Loading...
HomeMy WebLinkAboutRC 20170627000836 r .� AFTER RECORDING, RETURN TO: CITY OF RENTON City Clerk Division 1055 South Grady Way, Suite 728 Renton, WA 98057 20170627000836 CITY OF RENTON COV 107.00 PAGE-001 OF 035 06/27/2017 14:48 KING COUNTY, WA Document title(s): Declaration of Covenants, Conditions, and Restrictions and Reservation of Easements for Canyon Terrace Reference number(s) of document(s) assigned or released (if applicable): N/A Grantor(s): Summit Frenchies, LLC Grantee(s): Canyon Terrace Homeowners' Association The Public Legal Description (abbrev.): S.E. 1/4 OF THE S.W. '/4, OF SEC. 33, T23N, RSE, W.M. 0 v Parcel No(s).: 61990-0240, 0241, 0260, O 101 1 t t DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR CANYON TERRACE This Declaration of Covenants, Conditions, and Restrictions and Reservation of Easements for Canyon Terrace is made as of this 18 day of r/lAN 2017, by � M� �� �����(�,(�`Declarant"), as owner of the Property described below. RECITALS A. Declarant is the owner of certain real property located in the County of King, State of Washington, described in Exhibit A attached hereto and by this reference incorporated herein ("Property"). Declarant is developing the residential community of Canyon Terrace ("Community") on the Property in accordance with t Canyon Terrace Plat, recorded under King County Auditor's File No 01 lat"). The Property is comprised of the real property legally described on Exhibit A and any other real property added by amendment hereto or amendment of the Plat. B. Declarant plans to develop, own and convey the Property subject to the following uniform covenants, conditions, restrictions, reservations, grants of easement, rights-of-way, liens, charges and equitable servitudes as hereinafter set forth. C. Declarant hereby declares that all of the Property shall be held, leased, encumbered, used, occupied, improved, sold and conveyed subject to the to the following uniform covenants, conditions, restrictions, reservations, grants of easement, rights-of-way, liens, charges and equitable servitudes, all and each of which are for the purpose of enhancing and perfecting the value, desirability, and attractiveness of the Property, in furtherance of a general plan for the protection of the Property. They shall run with the Property, and every portion thereof, shall be binding on all parties having or acquiring any right, title or interest in the Property, and every portion thereof, and their lessee, guests, heirs, successors and assigns, shall inure to the benefit of every portion of the Property and any interest therein, shall inure to the benefit of each Owner, and his heirs, successors and assigns, and may be enforced by the Owners, the Association, any first mortgagee and Declarant in accordance with the terms hereof. Acceptance of any portion of the Property shall be deemed acceptance of the terms and provisions of this Declaration. ARTICLE 1 DEFINITIONS The following words, when used in this Declaration and in any amendment hereto shall have the following meanings unless otherwise expressly provided herein or therein: l.l "Articles" shall mean the Articles of Incorporation of the Association which have been or will be filed in the office of the Secretary of State of the State of Washington, as such Articles may be amended from time to time. 1.2 "Assessment(s)" shall mean all assessments imposed pursuant this Declaration, including without limitation General Assessments, Initial General Assessments, Capital 2 t t Improvement Assessments, Initial Working Capital Assessment, Special Assessments and Reconstruction Assessments. 1.3 "Assessment Period" shall mean a calendar year for General Assessments and such other period as determined by the Board for other Assessments. 1.4 "Association" shall mean Canyon Terrace Homeowners Association, a Washington non-profit corporation, its successors and assigns. 1.5 "Association Lien" shall mean a lien in favor of the Association imposed pursuant to this Declaration. 1.6 "Board of Directors" or"Board" shall mean the Board of Directors of the Association. 1.7 "Budget" shall mean the operating budget for the Association adopted pursuant to Section 5.3 below. 1.8 "Bylaws" shall mean the Bylaws of the Association, as adopted by the Board initially, as such Bylaws may be amended from time to time. 19 "Capital Improvement Assessment(s)" shall mean an Assessment imposed pursuant to Section 5.3 below. 1.10 "Capital Improvement Work" shall have the meaning ascribed to it in Section 5.3 below. 1.11 "Class" shall mean a class of Membership in the Association as described in Section 3.4 below. 1.12 "Close of Escrow" shall mean the date on which a deed conveying a Lot is recorded. 1.13 "Committee" shall mean the Architectural Control Committee formed pursuant to ARTICLE 7 of this Declaration. 1.14 "Common Areas" shall mean all real property and Improvements: (a) owned or leased by the Association or owned in equal and undivided interest by the owners of the Lots; (b) in which the Association has an easement for access or maintenance (excepting easements for maintaining Lots) for the use, enjoyment, and benefit of the Members (including any open space, storm water facility, natural greenbelt protective area tract or easement as provided in the Plat); (c) in which the Members have a right of control by any written instrument, including this Declaration, or by delineation and declaration of the same on the Plat; (d) any private storm system and detention vaults including, but not limited to, catch basis, pipes and dispersal trenches, detention vaults; (e) in which the Members of the Association have an undivided interest, including, but not limited to, plat roads and landscaping, but specifically excluding streets or other areas dedicated or conveyed to a governmental entity for public use. The Common Areas may be improved by certain common facilities and, if and when improved, shall 3 . y include such common facilities. Common Areas described on the Plat shall be deemed to be the Common Areas unless this Declaration has been amended or modified and states that such amendment or modification changes the Common Areas shown on the Plat. 1.15 "Common Expenses" shall mean all costs and expenses incurred by the Association, including, but not limited to, the following: (a) expenses of administration, maintenance, and operation, including, but not limited to, reasonable compensation to employees of the Association, (b) costs of repair, replacement and capital improvement of the Common Areas and any Improvements thereon, (c) premiums or deductibles for all insurance policies and bonds required or permitted by this Declaration, (d) all real property and other taxes and assessments on the Common Areas, (e) utility and service charges, (� funding of reserves for anticipated operational shortfalls or for replacement of capital items, (g) expenses payable under ARTICLE 5 below, (h) legal fees and costs, (i) the costs of recovering unpaid Assessments, including legal fees and other costs of foreclosure of an Association Lien, (j) fees for services provided to the Committee, (k) expenses of administration, maintenance, operation, repair or replacement of landscaping performed by the Association, (1) costs of monitoring and maintaining any storm water or detention vaults or systems, (m) costs associated with any wetland buffer mitigation monitoring costs for the Property, including but not limited to those referenced in ARTICLE 11 (m) maintenance costs associated with any pervious concrete in the Common Areas and (n) any other costs and expenses determined from time to time as reasonably necessary by the Board, or as otherwise incurred by the Association pursuant to this Declaration. 1.16 "Declarant" shall mean Summit Frenchies, LLC, its successors or assigns and any Person to which it has assigned, in whole or in part, any of its rights hereunder by an express written assignment. 1.17 "Declaration" shall mean this Declaration of Covenants, Conditions, and Restrictions and Reservation of Easements for Canyon Terrace, as it may be amended from time to time as provided herein. 1.18 "Development Period" shall mean the period of time from the date of Recording this Declaration until the Turnover Date. 1.19 "Development Rights" shall mean those rights of Declarant reserved in ARTICLE 2, ARTICLE 3, ARTICLE 4, ARTICLE 11 and ARTICLE 14, and elsewhere in this Declaration. Declarant may exercise any and all Development Rights at any time during the Development Period in Declarant's sole discretion. 1.20 "General Assessment(s)" shall mean Assessments imposed by the Association pursuant to Section 5.2 below. 1.21 "ImprovemenY' shall mean all structures and appurtenances thereto of every kind, whether above or below the land surface, including but not limited to, buildings (including Residences), garages, utility systems, walkways, driveways, parking areas, loading areas, landscaping items, swimming pools, sports courts, fences, walls, decks, stairs, poles, landscaping vegetation, irrigation systems, streets, signs, exterior fixtures, playfields and appurtenant 4 I 1 facilities, recreational facilities, play structures, picnic structures and any other structure of any kind. 1.22 "Initial General Assessment" shall have the meaning ascribed to it in Section 5.2 below. 1.23 "Initial Working Capital Assessment" shall have the meaning ascribed to it in Section 5.3 below. 1.24 "LoY' shall mean each separate parcel of the Property as shown on the Plat to be used for construction of a Residence and which is not a Common Area nor dedicated to the public. lf any additional property is added to the Plat, each parcel comprised of a legal buildable lot which will be used for the construction of a Residence shall be considered a "Lot." 1.25 "Majority Vote" shall mean a vote of the holders of more than 50% of the total number of votes allocated to the Lots in accordance with Section 3.4 below, whether by Class or in the aggregate as so indicated. 1.26 "Member" shall mean every person or entity who or which holds a Membership in the Association, as provided in Section 3.2 below. "Membership" shall mean the status of being a Member. 1.27 "Mortgage"- "Mortgagee"- "Mortgagor." A Mortgage shall mean any recorded mortgage or deed of trust on a Lot. A Mortgagee shall mean any holder of a Mortgage and shall be deemed to include the beneficiary of a deed of trust. A Mortgagor shall mean the borrower under a Mortgage and shall be deemed to include the trustor or grantor of a deed of trust. 1.28 "Occupant" shall mean a lessee or licensee of an Owner or any other person or entity, other than an Owner, in lawful possession of a Lot, or a portion of a Lot, with the permission of the Owner. 1.29 "Owner" shall mean the Person(s), including Declarant, holding fee simple title of record to any Lot, including purchasers under executory contracts of sale and shall include "Co-Owners" as defined in Section 3.4. 1.30 "Ownership" shall mean the status of being an Owner. The Declarant shall be an Owner until it sells the last Lot, but the Declarant shall not be liable for assessments and fees and may be expressly excluded from other obligations under this Declaration or the Association Articles and Bylaws. 1.31 "Person" shall mean a natural individual, partnership, company, corporation or any other entity with the legal right to hold title to real property. 1.32 "Plans" shall mean plans and specifications as further described in Section 8.1 below. 5 , , 133 "Plat" shall mean the Plat of Canyon Terrace recorded with the King County Auditor under Auditor's File No. and any subsequent plats of Canyon Terrace which are recorded. 1.34 "Property" shall mean all of the real property described in Exhibit A to this Declaration and all real property added by amendment of this Declaration and/or the Plat. 1.35 "Pro rata Share" shall mean, for any particular Owner and for any particular Assessment, an amount equal to the number of Lots owned by an Owner, divided by the total number of Lots subject to that particular Assessment. 1.36 "Reconstruction Assessment(s)"shall mean an Assessment imposed pursuant to Section 12.1 below. 1.37 "Record" or"File" shall mean, with respect to any document, the recordation thereof, and with respect to any map, the filing thereof, in the official Records of King County, State of Washington. 1.38 "Residence" shall mean a single family residential building which is constructed on a Lot and is designated and intended for use and occupancy as a residence. 1.39 "Special Assessment(s)" shall mean an Assessment imposed as a Special Assessment pursuant to any provision of this Declaration. 1.40 "Turnover Date" shall mean the earlier of(i) ten(10) years from the date hereof; (ii) the date on which Declarant elects to permanently relinquish all of its Development Rights arising under this Deceleration by written notice to all Owners; or(iii) the date the last of the Lots has been conveyed by Declarant to another Owner. 