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HomeMy WebLinkAboutL_Declaration_of_CC&Rs_Lakeview_Crest_190124_v2.pdf DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKEVIEW CREST A Plat Community created pursuant to the Washington Uniform Common Interest Ownership Act THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKEVIEW CREST, a plat community, is made by The Quadrant Corporation, a Washington corporation, doing business as Quadrant Homes ("Declarant”), for the Real Estate legally described in Exhibit A (the “Plat Community”) and for such additional real property as Declarant elects to subject to the Declaration, if any. The Declaration supplements the provisions of the Washington Uniform Common Interest Ownership Act, as amended, Chapter 64.90 RCW, which Act applies to and governs the administration of this Plat Community. Article I Creation of the Community 1.1. Purpose and Intent. Declarant intends by Recording this Declaration to create a general plan of development for the Plat Community identified in the title to this Declaration. The Association shall administer and enforce this Declaration and the other Governing Documents in a manner consistent with Chapter 64.90 RCW. 1.2. Binding Effect. The Plat Community and any property which is made a part of the Plat Community in the future by Recording one or more Supplemental Declarations or Amendments to the Declaration, shall be owned, conveyed, and used subject to all of the provisions of this Declaration and the other Governing Documents, which shall run with the title to all Units, Limited Common Elements and Common Elements located in the Plat Community. This Declaration shall be binding upon all Persons having any right, title, or interest in any portion of the Plat Community, their heirs, successors, successors-in-title, and assigns. This Declaration and the other Governing Documents shall be enforceable by Declarant, the Association, any Unit Owner, and their respective legal representatives, heirs, successors, and assigns, perpetually to the extent permitted by law. If any provision of this Declaration is determined by judgment or court order to be invalid, or invalid as applied in a particular instance, the invalid provision shall be severed from the remainder and shall not affect the validity of the other provisions or applications. Article II Additional Definitions The terms used in this Declaration and the other Governing Documents shall generally be given their natural, commonly accepted definitions unless otherwise specified in RCW 64.90.010. Additional definitions specific to this Declaration are capitalized and defined as set forth below. 2.1. “Bond”: Any insurance, pledge of property or other undertaking by a Declarant or Dealer transferred to a third party as security for the performance of a task subject to approval by the Local Jurisdiction, which upon completion of the Declarant’s or Dealer’s performance is refundable to the Person who provided the security. page 2 2.2 "Community-Wide Standard": The standard of conduct, maintenance, or other activity generally prevailing throughout the Plat Community. Such standard shall be established initially by Declarant and may contain both objective and subjective elements. The Community-Wide Standard may evolve as development progresses and as the needs and demands of the Plat Community change. 2.3. “Local Jurisdiction”: Any governmental authority having jurisdiction over the Plat Community, for a matter described in this Declaration. A Local Jurisdiction may include the State of Washington, a County, a City, or a local sewer or water district or other governmental entity assigned authority by law to regulate activities in the Plat Community. A Local Jurisdiction may refer to different governmental authorities, depending upon which governmental authority is assigned responsibility to regulate activities described in this Declaration. 2.4. “Permits”: Collectively, the permits, land use restrictions and conditions of plat approval, as determined, approved and issued by the Local Jurisdiction related to the development and construction of improvements located at the Properties, as such may be amended or modified from time to time. 2.5. “PIC”: The Property Improvement Committee, as described in Article IV, Section 4.2. 2.6 “Protected Trees” (also referred to in some jurisdictions as Street Trees, shall mean the trees that are required to be planted, located and maintained in the Platted Community pursuant to notes on the face of the Plat, the Permits, or described by this Declaration, if tree protection is required by the Local Jurisdiction. A pre-existing tree or a tree planted by the Declarant on a Unit, Limited Common Element or a Common Element at the time the Unit is purchased by a Unit Owner is considered a Protected Tree. Protected Trees that are located within Common Elements are owned by the Association. Any tree located within twenty (20) feet of a public right of way (whether such right of way is located within or outside the Platted Community), shall be presumed to be a Protected Tree unless the Association, the Declarant or the Local Jurisdiction confirm otherwise in writing to the Unit Owner. 2.7 "Recording," or "Recorded": To file, the filing, or filed of record in the public real estate records of the County in which the Plat Community is located, or such other place which is designated as the official location for recording deeds and similar documents affecting title to Real Estate. The date of Recording shall refer to that time at which a document, map, or plat is Recorded. 2.8. "Residential Design Guidelines": The architectural, design, and construction guidelines and review procedures adopted pursuant to Article IV, as they may be amended, which establish architectural standards and guidelines for improvements and modifications to Units. 2.9. “Specific Assessments”: Assessments permitted by RCW 64.90.480(4), to be made only upon certain Units and Unit Owners. 2.10. "Supplemental Declaration": An instrument Recorded which subjects additional Real Property to this Declaration and/or imposes, expressly or by reference, additional restrictions and obligations on the land described in such instrument. 2.11. "Use Restrictions": The initial Use Restrictions set forth in Article III as they may be supplemented, modified, and repealed, which govern the use of property, activities and conduct within the Plat Community. page 3 Article III Use and Conduct 3.1. Authority to Enact Use Restrictions. (a) Subject to the provisions of RCW 64.90.510, the Permits, the Governing Documents, and the Board's duty to exercise business judgment and reasonableness on behalf of the Association and the Unit Owners, the Board may adopt, modify, cancel, limit, create exceptions to, or expand the Use Restrictions. The Board shall give Notice concerning any such proposed action at least five (5) business days prior to the Board meeting at which such action is to be considered. Unit Owners shall have a reasonable opportunity to be heard at a Board meeting prior to such action being taken. Such action shall become effective unless disapproved at a meeting by Unit Owners. The Board shall have no obligation to call a meeting of the Unit Owners to consider disapproval except upon receipt of a petition as required for Special Meetings in RCW 64.90.445(1)(b). Upon receipt of such petition prior to the effective date of any Board action, the proposed action shall not become effective until after such meeting is held, and then subject to the outcome of such meeting. Alternatively, Unit Owners may vote at a Special Meeting to adopt Use Restrictions which modify, cancel, limit, create exceptions to, or expand the Use Restrictions then in effect. Prior to any action taken under this Section 3.1(a) becoming effective, the Board shall provide Notice (containing a copy of the new Use Restriction or explanation of any changes to the Use Restrictions) to each Unit Owner. The effective date shall be at least 30 days following distribution to the Unit Owners. The Association shall provide, without cost, a copy of the Use Restrictions then in effect to any requesting Unit Owner or holder of a Security Interest. Nothing in this Article shall authorize the Board or the Unit Owners to modify, repeal, or expand the Residential Design Guidelines or other provisions of this Declaration. In the event of a conflict between the Residential Design Guidelines and the Use Restrictions, the Residential Design Guidelines shall control. (b) The procedures required under this Section shall not apply to the enactment and enforcement of Rules (e.g., administrative issues, regulations governing the use of the Common Elements, etc.) unless the Board chooses in its discretion to submit to such procedures. Examples of such administrative Rules not governed by this Section shall include, but not be limited to, hours of operation of a recreational facility, use of private trails, and the method of allocating or reserving use of a facility (if permitted) by particular individuals at particular times. The Board shall exercise business judgment in the enactment, amendment, and enforcement of the Rules. 3.2. Unit Owners' Acknowledgment and Notice to Purchasers. All Unit Owners are given notice by this Section that use of their Units and the Common Area is limited by the Use Restrictions as they may be amended, expanded, and otherwise modified hereunder. Each Unit Owner, by acceptance of a deed, acknowledges and agrees that the use and enjoyment and marketability of the Unit can be affected by this provision and that the Use Restrictions may change from time to time. All Purchasers of Units are on notice that changes may have been adopted by the Association. Copies of the current Use Restrictions may be obtained from the Association. 3.3. Protection of Unit Owners and Others. Except as may be contained in this Declaration either initially or by amendment or in the initial Use Restrictions, all Use Restrictions shall comply with RCW 64.90.510 and the following: page 4 (a) Similar Treatment. Similarly situated Unit Owners shall be treated similarly. (b) Displays. The rights of Owners to display religious and holiday signs, symbols, and decorations inside structures on their Units of the kinds normally displayed in dwellings located in single-family residential neighborhoods shall not be abridged, except that such shall be consistent with Federal, State and the Local Jurisdiction’s laws. The Association may adopt as Rules time, place, and manner restrictions with respect to any displays (including those outside of a dwelling) visible from outside the dwelling. No Use Restrictions shall regulate the content of political signs; however, Rules may regulate the time, place, and manner of posting such signs (including design criteria). (c) Household Composition. No Use Restriction shall interfere with the freedom of Unit Owners to determine the composition of their households, except that the Association shall have the power to (1) require that all occupants be members of a single housekeeping unit, (2) limit the total number of occupants permitted in each Unit on the basis of the size and facilities of the Unit, (3) limit fair use of the Common Area, (4) limit or prohibit the occupancy of Units by persons who have been convicted of a crime for which continued supervision after conviction is imposed upon the proposed occupant, and (5) on the basis of compelling compliance with applicable law. (d) Activities Within Dwellings. No Use Restriction shall interfere with the activities carried on within the confines of dwellings, except that the Association may prohibit activities not normally associated with property restricted to residential use, it may regulate rental of Units, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive noise or traffic, that create unsightly conditions visible outside the dwelling, that create an unreasonable source of annoyance, or that involve illegal conduct. (e) Household Occupations. No Use Restriction may interfere with the rights of a Unit Owner or occupant residing in a Unit to conduct business activities within the Unit so long as (i) the existence or operation of the business activity is not apparent or detectable by sight, sound or smell from outside the Unit; (ii) the business activity is consistent with the residential character of the Plat Community and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Plat Community, as may be determined in the Board's sole discretion; (iii) any goods, materials or supplies used in connection with any trade, service or business, wherever the same may be conducted, be kept or stored inside any building on any Unit and that they not be visible from the exterior of the buildings located at the Unit and (iv) it is as otherwise allowed by the Permits and applicable law. Nothing in this Section shall permit (1) the use of a Unit for a purpose which violates law, regulations, Rules or applicable zoning codes, or (2) activities that cause a significant increase in neighborhood traffic, or (3) modification of the exterior of the Unit. The Board may, from time to time, promulgate Rules restricting activities pursuant to the authority granted to the Association under RCW 64.90.510, this Declaration, and the other Governing Documents. (f) Allocation of Burdens and Benefits. No Use Restriction shall alter the allocation of financial burdens among the various Units or rights to use the Common Area to the detriment of any Unit Owner over that Unit Owner's objection expressed in writing to the Association. Nothing in this provision shall prevent the Association from changing the Common Area available, from adopting generally applicable Rules for use of Common Area, or from denying use privileges to those who abuse the Common Area or violate the Governing Documents. page 5 (g) Abridging Existing Rights. No Use Restriction shall require a Unit Owner to dispose of personal property that was in or on a Unit prior to the adoption of such Use Restriction and which was in compliance with all Use Restrictions previously in force. This dispensation shall apply only for the duration of such Unit Owner's ownership of such personal property, and this right shall not run with title to any Unit. (h) Care of Protected Trees. The Unit Owners and the Association are prohibited from (1) voting to abandon or ceasing the maintenance of the Protected Trees, or (2) removing or altering (other than appropriate pruning) the Protected Trees without permission of Declarant, until any maintenance bond related to Protected Trees is the subject of a bond is released and fully exonerated, without charge or reduction, or upon the bonds’ forfeiture. Thereafter, the restrictions related to Street Tree preservation shall be determined by the Local Jurisdiction. (i) Reasonable Rights To Develop. No Use Restriction, Rule or action by the Association or Board shall unreasonably impede Declarant's right to develop the Plat Community. Subsections (a) through (i) of this Section shall only limit activities described in Section 3.2; they shall not apply to amendments to this Declaration. 