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HomeMy WebLinkAboutRC 20020228001892 1 [ Return Address: AFTER RECORDING RETURN TO: 1 Nom , CITY OF RENTON CITY CLERK'S OFFICE 1055 South Grady Way RENTON, WA 98055-2189 20020228001892 CITY OF RENTON DPC PAGE 003 OF 036 44.00 02/28/2002 33:38 KING COUNTY, Wq Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet(RCW 65.04) Document Title(s) 1. Declarations, Covenants,Easements and Restrictions for Morgan Place Reference Number(s)of Documents assigned or released: O Additional reference numbers are on page Grantor(s) (Last name first,then first name and initials) C rn CO 1. Morgan Court Investors,LLC. c=> 2. 0 Additional names on page of document. N Grantee(s) (Last name first,then first name and initials) cv 1. CITY OF RENTON 0 tv 0 Additional names on page of document. Legal description(abbreviated: i.e.lot,block,plat or section,township,range) Parcel B West Y2 SE 1/4 SE 'A SE 'A Sec 10 Twn 23 N Rge 5E Parcel C East Y2 SE 1/4 SE 1/4 SE 1/4 Sec 10 Twn 23 N Rge 5E Parcel D Tracts 1 &4 Black Loam Five Acre Tracts Parcel E The West 120 feet of the West 'h of Tract 1 Black Loam Five Acre Tracts ❑ Additional legal on page C of document. Assessor's Property Tax Parcel/Account Number: Joa3us .. J / ux..3�is- go3i - y ° 6 O Assessor Tax#not yet assigned c g 47/o • U OO j'- G o` Prop.Mgmt Initials (; o/ 0 / + k L + * I i y . AFTER RECORDING RETURN TO: CITY OF RENTON 1055 S. Grady Way 6th Floor Renton,Washington 98055 CV ram CIO DECLARATIONS OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR MORGAN PLACE w 0 +cv DECLARANT: MORGAN COURT INVESTORS, LLC. 1. 1 4 LAST UPDATED 02/11/02 TABLE OF CONTENTS Article 1 Definitions 4 Article 2 Property Subject To This Declaration - 6 2.1 Property Hereby Subjected To This Declaration 6 2.2 Addition of Other Property 6 2.3 Notice of Addition of Other Property 6 Article 3 Association Membership and Voting Rights 7 3.01 Organization 7 3.1 Membership 7 3.2 Voting 7 Article 4 Assessments 8 4.1 Purpose of Assessment 8 4.2 Initial Assessments 9 C„ 4.3 Date of Commencement of Annual Assessments 9 en 4.4 Annual Assessments 9 co .- 4.5 Computation 9 a 4.6 Specific Assessments 10 c� p co 4.7 Special Assessments 10 cv 4.8 Continuing Liability 10 N 4.9 Application 11 Q 4.10 Certificates 11 cv p 4.11 Effect of Nonpayment of Assessments: Remedies of the Association 11 N 4.12 Creation of the Lien 11 4.13 Budget Deficits During Declarant Control 12 Article 5 Maintenance 12 5.1 Association's Powers and Responsibility 12 5.2 Owner's Responsibility 13 5.3 Conveyance of Common Property by Declarant to Association 13 Article 6 Use Restrictions and Rules 13 6.1 General 13 6.2 Residential Use 14 6.3 Architectural Review Committee 14 6.4 Architectural Standards 14 6.5 Siding, Roofs and Windows 15 6.6 Landscaping 16 6.7 Fences 16 6.8 Lighting 16 6.9 Driveways-Parking 16 1 6.10 Vehicles 17 6.11 Signs 17 6.12 Antennas 17 6.13 Garbage Cans, Woodpiles, etc. 17 6.14 Leasing 18 6.15 Occupants Bound 18 6.16 Animals and Pets 18 6.17 Nuisance 18 6.18 Unsightly or Unkempt Conditions 19 6.19 Subdivision of Lot 19 6.20 Guns 19 6.21 Mailboxes 19 6.22 Exterior Security Devices 19 6.23 Drainage-Water Valves 19 Article 7 Insurance and Casually Losses 20 7.1 Insurance on Common Property 20 cc' 7.2 Liability Insurance 20 00 7.3 Policy Provisions 20 0 7.4 Premiums 21 trti 7.5 Damages and Destruction-Insurance by Association 21 c-4 7.6 Damage and Destruction-Insured by Owners 22 tv Article 8 Condemnation 22 N NArticle 9 Mortgagee Provisions 23 9.1 Notices of Action 23 9.2 No Priority 23 9.3 Notice to Association 23 9.4 Applicability of Article 9 23 9.5 Amendments By Board 24 Article 10 Easements 24 10.1 Easements for Use and Enjoyment 24 10.2 Easements for Utilities 25 ' 10.3 Easement for Entry 25 10.4 Easement for Maintenance 25 10.5 Easement for Entry Features 26 10.6 Construction and Sale Period Easement 26 Article 11 Development Period 26 11.1 Development Period 26 11.2 Amendment by Declarant 27 2 Article 12 General Provisions 27 12.1 Enforcement 27 12.2 Duration 27 12.3 Amendment 28 12.4 Partition 28 12.5 Gender and Grammar 28 12.6 Sever ability 28 12.7 Captions 28 12.8 Perpetuities 29 12.9 Indemnification 29 12.10 Books and Records 29 12.11 Financial Review 30 12.12 Notice of Sale, Lease or Acquisition 30 12.13 Agreements 30 12.14 Implied Rights 30 12.15 Variances 30 ry 12.16 Litigation 30 CO 0 cv Exhibit Name 0 CV A Description of Common Property N B Map of Common Property C Real Property Submitted -Community • DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR MORGAN PLACE THIS DECLARATION is made on the date hereinafter set forth by MORGAN COURT INVESTORS, LLC., a Washington Limited Liability Company(hereinafter sometimes called "Declarant"). WITNESSETH WHEREAS, Declarant is the owner of the real property described in Article 2, Section 2.1 of this Declaration; and WHEREAS, Declarant desires to subject the real property described in Article 2, Section 2.1 hereof to the provisions of this Declaration to create a residential community of single-family housing to the provisions of this Declaration, NOW, THEREFORE, Declarant hereby declares that the real property described in Article 2, Section 2.1 of this Declaration, including the improvements constructed or to be constructed thereon, is C„ hereby subjected to the provisions of this Declaration and shall be held, sold, transferred, conveyed, cr' used, occupied, and mortgaged or otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments, and liens, hereinafter set forth, which are for the purpose of protecting the value and desirability of, and which shall run with the title to, the real property hereby or cc, hereafter made subject hereto, and shall be binding on all persons having any right, title, or interest in all cv or any portion of the real property now or hereafter made subject hereto, their respective heirs, legal o representatives, successors, successors-in-title, and assigns and shall inure to the benefit of each and every owner of all or any portion thereof. c Article 1 Definitions The following words, when used in this Declaration or in any Supplementary Declaration shall have the following meanings: (a) "Association" shall mean Morgan Place Homeowners Association, a Washington nonprofit corporation, its successors and assigns. (b) "Board of Directors" or "Board" of the Association shall be the appointed or elected body, as applicable, having its normal meaning under Washington law. (c) "Bylaws"shall refer to the Bylaws of Morgan Place Homeowners Association. (d) "Common Property" shall mean the real and personal property and easements and other interests therein, together with the facilities and improvements located thereon, now or hereafter owned by the Association for the common use and enjoyment of the Owners. The Common Property is described on Exhibit A and delineated on Exhibit B. (e) "Community" shall mean and refer to that certain real property and interests therein described in Exhibit C, attached hereto. (f) "Community-Wide Standard" shall mean the standard of conduct, maintenance, or other activity generally prevailing in the Community. Such standard may be more 4 specifically determined by the Board of Directors of the Association. Such determination, however, must be consistent with the Community- Wide Standard originally established by the Declarant. (g) "Declarant" shall mean and refer to Morgan Court Investors, LLC, and its successors- in-title, provided any such successor-in-title acquires all or any portion of the real property described in Exhibit C attached hereto, and provided further, in conjunction with the conveyance to any such successor-in-title, such successor-in-title is designated as the "Declarant" by the Declarant hereunder in a separate instrument to be recorded at the time of such conveyance; and provided further, upon such designation of such successor Declarant all rights of the former Declarant in and to such status as "Declarant" hereunder shall cease, it being understood that as to all of the property described in Exhibit C, attached hereto which is now or hereafter subjected to this Declaration, there shall be only one (1)"Declarant" at anyone point in time. (h) "Development Period"shall mean the definition as set forth in Article 11, Section 11.1. fv CT% (i) "Lot" shall mean any plot of land within the Community, whether or not improvements m are constructed thereon, which constitutes or will constitute, after the construction of o improvements, a single-family dwelling site as shown on a plat recorded in the land records of King County where the Community is located. The ownership of each Lot c-, shall include, and there shall pass with each Lot as an appurtenance thereto, whether C'4 or not separately described, all of the right and interest of an Owner in the Common 0 Property, which shall include, without limitation, membership in the Association. cv ;�„ Q) "Mortgagee"shall mean the holder of a Mortgage. (k) "Occupant" shall mean any Person occupying all or any portion of a Residence located within a Lot, regardless of whether such Person is a tenant or the Owner of a Lot. (I) "Plat Map" shall mean and refer to the plat maps recorded in conjunction with this Declaration, recorded on c.7 a V , 2002, Auditor's File Number - aDe a a i;'e)o/8 7' records of King County,Washington. (m) "Owner" shall mean and refer to the record owner, whether one or more Persons, of the fee simple title to any Lot located within the Community, excluding, however, any Person holding such interest merely as security for the performance or satisfaction of any obligation. (n) "Person" means any natural person, as well as a corporation,joint venture, partnership (general or limited), association, limited liability company, trust, or other legal entity. 5 I (o) "Residence" shall mean and refer to any structure located on a Lot, which structure is designed and permitted for use and occupancy by a single-family. (p) "Supplemental Declaration" means an amendment or supplement to this Declaration which subject's additional property to this Declaration or imposes, expressly or by reference, additional restrictions and obligations on the Community described therein, or both. (q) "Total Association Vote" means all of the votes attributable to members of the Association (including votes of Declarant), and the consent of Declarant so long as Declarant owns any Lots in the Community. Article 2 Property Subject to this Declaration 2.1 Property Hereby Subjected to this Declaration The real property which is, by the recording of this Declaration, subject to the covenants and csn restrictions hereafter set forth and which, by virtue of the recording of this Declaration, shall be held, transferred, sold, conveyed, used, occupied and mortgaged or otherwise encumbered subject to this Declaration is the Community described in Exhibit C, attached hereto and by reference made a part Cta hereof 2.2 Addition of Other Property. Declarant may at any time during the pendency of this Declaration add all or a portion of any real C•••1 property now or hereinafter owned by Declarant adjacent to the Community, and upon recording of a N notice of addition of real property containing at least the provisions set forth in Section 2.3 below, the provisions of this Declaration shall apply to the added real property in the same manner as if it were originally covered by this Declaration. Thereafter, to the extent that this Declaration is made applicable thereto, the rights, powers, and responsibilities of Declarant and the Owners of Lots within the added real property shall be the same as in the case of the Community. The Association shall not have the power to add all or a portion of any real property adjacent to the Community. 