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HomeMy WebLinkAboutRC 20070320001252 WHEN RE66HBE6 RETURN Tb: 11 1 10 00001 100111111M Office of the City Clerk Renton City l 0 South Grady Way Renton,WA 98055 20070320001252 CITY OF RENTON COV 71.00 PAGE001 OF 040 03/20/2007 11:53 KING COUNTY, WA DECLARATION AND COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE PLAT OF PARKLANE COURT Grantor: Specialized Homes, L.L.C., a Washington limited liability company Grantee: Owners of Lots in the Plat of PARKLANE COURT Abbr. Legal Description: Portion SE 1/4 NE 1/4 S15 T23N R 5 EWM, City of Renton, King County, Washington Add] Legal Description: Page 1 of Document Assessor's Tax Parcel No: Tax Parcel No. for the entire plat prior to segregation of individual lots: 0847100080; 0847100081 Reference Nos. of Document Released/Assigned/Amended: NA A .1 • TABLE OF CONTENTS Pane ARTICLE 1 DEFINITIONS 1 1.1 Words Defined 1 1.2 Form of Words 3 ARTICLE 2 PLAN OF DEVELOPMENT 3 • 2.1 Development of Property 3 2.2 Interest Subject to Plan of Development • 4 ARTICLE 3 COMMON AREAS 4 3.1 "Common Areas" and "Common Area Improvements" 4 3.2 Uses of Tracts A and B 4 3.3 Association to Maintain Common Areas 4 3.4 Alteration of Common Areas 4 3.5 Public Areas 5 ARTICLE 4 PRIVATE EASEMENTS 5 4.1 Private Easements 5 4.2 Native Growth Protection Easement 6 ARTICLE 5 CONSTRUCTION ON LOTS AND USE OF LOTS 6 5.1 Permitted Structures 6 5.2 Uniformity of Use and Appearance 6 5.3 Submission of Plans 6 5.4 Construction 7 5.5 Minimum Size 7 5.6 Building Laws 8 5.7 Use Restrictions 8 5.8 Variances 11 ARTICLE 6 PARKLANE COURT HOME OWNERS ASSOCIATION 12 6.1 Organization 12 6.2 Board of Directors 12 6.3 Qualification for Membership 12 6.4 Transfer of Membership 12 6.5 Number of Votes 12 6.6 Voting• 13 6.7 Pledged Votes 13 6.8 Annual and Special Meetings 13 6.9 Books and Records 13 6.10 Transition Date 14 ARTICLE 7 NOTICES FOR ALL PURPOSES 14 ARTICLE 8 AUTHORITY OF THE BOARD 14 8.1 Adoption of Rules and Regulations 14 8.2 Enforcement of Declaration, Etc. 15 8.3 Goods and Services 15 8.4 Protection of Common Areas 15 ARTICLE 9 BUDGET AND ASSESSMENT FOR COMMON EXPENSES 15 9.1 Fiscal Year; Preparation of Budget 15 9.2 Certificate of Unpaid Assessments 16 9.3 Date of Commencement of Annual Assessments 16 ARTICLE 10 LIEN AND COLLECTION OF ASSESSMENTS 16 10.1 Assessments Are a Lien; Priority 16 10.2 Lien May Be Foreclosed 17 10.3 Assessments Are Personal Obligations 17 10.4 Late Charges and Interest on Delinquent Assessments 17 10.5 Recovery of Attorneys' Fees and Costs 17 10.6 Remedies Cumulative 17 ARTICLE 11 FAILURE OF BOARD TO INSIST ON STRICT PERFORMANCE NO WAIVER 18 ARTICLE 12 LIMITATION OF LIABILITY 18 ARTICLE 13 INDEMNIFICATION 18 ARTICLE 14 INSURANCE 19 ARTICLE 15 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY 19 ARTICLE 16 AMENDMENTS OF DECLARATION 19 16.1 Amendments of Declarant 19 16.2 Amendments by Association 20 16.3 Amendments to Article 3 20 ARTICLE 17 ANNEXATION AND SUBDIVISION 21 ii • t ARTICLE 18 DURATION 21 ARTICLE 19 SEVERABILITY 21 ARTICLE 20 EFFECTIVE DATE 21 ARTICLE 21 ASSIGNMENT BY DECLARANT 21 Iii • DECLARATION AND COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE PLAT OF PARKLANE COURT THIS DECLARATION AND COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE PLAT OF PARKLANE COURT, dated as of March , 2007, is made by SPECIALIZED HOMES, L.L.C., a Washington limited liability company ("Declarant"), with reference to the following lots: Declarant is the owner of certain real property legally described as Tract 12, Black Loam Five Acre Tracts, according to the plat thereof recorded in Volume 12 of Plats, Page 101, records of King County, Washington (the "Property"). For ease of reference, the legal description of the Property is also attached as Exhibit A hereto. The Property includes Lots 1 through 10 and Tracts A and B as shown on the face of the Plat of Parklane Court (the "Plat"). Such Lots and Tracts were created or will be created upon recordation of the Plat in the real estate records of King County, Washington. The Plat is to be recorded in the real estate records of King County, Washington substantially contemporaneously with the recordation of this Declaration. Declarant makes this Declaration, and subjects the Property to this Declaration, in connection with the recordation of the Plat, in order to provide for the ownership, maintenance and preservation of certain common areas and private easements, including a native growth protection easement, and to address other matters related to ownership of the Property. NOW, THEREFORE, Declarant declares that all of the Property described in Exhibit A shall be held, transferred, sold, conveyed, leased, used and occupied subject to the covenants, conditions and restrictions hereinafter set forth which are for the purpose of protecting the value and desirability of, and which shall touch, concern and run with title to, the real property subjected to this Declaration and which shall be binding on all parties having any right, title or interest in the described property or any portion thereof, and their respective heirs, successors and assigns, and shall inure to the benefit of each owner thereof. ARTICLE 1 DEFINITIONS 1.1 Words Defined For the purposes of this Declaration and any amendments hereto, the following terms shall have the following meanings and all definitions shall be applicable to the singular and plural forms of such terms: • a) "Association" shall mean the Parklane Court Homeowners Association described in Article 6 of this Declaration, its successors and assigns. b) "Board" shall mean the board of directors of the Association. c) "Common Area" and "Common Area Improvements" shall mean all real and personal property now or hereafter owned by the Association for the common use and enjoyment of the Owners. The Common Areas may include parks, open space, recreation areas, private storm drainage easements or detention areas, sidewalks, street trees and street lighting, if any, planted landscape features, water fountains, signage and any other areas owned by the Association and designated as Common Areas by Declarant. The Common Areas to be owned by the Association at the time of conveyance of the first Lot to an Owner other than Declarant are Tracts A and B as described herein and depicted on the Plat. d) "Construction" and "Constructed" shall mean any construction, reconstruction, erection or alteration of an improvement on a Lot, except wholly interior alterations to a then-existing Structure. e) "Declarant" shall have the meaning given to that term in the first paragraph above. f) "Declaration" shall mean this Declaration and Covenants, Conditions and Restrictions for the Plat of Parklane Court, as it may be amended from time to time. . g) "First Mortgage" and "First Mortgagee" shall mean, respectively: (a) a recorded Mortgage on a Lot that has legal priority over all other Mortgages thereon; and (b) the holder of a first mortgage. For purposes of determining the percentage of First Mortgagees approving a proposed decision or course of action in cases where a Mortgagee holds First Mortgages on more than one Lot, such Mortgagee shall be deemed a separate Mortgagee for each such First Mortgage so held. h) "Lot" shall mean any one of Lots 1 through 10 as shown in the Plat, together with the structures and improvements, if any, thereon. i) "Mortgage" shall mean a recorded mortgage or deed of trust that creates a lien against a Lot and shall also mean a real estate contract for the sale of a Lot. j) "Mortgagee" shall mean the beneficial owner, or the designee of the beneficial owner, of an encumbrance on a Lot created by a mortgage or deed of trust and shall also mean the vendor, or the designee of a vendor, of a real estate contract for the sale of a Lot. k) "Owner" shall mean the record owner, whether one or more Persons, of fee title to any Lot, or any Person who is a purchaser of a Lot under a recorded real 2 • estate contract and who is in possession of the Lot under contract. Only such Persons shall be members of the Association, and Persons who hold an interest in a Lot merely as security for the performance of an obligation shall not be deemed to be Owners. I) "Person" shall mean an individual, corporation, partnership, association, trust or other legal entity. m) "Plans" shall have the meaning given to such term in Section 5.3. n) "Plat," except where the context requires otherwise, shall mean the recorded final plat of Parklane Court that is referred to in the third paragraph of this Declaration. o) "Private Easements" shall mean the private drainage easements described in the Plat and further described in Article 4, not dedicated to the public. p) "Property" shall mean the land described on Exhibit A, together with all improvements thereon. q) "Structure" shall mean any residence, accessory building, fence, wall, driveway, walkway, patio, deck, swimming pool or the like constructed on a Lot. r) "Tract" shall mean either of Tracts A and B as shown in the Plat, together with the structures and improvements, if any, thereon. • s) "Transition Date" shall have the meaning given to such term in Section 6.10. 1.2 Form of Words The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine and neuter pronouns shall be used interchangeably. ARTICLE 2 PLAN OF DEVELOPMENT 2.1 Development of Property One (1) single-family residence may be constructed on each of the Lots. All Lots are hereby restricted exclusively to single-family residential use and shall be subject to the standards and restrictions set forth in Article 5 hereof. Declarant shall have the right, but not the obligation, for so long as Declarant owns any Lot and any Tract, to make improvements and changes to the private easements described on the Plat for: (i) - the installation and maintenance of any improvements; and (ii) the installation and maintenance of any other utilities systems and facilities. 3 The Property also includes the following tracts, depicted and designated on the Plat as follows: Tract A a native growth protection easement tract Tract B a storm detention tract. 2.2Interest Subject to Plan of Development Every purchaser of a Lot within the Property shall purchase such interest and every Mortgagee and lien holder holding an interest therein shall take title, or hold such security interest with respect thereto, with notice of Declarant's plan of development as herein set forth. Any provision of this Declaration to the contrary notwithstanding, the provisions of the foregoing plan of development as set forth in this Article 2 may not be abrogated, modified, rescinded, supplemented or amended in whole or in part without the prior written consent of Declarant or its successors and assigns as defined in Articles 6 and 21 of this Declaration. ARTICLE 3 COMMON AREAS 3.1 "Common Areas" and "Common Area Improvements" "Common Areas" and "Common Area Improvements" include specifically, Tracts A and B as depicted in the Plat and identified as a native growth protection easement tract and a storm detention tract. Common Areas shall be owned by the Association. 