HomeMy WebLinkAboutL_Declaration_Of_Covenants_Conditions_Restrictions_And_Reservations_250916_v2
AFTER RECORDING RETURN TO:
SSHI LLC
11241 SLATER AVE NE, SUITE 200
KIRKLAND, WA 98033
ATTN: HOA DEPARTMENT
DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS AND RESTRICTIONS
FOR
TOWNS ON 12TH
Grantor: SSHI LLC, a Delaware limited liability company dba
D.R. Horton
Grantee: Towns on 12th Homeowners Association, a Washington
nonprofit corporation
Abbreviated Legal Description: PTN SE QTR OF SE QTR OF SEC 4-23N-5E, AND LTS
1-5 CITY OF RENTON LLA NO. LUA-04-106-LLA,
REC# 20050822900009, King County, Washington
Assessor’s Property Tax Parcel Nos.: 042305-9063-09, 042305-9067-05, 042305-9099-07,
042305-9100-04, 042305-9101-03, 042305-9140-06,
042305-9247-08
THE PLAT FOR THIS COMMUNITY WAS FILED WITH THE AUDITOR OF KING COUNTY,
WASHINGTON UNDER AUDITOR’S FILE NO _______________.
3THIS COMMON INTEREST COMMUNITY IS SUBJECT TO THE WASHINGTON UNIFORM
COMMON INTEREST OWNERSHIP ACT (CHAPTER 64.90 RCW)
DECLARATION – TOWNS ON 12TH PAGE -1-
TABLE OF CONTENTS
Page
ARTICLE 1 CONSTRUCTION AND VALIDITY OF DECLARATION....................................... 2
ARTICLE 2 DEFINITIONS .............................................................................................................. 2
ARTICLE 3 NAME OF COMMUNITY ........................................................................................... 8
ARTICLE 4 DESCRIPTION OF REAL ESTATE AND BUILDINGS ........................................... 8
ARTICLE 5 DESCRIPTION OF UNITS .......................................................................................... 8
ARTICLE 6 ALLOCATED INTERESTS ........................................................................................ 8
ARTICLE 7 COMMON ELEMENTS .............................................................................................. 9
ARTICLE 8 LIMITED COMMON ELEMENTS ........................................................................... 11
ARTICLE 9 EASEMENTS ............................................................................................................. 11
ARTICLE 10 USE RESTRICTIONS AND CONDUCT RESTRICTIONS ................................... 18
ARTICLE 11 MAINTENANCE, CONSTRUCTION AND ALTERATIONS .............................. 25
ARTICLE 12 SPECIAL DECLARANT RIGHTS .......................................................................... 31
ARTICLE 13 OWNERS ASSOCIATION ...................................................................................... 35
ARTICLE 14 TRANSITION TO OWNER CONTROL ................................................................. 37
ARTICLE 15 THE BOARD OF DIRECTORS .............................................................................. 38
ARTICLE 16 BUDGET AND ASSESSMENTS ............................................................................ 40
ARTICLE 17 LIEN AND COLLECTION OF ASSESSMENTS ................................................... 44
ARTICLE 18 ENFORCEMENT OF GOVERNING DOCUMENTS ............................................ 47
ARTICLE 19 TORT AND CONTRACT LIABILITY ................................................................... 49
ARTICLE 20 INSURANCE ............................................................................................................ 50
ARTICLE 21 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY .................................... 53
ARTICLE 22 CONDEMNATION .................................................................................................. 55
ARTICLE 23 PROCEDURES FOR SUBDIVIDING OR COMBINING UNITS ......................... 57
ARTICLE 24 AMENDMENT OF DECLARATION OR MAP ..................................................... 57
ARTICLE 25 TERMINATION OF COMMUNITY ....................................................................... 59
ARTICLE 26 NOTICES .................................................................................................................. 59
ARTICLE 27 ASSIGNMENT BY DECLARANT ......................................................................... 60
ARTICLE 28 DISPUTE RESOLUTION ........................................................................................ 60
ARTICLE 29 BOARD MEMBER REPORTING ........................................................................... 62
SCHEDULES: A Description of Real Estate Subject to Declaration
B Schedule of Maintenance Responsibilities
DECLARATION – TOWNS ON 12TH PAGE -2-
DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS AND RESTRICTIONS
FOR
TOWNS ON 12TH
ARTICLE 1 CONSTRUCTION AND VALIDITY OF DECLARATION
Section 1.1 Purpose. Declarant has recorded this Declaration to create a residential
community of the real estate described in Schedule A, to enhance the value of the Community, to
establish a system for governance of the Community, and to protect the interests of Persons having
any right, title or interest to real estate in the Community, pursuant to the CIC Act. This Declaration
shall be effective as of the date that it is recorded.
Section 1.2 Construction. The creation and operation of the Community are governed
by this Declaration, the Map and the CIC Act. In the event a provision of the Declaration is
inconsistent with a provision of the CIC Act, the provisions of the CIC Act will prevail. In the event
a provision of the Declaration is rendered unenforceable or superseded by any federal, state, local
statute, ordinance, rule, regulation, or other law now or hereafter in effect pertaining to Community
(collectively “Applicable Law”), the Applicable Law will prevail. In the event of a conflict between
a provision of this Declaration and the Bylaws, the Declaration will prevail except to the extent the
Declaration is inconsistent with the CIC Act. An insignificant failure of the Declaration or the Map,
or any amendment thereto, to comply with the CIC Act will not, however, invalidate the creation of
the Community, nor will it make unmarketable or otherwise affect the title to a Unit and its Common
Ownership Interest.
Section 1.3 Covenants Running with the Land. This Declaration shall operate as
servitude and shall bind Declarant, the Association, all Owners and any other Persons having any
right, title or interest in the real estate subject to this Declaration, or any portion 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 CIC Act.
Section 1.5 Percentage of Owners or Mortgagees. For purposes of determining the
percentage of Owners, Mortgagees or voting power necessary to approve a proposed decision or
course of action where an Owner owns, or a Mortgagee holds Mortgages on, more than one Unit, an
Owner shall be deemed a separate Owner for each Unit so owned, and a Mortgagee shall be deemed
a separate Mortgagee for each first Mortgage so held.
Section 1.6 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 CIC Act.
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 the
plural includes the singular. Masculine, feminine and neutral pronouns are used interchangeably.
DECLARATION – TOWNS ON 12TH PAGE -3-
“Allocated Interests” means the Common Ownership Interest, if any, as to any Common
Elements owned in common by the Unit Owners, the Common Expense Liability and the Voting
Interest allocated to each of the Units in the Community. The formulas used to determine the
Allocated Interests are set forth in Article 6.
“Arbitration Demand” is defined in Article 28.
“Architectural Control Committee” or “ACC” means any committee established or
designated by the Board for the purpose of carrying out some or all of the Board functions set forth
in Article 11.
“Articles” means Articles of Incorporation for the Association.
“Assessments” means 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” is defined in Section 13.1.
“Authorized Users” means the agents, servants, Tenants, family members, invitees, and
licensees of an Owner 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 and in
the Articles and the Bylaws.
“Books and Records of the Association” means the books and records that the Association
is required to maintain pursuant to RCW 64.90.495 of the CIC Act.
“Building Components” means those shared structural components of the Unit including
and associated with a Party Wall, and the foundation and other interior and exterior shared portions
of any Building as more particularly described in Articles 9 and 11 and may include attached garages
and related structures.
“Bylaws” means the bylaws of the Association as they may from time to time be amended.
“CIC Act” means the Washington Uniform Common Interest Ownership Act, Chapter 277,
Laws of 2018, codified as chapter 64.90 RCW, as it may be from time to time amended.
“City” means the City of Renton, Washington, a municipal corporation.
“Common Elements” means (i) any real estate, other than a Unit, within the Community
that is owned or leased by either (A) by the Association or, (B) in common by the Unit Owners, and
(ii) any other interests in real estate for the benefit of any Unit Owners that are subject to this
Declaration. The term includes the Limited Common Elements.
DECLARATION – TOWNS ON 12TH PAGE -4-
“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 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. The Common
Expense Liability may change if additional Units are added to the Community.
“Common Ownership Interest” means the undivided ownership interest in any Common
Elements that are owned in common by the Unit Owners, allocated to each Unit, as described in
Article 6. The Common Ownership Interest may change if additional Units are added to the
Community.
“Community” or “Property” means the Units and Common Elements created by this
Declaration and the Map, as they may be amended.
“Community-Wide Standard” means the standard of conduct, maintenance, or other
activity generally prevailing in the Community, or the minimum standards established by the Board
pursuant to any Rules adopted by the Board, whichever is the higher standard. Declarant shall
establish initially such standard which may contain both objective and subjective elements. The
Community-Wide Standard may evolve as development progresses and as the needs and desires
within the Community change.
“Control Termination Date” means the date that is the earlier of (i) 60 days after
Conveyance of 75% of the Units that may be created in the Community, including Units later created,
to Owners other than Declarant, (ii) two years after the last Conveyance or transfer of record of a
Unit except as security for a debt, (iii) two years after any Development Right to create Units was
last exercised, or (iv) the date on which Declarant records a Record terminating all rights to appoint
or remove any director or officer of the Association or any master association or to veto or approve
a proposed action of any Board or Association.
“Conveyance” means any transfer of the ownership of a Unit, including a transfer by deed
or by real estate contract and, with respect to a Unit created from a leasehold estate, a transfer by
lease or assignment thereof. Conveyance does not mean a transfer solely as security for a debt or
other obligation.
“County” means the County of King, in the State of Washington.
“Dealer” means a person who, together with such persons’ affiliates, owns or has a right to
acquire six or more units in the Community.
“Declarant” means SSHI LLC, a Delaware limited liability company dba D.R. Horton, and
its successors and assigns.
“Declaration” means this Declaration of Covenants, Conditions, Easements and
Restrictions for Towns on 12th as it may from time to time be amended.
DECLARATION – TOWNS ON 12TH PAGE -5-
“Development Right” means any right or combination of rights reserved in this Declaration,
or an amendment thereto, for the benefit of Declarant, or its successors or assigns to: (a) add real
estate or improvements to the Community; (b) create Units, Common Elements or Limited Common
Elements within any real estate initially included or subsequently added to the Community; (c)
subdivide or combine Units or convert Units into Common Elements; (d) withdraw real estate from
the Community; or (e) reallocate Limited Common Elements with respect to Units that have not been
conveyed by Declarant.
“Electronic Transmission” or “electronically transmitted” means relating to technology
having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities (a) not
directly involving the physical transfer of a Record in a Tangible Medium and (b) that may be
retained, retrieved, and reviewed by the sender and the recipient of the communication, and that may
be directly reproduced in a Tangible Medium by a sender and recipient.
“Eligible Mortgagee” means an “eligible mortgagee” as defined in the CIC Act.
“Entry Monuments” means any entry monuments, signs, landscaping, lighting and other
improvements, including water and electricity, installed by Declarant or Association to mark an entry
to the Community.
“Fannie Mae” means the Federal National Mortgage Association, a federally chartered
corporation.
"Fence Requirements" shall mean the requirements for fences as provided herein, as well
as any requirements included within the Rules adopted by the Board.
“Fire Lanes” means any areas within any public right-of-way, easement or on private
property that is designated for the use, travel, and parking of fire trucks and other firefighting or
emergency equipment.
“Foreclosure” means a forfeiture or judicial or non-judicial foreclosure of a Mortgage or a
deed in lieu thereof.
“Freddie Mac” means the Federal Home Loan Mortgage Corporation, a federally chartered
corporation.
“Governing Documents” means this Declaration, the Map, and the Articles, Bylaws, and
Rules of the Association, as they may be amended from time to time.
“Home” means a residence, which includes one or more shared Party Walls, and associated
improvements, located on and within a Unit.
“HUD” means the United States Department of Housing and Urban Development.
“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.
“Managing Agent” means the Person, if any, designated by the Board under Section 15.3.
DECLARATION – TOWNS ON 12TH PAGE -6-
“Master Association” means (a) a unit owners association that serves more than one
common interest community; or (b) an organization that holds a power delegated under RCW
64.90.300(1)(a) of the CIC Act.
“Map” or “Plat” means the plat for the Community known as Towns on 12th Unit Lot
Subdivision recorded under Auditor’s File Number __________________ (“Map” or “Plat”). The
Map includes any recorded amendments, corrections, and addenda thereto.
“Mortgage” means a recorded mortgage, deed of trust or real estate contract.
“Mortgagee” means any holder, insurer or guarantor of a Mortgage on a Unit.
“Notice and Opportunity to Be Heard” means the procedure described in Section 18.5.
“Owner” or “Unit Owner” means Declarant or other Person who owns 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.
“Party Wall” means one or more shared walls, and shared components, including but not
limited to wall board, insulation, rock wool, and framing within such walls, between two Homes on
adjacent Units as defined and described in Articles 9 and 11.
“Person” means a natural person, corporation, partnership, limited partnership, trust,
governmental agency or other legal entity.
“Qualified Financial Institution” means a bank, savings association, or credit union whose
deposits are insured by the federal government.
“RCW” means Revised Code of Washington.
“Record”, when used as a noun, means information inscribed on a Tangible Medium or
contained in an Electronic Transmission.
“Renton Municipal Code” or “RMC” means the municipal code for City of Renton,
Washington, a municipal corporation, as it may be from time to time be amended
“Rules” means the rules or regulations adopted by the Association, as they may be amended
from time to time.
“Special Declarant Rights” means all rights identified in ARTICLE 12 , together with any
right or combination of rights reserved in this Declaration for the benefit of Declarant to: (a) complete
improvements indicated on the Map, described in the Declaration or the public offering statements;
(b) exercise any Development Rights; (c) maintain sales offices, management offices, signs
advertising the Community and models; (d) use easements through the Common Elements for the
purpose of making improvements within the Community; (e) make the Community subject to a
master association; (f) merge or consolidate the Community with any other community of the same
type; (g) appoint or remove any director or officer of the Association or any master association, or
veto or approve a proposed action of any Board or Association; (h) control any construction, design
DECLARATION – TOWNS ON 12TH PAGE -7-
review, or aesthetic standards committee or process; (i) attend meetings of the Units Owners and,
except during an executive session, the Board; or (j) have access to the records of the Association to
the same extent as a Unit Owner.
“Specially Allocated Expenses” means those Common Expenses described in Section 16.6
of this Declaration on a basis other than Common Expense Liability.
"Street" shall mean any public or private road, drive lane or driveway lane (if located in a
public right of way or Common Elements), alley, or similar place or other thoroughfare either as
shown on the Map or Plat of the Property, however designated, or as so used as a part of the Common
Elements; but not any access-way designated on the Map or otherwise as a Limited Common Element
for the private use between specific Owners.
“Street Landscaping” means the street trees, grass, landscaping and vegetation (as
applicable) located within or along the streets in the Community.
“Street Lighting” means the lighting for streets within or adjacent to the Community.
“Structure” means any improvement on any Unit, including without limitation, any Home,
Party Wall, Building Component, building, garage, carport, porch, shed, greenhouse, deck, pool,
pool cover, curbing, fence, wall, rockery, antenna, dish or other receiving device.
“Tangible Medium” means a writing, copy of a writing, facsimile, or a physical
reproduction, each on paper or on other tangible material.
“Tenant” means an occupant of Unit other than the Unit Owner, or its personal guests,
family members, care givers or roommates. The term includes renters, lessees, tenants and
subtenants.
“Townhouse Unit” means three or more Units located within attached buildings with Homes
that share one or more Party Walls between the Units.
“Tract” means any of Tracts A, B, C, G, H, J, K, L, M. N, and O identified on the Map.
“Transition Date” means the date that is (i) 30 days after the Control Termination Date, or
(ii) in the absence of a Special Declarant Right to appoint or remove directors and officers or veto or
approve Board or Association actions, 60 days after the Conveyance of 75% of the Units that may
be created to Unit Owners other than a Declarant.
“Transition Meeting” means the Association meeting called after the Transition Date to
elect a new Board pursuant to RCW 64.90.415(4) of the CIC Act.
“Unit” means a physical portion of the Community designated for separate ownership, the
boundaries of which are shown on the Map, as amended. Each lot shown on the Map, as such Map
may be amended, is a Unit.
“VA” means the United States Veterans Administration.
DECLARATION – TOWNS ON 12TH PAGE -8-
“Voting Interest” means the proportionate number of votes in the Association allocated to
each Unit, as described in Section 6.4. The Voting Interest may change if additional Units are added
to the Community.
“Yard” means the outdoor area within the Unit and includes any fences installed by Declarant
or an Owner therein.
Section 2.2 Statutory Definitions. Some of the terms defined above are also defined in
the CIC Act. The definitions in the Declaration are not intended to limit or contradict the definitions
in the CIC Act. If there is any inconsistency or conflict, the definition in the CIC Act will prevail.
ARTICLE 3 NAME OF COMMUNITY
The name of the Community is Towns on 12th. The Community is a plat community, as that
term is defined in the CIC Act.
ARTICLE 4 DESCRIPTION OF REAL ESTATE AND BUILDINGS
Section 4.1 Description of Real Estate. The real estate subject to this Declaration is
described in Schedule A, as such Schedule may be amended consistent with this Declaration and the
CIC Act.
ARTICLE 5 DESCRIPTION OF UNITS
Section 5.1 Number and Identification of Units. There are up to 88 Units in the
Community. The Units are identifed as Unit 1-37 and 40-90. There are no Units 38 and 39. The
location and configuration of each Unit are shown on the Map and amendments thereto. Declarant
has the right to create a total of 88 Units in the Community and all Units within the Community have
shared Party Walls, Building Components, or building Structures.
ARTICLE 6 ALLOCATED INTERESTS
Section 6.1 Allocated Interests.
6.1.1 This Declaration allocates certain interests in the Community to each Unit.
Those interests are: a Common Ownership Interest, a Common Expense Liability and a
Voting Interest. The formula used for allocating these interests are set forth in Section 6.2.
The allocation of these interests to each Unit can only be changed 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.
6.1.2 Declarant shall have the right to recalculate the Allocated Interests and amend
the Declaration and the Map if the Allocated Interests are incorrect for any reason, including
changes in the data used to calculate the Allocated Interests, changes in Unit boundaries, the
combination or subdivision of Units, or clerical errors in the Map or Declaration.
DECLARATION – TOWNS ON 12TH PAGE -9-
Section 6.2 Common Ownership Interest. The Common Ownership Interest of each
Unit is equal to the fraction, the numerator of which is the Unit, and the denominator of which is the
total number of Units in the Community. The formula for allocating the Common Ownership
Interests is: equally among the Units.
Section 6.3 Common Expense Liability. The Common Expense Liability of each Unit
is equal to the fraction, the numerator of which is the Unit, and the denominator of which is the total
number of Units in the Community. Except for Specially Allocated Expenses, the Common
Expenses are allocated to the Units according to the Common Expense Liability, the formula for
which is: equally among the Units. Specially Allocated Expenses are allocated according to Section
16.6.
Section 6.4 Voting Interest. The Voting Interest of each Unit is equal to the fraction,
the numerator of which is the Unit, and the denominator of which is the total number of Units in the
Community. The formula for allocating votes to the Units is: equally among the Units.
ARTICLE 7 COMMON ELEMENTS
Section 7.1 Description. The Common Elements include, without limitation, the
following portions of the Community, to the extent applicable: Tracts A and B (Access and Utilities),
Tract C (Community Parking), , , Tract J (Storm Drainage and Open Space), Tract H, K and L
(Critical Area and Steep Slopes), , Tracts G, M, N and O (Open Space), and any private Streets,
planter strips, street signs and streetlights (unless maintained by the City or public utility), sidewalks,
landscaping, Entry Monuments, if any, recreational facilities, mail kiosks, and common utility
systems. Declarant may add or subtract from the Common Elements during the Development Period
by amendment to this Declaration. If the Common Elements shown on the Map are different from
those described herein, the Common Elements described on such Map shall be deemed to be the
Common Elements unless this Declaration has been amended or modified and states that such
amendment or modification changes the Common Elements shown on the Map.
Section 7.2 Use of Common Elements. Except as otherwise stated in this Declaration,
no Owner may alter any Common Element or construct or remove anything in or from any Common
Element except with the prior written consent of the Board. The right to use the Common Elements,
including the Limited Common Elements, shall be governed by the provisions of the CIC Act and
the Governing Documents. If any portion of the Property is withdrawn from the Community, then
the Owners in other portions of the Community will have no right to use any portion of the property
withdrawn. In accordance with Section 10.2.2, no parking shall be permitted upon any Common
Elements, except in designated parking areas.