2.3 Notice of Addition of Other Property. The notice of additional real property by Declarant referred to in Section 2.2 above shall contain at least the following provisions: a) A reference to this Declaration stating the date of recording and the recording number under which it is recorded; b) A statement that the provisions of this Declaration shall apply to such added real property; and c) A legal description of such added real property. 6 1 Article 3 Association Membership and Voting Rights 3.01 Organization. The Declarant shall organize an Association of all the Owners of Lots. Such Association, its successors and assigns, shall be organized under the name Morgan Place Homeowners Association or a name similar thereto and shall have property, powers and obligations as set forth in these covenants for the benefits of the Properties. The Declarant shall organize the Association as a non-profit corporation under the general nonprofit corporations laws of the State of Washington. The Articles of Incorporation of the Association shall provide for its perpetual existence, but in the event the Association is any time dissolved, whether inadvertently or deliberately, it shall automatically be succeeded by an unincorporated Association of the same name. In that event, all of the property, powers and obligations of the incorporated Association existing immediately prior to its dissolution shall thereupon automatically vest in the successor unincorporated association, and such vesting shall thereafter be confirmed and evidenced by appropriate conveyances and assignments by the incorporated Association. To the greatest extent possible, and successor unincorporated Association shall be governed by the Articles of Incorporation (V and the Bylaws of the Association, as if they had been made to constitute the governing documents of the CO unincorporated Association. The Articles of Incorporation and the Bylaws of the Association shall be o deemed covenants running with ownership of the Lots and shall be binding upon Owners as if verbatim c recited herein. co 3.1 Membership. cv C=. 3.1.1 Qualification. Each Owner of a Lot in the Community (including the Declarant) shall automatically be a member of the Association and shall be entitled to one (1) membership for each CD Lot so owned. Each Owner shall be subject to the Association's Articles of Incorporation, Bylaws and any `" and all rules and regulations as may from time to time be adopted by the Board of Directors of the Association (the"Board of Directors"). Ownership of a Lot shall be the sole qualification for membership in the Association. 3.1.2 Transfer 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, pledged, transferred, 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 of membership in the Association shall be void. Any transfer of title to a Lot shall operate automatically to transfer the membership in the Association appurtenant thereto to the new Owner thereof; provided, however, that the granting of a security interest in a Lot or portion thereof shall not be deemed a transfer of title and shall not operate to transfer the membership in the Association. 3 .2 Voting 3.2.1 Classes of Voting Membership. During the Development Period, the Association shall have two(2)classes of voting membership: 7 v f k , (a) Class A. The Class A members shall be all of the Owners except the Declarant, and the Class A members shall be entitled to one (1)vote for each Lot owned. (b) Class B. The Class B member shall be the Declarant, who shall be entitled to three (3)votes for each Lot owned. The Class B membership shall cease, and be converted to Class A membership, upon the happening of the first of the following events: (A)when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership; or (B)five (5) years after the date of recording of the Declaration. In determining whether any given proposition shall have been approved by the membership during the Development Period, the total number of Class A and Class B votes shall be combined to arrive at the total voting power of all of the Owners (including the Declarant), and the appropriate percentage shall be applied against that combined number. 3.2.2 Number of Votes after the Development Period. Following the Development Period, the total voting power of all Owners (including the Declarant)shall equal the number of Lots at any given time, and the total number of votes available to an Owner of a particular Lot shall be CNN one(1)vote. ert CCS C7-4 3.2.3 Lots Owned by Multiple Persons. If only one of the multiple Persons `=' owning a particular Lot is present at a meeting of the Association, such Person is entitled to cast the vote va allocated to said Lot. If, however, more than one of the multiple Persons owning a particular Lot are s present at a meeting, the vote allocated to said Lot may be cast only in accordance with the agreement of the majority of the multiple Persons owning said Lot, which agreement will be presumed if anyone of the cv multiple Persons casts the vote allocated to the Lot without protest being made promptly to the President C=) of the Association (or other officer presiding over the meeting) by the other Persons owning the Lot. In the event such protest is made, the vote cast shall be disregarded, and the multiple Persons owning the Lot shall lose their right to vote on the matter in question. 3.2.4 Suspension of Voting Right. In the event that any Owner shall be delinquent in the payment of any assessment or otherwise in default of the performance of any of the terms of the Declaration for a period of thirty (30) days or more, the Owner's right to vote shall be suspended and shall remain so suspended until the default is remedied. Article 4 Assessments 4.1 Purpose of Assessment. The assessments provided for herein shall be used for the general purposes of promoting the recreation, health, safety, welfare, common benefit, and enjoyment of-the Owners and occupants of Lots, including maintaining and protecting the Common Property and personal property owned by the Association including, without limitation, the streets, private storm water facilities, utility and other easements, private access roadways, payment of real property ad valorem taxes and payment of any assessment for 8 t Community street lights and other utilities, establishment and funding of a Reserve Account and all as may be more specifically authorized from time to time by the Board of Directors. 4.2 Initial Assessments. Upon conveyance of a Lot to any Person who has purchased the Lot for any purpose, the Association, or Declarant, for the benefit of the Association, shall collect an initial assessment equal to ONE HUNDRED FIFTY AND NO/100 Dollars ($150.00)per lot. 4.2.1 Special Reserve Account. Declarant will provide an Assignment of Funds to the City of Renton in Associations name, to be held as bond for a wetland monitoring. If the Association does not provide wetland monitoring as required by Section 5.1.5, the City of Renton will use the funds to perform the required monitoring. 4.3 Date of Commencement of Annual Assessments. The annual assessments provided for below shall commence as to a Lot on the first day of the month following the conveyance of such Lot to a Person who has not purchased such Lot for the purpose of e= construction of a residence and resale of such Lot and residence. Assessments shall be due and payable aQ in a manner and on a schedule as the Board of Directors may provide. Lots, which have not been so conveyed, shall not be subject to the annual assessment. The first annual assessment shall be adjusted W according to the number of months then remaining in that fiscal year. cv ' �., 4.4 Annual Assessments. Annual assessments shall be levied equally on all Lots and shall be paid in such manner and on such dates as may be fixed by the Board of Directors, which may include, without limitation, acceleration, • o upon thirty(30)days'written notice. 4. 5 Computation. 4.5.1 Balance Sheet. The Board of Directors shall prepare, or cause to be prepared, for any calendar year in which the Association levies or collects assessments, and shall distribute to all Owners at the annual meeting a balance sheet and operating statement (income and expense) of the Association, which shall contain a schedule of assessments received and receivable, identified: by Lot number and the name of the Owner so assessed. The Board of Directors shall cause detailed and accurate records of the receipts and expenditures of the Association to be kept specifying and itemizing all expenditures. Such records shall be available to all Owners upon written notice at a convenient place during regularly scheduled business hours. 