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HomeMy WebLinkAboutL_Forest_Terrace_CCRs_20220317_v2.pdf{04399062.DOC;4 }- 1 - WHEN RECORDED, RETURN TO: Cairncross & Hempelmann, P.S. 524 Second Ave., Suite 500 Seattle, Washington 98104 Attn: Randall P. Olsen Document Title Declaration of Covenants, Conditions, and Restrictions for Forest Terrace Reference Number of Related Document ___________________ (Map) Grantor Pulte Homes of Washington, Inc., a Michigan corporation Grantees Forest Terrace, a plat community Forest Terrace Homeowners Association, a Washington nonprofit corporation Pulte Homes of Washington, Inc. Abbreviated Legal Description A portion of the NE 1/4 of the NE 1/4 Section 4, Township 23 N., Range 5 E., W.M., Renton, King County, Washington Tax Parcel Numbers 0423059142 {04399062.DOC;4 }- 2 - DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR FOREST TERRACE This Declaration of Covenants, Conditions, and Restrictions for Forest Terrace (“Declaration”) is made as of the date of signing shown below, by Pulte Homes of Washington, Inc., a Michigan corporation (“Declarant”), the owner of certain real property situated in King County, Washington, as such property is more specifically described on Exhibit A, attached hereto and incorporated herein (“Real Property”). RECITALS Declarant desires to develop the Real Property as a plat community to be known as Forest Terrace (“Plat Community”). Declarant also desires to create common elements and facilities for the benefit of the Plat Community and to provide for the preservation of the property values in the Plat Community. Where a term is defined in Chapter 64.90 of the Revised Coded of Washington (“RCW”), known as the Washington Uniform Common Interest Ownership Act (“Act”), and is not otherwise defined herein, such term will have the meaning given to it by the Act. This Declaration establishes a plan for the private ownership of Units (defined below) and the buildings constructed thereon, for the dedication of certain areas to the public, and for the beneficial ownership through a nonprofit corporation of certain other land and related easements, hereafter defined and referred to as the “Common Elements.” The nonprofit corporation shall be delegated and assigned the duties and powers of maintaining and administering the Common Elements, administering and enforcing these covenants, conditions, and restrictions, and collecting and disbursing the assessments and charges hereinafter created. NOW, THEREFORE, Declarant hereby covenants, agrees, and declares that all of the Real Property, as defined herein, and the buildings and structures hereafter constructed thereon are, and will be, held, sold, and conveyed subject to and burdened by the following covenants, conditions, restrictions, and easements, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the Plat Community for the benefit of the Unit Owners thereof, their heirs, successors, grantees, and assigns. All provisions of this Declaration and the Act shall be binding upon all parties having or acquiring any right, title, or interest in the Real Property or any part thereof, and shall inure to the benefit of the Unit Owners thereof and to the benefit of the Association and are intended to be and shall in all respects be regarded as covenants running with the land. ARTICLE 1. DEFINITIONS Section 1.1 “Act” means the Washington Uniform Common Interest Ownership Act, Chapter 64.90 RCW. Section 1.2 “Association” means the Forest Terrace Homeowners Association, a Washington nonprofit corporation, and its successors and assigns. Section 1.3 “Association Action” means a written corporate action of the Association in the form of either a bylaw or resolution duly passed by either the Board or the Unit Owners. Section 1.4 “Board” or “Board of Directors” means the board of directors of the Association with primary authority to manage the affairs of the Association. {04399062.DOC;4 }- 3 - Section 1.5 “Common Elements” means real estate other than a Unit within the Plat Community owned and/or maintained by the Association. As of the date of this Declaration, the Common Elements consist of all Common Elements depicted on the Map, including without limitation, the roads, sidewalks and recreational areas, all as identified and/or illustrated on the Map, recorded in the real property records of King County. Section 1.6 “Common Expenses” means any expense of the Association, including allocations to reserves, as provided for in the Act and this Declaration. Section 1.7 “Declarant” means the entity described on the first page of this Declaration and its respective successors and assigns. Nothing contained herein shall be deemed or construed by the Association or by any third party to create the relationship of principal and agent, or a partnership, or a joint venture, or any association between or among any of the signatories hereto. Section 1.8 “Declarant Control Period” means the period of time from the date of recording of this Declaration until the earlier of: (a) sixty (60) days after conveyance of seventy-five percent (75%) of the Units that may be created to Unit Owners other than Declarant; (b) two (2) years after the last conveyance of a Unit, except to a dealer; (c) two (2) years after any right to add new Units was last exercised; or (d) the day Declarant, after giving notice in a record to Unit Owners, records an amendment to this Declaration voluntarily surrendering all rights to appoint and remove officers and Board members. A partial delegation of authority by Declarant of any of its management duties described in the Declaration shall not terminate the Declarant Control Period. Section 1.9 “Declaration” means this instrument, as it may be supplemented or amended. Section 1.10 “Development Right” means those rights of Declarant reserved in Article 13 and elsewhere in the Declaration. Section 1.11 “Governing Documents” means this Declaration, the Map, the articles of incorporation, bylaws and rules and regulations of the Association, or any other written instrument by which the Association has the authority to exercise any of the powers to manage, maintain, or otherwise affect the Plat Community, as any of the foregoing may be amended from time to time Section 1.12 “Map” means the final plat of Forest Terrace recorded under King County recording no. _________________________. Section 1.13 “Mortgagee” means the holder of a security interest on a Unit. Section 1.14 “Real Property” means that certain real property legally described on Exhibit A attached hereto, and such additions thereto as may be brought within the terms and conditions hereof by an appropriate recording. Section 1.15 “Reserve Account” has the meaning set forth in Section 3.12 of this Declaration. Section 1.16 “Reserve Component” means a physical component of the Plat Community which the Association is obligated to maintain, repair or replace, which has an estimated useful life of less than thirty (30) years, and for which the cost of such maintenance, repair or replacement is infrequent, significant and impractical to include in an annual budget. {04399062.DOC;4 }- 4 - Section 1.17 “Reserve Study Professional” means an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with the Act. Section 1.18 “Significant Assets” means that the current replacement value of the major Reserve Components is seventy-five percent (75%) or more of the gross budget of the Association, excluding the Association’s Reserve Account funds. Section 1.19 “Structure” includes any building, fence, wall, driveway, walkway, patio, garage, storage shed, carport, mailbox, basketball hoop, play equipment, climbing apparatus, swimming pool, rockery, dog run or the like. Section 1.20 “Tract” means any legally segmented and alienable portion of the Real Property created through subdivision or any other legal process for dividing land and subjected to this Declaration by an appropriate recording, with the exception of Units and Common Elements. Section 1.21 “Unit” means any legally segmented and alienable portion of the Real Property created through subdivision or any other legal process for dividing land and subjected to this Declaration by an appropriate recording, with the exception of Tracts and Common Elements. As indicated on the Map, the Plat Community shall initially include twenty-five (25) Units but may include up to a maximum of 100 Units. Section 1.22 “Unit Owner” or “Owner” means the record owner (whether one or more persons or entities) of a fee interest in any Unit, including the Declarant but excluding Mortgagees or other persons or entities having such interest merely as security for the performance of any obligation. Purchasers or assignees under recorded real estate contracts shall be deemed Unit Owners as against their respective sellers or assignors. ARTICLE 2. FOREST TERRACE HOMEOWNERS ASSOCIATION Section 2.1 Description of Association. The Association is a nonprofit corporation organized and existing under the laws of the State of Washington charged with the duties and vested with the powers prescribed by law and set forth in the Governing Documents, as they may be amended from time to time; provided, however, that no Governing Documents of the Association other than this Declaration shall for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. The Association shall have a perpetual existence. Upon dissolution or final winding up of the Association entity under the laws of the State of Washington, all of its assets remaining after payment to creditors will be distributed or sold, and the sales proceeds distributed, to the members of the Association entity in accordance with the Articles of Incorporation, Bylaws, and provisions of RCW 24.03A and the Act. In the case of any conflict between the provisions of RCW 24.03A and the Act, the Act shall control. The Unit Owners are responsible for providing that the Association continues to be a functioning legal entity. Section 2.2 Association Board. During the Declarant Control Period, the Declarant, or persons designated by Declarant, shall have the power to appoint or remove any member of the Board. Notwithstanding the foregoing, no later than sixty (60) days after conveyance of twenty-five percent (25%) of the Units that may be created to Unit Owners other than Declarant, at least one (1) member and not less than twenty-five percent (25%) of the members of the Board must be elected by Unit Owners {04399062.DOC;4 }- 5 - other than Declarant. Not later than sixty (60) days after conveyance of fifty percent (50%) of the Units that may be created to Unit Owners other than Declarant, not less than thirty-three and one-third percent (33.33%) of the members of the Board must be elected by Unit Owners other than Declarant. Until such members are elected and take office, the existing Board may continue to act on behalf of the Association. Within thirty (30) days after the termination of the Declarant Control Period, the Board must schedule a transition meeting and provide notice to the Unit Owners in accordance with RCW 64.90.445(1)(c). At the transition meeting, the Board elected by the Unit Owners must be elected in accordance with RCW 64.90.410(2). Within thirty (30) days after the transition meeting, Declarant shall deliver the materials required by RCW 64.90.420 to the Association. Within sixty (60) days after the