HomeMy WebLinkAboutDraft Legal Documents701 Sunset Blvd Declaration page 1
ND: 18354.005 4848-7673-8817v7
DECLARATION OF COVENANTS, CONDITIONS,
RESTRICTIONS AND EASEMENTS
FOR
701 SUNSET BLVD
THIS DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS
is dated for reference purposes ________________, 2017 and is made by
TOTTENHAM, LLC, a Washington limited liability company (“Declarant”).
RECITALS
A. Declarant is the owner of the real property located in the City of Renton,
King County, Washington, more particularly described on the attached EXHIBIT A
(“Property”).
B. Declarant desires to subject the Property to the provisions of this
Declaration to create a residential community of single-family townhomes
(“Community”).
C. The Community is subject to certain Governing Documents as defined
herein. In addition, in order to promote the safety and well-being the Community as a
whole, any future alterations to the fire and life safety systems and to the structural
elements of the project as constructed by Declarant are specifically restricted as more
particularly set forth herein.
NOW, THEREFORE, Declarant hereby declares that the Property, including the
improvements constructed or to be constructed thereon, is hereby subjected to the
provisions of this Declaration and shall be held, sold, transferred, conveyed, used,
occupied and mortgaged or otherwise encumbered subject to the covenants, conditions,
restrictions, easements, assessments and liens hereinafter set forth, which are for the
purpose of protecting the value and desirability of, and which shall run with the title to,
the Property, and shall be binding on all persons having any right, title or interest in all or
any portion of the Property, their respective heirs, legal representatives, successors,
successors-in-title and assigns and shall inure to the benefit of each and every owner of
all or any portion thereof.
ARTICLE 1.
DEFINITIONS
1.1. WORDS DEFINED. The following words, when used in this Declaration
(unless the context shall prohibit), shall have the following meanings:
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1.1.1. “Association” shall mean the 701 Sunset Blvd Owners
Association, a Washington nonprofit corporation, its successors and assigns.
1.1.2. “Board of Directors” or “Board” shall mean the appointed or
elected board of directors of the Association having its normal meaning under
Washington law.
1.1.3. “Bylaws” shall refer to the duly adopted Bylaws of the
Association.
1.1.4. “Common Areas” shall mean any and all real and personal
property, including easements, which the Association owns, leases or otherwise holds
possessory or use rights in, together with the facilities and improvements located thereon,
for the common use and enjoyment of the Owners.
1.1.5. “Common Expenses” shall mean expenditures made by, or
financial liabilities of, the Association which are related to the Common Areas and the
general operation of the Association, including, without limitation, maintenance and
repair of certain exterior portions of the residential improvements constructed on the Lots
as provided herein, certain utilities and systems serving such improvements, any video
monitoring or surveillance costs or expenses, garbage and recycling services for the
townhomes constructed on the Lots, landscaping maintenance for the Lots and allocations
to reserves.
1.1.6. “Community” shall mean and refer to the Property described in
EXHIBIT A, attached hereto, and all improvements to such Property including, without
limitation, the townhomes constructed on the Lots.
1.1.7. “Community-Wide Standard” shall mean the standard of
conduct, maintenance, or other activity as initially established by Declarant and as
generally prevailing in the Community. Such standard may be more specifically
determined by the Board of Directors.
1.1.8. “Declarant” shall mean and refer to Tottenham, LLC, a
Washington limited liability company, and its successors-in-title and assigns, provided, in
the instrument of conveyance to any such successor-in-title or assign, such successor-in-
title or assign is designated as the “Declarant” hereunder by the grantor of such
conveyance, which grantor shall be the “Declarant” hereunder at the time of such
conveyance; provided, further, upon designation of a successor Declarant, all rights of the
former Declarant in and to such status as “Declarant” hereunder shall cease.
1.1.9. “Declarant Control Period” shall mean the period of time
during which Declarant is entitled to appoint the members of the Board. The Declarant
Control Period shall expire on the first to occur of the following: (a) when Declarant no
longer owns any Lot for development and/or sale in the Community;
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(b) December 31, 2020; or (c) when, in its sole discretion, Declarant so determines in a
notice recorded in the real property records of King County, Washington.
1.1.10. “Declaration” shall mean this Declaration of Covenants,
Conditions, Restrictions and Easements for 701 Sunset Blvd, as it may be amended.
1.1.11. “Governing Documents” shall mean this Declaration, as it may
be amended, the Articles of Incorporation and Bylaws of the Association and any rules
and regulations adopted by the Association.
1.1.12. “Lot” shall mean any legally conveyable parcel of land within
the Community, together with the improvements constructed thereon, which constitutes a
single-family residence, as shown on a plat recorded in the land records of King County,
Washington. The ownership of each Lot shall include, and there shall pass with each Lot
as an appurtenance thereto, whether or not separately described, all of the right, title and
interest of an Owner in the Common Areas, which shall include, without limitation,
membership in the Association.
1.1.13. “Mortgage” means any mortgage, deed of trust and any and all
other similar instruments used for the purpose of encumbering real property in the
Community as security for the payment or satisfaction of an obligation.
1.1.14. “Mortgagee” shall mean the holder of a Mortgage.
1.1.15. “Occupant” shall mean any Person occupying all or any portion
of a residence or other property located within the Community for any period of time,
regardless of whether such Person is a tenant or the Owner of such property.
1.1.16. “Owner” shall mean and refer to the record owner, whether one
or more Persons, of the fee simple title to any Lot located within the Community,
excluding, however, any Person holding such interest merely as security for the
performance or satisfaction of any obligation.
1.1.17. “Person” means any natural person, as well as a corporation,
joint venture, partnership (general or limited), association, trust, or other legal entity.
1.1.18. “Property” shall mean the real property described in EXHIBIT A
attached hereto.
1.1.19. “Total Association Vote” means all of the votes attributable to
members of the Association (including votes of Declarant), and the consent of Declarant
so long as Declarant owns any Property for development and/or sale in the Community.
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ARTICLE 2.
PROPERTY SUBJECT TO THIS DECLARATION
The Property which is, by the recording of this Declaration, subject to the
covenants, conditions and restrictions hereafter set forth and which, by virtue of the
recording of this Declaration, shall be held, transferred, sold, conveyed, used, occupied
and mortgaged or otherwise encumbered subject to this Declaration is the real property
described in EXHIBIT A, attached hereto and by reference made a part hereof.
ARTICLE 3.
ASSOCIATION
3.1. FORM OF ASSOCIATION. The Association shall be a non-profit
corporation formed under the laws of the State of Washington; provided that from and
after the formation of such non-profit corporation, the rights and duties of the members of
such corporation shall continue to be governed by the provisions of this Declaration.
3.2. MEMBERSHIP.
3.2.1. Qualification. Each Owner (including Declarant) shall be a
member of the Association and shall be entitled to one membership for each Lot so
owned; provided that if a Lot has been sold on contract, the contract purchaser shall
exercise the rights of the Lot Owner for the purposes of the Association, this Declaration
and the Bylaws, except as hereinafter limited, and shall be the voting representative
unless otherwise specified. Ownership of a Lot shall be the sole qualification for
membership in the Association.
3.2.2. Transfer. The Association membership of each Owner
(including Declarant) shall be appurtenant to the Lot giving rise to such membership, and
shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any
way except upon transfer of the title to said Lot, and then only to the transferee of title to
such Lot. Any attempt to make a prohibited transfer shall be void. Any transfer of title
to a Lot shall operate automatically to transfer the membership in the Association to the
new Owner of such Lot.
3.3. VOTING.
3.3.1. Number of Votes. The Association shall have two classes of
voting membership:
(a) Class A. Class A members shall be all Owners with the
exception of Declarant. Each Owner shall be entitled to one vote for each Lot
owned.
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(b) Class B. The Class B member shall be the Declarant who
shall be entitled to three (3) votes for each Lot owned. The Class B membership
shall cease and be converted to Class A membership upon expiration of the
Declarant Control Period.
3.3.2. Voting Owner. There shall be one (1) voting representative of
each Lot. Declarant shall be considered an “Owner” and shall be the voting
representative with respect to any Lot owned by Declarant. If a person (including
Declarant) owns more than one Lot, the person shall have the votes for each Lot owned.
The voting representative shall be designated by the Owner but need not be an Owner.
The designation shall be revocable at any time by actual notice to the Association from a
party having an ownership interest in a Lot, or by actual notice to the Association of the
death or judicially declared incompetency of any person with an ownership interest in the
Lot. This power of designation and revocation may be exercised by the guardian of an
Owner, and the administrators or executors of an Owner’s estate. Where no designation
is made, or where a designation has been made but is revoked and no new designation
has been made, the voting representative of each Lot shall be the group composed of all
of its Owners.
3.3.3. Joint Owner Disputes. The vote of a Lot must be cast as a
single vote, and fractional votes shall not be allowed. In the event that joint Owners are
unable to agree among themselves as to how their votes shall be cast, they shall lose their
right to vote on the matter in question. In the event more than one vote is cast for a
particular Lot, none of said votes shall be counted and said votes shall be deemed void.
3.3.4. Pledged Votes. If an Owner is in default under a first Mortgage
on a Lot for ninety (90) consecutive days or more, the Mortgagee shall automatically be
authorized to declare at any time thereafter that the Owner has pledged his or her vote on
all issues to the Mortgagee during the continuation of the default. If the Association has
been notified of any such pledge to a Mortgagee, or in the event the record Owner or
Owners have otherwise pledged their vote regarding special matters to a Mortgagee under
a fully recorded mortgage, or to the vendor under a duly recorded real estate contract,
only the vote of such Mortgagee or vendor will be recognized in regard to the special
matters upon which the vote is so pledged, if a copy of the instrument with this pledge
has been filed with the Association. Amendments to this section shall only be effective
upon the written consent of all of the voting Owners and their respective Mortgagees and
vendors, if any.
3.4. MEETINGS, AUDITS, NOTICES OF MEETINGS.
3.4.1. Annual Meetings, Audits. There shall be an annual meeting of
the Owners in the first quarter of each calendar year, or such other fiscal year as may be
adopted by the Association, at such reasonable place and time as may be designated by
written notice of the Association delivered to the Owners no less than fourteen (14) nor
more than sixty (60) days prior to the date fixed for said meeting. At the annual meeting,
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there shall be presented a report of the itemized receipts and disbursements for the
preceding fiscal year, and allocation thereof to each Owner, and the estimated expenses,
if any, for the Association for the coming fiscal year. Any Owner, at the Owner’s own
expense, may at any reasonable time make an audit of the books of the Association.
3.4.2. Special Meetings. Special meetings of the Owners may be
called at any time for the purpose of considering matters which by the terms of this
Declaration require the approval of all or some of the Owners, or for any other reasonable
purpose. Such meeting shall be called by the petition of Owners holding not less than
10% of the Class A votes or as otherwise provided in the Bylaws. Such notice shall be
delivered not less than fourteen (14) nor more than sixty (60) days prior to the date fixed
for said meeting. The notice shall specify the date, time and place of the meeting, and in
general the matters to be considered.
3.4.3. Quorum Requirements for Association Meeting. At all
meetings of the Owners, 25% of the Owners present in person or by proxy shall
constitute a quorum. A majority of Owners present and entitled to vote, either in person
or by proxy, shall be sufficient for the passage of any motion or the adoption of any
resolution, except in connection with amendment or repeal of this Declaration. If the
required quorum is not present, another meeting may be called subject to the requirement
of written notice sent to all members at least ten (10) days in advance of such meeting. In
the absence of a quorum of a members’ meeting, a majority of those present in person or
by proxy may adjourn the meeting to another time but may not transact any other
business. An adjournment for lack of a quorum shall be to a date not less than five (5)
nor more than thirty (30) days from the original meeting date.
3.5. BYLAWS OF ASSOCIATION.
3.5.1. Adoption of Bylaws. Bylaws for the administration of the
Association and the Property, and for other purposes not inconsistent with the intent of
this Declaration shall be adopted by the Declarant as the original Owner of the Lots.