4.5.2 Succeeding Calendar Year. It shall be the duty of the Board of Directors to prepare a budget covering the estimated costs of operating the Association during the coming year, which shall include: a capital contribution or reserve in accordance with a capital budget for the Community separately prepared. The Board of Directors shall cause the budget and the annual assessments to be levied against each Lot for the following year to be delivered to each member at least thirty(30)days prior to the end of the current calendar year. The budget and the annual assessment shall become effective unless disapproved at the Annual Meeting by a Majority of the Total Association Vote. 9 Notwithstanding the foregoing, however, in the event the membership disapproves the proposed budget or the Board of Directors fails for any reason so to deteml ine the budget for the succeeding year, then and until such time as a budget shall have been detemlined, as provided herein, the budget and annual assessments in effect for the then current year shall continue for the succeeding year. 4.6 Specific Assessments. The Board of Directors shall have the power to specifically assess pursuant to this Section as, in its discretion, it shall deem appropriate. Failure of the Board of Directors to exercise its authority under this Section shall not be grounds for any action against the Association or the Board of Directors and shall not constitute a waiver of the Board of Director's right to exercise its authority under this Section in the future with respect to any expenses, including an expense for which the Board of Directors has not previously exercised its authority under this Section. Fines levied pursuant to this Declaration and the costs of maintenance performed by the Association, which the Owner is responsible for under this Declaration, shall be specific assessments. The Board of Directors may also specifically assess Owners for the following Association expenses (except for expenses incurred for maintenance and repair of items which are the maintenance responsibility of the Association as provided herein): fV CL1 (a) Expenses of the Association which benefit less than all of the Lots may be specifically assessed equitably among all of the Lots which are benefited according to the benefit m received; and, cr (b) Expenses of the Association which benefit all Lots, but which do not provide an equal 0 benefit to all Lots, may be assessed equitably among all Lots according to the benefit received. C 0 0 4. 7 Special Assessments. In addition to the other assessments authorized herein, the Association may levy special assessments from time to time if approved at a meeting by two-thirds (2/3) of the Total Association Vote. Special assessments shall be paid as determined by the Board of Directors, and the Board of Directors may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed. 4. 8 Continuing Liability. No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration, but not limitation, abandonment of the Lot. No diminution or abatement of any assessment shall be claimed or allowed by reason of any alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or the Bylaws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority, the obligation to pay assessments being a separate and independent covenant on the part of each Owner. 10 4. 9 Application. All payments shall be applied first to costs, then to late charges, then to interest and then to delinquent assessments. 4.10 Certificates. The Association shall, within five (5) days after receiving a written request therefore and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot shall be binding upon the Association as of the date of issuance. 4.11 Effect of Nonpayment of Assessments: Remedies of the Association. Any assessments or installments thereof, which are not paid when due, shall be delinquent. All assessments shall be the personal obligation of the Person who was the Owner of such Lot at the time the assessment(s) fell due. Each Owner shall be personally liable for the portion of each assessment coming due while the Owner of a Lot, and each grantee of an Owner shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance. Any assessment or c1 installment thereof delinquent for a period of more than thirty (30) days shall incur a late charge and o interest in an amount as the Board of Directors may from time to time determine. The Association shall `" cause a notice of delinquency to be given to any Owner who has not paid within thirty (30) days following c.� the due date. If the assessment is not paid within fifteen (15)days after such delinquency notice, a lien, as o herein provided, shall attach to such Owner's Lot. In the event that the assessment remains unpaid thirty (30) days after the delinquency notice, the Association may, as the Board of Directors shall determine, CNI C=4 institute suit to collect such amounts and/or to foreclose its lien. sv 4.12 Creation of the Lien. Each Owner of any Lot, by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, covenants and agrees to pay to the Association: (a) the initial assessment; (b) annual assessments; (c) special assessments; and (d) specific assessments against any particular Lot which are established pursuant to the terms of this Declaration, including, but not limited, to, reasonable fines as may be imposed in accordance with the terms of this Declaration. All such assessments, together with late charges and interest, costs, including, without limitation, reasonable attorney's fees actually incurred, shall be a charge on the Lot and shall be a continuing lien upon the Lot against which each assessment is-made. Such lien shall be superior to all other liens and encumbrances on such Lot, except for (a) liens for ad valorem taxes; or (b) liens for all sums unpaid on a first Mortgage or on any Mortgage to Declarant duly recorded in the land records of King County and all amounts advanced pursuant to such Mortgage and secured thereby in accordance with the terms of such instrument. All other Persons acquiring liens or encumbrances on any Lot after this Declaration shall have been recorded in such records shall be deemed to consent that such liens or encumbrances shall be inferior to future liens for assessments, as provided herein, whether or not prior consent is specifically set forth in the instruments creating such liens or encumbrances. The lien provided for in this Article shall be in favor of the Association and shall be for the benefit of all other Owners. The Association, acting on behalf of the • 11 Owners, shall have the power to bid on the Lot at any foreclosure sale or to acquire, hold, lease, mortgage, or convey the same. • 4.13 Budget Deficits During Declarant Control. 4.13.1 For so long as the Declarant has the authority to appoint the directors and officers of the Association, Declarant may: (i) advance funds to the Association sufficient to satisfy the deficit, if any, between the actual operating expenses of the Association and the sum of the annual, special and specific assessments collected by the Association in any fiscal year, and such advances shall be evidenced by promissory notes from the Association in favor of the Declarant; and (ii) may advance funds to establish the association's initial capital reserves and any other Special Reserve Account, and such advances shall be evidenced by promissory notes from the Association in favor of the Declarant; and/or (iii) cause the Association to borrow such amount from a commercial lending institution at the then prevailing rates for such loan in the local area of the Community. The Declarant in its sole discretion may guarantee repayment of such loan, if required by the lending institution, but no Mortgage secured by the Common Property or any of the improvements maintained by the Association shall be given in connection with such loan. e� Article 5 __ Maintenance 5.1 Association's Powers and Responsibility. 5.1.1 Common Property. The Association shall maintain and keep in good repair the c" Common Property. This maintenance shall include, without limitation, maintenance, repair, and cv o replacement of all streets, easements, systems, improvements and landscaping situated on the Common c.,, Property. The Association shall also maintain: (a) all entry features for the Community including fencing, entry gates and entry signs and pay the expenses for water and electricity, if any, provided to all such • entry features; (b) streetscapes located at other street intersections within the Community; (c) landscaping originally installed by the Declarant in the Common Property; (d) all Private Roadways; (e) Private Storm Water Facilities; (f) Utility and all other easements; and (g) all property outside of Lots located within the Community which was originally maintained by Declarant. The foregoing maintenance shall be performed consistent with the Community-Wide Standard. The Association shall not have the power or authority to grant or convey the right to utilize the Common Property to adjacent property owners. In connection with the maintenance and operation of the Common Property, the Association shall comply with all applicable ordinances of King County and the City of Renton,Washington in effect as of the date of recording of the Declaration and those adopted thereafter, and all amendments thereof, including without limitation, ordinances relating to biofiltration, swale, and the storm system, manholes and cleanouts. 5.1.2 Other Property. In addition, the Association shall have the right, but not the obligation, to maintain other property not owned by the Association, whether within or without the Community, where the Board of Directors has determined that such maintenance would benefit all Owners. 12 5.1.3 Limitation. In the event that the Association determines that the need for maintenance, repair, or replacement, which is the responsibility of the Association hereunder, is caused through the willful or negligent act of an Owner, or the family, guests, lessees, or invitees of any Owner, and is not covered or paid for by insurance, in whole or in part, then the Association may perform such maintenance, repair or replacement at such Owner's sole cost and expense, and all costs thereof shall be a specific assessment to which such Owner is subject and shall become a lien against the Lot of such Owner. • 5.1.4 City of Renton's Right to Maintain. If the Association fails to maintain the Common Property in a manner as required by City of Renton, then the City of Renton may have the right, after notice and an opportunity to cure, to assess each Owner of the Association the monies necessary to maintain the Common Property subject to City of Renton's law, ordinances and regulations. 