1.41 "Working Capital Fund" shall have the meaning ascribed to it in Section 5.3 below. ARTICLE 2 PHASED DEVELOPMENT; DEVELOPMENT RIGHTS 2.1 Subsequent Development, Annexation and Withdrawal. Declarant reserves as a Development Right for itself, its successors and assigns, the right to subject additional properties to this Declaration at any time prior to termination of the Development Period. Declarant reserves as a Development Right the right to withdraw any undeveloped properties from this Declaration at any time prior to termination of the Development Period. Each Owner appoints and constitutes the Declarant as his/her attorney-in-fact to adopt and file amendments to this Declaration necessary to add or subtract such properties. Neither the Association nor any Owners shall have any right in any additional property nor shall this Declaration have any effect on such additional property until it is subjected to this Declaration by adoption of an amendment to this Declaration specifically describing such additional property or by addition to the Plat. The rights reserved by Declarant in this Section shall be exercised by Declarant at Declarant's sole discretion. 6 � , 2.1.1 Common Areas. The original Owners shall be benefited by any Common Areas on additional property the Declarant elects to add to the Property, either through Association ownership and control of said additional Common Areas or by easements of use and enjoyment in favor of said original Owners on said additional Common Areas. The Owners of such property added by Declarant to the Property shall have an easement for use and enjoyment of the existing Common Areas and shall have al] the obligations to pay their pro-rata cost of maintaining the Common Areas, unless otherwise provided herein. The Owners of properties added to the Property shall be Members of the Association, and shall be entitled to all benefits and subject to all obligations of a Member, including, but not limited to, the right to vote in Association elections and the obligation to pay Assessments as set forth herein. 2.1.2 Easements. The Declarant shall also have as a Development Right the right, during the Development Period, to extend existing easements and may create new easements over the Lots still within Declarant's control so as to provide access to and service to the additional properties. 2.1.3 No Requirement to Include Additional Properties. Nothing contained in this Declaration shall be construed to require the Declarant to subject additional properties to this Declaration. 2.2 Construction and Sales by Declarant. Nothing in this Declaration shall limit, and no Owner shall do anything which shall interfere with, the right of Declarant to reasonably subdivide or re-subdivide any portion of the Property owned by Declarant, or to complete any construction of Improvements on the Lots owned by Declarant and the Common Areas, or to alter the foregoing and its construction plans and designs, or to construct such additional Improvements on such Lots and Common Areas as Declarant deems advisable prior to the termination of the Development Period. Each Owner, by accepting a deed for a Lot from Declarant, hereby acknowledges that the activities of Declarant may constitute a temporary inconvenience or nuisance to the Owners, but nonetheless shall be permitted. Such right shall include, but shall not be limited to, erecting, construction and maintaining on the Property such structures and displays as may be reasonably necessary for the conduct of Declarant's business or completing the work of disposing of the Lots by sale, lease or otherwise. Declarant may at any time use any Lots owned by Declarant as models or real estate sales or leasing and renting offices. 2.3 Dedication to Governmental Entities. Until the termination of the Development Period, Declarant reserves as a Development Right the right to withdraw any undeveloped part of the Property from this Declaration and to dedicate, transfer or convey it to any state, county, municipal or other governmental entity any such part of the Property or reserve it for Declarant's use and/or sale. The rights reserved by Declarant in this Section 2.3 shall be exercised by Declarant at Declarant's sole discretion. 2.4 Assignment. All or any portion of the rights of Declarant hereunder, including but not limited to the Development Rights, may be assigned to any successor or successors to all or part of Declarant's respective interest in the Property, by an express written Recorded assignment. 7 ARTICLE 3 THE ASSOCIATION 3.1 Formation. The Association has been, or will be, incorporated under the name of Canyon Terrace Homeowners Association, as a non-profit corporation under Revised Code of Washington, Chapter 24.03. Declarant may change the name of the Association if Declarant elects to change the name of the Plat or use a different name for marketing purposes. 3.2 Membership. An Owner of a Lot shall automatically be a Member of the Association and shall remain a Member until such time as Ownership ceases for any reason, at which time such Membership shall automatically cease. Ownership of a Lot shall be the sole qualification for Membership in the Association. Except as may otherwise be provided herein, the rights, duties, privileges and obligations of all Members shall be as set forth in this Declaration, the Articles, and the Bylaws. 3.3 Transfer. Membership held by an Owner shall be appurtenant to the Lot giving use to such membership, and shall not be assigned, conveyed, pledged or alienated in any way except upon the transfer of 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 appurtenant thereto to the new Owner thereof. 3.4 Voting Rights. (a) Voting Rights. The right to vote may not be severed or separated from any Lot, and any sale, transfer or conveyance of a Lot to a new Owner shall operate to automatically transfer the appurtenant vote without the requirement of any expressed reference thereto. Notwithstanding the foregoing, the voting rights of any Member may be suspended as provided in this Declaration, the Articles, or the Bylaws. Member votes may be tabulated by mail, facsimile, email, or other electronic transmission. (b) Classes of Membership. The Association shall have two (2) Classes of Membership, Class A aud Class B, as follows: i. Class A. Class A Membership shall consist of all Owners, other than Declarant. Each Class A Member shall be entitled to one (1) vote for each Lot owned. ii. Class B. Membership shall consist of the Declarant. The Declarant shall be entitled to have three (3) votes for each Lot owned by the Declarant. Class B Membership shall terminate and be converted to Class A Membership on the Turnover Date. Upon termination of the Class B Membership, Declarant shall be a Class A member entitled to Class A votes for each Lot it owns. (c) Co-Owners. If an ownership interest in a Lot is held by multiple Persons ("Co-Owners"), the Association shall have no responsibility to accept any vote for such Lot if such vote is disputed among the Co-Owners. 8 , . . (d) Proxies. Members may vote at any meeting of the Association �n person or by proxy. A proxy must be in writing, signed by the designated voting Member for the Lot and filed with the Board in advance of the meeting at which such vote is taken. No Owner may revoke any proxy given by a Member to or in favor of a Mortgagee without the prior written consent of the holder of the Mortgagee. ARTICLE 4 MANAGEMENT OF THE ASSOCIATION 4.1 Development Period. Until the termination of the Development Period, the Declarant hereby reserves as a Development Right for itself, its successors or assigns, the power to exercise all of the rights, powers and functions of the Association, or the Board thereof, set forth or necessarily implied in this Declaration, which Development Right shall be exercised and/or performed solely by the Declarant without further authority from or action by the Members. During the Development Period, the Declarant shall have no obligation to publish financial statements, hold meetings or otherwise account to or consent with the Members, except as required under RCW 64.38 and RCW 24.03, or as expressly required herein. The Declarant's control of the Association during the Development Period is established in order to ensure that the Property, Community, and the Association will be adequately administered in the initial phases of development and to ensure an orderly transition of the Association's operations. Prior to the termination of the Development Period, the Declarant, acting pursuant to its authority to act on behalf of the Association, shall adopt Bylaws. During the Development Period, Declarant shall have as a Development Right, the sole authority to amend the Bylaws. 4.2 Board of Directors. The Association shall be managed by a Board of Directors, elected or appointed in accordance with this Declaration, the Articles, and the Bylaws. Notwithstanding the foregoing, the Declarant shall have as a Development Right the right to appoint and remove all members of the Board in its sole discretion until the Turnover Date. The number of directors shall be specified in the Bylaws and shall be sufficient to adequately handle the affairs of the Association. 4.3 Delegation to Manager. The Board (and Declarant) may delegate all or any portion of its managerial duties, powers, or functions to any Person or entity. The Board members shall not be liable for any omission or improper exercise by the manager of any duty, power, or function so delegated by written instrument authorized and entered into by the requisite vote of the Board. 4.4 Duties and Powers of Association. The duties and powers of the Association are those set forth in its Articles and Bylaws, together with its general and implied powers as a not for profit corporation, generally to do any and all things that a corporation organized under the laws of the State of Washington may lawfully do which are necessary or proper in operating for the peace, health, comfort, safety and general welfare of its Members, subject only to the limitations upon the exercise of such powers as are expressly set forth in its Articles, its Bylaws, and in this Declaration. (a) Purposes. Specifically, but not by way of limitation, the Association shall effectuate the purposes of this Declaration, including but not limited to: (i) adopting and 9 � � enforcing rules and regulations (through action of the Board pursuant to Section 4.5 below); (ii) adopting and operating capital budget; (iii) controlling and administering the Association's funds, including the levy, collection, and disbursement of Assessments; (iv) administering and enforcing this Declaration; and (v) establishing, managing, repairing, and administering the Common Areas. 4.5 Rules and Regulations. The Board shall have the power to adopt from time to time and to enforce rules and regulations governing the use and maintenance of the Property and other matters of mutual concern to the Owners, in addition to the use restrictions contained in this Declaration and whether or not expressly contemplated herein, provided that such rules and regulations shall not be inconsistent with this Declaration. The rules and regulations may not unreasonably differentiate among Owners. The Board may prescribe penalties for the violation of such rules and regulations, including but not limited to suspension of the right to use the Common Areas or portions thereof, suspension of the right to vote and the imposition of fines. Any such rules and regulations, and/or amendments thereto, shall become effective thirty (30) days after they are promulgated and mailed to all Owners. A copy of the rules and regulations in force at any time shall be retained by the secretary of the Association and shall be available for inspection by any Owner during reasonable business hours. Such rules shall have the same force and effect as if set forth herein. 