HomeMy WebLinkAboutRC 20170112000519 t� -r'-_�,� .;i�,-�". ,
When Recorded, Return to:
CITY OF RENTON � �
City Clerk Division
1055 South Grady Way, Suite 728
Renton, WA 98057 �- 20170112000519 �
CITY OF RENTON COV 0.00
PAGE-001 OF 059
01/12/2017 10:31
KING COUNTY, WA
201612�7001379 �
CITY OF RENTON COV 131.00
PAGE-001 OF 059 _
12/07/2016 14:31
KING COUNTY, WA
DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS FOR TALBOT AND 55TH HOMEOWNERS
ASSOCIATION
Grantor: Talbot Road, LLC, a Washington LLC.
Grantee: The Plat of Talbot and 55th;The Talbot and 55th Homeowners Association;
The Public
Legal Description: Lots 1-17 and Tracts 997, 998 and 999 of Talbot and 55th Avenue Plat, ..
RecordingNo. ���0�� l�013�� �
Assessor's Tax Parcel ID#: ��� ��� '" � �� �
Reference Nos. of Documents Released or Assigned: None �
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TABLE OF CONTENTS
ARTICLE SECTION PAGE
Article I Creation of the Community........................................................................................5
1.1. Purpose and Intent................................................................................................................5
1.2. Binding Effect........................................................................................................................5
1.3. Governing Documents..........................................................................................................5
Article II Concepts and Definitions...........................................................................................6
Articleill Use and Conduct.......................................................................................................10
3.1. Framework for Regulation...................................................................................................10
3.2. Authority to Enact Use Restrictions. ...................................................................................10
3.3. Owners'Acknowledgment and Notice to Purchasers.........................................................11
3.4. Protection of Owners and Others.......................................................................................11
Article IV Architecture and Landscaping.................................................................................12
4.1. General ...............................................................................................................................12
4.2. Design Review....................................................................................................................13
4.3. Guidelines and Procedures.................................................................................................14
4.4. No Waiver of Future Approvals...........................................................................................15
4.5. Variances............................................................................................................................16
4.6. Limitation of Liability............................................................................................................16
4.7. Certificate of Approval.........................................................................................................16
Article V Maintenance and Repair...........................................................................................16
5.1. Maintenance of Areas of Common Responsibility..............................................................16
5.2. Maintenance of Units..........................................................................................................16
5.3. Responsibility for Repair and Replacement........................................................................17
5.4. Remedies for Failure to Maintain........................................................................................17
Article VI Detention Vault,Tract 999..........................................................................18
Article VII IThe Association and its Members..........................................................................18
7.1. Function of Association.......................................................................................................18
7.2. Membership........................................................................................................................18
7.3. Voting..................................................................................................................................18
7.4. Notice..................................................................................................................................19
Article VIII Association Powers and Responsibilities..............................................................19
8.1. Acceptance and Control of Association Property. ..............................................................19
8.2. Maintenance of Areas of Common Responsibility..............................................................19
8.3. Comptiance and Enforcement.............................................................................................21
8.4. I nsu rancance.......................................................................................................................22
8.5. Implied Rights; Board Authority..........................................................................................25
8.6. Indemnification of Officers, Directors, and Others..............................................................24
8.7. Security...............................................................................................................................25
8.8. Effect of Dissofution of Association.....................................................................................26
8.9. Provision of Services ..........................................................................................................26
8.10. Relations with Other Properties..........................................................................................26
8.11. Facilities and Services Open to the Public. ........................................................................26
8.12. Permit Matters.....................................................................................................................26
8.13. Relationship with Tax-Exempt Organizations.....................................................................27
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Article IX Association Finances................................................................................................27
9.1. Budgeting and Allocating Common Expenses....................................................................27
9.2. Budgeting for Reserves......................................................................................................28
9.3. Special Assessments..........................................................................................................28
9.4. Specific Assessments.........................................................................................................28
9.5. Authority To Assess Owners; Time of Payment.................................................................28
9.6. Obligation for Assessments. ...............................................................................................29
9.7. Lien for Assessments..........................................................................................................30
9.8 Suspension of Voting Rights...............................................................................................30
9.9. Exempt Property.................................................................................................................30
9.10. Reimbursement of Declarant-Capitalization of Association..............................................30
9.11 Reimbursements from Local Jurisdictions-Assignment to Declarant................................31
Article X Expansion of the Communrty...................................................................................31
10.1. Expansion by Declarant......................................................................................................31
10.2. Expansion by the Association.............................................................................................31
10.3. Additional Covenants and Easements................................................................................31
10.4. Effect of Recording Supplemental Declaration...................................................................32
Article XI Additional Rights Reserved to Declarant................................................................32
11.1. Withdrawal of Property........................................................................................................32
11.2. Governmentallnterests.......................................................................................................32
11.3. Marketing and Sales Activities............................................................................................32
11.4. Right Ta Develop................................................................................................................32
11.5. Right To Approve Additional Covenants.............................................................................32
11.6. Right To Approve Changes in the Standards Within the Community.................................32
11.7. Right To Tcansfe�o�Assign Declarant Rights....................................................................33
11.8. Easement To Inspect and Right To Correct.......................................................................33
11.9. Right to Notice of Design or Construction Claims...............................................................33
11.10. Termination of Rights..........................................................................................................33
ArticleXII Easements..................................................................................................................33
12.1. Easements in Common Area..............................................................................................33
12.2. Easements of Encroachment..............................................................................................34
12.3. Easements for Utilities, Etc.................................................................................................34
12.4. Easements To Serve Additional Property...........................................................................35
12.5. Easements for Maintenance, Emergency, and Enforcement.............................................35
12.6. Technology Utility Easements.............................................................................................36
Article XIII Exclusive Common Area...........................................................................................36
13.1 Purpose.........................................................................................................36
13.2 Designation.................................................................................................... 36
13.3 Use by Others.................................................................................................37
Article XIV Party Walls and Other Shared Structures...............................................................37
14.1. General Rules of Law to Apply...........................................................................................37
14.2. Maintenance; Damage and Destruction. ............................................................................37
14.3. Right to Contribution Runs With Land. ...............................................................................37
14.4 Disputes..............................................................................................................................37
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Articie XV Dispute Resolution and Limitation on Litigation...................................................37
15.1. Dispute Resolution Methods...............................................................................................37
15.2. Claims and Exempt Claims.................................................................................................37
15.3. Bound Parties .....................................................................................................................38
15.4. Arbitration Agreements.......................................................................................................38
15.5. Consensus for Association Litigation..................................................................................40
15.6. Mandatory Procedures for Litigation of Ctaims...................................................................40
15.7. Allocation of Costs of Resolving Claims.............................................................................41
15.8. Enforcement of Resolution -Attorney's Fees and Costs....................................................41
Article XVI Mortgagee Provisions...............................................................................................41
16.1. Notices of Action.................................................................................................................41
16.2. Special FHLMC Provision...................................................................................................42
16.3. Other Provisions for First Lien Holders...............................................................................43
16.4. Amendments to Documents................................................................................................43
16.5. No Priority...........................................................................................................................44
16.6. Notice to Association ..........................................................................................................44
16.7. Failure of Mortgagee To Respond......................................................................................44
16.8. Construction of Article XV.....--�...........................................•-•�-�-�------..............._..................44
16.9. Amendment by Board.........................................................................................................44
Article XVII Changes in Ownership of Units...............................................................................44
Article XVIII Changes in Common Area......................................................................................44
18.1. Condemnation.....................................................................................................................44
18.2. Partition...............................................................................................................................45
18.3. Transfer or Dedication of Common Area............................................................................45
Article XIX Amendment of Declaration....................................................................................45
19.1. By Declarant........................................................................................................................45
19.2. By Members........................................................................................................................45
19.3. Validity and Effective Date..................................................................................................46
19.4. Exhibits................................................................................................................................46
EXHIBITS
A Land Initially Submitted to Declaration
B Initial Use Restrictions
C Rules of Arbitration
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DECLARATION OF COVENANTS, CONDITIONS, AND
RESTRICTIONS FOR TALBOT AND 55TH HOMEOWNERS
ASSOCIATION
THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS for Talbot and
55th Homeowners Association is made this day of , 2016, by Talbot Road,
LLC a Washington LLC. ("Declarant").
Article I Creation of the Community
1.1. Purqose and Intent. Declarant, as an owner of the real property described in Exhibit"A,"
intends by Recording this Declaration to create a general plan of development for the community
identified in the title to this Declaration. This Declaration provides a flexible and reasonable procedure for
the future expansion of the Properties to include additional real property as Declarant deems appropriate,
and provides for the overall development, administration, maintenance, and preservation of the real
property now and hereafter comprising the Properties. An integral part of the development plan is the
creation of a Homeowners Association comprised of all owners of real property in the Properties to own,
operate, and maintain various common areas and community improvements, and to administer and
enforce this Declaration and the other Governing Documents referred to in this Declaration.
1.2. Bindina Effect. All property described in Exhibit "A," and any property which is made a
part of the Properties in the future by Recording one or more Supplemental Declarations, or Amendments
to the Declaration, shall be owned, conveyed, and used subject to all of the provisions of this Declaration,
which shall run with the title to such property. This Declaration shall be binding upon all Persons having
any right, title, or interest in any portion of the Properties, their heirs, successors, successors-in-title, and
assigns.
This Declaration shall be enforceable by the Declarant, the Association, any Owner, and their
respective legal representatives, heirs, successors, and assigns, perpetually to the extent permitted by
law. If, however, the period for the enforcement of covenants running with the land is limited by law, the
Declaration shall be enforceable as provided above for a period of 20 years. After such time, this
Declaration shall be extended automatically for successive periods of 10 years each, untess an
instrument signed by a majority of the then Owners has been Recorded within the year preceding any
extension, agreeing to amend, in whole or in part, or terminate this Declaration, in which case this
Declaration shall be amended or terminated as specified in such instrument.
Nothing in this Section shall be construed to permit termination of any easement created in this
Declaration without the consent of the holder of such easement. If any provision of this Declaration is
determined by judgment or court order to be invalid, or invalid as applied in a particular instance, such
determination shall not affect the validity of the other provisions or applications.
1.3. Governinq Documents. The Governing Documents create a general plan of development
for the Properties which may be supplemented by additional covenants, restrictions, and easements
applicable to the Properties. In the event of a conflict befinreen or among the Governing Documents and
any such additional covenants or restrictions, or the provisions of any other rules or policies governing the
Properties, the Governing Documents shall control. Nothing in this Section shall preclude any
Supplemental Declaration or other Recorded covenants applicable to any portion of the Properties from
containing additional restrictions or provisions which are more restrictive than the provisions of this
Declaration. All provisions of the Governing Documents shalt apply to all Owners and to all occupants of
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their Units, as well as their respective tenants, guests, and invitees. Any lease on a Unit shall provide that
the lessee and all occupants of the leased Unit shall be bound by the terms of the Governing Documents.
Article II Concepts and Definitions
The terms used in the Governing Documents shall generally be given their natural, commonly
accepted definitions unless otherwise specified. Capitalized terms shall be defined as set forth below.
2.1. "Areas of Common Responsibility": The Common Area, together with such other areas
the Association has or assumes responsibility pursuant to the terms of this Declaration, any Supplemental
Declaration, or the Plat, other applicable covenants, contracts, or agreements.
2.2. "Articles of Incorooration" or "Articles": The Articles of Incorporation of the Homeowners
Association, as filed with the Washington Secretary of State to estabiish the Association as a non-profit
corporation under Washington State law.
2.3. "Association": The non-profit homeowners Association formed with the Washington State
Secretary of State for the purpose of administering this Declaration on behalf of the Owners, and its
successors or assigns. The name of the Association is"Talbot and 55th Homeowners Association."
2.4. "Base Assessment": Assessments levied on all Units subject to assessment under
Article VIII to fund Common Expenses for the general benefit of all Units, as determined in accordance
with Section 8.1.
2.5. "Board of Directors" or "Board": The body responsible for administration of the
Association, selected as provided in the Bylaws and serving as the Board of Directors under Washington
corporate law.
2.6. "Builder": Any Person who purchases one or more Units for the purpose of constructing
improvements for later sale to consumers, or who purchases one or more parcels of land within the
Properties for further subdivision, development, and/or resale in the ordinary course of business.
2.7. "Bylaws": The Bylaws of the Association, as they may be amended, which govern the
Association's internal affairs, such as voting rights, elections, meetings, sefec#ion of officers, etc.
2.8. "Class "B" Control Period": The period of time during which the Class "B" Member is
entitled to appoint a majority of the members of the Board. The Class "A" and Class "B" Members are
defined in Section 7.3. The Class"B"Control Period expires upon the first to occur of the following:
(a) when 100% of the total number o# Units for the property described in Exhibit "A"
and any additional property added to the terms of this Declaration pursuant to
Article IX, Section 10.1 have been conveyed to Class "A" Members other than
Builders;
(b) a date 10 years from the date this Declaration is Recorded; or
(c) when, ih their discretion, the Class"8"Members so determine.
2.9. "Common Area": All real and personal property, including easements, which the
Association owns, leases, or otherwise holds possessory or use rights in for the common use and
enjoyment of the Owners, including, without limitation, entrance tracts, perimeter buffers, restrictive areas,
parks, surface water retention/detention tracts, landscape tracts, private roads, the Native Growth
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Protection Tract, the Open Space Tract and other tracts or parcels conveyed to the Association by
Declarant. The term shall include the Exclusive Common Area and the Community Area, as defined
below.
2.10. "Common Expens�s": The actual and estimated expenses incurred, or anticipated to be
incurred, by the Association for the general benefit of all Owners, including any reasonable reserve, as
the Board may find necessary and appropriate pursuant to the Governing Documents.
2.11. "Community Area": The real and personal property so designated by Declarant, and
which is owned and/or maintained by the Association for the common benefit of all Persons. The
Community Area may include, if designated by the Declarant on the face of the Plat, or in a Recorded
document conveying such Community Area to the Association or action taken by the Association:
(a) the main entry and identification features, incfuding afl signage, landscaping, and
other improvements which are a part thereof;
(b) private roads, sidewalks and community-wide location and directional signage if
not owned and the maintenance assumed by the Local Jurisdiction;
(c) recreational amenities and private storm drainage systems depicted on the Plat;
(d) the hard surface and soft service trails (private trails and any supplemental
maintenance of public trails), including signage;
(e) wetlands, sensitive areas, open space, conservation areas, buffers, drainage
areas, natural habitat preserves, and similar areas designated by Declarant, and all appurtenant
monitoring or reporting obligations associated therewith, if not owned and the maintenance assumed by
the Local Jurisdiction;
(� the landscaping adjacent to arterial roadways and buffers, which may be located
in an easement area shown on the recorded plat and regardless of whether such property is in the public
rights-of-way(to the extent permitted by the applicable governmental agency);
(g) if required on the face of the Plat, or if the Association assumes responsibility by
Board or Member vote, the community parks and any other parks designed as a Community Area by
Declarant, to the extent permitted by the Local Jurisdiction; otherwise, such landscaping shall not be
included within the Areas of Common Responsibility, and shall be maintained by the Owners of the Units
adjacent to such areas, as provided in Section 5.2;
(h) landscaping located in any public parks, drainage areas, public facilities or
improvements, or other property for which the Association may provide maintenance and repair with the
consent of the Local Jurisdiction;
(i) landscaping located at the Units, if and to the extent that the Association's Board
determines that landscaping at the Units should be maintained by the Association to attain uniformity and
a higher quality aesthetic appearance;
(j) any other real or personal property, service, or facility which now, or by
amendment of this Declaration, designated to be a part of the Community Areas by the Declarant.
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2.12. "Communitv-Wide Standard": The standard of conduct, maintenance, or other activity
generally prevailing throughout the Properties. Such standard shall be established initially by Declarant
and may contain both objective and subjective elements. The Community-Wide Standard may evolve as
development progresses and as the needs and demands of the Properties change.
2.13. "Declarant": The person identified as "DeclaranY' on the signature page of this
Declaration, or any successor or assign who takes title to any portion of the property described in
Exhibit"A" for the purpose of development and/or sale and who is designated as a Declarant in a
Recorded instrument executed by the immediately preceding Declarant or assigned all or a portion of
DeclaranYs rights hereunder. Upon a designation of a successor Declarant, all rights and responsibility of
the former Declarant in and to such status as"Declarant" under this Declaration shall cease. At any time
that more than one person holds any rights as a Declarant, a single Declarant may exercise any of the
DeclaranYs rights described herein over that portion of the property owned by the single Declarant, and
sha{I not be required to obtain the conc�srrence of any other Declarant who does not hold an ownership
interest in the portion of the property over which a single Declarant desires to exercise sole authority,
except for amendment of the Declaration, which shall require the concurrence of both Declarants unless
otherwise agreed by the Declarants in writing. A single Declarant may conditionally or permanently
assign to the other Declarant all of a DeclaranYs rights hereunder, by recorded instrument.
2.14 "Declaration": This Declaration of Covenants, Conditions, and Restrictions, which creates
obligations that are binding upon the Association and all present and future owners.
2.15 "Exclusive Common Area": A portion of the Common Area primarily benefiting one or
more, but less than all, Units, as more particularly described in Article XII1.
2.16. "Governinq Documents": A collective term referring to this Declaration and any
applicable Supplemental Declaration,the Bylaws, the Articles, the Residential Design Guidetines, the Use
Restrictions, and the Rules and Regulations, as each may be amended.
2.17 "Local Jurisdiction": Any governmental authority having jurisdiction over the Properties,
for a matter described in this Declaration. A Local Jurisdiction may include the State of Washington, a
County, a City, or a local sewer or water district or other governmental entity assigned authority by law to
regulate activities in the Properties. A Local Jurisdiction may refer to different governmental authorities,
depending upon which governmenta(aufhority is assigned responsibility to regulate activities described in
this Declaration.
2.17. "Member": A Person subject to membership in the Association pursuant to Section 7.2.
2.18. "Mortqaqe": A mortgage, a deed of trust, a deed to secure debt, or any other form of
security instrument affecting title to any Unit. A "Mortgagee" shall refer to a beneficiary or holder of a
Mortgage.
2.19. "Owner": One or more Persons who hold the record title to any Unit, but excluding in all
cases any party holding an interest merely as security for the performance of an obligation. If a Unit is
sold under a Recorded contract of sale, and the contract specifically so provides, the purchaser (rather
than the fee owner)will be considered the Owner.
2.20. "Permits": Collectively, the permits, land use restrictions and conditions of Plat approval
as determined, approved and issued by the Local Jurisdiction related to the development and
construction of improvements located at the Properties, as such may be amended or modified from time
to time.
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2.21. "Person": A naturai person, a corporation, a partnership, a trustee, or other legal entity.
2.22 "PIC": The Property Improvement Committee, as described in Article IV, Section 4.2.
2.23 "Plat": The plat of the real property described in Exhibit"A," together with all requirements
described or referenced therein. "Plat" shall also incfude any property included in a plat of the real
property referred to in Exhibit "A" but not included within the description of property contained in Exhibit
"A," which property may or may not be subjected to the terms of this Declaration in the future in the
manner described in Article IX.
2.24. "Proqerties:" The reat property described in Exhibit"A," together with such additional
property, whether contiguous or noncontiguous, as is subjected to this Declaration in accordance with
Article X.
2.25. "Record," "Recordinq," or "Recorded": To file, the filing, or filed of record in the Public
Real Estate Records of the County in which the Properties are located, or such other place which is
designated as the official location for recording deeds and similar documents affecting title to real estate.
The date of Recording shall refer to that time at which a document, map, or plat is Recorded.
2.26. "Residential Desiqn Guidelines": The architectural, design, and construction guidelines
and review procedures adopted pursuant to Acticle!V, as they may be amended, which establish
architectural standards and guidelines for improvements and modifications to Units.
2.27. "Rules and Regulations": Board-adopted Rules and Regulations which establish
administrative procedures for internal Association governance and operating procedures for use of the
Common Area and property included within the Area of Common Responsibility. The Rules and
Regulations may be changed by the Association in the manner described by the Bylaws and RCW
64.38.020.