3.4 Initial Use Restrictions. The following Initial Use Restrictions shall apply to the Plat Community until such time as they are amended, modified, repealed, or limited by the Association. (a) General. The Units, Common Elements and Limited Common Elements shall be used only for Residential Purposes (which may include, without limitation, offices for any property manager retained by the Association or business offices for Declarant, Dealers, or the Association consistent with this Declaration and any Supplemental Declaration). (b) Temporary Structures Prohibited. No basement, tent, shack, garage, barn or other outbuilding or buildings or any structure of a temporary or moveable character erected or placed on the Properties shall at any time be used as living quarters except as specifically authorized by the PIC. (c) Nuisances. No noxious or undesirable thing, activity or use of any Unit in the Properties shall be permitted or maintained. If the PIC shall determine that a thing or use of any Unit or any part of the Properties is undesirable or noxious, such determination shall be conclusive. The PIC may recommend and the Board may direct that steps be taken as is reasonably necessary including, without limitation, the institution of legal action or the imposition of fines to abate any activity, remove anything or terminate any use of property which is determined by the PIC or described in this Declaration to constitute a nuisance. (d) Limitation on Animals. No animal, livestock or poultry of any kind shall be raised, bred or kept on any Unit, except cats, dogs, birds or fish may be kept if they are not kept, bred or maintained for any commercial purpose, and they shall not be kept in numbers or under conditions reasonably objectionable in a closely built up residential community. Animals shall not be allowed to roam loose outside the limits of any Unit on which they are kept. Provided, however, the Board in its discretion may designate certain tracts as off-leash dog areas, subject to reasonable Rules, so long as page 6 (i) the dog(s) are under voice command; (ii) the dog(s) are non-aggressive; and (iii) all solid waste is removed by the Unit Owner utilizing the Common Elements for such purposes. Any dogs must be kept so as to minimize excessive noise from barking or otherwise shall be considered a nuisance according to the terms of this Declaration. Each Unit Owner shall be responsible for cleaning up after his or her animal for any waste or damage to any area outside of the Owner’s Unit. (e) Limitation on Signs. The Association may regulate or prohibit all signs on the Common Elements, Limited Common Elements and Units, to the full extent allowed by applicable law and Section 3.3(b). The Association may establish guidelines or restrictions including duration, location and appearance of signs. (f) Completion of Construction Projects. The work of construction of all building and structures shall be pursued diligently and continuously from commencement of construction until the structures are fully completed and painted. All structures shall be completed as to external appearance, including finish painting, within one year of the date of commencement of construction, except such construction as is performed by Declarant, which shall be exempt from the limitations contained in this Section. Front yard landscaping must be completed within ninety (90) days of occupation of a Unit, and rear yard landscaping must be completed within one hundred eighty (180) days of occupation of a Unit. Except with the approval of the PIC, no person shall reside on the premises of any Unit until such time as the improvements to be erected on the Unit in accordance with the plans and specifications approved by the PIC have been completed. (g) Unsightly Conditions. No unsightly conditions shall be permitted to exist on any Unit. Unsightly conditions shall include, without limitation, laundry hanging or exposed in view for drying, litter, trash, junk or other debris; inappropriate, broken or damaged furniture or plants; non- decorative gear, equipment, cans, bottles, ladders and other such items; and no awnings, air conditioning units, heat pumps or other projections shall be placed on the exterior walls of any Unit unless prior written approval shall have been obtained from the PIC. Garbage containers and recycle bins are to be stored so as not to be seen from the street, except on pick-up days. Unit Owners should insure garbage containers are secure from overflowing or spills and to keep litter and debris picked up around their property at all times. (h) Antennas, Satellite Reception. Satellite dishes of no more than one meter in diameter or diagonal measurement are permitted on a Unit without PIC approval. All over-the-air reception devices shall comply with the Residential Design Guidelines or other applicable Rules adopted by the Association pertaining to the means, method and location of antennas and satellite dishes. PIC approval will be consistent with FCC regulations. (i) Roofs. Roofs on all buildings must be finished with materials approved for use by the PIC. More than one type of material may be approved. (j) Fences, Walls. In order to preserve the aesthetics of the Plat Community, no fence, wall or hedge shall be erected or placed on any Unit unless prior written approval has been obtained from the PIC. The design and color of any fence, whether visible to the other Units or not, shall be constructed and finished according to the standard fence detail, as such detail is initially designated by the PIC. If a standard fence detail is attached to this Declaration, such fence detail and any required color for a fence may be modified by the PIC. page 7 (k) Residential Purposes Only. Except for Declarant's or a Dealer’s temporary sales, construction offices and model homes, no Unit shall be used for other than one detached single family residential dwelling, with driveway parking used for not more than three cars. (l) Underground Utilities Required. Except for any facilities or equipment provided by the Declarant or any utility, all electrical service, telephone lines and other outdoor utility lines shall be placed underground. (m) Drainage Waters. Following original grading of the roads and ways of the Plat Community, no drainage waters shall be diverted or blocked from their natural course so as to discharge upon any public or private road serving as a right-of-way. A Unit Owner, prior to making any alteration in the natural drainage or a constructed drainage system must make application to and receive approval from the PIC or, if required by law, the Local Jurisdiction. Any enclosing of drainage waters in culverts or drains or rerouting thereof across any Unit as may be undertaken by or for the Unit Owner shall be done by and at the expense of such Owner. (n) NBA Restrictions and Maintenance. All areas designated on the Map as Native Growth Protection Area, Sensitive Area, Critical Area, Buffer, Natural Buffer Area, Wetland or Wetland Buffer, if any (collectively, “NBA”) shall be left permanently undisturbed in a substantially natural state. No clearing, grading, filling, building construction or placement, or road construction of any kind shall occur within these areas, except the activities approved by the Local Jurisdiction. The Association shall be responsible for operating, maintaining and restoring the condition of the NBA in the event any unauthorized disturbance occurs; however, in the event that this disturbance is determined to be the fault of a party, the Association may pursue a claim for reimbursement of damages to the NBA from the party disturbing the area. The Association shall be guided in its maintenance of the NBA the provisions contained in the ordinances of the Local Jurisdiction. (o) Timeshares. No operation of a timesharing, fraction-sharing, or similar program whereby the right to exclusive use of the Unit rotates among participants in the program on a fixed or floating time schedule over a period of years, is permitted. (p) Conversion of Garages. Conversion of any garage, attic, or other unfinished space, other than a basement, to finished space for use as an apartment or other integral part of the living area on any Unit is prohibited. (q) Irrigation Systems. No sprinkler or irrigation systems or wells of any type may draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface waters within the Plat Community, except that Declarant shall have the exclusive right to draw water from such sources and to reduce the level of such bodies of water, if and to the extent allowed by the Permits. (r) Burning. No open-air burning or use of wood stoves is permitted, except in compliance with Local Jurisdiction ordinances. However, outdoor cooking facilities, such as barbeques, are permissible subject to Rules and Local Jurisdiction ordinances. page 8 (s) Limitation on Storage of Vehicles – Temporary Permits for RVs. Except as hereinafter expressly provided, the Units, Common Elements and/or streets located in the Plat Community shall not be used for the storage and/or overnight parking of any vehicle other than private family automobiles, trucks, motorcycles and commercial vehicles operated by a person residing at the Unit (provided that such commercial vehicles contain a single rear axle). Vehicles shall not be parked on a driveway or street in lieu of being parked in an available space in a garage, except as otherwise provided by Rules established by the Board. Boats, boat trailers, house trailers, campers, trucks, trucks with a camper, or other recreational vehicles or similar object may not be stored and/or parked overnight in any part of the Plat Community, except as specified herein, or as may be permitted by Rules established by the Board. No inoperable vehicles of any kind shall be parked, stored, maintained, or constructed on any Unit or street unless stored in a garage. Notwithstanding the foregoing, Unit Owners who have guests visiting them intending to stay in a camper, trailer, or other form of recreational vehicle may secure written permission from the PIC for guests to park on the driveway of a Unit for a period of up to 72 hours, and not to exceed two weeks in any calendar year. The privilege shall only exist, however, after the written permission has been obtained from the PIC. A Unit Owner that stores a recreation vehicle off-site may park the vehicle on the driveway of a Unit for 48 hours for the purpose of preparing for departure or upon return, to facilitate preparation and return from travel. (t) Changing Unit Contours. The surface grade or elevation of the various Units shall not be substantially altered or changed in any manner which would affect the relationship of such Unit with other Units, or which would result in materially obstructing the view from any other Unit, or which would otherwise produce an effect out of harmony with the general development of the immediate area in which said Unit is located. Whether or not such alteration or change in the elevation or grade of any Unit would be prohibited shall be determined by the Declarant during the period of Declarant control in its sole, subjective discretion. (u) Garbage Disposal. The Unit Owner shall ensure that no garbage can or other receptacle will be visible from any place outside the residence except immediately prior to until immediately after collection day. (v) Prohibited Materials. In order to protect the environment, sensitive areas and water quality precautions must be taken with the storm drainage system on site. The following materials shall not be allowed to enter any surface or subsurface part of the public and/or private drainage system: (i) Petroleum products including, but not limited to, oil, gasoline, grease, fuel oil and heating oil; (ii) Trash and/or debris; (iii) Animal waste; (iv) Chemicals and/or paint; (v) Steam cleaning waste; (vi) Washing uncured concrete for cleaning and/or finishing purposes or to expose aggregate; (vii) Laundry wastes or other soaps; (viii) Pesticides, herbicides, or fertilizers; (ix) Sewerage; (x) Heated water; (xi) Chlorinated water or chlorine; (xii) Degreasers and/or solvents; (xiii) Bark or other fibrous material; (xiv) Antifreeze and/or other automotive products; (xv) Lawn clippings, leaves or branches; (xvi) Animal carcasses; (xvii) Silt; (xviii) Acids or alkalis; (xix) Recreation vehicle wastes; (xx) Dyes, unless prior permission has been granted by the Local Jurisdiction.; (xxi) Construction materials. Any Unit Owner found to have failed to comply with applicable law governing the use, handling or storage of these items shall immediately remove the items and remedy the deficient condition, upon written notice of the Association or the Local Jurisdiction. page 9 Article IV Architecture and Landscaping 4.1. General. No structure or thing shall be placed, erected, or installed upon any Unit within the Plat Community and no improvements or other work (including staking, clearing, excavation, grading and other site work, exterior alterations of existing improvements, or planting or removal of landscaping) shall take place within the Plat Community, except in compliance with this Article, the Residential Design Guidelines adopted pursuant to this Declaration. No approval of the PIC shall be required to repaint the exterior of a structure, if in accordance with the originally approved color scheme, or to rebuild in accordance with originally approved plans and specifications. Any Unit Owner may remodel, paint, or redecorate the interior of his or her Unit without approval, provided that the work performed complies with all laws. However, modifications to the interior of screened porches, patios, and similar portions of a Unit visible from outside the structure and modifications to enclose garages as living space shall be subject to approval. All dwellings constructed on any portion of the Plat Community shall be designed by and built in accordance with the plans and specifications of a licensed architect or licensed building designer unless otherwise approved by Declarant or Declarant’s designee, in its sole discretion. 