests of those Units before the taking, and the Association shall promptly prepare,
execute, and record an amendment to this Declaration reflecting the reallocations. Any remnant
of a Unit remaining after part of a Unit is taken under this section is thereafter a Common Element.
In such event, the Association shall prepare an amendment to the Declaration that reflects the
revised Unit boundaries and is executed by the Unit Owners. The Association shall record an
amendment to the Map complying with the requirements of the Act necessary to show the revised
Unit boundaries.
CONDOMINIUM DECLARATION - SOLERA PAGE 34
Section 22.4 Condemnation of Part of a Unit. Except as provided in Section 22.3, if
part of a Unit is acquired by condemnation, the award must compensate the Unit Owner for the
reduction in value of the Unit and its appurtenant interest in the Common Elements, whether or
not any Common Elements are acquired. The proceeds from the condemnation awarded to the
Unit Owner shall be paid to the Owner or Mortgagees of the Unit, as their interests may appear.
Upon acquisition, unless the decree otherwise provides: (a) that Unit’s Allocated Interests are
reduced in proportion to the reduction in the size of the Unit; and (b) the portion of the Allocated
Interests divested from the partially acquired Unit are automatically reallocated to that Unit and
the remaining Units in proportion to the respective Allocated Interests of those Units before the
taking, with the partially acquired Unit participating in the reallocation on the basis of its reduced
Allocated Interests.
Section 22.5 Condemnation of Common Element or Limited Common Element. If
part of the Common Elements is acquired by condemnation, the portion of the award attributable
to the Common Elements taken shall be paid to the Owners based on their respective interests in
the Common Elements or to Mortgagees, as their interests may appear. Any portion of the award
attributable to the acquisition of a Limited Common Element must be equally divided among the
Owners of the Unit to which that Limited Common Element was allocated at the time of the
acquisition, or to lien holders, as their interests may appear. If the Board determines that a
particular Owner’s interest in the Common Elements will be diminished with respect to other
Owners, by the acquisition of a Common Element, the Declaration may be amended to adjust that
Owner’s Common Expense Liability allocation, or to remove the allocation of a Limited Common
Element to that Owner’s Unit, as the case may be.
Section 22.6 Reconstruction and Repair. Any reconstruction and repair necessitated
by condemnation shall be governed by the procedures specified in Article 21.
ARTICLE 23 PROCEDURES FOR SUBDIVIDING, COMBINING OR ALTERING
UNITS AND RELOCATING BOUNDARIES
Section 23.1 Subdivision or Combination of Units. No Unit may be subdivided into a
greater number of Units or Units combined into a lesser number of Units, whether by agreement,
legal proceedings or operation of law, except as provided in this Section 23.1.
23.1.1 An Owner desiring to subdivide a Unit or combine Units
must submit a written proposal to the Board, all Mortgagees of the affected Units and the Investor.
The proposal must include complete plans and specifications for accomplishing the subdivision or
combination and proposed amendments of this Declaration and the Map. The proposed
amendments must assign an identifying number to each resulting Unit, and reallocate the Allocated
Interests of the former Unit(s) to the new Unit(s) in a reasonable manner, provided however, that
the aggregate Voting Interest of the new Unit(s) shall not exceed the total Voting Interest of the
Unit(s) before the subdivision or combination.
23.1.2 If approved pursuant to Section 23.1.3, the amendments
must be executed by the Owner of the Unit(s) involved. The Owner of the Unit(s) to be subdivided
or combined shall bear all costs of the subdivision or combination.
CONDOMINIUM DECLARATION - SOLERA PAGE 35
23.1.3 A proposal to subdivide a Unit or combine Units requires
approval in writing by the Board, all Mortgagees of the Unit or Units to be subdivided or combined
and the Investor. As to any proposal to subdivide or combine a Unit, the Board must approve the
proposal within 60 days unless the proposal fails to comply with the Act or this Section 23.1 ,or
impairs the structural integrity or mechanical or electrical systems in the Condominium. The
failure of the Board to act upon a request within such period shall be deemed its disapproval
thereof.