2.28 "Sale" or "Sold" shall mean the date upon which ownership of a Unit is transferred from
an Owner to another person or entity by recordation of an instrument of transfer such as a deed or real
estate contract.
2.29 "Trees" shall mean the trees that are required to be planted, located and maintained on
the property pursuant to notes on the face of the Plat, or described by this Declaration.
2.30. "Sqecial Assessment": An assessment levied in accordance with Section 9.3.
2.31. "Specific AssessmenY': An assessment levied in accordance with Section 9.4.
2.32. "Supplemental Declaration": An instrument Recorded pursuant to Article X which
subjects additional property to this Declaration and/or imposes, expressly or by reference, additional
restrictions and obligations on the land described in such instrument.
2.33. "Unit": A portion of the Properties, whether improved or unimproved, which may be
independently owned and is intended for development, use, and occupancy as an attached or detached
residence for a single family. The term shatl refer to the land, if any, which is part of the Unit as well as
any improvements thereon. tn the case of a building within a condominium or other structure containing
multiple dwellings, each dwelling shall be deemed to be a separate Unit. Prior to Recording a subdivision
plat, a parcel of vacant land, or land on which improvements are under canstruction, shall be deemed to
contain the number of Units designated for residential use for such parcel on the preliminary plat or the
site plan approved by Declarant, whichever is more recent.
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2.34. "Use Restrictions": The initial Use Restrictions set forth in Exhibit"B," as they may be
supplemented, modified, and repealed pursuant to Article IV, which govern use of property, activities, and
conduct within the Properties.
Article III Use and Conduct
3.1. Framework for Requlation. The Governing Documents establish, as part of the general
plan of development for the Properties, a framework of affirmative and negative covenants, easements
and restrictions which govern the Properties. Within that framework, the Board and the Members must
have the ability to respond to unforeseen problems and changes in circumstances, conditions, needs,
desires, trends, and technology which inevitably wilf affect the Properties, its Owners, and residents.
Toward that end, this Article establishes procedures for modifying and expanding the initia! Use
Restrictions set forth in Exhibit"B."
3.2. Authority to Enact Use Restrictions.
(a) Subject to the terms of the Permits, this Article, and the Board's duty to exercise
business judgment and reasonableness on behalf of the Association and its Members, the Board may
adopt, modify, cancel, limit, create exceptions to, or expand the Use Restrictions. The Board shall
conspicuously publish notice concerning any such proposed action at least five business days prior to the
Board meeting at which such action is to be considered. Members sha44 have a reasonab{e opportunity to
be heard at a Board meeting prior to such action being taken.
Such action shall become effective, after compliance with the distribution requirements below,
unless disapproved at a meeting by Members representing more than 50% of the total Class"A" votes in
the Association and by the Class"B" Members, if any. The Board shall have no obligation to call a
meeting of the Members to consider disapproval except upon receipt of a petition as required for special
meetings in the Bylaws. Upon receipt of such petition prior to the effective date of any Board action under
this Section 3.2(a), the proposed action shall not become effective until after such meeting is held, and
then subject to the outcome of such meeting.
Alternatively, Members representing more than 50% of the total Class"A" votes in the
Association at an Association meeting duly called for such purpose, may vote to adopt Use Restrictions
which modify, cancei, fimit, create exceptions to, or expand the Use Restrictions then in effect. Such
action shall require approval of the Class"B" Members, if any.
Prior to any action taken under this Section 3.2(a) becoming effective, the Board shall send a
copy of the new Use Restriction or explanation of any changes to the Use Restrictions to each Owner.
The effective date shall be at least 30 days following distribution to Owners. The Association shall
pravide, without cost, a copy of the Use Restrictions then in effect to any requesting Member or
Mortgagee.
Nothing in this Article shall authorize the Board or the Members to modify, repeal, or expand the
Residential Design Guidetines or other provisions of this Declaration. In the event of a conflict between
the Residential Design Guidelines and the Use Restrictions, the Residential Design Guidelines shall
control.
(b) The procedures required under this Section 3.2 shall not apply to the enactment
and enforcement of Rules and Regulations (e.g., administrative issues, regulations governing the use of
the Common Area, etc.) unless the Board chooses in its discretion to submit to such procedures.
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Examples of such administrative Rules and Regulations shali include, but not be limited to: hours of
operation of a recreational facility, use of private trails, and the method of allocating or reserving use of a
facility (if permitted) by particular individuals at particular times. The Board shall exercise business
judgment in the enactment, amendment, and enforcement of such administrative Rules and Regulations.
3.3. Owners' Acknowledgment and Notice to Purchasers. All Owners are given notice that
use of their Units and the Common Area is limited by the Use Restrictions as they may be amended,
expanded, and otherwise modified hereunder. Each Owner, by acceptance of a deed, acknowledges and
agrees that the use and enjoyment and marketability of his or her Unit can be affected by this provision
and that the Use Restrictions may change from time to time. All purchasers of Units are on notice that
changes may have been adopted by the Association. Copies of the current Use Restrictions may be
obtained from the Association.
3.4. Protection of Owners and Others. Except as may be contained in this Declaration either
initially or by amendment or in the initial Use Restrictions set forth in Exhibit"B," all Use Restrictions shall
comply with the following provisions:
(a) Similar Treatment. Similarly situated Owners shall be treated similarly.
(b) Displa,r�s. The rights of Owners to display religious and holiday signs, symbols,
and decorations inside structures on their Units of the kinds normally displayed in dwellings located in
single-family residential neighborhoods shall not be abridged, except that such shall be consistent with
the Local Jurisdiction's Ordinances and the Association may adopt time, place, and manner restrictions
with respect to any displays (including those outside of a dwelling) visible from outside the dwelling. No
Use Restrictions shall regulate the content of potitical signs; however, rules may regulate the time, place,
and manner of posting such signs (including design criteria) and the Local Jurisdiction's Ordinances shall
apply.
(c) Household Composition. No Use Restriction shall interfere with the freedom of
Owners to determine the composition of their households, except that the Association shall have the
power to require that all occupants be members of a single housekeeping unit, to limit rental of Units {as
applicable by the law), and to limit the total number of occupants permitted in each Unit on the basis of
the size and facilities of the Unit, its fair use of the Common Area, and on the basis of compliance with
applicable the Local Jurisdiction's Ordinances. Use Restrictions may be adopted by the Association to
limit or prohibit the occupancy of Units by persons who have been convicted of a crime for which
continued supervision after conviction is imposed upon the proposed occupant.
(d) Activities Within Dwellinqs. No Use Restriction shall interfere with the activities
carried on within the confines of dwellings, except that the Association may prohibit activities not normally
associated with property restricted to residential use, it may restrict rental of Units (as applicable by the
law), and it may restrict or prohibit any activities that create monetary costs for the Association or other
Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive
noise or traffic, that create unsightly conditions visible outside the dwelling, that create an unreasonable
source of annoyance, or that involve illegal conduct.
(e) Household Occuqations. No Use Restriction may interfere with the rights of an
Owner or occupant residing in a Unit to conduct business activities within the Unit so long as (i) the
existence or operation of the business activity is not apparent or detectable by sight, sound or smell from
outside the Unit; (ii) the business activity is consistent with the residential character of the Properties and
does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of
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other residents of the Properties, as may be determined in the Board's sole discretion; (iii) any goods,
materials or supplies used in connection with any trade, service or business, wherever the same may be
conducted, be kept or stored inside any building on any Unit and that they not be visible from the exterior of
the home and (iv) it is as otherwise allowed by the Permits and applicable law. Nothing in this Section
shall permit (1) the use of a Unit for a purpose which violates law, regulations, rules or applicable zoning
codes, or (2) activities that cause a significant increase in neighborhood traffic, or (3) modification of the
exterior of the Unit. The Board may, from time to time, promufgate rutes restricting the activities located on
the Properties pursuant to the authority granted to the Association under this Declaration, the Bylaws, and
RCW Chapter 64.38.
(� Allocation of Burdens and Benefits. No Use Restriction shall alter the allocation
of financial burdens among the various Units or rights to use the Common Area to the detriment of any
Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision shall
prevent the Association from changing the Common Area available, from adopting generally applicable
Rules and Regulations for use of Common Area, or from denying use privileges to those who abuse the
Common Area or violate the Governing Documents. This provision does not affect the right to increase
the amount of assessments as provided in Article VIII.
(g) Alienation. The Association may not impose any fee on the transfer of any Unit
greater than an amount reasonably based on the costs to the Association of administering that transfer.
The Association may regulate the leasing or rental of Units(as applicable by the law).
(h) Abridging Existinq RiQhts. No Use Restriction shall require an Owner to dispose
of personal property that was in or on a Unit prior to the adoption of such Use Restriction and which was
in compliance with alt Use Restrictions previously in force. This dispensation shall apply only for the
duration of such Owner's ownership of such personal property, and this right shall not run with title to any
Unit.
(i) Reasonable Rights To Develo�. No Use Restriction, Rule or Regulation, or
action by the Association or Board shall unreasonably impede Declarant's right to develop the Properties
or other portions of the community.
The limitations in subsections (a)through (h)of this Section shall only timit the authority exercised
under Section 3.2; they shall not apply to amendments to this Declaration adopted in accordance with
Article XIX.
Article IV Architecture and Landscaping
4.1. General. No structure or thing shal! be placed, erected, or insta!!ed upon any Unit within
the Properties and no improvements o� other work (including staking, ctearing, excavation, grading and
other site work, exterior alterations of existing improvements, or planting o� removal of landscaping) shall
take place within the Properties, except in compliance with this Article, the Residential Design Guidelines
adopted pursuant to this Declaration.
Approval of the PIC shall not be required to repaint the exterior of a structure in accordance with
the originally approved color scheme or to rebuild in accordance with originally approved plans and
specifications. Any Owner may remodel, paint, or redecorate the interior of his or her Unit without
approval, provided that the work performed complies with alt laws applicable to the Locaf Jurisdiction.
However, modifications to the interior of screened porches, patios, and similar portions of a Unit visible
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from outside the structure and modifications to enclose garages as living space shall be subject to
approval.
All dwellings constructed on any portion of the Properties shall be designed by and built in
accordance with the plans and specifications of a licensed architect or licensed building designer unless
otherwise approved by Declarant or DeclaranYs designee, in its sole discretion. This Article shall not
apply to Declarant's activities, nor to the Association's activities during the Class "8"Control Period.
4.2. Desiqn Review.
(a) Bv Declarants. Each Owner, by accepting a deed or other instrument conveying
any interest in any portion of the Properties, acknowledges that Declarant has a substantial interest in
ensuring that the improvements within the Properties enhance Declarant's reputation as a community
developer and do not impair Declarant's ability to market, sell, or lease their property. Therefore, each
Owner agrees that no activity within the scope of this Article ("Work"} shatl be commenced on such
Owner's Unit unless and until Declarant or DeclaranYs designee has given its prior written approval for
such Work, which approval may be granted or withheld in Declarant's or DeclaranYs designee's sole
discretion.
In reviewing and acting upon arry request for approval, Declarant or its designee shal! be acting
solely in DeclaranYs interest and shall owe no duty to any other Person. Declarant's rights reserved
under this Article shall continue so long as Declarant owns any portion of the Properties or any real
property described in Exhibit A, unless earlier terminated in a written instrument executed and Recorded
by Declarant. Declarant may, in its sole discretion, designate one or more Persons from time to time to
act on Declarant's behalf in reviewing applications hereunder.
Declarant may from time to time, but shall not be obligated to, delegate all or a portion of the
Declarant's reserved rights under this Article to (i)a Property Improvement Committee appointed by the
Association's Board of Directors (the "PIC"), or (ii)a committee comprised of architects, engineers, or
other persons who may or may not be Members of the Association. Any such delegation shall be in
writing, spec9fying the scope of responsibilities delegated, and shall be subject to (i) Declarant's right to
revoke such delegation at any time and reassume jurisdiction over the matters previously delegated; and
(ii) DeclaranYs right to veto any decision which Decfarant determines, in Declarant's sole discretion, to be
inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article, the
jurisdiction of the foregoing entities shall be limited to matters specifically delegated by Declarant.
(b) Propertv Improvement Committee. Upon delegation by Declarant or upon
expiration or termination of DeclaranYs rights under this Article, the Association, acting through the PIC,
shall assume jurisdiction over design, property modification and architectural matters in the Property. The
PIC, when appointed, shall consist of at least three, but not more than seven, persons who shall serve
and may be removed and replaced in the Board's discretion. The members of the PIC need not be
Members of the Association, the Board, or representatives of Members, and may, but need not, include
architects, engineers, or similar professionals, whose compensation, if any, shall be established from time
to time by the Board. If the PIC is not formed, or is determined to lack authority to exercise the powers
assigned to it for any reason, the Board shall act as the PIC and may delegate any portion of the PIC's
duties to any person, subject to finat approval or ratification by the Board. The PIC may be broken into or
may form subcommittees to preside over particular areas of review (e.g., a new construction
subcommittee and a modifications subcommittee.) Any reference herein to the PIC should be deemed to
inctude a reference to any such subcommittee.
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Unless and untii such time as Decla�ant delegates all or a portion of its reserved rights to the PIC
or DeclaranYs rights under this Article terminate, the Association shall have no jurisdiction over
architectural matters. For purposes of this article, the entity having jurisdiction in a particular case shall
be referred to as the"Reviewer."
(c) Reviewer Fees; Assistance. The Reviewer may establish and charge reasonable
fees for review of appfications hereunder and may require such fees to be paid in fu11 prior to review of
any application. Such fees may include the reasonable costs incurred in having any application reviewed
by architects, engineers, or other professionals. Declarant and the Association may employ architects,
engineers, or other persons as deemed necessary to perform the review. The Board may include the
compensation of such persons in the Association's annual operating budget as a Common Expense.
4.3. Guidelines and Procedures.
(a) Residential Desian Guidelines. Declarant may prepare the initial Residential
Design Guidelines, which may contain general provisions applicable to all of the Properties as well as
specific provisions which vary from area to area within the community. The Residential Design Guidelines
are not the exclusive basis for decisions of the Reviewer and compliance with the Residential Design
Guidelines does not guarantee approval of any application. Absence of adopted Residential Design
Guidelines shall not limit the P!C's ability to exercise its powers; however, when disapproving an
application for permission to perform Work, the PIC shall describe the basis for its decision if it is unabfe
to refer to adopted Residential Design Guidelines as the reason for its election to disapprove an
application.
Declarant shall have sole and full authority to amend the Residentia� Design Guidelines in a
manner consistent with the Permits as long as the Declarant owns any portion of the Properties or has a
right to expand the Properties pursuant to Section 10.1, notwithstanding a delegation of reviewing
authority to the PIC, unless Declarant also delegates the power to amend to the PIC. Upon termination or
delegation of Declarant's right to amend, the PIC shall have the authority to amend the Residential
Design Guidelines in a manner consistent with the Permits, with the consent of the Board. Any
amendments to the Residential Design Guidetines shall be prospective only and shall not apply to require
modifications to or removal of structures previously approved once the approved construction or
modification has commenced. Except for conditions of the Permits, there shall be no limitation on the
scope ofi amendments to the Residential Design Guidelines, and such amendments may remove
requirements previously imposed or otherwise make the Residential Design Guidelines less restrictive.
The Reviewer shall make the Residential Design Guidelines available to Owners and Builders
who seek to engage in development or construction within the Properties. In Declarant's discretion, such
Residential Design Guidelines may be Recorded, in which event the Recorded version, as it may
unilaterally be amended from time to time, shall control in the event of any dispute as to which version of
the Residential Design Guidelines was in effect at any particular time.
(b) Procedures. No Work shall commence on any portion of the Properties until an
application for approval has been submitted to and approved by the Reviewer. Such application shall
include plans and specifications ("Plans") showing site layout, structural design, exterior elevations,
exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of
proposed construction, as applicable. The Residential Design Guidelines and the Reviewer may require
the submission of such additional information as may be reasonably necessary to consider any
application.
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In reviewing each submission, the Reviewer may consider any factors it deems relevant,
including, without limitation, harmony of external design with surrounding structures and environment.
Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that
determinations as to such matters are purely subjective and opinions may vary as to the desirability
and/or attractiveness of particular improvements.
The Reviewer shall respond in writing to the applicant at the address specified in the application.
The response may (i) approve the application, with or without conditions; (ii) approve a portion of the
application and disapprove other portions; or(iii) disapprove the application. The Reviewer may, but shall
not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any
objections.
In the event that the Reviewer fails to respond in a timely manner (as provided in the Residential
Design Guidelines), approval shall be deemed to have been given, subject to Declarant's right to veto
approval by the PIC pursuant to this Section. However, no approval, whether expressly granted or
deemed granted pursuant to the foregoing, shall be inconsistent with the Residential Design Guidelines
unless a differing design proposal has been approved pursuant to Section 4.5. Notice shall be deemed to
have been given at the time the envelope containing the response is deposited with the U. S. Postat
Service. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to
have been given at the time of defivery to the applicant. The Board may afso adopt other methods for
providing notice, by promulgation of Rules describing such notice procedures.
Until expiration of Declarant's rights under this Article, the PIC shall notify Dectarant in writing
within three business days after the PIC has approved any application relating to proposed Work within
the scope of matters delegated to the PIC by Declarant. The notice shall be accompanied by a copy of
the application and any additional information which Declarant may require. Declarant shall have 10 days
after receipt of such notice to veto any such action, in its sole discretion, by notice to the PIC and the
applicant.
If construction does not commence on a project for which Plans have been approved within one
year after the date of approval, such approval shall be deemed withdrawn and it shall be necessary for
the Owner to reapply for approval before commencing the proposed Work. Once construction is
commenced, it shall be diligently pursued to completion. All Work shall be completed within one year of
commencement unless otherwise specified in the notice of approval or unless the Reviewer grants an
extension in writing, which it shall not be obligated to do. If approved Work is not completed within the
required time, it shall be considered nonconforming and shall be subject to enforcement action by the
Association, Declarant or any aggrieved Owner.
The Reviewer may, by resolution, exempt certain activities from the app{ication and approval
requirements of this Article, provided such activities are undertaken in strict compliance with the
requirements of such resolution.
4.4. No Waiver of Future Approvals. Each Owner acknowledges that the persons reviewing
applications under this Article will change from time to time and that opinions on aesthetic matters, as well
as interpretation and application of the Residential Design Guidelines, may vary accordingly. In addition,
each Owner acknowledges that it may not always be possible to iden#ify objectionable features of
proposed Work until the Work is completed, in which case it may be unreasonable to require changes to
the improvements involved, but the Reviewer may refuse to approve similar proposals in the future.
Approval of applications or Plans for any Work done or proposed, or in connection with any other matter
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requiring approval, shall not be deemed to constitute a waiver of the right to withhold approvat as to any
similar applications, Plans, or other matters subsequently or additionally submitted for approval.
4.5. Variances. The Reviewer may authorize variances from compliance with any of its
guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or
aesthetic or environmental considerations require, but only in accordance with the laws of the Local
Jurisdiction. Such variances may only be granted, however, when unique circumstances dictate and no
variance shall (a) be effective unless in writing; (b) be contrary to this Declaration; or (c)estop the
Reviewer from denying a variance in other circumstances. For purposes of this Section, the inability to
obtain approval of any governmental agency, the issuance of any permit, or the terms of any financing
shall not be considered a hardship warranting a variance.
4.6. Limitation of Liabilitv. The standards and procedures established by this Article are
intended as a mechanism for maintaining and enhancing the overall aesthetics of the Prope►ties; they do
not create any duty to any Person. Review and approval of any application pursuant to this Article is
made on the basis of aesthetic considerations only and the Reviewer shall not bear any responsibility for
ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring
compliance with building codes and other governmental requirements, nor for ensuring that all dwelting
are of comparable quality, value, or size or of similar design.
Declarant, the Association, the Board, any committee, or member of any of the foregoing shall not
be held liable for soil conditions, drainage or other general site work, any defects in plans revised or
approved hereunder, or any injury, damages, or loss arising out of the manner or quality of approved
construction on or modifications to any Unit. In all matters, Dectarant, the Board, the PIC, and any
members thereof shall be defended and indemnified by the Association as provided in Section 8.6.