Section 7.3 Critical Area and Tree Retention Tracts H, K and L are designated as
Critical Areas including steep slopes, wetlands and tree retention areas (collectively “Critical Area”)
as set forth on the Plat or amendments thereto. The development and use of Critical Area is restricted
by the terms of the plat and any amendments thereto. The Owners by their acceptance of a deed to
their Unit acknowledge the importance of these critical areas located within the Community and
acknowledge there are restrictions concerning the use of, planting and tree removal and protective
fencing within or surrounding the Critical Area as provided in the Map, Rules of the Association or
other governmental restrictions regarding tree preservation and use restrictions related to this
protected area. No Owner or the Association shall cause or permit any clearing, excavation, building,
or fill within the Critical Area. Only dead, dying, diseased or hazardous trees may be removed,
DECLARATION – TOWNS ON 12TH PAGE -10-
subject to an approved arborist report or risk assessment and only with the appproval of the City and
the Board, and subject to any applicable critical area covenants. Removal of the drainage obstructions
may be permitted with the approval of the City. As a result of its protected status, Tracts H, K and
L may be subject to various periodic maintenance, monitoring and reporting requirements in
accordance with a program, if any, approved by the City. The Association shall be responsible for
the basic and routine maintenance of the Critical Area, including any native vegetation, trees, fencing
and signage surrounding or within Tracts H, K and L, in accordance with any Critical Area covenant,
if any, restrictions provided in the Map, in the Association Rules, or restrictions imposed by any
approved maintenance plan on file with the City. Should the Association fail to adequately maintain
the Critical Area, surrounding fencing or signage, the City has the right but not the obligation to
perform said maintinance and charge back the expense of such work to the Owners.
Section 7.4 Critical Area Building Setback. The city requires a 15-foot Building
Setback Boundary Line (BSBL) from the edge of the Critical Area and/or Buffer as depicted on the
face of the Plat Map. No structures are permitted to be constructed within the BSBL Setback except
the required critical area fencing and signage. The residence on the Property will be constructed
outside of the BSBL.
Section 7.5 Obstruction of Streets Prohibited. Parking shall not be permitted anywhere
within the Common Element Tracts, specifically not upon Tracts A and B, or where there are posted
“No Parking” or “Fire Access” signage. The purpose of this restriction is to provide adequate road
width for the access of emergency vehicles. Obstruction of a Street, the emergency acccess
hammerhead turnaround or designated fire lane by a parked vehicle or any other object is prohibited
and constitutes a traffic hazard as defined in state law and an immediate hazard to life and property
and such vehicle shall be subject to towing at the Owner’s expense.
Section 7.6 Conveyance or Encumbrance of Common Elements. Any conveyance,
encumbrance, judicial sale, or other transfer (voluntary or involuntary) by a Unit Owner of its interest
in the Common Elements shall be void unless the Unit to which that interest is allocated is also
transferred. The Association may not convey, or subject to a security interest any portion of the
Common Elements unless Owners of Units to which at least 80% of the Voting Interests in the
Association are allocated, including 80% of the votes allocated to Units not owned by Declarant,
agree to that action. All Owners of Units to which any Limited Common Element is allocated must,
however, agree in order to convey that Limited Common Element or subject it to a security interest.
Any agreement to convey Common Elements or subject them to a security interest must be evidenced
by the execution of an agreement, or ramifications of an agreement, in the same manner as a deed,
by the requisite number of Unit Owners. The agreement must specify a date after which it will be
void unless recorded before that date. The agreement and all ratifications of the agreement must be
recorded in every county in which a portion of the Community is located and will only be effective
upon recordation. Common Elements may be reallocated as Limited Common Elements at the
request of an Owner subject to the provisions of RCW 64.90.240. Per RCW 64.90.513 of the CIC
Act, installation of an electric vehicle charging station upon the Common Elements shall not require
any reallocation of interests but shall be subject to approval, design review and applicable Rules of
the Association.
DECLARATION – TOWNS ON 12TH PAGE -11-
ARTICLE 8 LIMITED COMMON ELEMENTS
Section 8.1 Description and Allocation of Limited Common Elements. The following
portions of the Common Elements are Limited Common Elements: Party Walls and Building
Components.
8.1.1 Party Walls and Building Components. The Party Walls and Building
Components between Units are Limited Common Elements for the exclusive use of the
benefited Owners of a Building who share such Party Walls and the related Building
Components. In addition, these are subject to various easements for maintenance and
utilities. The maintenance, repair, improvements and replacement of the Party Walls and
Building Components shall be the responsibility of the Association as provided in Sections
11.1, 11.1.1 and 11.2.
Section 8.2 Change in Status of Common Elements. Except upon exercise of the
Development Rights of Declarant, no Common Element may be reallocated as a Limited Common
Element, and no Common Element or Limited Common Element may be incorporated into an
existing Unit without the approval of Owners of Units holding 67% of the Voting Interest in the
Association, including the Owner of the Unit to which the Limited Common Element will be
allocated or incorporated. Such reallocation or incorporation shall be reflected in an amendment to
the Declaration and the Map.
Section 8.3 Reallocation Between Units. An allocation of a Limited Common Element
may not be altered without the consent of the Owners of the Units from which and to which the
Limited Common Element is allocated. Except in regard to the Development Rights of Declarant, a
Limited Common Element may be reallocated between Units only with the approval of the Board
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 Board shall approve the request of the Owner or
Owners under this Section 8.3 within 30 days, unless the reallocation does not comply with RCW
64.90.240 of the CIC Act or the Declaration. The failure of the Board to act upon a request within
such period shall be deemed approval thereof. The amendment shall be recorded in the names of the
parties and of the Community.
Section 8.4 Right to Use 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. The right to use the Limited Common Element extends to the Owner’s Authorized Users
but is governed by the provisions of the CIC Act and the Governing Documents.
ARTICLE 9 EASEMENTS
Section 9.1 Unit Owners. Subject to the Governing Documents and to the Association’s
rights to regulate the use, maintenance, repair, replacement and modification of the Common
Elements, and convey or encumber the Common Elements, each Unit Owner has (i) an easement in
and through the Common Elements for access to its Units and (ii) a right to use the Common
Elements that are not Limited Common Elements for the purposes for which the Common Elements
were intended. The foregoing easement shall terminate upon the termination of this Community
pursuant to Article 25 of this Declaration.
DECLARATION – TOWNS ON 12TH PAGE -12-
Section 9.2 Easement for Party Walls and Building Components. There are up to 88
Townhouse Units within the Community each of which has one or more Party Walls and associated
Building Components between the Units. Foundation piers, floors, beams, and other structural
members in common which are built as part of the original construction, and are placed upon or
straddle the boundary line between adjacent Units and actually support or protect adjacent Units shall
be regarded and treated as part of the Party Wall. The Units may also share the following exterior
and structural components of the Building: exterior paint, exterior caulk, roof, gutters, roof drain
systems, downspouts, flashings, siding, exterior trim, exterior electrical fixtures, foundation,
driveways, fencing, walls, walkways, porches, exterior walls, and other similar exterior components
of the Homes. The Party Wall and the foregoing shared exterior and other structural components are
collectively referred to in this Declaration as “Building Components.” Building Components do not
include windows, doors, locks, garage doors, plumbing or electrical wiring or systems, and similar
items that serve a single Unit or Home. There shall be a five-foot wide easement over the adjoining
Unit (a total of 10 feet between Units) for the benefit of each adjoining Owner who shares a Party
Wall or other Building Components as shown on the Plat and for the Association to perform
inspections, routine maintenance, repair and replacement to ensure the Units, including Party Walls
and Building Components, and each building is maintained in accordance with the Community-Wide
Standard.
Section 9.3 Driveway Maintenance Easements. Certain Units may have driveways that
abut or are close to the boundary line of the adjacent Unit or that are shared driveways. Each Unit
that has any portion of a driveway within one foot of the boundary line of an adjacent Unit has an
easement over and across that portion of the adjacent Unit as necessary for maintaining, repairing or
replacing the driveway on the benefited Unit and for the benefit of the Association to complete
routine maintenance obligations for the driveways and other exterior Building Components. If an
Owner or the Association, in connection with entry upon a Unit pursuant to its rights set forth in this
Section 9.3, disturbs or damages any improvements on a Unit, the Owner or the Association,
respectively, must repair any damage to the adjoining Unit and must restore the adjoining Unit to a
condition similar to that existed immediately before use of the adjoining Unit.
Section 9.4 Easement for Encroachments. To the extent not provided by the definition
of “Unit” in the Declaration and in the CIC Act, each Unit and all Common Elements have an
easement over all adjoining Units and Common Elements for the purpose of accommodating any
present or future encroachment overhang or intrusion of (i) eaves, bay windows, gutters, downspouts,
utility meters, vents and other similar portions of the Owner’s Home, or (ii) any encroachment caused
by the construction, reconstruction or repair of the improvements, or the natural settlement, shifting,
or movement of the improvements or land. Such easements shall exist so long as the encroachments
exist or the Unit Owner has the right to cause them to be replaced, provided, however, no valid
easement shall exist if the encroachment was caused willfully by the Owner. If any Structure within
a Unit is partially or totally destroyed and then repaired and rebuilt substantially in accordance with
the original plans and specifications, there shall also be appurtenant to the Unit an easement to
accommodate minor encroachments by the successor Structure from similar causes. Such
encroachments shall not be construed to affect the marketability of title to any Unit, nor shall they
alter the rights and obligations of the Owners.
Section 9.5 Association Functions Easement. The Association has such easements
throughout the Community as are necessary to perform the duties and obligations of the Association
as are set forth in the Governing Documents. The Declarant hereby grants to the Association an
easement over the Units and all portions thereof and therein for the purpose of otherwise carrying
DECLARATION – TOWNS ON 12TH PAGE -13-
out all obligations, duties, responsibilities and rights of the Association contained in this Declaration.
If the Association, in connection with entry upon a Unit pursuant to its rights set forth in the
Governing Documents, disturbs or damages any improvements on a Unit, the Association must repair
any damage to such Unit and must restore such Unit to a condition similar to that existed immediately
before such entry.
Section 9.6 Entry Monument Easement. To the extent located on any Unit or the
Common Elements, if any, the Association has an easement on, under, over, and across such Unit or
Common Element for the purpose of installing, modifying, maintaining, repairing and replacing,
entry monuments or signs and associated landscaping and utilities, together with a non-exclusive
right of ingress and egress thereto.
Section 9.7 Signage Easement. The Association has an easement on, under, over and
across the exterior 5 feet of all units parallel with and abutting all Streets in the Community, as
provided in the Map, and except where building footings, foundations, and/or subsurface structures
preclude, in which to install and maintain street signs, directional signs, no parking signs, other types
of signs and address columns or monuments and for signage related to storm water facilities and
collection of pet waste.
Section 9.8 Easement for Entry by Security Patrol. If the Board contracts for security
patrol service, said service, and its employees, shall have the right to enter onto any of the Units and
the Common Element in order to carry out their duties under such security patrol agreement;
provided, however, the patrol service can enter a Unit only if it is either (i) doing so with reasonable
cause; or (ii) acting with the consent of the Owner or tenant of such Unit.
Section 9.9 Public Utility Easements. The Plat creates various easements within the
Community for the installation, maintenance, repair and replacement of utilities including: (i) for the
benefit of the City and utility providers under and 5 feet of Units and Tracts, parallel with and
adjoining the public street frontage of Tacoma Court NE and ten (10) foot strip centered on facilities
as constructed, except where building footings, foundations, and/or subsurface structures preclude is
granted by all Owners of each Unit as shown on the Plat (ii) for the benefit of the City access
easements for those areas identified on the Map for public storm water facilities, storm drainage,
sanitary sewer and water, (iii) for the benefit of the City an access easement over Tracts H, K and L
for access, ingress and egress for inspections of the Critical Area. To the extent the City causes any
damage to such easement areas, the City shall restore the area as nearly as reasonably possible to its
prior condition. No structure, planting, or other material that may damage the utilities or interfere
with the use of the easement may be placed within these easement areas. The Owners of the Units
subject to utility easements shall not use or alter their Units in any way that would interfere with the
proper operation of the storm drainage system or other utilities located within such easement. The
Association may adopt Rules regarding use of the portions of the Units subject to these easements
The Easement is subject to the following terms and conditions:
1. The City of Renton, upon completion of any work within the property covered by the
Easement, shall restore the surface of the easement, and any private improvements disturbed
or destroyed during execution of work, as nearly as practicable to the condition they were in
immediately before commencing of the work or entry by the city.
DECLARATION – TOWNS ON 12TH PAGE -14-
2. The property owner(s) shall retain the right to use the surface of the easement as long as such
use does not interfere with the easement rights granted by the city. The property owner(s)
shall not, however, have the right to:
a. Erect or maintain any buildings or structures within the easement: or
b. Plant trees, shrubs or vegetation having deep root patterns which may cause damage
to or interfere with the utilities to be placed within the easement by the city; or
c. Develop, landscape, or beautify the easement area in any way which would
unreasonably increase the costs to the city of restoring the easement area and any
private improvements therein; or
d. Dig, tunnel, or perform other forms of construction activities on the property which
would disturb the compaction or unearth city’s facilities on the right=of-way, or
endanger the lateral support facilities; or
e. Blast within fifteen (15) feet of the easement; or
f. Erect fences in such a way as to prevent access by the city’s vehicles to the city
facilities. Any fence construction must provide for an opening (gated, removable
sections, barriers, etc.) of at least ten (10) feet in width; or
g. Erect any objects within fifteen (15) above the ground surface within the easement.
3. Grading and/or construction within any public easement shall not be allowed unless prior
reviewed and approved by the City of Renton.
Section 9.10 Other Water and Sewer Easements. The Plat may create various utility
easements as described and identified in the Map, including: easements granted to the City for
managing water and sewer main lines and related facilities as provided on the Plat, but not the shared
that shall be the responsibility of the Association to maintain or the individual service lines outside
or within each Unit that shall be the responsibility of the Unit Owner to maintain. No Structures
(including but not limited to decks, patios, outbuildings or overhangs) fill, obstructions, planting, or
other material that may damage the utilities or interfere with the use of the easements may be placed
within these easement areas or outside of any building setback per the RMC.This may include a
prohibition on any grading or the installation of any fence within these easement areas shown on the
Plat unless first approved by the City,. The Owners of the Units subject to private utility easements
shall not use or alter their Units in any way that would interfere with the proper operation and use
thereof. Vegetation within the easements shall be routinely maintained and replaced as needed. The
Association shall have an easement for the maintenance, repair and replacement of any portion of
the private utility system and may adopt further Rules regarding use of the portions of the Units
subject to these easements.
Section 9.11 Retaining Wall and Rockery Easements. Declarant may construct certain
rockeries and retaining walls between certain Units and Common Elements (referred to in this
Section generically as “walls”). The intention of Declarant is that each wall, when constructed, shall
be located wholly within one Unit or another and not on the property line between Units or Common
Elements. Due to obstructions or topography, however, a wall may not be wholly within a Unit or
Common Element or immediately adjacent to the property line. Therefore, Declarant reserves an
easement on each side of each boundary line. The Association shall be responsible for the inspection,
maintenance, repair, replacement of the wall and wall drainage for any retaining walls installed by
Declarant for as long as the wall exists, with the cost of such work to be a Common Expense.
9.11.1 Wall & Drainage easement over Units 77 and Tract M as as identified on the Plat
for the benefit of the Association and expressly for access, ingress, and egress to Units 77
DECLARATION – TOWNS ON 12TH PAGE -15-
and Tract M to inspect, maintain, repair and replace the retaining wall located within Unit
77 and Tract M, with such work to be performed by the Association, and the cost of which
shall be a Common Expense.
Section 9.12 Declarant. Declarant has an easement through the Common Elements as is
reasonably necessary for the purpose of developing and discharging Declarant’s obligations or
exercising Special Declarant Rights, and as is necessary to conduct inspections and tests from time
to time of all or any parts of the Units or Common Elements, and to determine whether maintenance,
repairs, or replacements of any such improvements are indicated. Declarant shall restore the affected
portion of the property to substantially the condition immediately prior thereto and shall indemnify
the Association and Owners of any affected Units from any damage resulting therefrom.
9.12.1 Declarant Easement Regarding Plat Bonds. The Association hereby
acknowledges, and all Owners by their acceptance of a deed to any Unit acknowledge, that
Declarant or its predecessor posted or will be required to post one or more maintenance or
monitoring bonds with the City or other public governmental authority with jurisdiction over
the Plat (collectively the “Plat Bonds”) in connection with Declarant’s build out and the
maintenance or monitoring of certain Common Elements, improvements, landscaping, Street
trees, storm water/drainage facilities, walls, and/or other items and shared facilities within
and serving the Community (all such areas and items, collectively, the “Plat
Improvements”). Copies of the Plat Bonds are on file with the applicable public
authority. The Association and all Owners further acknowledge that they are or will be
benefited by use of the Plat Improvements installed under and covered by the Plat Bonds and
that Declarant will remain obligated to complete certain maintenance, monitoring, and repair
work under the Plat Bonds until the applicable jurisdiction releases the Plat Bonds back to
Declarant. Declarant shall be responsible for initially installing and completing all Plat
Improvements as required by the governmental authority. Thereafter, the Association shall
keep and maintain, or ensure that any responsible Owners keep and maintain, all Plat
Improvements in good condition and repair. Until such time that the City or other
governmental authority releases the last of the Plat Bonds back to Declarant, Declarant
hereby reserves for itself an easement over the Units, Common Elements and remainder of
the Property for the purpose of accessing, inspecting, maintaining, monitoring, repairing and
restoring any Plat Improvement covered by a Plat Bond to the extent required by the
applicable jurisdiction holding the Plat Bond or as necessary to ensure that such Plat Bonds
will be released back to Declarant. The foregoing easement is expressly intended to survive
and to continue until all Plat Bonds are released in full. Declarant and its successors shall
use commercially reasonable efforts to exercise the foregoing easement rights in a manner
that minimizes interference with Owners and the Community, to the extent reasonably
practicable. If the Association or any Owner causes or permits damage to an item installed
under or covered by a Plat Bond or otherwise fails to maintain such an item when they had
an obligation to maintain the same under this Declaration, the Plat or other binding
instrument, and Declarant may exercise its easement rights in this paragraph to maintain,
repair or replace any aspect of a Plat Improvement installed under or covered by a Plat Bond,
then Declarant shall have the right to perform such maintenance, repair or replacement work
and to thereafter seek reimbursement for all reasonable costs incurred from the Association
or the responsible Owner. The responsible party shall reimburse Declarant for all such
reasonable costs incurred within 30 days after demand, otherwise such costs shall bear
interest at the statutory rate and Declarant shall have the right pursue collection of such
amounts through any legal means available at law or in equity. For so long as any Plat Bonds
DECLARATION – TOWNS ON 12TH PAGE -16-
remain in place, this paragraph may not be amended without the written consent of
Declarant. The Association (or any designated Manager), the ACC and Declarant shall have
a limited right of entry in and upon the exterior of all improvements located on any Unit for
inspection purposes, and taking whatever corrective action may be deemed necessary or
proper, consistent with the provisions of this Declaration. However, nothing herein shall be
construed to impose an obligation upon the Association, the ACC, or Declarant to maintain
or repair any portion of any Unit or any improvement thereon which is the obligation of the
Owner to maintain as provided herein. Nothing in this Article shall in any manner limit the
right of any Owner to the exclusive occupancy and control over the improvements located
upon their Unit, provided each Owner shall permit access to such Owner’s Unit and
improvements by any Person authorized by the Association, the ACC, or Declarant
(including any designated Manager) as is reasonably necessary, in case of any emergency
originating on or threatening such Unit or improvements, whether or not such Owner is
present.
Section 9.13 Utility and Municipal Easements Granted by Declarant. Declarant reserves
the right to grant and record easements to any utility provider or municipality (i) for the installation,
construction, maintenance, repair, and reconstruction of all utilities serving any portion of the
Community, including, without limitation, such utility services as water, sanitary sewer, storm sewer,
electricity, cable television, internet access, and telecommunications, (ii) for access through the
Common Elements to the public utility, storm drainage, sewer and water installations therein, (iii)
for rights of way, slopes, cuts, fills, environmentally sensitive areas, native growth protection areas,
public facilities or any other purpose or improvement as may be required for the development,
construction or sale of the Community
Section 9.14 Easement for Maintenance. Each Owner shall have a right to enter upon the
Common Elements and the Yard of an adjacent Unit, as necessary to perform maintenance, repair or
replacement of the Owner’s Unit and improvements and, if reasonably necessary, to read utility
meters. The Owner shall give the Owner of an adjacent Unit reasonable advance notice (except in
an emergency), shall only enter the adjoining Unit at reasonable times, and shall promptly repair any
damage caused thereby and restore the property to the condition it was in prior to the entry and shall
otherwise indemnify the Association and Owner of the adjacent Unit from any damage caused by
such entry.