Subsequent amendments may be adopted by the Association as provided therein.
3.5.2. Bylaws Provisions. The Bylaws shall contain provisions
substantially as provided for in this Article 3 and in Article 4, and may contain
supplementary, not inconsistent, provisions regarding the operation and administration of
the Property. The Bylaws shall establish the provisions for quorum, ordering of
meetings, and details regarding the giving of notices as may be required for the proper
administration of the Association and the Community.
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ARTICLE 4.
MANAGEMENT OF THE ASSOCIATION
4.1. INTERIM BOARD OF DIRECTORS. Until expiration of the Declarant
Control Period, the affairs of the Association shall be governed by a board of three (3)
directors (who need not be Lot Owners) named by Declarant from time to time or as
otherwise provided in the Bylaws.
4.2. MANAGEMENT BY ELECTED BOARD OF DIRECTORS. Upon expiration of
the Declarant Control Period, administrative power and authority shall vest in a board of
five (5) directors elected from among the Owners. The Board may delegate all or any
portion of its administrative duties to a manager, managing agent, or officer of the
Association. All Board positions shall be open for election at said organizational
meeting. The Board shall elect from among its members, a president (who shall preside
over meetings of the Board and the meetings of the Association), a secretary and a
treasurer, all of which officers shall have such duties and powers as may be specified by
the Board from time to time.
4.3. AUTHORITY AND DUTIES OF THE BOARD. The Board, for the benefit of
the Community and the Owners, shall enforce the provisions of this Declaration, shall
have all powers and authority permitted to the Board under this Declaration, and shall
acquire and shall pay for out of the Common Expense fund hereinafter provided for, all
goods and services requisite for the proper functioning of the Community. Without
limitation, the Board shall have the following powers and authority:
4.3.1. Assessments. The establishment and collection of Assessments
pursuant to Article 5 of this Declaration.
4.3.2. Services. Obtaining the services of persons or firms as required
to properly manage the affairs of the Community to the extent deemed advisable by the
Board, including legal and accounting services, property management services, as well as
such other personnel as the Board shall determine are necessary or proper for the
operation of the Community.
4.3.3. Utilities. Obtaining all utility services (i) commonly metered for
the townhomes constructed on the Lots (and providing for the submetering of such
utilities for payment by the Owners where applicable) and (ii) as necessary for the
Common Areas.
4.3.4. Garbage and Recycling. Obtaining and paying for all garbage
and recycling services for the townhomes constructed on the Lots.
4.3.5. Insurance. Obtaining and paying for policies of insurance or
bonds as provided by this Declaration.
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4.3.6. Maintenance/Repair. Performing and paying for maintenance,
repair and replacement of Common Areas as well as Exterior Maintenance (as defined in
Section 6.2 below) on Lots as provided herein.
4.4. BOARD ORGANIZATION AND OPERATION.
4.4.1. Election of Board of Directors and Terms of Office. Upon
expiration of the Declarant Control Period, the Owners shall elect three Directors for two
(2) year terms and two Directors for a one (1) year term to assure that the expiration dates
for the term of the Board members are staggered. Thereafter, all Directors shall be
elected for two (2) year terms.
4.4.2. Vacancies. Vacancies in the Board caused by any reason other
than the removal of a Board member by a vote of the Association shall be filled by vote
of the majority of the remaining Board members, even though they may constitute less
than a quorum; and each person so elected shall be a Board member until a successor is
elected at the next annual meeting of the Association.
4.4.3. Removal of Board Members. At any regular meeting or at any
special meeting called for that purpose, any one or more of the Board members may be
removed with or without cause, by a majority of all of the Owners, and a successor may
then and there be elected to fill the vacancy thus created. Any Board member whose
removal has been so proposed by the Owners shall be given an opportunity to be heard at
the meeting. Notwithstanding the above, until the organizational meeting, only Declarant
shall have the right to remove a Board member.
4.4.4. Organizational Meeting. The first meeting of a newly elected
Board shall be held immediately following the annual organizational meeting of the
Association, and no notice shall be necessary to the newly elected Board members in
order legally to constitute such meeting.
4.4.5. Regular Meeting. Regular meetings of the Board may be held at
such time and place as shall be determined, from time to time, by a majority of the Board
members, but at least two such meetings shall be held during each fiscal year and one
such meeting shall be held immediately following the annual meeting of Owners. Notice
of regular meetings of the Board shall be given to each Board member as and when
provided in the Bylaws.
4.4.6. Special Meetings. Special meetings of the Board may be called
by the President or at least two Board members with notice given to each Board member
as and when provided in the Bylaws.
4.5. PROFESSIONAL MANAGEMENT. Any contract with a professional
manager for the Community (i) shall have a term no longer than one (1) year, (ii) may be
renewed by agreement of the Association and the manager for successive one (1) year
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periods and (iii) shall require the manager to carry insurance as deemed appropriate by
the Board.
ARTICLE 5.
ASSOCIATION FINANCES
5.1. BUDGETING AND ALLOCATING COMMON EXPENSES. At least sixty (60)
days before the beginning of each fiscal year, the Board shall prepare a budget of the
estimated Common Expenses for the coming year, including any contributions to be
made to a reserve fund. The budget shall reflect the sources and estimated amounts of
funds to cover such expenses, which may include any surplus to be applied from prior
years, any income expected from sources other than assessments levied against the Lots,
and the amount to be generated through the levy of Base Assessments and Special
Assessments against the Lots.
5.1.1. The Association is hereby authorized to levy assessments equally
against all Lots subject to assessment hereunder to fund the Common Expenses (each a
“Base Assessment”). In determining the Base Assessment rate per Lot, the Board may
consider any assessment income expected to be generated from any additional Lots
reasonably anticipated to become subject to assessment during the fiscal year.
5.1.2. Declarant may, but shall not be obligated to, reduce the Base
Assessment for any fiscal year by payment of a subsidy, which may be either a
contribution, an advance against future assessments due from Declarant, or a loan, in
Declarant’s discretion. Any such subsidy shall be disclosed as a line item in the income
portion of the budget. Payment of such subsidy in any year shall not obligate Declarant
to continue payment of such subsidy in future years, unless otherwise provided in a
written agreement between the Association and Declarant.
5.1.3. Within thirty (30) days after the adoption of a final budget by the
Board, the Board shall send to each Owner a copy of the final budget, notice of the
amount of the Base Assessment to be levied pursuant to such budget, and notice of a
meeting to consider ratification of the budget. Such meeting shall be held not less than
fourteen (14) nor more than sixty (60) days from the mailing of such materials. The
budget and assessment shall be ratified unless disapproved at a meeting by Members
representing at least 51% of the Total Association Vote. Such ratification shall be
effective whether or not a quorum is present.
5.1.4. If any proposed budget is disapproved or the Board fails for any
reason to determine the budget for any year, then the budget most recently in effect shall
continue in effect until a new budget is determined.
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5.1.5. The Board may revise the budget and adjust the Base Assessment
from time to time during the year, subject to the notice requirements and the right of the
Members to disapprove the revised budget as set forth above.
5.2. BUDGETING FOR RESERVES. The Board shall prepare and periodically
review a reserve budget for the Common Areas and for Exterior Maintenance
requirements. The reserve budget shall take into account the number and nature of
replaceable assets, the expected life of each asset and the expected repair or replacement
cost. The Board shall include in the budget, a capital contribution to fund reserves in an
amount sufficient to meet the projected need with respect both to amount and timing.
5.3. SPECIAL ASSESSMENTS. In addition to other authorized assessments, the
Association may levy separate assessments to cover unbudgeted expenses or expenses in
excess of those budgeted (each a “Special Assessment”). Except as otherwise
specifically provided in this Declaration, any Special Assessment shall require the
affirmative vote or written consent of Owners representing more than 50% of the Total
Association Vote. Special Assessments shall be payable in such manner and at such
times as determined by the Board, and may be payable in installments extending beyond
the fiscal year in which the Special Assessment is approved.
5.4. SPECIFIC ASSESSMENTS. The Association shall have the power to levy
specific assessments against a particular Lot (each a “Specific Assessment”) as follows:
(a) to cover the costs, including overhead and administrative costs,
of providing services to Lots upon request of an Owner pursuant to any menu of special
services which may be offered by the Association. Specific Assessments for special
services may be levied in advance of the provision of the requested service; and
(b) to cover costs incurred in bringing the Lot into compliance with
the Governing Documents, or costs incurred as a consequence of the conduct of the
Owner or occupants of the Lot, their agents, contractors, employees, licensees, invitees,
or guests, including any such costs related to maintenance, repair or replacement of the
exteriors of improvements or of utilities or other systems serving such improvements;
provided, the Board shall give the Lot Owner prior written notice and an opportunity for
a hearing, in accordance with the Bylaws, before levying any Specific Assessment under
this subsection (b).
5.5. AUTHORITY TO ASSESS OWNERS. Declarant hereby establishes and the
Association is hereby authorized to levy assessments as provided for in this Article and
elsewhere in this Declaration. The obligation to pay assessments shall commence as to
each Lot, after the Board first determines a budget and levies assessments, and after the
Lot is first conveyed to an Owner by Declarant. The first annual Base Assessment levied
on each Lot shall be adjusted according to the number of months remaining in the fiscal
year at the time assessments commence on the Lot.
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5.6. TIME OF PAYMENT. Assessments shall be paid in such manner and on
such dates as the Board may establish. The Board may require advance payment of
assessments at closing of the transfer of title to a Lot and impose special requirements for
Owners with a history of delinquent payment. If the Board so elects, annual assessments
may be paid in monthly or quarterly installments. If any Owner is delinquent in paying
any assessments or other charges levied on the Owner’s Lot, the Board may require the
outstanding balance on all assessments to be paid in full immediately.
5.7. OBLIGATION FOR ASSESSMENTS.
5.7.1. Personal Obligation. Each Owner, by accepting a deed or
entering into a recorded contract of sale for any portion of the Property, is deemed to
covenant and agree to pay all assessments authorized herein. All assessments, together
with interest (computed from its due date at a rate of 12% per annum or such higher rate
as the Board may establish, subject to the limitations of Washington law), late charges as
determined by Board resolution, costs and reasonable attorneys’ fees, shall be the
personal obligation of each Owner and a lien upon each Lot until paid in full. Upon a
transfer of title to a Lot, the grantee shall be jointly and severally liable for any
assessments and other charges due at the time of conveyance.
(a) Failure of the Board to fix assessment amounts or rates or
to deliver or mail each Owner an assessment notice shall not be deemed a waiver,
modification, or a release of any Owner from the obligation to pay assessments.
In such event, each Owner shall continue to pay Base Assessments on the same
basis as during the last year for which an assessment was made, if any, until a new
assessment is levied, at which time the Association may retroactively assess any
shortfalls in collections.
(b) No Owner is exempt from liability for assessments by non-
use of Common Areas, abandonment of the Owner’s Lot, or any other means.
The obligation to pay assessments is a separate and independent covenant on the
part of each Owner. No diminution or abatement of assessments or setoff shall be
claimed or allowed for any alleged failure of the Association or Board to take
some action or perform some function required of it, or for inconvenience or
discomfort arising from the making of repairs or improvements, or from any other
action it takes.
(c) Upon written request, the Association shall furnish to any
Owner liable for any type of assessment a certificate in writing signed by an
Association officer setting forth whether such assessment has been paid. Such
certificate shall be conclusive evidence of payment. The Association may require
the advance payment of a reasonable processing fee for the issuance of such
certificate.