4.7. Certificate of ApAroval. Any Owner may request that the Reviewer issue a certificate of
approval certifying that there are no known violations on his or her Unit of this Article or the Residential
Design Guidelines. The Association shall either grant or deny such request within 30 days after receipt of
a written request and may charge a reasonable administrative fee for issuing such certificates. Issuance
of such a certificate shall estop the Association from taking enforcement action with respect to any
condition as to which the Association had notice as of the date of such certificate.
Article V Maintenance and Repair
5.1. Maintenance of Areas of Common Responsibilitv. The Association shall maintain the
Areas of Common Responsibility as described in Section 8.2.
52. Maintenance of Units. Each Owner shall maintain his or her Unit, and all landscaping
and improvements comprising the Unit, and all landscaping improvements comprising the Unit, in a
manner consistent with the Governing Documents, the Community-Wide Standard, and all applicable
covenants, unless such maintenance responsibility is othennrise assumed by or assigned to the
Association pursuant to any Supplemental Declaration or other declaration of covenants applicable to
such Unit. If not installed fully by the Builder, an owner of a Unit shall install all landscaping, surrounding
all sides of the residential dwelling contained on the Unit, within six months after the initial transfer of a
completed residential dwelling to an Owner other than a Builder. Each Owner shall also be responsible
for maintai�ing and +rrigating the tandscaping within that portlon ot any ad}acent Common Area or public
right-of-way lying between the Unit boundary and any watl, fence, curb, or water's edge located on the
Common Area or public right-of-way adjacent to the Unit boundary, unless such area is made a part of
the Areas of Common Responsibility maintained by the Association; provided, there shall be no right to
remove trees, shrubs or similar vegetation from this area without prior approval pursuant to Article IV.
Each Owner shall pertorm at the Owner's expense the maintenance and upkeep of fencing, (if located on
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a Unit), drainage swales and/or underground drain lines and catch basins installed on their Unit, unless
such components of the Units are made a part of the Areas of Common Responsibility maintained by the
Association.
5.3. Resqonsibilitv for Repair and Ret�lacement. Unless otherwise specifically provided in the
Goveming Documents or in other instruments creating and assigning maintenance responsibility,
responsibility for maintenance shall include responsibility for repair and replacement, as necessary to
maintain the property to a level consistent with the Community-Wide Standard. Repair and replacement
may include improvement if necessary to comply with applicable building codes or other regulations or if
otherwise deemed appropriate, in the Board's reasonable discretion.
By virtue of taking title to a Unit, each Owner covenants and agrees with all other Owners and
with the Association to carry property insurance for the full replacement cost of all insurable
improvements on his or her Unit, iess a reasonabte deductible. If the Association assumes responsibitity
for obtaining any insurance coverage on behalf of Owners, the premiums for such insurance shall be
levied as a Specific Assessment against the benefited Unit and the Owner.
Each Owner further covenants and agrees that in the event of damage to or destruction of
structures on or comprising such Owner's Unit, the Qwner shall proceed promptly to repair or to
reconstruct in a manner consistent with the original construction or such other plans and specifications as
are approved in accordance with Article IV. Alternatively, the Owner shall clear the Unit and maintain it in
a neat and attractive condition consistent with the Community-Wide Standard. The Owner shall pay any
costs which are not covered by insurance proceeds.
5.4 Remedies for Failure to Maintain. If any Unit Owner shall fail to conduct maintenance on the
Owner's Unit as required by this Article to maintain the Unit in the same condition as a reasonably prudent
homeowner, or in a manner which preserves the drainage for oiher Uniis, the Association shall notify the
Owner in writing of the maintenance required. If the maintenance is not pertormed within thirty (30) days of
the date notice is delivered, the Association shall have the right to enter upon the Unit and provide such
maintenance, and to levy an assessment against the non-performing Owner and Unit for the cost of providing
the maintenance. The assessment shall constitute a lien against the Unit owned by the non-pertorming
Owner and may be collected and foreclosed in the same manner as any other delinquent monthly or speciat
assessment. The Association shall have all remedies for collection as provided in the Declaration. In the
event that emergency repairs are needed to correct a condition on a Unit which poses a substantial risk of
injury or significant property damage to others, the Association may immediately perform such repairs as may
be necessary after the Association has attempted to give notice to the non-performing Owner of the repairs
necessary. Such notice in emergency circumstances shall be sufficient if attempted orally or in writing
immediately prior to the Association's undertaking the necessary repairs. Emergency repairs performed by
the Association, if not paid for by the non-performing Owner, may be collected by the Association in the
manr►er provided for hereis� notwithsta�ding the fai4ure of the Associatian ta give the nan-performing Owner
the thirty(30)day notice.
5.5 Sanctions for Failure to Maintain Storm Svstem. In the event Talbot and 55th (or
successors or the Property Owners Association), in the judgment of the City of Renton, fails to maintain
drainage facilities within the plat, or if the Proponent or successors willfully or accidentally reduce the
capacity of the drainage system or render any part of the drainage system unusable, the Proponent or
successors agree to the foltowing remedy: After 30 days notice by registered mait to the Proponent or
successors, the City of Renton will assess financial sanctions (P.C.C. 17A.10.130) and/or initiate
enforcement proceedings. In the event the City of Renton determines the lack of maintenance has
resulted in a situation of imminent danger to life, limb or property, the City of Renton will correct the
probiem as necessary to restore the full design capacity of the drainage system. In this event, the City of
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Renton will bi{I the owners of the facility for aA costs associated with such work to include engineering,
administration, legal fees, construction, equipment and personnel. Costs or fees incurred by the City of
Renton, including attorney's fees and expert's fees should legal action be required to collect such
payments, shall be borne by the Proponent or successors. The City of Renton shall be held harmless
and indemnified from any work done on the Storm Water Facilities.
Article V! Detention Vautt TraCt 999
6.1 Tract 999. Tract `999' is a Public Storm Drainage tract; upon the recording of this plat,
Tract `999' is hereby granted and conveyed to the Talbot & 55th Homeowner's Association (HOA). An
easement is hereby granted and conveyed to the City of Renton over, under and across Tract `999' for
the purpose of conveying, storing, managing and facilitating storm and surface water per the engineering
plans on file with the City of Renton. The City of Renton has the right to enter said stormwater easement
for the purpose of inspecting, operating, maintaining, improving, and repairing it's drainage facilities
contained therein. Only the chain link fence, flow control, water quality treatment and conveyance facilities
will be considered for formal acceptance and maintenance by the City. Maintenance of all other
improvements and landscaping on said Tract '999' shall be the responsibility of the HOA. In the event
that the HOA is dissolved or otherwise fails to meet its property tax obligations, as evidenced by non-
payment of property taxes for a period of eighteen (18) months, then each lot in this plat shall assume
and have an equaf and undivided ownership interest in Tract `999' previously owned by the HOA and
have the attendant financial and maintenance responsibilities.
Article VII The Associatian and its Members
7.1. Function of Association. The Association is the entity responsible for management,
maintenance, operation, and control of the Areas of Common Responsibility. The Association also is the
primary entity responsible for enforcement of the Governing Documents. The Association shalf perform
its functions in accordance with the Governing Documents, the Permits and applicable Local Jurisdiction's
Ordinances, and Washington law.
7.2. Membership. Every Owner shall be a Member of the Association. There shall be only
one membership per Unit. If a Unit is owned by more than one Person, all co-Owners shall share the
privileges of such membe�ship, subject to reasonable Board regulation and the �estrictions on voting set
forth in Section 7.3(c) and in the Bylaws, and all such co-Owners shall be jointly and severally obligated to
perform the responsibilities of Owne�s. The membership rights of an Owner which is not a natural person
may be exercised by any officer, director, member, partner, or trustee, or by the individual designated
from time to time by the Owner in a written instrument provided to the Secretary of the Association.
7.3. Votinq. The Association shall have two classes of inembership, Class"A"and Class"B."
(a) Class"A". Class"A" Members shall be all Owners except the Class"B" Member,
if any. Class"A" Members shall have one equal vote for each Unit in which they hold the interest required
for membership under Section 7.2, except that there shall be only one vote per Unit and no vote shall be
exercised for any property which is exempt from assessment under Section 9.9.
(b) Ctass"B". The Class"B" Member shall be the Declarant, or if Declarant's rights
are assigned, Declarant's assignee. The C1ass"8" Members may appoint a majority of the members of
the Board of Directors during the Class"B" Control Period, as specified in the Bylaws. Additional rights of
the Class"B" Member are specified in the relevant sections of the Governing Documents. The Class"B"
membership shall terminate upon the earlier of (i) five years after expiration of the Class"B" Control
Period; or (ii) when, in its discretion, Declarant so determines and declares in a Recorded instrument.
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Upon termination of the Ctass"B" membership, Declarant shall be a Class"A" Member entitled to
Class"A"votes for each Unit which it owns.
(c) Exercise of Voting Riqhts. Members may exercise voting rights as set forth in the
Bylaws. If there is more than one Owner of such Unit, the vote for such Unit shall be exercised as the co-
Owners determine among themselves and advise the Secretary of the Association in writing prior to the
vote being taken. Absent such advice, the Unit's vote shall be suspended if more than one Person seeks
to exercise it.
7.4. Notice. Any notice provided for in this Declaration shall be served personally or shall be
mailed by surface mail, as follows, unless the Board adopts a rule allowing electronic service of notices:
(a) if to the Association, to the president or secretary of the Association at the
principal office of the Association, or at such other address of which it has given notice in accordance with
this Section, or to the registered agent of the Association, as such registered agent is identified in the
records of the Secretary of State of the State of Washington (or any successor agency thereofl;
(b) if to a Property Owner, to such Owner at the address of such Owner's Unit or
such other address as the Owner has registered with the Association, or such registered agent is
identified in the records of the Secretary of State of the State of Washington (or any successor agency
thereot�.
All such notices shall, for all purposes, be deemed delivered (a) upon personal delivery to the
party or address specified above or (b) on the third day after mailing when mailed by first class mail,
postage prepaid, and properly addressed. The Board of the Association may designate additional
methods of giving notice by promulgation of rules describing the alternative methods of providing notice,
including the adoption of providing notice electronically, without using surface mail, or by private parcel
delivery service companies.
Article VIII Association Powers and Responsibilities
8.1. Acceptance and Control of Association Property. The Association, through action of its
Board, may acquire, hold, and dispose of tangibte and intangible personai property and real property.
Declarant and Declarant's designees may convey to the Association personal praperty and fee title,
leasehold or other property interests in any real property. The Association shall accept and maintain such
property at its expense for the benefit of its Members, subject to any restrictions set forth in the deed or
other instrument transferring such property to the Association and any obligations or conditions
appurtenant to such property. Upon a Declarant's written request, the Association shall reconvey to
Declarant any unimproved portions of the Properties originally conveyed by a Declarant to the Association
for no consideration, to the extent conveyed by a Declarant in error or needed by a Dectarant to make
minor adjustments in property lines.
8.2. Maintenance of Areas of Common Resaonsibilitv. The Association shall maintain,
commencing with the recordation of the Ptat or this Declaration, whichever occurs first, and in accordance
with the Community-Wide Standard and the Permits, the Areas of Common Responsibility, which shall
include to the extent such features are present as described on the recorded Plat Map, or Hearing
Examiner's notes, or specifically determined in this Section, and are not maintained by the Local
Jurisdiction. Examples of the items the Association must maintain may include, but need not be limited
to:
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(a) the Common Area and the Community Area, which includes the entry features,
landscaping, roads, sidewalks and private parks within the Properties, afleys serving all or any of the
Units, private trails, recreational amenities and the community center, parking restrictions an signage,
open spaces, wetlands, natural preserve areas and conservation areas, sensitive areas, and buffers
except, to the extent that such improvements are dedicated to the Local Jurisdiction and such dedication
is accepted, then upon acceptance such improvements shall cease to be Common Areas;
(b) supplemental landscaping, maintenance, and repairs to property dedicated or
conveyed to the Local Jurisdiction or other public entities (to the extent permitted by and consistent with
any conditions imposed by such entities)and which may include public rights-of-way within or abutting the
Properties, public parks and play areas, public trails, drainage areas, and storm water facilities;
(c) irrigation facilities, storm water facilities, streets, sidewalks, street lighting, park
and pool/ride lots, and transit shelters that are not maintained by the Locat Jurisdiction;
(d) planter strips, medians and central planting areas within cul-de-sacs;
(e) mailbox and mailbox shelters (which may not be moved or physically altered
without approval of the PIC, the U.S. Postal Service and the Local Jurisdiction);
(� such portions of any additional property included within the Areas of Common
Responsibility as may be dictated by this Declaration, described on the Plat, or described in an Exhibit
containing Additional Areas of Common Responsibility is attached to this Declaration, or contained in any
contract or agreement for maintenance thereof entered into by the Declarant or the Association, including
landscaping and other flora, viewsheds, parks, utility areas or improvements, structures, streets,
alleyways, bike/pedestrian pathways and trails, and other improvements;
(g) any ponds, streams and/or wetlands located within the Properties which serve as
part of the storm water drainage system for the Properties, including improvements and equipment
installed therein or used in connection therewith; and
(h) any property and facilities owned by Declarant and made available, on a
temporary or permanent basis, for the primary use and enjoyment of the Association and its Members,
such property and faci4ities to be identified by written notice from Dec4acant to the Associat'son and to
remain a part of the Areas a# Common Responsibility and be maintained by the Association until such
time as Declarant revokes such privilege of use and enjoyment by written notice to the Association.
The Association may maintain other property which it does not own, including, without limitation,
Units and property dedicated to the public, if the Board of Directors determines that such maintenance is
necessary or desirable to maintain the Community-Wide Standard. The Association shall not be liable for
any damage or injury occurring on, or arising out of the condition of, property which it does not own
except to the extent that it has been negligent in the performance of its maintenance responsibilities.
The Association shall maintain the drainage facilities and equipment within the Areas of Common
Responsibility in continuous operation, except for any periods necessary, as determined in the sole
discretion of the Board, to perform required maintenance or repairs, unless Members representing 67% of
the Class"A" votes in the Association and the C1ass"B" Members, if any, agree in writing to discontinue
such operation.
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Except as provided above, the Areas of Common Responsibility shall not be reduced by
amendment of this Declaration or any other means except with Declarant's prior written approval as long
as Declarant owns any property described in Exhibit A of this Declaration.
The costs associated with maintenance, repair, monitoring, and replacement of the Areas of
Common Responsibility shall be a Common Expense; provided, the Association may seek reimbursement
trom the Owner of, or other Persons responsible for, certain portions of the Areas of Common
Responsibility pursuant to this Declaration, other Recorded covenants, or agreements with the Owner
thereof. The Association's responsibility to maintain the Areas of Common Responsibility shall exist
whether the control of the Association is held by the Declarant or the members of the Association. The
Association is authorized to expend funds its collects, whether collected from the Owners or the
Declarant, to carry out its duties described in this Article, whether the control of the Association is held by
the Declarant or the members of the Association.
8.3. Compliance and Enforcement. Every Owner and occupant of a Unit shall comply with the
Governing Documents. The Board may promulgate rules, and impose sanctions for viotation of the
Governing Documents after notice and a hearing in accordance with the procedures set forth in the
Bylaws or rules adopted by the Board. Sanctions for violation may include, without limitation:
(a) imposing reasonable monetary fines which shall constitute a lien upon the
violator's Unit. (In the event that any occupant, guest or invitee of a Unit violates the Governing
Documents and a fine is imposed, the fine shall first be assessed against the violator; provided, if the fine
is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon notice
from the Board);
(b) suspending an Owner's right to vote;
(c) suspending any Person's right to use any recreational facilities within the
Common Area; provided, nothing herein shall authorize the Board to limit ingress or egress to or from a
Unit;
(d) suspending any senrices provided by the Association to an Owner or the Owner's
Unit if the Owner is more than 30 days delinquent in paying any assessment or other charge owed to the
Association;
(e) exercising self-help or taking action to abate any violation of the Governing
Documents in a non-emergency situation;
(fl requiring an Owner, at its own expense, to remove any structure or improvement
on such Owner's Unit in violation of Article IV and to restore the Unit 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;
(g) without liability to any Person, precluding any contractor, subcontractor, agent,
employee or other invitee of an Owner who fails to comply with the terms and provisions of Article IV and
the Residential Design Guidelines from continuing or performing any further activities in the Properties;
and
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(h) levying Speciflc Assessments to cover costs incurred by the Association to bring
a Unit into compliance with the Governing Documents.
The Board may (a) exercise self-help in any emergency situation (specifically including, but not
limited to, the towing of vehicles that are in violation of parking Rules and Regulations); and (b) bring suit
at law or in equity to enjoin any violation or to recover monetary damages, or both, to ensure compliance
with the Goveming Documents without the necessity of compliance with the procedures set forth in the
Bylaws. In addition to any other enforcement rights, if an Owner fails properfy to perform his or her
maintenance responsibility, the Association may Record a notice of violation and/or perform such
maintenance responsibilities in the manner described in Section 5.4, and assess all costs incurred by the
Association against the Unit and the Owner as a Specific Assessment.
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 prevails, it shall
be entitled to recover all costs, including, without limitation, attorney's fees and court costs, reasonably
incurred in such action.
The Association shall not be obligated to take any action if the Board reasonably determines that
the Association's position is not strong enough to justify taking such action that the covenant, Use
Restriction, or Rute and Regulation being enforced is, or is likely to be construed as, inconsistent with
applicable law; or that it is not in the Association's interest, based upon hardship, expenses, or other
reasonable criteria to pursue enforcement action. Such a decision shall not be construed a waiver of the
right of the Association to enforce such provision at a later time under other circumstances or estop the
Association from enforcing any othe�covenant, Use Restriction, or Rule and Regulation,
The Association, by contract or other agreement, may enforce applicable Local Jurisdiction
ordinances, if applicable, and permit the Local Jurisdiction to enforce ordinances within the Properties for
the benefit of the Association and its Members.
While conducting the Association's business affairs, the Board shall act within the scope of the
Governing Documents and in good faith to further the legitimate interests of the Association and its
Members. In fulfilling its govemance responsibilities, the Board's actions shall be governed and tested by
the rule of reasonableness. The Board shall exercise its power in a fair and nondiscriminatory manner
and shall adhere to the procedures established in the Governing Documents.
8.4. Insurance.
(a) ReQui�ed Coveraqes. After the conclusion of the Class B Control Period, or
sooner if elected by the Declarant, the Association, acting through its Soard or its duly authorized agent,
shall obtain and continue in effect the foltowing types of insurance, if reasonably availabte, or if not
reasonably available, the most nearly equivalent coverages as are reasonably available:
(i) Blanket property insurance covering the full replacement cost all
insurable improvements under current building ordinances and codes on the Common Area and within
the Areas of Common Responsibility to the extent that Association has assumed responsibility in the
event of a casualty, regardless of ownership;
(ii) Commercial general liability insurance on the Areas of Common
Responsibility, insuring the Association and its Members with limits of (if generally available at
reasonable cost, including primary and any umbrella coverage) at least $1,000,000.00 per occurrence
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with respect to bodily injury, personal injury, and property damage, or such additional coverage and
higher limits which a reasonably prudent person would obtain;
(iii) Workers compensation insurance and employers liability insurance, if
and to the extent required by law;
(iv) Directors and o�cers liability coverage;
(v) Commercial crime insurance, including fidelity insurance covering all
Persons responsible for handling Association funds in an amount determined in the Board's best business
judgment but not less than an amount equal to one-sixth of the annual Base Assessments on all Units
plus reserves on hand. Fidelity insurance policies shall contain a waiver of all defenses based upon the
exclusion of Persons serving without compensation; and
(vi) Such additional insurance as the Board, in its best business judgment,
determines advisable.
Premiums for all insurance on the Areas of Common Responsibility shall be Common Expenses,
unless the Board reasonably determines that other treatment of the premiums is more appropriate.
(b) Policv Requirements. The Association shall arrange for an annual review of the
sufficiency of its insurance coverage by one or more qualified Persons, at least one of whom must be
familiar with insurable replacement costs in Western Washington. All Association policies shall provide
for a certificate of insurance to be furnished to the Association and, upon request, to each Member
insured.