Section 23.2 Alteration of Limited Common Elements. No Owner may alter the
Limited Common Elements allocated to the Owner’s Unit in any way except in accordance with
this Section 23.2.
23.2.1 Subject to the use restrictions and other restrictions of the
Governing Documents, an Owner may make any improvements or alterations to a Limited
Common Element allocated solely to such Owner’s Unit if those improvements do not (i)
adversely affect the structural integrity of the Building or the mechanical or electrical systems of
the Building, or other utility systems serving any other Unit; (ii) lessen the support of any portion
of the Condominium or (iii) impair any use or access rights that any other Owners have in the
Limited Common Element.
23.2.2 Except as provided in 23.2.1, an Owner may not materially
change the appearance of the Limited Common Elements without permission of the Association
pursuant to Section 23.2.3, all Owners to whom the Limited Common Element is allocated and
any other Owners that have the right to use the Limited Common Element.
23.2.3 Except for improvements or alterations under
Section 23.2.1, an Owner must submit a written request, including plans and specifications for the
proposed alteration or removal, to the Board. Such request requires approval in writing by the
Board, all Mortgagees of the Unit or Units to be altered and the Investor. The Board must approve
a request under this Section 23.2 within 60 days, unless the proposal fails to comply with the Act
or with this Declaration, or impairs the structural integrity or mechanical or electrical systems in
the Condominium. The failure of the Board to act upon a request within such period shall be
deemed its disapproval thereof.
Section 23.3 Relocation of Boundaries — Adjoining Units. The boundaries between
adjoining Units may not be relocated in any way except as provided in accordance with this Section
23.3.
23.3.1 Subject to the following provisions in this Section, the
Owners of adjoining Units may relocate the boundaries between their Units if the relocation will
not adversely affect the structural integrity or mechanical or electrical systems or lessen the support
of any portion of the Condominium.
23.3.2 The Owners desiring to relocate the boundary between the
Units must submit a written proposal to the Board, all Eligible Mortgagees of those Units and the
Investor. The proposal must include complete plans and specifications for accomplishing the
CONDOMINIUM DECLARATION - SOLERA PAGE 36
relocation and proposed amendments of this Declaration and the Map. The proposed amendments
must reallocate the Allocated Interests of the affected Units in a reasonable manner.
23.3.3 The Board must approve a request under this Section 23.3
within 30 days, unless the proposal fails to comply with the Act or this Section 23.3, impairs the
structural integrity or mechanical or electrical systems in the Condominium, or contains an
unreasonable reallocation of Allocated Interests. The failure of the Board to act upon a request
within such period shall be deemed disapproval thereof.
23.3.4 Upon approval by the Board, all Eligible Mortgagees and the
Investor, the Association shall prepare and record an amendment in accordance with RCW
64.90.285 that identifies the Units involved, states the reallocations, is executed by those Unit
Owners, contains words of conveyance between them, and is recorded in the name of the grantor
and the grantee. The Association shall record survey maps or plans complying with the
requirements of RCW 64.90.245 necessary to show the altered boundaries between adjoining Units
and their dimensions and identifying numbers.
23.3.5 The Owner or Owners benefited by a relocation of Unit
boundaries shall bear all costs associated therewith in proportion to the relative benefits to each
such Unit, and if there is more than one benefited Owner, all such costs shall be a joint and several
liability of each of such Owner.
23.3.6 Boundaries between Units and Common Elements may be
relocated to incorporate Common Elements within a Unit by an amendment to the Declaration
upon application to the Association by a Unit Owner’ of the Unit who proposes to relocate such
boundary. The amendment may be approved only if the Unit Owner of such Unit, the Investor
and 60% of the Voting Interests agree.
