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RES2572 CITY OF RENTON, WASHINGTON RESOLUTION NO. 2572 A RESOLUTION OF THE CITY OF RENTON, WASHINGTON APPROVING A FINAL PLAT AND FINAL PLANNED UNIT DEVELOPMENT (FP-082-84 & . FPUD083-84) WHEREAS a petition for the approval of a final plat and final planned unit development for a certain tract of land as herein- after more particularly described, located within the City of Renton has been heretofore filed with the Building and Zoning Department and it appearing that the :__ :final planned unit development and final plat have heretofore been duly approved by the Hearing Examiner after public hearing thereon as provided by law; and WHEREAS after due investigation the Hearing Examiner has considered and recommended the approval of said final plat and final planned unit development and the City Council having duly approved said final plat and final planned unit development at its regular meeting on October 8, 1984 , and such approval being deemed proper and advisable in the public interest, NOW THEREFORE THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I: The final plat and final planned unit development heretofore submitted and approved by the Hearing Examiner, pertaining to the following described real estate, to-wit: See Exhibit "A" attached hereto and made a part hereof as if fully set forth. (Property located at S.E. 8th Drive and Lake Youngs Way S.E. ) be and the same is hereby approved as such final plat and planned unit development, subject to the laws and ordinances of the City of Jr y.. Renton, and subject to the findings, conclusions and recommendations of -the City' s Hearing Examiner dated September 13, 1984 . PASSED BY THE CITY COUNCIL this 10th day of October, 1984 . Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 10th day of October, 1984 . Barbara Y. Shin ch, Mayor Approved as to form: Lawrence J. WamVen, City Attorney bd 1,5 GS 97 j Exhibit "A" Resolution--No-r-2-572 - — ...._. Lots 1 through 138, inclusive, and Tract A, CEDAR RIDGE; RESIDENTIAL PARK, according to the plat thereof recorded in Volume 119 of Plat$, pages 5 through 10, inclusive, records of King County, Washingtonto Situate in the City of Renton, County of King, State of Wa Ma9ton. 85/02/15 #0597 D RECD F 7q.n CASHSL -+.-x+:79.n0 55 DECLARATION AND 4 COVENANTS, CONDITIONS, (-1) RESTRICTIONS AND RESERVATIONS ul� FOR 4i FALCON RIDGE RESIDENTIAL PARK A Planned Unit Development Including Condominiums � sn r` Fye � a s5-02-,15 5.5 * 0597 D 79.00 12 ;,*** 79.00 L t DECLARATION AND COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS FOR FALCON RIDGE RESIDENTIAL PARK A Planned Unit Development Including Condominiums TABLE OF CONTENTS Page DESCRIPTION OF THE LAND . . . . . . . . . . . . . 00 . . . . . . . . . . . . . . . . . . . . 1 ARTICLE 1 : INTERPRETATION 2 C� 1 .1 Liberal Construction 2 N 1 . 2 Covenant Running with Land 2 1 .3 Declarant is Original Owner . . . . . . . . . . . . . . . . . . . . . 2 t� 1 .4 Captions . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 .5 Definitions . . . . . . 0 . . . 0 . . . . 00 . . . . . . . . . . . . . . . . . . . . 3 1 .6 Percentage of Mortgagees 4 1 .7 Inflationary Increase in Dollar Limits 0000 . . . . . . 5 ARTICLE 2: OWNERSHIP OF COMMON AREAS 5 ARTICLE 3: MULTIPLE RESIDENTIAL UNIT LOTS . . . . . . . . . . . . . . . 5 3 . 1 Designated Multiple Residential Unit Lots. . . . . . . . 5 i` �. 3.2 Multiple Unit Structures . . . . . . . . . . . . . . . . . . . . . . . . 5 3 .3 Ownership of Multiple Residential Unit Lots 0000 . 5 3 .4 Moratorium on Multiple Residential Unit Lots 0000 6 3 .5 Purposes for Which Owner of Residential Unit Shall be Deemed Owner of Lot 6 ARTICLE 4: PROPERTY RIGHTS 6 4. 1 Owners' Easements of Enjoyment 6- 4.2 Delegation of Use 7 4. 3 Parking Rights . . . . . . . . . . : . . . . . . . . . 4000 . . . . . . . . . . 7 ARTICLE 5: OWNER'S ASSOCIATION 7 5 . 1 Establishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5 .2 Form of Association 7 5. 3 Membership . . . . . . 0 . . . 0 . . . . . . . . . . . . . . . . . . 00 . 0 . . . . . 7 5.4 Voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5. 5 Meetings, Audits, Notices of Meetings . . . . . . . . . . . 9 ARTICLE 6: MANAGEMENT OF THE ASSOCIATION 11 6. 1 Administration of the Development 11 6.2 Management by Declarant 11 i Page 6.3 Management by Elected Board of Directors 12 6.4 Authority and Duties of the Board . . . . . . . . . . . . . . . 12 6 .5 Board Organization and Operation . . . . . . . . . . . . . . . . 15 ARTICLE 7 : LIMITATION OF LIABILITY . . . . . . . . . . . . . . . . . . . . . . 17 7 .1 Liability for Utility Failure, Etc. . . . . . . . . . . . . . 17 7 .2 No Personal Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 7.3 Indemnification of Board Members . . . . . . . . . . . . . . . . 17 7.4 Indemnification of City of Renton . . . . . . . . . . . . . . . 18 ARTICLE 8: OBLIGATIONS OF OWNERS . . . . . . . . . . . . . . . . . . . . . . . . 18 11� 8.1 In General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 8.2 Specific Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 8.3 Restrictions on Storage . . . . . . . . . . . . . . . . . . . . . . . . . 18 Ln Go ARTICLE 9: OBLIGATION OF THE ASSOCIATION . . . . . . . . . . . . . . . . 19 9 .1 Duties of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 9.2 Power of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ARTICLE 10: COMMON EXPENSES AND ASSESSMENTS . . . . . . . . . . . . . 21 10.1 Creation of the Lien and Personal Obligation of Assessments . . . . . . . . . . . . . . . . . . . . . 21 10.2 Purpose of Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . 21 10.3 Maximum Annual Assessment . . . . . . . . . . . . . . . . . . . . . . . 21 10.4 Estimated Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 10.5 Increases in Assessments . . . . . . . . . . . . . . . . . . . . . . . . 22 10.6 Special Assessments for Capital Improvements . . . . 23 10.7 Notice and Quorum for any Action Authorized Under Sections 10.5 and 10.6 . . . . . . . 23 10.8 Uniform Rate of Assessment . . . . . . . . . . . . . . . . . . . . . . 23 10.9 Date of Commencement of Annual Assessments: Due Dates . . . . . . . . . . . . . . . . . . . . . . . . 23 - 10. 10 Payment by Owners 24 10.11 Accounts . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . 24 10.12 Omission of Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . 25 10.13 Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 10. 14 Declarant Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 10.15 Lien Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 10. 16 Notice of Creation of Assessment Lien . . . . . . . . . . . 26 10. 17 Certificate of Assessment . . . . . . . . . . . . . . . . . . . . . . . 26 10. 18 Foreclosure of Assessment Lien; Attorney' s Fees and Costs . . . . . . . . . . . . . . . . . . . . . 26 10.19 Homestead Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 10.20 Curing of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 10.21 Termination of Utility Service . . . . . . . . . . . . . . . . . . 27 10.22 Remedies Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 10.23 Rights of Board - Waiver of Owners . . . . . . . . . . . . . . 28 ii Page 10.24 Purposes of Assessments 28 10.25 Assessment Deposit . o . . . . . . . . . . . . . . . . . . . . .-. . . . . . . 28 10.26 Continuing Liability for Assessments . . . . . . . . . . . . 29 10.27 Assessment for Private Road and Landscaping Maintenance . . . . . . . . . . . . . 0000 . : . . . . 29 ARTICLE 11: COMPLIANCE WITH DECLARATION . . . . . . . . . . . . . . . . . . 29 11 .1 Enforcement . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 11 .2 No Waiver of Strict Performance . . . . . . . . . . . . . . . . . 30 Q11.3 Right of Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ARTICLE 12: MORTGAGEE PROTECTION 31 to 12. 1 Priority of Mortgages 31 12.2 Effect of Declaration Amendments . . . . . . . . . . . . . . . . 31 12.3 Right of Lien Holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 12.4 Change in Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 12.5 Abandonment of Planned Unit Development Status 32 12.6 Change in Declaration, Bylaws of Ratio of Assessments . . . . . . . . . . . . . . . . . . . . . . . 32 12.7 Change in Manner of Architectural Review and Maintenance Within Project; Insurance and Use of Proceeds 32 12.8 Insurance . . 0 . . 00 . 0 . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . 33 12.9 Payments by First Mortgagees . . . . . . . . . . . . . . . . . . . . 33 12. 10 Copies of Notices 34 ` 12.11 Effect of Declaration Amendments . . . . . . . . . . . . . . . . 34 12.12 Inspection of Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 ARTICLE13: EASEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 13.1 Association Functions 35 13.2 Utility Easements 35 13.3 Access to Public Streets. . . 35 - 13.4 Encroachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 ARTICLE 14: TERM OF DECLARATION - COMPLIANCE WITH RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION . . . . . . . . . . . . . . . . . 36 ARTICLE 15: AMENDMENT OF DECLARATION 36 15 . 1 Declaration Amendment 36 15. 2 Tract Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 15.3 Amendments by Declarant 37 15.4 Amendments to Conform to Construction . . . . . . . . . . . 37 15.5 Amendments to Conform to Lending Institution Guidelines 37 iii Page ARTICLE16: PARTY WALLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 16.1 General Rules of Law Apply . . . . . . . . . . . . . . . . . . . . . . 38 16.2 Sharing Repair and Maintenance 0000 . . . . . . . . . . . . . . 38 16.3 Destruction by Fire or Other Casualty 38 16.4 Weatherproofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 16.5 Right to Contribution Runs with Land . . . . . . . . . . . . 