5.1.5 Wetland Monitoring. Wetland monitoring, in accordance with the Wetland Mitigation Plan for Morgan Place dated June 25, 2001 prepared by Chad Armour, will be required for 5 years beginning in 2002. The Association shall employ a wetland-monitoring firm to complete the yearly r monitoring and provide the City of Renton with its reported findings. If any replacement plants are ` ' required it will be the Associations responsibility. Q O 5.2 Owner's Responsibility. - I Except as provided in Section 1 above, all maintenance of the Lot and all structures, parking ' areas, landscaping, and other improvements thereon shall be sole responsibility of the Owner thereof, who shall maintain such Lot in a manner consistent with the Community- Wide Standard and this Declaration. In the event that the Board of Directors of the Association determines that any Owner has C%.0 failed or refused to discharge properly any of such Owner's obligations with regard to the maintenance, repair, or replacement of terms for which such Owner is responsible hereunder, the Association shall, except in an emergency situation, give the Owner written notice of the Association's intent to provide such necessary maintenance, repair, or replacement at the Owner's sole cost and expense. The notice shall set forth with reasonable particularity the maintenance, repairs, or replacement deemed necessary. The Owner shall have thirty (30) days after receipt of such notice within which to complete such maintenance, repair, or replacement, or, in the' event that such maintenance, repair, or replacement is not capable of completion within a thirty (30) day period, to commence such work which shall be completed within a reasonable time. If any Owner does not comply with the provisions hereof, the Association may provide any such maintenance, repair, or replacement at such Owner's sole cost and expense, and all costs shall be a specific assessment to which such Owner is subject and shall become a lien against the Lot. 5.3 Conveyance of Common Property by Declarant to Association. The Declarant may transfer or convey to the Association at no cost any personal property and any improved or unimproved real property, leasehold, easement, or other property interest specifically related to the Association and its intended purpose. Such conveyance shall be accepted by the Association, and such property shall thereafter be Common Property to be maintained by the Association for the benefit of all or a part of its Members. 13 Article 6 Use Restrictions and Rules 6.1 General. This Article, beginning at Section 2, sets out certain use restrictions, which must be complied with by all Owners and Occupants. These use restrictions may only be amended in the manner provided in Article 12 Section 12.3, hereof regarding amendment of this Declaration. In addition, the Board of Directors may, from time to time, without consent of the Members, promulgate, modify, or delete other use restrictions and rules and regulations applicable to the Community. Such use restrictions and rules shall be distributed to all Owners and Occupants prior to the date that they are to become effective and shall thereafter be binding upon all Owners and Occupants until and unless overruled, canceled, or modified in a regular or special meeting by a Majority of the Total Association Vote. COrn 6.2 Residential Use. All Lots shall be used for the purpose of a single-family Residence exclusively. No business or 0o business activity shall be carried on, in or upon any Lot at any time except with the prior written approval of the Board of Directors. Leasing of a Lot shall not be considered a business or business activity. C4 However, the Board of Directors may permit a lot to be used for business purposes so long as such business, in the sole discretion of the Board of Directors, does not otherwise violate the provisions of the o Declaration or Bylaws, does not create a disturbance and does not unduly increase traffic flow or parking N congestion. The Board of Directors may issue rules regarding permitted business activities. No structures or buildings of any kind shall be erected, altered, placed or permitted to remain on any Lot other than detached Residence with an attached garage for not less than two (2) and not more than four (4) standard sized automobiles. No outbuilding, trailer, shed or temporary building of any kind shall be placed on a Lot or used as a Residence, except for Declarant's construction trailers and such other construction trailers as approved by Declarant during the Development Period, except as specified elsewhere herein. 6.3 Architectural Review Committee. The Architectural Review Committee shall be comprised of three (3) representatives appointed by the Board of Directors; provided, however, during the Development Period the Declarant shall be the Architectural Control Committee. 6.4 Architectural Standards. 6.4.1 No construction, alteration, addition, or improvement of any nature whatsoever (including without limitation, any structure requiring a permit from City of Renton or other structures constructed on a Lot such as walls, rockeries, fences, living fences, hedges, spas, swimming pools, sport courts, dog runs and kennels) shall be commenced or placed upon any part of the Community or a Lot, except such as is installed by the Declarant, or as is approved in accordance with this Section, or as it otherwise expressly permitted herein. 14 6.4.2 No Residence shall have a fully enclosed living area, excluding an attached garage, of less than 1,900 square feet in the case of a one story Residence, and 2,100 square feet in the case of a two story Residence. No Residence shall exceed two stories (excluding a daylight or subterranean basement) or be more than thirty (30) feet in height from the original grade of the Lot and must be in compliance with the City of Renton residential height limitation. Any auxiliary building or improvement must be designed and constructed to be compatible in appearance to the Residence. A Residence shall have received a certificate of occupancy from City of Renton within nine (9) months from the date construction is commenced. 6.4.3 No exterior construction, addition, improvement, or alteration to a Residence shall be made (including without limitation, re-roofing, residing or repainting) unless and until plans and specifications showing at least the nature, kind, shape, height, materials, and location shall have been submitted in writing to and approved by the Architectural Review Committee. 6.4.4 The Architectural Review Committee, with the consent of the Board of Directors, C.t may employ architects, engineers, or other Persons, as it deems necessary to enable the Architectural Review Committee to perform its review. Written design guidelines and procedures may be promulgated act for the exercise of this review, 'which guidelines may provide for a reasonable review fee, not to exceed Three Hundred Dollars ($300). There will be no architectural review fee for the initial builders. c.c 6.4.5 If the Architectural Review Committee fails to approve or to disapprove submitted Cs./ o plans and specifications within sixty(60)days after an Owner has submitted plans and specifications to it, approval will not be required, and this Section will be deemed to have been fully complied with. 0 6.4.6 The Architectural Review Committee shall be the sole arbiter of such plans and may, within such sixty (60) day period give written notice of its disapproval for any reason, including purely aesthetic considerations, provided, however, the specific reasons for disapproval shall be fully stated in such notice. Upon notice of disapproval, an Owner shall have the right to submit revised plans and specifications for further consideration in the manner set forth above. 6.4.7 Any member of the Architectural Review Committee or its representatives shall have the right, during reasonable hours and after reasonable notice, to enter upon any Lot to inspect for the purpose of ascertaining whether or not this Declaration has been or is being complied with. Such Person or Persons shall not be deemed guilty of trespass by reason of such entry. 6.4.8 The Architectural Review Committee shall be entitled to bring an injunction to stop any construction in violation of these restrictions. In addition to any other remedies available to the Association, in the event of noncompliance with this Section, the Board of Directors may, as provided in Article 12, Section 1 hereof, record in the appropriate land records a notice of violation naming the violating Owner. PLANS AND SPECIFICATIONS ARE NOT APPROVED FOR ENGINEERING. OR STRUCTURAL DESIGN OR QUALITY OF MATERIALS, AND BY APPROVING SUCH PLANS AND SPECIFICATIONS 15 NEITHER THE ARCHITECTURAL REVIEW COMMITTEE, THE MEMBERS THEREOF, NOR THE ASSOCIATION ASSUMES, LIABILITY OR RESPONSIBILITY THEREFOR, NOR FOR ANY DEFECT IN ANY STRUCTURE CONSTRUCTED FROM SUCH PLANS AND SPECIFICATIONS. 6.5 - Siding. Roofs and Windows. Only hardboard siding, Hardie Board (or other cement board siding), cedar lap siding, stucco, stone, cultured stone, brick or equivalent type of siding as may be approved by the Architectural Review Committee shall be used in the construction of any Residence. No plywood siding shall be used in the construction of any Residence, provided, however, plywood siding used in conjunction with batts and simulating board and batt siding or architectural details may be permitted with the approval of the Architectural Review Committee. All roofs shall be constructed out of twenty-five (25) year architectural composite roofing materials (i.e., Celotex Presidential 25-year Weathered Roof Comp Roof) or, cedar, shake or tile or such similar materials as may be approved by the Architectural Review Committee. Roof gutter drains shall be connected to the storm drainage system, unless otherwise allowed by Declarant or CFI delineated on plans approved by the Architectural Review Committee. Residences constructed on corner CC Lots and which back on NE 4th Street must have exterior trim on front and side yard windows. 6.6 Landscaping. Each Lot shall be landscaped in accordance with the specifications now or hereinafter adopted by the Declarant during the Development Period, or the Architectural Review Committee after the +C3 Development Period. All front yard, including front side yard landscaping must be completed concurrently with the date of substantial completion of the Residence and issuance of a Certificate of Occupancy, as determined by City of Renton. All rear and side rear yards must be fully landscaped within eight (8) months from the date of a conveyance of a Lot with a completed Residence. Owners are restricted from using chemical fertilizers that have ingredients that cause or potentially cause damage to downstream habitat and fisheries wildlife. 6. 7 Fences. All fences shall be estate style cedar fence with a 2 x 4 bottom rail, 2 x 4 top rail, 4 x 4 posts and I x 6 tight knot cedar fencing or such other wood fence as approved by the Architectural Review Committee. The Architectural Review Committee may issue guidelines detailing acceptable fence styles and/or specifications. 6.8 Lighting. Except as may be permitted by the Architectural Review Committee, exterior lighting visible from the street, shall not be permitted except for(a) approved lighting as originally installed on a Lot; (b) street lights in conformity with an established street lighting program for the Community; (c)seasonal decorative lights; or(e)front house illumination of model homes. 6.9 Driveways -Parking. Driveways shall be constructed of exposed aggregate concrete. Vehicles, including, without limitation, recreational vehicles, shall be parked only in enclosed garages, provided however, automobiles, sport utility vehicles, and trucks not exceeding one (I) ton G. V. W. which do not have any 16 painted identification of a business or advertising thereon may park: (a) for a period of not more than twenty-four(24) hours in the driveway or in appropriate parking spaces or designated areas; and (b)for a period of not more than twelve (12) hours in the street right of way. The foregoing provision shall not apply to police or emergency vehicles. All parking shall be further subject to such rules and regulations as the Board of Directors may adopt. 