Section 9.15 Landscape Buffer Easement. The Landscape Plans require that all trees,
shrubs and other vegetation within the Landscape Buffer be maintained and otherwise remain
undisturbed. The Landscape Plans also prohibit any removal of vegetation from the Landscape
Buffer and any other alteration of the Landscape Buffer without the Homeowners Association
approval. The plantings are to be maintained in a healthy, growing condition and those dead or dying
shall be replaced. The buffer area shall be kept reasonably free of weeds and litter. The Homeowners
Association shall be responsible for all such maintenance including the 15’ landscape buffer on Unit
77 as shown on the Plat Map.
Section 9.16 Storm Drainage, Sanitary Sewer and Other Drainage Easements. The Plat
may create various storm drainage easements as described and identified in the Map, including: (i)
public storm drainage easements over portions of Common Element Tracts granted to the City to
perform any activity necessary for maintenance, repair and replacement of the drainage facilities
thereon as provided on the Plat; provided that the Association shall be responsible for all landscaping
within any Common Element Tract. No Structures (including but not limited to decks, patios,
DECLARATION – TOWNS ON 12TH PAGE -17-
outbuildings or overhangs) fill, obstructions, planting, or other material that may damage the utilities
or interfere with the use of the drainage and sewer easements may be placed within these easement
areas or outside of any building setback per the RMC. This may include a prohibition on any grading
or the installation of any fence within these easement areas shown on the Plat unless first approved
by the City, County and/or the utility district. The Owners of the Units subject to private utility
easements shall not use or alter their Units in any way that would interfere with the proper operation
and use thereof. No Owner shall use or alter its Units in any way that would interfere with the proper
operation of any storm drainage, water or sewer system located within the Community. Vegetation
within the easements shall be routinely maintained and replaced as needed. The Association shall
have an easement for the maintenance, repair and replacement of any portion of the private utility
system and may adopt further Rules regarding use of the portions of the Units subject to these
easements.
Additional private storm drainage easements, sanitary sewer and water easements provided
on the Plat as follows:
9.16.1 Private sewer and storm drainage easements over portions of the burdened
Units identified on the Plat and certain of the Common Element Tracts with the
Homeowners Association being responsible for the cost of any maintenance and repair of
the shared facilities used in common located within the easement area, along with a right of
access to complete such work.
Private Storm Easements include but not limited to:
An easement over and across the north portion of Units 5 through 7 for the benefit of Units 6
through 9.
An easement over and across the south portion of Units 17 through 19 for the benefit of Units 18
through 23.
An easement over and across the north portion of Units 28 through 30 for the benefit of Units 24
through 29.
An easement over and across a portion of Tract M is for the benefit of Units 46 through 52
An easement over and across a north portion of Units 63 through 66 & Tract M for the benefit of
Units 60 through 70.
An easement over and across the east portion of Units 73 through 75 and Tract J for the benefit of
Units 71 through 76.
An easement over and across a portion of Tract B for the benefit of Units 13 through 16 and Units
31 through 34.
An easement over and across a portion of Tract O for the benefit of Units 3 and 4.
DECLARATION – TOWNS ON 12TH PAGE -18-
Section 9.17 City Easements and Right of Enforcement. The Map creates the following
easements granted to the City, but expressly not for any public right of access; (i) public utility
easements over the exterior 5 feet of Units and Tracts, parallel with and adjoining the public street
frontage of Tacoma Court NE and ten (10) foot strip centered on facilities as constructed except
where building footings, foundations, and/or subsurface structures preclude; (ii) easements over
those Units and Common Element Tract identified on the Map for ingress and egress to City for
access for installation, maintenance, repair, and replacement of water, storm sewer and sewer lines
and related appurtenances owned by the City and located within the Streets, (iii) easement over Tract
J for the purpose of conveying, storing, managing and facilitating storm and surface water per the
approved civil construction plans on file with the city, (iv) easements over Tracts H, K and L for
ingress, egress and inspection, and if necessary due to the failure of the Association to adequately
maintain and repair the Critical Area, (v) sidewalk easement over all Units and certain Common
Element Tracts;
Section 9.18 Other Easements and Restrictions to Which the Community is Subject to.
9.18.1 Public access easements over portions of Tract N and Units 23, 30, 31, 45,
46, 59, 60 and 70 as provided in the Plat. The City shall be responsible for all costs related
to the repair and maintenance of the access facilitites and shall have the right to enter the
easement area at any time to maintain the same.
9.18.2 Public trail easement over portions of Tract J for the benefit of the public with
the maintenance of the easement area, landscaping, sidewalks and the like to be performed
by and at the expense of the Homeowners Association
9.18.3 Private access easement over portions of Units 2, 3, 7, 8, 12, 13, 19, 20, 27,
28, 34, 35, 40, 42, 43, 48, 49, 56, 57, 62, 63, 88, 89, 90 for the benefit of the Unit Owners
with the maintenance of the easement area, landscaping, sidewalks, signage, lighting and the
like to be performed by and at the expense of the Association the cost of which shall be a
Common Expense.
ARTICLE 10 USE RESTRICTIONS AND CONDUCT RESTRICTIONS
Section 10.1 Use Restrictions. The following use restrictions shall apply to all Units.
10.1.1 Allowed Use. Except as otherwise expressly set forth herein, Units shall be
used exclusively for residential purposes (including for social, recreational, or other
reasonable activities normally incidental to such use); provided, however, upon the written
request by an Owner, the Board may allow an Owner to conduct an "in-home business",
provided all business activities are carried on within the Home and that there are not an
unreasonable number of employees, clients, customers, tradesmen, student, suppliers, or
others that come to the Home in connection with such business, but in no event in any number
that would unduly burden the Community, its parking or create a material amount of
additional traffic through the Community, as such standards are determined by the Board in
its sole and absolute discretion. The determination of whether or not a use is incidental to
residential uses shall be made by the Board and shall be binding on all Owners. The Units
may also be used for the purpose of operating and managing the Community. The Board
DECLARATION – TOWNS ON 12TH PAGE -19-
may, by Rule, specify the limits of residential use in general and also in particular cases.
Notwithstanding the foregoing, Declarant may use any of the Units owned by Declarant as
allowed by the CIC Act or this Declaration. Notwithstanding the foregoing, to the extent
required under the CIC Act, operation of an “adult family home” on a Unit shall not be
prohibited.
10.1.1.1 Licensed In-Home Child Care Providers. Notwithstanding anything to the
contrary in the Declaration, Owners who wish to operate an in-home child day care center,
child care center or family day care (collectively “In-Home Child Care Service”) must do
so in strict compliance with RCW 64.90, and the licensure requirements of RCW 43.216.
Prior to commencing operation of any In-Home Child Care Service, the Owner shall provide
a copy of the family home license (referenced in subsection (i) below) and written proof of
insurance (referenced in subsection (iv) below) to the Association and failure to do so shall
allow the Board to automatically make a determination that the Owner’s operation of the In-
Home Child Care Service is not incidental to residential use as provided in Section 10.1.1.
Any Owner who desires to operate an In-Home Child Care Service shall strictly
comply with each of the following requirements:
(i) Obtain and maintain during all hours of operation, a current family home
license in accordance with RCW 43.216 from the Washington State Department of Children,
Youth and Families or its successor, and provide a copy to the Association prior to
commencing any business operations. Before the expiration of such license, Owner shall
provide the Association with a copy of a new or renewed license. Owner shall immediately
notify the Association of the expiration, suspension or termination of such license.
(ii) Indemnify and hold harmless the Association against all claims, whether
brought by judicial or administrative action, relating to the operation of the In-Home Child
Care Service, excluding claims arising from the condition of the Common Elements that the
Association is solely responsible for maintaining under the Governing Documents. If
requested by the Association, Owner shall provide the Association with a signed document
agreeing to indemnify and hold harmless the Association against such claims.
(iii) Obtain and deliver to the Association signed waivers of liability from each
parent, guardian, or caretaker of each child under care with the In-Home Child Care Service.
The obligation to provide such waivers to the Association is ongoing. An Owner shall not
commence care of any new child in the Unit prior to obtaining and delivering to the
Association a signed waiver of liability for such child.
(iv) Obtain day care insurance as defined in RCW 48.88.020 or provide
self-insurance pursuant to chapter RCW 48.90, consistent with the requirements in RCW
43.216.700, and provide written proof of insurance to the Association prior to commencing
any business operations. The obligation to provide insurance is ongoing. An Owner must
provide the Association with written proof of insurance prior to the expiration of any insurance
previously provided to the Association.
(v) During all hours of operation, limit the number of children under care to the
maximum number allowed per the capacity restrictions specified in the Owner’s family home
license and in accordance with Washington Administrative Code 110-300-0355.
(vi) Comply with all other in-home business rules or restrictions contained in the
Rules.
(vii) Pay any costs or expenses, including insurance costs, arising from the
operation of the In-Home Child Care Services.
DECLARATION – TOWNS ON 12TH PAGE -20-
In-Home Child Care Services not operated in accordance with this Section, other
provisions of the Declaration, or the Rules may be considered an intrusive activity and/or a
nuisance, and the Board shall be permitted to exercise all rights under the law regarding
enforcement under the Governing Documents including, but not limited to, imposing
reasonable regulations on In-Home Child Care Services, so long as those regulations are
identical to those applied to all other units within the Association.
Except as provided under Washington state law and regulations, such reasonable
regulations may involve regulations regarding any activity that unreasonably interferes with
the other residents’ use or enjoyment of their Units or the Common Elements. This includes,
but is not limited to, any failure to operate In-Home Child Care services in accordance with
this Section or engaging in any use or activity associated with In-Home Child Care Services
that generates noise or traffic that unreasonably interferes with other residents’ use or
enjoyment of their Units or the Common Elements.
10.1.2 Prohibited Uses. The Property is being developed as a residential
development. The Units may not be used for Timesharing, as defined in chapter 64.36 RCW.
The Units may not be used for hotel or transient purposes, which shall be defined as: (i)
rental for a period of less than one year, (ii) rental under which occupants are provided
customary hotel services such as room service for food and beverages, maid service, the
furnishing of laundry and linen, busboy service, and similar services, or (iii) the overnight
accommodation of business invitees on a temporary or transient basis (such as a hotel, motel
or corporate suites operation). All leases, rental and other occupancy agreements for Units
shall expressly provide that they are subject in all respects to the Governing Documents and
that any failure by the tenant to comply with the terms of such documents shall be a default
under the lease. If any lease under this Section does not contain the foregoing provisions,
such provisions shall nevertheless be deemed to be part of the lease and binding upon the
Owner and all tenants shall be deemed bound by the restrictions stated herein. All leases
shall be in writing. The Association may request the names and contact information for all
tenants including family members who will occupy a Unit. If any lessee or occupant of a
Home violates or permits the violation by their guests and invitees of any provisions of the
Governing Documents, the Board may give notice to the lessee or occupant of the Home and
the Owner thereof to cease such violations. If the violation is thereafter repeated, the Board
shall have the authority, following Notice and Opportunity to be Heard, to impose a fine
upon the Unit Owner in accordance with a schedule adopted by the Board and each day that
a violation persists thereafter shall be deemed a separate violation for which the fine may be
separately assessed. The Association shall have a lien against the Owner’s Unit for any fines
not timely paid and any costs incurred by it in connection with such violation, including
reasonable attorneys’ fees, which may be collected and foreclosed by the Association in the
same manner as Assessments as provided herein.
The Board shall have the authority to enact Rules permitting rentals, including but
not limited to, Airbnb, vrbo.com or other vacation rental websites, in a manner that will not
violate the requirements of Fannie Mae, Freddie Mac, FHA or VA and to prohibit such use
if advisable to obtain project approval from such agencies.
10.1.3 Other Structures and Vehicles. Except as expressly provided herein, no
structure of a temporary character, trailer, recreational vehicle, boat, boat trailer, panel truck,
DECLARATION – TOWNS ON 12TH PAGE -21-
bus, camper or camping trailer, tent, shed, shack, basement of any incomplete building, barn
or other outbuilding shall be either used or located on any Unit, or on any Street, at any time
or used as a Home either temporarily or permanently, unless permitted for temporary use
during construction/reconstruction of a Home on a Unit and such temporary structure and
use are permitted in advance by the ACC. No prefabricated buildings or structures of any
nature, specifically including mobile homes, shall be moved, placed, constructed or
otherwise located on any Unit for any period of time unless approved by the ACC in advance.
Temporary buildings or structures allowed during construction shall be removed
immediately after construction or upon request of the ACC, whichever occurs first.
Notwithstanding the foregoing, Declarant may place construction and sales trailers on any
Unit which Declarant owns or on Common Elements. Notwithstanding the foregoing, a
trailer, boat, RV, camper, shed, recreational vehicle or other outbuilding may be located on
a Unit if such item is screened or located such that it is not visible from the Street and such
item, structure, screening and location are approved in advance by the ACC, which approval
shall be in the sole discretion of the ACC. No prior approval by the ACC shall be required
if any such trailer, boat, or recreational vehicle is located or parked entirely within the garage
of the Home or within any other structure constructed previously with the approval of the
ACC.
Section 10.2 Conduct Restrictions. The following conduct restrictions shall apply to all
Owners and Authorized Users, except that they shall not apply to, or prohibit any conduct of,
Declarant as authorized by the CIC Act or the Governing Documents.
10.2.1 Roads, Sidewalks, Walkways, Etc. The Streets, alleys, sidewalks and
walkways used for access shall be used exclusively for normal ingress and egress. No
obstructions shall be placed therein unless permitted by the Board or the Rules.
10.2.2 Parking. Parking is not permitted anywhere along Tracts A and B, or where
there are posted “No Parking” or “Fire Access” signage, on upon any portion of the Common
Elements other than designated Community parking areas. Parking is not permitted upon any
sidewalks, planter strips or within any designated guest parking spaces. Unless otherwise
expressly permitted by the Board, designated guest parking spaces are intended to be
reserved for parking by invitees and guests of Owners only. No vehicle may be parked on
any Unit, except in garages and on designated and approved driveways or parking areas,
which areas shall be hard-surfaced, unless otherwise permitted by the ACC. Any additional
parking added to a Unit after the initial landscaping shall be hard surfaces (unless otherwise
approved by the ACC in advance) and constructed only in accordance with a site plan
approved by the ACC. Unless otherwise expressly permitted herein, only the cars of guests
and visitors may be parked on Streets where permitted (it being the intention to keep Street
parking available as much as possible for guests and visitors). All vehicles of Owners and
Occupants shall be parked in garages or on driveways or other approved parking areas
located entirely within their Unit, as set forth herein Owners and Occupants shall, to the
extent reasonably practicable, first park their vehicles within available garage spaces within
their Unit and then on any available driveway or other approved external parking areas
within their Unit. Notwithstanding the foregoing, if any personal or work-related vehicle of
an Owner or Occupant is oversized in nature and does not fit within the garage or on the
driveway or other parking surface upon their Unit it shall be parked off-site. No vehicle may
be parked on a Street if it interferes with or impedes the flow of traffic and use of the Street
by others or if it interferes with a Unit Owner’s ability to pull out of or into their approved
DECLARATION – TOWNS ON 12TH PAGE -22-
driveways or parking areas. No parking shall be allowed on any area or Street, except in
designated parallel parking spaces, or where “No Parking,” “Emergency Vehicle Access,”
“Fire Access” or similar signs or markings are otherwise expressly posted throughout the
Community. No commercial vehicles, motor homes, trailers, campers, boats and other
recreational vehicles may be parked on any Common Element except on a temporary basis
for loading or unloading. The Association may direct that any vehicle or other thing improperly
parked or kept on any portion of the Common Elements be removed at the risk and cost of the
Owner thereof. All parking within the Community shall comply with the RMC, Rules of the
Association and all parking restriction signage.
10.2.3 [Intentionally Omitted]
10.2.4 Parking in Unit/Garage Use Restrictions. No vehicle may be parked in any
Unit except in driveways and garages. No vehicle parked in any driveway may extend into
the streets or sidewalks of the Community or otherwise impede vehicular or pedestrian traffic
or access to any Unit. Owners should use their garages as the primary vehicle storage and
parking use, if available.
10.2.5 Regulated Vehicles. No Owner may store any trailers, boats, motor homes,
recreational vehicles, or trucks over two tons or any disabled or inoperable motor vehicle on
its Unit unless any such vehicle is completely enclosed and hidden from view within a garage
or within such other enclosure as may be allowed by the Board or the Rules. Motor homes,
trailers, campers, boats and other recreational vehicles may not be kept in driveways or
parking spaces except on a temporary basis for up to 48 hours for loading or unloading,
subject to such rules and regulations concerning parking as may be adopted by the Board.
No in-operative vehicle of any type may remain in any driveway or private road for more
than 72 hours (excluding weekends and holidays). Violations of this Section 10.2.5 shall
subject such vehicles to impound, at the expense and risk of the owner thereof. The
Association may adopt rules and regulations to implement these restrictions and provide
guidance to Owners.
10.2.6 Further Regulation. The Board may adopt Rules further regulating conduct
on Streets, sidewalks, driveways, parking spaces and other Common Elements, including the
parking and storage of recreational vehicles, campers, boats and the like, and safe operation
of vehicles. The Board may direct that any inoperative vehicle or anything improperly
parked or kept in a parking space, or elsewhere in the Community be removed, and if it is
not removed the Board may cause it to be removed at the risk and cost of the Owner thereof.
10.2.7 Trash and Garbage. Each Owner shall store trash and garbage inside the
garage of the Home, provided compost, garbage and recycling receptacles shall be stored
within the Unit Owner’s garage, or only if screened from view, within a side or back Yard,
and set it out for collection in such locations and receptacles as are authorized by the Board
only on designated trash collection days, or as otherwise allowed by the Rules. Each Owner
is responsible for removing from the Community all trash and garbage generated by that
Owner that is not required to be picked up by a service. The Board may adopt such Rules
pertaining to such matters as in the judgment of the Board are necessary for the safe, sanitary
and efficient operation of the Community.
DECLARATION – TOWNS ON 12TH PAGE -23-
10.2.8 Signs. No sign of any kind may be displayed to the public view on or from
any Unit or Common Elements without the prior consent of the Board or pursuant to the
Rules; provided; provided political signs regarding candidates for public office or ballot
issues may be displayed within a Unit or Limited Common Element subject to reasonable
Rules pertaining to placement and manner of display. Display of the United States or State
of Washington flag and installation of flagpoles are permitted subject to reasonable Rules
regarding time, place and manner for display of a flag, and the location and size of the
flagpole. The Board may erect on the Common Elements a master directory of Units
including Units that are for sale or lease, and may regulate the size, appearance and location
of signs advertising Units for sale or lease.
10.2.9 Pets. No animals, livestock or poultry of any kind shall be raised, bred or
kept on any Unit except dogs, cats, birds, fish or other typical household pets; provided they
are not kept, bred or maintained for commercial purposes; provided further that no more than
two (2) dogs or two (2) cats shall be allowed per Unit, excluding fish, birds and other pets
that remain caged or housed exclusively indoors; and, provided further subject to the RMC,
the Board may permit in their sole discretion a third or fourth dog/cat (for a total of 4 such
household pets) if the additional dog(s)/cat(s) are small in size and the Board determines that
such additional pet(s) will not adversely impact or be a nuisance within the Community.
Dogs shall be restrained to the Owner’s Unit and Yard and shall not be allowed to run at
large. All animals must be kept as domestic indoor pets. Leashed animals are permitted
within rights-of-way and authorized Common Elements when accompanied by their Owners.
Owners shall be responsible for cleaning up any and all of their animals’ waste on the
Property, including on the respective Owner’s Unit. If an Owner fails to clean up their
animals’ waste, the Association may, but shall not be obligated to, take such action as may
be necessary to clean up the animals’ waste and shall have the right of entry for such
purposes. Any costs incurred by the Association in connection with such action shall be
deemed to be a Special Assessment of the Owner whose animal(s) created the waste. No
animal shall be allowed to make an unreasonable amount of noise or become a nuisance as
determined by the Board, at its sole discretion. Notwithstanding anything above, no animal
that is considered dangerous, threatening or otherwise harmful to others or that displays any
such qualities after being within the Community shall be permitted or allowed to remain
within the Community after Notice and Opportunity to Be Heard, after which the Board shall
have the right to require removal of any animal from the Unit which it finds in its sole
discretion to violate this subsection.