The poticies may contain a reasonab4e deductible and the amount thereof shafl not be subtracted
from the face amount of the policy in determining whether the policy limits satisfy the requirements of
Section 8.3(a). In the event of an insured loss, the deductible shall be treated as a Common Expense in
the same manner as the premiums for the applicable insurance coverage. However, if the Board
reasonably determines, after notice and an opportunity to be heard in accordance with the Byiaws, that
the loss is the result of the negligence or willful misconduct of one or more Owners, their guests, invitees,
or lessees, then the Board may assess the full amount of such deductible against such Owner(s) and
their Units as a Specific Assessment.
All insurance coverage obtained by the Board shall:
(i) be written with a company authorized to do business in Washington
which satisfies the requirements of the Federal National Mortgage Association, or such other secondary
mortgage market agencies or federal agencies as the Board deems appropriate;
(ii) be written in the name of the Association as trustee for the benefited
parties. Policies on the Common Areas shall be for the benefit of the Association and its Members.
Policies secured on behalf of a Neighborhood shall be for the benefit of the Owners within the
Neighborhood and their Mortgagees, as their interests may appear;
(iii) not be brought into contribution with insurance purchased by Owners,
occupants, or their Mortgagees individually;
(iv) contain an inflation guard endorsement;
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(v) include an agreed amount endorsement, if the policy contains a co-
insurance clause;
(vi) provide that each Owner is an insured person under the policy with
respect to liability arising out of such Owner's interest in the Common Area as a Member in the
Association (provided, this provision shall not be construed as giving an Owner any interest in the
Common Area other thart that of a Member);
(vii) provide a waiver of subrogation under the policy against any Owner or
household member of an Owner;
(viii} include an endorsement prectuding cancellation, invalidation,
suspension, or non-renewal by the insurer on account of any one or more individual Owners, or on
account of any curable defect or violation without prior written demand to the Association to cure the
defect or violation and allowance of a reasonable time to cure; and
(ix) include an endorsement precluding cancellation, invalidation, or condition
to recovery under the policy on account of any act or omission of any one or more individual Owners,
unless such Owner is acting within the scope of its authority on behalf of the Association.
In addition, the Board shall use reasonable efforts to secure insurance policies which provide:
(i) a waiver of subrogation as to any claims against the Association's Board,
officers, employees, and its manager,the Owners and their tenants, servants, agents, and guests;
(ii) a waiver of the insurer's rights to repair and reconstruct instead of paying
cash;
(iii) an endorsement requiring at least 30 days' prior written notice to the
Association of any cancellation, substantial modification, or non-renewal; and
(iv) a cross liability provision.
(c) Restoring Damaged Improvements. In the event of damage to or destruction of
Common Area or other property which the Association is obligated to insure, the Board or its duly
authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the
cost of repairing or restoring the property to substantially the condition in which it existed prior to the
damage, allowing for changes or improvements necessitated by changes in applicable building codes.
Damaged improvements on the Common Area sha11 be repaired or reconstructed in a timeVy
manner unless Members representing at least 75% of the total Class"A"votes in the Association, and the
Class"B" Members, if any, decide not to repair or reconstruct. No Mortgagee shall have the right to
participate in the determination of whether the damage or destruction to the Common Area shall be
repaired or reconstructed. If a decision is made not to restore the damaged improvements, and no
alternative improvements are authorized, the affected property shall be cleared of all debris and ruins and
thereafter shall be maintained by the Association in a neat and attractive, landscaped condition consistent
with the Community-Wide Standard.
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Any insurance proceeds remaining after paying the costs of repair or reconstruction, or after such
settlement as is necessary and appropriate, shall be retained by the Association for the benefit of its
Members or the Persons entitled to use the damaged or destroyed property, as appropriate, and placed in
a capital improvements account. This is a covenant for the benefit of Mortgagees and may be enforced
by the Mortgagee of any affected Unit.
If insurance proceeds are insuff�icient to cover the costs of repair or reconstruction, the Board
may, without a vote of the Members, levy Special Assessments to cover the shortfall against those
Owners responsible for the premiums for the applicable insurance coverage under Section 8.3(a).
8.5. Implied Rights; Board Authority. The Association may exercise any right or privilege
given to it expressly by the Governing Documents, or reasonably implied from or reasonably necessary to
effectuate any such right or privilege. Except as otherwise specifically provided in the Governing
Documents, or by law, all rights and powers of the Association may be exercised by the Board without a
vote of the membership.
The Board may institute, defend, settle, or intervene on behalf of the Association in mediation,
binding or non-binding arbitration, litigation, or administrative proceedings in matters pertaining to the
Area of Common Responsibility, enforcement of the Governing Documents, or any other civil claim or
action. However, the Governing Documents shall not be construed as creating any independent legal
duty to institute litigation on behalf of or in the name of the Association or its members. In exercising the
rights and powers of the Association, making decisions on behalf of the Association, and conducting the
Association's affairs, Board membe�s shall be subject to, and their actions shall be judged in accordance
with, the standards set forth in the Bylaws.
8.6. Indemnification of O�cers Directors and Others. To the fullest extent permitted by
Washington law, the Association shall indemnify every officer, dir�ctor, votunteer and committee member
of the Association against all damages and expenses, including counsel fees, reasonably incurred in
connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if
approved by the then Board of Directors)to which he or she may be a party by reason of being or having
been an officer, director, or committee member.
The officers, directors, and committee members shall not be liable for any mistake of judgment,
negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or
bad faith. The officers and directors shall have no personal liability with respect to any contract or other
commitment made or action taken in good faith on behalf of the Association (except to the extent that
such officers or directors may also be Members of the Association). The Association shall indemnify and
forever hold each such officer, director, and committee member harmtess from any and all liability to
others on account of any such contract, commitment, or action. This right to indemnification shall not be
exciusive of any other rights to which any present or former officer, director, or committee member may
be entitled. The Association shall, as a Common Expense, maintain adequate general liability and
officers'and directors' liability insurance to fund this obligation, if such insurance is reasonably available.
8.7. Securitv. The Association may, but shall not be obligated to, maintain or support certain
activities within the Properties designed to make the Properties safer than they otherwise might be.
Neither the Association nor Declarant shall in any way be considered insu�ers or guarantors of secu�ity
within the Properties, nor shall either be held liable for any loss or damage by reason of failure to provide
adequate security or ineffectiveness of security measures undertaken. No representation or warranty is
made that any systems or measures, including any mechanism or system for limiting access to the
Properties, cannot be compromised or circumvented, nor that any such systems or security measures
undertaken will in all cases prevent loss or provide the detection or protection for which the system is
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designed or intended. Each Owner acknowtedges, understands, and covenants to inform its tenants and
all occupants of its Unit that the Association, its Board and committees, and Declarant are not insurers
and that each Person using the Properties assumes all risks of personal injury and loss or damage to
property, including Units and the contents of Units, resulting from acts of third parties.
8.8. Effect of Dissolution of Association. In the event that the Association is dissolved and is no
longer licensed as a non-profit corporation, the rights and duties of the Association (including, but not limited
to, all ownership interest in the Common Areas) shall vest in the Owners, as an unincorporated association.
Any Owner or any Mortgagee may reinstate the Association's corporate status, or create a successor entity
as a successor to the Association, at any time by filing with the State of Washington such documents as
required by law to reinstate the Association or create its successor; and upon such reinstatement, the
Owners' rights and duties, as described in this Declaration, shall re-vest in the reinstated or successor
Association, and all owners shall be members thereof with all rights to vote provided by law and the
organizational documents of the entity. To the greatest extent possible, any successor entity shall be
governed by the Articles and Bylaws of the Association as if they had been made to constitute the
governing documents of the successor entity.
8.9. Provision of Services. The Association may provide or provide for services and facilities
for the Members, their guests, lessees, and invitees, and shatl be authorized to enter inta and terminate
contracts or agreements with other entities, including Declarant, to provide such services and facilities.
The Board may charge use and consumption fees for such services and facilities. By way of example,
some services and facilities which might be offered include landscape maintenance, pest controt service,
cable television service, internet service, security, caretaker, transportation, fire protection, utilities, and
similar services and facilities. Nothing herein shall be construed as a representation by Declarant or the
Association as to what, if any, services shall be provided. In addition, the Board shatl be permitted to
modify or cancel existing services provided, in its discretion, unless otherwise required by the Governing
Documents. No Owner shall be exempt from the obligation to pay for such services, if provided to all
Owners as a Common Expense, based upon non-use or any other reason.
8.10. Relations with Other Properties. The Association may enter into contractual agreements
or covenants to share costs with other associations, properties or facilities for maintaining and/or
operating shared or mutually beneficial properties or facilities.
8.11. Facilities and Services Open to the Public. Certain facilities and areas within the
Properties may be open for use and enjoyment of the public. Such facilities and areas may include, by
way of example: greenbelts, trails and paths, parks, and other neighborhood spots conducive to gathering
and interaction, roads, sidewalks, and medians. Declarant may designate such facilities and areas as
open to the public at the time Declarant makes such facifities and areas a part of the Areas of Common
Responsibility or the Board may so designate at any time thereafter. Portions of the Common Area
and/or Community Area which are not intended to be open to the public may be posted as private
property.
8.12. Permit Matters. The Properties may be subject to a variety of permit restrictions and
obligations which are contained in the Permits and other Local Jurisdiction Ordinances and are binding
upon the Properties and run with the land. The Association and each Owner shall comply with the
restrictions and requirements of the Permits, as appticable. During initial development of the Properties,
Declarant shall implement, maintain, and enforce the programs and requirements of the Permits.
Declarant shall have the right, but not the obfigation, to delegate or assign certain responsibilities to the
Association or any committee, and the Association or such committee shall have the obligation to accept
and fulfill such delegation or assignment of such obligations. The cost of such activities shall be a
Common Expense, if the activity is associated with the Community Area and for the general benefit of all
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of the community. In the performance of its responsibilities, the Association shall foltow the standards
and requirements of the Permits and the Local Jurisdiction's Ordinances. The Association shall comply
with the design guidelines and maintenance standards referenced in the Permits, particularly in the use
and preservation of native vegetation and landscaping, in the performance of its responsibilities under this
Dectaration.
8.13. Relationshia with Tax-Exemqt Orqanizations. Declarant or the Association may create,
enter into agreements or contracts with, or grant exclusive and/or non-exclusive easements over portions
of the Common Area to non-profit, tax-exempt organizations, the operation of which confers some benefit
upon the Properties, the Association, the Members, or residents. While such organizations may perform
a variety of services and functions, it is anticipated that such activities will focus on environmental and
conservation programs benefiting the community as a whole.
If established by Declarant or the Association, the Association shaN be responsible to fund the
minimum organization expenses of maintaining such entity and may contribute money, real or personal
property, or services to such entity. Such expenses and any such contributions shall be a Common
Expense. For the purposes of this Section, a "tax-exempt organization" shall mean an entity which is
exempt from federal income taxes under the Internai Revenue Code ("Code"), such as, but not limited to,
entities which are exempt from federal income taxes under Sections 501(c)(3) or 501(c)(4), as the Code
may be amended from time to time.
Article IX Association Finances
9.1. Eiudaetina and Allocating Common Expenses. At least 60 days before the beginning of
each fiscal year, if there is any change in the sums that the Board anticipates will be collected or
expended by the Association in the coming fiscal year, the Board shall prepare a budget of the estimated
Common Expenses for the coming year, including any contributions to be made to a reserve fund
pursuant to Section 9.2. The budget shaU also reflect the sources and estimated amounts of funds to
cover such expenses, which may include any surplus to be applied from prior years, any income expected
from sources other than assessments levied against the Units, and the amount to be generated through
the levy of Base Assessments and Special Assessments against the Units, as authorized in Section 9.6.
The Association is hereby authorized to levy Base Assessments equally against atl Units subject
to assessment under Section 9.5 to fund the Common Expenses. In determining the Base Assessment
rate per Unit, the Board may consider any assessment income expected to be generated from any
additional Units reasonably anticipated to become subject to assessment during the�scal year.
Declarant may, but shall not be obligated to, reduce the Base Assessment for any fiscal year by
payment of a subsidy (in addition to any amounts paid by Declarant under Section 9.6(b)), which may be
either a contribution, an advance against future assessments due from Declarant, or a loan, in Declarant's
discretion. Any such subsidy shall be disclosed as a line item in the income portion of the budget.
Payment of such subsidy in any year shall not obligate Declarant to continue payment of such subsidy in
future years, unless otherwise provided in a written agreement between the Association and Declarant.
Within 30 days after the adoption of a final budget by the Board, the Board shall send to each
Owner a copy of the final budget, notice of the amount of the Base Assessment to be tevied pursuant to
such budget, and notice of a meeting to consider ratification of the budget. Such meeting shall be held
not less than 14 nor more than 60 days from the mailing of such materials, or within such other time
period that may be mandated by law for non-profit homeowner associations, such as RCW 64.38.035.
The budget and assessment shall be ratified unless disapproved at a meeting by Members representing
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more than 50% of the total Class"A" votes in the Association and by the Class"B" Member, if such
exists. Such ratification shall be effective whether or not a quorum is present.
If any proposed budget is disapproved or the Board fails for any reason to determine the budget
for any year, then the budget most recently in effect shall continue in effect until a new budget is
determined. The Board may revise the budget and adjust the Base Assessment from time to time during
the year, subject to the notice req�irements and the right of the Members to disapprove the rev+sed
budget as set forth above.
9.2. Budgetinq for Reserves. The Board shall prepare and periodically review a reserve
budget for the Areas of Common Responsibility for which the Association maintains capital items as a
Common Expense. The budgets shall take into account the number and nature of replaceable assets,
the expected life of each asset, and the expected repair or replacement cost. The Board shatl include in
the Common Expense budget adopted pursuant to Section 9.1 a capital contribution to fund reserves in
an amount sufficient to meet the projected need with respect both to amount and timing by annual
contributions over the budget period.
9.3. Special Assessments. In addition to other authorized assessments, the Association may
levy Special Assessments to cover unbudgeted expenses or expenses in excess of those budgeted. Any
such Special Assessment may be levied as a Common Expense against the entire membership, if such
Special Assessment is for Common Expenses, or against the Owners benefited by the Special
Assessment, if the Special Assessment is made for the limited benefit of less than all of the Members.
Except as otherwise specifically provided in this Declaration, any Special Assessment shall require the
affirmative vote or written consent of Members (if a Common Expense) representing more than 50% of
the total votes allocated to Units which will be subject to such Special Assessment, and the affirmative
vote or written consent of the Class"B" Members, if such exist. Special Assessments shall be payable in
such manner and at such times as determined by the Board, and may be payable in installments
extending beyond the fiscal year in which the Special Assessment is approved.
9.4. Specific Assessments. The Association shall have the power to levy Specific
Assessments against a particular Unit as follows:
(a) to cover the costs, including overhead and administrative costs, of providing
services to Units upon request of an Owner pursuant to any menu of special services which may be
offered by the Association. Specific Assessments for special services may be levied in advance of the
provision of the requested service; and
(b) to cover costs incurred in bringing the Unit into compliance with the Governing
Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of the Unit,
theis agents, contractoss, employees, 4icensees, invitees, or guests; provided, the Board sha{4 give the
Unit Owner prior written notice and an opportunity for a hearing, in accordance with the Bylaws, before
levying any Specific Assessment under this subsection (b).
9.5. Authority To Assess Owners; Time of Payment. Declarant hereby establishes and the
Association is hereby authorized to levy assessments as provided for in this Articte and elsewhere in the
Governing Documents. The obligation to pay assessments shall commence as to each Unit on the date
each Unit is conveyed to an Owner by Declarant; provided, however, that if such Owner is a Builder, the
obligation to pay assessments shall commence six months after the Unit is first conveyed to the Builder.
The first annual Base Assessment levied on each Unit shall be adjusted according to the number of
months remaining in the fiscal year at the time assessments commence on the Unit.
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Assessments shall be paid in such manner and on such dates as the Board may establish. The
Board may require advance payment of assessments at closing of the transfer of title to a Unit and
impose special requirements for Owners with a history of delinquent payment. If the Board so elects,
assessments may be paid in two or more installments. Unless the Board otherwise provides, the Base
Assessment shall be due and payable in advance on the �rst day of each fiscal year. If any Owner is
delinquent in paying any assessments or other charges levied on his Unit, the Board may require the
outstanding ba{ance on al{assessments to be paid in full imrnediate4y.
9.6. Obligation for Assessments.
(a) Personal Obliqation. Each Owner, by accepting a deed or entering into a
Recorded contract of sale for any portion of the Properties, is deemed to covenant and agree to pay all
assessments authorized in the Governing Documents. All assessments, together with interest(computed
from its due date at a rate of 12% per annum or such other rate as the Board may establish, subject to the
limitations of Washington law), late charges as determined by Board resolution, costs, and reasonable
attorneys'fees, shall be the personal obligation of each Owner and a lien upon each Unit until paid in full.
Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any assessments and
other charges due at the time of conveyance.
Failu�e of the Soard to fix assessment amounts or rates or to deliver or mail each Owner an
assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the
obligation to pay assessments. In such event, each Owner shall continue to pay Base Assessments on
the same basis as during the last year for which an assessment was made, if any, until a new
assessment is levied, at which time the Association may retroactively assess any shortfalls in collections.
No Owner may exempt himself from liability for assessments by non-use of Common Area,
abandonment of his Unit, or any other means. The obligation to pay assessments is a separate and
independent covenant on the part of each Owner. No diminution or abatement of assessments or set-off
shall be claimed or allowed for any alleged failure of the Association or Board to take some action or
perform some function required of it, or for inconvenience or discomfort arising from the making of repairs
or improvements, or from any other action it takes.
Upon written request, the Association shall furnish to any Owner liable for any type of
assessment a certificate in writing signed by an Association officer setting forth whether such assessment
has been paid. Such certificate shall be conclusive evidence of payment. The Association may require
the advance payment of a reasonable processing fee for the issuance of such certificate.
(b) Exemption From Assessment. During the Class"B" control period, there shall be
no assessment of arty kind for Un+ts or any other property owned by Declarant or those persons holding
any Declarant rights, without the consent of the Declarant or the holder of such DeclaranYs rights.
(c) Declarant's Option To Fund Budget Deficits. During the Class"B" Control
Period, Declarant may satisfy its obligation for assessments, if any, on Units which it owns either by
paying such assessments in the same manner as any other Owner or by paying the difference befinreen
the amount of assessments levied on all other Units subject to assessment and the amount of actual
expenditures by the Association during the fiscal year. Unless Declarant otherwise notifies the Board in
writing at least 60 days before the beginning of each fiscal year, Declarant shall be deemed to have
elected to continue paying on the same basis as during the immediately preceding fiscal year.
Regardless of Declarant's election, Declarant's obligations hereunder may be satisfied in the form of cash
or by"in kind" contribu#ions of services or materials, or by a combination of these. After termination of the
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Class"B" Control Period, Declarant shaif pay assessments on its unsold Units in the same manner as any
other Owner.
9.7. Lien for Assessments. The Association shall have a lien against each Unit to secure
payment of delinquent assessments, as well as interest, late charges (subject to the limitations of
Washington law), and costs of collection (inctuding attorneys' fees and costs, whether or not a lawsuit
shall be involved). Such lien shall be superior to all other liens, except (a)the liens of all taxes, bonds,
assessments, and other levies which by law would be superior, and (b)the lien or charge of any Mortgage
Recorded before the Recordation of the lien (meaning any Recorded Mortgage with first priority over
other Mortgages) made in good faith and for value. Such lien, when delinquent, may be enforced by suit,
judgment, and judicial or nonjudicial foreclosure.
The Association may bid for the Unit at the foreclosure sale and acquire, hold, lease, mortgage,
and convey the Unit. Whi1e a Unit is owned by the Association foltowing foreclosure: (a) no right to vote
shatl be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Unit shall be
charged, in addition to its usual assessment, its pro rata share of the assessment that would have been
charged such Unit had it not been acquired by the Association. The Association may sue for unpaid
assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the
same.