6.10 Vehicles. No vehicle, including, without limitation a recreational vehicle, may be left upon any portion of the Community, except in an enclosed garage or other area designated by the Board of Directors. If it is unlicensed or if it is in a condition such that it is incapable of being operated upon the public highways, such vehicle shall be considered a nuisance and may be removed from the Community. No motorized vehicles shall be permitted on streets, pathways or unpaved Common Property except for public safety vehicles and vehicles authorized by the Board of Directors. 6.11 Signs. No sign of any kind shall be erected by an Owner or Occupant within the Community without the prior written consent of the Architectural Review Committee. Notwithstanding the foregoing, the Declarant shall have the right to erect reasonable and appropriate signs. One (I) For Sale" or °'For Rent" sign a.= located on a suitable post in the yard, not to exceed 2' x 2' in size with "sold" strips not to exceed six inches (6") by two feet (2'), security signs consistent with the Community-Wide Standard, and any signs vim required or allowed by federal or state law, statute or ordinance or as required pursuant to a legal proceedings, may be erected on a suitable post on any Lot. No signs may be posted in the exterior windows of any residence The provisions of this Section shall not apply to any Owner who has purchased a Lot for the purpose of constructing a Residence for immediate re-sale or a person holding a Mortgage who becomes the Owner of any Lot as purchaser at a judicial or foreclosure sale conducted with respect to a first Mortgage or as transferee pursuant to any proceeding in lieu thereof. 6.12 Antennas. No exterior antennas of any kind shall be placed, allowed, or maintained upon any portion of the Community, including any Lot, without the prior written consent of the Architectural Review Committee. 6.13 Garbage Cans. Woodpiles. etc, All garbage cans, woodpiles, swimming pool pumps, filters and related equipment, air conditioning compressors and other similar items shall be located or screened so as to be concealed from view of neighboring streets and Lots. All rubbish, trash, and garbage shall be regularly removed and shall not be allowed to accumulate. Rubbish, garbage, yard waste and recycle containers may only be placed at the curbside on the day of removal; containers must be removed by an Owner from the curb side by 7:00 p.m. on the day of the removal. Declarant, however, hereby expressly reserves the right to dump and bury rocks and trees on property within the Community as needed for efficient construction and to allow developers and builders within the Community to bury,rocks and trees removed from a Lot on such Lot. 17 • • 6.14 Leasing. Lots may be leased for residential purposes. All leases shall require, without limitation, that the tenant acknowledge receipt of a copy of the Declaration, Bylaws, use restrictions, and rules and regulations of the Association. The lease shall also obligate the tenant to comply with the foregoing and shall provide that in the event of noncompliance, the Board of Directors, in addition to any other remedies available to it, may evict the tenant on behalf of the Owner and specifically assess all costs associated therewith against the Owner and the Owner's property. All signs advertising that a residence is "For Lease"and/or"For Rent"shall comply with Section 6.11. 6.15 Occupants Bound. All provisions of the Declaration, Bylaws, and of any rules and regulations, use restrictions or design guidelines promulgated pursuant thereto which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all Occupants even though Occupants are not specifically mentioned. Fines may be levied against Owners or Occupants. If a fine is first levied against an Occupant and is not paid timely, the fine may then be levied against the Owner. cgs, 6.16 Animals and Pets. crs No animals, livestock, or poultry of any kind may be raised, bred, kept, or permitted on any Lot, «y with the exception of dogs, cats, or other usual and common household pets in reasonable number, as determined by the Board of Directors. No pets shall be kept, bred or maintained for any commercial w purpose. No animal allowed under this Declaration shall be allowed to roam loose off the Lot on which cv they are kept. cv 0 6.17 Nuisance. — It shall be the responsibility of each Owner and Occupant to prevent the development of any ccy) unclean, unhealthy, unsightly, or unkempt condition on his or her property. No property within the Community shall be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or material be kept that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property, including, without limitation unreasonable barking of dogs and/or other pet noises. No noxious or offensive activity shall be carried on within the Community, nor shall anything be done tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property with the Community. There shall not be maintained any plants or animals or device or thing of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Community. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or other sound device, except such devices as may be used exclusively for security purposes, shall be located, installed or maintained upon the exterior of any Lot unless required by law. 6.18 Unsightly or Unkempt Conditions. The pursuit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly and disassembly of motor vehicles and other mechanical devices, which 18 might tend to cause disorderly, unsightly, or unkempt conditions, shall not be pursued or undertaken in any part of the Community. 6.19 Subdivision of Lot. No Lot shall be subdivided or its boundary lines changed except with the prior written approval of the Architectural Review Committee. Declarant, however, hereby expressly reserves the right to replat or to adjust the boundaries of any Lot or Lots owned by Declarant. Any subdivision, boundary line change, or replatting shall not be in violation of the applicable subdivision and zoning regulations. 6.20 Guns. The use of firearms in the Community is prohibited. The term "firearms" includes without limitation weapons using powder. 6.21 Mailboxes. All mailboxes located on Lots shall be of a similar style approved by the Architectural Review Committee. Replacement mailboxes may be installed after the type has been approved in writing by the en Architectural Review Committee. c 6.22 Exterior Security Devices. No exterior security devices, including, without limitation, window bars, shall be permitted on any rc residence or Lot. Signs placed on the Lot or the exterior of the residence stating that such residence is protected by a security system shall not be deemed to constitute an exterior security device. 0 6.23 Drainage-Water Valves. Wherever possible Owners shall tie in all surface drainage into the storm system to avoid water sheeting across sidewalks. Article 7 Insurance and Casualty Losses 7.1 Insurance on Common Property. The Board of Directors or the duly authorized agent of the Association shall have the authority to obtain or cause to be obtained insurance for all insurable improvements whether or not located on the Common Property which the Association is obligated to maintain. This insurance shall provide, at a minimum, fire and extended coverage, including vandalism and malicious mischief, and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction in the event of damage or destruction from any such hazard. Alternatively, the Board of Directors may purchase "all-risk" coverage in like amounts. The Homeowners Association shall maintain the detention and water quality system and emergency access road(s)within Tracts B and G until such time that those improvements are deeded or sold to a government agency which will assume maintenance and responsibility of such improvements. The Associations responsibility is subsequent to the developer's maintenance responsibility per City of Renton requirements. 19 7.2 Liability Insurance. The Board of Directors shall have the authority to obtain a public liability policy applicable to the Common Property covering the Association and its members for all damage or injury caused by the negligence of the Association or any of its members or agents, and, if reasonably available, directors'and officers' liability insurance. 7 .3 Policy Provisions. The Board of Directors is hereby authorized, but no required to contract with or otherwise arrange to obtain the insurance coverage required hereunder through the Declarant and to reimburse Declarant for the cost thereof, and Declarant shall be authorized, but not obligated, to purchase such insurance coverage for the benefit of the Association and the Owners upon Declarant and the Association agreeing upon the terms and conditions applicable to reimbursement by the Association for costs incurred by Declarant in obtaining such coverage. All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association, as trustee for the respective benefited parties, as further identified in subparagraph (b), below. Such insurance shall be governed by the provisions hereinafter set 41.2 forth: (a) All policies shall be written with a company authorized to do business in Washington. 4=s (b) Exclusive authority to adjust losses under policies obtained by the Association shall be 0 act vested in the Association's Board of Directors; provided, however, no Mortgagee having __ an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related thereto. (c) In no event shall the insurance coverage obtained and maintained by the Association's Board of Directors hereunder be brought into contribution with insurance purchased by ,r individual Owners, occupants, or their Mortgagees, and the insurance carried by the Association shall be primary. (d) The Association's Board of Directors should consider securing insurance policies that will provide for the following: (i) a waiver of subrogation by the insurer as to any claims against the Association's Board of Directors, its manager, the Owners and their respective tenants, servants, agents, and guests; (ii) a waiver by the insurer of its rights to repair and reconstruct instead of paying cash; (iii) that no policy may be canceled, invalidated, or suspended on account of anyone or more individual Owners; (iv) that no policy may be canceled, subjected to nonrenewal, invalidated, or suspended on account of any defect or the conduct of any director, officer, or employee of the Association or its duly authorized manager without prior demand in writing delivered to the Association to cure the defect or to cease the conduct and the allowance of a reasonable time thereafter within which a cure may be effected by the Association, its manager, any Owner or Mortgagee; 20 (v) that any "other insurance" clause in any policy exclude individual Owners' policies from consideration; and (vi) that no policy may be canceled, subjected to nonrenewal or substantially modified without at least thirty(30)days' prior written notice to the Association. In addition to the other insurance required by this Section, the Board may consider a fidelity bond or bonds on directors, officers, employees, and other persons handling or responsible for the Association's funds, if reasonably available. If obtained, the amount of fidelity coverage shall be determined by the directors'best business judgment. 