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5.7.2. Declarant’s Option to Fund Budget Deficits. During the
Declarant Control Period, Declarant may satisfy its obligation for assessments, if any, on
Lots which it owns either by paying such assessments in the same manner as any other
Owner or by paying the difference between the amount of assessments levied on all other
Lots subject to assessment and the amount of actual expenditures by the Association
during the fiscal year. Unless Declarant otherwise notifies the Board in writing at least
sixty (60) days before the beginning of each fiscal year, Declarant shall be deemed to
have elected to continue paying on the same basis as during the immediately preceding
fiscal year. Regardless of Declarant’s election, Declarant’s obligations hereunder may be
satisfied in the form of cash or by “in kind” contributions of services or materials, or by a
combination of these. After termination of the Declarant Control Period, Declarant shall
pay assessments on its unsold Lots in the same manner as any other Owner.
5.8. LIEN FOR ASSESSMENTS. The Association shall have a lien against each
Lot to secure payment of delinquent assessments, as well as interest, late charges (subject
to the limitations of Washington law) and costs of collection (including attorneys’ fees).
Such lien shall be superior to all other liens, except (a) the liens of all taxes, bonds,
assessments and other levies which by law would be superior and (b) the lien or charge of
any recorded first Mortgage (meaning any recorded Mortgage with first priority over
other Mortgages) made in good faith and for value. Such lien, when delinquent, may be
enforced by suit, judgment and judicial or nonjudicial foreclosure.
5.8.1. The Association may bid for the Lot at the foreclosure sale and
acquire, hold, lease, mortgage and convey the Lot. While a Lot is owned by the
Association following foreclosure: (a) no right to vote shall be exercised on its behalf;
(b) no assessment shall be levied on it; and (c) each other Lot shall be charged, in
addition to its usual assessment, its pro rata share of the assessment that would have been
charged such Lot had it not been acquired by the Association. The Association may sue
for unpaid assessments and other charges authorized hereunder without foreclosing or
waiving the lien securing the same.
5.8.2. Sale or transfer of any Lot shall not affect the assessment lien or
relieve such Lot from the lien for any subsequent assessments. However, the sale or
transfer of any Lot pursuant to foreclosure of the first Mortgage shall extinguish the lien
as to any installments of such assessments due prior to the Mortgagee’s foreclosure. The
subsequent Owner to the foreclosed Lot shall not be personally liable for assessments on
such Lot due prior to such acquisition of title. Such unpaid assessments shall be deemed
to be Common Expenses collectible from Owners of all Lots subject to assessment under
Section 4.6, including such acquirer, its successors and assigns.
5.9. EXEMPT PROPERTY. The following property shall be exempt from
payment of Base Assessments and Special Assessments:
(a) Any property dedicated or conveyed to and accepted by any
governmental entity or public utility; and
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(b) Property owned by the Association for the common use and
enjoyment of such Associations’ members.
5.10. CAPITALIZATION OF ASSOCIATION. Upon acquisition of record title to a
Lot by the first Owner thereof other than Declarant, a contribution shall be made by or on
behalf of the purchaser to the working capital of the Association in an amount equal to
one-sixth of the annual Base Assessment per Lot for that year. This amount shall be in
addition to, not in lieu of, the annual Base Assessment and shall not be considered an
advance payment of such assessment. This amount shall be deposited into the purchase
and sales escrow and disbursed therefrom to the Association for use in covering operating
expenses and other expenses incurred by the Association pursuant to this Declaration and
the Bylaws.
ARTICLE 6.
MAINTENANCE; CONVEYANCE OF COMMON AREAS TO ASSOCIATION
6.1. ASSOCIATION’S RESPONSIBILITY FOR COMMON AREAS. The Association
shall maintain and keep in good repair the Common Areas. This maintenance shall
include, without limitation, maintenance, repair and replacement, subject to the
availability of insurance proceeds, of all landscaping and improvements situated on the
Common Areas.
6.2. ASSOCIATION’S RESPONSIBILITY FOR EXTERIOR MAINTENANCE. In
order to preserve a uniform exterior appearance of the buildings and other improvements
constructed within the Community, the Association shall provide for the repair and
painting of exterior portions of such buildings, including the repair of any non-painted
materials such as brick or metal; provided, however, that repair and maintenance of the
concrete steps and landings at the front entry of each residence shall be the responsibility
of the Owner thereof. Furthermore, the Association shall provide for the repair and
replacement of the roofing surface, and the maintenance, repair and replacement of any
cladding, of such buildings. In addition, the Association shall provide for care and
maintenance of all landscaping on each Lot except for landscaping within any deck, patio
or porch, which shall be the sole responsibility of the Owner of such Lot. (All such
activities of the Association are collectively referred to herein as the “Exterior
Maintenance”.) No Owner may modify the exterior of their home or the screens, doors,
awnings or other portions of their home visible from outside the home without the prior
written consent of the Board or in accordance with the rules and regulations of the
Association. In particular, except as otherwise provided by law, including any and all
applicable federal, state, city, and municipal laws, rules and regulations, no portion of any
solar panel, radio or television antenna, satellite dish or other appliance may be installed
on the exterior of a home without the prior written consent of the Board which shall not
be unreasonably withheld. The Owner shall not replace the glass or screens in the
windows or doors of their homes except with materials of similar color and quality to
those originally installed.
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6.2.1. Exterior Maintenance shall be performed at such time as the
Board considers necessary to preserve and protect the appearance and condition of the
townhomes within the Community as part of a systematic program based on the
estimated useful life of the roofing surface and exterior painting.
6.2.2. Except as otherwise provided in Section 6.2.1 or elsewhere in this
Declaration, the cost of the Exterior Maintenance shall constitute a Common Expense, for
which the Board shall create and maintain from the regular Assessments a reserve fund
for the estimated future cost of such Exterior Maintenance work. The reserve fund so
created shall be the primary source of payment for the Exterior Maintenance, but if the
reserve fund should at anytime prove insufficient, a Special Assessment shall be levied to
cover any such insufficiency.
6.2.3. Yard and landscaping maintenance performed by the Association
on each Lot shall include grass cutting, garden-bed weeding and tree and shrub
replacement in the area more particularly depicted on the attached EXHIBIT B. Such
work shall, however, exclude any landscaping or plantings within any deck, patio or
porch area. The cost of yard and landscaping maintenance shall be a Common Expense.
6.3. ASSOCIATION’S RESPONSIBILITY FOR MAINTENANCE OF UTILITIES AND
SYSTEMS. Certain utilities such as water, sewer and natural gas and systems such as fire
alarm systems and sprinkler systems may serve more than one home within the
Community and pipes, wires, conduits and other facilities may pass through the homes in
providing such services. Accordingly, the Association shall provide the ordinary
maintenance, repair and replacement of such utilities and services.
6.4. VIDEO MONITORING. The Association shall have the right, but not the
obligation, to install monitoring or surveillance facilities and equipment.
6.5. OTHER ASSOCIATION MAINTENANCE PROVISIONS.
6.5.1. The Association shall have the right, but not the obligation, to
maintain other property not owned by the Association, whether within or without the
Community, where the Board has determined that such maintenance would benefit all
Owners.
6.5.2. In the event that the Association determines that the need for
maintenance, repair, or replacement, which is the responsibility of the Association
hereunder, is caused through the willful or negligent act of an Owner, or the family,
guests, lessees or invitees of any Owner, and is not covered or paid for by insurance, in
whole or in part, then the Association may perform such maintenance, repair or
replacement at such Owner’s sole cost and expense, and all costs thereof shall be added
to and become a part of the assessment to which such Owner is subject and shall become
a lien against the Lot of such Owner.
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6.5.3. All maintenance undertaken by the Association shall be
performed consistent with the Community-Wide Standard.
6.6. OWNER’S RESPONSIBILITY. Except for the maintenance, repair or
replacement responsibilities undertaken by the Association pursuant to Sections 6.2
and 6.3 above, each Owner is responsible for maintenance, repair and replacement of the
Owner’s home, any portions of the Lot or improvements thereon (including, but not
limited to, porches, decks and patios) not made subject to maintenance, repair and
replacement by the Association herein. Each Owner shall, at the Owner’s sole expense,
keep the interior of the Owner’s home and its equipment, appliances and appurtenances
in a clean and sanitary condition, free of rodents and pests, and good order, condition and
repair and shall do all redecorating and painting at anytime necessary to maintain the
good appearance and condition of the home.
6.6.1. Each Owner shall replace any broken glass in the windows or
exterior doors of the Owner’s home.
6.6.2. Each Owner shall be responsible for the maintenance, repair or
replacement of any plumbing fixtures, water heaters, air-conditioning units, fans and
heating equipment which serve the Owner’s home.
6.6.3. In the event that the Board of Directors of the Association
determines that any Owner has failed or refused to discharge properly any of such
Owner’s obligations with regard to the maintenance, repair, or replacement of items for
which such Owner is responsible hereunder, the Association shall, except in an
emergency situation, give the Owner written notice of the Association’s intent to provide
such necessary maintenance, repair or replacement at the Owner’s sole cost and expense.
The notice shall set forth with reasonable particularity the maintenance, repairs, or
replacement deemed necessary. The Owner shall have ten (10) days after receipt of such
notice within which to complete such maintenance, repair or replacement, or, in the event
that such maintenance, repair or replacement is not capable of completion within a ten
(10) day period, to commence such work which shall be completed within a reasonable
time. If any Owner does not comply with the provisions hereof, the Association may
provide any such maintenance, repair or replacement at such Owner’s sole cost and
expense, and all costs shall be added to and become a part of the assessment to which
such Owner is subject and shall become a lien against the Lot.
6.7. CONVEYANCE OF COMMON AREAS BY DECLARANT TO ASSOCIATION.
The Declarant may transfer or convey to the Association any personal property and any
improved or unimproved real property, leasehold, easement, or other property interest.
Such conveyance shall be accepted by the Association, and the property shall thereafter
be Common Areas to be maintained by the Association for the benefit of all or a part of
its Members.
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6.8. MAINTENANCE INSPECTIONS. The Association and the Owners shall each
perform their respective maintenance and repair obligations hereunder in accordance with
any maintenance schedules and recommendations provided by Declarant and, in the
absence of any such schedules or recommendations, in accordance with industry
standards.
6.8.1. Within 18 months after the date this Declaration is recorded and
annually thereafter, the Association shall have the Common Areas (which for purposes of
this Section 6.8 shall specifically include all areas of the Property for which the
Association has maintenance responsibility) inspected by a qualified engineer or architect
(the “Inspector”), to ascertain the physical condition of the Common Areas and
structures, and to determine whether any different or additional maintenance, repairs or
replacements are necessary. (Any such Inspector shall have not less than five years of
experience in performing inspections of similar residential developments.) The
inspection shall cover, at a minimum, whether the regularly scheduled maintenance has
been performed since the prior inspection, and ascertain the condition of the exterior
weather-proofing elements of Property including the roof, siding, gutters, downspouts,
flashing systems, caulking, deck membranes, exterior windows and doors, and all major
building systems which serve all of the Property.
6.8.2. Promptly after completion of the inspection, the Inspector shall
prepare a written report of the inspection directed to the Board (the “Inspection Report”).
Until the expiration of all warranties given by Declarant and the time period for filing any
claims against Declarant, the Board shall promptly send a copy of each Inspection Report
to Declarant at the following address:
Tottenham, LLC
50 116th Ave SE, Suite 111
Bellevue, WA 98004
or to such other address as Declarant may designate by notice to the Association.
6.8.3. If the Board fails to furnish an Annual Inspection Report for any
year, as required above, or if the Annual Inspection Report is insufficient, then Declarant
shall have the right, but not the obligation, upon 10 days’ notice to the Association, to
have the Common Areas inspected at the cost of the Association. Declarant shall furnish
a copy of its report to the Board.
ARTICLE 7.
USE RESTRICTIONS AND RULES
7.1. GENERAL. This Article sets out certain use restrictions which must be
complied with by all Owners and Occupants. The Board may, from time to time, without
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consent of the Members, promulgate, modify or delete other use restrictions and rules and
regulations applicable to the Community so long as any such restrictions, rule or
regulation is not contrary to the terms of this Declaration. Such use restrictions and rules
shall be distributed to all Owners and Occupants prior to the date that they are to become
effective and shall thereafter be binding upon all Owners and Occupants until and unless
overruled, canceled or modified in a regular or special meeting by a majority of the Total
Association Vote.