4.6 Priorities and Inconsistencies. In the event of conflicts or inconsistencies between this Declaration, the Articles or the Bylaws, the terms and provisions of this Declaration shall prevail. ARTICLE 5 ASSESSMENTS 5.1 Creation of the Lien and Personal Obligation of Assessments. Each Owner of a Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association any Assessment duly levied by the Association as provided in this Declaration. Such Assessments, together with interest, costs, late charges and reasonable attorneys' fees, shall also be a charge on the land and shall be a continuing lien upon the Lot against which each such Assessment is made and shall also be the personal obligation of the person who was the Owner of such Lot at the time when the Assessment fell due. The personal obligation for delinquent Assessments shall not pass to an Owner's successor in title unless the lien for such delinquent Assessments had been recorded prior to title transfer or unless expressly assumed by the successor in title. When Ownership of a Lot changes, Assessments which have been levied but are not yet due and payable in full shall be prorated between the transferor and the transferee based on a 365-day year. No Owner may exempt himself or herself from liability for his Assessments by abandoning any Lot owned by him or her. 5.2 General Assessments. (a) Association Budget. The Board shall prepare, or cause the preparation of, an operating budget (the "Budget") for the Association for each calendar year. Notwithstanding the foregoing, Declarant, in its sole discretion, shall have the right to establish the Budget for 10 i i each calendar year during the Development Year. The Budget shall set forth sums required by the Association, as estimated by the Board, to meet its annual Common Expenses. Within thirty (30) days after adoption by the Board of any proposed regular or special Budget of the Association, the Board shall set a date for a meeting of the Owners to consider ratification of the Budget not less than fifteen (15) nor more than sixty (60) days after mailing of the summary. Unless at that meeting the Owners of a majority of the votes in the Association reject the Budget, in person or by proxy, the Budget is ratified, whether or not a quorum is present In the event the proposed Budget is rejected or the required notice is not given, the periodic Budget last ratified by the Owners, increased proportionally by the increase in the Consumer Price Index for the City of Renton, Washington prescribed by the U.S. Department of Labor(or similar index if such index is not available), shall be used until such time as the Owners ratify a subsequent Budget proposed by the Board. (b) Levy of General Assessment. In order to meet the costs and expenses projected in its Budget, the Board shall determine and levy on every Owner a General Assessment. The Association's Budget shall be divided by the number of Lots, except those unoccupied Lots owned by the Declarant, to determine the amount of the General Assessment applicable to each Lot. Except with respect to unoccupied Lots owned by the Declarant, each Owner's Pro rata Share of General Assessments shall be calculated by multiplying the number of Lots owned by the Owner by the amount of the General Assessment for each Lot. Notwithstanding the foregoing, any Common Area Expenses that are allocated to specific Lots on the face of the Plat shall be paid by those Lots as directed by the Plat and shall not be included in the General Assessment for other Lots. General Assessments shall be payable in a lump sum annually on the date determined by the Board or may be billed on a quarterly or monthly basis if the Board so elects. During the Development Period, Declarant shall not pay General Assessments on any unoccupied Lots owned by Declarant. (c) Commencement of General Assessments. General Assessments on each Lot shall cammence on the Close of Escrow. (d) Amount of General Assessment. After adoption of the budget by Declarant or ratification of the Budget by the Owners as set forth in Section 5.2(a), the Board shall notify the Owners of the amount of the General Assessment payable by each Owner for an Assessment Period at least thirty (30) days in advance of beginning of such Assessment Period. Notice of the General Assessment shall thereupon be sent to each Owner; provided, however, that failure to notify an Owner of the amount of a General Assessment shall not render such General Assessment void or invalid and each Owner shall be obligated for such General Assessment even if no notice is given, and/or notice is given late. Any failure by the Board, before the expiration of any Assessment Period, to fix the amount of the General Assessment hereunder for the next Assessment Period, shall not be deemed a waiver or modification in any respect of the provisions hereof or a release of any Owner from the obligation to pay the General Assessment, or any installment thereof, for that or any subsequent Assessment Period. (e) Increase Limit. After the Turnover Date, the Board shall not increase the amount of the General Assessments in any year by more than fifteen percent (15%) without a Majority Vote, in addition to the ordinary Budget ratification process. If during the year the Budget proves to be inadequate for any reason, including nonpayment of any Owner's 11 Assessment, the Board may prepare a supplemental Budget for the remainder of the year. A supplemental Budget that results in an increase in an Owner's Assessments shall be ratified pursuant to the ordinary Budget ratification process. Upon any revision of the Budget by a supplemental Budget, the Board shall, if necessary, recalculate the General Assessment levied against the Owners and give notice of the same in the same manner as the initial levy of a General Assessment for the Assessment Period. (� Assessment Period. The Assessment Period for General Assessments shall be a calendar year. The Assessment Period for any other Assessment shall be as determined by the Board. (g) Initial Assessment. At the time of the first transfer of title to a Lot to a purchaser, the first purchaser shall pay to the Association at the Close of Escrow, an Initial General Assessment which is in addition to the Initial Working Capital Assessment. The Initial General Assessment is the pro-rata amount of the current General Assessment that the Board has assessed against the Lot for the year in which the Lot is purchased, which amount shall be prorated on a 365-day per year basis. 5.3 Capital Improvement Assessments. (a) Capital Improvement Work. In addition to the General Assessments authorized by this Article, the Board may levy an Assessment at any time for the purpose of paying the cost of any installation, construction, reconstruction, repair or replacement of any capital improvements ("Capital Improvement Work") in or on a Common Area, or for such other purposes as the Board may consider appropriate ("Capital Improvement Assessments"). Capital Improvement Assessments shall require a Majority Vote. The total cost of the Capital Improvement Work shall be divided by the number of Lots, except those unoccupied Lots owned by the Declarant, to determine the amount of the Capital Improvement Assessment applicable to each Lot. Each Owner's Pro rata Share of the Capital Improvement Assessment shall be calculated by multiplying the number of Lots owned by the Owner by the amount of the Capital Improvement Assessment for each Lot. Capital Improvement Assessments shall be payable in one lump sum, or in installments, as determined by the Board(and as approved by a Majority Vote). The Association may charge interest on any Capital Improvement Assessment payable in installments, as determined by the Board (and as approved by a Majority Vote), and such interest shall become part of the installments due. Capital Improvement Assessments may be levied either before or after the Capital Improvement Work is done, in the discretion of the Board. During the Development Period, Declarant shall not pay Capital Improvement Assessments on any unoccupied Lots owned by Declarant. (b) Special Facilities. If the Association determines that costs incurred for Capital Improvement Work are in connection with facilities shared in common by one or more, but fewer than all, of the Lots, then the Capital Improvement Assessment for such Capital Improvement Work shall be assessed only against the Owners of the Lots served by such facilities. In such event, the total cost of the Capital Improvement Work shall be divided by the number of Lots served by such facilities to determine the amount of the Capital Improvement Assessment applicable to each Lot. Each Owner's Pro rata Share of such Capital Improvement Assessment shall be calculated by multiplying the number of Lots owned by the Owner by the 12 amount of the Capital Improvement Assessment for each Lot, and shall otherwise be on terms as permitted by this Section 5.3. (c) Contribution to Working Capital Fund. In connection with the Close of Escrow for the closing of the sale of each Lot to an Owner other than Declarant, the initial Owner of such Lot shall make a nonrefundable working capital contribution payment to the Association for an initial working capital fund (`Working Capital Fund"), which contribution shall be in an amount equal to two thousand dollars ($2,000) per Lot (the "Initial Working Capital Assessment") or such other amount as the Board determines from time to time is appropriate. The Initial Working Capital Assessment shall not be considered as an advance payment of any Assessments. The Working Capital Fund may be used as determined by the Board. 5.4 Special Assessments. The Association may levy Special Assessments against one or more Lots as provided in this Declaration. Special Assessments shall be as determined by the Board in accordance with this Declaration. Special Assessments shall be payable in one lump sum, or in installments, as determined by the Board. The Association may charge interest on any Special Assessment, as determined by the Board, and such interest shall become part of the installments due. During the Development Period, Declarant shall not pay Special Assessments. 5.5 Accounts. Any Assessments collected by the Association shall be deposited in one or more Federally-insured institutional depository accounts established by the Board. The Board shall have exclusive control of such accounts and shall maintain accurate records thereof. No withdrawal shall be made from said accounts except to pay for charges and expenses authorized by this Declaration. 5.6 Records and Financial Statements. The Board shall prepare or cause to be prepared for any fiscal year in which the Association levies or collects any Assessments, a balance sheet and an operating (income/expense) statement for the Association which shall include a schedule of delinquent Assessments identified by the number of the Lot and the name of the Lot Owner; provided, however, such documents need not be prepared by a certified public accountant unless requested by the Board or the Owners by a Majority Vote. The Board shall cause detailed and accurate records of the receipts and expenditures of the Association to be kept specifying and itemizing the maintenance, operating, and any other expense incurred. Such records, copies of this Declaration, the Articles and the Bylaws, and any resolutions authorizing expenditures of Association funds shall be available after the Turnover Date for examination by any Owner at convenient weekday hours upon reasonable written advance notice. 5.7 Waiver of Homestead or Exemption Rights Under Law. Each Owner hereby waives, to the extent of any liens created pursuant to this Article, the benefit of any homestead or exemption law in effect at the time any Assessment or installment thereof becomes due and payable pursuant to the terms hereof. 5.8 Certificate of Assessment. The Association shall, upon written request by Owner, and for a reasonable charge furnish a certificate signed by an officer of the Association setting forth whether the Assessments on a specified Lot have been paid and the amount of the 13 Assessments for the then-current Assessment Period. The Association shall furnish said Certificate within ten (10) business days of receipt of the written request. A properly executed certificate of the Association as to the status of Assessments on a lot shall be binding upon the Association as of the date of its issuance. ARTICLE 6 NONPAYMENT OF ASSESSMENTS 6.1 Delinquency. Any Assessment provided for in this Declaration shall be delinquent, if it is not paid on the due date as established by the Board. With respect to each Assessment not paid within ten (10) days after its due date, the Board may, at its election, require the delinquent Owner to pay a late charge in the amount set forth in a previously approved schedule thereof which has been delivered to the Owners, together with interest on such delinquent sum at a rate to be determined by the Board, but not to exceed the maximum rate permitted by law, calculated from the date of delinquency to and including the date full payment is received by the Association. 6.1.1 Notice. If any Assessment is not paid within thirty (30) days after its due date, the Board shall mail a notice to the Owner and to any Mortgagee of such Owner. The notice shall specify (1) the fact that the Assessment is delinquent; (2) the amount of the Assessment and any late fees and interest accrued thereon; and (3) that (a) failure to cure the default on or before the date specified in the notice may result in acceleration of the balance of the Assessments for the then current fiscal year and (b) the Association has the right to record a lien ("Association Lien") against the Owner's Lot for the full amount of the Assessment and related charges. The Association shall have the right to accelerate all of the unpaid balance of all Assessments for the then current fiscal year, attributable to that Owner and his Lot or interest therein, after written notice as specified above. Such accelerated Assessments shall be immediately due and payable without further demand. The Association may record a lien against the Owner's Lot and enforce the collection of the Assessments and all charges thereon in any manner authorized by law or by this Declaration. 6.2 Lien and Notice of Lien. Each Owner vests in the Association, or its assigns, the right and power to bring all actions at law or to foreclose an Association Lien against an Owner and such Owner's Lot for the collection of delinquent Assessments. No action shall be brought to foreclose said delinquent Association Lien or to proceed under the power of sale herein provided sooner than thirty (30) days after the date a notice of claim of lien is recorded by the Association in the Office of the King County Auditor and a copy thereof is deposited in the United States mail, certified or registered, postage prepaid, to the Owner of said Lot at said Owner's last known address. The notice of claim of lien must contain a sufficient legal description of said Lot, the record Owner or reputed Owner thereof, and the amount claimed, including, at the Association's option, the cost of preparing and recording the notice of claim of lien, interest on said unpaid Assessments and costs of collections, including attorney's fees. Each Owner, by acceptance of the deed for a Lot subject to this Declaration, acknowledges that all liens authorized hereunder are consensual. 