transition meeting, the Board shall retain the services of a certified public accountant to audit the records of the Association as of the date of the transition meeting in accordance with generally accepted accounting standards, unless a majority of the members elects to waive such audit. Section 2.3 Votes Appurtenant to Units. Every Unit Owner shall be a member of the Association. The Unit Owner(s) of a Unit shall be entitled to cast one (1) vote in the Association for each Unit owned. A vote shall be appurtenant to and held and owned in the same manner as the beneficial fee interest in the Unit to which it relates. A vote shall not be separated from ownership of the Unit. Unit Owner voting shall be governed by RCW 64.90.455, as it may be amended. Section 2.4 Unit Owner’s Compliance. By acceptance of a deed to a Unit, recording of a real estate contract conveying title to a Unit, or any other means of acquisition of an ownership interest, the Unit Owner thereof covenants and agrees, on behalf of himself and his or her heirs, successors, and assigns, to observe and comply with the terms of the Map, this Declaration, the Governing Documents of the Association, and all rules and regulations duly promulgated pursuant to Association Action. Section 2.5 Bylaws, Rules and Regulations. The Board, on behalf of the Association, shall have the power to adopt, modify, and amend rules and regulations governing the use of the Real Property, provided that such rules and regulations shall not be inconsistent with this Declaration and during the Declarant Control Period, must be approved in writing by the Declarant. The rules and regulations shall apply uniformly to all Unit Owners, except as specifically provided herein. The Board shall have the power to enforce the rules and regulations on behalf of the Association and may prescribe penalties for the violation of such rules and regulations, including, but not limited to, suspension of the right to use the Common Elements or portions thereof. The Board must, before adopting, amending or repealing any rule, give all Unit Owners notice of: (a) its intention to adopt, amend or repeal a rule and provide the text of the rule or the proposed change; and (b) a date on which the Board will act on the proposed rule or amendment after considering comments from Unit Owners. Following adoption, amendment or repeal of a rule, the Association must give notice to the Unit Owners of its action and provide a copy of any new or revised rule. A copy of the rules and regulations then in force shall be retained by the Secretary of the Association. The Declarant, on behalf of the Board, may adopt the initial Bylaws and rules and regulations of the Association. Section 2.6 Right of Entry for Inspections, Maintenance, Repairs, Emergencies or Improvements. The Association, acting through its agents and employees, shall have the right to have access to each Unit from time to time as may reasonably be necessary for inspection, maintenance, repair or replacement or improvement of any of the Common Elements accessible therefrom, or for making repairs or remedying conditions, including removing dangerous structures, on a Unit as deemed necessary by the Board, in the Board’s reasonable discretion, to prevent damage to the Common Elements or to other Units or improvements thereon, or for any emergency situations. The cost of work necessary to remedy such conditions caused by or refused to be corrected by the Unit Owner shall be a special {04399062.DOC;4 }- 6 - assessment on such Unit Owner and his or her Unit only. The Association’s right provided in this section shall be exercisable after seven (7) days’ notice to the Unit Owner and an opportunity to be heard if requested by the Unit Owner, and approval by a two-thirds (2/3) majority vote by the Board. The foregoing notice shall not be required in the event of an emergency situation, as determined by the Board in its reasonable discretion. Section 2.7 Implied Rights. The Association may exercise any right or privilege given to it expressly by this Declaration or the bylaws or which may be reasonably implied from, or reasonably necessary to effectuate, any such right or privilege. Section 2.8 Special Declarant Rights. Subject to the Act, Declarant shall have the right to do the following for a period of ten (10) years following the sale of the first Unit within the Plat Community by Declarant: (a) Complete any improvements indicated on the Map or described in this Declaration or the public offering statement pursuant to RCW 64.90.610(1)(h); (b) Exercise any Development Right; (c) Maintain sales offices, management offices, signs advertising the Plat Community, and models; (d) Use easements through the Common Elements for the purpose of making improvements within the Plat Community or within real property that may be added to the Plat Community; (e) Make the Plat Community subject to a master association; (f) Merge or consolidate a common interest community with another common interest community of the same form of ownership; (g) Appoint or remove any officer or board member of the association or any master association or to veto or approve a proposed action of any board or association; (h) Control any construction, design review, or aesthetic standards committee or process until Declarant no longer owns any Units; (i) Attend meetings of the Unit Owners and, except during an executive session, the Board; and (j) Have access to the records of the Association to the same extent as a Unit Owner (collectively, the “Special Declarant Rights”). Except as otherwise provided in this Declaration, all Special Declarant Rights shall expire ten (10) years after the conveyance of the first Unit in the Plat Community; provided, that Declarant may voluntarily terminate any and all such rights at any time by recording an amendment to the Declaration, which amendment specifies which rights are thereby terminated. {04399062.DOC;4 }- 7 - Section 2.9 Association Property. The Association, through action of its Board, may acquire, hold and dispose of tangible and intangible personal property and real property. ARTICLE 3. ASSOCIATION BUDGET, ASSESSMENTS, AND LIENS Section 3.1 Unit Owner’s Covenants to Pay Assessments. By acquisition of any ownership interest in a Unit, the Unit Owner thereof covenants and agrees thereby, on behalf of himself or herself and his or her heirs, successors, and assigns, to pay the Association, in advance, all general and special assessments levied as provided herein. Assessments for Common Expenses and those specially allocated expenses must commence on all Units that have been created upon the conveyance of the first Unit in the Plat Community; however, Declarant may delay commencement of assessments for some or all Common Expenses or specially allocated expenses, in which event Declarant must pay all of the Common Expenses or specially allocated expenses that have been delayed. In the event that Units may be added pursuant to reserved development rights, Declarant may delay commencement of assessments for such Units in the same manner. Section 3.2 Specially Allocated Expenses. Pursuant to RCW 64.90.480, the Association shall specially allocate certain expenses as follows: (a) Expenses benefiting fewer than all of the Units, or the Unit Owners of such benefited Units exclusively, must be assessed against the Units benefited, with the expenses allocated evenly between the benefited Units. (b) Assessments to pay a judgment against the Association may be made only against the Units in the Plat Community at the time the judgment was entered, in proportion to their Common Expense liabilities. (c) To the extent that any expense of the Association is caused by the negligence, gross negligence or willful misconduct of any Unit Owner or that Unit Owner’s tenant, guest, invitee, or occupant, the Association may assess that expense against the Unit Owner’s Unit after notice and an opportunity to be heard, to the extent of the Association’s deductible and any expenses not covered under an insurance policy issued to the Association. (d) In the event of a loss or damage to a Unit that would be covered by the Association’s property insurance policy, excluding policies for earthquake, flood, or similar losses that have higher than standard deductibles, but that is within the deductible under that policy, the Association may assess the amount of the loss up to the deductible against that Unit. This subsection does not prevent a Unit Owner from asserting a claim against another person for the amount assessed if that other person would be liable for the damages under general legal principles. Section 3.3 Association Budget. The Association shall prepare, or cause the preparation of, an operating budget for the Association at least annually, in accordance with generally accepted accounting principles. The Declarant shall adopt the initial operating budget for the Association. The operating budget shall set forth all sums required by the Association, as estimated by the Association, to meet its annual costs and expenses, including, but not limited to, all management and administration costs, operating and maintenance expenses of the Common Elements, and services furnished to or in connection with the Common Elements, including the amount of all taxes and assessments levied against, and the cost of liability, property and other insurance on, the Common Elements, and including charges for any services furnished by or to the Association; the cost of utilities and other services; and the cost of {04399062.DOC;4 }- 8 - funding all reserves established by the Association. The funds required to meet the Association’s annual expenses shall be raised from a general assessment against each Unit Owner as provided hereafter. After adoption of the operating budget, the Association may revise the operating budget at any time and from time to time, in accordance with the procedures set forth in Subsection 3.3(a) below, as it deems necessary or advisable in order to take into account and defray additional costs and expenses of the Association. (a) Adoption of Budget. Prior to adopting the proposed regular budget, the Board shall submit the proposed Common Element Budget to the Common Element Committee in accordance with Section 7.3 below. Within thirty (30) days after adoption by the Board of any proposed regular or special budget of the Association, the Board shall provide a copy of the proposed budget to all Unit Owners and set a date for a meeting of the Unit Owners to consider ratification of the budget not less than fourteen (14) nor more than fifty (50) days after providing the budget. Unless at that meeting the Unit Owners to which a majority of the votes in the Association are allocated reject the budget, in person or by proxy, the budget and the assessments against the Units included in the budget are ratified, whether or not a quorum is present. In the event the proposed budget is rejected, or the required notice is not given, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify a subsequent budget proposed by the Board. (b) Budget Summary. As part of the summary of the budget provided to all Unit Owners, the Board shall disclose to the Unit Owners: (i) The projected income to the Association by category; (ii) The projected Common Expenses and those specially allocated expenses that are