3.2 Uses of Tracts A and B Tract A is a native growth protection easement tract and is hereby dedicated and conveyed to the Association upon recording of the Plat. The uses of Tract A shall be limited as defined on the Plat. The Association shall be responsible for the maintenance of Tract A. Tract B is a storm detention tract and is hereby dedicated and conveyed to the Association upon recordingof the Plat. The uses of Tract B shall be limited as defined p on the Plat. The Association shall be responsible for the maintenance of Tract B. 3.3Association to Maintain Common Areas The Association shall have the right and the obligation to maintain and repair the Common Areas, except as set forth herein or on the Plat. 3.4Alteration of Common Areas Nothing shall be altered or constructed upon or removed from the Common Areas, except upon the prior written consent of the Board. 4 Specifically with respect to each Tract, the Association may install landscaping and may also maintain any storm detention or other facilities within the Tract. The right of entryto effect such rights shall apply to the agents, representatives and employees of the Association or subsequent owners of each Tract. The Association shall be responsible for the cost of maintenance, repair, and reconstruction of all improvements within the Tracts owned by the Association. 3.5 Public Areas Any public areas and dedicated areas within the Property shall be subject to all ordinances, rules and regulations of the appropriate governmental agencies with jurisdiction. ARTICLE 4 PRIVATE EASEMENTS 4.1 Private Easements The private easements existing on the Property as of the date hereof are as shown on the Plat and as explicitly created in this Article 4. Such private easements shall benefit such governmental agencies, utility providers, Lot owners and other persons as are identified on the Plat and in this Article 4, and shall be maintained by the Association or individual Lot Owners as set forth on the Plat and in this Article 4. Declarant hereby grants, reserves and creates the following easements: a) Wetland Buffer Area Maintenance Easement. An easement in favor or Declarant and the Association for ingress and egress to the northern portion of Lots 2, 3, 4 and 5 shown on the Plat as "Wetland Buffer Area," for the purpose of allowing Declarant and/or the Association to maintain such Wetland Buffer Area in accordance with all applicable laws and with all requirements of the City of Renton and any other governmental agencies with jurisdiction. Such easement shall provide access to the Wetland Buffer Area from the eastern terminus of NE 1st Place and shall consist of the following: (i) a 21-foot wide strip of land commencing at such eastern terminus of NE 1st • Place and running east-northeast along the path of the 21-foot wide City of Renton access easement that is shown on the Plat, over the southernmost portion of Lots 5, 6 and 7; together with (ii) a 10-foot wide path commencing at the southeast corner of Lot 7 and running north along the eastern boundary of Lot 7 (and encumbering the easternmost 10 feet of Lot 7); together with (iii) a 10-foot wide path commencing at the northeast corner of Lot 7 and running west along northern boundaries of Lots 7, 6, 5, 4, 3 and 2 (and encumbering the northernmost 10 feet of Lots 7, 6, 5, 4, 3 and 2). b) Monument Signage and Landscape Easement. An easement in favor of Declarant and the Association for landscaping and for construction and maintenance of monument signage (identifying the Property as "Parklane Court" and providing such other signage as Declarant or the Association may reasonably determine), encumbering 5 certain portions of the southwest corner of Lot 1 and the northwest corner of Lot 8 as identified with more particularity on the Plat. 4.2 Native Growth Protection Easement Dedication of the Tract A Native Growth Protection Easement Area conveys to the public a beneficial interest in the land within the Native Growth Protection Easement. This interest includes the preservation of native vegetation for certain purposes that benefit the public health, safety and welfare, including control of surface water and erosion, maintenance of slope stability, and protection of plant and animal habitat. The Native Growth Protection Easement imposes upon all present and future owners and occupiers of the land subject to the Native Growth Protection Easement the obligation, enforceable on behalf of the public by the City of Renton, to leave undisturbed all trees and other vegetation within the Native Growth Protection Easement, all as described in further detail on the Plat. ARTICLE 5 CONSTRUCTION ON LOTS AND USE OF LOTS 5.1 Permitted Structures No Structure of any kind shall be constructed, altered, added to or maintained upon any Lot or any other part of the Property, except: (a) improvements or structures which are constructed by Declarant or its agents or assigns; (b) such structures as are approved by the Board in accordance with this Article 5; or (c) structures which pursuant to this Article 5 do not require consent of the Board. 5.2 Uniformity of Use and Appearance One of the purposes of this Declaration is to assure throughout the Property a uniformity of use and quality of: (i) workmanship; (ii) materials; (iii) design; (iv) maintenance; and (v) location of structures with respect to topography and finish grade elevation. It is in the best interests of each Owner that such uniformity of use and quality be maintained as hereinafter provided. No building (except for accessory structures) shall be erected, altered, placed or permitted to remain on any Lot other than one single family dwelling. Accessory structures, including storage buildings, are permitted to the extent allowed by the requirements of this Article 5. Notwithstanding anything herein set forth, the Construction of any Structure shall comply with the more restrictive of either (i) the terms and conditions of this Declaration or (ii) the laws, codes, ordinances and regulations of any governmental entity having jurisdiction. 5.3 Submission of Plans At least twenty (20) days before commencing Construction of any Structure on any Lot, the Owner shall submit to the Board two (2) complete sets of detailed building, 6 surface water run-off control and landscaping plans and specifications and a site plan showing the location of all proposed Structures (the plans, specifications and site plans are individually and collectively referred to herein as the "Plans"). The Plans shall be submitted in a form satisfactory to the Board, which may withhold its approval by reason of its reasonable dissatisfaction with the location of the Structure on the Lot, color scheme, finish, architecture, height impact on view from another Lot or Lots, appropriateness of the proposed Structure, materials used therein, or because of its reasonable dissatisfaction with any other matter which, in the reasonable judgment of the Board, would render the proposed Structure out of harmony with the general plan of development of the Property or other Structures nearby. The Board's approval or disapproval of Plans shall be in writing and approval shall be evidenced by written endorsement on such Plans, one copy of which shall be delivered to the Owner of the Lot upon which the Structure is to be Constructed. In any judicial action to enforce the Board's decision the losing party shall pay the prevailing party's attorney's fees and costs including those incurred in connection with any appeal. 5.4 Construction No Structure shall be Constructed or caused to be Constructed on any Lot unless the Plans for the Structure, including landscaping, have been approved in writing by the Board. The Board's review and approval or disapproval of the Plans on the basis of cost, aesthetic design, harmony with previously approved Structures on or about other Lots in the Property, location, or consistency with this Declaration shall be absolute and enforceable in any court of competent jurisdiction. THE BOARD'S APPROVAL OF ANY PLANS, HOWEVER, SHALL NOT CONSTITUTE ANY WARRANTY OR REPRESENTATION WHATSOEVER BY THE BOARD OR ANY OF ITS MEMBERS THAT SUCH PLANS WERE EXAMINED OR APPROVED FOR ENGINEERING OR STRUCTURAL INTEGRITY OR SUFFICIENCY OR COMPLIANCE WITH APPLICABLE GOVERNMENTAL LAWS, CODES, ORDINANCES AND REGULATIONS, AND EACH OWNER HEREBY RELEASES ANY AND ALL CLAIMS OR POSSIBLE CLAIMS AGAINST THE BOARD OR ANY OF THEM, AND THEIR HEIRS, SUCCESSORS AND ASSIGNS, OF ANY NATURE WHATSOEVER, BASED UPON ENGINEERING OR STRUCTURAL INTEGRITY OR SUFFICIENCY OR COMPLIANCE WITH APPLICABLE GOVERNMENTAL LAWS, CODES, ORDINANCES OR REGULATIONS. 5.5 Minimum Size a) Floor Area The floor area of the main house constructed on any Lot, exclusive of open porches and garages, shall be not less than: (a) 2200 square feet for a dwelling containing a single level; and (b) 2800 square feet for a dwelling containing two levels. The Board shall have the discretion to reduce minimum floor area requirements upon a showing of topographical or other physical constraints which limit buildable area. 7 , b) Lot Size No Lot or portion of a Lot in this Plat shall be divided and sold or resold, or ownership changed or transferred, whereby the ownership of any portion of this Plat shall be less than the area required for the use district in which the Lot is located. 5.6Buildinq Laws All buildings or Structures shall be constructed in accordance with all applicable laws and regulations of the City of Renton, Washington, and any other applicable codes. 