38 01 ARTICLE 17: ARCHITECTURAL CONTROL, USE ETC. . . . . . . . . . . . . . . 39 17.1 Architectural Control Committee . . . . . . . . . . . . . . . . . 39 17.2 Sales Facilities of Declarant 40 LO17.3 Common Drive and Walks . . . . . . . . . . . 0 . . . . . . . . . . . . . . 41 17.4 Single Family Residential Use . . . . . . . . . . . . . . . . . . . 41 17.5 Alterations . . . . . . . . . . . 00 . . . . . . . . . . . . . . . . . . . . . . . . 41 17.6 Nuisances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 17.7 Restriction on Further Subdivision 42 17.8 Garbage and Trash Removal . . . . . . . . . . . . . . 0 . 000 . . . . 42 17.9 Pets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 T 17.10 Signs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 17.11 Rental Lots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 17.12 Zoning Regulations . . . . . . . . . . . . . . . . . 0 . . . . . 0 . 00 . . . 43 17.13 Setback Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 17.14 Hedges and Fences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 17.15 Business Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 17.16 Temporary Residence . . . . 0 . 0 . . . . . . 00 . . . . . . . . . . . . . . 44 17.17 Antenna and Aerial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -44 17 .18 Easement Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 17.19 Storage Clothesline 45 1 7.2 O Landscaping . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 17.21 Parking and Boat Storage 46 ARTICLE18: INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 18.1 Insurance Coverage 46 18.2 Owner' s Additional Insurance 48- 18.3 Insurance Proceeds 48 18.4 Additional Provisions 48 18.5 Reconstruction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 18.6 Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 ARTICLE 19: CONDEMNATION OF COMMON AREAS . . . . . . . . . . . . . . . . . 50 19.1 Consequences of Condemnation 50 19.2 Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 19.3 Complete Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 19.4 Partial Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 19.5 Reductions of Project Upon Partial Taking 0000 . . . 51 19.6 Reconstruction and Repair 52 iv Page ARTICLE 20: DAMAGE OR DESTRUCTION OF COMMON AREAS; RECONSTRUCTION . . . . . . . . . . . . . . . . . 52 20.1 Initial Board Determinations . . . . . . . . . . . . . . . . . . 0 . 52 20.2 Notice of Damage or Destruction 53 20. 3 Definitions: Restoration; Emergency Work 53 20.4 Restoration by Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 20.5 Limited Damage; Assessment Under $3,500 0000 . . . . . 54 20.6 Major Damage; Assessment over $3, 500 . 00 . 00 . 00 . 0 . 55 20. 7 Decision Not to Restore; Disposition . . . . . . . . 0000 56 20.8 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 ARTICLE 21: MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 21. 1 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 21. 2 Conveyances; Notice Required 57 21. 3 Remedies Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 i � 21.4 Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . . . . . 57 21.5 Joint and Several Liability . . . . . . . . . . . . . . . . . . . . . 58 21.6 Mortgagee' s Acceptance 58 21. 7 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 21.8 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 21.9 FHA VA Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 ARTICLE 22: PHASED DEVELOPMENT 59 22. 1 Development in Phases . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 22. 2 Assessments for Subsequent Phases 60 22. 3 Easements for Phased Development and Adjacent Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 22.4 Phased Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 22. 5 Liens Arising in Connection with Phases 61 22.6 Binding Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 22. 7 Limitation of Declarant' s Rights 62 ATTACHMENTS Exhibit A - Legal Description Exhibit B - Site Plan Exhibit C - Franchise Agreement v DECLARATION AND COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS FOR FALCON RIDGE RESIDENTIAL PARK A Planned Unit Development Including Condominiums THIS DECLARATION is made this _gLgday of r►Kur•z , 1985, by FALCON RIDGE ASSOCIATES, hereinafter referred to as b "Declarant." 11� This is the restatement of that certain Declaration and �J Covenants, Conditions, Restrictions and Reservations LO ( "Declaration" ) for Cedar Ridge Residential Park which was 00 recorded under King County Auditor' s File Number 8109180705 and amended of which said amendment to Declaration was filed under King County Auditor' s File No. 8404090613. This restated Declaration shall supercede in its entirety the above- referenced Declaration and amended Declaration. DESCRIPTION OF THE LAND A. Declarant owns certain real property located in the County of King, State of Washington, said property and improve- ments hereinafter collectively referred to as the "Project, " all of which is hereinafter more particularly described in Exhibit A attached hereto and incorporated herein. The Tract Map for the project is attached hereto as Ex- hibit B and is incorporated herein by this reference. All Com- mon Areas of the project are shown on said Tract Map. Access to the Project shall be along the roadway described in Exhibit C of the franchise agreement for street purposes. A copy of the Franchise Agreement is attached hereto as Exhibit C and incorporated herein by this reference. B. For the benefit of the Project and as an inducement to lenders and investors to make and purchase loans secured by Lots within the Tract, Declarant agrees to provide herein for a method of caring for the Lots and exteriors of Building and Common Areas within the project. NOW, THEREFORE, Declarant hereby declares that the Lots described herein shall be held, conveyed, encumbered, hypothe- cated, leased, rented, used, occupied and improved subject to the following uniform covenants, conditions, restrictions, limitations, reservations, grants of easement, rights, rights- of-way, liens, charges and equitable servitudes, all of which } are hereby declared, established, expressed and agreed: (1 ) to be for the benefit and protection of the Project, its desirability, value and attractiveness; (2) to be for the bene- fit of the Owners and mortgagees of the Lots in the Property; ( 3) to run with the land and be binding upon all parties having or acquiring any right, title or interest in the Property or any part thereof; (4) to inure to the benefit of every portion of the Project and any interest therein; and (5) to inure to be the benefit of and be binding upon each successor and assignee of interest of each owner and of Declarant. Any conveyance, transfer, sale, assignment, lease or sub- lease of a Lot in the Project, shall and hereby is deemed to incorporate by reference all provisions of this Declaration. The provisions of this Declaration shall be enforceable by Dec- larant, any Lot Owner, the Association, and any first mortgagee of any Lot. lf� ARTICLE 1 C� INTERPRETATION N 1 .1 Liberal Construction in The provision of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the operation and maintenance of the Project. _ 1 .2 Covenant Running With Land It is intended that this Declaration shall be opera- tive as a set of covenants running with the land, or equitable servitudes, binding on Declarant, its successors and assigns, all subsequent owners of the property, together with their grantees, successors, heirs, executors, administrators, devises or assigns. 1 . 3 Declarant is Original Owner Declarant is the original Owner of all Lots and Prop- erty and will continue to be deemed the Owner thereof except as conveyances or documents changing such ownership regarding specifically described Lots are filed of record . 1 .4 Captions Captions given to the various Articles and Sections herein are for convenience only and are not intended to modify or affect the meaning of any of the substantive provisions hereof. 2 Y 1.5 Definitions 1 .5 .1 "Association" shall mean the association of Lot Owners provided for -in—Article 5 and its successors and assigns. 1.5 .2 "Board" shall mean the Board of Directors of the Association provided for in Article 6. 1 .5.3 "Building" shall mean any residential struc- ture built upon a Lot, including but not limited to a "Residen- tial Unit" or "Townhouse." 1 .5.4 "Common Area" shall mean all real property (including the improvements thereto) owned by the Association for the common use and enjoyment of the Owners and shall in- clude all of the property described in Exhibit A and shown on Exhibit B less each of the Lots shown on Exhibit B. More spe- n cifically, the Common Area shall include, without limitation, Nopen space, all private roads and an R.V. storage area. The Common Area to be owned by the Association is shown on Ln Exhibit B and described in Article 2 hereof. 1 .5.5 "Declarant" shall mean the undersigned (being the sole Owner(s) , of the real property described in said Exhibit A hereof) and its successors and assigns if such successors or assigns should acquire more than one undeveloped Lot from the Declarant for the purpose of development. 1 .5.6 "Declaration" shall mean this declaration and any amendments thereto. 1 .5.7 "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision or planned unit development map of the Property with the exception of the Common Area. Ownership of a Lot shall include ownership of the Townhouse or Residential Unit and garage now or hereafter constructed on such Lot with the exception of ownership of a Multiple Residential Unit Lot described by Article 3. 1 .5.8 "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. 