7.4 Premiums. Premiums for all insurance shall be expenses of the Association. The policies may contain a reasonable deductible. 7.5 Damages and Destruction- Insurance by Association. 7.5.1 In General. Immediately after damage or destruction by fire or casualty to all or a''° any portion of any improvement covered by insurance written in the name of the Association, the Board of rim Directors or its duly authorized agent shall proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged or destroyed property. Repair or reconstruction, as used in this Section, means repairing or restoring the Common Property to substantially the same condition and location that existed prior to the fire or other casualty, allowing for any changes or improvements necessitated by changes in applicable building codes. The Board of Directors shall have the enforcement powers specified in Article 12, Section 12.1 of this declaration necessary to enforce this provision. 7.5.2 Repair and Reconstruction. Any damage or destruction to the Common Property covered by insurance written in the name of the Association shall be repaired or reconstructed unless, within sixty (60) days after the casualty, at least seventy-five percent (75%) of the Total Association Vote otherwise agree. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not made available to the Association within such period, then the period shall be extended until such information shall be made available; provided, however, such extension shall not exceed sixty (60) days. No Mortgagee shall have the right to participate in the determination of whether damage or destruction shall be repaired or reconstructed. 7.5.3 Insufficient Proceeds. If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are not sufficient to defray the cost thereof, the Board of Directors may, without the necessity of a vote of the Association' s members, levy a special assessment against all Owners in proportion to the number of Lots owned by such Owners. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction or if the improvements are not repaired or reconstructed, such excess shall be deposited to the benefit of the Association. 21 7.5.4 Decision Not to Repair. In the event that it should be determined by the Association in the manner described above that the damage or destruction shall not be repaired or reconstructed and no alternative improvements are authorized, then and in that event the property shall be restored to its natural state and maintained as an undeveloped portion of the Community by the Association in a neat and attractive condition. 7.6 Damage and Destruction-Insured by Owners. The damage or destruction by fire or other casualty to all or any portion of any improvement on a Lot shall be repaired by the Owner thereof within seventy-five (75) days after such damage or destruction or, where repairs cannot be completed within seventy-five (75) days, they shall be commenced within such periods and shall be completed within a reasonable time thereafter. Alternatively, the Owner may elect to demolish all improvements on the Lot and remove all debris therefrom within seventy-five (75) days after such damage or destruction. In the event of noncompliance with this provision, the Board of Directors shall have all enforcement powers specified in Article 12 of this Declaration. fArticle 8. Condemnation In the event of a taking by eminent domain of any portion of the Common Property on which co improvements have been constructed, then, unless within sixty (60) days after such taking, at least c•� seventy-five (75%) percent of the Total Association Vote shall otherwise agree, the Association shall restore or replace such improvements so taken on the remaining land included in the Common Property to the extent lands are available therefore. The provisions of Article 7 above, applicable to Common Property improvements damage, shall govern replacement or restoration and the actions to be taken in 0.4 the event that the improvements are not restored or replaced. Article 9 Mortgagee Provisions The following provisions are for the benefit of holders of first Mortgages on Lots in the Community. The provisions of this Article apply to both this Declaration and to the Bylaws, notwithstanding any other provisions contained therein. 9.1 Notices of Action. An institutional holder, insurer, or guarantor of a first Mortgage, who provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the Lot number, therefore becoming an "eligible holder"),will be entitled to timely written notice of: (a) any condemnation loss or any casualty loss which affects a material portion of the Community or which affects any Lot on which there is a first Mortgage held, insured, or guaranteed by such eligible holder; 22 (b) any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to the Mortgage of such eligible holder, where such delinquency has continued for a period of sixty (60) days; provided, however, notwithstanding this provision, any holder of a first Mortgage, upon request, is entitled to written notice from the Association of any default in the performance by the Owner of the encumbered Lot of any obligation under the Declaration or Bylaws of the Association which is not cured within sixty (60) days; (c) any lapse, cancellation, or material modification of any insurance policy maintained by the Association. • 9.2 No Priority: No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Property. 9.3 Notices to Association. �.. Upon request, each Lot Owner shall be obligated to furnish to the Association the name and o address of the holder of any Mortgage encumbering such Owner's Lot. cr 9.4 Applicability of Article 9. c" Nothing contained in this Article shall be construed to reduce the percentage vote that must c� otherwise be obtained under the Declaration, Bylaws, or Washington law for any of the acts set out in this o Article. c.� 0 9.5 Amendments By Board. 0 Should the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, HUD or V A subsequently delete any of their respective requirements which necessitate the provisions of this Article or make any such requirements less stringent, the Board of Directors, without approval of the Owners, may cause an amendment to this Article to be recorded to reflect such changes. Article 10 Easements 10.1 Easements for Use and Enjoyment. 10.1.1 Every Owner of a Lot shall have a right and easement of ingress and egress, use and enjoyment in and to the Common Property subject to the following provisions: (a) the right of the Association to charge reasonable admission and other fees for the use of any portion of the Common Property, to limit the number of guests of Lot Owners and tenants who may use the Common Property, and to provide for the exclusive use and enjoyment of specific portions thereof at certain designated times by an Owner, his family, tenants, guests, and invitees; 23 J • (b) the right of the Association to suspend the voting rights of a Lot Owner and the right of an Owner to use the Common Property available for use by the Community, if any, for any period during which any assessment against such Owner's Lot which is hereby provided for remains unpaid; and, for a reasonable period of time for an infraction of the Declaration, Bylaws, or rules and regulations; (c) The right of the Association to borrow money for the purpose of improving the Common Property, or any portion thereof, or for construction, repairing or improving any facilities located or to be located thereon, and to give as security for the payment of any such loan a Mortgage conveying all or any portion of the Common Property; provided, however, the lien and encumbrance of any such Mortgage given by the Association shall be subject and subordinate to any rights, interests, options, easements and privileges herein reserved or established for the benefit of Declarant, or any Lot or Lot Owner, or the holder of any Mortgage, irrespective of when executed, given by Declarant or any Lot Owner encumbering any Lot or other property located within the Community (Any provision in this Declaration or in any such Mortgage given by the Association to the contrary notwithstanding, the exercise of any rights therein by the holder thereof in the event of a default thereunder shall not cancel or terminate any a rights, easements or privileges herein reserved or established for the benefit of ° Declarant, or any Lot or Lot Owner, or the holder of any Mortgage, irrespective of when a-- cz-t: executed, given by Declarant or any Lot Owner encumbering any Lot or other property CIS located within the Community); and (c) The right of the Association to dedicate or transfer all or any portion of the tsa Common Property subject to such conditions as may be agreed to by the members cm. of the Association. No such dedication or transfer shall be effective unless an instrument agreeing to such dedication or transfer has been approved by the 4=1 affirmative vote of at least two-thirds (2/3) of the Total Association Vote except the t�v dedication of roads and roadways to the county or municipality. 10.1.2 Any Lot Owner may delegate such Owner's right of use and enjoyment in and to the Common Property and facilities located thereon to the members of such Owner's family and to such Owner's tenants and guests and shall be deemed to have made a delegation of all such rights to the occupants of such Owner's Lot, if leased. 