10.2.10 Nuisances and Intrusive Activity. No noxious or offensive activity shall be
permitted in or upon any Unit or Common Elements, nor shall anything be done thereon
which may be or may become an annoyance or nuisance to the Community or that shall
constitute a violation of the RMC which prohibits the open storage of rubbish or junk, combustible
materials, and abandoned or wrecked vehicles or the parts thereof. No Owner may conduct,
permit or allow any activity or the keeping of anything in the Community that may
unreasonably interfere with the other residents’ use or enjoyment of their Units or the
Common Elements; threaten the comfort, safety or security of any Owner; or be or become
a nuisance to other Owners. No use or activity that generates noise, vibration, odors or traffic
that would generally be considered unacceptable to households in a residential planned
community is allowed. The Board may adopt such Rules pertaining to such matters as in the
judgment of the Board are necessary.
DECLARATION – TOWNS ON 12TH PAGE -24-
10.2.11 Hazardous Substances. No Owner may permit any Hazardous Substance to
be generated, processed, stored, transported, handled, or disposed of on, under, in, or through
the Owner’s Unit or any portion of the Common Elements. Each Owner must indemnify,
defend, and hold harmless the other 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, Tenants, or invitees of the Unit. “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 U.S.C. §9601, et seq.); or under any local or
state rule or regulation.
10.2.12 Conveyance by Owners; Notice Required. The right of an Owner to transfer
the Unit is not subject to any right of approval, disapproval, first refusal, or similar restriction
by the Association or the Board, or anyone acting on their behalf. An Owner intending to
convey a Unit must, however, deliver a written notice to the Board at least two weeks before
closing specifying (a) the Unit being sold; (b) the name and address of the purchaser, the
closing agent, and the title insurance company insuring the purchaser’s interest; and (c) the
estimated closing date. The Board has 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. Promptly upon
the Conveyance of a Unit, the new Unit Owner must notify the Association of (i) the date of
the Conveyance; (ii) the Unit Owner’s name and address; and (iii) the name and notice
address of every first Mortgagee of the Unit. The Association must 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 policy,
unless the insurance policy under Article 20 is written in a manner that would automatically
provide coverage to all Unit Owners by virtue of their ownership of a Unit.
10.2.13 Construction; Setbacks. No dirt, debris, or other materials shall be allowed
to come off of any Units onto any Streets, Common Elements, other Units, or other parts of
the Property as a result of any construction or other activities. All Structures shall be of new
construction (unless the ACC approves of recycled or “décor” vintage construction materials
in advance) and shall not be permitted to extend beyond applicable building setbacks or
within any drainage easements and shall not exceed height restrictions or impervious surface
limitations without prior approval of the City and the Board. No previously used Structures
shall be moved onto a Unit. The Unit shall be kept clean and clear of debris during
construction. No Home may be constructed on any Unit by other than a contractor licensed
as a general contractor under the statutes of the State of Washington without the prior
approval of the ACC.
10.2.14 Fences. Fences must comply with all applicable laws and regulations, the
Plat and the RMC. Fencing shall be prohibited within any drainage easement area unless the
Owner first obtains the the approval of the City, the applicable utility purveyor, and the
Board, provided further, that such fencing shall be installed in accordance with any
restrictions contained in the Plat. Fences may be erected on property lines, except that no
DECLARATION – TOWNS ON 12TH PAGE -25-
fence shall be erected between the front of the Home and the Street or within any easement
area referenced in Article 9 herein. Nothing herein shall prevent the erection or maintenance
of a necessary or appropriate retaining wall and safety fencing on top of said wall installed
by Declarant or otherwise later approved in advance by the ACC. No fence, wall, hedge or
mass planting shall at any time extend higher than six feet (6') above the ground, except for
necessary and appropriate retaining walls or rockeries (and associated safety fencing on top
of the same) which conform to the City and County codes and are installed by Declarant or
otherwise later approved by the ACC in advance. With the exception of necessary or
appropriate safety fencing on top of walls, fences shall conform to any applicable Rules
concerning fencing, unless otherwise approved by the ACC. No wire fences (other than
safety fencing describe above) shall be used unless approved by the ACC. If the Plat or
particular easement does not expressly restrict such fencing, rear and side Yard fences are
permitted to be located within easements created or dedicated on the face of the Plat with the
prior written approval of the ACC, provided that such fencing must not interfere with or
obstruct the purpose of the easement or any facilities therein. If such a fence or portion of a
fence is ever placed within any easements in accordance with the foregoing sentence, the
Owner of said fence shall be required to temporarily remove the same at its cost if the party
benefited by such easement requires removal to carry out activities permitted by the
easement (e.g., maintenance of utilities) or required to permanently remove the fence at its
cost if such benefited party determines the fence unreasonably interferes with or obstructs
its easement rights.
10.2.15 Lighting. All area lighting shall be designed and positioned to ensure that
the light source is not visible from any other Homes or, if visible, is angled downward so as
to adequately mitigate the effect of any light spill over onto adjacent Units (whether or not
any visible light is adequately mitigated shall be determined by the ACC in its sole discretion
for the protection of the Owners within and for the overall harmony of the community). All
lighting shall also comply with the light and glare requirements of the RMC if applicable.
Decorative holiday lighting may be installed no more than thirty (30) days before and shall be
removed no later than thirty (30) days after the date of the holiday.
10.2.16 Yard Art. No yard pieces or yard art (including but not limited to sculptures,
statues, and other freestanding or attached works, whether for decoration or otherwise) that
are more than twelve inches (12") tall or twelve inches (12") wide shall be permitted outside
of the Home and within view from the Street without prior written approval of the ACC.
Flags of the United States or the State of Washington are not considered yard art hereunder
and are permitted, provided, however, the Association may place reasonable restrictions on
the time, place and manner of display as permitted by federal and state law.
ARTICLE 11 MAINTENANCE, CONSTRUCTION AND ALTERATIONS
Section 11.1 Owner’s Maintenance and Repair Responsibilities. Except for maintenance
and repairs to be performed by the Association under this Article 11, each Owner must, at the
Owner’s sole expense, maintain, repair and replace (i) the Home’s interior, Structures, Owner
landscaping such as flower pots, gardens and the like within its Unit, but not the Home exterior,
driveways, fences, walls, Party Walls or Building Components, or Community landscaping, (ii) that
portion of the utility installations (including without limitation power, water, gas, telephone and data
lines, sanitary sewers) with the exception of certain storm drainage facilities if maintained by the
City, County or other utility providers serving their respective Unit. Each Owner must keep all such
DECLARATION – TOWNS ON 12TH PAGE -26-
items in good repair and in neat, clean, and sanitary condition, in compliance with applicable Laws,
the Governing Documents and the Community-Wide Standard.
11.1.1 Party Walls; Building Components. The maintenance, repair and
replacement of the Party Wall and Building Components shall be the obligation of the
Association with the cost of such work to be allocated to the benefited Owners as a
Specially Allocated Expense. Exclusive of normal and reasonable interior decorations,
no Owner may make changes to a Party Wall or the Building Components without the
prior consent of the adjoining Owner and the Association. Each Owner shall maintain
industry standard and building code compliant fire-rated wall assembly and sound
proofing material on each Owner’s side of the Party Wall. If the need for maintenance or
repair is caused by the willful or negligent acts of one Owner or such Owner’s tenants,
guests or invitees, the cost of such repair and/or maintenance shall be paid for solely or
allocated to that Owner. If one Owner (i) fails to pay that Owner’s share of the costs for
such work, or (ii) willfully or negligently causes damage to the Party Wall and Building
Components and fails to ensure repair such damage (“Defaulting Owner”), the non-
Defaulting Owner of the adjacent Unit may pay for such costs and expense and seek
reimbursement from the Defaulting Owner. Upon demand, the Defaulting Owner shall
promptly pay such costs and expense, including attorney fees, with interest at the rate of
twelve (12%) percent per annum until paid and any amount not paid shall become a
continuing lien against the Defaulting Owner’s Unit to be collected, enforced or
foreclosed in the same manner as an Association lien as provided herein in Article 17.
11.1.2 Grounds; Maintenance of Grounds. To the extent not completed
by Declarant, the entire front landscaping for each Unit with a Home thereon shall be
installed prior to occupancy in accordance with the plan submitted to the ACC. The entire
landscaping, including the remaining portions of the side and rear Yard, shall be installed
within six (6) months following intial occupancy of the Home. To the extent applicable,
each Owner shall be responsible for removing the PVC pipe containing the cable
connection wires located on their Unit and either burying the cable wires or installing a
landscape box and landscaping to screen the cable connection wires and box.
The Association shall be responsible for the maintenance and repair of all parking areas,
driveways, walkways, and landscaping on a Unit; exclusive of personal landscaping and
Structures. Nothing contained herein shall preclude an Owner from recovering (from any
person liable therefor) damages to which such Owner might be entitled for any act or
omission to act requiring an expenditure by the Owner for the maintenance and repair of
the parking area, driveway, walkway, and/or landscaping on Owner’s Unit. Such
maintenance and repair of the Owner’s Unit by Owner shall include, without limitation:
11.1.2.1 Parking and Other Areas. Owner maintenance of parking
areas, driveways and walkways in a clean and safe condition, shall include the removal of
debris and waste material and the washing and sweeping of paved areas. Association
maintenance of shall include paving and repairing or resurfacing such areas when necessary
and removal of debris and waste material and the washing and sweeping of paved areas as
required.
11.1.2.2 Lighting. Cleaning, maintaining and re-lamping of any
external lighting fixtures, except those as may be the property of any public utility or
DECLARATION – TOWNS ON 12TH PAGE -27-
government body. All lighting shall be directed so as to minimize light spill and glare onto
adjoining Units and Common Element Tracts.
11.1.2.3 Landscaping. Personal landscaping such as flower pots,
gardens and the like.
11.1.2.4 Drainage. Maintenance of all private storm water drainage
systems, roof drains and catch basins in their originally designed condition, and per any
governmental requirements and any conditions as provided here or on the Plat shall be
performed by the Association. No Owner shall take any action that would interfere with
surface water drainage across his/her Unit either through natural drainage or by drainage
easements. The topographic conditions of any Unit shall not be altered in any way that would
adversely affect or obstruct the approved and constructed storm drain system and surface
flows without the written consent of the ACC and without first obtaining approval from the
applicable County department for any such alteration.
11.1.2.5 Hillsides and Other. Maintenance of all hillsides, slopes
and swales in their as designed and completed condition, and which shall not be changed or
interfered with without the prior written consent of the Board.
11.1.2.6 Retaining or Structural Walls. Declarant may construct
retaining or other structural walls on or for the benefit of certain Units (collectively
“Retaining Walls”). Such Retaining Walls contain drainage pipes and facilities within them
to collect and direct storm water run-off. Where such Retaining Walls exist, the removal or
deterioration of such Retaining Walls will affect the Units and other real property benefited
by and/or along the same slope supported by such Retaining Walls. No Owner whose Unit
is benefited or burdened by any such Retaining Wall shall alter, damage, destroy or remove
such Retaining Wall or any part of it without the prior written consent of the City, and all
other Owners of Units and real property affected by such Retaining Wall. The Association
shall be responsible for all maintenance and repair of such Retaining Wall including any
drainage facilities located therein as necessary to keep the same structurally sound and in
good repair; provided, however, that if the act of any Owner or their Occupants, guests,
invitees or other representatives damages or causes excess deterioration to any Retaining
Wall, the applicable Owner shall be responsible for all costs to repair such damage and
deterioration. Each Owner shall permit reasonable access to and use of his or her Unit and
Yard to the Association and its agents as necessary or appropriate for all inspections,
maintenance and repair work on any Retaining Wall called for under this Section. The costs
associated with such work, exclusive of Owner caused damage, shall be charged to the
Owners as a Common Expense
11.1.2.7 Pest Control; Integrated Pest Management Plan. To the
extent not performed by the Association as part of its regular maintenance, all Owners shall
comply with any integrated pest management plan adopted by the City, if any, for the careful
use of pesticides, fertilizers and other hazardous substances, and if necessary engage a
qualified pest professional to properly manage disease and pest problems to ensure best
management practices are utilized.
11.1.3 Remedies for Failure to Perform Owner Maintenance Obligations.
If any Owner fails to perform the maintenance and repair obligations required herein, then
DECLARATION – TOWNS ON 12TH PAGE -28-
the Board after fifteen (15) days’ prior written notice to such delinquent Owner, shall have
the right, but not the obligation, to perform such maintenance and repair and to charge the
delinquent Owner and their Unit for the cost of such work together with interest thereon
from the date of the Association’s advancement of funds for such work to the date of
reimbursement of the Association by Owner. If the delinquent Owner fails to reimburse
the Association for such costs within ten (10) days after demand therefore, the Association
may, at any time after such advance, record a claim of lien signed by an authorized agent
of the Association for the amount of such charge together with interest thereon and
enforce the Association lien in accordance with the provisions of this Declaration. The
Association lien and the rights to foreclose thereunder shall be in addition to all other
rights and remedies which the Board may have hereunder or in equity or at law, including
any suit to recover a money judgment for unpaid Assessments.
Section 11.2 Association’s Maintenance and Repair Responsibilities. The Association is
responsible for the maintenance, repair, and replacement of the Common Elements, including,
without limitation: (i) all of Tracts A, B, C, G, H, J, K, L, M. N, and O exclusive of any utilities
owned and maintained by the City, County, private utility, or other governmental entity, (ii) retaining
walls, (iii) exterior of the Units, Party Walls, and Building Components, but excluding the Home’s
interior, Owner Structures, and personal landscaping, (iv) the Street Landscaping, including any
landscaped areas in the public right-of-way, landscape buffers, and center island cul-de-sac, and any
temporary irrigation facilities located therein, (v) all Structures, Entry Monuments (if any), and other
improvements and landscaping on the Common Elements, (vi) all utility installations located upon
any Common Element Tract, not the responsibility of an Owner, the City, County, private utility, or
other governmental entity, and (vii) specifically for Tracts H, K and L maintenance of the Critical
Area in accordance with any applicable plan on file with the City, the RMC and Rules of the
Association. The Association must keep such items in good repair and in a neat, clean, and sanitary
condition, in compliance with applicable Laws, the RMC, the Governing Documents and the
Community-Wide Standard. In the event the Association is dissolved, the Owners shall share equally
in the Association maintenance obligations provided herein.
Section 11.3 Property Not Owned by Association. The Association shall have the right,
but not the obligation, to maintain other property, whether or not owned by the Association and
whether within or without the Community, where the Board has determined that such maintenance
would benefit all Owners. Without limiting the foregoing, the Association shall have the right, but
not the obligation, to maintain the landscaped areas: (i) within any dedicated roads within the
Community and the Association may enter into a joint maintenance agreement with adjoining
property owners or associations for the repair, maintenance and replacement of any shared facilities
or other property; and (ii) in front of the Homes built on the Units (i.e., the front Yards).
Section 11.4 Conveyance of Common Elements by Declarant. The Declarant by the Map
grants and conveys Common Element Tracts A, B, C, G, H, J, K, L, M, N, and O to the Association.
The conveyance of Tracts are subject to the grant of public utility and access easements to the City
and various utility providers for the utility facilities within those Tracts and routine inspections and
maintenance to the extent the Association fail to satisfy their obligations to do so; and for access,
ingress and egress to utilities owned and operated by the City located within the Community.
Declarant may convey any other Common Elements to the Association, including any personal
property and any improved or unimproved real property, leasehold, easement, or other property
interest. Such conveyance shall be accepted by the Owners and the Association, and the property
shall thereafter be part of the Common Elements to be maintained by the Association. The Common
DECLARATION – TOWNS ON 12TH PAGE -29-
Elements are subject to an easement of common use and enjoyment in favor of the Association and
every Owner, their heirs, successors and assigns in accordance with the terms and conditions of the
Governing Documents. Such rights to use the Common Elements are appurtenant to and shall not
be separated from ownership of any Unit and shall not be assigned or conveyed by any Owner in any
way except upon the transfer of title to such Unit, and then only to the transferee of such title and
shall be deemed so conveyed whether or not it shall be so expressed in the deed or other instrument
conveying title. Certain rights of use, ingress, egress, occupation, and management authority in the
Common Elements set forth elsewhere in this Declaration shall be reserved to Declarant for prior to
the Control Termination Date. Declarant shall not be required to make any improvements whatsoever
to property to be conveyed and accepted pursuant to this Section.
Section 11.5 Summary of Maintenance Responsibilities. The maintenance
responsibilities of the Owners and Association are summarized in Schedule B attached hereto. In the
event of any conflict between the text of this Article 11 and the schedule, this Article shall control.
Section 11.6 Transfer of Responsibility. The Board may adopt Rules transferring
responsibility to maintain certain Limited Common Elements to the Owners if it determines that the
Owners will regularly, properly, and consistently maintain the Limited Common Elements, and that
there is little risk of damage to the Community or cost to the Association from such transfer of
maintenance responsibility. The Association may modify or revoke any such Rules if it determines
that modification or revocation is in the best interest of the Community.
Section 11.7 Construction and Alterations; Architectural Control. Although the Owners
have the responsibility for maintenance, repair and replacement of their Units, Home Interiors, and
personal landscaping as set forth in this Article 11, the Board shall have the right to regulate any new
Structures and any alterations to existing Structures to ensure that they (i) comply with the Governing
Documents and (ii) are harmonious with the other Homes and improvements in the Community.
Accordingly, except as set forth in Governing Documents, no Owner may construct or install a new
Structure or alter any portion of an existing Structure, without the prior written approval of the Board.
11.7.1 Scope of Regulation and Authority. For the avoidance of doubt, the
authority of the Board under this Section 11.7 includes regulation of: (i) the location, size,
design and appearance of Structures, (ii) the materials and colors of exterior features and
surfaces of Structures, including but not limited to siding, roofing, windows and doors, (iii)
the placement and appearance of ancillary items such as antennae, security devices, and
hardscaping, (iv) any alteration that may result in a change or modification to a Party Wall
or Building Component, (v) the installation and location of basketball hoops in the front of
any Unit or upon the Common Elements, and (vi) other factors relating to compliance with
the Governing Documents or harmony with the other Homes and improvements in the
Community. The Board shall not have authority to (i) regulate the maintenance, repair or
reconstruction of a Structure that does not change its location, size or appearance, (ii)
prohibit the installation of basketball hoops to be used in a driveway, or (iii) regulate any
landscaping (other than hardscaping) on a Unit unless it alters/interferes with the approved
landscape plan for the Community, violates restrictions on use of the private drainage
easements, or violates the Rules of the Association. The Board shall have the authority to
adopt Rules to implement and clarify the scope, standards and processes under this Section
11.7 and to appoint, pursuant to the Bylaws, an architectural control committee to exercise
some or all of its authority hereunder or to advise it as to matters hereunder.
DECLARATION – TOWNS ON 12TH PAGE -30-
11.7.2 Particular Standards. The following standards shall apply to all Structures
and alterations of Structures in the Community.
11.7.2.1 The maximum height of any Home shall be per the RMC.
11.7.2.2 The maximum height of any fence shall be six (6) feet.
11.7.2.3 No radio, television or satellite antenna, dish or receiving device
other than a “protected antenna” (as defined in 47 C.F.R. §1.4000, as it may be
amended) may be installed on the front of a Unit. Any receiving device shall not be
larger than 24 inches in diameter.
11.7.3 Approval Process. Subject to any Rules adopted by the Board, an Owner
desiring to construct or install any new Structures or alter any existing Structures on its Unit
must apply to the Board for approval. The Board may require the submission of plans and
specifications and other data relating to the proposal. The Board may require that plans and
specifications be prepared by a competent professional and may establish requirements for
the format and content of materials submitted to it. If any proposed alteration involves
modification or may materially affect a Party Wall or Building Component, the Board shall
notify the adjoining Owner of the request and provide copies of the Plans so such Owner can
comment on the same. The Board may further require the prior consent of such adjoining
Owner, which the adjoining Owner shall not unreasonably withhold or delay if appropriate
measures are taken to mitigate the potential effects. Further, the Board shall require as a
condition of approval of any alteration affecting a Building Component that: with respect to
any modification to a Party Wall, each Owner maintain a fire rated wall assembly for the
Owner’s Unit on the Owner’ side of the Party Wall of at least the same or better standard as
the original construction rating, and with respect to any modification to any Building
Component that the Owner agree in writing to restore the Building Component affected to a
good and sound condition and agree in writing to indemnify hold harmless, and defend the
Association and Owner of the adjoining Unit for any damages, loss, cost or liability caused
by such modification. The Board may require evidence that the Owner has obtained all
permits necessary for the proposed work. Construction, alteration or repair shall not be
started until written approval thereof is given by the Board. The Board shall act promptly to
process applications and render a decision. The failure of the Board to approve a proposal
within 60 days after receiving a complete application shall be deemed to constitute the
Board’s approval of the proposal.