1 .5.9 "Mortgagee" shall mean the beneficial owner, or the designee of the beneficial owner, of an encumbrance on a Lot created by mortgage or deed of trust and shall also mean the vendor, or the designee of a vendor, of a real estate con- tract for the sale of a Lot. A mortgagee of the Project and a mortgagee of a Lot are included within the definition of mortgagee. 3 r 1 .5.10 "Mortgage Foreclosure" shall include a deed of trust sale, a deed given in lieu of such foreclosure or sale and a forfeiture of a real estate contract. 1 .5. 11 "Mortgagee of a Lot" shall mean the holder of a mortgage on a Lot, which mortgage was recorded simultaneous with or after the recordation of this Declaration. Unless the context requires otherwise, the term "mortgagee of a Lot" shall also be deemed to include the mortgagee of the Project. 1 .5. 12 "Mortgagee of the Project" shall mean the holder of a mortgage on the real property which this Declaration affects, which mortgage was recorded prior to the recordation of this Declaration. The term "mortgagee of the Project" does not include mortgagees of the individual Residential Units. A 1 .5.13 "Owner" shall mean and refer to the record CQ owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Property, and shall include any person of record holding a vendee' s interest under a real estate contract for the sale of a Lot. Any person or entity having such an interest merely as security for the performance of an obligation shall not be considered an owner. 1 .5. 14 "Person" shall include natural persons, partnerships, corporations, associations and personal representatives. 1 .5. 15 "Property" or "Premises" shall mean the real estate described in Exhibit A and all buildings, improvements, and structures thereon, including such additions thereto as may hereafter be brought within the justification of the association. 1 .5.16 "Residential Unit" or "Townhouse" shall mean that structure or part thereof designed and intended for use and occupancy as a residence by a single family. 1 .5. 17 "Tract Map" shall mean that diagram attached hereto as Exhibit B which depicts the lay-out of the Lots on the Property. 1 .6 Percentage of Mortgagees 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 Residential Unit, such mortgagee shall be deemed a separate mortgagee for each such first mortgage so held. 4 1.7 Inflationary Increase in Dollar Limits The dollar amounts specified in Articles 5, 11, 17 and 19 may, in the discretion of the Board, be increased pro- portionately by the increase in the consumer price index for the City of Seattle, Washington for All Urban Consumers, pre- pared by the United States Department of Labor for the base period, January 1, 1978, to adjust for any inflation in the value of the dollar . ARTICLE 2 OWNERSHIP OF COMMON AREAS The Common Areas within the property described in Uj Exhibit B, including private roadways, are hereby conveyed to rl the Association. The property so conveyed is more particularly described and shown as the entire parcel, less all individual Lots, on the plat of FALCON RIDGE RESIDENTIAL PARK, which plat GO was ,:recorded on December 18, 1984, at Volume 129 of Plats, page( s) 51 to 57, Auditor' s File No. 8412180849, records of King County. The Common Areas shall for all purposes be under the control, management and administration of the developer during the development period as determined in Article 5.2, and under the control, management and administration of the Asso- ciation after the development period. ARTICLE 3 MULTIPLE RESIDENTIAL UNIT LOTS 3 .1 Designated Multiple Residential Unit Lots Every Lot with the exception of Lots 6, 7, 16, and 81 shall contain no more than one Residential Unit. 3 .2 Multiple Unit Structures Structures built upon Lots 6, 7, 16, and 81 may con- tain more than one but not more than three Residential Units which shall be condominium apartments. 3 .3 Ownership of Multiple Residential Unit Lots Actual ownership interests of Multiple Residential Unit Lots and appurtenances thereto including but not limited to garages now or hereafter constructed on such Lot, shall be divided among the owners of the Residential Units upon said Lots in accordance with the Horizontal Property Regimes Act (RCW 64. 32 et seq. ) . 5 3.4 Moratorium on Multiple Residential Unit Lots It is hereby agreed that each lot with the exception of Lots 6, 7, 16, and 81 shall never contain more than one Residential Unit. 3.5 Purposes for Which Owner of Residential Unit- Shall be Deemed Owner of Lot For the purposes of this Declaration, owners of Residential Units now or hereafter constructed on Multiple Residential Unit Lots shall be deemed to have the same rights and obligations as owners of Lots as defined by Article 1, Provision 1.5.7, such that the words "Lot" and "Owner" shall be 4 read to mean "Residential Unit" and "Residential Unit Owner", W respectively, when consistent with the objective of this : � provision. Le GO ARTICLE 4 PROPERTY RIGHTS 4.1 Owners' Easements of Enjoyment Every Owner shall have a non-exclusive right and easement, in common with all Owners, of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a) the right of the' Association to charge reason- able admission and other fees for the use of any recreational facility situated upon the Common Area; (b) the right of the Association to suspend the vot- ing rights and right to use of the recreational facilities by an Owner for any period during which any assessment against his Lot remains unpaid; and for a period not to exceed sixty (60) days for any infraction of its published rules and regulations; (c) the right of the Association to dedicate or transfer all or any part of the Common Area, including ease- ments across said properties, to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the members of the Association. No such dedication or transfer shall be effective unless an instrument agreeing to such dedication or transfer signed by two-thirds of the Owners has been recorded and the provisions of Article 11 hereof have been observed; (d) the right of individual Owners to the use of parking spaces as provided in Article 4. 3. 6 4.2 Delegation of Use Any Owner may delegate, in accordance with the By- Laws, his right of enjoyment to the Common Area and facilities to the members of his family, his tenants, or contract pur- chasers who reside on the Property. 4.3 Parking Rights Ownership of each Lot shall entitle the Owner or Owners thereof to use in common with other Owners all parking spaces within the Common Area. Temporary space assignments may r� be made from time to time by Declarant or the Board, if deemed appropriate by the Board under the circumstances. This parking Ln shall be in addition to the garage located on each Lot. Each 4 Owner and his guests shall also be entitled to use on a r1 periodic basis any and all remaining parking spaces located within the Common Area, subject to such rules as the L9 Association may promulgate from time to time. Parking spaces CA are restricted to use for parking of operative automobiles. Other items, equipment or vehicles may be parked or kept there- in only subject to the rules and regulations of the Board. The Board shall require removal of any inoperative, unsightly or improperly licensed vehicle or other equipment at the expense of the Owner thereof. ARTICLE 5 OWNER' S ASSOCIATION 5 .1 Establishment There is hereby created an association to be called FALCON RIDGE RESIDENTIAL PARK ASSOCIATION (referred to herein- after as the "Association" ) . 5 . 2 Form of Association The Association shall be' a nonprofit corporation formed and operated pursuant to Title 24, Revised Code of Washington. 5. 3 Membership 5 .3. 1 Qualification. Each Owner of a Lot in the Project ( including Declarant) shall be a member of the Associa- tion and shall be entitled to one membership for each Lot so owned; provided, that if a Lot has been sold on contract, the contract purchaser shall exercise the rights of the Owner for ur oses of the Association, this Declaration and the Bylaws, laws,P Y except as hereinafter limited, and shall be the voting representative unless otherwise specified. Ownership of a Lot 7 shall be the sole qualification for membership in the Association. 5 .3.2 Transfer of Membership. The Association mem- bership of each Owner including Declarant) shall be appur- tenant 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 said Lot and then only to the transferee of title to such Lot. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Lot shall operate automatically to transfer the membership in the Association appurtenant thereto to the new Owner thereof. 5 .4 Voting 5 .4.1 The Association shall have two classes of vot- ing membership: ri ri Class A. Class A members shall be all Owners, with CQ the exception of the Declarant, and shall be entitled to one `, vote for each Lot owned. ltd Class B. The Class B member( s) shall be the Declar- ant and shall be entitled to three (3 ) votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (a) when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership, or (b) the date when Declarant' s management powers terminate, as provided in Section 6.2. In determining whether any given proposition shall have been approved by the membership, the total number of Class A and Class B votes shall be combined and the appropriate percentage applied against that combined number. 