5.7 Use Restrictions a) Residential Use The dwellings within the Structures are intended for, and restricted to, use as single family residences only, on an ownership, rental or lease basis, and for social, recreational or other reasonable activities normally incident to such use. The dwellings may also be used for home business activities that do not involve signs, retail sales, frequent visits by customers, clients or non-resident employees, or other activities that would detract from the residential character of the Property. In addition to the foregoing, Declarant may use dwellings it owns as sales offices and models for sales of other Lots. b) Maintenance of Buildings and Lots • Each Owner shall, at the Owner's sole expense, keep the interior and exterior of the Structure on the Owner's Lot, as well as the Lot, in a clean and sanitary condition, free of rodents and pests, and in good order, condition and repair, and shall do all redecorating, painting, landscaping and maintenance at any time necessary to maintain the appearance and condition of the Structure and the Lot. c) Completion of Construction Any Structure erected or placed on any Lot shall be completed as to external appearance within nine (9) months from the date Construction is started. However, with good cause shown, the Board may extend this term. All yards and landscaping must be completed no later than thirty (30) days after the date of occupancy of the Structure. However, with good cause shown, the Board may extend this term. All Lots shall be maintained in a neat and orderly condition during•Construction. d) Parking No trucks, campers, trailers, boats, motorcycles or other vehicles or any part thereof shall be parked or permitted to remain on any Lot, unless the same is stored in a garage. e) Signs No sign of any kind shall be displayed to public view on or from any Lot without the prior written consent of the Board, except for "For Rent" or "For Sale" signs in a 8 form, and for a period of time, not prohibited by any rules and regulations of the Board. This Section shall not apply to the Declarant. f) Animals Animals, including horses, livestock, poultry, reptiles and pigs, shall not be kept on any Lot, except that household pets not exceeding three (3) in number may be kept on a Lot. All animal enclosures must be kept in a clean, neat and odor-free condition at all times. All animals must be kept outside of the building setback areas. The Board may at any time require the removal of any pet which it finds is disturbing other Owners or tenants unreasonably, in the Board's determination, and may exercise this authority for specific pets even though other pets are permitted to remain. Notwithstanding anything set forth herein, all Owners shall comply with all applicable governmental laws, codes, ordinances and regulations pertaining to animals. g) Temporary Structures No Structure of a temporary character, trailer, tent, shack, garage, barn or other outbuilding shall be installed, placed or used on any Lot as a residence, either temporarily or permanently. h) Clothes Lines No washing, rugs, clothing, apparel or any other article shall be hung from the exterior of any Structure or on a Lot so as to be visible from the streets and roadways adjoining the Lots. i) Radio and Television Aerials Normal and customary television antennas, radio aerial and satellite receiving dishes of less than 20 inches in diameter, in all cases designed for residential neighborhood use, shall be allowed to be erected or placed on any Lot so long as no part of such equipment is more than six (6) feet in height above the highest point 9 g (exclusive of chimneys) on the Structure upon which it is erected. No rotary beams, separate towers or other similar devices shall be Constructed on any Lot without the written approval of the Board. Except as installed by Declarant, no other satellite receiving dishes or other such electronic receiving devices shall be located on any Lot in a location that is visible from the adjoining homes, without the prior written approval of the Board. j) . Trash Containers and Debris All trash shall be placed in sanitary containers either buried or screened so as not to be visible from adjoining Structures or streets or roadways. No Lot or any portion thereof shall be used as a dumping ground for trash or rubbish of any kind. Yard rakings, dirt and debris resulting from landscaping work or Construction shall not be dumped onto adjoining Lots or streets or roadways. Compost piles may be kept upon the Lots provided they are kept in a clean, neat and sanitary condition and comply with any rules and regulations of the Board. k) Offensive Activity 9 Except as otherwise provided in Section 5.7(a), no trade, craft, business, profession, commercial or manufacturing enterprise or business or commercial activity of any kind, including day schools, nurseries or church schools, shall be conducted or permitted on any Lot, nor shall goods, equipment, vehicles or materials used in connection therewith, be kept, parked, stored, dismantled or repaired outside of any Lot or on any street within the Property. No noxious or offensive activity, including but not limited to the creation of excess levels of noise, shall be carried on in any Lot, nor shall anything be done therein which may be or become an annoyance or nuisance to other Owners or tenants. I) Setbacks All Structures shall comply with all applicable governmental laws, codes, ordinances and regulations pertaining to setbacks. No building foundations are allowed beyond the required setback line unless otherwise provided for by law. m) Fences No fence shall be constructed on any Lot without the prior written approval of the Board, which approval may be granted or denied in the Board's sole discretion. All fences shall be 1" x 4" cedar construction or better and shall otherwise be constructed in a good and workmanlike manner, shall be artistic in design and shall not detract from the appearance of any adjacent Structures. In addition, the finished wood side of the fence shall face the adjacent Lot(s). No fence shall exceed six (6) feet in height. No fence shall be allowed within the front yard setback. All fences shall be set back at least ten (10) feet from the front elevation of the residence as well as the front elevation of the garage and any portion thereof. No fences shall be erected over, upon or within the easement areas provided for in the Plat. n) Underground Utilities All utility lines or wires located outside a dwelling unit shall be in conduits attached to such units or underground. o) Drainage Absolutely no dumping of any pollutants into the storm sewer systems shall be permitted. • p) Damage Any damage to streets, Plat improvements, entry structures, fences, landscaping, mailboxes, lights and lighting standards by Owners, their guests, invitees, licensees, contractors, agents or service personnel shall be repaired by such Owner within twelve (12) days from the occurrence of such damage. q) Driveways 10 All driveways shall be concrete, or other Board approved material, from the edge of the paved street to connect with the paved surface of the floor of the garage. r) Landscaping (i) Front Yards. All front yards of Lots shall be landscaped primarily with grass sod from the edge of the right-of-way to within ten (10) feet of the residence; provided, however, that within such front yard areas may be located flower beds, paths and patio areas. (ii) Back Yards. All back yards of Lots shall be landscaped which shall include, at a minimum, a hydro seeded lawn and bark or other similar material covering exposed soil. (iii) Tree Requirement. With respect to each Lot, the building permit applicant Lot shall be required to plant two new trees within the front yard setback area for such Lot prior to final building permit inspection. All landscaping shall be completed no later than thirty (30) days after the date of occupancy of the Structure on the Lot. s) Mailboxes All mailboxes must be of a standard accepted by the U.S. Postal Authorities and must be located in those areas so designed by the U.S. Postal Department and the Board. Structures containing mailboxes must be approved by the Board. t) Compliance with Laws This Plat is subject to the platting provisions of all applicable municipal and/or county codes, and shall comply with the minimum requirements of all applicable zoning classifications. All lots in this Plat shall meet the minimum dimensional requirements of such applicable zoning classifications and shall be generally as shown on the face of the approved plat. Notwithstanding anything to the contrary set forth herein, each owner and the Association shall comply with the more restrictive of either (a) the terms and conditions of this Declaration, or (b) the laws, codes, ordinances and regulations of any governmental entity having jurisdiction. 5.8 Variances The Board shall be empowered to grant variances with respect to the use restrictions contained herein, provided that such variances shall not violate any applicable laws, codes, ordinances and regulations of any governmental entity having jurisdiction, shall not be granted on an arbitrary basis, and shall not unfairly discriminate between Owners. 11 ARTICLE 6 PARKLANE COURT HOMEOWNERS ASSOCIATION 6.1 Organization The Parklane Court Homeowners Association is a nonprofit corporation in which all Owners are members. The Articles of Incorporation and Bylaws of the Association, as amended from time to time, are to be kept at all times in the records of the Association and shall be provided to any Owner upon such Owner's written request. This Declaration, together with the Articles of Incorporation and Bylaws of the Association, shall govern the affairs of the Association. 6.2 Board of Directors The affairs of the Association shall be governed by a Board of Directors (the "Board") which shall be composed of one or more members, to be determined in the reasonable discretion of the Association. The Declarant initially shall constitute the Board and shall be fully authorized to exercise all of the powers of the Association until the Transition Date as defined in Section 6.10. Subject to any specific requirements hereof, the Board shall have authority to establish operating rules and procedures. In the event of death or resignation of any member or members of the Board, the remaining member or members, if any, shall have full authority to appoint a successor member or members. Members of the Board shall not be entitled to any compensation for services performed pursuant to this Declaration. 6.3 Qualification for Membership Each fee owner of a Lot (including Declarant) shall be a member of the Association and shall be entitled to one membership and one vote for each Lot owned, provided, that if a Lot has been sold on contract, the contract purchaser shall exercise the rights of an Owner for purposes of the Association and this Declaration, except as hereinafter limited, and shall be the voting representative unless otherwise specified. Ownership of a Lot shall be the sole qualification for membership in the Association. 6.4Transfer of Membership The Association membership of each Owner (including Declarant) shall be appurtenant to the Lot giving rise to such membership, and shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way except upon the transfer of title to the Lot and then only to the transferee of title to the Lot. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Lot shall operate automatically to transfer the membership in the Association to the new Owner. 