7.2. RESIDENTIAL USE. All Lots shall be used for residential purposes
exclusively. No business or business activity shall be carried on, in or upon any Lot at
any time except that an Owner or occupant of a Lot may conduct business activities
within the Lot so long as: (a) the existence or operation of the business activity is not
apparent or detectable by sight, sound, or smell from outside the Lot; (b) the business
activity conforms to all zoning requirements; (c) the business activity does not involve
regular visitation of the Lot by clients, customers, suppliers, or other business invitees or
door-to-door solicitation of residents of the Community; and (d) the business activity is
consistent with the residential character of the Community and does not constitute a
nuisance, or a hazardous or offensive use, or threaten the security or safety of other
residents of the Community, as may be determined in the Board’s sole discretion. This
Section 7.2 shall not apply to any activity conducted by the Declarant or a builder
approved by the Declarant with respect to its development and sale of any Lot.
7.3. ARCHITECTURAL STANDARDS. No exterior construction, alteration
(including a change of color), addition, or erection of any nature whatsoever and no
alteration of the landscaping or other work which alters the exterior appearance of any
structure on a Lot shall be commenced or placed upon any part of the Community, except
such as is installed by the Declarant, or as is approved by the Architectural Review
Committee of the Association (“ARC”). (Until the establishment of an ARC by the
Board of Directors, the Board shall serve as the ARC.) In the event the ARC fails to
approve, modify or disapprove in writing an application within sixty (60) days after plans
and specifications have been submitted to it, the approval of the ARC will be deemed
granted. The ARC (or the Board of Directors acting as the ARC) shall adopt procedures
and policies governing submission of applications for the approval of plans and
specifications for any such alterations. No improvement, alteration or repair of any
improvements on a Lot shall be made until the Owner thereof has obtained all necessary
governmental permits and approvals and any such work shall be performed in compliance
therewith.
7.4. SIGNS. No sign of any kind shall be erected by an Owner or Occupant
within the Community without the prior written consent of the Board. Notwithstanding
the foregoing, the Declarant shall have the right to erect signs without obtaining prior
consent of the Board. “For Sale” and “For Rent” signs and security signs consistent with
the Community-Wide Standard and any signs required by legal proceedings may be
erected upon any Lot. The provisions of this Section shall not apply to any Person
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holding a Mortgage who becomes the Owner of any Lot as purchaser at a judicial or
foreclosure sale conducted with respect to a first Mortgage or as transferee pursuant to
any proceeding in lieu thereof.
7.5. OCCUPANTS BOUND. All provisions of the Governing Documents which
govern the conduct of Owners and which provide for sanctions against Owners shall also
apply to all Occupants even though Occupants are not specifically mentioned. Fines may
be levied against Owners or Occupants. If a fine is first levied against an Occupant and is
not paid timely, the fine may then be levied against the Owner.
7.6. NUISANCE. Except for the exterior maintenance responsibilities of the
Association, it shall be the responsibility of each Owner and Occupant to prevent the
development of any unclean, unhealthy, unsightly or unkempt condition on his or her Lot.
No property within the Community shall be used, in whole or in part, for the storage of
any property or thing that will cause such Lot to appear to be in an unclean or untidy
condition or that will be obnoxious to the eye; nor shall any substance, thing or material
be kept that will emit foul or obnoxious odors or that will cause any noise or other
condition that will or might disturb the peace, quiet, safety, comfort or serenity of the
occupants of surrounding property. No noxious or offensive activity shall be carried on
within the Community, nor shall anything be done tending to cause embarrassment,
discomfort, annoyance, or nuisance to any Person using any property within the
Community. No plant or animal or device or thing of any sort shall be kept on any Lot
whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant or
of a nature as may diminish or destroy the enjoyment of the Community. Without
limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or
other sound device, except such devices as may be used exclusively for security
purposes, shall be located, installed or maintained upon the exterior of any Lot unless
required by law.
7.7. SUBDIVISION OF LOT. No Lot shall be subdivided or its boundary lines
changed except with the prior written approval of the Board and the City of Renton.
Declarant, however, hereby expressly reserves the right to replat any Lot or Lots owned
by Declarant. Any such division, boundary line change or replatting shall not be in
violation of the applicable subdivision and zoning regulations.
7.8. FENCES. No fence or fencing type barrier of any kind shall be placed,
erected, allowed or maintained upon any portion of the Community, including any Lot,
without the prior written consent of the ARC.
7.9. AIR-CONDITIONING UNITS. Except as may be permitted by the ARC, no
air-conditioning units may be installed. Any air-conditioning unit approved by the ARC
shall only be installed in on the rear patio of the Unit and shall not exceed 72 decibels
when operating. Installation of any such air-conditioning unit shall be performed by a
professional air-conditioning contractor licensed and bonded in the State of Washington.
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Any leakage into the Unit or other damage resulting from penetrations needed for
installation of the air-conditioning unit shall be the sole responsibility of the Owner.
7.10. PRIVATE AREA DÉCOR. Except as may be permitted by the ARC, no
outdoor or garden items, including, but not limited to, statues, grills, furniture, and hot
tubs, shall be placed, erected, allowed or maintained, upon any portion of the
Community, including any Lot, except for items located solely within the deck, patio or
porch area of a Lot, subject to such restrictions as may be established by the Board.
Potted plants are permissible on porches, decks and patios so long as they (a) do
not interfere with the use of any shared area by another Owner, (b) are consistent with the
Community-Wide Standard, (c) do not contain plants which have been prohibited by the
Board of Directors and (d) do not contain plants which are hazardous or lethal to humans
or pets. Such potted plants must be pruned, maintained and otherwise kept in a neat
condition as consistent with the Community-Wide Standard.
7.11. LIGHTING. Except as may be permitted by the ARC, exterior lighting
visible from the street shall not be permitted except for (a) approved lighting as originally
installed on a Lot or (b) seasonal decorative lights, subject to such restrictions as may be
established by the Board.
7.12. MAILBOXES. All mailboxes serving the Lots shall be clustered in a kiosk
style as originally installed by Declarant or as otherwise approved by the ARC and
Postmaster.
7.13. VEHICLES. No parking or storage of boats, trailers, commercial trucks,
campers, recreational vehicles, other equipment or devices or inoperable vehicles shall be
permitted on the Property nor shall any vehicle be parked so as to block or hinder ingress
to or egress from the parking stalls located on the Lot of each Owner.
7.14. PETS. No more than two (2) household pets may be kept on a Lot at
anytime and then only when in compliance with rules and regulations adopted by the
Board. The Board may at anytime require the removal of any such pet that it concludes is
disturbing any other Owner through noise or other behavior. The Board may exercise
this authority with regard to specific pets even though other pets are permitted to remain
on the Property.
7.15. GARBAGE. Owners shall regularly dispose of their garbage and other
debris in facilities designated therefor by the Association. Disposal of garbage and
recycling of materials shall be subject to such rules and regulations as may be adopted by
the Association.
7.16. EXTERIOR SECURITY DEVICES. No exterior security devices, including,
without limitation, window bars, shall be permitted on any Lot. Signs placed on the Lot
or the exterior of the residence stating that such residence is protected by a security
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system shall not be deemed to constitute an exterior security device, provided that such
signs are approved by the ARC.
7.17. GUEST PARKING. Limited parking for guests of the Owners shall be
available in areas more particularly depicted on the attached EXHIBIT D. Guest parking
is not intended for regular use by the Owners or for any parking for more than twenty-
four (24) consecutive hours. Guest parking shall be subject to such rules and regulations
as may be adopted by the Association
ARTICLE 8.
INSURANCE AND CASUALTY LOSSES
8.1. GENERAL REQUIREMENTS. Commencing not later than the time of the
first conveyance of a Lot to an Owner by Declarant, the Association shall maintain, to the
extent reasonably available, a policy or policies and bonds necessary to provide
(a) property insurance, (b) commercial general liability insurance, (c) fidelity insurance,
(d) workers’ compensation insurance to the extent required by applicable laws,
(e) directors’ and officers’ liability insurance, and (f) such other insurance as the Board
deems advisable. The Board shall review at least annually the adequacy of the
Association’s insurance coverage. All insurance shall be obtained from insurance
carriers that are generally acceptable for similar projects, authorized to do business in the
state of Washington. Notwithstanding any other provisions herein, the Association shall
continuously maintain in effect insurance that meet the insurance requirements
established by FNMA, HUD, FHLMC and VA so long as any of them is a holder or
insurer of a Mortgage or Owner of a Lot, except to the extent such coverage is not
available or has been waived in writing by them. All such insurance policies shall
provide that coverage may not be cancelled or substantially reduced without at least thirty
(30) days’ prior written notice (ten (10) days for cancellation for nonpayment of
premium) to the Association.
8.2. PROPERTY INSURANCE; DEDUCTIBLE. The property insurance shall, at
the minimum and subject to such reasonable deductible as the Board may determine,
provide all risk or special cause of loss coverage in an amount equal to the full
replacement cost of the townhomes constructed on the Property, including the interior
partitions, equipment, fixtures, betterments and improvements installed by Declarant or
by Lot Owners and intended as a permanent part of any townhome. The policy shall be
written on an “all in” basis. The policy shall provide a separate loss payable endorsement
in favor of the Mortgagee of each Lot. In the discretion of the Board, the policy may
include earthquake coverage and coverage for improvements or betterments installed by
the Lot Owners. The Association or insurance trustee, if any, shall hold insurance
proceeds in trust for Owners and their Mortgagees, as their interests may appear.
Certificates of insurance shall be issued to each Owner and Mortgagee upon request.
Each Owner shall be responsible for damage or loss within Owner’s Lot up to the amount
of the deductible under the Association’s policy. Each Owner of a Lot shall promptly
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advise the Association in writing of any betterment or improvement intended as a
permanent part of the Lot costing $5,000 or more.
8.3. COMMERCIAL GENERAL LIABILITY INSURANCE. The liability insurance
coverage shall insure the Board, the Association, Owners, Declarant, and any managing
agent, with a “Severability of Interest Endorsement” or equivalent coverage that would
preclude the insurer from denying the claim of an Owner because of the negligent acts of
the Association or of another Owner, and shall cover liability of the insureds for property
damage, bodily injury, and death of persons arising out of the operation, maintenance,
and use of the Property, and such other risks as are customarily covered with respect to
residential projects of similar construction, location, and use. The limits of liability shall
be in amounts generally required by Mortgagees for projects of similar construction,
location and use, but shall be at least $1,000,000 combined single limit for bodily injury
and property damage per occurrence and $2,000,000 general aggregate.
8.4. INSURANCE TRUSTEE, POWER OF ATTORNEY. The named insured under
the policies referred to in Section 8.2 and Section 8.3 shall be the Association, as trustee
for each of the Owners in accordance with their respective interests. The insurance
proceeds may be made payable to any trustee with which the Association enters into an
insurance trust agreement, or any successor trustee, who shall have exclusive authority to
negotiate losses under the policies. Subject to the provisions of Section 8.8, the proceeds
must be disbursed first for the repair or restoration of the damaged property, and Lot
Owners and lienholders are not entitled to receive payment of any portion of the proceeds
unless there is a surplus of proceeds after the Property has been completely repaired or
restored. Each Owner appoints the Association, any insurance trustee or successor
trustee designated by the Association, as attorney in fact for the purpose of purchasing
and maintaining such insurance, including the collection and appropriate disposition of
the proceeds thereof, the negotiation of losses and execution of releases of liability, the
execution of all documents, and the performance of all other acts necessary to accomplish
such purposes.
8.5. ADDITIONAL POLICY PROVISIONS. The insurance obtained pursuant to
Section 8.2 and Section 8.3 shall contain the following provisions and limitations:
8.5.1. Each Lot Owner is an insured person under the policy with
respect to liability arising out of Owner’s interest in the Community or membership in the
Association.