subject to being budgeted, both by category; (iii) The amount of assessments per unit and the date the assessments are due; (iv) The current amount of regular assessments budgeted for contribution to the Reserve Account; (v) A statement of whether the Association has a Reserve Study that meets the requirements of RCW 64.90.550 and, if so, the extent to which the budget meets or deviates from the recommendations of the reserve study; and (vi) The current deficiency or surplus in reserve funding expressed on a per Unit basis. Section 3.4 Levy of General Assessment. In order to meet the costs and expenses projected in its operating budget, the Association shall determine and levy in advance on every Unit a general assessment, which shall become effective only after the Board follows the procedure for ratification of a budget described in Subsection 3.3(a) and the Unit Owners do not reject the proposed assessment. The amount of each Unit’s general assessment shall be the amount of the Association’s operating budget divided by the sum of the number of Units. The omission by the Association, before the expiration of any assessment period, to fix the amount of the general assessment hereunder for that or the next period, shall not be deemed a waiver or modification in any respect of the provisions of this article or a release by any Unit Owner from the obligation to pay the general assessment, or any installment thereof, for that or any subsequent assessment period, but the general assessment fixed for the preceding period shall continue {04399062.DOC;4 }- 9 - until a new assessment is fixed. Upon any revision by the Association of the operating budget during the assessment period for which such budget was prepared, the Association shall, if necessary, revise the general assessment levied against Units and give notice to each Unit Owner in accordance with Subsection 3.3(a). Section 3.5 Payment of Assessment. Installments of general assessments may be collected on a monthly, quarterly, semi-annual, or annual basis, as determined by the Board and ratified by the Unit Owners in accordance with Subsection 3.3(a). Unless the Board otherwise provides, one-twelfth (1/12) of the General Assessment shall be due in advance on the first day of each calendar month. Any Unit Owner may prepay one or more installments on any assessment levied by the Association without penalty. Section 3.6 Nondiscriminatory Assessment. Except as otherwise specifically provided herein, no assessment shall be made at any time which may unreasonably discriminate against any particular Unit Owner or group of Unit Owners in favor of other Unit Owners. Section 3.7 Commencement of Assessments. Liability of a Unit Owner for assessments shall commence on the date upon which any instrument of transfer to such Unit Owner becomes operative (such as the date of a deed or the date of a recorded real estate contract for the sale of any Unit) or, if earlier, the commencement date of Unit Owner’s occupancy of such Unit. Upon the initial closing on any Unit from Declarant, the buyer thereof shall pay a one-time assessment in the amount of Five Hundred Dollars ($500.00). This amount shall be in addition to any assessment established by the Association, and shall be paid by all buyers, including builders. Section 3.8 Certificates of Assessment Payment. Upon request, the Board shall furnish written certificates certifying the extent to which assessment payments on a specified Unit are paid and current to the date stated therein. A reasonable charge may be made by the Association for the issuance of such certificate. Section 3.9 Special Assessments. In addition to the general assessments authorized by this article, the Association may, by following the same procedure for ratification of a budget set forth in Subsection 3.3(a), levy a special assessment or assessments at any time, applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, inordinate repair, or replacement of a capital improvement located upon or forming a part of the Common Elements, including necessary fixtures and personal property related thereto, or for such other purpose as the Association may consider appropriate. The due dates of any special assessment payments shall be fixed by the Association Action authorizing such special assessment. Section 3.10 Effect of Nonpayment of Assessment. If any assessment payment is not made in full within thirty (30) days after it was first due and payable, the unpaid amounts shall constitute a lien against the Unit assessed and shall bear interest from such due date at a rate set by the Board in its rules and regulations which shall not exceed the highest rate then permitted by law. By acceptance of a deed to a Unit, recording of a real estate contract therefore, or any other means of acquisition of an ownership interest, and whether or not it shall be so expressed in any such deed or other instrument, each Unit Owner shall be deemed to grant thereby to the Association, its agents and employees, and to Declarant during the Declarant Control Period, the right and power to bring all actions against such Unit Owner personally for the collection of such assessments as a debt, and to enforce the liens created by this Declaration in favor of the Association by foreclosure of the continuing liens in the same form of action as is then provided for the foreclosure of a mortgage on real property. The liens provided for in this {04399062.DOC;4 }- 10 - Declaration shall be for the benefit of the Association and shall arise in accordance with the terms of this Declaration without the necessity of any further action by the Association. The Association shall have the power to bid at any lien foreclosure sale and to acquire, hold, lease, mortgage, and convey the Unit foreclosed against. Section 3.11 Duration of Lien. Any lien arising pursuant to this Article shall be a continuing lien in the amount stated in the assessment from the time of the assessment, but expiring pro rata as the assessment payments are made, and shall also be the personal obligation of the person or entity who is the Unit Owner of the Unit at the time of the assessment. The personal obligation to pay a prior assessment shall not pass to successors in interest unless expressly assumed by them; provided, however, that in the case of a sale or contract for the sale of any Unit which is charged with the payment of an assessment, the person or entity who is the Unit Owner immediately prior to the date of such sale shall be personally liable for the amounts of the monthly installments due prior to said date, and the new Unit Owner shall be personally liable for monthly installments becoming due on or after such date. The foregoing limitation on the duration of the personal obligation of a Unit Owner to pay assessments shall not, however, affect the validity or duration of the continuing lien for unpaid assessments against the respective Unit. Section 3.12 Reserve Account for Repair or Replacement. Unless the Plat Community has nominal reserve costs or the cost of a reserve study or update exceeds ten percent (10%) of the Association’s annual Common Expenses, the Association shall establish and maintain a reserve fund for major maintenance, repair or replacement of the Common Elements and any improvements thereon (“Reserve Account”). Such Reserve Account shall be deposited with a banking institution, and in the name of the Association. The Reserve Account shall be expended only for the purpose of affecting the major maintenance, repair or replacement of the Common Elements and any improvements and community facilities thereon, and to any sidewalks, roads, walls or pathways developed as a part of the Plat Community, equipment replacement, and for operating contingencies of a nonrecurring nature. The Board is responsible for administering the Reserve Account. The Association may establish such other reserves for such other purposes as it may from time to time consider to be necessary or appropriate. The proportional interest of any Unit Owner in any such reserves shall be considered an appurtenance of his or her Unit and shall not be separately withdrawn, assigned, or transferred from the Unit to which it appertains. Section 3.13 Withdrawals from Reserve Account. The Board may withdraw funds from the Reserve Account to pay for unforeseen or unbudgeted costs that are unrelated to replacement costs of the Reserve Components. Any such withdrawal must be recorded in the minute books of the Association. The Board must give notice of any such withdrawal to each Unit Owner and adopt a repayment schedule not to exceed twenty-four (24) months unless the Board determines that repayment within twenty-four (24) months would impose an unreasonable burden on the Unit Owners. The Board must provide to Unit Owners along with the annual budget adopted in accordance with Section 3.3: (a) notice of any such withdrawal; (b) a statement of the current deficiency in reserve funding expressed on a per unit basis; and (c) the repayment plan. The Board may withdraw funds from the Reserve Account without satisfying the notification for repayment requirements under this section to pay for replacement costs of Reserve Components not included in the reserve study. Section 3.14 Reserve Studies. The provisions of this section are intended to summarize the requirements for reserve studies as provided in RCW 64.90.545 – 64.90.560, and in the event of any conflict with the provisions herein, the statutory provisions shall control. {04399062.DOC;4 }- 11 - (a) Board Determination. Unless exempt under Section 3.12, The Association must prepare and update a reserve study in accordance with this RCW 64.90.550 (“Reserve Study”). An initial Reserve Study must be prepared by a Reserve Study Professional and based upon either a Reserve Study Professional’s visual site inspection of completed improvements or a review of plans and specifications for unbuilt improvements, or both when construction of some but not all of the improvements is complete. An updated Reserve Study must be prepared annually. An updated Reserve Study must be prepared at least every third year by a Reserve Study Professional and based upon a visual site inspection conducted by the Reserve Study Professional. (b) Unit Owner Demand. When more than three (3) years have passed since the date of the last Reserve Study prepared by a Reserve Study Professional, the Unit Owners to which at least twenty percent (20%) of the votes are allocated may demand, in writing, to the Association that the cost of a Reserve Study be included in the next budget and that the Reserve Study be prepared by the end of that budget year. The written demand must refer to RCW 64.90.555. The Board shall, upon receipt of the written demand, include the cost of a Reserve Study in the next budget and, if that budget is not rejected by the Unit Owners pursuant to Section 3.12, arrange for the preparation of a Reserve Study. Section 3.15 Limitations on Liability related to Reserve Account and Reserve Studies. Monetary damages or any other liability may not be awarded against or imposed upon the Association, its officers, the Board, or those persons who may have provided advice or assistance to the Association, its officers, or the Board, for failure to: (a) establish a Reserve Account; (b) have a current Reserve Study prepared or updated