Sale or transfer of any Unit shall not affect the assessment lien or relieve such Unit from the lien
for any subsequent assessments. However, the sale or transfer of any Unit pursuant to foreclosure of the
Mortgage shall extinguish the lien as to any installments of such assessments due prior to the
Mortgagee's foreclosure. The subsequent Owner to the foreclosed Unit shall not be personally liable for
assessments on such Unit due prior to such acquisition of title. Such unpaid assessments shall be
deemed to be Common Expenses collectible from Owners of all Units subject to assessment under
Section 9.5, includ+ng such acqusrer, its successocs and assigns.
9.8 Suspension of Votin4 Riqhts. In the event any Member shall be in arrears in the payment of
the assessments due or shall be in default of the performance of any of the terms of this Declaration, the
Articles and Bylaws of the Association, the rules or regulations adopted by the Association, for a period of
thirty (30) days, the Member's right to vote may be suspended by the Board, and if suspended shall remain
suspended until alt payments, together with interest, late fees, and attorneys' fees and costs, if any, are
brought current and at( defaults remedied. In addition, the Association shalf have such other remedies
against such detinquent Members as may be provided in the Articles, Bylaws, the Declaration, or Washington
state law.
9.9. Exempt Propertv. All Areas of Common Responsibility, such portions of the property
owned by Declarant, and any property dedicated or conveyed to and accepted by any governmental
authority or public utility shall be exempt from payment of Base Assessments and Special Assessments.
In addition, Dectarant and/or the Association shall have the right, but not the obligation, to grant
exemptions to certain Persons qualifying for tax exempt status under Section 501(c) of the Internaf
Revenue Code so long as such Persons own property subject to this Declaration for purposes listed in
Section 501(c).
9.10. Reimbursement of Declarant for Common Area Development and Capitalization of
Association. Upon acquisition of record title to a Unit by the first Owner thereof other than Declarant or a
Builder, a contribution shall be made by or on behalf of the purchaser to the working capital of the
Association in an amount to be determined by Declarant or in the absence of the election of the Declarant
to determine the contribution, by the Board if it elects to do so. Upon acquisition of record title to a Unit by
the first Owner thereof, the Declarant, if it elects to do so, shall also be entitled to collect from the
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purchaser of the Unit a sum, to be determined by the Declarant, as a reimbursement made to the
Declarant for the expenditures made by the Declarant to improve the Areas of Common Responsibility
and organize the Association, on behalf of the Members. These amounts shall be in addition to, not in
lieu of, the annual Base Assessment and shall not be considered an advance payment of such
assessment. These amounts shall be deposited into the purchase and sales escrow and disbursed
therefrom to the Declarant for reimbursement, or to the Association for use in covering operating
expenses and other expenses incurred by the Association pursuant to this Dec►aration and the Bylaws, as
appropriate based upon the contributions required.
9.11 Reimbursements From Local Jurisdictions —Assignment to Declarant. In the event that
the Association succeeds to the interest of the Declarant in any bond, late comers' reimbursement, impact
fee refund or similar right to receive a refund of funds paid by the Declarant pursuant to a requirement
imposed by a Local Jurisdiction as a result of the Association's acquisition of Areas of Common
Responsibility ("Refund"), the Association irrevocably assigns any such Refund to Declarant or to the
holder of Declarant's rights, if such rights were completely assigned by Declarant. Upon receipt of notice
that the Association is entitled to a Refund, the Association shall provide written notice of the Refund to
the Declarant, the Declarant's assignee or, if the address cannot be determined from the public record, to
such corporation or its successor in interest as is identified in the records of the Secretary of State of the
State of Washington. The Association shall assign to Declarant, Declarant's successor all Refunds to
which the Association may become entitled, regardless of the time that may have passed since
recordation of the Plat and the Association
Article X Expansion of the Community
10.1. Expansion bv Dectarant. Declarant may from time to time subject to the provisions of this
Declaration all or any portion of property owned by the Declarant or the DeclaranYs successors in interest
as designated by the Declarant, including portions which are not contiguous to other portions of the
Properties, by Recording a Supplemental Dec►aration describing the additional property to be subjected.
A Supplemental Declaration Recorded pursuant to this Section shall not require the consent of any
Person except the owner of such property, if other than Declarant. Declarant's right to expand the
Properties pursuant to this Section shall expire 20 years after this Declaration is Recorded. Until then,
Declarant may transfer or assign this right to any Person. Any such transfer shall be memorialized in a
written, Recorded instrument executed by Declarant. Nothing in this Declaration shall be construed to
requice Declarant or as►y successar ta sub}ect additiona4 praperty to this Dec4aration or ta develop all af
the property described in Exhibit"A" in any manner whatsoever.
10.2. Expansion by the Association. The Association may also subject additional property to
the provisions of this Declaration by Recording a Supplemental Declaration describing the additional
property. A Supplemental Declaration shall require the affirmative vote of Members representing more
than 50% of the Class"A" votes of the Association and the consent of the owner of the property. In
addition, so (ong as Declarant owns property subject to this Decfaration or which may become subject to
this Declaration in accordance with Section 10.1, DeclaranYs consent shall be necessary. The
Supplemental Declaration shall be signed by the President and Secretary of the Association, by the
owner of the property and by Declarant, if DeclaranYs consent is necessary.
10.3. Additional Covenants and Easements. Declarant may subject any portion of the
Properties to additionaf covenants and easements, including covenants obligating the Association to
maintain and insure such property and authorizing the Association to recover its costs through
Assessments. Such additional covenants and easements may be set forth either in a Supplemental
Declaration subjecting such property to this Declaration or in a separate Supplemental Declaration
referencing property previously subjected to this Declaration. If the property is owned by someone other
than Declarant, then the consent of the Owner shall be necessary and shall be evidenced by their
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execution of the Suppismental Declaration. Any such Supplementai Declaration may supplement, create
exceptions to, or otherwise modify the terms of this Declaration as it applies to the subject property in
order to reffect the different character and intended use of such property.
10.4. Effect of Recording Suqplemental Declaration. A Supplemental Declaration shall be
effective upon Recording unless othenrvise specified in such Supplemental Dectaration. On the effective
date of the Supplemental Declaration, any additional property subjected to this Declaration shall be
assigned voting rights in the Association and assessment liability in accordance with the provisions of this
Declaration.
Article XI Additional Rights Reserved to Declarant
11.1. Withdrawal of Property. Declarant reserves the right to amend this Declaration, so long
as Declarant has a right to annex additionaV property pursuant to Section 9.1, for the purpose of removing
any portion of the Properties which has not yet been improved with structures from the coverage of this
Declaration. Such amendment shall not require the consent of any Person other than the Owner of the
property to be withdrawn, if not a Declarant; such amendment shall be subject to any required approval
by the Local Jurisdiction. If the property is Common Area, the Association shall consent to such
withdrawal.
11.2. Governmental Interests. Declarant may designate sites it owns within the Properties for
fire, police, water, and sewer facilities, public schools and parks, and other public facilities. Sites may be
designated for use of water infiltration under the Permit. Neither the Association, the PIC, nor the Owners
may object to the use of such sites for the designated public purposes.
11.3. Marketing and Sales Activities. Declarant and Builders authorized by Declarant may
construct and maintain upon portions of the CommoR Area such facilities and activities as, in Declarant's
sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of Units,
including, but not limited to, business offices, signs, model units, and sales offices. Declarant and
authorized Builders shall have easements for access to and use of such facilities and shall not be subject
to fees or rental charges.
11.4. Right To Develop. Declarant and Declarant's employees, agents, and designees shall
have a right of access and use and an easement over and upon all of the Common Area for the purpose
of making, constructing, and installing such improvements to the Common Area as Declarant deems
appropriate in its sole discretion, so long as such improvements are not inconsistent with the permitted
uses and purposes of the Common Areas as defined in the Permit. Every Person that acquires any
interest in the Properties agrees not to protest, challenge, or otherwise object to the development of any
real property by Declarant which lies adjacent to the Properties, and which could be subjected to the
terms of this Declaration by Declarant.
11.5. Right To Approve Additional Covenants. No Person shall Record any declaration of
covenants, conditions, and restrictions or similar instrument affecting any portion of the Properties without
Declarant's review and written consent. Any attempted Recordation without such consent shall result in
such instrument being void and of no force and effect unless subsequently approved by written consent
signed and Recorded by Declarant.
91.6. Riqht To Approve Chanqes in the Standards Within the Community. No amendment to
or modification of any Use Restrictions or Residential Design Guidelines shall be effective without prior
notice to and the written approval of Declarant so long as Declarant owns property subject to this
Declaration or which may become subject to this Declaration in accordance with Section 10.1.
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11.7. Right To Transfer or Assign Declarant Rights. Any or all of Declarant's special rights and
obligations set forth in this Declaration or the Bylaws may be transferred in whole or in part to other
Persons; provided, the transfer shall not reduce an obligation nor enlarge a right beyond that which
Declarant has under this Declaration or the Bylaws. No such transfer or assignment shall be effective
unless it is in a written instrument signed and Recorded by Declarant. The foregoing sentence shall not
preclude Declarant from permitting other Persons to exercise, on a one time or limited basis, any right
resenred to Declarant in this Declaration where Declarant does not intend to transfer such right in its
entirety, and in such case it shall not be necessary to Record any written assignment unless necessary to
evidence Declarant's consent to such exercise.
11.8. Easement To Insqect and Riqht To Correct.
(a) Declarant reserves for Dectarant and such other Persons as Decla�ant may
designate perpetuat non-exclusive easements throughout the Properties to the extent reasonably
necessary for the purposes of access, inspecting, testing, redesigning, o� correcting any portion of the
Properties, including Units and the Areas of Common Responsibility. Declarant shall have the right to
redesign or correct any part of the Areas of Common Responsibility, and the designees of Declarant shall
have the right to redesign or correct any Unit for which they were the Builder.
(b) Entry onto a Unit shall be after reasonable notice, except in an emergency. Entry
into a structure on a Unit shall be only after Declarant notifies the UniYs Owner and agrees with the Owner
regarding a reasonable time to enter the structures on such Unit to perform such activities.
(c) Any damage to a Unit or the Areas of Common Responsibility resulting from the
exercise of the easement or right of entry described in subsections (a) and (b)of this Section shall promptly
be repaired by, and at the expense of, the Person exercising the easement right. The exercise of these
easements shall not unreasonably interfere with the use of any Unit and entry onto any Unit shall be made
only after reasonable notice to the Owner or occupant.
11.9. Riaht to Notice of Design or Construction Claims. No Person shall retain an expert for
the purpose of inspecting the design or construction of any structures or improvements within the
community in connection with or in anticipation of any potential or pending claim, demand, or litigation
involving such design or construction unless Declarant and ac►y builde� involved in the design or
construction have been first notified in writing and given an opportunity to meet with the Owner of the
property to discuss the Owner's concerns and conduct their own inspection.
11.10. Termination of Riqhts. The rights contained in this A�ticle shall npt terminate until the
earlier of (a) 30 years from the date this Declaration is Recorded, or (b) Recording by Declarant of a
written statement that all sales activity has ceased.
Article XII Easements
12.1. Easements in Common Area. Declarant grants to each Owner a nonexclusive right and
easement of use, access, and enjoyment in and to the Common Area, subject to:
(a) The Governing Documents and any other applicable covenants;
(b) Any restrictions or limitations contained in any deed conveying such property to
the Association;
(c) The Board's right to:
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(i) adopt Rules and Regulations governing the use and enjoyment of the
Common Area, including rules timiting the number of guests who may use the Common Area;
(ii) suspend the right of an Owner to use recreational facilities within the
Common Area {A)for any period during which any charge against such Owner's Unit remains delinquent,
and (B)for a period not to exceed 30 days for a single violation or for a longer period in the case of any
continuing violation, of the Governing Documents after notice and a hearing pursuant to the By{aws;
(iii) dedicate or transfer all or any part of the Common Area, subject to such
approval requirements as may be set forth in this Declaration;
(iv) impose membership requirements and charge admission or other use
fees for the use of any recreational facility situated upon the Common Area (such membership
requirements, admission or use fees may, in the Board's discretion, differentiate between Members of the
Association and other persons entitled to use such facilities);
(v) permit use of any recreational facilities situated on the Common Area by
persons other than Owners, their families, lessees, and guests upon payment of use fees established by
the Board and designate other areas and facilities within the Areas of Common Responsibility as open for
the use and enjoyment of the public;
(vi) mortgage, pledge, or hypothecate any or all of its real or personal
property as security for money borrowed or debts incurred subject to the approval requirements contained
in this Declaration; and
(d) The rights of certain Owners to the exclusive use of those portions of the
Common Area designated "Exclusive Common Areas,"as described in Article XIII.
Any Owner may extend his or her right of use and enjoyment to the members of his or her family,
lessees, and social invitees, as applicable, subject to reasonable regulation by the Board. An Owner who
leases his or her Unit shall be deemed to have assigned all such rights to the lessee of such Unit for the
period of the lease.
12.2. Easements of Encroachment. Declarant grants reciprocal appurtenant easements of
encroachment, and for maintenance and use of any permitted encroachment, between each Unit and any
adjacent Common Area and befinreen adjacent Units due to the unintentional placement or settling or
shifting of the improvements constructed, reconstructed, or altered thereon (in accordance with the terms
of these restrictions) to a distance of not more than three feet, as measured from any point on the
common boundary along a line perpendicular to such boundary. However, in no event shall an easement
for encroachment exist if such encroachment occurred due to wi)lful and knowing conduct on the part of,
or with the knowledge and consent of, the Person claiming the benefit of such easement.
12.3. Easements for Utilities. Etc.
(a) Installation and Maintenance. Declarant reserves for Declarant, so long as
Declarant owns any property described in Exhibit"A" of this Declaration or additional property subjected
to the Declaration, on behalf of Declarant, Declarant's nominees, successors, and assigns, perpetual non-
exclusive easements throughout the Properties (but not through a structure) to the extent reasonably
necessary for the purpose of:
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(i) installing utilities and infrastructure to serve the Properties, walkways,
pathways and trails, drainage systems, street lights and signage on property which Declarant owns or
within public rights-of-way or easements reserved for such purpose on Recorded plats;
(ii) inspecting, maintaining, repairing, and replacing the utilities,
infrastructure, and other improvements described in Section 12.3(a)(i), and any Trees;
(iii) access to read utility meters; and
(iv) access to from the public rights-of-way to any wetland, body of water, or
water monitoring site to perform water monitoring and testing.
Notwithstanding anything to the contrary herein, this easement shall not entitle the holders to
construct or instal� any of the foregoing systems, facilities, or utitities over, under or through any existing
dwelling on a Unit, and any damage to a Unit resulting from the exercise of this easement shall promptly
be repaired by, and at the expense of, the Person exercising the easement. Exercise of this easement
shall not unreasonably interfere with the use of any Unit and, except in an emergency, entry onto any Unit
shall be made only after reasonable notice to the Owner or occupant. No utilities may be installed or
relocated on the Properties without approval of the Board or as provided by Declarant.
(b) Specific Easements. Declarant also reserves the non-exclusive right and power
to grant and Record such specific easements as may be necessary, in the sole discretion of Declarant, in
connection with the orderly development of any property described in Exhibit A, or such additional
property subjected to the terms of the Declaration. The location of the easement shall be subject to the
written approval of the Owner of the burdened property, which approval shall not unreasonably be
withheld, delayed or conditioned.
12.4. Easements To Serve Additional Proqertv. Declarant hereby reserves for Declarant and
DeclaranYs duly authorized agents, successors, assigns, and mortgagees, an easement over the
Common Area for the purposes of enjoyment, use, access, and development of any additional property
subjected to the terms of the Declaration, whether or not such property is made subject to this
Declaration. This easement includes, but is not limited to, a right of ingress and egress over the Common
Area for construction of roads and for connecting and installing utilities on such property. Declarant
agrees that Declarant and DeclaranYs successors or assigns shall be responsible for any damaqe caused
to the Common Area as a result of their actions in connection with development of such property.
Declarant further agrees that if the easement is exercised for permanent access to such property
and such property or any portion thereof benefiting from such easement is not made subject to this
Declaration, or any other declaration of covenants, conditions, and restrictions under which an owners'
association is created or provided for, Declarant or Declarant's successors or assigns shall enter into a
reasonabfe agreement with the Association to share the cost of any maintenance which the Association
provides to or along any roadway providing access to such property. The allocation of costs in any such
agreement shall be based on the number of residential dwellings or commercial units on the property
served by the easement and not subject to this Declaration as a proportion of the total number of
residential dwellings within the Properties and on such benefited property.
12.5. Easements for Maintenance. Emergencv, and Enforcement. Declarant grants t4 the
Association easements over the Properties as necessary to enable the Association to fulfill its
maintenance responsibilities under Section 8.2. The Association shall also have the right, but not the
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obligation, to enter upon any Unit for emergency, security, and safety reasons, to perform maintenance
and to inspect for the purpose of ensuring compliance with and enforce the Governing Documents. Such
right may be exercised by any member of the Board and its duly authorized agents and assignees, and all
emergency personnel in the performance of their duties. Except in an emergency situation, entry shall
only be during reasonable hours and after notice to the Owner.
12.6 Technology Utility Easements. Dectarant reserves, so long as Declarant owns any
property described on Exhibit"A" of this Declaration and additional property subjected to this
Declaration by Declarant, perpetual, non-exclusive easements adjacent to the public rights-
of-way throughout the Properties, on behalf of Declarant, and DeclaranYs nominees,
successors and assigns, for the purpose of installing, operating, maintaining, repairing and
replacing telephone, cable television, telecommunications, security, and other systems for
sending and receiving data and/or other electronic signals ("Technology Utilities"), to serve
the Properties and each Unit, such easements shall be exc{usive to Dec{arant until granted or
conveyed to a third party, which may be exclusive, perpetual and irrevocable, at which point
such easements or interests may be more particularly described in the instrument granting or
conveying such easements or interests or on the recorded plats.
Declarant also reserves for Declarant the exclusive right and power to enter into contracts for the
construction, installation, and provision of any of the items addressed in this Section and to grant and
record in the public records such specific easements as may be necessary, in the sote discretion of
Declarant, in connection with the orderly development of any property described on Exhibit"A," and
additional property subjected to this Declaration by Declarant. Any such contract, agreement, or easement
may, in DeclaranYs sole discretion, grant the exclusive right to access or use of such system, including the
portions of the systems installed on or in the Units, dwellings, and other structures constructed on Units and
Common Areas within the Properties.
Any such contract, agreement, or easement entered into by Declarant may require that the Board
enter into a bulk rate service agreement for the provision of services offered to all Units within the
Properties. In such case, the cost shall be a Common Expense of the Association and shall be assessed
as a part of the Base Assessment. If the service provides additional services or benefits to certain Owners
or Units at their request, such additional services or benefits shall be paid directly by the Owner to the
service provider, or become a Specific Assessment, as appropriate and specified in the agreement
between the Association and the service provider.
Article Xltl Exclusive Common Areas
13.1. Purpase. Certain portions of the Common Area may be designated as Exclusive
Common Area and reserved for the exclusive use or primary benefit of specific Owners and occupants.
By way of illustration and not limitation, Exclusive Common Areas may include entry features, private
driveways, recreational facilities, landscaped medians and cul-de-sacs, lakes, and other portions of the
Common Area. All costs associated with maintenance, repair, replacement, and insurance of an
Exclusive Common Area shall be a Common Expense allocated among the Owners to which the
Exclusive Common Areas are assigned.
13.2. Designation. Initially, any Exclusive Common Area shall be designated as such in the
deed conveying such area to the Association, in this Declaration, or on the subdivision plat relating to
such Common Area; provided, any such assignment shall not preclude Declarant from later assigning use
of the same Exclusive Common Area to additional Units, so long as Declarant has a right to subject
additional property to this Declaration pursuant to Section 10.1.
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Thereafter, a portion of the Common Area may be assigned as Exclusive Common Area and
Exclusive Common Area may be reassigned upon approval of the Board and the vote of Members
representing a majority of the total Class"A" vates in the Association, including a majority of the votes of
the Owners affected by the proposed assignment or reassignment. As long as Declarant owns any
property subject to this Declaration or which may become subject to this Declaration in accordance with
Section 9.1, any such assignment or reassignment shall also require Declarant's written consent.