6.3 Foreclosure and Sale. Any such foreclosure and sale provided for in this Section 6 shall be conducted in accordance with the laws of the State of Washington applicable to the 14 exercise of powers of foreclosure and sale of mortgages. The Association, through its duly authorized agents, shall have the power to bid on the Lot at the foreclosure sale and to acquire and hold, lease, mortgage and convey the same. 6.4 Curing the Default. Upon the timely curing of any default for which a notice of claim of lien was recorded by the Association, the Board, or an authorized representative thereof, shall record an appropriate release of such notice upon payment by the defaulting Owner or its Mortgagee of a fee to be determined by the Board to cover the cost of preparing and recording such release, together with the payment of such other costs, interests and fees as shall have been incurred by the Association by reason of such default. Any purchaser or encumbrancer, who has acted in good faith and extended value, may rely upon such release as conclusive evidence of the full satisfaction of the sums stated in the notice of claim of lien. 6.5 Cumulative Remedies. The Association Lien and right of foreclosure and sale thereunder shall be in addition to, and not in substitution for, all other rights and remedies whicl� the Association, and/or its assigns, may have hereunder, in equity and at law, including, but not limited to, a suit to recover a money judgment for unpaid Assessments, or the suspension of a Member's right to vote until any Assessments unpaid for a period in excess of thirty (30) days are paid. Any institution of a suit to recover a money judgment shall not constitute an affirmation of the adequacy of money damages. 6.6 Subordination of Association Liens. All sums assessed in accordance with the provisions of this Declaration shall constitute a lien on the respective Lot prior and superior to all other liens, except (1) all taxes, bonds, assessments and other levies or liens which, by law, would be superior thereto, and (2) the lien or charge of any Mortgage of Record made in good faith and for value and recorded prior to the date on which the notice of claim of lien is recorded, subject to the provisions of this Declaration. Upon the fareclosure of, or acceptance of a deed in lieu of foreclosure of, such a prior Mortgage, the foreclosure purchaser or deed-in-lieu grantee shall take title free of the lien for unpaid Assessments for all said charges that accrue prior to the foreclosure of deed given in lieu of foreclosure, but subject to the lien hereof for all said charges that shall accrue subsequent to the foreclosure ar deed given in lieu of foreclosure. 6.7 Exempt Property. The following property is exempt from the Assessments created herein and shall not be subject to liens for unpaid Assessments: (a) all properties dedicated to and accepted by local public authority; (b) all Common Areas; and (c) all properties the fee title to which is retained by Declarant, unless a Residence has been constructed on such Lot and such Residence is occupied. 6.8 Waiver of Lot Owners. Each Owner hereby vests in and delegates to the Board or its duly authorized representatives, the right and power to bring all actions at law, including lien foreclosures, whether judicially or by power of sale or otherwise, against any Owner for collection of the delinquent Assessments in accordance herewith. Each Owner hereby expressly waives any objection to the enforcement in accordance with this Declaration, of the obligation to pay Assessments as set forth herein. 15 , , ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE 7.1 Committee. An Architectural Control Committee ("Committee") composed of not less than three (3) Committee members is hereby created with the rights and powers set forth in this Declaration; provided, however, that at Declarant's sole discretion until the Turnover Date, the Committee may consist of fewer than three (3) members to be appointed by the Declarant. Committee members shall not be entitled to compensation for their services hereunder unless authorized by vote of two-thirds (2/3) of the Board. Declarant shall have the right and power at all times to appoint or remove the Committee members or to fill any vacancy on such Committee until the Turnover Date. After the Turnover Date, the Board shall have the power to appoint and remove the Committee members. 7.2 Residential Development. Notwithstanding any provision of this Declaration, the approval of the Committee shall not be required for action taken by the Declarant to develop the Property as a residential subdivision, including the initial construction of the Residences and other Improvements. 7.3 Guidelines. The Committee shall have the authority (but shall not be required) to adopt and amend written guidelines to be applied in its review of Plans (defined below) in order to further the intent and purpose of this Declaration and any other covenants or restrictions covering the Property. If such guidelines are adopted, they shall be available to all Members upon request. 7.4 Appeals. After the Development Period, the Board shall serve as an appellate panel to review Committee decisions upon the request of any aggrieved Member. The Board shall develop a procedure by which decisions of the Committee may be appealed. The Board may choose to limit the scope of such appeals and provide time limitations therefore. ARTICLE 8 CONSTRUCTION OF IMPROVEMENTS 8.1 Plan Submission and Approval. No Improvements or significant exterior changes shall be erected, placed, altered, maintained or permitted to remain on any Lot by any Owner until final plans and specifications ("Plans") shall have been submitted to and approved in writing by the Committee. Such Plans shall be submitted by the authorized agent, by the builder of such Improvements, or by the Lot Owner. The following information shall be a part of such Plans submitted to the Committee: (a) the location of the proposed structure upon the Lot, (b) the elevation of the structure with reference to the existing and finished Lot grades, (c) the general design, (d) the exterior finish materials and color, including roof materials, (e) the landscape and exterior lighting plan and (� any other information required to determine whether the structure conforms with Community standards. Where applicable, the Plans shall contain no less detail than required by the appropriate governmental authority for the issuance of a building permit. Approval by the Committee of any Plans shall not be a waiver of the right to withhold approval of any similar plan, drawing, specification, or matter submitted for approval. 16 , . 8.2 Basis for Approval. Approval shall be based upon the conditions of approval for the Plat and the restrictions set forth in this Declaration. The Committee shall not arbitrarily or unreasonably withhold its approval of any Plans so long as they are in compliance with the Plat and the restrictions set forth in this Declaration. The Committee may retain and consult Persons to assist in the evaluation of Plans submitted to the Committee. The Committee shall have the right to disapprove any Plans submitted hereunder on any reasonable grounds including, but not limited to, any one or more of the following: (a) Restrictions. Failure to comply with any of the restrictions set forth in this Declaration. (b) Information. Failure to include information in such Plans as may have been reasonably requested by the Committee. (c) Code Compliance. Failure to comply with any state or local building codes or rules and regulations . (d) Guidelines. Failure to comply with any design guidelines adopted by the Board. (e) Incompatibility. Objection on the grounds of incompatibility of any proposed structure or use with existing structures or the surrounding natural environment. (fj Use. Objection to a non-residential use of the Lot. (g) Landscaping. Objection to the grading or landscaping plan for any Lot. (h) Design. Objection to the color scheme, finish, proportions, style or architecture, height, bulk or appropriateness. (i) Parking. Objection to the number or size of parking spaces, or to the design of any parking area. (j) Other. Any other matter which, in the judgment of the Committee, would render the proposed Improvements or use inharmonious with the general plan for improvement of the Property or with Improvements located upon other Lots or other Property in the Community. 8.3 Result of Inaction. If the Committee fails to take action (approve, disapprove, comment, request changes, and/or conditionally approve) with respect to Plans submitted to it within sixty (60) days after the same have been submitted, it shall be conclusively presumed that the Committee has approved said Plans; provided, however, that if within the sixty (60) day period the Committee gives written notice of the fact that more time is required for the review of such Plans, there shall be no presumption that the Plans are approved until the expiration of such reasonable period of time as is set forth in the notice. 8.4 Variances. The Committee shall have the authority in its sole discretion to approve Plans which do not conform to the restrictions described herein to (a) overcome 17 practical difficulties, or(b) prevent undue hardship from being imposed on an Owner. This includes the right to allow an Owner to conduct an "in-home business", if all business activities are carried on within the Residence and that there are no employees, clients, customers, tradesmen, student, suppliers, or others that come to the Residence in connection with such business. However, such variation shall only be approved in the event that the variation will not (a) detrimentally impact the Community or its attractive development, or(b) adversely affect the character of nearby Lots. Granting such a waiver shall not constitute a waiver of the restrictions described herein. 8.5 Approval. The Committee may approve Plans as submitted, or as altered or amended, ar it may grant its approval to the same subject to specific conditions. Upon approval or conditional approval by the Committee of any Plans submitted, a copy of such Plans, bearing such approval together with any conditions, shall be returned to the applicant submitting the same. The Declarant shall have the right to waive the requirement that Plans be reviewed for any Improvements to be constructed by the Declarant. 8.6 Proceeding with Work. Upon receipt of approval of the Plans from the Committee, the Owner to whom approval is given shall, as soon as practicable, satisfy any and all conditions of such approval and shall diligently proceed with the commencement and completion of all approved excavation, construction, refinishing and alterations. In all cases, work shall commence within one (1) year from the date of approval, and if work is not so commenced, approval shall be deemed lapsed and revoked unless the Committee, pursuant to written request made and received prior to the expiration of said one (1) year period, extends the period of tiine within which work must be commenced. 8.7 Completion of Work. Any Improvement commenced pursuant hereto shall be completed within nine (9) months from the date on which the construction of said Improvement began (in accordance with Section 8.6 above), but such period shall be extended for the period that completion is rendered impossible or would impose an unreasonable hardship due to strike, fire, national emergency, natural disaster or other supervening force beyond the control of the Owner and/or its builder. The Committee may, upon written request made and received prior to the expiration of the nine (9) month period, extend the period of time within which work must be completed. Failure to comply with this Section 8.7 shall constitute a breach of the Declaration and subject the party in breach to the enforcement procedures set forth herein. 8.8 Committee and Declarant Not Liable. Neither the Committee nor the Declarant (nor any officer, director, member, shareholder, partner, employee, agent or representative of the Declarant) shall be liable for any damage, loss or prejudice suffered or claimed by any person on account of: the approval, conditional approval, or disapproval of any Plans, whether or not in any way defective; the construction of any Improvements, or performance of any work, whether or not pursuant to approved Plans; or the development of any Lot within the Property. 