in accordance with the requirements of the Act and this Declaration; or (c) make the required disclosures in accordance with Subsection 3.3(b) and the Act. Section 3.16 Failure to Comply Does Not Relieve Unit Owners. A Unit Owner’s duty to pay assessments is not excused, and a budget ratified by the Unit Owners is not invalidated, because of the Association’s failure to comply with the Reserve Study or Reserve Account requirements. Section 3.17 Certain Areas Exempt. The Tracts and all portions of the Plat Community dedicated to and accepted by a public authority shall be exempt from assessments by the Association. ARTICLE 4. ARCHITECTURAL CONTROL COMMITTEE Section 4.1 Architectural Control Committee. An Architectural Control Committee (“Committee”) consisting of at least three (3) members, but in any event always an odd number of members, is hereby created with the rights and powers set forth in this Declaration. The initial members of the Committee shall be representatives appointed by Declarant. Committee members shall not be entitled to compensation for their services hereunder, except as may be determined by the Board of Directors. Declarant shall have the right and power at all times to appoint or renew the appointment of the members of the Committee or to fill any vacancy until such time as Declarant no longer owns any Units. After Declarant no longer owns any Units, the Board shall have the power to appoint and remove the members of the Committee. Section 4.2 Jurisdiction and Purpose. The Committee shall review proposed plans and specifications for construction of all residences and other Structures within the Plat Community, including any additions, exterior alterations, fences, major landscaping, clearing, painting, paving and excavation. Until Declarant no longer owns any Units, a prospective Unit Owner shall submit architectural and landscaping plans and specifications to the Committee for its review prior to closing the purchase of a Unit. Prior to submittal to the Committee, the Unit Owner shall verify all improvements {04399062.DOC;4 }- 12 - meet all local municipal codes. The Committee assumes no liability and holds no authority to approve, permit, or allow any construction on behalf of the local governing authorities. The Committee shall adopt and publish rules and procedures for the review of such plans and specifications. It shall be the obligation of each Unit Owner or prospective Unit Owner to be familiar with the rules and procedures of the Committee. As conditions precedent to approval of any matter submitted to it, the Committee shall find: (a) Consistent with Declaration. The approval of the plan is in the best interest of the Unit Owner and consistent with this Declaration. (b) General Considerations. General architectural considerations, including relationship and layout of Structures to natural features and adjacent homes, orientation and location of buildings, vehicular access, circulation and parking, setbacks, height, walls, fences, and similar elements have been designed to be compatible with the overall design of the Plat Community. (c) Site Considerations. General site considerations, including site layout, relationship of site to vegetation, natural features, open space and topography, orientation and locations of buildings, vehicular access and driveway lighting, circulation and parking, setbacks, height, walls, fences and similar elements have been designed to be compatible with the overall design of the Plat Community. (d) Landscape Considerations. General landscape considerations, including the location, type, size, color, texture and coverage of plant materials, provisions for irrigation, maintenance and protection of existing landscaped areas and similar elements have been considered to ensure visual relief, to complement buildings and Structures, and to provide an attractive environment for the enjoyment of the Unit Owners in general and the enhancement of the property values in the Plat Community. (e) Siding. Without limiting the foregoing, each residence, improvement or Structure constructed on a Unit shall be built of new materials except, with approval of the Architectural Control Committee, decorative items such as used brick, weathered planking, and similar items may be incorporated. All siding materials shall be of masonry (including stucco, dryvit, cultured stone, brick, stone, or similar material), and/or wood or wood-type siding material. All paints or natural finishes shall be those colors commonly known as earth tones. (f) Roofing. The roof shall be a composition roof with a 30-year life. (g) Entry Walks, Porches and Decks. All front entry walks shall be concrete, and all decks and wood porches shall be constructed of cedar or pressure-treated or composite materials. (h) Driveways. All driveways shall be constructed of concrete paving. (i) Local Codes. All buildings or Structures shall be constructed in accordance with all applicable codes and regulations. In the event of a conflict between any applicable codes and this Declaration, the codes shall govern. Section 4.3 Approval Procedures. Two copies of a preliminary application for approval must be submitted in writing to the Committee at the registered office of the Association. Within fifteen (15) days following receipt of a preliminary application, the Committee shall notify the applicant in writing as to whether the application is complete and, if not, of any additional information that may be required before the Committee can review the application. The Committee’s rules and procedures may {04399062.DOC;4 }- 13 - specify the payment of a reasonable nonrefundable fee, to be set forth in the Committee rules, for the purpose of defraying the costs associated with the Committee’s review of the preliminary application. This fee may be adjusted from time to time by the Committee in accordance with its rules and procedures. The Committee shall review the application in accordance with the provisions of this section as soon as possible after a complete application has been filed. The decision of a majority of the members of the committee shall be the decision of the Committee. One copy of approved plans will remain in the Committee’s files. All disapproved plans will be returned to the applicant. Section 4.4 Failure of Committee to Take Action. Except as provided in Section 4.6 below, in the event that the Committee fails to respond to an applicant’s complete and properly submitted application within thirty (30) days after the Committee has notified the applicant that the application is complete, formal written approval will not be required, and the applicant shall be deemed to have fully complied with the provisions for approval; provided, however, if the Committee delivers notice of the need for one (1) thirty (30) day extension prior to expiration of the above-referenced thirty (30) day period, the Committee shall have thirty (30) additional days to make its decision. Section 4.5 Committee’s Obligation. The Committee, in its deliberations and in the discharge of its obligations hereunder, shall act objectively and fairly in making decisions concerning various plans, specifications, plot plans and landscape plans submitted to it by various applicants for consideration in accordance with the provisions of this Declaration. Further, the determinations of the Committee as to noncompliance shall be in writing, signed by the Committee, and shall set forth in reasonable detail the reason for noncompliance. The Committee may approve, approve with conditions, or disapprove an application or any part thereof. In all cases, the sole responsibility for satisfying the provisions of this Declaration and all local building codes and governmental requirements rests with the applicant. In consideration of the Committee’s review of an applicant’s application, the applicant shall indemnify and hold the Committee harmless from any claim or damages resulting from applicant’s failure to comply with applicable building codes or other governmental requirements. Section 4.6 Exemptions and Variances From Committee Requirements. The Committee may, upon request, grant exemptions and variances from the rules and procedures of the Committee and the requirements of this Declaration when the party requesting such exemption or variance establishes to the satisfaction of the Committee that the improvements or other matters which are desired by the applicant are aesthetically as appealing, suited to climatic conditions, and compatible with the overall character of the development as are similar improvements or matters which conform to the requirements of this Declaration. Request for an exemption or variance shall be submitted in writing to the Committee and shall contain such information as the Committee shall from time to time require. The Committee shall consider applications for exemption or variance and shall render its decisions within thirty (30) days after notice to the applicant of proper submission. The failure of the Committee to approve an application for an exemption or variance shall constitute disapproval of such application. Section 4.7 Construction Deposit. For purposes of protecting the Common Elements and Common Element improvements against damage during construction by a Unit Owner, his or her contractors and agents, the Committee has authority, but is not mandated, to require a cash deposit from each Unit Owner to whom approval of plans is given of an amount deemed appropriate by the Committee for such purposes (“Construction Deposit”), if the Committee finds that potential damage can be done to the Common Element(s) caused by Unit Owner’s proposed construction. The Construction Deposit, however, shall not exceed Two Thousand Dollars ($2,000.00). In the event a Unit Owner, his or her contractor, agents or employees causes any damage or destruction to any portion of the Common Elements or Common Element Improvements, the Committee shall notify such Unit Owner and request {04399062.DOC;4 }- 14 - the replacement or repair of the item or area damaged or destroyed. The Unit Owner shall have a period of two (2) business days after the date or receipt of such notice to advise the Committee of its intended course of action and its schedule for correction of the damage, and to commence such correction. The Committee shall in its sole discretion approve or disapprove such course and schedule, and the Unit Owner agrees to make such changes thereto as are necessary to obtain the Committee’s approval. If the Unit Owner fails to correct the damage in the manner or within the time approved by the Committee, the Committee may, at its option, perform such work as is necessary to remedy the situation on behalf and at the expense of the Unit Owner and apply the Construction Deposit against the cost thereof. If the cost of such work exceeds the total amount of the Construction Deposit, the Unit Owner shall pay the Association that excess cost within ten (10) days of demand by the Committee. Upon completion of construction of the Improvements on the Unit, and following a joint inspection of the Improvements and Unit by the Unit Owner and the Committee to verify that no damage to the Common Elements and/or Common Element Improvements has occurred, the Committee shall make a final determination of compliance and return the remaining balance, if any, of the