13.3. Use by Others. Upon approval of a majority of Owners of Units to which any Exclusive
Common Area is assigned, the Association may permit Owners of other Units, or other persons who are
not Owners, to use all or a portion of such Exclusive Common Area upon payment of reasonable user
fees, which fees shall be used to offset the Common Expenses attributable to such Exclusive Common
Area.
Article X!V Party Walls and Othe�Shared Structures
14.1. General Rules of Law to Applv. Each wall, fence, driveway, utility, sewer or similar
structure built as a part of the original construction on the Units which serves and/or separates any two
adjoining Units shall constitute a party structure. To the extent not inconsistent with the provisions of this
Section, the general rules of law regarding party walls and liability for property damage due to negligence
or willful acts or omissions shall apply thereto. Any dispute arising concerning a party structure shall be
handied in accordance with the provisions of Articie XV.
14.2. Maintenance; Damaqe and Destruction. The cost of reasonable repair and maintenance
of a party structure shall be shared equally by the Owners who make use of the party structure. If a party
structure is destroyed or damaged by fire or other casualty, then to the extent that such damage is not
covered by insurance and repaired out of the proceeds of insurance, any Owner who has used the
structure may restore it. If other Owners thereafter use the structure, they shall contribute to the
restoration cost in equal proportions. However, such contribution will not prejudice the right to call for a
larger contribution from the other users under any rule of law regarding liability for negligent or willful acts
or omissions.
14.3. Right to Contribution Runs With Land. The right of any Owner to contribution from any
other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's
s�sc,�essors-in-title.
14.4. Disputes. Any dispute arising concerning a party structure shall be handled in
accordance with the provisions of Article XV.
Article XV Dispute Resolution and Limitation on Litigation
15.1 Dispute Resolution Methods. The provisions of this Article shal( govern the resolution of
all Claims between any Bound Party. Claims, disputes and controversies shall be resolved pursuant to
the Arbitration Agreements described in Section 15.4, unless specificafly exempted from the Arbitration
Agreements by Section 15.3; if exempt from the Arbitration Agreements, the Exempt Claims may be
litigated in a court of competent jurisdiction. Before any Claims are brought by the Association against
any Person, the Association shall comply with the requirements of Sections 15.5.
15.2 Claims and Exempt Claims. Unless specifically identified as an Exempt Claim in this
Section, all claims or disputes arising out of or relating to (a) the interpretation, application or enforcement
of the Governing Documents; (b) the rights, obligations and duties of any Bound Party under the
Governing Documents; (c) relating to the design or construction of improvements on the Properties, (d)
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breach of contract, (e) negligent or intentional misrepresentations or nondisclosure in the inducement, (fl
execution or pertormance of any contract related to the Condominium, including the Arbitration
Agreements described in this Artic�e, (g) any alleged statutory violation, (h) any claim of bodily injury
related to the design or construction of the Units and the Common Areas, and (i) any claim made under
the Washington State Consumer Protection Act (collectively, "Claims") shall be subject to the provisions
of Section 15.4, which require the Claims to be arbitrated. Unless all necessary parties otherwise agree,
the following list of exemptions ("Exempt Claims") shall not be Claims, and shall not be subject to the
provisions of Section 15.4 requiring arbitration, nor shall Exempt Claims be subject to the provisions of
Section 15.5- 15.7:
152.1 any suit by the Association against any Bound Party to collect assessments,
enforce liens, enforce the provisions of the Governing Documents;
15.2.2 any suit by the Association to obtain equitable relief (i.e., temporary restraining
order, injunction, or specific performance) and such other ancillary relief as the court may deem
necessary in order to maintain the status quo and preserve the Association's ability to enforce the
provisions of Articles 111, Article IV and Article V;
15.2.3 any suit brought by the Association to challenge tax assessments;
15.2.4 any suit brought by the Association against any contractor or vendor arising out
of a contract for services or supplies between the Association and such contractor or vendor;
15.2.5 counterclaims brought by the Association in proceedings instituted against the
Association;
15.2.6 any suit by a Bound Party for declaratory or injunctive relief which seeks a
determination as to applicability, enforcement, clarification, or interpretation of any provisions of the
Declaration;
15.2.7 any suit between Owners, which does not include Declarant or the Association
as a party, if such suit asserts a Claim which would constitute a cause of action independent of the
Governing Documents if the amount in controversy exceeds$10,000.00;
15.2.8 any suit in which any indispensable party is not a Bound Party; and
15.2.9 any suit as to which any applicable statute of limitations would expire within 180
days of giving the Notice required by Section 15.4(a), unless the party or parties against whom the Claim
is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be
necessary to comply with this Article.
With the consent of all parties thereto, any of the above exemptions voluntarily may be submitted to the
arbitration procedures set fo�th in Section 15.4. If the Association seeks to litigate items 15.2.1 through
15.2.5, such litigation shall require the majority vote of the Board of Directors.
15.3 Bound Parties. Declarant, the Association, its officers, directors, and committee
members, all Persons subject to this Declaration, any Builder, and any Person not otherwise subject to
this Declaration who agrees to submit to this Article by contract with a Bound Party or by stipulation shall
be a"Bound Party"for the purposes of this Article XV.
15.4 Arbitration Agreements. Each Bound Party covenants and agrees to submit all Claims to
the arbitration procedures set forth in this Section 15.4, in lieu of filing suit in any court. Any dispute
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concerning the interpretation or the enforceability of the Arbitration Agreements described in this
paragraph, including, without limitation, revocability or voidability for any cause, the scope of arbitrable
issues, and any defense based upon waiver or estoppel, shall be decided by the Arbitrator. The decision
of the Arbitrator sha�l be final and binding and may be entered as a judgment in any court of competent
jurisdiction. These Arbitration Agreements shall inure to the benefit of, and be enforceable by, Declarant
and Declarant's subcontractors, agents, vendors, suppliers, design professionals, insurers and any other
person alleged to be liable for any defect in or to any Unit or the Common Elements; and shall be binding
upon all family members and tenants of the Owners and the Association. No participation of a party in a
judicial proceeding involving a matter which is arbitrable under these Arbitration Agreements shall be
deemed a waiver of the right of such party to enforce the Arbitration Agreements. If any provision of
these Arbitration Agreements shall be determined by the Arbitrator or 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. Any party shall be entitled to recover reasonable attorney's fees, litigation
expenses and costs incurred in enforcing the Arbitration Agreements, as provided in Section 15.8.
15.4.1 Arbitration Agreement for Non-Warranty Claims. The Bound Parties agree that
any Claim which is not a Claim covered by a Warranty (as described in Section 15.4.2) shall be settled
and resolved by arbitration as described herein. The Arbitration shall be conducted by the American
Arbitration Association, Construction Arbitrations Services, Inc., DeMars & Associates, Ltd., or another
arbitration service selected by the parties in writing, pursuant to the arbitration service's applicable
arbitration rules to the extent such rules are not inconsistent with this Arbitration Agreement. If the parties
fail to agree on the selection of an arbitration service, the choice of arbitration service shall be that of the
Claimant. 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
interest of justice.
The Arbitrator shall take such steps as may be necessary to hold a hearing within ninety (90)
days of the initial demand for arbitration and to conclude the hearing within three (3) days; and the
Arbitrator's written decision shall be made not later than fourteen (14) calendar days after the hearing.
These time limits are inctuded in order to expedite the proceeding, but they are not jurisdictional, and the
Arbitrator may for good cause afford or permit reasonable extensions or delays, which shall not affect the
validity of the award. The written decision shall contain a brief statement of the claim determined and the
award made on each claim. In making the decision and award, the Arbitrator shall apply applicable
substantive law. The Arbitrator may award injunctive re{ief or any other remedy avai{able from a}udge,
including without limitation joinder of parties or consolidation of this arbitration with any other involving
common issues of law or fact, or which may promote judicial economy, but shall not have the power to
award punitive or exemplary damages.
The parties expressly agree that this Arbitration Agreement involves and concerns interstate
commerce, and is governed by the Federal Arbitration Act (9 U.S.C. §1, et. seq.) to the exclusion of any
different or inconsistent state or (ocaf (aw, ordinance or judicial rule; and 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 arbitration service rules shall
govern the conduct of the proceeding.
15.4.2 Arbitration Agreement for Warranty Claims. The Bound Parties agree that any
Claim which is a Claim covered by a Warranty shall be settled and resolved by arbitration as described in
this Subsection 15.4.2. A Warranty Claim is a Claim, dispute or controversy between Bound Parties
arising from or related to alleged defects in the Unit or the Common Areas which are asserted after the
closing of the transfer of title to a Unit, and which are covered by a contractual warranty supplied to the
buyer of the Unit by the seller of the Unit. Warranty Claims shall be submitted to binding arbitration
commenced and conducted in accordance with the arbitration provision of the Warranty, even if such
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provisions are inconsistent with the provisions of this Subsection 15.4. If the Warranty fails to specify a
method of arbitration for Warranty Claims, the provisions of Section 15.4.1 shall apply.
15.4.3 Limitation Upon Amendments. The Declarant, the Association and all Owners
hereby acknowledge and agree that no amendment of this Declaration shall modify, alter or delete any
portion of the Arbitration Agreements in Section 15.4 of this Declaration without the written consent of the
Declarant attached to and recorded with such amendment, regardless of whether Declarant continues to
maintain an ownership interest in any Unit or membership in the Association.
15.4.4 Bindinq Upon Successors and Assigns. The Declarant, the Association and all
Owners acknowledge and agree that, by virtue of the recording of the Declaration, these Arbitration
Agreements shall run with title to the real property subject to the Declaration and all additional phases,
and shall be binding upon all Persons having any right, title or interest in all or any portion of the real
property subject to the Declaration their respective heirs, legaf representatives, successors, successors-
in-title, and assigns, and shall be for the benefit of the Declarant and all Owners of Units and Common
Elements subject to this Declaration, regardless of whether Decla�ant continues to maintain an ownership
interest in any Unit or membership in the Association.
15.5 Consensus for Association Litigation of Claims. The Association shall not
commence arbitration, judicial or administrative proceedings to resolve a Claim without the approval of
Members representing at least 67% of the total votes in the Association. In the event the judicial or
administration proceeding is against the Declarant or any former Declarant, 75°/a of the total votes in the
Association are required to commence such proceeding. This Section shall not be amended unless such
amendment is approved by the percentage of votes, and pursuant to the same procedures, necessary to
institute proceedings as provided above.
15.6 Mandatory Procedures for Litictation of Claims.
15.6.1 Notice. Any Bound Party having a Claim ("Claimant") against any other Bound
Party ("RespondenY') (cotlectively, the "Parties") shall notify each Respondent in writing (the "Notice"),
stating plainly and concisely: (a) the nature of the Claim, including the Persons involved and
Respondent's role in the Claim; (b)the legal basis of the Claim (i.e., the specific authority out of which the
Claim arises); (c) Claimant's proposed remedy; and (d) that Claimant will meet with Respondent to
discuss in good faith ways to resolve the Claim.
15.62 Ne otcL iation and Mediation. The Parties shall make every reasonable effort to
meet in person and confer for the purpose of resolving the C1aim by good faith negotiation. If requested
in writing, accompanied by a copy of the Notice, the Association's Board may appoint a representative to
assist the Parties in negotiation. If the Parties do not resolve the Claim within 30 days of the date of the
Notice (or within such other period as may be agreed upon by the Parties) ("Termination of Negotiations"),
Claimant shall have 30 additional days to submit the Claim to mediation under the auspices of any Local
Jurisdiction dispute resolution center or, if the Parties otherwise agree, to an independent agency
providing dispute resolution services in the area. If Claimant does not submit the Claim to mediation
within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the
Claim, and Respondent shall be released and discharged from any and atl liability to Claimant on account
of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any
Person other than the Claimant.
Any settlement of the Claim through mediation shall be documented in writing by the mediator
and signed by the Parties. If the Parties do not settle the Claim within 30 days after submission of the
matter to the mediation, or within such time as determined by the mediator, the mediator shall issue a
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notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of
Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was
#erminated.
Within five (5) days of the Termination of Mediation, the Claimant shall make a final written
settlement demand ("Settlement Demand") to the Respondent, and the Respondent shall make a final
written settlement offer ("Settlement O(fer") to the Claimant. lf the Claimant fails to make a Settlement
Demand, Claimant's original Notice shall constitute the Settlement Demand. If the Respondent fails to
make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing"
Settlement Offer.
15.6.3 Final and Binding Arbitration. If the Parties do not agree in writing to a settlement
of the Claim within 15 days of the Termination of Mediation, the Claimant shall have 15 additional days to
submit the Claim to arbitration in accordance with Section 15.4. (f not timely submitted to arbitration or if
the Claimant fails to appear for the arbitration proceeding, the Claim shall be deemed abandoned, and
Respondent shall be released and discharged from any and all liabitity to Claimant arising out of such
Claim; provided, nothing herein shall release or discharge Respondent from any liability to Persons other
than Ctaimant. This subsection is an agreement to arbitrate and is specifically enforceable under federal
and state arbitration laws. The arbitration award (the "Award") shall be final and binding, and judgment
may be entered uQon it in any court oi competent yurisdiction to the fullest extent permitted under iederal
and Washington State laws.
15.7 Allocation of Costs of Resolvinq Claims. Each Party shall bear its own costs,
including attorney's fees, and each Party shall share equally all charges rendered by the mediator(s) and
all filing fees and costs of conducting the arbitration proceeding ("Post Mediation Costs"), except as
otherwise ordered by the arbitrator pursuant to Section 15.4. Any Award which is equal to or more
favorable to Claimant than ClaimanYs Settlement Demand shall add Claimant's Post Mediation Costs to
the Award, such costs to be borne equally by all Respondents. Any Award which is equal to or less
favorable to Claimant than any Respondent's Settlement Offer shall award to such Respondent its Post
Mediation Costs, except as otherwise provided in this subsection.
15.8 Enforcement of Resolution—Attorney's Fees and Costs. If the Parties agree to a
resolution of any Claim through negotiation or mediation in accordance with Section 15.4 and any Party
thereafte� fails to abide by the terms of such agreement, or if the Parties agree to accept the Award
following arbitration and any Party thereafter fails to comply with such Award, then any abiding or
complying Party may file suit or initiate administrative proceedings to enforce such agreement or Award
without the need to again comply with the procedures set forth in Section 15.4. In such event, the Party
taking action to enforce the agreement or Award shall be entitled to recover from the non-complying Party
(or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in enforcing
such agreement or Award, ir�cluding, without limitatior�, attorneys' fees and court costs. !f the Bound
Parties litigate an Exempt Claim, the prevailing party in such litigation shall be entitled to payment of all
attorney's fees, litigation and costs by the non-prevailing party.
Article XVI Mortgagee Provisions
The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages
on Units in the Properties. The provisions of this Article apply to both this Declaration and to the Bylaws,
notwithstanding any other provisions contained therein.
16.1. Notices of Action. An institutional holder, insurer, or guarantor of a first Mortgage which
provides a written request to the Association (such request to state the name and address of such holder,
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insurer, or guarantor and the street address of the Unit to which its Mortgage relates, thereby becoming
an "Eligible Holder"), will be entitled to timely written notice of:
(a) Any condemnation loss or any casualty loss which affects a material portion of
the Properties or which affects any Unit on which there is a first Mortgage hetd, insured, or guaranteed by
such Eligible Holder;
(b) Any delinquency in the payment of assessments or charges owed by a Unit
subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of 60
days, or any other violation of the Governing Documents relating to such Unit or the Owner or Occupant
which is not cured within 60 days;
(c) Any lapse, cancellation, or material modification of any insurance policy
maintained by the Association; or
(d) Any proposed action which would require the cansent of a specified percentage
of Eligible Holders.
16.2. Special FHLMC Provision. So long as required by the Federal Home Loan Mortgage
Corporation or any successor to FHLMC, the following provisions apply in addition to and not in lieu of the
foregoing. Unless at least 67% of the first Mortgagees or Members representing at least 67% of the total
Association vote consent, the Association shall not:
(a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or
transfer all or any portion of the real property comprising the Common Area which the Association owns,
directly or indirectly (the granting of easements for utilities or other similar purposes consistent with the
intended use of the Common Area sha!! not be deemed a transfer within the meaning of this subsection);
(b) Change the method of determining the obligations, assessments, dues, or other
charges which may be levied against an Owner of a Unit(a decision, including contracts, by the Board or
provisions of any declaration subsequently Recorded on any portion of the Propefties shall not be subject
to this provision where such decision or subsequent declaration is othervvise authorized by this
Declaration);
(c) By act or omission change, waive, or abandon any scheme of regulations or
enforcement pertaining to architectural design, exterior appearance or maintenance of Units and the
Common Area (the issuance and amendment of architectural standards, Use Restrictions pursuant to
Article Ilt, procedures, or Rules and Regulations shall not constitute a change, waiver, or abandonment
within the meaning of this provision);
(d) Fail to maintain insurance, as required by this Declaration; or
{e) Use hazard insurance proceeds for any Common Area losses for other than the
repair, replacement, or reconstruction of such property.
First Mortgagees may,jointly or singly, pay taxes or other charges which are in default and which
may or have become a charge against the Common Area and may pay overdue premiums on casualty
insurance policies or secure new casualty insurance coverage upon the lapse of an Association policy,
and first Mortgagees making such payments shall be entitled to immediate reimbursement ftom the
Association.
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16.3. Other Provisions for First Lien Holders. To the extent not inconsistent with Washington
law:
(a) Any restoration or repair of the Properties after a partial condemnation or
damage due to an insurable hazard shall be performed substantially in accordance with this Declaration
and the original plans and speci�cations unless the approval is obtained of the Eligible Holders of first
Mortgages on Units to which at least 51%of the votes of Units subject to Mortgages held by such E4igibte
Holders are allocated.
(b) Any election to terminate the Association after substantial destruction or a
substantial taking in condemnation shall require the approval of the Eligible Holders of first Mortgages on
Units to which at least 51% of the votes of Units subject to Mortgages held by such Eligible Holders are
allocated.
16.4. Amendments to Documents. The following provisions do not apply to amendments to the
constituent documents or termination of the Association as a result of destruction, damage, or
condemnation pursuant to Section 15.3(a) and (b), or to the addition of land in accordance with Article 1X.
(a) The consent of Members representing at least 67°l0 of the Class"A" votes and of
Declarant, so long as Declarant owns any land subject to this Declaration, and the approval of the Eligible
Holders of first Mortgages on Ur►its to which at least 67% af the votes of Units subject to a Mortgage
appertain, shall be required to terminate the Association.
(b) The consent of Members representing at least 67% of the Class"A" votes and of
Declarant, so long as Declarant owns any land subject to this Declaration, and the approval of Eligible
Holders of first Mortgages on Units to which at least 51% of the votes of Units subject to a Mortgage
appertain, shall be required materially to amend any provisions of the Declaration, Bylaws, or Articles of
Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate
any of the following:
(i) voting;
(ii) assessments, assessment liens, or subordination of such liens;
(iii) reserves for maintenance, repair, and replacement of Common Area;
(iv) insurance or fidelity bonds;
(v) rights to use the Common Area;
{vi) responsibility for maintenance and repair of the Properties;
(vii) expansion or contraction of the Properties or the addition, annexation, or
withdrawal of Properties to or from the Association;
(viii) boundaries of any Unit;
(ix) leasing of Units;
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(x) imposition of any right of first refusal or similar restriction of the right of
any Owner to sell, transfer, or otherwise convey his or her Unit;
(xi) establishment of self-management by the Association where professional
management has been required by an Eligible Holder; or
(xii) any provisions included in the Governing Documents which are for the
express benefit of holders, guarantors, or insurers of first Mortgages on
Units.
16.5. No Prioritv. No provision of this Declaration or the Bylaws gives or shall be construed as
giving any Owner or othe� party priority over any rights of the first Mortgagee of any Unit in the case of
distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the
Common Area.
16.6. Notice to Association. Upon request, each Owner shall be obligated to furnish to the
Association the name and address of the holder of any Mortgage encumbering such Owner's Unit.
16.7. Failure of Mortqagee To Respond. Any Mortgagee who receives a written request from
the Board to respond to or consent to any action shall be deemed to have approved such action if the
Association does not receive a written response from the Mortgagee within 30 days of the date of the
Association's request, provided such request is delivered to the Mortgagee by certified or registered mail,
return receipt requested.