5 .4.2 Number of Votes. Except as provided above and subject to the provisions of Article 3, the total voting power of all Owners shall equal the number of Lots at any given time. The total number of votes available to Owners of any one Lot shall be one vote. 5 .4.3 Voting Owner. There shall be one (1 ) voting representative of each Lot. Declarant shall be considered an "Owner" as that term is used herein, and shall be the voting representative, with respect to any Lot or Lots owned by Declarant. If a person (including Declarant) owns more than one Lot, he shall have the votes for each Lot owned. The 8 voting representative shall be designated by the Owner or Owners of each Lot by written notice to the Board (see Article 6) , and need not be an Owner. The designation shall be revocable at any time by actual notice to the Board from a party having an ownership interest in a Lot, or by actual notice to the Board of the death or judicially declared incom- petence of any party with an ownership interest in - the Lot. This power of designation and revocation may be exercised by the guardian of a Lot Owner and the administrators or executors of an Owner' s estate. Where no designation is made, or where a designation has been made but is revoked and no new designation has been made, the voting representative of each Lot shall be the group composed of all of its Owners. 5 .4.4 Joint Owner Disputes. The vote for any Lot must be cast as a single vote, and fractional votes shall not 1.3 in be allowed. In the event that joint Owners are unable to agree ri among themselves as to how their vote or votes shall be cast, they shall lose their right to vote on the matter in question. In the event more than one vote is cast for a particular Lot none of said votes shall be counted and said votes shall be deemed void. 5 .4.5 Pledged Votes. If an Owner is in default un- der a first mortgage on the Lot for ninety (90) consecutive days or more, the Mortgagee thereof shall automatically be authorized to declare at any time thereafter that the Lot Owner has pledged his or her vote on all issues to the Mortgagee dur- ing the continuance of the default. If the Board has been not- ified of any such pledge to a Mortgagee, or in the event the record Owner or Owners have otherwise pledged their vote re- garding special matters to a Mortgagee under a' duly recorded Mortgage or to the vendor under a duly recorded real estate contract, only the vote of such Mortgagee or vendor will be recognized in regard to the special matters upon which the vote is so pledged. Amendments to this subsection shall only be ef- fective- upon the written consent of all the voting Owners and their respective Mortgagees and vendors, if any. 5 .5 Meetings, Audits, Notices -of Meetings 5.5.1 Annual Meetings, Audits. The organizational meeting of the Association shall be held not later than two (2) months after the date of the termination of management by Declarant as provided in Section 6.2. There shall be an annual meeting of the Owners on the same day of the month each year thereafter, at such reasonable place and time as may be desig- nated by written notice of the Board delivered to the Owners no less than ten (10) days prior to the date fixed for said meeting. At the annual meeting, there shall be presented an audit of the common expenses, and the allocation thereof to each Owner, itemizing receipts and disbursements for the pre- ceding fiscal year, and there shall also be presented the 0 9 estimated common expenses for the coming fiscal year. The Board at any time, or by written request of Owners having at least forty percent (40%) of the total votes, may require that an audit of the Association and management books be presented at any special meeting. A Lot Owner, at his own expense, may, at any reasonable time, make an audit of the books of the Board and Association. 5.5 .2 Special Meetings. Special meetings of the Owners may be called at any time for the purpose of considering matters which, by the terms of this Declaration, require the approval of all or some of the Owners, or for any other reason- able purpose. Such meeting shall be called by written notice of the president of the Association upon the decision of the Pj president, or after request signed by a majority of a quorum of lf� the Board, or by written request by the Owners having at least Q forty percent (40%) of the total votes which notice shall be e-i delivered not less than ten (10) days prior to the date fixed for said meeting to all members. The notice shall specify the v date, time and place of the meeting and, in general, the matters to be considered. 5 .5.3 Quorum Requirements for Association Meeting. At all meetings of the Owners, fifty-one percent 51$ of the Owners, present in person or by proxy, shall, constitute a quorum. A majority of Owners present and entitled to vote, either in person or by proxy, shall be sufficient for the pas- sage of any motion or the adoption of any resolution, except in connection with amendment or repeal of this Declaration. - If the required quorum is not present, another meeting may be called subject to the requirement of written notice sent to all members at least ten (10) days in advance of such meeting, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum for the preceding meeting. In the absence of a quorum at a members' meeting, a majority of those resent in person or b proxy may adjourn the meeting to P P Y P Y Y 7 9 another time but may not transact any other business. An ad- journment for lack of a quorum shall be to a date not more than thirty (30) days from the original meeting date. 5 .5.4 Bylaws of Association. (a) Adoption of Bylaws. Bylaws for the admin- istration of the Association and Property, and for the intent of this Declaration, shall be adopted by the Board of Directors at a regular or special meeting. Notice of the time, place and purpose of such meeting shall be delivered to each Owner at least ten (10) days prior to such meeting. Amendments to the Bylaws may be adopted by the Board at a regular or special meeting similarly called. (b) Bylaws Provisions. The Bylaws shall be deemed to contain provisions identical to those provided in 10 this Declaration, and may contain supplementary, not incon- sistent, provisions regarding the operation of the Development and administration of the Property. ARTICLE 6 MANAGEMENT OF THE ASSOCIATION 6.1 Administration of the Development The Owners covenant and agree that the administration of the development shall be in accordance with the provisions of this Declaration and the Bylaws of the Association which are ymade a part hereof. rq 6 .2 Management b Declarant N g y During the development period, which shall extend from the date hereof until a date two years from the date of the first conveyance of the first Lot, or a date not more than one hundred twenty (120) days from the date of which Declarant shall have closed the sales of seventy-five percent (75%) of the Lots, or the date on which Declarant elects to permanently relinquish all of its authority under this Section 6.2 by writ- ten notice to all Owners, whichever date first occurs, the Property shall be managed and the Association organized as follows, in the exercise of the sole discretion of the Declarant: 6.2.1 So long as no temporary board is then entitled to exercise management authority under Section 6.2.2, Dec- larant, or a managing agent selected by Declarant, shall have the power and authority to exercise all the rights, duties and functions of the Board, including but not limited to enacting reasonable administrative rules, contracting for re- quired services, property and insurance, and collecting and ex- pending all assessments and Association funds. The Declarant, or any such managing agent, shall have the exclusive right to contract for all goods and services,, payment for which is to be made from any common or maintenance funds. 6.2.2 Declarant may at such times as Declarant deems appropriate select a temporary board of adequate size to handle the affairs of the Association, comprised of persons who own or are purchasers of Lots, or are officers of corporations, trusts, partnerships or other entities owning or purchasing such Lots. This temporary board shall have the full authority and all rights, responsibilities, privileges and duties to man- age the Premises under this Declaration and Bylaws, and shall 11 a be subject to all provisions of the Declaration and Bylaws; provided, that, after selecting any such temporary board, Dec- larant in the exercise of its sole discretion may at any time terminate such temporary board, and reassume its management authority under Section 6. 2.1 or select a new temporary board under this Section 6.2.2. 6.2. 3 These requirements and covenants are made in order to assure that the Premises will be adequately administered in the initial phases of development, and to assure an orderly transition to Association operations. 6.3 Management by Elected Board of Directors At the expiration of Declarant' s management authority 1O under Section 6.2, administrative power and authority shall 0 1n vest in a Board of Directors elected from among the Lot Owners. � The number of directors shall bespecified in the Bylaws and shall be sufficient to adequately handle the affairs of the 11� Association. The Board may delegate all or any portion of its G� administrative duties to a manager, managing agent, or officer of the Association or in such manner as may be provided in the Bylaws. All Board positions shall be open for election at said organizational meeting. The Board shall elect from among its members, a president who shall preside over meetings of the Board and the meetings of the Association. 6 .4 Authority and Duties of the Board 6.4.1 The Board (or the Declarant or Declarant' s managing agent as provided in Section 6. 2 hereof) , for the benefit of the Project and the Owners, shall enforce the pro- visions of this Declaration and the Bylaws, shall have all powers and authority permitted to the Board under this Declara- tion, and shall acquire and shall pay for out of the common expense fund hereinafter provided for, all goods and services requisite for the proper functioning of the Project, including but not limited to the following: (a) Water, sewer, garbage collection, elec- trical, telephone, gas and any other necessary utility service, including utility easements, as required for the Common Area. I.f one or more Lots or the Common Areas are not separately metered, the utility service may be paid as a common expense, and the Board may by reasonable formula allocate a portion of such expense to each such Lots involved as a portion of its common expense. (b) Policies of insurance or bonds providing coverage for fire and other hazard, liability for personal in- jury and property damage, and for fidelity of Association officers and other employees, as the same are more fully required hereafter and in the Bylaws. 