8.9 Compliance with Codes/Environmental Laws. Ultimate responsibility for satisfying all state or local building codes or environmental laws shall rest with the Owner and his or her contractor. The Committee is not responsible for ensuring that Plans it reviews comply with state or local building codes. The Owner shall hold the Committee, its members, and the Declarant harmless from any claims based on (i) the failure of an Improvement 18 constructed based on approved Plans to meet any applicable governmental requirements, (ii) any structural failure of an Improvement constructed based on approved Plans, or(iii) the failure of the Owner or his contractor, by construction undertaken in accordance with approved Plans, to comply with any environmental laws, including, but not limited to, those relating to hazardous waste or underground storage tanks. 8.10 Construction Without Approval. If any Improvement shall be altered, erected, placed or maintained upon any Lot, or any new use commenced upon any Lot, or any exterior modifications made, other than in accordance with the approval of the Committee pursuant to the provisions of the Declaration, such alteration, erection, placement, maintenance or use shall be deemed to have been undertaken in violation of this Declaration, and upon written notice from the Committee any such improvement so altered, erected, placed, maintained or used upon any Lot in violation of this Declaration shall be removed or altered, and/or such use shall have ceased, so as to conform to this Declaration. Should such removal or alteration not be accomplished within thirty (30) days after receipt of such notice, then the party in breach of this Declaration shall be subject to the enforcement procedures set forth in this Declaration. ARTICLE 9 RESTRICTIONS ON OPERATIONS AND USES 9.1 Prohibited Uses. The Property is being developed as a residential development. No Lot shall be used except for residential purposes; provided, however, that upon written request by an Owner, the Committee may allow an Owner to conduct an "in-home business", if all business activities are carried on within the Residence and that there are no employees, clients, customers, tradesmen, student, suppliers, or others that come to the Residence in connection with such business. Notwithstanding the foregoing, to the extent required under RCW 64.38.060, operation of an "adult family home" on a Lot shall not be prohibited. 9.2 Nuisances. No noxious or offensive thing, activity or use of any Lot or Common Area shall be permitted or maintained. If the Committee shall determine that a thing, activity or use of any Lot is undesirable or noxious such determination shall be conclusive. No firearms shall be discharged within the Property and no explosives of any kind shall be discharged or stored upon any of the Lots or permitted within the Property. No open fires shall be lighted or permitted on the Lots, except in a contained outdoor fireplace or barbeque pit while attended and in full compliance with local laws and ordinances. 9.3 Temporary Structures Prohibited. No structure of a temporary character, tent, shed, shack, basement of any incomplete building, barn or other outbuilding shall be either used or located on any Lot, or on any street, at any time or used as a residence either temporarily or permanently. Temporary buildings or structures allowed during construction shall be removed immediately after construction or upon request of the Committee, whichever occurs first. Notwithstanding the foregoing, Declarant may place construction and sales trailers on any Lot which Declarant owns. 9.4 Limitation on Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept on any Lot except dogs, cats, or other household pets; provided that they are not kept, bred or maintained for commercial purposes; provided further that no more than two (2) 19 dogs or three (3) cats shall be allowed per Lot. Dogs shall be restrained to the Owner's Lot and shall not be allowed to run at large. Leashed animals are permitted within rights-of-way when accompanied by their Owners. Owners shall be responsible for cleaning up any and all of their animals' waste on the Property, including on the respective Owner's Lot. If an Owner fails to clean up their animals' waste, the Association may, but shall not be obligated to, take such action as may be necessary to clean up the animals' waste and shall have the right of entry for such purposes. Any costs incurred by the Association in connection with such action shall be deemed to be a Special Assessment of the Owner whose animal(s) created the waste. No animal shall be allowed to make an unreasonable amount of noise or become a nuisance as determined by the Board, at its sole discretion. After notice and an opportunity to be heard, the Board shall have the right to require the removal of any animal from the Lot which it finds in its sole discretion to violate this Section. 9.5 Limitation on Signs. No sign of any kind shall be displayed to the public view on any Lot without the prior written approval of the Board, except(a) customary name and address signs, (b) "For Sale" or"For Rent" signs of no more than six (6) square feet in size advertising the Lot for sale or rent, which signs must be removed promptly after sale or lease of the residence, (c) signs required by legal proceedings, (d) temporary signs for political advertising, garage sales, etc. (and then the sign shall be no larger than four (4) square feet and shall be in place no longer than sixty (60) days), (e) promotional sales signs of the Declarant and/or its agents, and (� permanent monuments (entry signage) and Common Areas identification signs. 9.6 Construction Projects. No dirt, debris, or other materials shall be allowed to come off of any Lot onto any streets, Common Areas, other Lots, or other parts of the Property as a result of any construction or other activities. The Lot shall be kept clean and clear of debris during construction. No Residence may be constructed on any Lot by other than a contractor licensed as a general contractor under the statutes of the State of Washington without the prior approval of the Committee. Construction activities shall be pursued diligently and continuously from commencement of construction until such work is fully compete. 9.7 Condition of Property. Each Owner, at its own expense and at all times, shall keep such Owner's Lot, including the Improvements and appurtenances thereon, in a safe, clean and wholesome condition and shall comply in all respects with applicable governmental, health, fire and safety ordinances, regulations, requirements and directives. No Owner shall permit any unsightly condition to exist on his/her Lot. Unsightly conditions shall include, without limitation, litter, trash,junk or other debris; unrepaired vehicles, boats, boat trailers or other trailers; inappropriate, broken, or damaged furniture or plants; non-decorative gear, equipment, cans, bottles, ladders, trash barrels and other such items; and air conditioning units or other projections placed on the exterior walls of any Building. The Owner shall at regular and frequent intervals remove at its own expense any rubbish of any character whatsoever that may accumulate upon such Lot. 9.8 Refuse; Storage Areas. No refuse, garbage, rubbish, cuttings or debris of any kind shall be left or deposited upon any Lot unless placed in an attractive container. All outdoor refuse storage areas on each Lot shall be visually screened so as not to be visible from neighboring Lots, streets, or other Common Areas. 20 9.9 Utility Lines and Facilities and Satellite Dishes. No facilities, antennae, equipment, wires or other devices for the communication or transmission of signals, power, electrical current, or any other electronic transmission, including without limitation telephone, television, microwave or radio signals, shall be constructed, placed or maintained anywhere in or upon any portion of a Lot, other than within buildings or enclosed structures unless the same shall be contained in conduits or cables constructed, placed or maintained underground or concealed in or under buildings or other enclosed structures; provided, however, that satellite dishes not exceeding twenty-four inches (24") in diameter may be allowed on buildings provided that: (a) the satellite dish is placed in the most discreet location practical as determined by the Committee; (b) the satellite dish is screened from view from adjacent Lots to the extent feasible; and (c) the satellite dish is not visible from the street in front of the Owner's Lot to the extent possible. Nothing contained herein shall be deemed to forbid the erection or use of temporary power or telephone facilities incidental to the construction or repair of buildings on a Lot. If the provisions of this Section conflict with other applicable Federal, state or local law, ordinance or rule, the terms of such law, ordinance or rule shall prevail, but the conditions and limitations set forth in this Section shall be enforced to the maximum extent permitted by law. 9.10 Setbacks. No Residence or other building shall be located on any Lot nearer to the front lot line or nearer to the side street than the minimum building setback lines adopted by the governmental authority with jurisdiction over the Property. 9.11 Roofs. Roofs on all structures and Residences must be finished with materials approved for use by the Committee. 9.12 No Manufactured Housing. Manufactured housing is expressly prohibited. 9.13 Fences. In order to preserve the aesthetics of the Property, no fence, wall or hedge shall be erected or place on any Lot unless prior written approval of the Committee has been obtained. Unless otherwise permitted by the Committee in its sole discretion, fences shall not be installed in front of residences and no wire fences shall be used. 9.14 Lighting. All area lighting shall be designed and positioned to ensure that the light source is not visible from any other house in the development. Decorative holiday lighting shall be removed no later than thirty (30) days after the date of the holiday. 9.15 Landscaping. Landscaping shall emphasize plantings and other features which complement and enhance the existing character of the Property. Owners shall maintain all landscaping, including the trimming, watering and fertilization of all grass, ground cover, shrubs or trees, removal of dead or waste materials, and replacement of any dead or diseased grass, ground cover, shrubs or trees. 9.16 Drainage. No Owner shall take any action which would interfere with surface water drainage across his Lot either through natural drainage or by drainage easements. The topographic conditions of any Lot shall not be altered in any way that would adversely affect or obstruct the approved and constructed storm drain system and surface flows without the written consent of the Committee. 21 9.17 Walkways and Driveways. There shall be no obstruction, including, but not limited to obstruction by sporting equipment, of any streets, walkways, or driveways which would interfere with the free circulation of foot, bicycle or automotive traffic, except such obstruction as may be reasonably required in connection with repairs of such streets, walkways and driveways. The Association may, but shall not be obligated to, take such action as may be necessary to abate or enjoin any interference with or obstruction of streets, walkways, and driveways, and shall have the right of entry for purposes of removing said interference or obstruction. Any costs incurred by the Association in connection with such abatement, injunction, or corrective work shall be deemed to be a Special Assessment of the Owner responsible for the interference or obstruction. 9.18 Parking. No inoperable vehicles of any kind shall be parked, stored, maintained or constructed on any of the Lots, Common Areas and/or streets located within the Property unless stored in a garage. Except as hereinafter expressly provided, the Lots, Common Areas and/or streets located within the Property shall not be used for the storage and/or overnight parking of any vehicle, and each Owner shall use the garage constructed on its Lots for the parking and storage of its vehicles. The Association may, but shall not be obligated to, take such action as may be necessary including towing of vehicles that are parked on streets, driveways or walkways for extended periods or in violation of rules and regulations adopted by the Association or set forth in this Declaration. 9.19 Mineral Exploration. No portion of the Property shall be used in any manner to explore for or to remove any steam, heat, oil or other hydrocarbons, gravel, earth, or any earth substances or other minerals of any kind. No excavation or fill shall be made nor shall any dirt be removed from any Lot; provided, however, that this shall not prevent the excavation of the earth in connection with the grading or construction of improvements within a Lot. Water may be extracted to the extent permitted by all applicable governmental agencies. 9.20 Remedies for Failure to Maintain and Repair. 9.20.1 Remedies. If any Owner shall fail to perform the maintenance and repair required by this Declaration, then the Board after fifteen (15) days' prior written notice to such delinquent Owner, shall have the right, but not the obligation, to perform such maintenance and repair and to charge the delinquent Owner and his Lot with a Special Assessment for the cost of such work together with interest thereon at a rate to be set by the Board from the date of the Association's advancement of funds for such work to the date of reimbursement of the Association by Owner. If the delinquent Owner fails to reimburse the Association for such costs within ten (10) days after demand therefore, the Association may, at any time after such advance, record an Association Lien signed by an authorized agent of the Association for the amount of such charge together with interest thereon and enforce the Association Lien in accordance with the provisions of this Declaration. 