4.2. Design Review. (a) By Declarant. Each Unit Owner, by accepting a deed or other instrument conveying any interest in any Unit, acknowledges that Declarant has a substantial interest in ensuring that the improvements within the Plat Community enhance Declarant’s reputation as a community developer or builder and do not impair Declarant’s ability to market, sell, or lease their property. Therefore, each Unit Owner agrees that no activity within the scope of this Article ("Work") shall be commenced on such Unit Owner's Unit unless and until Declarant or Declarant’s designee has given its prior written approval for such Work, which approval may be granted or withheld in Declarant's or Declarant’s designee's sole discretion. In reviewing and acting upon any request for approval, Declarant or its designee shall be acting solely in Declarant's interest and shall owe no duty to any other Person. Declarant’s rights reserved under this Article shall continue so long as Declarant owns any portion of the Plat Community or any real property which may be added to the Plat Community, unless earlier terminated in writing, executed and Recorded by Declarant. Declarant may, in its sole discretion, designate one or more Persons from time to time to act on Declarant’s behalf in reviewing applications hereunder. Declarant may from time to time, but shall not be obligated to, delegate all or a portion of the Declarant’s reserved rights under this Article to (i) a Property Improvement Committee appointed by the Association's Board of Directors (the "PIC"), or (ii) a committee comprised of architects, engineers, or other persons who may or may not be Unit Owners. Any such delegation shall be in writing, specifying the scope of responsibilities delegated, and shall be subject to (i) Declarant's right to revoke such delegation at any time and reassume jurisdiction over the matters previously delegated; and (ii) Declarant's right to veto any decision which Declarant determines, in Declarant’s sole discretion, to be inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article, the jurisdiction of the foregoing entities shall be limited to matters specifically delegated by Declarant. page 10 (b) Property Improvement Committee. Upon delegation by Declarant or upon expiration or termination of the period of Declarant control, the Association, acting through the PIC, shall assume jurisdiction over design, property modification and architectural matters in the Plat Community. The PIC, when appointed, shall consist of at least three, but not more than seven, persons who shall serve and may be removed and replaced in the Board's discretion. At least two (2) members of the PIC must be Members of the Board, and may, but need not, include architects, engineers, or similar professionals whose compensation, if any, shall be established from time to time by the Board. If the PIC is not formed or is determined to lack authority to exercise the powers assigned to it for any reason, the Board shall act as the PIC. The PIC may be broken into or may form subcommittees to preside over particular areas of review (e.g., a new construction subcommittee and a modifications subcommittee). Any reference herein to the PIC should be deemed to include a reference to any such subcommittee. Unless and until such time as Declarant delegates all or a portion of its reserved rights to the PIC or Declarant's rights under this Article terminate, the Association shall have no jurisdiction over architectural matters. For purposes of this article, the entity having jurisdiction in a particular case shall be referred to as the "Reviewer." The Work performed on Units owned by or formerly owned by the Declarant, an Affiliate of a Declarant or Dealer Units, including but not limited to warranty-related Work, is exempt from review by the Reviewer. (c) Reviewer Fees; Assistance. The Reviewer may establish and charge reasonable fees for review of applications hereunder and may require such fees to be paid in full prior to review of any application. Such fees may include the reasonable costs incurred in having any application reviewed by architects, engineers, or other professionals. Declarant and the Association may employ architects, engineers, or other persons as deemed necessary to perform the review. The Board may include the compensation of such persons in the Association's annual operating budget as a Common Expense. 4.3. Guidelines and Procedures. (a) Residential Design Guidelines. Declarant may prepare the initial Residential Design Guidelines, which may contain general provisions applicable to all of the Plat Community as well as specific provisions which vary from area to area within the Plat Community. The Residential Design Guidelines are not the exclusive basis for decisions of the Reviewer and compliance with the Residential Design Guidelines does not guarantee approval of any application. Absence of adopted Residential Design Guidelines shall not limit the PIC’s ability to exercise its powers; however, when disapproving an application for permission to perform Work, the Reviewer shall describe the basis for a decision if the Reviewer is unable to refer to adopted Residential Design Guidelines as the reason for disapproval of an application. Declarant shall have sole and full authority to amend the Residential Design Guidelines in a manner consistent with the Permits during the period of Declarant control, notwithstanding a delegation of reviewing authority to the PIC, unless Declarant also delegates the power to amend to the PIC. Upon termination or delegation of Declarant's right to amend, the PIC shall have the authority to amend the Residential Design Guidelines in a manner consistent with the Permits, with the consent of the Board. Any amendments to the Residential Design Guidelines shall be prospective only and shall not apply to require modifications to or removal of structures previously approved once the approved construction or modification has commenced. Except for conditions of the Permits, there shall be no limitation on the page 11 scope of amendments to the Residential Design Guidelines, and such amendments may remove requirements previously imposed or otherwise make the Residential Design Guidelines less restrictive. The Reviewer shall make the Residential Design Guidelines available to Unit Owners and Dealers who seek to engage in development or construction within the Plat Community. In Declarant's discretion, such Residential Design Guidelines may be Recorded, in which event the Recorded version, as it may unilaterally be amended from time to time, shall control in the event of any dispute as to which version of the Residential Design Guidelines was in effect at any particular time. (b) Procedures. No Work shall commence on any portion of the Plat Community until an application for approval has been submitted to and approved by the Reviewer. Such application shall include plans and specifications ("Plans") showing site layout, structural design, exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of proposed construction, as applicable. The Residential Design Guidelines and the Reviewer may require the submission of such additional information as may be reasonably necessary to consider any application. In reviewing each submission, the Reviewer may consider any factors it deems relevant, including, without limitation, harmony of external design with surrounding structures and environment. Decisions may be based on purely aesthetic considerations. Each Unit Owner acknowledges that determinations as to such matters are purely subjective and opinions may vary as to the desirability and/or attractiveness of particular improvements. The Reviewer shall respond to the applicant by giving Notice pursuant to RCW 64.90.515. The response may (i) approve the application, with or without conditions; (ii) approve a portion of the application and disapprove other portions; or (iii) disapprove the application. The Reviewer may, but shall not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any objections. In the event that the Reviewer fails to respond in a timely manner (as provided in the Residential Design Guidelines), approval shall be deemed to have been given, subject to Declarant's right to veto approval by the PIC pursuant to this Section. However, no approval, whether expressly granted or deemed granted pursuant to the foregoing, shall be inconsistent with the Residential Design Guidelines unless a differing design proposal has been approved pursuant to Section 4.5. Until expiration of the period of Declarant control, the PIC shall notify Declarant in writing within three (3) business days after the PIC has approved any application relating to proposed Work within the scope of matters delegated to the PIC by Declarant. The notice shall be accompanied by a copy of the application and any additional information which Declarant may require. Declarant shall have ten (10) days after receipt of such notice to veto any such action, in its sole discretion, by notice to the PIC and the applicant. If construction does not commence on a project for which Plans have been approved within one (1) year after the date of approval, such approval shall be deemed withdrawn and it shall be necessary for the Unit Owner to reapply for approval before commencing the proposed Work. Once construction is commenced, it shall be diligently pursued to completion. All Work shall be completed within one (1) year of commencement unless otherwise specified in the notice of approval or unless the Reviewer grants an extension in writing, which it shall not be obligated to do. If approved Work is not completed within the required time, it shall be considered nonconforming and shall be subject to enforcement action by the Association, Declarant or any aggrieved Unit Owner. page 12 The Reviewer may, by resolution, exempt certain activities from the application and approval requirements of this Article, provided such activities are undertaken in strict compliance with the requirements of such resolution. 4.4. No Waiver of Future Approvals. Each Unit Owner acknowledges that the persons reviewing applications under this Article will change from time to time and that opinions on aesthetic matters, as well as interpretation and application of the Residential Design Guidelines, may vary accordingly. In addition, each Unit Owner acknowledges that it may not always be possible to identify objectionable features of proposed Work until the Work is completed, in which case it may be unreasonable to require changes to the improvements involved, but the Reviewer may refuse to approve similar proposals in the future. Approval of applications or Plans for any Work done or proposed, or in connection with any other matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any similar applications, Plans, or other matters subsequently or additionally submitted for approval. 4.5. Variances. The Reviewer may authorize variances from compliance with any of its guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or aesthetic or environmental considerations require, but only in accordance with the law. Such variances may only be granted, however, when unique circumstances dictate and no variance shall (a) be effective unless in writing; (b) be contrary to this Declaration; or (c) estop the Reviewer from denying a variance in other circumstances. For purposes of this Section, the inability to obtain approval of any governmental agency, the issuance of any permit, or the terms of any financing shall not be considered a hardship warranting a variance. 4.6. Limitation of Liability. The standards and procedures established by this Article are intended as a mechanism for maintaining and enhancing the overall aesthetics of the Plat Community; they do not create any duty to any Person. Review and approval of any application pursuant to this Article is made on the basis of aesthetic considerations only and the Reviewer shall not bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements, nor for ensuring that all dwellings are of comparable quality, value, or size or of similar design. Declarant, the Association, the Board, any committee, or member of any of the foregoing shall not be held liable for soil conditions, drainage or other general site work, any defects in plans revised or approved hereunder, or any injury, damages, or loss arising out of the manner or quality of approved construction on or modifications to any Unit. In all matters, Declarant, the Board, the PIC, and any members thereof shall be defended and indemnified by the Association as provided in RCW 64.90.405(2)(n) and in the Governing Documents. 4.7. Certificate of Approval. Any Unit Owner may request that the Reviewer issue a certificate of approval certifying that there are no known violations on his or her Unit of this Article or the Residential Design Guidelines. The Association shall either grant or deny such request within thirty (30) days after receipt of a written request and may charge a reasonable administrative fee for issuing such certificates. Issuance of such a certificate shall estop the Association from taking enforcement action with respect to any condition as to which the Association had notice as of the date of such certificate. page 13 Article V Maintenance and Repair 5.1. Maintenance of Units. Each Unit Owner shall maintain his or her Unit, and all landscaping and improvements comprising the Unit, and all landscaping improvements comprising the Unit, in a manner consistent with the Governing Documents, the Community-Wide Standard, and all applicable covenants, unless such maintenance responsibility is otherwise assumed by or assigned to the Association. A Unit Owner shall install all landscaping, surrounding all sides of the residential dwelling contained on the Unit, within six (6) months after the initial transfer of a completed residential dwelling to a Unit Owner from the Declarant or a Dealer. Each Unit Owner shall also be responsible for maintaining and irrigating the landscaping within that portion of any adjacent Common Area or public right-of-way lying between the Unit boundary and any wall, fence, curb, or water's edge located on the Common Area or public right-of-way adjacent to the Unit boundary, unless such area is maintained by the Association; provided, there shall be no right to remove trees, shrubs or similar vegetation from this area without prior approval of the Association. Each Unit Owner shall perform at the Owner’s expense the maintenance and upkeep of fencing, Protected Trees (if located on a Unit), drainage swales and/or underground drain lines and catch basins installed on their Unit, unless such components of the Units are made a part of the Common Elements maintained by the Association. 