11.7.4 Declarant Exempt. Declarant (including any successor in interest to
Declarant’s status as Declarant) shall not be subject to the restrictions of this Section 11.7.
Declarant reserves the right to exempt any Dealer to whom Declarant conveys Units from
the restrictions of this Section 11.7.
Section 11.8 Construction Work – Common Elements. Except as otherwise allowed by
the Governing Documents, or the Board, no Owner may alter any portion of the Common Elements.
Section 11.9 Landscaping. The Board may require, at the Owner’s expense, the
trimming, topping or, removal of any tree, hedge, or shrub on an Owner’s Unit that it determines is
interfering with travel on Streets, sidewalks, or trails in the Community, or presents a safety hazard
related to the Common Elements.
DECLARATION – TOWNS ON 12TH PAGE -31-
Section 11.10 Declarant Inspections. Until the expiration of all warranties given by
Declarant and the time period for filing any claims against Declarant, Declarant shall have the right,
but not the obligation, to conduct inspections and tests from time to time of all or any parts of the
Common Elements, including the Limited Common Elements, in order to ascertain the physical
condition of the improvements in the Community and to determine whether maintenance, repairs or
replacements of any such improvements are indicated. Declarant shall pay all costs of such
inspections and tests and restore the affected portion of the property to its condition immediately
prior thereto and shall indemnify the Association and Owners of any affected Units from any damage
resulting therefrom. Declarant shall have such rights of entry on, over, under, across and through the
property as may be reasonably necessary to exercise the rights described in this Section 11.10.
ARTICLE 12 SPECIAL DECLARANT RIGHTS
Section 12.1 Declarant’s Right to Complete Improvements. Declarant and its agents,
employees and contractors, successors and assigns have the right to complete any improvements and
otherwise perform work that is authorized by the Declaration, indicated on the Map, authorized by
building permits, provided for under any purchase and sale agreement, necessary to satisfy any
express or implied warranty, or otherwise authorized or required by law. Declarant also has the right
to make any modifications, improvements or changes to the Common Elements as Declarant
determines are appropriate to increase the appeal of the Community to potential buyers, to correct
problems in the design or construction of the Community, or for the benefit of one or more Units. In
conjunction with the foregoing rights, until construction of the Community is completed, Declarant
shall have the right to use any unassigned parking spaces and any portion of any garage or parking
lot for staging, storage, parking and other construction-related purposes. The foregoing rights shall
terminate the earlier of ten (10) years from the date this Declaration is recorded or when Declarant
or its successor, including a nonaffiliate successor, no longer owns a Unit or has a Development
Right.
Section 12.2 Declarant’s Right to Maintain Sales Facilities. Declarant, its agents and its
employees, successors and assigns have the right to install and maintain in any Units owned by
Declarant and in any of the Common Elements any facilities that Declarant deems necessary or
convenient to the construction, marketing, sale or rental of Units. These facilities may include but
are not limited to business offices, management offices, sales offices, construction offices, storage
areas, signs, model units and parking areas for Declarant and its employees, agents and contractors,
and prospective Tenants or purchasers and their agents. Declarant may install and maintain as many
of such facilities as it deems necessary or convenient in such locations as it deems necessary or
convenient. Declarant may relocate such facilities as it determines is appropriate in its sole discretion.
The right to install and maintain such facilities will expire when Declarant ceases to be a Unit Owner
and has no further Development Rights in the Community (including no more right to add property
to, or create additional Units in, the Community). Declarant will have a reasonable time, but in no
event less than sixty (60) days after such expiration, to remove any such facilities from the
Community.
Section 12.3 Declarant’s Right to Use Easements. Declarant and its agents, employees
and contractors, successors and assigns have an easement over, across, under and through the
Common Elements of the Community as reasonably necessary for the purpose of completing
construction, exhibiting and preparing Units for sale, making repairs required pursuant to any
contract of sale, discharging Declarant’s obligations, or exercising Special Declarant Rights within
the Community or within any real estate that may be added to the Community. The foregoing rights
DECLARATION – TOWNS ON 12TH PAGE -32-
shall terminate the earlier of ten (10) years from the date this Declaration is recorded or when
Declarant or its successor, including a nonaffiliate successor, no longer owns a Unit or has a
Development Right. The Declarant further reserves mutual nonexclusive easements over, across, and
through the Common Elements of the Community for the benefit of the Declarant and its successors
and assigns as present and future owners, and for the benefit of the Association and all Owners of
Units in the Community as follows: (i) for ingress to and egress over the roadways and pathways of
the Community and the Additional Property, if any, (ii) to have access to and to tie into and utilize
any water, sanitary sewer, storm sewer, electricity, gas, telephone, cable, television, or other utility
lines now or hereafter established in the Community and on the Additional Property, if any, and (iii)
for the right to use the mail kiosk and trash facilities located on such properties. The easements
reserved hereby shall not be exercised in a manner that will overload or materially impair the use and
enjoyment of the roadways, pathways, and utilities by Unit Owners or the present and future owners.
Section 12.4 [Intentionally Omitted]
Section 12.5 [Intentionally Omitted]
Section 12.6 Declarant’s Right to Appoint, Remove and Veto. Until the Control
Termination Date, Declarant shall have the right to appoint and remove all officers and members of
the Board. Notwithstanding the foregoing, not later than sixty (60) days after Conveyance of twenty-
five percent (25%) of the Units that may be created to Owners other than Declarant, at least one
member and not less than 25% of the members of the Board must be elected by Owners other than
Declarant; and not later than sixty (60) days after Conveyance of fifty percent (50%) of the Units
that may be created to Owners other than Declarant, not less than one-third of the members of the
Board must be elected by Owners other than Declarant. Declarant may at any time voluntarily
terminate its right to appoint and remove officers and members of the Board by recording an
amendment to the Declaration surrendering such right. If Declarant does so, it may, for the duration
of the period ending on the Control Termination Date, retain the right to veto or approve proposed
actions of the Association or Board before they become effective. To exercise this right, Declarant
must execute and record an instrument that specifies the proposed actions that may be vetoed or
approved by Declarant. The foregoing rights shall terminate on the Control Termination Date.
Section 12.7 Declarant’s Right to Control Architectural Committees. Until Declarant no
longer owns any Unit in the Community and no longer has a Development Right to create any Units
in the Community or real estate added to the Community, Declarant has the right to appoint and
remove all officers and members of any construction, design review or aesthetic standards committee
of the Association. In addition, during the period set forth in this Section 12.7, Declarant shall have
the right to control any construction, design review or aesthetic standards review or approval process.
Declarant may voluntarily terminate its right to appoint and remove officers and members of any
such committee or control any process by recording an amendment to the Declaration surrendering
the right to appoint and remove officers and members of such committee. If Declarant does so, it
may, for the duration of the period set forth in this Section 12.7, exercise the right to approve certain
actions of any such committee before they become effective. The foregoing rights will terminate on
the later of the date Declarant no longer owns any Unit in the Community, or the date Declarant no
longer has a Development Right to create any Units in the Community or in real estate added to the
Community.
Section 12.8 Declarant’s Right to Attend Association Meetings. Declarant has the right,
whether or not it owns any Units in the Community, to attend all meetings of the Association, except
DECLARATION – TOWNS ON 12TH PAGE -33-
during any executive session when Owners are excluded. The Association shall send Declarant
notices of all meetings and copies of all minutes of all meetings at the same time that such items are
sent to Unit Owners. Notices and minutes shall be delivered to Declarant in a Tangible Medium at
the address specified in Section 26.1 or in such other manner as Declarant shall specify in a Record
from time to time. The foregoing rights shall terminate the earlier of ten (10) years from the date
this Declaration is recorded or when Declarant or its successor, including a nonaffiliate successor,
no longer owns a Unit or has a Development Right.
Section 12.9 Declarant’s Right to Association Records. Declarant has the right, whether
or not it owns any Units in the Community, to have access to the Books and Records of the
Association to the same extent as a Unit Owner, including, without limitation, pursuant to Section
13.7 and Section 13.8 of this Declaration. The foregoing rights shall terminate the earlier of ten (10)
years from the date this Declaration is recorded or when Declarant or its successor, including a
nonaffiliate successor, no longer owns a Unit or has a Development Right.
Section 12.10 [Intentionally Omitted]
Section 12.11 Declarant’s Right to Add Improvements to the Community. Declarant has
the right to add the following improvements to the Community: Common Elements and any utilities,
storm drainage improvements, and other improvements therein. The foregoing rights shall terminate
the earlier of ten (10) years from the date this Declaration is recorded or when Declarant or its
successor, including a nonaffiliate successor, no longer owns a Unit or has a Development Right.
Section 12.12 Declarant’s Right to Create Common Elements. The Declarant has the right
to create the Common Elements upon the Property. The Declarant is not, however, required to create
any such Common Elements. The foregoing rights shall terminate the earlier of ten (10) years from
the date this Declaration is recorded or when Declarant or its successor, including a nonaffiliate
successor, no longer owns a Unit or has a Development Right.
Section 12.13 Declarant’s Right to Combine Units or Convert Units to Common Elements.
The Declarant has the right to combine Units or convert any Unit that has not been conveyed to an
Owner other than a Declarant into Common Elements. The Declarant will be the Owner of any new
Unit so created. The foregoing rights shall terminate the earlier of ten (10) years from the date this
Declaration is recorded or when Declarant or its successor, including a nonaffiliate successor, no
longer owns a Unit or has a Development Right. When and if the Declarant combines or converts
Units, it will recalculate the Allocated Interests of the Units using the same formulas as provided in
Section 6.1, and will amend this Declaration accordingly.
Section 12.14 [Intentionally Omitted]
Section 12.15 Declarant’s Right to Reallocate Limited Common Elements Allocated to
Unsold Units. The Declarant has the right to reallocate any Limited Common Element allocated to
any Unit that has not been conveyed to an Owner other than the Declarant. The foregoing rights
shall terminate the earlier of ten (10) years from the date this Declaration is recorded or when
Declarant or its successor, including a nonaffiliate successor, no longer owns a Unit or has a
Development Right.
Section 12.16 Exercise of Development Rights.
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12.16.1 General. To exercise any Development Right reserved under this Article
12, Declarant shall prepare, execute and record an amendment to the Declaration. In
conjunction therewith, Declarant shall record an amendment or supplement to the Map if the
previous Map lacks the required detail, certification or other matters required under the CIC
Act.
12.16.2 Conversion of Common Elements. Whenever Declarant exercises the
Development Right to convert Units to Common Elements, the amendment to the
Declaration must reallocate all the Allocated Interests of that Unit among the other Units as
if that Unit had been taken by condemnation under Section 22.
Section 12.17 Use of Property Subject to Development Rights. The Owners shall have the
right to use the driveways, sidewalks, garage, parking spaces, and open spaces of the Community,
subject to Declarant’s Special Declarant Rights.
Section 12.18 Responsibility for Expenses. Declarant shall be responsible for all expenses
incurred in connection with real estate subject to Development Rights. Notwithstanding the
foregoing, all expenses associated with the operation, maintenance, repair and replacement of any
Common Element that the Owners have a right to use (including, without limitation, amenities,
parking spaces, drives, Streets, sidewalks, trails and open spaces) must be paid by the Association as
a Common Expense. Declarant’s responsibility shall cease upon the exercise or expiration of such
Development Rights, whichever is earlier. Declarant may pay such costs directly or through the
Association. Declarant is also entitled to all income from such portions of the property and any
improvements thereon until the exercise or expiration of such Development Rights.
Section 12.19 Different Parcels; Different Times. Any Development Right may be
exercised with respect to different parcels of real estate at different times. No assurances are made
as to final boundaries of such parcels or as to the order in which those parcels may be subject to the
exercise of each Development Right. Even though a Development Right is exercised in any portion
of the real estate subject to that right, that right need not be exercised in all or in any other portion of
the remainder of that real estate.
Section 12.20 Liens. Any liens that arise in connection with Declarant’s ownership of or
construction of additional improvements shall attach only to Declarant’s interest in any
improvements owned by Declarant or against Declarant’s Special Declarant Rights and shall not
adversely affect the rights of other Unit Owners or the priority of Mortgages on the Units. All taxes
and costs relating to improvements before the Units therein have been created shall be paid by or
allocated to Declarant.
Section 12.21 Transfer of Special Declarant Rights. The rights described in this Article
12 shall not be transferred except by instrument evidencing the transfer of all or part of the Special
Declarant Rights executed by Declarant or Declarant’s successor, including a nonaffiliate successor,
and the transferee and recorded in the county in which the Community is located. The rights and
liabilities of the parties involved in such a transfer and of all Persons who succeed to any Special
Declarant Right are set out in the CIC Act.
Section 12.22 Termination of Special Declarant and Development Rights. Each Special
Declarant Right and Development Right shall terminate as set forth above. Declarant may, however,
DECLARATION – TOWNS ON 12TH PAGE -35-
voluntarily terminate any or all aspects of its Special Declarant Rights or Development Rights at any
time by recording an amendment to the Declaration specifying which rights are thereby terminated.
Section 12.23 Liability for Damage. Declarant is subject to liability for the prompt repair
and restoration, to a condition compatible with the remainder of the Community, of any portion of
the Community damaged by the exercise of rights reserved by Declarant pursuant to or created by
this Declaration or the CIC Act.
ARTICLE 13 OWNERS ASSOCIATION
Section 13.1 Form of Association. The Owners of Units shall constitute an owner’s
association to be known as the Towns on 12th Homeowners Association (the “Association”). The
Association shall be organized as a nonprofit corporation, no later than the date the first Unit in the
Community is conveyed. Except where expressly reserved to the Owners under the CIC Act or the
Governing Documents, the affairs of the Association shall be managed by a Board. The rights and
duties of the Board and the Association shall be governed by the provisions of the CIC Act, the
Washington Nonprofit Corporations Act, chapter 24.03A RCW, the Declaration and the Bylaws.
Section 13.2 Bylaws. The initial directors appointed in the Articles 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 CIC Act or the Governing Documents.
The 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 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. Corporations, partnerships, associations,
and other legal entities, trustees under an express trust, and other fiduciaries, as well as natural
persons, may be members of 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 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 Voting.
13.5.1 Number and Classes of Votes. The allocation of Voting Interests in the
Association is set forth in Section 6.4. Other matters concerning voting are set forth in the
Bylaws.
13.5.2 Arbitration. If the votes are tied on any matter voted upon by the members
of the Association, the matter shall be submitted to arbitration and mediation as provided in
Article 28 of this Declaration.
DECLARATION – TOWNS ON 12TH PAGE -36-
Section 13.6 Powers of Association.
13.6.1 General Powers. Except to the extent limited by the Governing Documents,
the Association shall have (i) all powers authorized under the CIC Act and the Washington
Nonprofit Corporations Act; (ii) all powers necessary for the operation of the Community or
governance of the Association; (iii) any other powers authorized by this Declaration; and
(iv) all powers that may be exercised by any corporation of the same type as the Association.
13.6.2 Capital Improvements. The Association may cause additional
improvements to be constructed within the Common Elements and may acquire, hold,
encumber, convey, and dispose of, in the Association’s name, any additional tangible or
intangible personal property. If the estimated cost of any such improvements or personal
property to the Community exceeds $25,000, the approval of the Owners holding at least
51% of the votes in the Association shall be required; and if such estimated cost exceeds
$50,000, the approval of the Owners holding 67% of the votes in the Association shall be
required. This Section 13.6.2 does not apply to maintenance, repair or replacement of
existing Common Element improvements.
13.6.3 Rules. The Board shall have the power to adopt Rules for any purpose
authorized under the CIC Act, including the power to adopt Rules to establish and enforce
construction and design criteria and aesthetic standards pertaining to the improvements and
alterations to the Community. In adopting, amending or rescinding Rules, the Board (i) shall
give consideration to the matters brought to its attention after notice to the Unit Owners; and
(ii) shall give consideration to the interests of individual Owners and Authorized Users as
well as the interests of the Association. All Rules must be reasonable. All Rules must treat
similarly situated Units, Owners and Authorized Users similarly. No Rules shall be
inconsistent with or violate the provisions of the Governing Documents. Before, adopting,
amending or repealing any Rule, the Association must give all Owners notice of: (i) its
intention to adopt, amend, or repeal a Rule and provide the text of the Rule or the proposed
change; and (ii) a date on which the Board will act on the proposed Rule or amendment after
considering comments from Owners. Following adoption, amendment, or repeal of a Rule,
the Association must give notice to the Owners of its action and provide a copy of any new
or revised Rule.
Section 13.7 Accounts, Records, Financial Statements, Audits and Funds. 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. To assure that the unit owners are correctly assessed for the actual expenses of the
association, the accounts of the association must be reconciled at least annually unless the board
determines that a reconciliation would not result in a material savings to any unit owner. 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
shall be audited at least annually by a certified public accountant who is not a member of the Board
or an Owner unless the annual Assessments for the year were less than $50,000.00 and Owners
holding a majority of the votes, excluding votes held by Declarant, waive the audit for that year. The
DECLARATION – TOWNS ON 12TH PAGE -37-
financial statement shall be completed in time for the Association’s annual meeting and in any event
within 120 days following the end of the fiscal year. Any Mortgagee of a first Mortgage, and
Declarant pursuant to Article 12, will be entitled to receive the audited financial statement upon
written request. The Board, or Persons having 35% of the voting power of the Association, may
require that an audit of the Association and management books be presented at any special meeting.
An Owner or Mortgagee, or Declarant pursuant to Article 12, at such Person’s expense, may at any
reasonable time conduct an audit of the books of the Board and Association. Upon written request
of Freddie Mac, Fannie Mae, HUD or VA, if it is a Mortgagee or prospective Mortgagee, the
Association shall provide within a reasonable time an audited financial statement of the Association
for the preceding fiscal year.
Section 13.8 Inspection of Documents, Books and Records. The Association shall make
available for inspection upon request, during normal business hours or under other reasonable
circumstances to Owners, Mortgagees, prospective purchasers and their prospective Mortgagees, and
Declarant pursuant to Article 12, and the agents or attorneys of any of them, current copies of the
Books and Records of the Association. Such Books and Records shall be made available at the
offices of the Association or its Managing Agent, or at a mutually agreeable time and location. The
Association may require the requesting party to pay a reasonable charge to cover the cost of making
the copies and the Books and Records shall be made available upon 10 days’ notice unless the size
of the request or need to redact information requires a longer time, but in no event later than 21 days
without a court order allowing a longer time. Records retained by an Association must have the
following information redacted or otherwise removed prior to disclosure: (a) personnel and medical
records relating to specific individuals; (b) contracts, leases, and other commercial transactions to
purchase or provide goods or services currently being negotiated; (c) existing or potential litigation
or mediation, arbitration, or administrative proceedings; (d) existing or potential matters involving
federal, state, or local administrative or other formal proceedings before a governmental tribunal for
enforcement of the Governing Documents; (e) legal advice or communications that are otherwise
protected by the attorney-client privilege or the attorney work product doctrine, including
communications with the managing agent or other agent of the Association; (f) information the
disclosure of which would violate a court order or law; (g) records of an executive session of the
Board; (h) individual Unit files other than those of the requesting Unit Owner; (i) unlisted telephone
number of any Unit Owner or resident, electronic address of any Unit Owner that elects to keep such
electronic address confidential, or electronic address of any resident; (j) security access information
provided to the Association for emergency purposes; (k) agreements that for good cause prohibit
disclosure to the members; or (l) any information which would compromise the secrecy of a ballot
cast under RCW 64.90.455(9). An Owner's consent and any other notice in the form of a Record
delivered to the Association from time to time, may indicate whether the Owner elects to keep the
Owner's electronic address confidential and exempt from disclosure by the Association pursuant to
RCW 64.90.495(2). Failure to deliver such notice permits disclosure by the Association.
ARTICLE 14 TRANSITION TO OWNER CONTROL
Section 14.1 Election of New Board. No later than the Transition Date, the Board shall
call a Transition Meeting to elect a new Board. The Persons elected to the Board at the Transition
Meeting shall take office upon such election. Nothing shall prevent previously elected or appointed
directors from being elected at such election.
Section 14.2 Transfer of Association Property. No later than 30 days after the Transition
Meeting, Declarant shall deliver to the Board elected at the Transition Meeting, or the management
DECLARATION – TOWNS ON 12TH PAGE -38-
agent of the Association, all property of the Owners and of the Association held or controlled by
Declarant pursuant to the CIC Act.