10.2 Easements for Utilities. There is hereby reserved to the Declarant and the Association blanket easements upon, across, above and under all property within the Community for access, ingress, egress, installation, repairing, replacing, and maintaining all utilities serving the Community or any portion thereof, including, but not limited to, gas, water, sanitary sewer, telephone and electricity, as well as storm drainage and any other service such as, but not limited to, a master television antenna system, cable television system, or security system which the Declarant or the Association might decide to have installed to serve the Community. It shall be expressly permissible for the Declarant, the Association, or the designee of either, as the case may be, to install, repair, and maintaining of such wires, conduits, cables and other equipment related to the providing of any such utility or service. Should any party furnishing any such 24 1 • 1 • utility or service requests or a specific license or easement by separate recordable document,.the Board of Directors shall have the right to grant such easement. 10.3 Easement for Entry. In addition to the right of the Board of Directors to exercise self-help as provided in herein, the Board of Directors shall have the right, but shall not be obligated, to enter upon any property within the Community for emergency, security, and safety reasons, which right may be exercised by the manager, and all policemen, firemen, ambulance personnel, and similar emergency personnel in the performance of their respective duties. Except in an emergency situation, entry shall only by during reasonable hours and after notice to the Owner, and the entering party shall be responsible for any damage caused: This right of entry shall include the right of the Board of Directors to enter to cure any condition, which may increase the possibility of a fire, slope erosion, or other hazard in the event an Owner or Occupant fails or refuses to cure the condition upon request by the Board of Directors. 10.4 Easement for Maintenance. Declarant hereby expressly reserves a perpetual easement for the benefit of the Association across such portions of the Community, determined in the sole discretion of the Association, as are $'= necessary to allow for the maintenance required under Article 5. Such maintenance shall be performed with a minimum of interference to the quiet enjoyment to Owners' property, reasonable steps shall be taken to protect such property, and damage shall be repaired by the Person causing the damage at its sole expense. V4 10.5 Easement for Entry Features. •o There is hereby reserved to the Declarant and the Association an easement for ingress, egress, installation, construction landscaping and maintenance of entry features and similar streetscapes for the Community, over and upon each Lot as more fully described on the recorded subdivision plats for the Community. The easement and right herein reserved shall include the right to cut, remove and plant trees, shrubbery, flowers and other vegetation around such entry features and the right to grade the land under and around such entry features. 10.6 Construction and Sale Period Easement. Declarant reserves an easement across all Community property for Declarant and any builder or developer approved byDeclarant to maintain and carryon, upon such portion of the Community as P PP Declarant may reasonably deem necessary, such facilities and activities as in the sole opinion of Declarant may be required, convenient, or incidental to Declarant's and such builder's or developer's development, construction, and sales activities, including, but without limitation: the right of access, ingress and egress for vehicular and construction activities over, under, on or in the Community, including, without limitation, any Lot; the right to tie into and/or otherwise connect and use (without a tap- on or any other fee for so doing), replace, relocate, maintain and repair any device which provides utility or similar services including, without limitation, electrical, telephone, natural gas, water, sewer and drainage lines and facilities constructed or installed in, on, under and/or over the Community the right to carry on sales and promotional activities in the Community; and the right to construct and operate 25 • business offices, signs, construction trailers, model residences, and sales offices. Rights exercised pursuant to such reserved easement shall be exercised with a minimum of interference to the quiet enjoyment of affected Lots, reasonable steps shall be taken to protect such Lots, and damage shall be repaired by the Person causing the damage at its sole expense. This Section shall not be amended without the Declarant's express written consent until the Declarant's rights hereunder have terminated. Article 11 Development Period 11.1 Development Period. Until such time as all of the Lots within the Community have been sold by Declarant and by the initial builders (the "Development Period"), and unless Declarant elects otherwise, Declarant shall have exclusive authority to manage and operate the Common Property including all rights, duties, functions, and authority granted to the Association hereunder. This requirement is made in order to ensure that the Common Property will be adequately administered in the initial stages of development, and to ensure an cv orderly transition to Association operation. Acceptance of an interest in a Lot evidences acceptance of m this management and operational authority in Declarant. In addition, Declarant shall have the exclusive Cla authority to declare, create, establish; grant and convey to adjacent property owners a non-exclusive easement for ingress" egress, and utilities on, over, under, across and along the roadway portion of the Common Property. 11.2 Amendment by Declarant. This Declaration may be amended during the Development Period by the sole signature of the ,=; Declarant. After the Development Period this Declaration may be amended by an instrument signed by CV not less than a majority of the members of the Association.All amendments must be recorded. Article 12 General Provisions 12.1 Enforcement. Each Owner and Occupant shall comply strictly with the Bylaws, the rules and regulations, the use restrictions, as they may be lawfully amended or modified from time to time, and with the covenants, conditions, and restrictions set forth in this Declaration and in the deed to such Owner's Lot, if any. The Board of Directors may impose fines or other sanctions, which shall be collected as provided herein for the collection of assessments. Failure to comply with this Declaration, the Bylaws or the rules and regulations shall be grounds for an action to recover sums due for damages or injunctive relief, or both, maintainable by the Board of Directors, on behalf of the Association, or, in the proper case, by an aggrieved Owner. Failure by the Association or any Owner to enforce any of the foregoing shall in no event be deemed a waiver of the right to do so thereafter. The Board of Directors shall have the right to record in the appropriate land records a notice of violation of the Declaration and Bylaws, and to assess the cost of recording and removing such notice against the Owner who is responsible (or whose Occupants are responsible)for violating the foregoing. 26 J 1 • J 12.2 Duration, The covenants and restrictions of this Declaration shall run with and bind the Community, and shall inure to the benefit of and shall be enforceable by the Association or any Owner, their respective legal representatives, heirs, successors, and assigns, perpetually to the extent provided by law; provided, however, so long as and to the extent that Washington law limits the period during which covenants restricting land to certain uses may run, any provisions of this Declaration affected thereby shall run with and bind the land so long as permitted by such law, after which time, any such provision shall be (a) automatically extended (to the extent allowed by applicable law) for successive periods of ten ( 10 ) years, unless a written instrument reflecting disapproval signed by the then Owners of at least two- thirds (2/3) of the Lots and the Declarant (so long as the Declarant owns any property for development has been recorded within the year immediately preceding the beginning of a ten (10) year renewal period agreeing to change such provisions, in whole or in part, or to terminate the same, in which case this Declaration shall be modified or terminated to the extent specified therein; or (b) extended as otherwise provided by law. Every purchaser or grantee of any interest (including, without limitation, a security interest) in any real property subject to this Declaration, by acceptance of a deed or other conveyance cn therefore, thereby agrees that such provisions of this Declaration may be extended and renewed as czt provided in this Section. ICC) 12.3 Amendment. cv 12.3.1 This Declaration may be amended unilaterally at any time and from time to time by Declarant (a) if such amendment is necessary to bring any provision hereof into compliance Er+ with any applicable governmental statute, rule, or regulation or judicial determination which shall be in conflict therewith; (b) if such amendment is necessary to enable any title insurance company to issue title insurance coverage with respect to the Lots subject to this Declaration; (c) if such amendment is required by an institutional or governmental lender or purchaser 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 the Lots subject to this Declaration; ( d) if such amendment is necessary to enable any governmental agency or private insurance company to insure or guarantee Mortgage loans on the Lots subject to this Declaration; provided, however, any such amendment shall not adversely affect the title to any Owner's Lot unless any such Lot Owner shall consent thereto in writing; or ( e) for any other purpose; provided, however, any such amendment shall not materially adversely affect the substantive rights of any Lot Owners hereunder, nor shall it adversely affect title to any Lot without the consent of the affected Lot Owner. 12.3.2 In addition to the above, this Declaration may be amended upon the affirmative vote or written consent, or any combination thereof, of the Owners of at least two-thirds (2/3)of the Lots and the consent of Declarant (so long as the Declarant owns any property for development). Notwithstanding the foregoing, the provisions of Section 2.2 and 5.1 as to the Association's powers regarding the Common Property may only be amended upon the affirmative vote or written consent, or any combination thereof, of all or one hundred percent (100%)of the Owners of the Lots and the consent of Declarant (so long as the Declarant owns any property for development). Amendments to this Declaration shall become effective upon recordation, unless a later effective date is specified therein. 27 ul Y These covenants may not be amended to eliminate the requirements to maintain common improvements including storm water facilities, private roadways and other common areas, or permitting conveyance of those features to a third party without the written permission of the City of Renton. 