Construction Deposit to the Unit Owner, without interest within ten (10) days of such final determination Section 4.8 Failure of Applicant to Comply. Failure of the applicant to comply with the rules and procedures of the Committee or the final application as approved by the Committee shall, at the election of the Association’s Board exercised after thirty (30) days’ written notice to such applicant, constitute a violation of this Declaration. In that event, the Board shall be empowered to assess a penalty commensurate with the violation, which shall constitute a lien against such Unit, enforceable as provided herein and/or pursue any other remedy, including, but not limited to, an action for injunctive relief or specific performance. ARTICLE 5. LIEN ENFORCEMENT Section 5.1 Statutory Lien. The Association has a statutory lien on each Unit for any unpaid assessment against the Unit from the time such assessment is due, pursuant to and on the terms set forth in RCW 64.90.485. Proceedings to enforce the lien or collect the debt for any unpaid assessments will be governed by RCW 64.90.485. Section 5.2 Lien Priority. The Association’s lien has priority over all other liens and encumbrances on a Unit except: (a) Liens and encumbrances recorded before the recordation of this Declaration; (b) Except as otherwise provided in this section, a security interest on the Unit recorded before the date on which the unpaid assessment became due; and (c) Liens for real estate taxes and other state or local governmental assessments or charges against the Unit. A lien under this section also has priority over the security interests described in (b) above to the extent of an amount equal to the following: (i) The Common Expense assessments, excluding any amounts for capital improvements, based on the periodic budget adopted by the Association pursuant Article 3, above, along with any specially allocated assessments that are properly assessable against the Unit under such periodic budget, which would have become due in the absence of acceleration during the six (6) months {04399062.DOC;4 }- 15 - immediately preceding the institution of proceedings to foreclose either the Association's lien or a security interest described in (b) above; (ii) The Association's actual costs and reasonable attorney fees incurred in foreclosing its lien but incurred after the giving of the notice described in (iii) below; provided, however, that the costs and reasonable attorney fees that will have priority under this subsection (ii) shall not exceed two thousand dollars ($2,000) or an amount equal to the amounts described in (i) above, whichever is less; (iii) The amounts described in (ii) above shall be prior only to the security interest of the holder of a security interest on the Unit recorded before the date on which the unpaid assessment became due and only if the Association has given that holder not less than sixty (60) days' prior written notice that the owner of the Unit is in default in payment of an assessment. Upon payment of the amounts described in (i) of the preceding sentence by the holder of a security interest, the Association's lien described in this section shall thereafter be fully subordinated to the lien of such holder's security interest in the Unit. ARTICLE 6. USE COVENANTS, CONDITIONS AND RESTRICTIONS Section 6.1 Authorized Uses. The Plat Community shall be used solely for residential purposes and related facilities normally incidental to a residential community. After the Declarant Control Period no Unit shall be further subdivided, except as permitted in this Declaration without prior approval conferred by Association Action. Section 6.2 Leasing Restrictions. No residence on any Unit may be leased or rented by any party for a period of fewer than thirty (30) days, nor shall less than the whole of any Unit be leased or rented. Each lease or rental agreement shall be in writing and shall by its terms provide that it is subject in all respects to the provisions of the Governing Documents. Any failure by a lessee to comply with the terms of the Governing Documents shall be a default under the lease, whether or not it is so expressed therein. Other than the foregoing, there is no restriction on the right of any Unit Owner to lease his or her Unit or residence. Section 6.3 Animals. No animals, livestock, or poultry of any kind shall be raised, bred, or kept in the Plat Community except as specifically provided herein. Domesticated dogs, cats, or other conventional household pets may be kept if they are not kept, bred, or maintained for any commercial purposes, and all animals must be in compliance with applicable codes and regulations. “Other conventional household pets” shall include only traditionally domesticated pets and shall not include any form of poultry (i.e., domestic fowl, including but not limited to chickens, turkeys, ducks, and geese) or any exotic pets such as large or potentially dangerous reptiles, potentially harmful insects, bees, large birds, wild animals, and animals not normally domesticated, all of which are strictly prohibited in the Plat Community. No domestic pet may be kept if its presence or actions constitute a public or private nuisance. Pets shall be registered, licensed, and inoculated from time to time as required by law. When not confined to the Unit Owner’s Unit, pets within the Plat Community shall be leashed and accompanied by a person responsible for cleaning up any animal waste. No pets shall be tethered to any rope, cord, chain, etc., while outdoors on a Unit within the Plat Community for longer than two hours at a time. Section 6.4 Commercial Uses. No commercial enterprise, including itinerant vendors, shall be permitted on any Unit; provided, however, that the Association may, by adopting rules and regulations, permit specified home occupations to be conducted if allowed by law and if such occupation will not, in {04399062.DOC;4 }- 16 - the reasonable judgment of the Association, cause traffic congestion or other disruption of the Plat Community; and provided further that no signs or advertising devices of any character shall be permitted. Section 6.5 Vehicle Storage. No storage of goods, vehicles, boats, trailers, trucks, campers, recreational vehicles or other equipment or device shall be permitted in open view from any Unit, except this shall not exclude temporary (less than twenty-four (24) hours) parking of vehicles on the designated driveway areas adjacent to garages on the Units. Upon forty-eight (48) hours’ notice to the Unit Owner of an improperly parked or stored vehicle, boat, or other equipment, the Association has authority to have removed at the Unit Owner’s expense any such vehicle visible from the street that is parked on any Unit, street or within a Common Element for more than twenty-four (24) hours. Section 6.6 Garbage. All trash shall be placed in sanitary containers that are screened so as not to be visible from adjoining Structures or streets or roadways. No Unit or any portion thereof shall be used as a dumping ground for trash or rubbish of any kind. Yard rakings, dirt and debris resulting from landscaping work or Construction shall not be dumped onto adjoining lots or streets or roadways. Section 6.7 Utilities Underground. Except for hoses and the like which are reasonably necessary in connection with normal lawn maintenance, no water pipe, sewer pipe, gas pipe, drainage pipe, telephone, power, or television cable, or similar transmission line shall be installed or maintained above the surface of the ground. Section 6.8 Signs. Except for entrance, street, directional, traffic control, and safety signs, no promotional signs or advertising devices of any character shall be posted or displayed in the Plat Community; provided, however, that one temporary real estate sign not exceeding six (6) square feet in area may be erected upon any Unit or attached to any residence placed upon the market for sale or lease. Any such temporary real estate sign shall be removed promptly following the sale or rental of such Unit or residence. In addition, nothing in this section shall be construed to prohibit the display of signs regarding candidates for public or Association office, or ballot issues, on or within a Unit, so long as such signs are no larger than four (4) square feet and in place no longer than sixty (60) days. Flags of the United States or the State of Washington are not considered signs hereunder and are permitted, provided, however, that the Association may place reasonable restrictions on the time, place and manner of display as permitted by federal and state law. Section 6.9 No Obstruction of Easements. No structure, planting, or other material shall be placed or permitted to remain upon the Real Property which may damage or interfere with any easement or the installation or maintenance of utilities, or which may unreasonably change, obstruct, or retard direction or flow of any drainage channels. No decorative planting, structure or fence may be maintained within an easement area. Section 6.10 Antennas and Clotheslines. No external clotheslines shall be permitted in the Plat Community. Each Owner has a right to install an external antenna/satellite dish pursuant to 47 C.F.R. § 1.4000; provided, however, that no other antenna are allowed in the Plat Community and further provided that the ACC approves the location of the allowed antenna. Section 6.11 Unit Owners’ Maintenance Responsibilities. The maintenance, upkeep, and repair of individual Units and homes shall be the sole responsibility of the individual Unit Owners thereof, and in no way shall it be the responsibility of the Association, its agents, officers or directors. Unit Owners shall maintain their Units and homes in good repair and in a clean, sightly, and sanitary condition at all times. Without limitation as to the foregoing, each Unit Owner shall be obligated to keep {04399062.DOC;4 }- 17 - his or her Unit and home in a clean, sightly and sanitary condition and maintain the landscaping on his or her Unit in a healthy and attractive state and in a manner comparable to that on the other Units in the Plat Community. No storage of firewood shall be permitted in front yards. After thirty (30) days’ written notice to a Unit Owner from the Association of such Unit Owner’s failure to so maintain his or her home or Unit, and after approval by a two-thirds (2/3) majority vote by the Board, the Association shall have the right, through its agents and employees, to enter upon any Unit which has been found to violate the foregoing standards in order to restore the home or Unit to such standards. The cost of such work shall be a special assessment on such Unit Owner and his or her Unit only. Section 6.12 Weapons. No firearms of any kind or nature, including rifles, handguns, bows, slingshots, BB guns, slings, traps, or any other like weapon, shall be used or discharged within the Plat Community except by authorized governmental officials. Section 6.13 Nuisances Prohibited. No noxious or offensive activity shall be conducted in any portion of the Plat Community, nor shall anything be done or maintained therein in derogation or violation of the laws of the State of Washington or any other applicable governmental entity. Nothing shall be done or maintained on any portion of the Plat Community which may be or become an annoyance or