6.5 Number of Votes The total voting power of the Association at any given time shall equal the number of Lots included within the Property at that time. The Owner or Owners of each Lot within the Property shall be entitled to one vote. If a Person (including Declarant) 12 • 1 owns more than one Lot, he or she shall have the votes appertaining to each Lot owned. 6.6 Voting If a Lot is owned by husband and wife and only one of them is at a meeting, the one who is present will represent the marital community. The vote for a Lot must be cast as a single vote, and fractional votes shall not be allowed. If joint Owners are unable to agree among themselves how their vote shall be cast, they shall lose their right to vote on the matter in question. 6.7 Pledged Votes An Owner may, but shall not be obligated to, pledge his vote on all issues or on certain specific issues to a Mortgagee; provided, however, that if an Owner is in default under a Mortgage on his Lot for ninety (90) consecutive days or more, the Owner's Mortgagee shall automatically be authorized to declare at any time thereafter that such Owner has pledged his vote to the Mortgagee on all issues arising after such declaration and during the continuance of the default. If the Board has been notified of any such pledge to a Mortgagee, only the vote of the Mortgagee will be recognized on the issues that are subject to the pledge. 6.8Annual and Special Meetings Within the period commencing thirty (30) days before the Transition Date and ending thirty (30) days after the Transition Date, there shall be a meeting of the members of the Association and thereafter there shall be an annual meeting of the members of the Association in the first quarter of each fiscal year at such reasonable place and time as may be designated by written notice from the Board delivered to the Owners no less than thirty (30) days before the meeting. At the first such meeting, and at each annual meeting thereafter, the Owners shall elect by majority vote individuals to serve as Board members until a successor is elected at the next annual meeting. Each Lot shall be entitled to one vote for each director and the voting for directors shall be noncumulative. The financial statement for the preceding fiscal year (if any) and the budget the Board has adopted for the pending fiscal year shall be presented at the annual meeting for the information of the members. Special meetings of the members of the Association may be called at any time upon not less than fourteen (14) days' prior written notice to all Owners, for the purpose of considering matters which require the approval of all or some of the Owners, or for any other reasonable purpose. Any First Mortgagee of a Lot may attend or designate a representative to attend the meetings of the Association. 6.9 Books and Records The Board shall cause to be kept complete, detailed and accurate books and records of the receipts and expenditures (if any) of the Association, in a form that complies with generally accepted accounting principles. The books and records, authorizations for payment of expenditures, and all contracts, documents, papers and 13 other records of the Association shall be available for examination by the Owners, any Mortgagees, and the agents or attorneys of either of them, during normal business hours and at any other reasonable time or times. 6.10 Transition Date As noted above, Declarant initially shall constitute the Board and shall be fully authorized to exercise all of the powers of the Association until the occurrence of the - Transition Date. The "Transition Date" shall be the earlier of: (a) the date designated by Declarant in a written notice to the Owners, which date may be any date after this Declaration has been recorded, or (b) the thirtieth (30th) day after Declarant has transferred to retail purchasers title to all Lots. From and after the Transition Date, the then-current Owners of sixty percent (60%) of the Lots in the Property shall have the power through a written instrument recorded in the real property records of King County, Washington to restrict or eliminate any or all of the approval powers and duties of the Board set forth in this Declaration, excluding the duty to maintain the Common Areas. ARTICLE 7 NOTICES FOR ALL PURPOSES All notices given under the provisions of this Declaration or rules or regulations of the Association shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, the notice shall be deemed to have been delivered on the third (3rd) day of regular mail delivery after a copy has been deposited in the U. S. mail, first class, postage prepaid, addressed to the Person entitled to such notice at the most recent address known to the Board. Mailing addresses may be changed by notice in writing to the Board. Notices to the Board may be given to any Board member or, until the Transition Date mailed to Declarant at the following address: Specialized Homes, L.L.C., 1741 4th Avenue South, Suite B, Seattle;WA 98134. The Board's address may be changed from time to time by the execution and recording of an instrument in the real property records of King County, Washington which (a) refers to this Declaration and this Article.7; and (b) sets forth the Board's new address. ARTICLE 8 AUTHORITY OF THE BOARD 8.1 Adoption of Rules and Regulations The Board is empowered to adopt, amend and revoke on behalf of the Association detailed administrative rules and regulations necessary or convenient from time to time to insure compliance with the general guidelines of this Declaration, to promote the comfortable use and enjoyment of the Property and to govern the operation and procedures of the Association. The rules and resolutions may, without limitation, authorize voting by proxy or mail, or both, on Association matters. The rules and regulations of the Association shall be binding upon all Owners and occupants and all other Persons claiming any interest in the Property. 14 • 8.2 Enforcement of Declaration, Etc. The Board shall have the power to enforce the provisions of this Declaration, and the rules and regulations of the Association for the benefit of the Association. The failure of any Owner to comply with the provisions of this Declaration, or the rules and regulations of the Association will give rise to a cause of action in the Association (acting through the Board) and any aggrieved Owner for recovery of damages, or injunctive relief, or both. If a legal action is brought to interpret or enforce compliance with the provisions of this Declaration, or the rules or regulations of the Association, the prevailing party shall be entitled to judgment against the other party for its reasonable expenses, court costs and attorneys' fees in the amount awarded by the Court. 8.3 Goods and Services • The Board shall acquire and pay for as common expenses of the Association all goods and services reasonably necessary or convenient for the efficient and orderly maintenance of all portions of the Common Areas not maintained by public utility companies or a governmental entity. The goods and services shall include (by way of illustration and not limitation) utility services for the Common Areas; policies of insurance; and maintenance, repair, landscaping, gardening, and general upkeep of the Common Areas. The Board may hire such employees or agents as it considers necessary. 8.4 Protection of Common Areas The Board may spend such funds and take such action as it may from time to time deem necessary to preserve the Common Areas, settle claims, or otherwise act in what it considers to be the best interests of the Association. ARTICLE 9 BUDGET AND ASSESSMENT FOR COMMON EXPENSES 9.1 Fiscal Year; Preparation of Budget • The Board may adopt such fiscal year for the Association as it deems to be • convenient. Unless another year is adopted, the fiscal year will be the calendar year. As soon as the Board in its discretion deems advisable, and prior to the expiration of each fiscal year thereafter, the Board shall establish a budget for the costs during the ensuing fiscal year of maintaining the Common Area, the private easement areas, the landscape area and all other areas which the Association is'responsible to maintain. The Board shall then assess each Lot with its pro rata share of such estimated costs, based upon the number of Lots then-within the Property and the appropriate number of lots required to share in such costs based on the beneficial interest of such lots in the Private Easements as described in the Plat and in this Declaration. The Board, at its election, may require the Owners to pay the amount assessed in equal monthly or quarterly installments or in a lump sum annual installment. The Board shall notify each Owner in writing at least ten (10) days in advance of each assessment period of the amount of the assessment for said period, which notice shall be accompanied by a copy 15 of the budget upon which the assessment is based. The assessments levied by the Board shall be used exclusively to promote the recreation, health, safety and welfare of the Owners and for the improvement and maintenance of the Common Areas and the Private Easement areas. 9.2 Certificate of Unpaid Assessments Any failure by the Board or the Association to make the budget and assessments hereunder before the expiration of any fiscal year for the ensuing fiscal year shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of the Owners from the obligation to pay assessments during that or any subsequent year,.and the assessment amount and payment method established for the preceding fiscal year (if any) shall continue until a new assessment is established. Upon the request of any Owner or Mortgagee or prospective Owner or prospective Mortgagee of a Lot, the Board will furnish a statement of the amount, if any, of unpaid assessments charged to the Lot. The statement shall be conclusive upon the Board and the Association as to the amount of such indebtedness on the date of the statement in favor of all purchasers and Mortgagees of the Lot who rely on the statement in good faith. All assessments and other receipts received by the Association shall belong to the Association. 