12.4 Partition. The Common Property shall remain undivided, and no Owner nor any other Person shall bring any action for partition or division of the whole or any part thereof without the written consent of all Owners of all portions of the property located within the Community and without the written consent of all holders of all Mortgages encumbering any portion of the property, including, but not necessarily limited to, the Lots located within the Community. 12.5 Gender and Grammar. The singular, wherever used herein, shall be construed to mean the plural, when applicable, and the use of the masculine pronoun shall include the neuter and feminine. 12.6 Severability. a. Whenever possible, each provision of this Declaration shall be interpreted in such manner as to rep be effective and valid, but if the application of any provision of this Declaration to any person or to any property shall be prohibited or held invalid, such prohibition or invalidity shall not affect any other provision or the application of any provision which can be given effect without the invalid provision or application, and, to this end, the provisions of this Declaration are declared to be severable. CZ' 12.7 Captions. C•%' The captions of each Article and Section hereof: as to the contents of each Article and Section, •*=) are inserted only for convenience and are in no way to be construed as defining, limiting, extending, or otherwise modifying or adding to the particular Article or Section to which they refer. 12.8 Perpetuities. If any of the covenants, conditions, restrictions, or other provisions of this Declaration shall be unlawful, void, or voidable for violation of the rule against perpetuities then such provisions shall continue only until twenty-one (21) years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England, 12.9 Indemnification. To the fullest extent allowed by applicable Washington law, the Association shall indemnify every officer and director against any and all expenses, including, without limitation, attorney's fees, imposed upon or reasonably incurred by any officer or director in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which such officer or director may be a party by reason of being or having been an officer or director. The officers and directors shall not be liable for any mistake of judgment, negligent or otherwise except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith on behalf of the Association (except to the extent that such officers or directors may also be 28 members of the Association), and the Association shall indemnify and forever hold each such officer and director free and harmless against any and all liability to others on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer or director, or former officer or director, may be entitled. The Association may maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such coverage is reasonably available. 12.10 Books and Records. 12.10.1 Inspection by Members and Mortgagees. This Declaration, the Bylaws, copies of rules and use restrictions, membership register, books of account, and minutes of meetings of the members of the Board of Directors and; of committees shall be made available for inspection and copying by any member of the Association or by the duly appointed representative of any member and by holders, insurers, or guarantors of any first Mortgage at any reasonable time and for a purpose reasonably related to such Person's interest as a member or holder, insurer, or guarantor of a `" first Mortgage at the office of the Association or at such other reasonable place as the Board of Directors rrt shall prescribe. C=i 12.10.2 Rules for Inspection. The Board of Directors shall establish reasonable rules with respect to: c*, CZ1 (a) Notice to be given to the custodian of the records; ra (b) Hours and days of the week when such an inspection may be made; and c-4 (c) Payment of the cost of reproducing copies of documents. 12.10.3 Inspection by Directors; Every director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a director includes the right to make extra copies of documents at the reasonable expense of the Association. 12.11 Financial Review. A review of the books and records of the Association shall be made annually in the manner as the Board of Directors may decide; provided, however, after having received the Association's financial statements at the annual meeting, by a Majority of the Total Association Vote, the Owners may require that the accounts of the Association be audited as a common expense by a certified public accountant Upon written request of any institutional holder of a first Mortgage and upon payment of all necessary costs, such holder shall be entitled to receive a copy of audited financial statements within ninety (90) days of the date of the request 29 J 12.12 Notice of Sale, Lease or Acquisition. In the event an Owner sells or leases such Owner's Lot, the Owner shall give to the Association, in writing, prior to the effective date of such sale or lease, the name of the purchaser or lessee of the Lot and such other information as the Board of Directors may reasonably require. Upon acquisition of a Lot each new Owner shall give the Association, in writing the name and mailing address of the Owner and such other information as the Board of Directors may reasonably require. 12.13 Agreements. Subject to the prior approval of Declarant (so long as Declarant owns any property for development and/or sale in the Community) all agreements and determinations, including settlement agreements regarding litigation involving the Association, all fully authorized by the Board of Directors shall be binding upon all Owners, their heirs, legal representatives, successors, assigns, and others having an interest in the Community or the privilege of possession and enjoyment of any part of the Community. at 12.14 Implied Rights. The Association may exercise any right or privilege given to it expressly by this Declaration, the Bylaws, the Articles of Incorporation, any use restriction or rule, and every other right or privilege c" reasonably to be implied from the existence of any right or privilege given to it therein or reasonably necessary to effectuate any such right or privilege. cv 0 12.15 Variances. Notwithstanding anything to the contrary contained herein, the Board of Directors or its designee `" shall be authorized to grant individual variances from any of the provisions of this Declaration, the Bylaws and any rule, regulation or use restriction promulgated pursuant thereto if it determines that waiver of application or enforcement of the provision in a particular case would not be inconsistent with the overall scheme of development for the Community. 12.16 Litigation. No judicial or administrative proceeding shall be commenced or prosecuted by the Association unless approved by at least seventy-five {75%) percent of the Total Association Vote. This Section shall not apply, however, to (a) actions brought by the Association to enforce the provisions of this Declaration {including, without limitation, the foreclosure of liens), (b) the imposition and collection of assessments as provided in Article 4 hereof, (c) proceedings involving challenges to ad valorem taxation, or (d) counterclaims brought by the Association in proceedings instituted against it. This Section shall not be amended unless such amendment is made by the Declarant pursuant to Article 12, Section 12.3 hereof or is approved by the percentage votes, and pursuant to the same procedures, necessary to institute proceedings as provided above. 30 y c. • • IN WITNESS WHEREOF, the Declarant herein, hereby executes this instrument through its duly authorized officers, this //-f h day of FES RUAz`t , 2002. DECLARANT: MORGAN COUR ESTORS, LLC av co By: Its: `71 'v''► kith) C"4 r.e � rt M I y Y e s € w. EXHIBIT A DESCRIPTION OF COMMON PROPERTY Tract A, B, C, D, E and G of City of Renton Plat LUA-01-028, Morgan Place, as described in Exhibit C. O cso 0 acv cv M si N A N 8j70'5.2" W 511.00' n 40 39 38 37 36� 35 34 tvr,: Gi . NEsrIiH _ i - - 1 - --V :V- 0) 41 W co 31 32 133 Q 4i j 42 •?- n e UI,; 111-____c\ , J 14 Lo 43 Q-" . .. `t ; r !7 o 0 200' 0 44 Z" o =n— zi Q,, 30 78A�T-E. 1 z - (NGPA)• --- rV SCALE: 1" = 200' 45 _a :? o Crt °I , 29 I. TRACT G I r,�'_" (STORM I rm>BM .:.. 46 '-'1'-' 28 •M DRAINAGE) 1 kot/ 1 BM B to -- �. ..� � -�,-i..-4- -1851 • N 887109" W 510.61' — "' --- N — .'- _NE 4TH ST=--d ,. N `N 882109'' W 630.37 ura. O o1 0; 21 W i 77-77r-77-T-'7 -: , CZ) N 22 tj'-' I27` 26 11 10 9 8 7 ;;`'I TRACT F 0 N W I ] I =,'i1i (ROW DEDICATION) t 41 1 It 1 + 7 - Li-'L..irT.--- - . ---1, ,,,,i.i:,!i?'-- co 23i 1 24 25 12 1 i-:{'.11� i o Gj -' 1`D t I z 'AY' 13 5 �, ,:: 2 __ _- TRACT 0* i 1 14 20 • k;, 15 1Z`f 3 0..,. TRACT C 2 z,; (OPEN SPACE/LANDSCAPE) -- I • • 19 rC 16 2 1 i:_ N 0078'51"E ' - . 353.34' I ...; _ I :_!°. TRACT B ' ' 17 r:. 1 I`'_;;. (STORM DRAINAGE) : 18 s7 N 8823'10" W 600.62' 41'W 2 I Q �: OI, °I (LAANDSCAPE) J 2:l -.1,Q z l I v;:ti EXHIBIT B MAP OF COMMON AREA MORGAN PLACE SEC. 10, TWP.23 N., RGE. 5 E., W.M. DWN. BY• DATE: JOB NO. 4030 Lake Washington 00 ETERSON Blvd. N.E.,Suite 200 RSC 10/24/01 ABRE-0002 CONSULTING Kirkland,WA 98033 E N G I N E E R S Tel(425)827-5874 CHKD. BY: SCALE: SHEET ....... Fax(425) 822-7216 JAS 1"=200' 1 OF 1 k EXHIBIT C REAL PROPERTY SUBMITTED - COMMUNITY LEGAL DESCRIPTION: PARCEL 8: THE WEST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE C SOUTHEAST QUARTER OF SECTION 10, TOWNSHIP 23 NORTH, RANGE 5 EAST, r,., WILLAMEIIE MERIDIAN, IN KING COUNTY, WASHINGTON; 0o EXCEPT THE SOUTH 42 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST r-- 128TH STREET BY DEED RECORDED UNDER AUDITOR'S FILE NUMBER 5755895. 0 of PARCEL C: THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 10, TOWNSHIP 23 NORTH, RANGE 5 EAST, o WILLAMLIIE MERIDIAN, IN KING COUNTY, WASHINGTON; EXCEPT THE EAST 150.01 FEET THEREOF; AND Iv EXCEPT THE SOUTH 42 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST '0 128TH STREET BY DEED RECORDED UNDER AUDITOR'S FILE NUMBER 5837604. •o PARCEL D: TRACTS 1 AND 4 BLACK LOAM FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 12 OF PLATS, PAGE(S) 101, IN KING COUNTY, WASHINGTON; EXCEPT THE WEST 120 FEET OF THE EAST 150 FEET OF THE NORTH 160 FEET OF THE WEST HALF OF SAID TRACT 1; AND EXCEPT THE NORTH 12 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST 128th STREET BY DEEDS RECORDED UNDER AUDITOR'S FILE NUMBERS 5761687 AND 5821507. PARCEL E: THE WEST 120 FEET OF THE EAST 150 FEET OF THE NORTH 160 FEET OF THE WEST HALF OF TRACT 1, BLACK LOAM FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 12 OF PLATS, PAGE(S) 101, IN KING COUNTY, WASHINGTON; EXCEPT THE NORTH 12 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST 128th STREET BY DEEDS RECORDED UNDER AUDITOR'S FILE NUMBERS 5761687 AND 5821507.