12 s (c) The services of persons or firms as re- quired to properly manage the affairs of the development to the extent deemed advisable by the Board as well as such other personnel as the Board shall determine are necessary or proper for the operation of the Common Area, whether such personnel as the Board shall determine are necessary or proper for the operation of the Common Area, and whether such personnel are employed directly by the Board or are furnished by the manager or management firm or agent. (d) Legal and accounting services necessary or proper in the operation of the Association affairs, adminis- tration of the Common Area, or the enforcement of this Qj Declaration. 0 � (e) Painting, maintenance, repair and all land- r-i scaping and gardening work for the Common Area, and such fur- nishings and equipment for the Common Area as the Board shall determine are necessary and proper, and the Board shall have Gp the exclusive right and duty to acquire the same for the Common Area. ( f) Any other materials, supplies, labor, ser- ea vices, maintenance, repairs, structural alterations, insurance, taxes or assessments which the Board is required to secure by law, or which in its opinion shall be necessary or proper for the operation of the Common Area or for the enforcement of this Declaration; provided that if for any reason such materials, supplies, labor, services, maintenance, repairs, structural alterations, insurance, taxes, or assessments are provided for particular Lots or their Owners, the cost thereof shall be specially charged to the Owner of such Lots. (g) Maintenance and repair of any Lots or Unit and its appurtenances, if such maintenance or repair is reason- ably necessary in the discretion of the Board to protect the Common Area or preserve the appearance and value of the development, and the Owner or Owners of said Lots or Unit have failed or refused to perform said maintenance or repair within a reasonable time after written notice of the necessity of said maintenance or repair has been delivered by the Board to the Owner or Owners; provided that the Board shall levy a special charge against the Lot of such Owner or Owners for the cost of such maintenance or repair. Board may also a an amount necessary (h) The y pay y y to discharge any lien or encumbrance levied against the entire property or any part thereof which is claimed to or may, in the opinion of the Board, constitute a lien against the Property or against the Common Areas, rather than merely against the inter- est therein or particular Owners. Where one or more Owners are responsible for the existence of such lien, they shall be jointly and severally liable for the cost of discharging it, 13 and any costs and expenses (including court costs and attorney fees) incurred by the Board by reason of such lien or liens shall be specially charged against the Owners and the Lots responsible to the extent of their responsibility. (i) The Board' s power hereinabove enumerated shall be limited in that the Board shall have no authority to acquire and pay for out of the maintenance fund capital addi- tions and improvements (other than for purposes of restoring, repairing or replacing portions of the Common Areas) having a total cost in excess of Five Thousand Dollars ( $5, 000) , without first obtaining the affirmative vote of the Owners holding a majority of the voting power present or represented at a meet- ing called for such purpose, or if no such meeting is held, then the written consent of voting Owners having a majority of the voting power; provided that any expenditure or contract for H each capital additions or improvements in excess of Twenty-five Thousand Dollars ($25,000) must be approved by Owners having not less than seventy-five percent (75%) of the voting power. ( j ) Nothing herein contained shall be construed to give the Board authority to conduct an active business for profit on behalf of all of the Owners or any of them. (k) The Board shall have the exclusive right to contract for all goods and services, payment of which is to be made from the maintenance fund. The Board may delegate such powers subject to the terms hereof. (1) The Board may, from common funds of the Association, acquire and hold in the name of the Association, for the benefit of the Owners, tangible and intangible personal property and interests therein, and may dispose of the same by sale or othewise; and the beneficial interest in such Property shall be owned by the Association and such Property shall thereafter be held, sold, leased, rented, mortgaged or other- wise dealt with for the benefit of the common fund of the Association as the Board may direct. The Board shall not, however, in any case acquire by lease or purchase real or per- sonal property valued in excess of Five Thousand Dollars ($5,000) except upon a majority vote of the Owners, or valued in excess of Twenty-Five Thousand Dollars ($25, 000) except upon a seventy-five percent (75%) affirmative vote of the Owners, in the manner specified in Subsection 6.4.1(1) . (m) The Board and its agents or employees, may enter any Lot when necessary in connection with any mainten- ance, landscaping or construction for which the Board is responsible or in the event of emergencies. Such entry shall be made with as little inconvenience to the Owners as practic- able, and any damage caused thereby shall be repaired by the Board out of the common expense fund if the entry was due to an emergency or for the purpose of maintenance or repairs to 14 i common areas where the repairs were undertaken by or under the direction or authority of the Board except: If the repairs or maintenance were necessitated by or for the Lot entered or its Owners, or requested by its Owners, the costs thereof shall be specially charged to such Lot. (n) Each Owner, by the mere act of becoming an Owner or contract purchaser of a Lot, shall irrevocably appoint the Association as his attorney-in-fact, with full power of substitution, to take such action as reasonably necessary to promptly perform the duties of the Association and Board here- under, including but not limited to the duties to maintain, repair and improve the Property, to deal with the Property upon �j damage or destruction, and to secure insurance proceeds. CD 6.4.2 In the discharge of its duties and the exer- cise of its powers as set forth in Section 6.4, but subject to V the limitations set forth therein, the Board may borrow funds on behalf of the Association and to secure the repayment thereof encumber, subject to the limitations set forth in this Declaration, the Common Areas and facilities and Association' s funds. 6.5 Board Organization and Operation 6.5.1 Election of Board of Directors, Cumulative Voting Feature and Term of Office. The members of the first elected Board the first Board elected by the Owners at the or- ganizational meeting referred to in Section 5.5.1) shall serve for at least a one (1 ) year term of office; provided, that at at all times the voting procedures shall assure that the expir- ation dates for the term of the initial Board members shall be staggered. 6.5.2 Vacancies. Vacancies in the Board caused by any reason other than the removal of a Board member by a vote of the Association shall be filled by vote of the majority of the remaining Board members, even though they may constitute less than a quorum; and each person so elected shall be a Board member until a successor is elected at the next annual meeting of the Association. 6.5.3 Removal of Board Members. At any regular meeting or at any special meeting called for that purpose, any one (1 ) or more of the Board members may be removed with or without cause by a majority of all of the Lot Owners, and a successor may then and there be elected to fill the vacancy thus created. Any Board member whose removal has been so pro- posed by the Owners shall be given an opportunity to be heard at the meeting. Notwithstanding the above, until the organiza- tional meeting referred to in Section 5.5.1, only Declarant shall have the right to remove a Board member. 15 6.5.4 Organizational Meeting. The first meeting of a newly elected Board shall be held immediately following the annual organizational meeting of the Association, and no notice shall be necessary to the newly elected Board members in order legally to constitute such meeting. 6 .5.5 Regular Meetings. Regular meetings _ of the Board may be held at such time and place as shall be deter- mined, from time to time, by a majority of the Board members, but at least two (2) such meetings shall be held during each fiscal year and one (1 ) such meeting shall be held immediately following the annual meeting of Owners.' Notice of regular meetings of the Board shall be given to each Board member, A personally or by mail, telephone or telegraph, at least ten Ll (10) days prior to the day named for such meeting. ti p6.5.6 Special Meetings. Special meetings of the Board may be called by the President on ten (10) days notice to each Board member, given personally, or by mail, telephone or telegraph, which notice shall state the time, place (as here- inabove provided) and purpose of the meeting. Special meetings of the Board shall be called by the President or Secretary in like manner and on like notice on the written request of at least two (2) Board members. 