9.3 Date of Commencement of Annual Assessments The annual assessments provided for herein shall commence as to all Lots at such time as the Board in its absolute discretion deems advisable. The first annual assessment shall be adjusted according to the number of months remaining in the fiscal year. ARTICLE 10 LIEN AND COLLECTION OF ASSESSMENTS 10.1 Assessments Are a Lien; Priority All unpaid sums assessed by the Association for the share of the common expenses chargeable to any Lot and any sums specially assessed to any Lot under the authority of this Declaration shall constitute a lien on the Lot and all its appurtenances from the date the assessment becomes due and until fully paid. The lien for such unpaid assessments shall be subordinate to tax liens on the Lot in favor of any assessing unit and/or special district, and to all sums unpaid on all First Mortgages of record, but, to the extent permitted by applicable law, shall have priority over all other liens against the Lot. A First Mortgagee that obtains possession through a Mortgage foreclosure or deed of trust sale, or by taking a deed in lieu of foreclosure or sale, or a purchaser at a foreclosure sale, shall take the Lot free of any claims for the share of common expenses or assessments by the Association chargeable to the Lot which • became due before such possession, but will be liable for the common expenses and assessments that accrue after the taking of possession. A Lot's past-due share of 16 common expenses or assessments shall become new common expenses chargeable to all of the Lot Owners, including the Mortgagee or foreclosure sale purchaser and their successors and assigns, in proportion to the number of Lots owned by each of them. Notwithstanding any of the foregoing, however, the Owner and the real estate contract purchaser shall continue to be personally liable for past due assessments as provided in Section 10.3. For purposes of this Section, "Mortgage" does not include a real estate contract and "Mortgagee" does not include the vendor or the assignee or designee of a vendor of a real estate contract. 10.2 Lien May Be Foreclosed The lien for delinquent assessments may be foreclosed by suit by the Board, acting on behalf of the Association, in like manner as the foreclosure of a mortgage of real property. The Board, acting on behalf of the Association, shall have the power to bid on the Lot at the foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. 10.3 Assessments Are Personal Obligations In addition to constituting a lien on the Lot, all sums assessed by the Association chargeable to any Lot, together with interest, late charges, costs and attorneys' fees in the event of delinquency, shall be the joint and several personal obligations of the Owner and any contract purchaser of the Lot when the assessment is made and their grantees. Suit to recover personal judgment for any delinquent assessments shall be maintainable without foreclosing or waiving the liens securing them. 10.4 Late Charges and Interest on Delinquent Assessments The Board may from time to time establish late charges and a rate of interest to be charged on assessments delinquent for a period of more than ten (10) days after the date when due. In the absence of another established, nonusurious rate, delinquent assessments shall bear interest at the rate of twelve percent (12%) per annum. If an installment on an assessment against a Lot is not paid when due, the Board may elect to declare the entire assessment against the Lot for the remainder of the fiscal year to be immediately due and payable. 10.5 Recovery of Attorneys' Fees and Costs In any action to correct delinquent assessments, the prevailing party shall be entitled to recover as a part of its judgment a reasonable sum for attorneys' fees.and all costs and expenses reasonably incurred in connection with the action, in addition to taxable costs permitted by law. 10.6 Remedies Cumulative 17 1 The remedies provided herein are cumulative and the Board may pursue them, and any other remedies which may be available under law although not expressed herein, either concurrently or in any order. ARTICLE 11 FAILURE OF BOARD TO INSIST ON STRICT PERFORMANCE NO WAIVER The failure of the Board in any instance to insist upon the strict compliance with this Declaration or rules and regulations of the Association, or to exercise any right contained in such documents, or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment for the future of any term, covenant, condition, or restriction. The receipt by the Board of payment of any assessment from an Owner, with knowledge of any breach by the Owner, shall not be a waiver of the breach. No waiver by the Board of any requirement shall be effective unless expressed in writing and signed for the Board. ARTICLE 12 • LIMITATION OF LIABILITY So long as a Board member, or Association member, or Declarant has acted in good faith, without willful or intentional misconduct, upon the basis of such information as is then possessed by such Person, then no such Person shall be personally liable to any Owner, or to any other Person, including the Association, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error or negligence of such Person; provided, that this Article shall not apply where the consequences of such act, omission, error or negligence are covered by any insurance actually obtained by the Board. ARTICLE 13 INDEMNIFICATION Each Board member and Declarant shall be indemnified by the Association against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed, in connection with any proceeding to which such party may be a party, or in which such party may become involved, by reason of holding or having held such position, or any settlement thereof, whether or not such party holds such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by insurance and except in such cases wherein such Board member or Declarant is adjudged guilty of willful misfeasance in the performance of his or her duties; provided, that in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association. 18 ARTICLE 14 INSURANCE At such times as the Board deems appropriate, the Board shall cause the Association to purchase and maintain as a common expense a policy or policies of insurance which the Board deems necessary or desirable to provide: casualty insurance; comprehensive liability insurance; insurance, if available, for the protection of the Association's directors and representatives from personal liability in the management of the Association's affairs; and such other insurance as the Board deems advisable. The Board shall review the adequacy of the Association's insurance coverage at least annually. ARTICLE 15 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY • In the event of any casualty, loss or other damage to the Common Area for which the then-current assessments by the Board are insufficient to repair or restore, or for which there are not insurance proceeds or insufficient insurance proceeds available to the Board for such restoration or repair, the Board may make a special assessment against each Lot for its pro rata share of the cost and expenses to repair and/or restore the Common Areas. The special assessment shall be payable, at the determination of the Board, in either monthly or quarterly installments or in a single lump sum amount. The Board shall notify each Owner of any such special assessment not less than twenty (20) days prior to the date such special assessment or the first installment thereon is due and payable, which notice shall be accompanied by a reasonably detailed statement of the Board's estimated costs and expenses of repairing and/or restoring the Common Areas. ARTICLE 16 AMENDMENTS OF DECLARATION 16.1 Amendments of Declarant Prior to the Transition Date, Declarant may amend this Declaration by an instrument in writing filed and recorded in the Records of King County, Washington, without the approval of any Owner or Mortgagee; provided, however, that (a) in the event that such amendment materially alters or changes any Owner's right to the use and enjoyment of his Lot or the Common Areas as set forth in this Declaration or adversely affects the title to any Lot, such amendment shall be valid only upon the written consent thereto by a majority in number of the then-existing Owners affected thereby, or (b) in the event that such amendment would materially and adversely affect the security, title and interest of any Mortgagee, such amendment shall be valid only upon the written consent thereto of all such Mortgagees so affected. Each Owner, by . acceptance of a deed or other conveyance of a Lot, agrees to be bound by such 19 amendments as are permitted by this Section 16.1 and further agrees that, if requested to so do by Declarant, such Owner will consent to the amendment of this Declaration or any other instruments relating to the Property (i) if such amendment is necessary to bring any provision hereof or thereof into compliance or conformity with the provisions of any applicable governmental statute, rule or regulation or any judicial determination which shall be in conflict therewith, (ii) if such amendment is necessary to enable any reputable title insurance company to issue title insurance coverage with respect to any Lots subject to this Declaration, (iii) if such amendment is required by an institutional or governmental lender or purchaser of mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase mortgage loans on any Lot or other improvements subject to this Declaration, or (iv) if any such amendment is necessary to enable any governmental agency or reputable private insurance company to insure Mortgages on the Lots or other improvements subject to this Declaration. 16.2 Amendments by Association Any Owner may propose amendments to this Declaration to the Board. A majority of the members of the Board may cause a proposed amendment to be submitted to the members of the Association for their consideration. If an amendment is proposed by Owners of 20% or more of the Lots, then, irrespective of whether the. Board concurs in the proposed amendment, it shall be submitted to the members of the Association for their consideration at their next regular or special meeting for which timely notice may be given. Notice of a meeting at which an amendment is to be considered shall include the text of the proposed amendment. Amendments may be adopted at a meeting of the Association or by written consent of the requisite number of Persons entitled to vote, after notice has been given to all Persons entitled to receive notice of a meeting of the Association. The unanimous consent of all Owners shall be required for adoption of either: (a) an amendment changing the voting power or portion of assessments appurtenant to each Lot; or (b) an amendment of Section 5.7 or of this Article 16. All other amendments shall be adopted if approved by the Owners of sixty percent (60%) of the Lots. Once an amendment has been adopted by the Association, the amendment will become effective when a certificate of the amendment, executed by a member of the Board, has been recorded in the real property records of King County, Washington. 16.3 Amendments to Article 3 Notwithstanding the foregoing provisions regarding amendments, no amendment to this Declaration which affects the obligation of the Owners to maintain Common Areas as set forth in Article 3 hereof shall become effective without the prior written consent of the City of Renton, Washington, or the then-appropriate governmental entity with jurisdiction over such matters. 