5.2. Responsibility for Repair and Replacement. Unless otherwise specifically provided in the Governing Documents or in other instruments creating and assigning maintenance responsibility, responsibility for maintenance shall include responsibility for repair and replacement, as necessary to maintain the Unit to a level consistent with the Community-Wide Standard. Repair and replacement may include improvement if necessary to comply with applicable building codes or other regulations or if otherwise deemed appropriate, in the Board's reasonable discretion. By virtue of taking title to a Unit, each Unit Owner covenants and agrees with all other Owners and with the Association to carry property insurance for the full replacement cost of all insurable improvements on his or her Unit, less a reasonable deductible. If the Association assumes responsibility for obtaining any insurance coverage on behalf of Unit Owners, the premiums for such insurance shall be levied as an Assessment against the benefited Unit and the Unit Owner pursuant to RCW 64.90.480(4). Each Unit Owner further covenants and agrees that in the event of damage to or destruction of structures on or comprising such Owner's Unit, the Owner shall proceed promptly to repair or to reconstruct in a manner consistent with the original construction or such other plans and specifications as are approved in accordance with Article IV. Alternatively, the Unit Owner shall clear the Unit and maintain it in a neat and attractive condition consistent with the Community-Wide Standard. The Unit Owner shall pay any costs which are not covered by insurance proceeds. 5.3 Preservation of Protected Trees. The Unit Owners and the Association shall have primary responsibility for the care and preservation of all Protected Trees that are planted in the Plat Community, unless such responsibility is assumed by the Local Jurisdiction. The division of responsibility between the Owners, the Association and the Local Jurisdiction for different aspects of the care and preservation of the Protected Trees may be established by notations on the face of the Map, or if there are no such notations, by Rule, instruction by the Declarant, or ordinance adopted by the Local Jurisdiction. The Unit Owners and the Association shall provide such maintenance to the page 14 Protected Trees that is appropriate, based upon good nursery practices and requirements imposed by the Map, Declarant or the Local Jurisdiction. In the event that any Unit Owner or the Association fail to maintain the Protected Trees, a Declarant may elect to maintain the Protected Trees and may charge the Association and the Unit Owners the cost of such maintenance. The obligation arising under this section shall be a lien on the Plat Community in favor of Declarant, which Declarant may enforce (in place of the Association) in the manner described in Chapter 61.12 RCW. In the event that a Unit Owner removes or alters inappropriately a Street Tree without written permission of a Declarant (until the Declarant’s Bond is released or forfeited, and then the Association or the Local Jurisdiction, if the Local Jurisdiction assumes responsibility for the Protected Trees), the removal shall be a breach of the Unit Owner’s duties described this Declaration. Declarant, (until Declarant’s Bond is released in full without claim, and then the Association or the Local Jurisdiction), may bring an action to restrain the removal of any Street Tree, or for damages arising from such removal, including such additional, treble damages, attorney’s fees litigation expenses and costs that are available under this Declaration or state law. Declarant’s rights and duties described herein shall cease and automatically terminate upon (1) release in full, without claims, and delivery to Declarant the Declarant’s Bond, (2) recovery of compensation by Declarant for all sums deducted from the bond, or (3) a date six (6) years from the date of any Bond forfeiture, whichever event occurs first. After Declarant’s performance and maintenance bonds are released or forfeited, and the Declarant has received the full exoneration of the Bond without claims, or compensation for any payments made from the Bond, the Association may apply to the Local Jurisdiction or its successor for approval to terminate or amend the restrictions imposed upon the removal or alteration of Protected Trees. Such application may be made if a majority of the Unit Owners approve of the Association’s application for termination or alteration of the Street Tree restrictions. Upon written notification from the Local Jurisdiction of the termination or alteration of the restrictions upon Protected Trees contained herein, the Association a copy of the notice shall be Recorded. Upon Recordation of such notice, the provisions of this related to Protected Trees shall terminate or be amended in the manner described in the notice. 5.4. Remedies for Failure to Maintain. If any Unit Owner shall fail to conduct maintenance as required by this Article to maintain the Unit in the same condition as a reasonably prudent homeowner, or in a manner which preserves the drainage for other Units, the Association shall notify the Unit Owner in writing of the maintenance required. If the maintenance is not performed within thirty (30) days of the date notice is delivered, the Association shall have the right to enter upon the Unit and provide such maintenance, and to levy an Assessment against the non-performing Unit Owner and Unit for the cost of providing the maintenance pursuant to RCW 64.90.480(4). The Assessment shall constitute a lien against the Unit owned by the non-performing Unit Owner and may be collected and foreclosed in the same manner as any other delinquent Assessment. In the event that emergency repairs are needed to correct a condition on a Unit which poses a substantial risk of injury or significant property damage to others, the Association may immediately perform such repairs as may be necessary after the Association has attempted to give Notice to the non-performing Unit Owner of the repairs necessary. Emergency repairs performed by the Association, if not paid for by the non-performing Unit Owner, may be collected by the Association in the manner provided for herein notwithstanding the failure of the Association to give the non-performing Owner the thirty (30) day notice. page 15 Article VI Association Powers and Responsibilities 6.1. Acceptance and Control of Association Property. The Association, through action of its Board, may acquire, hold, and dispose of tangible and intangible personal property and real property. Declarant and Declarant’s designees may Convey to the Association personal property and fee title, leasehold or other property interests in any real property. The Association shall accept and maintain such property at its expense for the benefit of the Unit Owners, subject to any restrictions set forth in the deed or other instrument transferring such property to the Association and any obligations or conditions appurtenant to such property. Upon a Declarant's written request, the Association shall reconvey to Declarant any unimproved portions of the Plat Community originally conveyed by a Declarant to the Association for no consideration, to the extent conveyed by a Declarant in error or needed by a Declarant to make minor adjustments in property lines. 6.2. Maintenance of Common Elements. The Association shall maintain the Common Elements as defined in RCW 64.90.010(7), which for the purpose of this Declaration also include: (a) The Common Elements identified on the Map, and any landscaping and Protected Trees located thereon; (b) The entry features and landscaping (whether placed on land owned by the Association, or in the easements created for the Association’s benefit); (c) The irrigation facilities, storm water facilities, streets, sidewalks, street lighting, parking areas, transit shelters, trails, ponds, streams, wetlands, recreational amenities and any community center, signage, open spaces, wetlands, natural preserve areas and conservation areas, sensitive areas, and buffers located in the Plat Community that are not maintained by the Local Jurisdiction, including improvements and equipment installed therein or used in connection therewith; (d) Planter strips, medians, Protected Trees, planting areas within cul-de-sacs, and the fence (or solid coniferous landscaping); (e) mailbox and mailbox shelters (which may not be moved or physically altered without approval of the PIC, the U.S. Postal Service and the Local Jurisdiction); (f) such improvements included within or outside the Common Elements as may be described in this Declaration or its Exhibits, described in any Recorded document, or contained in any contract or agreement for maintenance entered into by the Declarant or the Association. The Association shall use commercially-reasonable efforts to maintain the Common Elements in a manner consistent with the Community-Wide Standard. The Association may maintain other property which it does not own, including, without limitation, Units and property dedicated to the public, if the Board determines that such maintenance is necessary or desirable to maintain the Community- Wide Standard. The Association shall not be liable for any damage or injury occurring on, or arising out of the condition of, property which it does not own except to the extent that it has been negligent in the performance of its maintenance responsibilities. page 16 6.3. Indemnification of Officers, Directors, and Others. To the fullest extent permitted by Washington law, the Association shall indemnify every officer, director, volunteer and committee member of the Association against all damages and expenses, including counsel fees, reasonably incurred in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of being or having been an officer, director, or committee member. The officers, directors, and committee members shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made or action taken in good faith on behalf of the Association (except to the extent that such officers or directors may also be Unit Owners). The Association shall indemnify and forever hold each such officer, director, and committee member harmless from any and all liability to others on account of any such contract, commitment, or action. This right to indemnification shall not be exclusive of any other rights to which any present or former officer, director, or committee member may be entitled. The Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably available. 6.4. Security. The Association may, but shall not be obligated to, maintain or support certain activities within the Plat Community designed to make the Plat Community safer than it otherwise might be. Neither the Association nor Declarant shall in any way be considered insurers or guarantors of security within the Plat Community, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made that any systems or measures, including any mechanism or system for limiting access to the Plat Community, cannot be compromised or circumvented, nor that any such systems or security measures undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Unit Owner acknowledges, understands, and covenants to inform its tenants and all occupants of its Unit that the Association, its Board and committees, and Declarant are not insurers and that each Person entering the Plat Community assumes all risks of personal injury and loss or damage to property, including Units and the contents of Units, resulting from acts of third parties. 6.5. Effect of Dissolution of Association. In the event that the Association is dissolved and is no longer licensed as a non-profit corporation, the rights and duties of the Association (including, but not limited to, all ownership interest in the Common Elements) shall vest in the Unit Owners, as an unincorporated association. Any Unit Owner or any holder of a security interest may reinstate the Association’s corporate status, or create a successor entity as a successor to the Association, at any time by filing with the State of Washington such documents as required by law to reinstate the Association or create its successor; and upon such reinstatement, the Unit Owners’ rights and duties, as described in this Declaration, shall re-vest in the reinstated or successor Association, and all Unit Owners shall be members thereof with all rights to vote provided by law and the Organizational Documents of the entity. To the greatest extent possible, any successor entity shall be governed by the Governing Documents of the Association as if they had been made to constitute the governing documents of the successor entity. 6.6. Provision of Services. The Association may provide or provide for services and facilities for the Unit Owners, their guests, lessees, and invitees, and shall be authorized to enter into and terminate contracts or agreements with other entities, including Declarant, to provide such services and facilities. The Board may charge use and consumption fees for such services and facilities. By page 17 way of example, some services and facilities which might be offered include landscape maintenance, pest control service, cable television service, internet service, security, caretaker, transportation, fire protection, utilities, and similar services and facilities. Nothing herein shall be construed as a representation by Declarant or the Association as to what, if any, services shall be provided. In addition, the Board shall be permitted to modify or cancel existing services provided, in its discretion, unless otherwise required by the Governing Documents. No Owner shall be exempt from the obligation to pay for such services, if provided to all Unit Owners as a Common Expense, based upon non-use or any other reason. 6.7. Relations with Other Properties. The Association may enter into contractual agreements or covenants to share costs with other associations, properties or facilities for maintaining and/or operating shared or mutually beneficial properties or facilities. 6.8. Facilities and Services Open to the Public. Certain facilities and areas within the Plat Community may be open for use and enjoyment of the public. Such facilities and areas may include, by way of example: greenbelts, trails and paths, parks, and other neighborhood spots conducive to gathering and interaction, roads, sidewalks, and medians. Declarant may designate such facilities and areas as open to the public at the time Declarant makes such facilities and areas a part of the Common Elements or the Board may so designate at any time thereafter. Portions of the Common Elements which are not intended to be open to the public may be posted as private property. 