ARTICLE 24 AMENDMENT OF DECLARATION, MAP, ARTICLES OR BYLAWS
Section 24.1 Procedures. Upon the receipt of any necessary consent under this Article
24, an amendment to the Declaration or the Map will become effective when it is recorded or filed
in the real estate records in the county in which the Condominium is located. The amendment
shall be indexed in the name of the Condominium and shall contain a cross-reference by recording
number to the Declaration and each previously recorded amendment thereto. No action to
challenge the validity of an amendment to the Governing Documents adopted by the Association
pursuant to this Article 24 may be brought more than one year after the amendment is recorded.
An amendment to the Articles shall be effective upon filing the amendment with the Secretary of
State. An amendment to the Bylaws shall be effective upon adoption. Amendments shall be
prepared, executed, recorded and certified on behalf of the Association by any officer of the
Association designated for that purpose or, in the absence of designation, by the president of the
Association.
Section 24.2 Consent Required. The consents of Owners, Mortgagees and Investor
required for adoption of amendments to the Declaration, the Map, the Articles and the Bylaws are
as follows:
CONDOMINIUM DECLARATION - SOLERA PAGE 37
24.2.1 Except as provided in Article 22 relating to condemnation of
the Property, an amendment to the Declaration, the Map, the Articles or the Bylaws that adversely
and materially affects the rights of any Unit Owner shall require the unanimous consent of the Unit
Owners and the Investor; provided, that if any such amendments adversely affect the rights of
Mortgagees, all Eligible Mortgagees must also consent.
24.2.2 All requests to Eligible Mortgagees and the Investor shall be
in writing and delivered by certified or registered mail, return receipt requested. Consent of an
Eligible Mortgagee is deemed granted if a refusal to consent in a record is not received by the
Association within sixty (60) days after the Association delivers notice of the proposed
amendment. The failure of the Investor to respond shall be deemed disapproval thereof.
24.2.3 No amendment to any provision in the Declaration, Articles
or Bylaws may restrict, eliminate or modify (i) any right of a director or officer of the Association
to indemnification, or (ii) any limitation of liability of such Person, as to conduct that occurred
prior to the amendment. Any current or former director or officer affected by such amendment is
a third-party beneficiary of this provision and entitled to enforce it.
ARTICLE 25 TERMINATION OF CONDOMINIUM
Section 25.1 Action Required. Except in the case of the taking of all Units by
condemnation or judicial termination of the Condominium pursuant to the Act, the Condominium
may be terminated only by agreement of all Owners of Units, all Eligible Mortgagees and the
Investor. All requests for consent to Eligible Mortgagees and the Investor shall be in writing and
delivered by certified or registered mail, return receipt requested. An Eligible Mortgagee or
Investor who receives a written request to consent to a termination and does not submit to the
requesting party a response within 60 days shall be deemed to have consented to such request,
provided the request was delivered to the address in the Association’s records by certified or
registered mail, return receipt requested.
Section 25.2 Act Governs. The provisions of the Act relating to termination of a
condominium contained in RCW 64.90.290, as it may be amended, shall govern the termination
of the Condominium, including, but not limited to, the disposition of the real property in the
Condominium, the distribution of insurance proceeds upon termination, and the distribution of
proceeds from the sale of that real property.