9.20.2 Nonexclusive Remedy. The foregoing Association Lien and the rights to foreclose thereunder shall be in addition to all other rights and remedies which the Board may have hereunder or in equity or at law, including any suit to recover a money judgment for unpaid Assessments. If any Owner fails to perform such maintenance and repair and, notwithstanding such failure, the Board should fail to exercise its rights and remedies hereunder, then any other 22 . � Owner, after fifteen (15) days' prior written notice to the Board and such delinquent Owner, shall have the right, but not the obligation, to perform such maintenance and repair and shall have the same rights and remedies with respect thereto as are provided herein to the Board, including the right to Record and enforce a lien in the same manner as the Association. 9.21 Occupants. Any Owner may delegate to any Occupant the right to enjoy the Owner's Lot. All Owners shall be responsible for informing any Occupants of the contents of this Declaration and the rules regarding the use of such Lot, and shall be responsible far requiring its Occupants to comply with this Deceleration. ARTICLE 10 EASEMENTS, DEDICATIONS, AND RIGHTS OF ENTRY 10.1 Easements. (a) Access. Declarant expressly reserves for the benefit of the Association and for the Owners of the Lots reciprocal, non-exclusive easements over all of the Common Areas for access to the Lots and other Common Areas. Subject to the provisions of this Declaration and the Plat governing use and enjoyment thereof, such easements may be used by Declarant, its successors, the Owners, and any guests, tenants, and invitees residing upon or temporarily visiting the Property, for walkways, vehicular access, parking, drainage and such other purposes reasonably necessary for use and enjoyment of any Lot in the Property. In addition to the foregoing, each Lot is subject to an easement for encroachments created by construction, settlement, and overhangs as designed or constructed by the Declarant. (b) Maintenance and Repair. Declarant expressly reserves for the benefit of the Association and all agents, officers and employees of the Association nonexclusive easements over the Common Areas and the Lots necessary to maintain and repair the Common Areas and to perform all other tasks in accordance with the provisions of this Declaration. There are specifically reserved for the benefit of the Owners easements for the utility services and the repair, replacement and maintenance of the same over all of the Common Areas. Such easements shall be established and used so as not to unreasonably interfere with the use and enjoyment by the Owners of their Lots and the Common Areas. All such easements shall be appurtenant to and shall pass with the title to every Lot conveyed. (c) Utility and Drainage Easements. Various easements are reserved on the Lots, as provided by the Plat and applicable laws, ordinances and other governmental rules and regulations for utility installation and inaintenance, including but not limited to, underground electric power, telephone, cable television, digital information, water, sewer, gas and drainage, together with the right to enter upon the Lots at all times for said purposes. Within these easements, no structure, planting, or other material shall be placed or permitted to remain that may damage, interfere with the installation and maintenance of utilities, that may change the direction of flow of drainage channels in the easements, or that may obstruct or retard the flow of water through drainage channels in the easements. Each Owner hereby agrees not to place locks on structures enclosing utility meters or interfere with the access of utility representatives to said meters or easements. The easement area of each Lot, and all improvements thereon, shall be maintained continuously by the Owner of each Lot, except for those improvements for which a 23 public authority, utility company or the Association is responsible within the easement areas. The Owner shall maintain the portion of any utility on the Owner's Lot, or within a private easement for the Owner's Lot that serves only the Owner's Lot to the point of connection to the portion of the system that serves more than one Lot. The Association shall have an easement for the maintenance, repair, replacement, and restoration of the portions of the easements that serve more than one Lot up to the point of connection to the public system. (d) Landscaping Maintenance Easement. Declarant expressly reserves for the benefit of the Association and all agents, officers and employees of the Association nonexclusive easements over the Common Areas and the Lots to perform maintenance of landscaping, including the trimming, watering and fertilization of all grass, ground cover, shrubs or trees, removal of dead or waste materials, or replacement of any dead or diseased grass, ground cover, shrubs or trees. Notwithstanding the foregoing, each Owner shall be primarily responsible for maintaining the landscaping and yard areas on their respective Lot, as provided in this Declaration. (e) Protective Easement. Lots are subject to a natural green belt protective area, open space area and storm water facility area as provided by the Plat and applicable laws, ordinances and other governmental rules and regulations. The Owner shall maintain critical areas and their buffers by removing non-native, invasive and noxious plants in a manner that will not harm critical areas or their buffers and in accordance with Renton Zoning Code requirements for trees and other vegetation within critical areas and critical area buffers. (fl Association's Authority to Grant Easements. The Association, through approval by the Board, shall have the right to grant necessary easements and rights-of-way over the Common Areas to any Person. Further, the Property is subject to any and all easements shown on the face of the Plat. 10.2 Right of Entry. The Association, the Committee and Declarant shall have a limited right of entry in and upon the exterior of all located on any Lot for the purpose of inspecting the same, and taking whatever corrective action may be deemed necessary or proper, consistent with the provisions of this Declaration. However, nothing herein shall be construed to impose an obligation upon the Association, the Committee, or Declarant to maintain or repair any portion of any Lot or any Improvement thereon which is to be maintained or repaired by the Owner. Each Owner shall permit access to such Owner's Lot or Improvements thereon by any Person authorized by this Association, the Committee or Declarant in the case of any emergency originating on or threatening such Lot or Improvements, whether or not such Owner is present. ARTICLE 11 ENVIRONMENTAL MITIGATION 11.1 Wetland and Buffer Mitigation Program. A qualified professional will perform conditional monitoring of the wetland mitigation for the Property for five (5) years after construction of the Property. A written report describing the monitoring results will be submitted according to the approved wetland mitigation plan. It is the duty of the Association to ensure all requirements under the approved wetland mitigation plan are satisfied. 24 . . ARTICLE 12 COMMON AREA 12.1 Association Control. The Association shall own fee title to the Common Areas. The Association's appurtenant rights and duties with respect to the Common Areas shall include, without limitation, the following: (a) Repair and Maintenance. The duty of the Association to maintain and repair and make necessary improvements to the Common Areas, or contract for such services, to keep the Common Areas, including without limitation all Improvements thereon, in a good, sanitary, and attractive condition. Such maintenance, repairs, replacement, resurfacing, and improvements shall include, without limitation, maintenance and replacement of lighting, shrubs, trees, vegetation, irrigation systems (if any), signs, play structures, picnic facilities, playfields and appurtenances and other landscaping improvements located on the Common Areas, repair of and payment for all centrally metered utilities, mechanical and electrical equipment in the Common Areas, to include care and upkeep of any median within the public street rights-of way, repair and maintenance of storm water facilities and equipment (to the extent such maintenance is not performed by the municipality or any utility service provider), and repair and maintenance of all parking areas, walks, and other means of ingress and egress within the Common Areas. The Association must also maintain and take all necessary actions to comply with requirements under any open space, natural greenbelt protective or storm water facility areas or easements, as provided by the Plat and various laws. The Association must also maintain and take all necessary actions to comply with requirements under any wetland buffer and mitigation plan applicable to the Property. The Association must also maintain and take all necessary actions to comply with requirements under any easements, as provided by the Plat and various laws. All such maintenance, repairs, improvements and other actions for the benefit of the Common Areas shall be paid for as a Common Expense. The Association shall pay all real and personal property taxes and Assessments which shall constitute a lien upon any portion of the Common Areas. The Board shall use reasonable efforts to require compliance with all provisions of this Declaration. (b) Limits. The right of the Association to reasonably limit the number of guests, patrons and invitees of Owners using the Common Areas. (c) Rules. The right of the Association to establish uniform rules and regulations pertaining to the use of the Common Areas. (d) Borrowings. The right of the Association in accordance with the Articles, Bylaws and this Declaration, with a Majority Vote of the Owners, to bonow money for the purpose of maintaining and preserving the Common Areas, and in aid thereof to Mortgage any or all of its real or personal property as security for money borrowed or debts incurred, provided that the right of any such Mortgagee of the Association shall be subordinated to the rights of the Owners. (e) Suspension of Rights. The right of the Association to suspend the voting rights and right to use the Common Areas by an Owner for any period during which any Assessment against the Owner and his Lot remains unpaid and delinquent for a period not to 25 . i exceed thirty (30) days for any single infraction of the published rules and regulations of the Association, provided that any suspension of such voting rights or rights to use the Common Areas shall be made only by the Board, after notice and an opportunity for a hearing, if any, as provided in the Bylaws. 12.2 Public Storm Drainage Tract B. Tract `B' within the Property is a public storm drainage tract. Upon the recording of the Plat, Tract `B' is conveyed and granted to the Association and in return an easement granted and conveyed to the City of Renton over, under and across Tract `B' for the purpose of conveying, storing, managing and facilitating storm and surface water per the engineering plans on file with the City of Renton. The City of Renton has the right to enter said stormwater easement for the purpose of inspecting, operating, maintaining, improving, and repairing its drainage facilities contained therein. Only the chain link fence, flow control, water quality treatment and conveyance facilities will be considered for formal acceptance and maintenance by the City of Renton. Maintenance of all other improvements and landscaping on said Tract `B' shall be the responsibility of the Association. In the event that the Association is dissolved or otherwise fails to meet its property tax obligations, as evidenced by nonpayment of property taxes for a period of eighteen(18) months, then each Owner of a Lot in the Plat shall assume and have an equal and undivided ownership interest in Tract `B' previously owned by the Association and have the attendant financial and maintenance responsibilities. 12.3 Natural Growth Protection Tract L. Tract "L" within the Plat is a Native Growth Protection Tract. Upon the recording of the Plat, Tract `L' is conveyed and granted to the Association and in return an easement granted and conveyed to the public over, under, and across the land within the Tract"L" area. This easement shall be for the purpose of preserving native vegetation for the control of surface water and erosion, maintenance of slope stability, visual and aural buffering, and protection of plant and animal habitat. The easement imposes on all present and future owners and occupiers of the easement area, enforceable by the City of Renton on behalf of the public a duty to leave all trees and other vegetation within the easement area undisturbed. The vegetation in the easement area may not be cut, pruned, covered by fill, removed, or damaged without express written permission from the City of Renton. 