6.9. Permit Matters. The Properties may be subject to a variety of permit restrictions and obligations which are contained in the Permits and in applicable law and are binding upon the Plat Community and run with the land. The Association and each Unit Owner shall comply with the restrictions and requirements of the Permits, as applicable. During initial development of the Plat Community, Declarant shall implement, maintain, and enforce the programs and requirements of the Permits. Declarant shall have the right, but not the obligation, to delegate or assign certain responsibilities to the Association or any committee, and the Association or such committee shall have the obligation to accept and fulfill such delegation or assignment of such obligations. The cost of such activities shall be a Common Expense, if the activity is associated with the Common Elements and for the general benefit of all of the community. In the performance of its responsibilities, the Association shall follow the standards and requirements of the Permits and applicable law. The Association shall comply with the design guidelines and maintenance standards referenced in the Permits, particularly in the use and preservation of native vegetation and landscaping, in the performance of its responsibilities under this Declaration. 6.10. Relationship with Tax-Exempt Organizations. Declarant or the Association may create, enter into agreements or contracts with, or grant exclusive and/or non-exclusive easements over portions of the Common Elements to non-profit, tax-exempt organizations, the operation of which confers some benefit upon the Plat Community, the Association, the Unit Owners, or occupants of Units. If established by Declarant or the Association, the Association shall be responsible to fund the minimum organization expenses of maintaining such entity and may contribute money, real or personal property, or services to such entity. Such expenses and any such contributions shall be a Common Expense. For the purposes of this Section, a "tax-exempt organization" shall mean an entity which is exempt from federal income taxes under the Internal Revenue Code ("Code"), such as, but not limited to, entities which are exempt from federal income taxes under Sections 501(c)(3) or 501(c)(4), as the Code may be amended from time to time. page 18 Article VII Association Finances 7.1. Budgeting and Assessments. At least 60 days before the beginning of each fiscal year, the Board shall prepare a budget of the estimated Common Expenses for the coming year, including any contributions to be made to a reserve fund. The budget shall also reflect the sources and estimated amounts of funds to cover such expenses, which may include any surplus to be applied from prior years, any income expected from sources other than Assessments levied against the Units, and the amount to be generated through the levy of Assessments against the Units. Any such subsidy shall be disclosed as a line item in the income portion of the budget. Payment of such subsidy in any year shall not obligate Declarant to continue payment of such subsidy in future years, unless otherwise provided in a written agreement between the Association and Declarant. Within thirty (30) days after the adoption of a final budget by the Board, the Board shall send to each Owner a copy of the final budget, notice of the amount of the Assessment to be levied pursuant to such budget, and notice of a meeting to consider ratification of the budget, in the manner described in RCW 64.90.525. If any proposed budget is disapproved or the Board fails for any reason to determine the budget for any year, then the budget most recently in effect shall continue in effect until a new budget is determined. The Board may revise the budget and adjust the Assessment from time to time during the year, subject to the notice requirements and the right of the Unit Owners to disapprove the revised budget as set forth above. 7.2. Budgeting for Reserves. The Board shall prepare and periodically review a reserve budget for the Common Elements for which the Association maintains capital items as a Common Expense. The budgets shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost. The Board shall include in the Common Expense budget adopted pursuant to Section 7.1 a capital contribution to fund reserves in an amount sufficient to meet the projected need with respect both to amount and timing by annual contributions over the budget period. 7.3. Specially-Allocated Assessments. In addition to other authorized Assessments, the Association may levy Specially-Allocated Assessments as defined by RCW 64.90.010(52) and RCW 64.90.480(4)-(8). 7.4 Capitalization of Association. Upon closing of the first conveyance of each Unit to a Purchaser or first occupancy of a Unit, whichever occurs first, the Association may collect a working capital contribution for such Unit as described in RCW 64.90.480(2). 7.5. Time of Payment. Assessments shall be paid in such manner and on such dates as the Board may establish. The Board may require advance payment of Assessments at closing of the transfer of title to a Unit and impose special requirements for Unit Owners with a history of delinquent payment. If the Board elects, Assessments may be paid in two or more installments. Unless the Board otherwise provides, the Assessment shall be due and payable in advance on the first day of each fiscal year. If any Unit Owner is delinquent in paying any assessments or other charges levied on a Unit, the Board may require the outstanding balance on all Assessments to be paid in full immediately. 7.6. Association’s Right to Acquire Unit Subject to Foreclosure. When attempting to collect Assessments by Foreclosure, the Association may bid for the Unit at a Foreclosure sale and acquire, hold, lease, mortgage, and Convey the Unit. page 19 7.7 Reimbursements From Local Jurisdictions – Assignment to Declarant. In the event that the Association succeeds to the interest of the Declarant in any bond, late comers’ reimbursement, impact fee refund or similar right to receive a refund of funds paid by the Declarant pursuant to a requirement imposed by a Local Jurisdiction related to construction of improvements at or for the benefit of the Plat Community (“Refund”), the Association irrevocably assigns any such Refund to Declarant. Upon receipt of notice that the Association is entitled to a Refund, the Association shall provide written notice of the Refund to the Declarant, the Declarant’s assignee. The Association shall assign to Declarant all Refunds to which the Association may become entitled, regardless of the time that may have passed since recordation of the Map and formation of the Association. Article VIII Changes to the Boundaries of the Plat Community 8.1. Expansion or Contraction of the Plat Community by Declarant. Declarant may from time to time add additional real property to the Plat Community or withdraw real property as provided in RCW 64.90.225(1)(h)(ii). Declarant shall determine if and how much real property should be added to or withdrawn from the Plat Community, and the location of the new boundaries of the Plat Community, in Declarant’s sole, subjective discretion. When added to the Plat Community, the additional real property shall become subject to the provisions of this Declaration. When withdrawn from the Plat Community, the real property withdrawn shall be released from the Declaration without further action by the Declarant. The Declarant may add additional real property to the Plat Community which is not contiguous to other portions of the Plat Community. Real property shall be added to or withdrawn from the Plat Community by Recording a Supplemental Declaration prepared consistent with RCW 64.90.250(1) and Recorded. The decision to expand or contract the size of the Plat Community shall not require the consent of any Person except the owner of such real property to be added or withdrawn, if other than Declarant. Declarant's right to expand or contract the Plat Community pursuant to this Section shall expire 10 years after this Declaration is Recorded. Nothing in this Declaration shall be construed to require Declarant or any successor to subject additional property to this Declaration or to develop all of the property described in Exhibit "A" in any manner whatsoever. Every Person that acquires any interest in a Unit agrees not to protest, challenge, or otherwise object to the development of any real property by Declarant which lies adjacent to the Plat Community, and which could be subjected to the terms of this Declaration by Declarant. 8.2. Additional Covenants and Easements. Declarant may subject any portion of the Plat Community to additional covenants and easements, including covenants obligating the Association to maintain and insure such property and authorizing the Association to recover its costs through Assessments. Such additional covenants and easements may be set forth either in a Supplemental Declaration subjecting such real property to this Declaration or in a separate Supplemental Declaration referencing real property previously subjected to this Declaration. If the property is owned by someone other than Declarant, then the consent of the owner shall be necessary and shall be evidenced by their execution of the Supplemental Declaration. Any such Supplemental Declaration may supplement, create exceptions to, or otherwise modify the terms of this Declaration as it applies to the subject real property in order to reflect the different character and intended use of such property. 8.3 Expansion or Contraction of the Plat Community by the Association. The Association may also subject additional property to the provisions of this Declaration or withdraw real property by amending the Declaration in the manner described in RCW 64.90.285, and Recording a Supplemental Declaration adopted by the Unit Owners describing the real property affected. So long as Declarant owns property subject to this Declaration or which may become subject to this Declaration in accordance with Section 8.1, Declarant's consent to the Association’s action shall be necessary. The page 20 Supplemental Declaration shall be written and signed by the Association, by the owner of the property and by Declarant, if Declarant's consent is necessary. Article IX Special Declarant Rights 9.1. Description and Duration of Special Declarant Rights. The Special Declarant Rights are Development Rights reserved by the Declarant for exercise in the sole, subjective discretion in all parts of the Plat Community and any additional real property added to the Plat Community pursuant to Section 8.1. The rights contained in this Article shall not terminate until the earlier of (a) 10 years from the date this Declaration is Recorded, or (b) Recording by Declarant of a statement that all sales activity has ceased, or (c) as required by Chapter 64.90 RCW. 9.2. Expand or Contract Boundaries of the Plat Community. The Declarant may exercise the Development Rights described in Article VIII of the Declaration. 9.3 Governmental Interests. Declarant may designate sites it owns within the Plat Community for fire, police, water, and sewer facilities, public schools and parks, and other public facilities. Sites may be designated for use of water infiltration under the Permit. Neither the Association, the PIC, nor the Unit Owners may object to the use of such sites for the designated public purposes. 9.4. Marketing and Sales Activities. To the fullest extent permitted by RCW 64.90.275, Declarant and Dealers may construct and maintain upon portions of the Common Elements such facilities and activities as, in Declarant's sole, subjective discretion, may be reasonably required, convenient, or incidental to the construction or sale of Units, including, but not limited to, business offices, signs, model units, and sales offices. Declarant and Dealers shall have easements for access to and use of such facilities and shall not be subject to fees or rental charges. Declarant hereby reserves for itself and all Dealers, so long as Declarant or any Dealer own any Unit, the right to maintain in the Plat Community such signs as in the opinion of Declarant are required, convenient or incidental to the merchandising and sale of the Units. 9.5 Right to Complete Improvements to Plat Community. The Declarant may elect, at any time for the duration of the Declarant’s rights to construct, inspect, test, redesign, maintain, repair and correct improvements located in the Plat Community as Declarant and Dealers deem appropriate in their sole, subjective discretion 9.6. Easements Granted to Declarant and Dealers. To the fullest extent permitted by RCW 64.90.280(1), Declarant and Dealers shall have an easement over and upon all of the Common Elements and Units for the purpose of: (a) Access to Units and Common Elements, as described in RCW 64.90.280(2), and to utility meters, environmentally-regulated land, wetlands, bodies of water and any other improvement of land feature for which the Declarant or a Dealer may have responsibility; (b) To perform the activities described in Section 9.5. (c) Installing utilities and infrastructure to serve the Plat Community, walkways, pathways and trails, drainage systems, street lights and signage on property which Declarant owns or within public rights-of-way or easements reserved for such purpose on the Map; page 21 (d) Installing, operating, maintaining, repairing and replacing telephone, cable television, telecommunications, security, and other systems for sending and receiving data and/or other electronic signals ("Technology Utilities"), to serve the Plat Community and each Unit, and additional property which can be subjected to this Declarant by Declarant. Any such easement may, in Declarant’s sole discretion, grant the exclusive right to access or use of such Technology Utilities, including the portions of the systems installed on or in the Units, dwellings, and other structures constructed on Units and Common Elements within the Plat Community; (e) Planting, maintaining or replacing Protected Trees whether located along the front, side or back boundary of a Unit. The easement granted herein shall extend onto a Unit for a distance sufficient for a Street Tree (of a variety approved by the Local Jurisdiction or its successor) to be planted, irrigated, replaced, maintained and pruned in manner consistent with good nursery practices; (f) Inspecting, maintaining, repairing, and replacing all other improvements which are the responsibility of the Declarant or any Dealer, as provided in the Declaration, the Map or required by law. Notwithstanding anything to the contrary herein, this easement shall not entitle the holders to construct or install any of the foregoing systems, facilities, or utilities over, under or through any existing dwelling on a Unit. Any damage to a Unit resulting from the exercise of this easement shall promptly be repaired by, and at the expense of, the Person exercising the easement. Exercise of this easement shall not unreasonably interfere with the use of any Unit. Except in the event of an emergency or as provided in Section 5.4, entry into a structure on a Unit shall be only after Notice is given to the Unit's Owner and agreement is reached with the Unit Owner regarding a reasonable time to enter the structures. 