ARTICLE 26 NOTICES
Section 26.1 Form and Delivery of Notice. Unless provided otherwise in this
Declaration, all notices given under the provisions of this Declaration or the Bylaws or rules or
regulations of the Association shall be in writing and may be delivered either personally or by
mail. If delivery is made by mail, the notice shall be deemed to have been delivered upon being
deposited in the United States mail, first class, postage prepaid, addressed to the Person entitled to
such notice at the most recent address known to the Board, the Owner or the Mortgagee. Notice
to the Owner of any Unit shall be sufficient if mailed to the Unit if no other mailing address has
been given in writing to the Board. Notices to the Board shall be given to the president or secretary
CONDOMINIUM DECLARATION - SOLERA PAGE 38
of the Association. Notices to the Declarant shall be given at the following address, or such other
address as Declarant may specify in written notice to the Board or the Owners:
Solera Manager, LLC
10900 NE 8th Street, #1200
Bellevue, Washington 98004
Attention: David B. Ratliff
With a copy to:
Hillis Clark Martin & Peterson
Attn: Zac DeLap
999 Third Ave, Suite 4600
Seattle, WA 98104
Section 26.2 Notices to Mortgagees. An Eligible Mortgagee shall be entitled to receive
timely written notice of:
26.2.1 Any proposed amendment of the Declaration or Map;
26.2.2 Any proposed termination of condominium status or transfer
of any part of the Common Elements;
26.2.3 Any condemnation loss or casualty loss that affects a
material portion of the Condominium or that affects the Unit on which the Mortgagee has
Mortgage;
26.2.4 Any delinquency that has continued for 60 days in the
payment of Assessments or charges owed by an Owner of a Unit;
26.2.5 Any lapse, cancellation, or material modification of any
insurance policy or fidelity bond maintained by the Association, or notice regarding any such
action that is intended or threatened; and;
26.2.6 Any proposed action that would require the consent of the
Eligible Mortgagee or of a specified percentage of Eligible Mortgagees under this Declaration or
the Act.
An Eligible Mortgagee’s request to receive notices must be delivered to the Association
and must state the name and address of the Mortgagee and the Identifying Number or address of
the Unit on which it holds (or insures or guarantees) a Mortgage. An Eligible Mortgagee who
receives a written request to consent to an action and does not submit to the requesting party a
response within 60 days shall be deemed to have consented to such request, provided the request
was delivered to the address in the Association’s records by certified or registered mail, return
receipt requested.
CONDOMINIUM DECLARATION - SOLERA PAGE 39
Section 26.3 Investor Notice. The Investor shall be entitled to receive: (1) the same
notices as an Eligible Mortgagee hereunder; (2) the budgets as proposed, ratified and/or
supplement under Section 16.3 or Section 16.4 hereof; (3) any notice provided to an Owner under
Section 21.3 hereof; and (4) any notices required to be delivered to the Investor.
Notices to the Investor shall be given at the following address, or such other address as the
Investor may specify in written notice to the Board or the Owners:
BF Solera Affordable, LLC
c/o Boston Financial Investment Management, LP
Attention: Asset Management – Solera Apartments
101 Arch Street, 13th Floor
Boston, MA 02110
With a copy to:
Holland & Knight LLP
10 Saint James Avenue, 12th Floor
Boston, MA 02116
Attn: Kristen Cassetta, Esq.
An Investor’s request to receive notices must be delivered to the Association and
must state the Identifying Number or address of the Unit on which it holds an interest. An Investor
who receives a written request to consent to an action and does not submit to the requesting party
a response within 60 days shall be deemed to have consented to such request, provided the request
was delivered to the address in the Association’s records by certified or registered mail, return
receipt requested.
26.3.1 Investor and Eligible Mortgagee Cure Rights. The
Investor and any Eligible Mortgagee shall have the right, but not the obligation, to cure any default
by the Unit Owner of Residential Unit under this Declaration and any such cure by the Investor or
Eligible Mortgagee shall be treated as if it were performed by the Unit Owner of Residential Unit.
The cure periods afforded to the Investor and any Eligible Mortgagee shall be no less than thirty
(30) days for a monetary default and no less than sixty (60) days for any non-monetary default;
provided, however, that in the event a default is not susceptible to being cured within the applicable
cure period the Investor or Eligible Mortgagee shall have such additional time as is reasonably
necessary to cure the default provided the Investor or Eligible Mortgagee has commenced to cure
such default and is diligently and continuously proceeding to cure such default.