6.5.7 Waiver of Notice. Before, at or after any meeting of the Board, any Board member may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Board member at any meeting of the Board shall be a waiver of notice by him of the time and place thereof. If all the Board members are present at any meeting of the Board, no notice shall be re- quired and any business may be transacted at such meeting. 6 .5.8 Quorum. At all meetings of the Board, a. majority thereof shall constitute a quorum for the transaction of business, and the acts of the majority of the Board members present at a meeting at which quorum is present shall be the acts of the Board. If, at any meeting of the Board, there be less than a quorum present, the majority of those present may adjourn the meeting from time to time. An adjournment for lack of a quorum shall be to a date not more than thirty (30) days from the original meeting date. At any such rescheduled meeting, any business which might have been transacted at the meeting as originally called may be transacted without further notice. 6.5.9 Fidelity Bonds. The Board may require that all officers and employees of the Association handling or re- sponsible for Association funds shall furnish adequate fidelity bonds. The premiums on such bonds shall be paid by the Asso- ciation. 16 ARTICLE 7 LIMITATION OF LIABILITY 7 .1 Liability for Utility Failure, etc. Except to the extent covered by insurance obtained by the Board pursuant to Article 18, neither the Association nor the Board (or the Declarant or Declarant' s managing agent exer- cising the powers of the Board) shall be liable for: any fail- ure of any utility or other service to be obtained and paid for by the Board; or for injury or damage to person or property caused by the elements, or resulting from electricity, water, rain, dust or sand which may lead or flow from outside or from Qj any parts of the buildings, or from any of its pipes, drains, 9 conduits, appliances, or equipment, or from any other place; or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance or orders of a governmental . oauthority. No diminution or abatement of common expense assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such in- convenience or discomfort. 7 .2 No Personal Liability So long as a Board member, or Association committee member, or Association officer, or Declarant or Declarant' s managing agent exercising the powers of the Board, has acted in good faith, without willful or intentional misconduct, upon the basis of such information as may be possessed by such person, then no such person shall be personally liable to any Owner, or to any other party, 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 section shall not apply where the consequences of such act, omission, error or negligence are covered by insurance obtained by the Board pursuant to Article 17. 7 . 3 Indemnification of Board Members. Each Board member or Association committee member, or Association Officer, or Declarant or Declarant' s managing agent exercising the powers of the Board, shall be indemnified by the Owners against all expenses and liabilities, including attor- ney' s fees, reasonably incurred by or imposed in connection with any proceeding to which he may be a party, or in which he may become involved, by reason of being or having held such position at the time such expenses or liabilities are incurred, except in such cases wherein such person is adjudged guilty of willful misfeasance or malfeasance in the performance of his duties; provided, that, in the event of a settlement, the indemnification shall apply only when the Board approves such 17 s settlement and reimbursement as being for the best interests of the Association. 7.4 Indemnification of City of Renton The FALCON RIDGE RESIDENTIAL PARK ASSOCIATION, INC. , shall, during the term of the franchise granted pursuant to Renton Ordinance No . 3554 set forth as Exhibit C, indemnify and hold harmless the City of Renton from any and all liability of whatever kind or nature arising from or in connection with the construction, maintenance, usage or day to day operation of the private roadway described in Exhibit C, including any injury to �j persons or property, except where such liability or injury arises as the sole and proximate result of the negligence of to the City of Renton or of its agents or employees. rl ARTICLE 8 ll? GO OBLIGATIONS OF OWNERS 8. 1 In General Each Owner shall always endeavor to cooperate for the accomplishment of the purposes for which the Project was built and each Owner shall comply strictly with all provisions of the Declaration. 8. 2 Specific Duties Each Owner shall maintain his or her Lot, including both the interior and the exterior of the Residential Unit. Each Owner shall also maintain all other improvements of the Lot, including the yard, if any, in a good clean, attractive and sanitary condition. In the event that an owner fails to maintain the exterior of the Residential Unit or any other improvement on the Lot, the Board may, after giving the Owner 30 days notice, enter the lot, repair and maintain the Unit or - Lot and the cost of such maintenance or repair shall be added to and become part of the assessment the lot is subject to. 8. 3 Restrictions on Storage. No Owner shall himself store or allow any tenant to store any trailers, boats, motor homes, recreational vehicles or any disabled or inoperable motor vehicles on the premises for more than forty-eight (48) consecutive hours. Violations thereof shall subject such vehicles to public impound, all at the expense of the Owner thereof. 18 4 ARTICLE 9 OBLIGATION OF THE ASSOCIATION 9.1 Duties of Association The Association, through its Board of Directors, shall have the following duties: (a) To collect and administer the Association as- sessments and expenditures and to carry out the Property maintenance obligations of the Association and to employ a pro- fessional management firm to do so. (b) Pursuant to a franchise agreement with the City 1J� of Renton, which agreement is attached hereto as Exhibit C and incorporated herein by this reference, the Association shall be responsible for all costs of all maintenance of the access street identified on Exhibit C and shall maintain the said street in a good state of repair in compliance with all the applicable ordinances, rules and regulations. The Homeowner' s Association shall keep and protect and save the City of Renton and its employees, from and against any liabilities, loss, cost, damage, whether personal or prop- erty or expense of any type of nature which may accrue to the City by reason of construction, maintenance, repair or alter- ation of the Street by the Association. (c) To require that the exterior surfaces of all Residential Units and all portions of the Common Area, in a good, clean, attractive and sanitary condition. The Association shall be empowered, upon thirty days written notice to any Owner, to enter any Lot and maintain or repair the improvements or yard thereof where such have not been adequately maintained by the Owner as required in Section 8. 2. In the event the need for maintenance or repair of a Lot, Residential Unit or other improvement is caused through neglect P g g or through willful or negligent acts of its Owner or through the willful or negligent acts of the family guests or invitees of the Owner of the Lot or Unit needing such maintenance or repair, the cost of such maintenance shall be added to and become part of the assessment which the Lot is subject. , (d) To enforce the applicable provisions of the Dec- laration for the management and control of the Project. (e) To contract for materials and/or services to carry out its responsiblities provided herein. ( f) To enter, after giving at least one day' s notice to the Owner except where different notice is required by this Declaration, upon any privately owned Lot or Building where 19 necessary in connection with its duties hereunder. No notice shall be required if entrance is necessary in order to protect the property from immediate damage or destruction. (g) To prepare or cause to be prepared, a balance sheet and an operating (income) statement for the Association, copies of which shall be distributed to each of the Owners as follows: (1 ) a balance sheet as of an accounting date which is the last day of the month closest in time to six (6) months from the date of closing of the first sale of a Lot in the Pro- ject which shall be distributed within thirty (30) days of the accounting date; and (2) an operating statement for the period from the date of the first closing to the said accounting date, Qj which shall be distributed within thirty (30) days after the V) accounting date. This operating statement shall include a in schedule of assessments received and receivable, identified by the number of the Lot and the name of the Owner so assessed; C12 ( 3) a balance sheet as of the last day of the Association' s `=P fiscal year and an operating statement for said fiscal year, co which shall be distributed within ninety (90) days after the close of the fiscal year. An external audit shall be prepaid annually by an independent public accountant with ninety (90) days following the end of each fiscal year. (h) To establish and collect regular monthly assess- ments to defray expenses attributable to carrying out its duties hereunder and to maintain an adequate reserve fund for the maintenance, repair and replacement of those portions of the Common Areas or facilities which must be maintained, .re- paired or replaced on a periodic basis, which reserve shall be funded by the above monthly assessments. (i) To contract for trash collection, water and electrical service for the Lots on terms as set forth by the Board or appropriate Government agencies. ( j ) Any