8.5.2. Such policies shall not provide for contribution by or assessment
against Mortgagees or become a lien on the property superior to the lien of a first
Mortgage.
8.5.3. If, at the time of the loss under the policy, there is other insurance
in the name of Lot Owner covering the same risk covered by the policy, the Association’s
policy provides primary insurance.
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8.5.4. Coverage shall not be prejudiced by (a) any act, omission, or
neglect of the Owners of Lots when such act or neglect is not within the scope of
Owner’s authority on behalf of the Association, or (b) failure of the Association to
comply with any warranty or condition with regard to any portion of the premises over
which the Association has no control.
8.5.5. Such policies shall include a waiver of subrogation by the insurer
as to any and all claims against the Association, the Owner of any Lot, and/or their
respective agents, members of Owner’s household, employees, or lessees, and of any
defenses based upon co-insurance or upon invalidity arising from the acts of the insured.
8.5.6. A standard mortgagee clause that shall:
8.5.6.1. Provide that any reference to a mortgagee in the policy
shall mean and include all Mortgagees of any Lot or Lot lease or sublease in their
respective order of preference, whether or not named therein;
8.5.6.2. Provide that such insurance as to the interest of any
Mortgagee shall not be invalidated by any act or neglect of the Board or Owners
or any persons under any of them;
8.5.6.3. Waive any provision invalidating such mortgage clause by
reason of the failure of any Mortgagee to notify the insurer of any hazardous use
or vacancy, any requirement that the Mortgagee pay any premium thereon, and
any contribution clause; and
8.5.6.4. Provide that, without affecting any protection afforded by
such mortgagee clause, any proceeds payable under such policy shall be payable
to the Association or the insurance trustee.
8.6. FIDELITY INSURANCE. The required fidelity insurance shall afford
coverage to protect against dishonest acts on the part of officers, directors, trustees, and
employees of the Association and all other persons who handle or are responsible for
handling funds of, or administered by, the Association. The managing agent, if any, shall
maintain fidelity insurance for its officers, employees, and agents who handle or who are
responsible for handling funds of, or administered by, the Association.
8.7. OWNERS’ INDIVIDUAL INSURANCE. An insurance policy issued to the
Association does not prevent an Owner from obtaining insurance for the Owner’s own
benefit and Owner is encouraged to do so. Regardless of whether an Owner has obtained
such insurance, the Owner shall be responsible for any damage or loss to the Owner’s Lot
and improvements constructed thereon up to the amount of the deductible of the
Association’s property insurance.
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8.8. USE OF INSURANCE PROCEEDS. Any portion of the Community for which
insurance is required under this Article which is damaged or destroyed shall be repaired
or replaced promptly by the Association pursuant to Article 9 unless (a) repair or
replacement would be illegal under any state or local health or safety statute or ordinance,
or (b) 80% of the Lot Owners, including every Owner of a Lot which will not be rebuilt
and Declarant if it is the Owner of a Lot, vote not to rebuild. The cost of repair or
replacement in excess of the deductible, insurance proceeds and available reserves shall
be a common expense of the Owners. Each Lot Owner shall be responsible for the
amount of the deductible applicable to damage or loss within the Owner’s Lot. If all of
the damaged or destroyed portions of the Community are not repaired or replaced, (i) the
insurance proceeds attributable to the damaged Property shall be used to restore the
damaged area to a condition compatible with the remainder of the Property; (ii) the
insurance proceeds attributable to Lots which are not rebuilt shall be distributed to the
Owners of those Lots, or to lienholders, as their interests may appear; and (iii) the
remainder of the proceeds shall be distributed to all the Lot Owners or lienholders, as
their interests may appear, in proportion to the Allocated Interest in Property appertaining
to the Owner’s Lot.
ARTICLE 9.
DAMAGE AND REPAIR TO PROPERTY
9.1. INITIAL BOARD DETERMINATION. In the event of damage to any portion
of a Lot covered by the Association’s insurance policy, the Board shall promptly, and in
all events within sixty (60) days after the date of damage, make the following
determinations with respect thereto, employing such advice as the Board deems
advisable:
9.1.1. The nature and extent of the damage, together with an inventory
of the improvements and property directly affected thereby;
9.1.2. A reasonably reliable estimate of the cost to repair the damage,
which estimate shall, if reasonably practicable, be based upon two or more firm bids
obtained from responsible contractors;
9.1.3. The expected insurance proceeds, if any, to be available from
insurance covering the loss based on the amount paid or initially offered by the insurer;
9.1.4. The amount of the deductible to be paid by a Lot Owner with
respect to damage or loss within Owner’s Lot;
9.1.5. The amount of available reserves or other Association funds,
although the Board is not required to use any reserves or other Association funds; and
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9.1.6. The amount, if any, by which the estimated cost of repair exceeds
the portion of the deductible to be paid by a Lot Owner, expected insurance proceeds and
available reserves or other Association funds, and the amount of the assessments that
would have to be made against each Lot if the excess cost were to be paid as a common
expense and assessed against all the Lots in proportion to their Allocated Interests.
9.2. NOTICE OF DAMAGE. The Board shall promptly, and in all events within
sixty (60) days after the date of damage, file a proof of loss statement with the insurance
company if the loss is covered by insurance, and abide by all terms and conditions of its
insurance policies, unless the Board determines it would not be in the best interest of the
Association to file a proof of loss. The Board shall then provide each Owner with a
written notice describing the damage and summarizing the initial Board determinations
made under Section 9.1. If the damage affects a material portion of the Property, the
Board shall also send the notice to each Mortgagee, and if the damage affects a Lot, the
Board shall send the notice to the Mortgagee of that Lot. If the Board fails to do so
within the 60-day period, any Owner or Mortgagee may make the determinations
required under Section 9.1 and give the notice required under this Section.
9.3. DEFINITIONS: DAMAGE, SUBSTANTIAL DAMAGE, REPAIR, EMERGENCY
WORK. As used in this Article:
9.3.1. Damage shall mean all kinds of damage, whether of slight degree
or total destruction.
9.3.2. Substantial Damage shall mean that, in the judgment of the
Board, the estimated Assessment determined under Subsection 9.1.4 for any one Lot
exceeds 10% of the full fair market value of the Lot before the damage occurred, as
determined by the then current assessment for the purpose of real estate taxation.
9.3.3. Repair shall mean restoring the improvements to substantially the
condition they were in before they were damaged. Modifications to conform to
applicable governmental rules and regulations or available means of construction may be
made.
9.3.4. Emergency Work shall mean work that the Board deems
reasonably necessary to avoid further damage or substantial diminution in value to the
improvements and to protect the Owners from liability from the condition of the site.
9.4. EXECUTION OF REPAIRS.
9.4.1. The Board shall promptly repair the damage and use the available
insurance proceeds therefor as provided in Section 8.8. If the cost of repair exceeds the
amount of the deductible to be paid by a Lot Owner, expected insurance proceeds and
available reserves or other Association funds, the Board shall impose assessments against
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all Lots in proportion to their Allocated Interests for repairs to the Property in an
aggregate amount sufficient to pay the excess costs.
9.4.2. The Board shall have the authority to employ architects and
engineers, advertise for bids, let contracts to contractors and others, and take such other
action as is reasonably necessary to make the repairs. Contracts for the repair work shall
be awarded when the Board, by means of insurance proceeds and sufficient Assessments,
has provided for paying the cost. The Board may authorize the insurance carrier to make
the repairs if the Board is satisfied that the work will be done satisfactorily, and if such
authorization does not contravene any insurance trust agreement or requirement of law.
9.4.3. The Board may enter into a written agreement with a reputable
financial institution, trust, or escrow company that will act as an insurance trustee to
adjust and settle any claim for casualty loss in excess of $50,000, or collect the insurance
proceeds and carry out the provisions of this Article.
9.5. DAMAGE NOT SUBSTANTIAL. If the damage as determined under
Subsection 9.3.2 is not substantial, the provisions of this Section shall apply.
9.5.1. Either the Board or the requisite number of Owners, within
fifteen (15) days after the notice required under Section 9.2 has been given, may but shall
not be required to call a special Owners’ meeting in accordance with the Bylaws to
decide whether to repair the damage.
9.5.2. Except for emergency work, no repairs shall be commenced until
after the 15-day period and until after the conclusion of the special meeting if such a
special meeting is called within the fifteen (15) days.
9.5.3. A decision to not repair or rebuild may be made in accordance
with Section 8.8.
9.6. SUBSTANTIAL DAMAGE. If the damage determined under Subsection 9.3.2
is substantial, the provisions of this Section shall apply.
9.6.1. The Board shall promptly, and in all events within sixty (60) days
after the date of damage, call a special Owners’ meeting to consider repairing the
damage. If the Board fails to do so within the 60-day period, then notwithstanding the
provisions of the Bylaws, any Owner or first Mortgagee of a Lot may call and conduct
the meeting.
9.6.2. Except for emergency work, no repairs shall be commenced until
the conclusion of the special Owners’ meeting.
9.6.3. At the special meeting, the following consent requirements will
apply:
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9.6.3.1. Owners shall be deemed to have elected to repair the
damage in accordance with the original plan unless Owners of at least 80% of the
total voting power of the Community other than that held by Declarant, including
every Owner of a Lot which will not be rebuilt is allocated, have given their
written consent not to repair the damage.
9.6.3.2. The unanimous consent of all Owners will be required to
elect to rebuild in accordance with a plan that is different from the original plan.
9.6.3.3. Failure to conduct the special meeting provided for under
Subsection 9.6.1 within 90 days after the date of damage shall be deemed a
unanimous decision to repair the damage in accordance with the original plan.
9.7. EFFECT OF DECISION NOT TO REPAIR. In the event of a decision under
either Subsection 9.5.3 or 9.6.3 not to repair the damage, the Board may nevertheless
expend so much of the insurance proceeds and common funds as the Board deems
reasonably necessary for emergency work (which emergency work may include but is not
necessarily limited to removal of the damaged improvements and clearing, filling, and
grading the real property), and the remaining funds, if any, and the property shall
thereafter be held and distributed as provided in Section 8.8.
ARTICLE 10.
RESTRICTIONS ON ALTERATIONS
Construction of the townhomes and other improvements within the Community
by Declarant have been made pursuant to certain alternative means and methods
approved by the City of Renton. Accordingly, in order to promote the safety and well-
being of the Community as a whole, any alterations to the fire and life safety systems or
to the structural elements of the townhomes and the other improvements within the
Community as originally constructed by Declarant are prohibited unless (i) reviewed and
approved by the City of Renton and made subject to such building or other permits as
may be applicable and (ii) reviewed and approved by the ARC or the Board of Directors
of the Association. ANY OWNER UNDERTAKING ANY SUCH ALTERATION IN
VIOLATION OF THE ARTICLE SHALL BE SUBJECT TO ENFORCEMENT
PROCEDURES BY THE ASSOCIATION AS SET FORTH HEREIN.
ARTICLE 11.
EASEMENTS
11.1. EASEMENTS FOR ENCROACHMENT AND OVERHANG.
(a) There shall be an appurtenant easement for that portion of the
roof of any improvements constructed on any Lot which overhangs an adjacent Lot or
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Lots to the extent the roof overhang was originally constructed by Declarant. Subject to
the Association’s obligation for Exterior Maintenance, this easement shall allow for the
Owner of the benefited Lot to have temporary access to the servient Lot for maintenance,
repair and replacement of such roof overhang so long as the benefited Lot Owner
indemnifies and holds the servient Owner harmless from any damage to the servient Lot
in connection with such maintenance, repair or replacement.
(b) There shall be reciprocal appurtenant easements for
encroachment and overhang as between adjacent Lots due to the unintentional placement
or settling or shifting of the improvements constructed, reconstructed, or altered thereon
(in accordance with the terms of this Declaration) to a distance of not more than five (5)
feet, as measured from any point on the common boundary between each Lot and the
adjacent portion of the Common Areas or as between adjacent Lots, as the case may be,
along a line perpendicular to such boundary at such point.