12.4 Permissive Use. Any Owner may permit an Occupant to use the Common Areas in the same manner as an Owner. All Owners shall be responsible for informing any Occupants of the contents of this Declaration and the rules regarding the Common Areas, and shall be responsible for requiring its Occupants to comply with this Deceleration. No Owner, guest, Occupant, invitee or licensee shall conduct or allow others to conduct any offensive or obnoxious activities within the Common Areas. 12.5 Trash and Other Debris. No trash, debris, waste, grass clippings, or hazardous waste shall be dumped, deposited, or placed in any Common Areas by any Owner or Occupant. 12.6 Fires. There shall be no fires permitted within the Common Areas except in designated barbeque pits or fire circles while attended and in full compliance with local laws and ordinances. 12.7 Easements for City and County Use. Declarant reserves and covenants for itself, the Association and all future Owners within the Property, easements for public services 26 , , and utilities, including without limitation, the right of the City of Renton, King County, or other recognized governmental entity or utility purveyors to install, maintain and repair public streets, street lights, curbs, gutters and sidewalks, sanity sewer, storm water facilities and water systems, and the right of the police and other emergency and public safety personnel to enter upon any part of the Common Areas for the purpose of enforcing the law. 12.8 Taxes. Each Owner shall execute such instruments and take such action as may reasonably be specified by the Association to obtain a separate real estate tax assessment of each Lot. If any such taxes or assessments may, in the opinion of the Association, nevertheless be a lien on the Common Areas, or any part thereof, they shall be paid by the Association and each Owner shall be obligated to pay or to reimburse the Association for, as the case may be, the taxes and assessments assessed by the County Assessor or other taxing authority against the Common Areas and attributable to such Owner's Lot and interest in the Common Areas. 12.9 Security. Neither the Association nor Declarant shall in any way be considered insurers or guarantors of security within the Property. Neither the Association nor Declarant shall be held liable for any loss or damage for failure to provide adequate security or ineffectiveness of security measures undertaken. All Owners, Occupants, invitees and guests acknowledge that the Declarant, Association, Board or Committee have made no representations or warranties, expressed or implied, about fire protection systems, burglar alarm systems or other security systems designated by or installed according to guideless established by the Declarant, Association, Board or Committee. 12.10 Owner Liability and Duty. Each Owner shall indemnify and hold harmless the Association and Declarant for any injury to any person or damage to the Common Areas or any equipment thereon which may be sustained by reason of the negligence of said Owner or of his guests, employees, invitees or tenants. The damage and costs incurred by the Association and/or Declarant as a result thereof shall become a Special Assessment against such Owner and his Lot, and shall be subject to levy, enforcement and collection in accordance with the Association Lien procedure provided for in this Declaration. The Association reserves the right to charge a Special Assessment to such Owner equal to the increase, if any, in the insurance premium directly attributable to the damage or injury caused by such Owner or by the use of the Lot of such Owner. Notwithstanding the foregoing, the Association and Declarant shall hold each Owner harmless from liability for loss or injuries that are covered by insurance then maintained by the Association, except for an amount equal to the increase, if any, in the insurance premium directly attributable to the damage or injury caused by such Owner or by the use of the Lot of such Owner. ARTICLE 13 DESTRUCTION AND RESTORATION 13.1 Restoration of Common Areas. Except as otherwise provided in this Declaration, in the event of any destruction of any portion of the Common Areas or any other Improvements insured by the Association, the Association shall restare and repair the same to its former condition, as promptly as practical. The proceeds of any insurance shall be used for such purpose. The Board is authorized to have the necessary documents prepared and executed, and to take such other action so as to effect such reconstruction as promptly as practical. The 27 � Common Areas and all other Improvements shall be constructed or rebuilt substantially in accordance with the original construction plans available, with such changes as are recommended by the Committee. In the event that the amount available from the proceeds of such insurance policies for such restoration and repair shall be less than the estimated cost of restoration and repair, an Assessment may be levied by the Board upon the Owners and their Lots in order to provide the necessary funds for such reconstruction over and above the amount of any insurance proceeds available for such purpose ("Reconstruction Assessment"). Reconstruction Assessments shall be borne by the Owners in the same proportions as their Pro rata Share of General Assessments. If, prior to the end of the Development Period, the Common Areas or Improvements thereon are destroyed and the insurance proceeds are less than the estimated cost of repair or reconstruction, the Declarant may elect not to restore or rebuild some or all of the Improvements or Common Areas or may elect to restore or rebuild only those for which the Declarant has received insurance proceeds sufficient to pay all costs associated therewith. Reconstruction Assessments shall be approved and levied in the same manner as Capital Improvement Assessments as set forth in Section 5.3. 13.2 Restoration Obligations of Owners. In the event of the damage or destruction of any portion of a Lot or the Improvements thereon, it shall be the duty of the Owner of such Lot, as soon as may be practical, to repair or replace the damage or destruction or such portion thereof as will render such damage or destruction indiscernible from the exterior of the Lot. Any reconstruction, replacement or repair required by this section shall be in accordance with the original plans and specifications of the Lot or plans and specifications approved by both the Committee and the holders of Mortgage(s) of Record which encumber(s) the Lot. 13.3 Condemnation. In the event that all or any portion of the Common Areas shall be taken or condemned by any authority exercising the power of eminent domain, the condemnation award shall be used to restore the remaining Common Areas, and any balance shall be turned over to the Association. The Board shall have the exclusive right to prosecute any such proceedings; provided, however, that nothing contained herein to the contrary shall prevent an Owner from joining in the proceeding for purposes of claiming that the condemnation action has materially affected said Owner's Lot. The entire award shall be paid to the Association in trust for the benefit of the Owners. The Board shall distribute the portion of the award not used to restore the Common Areas to the Owners in proportion to their Pro rata Share of General Assessments; provided, however, that if a Lot is encumbered by a Mortgage or Mortgages which has or have a provision relating to condemnation, then in-lieu-of distributing the award to the Owner of said Lot, the Board shall distribute the award directly to the Mortgagee of the Mortgage with the highest priority and seniority for distribution or payment in accordance with the terms and conditions of said Mortgagee's Mortgage. ARTICLE 14 PROTECTION OF MORTGAGEES 14.1 Priority of Mortgages. Notwithstanding all other provisions hereof the liens created under this Declaration upon any Lot for Assessments shall be subject to tax liens on the Lot in favor of any assessing unit and/or special district and be subject to the rights of the secured party in the case of any indebtedness secured by first lien Mortgages which were made in good faith and for value upon the Lot. Where the Mortgagee of a Lot, or other purchaser of a 28 . . Lot, obtains possession of a Lot as a result of Mortgage foreclosure or deed in lieu thereof, such possessor and has successors and assigns, shall not be liable for the share of any Assessment by the Association chargeable to such Lot which becomes due prior to such possession, but will be liable for any assessment accruing after such possession. Such unpaid share of Assessments shall be deemed to be common expenses collectible from all of the Owners including such possessor, his successor and assigns. For the purpose of this section, the terms "Mortgage" and "Mortgagee" shall not mean a real estate contract or the vendor, or the designee of a vendor thereunder, or a mortgage or deed of trust (or Mortgagee or beneficiary thereunder) securing a deferred purchase price balance owed with respect to a sale by an individual Owner other than Declarant. 14.2 Effect of Declaration Amendments. No amendment of 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 provision of this Section conferring rights upon Mortgagees, which is inconsistent with any other provision of this Declaration, shall control over such other inconsistent provisions. 14.3 Right of Lien Holder. A breach of any of the provisions, conditions, restrictions, covenants, easements or reservations herein contained shall not affect or impair the lien or charge of any bona fide Mortgage made in good faith and for value on any Lots, provided, however, that any subsequent Owner of the Lot shall be bound by these provisions whether such Owner's title was acquired by foreclosure or trustee's sale or otherwise. 14.4 Copies of Notices. If the first Mortgagee of any Lot has so requested the Association in writing, the Association shall give written notice to such first Mortgagee that an Owner/Mortgagor of a Lot has for more than sixty (60) days failed to meet any obligation under this Deceleration. Any first Mortgagee shall, upon written request, also be entitled to receive written notice of all meetings of the Association and be permitted to designate a representative to attend all such meetings. 14.5 Furnishing of Documents. The Association shall make available to prospective purchasers, Mortgagees, insurers, and guarantors, at their written request, current copies of the Declaration, Bylaws, Articles and other rules governing the Project, and the most recent balance sheet and income/expense statement for the Association, if any has been prepared. ARTICLE 15 DURATION AND AMENDMENT 15.1 Duration. This Declaration shall continue in full force and run with and bind the Property for a term of twenty (20) years from the date of this Declaration, after which time this Declaration shall be automatically extended for successive periods of ten (10) years, unless a declaration of termination or declaration of renewal is recorded meeting the requirements of an atnendment to this Declaration as set forth in Section 14.2 below. 15.2 Amendment. Notice of the subject matter of a proposed amendment to this Declaration in reasonably detailed form shall be included in the notice of any meeting of the 29 . � • Association at which a proposed amendment is to be considered. The amendment shall be adopted if approved by the vote, in person or by proxy, or written consent, of a Majority Vote; provided, however, that until the Turnover Date no termination or other amendment shall be effective without the written approval of Declarant. It is specifically covenanted and understood that any amendment to this Declaration properly adopted will be completely effective to amend any or all of the covenants, conditions and restrictions contained herein which may be affected and any or all clauses of this Declaration unless otherwise specifically provided in the section being amended or the amendment itself. A copy of each amendment which has been properly adopted shall be certified by at least two (2) officers of the Association and the amendment shall be effective when the certificate of amendment is recorded. Notwithstanding the foregoing, any of the following amendments, to be effective, must be approved in writing by the record holders of one-hundred percent (100%) of the aggregate value of Mortgages encumbering the Property at the time of such amendment (provided that any Mortgage holder that falls to submit written notice of approval or disapproval of any such amendment within sixty (60) days of notice from the Association regarding such amendment shall be deemed to have consented to such amendment): (a) Lien Rights. Any amendment which affects or purports to affect the validity or priority of encumbrances or the rights or protections granted to Mortgagees as provided in ARTICLE 13. (b) Assessments. Any amendment which would necessitate a Mortgagee after it has acquired a Lot through foreclosure to pay more than its Pro rata Share of any Assessments accruing after such foreclosure. (c) Cancellation. Any amendment which would or could result in a Mortgage being cancelled by forfeiture. (d) Mortgagees. Any amendment which would have a material, adverse effect on any Mortgagee. 