Section 14.3 Audit of Association Records. No later than 60 days after the Transition
Meeting, the Board shall engage an independent certified public accountant to audit the records of
the Association in accordance with generally accepted auditing standards, unless the Owners, other
than Declarant, by majority vote, elect to waive the audit. The cost of the audit shall be a Common
Expense.
Section 14.4 Termination of Contracts and Leases Made by Declarant. Within two years
after the Transition Meeting, the Association may terminate, without penalty, upon not less than 90
days’ notice to the other party, any of the following if it was entered into before the Transition
Meeting: (a) any management, maintenance, operations or employment contract, or lease of
recreational or parking areas or facilities or (b) any other contract or lease between the Association
and Declarant or an affiliate of Declarant, as defined in RCW 64.90.010(1) of the CIC Act. The
Association may terminate, without penalty, at any time after the board elected at the Transition
Meeting takes office, upon not less than 90 days’ notice to the other party any contract or lease that
is not bona fide or was unconscionable to the Unit Owners at the time entered into. This Section 14.4
does not apply to any lease, the termination of which would terminate the Community or reduce its
size, unless the real estate subject to that lease was included in the Community for the purpose of
avoiding the right of the Association to terminate a lease under this Section 14.4.
ARTICLE 15 THE BOARD OF DIRECTORS
Section 15.1 Qualifications of Directors 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 CIC 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
CIC Act, or the Governing Documents. The Board may delegate power to a Master Association
without amending the Declaration if such delegation is done in accordance with RCW 64.90.300 of
the CIC Act. The Board shall arrange for, and shall have the exclusive right to contract for, goods
and services necessary for the proper functioning of the Community. 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 and the
Units.
15.2.2 Additions to Common Elements. The addition of improvements or personal
property to the Common Elements.
15.2.3 Professional Services. Legal and accounting services necessary or proper
for the operation of the Community or enforcement of Governing Documents; services of a
hearing officer for quasi-judicial disputes; or services of an architect or other professional to
assist with applications for changes to the Community.
DECLARATION – TOWNS ON 12TH PAGE -39-
15.2.4 Maintenance. The maintenance, repair and replacement of the Common
Elements including any Limited Common Elements (such as the parking areas, landscaping,
and common utility facilities).
15.2.5 Other Necessary Expenditures. Any other materials, supplies, furniture,
labor, services, insurance, taxes or assessments which the Board is required to secure or pay
for pursuant to the terms of this Declaration or the Bylaws, or under law, or which, in its
opinion, is necessary or proper for the operation of the Community, or for the enforcement
of this Declaration or the Bylaws.
15.2.6 Liens. The Board may also pay any amount necessary to discharge any lien
or encumbrance levied against the entire property or any part thereof which may or is claimed
to, in the opinion of the Board, 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
Board 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.
Section 15.3 Managing Agent. Declarant or Board may contract with an experienced
professional Managing Agent to assist the Board in the management and operation of the Community
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 shall have a term no longer than one
year (but may be renewable by agreement of the parties for successive one-year periods) and shall
be terminable by the Board without payment of a termination fee, either (a) for cause, on 30 days’
written notice; or (b) without cause, on not more than 90 days’ written notice.
Section 15.4 Authority to Borrow. If the Board determines that the funds of the
Association are or will be insufficient to pay the expenses of the Association, the Association may
borrow funds to pay such expenses. To secure the repayment thereof, the Association may, encumber
(subject to the limitations set forth in this Declaration) any portion of the Common Elements.
Proceeds of the conveyance or financing are an asset of the Association. In addition, to secure the
repayment thereof, the Association may assign (subject to the limitations set forth in this Declaration)
its right to receive future income of the Association, including any receivable, right to payment, and
special and general Assessments from the Unit Owners. Prior to making such an assignment, the
Board shall provide a notice of intent to borrow to all the Owners. The notice must include the
purpose and maximum amount of the loan, the estimated amount and term of any assessments
required to repay the loan, a reasonably detailed projection of how the money will be expended, and
the interest rate and term of the loan, and must set a date for a meeting of the Owners to consider
ratification of the borrowing not fewer than 14 or more than 60 days after mailing of the notice.
Unless at that meeting, whether or not a quorum is present, the Owners to which a majority of the
votes in the Association are allocated reject the proposal to borrow funds, the Association may
proceed to borrow the funds in substantial accordance with the terms contained in the notice. 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.
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Section 15.5 Standard of Conduct. In the performance of their duties, the officers and
directors are required to exercise the degree of care and loyalty to the Association required of an
officer or a director of a corporation organized and are subject to the conflict of interest rules
governing directors and officers, under chapter 24.03A RCW.
Section 15.6 Limitations on Board Authority. 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,
without the vote or agreement of the Unit Owners, (i) amend the Declaration except as set forth in
Article 24, (ii) amend the organizational documents of the Association, (iii) terminate the
Community, (iv) elect members of the Board, or (v) determine the qualifications, powers, duties, or
terms of office of members of the Board. The Board may, in accordance with the Bylaws, fill
vacancies in its membership for the unexpired portion of any term.
Section 15.7 Limitation of Liability; Indemnification. The liability of each director,
officer and committee member, including Declarant when acting in any such capacity, shall be
limited as set forth in the Association’s Articles. Each director, officer and committee member,
including Declarant when acting in any such capacity, shall be entitled to indemnity, reimbursement
of expenses and advances of expenses as set forth in the Association’s Articles.
Section 15.8 Lawsuits or Arbitration Proceedings.
15.8.1 General. The Association may institute, defend, or intervene in litigation or in
arbitration, mediation, or administrative proceedings or any other legal proceeding (“Proceedings”)
in its own name on behalf of itself or on behalf of two or more Unit Owners, in a representative
capacity, on matters affecting the Community, but any action on behalf of Unit Owners shall not
convert any individual claims or legal rights that the Unit Owners may have into claims or rights of
the Association.
15.8.2 Notice. The Board must carefully evaluate the potential costs and risks to the
Unit Owners before committing the Unit Owners to a course of action in any Proceedings. The
Board shall evaluate those matters and promptly provide notice in a Record to the Units Owners
about any legal proceedings in which the Association is a party other than Proceedings involving the
enforcement of Rules or to recover unpaid Assessments due to the Association. The notice shall
describe: (i) the principal amount sought to be recovered; (ii) the estimated attorneys’ fees which
will be chargeable to the Association; (iii) the basis on which the attorneys’ fees will be paid (for
example, hourly, flat fee or contingent); (iv) the estimated cost of all witnesses or investigators
including bookkeepers, accountants, consultants, investigators, contractors, and experts; (v) the
nature of the Association’s claims and defenses and the amount at issue; and (vi) the negative
consequences the Unit Owners could suffer by reason of the proposed Proceedings, including the
likelihood of special Assessments and the impact of the litigation on Unit sales or refinancing while
the Proceedings are pending.
ARTICLE 16 BUDGET AND ASSESSMENTS
Section 16.1 Fiscal Year. The Board may adopt such fiscal year for the Association as it
deems to be convenient. Unless another year is adopted, the fiscal year will be the calendar year.
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Section 16.2 Preparation of Budget. Not less than thirty (30) days before the end of the
fiscal year in which Assessments are collected, the Board shall prepare a budget for the Association
for the coming year. The budget must include: (i) the projected income to the Association by
category, (ii) the projected Common Expenses and those Specially Allocated Expenses that are
subject to being budgeted, both by category, (iii) the amount of Assessments per Unit and the date
the Assessments are due, (iv) the amount of regular Assessments budgeted for contribution to the
reserve account, (v) a statement of whether the Association has a reserve study that meets the
requirements of RCW 64.90.550 the CIC Act and, if so, the extent to which the budget meets or
deviates from the recommendations of that reserve study, and (vi) the current deficiency or surplus
in reserve funding expressed on a per unit basis. The Budget shall also take into account any surplus
or deficit carried over from the preceding year and make provision for reasonable reserves for
contingencies. The Board need not reserve for items that can reasonably be funded from cash flow
or borrowing and need not adopt a “fully funded” plan or contribution and may adopt such plan and
contribution rate as it deems appropriate in its reasonable discretion. The Board may at any suitable
time require the commencement of contributions to such reserve accounts. The Board need not adopt
a new budget prior to the Transition Date, and any budget adopted during such period may be based
on the actual expenses for the Association and need not provide for accumulation of reserves.
Section 16.3 Ratification of Budget. Within 30 days after adoption of any proposed
budget for the Community, the Board shall provide a copy of the budget to all the Owners and shall
set a date for a meeting of the Owners to consider ratification of the budget not fewer than 14 or more
than 50 days after mailing of the summary. Unless at that meeting the Owners to which a majority
of the votes in the Association are allocated reject the budget, the budget and the Assessments against
the Units included in the Budget is ratified, whether or not a quorum is present. In the event the
proposed budget is rejected, or the required notice is not given, 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. 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 16.3.
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. Any revision to the budget is, however, subject to the notice requirements and the
right of Owners to ratify the revised budget set forth in Section 16.3.
Section 16.5 Assessments for Common Expenses. The sums required by the Association
for Common Expenses as reflected in the annual budget and any supplemental budget shall be
divided into installments to be paid periodically, with such frequency as determined by the Board,
over the period to be covered by the budget or supplemental budget. The Assessment for Common
Expenses for each Unit shall be the sum of (a) the Common Expense Liability of that Unit multiplied
by the total periodic installment for Common Expenses (except Specially Allocated Expenses) for
all Units; and (b) any Specially Allocated Expenses of that Unit. Assessments shall commence
against all Units that have been created by this Declaration no later than the date of the first
Conveyance of a Unit to an Owner other than Declarant. Notwithstanding the foregoing, Declarant
may delay the commencement of Assessments for some or all Common Expenses or Specially
Allocated Expenses beyond such date, in which event Declarant must pay all of the Common
Expenses or Specially Allocated Expenses that have been delayed during the period of delay.
Declarant may exercise the right to delay Assessments for any Units whether initially created or
subsequently created pursuant to a Development Right to create Units. If Declarant has paid
insurance premiums prior to the commencement of Assessments, it shall be entitled to a refund from
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the Association of any unearned premium for the period after commencement of Assessments. If the
Association does not have adequate working capital at the commencement of Assessments to
reimburse Declarant for the unearned premiums, it may deliver a promissory note to Declarant and
pay the balance due over time.
All Common Expenses of the Association benefit only those Units improved with a
completed Home. As a result, until all Units are improved with a completed Home, the expenses of
the Association are Specially Allocated Expenses (as defined in RCW 64.90.010(52)) allocated
equally among only those Units improved with a completed Home.
Section 16.6 Specially Allocated Expenses. The Common Expenses described in this
Section 16.6 shall be assessed against the Units as described herein, and not on the basis of the Unit’s
Common Expense Liability. Only the following costs can be specially allocated: (i) costs of
operation, maintenance, repair, or replacement of any specified limited common element, (ii) costs
of insurance in proportion to risk and for property insurance for the Townhouse Units, (iii) capacity
charges and assessments, and (iv) costs of one or more specified utilities in proportion to respective
usage or upon the same basis as such utility charges are made by the utility provider.
16.6.1 Limited Common Elements. Any Common Expense associated with the
operation, maintenance, repair, or replacement of the Limited Common Element Party Walls
and Building Components shall be assessed equally among those benefited Owners as a
Specially Allocated Expense unless the costs incurred are the result of the negligence of
willful misconduct of one Owner, in which case the Owner shall be responsible for the costs.
16.6.2 [Intentionally Omitted]
16.6.3 Insurance. The expense of procuring and maintaining insurance will be
assessed against the Units according to their Common Expense Liability unless the Board
determines, based on advice from the Association’s insurance broker, agent or company, that
differences in the value or replacement cost of improvements within individual Units or in
the activities conducted within Units make it appropriate to assess the cost of insurance in
accordance with risk. The expense of property insurance obtained pursuant to Section 20.2(i)
for the Townhouse Units which have a Party Wall will be assessed against the benefiting
Owners.
16.6.4 Capacity Charges and Assessments. Any Common Expenses for sewer
capacity charges, business improvement district assessments, local improvement district
assessments and other similar charges or assessments be assessed against the Units on the
same basis, or in accordance with the same formula, as the assessments or charges are
imposed by the governmental authority.
Section 16.7 Misconduct. To the extent that any Common Expense is caused by the
negligence of any Owner or Authorized User of any Unit such as damage to Common Elements, the
Association after Notice and an Opportunity to be Heard may assess exclusively against a Owner's
Unit, including expenses relating to damage to or loss of property, caused by the: (a) willful
misconduct or gross negligence of an Owner or the Owner's Authorized User; (b) failure of the
Owner to comply with a maintenance standard prescribed by the Declaration or Rules; or (c)
negligence of the Owner or the Owner's Authortized User. The Special Assessment is limited to the
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expense the Association incurred under this Section less any insurance proceeds received by the
Association, whether the difference results from the application of a deductible or otherwise.
Section 16.8 Special Assessments. For those Common Expenses which cannot
reasonably be calculated and paid on a periodic basis, the Board may levy special Assessments for
such expenses against the Units, subject to ratification by the Owners pursuant to Section 16.3;
provided that in an emergency, the Board may, without regard to limitations in the Governing
Documents, take action it considers necessary, as a result of the emergency, to protect the interests
of the Unit Owners and other Persons holding interests in the Community, acting in a manner
reasonable under the circumstances pursuant to RCW 64.90.502 of the CIC Act. The Board may
determine by a 2/3 vote that a Special Assessment is necessary. The Assessment becomes effective
immediately or in accordance with the terms of the vote; and the Board may spend funds paid on the
Assessment only in accordance with the action taken by the Board. The Board may use funds of the
Association, including reserves, to pay the reasonable costs of an action taken under this section.
After taking an action under this section, the Board shall promptly notify the Unit Owners of the
action in a manner that is practicable and appropriate under the circumstances.
Section 16.9 Reserve Studies. The Association shall obtain reserve studies and updated
reserve studies as and when required by the CIC Act. An initial reserve study must be prepared by a
reserve study professional and based upon either a reserve study professional’s visual site inspection
of completed improvements or a review of plans and specifications of or for unbuilt improvements,
or both when construction of some but not all of the improvements is complete. An updated reserve
study must be prepared annually and need not be completed each year by a reserve study
professional; provided, however, that an updated reserve study must be prepared at least every third
year by a reserve study professional and based upon a visual site inspection conducted by the reserve
study professional. Until the expiration of all warranties given by or imposed upon Declarant, and
the time period for filing any claims against Declarant, the Board shall contemporaneously send a
copy of each reserve study to Declarant at the address specified in Section 26.1, or such other address
as Declarant may specify in a Record to the Association from time to time.
Section 16.10 Creation of Reserve Account. Once Assessments for replacement reserves
are collected, the Board shall establish one or more accounts for the deposit of reserve contributions.
Any reserve account must be an income-earning account maintained under the direct control of the
Board, and the Board is responsible for administering the reserve account. The operation of the
reserve account and any Assessments for contribution to the reserve account shall be further
governed by this Article 16 and the Bylaws.
Section 16.11 Withdrawals from Reserve Accounts. The Board may withdraw funds from
the Association’s reserve accounts to pay for unforeseen or unbudgeted costs that are unrelated to
replacement costs of the reserve components. Any such withdrawal must be recorded in the minute
books of the Association. The Board must give notice of any such withdrawal to each Unit Owner
and adopt a repayment schedule not to exceed twenty-four months unless the Board determines that
repayment within twenty-four months would impose an unreasonable burden on the Unit Owners.
The Board must provide to Unit Owners along with the annual budget adopted in accordance with
Section 16.2 of this Declaration (a) notice of any such withdrawal, (b) a statement of the current
deficiency in reserve funding expressed on a per Unit basis, and (c) the repayment plan. The Board
may withdraw funds from the reserve account without satisfying the notification of repayment
requirements under this section to pay for replacement costs of reserve components not included in
the reserve study.
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Section 16.12 Payment of Assessments. On a periodic date as the Board may establish by
Rule, each Owner shall pay or cause to be paid to the treasurer or designated agent of the Association
all Assessments against the Unit due for that period, as determined by the Board. Any Assessment
that is not paid when due will be subject to late charges, interest charges and collection adopted by
the Board pursuant to Section 17.9. The Board shall have the right to change the Assessments
collection period to a monthly collection, but any additional fees associated with this change shall be
the responsibility of each Owner.
Section 16.13 Proceeds Belong to Association. All Assessments and other receipts
received by the Association on behalf of the Community shall belong to the Association.
Section 16.14 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
Assessments amounts established for the preceding year shall continue until new Assessments are
established.
Section 16.15 Certificate of Unpaid Assessments. Upon the request of any Owner or
Mortgagee of the Owner’s Unit, the Board must furnish a statement signed by an officer or authorized
agent of the Association stating the amount of unpaid Assessments against that Unit. The
Association must furnish the statement within 15 days after receiving the request. The statement
shall be binding on the Association, the Board and every Unit Owner, unless and to the extent known
by the recipient to be false. The Board may establish a reasonable fee to be charged to reimburse it
for the cost of preparing the statement.
Section 16.16 Recalculation of Assessments. If Common Expense Liabilities are
reallocated, Assessments and any installment thereof not yet due shall be recalculated in accordance
with the reallocated liabilities. The Board shall have the discretion to determine when to impose the
recalculated Assessments, but in no event, shall the Board delay imposition beyond the fiscal year
during which the Common Expense Liabilities were reallocated.
Section 16.17 Initial Contribution to Working Capital. The first purchaser (as defined in
the CIC Act) of any Unit shall, at the time of closing, pay to the Association (or Declarant as set forth
below), in addition to other amounts due, an estimated amount of Five Hundred Dollars ($500.00),
as a nonrefundable initial contribution to the Association’s working capital. Declarant shall not use
any such contributions to defray expenses that are the obligation of Declarant.
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 17 shall be prior to all other liens and encumbrances
on a Unit except: (i) liens and encumbrances recorded before the recording of this
Declaration; (ii) a Mortgage on the Unit recorded before the date on which the unpaid
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Assessment became due; and (iii) liens for real estate taxes and other governmental
assessments or charges against the Unit.
17.1.3 Except as provided in this Section 17.1.3, the lien shall also be prior to the
Mortgages described in Section 17.1.2(ii) to the extent of an amount equal to:
17.1.3.1 Assessments (whether specially allocated or not) for Common
Expenses, excluding any amounts for capital improvements, based on the periodic budgets
adopted by the Association pursuant to Article 16, which would have become due in the
absence of acceleration during the six months immediately preceding the institution of
proceedings to foreclose either the Association’s lien or a Mortgage described in Section
17.1.2(ii); plus
17.1.3.2 The Association’s actual costs and reasonable attorneys’ fees
incurred in foreclosing its lien but incurred after the giving of the notice described in Section
17.1.3.3; provided, however, that the costs and reasonable attorneys’ fees that will have
priority under this Section 17.1.3.2 shall not exceed $2,000 or an amount equal to the
amounts described in Section 17.1.3.1, whichever is less.
17.1.3.3 The notice must satisfy the requirements of RCW
64.90.485(3)(a)(iii) of the CIC Act.
17.1.4 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 estate records of the county in which the Community is located. Such recording shall not
constitute the notice referred to in Section 17.1.3.3.
Section 17.2 Judicial Foreclosure. A lien arising under this Article 17 may be enforced
judicially by the Association or its authorized representative in the manner set forth in chapter 61.12
RCW, subject to any rights of redemption under chapter 6.23 RCW. 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 months.
Section 17.3 Non-Judicial Foreclosure. A lien arising under this Article 17 may be
foreclosed non-judicially in the manner set forth in chapter 61.24 RCW for non-judicial foreclosure
of deeds of trust. For the purpose of preserving the Association’s non-judicial foreclosure option,
this Declaration shall be considered to create a grant of each Unit in trust to Chicago Title Insurance
Company or other title company or their successors or assigns (“Trustee”), to secure the obligations
of each Unit Owner to the Association for the payment of Assessments. Each Unit Owner shall
retain the right to possession of its 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 Unit Owner’s obligation to pay Assessments. The Units are
not used principally for agricultural or farming purposes. If the Association forecloses its lien non-
judicially pursuant to this Section 17.3, it shall not be entitled to the lien priority over Mortgages
provided in Section 17.1.3 and shall be subject to the limits on deficiency judgments under chapter
61.24 RCW.
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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 Effect of Foreclosure. 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; provided that in accordance with RCW 64.90.485 of the CIC Act, no member of
the Board, or their immediate family members or affiliates as defined in the CIC Act, are eligible to
bid for or purchase, directly or indirectly, any interest in the Unit at the Foreclosure sale. Nothing in
this Article 17 shall prohibit the Association from taking a deed in lieu of Foreclosure. Except as
provided in Section 17.1.3, 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. Such unpaid Assessments
shall be deemed to be Common Expenses collectible from all the Owners, including such Mortgagee
or other purchaser of the Unit. 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 17.6 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 17, 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 17.7 Extinguishment of Lien and Personal Liability. A lien for unpaid
Assessments and the personal liability for payment of Assessments are extinguished unless
proceedings to enforce the lien or collect the debt are instituted within six years after the full amount
of the Assessments sought to be recovered becomes due.