11.2. EASEMENTS FOR USE AND ENJOYMENT.
11.2.1. Every Owner of a Lot shall have a right and easement of ingress
and egress, use and enjoyment in and to the Common Areas which shall be appurtenant to
and shall pass with the title to each Lot, subject to the right of the Association to establish
reasonable rules and regulations with regard to the operation, maintenance, repair and
replacement of the Common Areas including its use and enjoyment by an Owner, and the
Owner’s family, tenants, guests and invitees. Without limitation, the Common Areas
include those easements more particularly described in Section 11.6 below.
11.2.2. Any Owner may delegate such Owner’s right of use and
enjoyment in and to the Common Areas and facilities located thereon to the members of
such Owner’s family and to such Owner’s tenants and guests and shall be deemed to have
made a delegation of all such rights to the occupants of such Owner’s Lot, if leased.
11.3. EASEMENTS FOR UTILITIES AND SYSTEMS. There is hereby reserved to
the Declarant and the Association blanket easements upon, across, above and under all
property within the Community for access, ingress, egress, installation, repairing,
replacing and maintaining all utilities and systems serving the Community or any portion
thereof, including, individual residences or other improvements constructed on the Lots.
Such utilities and systems shall include, but not be limited to, gas, water, sanitary sewer,
telephone and electricity, as well as storm drainage and any other service such as, but not
limited to, cable television system, fire alarm system, fire sprinkler system or security
system which the Declarant or the Association installs to serve the Community or any
portion thereof. It shall be expressly permissible for the Declarant, the Association, or
the designee of either, as the case may be, to install, repair, replace and maintain or to
authorize the installation, repairing, replacing and maintaining of such wires, conduits,
cables and other equipment related to the providing of any such utility or service. Should
any party furnishing any such utility or service request a specific license or easement by
separate recordable document, the Board shall have the right to grant such easement.
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11.4. EASEMENT FOR ASSOCIATION’S ENTRY ON LOTS. The Association shall
have the right, but shall not be obligated, to enter upon any property within the
Community for emergency, security and safety reasons, which right may be exercised by
the Association’s manager, and all policemen, firemen, ambulance personnel and similar
emergency personnel in the performance of their respective duties. Except in an
emergency situation, entry shall only be during reasonable hours and after notice to the
Owner. This right of entry shall include the right of the Board to enter to cure any
condition which may increase the possibility of a fire, slope erosion or other hazard in the
event an Owner or Occupant fails or refuses to cure the condition upon request by the
Board.
11.5. EASEMENT FOR MAINTENANCE. Declarant hereby expressly reserves a
perpetual easement for the benefit of the Association across such portions of the Property
(including Lots), determined in the sole discretion of the Association, as are necessary to
allow for the Association’s performance of Exterior Maintenance as set forth in
Section 6.2 and all other work required under Article 6. Such maintenance shall be
performed with a minimum of interference to the quiet enjoyment of Owner’s property,
reasonable steps shall be taken to protect such property, and damage shall be repaired by
the Person causing the damage at its sole expense.
11.6. COMMON AREA EASEMENTS. The following easements are more
particularly depicted on the attached EXHIBIT C and are part of the Common Areas:
11.6.1. There is hereby conveyed and granted to the Owners and the
Association a perpetual, nonexclusive easement for pedestrian and related courtyard
purposes over that portion of the Property depicted on EXHIBIT C as the “Courtyard
Easement Area”.
11.6.2. There is hereby conveyed and granted to the Owners and the
Association a perpetual, nonexclusive easement for vehicular ingress and egress,
including access through the garage security gates, as well as guest parking over that area
depicted on EXHIBIT C as the “Driveway and Guest Parking Easement Area”.
11.6.3. There is hereby conveyed and granted to the Owners and the
Association a perpetual, nonexclusive easement for access to and use of the trash and
recycling areas serving the Community as more particularly depicted on EXHIBIT C as
the “Trash and Recycling Easement Area”.
11.6.4. There is hereby conveyed and granted to the Owners and the
Association a perpetual, nonexclusive easement for access to and use of the mailbox
kiosk serving the Community over that area particularly depicted on the attached
EXHIBIT C as the “Mailbox Easement Area”.
11.7. CONSTRUCTION AND SALE PERIOD EASEMENT. So long as Declarant
owns any Property in the Community for development and/or sale, Declarant reserves an
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easement across all Property for Declarant to maintain and carry on, upon such portion of
the Property as Declarant may reasonably deem necessary, such facilities and activities as
in the sole opinion of Declarant may be required, convenient or incidental to Declarant’s
development, construction and sales activities related to Property subject to this
Declaration, including, but without limitation: the right of access, ingress and egress for
vehicular and pedestrian traffic and construction activities over, under, on or in the
Community, including, without limitation, any Lot; the right to tie into any portion of the
Community with driveways, parking areas and walkways; the right to tie into and/or
otherwise connect and use, replace, relocate, maintain and repair any device which
provides utility or similar services including, without limitation, electrical, telephone,
natural gas, water, sewer and drainage lines and facilities constructed or installed in, on,
under and/or over the Community; the right to carry on sales and promotional activities in
the Community; and the right to operate model residences and a sales office for the
Community.
11.8. DECLARANT MAINTENANCE RIGHTS. Declarant hereby reserves an
easement over, under and across the Property to perform inspections and to complete
work in connection with any warranty obligation of Declarant. This easement shall not
terminate until the later of the expiration of all warranties given by Declarant with respect
to the Property and the time period for filing any claims by any Owner or the Association
against Declarant.
ARTICLE 12.
PARTY WALLS AND OTHER SHARED STRUCTURES
12.1. GENERAL RULES OF LAW TO APPLY. Each wall or similar structure built
as a part of the original construction on the Lots which serves and/or separates any two
adjoining Lots shall constitute a party structure. To the extent not inconsistent with the
provisions of this Article, the general rules of law regarding party walls and liability for
property damage due to negligence or willful acts or omissions shall apply thereto.
12.2. MAINTENANCE; DAMAGE AND DESTRUCTION. The cost of reasonable
repair and maintenance of a party structure shall be shared equally by the Owners who
make use of the party structure.
If a party structure is destroyed or damaged by fire or other casualty, then to the
extent that such damage is not covered by insurance and repaired out of the proceeds of
insurance, any Owner who has used the structure may restore it. If other Owners
thereafter use the structure, they shall contribute to the restoration cost in equal
proportions. However, such contribution will not prejudice the right to call for a larger
contribution from the other users under any rule of law regarding liability for negligent or
willful acts or omissions.
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12.3. RIGHT TO CONTRIBUTION RUNS WITH LAND. The right of any Owner to
contribution from any other Owner under this Section shall be appurtenant to the land and
shall pass to such Owner’s successors-in-title.
12.4. ACOUSTIC RESTRICTIONS. Owners shall not install within, or attach to,
party walls speakers or similar sound devices unless such installation or attachment is
first reviewed by a licensed acoustical engineer and approved by the ARC. Any
alteration of a party wall without review by a licensed acoustical engineer and approval
by the ARC can result in adverse impacts on the acoustical design of the townhomes and
can result in the transmission of sound between townhomes.
ARTICLE 13.
LAWSUITS OR ARBITRATION PROCEEDINGS
13.1. GENERAL. The potential for material adverse consequences to the Owners
of legal proceedings involving material disputes merit careful evaluation and
consideration before committing the Owners to a course of action. As a result, the
Association shall evaluate those consequences and receive the approval of the Owners in
accordance with this Section before pursuing significant legal proceedings. Proceedings
by the Association to collect delinquent assessments including an action to foreclose the
Association’s lien, or proceedings to enforce the provisions of the Declaration or the rules
and regulations are not significant legal proceedings for purposes of this Section, and
those actions may be brought without regard to the procedures stated in this Section.
13.2. INITIAL DETERMINATIONS. The Association shall make the following
determinations and summarize the same in a written report (the “Litigation Report”) prior
to commencing any litigation, administrative proceedings, arbitration proceedings, or
mediation (“Proceedings”), except as provided below for an emergency filing: (i) the
principal amount sought to be recovered; (ii) an estimate of the amount of attorneys’ fees
which will be chargeable to the Association at each stage of the Proceedings (e.g., prior
to commencing litigation, prior to any arbitration hearing, mediation, or trial, those to be
incurred at mediation, arbitration, or trial, those that may be incurred at any subsequent
trial de novo or appeal, and in the collection of any judgment or award); (iii) whether the
attorneys’ fees will be charged on an hourly or contingent basis; (iv) the estimated cost of
all witnesses or investigators including bookkeepers, accountants, consultants,
investigators, contractors, and experts; (iv) the factual and legal basis supporting the
Association’s claims in the Proceedings; (v) the legal and factual basis of any defense or
counterclaim against the Association or the Owners; (vii) an estimate of the amounts
which the Association or Owners may be required to pay if it does not prevail in the
Proceedings including the principal amount claimed and recoverable attorneys’ fees and
costs of litigation; (viii) a legal opinion prepared by legal counsel who is independent
from the legal counsel whom the Association proposes to hire to pursue the Proceedings,
and which contains a “valuation “ of the Association’s claims on the basis of the actual
amounts in dispute, the likelihood of the Association prevailing on those claims, and the
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merit of the defenses to those claims; (ix) an evaluation of any negative consequences the
Owners could suffer by reason of the proposed Proceedings including the impact of
required disclosures on any Unit sales or refinancings while the Proceedings are pending.
If the Proceedings involve an alleged breach of any warranty by Declarant, the
Association shall include in the Litigation Report the Association’s demand to Declarant
and Declarant’s response pursuant to RCW 64.50.
13.3. EMERGENCY FILINGS. The Association may make any filing necessary to
satisfy a statute of limitations deadline prior to completing the procedures stated in this
Section. Provided, however, the Association may not incur or commit itself to expending
more than $5,000 in connection with any such Proceedings prior to fulfilling the
requirements of this Article 13. In any event, the Association shall satisfy the
requirements of this Section within 90 days after making any such emergency filing.
13.4. PROCEEDINGS INVOLVING LESS THAN $25,000. If the amount involved
in the Proceedings is less than $25,000, then the Association may omit from the
Litigation Report the legal opinion from independent counsel concerning a valuation of
the Proceedings and the Association may proceed with the Proceedings without obtaining
the approval of the Owners as provided below. In determining whether the $25,000
threshold has been exceeded, the calculation shall include the principal amount claimed
by the Association, all costs of pursuing the Proceedings, and all amounts which may be
recovered against the Association or Owners if the Association does not prevail. If the
Association initially commences Proceedings under the reasonable belief that the amount
involved is less than $25,000, but later discovers that the $25,000 threshold could be
exceeded, then the Association shall stay the Proceedings until it has complied with all
requirements of this Section.
13.5. RECOMMENDATION TO AND APPROVAL BY THE OWNERS. If the amount
involved in the Proceedings exceeds $25,000, then the Association shall transmit the
Litigation Report together with the Association’s recommendation to each Unit Owner.
The Owners shall consider the Association’s recommendation at a special meeting called
for that purpose within 60 days of delivery of the Litigation Report.
13.6. APPROVAL BY THE OWNERS. The Association shall not commence the
Proceedings or enter into any engagement or commitment in that regard unless that action
is first approved by Owners holding 75% of the total votes in the Association. The
approval of the Owners shall not be required for the Association to settle the Proceedings.
The Association shall prepare a revised Litigation Report from time to time as events
occur which materially change the estimates and conclusions stated in any prior
Litigation Report. Upon preparation of any revised Litigation Report, the Association
shall transmit the same to the Owners together with the Association’s recommendation
with regard to the continuance of the Proceedings. The Association must take immediate
steps to terminate the Proceedings unless the Association’s recommended course of
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action is approved by a majority vote of those Owners present at a special meeting called
for that purpose at which a quorum is present.