ARTICLE 27 MORTGAGEE PROTECTION
Section 27.1 Required Mortgagee Consents. The Board shall provide notice to all
Eligible Mortgagees of the following:
27.1.1 The allocation or re-allocation of any Common Element into
a Limited Common Element;
CONDOMINIUM DECLARATION - SOLERA PAGE 40
27.1.2 The allocation or re-allocation of any Limited Common
Element into a Common Element;
27.1.3 The conveyance or subjection to a security interest of any
portion of the Common Elements;
27.1.4 The alteration of the Voting Interest, the Common
Ownership Interest or the Common Expense Liability of any Unit;
27.1.5 The decision by the Association, Board or Owners to cause
additional capital improvements (not including initial construction of the Building) to be
constructed within the Common Elements pursuant to Section 13.6.2 if the reasonably anticipated
cost to complete such capital improvements, when taken in the aggregate with the known or
reasonably anticipated cost to complete all other such capital improvements to the Common
Elements commenced in the same calendar year, is expected to exceed $50,000 in the aggregate;
27.1.6 The creation of new units, relocation or alteration of the
boundaries of any Unit, the subdivision of any Unit, the combination in any manner of two or more
Units;
27.1.7 The amendment of this Declaration, the Map, the Articles,
or the Bylaws;
27.1.8 Any agreement to terminate the Condominium;
27.1.9 Any decision made pursuant to Section 21.4 not to repair any
damage or to delegate the authority of the Board with respect thereto to any Owner; and
27.1.10 The grant or alteration of any declarant rights or special
declarant rights;
In addition to the notices by the Owners specified above, any of the actions set forth in this Section
27.1 will require the approval of 100% of the Eligible Mortgagees with first Mortgages on the
Units.
ARTICLE 28 ASSIGNMENT BY DECLARANT
The Declarant reserves the right to assign, transfer, sell, lease, or rent all or a portion of the
property then owned by it and reserves the right to assign all or any of its rights, duties and
obligations created under this Declaration.
[Signature page follows]
CONDOMINIUM DECLARATION - SOLERA PAGE 41
DECLARANT’S SIGNATURE PAGE FOR CONDOMINIUM DECLARATION
Executed as of , 2024
Solera Manager, LLC,
a Washington limited liability company
By:
Name: David B. Ratliff
Its: Managing Member
STATE OF WASHINGTON } ss.
COUNTY OF
This record was acknowledged before me on , 2024, by David B. Ratliff as
Managing Member of Solera Manager, LLC, a Washington limited liability company.
[Stamp Below]
Signature
NOTARY PUBLIC in and for the State of Washington
My Commission Expires
CONDOMINIUM DECLARATION - SOLERA PAGE 42
SCHEDULE A
SOLERA CONDOMINIUM
DESCRIPTION OF REAL ESTATE SUBJECT TO DECLARATION
[TO BE ADDED]
CONDOMINIUM DECLARATION - SOLERA PAGE 43
SCHEDULE B
SOLERA CONDOMINIUM
UNIT DATA AND ALLOCATED INTERESTS
Unit No.
Floor
Area1 Level of
Building
Common
Ownership Interest
and Common
Expense Liability
Voting
Interest
1
Residential Unit
1-7 1/3 3/5
2
Garage Unit
P1, 1, 2 1/3 1/5
3
Retail Unit
1, 2 1/3 1/5
100% 100%
1 Total finished floor area of the Levels of the Building enclosed within each Unit (excluding the surface of the roof).
Floor Area is approximate and may not match the interior area of a Unit when measured.