Section 17.8 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
which the same is assessed as of the time the Assessment is due. In a voluntary Conveyance, other
than by foreclosure, 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 17.9 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, not to
exceed the maximum rate calculated under RCW 19.52.020 on all subsequent delinquent
Assessments or installments thereof. If the Association has not established such a 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.
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Section 17.10 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 a suit being commenced
or prosecuted to judgment. In addition, the prevailing party shall be entitled to recover costs and
reasonable attorneys’ fees if it prevails on appeal and in the enforcement of a judgment.
Section 17.11 Limitations on Foreclosure Proceedings. The Association may not
commence an action to Foreclose a lien on a Unit under this Article 17 unless: (i) the Unit Owner, at
the time the action is commenced, owes a sum equivalent to at least three months of Assessments,
and (ii) the Board approves commencement of a Foreclosure action specifically against that Unit.
Every aspect of a collection, Foreclosure, sale or other conveyance under this Article 17, including
the method, advertising, time, date, place and terms must be commercially reasonable.
Section 17.12 Security Deposit. An Owner who has been chronically delinquent in paying
its Assessments may, from time to time, be required by the Board, after Notice and Opportunity to
be Heard, to make and maintain a security deposit not in excess of three months’ estimated
Assessments, which shall be collected and shall be subject to penalties for non-payment as are other
Assessments. The deposit shall be held in a separate fund, credited to such Owner, and may be
resorted to at any time when such Owner is 10 days or more delinquent in paying Assessments.
Section 17.13 Remedies Cumulative. The remedies provided herein are cumulative, and
the Board may pursue them, and any other remedies which may be available under law although not
expressed herein, either concurrently or in any order.
ARTICLE 18 ENFORCEMENT OF GOVERNING DOCUMENTS
Section 18.1 Rights of Action. Each Owner and its Authorized Users and the Association
shall comply with the Governing Documents and the proper decisions of the Board. Declarant shall
enjoy all the rights and assume all the obligations of an Owner as to each unsold Unit in the
Community owned by Declarant. The Association acting on behalf of the Owners or any Owner
acting on its 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. In addition to any rights authorized by the CIC Act, the
Board may, after Notice and Opportunity to Be Heard, 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 Community in violation of the
Governing Documents and to restore the property to its previous condition and, upon failure
of the Owner to do so, the Board or its designee shall have the right to enter the property,
remove the violation and restore the property to substantially the same condition as
previously existed and any such action shall not be deemed a trespass;
18.2.2 Levy Assessments to cover costs incurred by the Association to cure a
violation of the Governing Documents;
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18.2.3 Apply a security deposit posted by an Owner to any unpaid charges or
Assessments;
18.2.4 Suspend any right or privilege of a Unit Owner who fails to pay an
Assessment, which suspension must be removed no more than one (1) business day
following the Association confirmation of receipt of payment in full (funds have cleared)
from the delinquent Owner, but the Association may not (i) deny a Unit Owner or other
occupant access to the Owner’s Unit, Limited Common Elements allocated to their Unit, or
access over any Common Elements necessary to access their 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 withholding the service would endanger the health, safety, or property of any
Person; and
18.2.5 Exercise self-help or take action to abate any violation of the Governing
Documents.
Notice and Opportunity to Be Heard shall not be required in an emergency situation or in regard to
the removal of vehicles or items that are in violation of parking Rules.
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.
Section 18.4 Enforcement Discretion; No Waiver. The decision to pursue enforcement
action in any particular case shall be left to the judgment of the Board, except that the Board shall
not be arbitrary or capricious in taking enforcement action. Without limiting the generality of the
foregoing sentence, the Board may determine that, under the circumstances of a particular case:
18.4.1 The Association’s position does not justify taking action or further action;
18.4.2 The covenant, restriction or Rule being enforced is, or is likely to be,
construed as inconsistent with applicable law;
18.4.3 Although a violation may exist or may have occurred, it is not so material
as to be objectionable to a reasonable Person or to justify expending the Association’s
resources; or
18.4.4 It is not in the Association’s best interests to pursue enforcement action.
Such a decision shall not be construed to be a waiver of the right of the Association to enforce such
provision at a later time under other circumstances or preclude the Association from enforcing any
other covenant, restriction or Rule. The receipt by the Board of payment of an Assessment from an
Owner, with knowledge of a breach by the Owner, shall not be a waiver of the breach. No waiver
by the Board of any requirement shall be effective unless expressed in a Record and signed for by
the Board. This Section 18.4 also extends and applies to Declarant.
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Section 18.5 Notice and Opportunity to Be Heard. Whenever this Declaration requires
that an action of the Board be taken after Notice and Opportunity to Be Heard, the following
procedure shall be observed: The Board shall give written notice of the proposed action to all
Owners, Tenants or occupants of Units whose interest would be significantly affected by the
proposed action. The notice shall include a general statement of the proposed action and the date,
time and place of the hearing, which shall be not less than five days from the date notice is delivered
by the Board. At the hearing, the affected Person shall have the right, personally or by a
representative, to give testimony orally, in a Record or both (as specified in the notice), subject to
reasonable Rules of procedure established by the Board to ensure a prompt and orderly resolution of
the issues. Such evidence shall be considered in making the decision but shall not bind the Board.
The affected Person shall be notified of the decision in the same manner in which notice of the
meeting was given.
ARTICLE 19 TORT AND CONTRACT LIABILITY
Section 19.1 Declarant Liability. An Owner is not liable, solely by reason of being an
Owner, for an injury or damage arising out of the condition or use of the Common Elements. Neither
the Association nor any Owner except Declarant is liable for Declarant’s torts in connection with any
part of the Community which Declarant has the responsibility to maintain. An action alleging a
wrong done by the Association must be brought against the Association and not against any Owner.
An Owner is not precluded from bringing an action contemplated by this Section 19.1 because it is
a Unit Owner or a director 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, neither the Association, the Board, the Managing Agent nor
Declarant 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
Board;
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 any building; from any Unit, Common Element or part of the building; 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 or 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 Non-Liability for Design Approval. If Declarant or the ACC approves any
plans, such approval only constitutes approval of the architectural design and does not constitute
approval of: (a) engineering design; (b) compliance with Applicable Laws; (c) compliance with
regulations of any public utility; or (d) any easements or other agreements affecting the applicable
Unit. By approving such plans, Declarant and/or the ACC assume(s) no liability or responsibility
for such plans, or for any defect in any of the Structure or other improvement subject to the ACC
review (“Improvement”), or for any obstruction or impairment of view caused or created as a result
of any Improvement. Each Owner, by acceptance of a deed to a Unit, agrees: (i) that Declarant and
the ACC shall not be responsible for any damages or injuries that may result from the installation or
DECLARATION – TOWNS ON 12TH PAGE -50-
maintenance of Improvements by such Owner; and (ii) to indemnify and hold Declarant, the Board,
the ACC, and associated parties, harmless form and against any and all liabilities, claims, damages,
costs, losses, proceedings, and causes of action, including, without limitation, attorneys’ fees, arising
from such Owner’s construction, installation, demolition, repair or use of the Improvements.
Section 19.4 Limitation of Personal Liability; Indemnification. Each director and officer
of the Association shall be insulated from liability for its conduct as a director or officer of the
Association to the extent set forth in the Articles and shall be entitled to indemnification to the extent
set forth in the Articles.
ARTICLE 20 INSURANCE
Section 20.1 Required Insurance. Commencing not later than the time of the first
Conveyance of a Unit to a Person other than Declarant, the Association shall maintain in its own
name, to the extent reasonably available and subject to reasonable deductibles, insurance meeting
the requirements of this Article 20. The Association may, however, delay procurement of fidelity
insurance until the election of the Board at the Transition Meeting. All insurance must be obtained
from insurance carriers who are generally acceptable for similar projects, are authorized to do
business in the State of Washington and meet the acceptability criteria of Fannie Mae, Freddie Mac,
HUD and VA. The Board shall review at least annually the adequacy of the Association’s insurance
coverage. The Board shall promptly notify the Unit Owners if the required property or liability
insurance is not reasonably available.
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
Elements, the Units and Homes within any Unit, Limited Common Elements, Party Walls, Building
Components, common landscaping, and retaining walls, (ii) to the extent not described in the
foregoing clause, all installed machinery and equipment and personal property owned by the
Association and located outside of a Unit (including but not limited to furniture, media equipment,
and appliances used for refrigerating, ventilating, cooking, dishwashing or laundering), and (iii) all
other 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
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. To ensure
adequate property insurance coverage, the Board shall periodically obtain insurance replacement cost
appraisals of any buildings and personal property for which insurance is required under this Section
20.2.
Section 20.3 Liability Insurance Requirements. The Association shall maintain
commercial general liability insurance, including medical payments 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 (i) $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 Requirements. The Association shall maintain, or require
its Managing Agent to maintain, fidelity insurance naming the Association and its officers, directors,
trustees and employees, any Managing Agent, and all other Persons who handle or are responsible
DECLARATION – TOWNS ON 12TH PAGE -51-
for handling funds held or administered by the Association, whether or not the Person receives
compensation for services, as insured. The bond shall contain waivers of any defense based upon
the exclusion of Persons who serve without compensation from any definitions of “employee” or
similar expression. The policy must provide minimum limits at least equal to the larger of (i) the
highest amount of funds, including reserve funds, that the Association is expected to hold at any time
while the policy is in force, or (ii) three months of the expected aggregate Assessments for the policy
term, plus reserve funds. There shall be no requirement to obtain a fidelity bond prior to the
Transition Meeting.
Section 20.5 Additional Insurance Requirements. The insurance policies obtained
pursuant to the Article 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 of 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 the Owner’s authority on behalf of the Association, or any failure of the Association
to comply with any warranty or condition regarding any portion of the premises over which
the Association has no direct control, will void the policy or be a condition to recovery under
the policy; and
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.
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 20.9 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 Community 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
DECLARATION – TOWNS ON 12TH PAGE -52-
Common Ownership Interest of Owner’s Unit. Certificates of insurance shall be issued to each
Owner and Mortgagee upon request.
Section 20.7 Additional Insurance. The Association may maintain such other insurance
as the Board deems advisable; provided that notwithstanding any other provisions herein, the
Association shall continuously maintain in effect such casualty, flood, loss of maintenance fees and
liability insurance and a fidelity bond meeting the insurance and fidelity bond requirements for
similar projects established by Fannie Mae, Freddie Mac, HUD or VA, or other governmental
agencies involved in the secondary mortgage market, so long as any such agency is a Mortgagee or
an Owner of a Unit within the Community or an insurer of a Mortgage encumbering a Unit, except
to the extent such coverage is not reasonably available or has been waived in a Record by such
agency.
Section 20.8 Owners’ Individual Insurance. Each Owner of a Unit shall maintain
standard Owner’s contents coverage insurance or reasonably similar property insurance approved by
the Board for the contents of the Home’s interior, Structures, other improvements and personal
landscaping within the Owner’s Unit and such other risks as are customarily covered for similar
residential properties. Each Unit Owner and Tenant shall maintain a liability policy insuring against
liability for property damage or bodily injury caused by the Unit Owner or Tenant or those for
whom each is legally responsible, and cover any obligation to pay or reimburse the Association for
any deductible under the Association’s property insurance or for any portion of loss caused by the
insured and not covered by the Association’s property insurance. Individual unit owner’s insurance
not be less than the amount of the deductible for the policy of property insurance obtained by the
Association. Owners must obtain the required insurance from insurance carriers authorized to do
business in the State of Washington. All policies must provide that coverage may not be canceled
without 30 days’ written notice to the Association. The Board may adopt Rules that establish greater
or more specific requirements for such policies, including minimum amounts and types of coverage.
The Board may request upon the occurrence of each closing or Conveyance of a Unit, and thereafter
on annual basis (unless the Association requests evidence in the interim), and each Owner shall
deliver, evidence that the Owner has obtained and is maintaining the insurance coverage required by
this Section. If an Owner fails to have insurance meeting the requirements of this Section, the
Association shall have the right, but not the obligation, to obtain such insurance and specially assess
the cost to the Owner.
Section 20.9 Board has no Obligation to Monitor Unit Owners’ Insurance. The
Association has no insurable interest in the Units, the Homes or personal property owned by Unit
Owners, tenants or other Occupants. The Board of Directors is not obligated to monitor the existence
or nonexistence of any insurance required under Section 20.8; such responsibility, and the risks to
the Owner or tenant arising from a failure to have proper insurance are to be borne solely by the Unit
Owner or tenant as to any personal property insurance if the Unit is subject to a lease. An Owner or
tenant who fails to maintain such insurance shall be deemed to have made an election to self-insure.
A failure by the Owner or tenant to maintain such insurance or to make a claim under an existing
policy, which failure results in an inability of such person to reimburse the Association for any form
of economic loss, damage or other harm to the Association caused by such person shall constitute
willful misconduct or gross negligence on the person's part.
Section 20.10 Use of Insurance Proceeds. Any portion of the Community, for which
insurance is required under Section 20.2 which is damaged or destroyed must be repaired or replaced
promptly by the Association pursuant to Article 21.
DECLARATION – TOWNS ON 12TH PAGE -53-
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: Damage, Substantial Damage, Repair, Emergency Work. As
used in this Article 21:
21.1.1 “Damage” shall mean all kinds of damage, whether of slight degree or total
destruction, caused by casualty or other occurrence, but shall not include construction
defects, deterioration or wear and tear.
21.1.2 “Substantial Damage” shall mean that in the judgment of a majority of the
Board the estimated Assessment determined under Section 21.2.4 for any one Unit exceeds
3% of the full, fair market value of the Unit before the Damage occurred, as determined by
the then current assessed value for the purpose of real estate taxation.
21.1.3 “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. “Repair” does include
restoration of improvements or betterments installed after Conveyance by Declarant if those
improvements or betterments are not insured because the Owner failed to notify the Board
of their installation. Modifications to conform to applicable governmental Rules or available
means of construction may be made.
21.1.4 “Emergency Work” shall mean work that the Board deems reasonably
necessary to avoid further Damage or substantial diminution in value to the improvements
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
Community that the Association is required to insure 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 insured property and
loss to the Association, together with an inventory of the improvements and property directly
affected thereby.
DECLARATION – TOWNS ON 12TH PAGE -54-
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 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 provide each Owner 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 Damage, then the notice shall also explain any
further information needed by the Board to allow the Owners to make an informed decision about
Repairs to the Community and shall call a special meeting to consider whether to Repair the Damage.
If the Damage affects a material portion of the Community, the Board shall also send the notice to
each Mortgagee. If the Board fails to call a meeting within thirty (30) days of the Damage, any
Owner or Mortgagee may call such a meeting. The Board may, but is not required to, call such a
meeting in other circumstances.
Section 21.4 Execution of Repairs.
21.4.1 The Association shall promptly Repair any damaged portion of the
Community that the Association is responsible to insure and to maintain or repair unless:
21.4.1.1 The Community is terminated by vote at a special meeting called
in accordance with Section 21.3 and taken in accordance with the termination provisions of
the Declaration and CIC 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 at least 80% of the votes in the Association, including
every Owner of a Unit or Limited Common Element which will not be rebuilt, and Declarant
if Declarant has the right to create Units in the Community, vote not to Repair the Damage.
21.4.2 The Board shall have the authority to employ architects and engineers,
advertise for bids, let contracts to contractors and others and take such other action as is
reasonably necessary to make the Repairs. Contracts for the Repair work shall be awarded
when the Board, by means of insurance proceeds and sufficient Assessments, has provided
for paying the cost. The Board may authorize the insurance carrier to make the Repairs if
the Board is satisfied that the work will be done satisfactorily, and if such authorization does
not contravene any insurance trust agreement or requirement of law.
DECLARATION – TOWNS ON 12TH PAGE -55-
21.4.3 The Board may enter into a written agreement with a reputable financial
institution or trust or escrow company that the institution or company shall act as an
insurance trustee to adjust and settle any claim for casualty loss in excess of $50,000, or for
the institution or company to collect the insurance proceeds and carry out the provisions of
this Article 21.
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. The cost of Repair or replacement in excess of insurance proceeds,
reserves, and deductibles paid by Owners, is a Common Expense.
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 remainder of
the Community;
21.5.2 The insurance proceeds attributable to Units and Limited Common
Elements that are not repaired or replaced shall be distributed to the Owners of those Units
and the Owners of the Units to which those Limited Common Elements were allocated or to
lien holders, as their interests may appear; and
21.5.3 The remainder of the proceeds shall be distributed to all the Unit Owners or
lien holders, as their interests may appear, in proportion to their Common Ownership
Interests.
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 21.5, Article 25 governs the
distribution of insurance proceeds if the Community is terminated.
ARTICLE 22 CONDEMNATION
Section 22.1 Power of Attorney. The Association shall represent the Unit Owners in any
legal proceedings related to the condemnation of all or part of the Common Elements, and shall have
the sole authority to control, negotiate and settle such matters on behalf of the Unit Owners. 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
Common Elements. Any proceeds from a condemnation shall be paid to the Association for the
benefit of affected Units and their Mortgagees, as set forth herein. Should the Association not act,
based on their right to act pursuant to this Section 22.1, the affected Owners may individually or
jointly act on their own behalf.
Section 22.2 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
DECLARATION – TOWNS ON 12TH PAGE -56-
matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by
a condemning authority, the Association shall promptly give notice of the proceeding or proposed
acquisition to each Owner and Mortgagee and to Declarant unless each and every Development Right
and Special Declarant Right has expired.
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 that 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 Allocated Interests, whether or not any Common
Elements are acquired. The award shall be distributed to the Owner or lien holder of the Unit, as
their interests may appear. Upon acquisition, 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 22.3 is thereafter a
Common Element.
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 Common Ownership Interest, whether or not any Common Elements are
acquired. The award shall be distributed to the Owner or lien holders of the Unit, as their interests
may appear. Upon acquisition, unless the decree otherwise provides: (a) that Unit’s Common
Ownership Interest and Common Expense Liability 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 is 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, 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, and the portion of the award attributable to the other Common
Elements shall be distributed to the Association. 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.
Section 22.7 Taking of Special Declarant Rights. The Association will have no power to
represent Declarant in any condemnation or eminent domain proceedings relating to any
Development Rights or Special Declarant Rights. Declarant, and not the Association, will be entitled
to receive all awards attributable to any Development Rights or Special Declarant Rights.
DECLARATION – TOWNS ON 12TH PAGE -57-
ARTICLE 23 PROCEDURES FOR SUBDIVIDING OR COMBINING UNITS
Section 23.1 Subdivision or Combination of Units; Additional Homes. Except for
additional Units or Homes, such as middle housing or accessory dwelling units, that may be created
upon a Unit under state or local statute, ordinance, rule, regulation, or other law now or hereafter in
effect, a Unit may not be subdivided into a greater number of Units, and two or more Units may not
be combined into a lesser number of Units. This Section 23.1 does not apply to the exercise of
Development Rights.
ARTICLE 24 AMENDMENT OF DECLARATION, MAP, ARTICLES OR BYLAWS
Section 24.1 Procedures. Except in cases of amendments that may be executed by
Declarant, the Association or certain Owners under other provisions of this Declaration or under the
CIC Act, the Declaration, and the Map, the Articles and the Bylaws may be amended only by vote
or agreement of the Owners as specified in this Article 24. Provisions in this Declaration pertaining
to Special Declarant Rights that have not expired may not be amended without the consent of
Declarant.
24.1.1 Any Owner or Owners may propose amendments to the Board. If
approved by a majority of the Board, the amendment shall be submitted to the members
of the Association for their consideration. If an amendment is proposed by Owners with
20% or more of the votes in the Association, the Board shall submit the amendment to
the members of the Association for their consideration at the next regular or special
meeting for which timely notice can be given. The notice for any meeting at which an
amendment will be considered shall include the text of the amendment.
24.1.2 Amendments may be adopted at a meeting of the members of the
Association or by such alternative methods as allowed by the Bylaws, after such notice
as is required by the Bylaws and this Declaration has been given to all Persons (including
Mortgagees) entitled to receive notices.
24.1.3 Upon its adoption and 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 Community is
located. The amendment shall be indexed in the name of the Community 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
Declaration or Map 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.