13.7. PERSONAL LIABILITY. Any officer or director of the Association shall be
personally liable for the consequences of any failure to satisfy the requirements of this
Article 13 or the failure to exercise reasonable business judgment in satisfying those
requirements
ARTICLE 14.
CONSENSUS FOR ASSOCIATION LITIGATION
Except as provided in this Article, the Association shall not commence a judicial
or administrative proceeding without the approval of Owners representing at least 75% of
the Total Association Vote. This Article shall not apply, however, to (a) actions brought
by the Association to enforce the Governing Documents (including, without limitation,
the foreclosure of liens); (b) the collection of assessments; (c) proceedings involving
challenges to ad valorem taxation; (d) counterclaims brought by the Association in
proceedings instituted against it; or (e) actions brought by the Association against any
contractor or vendor arising out of a contract for services or supplies between the
Association and such contractor or vendor. This Article shall not be amended unless
such amendment is approved by the percentage of votes, and pursuant to the same
procedures, necessary to institute proceedings as provided above.
ARTICLE 15.
MORTGAGEE PROTECTION
15.1. ABANDONMENT OF DECLARATION. Neither the Association nor the
Owners shall, without consent of 75% of all first Mortgagees of record of the Lots, seek
by act or omission to abandon this Declaration or cause any Lot to be removed from the
provisions hereof.
15.2. PARTITIONS AND SUBDIVISIONS. Neither the Association nor the Owners
shall combine or subdivide any Lot or accept any proposal so to do without the prior
approval of 75% of all first Mortgagees of record of the Lots, and without the unanimous
approval of the Mortgagee(s) of the Lot(s), so affected.
15.3. CHANGE IN ASSESSMENT METHODS, ETC. Neither the Association nor
the Owners shall make any material amendment to the Declaration or Bylaws (including
changes in the methods of allocating assessments among the various Lots) without the
prior approval of 75% of all first Mortgagees of record of the Lots, and without the
unanimous approval of the Mortgagee(s) of the Lot(s) for which the method of
assessment allocation would be changed.
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15.4. COPIES OF NOTICES. Written notice that an Owner/Mortgagor of a Lot
has for more than thirty (30) days failed to meet any obligation under the Declaration or
Bylaws shall be given by the Association to any first Mortgagee of such Lot who has
requested to so be notified. Any first Mortgagee shall, upon request, be entitled to
receive written notice of all meetings of the Association and be permitted to designate a
representative to attend all such meetings.
15.5. EFFECT OF DECLARATION AMENDMENTS. No amendment to this
Declaration shall be effective to modify, change, limit or alter the rights expressly
conferred upon Mortgagees in this instrument with respect to any unsatisfied mortgage
duly recorded unless the amendment shall be consented to in writing by the holder of
such mortgage. Any provisions of this Declaration conferring rights upon Mortgagees
which is inconsistent with any other provisions of said Declaration or the Bylaws shall
control over such inconsistent provisions.
15.6. INSPECTION OF BOOKS. First Mortgagees shall be entitled to inspect at all
reasonable hours of week days all of the books and records of the Association, and, upon
request, to receive the annual financial statement of the Association within ninety (90)
days following the end of the fiscal year of the Association.
15.7. AMENDMENTS BY BOARD. Should the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, HUD or VA subsequently
delete any of their respective requirements which necessitate the provisions of this Article
or make any such requirements less stringent, the Board, without approval of the Owners,
may cause an amendment to this Article to be recorded to reflect such changes.
ARTICLE 16.
GENERAL PROVISIONS
16.1. ENFORCEMENT. Each Owner and Occupant shall comply strictly with the
Bylaws, the rules and regulations, the use restrictions, as they may be lawfully amended
or modified from time to time, and with the covenants, conditions and restrictions set
forth in this Declaration and in the deed to such Owner’s Lot, if any. The Board of
Directors may impose fines or other sanctions, which shall be collected as provided
herein for the collection of assessments. Failure to comply with this Declaration, the
Bylaws or the rules and regulations shall be grounds for an action to recover sums due for
damages or injunctive relief, or both, maintainable by the Board of Directors, on behalf
of the Association, or, in a proper case, by an aggrieved Owner. Failure by the
Association or any Owner to enforce any of the foregoing shall in no event be deemed a
waiver of the right to do so thereafter. The Board shall have the right to record in the
appropriate land records a notice of violation of the Declaration, Bylaws, rules and
regulations, use restrictions, or design guidelines and to assess the cost of recording and
removing such notice against the Owner who is responsible (or whose Occupants are
responsible) for violating the foregoing.
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16.2. SELF-HELP. In addition to any other remedies provided for herein, the
Association or its duly authorized agent shall have the power to enter upon any Lot or
any other portion of the Community to abate or remove, using such force as may be
reasonably necessary, any structure, thing or condition which violates this Declaration,
the Bylaws, the rules and regulations or the use restrictions. Unless an emergency
situation exists, the Board shall give the violating Lot Owner ten (10) days’ written notice
of its intent to exercise self-help. Notwithstanding the foregoing, vehicles may be towed
after reasonable notice. All costs of self-help, including, without limitation, reasonable
attorneys’ fees actually incurred, shall be assessed against the violating Lot Owner and
shall be collected as provided for herein for the collection of assessments.
16.3. DURATION. The covenants and restrictions of this Declaration shall run
with and bind the Community, and shall inure to the benefit of and shall be enforceable
by the Association or any Owner, their respective legal representatives, heirs, successors
and assigns, perpetually to the extent provided by law.
16.4. AMENDMENT. This Declaration may be amended unilaterally at any time
and from time to time by Declarant (a) if such amendment is necessary to bring any
provision hereof into compliance with any applicable governmental statute, rule, or
regulation or judicial determination which shall be in conflict therewith; (b) if such
amendment is necessary to enable any title insurance company to issue title insurance
coverage with respect to the Lots subject to this Declaration; (c) if such amendment is
required by an institutional or governmental lender or purchaser or mortgage loans,
including, for example, the Federal National Mortgage Association or Federal Home
Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase
Mortgage loans on the Lots subject to this Declaration; or (d) if such amendment is
necessary to enable any governmental agency or private insurance company to insure or
guarantee Mortgage loans on the Lots subject to this Declaration; provided, however, any
such amendment shall not adversely affect the title to any Owner’s Lot unless any such
Lot Owner shall consent thereto in writing. Further, during the Declarant Control Period,
Declarant may unilaterally amend this Declaration for any other purpose; provided,
however, any such amendment shall not materially adversely affect the substantive rights
of any Lot Owners hereunder, nor shall it adversely affect title to any Lot without the
consent of the affected Lot Owner.
In addition to the above, this Declaration may be amended upon the affirmative
vote or written consent, or any combination thereof, or the Owners of at least 67% of the
Lots and the consent of Declarant until expiration of the Declarant Control Period.
Amendments to this Declaration shall become effective upon recordation, unless a later
effective date is specified therein.
16.5. GENDER AND GRAMMAR. The singular, wherever used herein, shall be
construed to mean the plural, when applicable, and the use of the masculine pronoun shall
include the neuter and feminine.
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16.6. SEVERABILITY. Whenever possible, each provision of this Declaration
shall be interpreted in such manner as to be effective and valid, but if the application of
any provision of this Declaration to any person or to any property shall be prohibited or
held invalid, such prohibition or invalidity shall not affect any other provision or the
application of any provision which can be given effect without the invalid provision or
application, and, to this end, the provisions of this Declaration are declared to be
severable.
16.7. CAPTIONS. The captions of each Article and Section hereof, as to the
contents of each Article and Section, are inserted only for convenience and are in no way
to be construed as defining, limiting, extending, or otherwise modifying or adding to the
particular Article or Section to which they refer.
16.8. INDEMNIFICATION. To the fullest extent allowed by applicable
Washington law, the Association shall indemnify every officer and director against any
and all expenses, including, without limitation, attorneys’ fees, imposed upon or
reasonably incurred by any officer or director in connection with any action, suit, or other
proceeding (including settlement of any suit or proceeding, if approved by the then Board
of Directors) to which such officer or director may be a party by reason of being or
having been an officer or director. The officers and directors shall not be liable for any
mistake of judgment, negligent or otherwise, except for their own individual willful
misfeasance, malfeasance, misconduct or bad faith. The officers and directors shall have
no personal liability with respect to any contract or other commitment made by them, in
good faith, on behalf of the Association (except to the extent that such officers or
directors may also be members of the Association), and the Association shall indemnify
and forever hold each such officer and director free and harmless against any and all
liability to others on account of any such contract or commitment. Any right to
indemnification provided for herein shall not be exclusive of any other rights to which
any officer or director, or former officer or director, may be entitled. The Association
shall maintain adequate general liability and officers’ and directors’ liability insurance to
fund this obligation, if such coverage is reasonably available.
16.9. BOOKS AND RECORDS.
16.9.1. Inspection by Members and Mortgagees. This Declaration, the
Bylaws, copies of rules and use restrictions, membership register, books of account and
minutes of meetings of the members of the Board and of committees shall be made
available for inspection and copying by any member of the Association or by the duly
appointed representative of any member and by holders, insurers, or guarantors of any
first Mortgage at any reasonable time and for a purpose reasonably related to such
Person’s interest as a member or holder, insurer, or guarantor of a first Mortgage at the
office of the Association or at such other reasonable place as the Board shall prescribe.
16.9.2. Rules for Inspection. The Board shall establish reasonable rules
with respect to:
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(a) notice to be given to the custodian of the records;
(b) hours and days of the week when such an inspection may
be made; and
(c) payment of the cost of reproducing copies of documents.
16.9.3. Inspection by Directors. Every director shall have the absolute
right at any reasonable time to inspect all books, records and documents of the
Association and the physical properties owned or controlled by the Association. The
right of inspection by a director includes the right to make extra copies of documents at
the reasonable expense of the Association.
16.10. FINANCIAL REVIEW. A review of the books and records of the
Association shall be made annually in the manner as the Board of Directors may decide;
provided, however, after having received the Board’s financial statements at the annual
meeting, by a majority of the Total Association Vote, the Owners may require that the
accounts of the Association be audited as a common expense by a certified public
accountant. Upon written request of any institutional holder of a first Mortgage and upon
payment of all necessary costs, such holder shall be entitled to receive a copy of audited
financial statements within ninety (90) days of the date of the request.
16.11. NOTICE OF SALE, LEASE OR ACQUISITION. In the event an Owner sells or
leases such Owner’s Lot, the Owner shall give to the Association, in writing, prior to the
effective date of such sale or lease, the name of the purchaser or lessee of the Lot and
such other information as the Board may reasonably require. Upon acquisition of a Lot
each new Owner shall give the Association, in writing, the name and mailing address of
the Owner and such other information as the Board may reasonably require.
16.12. AGREEMENTS. All agreements and determinations, including settlement
agreements regarding litigation involving the Association, lawfully authorized by the
Board of Directors shall be binding upon all Owners, their heirs, legal representatives,
successors, assigns and others having an interest in the Community or the privilege of
possession and enjoyment of any part of the Community.
16.13. IMPLIED RIGHTS. The Association may exercise any right or privilege
given to it expressly by this Declaration, the Bylaws, the Articles of Incorporation, any
use restriction or rule, and every other right or privilege reasonably to be implied from
the existence of any right or privilege given to it therein or reasonably necessary to
effectuate any such right or privilege.
16.14. VARIANCES. Notwithstanding anything to the contrary contained herein,
the Board of Directors or its designee shall be authorized to grant individual variances
from any of the provisions of this Declaration, the Bylaws and any rule, regulation or use
restriction promulgated pursuant thereto if it determines that waiver of application or
701 Sunset Blvd Declaration page 37
ND: 18354.005 4848-7673-8817v7
enforcement of the provision in a particular case would not be inconsistent with the
overall scheme of development for the Community; provided, however, that no variance
shall be contrary to City of Renton ordinances, all of which must be complied with by
Owners.