professional management body selected by Declarant or by the initial Board prior to the organizational meeting shall be employed to manage only until the first annual Owners' meeting, at which time the continuance of the same or the selection of another body or agent shall be determined by majority vote of the Owners. Subject to the provisions of Article 11 hereof, neither Declarant nor its agent nor the Board shall enter into any such contract which binds the Association for a period in excess of one year. 9 .2 Power of Association In addition to the duties of the Association, as specified herein, and the powers of the Association stated elsewhere in this Declaration, the Association, acting through its Board, shall have the power to do all other things which may be deemed reasonably necessary to carry out its duties and 20 the purposes of this Declaration including, but not limited to, obtaining of appropriate insurance and bonds, and the adoption of additional bylaws and rules and regulations governing the Association and Owners. In the event of conflict between this Declaration and any such additional bylaws or rules and regula- tions, the provisions of this Declaration shall prevail . ARTICLE 10 COMMON EXPENSES AND ASSESSMENTS if 10.1 Creation of the Lien and Personal Obligation of til Assessments The Declarant, for each Lot owned within the Proper- ties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Asso- ciation: (1 ) annual assessments or charges, and (2) special assessments for capital improvements such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, costs, and reasonable attorney' s fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with interest, costs, and reasonable attorney' s fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The per- sonal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them. 10.2 Purpose of Assessments The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety, and welfare of the residents in the Properties and for the improve- ment and maintenance of the Common Area including the private roadway and adjacent landscaping more particularly described in Article 10.27 below. 10.3 Maximum Annual Assessment Until January 1 of the year immediately following the conveyance of the first Lot to an Owner or until the commence- ment of the next fiscal year as Declarant may determine, the maximum annual assessment shall be Twenty Dollars ($20.00) per Lot. 10.4 Estimated Expenses Within sixty (60) days prior to the beginning of each calendar year or such other fiscal year as the Board may adopt, 21 the Board: shall estimate the charges including common ex- penses and any special charges for particular Lots to be paid during such year; shall make provision for creating, finding and maintaining reasonable 'reserves for contingencies and operations, as well as for maintenance, repair, replacement, and acquisition of Common Areas and Facilities; and shall take into account any expected income and any surplus available from the prior year' s operating fund. Without limiting the -general- ity of the foregoing but in furtherance thereof, the Board n shall create and maintain from regular monthly assessments a reserve fund for replacement of those Common Areas or elements n which can reasonably be expected to require replacement prior to to the end of the useful life of the Unit. The Board shall T4 calculate the contributions to said reserve fund so that there are sufficient funds therein to replace each Common Area or nelement covered by the fund at the end of the estimated useful Go life of each such Common Area. The Declarant or initial Board may at any suitable time establish the first such estimate. If the sum estimated and budgeted at any time proves inadequate for any reason (including nonpayment for any reason of any Owner' s assessment) , the Board may at any time levy a special assessment, which shall be assessed to the Owners in like pro- portions. However, on any proposed special assessment in any fiscal year, the Board may not, without the vote or written assent of a majority of the members, other than Declaration, levy special assessments to defray the costs of any action or undertaking on behalf of the Association which in the aggregate exceeds five percent (5%) of the budgeted gross expenses of the Association for that fiscal year. The provisions herein with respect to special assessments do not apply in the case where the special assessment against a member is a remedy utilized by the Board to reimburse the Association for costs incurred in bringing the member and his Building and/or Lot into compliance with the provisions of this Declaration. 10.5 Increases In Assessments (a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner or the commencement of the next fiscal year, the maximum annual as- sessment may not, without a vote of the membership as provided below, be increased above the maximum assessment for the pre- vious year by more than the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for the Seattle Metropolitan area, All Items base year 1967. (b) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner or the commencement of the next fiscal year, the maximum annual assessment may be increased above the amount provided in Sub- paragraph (a) above by a vote of two-thirds (2/3 ) of each class 22 a of members who are voting in person or by proxy, at a meeting duly called for this purpose. (c) The Board of Directors may fix the annual assessment at an amount not in excess of the maximum. 10.6 Special Assessments for Capital Improvements In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construc- tion, reconstruction, repair or replacement of a capital im- provement upon the Common Area, including fixtures and personal property related thereto, provided that any such assessment Nshall have the assent of two-thirds (-2-73—) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose. 10.7 Notice and Quorum for Any Action Authorized Under Sections 10.5 and 10.6 Written notice of any meeting called for the purpose of taking any action authorized under Section 10.5 or 10.6 shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (60%) of all the votes of each class of membership shall constitute a quorum. If *the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the re- quired quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. 10.8 Uniform Rate of Assessment Both annual and special assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly basis, except where the special assessment against a member is a remedy utilized by the Board to reimburse the Association for costs incurred in bringing the member or his Building and/or Lot into compliance with the provisions of this Declaration. 10.9 Date of Commencement of Annual Assessments: Due Dates The annual assessments provided for herein shall com- mence as to all Lots on the first day of the month following the conveyance of the Common Area. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates 23 shall be established by the Board of Directors. The Associa- tion shall, upon demand, 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 is binding upon the Associa- tion as of the date of its issuance. 10.10 Payment by Owners Each Owner shall be obligated to pay his share of common expenses and special charges made pursuant to this Article to the treasurer for the Association in equal monthly to installments on or before the first day of each month during such year, or in such other reasonable manner as the Board shall designate. Assessments for each Lot Owner shall begin on Its the date said Owner closes the transaction in which he acquires right, title or interest in the Lot. Assessments for the ini- tial month shall be prorated if closing occurs on other than the first of the month. Any assessment or charge which remains unpaid for at least thirty (30) days shall bear interest at the rate of ten percent (10%) from due date until paid. In addi- tion, the Board may impose a late charge in an amount not exceeding twenty-five percent (25%) of any unpaid assessment or charge which has remained delinquent for more than fifteen (15) days. The budget may be reviewed and revised by the member- ship at any annual meeting, or any special meeting called for such purpose, but if not so reviewed or if no change is made, shall be deemed approved. 10.11 Accounts The Board shall require that the Association maintain a commercial bank account. Each month the Board shall deposit assessments collected to the account. All such assessments and charges shall be collected and held in trust for, and admin- istered and expended for the benefit of, the Owners. The Board shall have exclusive control of said account and shall be re- sponsible to the Owners for maintenance of accurate records thereof at all times. No withdrawal shall be made from said account except to pay for the charges and expenses for the com- mon benefit of all Owners. The Board shall require that the Association maintain sep- arate accounts for current operations, reserves, and a special separate escrow reserve account for payment of insurance. Each month the Board shall first deposit to the insurance reserve account that portion of the common expense assessment necessary to pay at least one-twelfth (1/12th) of the total cost of all of the insurance policies provided regarding the development and such insurance reserve account shall be held separately and 24 inviolate until utilized for payment of other expenses or de- posited or credited to other accounts. All such assessments and charges shall be collected and held in trust for, and administered and expended for the benefit of, the Owners. 