nuisance to the neighborhood or detract from the value of the Plat Community. The Association shall determine by Association Action whether any given use of a Unit unreasonably interferes with the rights of the other Unit Owners to the use and enjoyment of their respective Units or of the Common Elements, and such determination shall be final and conclusive. Section 6.14 Preservation of Landscaping. No party subject to the terms of this Declaration or his/her/their agents, employees or guests shall destroy or otherwise materially adversely impact landscaping on Common Elements and/or dedicated Tracts, or as otherwise governed by applicable laws, codes and regulations. Section 6.15 Temporary Structures. No Structure or improvement of a temporary character, including without limitation a trailer, tent, shack, garage, barn, or other outbuilding shall be installed, placed or used on any Unit as a dwelling or residence, either temporarily or permanently. Section 6.16 Window Coverings. Within ninety (90) days of occupancy of a residence on a Unit, curtains, drapes, blinds or valances shall be installed on all bedroom, bathroom and closet windows and all main windows in the great room that are visible from adjacent Units. No newspapers, bed sheets or other makeshift window coverings shall be visible from the exterior of the residence. Section 6.17 Fences. All fences shall match the fences installed at the time the Real Property was first developed by the Declarant, unless otherwise authorized by the Board. Any fences that are stained must be stained to match the stain originally used on the fences within Forest Terrace unless otherwise approved by the Architectural Control Committee. Section 6.18 Unit Size Restriction. No Unit or portion of a Unit in the community shall be divided and sold or resold or ownership changed or transferred, whereby the ownership of any portion of the Plat Community shall be less than the area required for the use district in which located. Section 6.19 Damage. Any damage to streets, Common Element Improvements, entry structures, fences, landscaping, mailboxes, lights and lighting standards by Unit Owners, their children, contractors, agents, visitors, friends, relatives or service personnel shall be repaired and restored to like new condition by such Unit Owner within twelve (12) days from the occurrence of such damage. After thirty (30) {04399062.DOC;4 }- 18 - days’ written notice to a Unit Owner from the Association of such Unit Owner’s failure to so repair, and after approval by a two-thirds (2/3) majority vote by the Board, the Association shall have the right, through its agents and employees, make such repairs on behalf of such Unit Owner. The cost of such work shall be a special assessment on such Unit Owner and his or her Unit only. ARTICLE 7. COMMON ELEMENTS Section 7.1 Title to Common Elements. All Common Elements were dedicated in accordance with the terms of the Map upon recording of the Map. Every Common Element shall be subject to an easement of common use and enjoyment in favor of the Association and every Unit Owner, their heirs, successors, and assigns, in accordance with the terms and conditions of the Governing Documents and the Map. Section 7.2 Maintenance of Common Elements. The Association shall maintain, repair, replace, improve, and otherwise manage all of the Common Elements so as to keep them in good repair and condition and shall conduct such additional maintenance, repair, replacement, construction, or reconstruction as may be determined pursuant to Association Action. The Association shall take any action necessary or appropriate to the maintenance and upkeep of the Common Elements and improvements thereon. Section 7.3 Common Element Aesthetic Standards Committee. A Common Element Aesthetic Standards Committee (“Common Element Committee”) consisting of at least three (3) members, but in any event always an odd number of members, is hereby created with the rights and powers set forth in this Declaration. The initial members of the Common Element Committee shall be representatives appointed by Declarant. Common Element Committee members shall not be entitled to compensation for their services hereunder, except as may be determined by the Board of Directors. Declarant shall have the right and power, as a Special Declarant Right, at all times to appoint or renew the appointment of the members of the Common Element Committee or to fill any vacancy until such time as Declarant no longer owns any Units. After Declarant no longer owns any Units, the Board shall have the power to appoint and remove the members of the Common Element Committee, or alternatively, the Board shall have the power to terminate the Common Element Committee. (a) Jurisdiction and Purpose. The Common Element Committee shall establish and maintain the aesthetic standards for the Common Elements, provide for the maintenance, repairs, replacements and improvements (including contracting with the Declarant or a third party for the same) of the Common Elements and approve the budget for all maintenance, repairs, replacements and improvements for all Common Elements (“Common Element Budget”). The Common Element Committee’s powers, jurisdiction and purpose stated herein will be broadly construed. The Common Element Committee assumes no liability and holds no authority to approve, permit or allow any construction on behalf of the local governing authorities. (b) Common Element Budget Process. As part of establishing its annual budget, the Board shall deliver the Common Element Budget to the Common Element Committee for review and approval. All proposed Common Element Budgets shall at a minimum provide funds for maintenance, repair and replacement of the Common Elements consistent with the quality, nature and location of the community and in a manner that other communities similar in quality, nature and location to the community are maintained. Upon receipt from the Board, the Common Element Committee shall have thirty (30) days to review and approve, or propose changes to, the proposed Common Element Budget. So long as the members of the Common Element Committee are appointed by Declarant, the Board shall {04399062.DOC;4 }- 19 - adopt the Common Element Budget as approved or revised by the Common Element Committee; provided, however, Declarant shall be responsible for paying any difference in costs between the Board’s proposed Common Element Budget and the revised Common Element Budget prepared by the Common Element Committee. Once the members of the Common Element Committee are appointed by the Board, the Board shall have the option of either adopting the Common Element Committee’s proposed Common Element Budget or rejecting any revisions; in either case, Declarant shall have no obligation for payment of any portion of the Common Element Budget. Such review and approval process shall be repeated for any changes to the Common Element Budget following the adoption of the annual budget pursuant to Section 3.3. Nothing herein will diminish or waive any duty the Board would otherwise have to fund common expenses from assessments under this Declaration or the Act. Section 7.4 Monument and Landscaping Maintenance and Easements. The Association shall be responsible for maintaining any monument signage in the Plat Community and shall be responsible for maintaining any landscaping in Common Elements, including but not limited to planter strips, in accordance with the terms of the Map and all applicable laws, codes and regulations. ARTICLE 8. CERTAIN GRANTS, EASEMENTS, COVENANTS AND RESTRICTIONS Section 8.1 Tracts. (a) Tract A. Tract A is a private storm drainage tract for the benefit of all Units. Each ownership of a Unit shall include an equal and undivided ownership interest in Tract A. Any conveyance of a Unit must include a 1/25th interest in Tract A. The Association shall be responsible for maintaining, repairing, and replacing the Tract and any improvements therein, with the exception of those utilities owned and maintained by utility providers; however, if the Association fails to properly maintain Tract A, the Owners shall be responsible for the maintenance, repair, and replacement. Required permits shall be obtained prior to conducting activities disturbing the Tract such as clearing and grading, filling, popping, cutting, or removing vegetation, except for routine landscape maintenance such as lawn mowing within the two-year maintenance period. (b) Tracts B, C, D, & E. Tract B, C, D, and E are open space tracts to be preserved in perpetuity and are for the benefit of all Unit Owners. Each ownership of a Unit shall include an equal and undivided ownership interest in said Tracts. Any conveyance of a Unit must include a 1/25th interest in the Tracts. The Association shall be responsible for maintaining, repairing, and replacing the Tracts and any improvements contained therein, with the exception of those utilities owned and maintained by utility providers. Development, alteration, or disturbance within the Tracts is prohibited except for purposes of habitat enhancement as part of an enhancement project that has received prior written approval from the City of Renton or for required maintenance of the utilities located within the Tracts that has received prior written approval from the City. Such activities must be conducted using best available science. Maintenance includes ensuring that no alterations occur within the Tracts and that all vegetation remains undisturbed unless the express written authorization of the City has been received. Section 8.2 Public and Private Utility Easements. Upon recording of the Map, easements were granted to the City of Renton, Puget Sound Energy, Inc., CenturyLink, Qwest, Comcast, and other utility providers and their respective successors and assigns, under and upon the exterior ten (10) feet of the Units and Tracts, as depicted and labeled on the Map, lying parallel with and adjoining the street frontages in which to install, lay, construct, operate, maintain, repair, replace, and enlarge underground pipes, conduits, cables, and wires with all necessary or convenient underground or ground-mounted appurtenances thereto, for the purposes of serving the Real Property and other properties, together with {04399062.DOC;4 }- 20 - the right to enter thereupon at all times for the purposes stated herein. These easements entered upon for these purposes shall be restored as near as possible to their original condition by the utility provider. No lines or wires for transmission of electric current, telephone use, cable television, or any other purpose shall be placed or permitted to be placed within the easements unless the same shall be underground or in conduit attached to a building. Section 8.3 Public Storm Water Facility Easements. Upon recording of the Map, easements were granted and conveyed to the City of Renton over, under, and across areas depicted on the Map for the purpose of conveying, storing, managing, and facilitating storm and surface water per the approved civil construction plans on file with the City. The City has the right to enter said storm drainage easement for the purpose of inspecting, operating, maintaining, improving, and repairing the drainage facilities therein. Section 8.4 Public Sewer Easements. Upon recording of the Map, easements were granted to the City of