20 ARTICLE 17 ANNEXATION AND SUBDIVISION Residential property other than the Common Areas may be annexed or added to the Property only with the consent of sixty percent (60%) of the Association. No Lot shall be subdivided or combined without the approval of all Owners. Notwithstanding the foregoing, no Lot or portion of any Lot shall be divided and sold or resold or ownership transferred whereby ownership of any Lot shall be less than the area required for the use district of the Property. ARTICLE 18 DURATION The covenants, conditions, and restrictions of this Declaration shall run with and bind the Property, and shall inure to the benefit of and be enforceable by the Owners, their respective legal representatives, heirs, successors, and assigns, for a period of thirty (30) years from the date this Declaration is recorded, after which time the covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years each unless an instrument signed by a majority of the then- Owners has been recorded agreeing to terminate the covenants, conditions and restrictions. Notwithstanding the foregoing, no such termination shall be effective so as to terminate the obligation of the Owners to maintain the Common Areas as set forth in Article 3 hereof without the prior written consent of the City of Renton, Washington, or the then-appropriate governmental entity with jurisdiction over such matters. ARTICLE 19 SEVERABILITY The provisions of this Declaration shall be independent and severable, and the unenforceability of any one provision shall not affect the enforceability of any other provision. ARTICLE 20 EFFECTIVE DATE This Declaration shall be effective upon recording. ARTICLE 21 ASSIGNMENT BY DECLARANT Declarant reserves the right to assign, transfer, sell, lease or rent all or any portion of the Property and reserves the right to assign all or any of its rights, duties and obligations created under this Declaration. 21 • DATED as of the date first written above. DECLARANT: SPECIALIZED HOMES, L.L.C., a Washington limited liability company By: SH Real Estate, Inc., sole member By: Niemann, President STATE OF WASHINGTON ) ) ss. COUNTY OF KING • ) I certify that I know or have satisfactory evidence that Robert Niemann is the person who appeared before me, and that said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute this instrument and acknowledged it as the President of SH Real Estate, Inc., the sole member of SPECIALIZED HOMES, L.L.C., the entity which signed this instrument, to be the free and voluntary act of such entity for the uses and purposes mentioned in the instrument. Dated this d day of March, 2007. ‘.\.pr 1,1,„,s, (?VrAce (Y/CL_Jakk.C(..A„c, cov (Signature of Notary) so;-a . 0 ()SAS+4 � _ �= (Legibly Print or StampName of ++'1►44x3 N° _ ( g Y Notary) 1�45181, �� Notary Public in and for the tate o��f//2� �,ti„0300��‘ Washington, Residing at �i` _— My commission expires: /02 —!7--(00/0 • EXHIBIT A TO DECLARATION FOR THE PLAT OF PARKLANE COURT Legal Description Tract 12, Black Loam Five Acre Tracts, according to the plat thereof recorded in Volume 12 of Plats, Page 101, records of King County, Washington. • 23 1 • BYLAWS OF PARKLANE COURT HOMEOWNERS ASSOCIATION • I. DEFINITIONS A. Words Defined. For the purposes of these Bylaws, the following terms shall have the following meanings and all definitions shall be applicable to the singular and plural forms of such terms: a) "Association" shall mean the Parklane Court Homeowners Association, its successors and assigns. b) "Board" shall mean the board of directors of the Association. c) "Bylaws" means these bylaws of the Association. d) "Common Area" and "Common Area Improvements" shall mean all real and personal property now or hereafter owned by the Association for the common use and enjoyment of the Owners. The Common Areas may include parks, open space, recreation areas, private storm drainage easements, sidewalks, street trees and street lighting, if any, planted landscape features, water fountains, signage and any other areas owned by the Association and designated as Common Areas by Declarant. The Common Areas to be owned by the Association at the time of conveyance of the first Lot to an Owner other than Declarant are described and depicted as Tract A and Tract B on the Plat. e) "Declarant" shall mean Specialized Homes, L.L.C., a Washington limited liability company. f) "Declaration" shall mean the Declaration and Covegants, Conditions and Restrictions For The Plat of Parklane Court, dated as of March 12- , 2007, and recorded on /114.d, 2 6 , 2007, under King County Auditor's No.a2D07403.?oeo/25.4 as it may be amended from time to time. g) "First Mortgage" and "First Mortgagee" shall mean, respectively: (a) recorded Mortgage on a Lot that has legal priority over all other Mortgages thereon; and (b) the holder of a first mortgage. For purposes of determining the percentage of First Mortgagees approving a proposed decision or course of action in cases where a Mortgagee holds First Mortgages on more than one Lot, such Mortgagee shall be deemed a separate Mortgagee for each such First Mortgage so held. h) "Lot" shall mean any one of Lots 1 through 10 as shown in the Plat, together with the structures and improvements, if any, thereon. i) "Mortgage" shall mean a recorded mortgage or deed of trust that creates a lien against a Lot and shall also mean a real estate contract for the sale of a Lot. j) "Mortgagee" shall mean the beneficial owner, or the designee of the beneficial owner, of an encumbrance on a Lot created by a mortgage or deed of trust and shall also mean the vendor, or the designee of a vendor, of a real estate contract for the sale of a Lot. k) "Owner" shall mean the record owner, whether one or more Persons, of fee simple title to a Lot, including a contract seller except those having such interest merely for the performance of an obligation. I) "Person" shall mean an individual, corporation, partnership, association, trust or other legal entity. m) "Plat" shall mean the final plat recorded /14.4 40 .20 , 2007, in Volume cab of Plats, pagesd/5 through eq. inclusive, King County, Washington, under King County Recording No.,?cto7632.00e/25/, and any amendments, corrections or addenda thereto subsequently recorded. n) "Property" shall mean the land described on Exhibit A to the Declaration, together with all improvements thereon. o) "Structure" shall mean any residence, accessory building, fence, wall, driveway, walkway, patio, deck, swimming pool or the like constructed on a Lot. p) "Tract" shall mean either one of Tracts A and B as shown in the Plat, together with the structures and improvements, if any, thereon. q) "Transition Date" shall have the meaning given to such term in Section 610 of the Declaration. B. Form of Words. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine and neuter pronouns shall be used interchangeably. • • ll. MEMBERS . . A. Qualification for Membership. Each record owner (including Declarant), whether one or more Persons, of fee title to any Lot, or any Person who is a purchaser of a Lot under a recorded real estate contract and who is in possession of the Lot under contract, shall be a member of the Association and shall be entitled to one membership and one vote for each Lot owned. If a Lot is subject to sale pursuant to a recorded real estate contract, then the contract purchaser shall exercise the rights of the Owner of such Lot for purposes of the Association and these Bylaws except to the extent that such exercise of rights may hereinafter be specifically limited, and shall be the voting representative with respect to such Lot unless otherwise specified herein. B. Transfer of Membership. 2 • • The Association membership of each Owner (including Declarant) shall be appurtenant to the Lot giving rise to such membership, and shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way except upon the transfer of title to the Lot and then only to the transferee of title to the Lot. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Lot shall operate automatically to transfer the membership in the Association to the new Owner. C. Number of Votes. The total voting power of the Association at any given time shall equal the number of Lots included within the Property at that time. The Owner or Owners of each Lot within the Property shall be entitled to one vote. If a Person (including Declarant) owns more than one Lot, he or she shall have the votes appertaining to each Lot owned. . D. Voting. If a Lot is owned by husband and wife and only one of them is at a meeting, the one who is present will represent the marital community. The vote for a Lot must be cast as a single vote, and fractional votes shall not be allowed. If joint Owners are unable to agree among themselves how their vote shall be cast, they shall lose their right to vote on the matter in question. E. Pledged Votes. An Owner may, but shall not be obligated to, pledge his vote on all issues or on certain specific issues to a Mortgagee; provided, however, that if an Owner is in default under a Mortgage on his Lot for ninety (90) consecutive days or more, the Owner's Mortgagee shall automatically be authorized to declare at any time thereafter that such Owner has pledged his vote to the Mortgagee on all issues arising after such declaration and during the continuance of the default. If the Board has been notified of any such pledge to a Mortgagee, only the vote of the Mortgagee will be recognized on the issues that are subject to the pledge. F. Annual and Special Meetings. Within the period commencing thirty (30) days before the Transition Date and ending thirty (30) days after the Transition Date, there shall be a meeting of the members of the Association and thereafter there shall be an annual meeting of the members of the Association in the first quarter of each fiscal year at such reasonable place and time as may be designated by written notice from the Board delivered to the Owners no less than thirty (30) days before the meeting. At the first such meeting, and at each annual meeting thereafter, the Owners shall elect by majority vote individuals to serve as Board members until a successor is elected at the next annual meeting. Each Lot shall be entitled to one vote for each director and the voting for directors shall be noncumulative. The financial statement for the preceding fiscal year (if any) and the budget the Board has adopted for the pending fiscal year shall be presented at the 3 • annual meeting for the information of the members. Special meetings of the members of the Association may be called at any time upon not less than fourteen (14) days' prior written notice to all Owners, for the purpose of considering matters which require the approval of all or some of the Owners, or for any other reasonable purpose. Any First Mortgagee of a Lot may attend or designate a representative to attend the meetings of the Association. G. Quorum. At any meeting of the Owners, attendance by a majority of the Owners entitled to vote on a matter shall constitute a quorum. Once an Owner is present or represented at a meeting, other than to object to holding the meeting or transacting business, the Owner is deemed to be present for purposes of a quorum for the remainder of the meeting and for any adjournment of that meeting. If a quorum exists, action on a matter is approved if the votes cast favoring the action exceed the votes cast opposing the action, unless the question is one upon which a different vote is required by express provision of law, the Declaration, the Articles of Incorporation or these Bylaws. H. Manner of Acting; Proxies. An Owner may vote either in person or by proxy, executed in writing by the Owner or by his or her duly authorized attomey-in-fact. All proxy appointment forms shall be filed with the secretary of the Association before or at the commencement of the meeting for which the proxy is to be effective. No proxy appointment may be effectively revoked until notice in'writing of such revocation has been given by the Owner appointing the proxy to the secretary of the Association or to the person presiding over the meeting of the Association. A proxy is void if it is not dated or purports to be revocable without notice. Unless stated otherwise in the proxy, a proxy terminates eleven months after its date of issuance. I. Participation by Conference Telephone. . Owners may participate in a meeting of the Owners by means of a conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time. Participation at a meeting by such means shall constitute presence in person at the meeting. J. Waiver of Notice. • Notice of the time, place and/or purpose of any meeting may be waived in writing (either before or after such meeting) and will be waived by any Owner by his or her attendance thereat in person or by proxy, unless the Owner at the beginning of the meeting objects to holding the meeting or transacting business at the meeting. Any . Owner so waiving shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given. 4 • K. Action by Owners Without a Meeting. Any action which is permitted or required to be taken at a meeting of the Association may be taken without a meeting if all Owners entitled to vote on such action consent to the action in writing. Any action taken by unanimous written consent of the Owners shall be effective when all Owners have executed such consent, unless the consent specifies a later effective date. III. BOARD OF DIRECTORS A. General Powers. The affairs of the Association shall be governed by a Board of Directors (the "Board"). B. Number of Directors.The Board shall be composed of one or more members, to be determined in the reasonable discretion of the Association. The Declarant or its representative initially shall constitute the Board and be fully authorized to exercise all of the powers of the Association until the Transition Date as defined in the Declaration. C. Number, Tenure and Qualification. The number of directors may be increased or decreased from time to time by amendment to or in the manner provided by these Bylaws. No decrease, however, shall have the effect of shortening the term of an incumbent director unless that director resigns or is removed in accordance with the provisions of these Bylaws. Unless removed in accordance with these Bylaws, each director shall hold office until the next annual meeting of the Owners of the Association and until a qualified successor is elected. Each member of the Board must be an Owner. D. Annual and other Regular Meetings. An annual meeting of the Board shall be held, without notice, immediately after and at the same place as the annual meeting of Owners. The Board may specify by resolution the time and place, either within or without the State of Washington, for holding any other regular meetings of the Board. E. Special Meetings. Special meetings of the Board may be called by any director. Notice of special meetings of the Board stating the date, time and place shall be given at least three (3) days prior to the date set for such meeting by the person or persons authorized to call such meeting, or by the secretary at the direction of the person or persons authorized to call such meeting. The notice may be oral or written. Oral notice may be communicated in person or by telephone, wire or wireless equipment. Oral notice is effective when communicated. Written notice may be transmitted by mail, private carrier or personal delivery; telegraph or teletype; or telephone, wire, or wireless equipment which transmits a facsimile of the notice. Written notice is effective upon dispatch if such notice is sent to the director's address, telephone number, or other number appearing on the records of the Association. Any director may waive notice of any meeting at any time. Whenever any notice is required to be given to any director of Board pursuant to applicable law, a waiver of such notice in writing signed by the director entitled to notice, shall be deemed equivalent to the 5 giving of notice. F. Quorum. A majority of the number of directors of the Board shall constitute a quorum for the transaction of any business at any meeting of Board. G. Manner of.Acting. If a quorum is present when a vote is taken, the affirmative vote of a majority of directors present is the act of the Board, unless the question is one upon which a different vote is required by express provision of law, the Declaration, the Articles of Organization or these Bylaws. H. Participation by Conference Telephone. Directors may participate in a meeting of the Board by means of a conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time. Participation at a meeting by such means shall constitute presence in person at the meeting. I. Presumption of Assent. A director who is present at a meeting of the Board at which action is taken shall be presumed to have assented to the action taken unless such director's dissent is entered in the minutes of the meeting or unless the director files his written dissent to the action with secretary of the meeting before adjournment or forwards his dissent by registered mail to the secretary of the Association immediately after adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of the action. J. Action by Board Without a Meeting. Any action permitted or required to be taken at a meeting of the Board may be taken without a meeting if all directors entitled to vote on such action consent to the action in writing. Any action taken by unanimous written consent of the Board is effective when all of the directors have executed such consent, unless the consent specifies a later effective date. K. Resignation. Any director may resign at any time by delivering written notice to the president or the secretary of the Association, or by giving oral notice at any meeting of the directors or Owners. Resignation shall take effect at the time specified in the Notice of Resignation, or if the time is not specified, upon delivery of the notice. Unless otherwise specified in the notice, the acceptance of the resignation is not required to make the resignation effective. L. Removal. At a meeting of the members called expressly for that purpose, any director or the entire Board may be removed from office, with or without cause, by a majority vote of the Owners entitled to vote. If the entire Board or any one or more directors is removed, new directors may be elected at this same meeting. M. Vacancies. A vacancy on the Board may occur by the resignation, removal or death of an existing director, or as a result of an increase in the number of directors as provided in these Bylaws. Any vacancy occurring in the Board may be filled by the majority vote of Owners entitled to vote. A director elected to fill a vacancy shall be elected for the unexpired term of his predecessor, except that a vacancy to be filled by 6 reason of an increase in the number of directors shall be filled for a term of office continuing only until the next election of directors. N. Compensation. No director shall receive compensation for any service heor she may render to the Association as a director. IV. POWERS OF DIRECTORS The Board, on behalf of and acting for the Association and for the benefit of the Property and the Owners, shall have all the powers and authority permitted to the Board under the Declaration, including but not limited to the following powers: A. Rules and Regulations. Adopt and publish rules and regulations governing the use of Common Areas and the personal conduct of the members and their guests, and establish penalties for any infractions. B. 'Assessments. Establish and collect regular assessments-and/or special assessments to defray expenses attributable to carry out its duties and to maintain an adequate reserve fund for the maintenance, repair and replacement of those portions of the Common Areas which must be maintained, repaired or replaced on a periodic basis. C. Service. Obtain the services of Persons required to properly manage the Property to the extent deemed advisable by the Board including legal and accounting services, property management services, and any personnel as the Board shall determine are necessary or proper for the operation and maintenance of the Common Areas. D. Utilities. Obtain water, sewer, garbage collection, electrical, telephone, gas and any other necessary utility service, including utility easements required for the Common Areas. E. Insurance Obtain and pay for policies of insurance or bonds providing casualty and liability coverage for the Common Areas and for fidelity of Association officers and other employees. F. Maintenance and Repair of Common Areas. Pay for the costs of maintenance, repair and improvement work for the Common Areas and any improvements located therein. Pay for such furnishings and equipment for the Common Areas as the Board shall determine are necessary and proper to keep 7 the Property in a good, clean, attractive, sanitary and safe condition and in full compliance with applicable governmental laws, rules and regulations and the provisions of the Declaration. G. Enforce Declaration. Enforce the applicable provisions of the Declaration for the management and control of the Property. H. Contracts. ` Contract for materials and/or services which it deems necessary to carry out its responsibilities as provided in these Bylaws. I. Financial Statements. Prepare or cause to be prepared at