16.8. Construction of Article XV. Nothing contained in this Article shali be construed to reduce
the percentage vote that must otherwise be obtained under this Declaration, the Bylaws, or Washington
iaw for any of the acts set out in this Article.
16.9. Amendment by Board. Should the Federal National Mortgage Association or FHLMC
subsequently delete any of its respective requirements which necessitate the provisions of this Article or
make any such requirements less stringent, the Board, without approval of the Owners, may record an
amendment to this Article to reflect such changes.
Article XVII Changes in Ownership of Units
Any Owner desiring to sell or otherwise transfer title to his or her Unit shall give the Board at least
seven days' prior written notice of the name and address of the purchaser or transferee, the date of such
transfer of title, and such other information as the Board may reasonably require. Each transferee of a
Unit shall, within seven days of taking title to a Unit, confirm that the information previously provided by
the transferor is complete and accurate. The transferor sha11 continue to be joint{y and severa{fy
responsible with the transferee for all obligations of the Owner of the Unit, including assessment
obligations, until the date upon which such notice is received by the Board, notwithstanding the transfer of
title.
Article XVIII Changes in Common Area
18.1. Condemnation. If any part of the Common Area shall be taken (or conveyed in lieu of
and under threat of condemnation by the Board acting on the written direction of Members representing at
least 67% of the total Class"A" votes in the Association and of Declarant, as long as Declarant owns any
property subject to the Declaration or which may be made subject to the Declaration in accordance with
Section 10.1) by any authority having the power of condemnation or eminent domain, each Owner shall
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be entitled to written notice of such taking or conveyance prior to disbursement of any condemnation
award or proceeds from such conveyance. Such award or proceeds shall be payable to the Association
to be disbursed as fotlows:
If the taking or conveyance involves a portion of the Common Area on which improvements have
been constructed, the Association shall restore or replace such improvements on the remaining land
included in the Common Area to the extent available, unless within 60 days after such taking Declarant,
so long as a Declarant owns any property subject to the Declaration or which may be made subject to the
Declaration in accordance with Section 10.1, and Members representing at least 67% of the total
Class"A" vote of the Association shall otherwise agree. Any such construction shall be in accordance
with plans approved by the Board. The provisions of Section 8.3(c) regarding funds for restoring
improvements shall apply.
If the taking or conveyance does not invofve any improvements on the Common Area, or if a
decision is made not to repair or restore, or if net funds remain after any such restoration or replacement
is complete, then such award or net funds shall be disbursed to the Association and used for such
purposes as the Board shall determine.
18.2. Partition. Except as permitted in this Declaration, the Common Area shall remain
undivided, and no Person shall bring any action partition of any portion of the Common Area without the
written consent of all Owners and Mortgagees. This Section shall not prohibit the Board from acquiring
and disposing of tangible personal property nor from acquiring and disposing of real property which may
or may not be subject to this Declaration.
18.3. Transfer or Dedication of Common Area. The Association may transfer, dedicate, or
grant easements over portions of the Common Area to any other local, state, or federal governmental or
quasi-governmental entity without a vote of the Owners subject to compliance with Section 17.2, if
applicable.
Article XIX Amendment of Declaration
19.1. By Declarant. In addition to specific amendment rights granted elsewhere in this
Declaration, until conveyance of the first Unit to a Person other than a Builder, Declarant may unilaterally
amend this Declaration for any purpose. Thereafter, Declarant may uni{ateratly amend this Declaration if
such amendment is necessary (a)to bring any provision into compliance with any applicable
governmental statute, rule, regulation, or judicial determination; (b)to enable any reputable title insurance
company to issue title insurance coverage on the Units; (c}to enable any institutional or governmental
lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal National
Mortgage Association or Federal Home Loan Mortgage Corporation, to make, purchase, insure or
guarantee mortgage loans on the Units; or (d)to satisfy the requirements of any focal, state or federal
governmental agency. However, any such amendment shall not adversely affect the title to any Unit
unless the Owner shall consent in writing.
In addition, so long as Declarant owns property described in Exhibit "A" for development as part
of the Properties, Declarant may unilaterally amend this Declaration for any other purpose, provided the
amendment has no material adverse effect upon any right of any Owner or unless such Owner shall
consent in writing.
19.2. By Members. Except as otherwise specifically provided above and elsewhere in this
Declaration, this Declaration may be amended only by the affirmative vote or written consent, or any
combination thereof, of Members representing 67% of the total Class"A" votes in the Association,
including 67% of the Class"A" votes held by Members other than Declarant, and Declarant's consent, so
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long Declarant owns any property subject to this Deciaration or which may become subject to this
Declaration in accordance with Section 10.1. In addition, the approval requirements set forth in
Article XVI shall be met, if applicable.
Nofinrithstanding the above, the percentage of votes necessary to amend a specific clause shall
not be less than the prescribed percentage of affirmative votes required for action to be taken under that
clause.
19.3. Validity and Effective Date. No amendment may remove, revoke, or modify any right or
privilege of Declarant or the Class"B" Member without Declarant's written consent or the Class"B"
Member, respectively (or the assignee of such right or privilege). If an Owner consents to any
amendment to this Declaration or the Bylaws, it wilt be conclusively presumed that such Owner has the
authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a
third party will affect the validity of such amendment. Any amendment shalf become effective upon
Recording, unless a later effective date is specified in the amendment. Any procedural challenge to an
amendment must be made within six months of its Recordation or such amendment shall be presumed to
have been validly adopted. In no event shalf a change of conditions or circumstances operate to amend
any provisions of this Declaration.
19.4. Exhibits. Exhibits A and C attached to this Declaration are incorporated by this reference
and amendment of such exhibits shall be governed by this Article. Exhibit B is incorporated by reference
and may be amended pursuant to Sections 19.1 and 19.2, or as provided in Articte I II.
IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the date and
year first written above.
Talbot ftoad, LlC a Washington LtC,
�
By:
ilip Nels , Manage
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
I certify that 1 know or have satisfactory evidence that Philip Nelson is the person who appeared
before me, and that person acknowledged signing this instrument, on oath stated their authority to
execute the instrument and acknowledged it as the Manager of Talbot Road, LLC, a Washington LLC, on
behalf of whom instrument was executed to be the free and voluntary act of such party for the uses and
purposes mentioned in the instrument.
SUBSCRIBED and SWORN to before me this I�day of �-e��,."._.�.`D;3016.
�����V�.�-� �'.__� �`�
�
(printed name): � <T h� i c�u�.�(z l l�.
NOTARY PUBLIC
My Commission expires: � - �/ - I �7
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EXHIBIT A
Land Submitted to Declaration
Lots 1-17 and Tracts 997, 998 and 999 of the Plat of Talbot and 55th recorded on
Recording Number 2d l�/20?04 1.3 7 8
Situated in the County of King, State of Washington.
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EXHIBiT B
Initial Use Restrictions
The following Use Restrictions shall apply to all of the Properties until such time as they are
amended, modified, repealed, or limited by the Association pursuant to Article III of the Declaration.
(a) General. The Properties shall be used only for residential, recreationai, and related
purposes (which may include, without limitation, offices for any property manager retained by the
Association or business offices for Declarant, approved Builders, or the Association consistent with this
Declaration and any Supplemental Declaration). Any Supplemental Declaration or additional covenants
imposed on the property within any Neighborhood may impose stricter standards than those contained in
the Declaration and the Association shall have standing and the power to enforce such standards.
(b) Restrictions. The following are prohibited within the Properties unless expressly
authorized by, and then subject to such conditions as may be imposed by, the Board:
(1) Temporarv Structures Prohibited. No basement, tent, shack, garage, barn or other
outbuilding or buildings or any structure of a temporary or moveable character erected or placed on the
Properties shall at any time be used as living quarters except as specifically authorized by the PIC.
(2) Nuisances. No noxious or undesirable thing, activity or use of any Unit in the
Properties shall be permitted or maintained. If the PIC shall determine that a thing or use of any Unit or any
part of the Properties is undesirable or noxious, such determination shall be conclusive. The PIC may
recommend and the Board may direct that steps be taken as is reasonably necessary including, without
limitation, the institution of legal action or the imposition of fines in the manner authorized by RCW Chapter
64.38,to abate any activity, remove anything or terminate any use of property which is determined by the PIC
or described in this Declaration to constitute a nuisance.
(3) Limitation on Animals. No animal, livestock or poultry of any kind shall be raised,
bred or kept on any Unit, except cats, dogs, birds or fish may be kept if they are not kept, bred or maintained
for any commercial purpose, and they shall not be kept in numbers or under conditions reasonably
objectionable in a closely built-up residential community. Animals shall not be allowed to roam loose outside
the limits of any Unit on which they are kept. Provided, however, the Board in its discretion may designate
certain tracts as off-leash dog areas, subject to reasonable rules, so long as (i) the dog(s) are under voice
command; (ii) the dog(s) are non-aggressive; and (iii) all solid waste is removed by the Owner utilizing the
Tract for such purposes. Any dog(s) must be kept so as to minimize excessive noise from barking or
otherwise shall be considered a nuisance according to the terms of this Declaration. Each Owner shall be
responsible for cleaning up after his or her animal for any waste or damage to any area outside of the
Owner's Unit.
(4) Limitation on Siqns. The Association may regulate or prohibit all signs, to the full
extent allowed by State law. The Association may establish guidelines or restrictions including duration,
location and appearance of signs. In addition to other rights reserved to Declarant in the Declaration,
Declarant hereby reserves for itself and all Builders, so long as Declarant or any Builders own any Unit, the
right to maintain upon the Properties such signs as in the opinion of Declarant are required, convenient or
incidental to the merchandising and sale of the Units.
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(5) Completion of Construction Proiects. The work of construction of all building and
structures shall be pursued diligently and continuously from commencement of construction until the
structures are fully completed and painted. All structures shall be completed as to external appearance,
including finish painting, within one year of the date of commencement of construction, except such
construction as is performed by Declarant, which shall be exempt from the limitations contained in this
Section. Front yard landscaping must be completed within 90 days of completion of a Unit, and rear yard
landscaping must be completed within six months of completion of a Unit. Except with the approval of the
Board, no person shall reside on the premises of any Unit until such time as the improvements to be erected
on the Unit in accordance with the plans and specifications approved by the Board have been completed.
(6) Unsiqhtly Conditions. No unsightly conditions shall be permitted to exist on any
Unit. Unsightly conditions shall include, without limitation, laundry hanging or exposed in view for drying,
litter, trash, junk or other debris; inappropriate, broken or damaged furniture or plants; non-decorative gear,
equipment, cans, bottles, ladders and other such items; and no awnings, air conditioning units, heat pumps or
other projections shall be placed on the exterior walls of any Unit unless prior written approval shall have
been obtained from the PIC. Garbage containers and recycle bins are to be stored so as not to be seen from
the street, except on pick-up days. Owners should insure garbage containers are secure from overflowing or
spiils and to keep litter and debris picked up around their property at all times.
(7) Antennas, Satellite Reception. Satellite dishes of no more than one meter in
diameter or diagonal measurement are permitted on the Properties without PIC approval. All over-the-air
reception devices shali comply with the Residential Design Guidelines or other applicable rules adopted by
the Association pertaining to the means, method and location of antennas and satellite dishes. PIC approval
will be consistent with FCC regulations.
(8) Setbacks. No building shall be located on any Unit nearer to the front lot line or
nearer to the side street than the minimum building setback lines adopted by the governmental authority with
jurisdiction over the Properties.
(9) Roofs. Roofs on all buildings must be finished with materials approved for use by
the PIC. More than one type of material may be approved.
(10) Fences, Walis. In order to preserve the aesthetics of the Properties, no fence, wall
or hedge shall be erected or placed on any Unit unless prior written approval has been obtained from the
PIC. The design and color of any fence on the Properties, whether visible to the other Units or not, shall be
constructed and finished according to the standard fence detail, as such detail is initially designated by the
PIC. If a standard fence detail is attached to this Declaration, such fence detail and any required color for a
fence may be modified by the PIC.
(11) Residential Use Onlv. Except for Declarant's or a Builder's temporary sales,
construction offices and model homes, no Unit shall be used for other than one detached single-family
residential dwelling,with driveway parking used for not more than three cars.
(12) UnderQround Utilities Reauired. Except for any facilities or equipment provided by
the Declarant or any utility, all electrical service, telephone lines and other outdoor utility lines shall be placed
underground.
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(13) Sales and Construction Facilities. Notwithstanding any other provision in this
Declaration to the contrary, it is expressly permissible for Declarant, a Builder, and their agents, employees or
nominees, to maintain on any portion of the Properties owned by Declarant, a Builder or on the Common
Areas such facilities as the they may reasonably feel are required, convenient or incidental to the construction
and/or sales of Units or improvements thereon. Declarant may permit, in writing, an individual Owner or third
party purchaser to maintain temporary equipment and construction material on the Owner's Unit when the
Declarant feels the same is reasonably required, convenient or incidental to construction activities for
improvement of the Unit.
(14) Drainaae Waters. Following original grading of the roads and ways of the
Properties, no drainage waters shall be diverted or blocked from their natural course so as to discharge upon
any public road rights-of-way. The Owner of any Unit, prior to making any alteration in the drainage system,
must make appiication to and receive approval from the applicable governmental jurisdiction. Any enclosing
of drainage waters in culverts or drains or rerouting thereof across any Unit as may be undertaken by or for
the Owner of any Unit shall be done by and at the expense of such Owner.
(15) NBA Restrictions and Maintenance. The NPGE identifies the wetland and buffer
area. The creation of the NGPE conveys to the public a beneficial interest in the land within the easement
area. This interest shall be for the purpose of preserving native vegetation for the control of surFace water
and erosion, maintenance of slope stability, visual and aural buffering, and protection of plant and animal
habitat. The NGPE imposes upon all present and future owners and occupiers of the easement area
enforceable on behalf of the public by the City of Renton, to leave undisturbed all trees and other
vegetation within the easement area. The vegetation within the NGPE may not be cut, pruned, covered by
fill, removed or damaged without express written permission from the City of Renton. The right of entry
granted herein shall apply to the agents, representatives and employees of the owners or subsequent
owners of the underlying property.
(16) Deviation bv Consent of Declarant. Declarant hereby reserve the right to enter into
an agreement with the Owner of any Unit(without the consent of the Owner of any other Unit)to deviate from
the conditions, restrictions, limitations or agreements contained in this Declaration. Any deviation shall be
manifested in an agreement in writing and shall not constitute a waiver of any such condition; restriction,
limitation, or agreement as to the remaining Units located on the Properties; and the condition, restriction,
limitation or agreement waived by Declarant shall remain fully enforceable as to all other Units located in the
Properties.
(17) Timeshares. No operation of a timesharing, fraction-sharing, or similar program
whereby the right to exclusive use of the Unit rotates among participants in the program on a fixed or
floating time schedule over a period of years, is permitted. However, the Declarant may operate such a
program and may permit others to operate such a program in the Plat.
(18) Conversion of Carports or Garaqes. Conversion of any carport, garage, attic, or
other unfinished space, other than a basement, to finished space for use as an apartment or other integral
part of the living area on any Unit is prohibited.
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(19) Irri4ation Svstems. No sprinkler or irrigation systems or wells of any type may
draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface
waters within the Properties, except that Declarant and its designees shall have the exciusive right to draw
water from such sources and to reduce the level of such bodies of water, if and to the extent allowed by
the Permits.
(20) Burninq. No open-air burning or use of wood stoves is permitted, except in
compliance with Local Jurisdiction Ordinances. However, outdoor cooking facilities, such as barbeques,
are permissible subject to rules, regulations, and Local Jurisdiction Ordinances.
(21) Limitation on Storaqe of Vehicles — Temporarv Permits for RVs. Except as
hereinafter expressly provided,the Units, Common Areas and/or streets located on the Properties shall not be
used for the storage and/or overnight parking of any vehicle other than private family automobiles, trucks,
motorcycles and commercial vehicles operated by a person residing at the Unit (provided that such
commercial vehicles contain a single rear axle). Vehicles shall not be parked on a driveway or street in lieu
of being parked in an available space in a garage, except as otherwise provided by Rules established by
the Board. Boats, boat trailers, house trailers, campers, trucks, trucks with a camper, or other recreational
vehicles or similar object may not be stored and/or parked overnight on any part of the Properties, except as
specified herein, or as may be permitted by Rules established by the Board. No inoperable vehicles of any
kind shall be parked, stored, maintained, or constructed on any Unit or street unless stored in a garage.
Notwithstanding the foregoing, Owners who have guests visiting them intending to stay in a camper,trailer, or
other form of recreational vehicle, may secure written permission from the PIC for guests to park a vehicle on
the driveway of a Unit for a period of up to 72 hours, and not to exceed two weeks in any calendar year. The
privilege shall only exist, however, after the written permission has been obtained from the PIC or its
authorized representative to park at the Unit. An Owner that stores a recreation vehicle off-site may park the
vehicle on the driveway of a Unit for 48 hours for the purpose of preparing for departure or upon return, to
facilitate preparation and return from travel.
(22) Chanqin4 Unit Contours and Draina4e; Subdivisions. The surFace grade or
elevation of the various Units shall not be substantially altered or changed in any manner which would
affect the relationship of such Unit with other Units, or which would result in materially obstructing the view
from any other Unit, or which would otherwise produce an effect out of harmony with the general
development of the immediate area in which said Unit is located. Whether or not such alteration or change
in the elevation or grade of any Unit would be prohibited shall be determined by the Declarant during the
Class "B" Control Period in its sole and uncontrolled discretion. No further subdivision of any Unit without
resubmitting for formal plat procedure is allowed. The sale or lease of less than a whole Unit in the Plat is
expressly prohibited.
(23) Garbaqe Disposal. The Owners of the Units shall ensure that no garbage can or
other receptacle will be visible from any place outside the residence except on collection day.
(24) Prohibited Materials. In order to protect the environment, sensitive areas and
water quality precautions must be taken with the storm drainage system on site. The following materials
shall not be allowed to enter any surFace or subsurface part of the public and/or private drainage system.
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(i) Petroleum products including, but not limited to, oil, gasoline, grease, fuel
oii and heating oil.
(ii) Trash and/or debris.
(iii) Animal waste.
(iv) Chemicals and/or paint.
(v) Steam cleaning waste.
(vi) Washing uncured concrete for cleaning and/or finishing purposes or to
expose aggregate.
(vii) Laundry wastes or other soaps.
(viii) Pesticides, herbicides, or fertilizers.
(ix) Sewerage.
(x) Heated water.
(xi) Chlorinated water or chlorine.
(xii) Degreasers and/or solvents.
(xiii) Bark or other fibrous material.
(xiv) Antifreeze and/or other automotive products.
(xv) Lawn clippings, leaves or branches.
(xvi) Animal carcasses.
(xvii) Silt.
(xviii) Acids or alkalis.
(xix) Recreation vehicle wastes.
(xx) Dyes, unless prior permission has been granted by the Local Jurisdiction.
(xxi) Construction materials.
Any Owner found to not be in compliance with the use, handling or storage of this item shall immediately
remove and remedy the matter, upon written notice of the Association or the Local Jurisdiction.
(25) Dav Care Facilities for Children. An Owner may operate a licensed child day care
business in a Unit, if approved by the Board. Such approval may only be granted, in the sole discretion of
the Board, if the Owner can establish that: 1) all applicable governmental zoning and land use
classifications lawfully permit such usage, 2) the business and Owner are licensed to operate such a day
care business by the governmental authorities with jurisdiction over such operation, 3) the day care
business will be operated only between the hours of 7 a.m. and 6 p.m. and only on Monday through
Friday, 4) no more than (4) children, in addition to those children in the Owner's immediate family, are
enrolled in either a part or full-time capacity in such day care program, 5) the Owner of the Unit operating
such day care facility will fully oversee, restrict and supervise all children enroiled and will limit such
activities strictly within the confines of their Unit, 6) the Owner of the Unit indemnifies and holds the
Declarant, the Board and the Association fully harmless from any and ail liability and causes of action of
whatever kind arising by virtue of the Owner's operation of a day care, 7) prior to commencing such
business operations and continuing for all times the business operates, the Owner of the Unit makes the
Association an additional insured in a policy of liability insurance in an amount not less than
$1,000,000.00, and 8) such day care operation does not interfere or otherwise violate any other provisions
of this Declaration, including, but not necessarily limited to vehicle parking and signage restrictions. The
Declarant, the Board, and the Association shall not be deemed to be a partner or joint venturer, nor shall
be deemed to hold an interest in such business operation, because permission to operate such a day care
business was given by the Board.