Renton over, under, and across areas depicted on the Map for the purpose of maintaining the public sanitary sewer facilities therein. Section 8.5 Public Easement Restrictions. Several restrictions and prohibitions apply to the public easements noted on the Map, including restrictions on activities within the easement areas and surrounding areas. Owners should consult the public easement restrictions on the Map prior to disturbing the ground or making any improvements within a Unit. Section 8.6 Private Drainage Easements. Except as otherwise described in this Section, maintenance of all private storm drainage easements depicted or described on the Map shall be the responsibility of the Units deriving benefit from said easements. Owners shall equally share in the maintenance of the portions of the drainage facilities used in common. (a) Upon recording of the Map, the ten-foot (10’) wide private storm drainage easement within Unit 10 was granted to the Owners of Units 10 and 11. (b) Upon recording of the Map, easements two-and-a-half feet (2.5’) in width parallel with and abutting all interior lot lines and five feet (5’) in width parallel with and abutting all rear lot lines were granted to each respective Unit Owner for the purpose of private storm drainage. In the event lot lines are adjusted, the easements shall move with the adjusted lot lines. No structures other than fences, yard drains, and retaining walls over four feet (4’) in height shall be constructed within these easements. (c) Upon recording of the Map, the thirteen foot (13’) wide private drainage easement along a portion of the east line of Unit 24 was granted for the benefit of the owners of tax parcel no. 042305-9114 (immediately east of Unit 24 and shown on the Map as Parcel B LUA18-000125 Rec. No. 20210729900003) (“Adjacent Owner”). The Adjacent Owner is responsible for the maintenance of the drainage facilities that lie within the easement area. (d) Upon recording of the Map, the fifteen foot (15’) wide private drainage easement along the east and north line of Unit 10 was granted to the Association. The Association is responsible for the maintenance of the drainage facilities that lie within the easement area. (e) Upon recording of the Map, the fifteen foot (15’) wide private drainage easement within Units 12, 13 and Tract E and the ten foot (10’) wide private drainage easement within Tract E were {04399062.DOC;4 }- 21 - granted to the Association. The Association is responsible for the maintenance of the drainage facilities that lie within the easement area. Section 8.7 Sanitary Sewer and Storm Water Maintenance. Each Unit Owner shall be responsible for maintaining the sanitary sewer or storm water stub from the point of use on the Owner’s property to the point of connection with the public sanitary sewer main or storm main. Any portion of a sanitary sewer or surface water stub that jointly services more than one Unit shall be jointly maintained and repaired by the Units’ Owners sharing the stub. Section 8.8 Private Landscape Maintenance Easements. Upon recording of the Map, easements were granted to the Association for maintenance of the landscaping located within areas of Units 4 through 24, depicted on the Map. Section 8.9 Retaining Wall/Rockery Easement Provisions. Any Unit that includes or is adjacent to a retaining wall or rockery that was installed by the developer and is adjacent to or straddles one or more property lines shall be subject to a permanent easement granted to the Unit Owner on the other side of such retaining wall or rockery. Repair and maintenance of such retaining wall or rockery shall be shared responsibility of the Unit Owners on both sides of such retaining wall or rockery. The Owners of said Units shall be equally responsible for the maintenance, repair, and/or reconstruction of that portion of the wall drainage facilities that Unit Owner benefits from, except no Owner shall be responsible for the maintenance, repair, and/or reconstruction of that portion of the commonly used storm drainage located upstream from that point of connection of that respective Unit Owner. Section 8.10 Sidewalk Maintenance. Each Unit Owner shall be responsible for keeping the sidewalk abutting the Unit clean and litter free. The Unit Owner shall be responsible for maintaining vegetation within the abutting landscape strip, excluding the street trees owned by the City of Renton. The City shall not bear any maintenance responsibility for the landscape strips. Section 8.11 Street Trees and Streetlights. The City of Renton owns and shall maintain the street trees and streetlights. Section 8.12 Gas Pipeline; Association Financial Responsibility for Repairs. A 100-foot- wide gas line easement exists on Tracts C and E and across NE 27th PL. Pursuant to Renton Municipal Code, all property owners within 500 feet of a hazardous liquid or gas pipeline must contact the pipeline owner before any ground disturbance. Further, the Association is financially responsible for any public infrastructure repairs within the easement as a result of construction activities performed by the pipeline owner or its agents. Such activities shall include street and surface restoration, trench restoration, patches, surface appurtenances, overlays and curb, sidewalk, planter and landscaping restoration. Work shall be performed by the City of Renton, franchise, or pipeline owner and billed to the Association following completion unless otherwise required by the City. Activities such as repairs or additions to underground utilities, franchise utilities, roadbed and subgrade, or any other subsurface alterations are not the financial responsibility of the Association. Section 8.13 Public Emergency and Utility Access Easement over Tract A. Upon recording of the Map, an easement was granted to the Renton Regional Fire Authority over and across Tract A for the purpose of emergency access. An easement was also granted to the City of Renton over, under, and across Tract A for the purpose of utility and emergency access. {04399062.DOC;4 }- 22 - ARTICLE 9. INSURANCE; CASUALTY LOSSES; CONDEMNATION Section 9.1 Insurance Coverage. Commencing not later than the time of the first conveyance of a Unit to a person other than the Declarant, the Association must maintain in its own name, to the extent reasonably available and subject to reasonable deductibles: (a) Property insurance on the Common Elements and on property that must become Common Elements, insuring against risks of direct physical loss commonly insured against, as near as practicable to the full insurable replacement value (without deduction for depreciation) of the Common Elements, exclusive of land, excavations, foundations, and other items normally excluded from property policies; (b) Commercial general liability insurance, including medical payments insurance, in an amount not less than One Million Dollars ($1,000,000.00) covering all occurrences commonly insured against for bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the Common Elements and, in cooperatives, of all Units; (c) Fidelity insurance; and (d) Such other insurance as the Association deems advisable; provided, that notwithstanding any other provisions herein, the Association shall continuously maintain in effect casualty, flood, and liability insurance and a fidelity bond meeting the insurance and fidelity bond requirements for similar projects established by Federal National Mortgage Association, Governmental National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Housing Authority, and Veterans Administration, so long as any of them is a Mortgagee or Unit Owner, except to the extent such coverage is not available or has been waived in writing by such agencies. Section 9.2 Casualty Losses. In the event of substantial damage to or destruction of any of the Common Elements, the Association shall give prompt written notice of such damage or destruction to the Unit Owners and to all Mortgagees who have requested notice of such damage or destruction from the Association. Insurance proceeds for damage or destruction to any part of the Common Elements shall be paid to the Association as a trustee for the Unit Owners, or its authorized representative, including an insurance trustee, which shall segregate such proceeds from other funds of the Association. Section 9.3 Condemnation. In the event any part of the Common Elements is made the subject matter of any condemnation or eminent domain proceeding, or is otherwise sought to be acquired by any condemning authority, the Association shall give prompt notice of any such proceeding or proposed acquisition to the Unit Owners and to all Mortgagees who have requested notice of any such proceeding or proposed acquisition from the Association. All compensation, damages, or other proceeds therefrom, shall be payable to the Association. ARTICLE 10. ENFORCEMENT Section 10.1 Right to Enforce. The Association, Declarant, or any Unit Owner shall have the right to enforce, by any appropriate proceeding at law or in equity, all covenants, conditions, restrictions, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration. Section 10.2 Remedies Cumulative. Remedies provided by this Declaration are in addition to, cumulative with, and are not in lieu of, other remedies provided by law. There shall be, and there is {04399062.DOC;4 }- 23 - hereby created, a conclusive presumption that any breach or attempted breach of the covenants, conditions, and restrictions herein cannot be adequately remedied by an action at law or exclusively by recovery of damages. Section 10.3 Covenants Running with the Land. The covenants, conditions, restrictions, liens, easements, enjoyment rights, and other provisions contained herein are intended to and shall run with the land and shall be binding upon all persons purchasing, leasing, subleasing, or otherwise occupying any portion of the Real Property, their heirs, executors, administrators, successors, grantees, and assigns. All instruments granting or conveying any interest in any Unit shall be subject to this Declaration. Section 10.4 Right to Assess Penalty on Unit for Violations of Declaration. The Board, by simple majority vote, shall determine whether a Unit Owner has breached, or a Unit is in breach, of any of the covenants, conditions, and restrictions provided herein. After thirty (30) days’ written notice to such Unit Owner, the Unit Owner shall have an opportunity to be heard by the Board regarding the violation. After such hearing, the Association by a two-thirds (2/3) majority vote of the Board, is empowered to assess a penalty in accordance with an established schedule of fines adopted by the Board and furnished to the Unit Owners. Such penalty shall be a levied special assessment and constitute a lien against the Unit, enforceable as provided herein. ARTICLE 11. AMENDMENT Section 11.1 Amendment by Declarant or Association. Upon thirty (30) days’ advance notice to Unit owners, the Declarant may, without a vote of the Unit Owners or approval by the Board, unilaterally adopt, execute, and record a corrective amendment or supplement to the Governing Documents to correct a mathematical mistake, an inconsistency, or a scrivener’s error, or clarify an ambiguity in the Governing Documents with respect to an objectively verifiable fact including, without limitation, recalculating the liability for