CONDOMINIUM DECLARATION - SOLERA PAGE 44
SCHEDULE C
SOLERA CONDOMINIUM
DESCRIPTION OF LIMITED COMMON ELEMENTS
[TO BE ADDED]
CONDOMINIUM DECLARATION - SOLERA PAGE 45
SCHEDULE D
SOLERA CONDOMINIUM
USE RESTRICTIONS ON RETAIL UNIT
The Retail Unit shall not be used, or suffer or permit the use of, or suffer or permit anything to be
done in or anything to be brought into or kept in, the Retail Unit or any part thereof (i) for any unlawful
purposes or in any unlawful manner, or (ii) which, shall in any way (a) impair or tend to impair the
appearance or reputation of the Retail Unit or the Condominium, or (b) occasion discomfort, inconvenience
or annoyance to, any of the other Owners or occupants of the Condominium. The Retail Unit may be used
for any use authorized by the Declaration, however, excluding in all events any use described below:
• any manufacturing, distilling, refining, smelting, agricultural or mining operation, including farming
(within the meaning of Code Section 2032A(e)(5)(A) or (B);
• any dumping, disposing, incineration or reduction of garbage;
• any bowling alley or skating rink;
• any mortuary or funeral home;
• any establishment manufacturing, selling or exhibiting drug-related paraphernalia;
• any establishment that exhibits, either live or by other means to any degree, nude or partially clothed
dancers or wait staff;
• any type of sexually oriented business, adult entertainment or adult bookstore, such as any facility
selling or displaying adult or pornographic books, literature, recordings or materials in any medium, or
any facility providing adult entertainment or other adult services (materials or activities shall be
considered “adult” or “pornographic” if the same are not available for sale or rental to children under
the age of eighteen years because they explicitly deal with or depict human sexuality);
• any gambling facility or operation, including, but not limited to: off-track or sports betting parlor; table
games such as blackjack or poker; slot machines, video poker/blackjack/keno machines or similar
devices; bingo hall; or other games of chance;
• any auto repair facility;
• the sale of any firearms, ammunition or weapons, or a shooting gallery of any type;
• any tattoo parlor or any establishment that performs tattooing;
• any bar, tavern, liquor store or other establishment selling alcoholic beverages for consumption on or
off‑premises; provided, however, that a restaurant or café deriving at least 80% of its income from the
sale of food and non-alcoholic beverages may operate in the retail space and serve alcohol provided
that the retail space tenant, and not the Partnership, is the applicant for any required liquor license;
• pawn shops, pawn brokers, car title lenders (which for purposes of this limitation, will not include auto
loans made by a state or federally chartered bank or thrift), payday loans, or any similar lending activity
or operation;
CONDOMINIUM DECLARATION - SOLERA PAGE 46
• check cashing services, except as an incidental part of another primary business or incident to the
banking activities of a state or federally chartered bank or thrift;
• any convenience store;
• any on-premises dry cleaner (except that a dry cleaner that performs all dry cleaning off site shall be
permitted);
• escort services, dating services or similar matchmaking or companion services;
• bail bond services of any kind, or any activities of a bail bond agent;
• any business which produces environmental hazards regulated under applicable environmental laws;
• any parole, juvenile detention or similar service;
• any piercing service;
• any type of flea market, amusement or video arcade, pool or billiard hall, night club, discotheque or
dance hall;
• any business that serves food before 5:00 am or after midnight;
• the sale, distribution, marketing or production of marijuana, cannabis or any constituent cannabinoids
such as THC (this limitation applies broadly, regardless of whether the activity is conducted by
collectives, collective caregivers, co-ops, growers or any other entity or organization);
• the rental to others of residential rental property (as defined in Code Section 168(e)(2)(A);
• the operation of any private or commercial golf course, country club, massage parlor, hot tub facility
or suntan facility, any racetrack or other facility used for gambling, any store the principal business of
which is the sale of alcoholic beverages for consumption off premises, or any check cashing store;
• the development or holding of intangibles for sale or license;
• the operation of any bank, credit union, or other financial institution;
• the sale of fireworks, except as an incidental part of another primary business;
• debt collection activities, debt consolidation services, credit repair or restoration activities, except as
such activities are incidental to banking activities conducted by a state or federally chartered bank or
thrift;
• business based predominately on inbound or outbound telemarketing activities, except as such calls are
an incidental part of another primary business; and
• multi-level marketing activities, the sale of multi-level business opportunities or network marketing
activities.