least annually, a balance sheet and an operating income/expense statement for the Association, copies of which shall be distributed to each Owner within thirty (30) days after the accounting date. The operating statement shall include a schedule of Assessments received and receivable, identified by the name of the Owners so assessed. The Board may require that an external audit be prepared annually by an independent public accountant within ninety (90) days following the end of each fiscal year. J. Payment for Materials, Services, Etc. Pay for any materials, supplies, labor, services, maintenance, repairs, structural alterations, insurance, taxes or assessments which the Board is required to secure by law, or which in its opinion are necessary or proper for the operation of the Common Areas or for the enforcement of the Declaration. K. Non-Profit. t Nothing herein contained shall be construed to give the Board authority to conduct an active business for profit on behalf of the Association. L. Exercise Powers of Association. Subject to the provisions of the Declaration, the Board shall exercise for the Association all powers, duties and authority vested in or delegated to the Association and not reserved to the membership by other provisions of these Bylaws, the Articles of Organization or the Declaration. M. Adopt Amendments. The Board may adopt additional bylaws and rules and regulations governing the Association and the Unit Owners. In the event of conflict between the Declaration and these Bylaws or any additional bylaws or rules and regulations adopted by the Board, the provisions of the Declaration shall prevail. 8 V. OFFICERS A. Number. The Association shall have a president, a secretary and a treasurer who shall be members of the Board (except that, prior to the Transition Date, any individual who is designated by Declarant to serve as an officer may do so), and such other officers as may be deemed necessary or appropriate by the Board. Any two or more offices may be held by the same person. B. Election and Term of Office. The officers of the Association shall be elected by the Board following each annual meeting of the Owners. The officers shall be elected annually and each shall hold office for one (1) year unless he or she shall sooner resign or be removed, or otherwise be disqualified to serve. C. Resignation. Any officer may resign at any time by delivering written notice to the Board, the president, or the secretary, or by giving oral notice at any meeting of the Board. The resignation shall take effect at the time specified, or if the time is not specified, upon delivery of the notice. Unless otherwise specified, acceptance of the resignation is not. required to make the resignation effective. D. Removal. Any officer may be removed by the Board with or without cause. E. Vacancies. A vacancy in any office may be filled by appointment by the Board. The officer appointed to such vacancy shall serve for the remainder of the term of the officer he or she replaces. F. President. The president is the principal executive officer of the Association and, subject to the control of the Board, shall generally supervise and control the business and affairs of the Association. When present, the president shall preside at all meetings of the Owners and at all meetings of the Board. The president may sign deeds, mortgages, bonds, contracts, or other instruments which the Board has authorized to be executed, except in cases where the signing and execution shall be expressly delegated by the Board or by these Bylaws to some other officer or agent of the Association or shall be required by law to be otherwise signed or executed. In general, the president shall perform all duties incident to the office of president and such other duties as may be prescribed by resolution of the Board from time to time. 9 G. Secretary. The secretary shall keep the minutes of the proceedings of the members and the Board; shall give notices in accordance with the provisions of these Bylaws and as required by law; shall be custodian of the Association records; shall keep a record of the names and addresses of all Owners; may sign with the president, deeds, mortgages, bonds, contracts, or other instruments which shall have been authorized by resolution of the Board; in the absence of the president or in the event of his death, disability or refusal to act, may perform the duties of the president subject to all the restrictions upon the president; and in general perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to the secretary by resolution of the Board. H Treasurer. The treasurer shall have charge and custody and be responsible for keeping correct and complete books and records of accounts for all funds and securities of the Association; receive and give receipts for monies due and payable to the Association from any source whatsoever; deposit all such monies in the name of the Association in the banks, trust companies or other depositories as shall be selected in accordance with the provisions of these Bylaws; and in general perform all of the duties incident to the office of treasurer and such other duties as from time to time may be assigned to the treasurer by resolution of the Board. VI. CONTRACTS, LOANS, CHECKS, DEPOSITS A. Contracts. • The Board may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument in the name and on behalf of the Association, which authorization may be general or confined to specific instances. B. Loans. Unless authorized by a resolution of the Board, no loans shall be contracted on behalf of the Association and no evidences of indebtedness shall be issued in its name. C. Checks, Drafts, Etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Association shall be signed by the officer or officers, or agent or agents of the Association in the manner as shall from time to time be prescribed by resolution of the Board. D. Deposits. All funds of the Association not otherwise employed shall be deposited from time to time to the credit of the Association in the banks, trust companies or other depositories as the Board mayselect. • p 10 E. Loans to Directors and Officers. No loans shall be made by the Association to any officer or to any director. VII. ASSESSMENTS As more fully provided in the Declaration, each Owner is obligated to pay to the Association annual and special assessments which are secured by. a continuing lien upon the Lot against which the assessments are allocated. Any assessments not paid when due shall be delinquent. If payment is not made for a period of more than ten (10) days after the date when due, the assessment shall bear interest from the date of delinquency at the rate of twelve percent (12%) percent per annum. The Association may foreclose the lien for delinquent assessments against a Lot in like manner as the foreclosure of a mortgage of real property, and interest, costs and reasonable attorney's fees of the action shall be added to the amount of the delinquent assessments. No Owner may waive or otherwise escape liability for the assessments provided in these Bylaws and in the Declaration by non use of the Common Areas or abandonment of his Lot. VIII. RULES OF PROCEDURE The rules of procedure at meetings of the Board, meetings of the Owners, and committee meetings shall be the rules contained in Roberts' Rules of Order on Parliamentary Procedure, as amended, so far as applicable and when not inconsistent with these Bylaws, the Articles of Organization, the Declaration or any resolution of the Board. IX. SEAL This Association need not have a corporate seal. If the directors adopt a corporate seal, the seal of the corporation shall be circular in form and consist of the name of the Association, the state and year of incorporation, and the words "Corporate Seal." X. INDEMNIFICATION Each Board member and Declarant shall be indemnified by the. Association against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed, in connection with any proceeding to which such party may be a party, or in which such party may become involved, by reason of holding or having held such position, or any settlement thereof, whether or not such party holds such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by insurance and except in such cases wherein such Board member or Declarant is adjudged guilty of willful misfeasance in the performance of his or her duties; provided, that in the event of a settlement, the indemnification shall apply • only when the Board approves such settlement and reimbursement as being for the best interests of the Association. • 11 ' I XI. BOOKS AND RECORDS • The Board shall cause to be kept complete, detailed and accurate books and records of the receipts and expenditures (if any) of the Association, in a form that complies with generally accepted accounting principles. The books and records, authorizations for payment of expenditures, and all contracts, documents, papers and other records of the Association shall be available for examination by the Owners, any Mortgagees, and the agents or attorneys of either of them, during normal business hours and at any other reasonable time or times. XII. FISCAL YEAR The fiscal year of the Association shall be the calendar year, except that the first fiscal year shall begin on the date of recordation of the Declaration. XIII. COPIES OF RESOLUTIONS Any person dealing with the Association may rely upon a copy of any of the records of the proceedings, resolutions or votes of the Board when such records are certified by the president or the secretary. XIV. LIMITATION ON DISTRIBUTION OF FUNDS Subject to the applicable law, the funds of the Association may be distributed only for the purposes of the Association as described in the Articles of Organization and in the Declaration. • XV. AMENDMENTS TO BYLAWS • Subject to the provisions of the Declaration, these Bylaws may be altered, amended or repealed, and new Bylaws may be adopted by the Board or by the Owners. Any bylaw adopted, amended or repealed by the directors may be repealed, amended or reinstated by the Owners at the next meeting of members following such action, without further notice than this Bylaw. [Remainder of Page Left Blank— Signature on Following Page] 12 1 • • The undersigned Declarant, being the sole Owner of the Lots and the sole Member of the Association as of the date set forth below, hereby adopts these Bylaws as the initial Bylaws of the Parklane Court Homeowners Association, and hereby declares and certifies that these Bylaws are the Bylaws of Parklane Court Homeowners Association as of such date. DATED: March / , 2007. DECLARANT: SPECIALIZED HOMES, L.L.C., a Washington limited liability company By: SH Real Estate, Inc., sole member • By: • I"" Niemann, President 3/1/07 4:27 PM 0 • 13