Common Expenses or the number of votes in the Association appertaining to a Unit, within five (5) years after the recordation or adoption of the Governing Document containing or creating the mistake, inconsistency, error, or ambiguity. Any such amendment or supplement may not materially reduce what the obligations of the Declarant would have been if the mistake, inconsistency, error, or ambiguity had not occurred. Upon thirty (30) days’ advance notice to Unit Owners, the Association may, upon a vote of two-thirds (2/3) of the members of the Board, without a vote of the Unit Owners, adopt, execute, and record an amendment to the declaration for the following purposes: (a) to correct or supplement the Governing Documents as provided above; or (b) to remove any language and otherwise amend as necessary to effect the removal of language in direct conflict with the Washington Uniform Common Interest Ownership Act. Section 11.2 Amendments by Unit Owners. Except in cases of amendments that may be executed by the Declarant or the Association pursuant to Section 11.1 or as expressly permitted in accordance with the Washington Uniform Common Interest Ownership Act, this Declaration may be amended only by vote or agreement of Unit Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are allocated. Section 11.3 Effective Date & Cross-References. Amendments shall take effect only upon recording in the official real property records of King County, Washington. All amendments must contain a cross-reference by recording number to the Declaration and to any prior amendments to the Declaration. All amendments to the Declaration adding Units must contain a cross-reference by recording number to {04399062.DOC;4 }- 24 - the Map relating to the added Units and set forth all information required under RCW 64.90.225(1) with respect to added Units. ARTICLE 12. GENERAL PROVISIONS Section 12.1 Taxes. Each Unit Owner shall pay without abatement, deduction, or offset, all real and personal property taxes, general and special assessments, including local improvement assessments, and other charges of every description levied on or assessed against his or her Unit, or personal property located on or in the Unit. The Association shall likewise pay without abatement, deduction, or offset, all of the foregoing taxes, assessments, and charges levied or assessed against the Common Elements. Section 12.2 Non-Waiver. No waiver of any breach of this Declaration or failure to enforce any covenant of this Declaration shall constitute a waiver of any other breach, whether of the same or any other covenant, condition, or restriction. Section 12.3 Attorneys’ Fees. In the event of a suit or action to enforce any provision of this Declaration or to collect any money due hereunder or to foreclose a lien, the unsuccessful party in such suit or action shall pay to the prevailing party all costs and expenses, including title reports, and all attorney’s fees that the prevailing party has incurred in connection with the suit or action, in such amounts as the court may deem to be reasonable therein, and also including all costs, expenses, and attorneys’ fees incurred in connection with any appeal from the decision of a trial court or any intermediate appellate court. Section 12.4 No Abandonment of Obligation. No Unit Owner, through his or her non-use of any Common Element, or by abandonment of his or her Unit, may avoid or diminish the burdens or obligations imposed by this Declaration. Section 12.5 Captions. The captions of the various articles, sections and paragraphs of this Declaration are for convenience of use and reference only and do not define, limit, augment, or describe the scope, content or intent of this Declaration or any parts of this Declaration. Section 12.6 Severability. Invalidation of any one of these covenants, conditions, restrictions, easements, or provisions by judgment or court order shall in no way affect any other of the same, all of which shall remain in full force and effect. Section 12.7 Notices. All notices, demands, or other communications (“Notices”) permitted or required to be given by this Declaration shall be in the form of a record, in a tangible medium, or in an electronic transmission in accordance with RCW 64.90.515. If mailed, the Notice shall be by certified or registered mail, return receipt requested, with postage prepaid and shall be deemed given three (3) days after the date of mailing thereof, or on the date of actual receipt, if sooner. Notices provided by electronic transmission shall be deemed effective according to the requirements of RCW 64.90.515. All other Notices shall be deemed given on the date of actual receipt. Notice in a tangible medium to a Unit Owner must be addressed to the Unit address unless the Unit Owner has requested, in a record delivered to the Association, that Notices be sent to an alternate address or by other method allowed by this Declaration. If there is more than one Unit Owner of a Unit, Notice to any one such Unit Owner shall be sufficient. The address of Declarant and of the Association shall be given to each Unit Owner at or before the time he or she becomes a Unit Owner. If the address of Declarant or the Association shall be changed, Notice shall be given to all Unit Owners. {04399062.DOC;4 }- 25 - Section 12.8 Indemnification. The Association shall indemnify every officer and director authorized to act on behalf of the Association by the Board or by this Declaration against any and all expenses, including counsel fees, reasonably incurred by, or imposed upon, any officer and director in connection with any action, suit or proceeding if approved by the then Board to which he or she may be a party by reason of being or having been an officer and director. The officers and directors shall not be liable for any mistakes 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 by them, in good faith, on behalf of the Association (except to the extent that such officers and directors may also be members of the Association), and the Association shall indemnify and forever hold each officer and director free and harmless against any and all liability to others on account of any such contract or commitment. The Association shall, as a Common Expense, maintain adequate general liability and officers’ and directors’ liability insurance to fund this obligation. Section 12.9 Applicable Law. This Declaration shall be construed in all respects under the laws of the State of Washington. ARTICLE 13. PHASED DEVELOPMENT; DEVELOPMENT RIGHTS Section 13.1 Subsequent Development. Declarant reserves for itself, its successors and assigns, during the Declarant Control Period, the right, by amendment to this Declaration recorded in the King County Recorder’s Office, in one or more phases, to subject additional properties to this Declaration or to withdraw undeveloped property from it. Each Unit Owner appoints and constitutes the Declarant as his/her attorney-in-fact to adopt and file amendments to this Declaration necessary to add or subtract such properties. The original Unit Owners shall be benefited by any Common Elements on additional property the Declarant elects to add to the Plat Community, either through Association ownership and/or control of said additional Common Elements or by easements of use and enjoyment in favor of said original Unit Owners on said additional Common Elements. The owners of such property added by Declarant to the Plat Community shall have an easement for use and enjoyment of the existing Common Elements and shall have all the obligations to pay their pro rata cost of maintaining the Common Elements, unless otherwise provided herein. Declarant shall also have as a Development Right the right to extend existing easements and may create new easements over the Units still within Declarant’s control so as to provide access and service to the additional properties. Neither the Association nor any Unit Owners shall have any right in any additional property, nor shall this Declaration have any effect on such additional property until it is subjected to this Declaration by adoption of an amendment to this Declaration recorded in the King County Recorder’s Office describing such additional property or by addition to the Map. The rights reserved by Declarant in this section may be exercised by Declarant during the Declarant Control Period at Declarant’s sole discretion. Section 13.2 Rights and Obligations. The owners of properties added to the Plat Community shall be members of the Association and shall be entitled to all benefits and subject to all obligations of a member, including, but not limited to, the right to vote in Association elections and the obligation to pay assessments as set forth herein. If Declarant elects to withdraw undeveloped property from this Declaration, such withdrawn property shall no longer have any membership rights in the Association or hereunder. Section 13.3 No Requirement to Add. Nothing contained in this Declaration shall be construed to require the Declarant to subject additional properties to this Declaration. {04399062.DOC;4 }- 26 - Section 13.4 Control. Declarant shall have and hereby reserves as a Development Right for itself, its successors, and assigns, an easement for the right, during the Declarant Control Period and any period thereafter in which Declarant is a Unit Owner, to utilize the Common Elements for its business uses and purposes, including, but not limited to, uses and purposes related to the construction, promotion, sale and development of the Plat Community. If additional properties are subjected to this Declaration pursuant to this article, Declarant shall have an easement as described in this section on the Common Elements located therein. Upon termination of the Declarant Control Period, Declarant’s easement shall automatically terminate except as to Units for which Declarant owns. Control and the management and administration of the Common Elements shall vest in the Association at the end of the Declarant Control Period subject to the Declarant’s aforementioned rights of use. Section 13.5 Dedication to Governmental Entities. Until the termination of the Declarant Control Period, Declarant reserves as a Development Right the right to withdraw any undeveloped part of the Real Property from this Declaration and to dedicate, transfer or convey it to any state, county, municipal or other governmental entity any such part of the Real Property or reserve it for Declarant’s use and/or sale. The rights reserved by Declarant in this section shall be exercised by Declarant at Declarant’s sole discretion. [Remainder of page left blank; signature on next page.] {04399062.DOC;4 }- 27 - IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the day and year first above written. DECLARANT: Pulte Homes of Washington, Inc., a Michigan corporation By: Its: STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me __________________, to me known to be the _________________ of Pulte Homes of Washington, Inc., a Michigan corporation, the corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that said person is authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN under my hand and official seal this _____ day of ___________________, 2022. NOTARY PUBLIC in and for the State of Washington, residing at . My commission expires . {04399062.DOC;4 }- 28 - Exhibit A