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(26) Storaqe Sheds. Ali storage sheds and/or outbuildings require prior PIC approval
of construction materials, location, design, and overall aesthetic appearance. All sheds or outbuildings
need to be of"stick-built"construction and shall match the appearance of the main dwelling.
(27) Trees. Trees are those trees planted by Declarant, or at the Declarant's direction,
to comply with the requirements contained in the Plat. Trees may be located on Units near the public
right of ways that lie within and along the boundaries of the Plat. Trees that are located within Common
Areas are owned by the Association. A pre-existing Tree or a tree planted by the Declarant on a Unit at
the time it is purchased by an Owner is considered a Tree. Any tree located within twenty (20) feet of a
public right of way (whether such right of way is located within or outside the Plat), shall be presumed to
be a Tree subject to the restrictions contained herein, unless the Association, the Declarant or the Local
Jurisdiction confirm otherwise in writing to the Owner.
(1) Easement Granted. The Association, the Declarant (and any Builder or person who
has posted a bond related to the planting, maintenance or replacement of Trees with any government
jurisdiction, and who has agreed to carry out the Declarant's duties as they pertain to Trees—who for the
purpose of this Section may exercise the Declarant's rights related to Trees) are granted an easement to
place, care for and maintain Trees on each Unit on the Properties, in locations adjacent to the public right
of ways and sidewalks, whether such public right of ways are located along the front, side or back
boundary of a Unit. The easement granted herein shall extend onto a Unit for a distance sufficient for a
Tree (of a variety approved by the Local Jurisdiction or its successor) to be planted, maintained and
pruned in manner consistent with good nursery practices. The Association and the Declarant are also
granted such temporary easements that are needed to reach the location of any Tree, across any Unit or
Common Areas on the Properties.
(2) Responsibilitv for Plantinq and Maintenance of Trees. The Declarant shall, in their
sole discretion (but consistent with the requirements of the Local Jurisdiction), plant the Trees in such
locations on the Units along the right of ways and in the Common Areas that the Declarant determines.
The Owners and the Association shall have primary responsibility for the maintenance of the Trees after
they are planted, unless such responsibility is assumed by the Local Jurisdiction. The division of
responsibility between the Owners, the Association and the Local Jurisdiction for different aspects of
maintenance of the Trees may be established by notations on the face of the Plat, or if there are no such
notations, by rule promulgated by the Board or ordinance adopted by the Local Jurisdiction. The Owners
and the Association shall provide such maintenance to the Trees that is appropriate, based upon good
nursery practices and requirements imposed by the Declarant or the Local Jurisdiction. The Owners and
the Association shall be prohibited from (1) voting to abandon or ceasing the maintenance of the Trees in
the right of way, or(2) removing or altering (other than appropriate pruning) the Trees without permission
of Declarant, until such date that the Declarant's performance and maintenance bonds posted with any
governmental jurisdiction related to the Trees is released and fully exonerated, without charge or
reduction, or upon the bonds'forfeiture.
(3) Remedies for Failure to Maintain Trees. In the event that any Owner and the
Association fail to maintain the Trees, a Declarant may elect to maintain the Trees and may charge the
Association and the Owners, as a special assessment, the cost of such maintenance. The special
assessment arising under this section shall be a lien on the Properties in favor of Declarant, which
Declarant may enforce(in place of the Association) in the manner described in the Declaration.
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In the alternative, Declarant may elect to charge any sums deducted from the DeclaranYs performance
bond as a special assessment against the Association and the Owners, impose the special assessment
as a lien on the Properties in favor of Declarant, and enforce such special assessment (in place of the
Association) in the manner described in the Declaration. This provision may not be amended without the
permission of Declarant, until the DeclaranYs performance and maintenance bonds posted with any
governmental jurisdiction related to the Trees are released and fuliy exonerated, without charge or
reduction, or such bonds are forfeited.
(4) Remedies Upon Removal or Alteration of Trees. In the event that an Owner removes
or alters inappropriately a Tree without written permission of a Declarant (until the DeclaranYs
performance and maintenance bonds are released or forfeited, and then the Association or the Local
Jurisdiction, if the Local Jurisdiction assumes responsibility for the Trees), the removal shall be a violation
of this Declaration and of RCW 64.12.030. Declarant, (until DeclaranYs performance and maintenance
bonds are released in full without claim, and then the Association or the Local Jurisdiction), may bring an
action to restrain the removal of any Tree, or for damages arising from such removal, including such
additional, treble damages and attorney's fees that are available under this Declaration or state law.
(5) Termination or Alteration of Restrictions on Removal of Trees. DeclaranYs rights and
duties described herein shall cease and automatically terminate upon (1) release in full, without claims, of
the DeclaranYs performance and maintenance bonds, (2) recovery of compensation by Declarant for all
sums deducted from the bond, or (3) a date six years from the date of any bond forfeiture, whichever
event occurs first. After Declarant's performance and maintenance bonds are released or forfeited, and
the Declarant has received the full exoneration of the bonds without claims, or compensation for any
payments made from the bonds, the Association may appiy to the Local Jurisdiction or its successor for
approval to terminate or alter the restrictions imposed upon the removal or alteration of Trees described in
this Section. Such application may be made if a majority of the Owners approve of the Association's
application for termination or alteration of the Tree restrictions. Upon written notification from the Local
Jurisdiction of the termination or alteration of the restrictions upon Trees contained herein, the Association
shall record a copy of the written notice in the Recorder's Office of the Local Jurisdiction in which the Plat
is located. Upon recordation of such notice, the provisions of this related to Trees shall terminate or be
amended in the manner described in the notice.
(28) Restrictions Upon Rentals. This Section applies to the renting or leasing of Units
(collectively, "renting" or "rental"), including all tenancies of any duration, all tenancies with options to
purchase, all tenancies with first rights of refusal, and all living arrangements in any way governed by the
provisions of RCW 59.12 or RCW 59.18, and shall also apply to any sublease of a Unit and the
assignment of any lease of a Unit. No Unit Owner may rent a Unit or any portion of a Unit without prior
written approval of the Board of the Association ("Rental Approval"). No rental of a Unit or any portion of
a Unit shall be valid or enforceable unless it complies with the provisions of this Section, and the written
approval of the rentat agreement by the Board is granted prior to occupancy of the Tenant. The Board
may, by a duly adopted rule, require that a fee be collected by the Association from the Owner as a
condition of such approval. The Board may bar completely or restrict the total number of Units rented
within the Properties for such reasons as the Board deems appropriate, including but not limited to
maintaining an owner-occupied residential environment(as applicable by law).
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(1) Definitions. The following definitions shall apply to this Section:
(a) "Occupant" means anyone who occupies any portion of a Unit as a
permanent residence or who stays overnight in any Unit more than fourteen (14) days in any calendar
month, or more than thirty(30)days any calendar year.
(b) "Related Party" means a person who has been certified in a written
document filed by an Owner with the Association to be the (1) parent, (2) parent in law, (3) sibling, (4)
sibling in law, (5) parent's sibling or(6) lineal descendant of the owner or(7)the lineal descendent of any
of the foregoing persons, (8) the domestic partner of an owner, as "domestic partner" is defined by RCW
26.60.020(1), or any amendment of successor to such statute, or if the statute is repealed, the definition
last contained in the statute before its repeal, (9)the officer, director or employee of any Owner which is a
corporation, (10) member or employee of any Owner that is a limited liability company, or (11) partner or
employee of any Owner that is a partnership.
(c) "Rental AgreemenY' shall mean any agreement, written or oral, related to the
renting or leasing of any Unit or portion of a Unit.
(d) "TenanY' means and includes a tenant, lessee, renter or other non-Owner
occupant of a Unit that is not occupied by its Owner. For the purposes of the declaration, the term Tenant
shall not include a Related Party.
(2) Rental Limitation. During the Class B Control Period, no Unit or portion of a Unit
may be rented by an Owner without the written permission of Declarant. After Declarant holds no
property subject to this Declaration or described in Exhibit A, and the Ciass B Control Period has ended,
the Board may determine the number of Units that may be rented at any one time, by adoption of a rule
setting the number of Units that may be rented. The Board may determine that no Units or portions of
Units may be rented. The restrictions contained in this section shall be known as the "Rental Limitation"
and shall be applicable by law.
(3) Procedure for Obtaininq Approval for Rentinq Unit. Owners interested in renting
their Unit or a portion thereof(after Declarant no longer has the sole right to approve rentals) shall submit
a written request for Rental Approval to the Board in such form as shall be reviewed and accepted by the
Board. Once Rental Approval has been granted by the Board, the Owner shall have ninety (90) days
within which to rent the Unit. In the event the Unit is not rented within the 90-day period, Rental Approval
shall automatically be revoked. Renting of a Unit within ninety (90) days of the granting of Rental
Approva� shall be deemed to occur if the Unit is occupied by a Tenant within the 90-day period, or if a
written rental agreement is signed within the 90-day period and the term commences within 30 days of
the signing of the rental agreement.
(4) Waitinp List. Request for Rental Approval shail be processed and approved in
the order received by the Board. Once the number of rental Units reaches the Rental Limitation, then an
Owner who submits a written request for Rental Approval shall go on a Waiting List. Each Owner who
has rented his/her Unit shall promptiy give written notice to the Neighborhood Association of any rental
agreement termination and the intent by the Owner to no longer rent the Unit. The Owner in the next
available position on the Waiting List shall be notified and provided a reasonable opportunity to rent
his/her Unit in accordance with the terms and conditions of this Article. If that Owner fails to rent his/her
Unit within such reasonable period of time as determined by the Board (or otherwise advises the Board
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of his/her waiver of a right to then seek to rent his/her Unit), then that Owner's name shall be placed at
the bottom of the Waiting List, and the opportunity to rent shall then be offered to the next highest person
on the Waiting List. All provisions herein outlined shall be applicable by law.
(5) Approved Rental Unit. A Unit shall be an Approved Rental Unit if and only if the
Owner and the Tenant have strictly complied with the terms and conditions of this Section. A Unit shall
remain an Approved Rental Unit in the event the Owner extends or renews an existing rental agreement
or rents the Unit to a new renter in strict accordance with this Article. However, in the event an Approved
Rental Unit(1) is subsequently occupied by an Owner or persons not bound by a written rentai agreement
in strict accordance with this Article for a period of thirty (30) days or more, or (2) is the subject of a
transfer other than an exempt transfer(as defined below), made by the Owner to a new Owner, the Unit
shall be deemed to be an Owner Occupied Unit. Upon either occurrence, any previous rental approval
shall be deemed revoked, and the Owner shall thereafter be required to reapply to the Board for Rental
Approval in accordance with this Article. For the purposes of this Article, exempt transfers are transfers
that occur (1) as a result of a gift by the Owner to a Related Party or(2) by a testamentary transfer from
an Owner to any person.
(6) Hardship Exception. The Board shall have the right, in the exercise of
reasonable discretion, to permit exceptions to the Rental Limitation in connection with hardship cases. In
other words, where the Board determines that a hardship exists due to circumstances beyond the control
of the Owner, and that the Owner would suffer serious harm by virtue of the rental limitations, and where
the Board further determines that a variance from the rental limitations contained herein would not
detrimentally affect the other Owners or the quality of the single-family, owner-occupied neighborhood,
then the Board may, in its discretion, grant an Owner a waiver of the Rental Limitation for such a
temporary period as to be determined by the Board. In addition, the Board shall have the authority,
notwithstanding the Rental Limitation,to consent to the Rental of a Unit, title to which is acquired following
a default in a mortgage or Deed of Trust.
(7) Copies of Rental Aqreement Provided to Association. In addition to the
requirement that the Association approve the Rental Agreement prior to execution of the Rental
Agreement, copies of all Rental Agreements, and any amendments thereto, as executed by the Owner
and the Tenant, shali be delivered to the Association before the tenancy commences.
(8) Deliverv of Governinq Documents to Tenants. Prior to signing any Rental
Agreement, it shall be the responsibility of the Owner to deliver to the Tenant a copy of all Governing
Documents, i.e. this Declaration, the Bylaws, and the Rules and Regulations of the Association. If it is
determined that the Owner has failed to provide copies of such documents to the Tenant, the Association
may furnish a copy of the documents to the Tenant and charge the Owner an amount to be determined by
the Board, which copying charge shall be collectible as a special assessment against the Unit and its
Owner.
(9) Violation of Governinq Documents bv Tenants. The Association shall have and
may exercise the same rights of enforcement and remedies for breach of the Governing Documents
against a Tenant, as it has against an Owner, including all such rights and remedies as are otherwise
provided in the Governing Documents or by applicable Washington law. In addition, if any Tenant or
Occupant of a Unit violates or permits the violation by his guests and invitees of any provisions of the
Governing Documents, the Board may give notice to the Owner to immediately cease such violations. If
the violation is thereafter repeated, the Board shall have the authority, on behalf and at the expense of
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the Owner, to terminate the tenancy and evict the Tenant (and all occupants) if the Owner fails to do so
after Notice from the Board and an opportunity by the Owner to be heard. The Board shall have no
liability to an Owner or Tenant for any eviction made in good faith. The Association shali have a lien
against title to the Owner's Unit for any costs incurred by it in connection with such eviction, including
reasonabie attorneys' fees, which may be collected and foreclosed by the Association in the same
manner as assessments are collected and foreclosed.
(10) Rules and Reaulations. The Board may adopt Rules and Regulations in
furtherance of the administration of this Article, which Rules and Regulations shall be effective upon
pubiication to the Association and its members.
(11) Reauirements of Rental Aqreement. All Rental Agreements shall be in writing.
Any Rental Agreement must provide that its tenants shall be subject in ali respects to the provisions of
this Declaration and the Bylaws and rules and regulations of the Association and that any failure by the
tenant to comply with the terms of such documents shail be a default under the Rental Agreement.
(12) Rent Paid to Association. If a Unit is rented by its Owner, the Board may collect,
and the Tenant shall pay over to the Board, so much of the rent for such Unit as is required to pay any
amounts due from the owner or the Tenant to the Association hereunder, plus interest, costs, litigation
expenses and attorney's fees if the same are in default over thirty (30) days. The Tenant shaii not have
the right to question payment to the Board, and such payment will discharge the TenanYs duty of payment
to the Owner for rent to the extent such rent is paid to the Association, but will not discharge the liability of
the Owner or purchaser of the Unit under this Declaration for Assessments and charges, or operate as
approval of the Rental Agreement. The Board shall not exercise this power where a receiver has been
appointed with respect to the Unit or its Owner, nor in derogation of any right which a Mortgagee of such
Unit may have with respect to such rents.
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EXHIBIT C
Rules of Arbitration
1. Claimant shall submit a Claim to arbitration under these Rules by giving written notice to
all other Parties stating plainly and concisely the nature of the Claim, the remedy sought and Claimant's
submission of the Claim to arbitration("Arbitration Notice").
2. The Parties shall select arbitrators ("Party Appointed Arbitrators") as follows: all the
Claimants shall agree upon one Party Appointed Arbitrator, and all the Respondents shall agree upon one
Party Appointed Arbitrator. The Party Appointed Arbitrators shall, by agreement, select one neutral
arbitrator("Neutral")so that the total arbitration panel ("Panel") has three arbitrators.
3. If the Panel is not selected under Rule 2 within 45 days from the date of the Arbitration
Notice, any party may notify the nearest chapter of The Community Associations Institute, for any dispute
arising under the Governing Documents, or JAMS, or such other independent body providing arbitration
services, for any dispute relating to the design or construction of improvements at the Properties, which
shall appoint one Neutral ("Appointed Neutral"), notifying the Appointed Neutral and all Parties in writing of
such appointment. If either agency is unavailable or unable to provide such arbitration services, the
Association or any Party may apply to any court of competent jurisdiction to appoint an arbitrator in
accordance with Washington law. The Appointed Neutral shall thereafter be the sole arbitrator and any
Party Appointed Arbitrators or their designees shall have no further duties involving the arbitration
proceedings.
4. No person may serve as a Neutral in any arbitration in which that person has any financial
or personal interest in the result of the arbitration. Any person designated as a Neutral or Appointed
Neutral shall immediately disclose in writing to all Parties any circumstance likely to affect impartiality,
including any bias or financiai or personal interest in the outcome of the arbitration ("Bias Disclosure"). If
any Party objects to the service of any Neutral or Appointed Neutral after receipt of that Neutral's Bias
Disclosure, such Neutral or Appointed Neutral shall be replaced in the same manner in which that Neutral
or Appointed Neutral was selected.
5. The Appointed Neutral or Neutral, as the case may be ("Arbitrator") shall fix the date, time
and place for the hearing. The place of the hearing shall be within the Properties unless otherwise agreed
by the Parties. In fixing the date of the hearing, or in continuing a hearing, the Arbitrator shail take into
consideration the amount of time reasonably required to determine ClaimanYs damages accurately.
6. Any Party may be represented by an attorney or other authorized representative
throughout the arbitration proceedings. In the event the Respondent fails to participate in the arbitration
proceeding, the Arbitrator may not enter an Award by default, but shall hear Claimant's case and decide
accordingly.
7. All persons who, in the judgment of the Arbitrator, have a direct interest in the arbitration
are entitled to attend hearings. The Arbitrator shall determine any relevant legal issues, including whether
all indispensable parties are Bound Parties or whether the claim is barred by the statute of limitations.
8. There shall be no stenographic record of the proceedings.
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9� The hearing shall be conducted in whatever manner will, in the Arbitrator's judgment, most
fairly and expeditiously permit the full presentation of the evidence and arguments of the Parties. The
Arbitrator may issue such orders as it deems necessary to safeguard rights of the Parties in the dispute
without prejudice to the rights of the Parties or the final determination of the dispute.
10. If the Arbitrator decides that it has insufficient expertise to determine a relevant issue
raised during arbitration, the Arbitrator may retain the services of an independent expert who will assist the
Arbitrator in making the necessary determination. The scope of such professional's assistance shall be
determined by the Arbitrator in the Arbitrator's discretion. Such independent professional must not have
any bias or financial or personal interest in the outcome of the arbitration, and shall immediately notify the
Parties of any such bias or interest by delivering a Bias Disclosure to the Parties. If any Party objects to
the service of any professional after receipt of a Bias Disclosure, such professional shall be replaced by
another independent licensed professional selected by the Arbitrator.
11. No formal discovery shall be conducted in the absence of express written agreement
among all the Parties. The only evidence to be presented at the hearing shall be that which is disclosed to
all Parties at least 30 days prior to the hearing; provided, no Party shall deliberately withho►d or refuse to
disclose any evidence which is relevant and material to the Claim, and is not otherwise privileged. The
Parties may offer such evidence as is relevant and material to the Claim, and shall produce such
additional evidence as the Arbitrator may deem necessary to an understanding and determination of the
Claim. The Arbitrator shall be the sole judge of the relevance and materiality of any evidence offered, and
conformity to the legal rules of evidence shall not be necessary. The Arbitrator shall be authorized, but
not required, to administer oaths to witnesses.
12. The Arbitrator shalf declare the hearings closed when satisfied the record is complete.
13. Unless requested by the Arbitrator, there will be no post-hearing briefs.
14� The Award shall be rendered immediately following the cfose of the hearing, if possible,
and no later than 14 days from the close of the hearing, unless otherwise agreed by the Parties. The
Award shall be in writing, shall be signed by the Arbitrator and acknowledged before a notary public. If the
Arbitrator believes an opinion is necessary, it shall be in summary form.
15. If there is more than one arbitrator, all decisions of the Panel and the Award shall be by
majority vote.
16. Each Party agrees to accept as legal delivery of the Award the deposit of a true copy in
the mail addressed to that Party or its attorney at the address communicated to the Arbitrator at the
hearing.
Page 59 of 59
Talbot and SSth Homeowners Association
Declarations of Covenants, Conditions and Restrictions