9.7 Easements Granted by Declarant to Serve Other Real Property. Declarant also reserves the non-exclusive right and power to grant such specific easements as may be necessary, in the sole discretion of Declarant, in connection with the orderly development of any additional property which the Declarant could subject to the terms of the Declaration, whether or not such property is made subject to this Declaration. The location of the easement shall be subject to the approval of the owner of the burdened property (the Association or Unit Owners, as the case may be), which approval shall not unreasonably be withheld, delayed or conditioned. Declarant further agrees that if the easement is exercised for permanent access to such property and such property or any portion thereof benefiting from such easement is not made subject to this Declaration, or any other declaration of covenants, conditions, and restrictions under which an owners' association is created or provided for, Declarant or Declarant’s successors or assigns shall enter into a reasonable agreement with the Association to share the cost of any maintenance which the Association provides to or along any roadway providing access to such property. The allocation of costs in any such agreement shall be based on the number of residential dwellings or commercial units on the property served by the easement and not subject to this Declaration as a proportion of the total number of residential dwellings within the Plat Community and on such benefited property. page 22 9.8 Election to Join Master Association. The Declarant may elect to make the Plat Community subject to a Master Association as described in RCW 64.90.300. 9.9 Mergers. The Declarant may elect to merge the Plat Community with another Plat Community 9.10 Participation in Association Governance and Management. The Declarant may appoint or remove any officer or Board member of the Association, or any Master Association, and may veto or approve a proposed action of the Association or Board consistent with RCW 64.90.415(1). 9.11 Design Review. The Declarant may control the PIC and serve as the Reviewer, as described in Section 4.2. 9.12 Attend Governance Meetings. The Declarant may, over the objections of any Person, attend any meeting of the Association and the Board, except when the Board conducts an executive session and the Declarant does not have a representative that serves as a Board member. 9.13 Access to Association Records. The Declarant may, over the objections of any Person, review the Governing Documents and all other records of the Association and the Board, to the same extent as a Unit Owner. 9.14. Right To Approve Additional Covenants. During the period of Declarant control, no easement, covenant, declaration or similar instrument affecting any portion of the Plat Community shall be Recorded without Declarant's review and written consent. Any attempted Recordation without such consent shall result in such instrument being void and of no force and effect unless subsequently approved and Recorded by Declarant. 9.15. Right To Approve Changes in the Standards Within the Plat Community. No amendment to or modification of any Use Restrictions or Residential Design Guidelines shall be effective without prior notice to and the written approval of Declarant so long as Declarant owns property subject to this Declaration or which may become subject to this Declaration in accordance with Section 8.1. Declarant reserves the right to enter into an agreement with the Unit Owner (without the consent of any other Unit Owner) to deviate from the conditions, restrictions, limitations or agreements contained in this Declaration. Any deviation shall be manifested in a written agreement and shall not constitute a waiver of any such condition; restriction, limitation, or agreement as to the other Units located in the Plat Community; and the condition, restriction, limitation or agreement waived by Declarant shall remain fully enforceable as to all other Units. 9.16 Right to Reallocate Limited Common Elements and Shared Structures. Declarant may change the allocation of Limited Common Elements and Shared Structures among Units and assign use of the same Limited Common Element or Shared Structure to additional Units. 9.17. Right to Notice of Design or Construction Claims. No Person shall retain an expert for the purpose of inspecting the design or construction of any structures or improvements within the Plat Community in connection with or in anticipation of any potential or pending claim, demand, or litigation involving such design or construction unless Declarant and any Dealer involved in the design or construction have been first notified in writing and given an opportunity to meet with the Unit Owner to discuss the Unit Owner's concerns, and conduct the Declarant’s or Dealer’s own inspection. page 23 9.18 Declarant’s Permission to Amend Declaration. No amendment of this Declaration shall modify, alter or delete (a) any Special Declarant Rights, (b) any portion of the Arbitration Agreements in Section 13.4 of this Declaration, (c) responsibilities of the Unit Owners, Association or Declarant concerning the preservation of Protected Trees, (d) Limited Common Elements or Party Structures without the consent of the Declarant attached to and Recorded with such amendment, regardless of whether Declarant continues to maintain an ownership interest in any Unit or membership in the Association. 9.19 Right to Enter Into Bulk Service Contracts. The Declarant reserves the right to enter into bulk service contracts for the provision of utility or technology services offered to all Units in the Plat Community. In such case, the cost shall be a Common Expense of the Association and shall be a part of the Assessments. If the service provides additional services or benefits to certain Unit Owners at their request, such additional services or benefits shall be paid directly by the Unit Owner to the service provider, or become a Specific Assessment, as appropriate and specified in the agreement with the service provider. 9.20 Right To Transfer Development Rights. Any or all of Declarant’s special rights and obligations set forth in this Declaration or the other Governing Documents may be transferred in whole or in part to other Persons in the manner and with the effect described in RCW 64.90.425. The foregoing sentence shall not preclude Declarant from permitting other Persons to exercise, on a one time or limited basis, any right reserved to Declarant in this Declaration where Declarant does not intend to transfer such right in its entirety. 9.21 Rights Granted by Applicable Law. The Declarant is entitled to exercise any rights granted or permitted by law to be held by a Person whose interest in the Plat Community is described in RCW 64.90.010(17). Article X Easements 10.1 Additional Easements. In addition to the easement and use rights granted to the Unit Owners and Declarant by RCW 64.90.280, the additional easements described in this Article are also granted. 10.2. Easements for Encroachments. Declarant grants the Association and the Unit Owners reciprocal appurtenant easements of encroachment, and for maintenance and use of encroachments, between each Unit and any adjacent Common Area and between adjacent Units due to the unintentional placement, settling or shifting of the improvements (including fences and walkways) constructed, reconstructed, or altered thereon in accordance with the terms of this Declaration, to a distance of not more than three (3) feet, as measured from any point on the common boundary along a line perpendicular to such boundary. However, in no event shall an easement for encroachment exist if such encroachment occurred due to willful and knowing conduct on the part of, or with the knowledge and consent of, the Person claiming the benefit of such easement. Easements which arise for encroachments shall be deemed permissive entries into adjoining land, and their creation shall not create a claim for adverse possession of the property on which the encroachment is located. 10.3. Easements for Maintenance, Emergency, and Enforcement. In addition to the easements granted on the face of the Map, Declarant grants to the Local Jurisdiction and the Association easements over the Plat Community as necessary to enable the Local Jurisdiction and the Association to fulfill its maintenance and enforcement responsibilities under applicable law and this page 24 Declaration. The Association shall also have the right, but not the obligation, to enter upon any Unit for emergency, security, and safety reasons, to perform maintenance and to inspect for the purpose of ensuring compliance with and enforce the Governing Documents. Such right may be exercised by any member of the Board and its duly authorized agents and assignees, and all emergency personnel in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after Notice to the Unit Owner. Article XI Limited Common Elements 11.1. Purpose. Certain portions of the Common Elements may be designated as Limited Common Elements and reserved for the exclusive use and control or primary benefit of specific Unit Owners and occupants. By way of illustration and not limitation, Limited Common Elements may include entry features, private driveways, landscaped medians and cul-de-sacs, environmentally sensitive and restricted areas, recreational areas and amenities and other portions of the Common Elements. All costs associated with maintenance, repair, replacement, and insurance of a Limited Common Element shall be a Common Expense allocated among the Unit Owners to which the Limited Common Element is assigned. 11.2. Designation. Initially, any Limited Common Elements shall be designated as such on the Map or in this Declaration; provided, any such assignment shall not preclude Declarant from later assigning use of the same Limited Common Element to additional Units. Thereafter, a portion of the Common Area may be assigned as a Limited Common Element and reassigned upon approval of the Board and a majority of the Unit Owners, including a majority of the votes of the Unit Owners affected by the proposed assignment or reassignment. As long as Declarant owns any property subject to this Declaration or which may become subject to this Declaration, any such assignment or reassignment shall also require Declarant's consent. 11.3. Use by Others. Upon approval of a majority of Unit Owners of Units to which any Limited Common Elements are assigned, the Association may permit Owners of other Units, or other persons who are not Owners, to use all or a portion of such Limited Common Elements upon payment of reasonable user fees, which fees shall be used to offset the Common Expenses attributable to such Limited Common Elements. Article XII Shared Structures 12.1. General Rules of Law to Apply. Each wall, fence, driveway, utility, sewer or similar structure built as a part of the original construction on the Units which serves and/or separates more than one Unit and is not designated as a Common Element or Limited Common Element shall constitute a Shared Structure. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding party walls, tenancy in common and liability for property damage due to negligence or willful acts or omissions shall apply to Shared Structures. Any tract which provides access to and ownership is shared by more than one Unit is a Shared Structure, the maintenance and repair of which is governed by the Declaration and this Article. 12.2. Maintenance; Damage and Destruction. The cost of reasonable repair and maintenance of a Shared Structure shall be shared equally by the Unit Owners who make use of the Shared Structure. If a Shared Structure is destroyed or damaged by fire or other casualty, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, page 25 any Unit Owner who has used the structure may restore it. If other Unit Owners thereafter use the structure, they shall contribute to the restoration cost in equal proportions. However, such contribution will not prejudice the right to call for a larger contribution from the other users under any rule of law regarding liability for negligent or willful acts or omissions. 12.3. Right to Contribution Runs With Land. The right of any Unit Owner to contribution from any other Unit Owner under this Section shall be appurtenant to the land and shall pass to such Unit Owner's successors-in-title. 12.4. Disputes. Any dispute arising concerning a Shared Structure shall be handled in accordance with the dispute resolution provisions of the Declaration. Article XIII Dispute Resolution and Limitation on Litigation 13.1. Dispute Resolution Methods. The provisions of this Article shall govern the resolution of all Claims between any Bound Party. Claims, disputes and controversies shall be resolved pursuant to the Arbitration Agreements described in Section 13.4, unless specifically exempted from the Arbitration Agreements by Section 13.3; if exempt from the Arbitration Agreements, the Exempt Claims may be litigated in a court of competent jurisdiction. Before any Claims are brought by the Association against any Person, the Association shall comply with the requirements of Sections 13.5. 