EXECUTED as of the day and year first set forth above.
DECLARANT:
TOTTENHAM, LLC,
a Washington limited liability company
By_____________________________________
Name: Joseph Notarangelo
Its: Manager
STATE OF WASHINGTON
COUNTY OF KING } ss.
On this day personally appeared before me JOSEPH NOTARANGELO, to me
known to be the Manager of TOTTENHAM, LLC, the Washington limited liability
company that executed the foregoing instrument, and acknowledged such instrument to
be the free and voluntary act and deed of such limited liability company, for the uses and
purposes therein mentioned, and on oath stated that he was duly authorized to execute
such instrument.
GIVEN UNDER MY HAND AND OFFICIAL SEAL this _____ day of _________, 2007.
Printed Name ___________________________________
NOTARY PUBLIC in and for the State of Washington,
residing at ______________________________________
My Commission Expires ___________________________
701 Sunset Blvd Declaration Exhibit A
ND: 18354.005 4848-7673-8817v7
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
SUBMITTED TO THIS DECLARATION
[see attached]
701 Sunset Blvd Declaration Exhibit B
ND: 18354.005 4848-7673-8817v7
EXHIBIT B
DEPICTION OF COMMON YARD AND LANDSCAPING AREA
[see attached]
701 Sunset Blvd Declaration Exhibit C
ND: 18354.005 4848-7673-8817v7
EXHIBIT C
DEPICTION OF COMMON AREA EASEMENTS
[see attached]
701 Sunset Blvd Declaration Exhibit D
ND: 18354.005 4848-7673-8817v7
EXHIBIT D
GUEST PARKING
[see attached]
701 Sunset Blvd Declaration Table of Contents — page i
ND: 18354.005 4848-7673-8817v7
TABLE OF CONTENTS
PAGE
ARTICLE 1. DEFINITIONS ...........................................................................................1
1.1. WORDS DEFINED. .............................................................................................1
ARTICLE 2. PROPERTY SUBJECT TO THIS DECLARATION .............................4
ARTICLE 3. ASSOCIATION ..........................................................................................4
3.1. FORM OF ASSOCIATION. ..................................................................................4
3.2. MEMBERSHIP....................................................................................................4
3.3. VOTING. ............................................................................................................4
3.4. MEETINGS, AUDITS, NOTICES OF MEETINGS. .................................................5
3.5. BYLAWS OF ASSOCIATION. ..............................................................................6
ARTICLE 4. MANAGEMENT OF THE ASSOCIATION ...........................................7
4.1. INTERIM BOARD OF DIRECTORS......................................................................7
4.2. MANAGEMENT BY ELECTED BOARD OF DIRECTORS. .....................................7
4.3. AUTHORITY AND DUTIES OF THE BOARD. .......................................................7
4.4. BOARD ORGANIZATION AND OPERATION. ......................................................8
4.5. PROFESSIONAL MANAGEMENT. .......................................................................8
ARTICLE 5. ASSOCIATION FINANCES .....................................................................9
5.1. BUDGETING AND ALLOCATING COMMON EXPENSES. ....................................9
5.2. BUDGETING FOR RESERVES. ..........................................................................10
5.3. SPECIAL ASSESSMENTS. .................................................................................10
5.4. SPECIFIC ASSESSMENTS. ................................................................................10
5.5. AUTHORITY TO ASSESS OWNERS. .................................................................10
5.6. TIME OF PAYMENT. ........................................................................................11
5.7. OBLIGATION FOR ASSESSMENTS. ..................................................................11
5.8. LIEN FOR ASSESSMENTS. ...............................................................................12
5.9. EXEMPT PROPERTY. ......................................................................................12
5.10. CAPITALIZATION OF ASSOCIATION. ..............................................................13
ARTICLE 6. MAINTENANCE; CONVEYANCE OF COMMON AREAS TO
ASSOCIATION........................................................................................13
6.1. ASSOCIATION’S RESPONSIBILITY FOR COMMON AREAS. .............................13
6.2. ASSOCIATION’S RESPONSIBILITY FOR EXTERIOR MAINTENANCE...............13
6.3. ASSOCIATION’S RESPONSIBILITY FOR MAINTENANCE OF UTILITIES
AND SYSTEMS. ................................................................................................14
6.4. VIDEO MONITORING/SURVEILLANCE IN GARAGE. .......................................14
6.5. OTHER ASSOCIATION MAINTENANCE PROVISIONS. .....................................14
701 Sunset Blvd Declaration Table of Contents — page ii
ND: 18354.005 4848-7673-8817v7
6.6. OWNER’S RESPONSIBILITY. ...........................................................................15
6.7. CONVEYANCE OF COMMON AREAS BY DECLARANT TO ASSOCIATION. ......15
6.8. MAINTENANCE INSPECTIONS. ........................................................................16
ARTICLE 7. USE RESTRICTIONS AND RULES .....................................................16
7.1. GENERAL. .......................................................................................................16
7.2. RESIDENTIAL USE. .........................................................................................17
7.3. ARCHITECTURAL STANDARDS. ......................................................................17
7.4. SIGNS. .............................................................................................................17
7.5. OCCUPANTS BOUND. ......................................................................................18
7.6. NUISANCE. ......................................................................................................18
7.7. SUBDIVISION OF LOT. .....................................................................................18
7.8. FENCES. ..........................................................................................................18
7.9. AIR-CONDITIONING UNITS. ...........................................................................18
7.10. PRIVATE AREA DÉCOR. .................................................................................19
7.11. LIGHTING. ......................................................................................................19
7.12. MAILBOXES. ...................................................................................................19
7.13. VEHICLES. ......................................................................................................19
7.14. PETS. ..............................................................................................................19
7.15. GARBAGE. .......................................................................................................19
7.16. EXTERIOR SECURITY DEVICES. .....................................................................19
7.17. GUEST PARKING. ............................................................................................20
ARTICLE 8. INSURANCE AND CASUALTY LOSSES ............................................20
8.1. GENERAL REQUIREMENTS. ............................................................................20
8.2. PROPERTY INSURANCE; DEDUCTIBLE. ..........................................................20
8.3. COMMERCIAL GENERAL LIABILITY INSURANCE. .........................................21
8.4. INSURANCE TRUSTEE, POWER OF ATTORNEY. .............................................21
8.5. ADDITIONAL POLICY PROVISIONS.................................................................21
8.6. FIDELITY INSURANCE. ....................................................................................22
8.7. OWNERS’ INDIVIDUAL INSURANCE. ...............................................................22
8.8. USE OF INSURANCE PROCEEDS. .....................................................................23
ARTICLE 9. DAMAGE AND REPAIR TO PROPERTY ..........................................23
9.1. INITIAL BOARD DETERMINATION..................................................................23
9.2. NOTICE OF DAMAGE. .....................................................................................24
9.3. DEFINITIONS: DAMAGE, SUBSTANTIAL DAMAGE, REPAIR,
EMERGENCY WORK. ......................................................................................24
9.4. EXECUTION OF REPAIRS. ...............................................................................24
9.5. DAMAGE NOT SUBSTANTIAL. ........................................................................25
9.6. SUBSTANTIAL DAMAGE. .................................................................................25
9.7. EFFECT OF DECISION NOT TO REPAIR. .........................................................26
701 Sunset Blvd Declaration Table of Contents — page iii
ND: 18354.005 4848-7673-8817v7
ARTICLE 10. RESTRICTIONS ON ALTERATIONS ...............................................26
ARTICLE 11. EASEMENTS ..........................................................................................26
11.1. EASEMENTS FOR ENCROACHMENT AND OVERHANG. ...................................26
11.2. EASEMENTS FOR USE AND ENJOYMENT. .......................................................27
11.3. EASEMENTS FOR UTILITIES AND SYSTEMS. ..................................................27
11.4. EASEMENT FOR ASSOCIATION’S ENTRY ON LOTS. .......................................28
11.5. EASEMENT FOR MAINTENANCE. ....................................................................28
11.6. COMMON AREA EASEMENTS. ........................................................................28
11.7. CONSTRUCTION AND SALE PERIOD EASEMENT. ...........................................28
11.8. DECLARANT MAINTENANCE RIGHTS. ...........................................................29
ARTICLE 12. PARTY WALLS AND OTHER SHARED STRUCTURES ..............29
12.1. GENERAL RULES OF LAW TO APPLY. ............................................................29
12.2. MAINTENANCE; DAMAGE AND DESTRUCTION. .............................................29
12.3. RIGHT TO CONTRIBUTION RUNS WITH LAND. ..............................................30
12.4. ACOUSTIC RESTRICTIONS. .............................................................................30
ARTICLE 13. LAWSUITS OR ARBITRATION PROCEEDINGS ..........................30
13.1. GENERAL. .......................................................................................................30
13.2. INITIAL DETERMINATIONS. ............................................................................30
13.3. EMERGENCY FILINGS.....................................................................................31
13.4. PROCEEDINGS INVOLVING LESS THAN $25,000. ..........................................31
13.5. RECOMMENDATION TO AND APPROVAL BY THE OWNERS. ..........................31
13.6. APPROVAL BY THE OWNERS. .........................................................................31
13.7. PERSONAL LIABILITY. ...................................................................................32
ARTICLE 14. CONSENSUS FOR ASSOCIATION LITIGATION ..........................32
ARTICLE 15. MORTGAGEE PROTECTION ...........................................................32
15.1. ABANDONMENT OF DECLARATION. ...............................................................32
15.2. PARTITIONS AND SUBDIVISIONS. ...................................................................32
15.3. CHANGE IN ASSESSMENT METHODS, ETC. ....................................................32
15.4. COPIES OF NOTICES. ......................................................................................33
15.5. EFFECT OF DECLARATION AMENDMENTS. ...................................................33
15.6. INSPECTION OF BOOKS. .................................................................................33
15.7. AMENDMENTS BY BOARD...............................................................................33
ARTICLE 16. GENERAL PROVISIONS .....................................................................33
16.1. ENFORCEMENT. ..............................................................................................33
16.2. SELF-HELP. ....................................................................................................34
16.3. DURATION. .....................................................................................................34
16.4. AMENDMENT. .................................................................................................34
701 Sunset Blvd Declaration Table of Contents — page iv
ND: 18354.005 4848-7673-8817v7
16.5. GENDER AND GRAMMAR. ..............................................................................34
16.6. SEVERABILITY. ...............................................................................................35
16.7. CAPTIONS. ......................................................................................................35
16.8. INDEMNIFICATION. .........................................................................................35
16.9. BOOKS AND RECORDS. ...................................................................................35
16.10. FINANCIAL REVIEW. ......................................................................................36
16.11. NOTICE OF SALE, LEASE OR ACQUISITION. ..................................................36
16.12. AGREEMENTS. ................................................................................................36
16.13. IMPLIED RIGHTS. ...........................................................................................36
16.14. VARIANCES. ....................................................................................................36
EXHIBIT A LEGAL DESCRIPTION OF PROPERTY
SUBMITTED TO THIS DECLARATION
EXHIBIT B DEPICTION OF COMMON AREA EASEMENTS
EXHIBIT C DEPICTION OF COMMON AREA EASEMENTS
EXHIBIT D GUEST PARKING
When Recorded, Return to:
HILLIS CLARK MARTIN & PETERSON, P.S.
Attention: Steven R. Rovig
500 Galland Building
1221 Second Avenue
Seattle, WA 98101-2925
DECLARATION OF COVENANTS, CONDITIONS,
RESTRICTIONS AND EASEMENTS
FOR
701 SUNSET BLVD
Grantor: TOTTENHAM, LLC
Grantee: PLAT OF 701 SUNSET BLVD
Legal Description
(abbreviated):
Additional on : EXHIBIT A
Assessor’s Tax Parcel ID #:
Reference Nos. of Documents Released or Assigned: N/A