24.1.4 Amendments under this Section 24.1 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. Except in cases of amendments that may be executed by
a Declarant, the Association, or certain Owners as specified in RCW 64.90.245(1)(a) the CIC Act,
DECLARATION – TOWNS ON 12TH PAGE -58-
the percentages of consent of Owners and Mortgagees required for adoption of amendments to the
Declaration are as follows:
24.2.1 General. Except as set forth elsewhere in this Section 24.2, an amendment
to the Declaration or the Map shall require the vote or agreement of Unit Owners holding at
least 67% of the Voting Interest in the Association.
24.2.2 Creation of Special Declarant Rights; Increase in Units; Boundary Changes;
Changes in Allocated Interests. Except to the extent permitted or required under the CIC Act
or this Declaration, an amendment to the Declaration that creates or increases Special
Declarant Rights, increases the number of Units, or changes the Allocated Interests of a Unit
shall require the vote or agreement of the Owners holding at least 90% of the Voting Interest
in the Association, including the consent of any Owner of a Unit, the boundaries or Allocated
Interests of which will be changed by the amendment. Except to the extent permitted or
required under the CIC Act or this Declaration, the boundary of a Unit may be relocated only
by an amendment to the Declaration. A Unit Owner may request the Board to amend the
Declaration to include all or part of a Common Element within the Unit Owner's Unit. The
Board may prescribe in the amendment a fee or charge payable by the unit owner to the
association in connection with the relocation. The Board may approve the amendment only
if the Unit Owners of Units to which at least 67% of the Voting Interest in the Association,
including at least 67% of the Voting Interest not owned by the Declarant, vote under RCW
64.90.455 to approve the amendment. The Association and the Owners of the Units whose
boundaries are relocated must execute an amendment under this Section. The amendment
must contain words of conveyance between the parties. The Association shall record the
amendment as provided in RCW 64.90.285. The Association shall prepare and record an
amendment to the Map necessary to show the altered boundaries of affected Units and their
dimensions and identifying numbers.
24.2.3 Modification of Allowed and Prohibited Uses. Except to the extent
permitted or required under the CIC Act or this Declaration, an amendment to the
Declaration that allows any use of the Units other than residential use or that prohibits the
residential use of the Units shall require the vote or agreement of the Owners holding at least
90% of the Voting Interest in the Association. Any such amendment must provide
reasonable protection for a use permitted at the time the amendment is adopted.
24.2.4 Director and Officer Indemnification. 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 an Association to indemnification or any (ii) limitation of liability of
such persons, as to conduct that occurred prior to the amendment. Any current or former
director or officer affected by such amendment, who is not a Unit Owner is a third party
beneficiary of this provision entitled to enforce it.
24.2.5 Special Declarant Rights. No amendment may restrict, eliminate, or
otherwise modify any Special Declarant Right that has not expired without the consent of all
Declarants and any Mortgagee of record with a security interest in the Special Declarant
Right or in any real estate subject thereto. No amendment may restrict, eliminate, or
otherwise modify any right of directors or officers to indemnification for conduct that
occurred prior to the amendment, without the consent of that director or officer.
DECLARATION – TOWNS ON 12TH PAGE -59-
Section 24.3 Amendments by Declarant. In addition to any other rights to amend the
Governing Documents in the CIC Act or this Declaration, Declarant may at any time, upon 30 days
advance notice to the Association, adopt, execute and record an amendment or supplement to the
Governing Documents to correct a mathematical mistake, an inconsistency, or a scrivener’s error, all
within five years after the recordation or adoption of the Governing Document containing or creating
the mistake, inconsistency, error or ambiguity. Declarant may execute and record any such
amendment itself and need not otherwise comply with the requirements of this Article 24.
Section 24.4 Board Amendments to Remove Unlawful Restrictions. Subject to and in
accordance with RCW 64.90.511 of the CIC Act, the Board may amend the Governing Documents
without a vote of the Unit Owners to remove an unlawful restriction.
ARTICLE 25 TERMINATION OF COMMUNITY
Section 25.1 Action Required. Except in the case of the taking of all Units by
condemnation or a judicial termination of the Community pursuant to the CIC Act, the Community
may be terminated only by (i) agreement of Owners of Units to which at least 80% of the Voting
Interest in the Association is allocated of Units not owned by Declarant, and (ii) the consent of all
the holders, including Declarant, of any unexpired Development Rights or Special Declarant Rights.
Section 25.2 Limitation on Termination. The Community may not be terminated while
Declarant has any Development Right or Special Declarant Right without the consent of Declarant
and any Mortgagee of record with a security interest in the Development Right or Special Declarant
Right or in any real estate subject thereto, excluding Mortgagees of Units owned by Persons other
than Declarant.
Section 25.3 CIC Act Governs. The applicable provisions of RCW 64.90.290 of the CIC
Act relating to termination of common interest communities as it may be amended, shall govern the
termination of the Community, including, but not limited to, the disposition of real estate in the
Community and distribution of proceeds from the sale of real estate, and any required termination
agreement.
ARTICLE 26 NOTICES
Section 26.1 Form and Delivery of Notice. Notices to the Association, Board, any Owner
or any occupant of a Unit must be provided in such manner as provided in the CIC Act. Notices to
Declarant must be provided in a Tangible Medium and must be transmitted by mail, private carrier
or personal delivery to the following address, or such other address as Declarant may specify in
written notice to the Board or the Owners:
SSHI LLC
11241 Slater Ave NE, Suite 200
Kirkland, WA 98033
Attn: HOA Coordinator
DECLARATION – TOWNS ON 12TH PAGE -60-
ARTICLE 27 ASSIGNMENT BY DECLARANT
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.
ARTICLE 28 DISPUTE RESOLUTION
Section 28.1 Mediation and Binding Arbitration of Claims. Any and all claims, disputes
or controversies (whether under federal, state or local law) between or between or among any of the
Association, the Board or one or more Unit Owners or Authorized Users arising from or related to
(i) the Governing Documents, (ii) the Community, or (iii) the management or operation of the
Community or the Association, including, without limitation, any such claim of breach of contract,
negligence, breach of any duty under the CIC Act or breach of any alleged duty of good faith and
fair dealing (collectively, “Claim” or “Claims”), shall be resolved exclusively by binding, non-
appealable, arbitration as set forth herein. Notwithstanding the foregoing, the following matters shall
not be Claims subject to mandatory mediation or arbitration under this Article 28: (i) any action or
remedy initiated by or against any Mortgagee, (ii) judicial Foreclosure actions, (iii) non-judicial
trustee’s sales, (iv) the appointment of a receiver during Foreclosure, or (v) actions to collect or
enforce any order, decision or award rendered by arbitration.
Section 28.2 Initiation of Arbitration; Mediation. If any party to a Claim determines that
the Claim cannot be resolved without intervention, then that party shall give notice in a Tangible
Medium to all other parties to the Claim demanding that the Claim be submitted to mediation and
arbitration pursuant to this Article 28. The parties shall attempt to resolve any Claims in good faith
through mediation at the outset of any arbitration proceeding. Any administrative fees of the
mediation service and fees of the mediator shall be borne equally by the parties to the mediation.
Each party shall pay its own attorneys’ fees and costs in connection with the mediation.
Section 28.3 Arbitrator’s Authority. This Article 28 shall be deemed to be a self-
executing arbitration agreement. Without limiting the authority of the arbitrator under the applicable
arbitration rules, the arbitrator shall have the authority to decide (i) the substance of the Claim and
any defenses and counterclaims relating thereto, (ii) procedural or evidentiary issues, (iii) issues
relating to discovery, (iv) issues relating to applicable law, and (v) issues as to the interpretation or
the enforceability of this arbitration agreement, including, without limitation, its revocability,
unconscionability or voidability for any cause, the scope of arbitrable issues. The arbitrator shall
have the authority to award both damages and injunctive relief and to enforce the arbitration award.
The arbitrator shall not have the authority to award punitive or exemplary damages.
Section 28.4 Arbitration Fees. All administrative fees of the arbitration service and fees
of the arbitrator shall be borne equally by the parties to the arbitration, subject to the discretion of
the arbitrator to reallocate such fees in the interests of justice.
Section 28.5 Arbitration Service; Arbitrator. The arbitration shall be conducted by the
American Arbitration Association pursuant to its Construction Industry Arbitration Rules in effect
as of the date of the Claims notice. The arbitrator shall possess sufficient knowledge in single family
plat communities as determined by the arbitration service.
DECLARATION – TOWNS ON 12TH PAGE -61-
Section 28.6 Arbitration Procedures and Hearing. All arbitration hearings and meetings
shall occur in the county in which the Community is located. The arbitrator shall apply the
substantive law of the State of Washington. The arbitrator may allow factual discovery of information
from the parties and witnesses to the extent reasonably relevant to claims and damages at issue but
shall protect the parties from irrelevant, burdensome or unreasonable discovery. Prior to the
arbitration hearing, the parties must agree upon a written statement of the claim theories to be
arbitrated. The arbitrator shall schedule the arbitration hearing for the earliest possible time that is
consistent with fairness to the parties and the complexity of the issues. A party may request a
stenographic record of the arbitration hearing. At the conclusion of the hearing in making the award,
the arbitrator shall state in writing the theories raised by the parties and on which the award is based.
Section 28.7 Attorneys’ Fees and Costs. The arbitrator shall have the authority to award
actual reasonable attorneys’ fees and costs to the prevailing party. An attorneys’ fee award shall be
calculated based upon the actual reasonable hours spent multiplied by a reasonable hourly rate given
the experience and knowledge of the biller, without adjustment for risk, delay or difficulty. An
attorneys’ fee award must be reasonable under the Washington Rules of Professional Conduct. For
purposes of this section, a party is a prevailing party if it recovers the majority of the relief it has
claimed, or if it prevents another party from recovering the majority of the relief it has claimed,
including the enforcement of this Article 28. It may be appropriate in some cases to determine the
prevailing party on a claim by claim basis. In some cases there may be no prevailing party.
Section 28.8 Finality. The decision and award of the arbitrator shall be final and binding
and may not be appealed to an arbitration panel or a court. The arbitrator’s decision and award and
may be entered as a judgment in any state or federal court of competent jurisdiction, and a party may
institute judicial proceedings to enforce the arbitration award.
Section 28.9 Applicability of Arbitration Acts. The parties expressly agree that the use,
operation, management, development, maintenance, repair and replacement of the Community
involve and concern interstate commerce and are governed by the provisions of the Federal
Arbitration Act (9 U.S.C. § 1, et seq.) and the Washington Uniform Arbitration Act (Chapter 7.04A
RCW) now in effect and as the same may from time to time be amended, to the exclusion of any
inconsistent state or local law, ordinance or judicial rule. To the extent that any state or local law,
ordinance or judicial rule shall be inconsistent with any provision of the rules of the arbitration
service under which the arbitration proceeding shall be conducted, the rules of the arbitration service
shall govern the conduct of the arbitration.
Section 28.10 Applicability of Statutes of Limitations. No Claim can be asserted in
arbitration after the date such claim could be asserted in a judicial proceeding under applicable
statutes of limitation and repose.
Section 28.11 Enforceability. This Article 28 shall inure to the benefit of, and be
enforceable by, the Association, the Board, the Unit Owners and Authorized Users and their
respective members, managers, officers, directors, employees, agents, attorneys and insurers. The
initiation by any party who reserves the right to arbitrate of a judicial proceeding concerning this
arbitration agreement or any matter arbitrable hereunder, or the filing of a lis pendens, shall not be
deemed a waiver of the right to arbitrate or to enforce this arbitration agreement, and, notwithstanding
any provision of law to the contrary, shall not be asserted or accepted as a reason to delay or refuse
to participate in arbitration, or to refuse to enforce this arbitration agreement.
DECLARATION – TOWNS ON 12TH PAGE -62-
Section 28.12 Severability. If any provision of this Article 28 shall be determined by the
arbitrator or by any court to be unenforceable or to have been waived, the remaining provisions shall
be deemed to be severable therefrom and enforceable according to their terms.
Section 28.13 Waiver of Right to Judicial Proceedings. Each person subject to this
Declaration waives any right it may have to institute a judicial proceeding to decide a Claim, to
demand arbitration under chapter 64.50 of the Revised Code of Washington, or to demand a trial de
novo after arbitration under chapter 64.50 of the Revised Code of Washington.
Section 28.14 Waiver of Right to Jury Trial. Each person subject to this Declaration
waives any right it may have to a jury trial under federal or state law as to any dispute between them
arising from or involving a Claim. In addition, if the arbitration provisions of this Article 28 are
deemed entirely or partially invalid, void or unenforceable by the arbitrator or a judge, such that the
parties are not required to resolve their disputes through binding arbitration for any reason, any and
all Claims shall be tried before a judge in a court of competent jurisdiction in the State of Washington
in the county where the Community is located, and not before a jury, and all parties waive any right
to a trial by jury.
Section 28.15 Survival. The provisions of this Article 28 shall survive the transfer by any
party of its interest or involvement in the Community or any Unit and the termination of this
Declaration.
ARTICLE 29 BOARD MEMBER REPORTING
Section 29.1 Financial Crimes Enforcement Network (“FinCEN”) Reporting. All current
and subsequently elected and appointed Board members of the Association, in their capacity as
beneficial owners of the Association, will comply with any obligations under the Corporate
Transparency Act (as amended, the “CTA”) and with the regulations (“CTA Regulations”)
promulgated by the Financial Crimes Enforcement Network (“FinCEN”) thereunder including,
without limitation, any obligation to obtain a FinCEN Identifier by registering with FinCEN online
at https://fincenid.fincen.gov/landing, and providing such FinCEN Identifier to the current Board
along with all other necessary identifying information to allow the Board to update its Beneficial
Ownership Information Report (“BOI Report”). If required by FinCEN regulations, it shall be the
Board’s obligation to: (a) timely update its BOI Report following any changes in Board membership;
and (b) report changes in Board membership, specifically the current beneficial ownership
information for any new Board members within 30 days. A noncompliant Board member shall be
removed from the Board for failure to timely provide a FinCEN Identifier and the necessary
information to update the Association’s BOI Report, where the provision of such information is then
required under applicable law.
[Remainder of Page Left Blank; Signature and Notary Block on Following Page]
DECLARATION – TOWNS ON 12TH SIGNATURE PAGE
DECLARANT’S SIGNATURE PAGE FOR
DECLARATION OF COVENANTS, CONDITIONS, EASEMENTS AND RESTRICTIONS
Date: __________________ SSHI LLC, a Delaware limited liability
company dba D.R. Horton
By: SHLR of Washington, Inc., a
Washington corporation, its manager
By:
Ashley M. Johnson, Seattle Division
President
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
I do hereby certify that Ashley M. Johnson, personally known to me to be the Seattle Division
President of SHLR of Washington, Inc., a Washington corporation, the authorized agent of SSHI
LLC, a Delaware limited liability company dba D.R. Horton, the company that executed the within
and foregoing instrument, appeared before me and acknowledged said instrument to be the free and
voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath
stated that they are authorized to execute said instrument.
DATED: ______________________.
(Print Name)
Notary Public for the State of Washington
Residing at: _
My commission expires:
DECLARATION – TOWNS ON 12TH SCHEDULE A
SCHEDULE A
TOWNS ON 12TH
(DESCRIPTION OF REAL ESTATE SUBJECT TO DECLARATION)
PARCEL A:
THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF
SECTION 4, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON,
LYING SOUTH OF THE NE SUNSET BOULEVARD (SR-900);
EXCEPT THE EAST 280 FEET THEREOF; AND
EXCEPT THE WEST 470 FEET THEREOF; AND
EXCEPT THE SOUTH 385 FEET THEREOF; AND
EXCEPT THAT PORTION OF SAID SOUTHEAST QUARTER DESCRIBED IN STIPULATED
JUDGMENT QUIETING TITLE RECORDED UNDER RECORDING NO. 20220121001269, BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF LOT 8 OF THE PLAT OF WOODBRIER,
ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 214 OF PLATS, PAGES 6
THROUGH 10, INCLUSIVE, RECORDS OF KING COUNTY, WASHINGTON;
THENCE SOUTH 88°52'21" EAST, 3.36 FEET ALONG THE EASTERLY PROLONGATION OF THE
NORTH LINE OF SAID LOT 8;
THENCE SOUTH 01°12'21" WEST, 75.20 FEET;
THENCE NORTH 88°33'41" WEST, 3.26 FEET TO THE EAST LINE OF SAID LOT 8;
THENCE NORTH 01°07'39" EAST, 75.18 FEET ALONG SAID EAST LINE TO THE POINT OF
BEGINNING.
SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.
PARCEL B:
LOTS 1, 3, 4 AND 5, CITY OF RENTON LOT LINE ADJUSTMENT NUMBER LUA-04-106-LLA,
RECORDED UNDER RECORDING NUMBER 20050822900009, IN KING COUNTY,
WASHINGTON.
SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.
PARCEL C:
LOT 2, CITY OF RENTON LOT LINE ADJUSTMENT NUMBER LUA-04-106-LLA, RECORDED
UNDER RECORDING NUMBER 20050822900009, IN KING COUNTY, WASHINGTON.
SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.
DECLARATION – TOWNS ON 12TH SCHEDULE A
PARCEL D:
THE NORTH 80 FEET OF THE SOUTH 110 FEET OF THE WEST 92.85 FEET OF THE EAST 485.69
FEET OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 4,
TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., RECORDS OF KING COUNTY, WASHINGTON.
SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.
DECLARATION – TOWNS ON 12TH SCHEDULE B
SCHEDULE B
TOWNS ON 12TH
(MAINTENANCE RESPONSIBILITY CHART)
UNIT IMPROVEMENT: OWNED BY: MAINTAINED BY: PAID FOR BY:
Home Exterior and building Structure,
including driveway, fences, Party Walls
and Building Components
Unit Owner Association Benefited Unit Owners charged as a
Specially Allocated Expense
Home Interiors and Structures on Unit Unit Owner Unit Owner including
items that serve a single
Unit or Home per
Section 9.2
Unit Owner
Yards and Community landscaping Unit Owner Association Association: Assessed to all Units
Personal landscaping on Unit, including
pots, gardens, and the like
Unit Owner Unit Owner Unit Owner
Drainage channels, drainage ditches, water
quality swales; roof and Yard drains,
swales & drainage flow path over their
Unit
Unit Owner Association Association: Assessed to all Units;
Portions of Utility Installations Serving
Only One Unit
Unit Owner Benefited Unit Owner Benefited Unit Owner
LIMITED COMMON ELEMENT OWNED BY: MAINTAINED BY: PAID FOR BY:
Party Walls and Building Components Benefited Unit Owners Association Association: charged to Benefited Unit
Owners as a Specially Allocated Expense
COMMON ELEMENTS OWNED BY: MAINTAINED BY: PAID FOR BY:
Tracts A & B – Private Pedestrian
Access and Utilities
Association Association Association: Assessed to all Units
Tract C - Community Parking Association Association Association: Assessed to all Units
DECLARATION – TOWNS ON 12TH SCHEDULE B
Tract J –Open Space & Private Storm
Drainage
Association Association Association: Assessed to all Units
Tracts H, K & L – Critical Areas, Steep
Slope, Tree Retention & Open Space
Association Association Association: Assessed to all Units
Tracts G, M, N & O – Open Space Association Association Association: Assessed to all Units
Entry Monuments & Mail Kiosks Association Association Association: Assessed to all Units
Landscaping and Fences inside Unit
Boundaries
Association Association Association: Assessed to all Units
Private Access Easements Over
Portions of (i) Units 2, 3, 7, 8, 12, 13,
19, 20, 27, 28, 34, 35, 40, 42, 43, 48,
49, 56, 57, 62, 63, 88, 89, 90 including
lighting and signage if installed. J
Association & Unit Owners Association Association: Assessed to all Units
Retaining Walls & drain Benefited Unit Owners &
Association if located within
a Common Element Tract
Association Association: Assessed to all Units
Sign Easements Association Association Association: Assessed to all Units
Private Storm Drainage Easement Association Association Association: Assessed to All Units
PUBLIC PROPERTY OWNED BY: MAINTAINED BY: PAID FOR BY:
Public Utilities and Utility Installations
Serving Multiple Units including Tract J
Stormwater public infrastructure
City of Renton & Public
Utility
City of Renton & Public
Utility
City of Renton & Public Utility
Street Lighting City of Renton City of Renton Public Utility
Public Access Trail Over Portions of
Tract J and in Public ROW
City of Renton Association Association: Assessed to all Units
Public Access Easements Over Portions of
Tract N and Units 23, 30, 31, 45, 46, 59,
60 and 70
City of Renton City of Renton City of Renton
Keeping Sidewalk Clean and litter free City of Renton Association Association: Assessed to all Units