13.2. Claims and Exempt Claims. Unless specifically identified as an Exempt Claim in this Section, all claims or disputes arising out of or relating to (a) the interpretation, application or enforcement of the Governing Documents; (b) the rights, obligations and duties of any Bound Party under the Governing Documents; (c) relating to the design or construction of improvements on the Properties, (d) breach of contract, (e) negligent or intentional misrepresentations or nondisclosure in the inducement, (f) execution or performance of any contract related to the Platted Community, including the Arbitration Agreements described in this Article, (g) any alleged statutory violation, (h) any claim of bodily injury related to the design or construction of the Units and the Common Elements, and (i) any claim made under the Washington State Consumer Protection Act, Chapter 18.86 RCW (collectively, “Claims”) shall be subject to the provisions of Section 13.4, which require the Claims to be arbitrated. Unless all necessary parties otherwise agree, the following list of exemptions (“Exempt Claims”) shall not be Claims, and shall not be subject to the provisions of Section 13.4 requiring arbitration, nor shall Exempt Claims be subject to the provisions of Section 13.5 - 13.7: 13.2.1 any suit by the Association against any Bound Party to collect Assessments, enforce liens, enforce the provisions of the Governing Documents; 13.2.2 any suit by the Association to obtain equitable relief (i.e., temporary restraining order, injunction, or specific performance) and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of Articles III, Article IV and Article V; 13.2.3 any suit brought by the Association to challenge tax assessments; 13.2.4 any suit brought by the Association against any contractor or vendor arising out of a contract for services or supplies between the Association and such contractor or vendor; page 26 13.2.5 counterclaims brought by the Association in proceedings instituted against the Association; 13.2.6 any suit by a Bound Party for declaratory or injunctive relief which seeks a determination as to applicability, enforcement, clarification, or interpretation of any provisions of the Declaration; 13.2.7 any suit between Owners, which does not include Declarant or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents if the amount in controversy exceeds $10,000.00; 13.2.8 any suit in which any indispensable party is not a Bound Party; 13.2.9 any suit concerning a Claim for which mandatory arbitration is prohibited by the Chapter 64.90 RCW; 13.2.10 any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice required by Section 13.4(a), unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article. With the consent of all parties thereto, any of the above exemptions voluntarily may be submitted to the arbitration procedures set forth in Section 13.4. If the Association seeks to litigate items 13.2.1 through 13.2.5, such litigation shall require the majority vote of the Board of Directors. 13.3. Bound Parties. Declarant, the Association, its officers, directors, and committee members, all Persons subject to this Declaration, any Dealer or builder, and any Person not otherwise subject to this Declaration who agrees to submit to this Article by contract with a Bound Party or by stipulation shall be a “Bound Party” for the purposes of this Article XIII. A Dealer is a Bound Party if the contract between the Dealer and a Purchaser provides for submission of disputes to this Article XIII. 13.4. Arbitration Agreements. Each Bound Party covenants and agrees to submit all Claims to the arbitration procedures set forth in this Section 13.4, in lieu of filing suit in any court. Any dispute concerning the interpretation or the enforceability of the Arbitration Agreements described in this paragraph, including, without limitation, revocability or voidability for any cause, the scope of arbitrable issues, and any defense based upon waiver or estoppel, shall be decided by the Arbitrator. The decision of the Arbitrator shall be final and binding and may be entered as a judgment in any court of competent jurisdiction. These Arbitration Agreements shall inure to the benefit of, and be enforceable by, Declarant and Declarant’s subcontractors, agents, vendors, suppliers, design professionals, insurers and any other person alleged to be liable for any defect in or to any Unit or the Common Elements; and shall be binding upon all family members and tenants of the Unit Owners and the Association. No participation of a party in a judicial proceeding involving a matter which is arbitrable under these Arbitration Agreements shall be deemed a waiver of the right of such party to enforce the Arbitration Agreements. If any provision of these Arbitration Agreements shall be determined by the Arbitrator or any court to be unenforceable or to have been waived, the remaining provisions shall be deemed to be severable therefrom and enforceable according to their terms. Any party shall be entitled to recover reasonable attorney’s fees, litigation expenses and costs incurred in enforcing the Arbitration Agreements, as provided in Section 13.8. page 27 13.4.1 Arbitration Agreement for Non-Warranty Claims. The Bound Parties agree that any Claim which is not a Claim covered by a Warranty (as described in Section 13.4.2) shall be settled and resolved by arbitration as described herein. The Arbitration shall be conducted by the American Arbitration Association or another arbitration service selected by the parties in writing, pursuant to the arbitration service’s applicable arbitration rules to the extent such rules are not inconsistent with this Arbitration Agreement. If the parties fail to agree on the selection of an arbitration service, the choice of arbitration service shall be that of the Claimant. All administrative fees of the arbitration service and fees of the Arbitrator shall be borne equally by the parties to the arbitration, subject to the discretion of the Arbitrator to reallocate such fees in the interest of justice. The Arbitrator shall take such steps as may be necessary to hold a hearing within ninety (90) days of the initial demand for arbitration and to conclude the hearing within three (3) days; and the Arbitrator’s written decision shall be made not later than fourteen (14) calendar days after the hearing. These time limits are included in order to expedite the proceeding, but they are not jurisdictional, and the Arbitrator may for good cause afford or permit reasonable extensions or delays, which shall not affect the validity of the award. The written decision shall contain a brief statement of the claim determined and the award made on each claim. In making the decision and award, the Arbitrator shall apply applicable substantive law. The Arbitrator may award injunctive relief or any other remedy available from a judge, including without limitation joinder of parties or consolidation of this arbitration with any other involving common issues of law or fact, or which may promote judicial economy, but shall not have the power to award punitive or exemplary damages. The parties expressly agree that this Arbitration Agreement involves and concerns interstate commerce and is governed by the Federal Arbitration Act (9 U.S.C. §1, et. seq.) to the exclusion of any different or inconsistent state or local law, ordinance or judicial rule; and to the extent that any state or local law, ordinance or judicial rule shall be inconsistent with any provision of the rules of the arbitration service under which the arbitration proceeding shall be conducted, the arbitration service rules shall govern the conduct of the proceeding. 13.4.2 Arbitration Agreement for Warranty Claims. The Bound Parties agree that any Claim which is a Claim covered by a Warranty shall be settled and resolved by arbitration as described in this Subsection 14.3.2. A Warranty Claim is a Claim, dispute or controversy between Bound Parties arising from or related to alleged defects in the Unit or the Common Elements which are asserted after the closing of the transfer of title to a Unit, and which are covered by a contractual warranty supplied to the buyer of the Unit by the seller of the Unit. Warranty Claims shall be submitted to binding arbitration commenced and conducted in accordance with the arbitration provision of the Warranty, even if such provisions are inconsistent with the provisions of this Subsection 13.4. 13.4.3 Binding Upon Successors and Assigns. The Declarant, the Association and all Owners acknowledge and agree that, by virtue of the Recording of the Declaration, these Arbitration Agreements shall run with title to the real property subject to the Declaration and all additional phases, and shall be binding upon all Persons having any right, title or interest in all or any portion of the real property subject to the Declaration their respective heirs, legal representatives, successors, successors-in-title, and assigns, and shall be for the benefit of the Declarant and all Owners of Units and Common Elements subject to this Declaration, regardless of whether Declarant continues to maintain an ownership interest in any Unit or membership in the Association. page 28 13.5. Consensus for Association Litigation of Claims. The Association shall not commence arbitration, judicial or administrative proceedings to resolve a Claim without the approval of a majority of the Unit Owners. In the event the judicial or administration proceeding is against the Declarant or any former Declarant, Seventy-Five percent (75%) of the total votes of the Unit Owners are required to commence such proceeding. This Section shall not be amended unless such amendment is approved by the percentage of votes, and pursuant to the same procedures, necessary to institute proceedings as provided above. 13.6. Mandatory Procedures for Litigation of Claims. 13.6.1 Notice. Any Bound Party having a Claim (“Claimant”) against any other Bound Party (“Respondent”) (collectively, the “Parties”) shall notify each Respondent in writing (the “Notice”), stating plainly and concisely: (a) the nature of the Claim, including the Persons involved and Respondent's role in the Claim; (b) the legal basis of the Claim (i.e., the specific authority out of which the Claim arises); (c) Claimant's proposed remedy; and (d) that Claimant will meet with Respondent to discuss in good faith ways to resolve the Claim. 13.6.2 Negotiation and Mediation. The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Association’s Board may appoint a representative to assist the Parties in negotiation. If the Parties do not resolve the Claim within 30 days of the date of the Notice (or within such other period as may be agreed upon by the Parties) (“Termination of Negotiations”), Claimant shall have 30 additional days to submit the Claim to mediation under the auspices of any Local Jurisdiction dispute resolution center or, if the Parties otherwise agree, to an independent agency providing dispute resolution services in the area. If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any Person other than the Claimant. Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. If the Parties do not settle the Claim within thirty (30) days after submission of the matter to the mediation, or within such time as determined by the mediator, the mediator shall issue a notice of termination of the mediation proceedings (“Termination of Mediation”). The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated. Within five (5) days of the Termination of Mediation, the Claimant shall make a final written settlement demand (“Settlement Demand”) to the Respondent, and the Respondent shall make a final written settlement offer (“Settlement Offer”) to the Claimant. If the Claimant fails to make a Settlement Demand, Claimant's original Notice shall constitute the Settlement Demand. If the Respondent fails to make a Settlement Offer, Respondent shall be deemed to have made a “zero” or “take nothing” Settlement Offer. 13.6.3 Final and Binding Arbitration. If the Parties do not agree in writing to a settlement of the Claim within 15 days of the Termination of Mediation, the Claimant shall have 15 additional days to submit the Claim to arbitration in accordance with Section 13.4. If not timely submitted to arbitration or if the Claimant fails to appear for the arbitration proceeding, the Claim shall be deemed abandoned, and Respondent shall be released and discharged from any and all liability to page 29 Claimant arising out of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to Persons other than Claimant. This subsection is an agreement to arbitrate and is specifically enforceable under federal and state arbitration laws. The arbitration award (the “Award”) shall be final and binding, and judgment may be entered upon it in any court of competent jurisdiction to the fullest extent permitted under federal and Washington State laws. 13.7 Allocation of Costs of Resolving Claims. Each Party shall bear its own costs, including attorney’s fees, and each Party shall share equally all charges rendered by the mediator(s) and all filing fees and costs of conducting the arbitration proceeding (“Post Mediation Costs”), except as otherwise ordered by the arbitrator pursuant to Section 13.4. Any Award which is equal to or more favorable to Claimant than Claimant's Settlement Demand shall add Claimant's Post Mediation Costs to the Award, such costs to be borne equally by all Respondents. Any Award which is equal to or less favorable to Claimant than any Respondent's Settlement Offer shall award to such Respondent its Post Mediation Costs, except as otherwise provided in this subsection. 13.8 Enforcement of Resolution – Attorney’s Fees and Costs. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with Section 13.4 and any Party thereafter fails to abide by the terms of such agreement, or if the Parties agree to accept the Award following arbitration and any Party thereafter fails to comply with such Award, then any abiding or complying Party may file suit or initiate administrative proceedings to enforce such agreement or Award without the need to again comply with the procedures set forth in Section 13.4. In such event, the Party taking action to enforce the agreement or Award shall be entitled to recover from the non-complying Party (or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in enforcing such agreement or Award, including, without limitation, attorneys' fees and court costs. If the Bound Parties litigate an Exempt Claim, the prevailing party in such litigation shall be entitled to payment of all attorney’s fees, litigation and costs by the non-prevailing party. Article XIV Changes in Ownership of Units Any Unit Owner desiring to sell or otherwise transfer title to his or her Unit shall give the Board Notice of the name and address of the Purchaser or transferee, the date of such transfer of title, and such other information as the Board may reasonably require. Rules may be adopted governing the timing and content of such Notice. Each transferee of a Unit shall, within ten (10) days of taking title to a Unit, confirm that the information previously provided by the transferor to the Association is complete and accurate. The transferor shall continue to be jointly and severally responsible with the transferee for all obligations of the Unit Owner, including Assessment obligations, until the date upon which such notice is received by the Board, notwithstanding the transfer of title. Article XV Miscellaneous Additional Provisions Exhibit "A" is incorporated by reference, contains the legal description of the Plat Community and additional information applicable to the Plat Community that may be required to be included in the Declaration by Chapter 64.90 RCW or a Local Jurisdiction. Additional provisions of the Declaration, if attached as Exhibits, are incorporated by this reference. All of the rights, responsibilities, duties and restrictions described in Chapter 64.90 RCW are incorporated into the Declaration as if fully set forth herein. page 30 IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration on the date contained in the acknowledgment of Declarant’s signature. THE QUADRANT CORPORATION, a Washington corporation, doing business as Quadrant Homes By: ________________________________________ Bonnie Geers, Senior Vice President STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that Bonnie Geers is the person who appeared before me, and that person acknowledged signing this instrument, on oath stated her authority to execute the instrument and acknowledged it as the Senior Vice President of The Quadrant Corporation on behalf of whom instrument was executed to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. SUBSCRIBED and SWORN to before me this ____ day of ________________, 2018. (printed name): NOTARY PUBLIC My Commission expires: page 31 EXHIBIT "A" INFORMATION SPECIFIC TO THE PLAT COMMUNITY Legal Description of the Plat Community: Lots 1-17 and Tracts A and B of Lakeview Crest, according to the plat thereof recorded in Volume ____ of Plats, Pages ____ through ____, inclusive, recorded at Recorder’s Number ________________ records of King County, Washington. Situate in the County of King, State of Washington. Map(s) incorporated by this reference into this Declaration recorded at: ____________________ Number of Units in the Plat Community: 17 Maximum Number of Units that may be added to the Plat Community: No additional property may be added to the plat community. Limited Common Elements located in the Plat Community, and the Units to which they are assigned: There are no Limited Common Elements in this Plat Community. Allocated Interest assigned to each Unit: Each Unit holds 1/17th of the total interest in the Plat Community’s property, and one vote is assigned to each of the 17 Units. Restrictions on alienation of Units: There are no restrictions upon alienation of Units imposed by the Declaration. When Recorded, Return to: Bonnie Geers The Quadrant Corporation 15900 SE Eastgate Way, Suite 300 Bellevue, Washington 98008 DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKEVIEW CREST A Plat Community Grantor: The Quadrant Corporation dba Quadrant Homes Additional on page ____ Grantee: The Owners of Units in Lakeview Crest; the Lakeview Crest Homeowners Association; The Public Additional on page ____ Legal Description (abbreviated): Lots 1-17 and Tracts A and B of Lakeview Crest, according to the plat thereof recorded in Volume ____ of Plats, Pages ____ through ____, inclusive, recorded at Recorder’s Number ________________ records of King County, Washington. Assessor's Tax Parcel ID #: _______________________________________________ Reference Nos. of Documents Released or Assigned: None TABLE OF CONTENTS ARTICLE SECTION PAGE Article I Creation of the Community ......................................................................................... 1 1.1. Purpose and Intent. ............................................................................................................... 1 1.2. Binding Effect ........................................................................................................................ 1 Article II Additional Definitions .................................................................................................. 1 Article III Use and Conduct .......................................................................................................... 3 3.1. Authority to Enact Use Restrictions ....................................................................................... 3 3.2. Owners' Acknowledgment and Notice to Purchasers ........................................................... 3 3.3. Protection of Owners and Others .......................................................................................... 3 3.4. Initial Use Restrictons ............................................................................................................ 5 Article IV Architecture and Landscaping ................................................................................... 9 4.1. General .................................................................................................................................. 9 4.2. Design Review. ..................................................................................................................... 9 4.3. Guidelines and Procedures. ................................................................................................ 10 4.4. No Waiver of Future Approvals ........................................................................................... 12 4.5. Variances............................................................................................................................. 12 4.6. Limitation of Liability ............................................................................................................ 12 4.7. Certificate of Approval ......................................................................................................... 12 Article V Maintenance and Repair ............................................................................................ 13 5.1. Maintenance of Units. .......................................................................................................... 13 5.2. Responsibility for Repair and Replacement ........................................................................ 13 5.3. Protected Trees ................................................................................................................... 13 5.4. Remedies for Failure to Maintain ........................................................................................ 14 Article VI Association Powers and Responsibilities .............................................................. 15 6.1. Acceptance and Control of Association Property. ............................................................... 15 6.2. Maintenance of Common Elements .................................................................................... 15 6.3. Indemnification of Officers, Directors, and Others .............................................................. 16 6.4. Security ................................................................................................................................ 16 6.5. Effect of Dissolution of Association ..................................................................................... 16 6.6. Provision of Services ........................................................................................................... 16 6.7. Relations with Other Properties .......................................................................................... 17 6.8. Facilities and Services Open to the Public. ......................................................................... 17 6.9. Permit Matters ..................................................................................................................... 17 6.10. Relationship with Tax-Exempt Organizations ..................................................................... 17 Article VII Association Finances ................................................................................................ 18 7.1. Budgeting and Assessments ............................................................................................... 18 7.2. Budgeting for Reserves ....................................................................................................... 18 7.3. Specially Allocated Assessments ........................................................................................ 18 7.4. Capitalization of Association ............................................................................................... 18 7.5. Time of Payment. ................................................................................................................ 18 ii 7.6. Association Right to Acquire Unit. ....................................................................................... 18 7.7. Reimbursements From Local Jurisdictions – Assignment to Declarant ............................. 19 Article VIII Changes to Boundaries of the Plat Community ..................................................... 19 8.1. Expansion or Contraction of the Plat Community by Declarant .......................................... 19 8.2. Additional Covenants and Easements ................................................................................ 19 8.3. Expansion or Contraction of the Plat Community by the Association ................................. 19 Article IX Special Declarant Rights ........................................................................................... 20 9.1. Description and Duration of Special Declarant Rights. ....................................................... 20 9.2. Expand or Contract Boundaries of the Plat Community ..................................................... 20 9.3. Governmental Interests. ...................................................................................................... 20 9.4. Marketing and Sales Activities Right To Develop ............................................................... 20 9.5. Right to Complete Improvements to Plat Community ......................................................... 20 9.6. Easements Granted to Declarant and Dealers ................................................................... 20 9.7. Easements Granted by Declarant to Serve Other Real Property ....................................... 21 9.8. Election to Join Master Association .................................................................................... 22 9.9. Mergers ............................................................................................................................... 22 9.10. Participation in Association Governance and Management ............................................... 22 9.11. Design Review. ................................................................................................................... 22 9.12. Attend Governance Meetings .............................................................................................. 22 9.13. Access to Association Records ........................................................................................... 22 9.14 Right To Approve Additional Covenants ............................................................................. 22 9.15 Right To Approve Changes in the Standards Within the Plat Community. ......................... 22 9.16. Right to Reallocate Limited Common Elements and Shared Structures ............................ 22 9.17. Right to Notice of Design or Construction Claims ............................................................... 22 9.18 Declarant’s Permission to Amend Declaration. ................................................................... 23 9.19. Right to Enter Into Bulk Service Contracts .......................................................................... 23 9.20. Right To Transfer Development Rights ............................................................................... 23 9.21 Rights Granted by Applicable Law ...................................................................................... 23 Article X Easements .................................................................................................................. 23 10.1. Additional Easements .......................................................................................................... 23 10.2. Easements for Encroachments ........................................................................................... 23 10.3. Easements for Maintenance, Emergency, and Enforcement ............................................. 23 Article XI Limited Common Elements ....................................................................................... 24 11.1. Purpose ............................................................................................................................... 24 11.2. Designation ......................................................................................................................... 24 11.3. Use by Others ..................................................................................................................... 24 Article XII Shared Structures ...................................................................................................... 24 12.1. General Rules of Law to Apply ............................................................................................ 24 12.2. Maintenance; Damage and Destruction. ............................................................................. 24 12.3. Right to Contribution Runs With Land. ................................................................................ 25 12.4. Disputes ............................................................................................................................... 25 Article XIII Dispute Resolution and Limitation on Litigation ................................................... 25 13.1. Dispute Resolution Methods ............................................................................................... 25 13.2. Claims and Exempt Claims ................................................................................................. 25 13.3. Bound Parties ...................................................................................................................... 26 13.4. Arbitration Agreements ........................................................................................................ 26 iii 13.5. Consensus for Association Litigation .................................................................................. 28 13.6. Mandatory Procedures for Litigation of Claims ................................................................... 28 13.7 Allocation of Costs of Resolving Claims .............................................................................. 29 13.8 Enforcement of Resolution ................................................................................................. 29 Article XIV Changes in Ownership of Units ............................................................................... 29 Article XV Miscellaneous Additonal Provisions ....................................................................... 29 EXHIBIT "A" Information Specific to the Plat Community