15.3 Amendments and Modifications by Declarant. During the Development Period, Declarant shall have as a Development Right, the right to modify or amend this Declaration or any design guidelines adopted by the Committee. In addition, Declarant may at any time, until the Turnover Date, record such amendments to the Declaration and Plat as are necessary. Within thirty (30) days after any such modification or amendment by Declarant, Declarant shall deliver a written notice of such modification or amendment to each Owner, which notice shall include a copy of the executed, acknowledged and recorded modification or amendment. ARTICLE 16 LIMITATION OF LIABILITY 10.1 No Personal Liability. So long as a Board member, Association cominittee member, Association officer, ar Declarant exercising the powers of the Board, has acted in good faith, without willful or intentional misconduct, upon the basis of such information as may be possessed by such person, no such person shall be personally liable to any Owner, or other party, 30 � � , including the Association, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error, negligence (except gross negligence), any discretionary decision, or failure to make a discretionary decision, by such person in such person's official capacity. Provided, that this section shall not apply where the consequences of such act, omission, error or negligence are covered by insurance or bonds obtained by the Board. 10.2 Indemnification of Board Members. Each Board member or Committee member, or Association officer, or Declarant exercising the powers of the Board, and their respective heirs and successors, shall be indemnified by the Association against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed in connection with any proceeding to which he may be a party, or in which he may become involved, by reason of being or having held such position at the time such expenses or liabilities are incurred, except in such cases wherein such person is adjudged guilty of intentional misconduct, or gross negligence or a knowing violation of law in the performance of his duties, and except in such cases where such person has participated in a transaction from which said person will personally receive a benefit in money, property, or services to which said person is not legally entitled, Provided, that, in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being in the best interest of the Association. Nothing contained in this Section shall, however, be deemed to obligate the Association to indemnify any Member or Owner of a Lot who is or has been a Board member or officer of the Association with respect to any duties or obligations assumed or liabilities incurred by him under and by virtue of the Declaration as a Member or Owner of a Lot covered thereby. ARTICLE 17 INSURANCE; LOSSES. 17.1 Insurance. The Board shall have authority in the exercise of its discretion to obtain and maintain at all times as a common expense a policy or policies and bonds of liability insurance and property insurance covering the ownership, use and operation of all the Common Areas (and Common Area improvements), including common personal property and supplies belonging to the Association, fidelity coverage for Association Board inembers (including Declarant), officers, employees or agent, and such other insurance as the Board may deem advisable or as may be required by the Federal National Mortgage Association, Federal Home Loan Mortgage Association, Veterans Administration or similar agencies or lending institutions. All policies shall include an endorsement providing coverage for directors and officers of the Association. Each Owner at the Owner's expense shall be obligated to maintain adequate casually and liability insurance with respect to the Lot and any improvements thereto or personal property located therein. ARTICLE 18 GENERAL PROVISIONS 18.1 Legal Proceedings. Failure to comply with any of the terms of this Declaration, the Articles, the Bylaws, or any regulations by an Owner or Occupant, his guests, employees, invitees or tenants, shall be grounds for relief which may include, without limitation, an action to recover sums due for damages, injunctive relief, foreclosure of lien, lien, or any combination thereof, which relief may be sought by Declarant, the Association, the Board, or, if appropriate, 31 ) �' � by an aggrieved Owner. Failure to enforce any provision thereof shall not constitute a waiver of the right to enforce said provision, or any other provision thereof. The Association, the Board, any Owner(so long as such Owner is not at that time in default hereunder), or Declarant shall be entitled to bring an action for damages against any defaulting Owner, and in addition may enjoin any violation of this Declaration by any Owner. Any judgment rendered in any action or proceeding pursuant thereto shall include a sum for attorneys' fees, including attonleys' fees incurred on appeal, in such amount as the Court may deem reasonable in favor of the prevailing party, as well as the amount of any delinquent payment, together with interest thereon at the rate established by the Board therefare from time to time, costs of collection and court costs. Each remedy provided for in this Declaration shall be cumulative and not exclusive or exhaustive. 18.2 Arbitration. Except with respect to the fareclosure of liens pursuant to this Declaration, any dispute or claim by a party hereto arising under or in connection with this Declaration shall be settled by arbitration in King County, Washington, as set forth in this Section. Each party will have full access to the courts to compel compliance with these arbitration provisions, or to enforce an arbitration award. In addition, either party may seek injunctive relief, whether or not arbitration is available or under way. The parties to this Declaration acknowledge and agree that the provisions of this Declaration may be specifically enforced. The arbitration will take place pursuant to the arbitration rules and procedures set forth in RCW 7.04, with a single arbitrator. In any arbitration, the prevailing party shall be entitled to reimbursement of its costs, witness fees, and attorneys' fees. The fees charged by the arbitrator and the costs of the proceeding shall be paid by the non-prevailing party. 18.3 Conveyances; Notice Required. The right of an Owner to sell, transfer, or otherwise convey his Lot shall not be subject to any right of approval, disapproval, first refusal, or similar restriction by the Association or the Board, or anyone acting on their behalf. An Owner intending to sell a Lot shall deliver a written notice to the Association, at least ten (10) business days before closing, specifying the Lot being sold, the name and address of the purchaser, of the closing agent, and of the title insurance company insuring the purchaser s interest, and the estimated closing date. The Association shall have the right to notify the purchaser, the title insurance company and the closing agent of the amount of unpaid assessments and charges outstanding against the Lot, whether or not such information is requested. 18.4 Severability. The provisions hereof shall be deemed independent or severable, and a determination of invalidity or partial invalidity or enforceability of any one provision or portion hereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof. 18.5 Interpretation. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the creation and operation of the Community and for the maintenance of the Common Areas, and any violation of this Declaration shall be deemed to be a nuisance. The article and section headings, titles and captions have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Unless the context otherwise requires, as used herein, the singular and the plural shall each include the other and the masculine, feminine or neuter shall each include the masculine, feminine and neuter. All pronouns and any variations thereof shall be 32 � �; • deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons may require. 18.6 Association Waiver. Notwithstanding anything herein to the contrary, to the extent that any Owner waives any claims against Declarant, or releases the Declarant from any claim with respect to a Lot, the Common Areas, the Improvements, and/or the Community, then the Association shall be deemed to have likewise released Declarant (and its officers, directors, shareholders, members, partners, employees, agents and representatives) from any claim with respect to such Lot, the Common Areas, the Improvements, and/or the Community on a pro rata basis applicable to each such Lot. 18.7 No Public Right or Dedication. Nothing contained in this Declaration shall be deemed to be a gift or dedication of all or any part of the Property to the public, or for any public use. 18.8 No Third Party Rights. This Declaration is made for the exclusive benefit of the Association, the Board, the Owners, the Members, the Declarant and their successors. This Declaration is expressly not intended for the benefit of any other Person besides the Association, the Board, the Owners, the Members, the Declarant and their successors. No third party shall have any rights under this Declaration against any of the Association, the Board, the Owners, the Members, the Declarant and their successors. 18.3 Successor and Assigns. This Declaration shall be binding upon and shall mute to the benefit of the heirs, personal representatives, successors and assigns of Declarant, and the liens, personal representatives, grantees, lessees, sublessees and assignees of the Owners. 18.4 Joint and Several Liability. In the case of joint ownership of a Lot, the liability of each of the Owners thereof in connection with the liabilities and obligations of Owners, set forth in or imposed by this Declaration, shall be joint and several. 18.9 Notices. Personal delivery of notice to one or more Co-Owners of a Lot or to any general partner of a partnership owning a Lot shall be deemed delivery to all Co-Owners or to the partnership, as the case may be. Personal delivery of such notice to any officer or agent for the service of process on a corporation shall be deemed delivery to the corporation. In lieu of the foregoing, notice may be delivered by regular United States mail, postage prepaid, addressed to the Owner at the most recent address furnished by such Owner to the Association or, if no such address shall have been furnished, to the street address of such Lot. Such notice shall be deemed delivered forty-eight (48) hours after the time of such mailing, except for notice of a meeting of Members or of the Board in wliich case the notice provisions of the Bylaws shall control. Any notice to be given to the Association may be delivered personally to any member of the Board, or sent by United States mail, postage prepaid, addressed to the Association at such address as shall be fixed from time to time and circulated to all Owners. [SigjtatLtr•e Page Follows] 33 , �� IN WITNESS WHEREOF, Declarant has executed this Declaration the day and year first hereinabove written. DECLARANT: SUMMIT FRENCHIES, LLC BY: SUMMIT HOMES OF WASHINGTON, LLC ITS: OPERATING MANAGER B • � Y '' Name: ryan hite Title: Manager STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that�t�,1 q,,,� W�2, is the person who appeared before me, and said person acknowledge that he/she signed this instrument, on oath stated that he/she was autharized to execute t$e i stru e t and acknowledged it as the o�j� p�(..� ,a��' o�ie�and voluntary act of such party for the uses and p oses mentioned in the instrument. DATED: this I�day of , 20�. (Seal or stamp,�����`\c,T�1 Nq�����•,,,� �� ����� Q` `SS;oR• G�Q '� Notary S�gnatu e C��` F' : . � :'��` +.o,;'.,�.c. � � ,n5 r�0-��.t s = ?c° ND '��RY N': = Print/Type Name = � ��� = Notary Public in and for the State of Washington, ��'��'• �B��G :�_� residing at -�o� y O � ''.���'F''��.�.;Ofi:20���(�'�`���` My appointment expires_ � (0 6�p �''�i,,�F„WASH`����� 34 � �� � EXHIBIT A LEGAL DESCRIPTION OF CANYON TERRACE PARGEL A: LflTS X, Y, A�ID Z, KING COUNTY BdUNDARY LI�JE ADJUSTMENT NUA�BER �.�6LQ093, RE�ORD�D UN[7ER RECORDING �JUMBER 2007t�4199dOtJ19. !N K3NG COUNTY, WASH�t'd�T.�JN. TQGETt�lER WITH A NON—EXGLUSNE EASEME�T FQR RpAO AS Ci;SCL(3SE� �3Y INSTR�6McNTS REC�RaED UNDER RLCORDfNG NUM�ERS 7808090599 AN� 88Q53�0993. PARCEL E: TRACT S C}F NQRTHWFSTERt� GARpEN TRA��S, C1IVISIDN 5, ACCORpIhJG TO TFiE PLAT THEREQF', RECORDEn #N VOLUME 47 OF PLATS, PAGE 90, IIV K9�lG COl3NT�', WASh�st�G70N, EXGEPT TH� WEST 15Q FEET THEREOF, AS MEASUREI� AI�C}�!G TH� SCIUTN i�INE OF SA�D TRACT 5; TQGETNER WITH THE NC3RTFiERt_Y 30 FEET {7� THAT PpRTIQN OF TRACT 5, OF SA![? Nt3RTHWESTERN GAR�7�N TRACTS CiIV. NO 5, DCSGf21EiE0 AS F"OLZCJWS: BEGINMihIG AT THE NORTHEAST CORNER OF TRACT 4 OF SAID NORT3�WESTERtv GAR�?EN TRACTS DfV. NO 5; THENCE SOUTH 1'08'1p" WEST ALONG THE WEST LINE 0� SAID TRACT 5, A D�STANC� C7F 'ZO FEET: THENCE SDUTM 89'34'39" EA51', 150 FEET; THENCE l�Or�TH 1'08'1Ci" EAST, 150 FEE+ TC THE NO�2TH LIN� (}F SAIQ TRACT 5; TNE�lCE t�C?RTH F39'34'39" WEST ALONG SAID LIt�E, 103.38 F'EE� TO AN ANGL� PC71N7; THE�bC� SOU TH 0'25'2�'° WEST, 3p FEET; THE3vCE �40�2TH 89'34'39" WEST, 46.89 FEET TO T�ic POINT C�F BEGINNa�i�. 35