10.12 Omission of Assessment The omission by the Board or the Association before the expiration of any year to fix the estimate for assessments and charges hereunder for that or the next year, shall not be 7 deemed a waiver or modification in any respect of the pro- ' tali visions of this Declaration, or a release of the Owner from the obligation to pay the assessments and charges, or any install- C14 ment thereof for that or any subsequent year; but the assess- ment and charge fixed for the preceding year shall continue un- Q3 til a new assessment or charge is fixed. 10.13 Records The Board shall cause to be kept detailed and accurate records of the receipts and expenditures of the Asso- ciation, specifying and itemizing the maintenance and repair expenses and any other expense incurred. Such records and any resolutions authorizing the payments involved shall be avail- able for examination by any Owner at convenient hours of week days. 10.14 Declarant Liability The assessments provided for in this Declaration shall be imposed on Lots owned by Declarant beginning on the day the first Lot sale closes on the same basis as imposed on all other Lots, regardless of whether Declarant-owned Lots are vacant or have been sold, leased or rented. During such time as garbage collection charges and any other utility or service charges are based on the number of occupied Lots any Lots owned by Declarant and not occupied shall be exempt from assessment for such charges; this exemption for the Declarant shall be limited to one (1 ) year from the close of the first sale of a Lot. 10.15 Lien Indebtedness In the event any monthly assessment or special charge attributable to a particular Lot remains delinquent for more than thirty (30) days, the Board may, upon fifteen (15) days written notice to the Owner of such Lot, accelerate and demand immediate payment of all, or such portion as the Board deter- mines, of the monthly assessments and special charges which the Board reasonably determines will become due during the next succeeding twelve (12) months with respect to such Lot. Each monthly common expense assessment and each special charge shall be joint and several personal debts and obligations of the Owner of Lots for which the same are assessed or charged as of 25 the time the assessment or charge is made and shall be collect- ible as such. The amount of any assessment or charge, whether regular or special, assessed or charged to any Lot and the Owner or purchaser of any Lot, plus interest at the rate of twelve percent (12%) per annum, and costs, including reasonable attorneys' fees, shall be a lien upon such Lot and the Build- ings situated thereon upon the recording of a Notice of Assess- ment in the office where real estate conveyances are recorded for the county in which this Project is located. The lien for payment of such assessments and charges shall have priority over all other liens and encumbrances, recorded or unrecorded, p� except that such priority shall be limited as provided in Section 11.1 . Suit to recover a money judgment for unpaid 0 assessments or charges shall be maintainable without fore- closure or waiving the lien securing the same. u 10.16 Notice of Creation of Assessment Lien Gp The Notice of Assessment shall not be filed of record unless and until the Board or a person designated by it, shall have delivered to said defaulting Owner, not less than fifteen (15) days prior to the recordation of such Notice of Assess- ment, a written Notice of Default and a demand upon the de- faulting Owner to cure same within said fifteen (15) day period. 10. 17 Certificate of Assessment A certificate executed and acknowledged by the trea- surer or the president of the Board, or an authorized agent thereof, if neither the president nor treasurer is available, stating the indebtedness for assessments and charges or lack thereof secured by the assessment lien upon any Lot shall be conclusive upon the Board and the Owners as to the amount of such indebtedness on the date of the certificate, in favor of all persons who rely thereon in good faith. Such a certificate shall be furnished to any Owner or any encumbrancer of a Lot within a reasonable time after request, in recordable form, at a reasonable fee. Unless otherwiserohibited b law, P Y any' encumbrancer holding a lien on a. Lot may pay any unpaid assessments or charges with respect to such Lot, and, upon such payment, such encumbrancer shall have a lien on such Lot for the amounts paid of the same rank as the lien of his encumbrance. 10.18 Foreclosure of Assessment Lien; Attorney' s Fees and Costs The Declarant, Manager, or Board on behalf of the Association may initiate action to foreclose the lien of any assessment. In any action to foreclose a lien against any Lot the for nonpayment of delinquent assessments or charges, any judgment rendered against the Owners of such Lot in favor of 26 Association shall include a reasonable sum for attorneys' fees and all costs and expenses reasonably incurred in preparation for or in the prosecution of said action, in addition to tax- able costs permitted by law. 10.19 Homestead Waiver Each Owner does hereby waive to the extent of any liens created pursuant to this Article, the benefit of any homestead or exemption law in effect at the time any install- ment of maintenance charges becomes delinquent or any lien is imposed pursuant to the terms hereof. 4 n 10.20 Curing of Default r-t JUpon the timely payment or other satisfaction of all y� delinquent assessments set forth in the Notice of Assessment Gp filed and recorded in accordance with this Article, and all other assessments which have become due and payable with re- spect to the Lot as to which such Notice of Assessment was filed and recorded, following the date of such recordation, to- gether with all costs (including reasonable attorneys' fees) and all late charges and interest which have accrued thereon, the Board shall file and record a satisfaction and release of the lien created by the Notice of Assessment. A fee of ten dollars ($10.00) covering the cost of preparation and recordation shall be paid to the Association prior to such action. The satisfaction of the lien created by the Notice of Assessment shall be executed by an Director of the Association Y or by any authorized representative of the Board. For the pur- poses of this paragraph, the term "costs" shall include costs and expenses actually incurred or expended by the Association in connection with the cost of preparation and recordation of the Notice of Assessment and in efforts to collect the delin- quent assessments secured by the lien and a reasonable sum for attorney fees. 10.21 Termination of Utility Service In addition to, and not by way of limitation upon, other methods of collecting any assessments, the Board shall have the right, after having given ten (10) days' notice to any Lot Owner who is delinquent in paying his assessments or charges, to cut off any or all utility services to the delin- quent Owner' s Unit or Lot until such assessments or charges are paid. 10.22 Remedies Cumulative The remedies provided are cumulative, and the Board may pursue them concurrently, as well as any other remedies which may be available under law although not expressed herein. 27 10. 23 Rights of Board - Waiver of Owners Each Owner hereby vests in and delegates to the Board or its duly authorized representatives, the right and power to bring all actions at law, including lien foreclosures, whether judicially or by power of sale or otherwise against any Owner(s) for the collection of delinquent assessments in accor- dance herewith and hereby expressly waives any objection to the enforcement, in accordance with this Declaration, of the obli- gation to pay assessments as set forth herein. 10.24 Purpose of Assessments 1!� The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the members thereof, their guests and invitees, and in particular, shall be used for the purpose GD of improving, protecting, operating and maintaining the Pro- ject, improvements, landscaping and structures located thereon and providing for the performance by the Board of each and every of the powers and duties of the Board. 10.25 Assessment Deposit A Lot Owner may be required, by the Board or by the managing agent, from time to time, to make and maintain a deposit not less than two (2) months nor in excess of three (3) months estimated monthly assessment and charges, which may be collected as are other assessments and charges. Such deposit shall be held in a separate fund, be credited to such Owner, and be for the purpose of establishing a working capital fund for the initial Project operations and a reserve for delinquent assessments. Resort may be had thereto at any time when such Owner is ten (10) days or more delinquent in paying his monthly or other assessments and charges, or, to meet unforeseen expen- ditures or to acquire additional equipment or services deemed necessary or desirable by the Board, or as a credit against any regular or special assessments to become due from such Owner (provided said deposits shall not be considered as advance pay- ments or regular assessments) . All or any portion of such deposit may at any time be refunded to the Owner by the Association in the discretion of the Board, such refund being made as a cash refund or a credit against assessments subse- quently to become due or a combination thereof. Notwithstand- ing the foregoing, it is understood that: Declarant shall col- lect such deposit at the time of closing from the first pur- chaser of each Lot, and such deposit shall be maintained at least until a date two (2) years from the recording of this Declaration or the date of which the first Board is elected pursuant to Article 5, whichever date last occurs. The deposit for each unsold Lot shall be paid to the Association within sixty (60) days after the date of conveyance of the first Lot within the Project. 28 10. 26 Continuing Liability for Assessments No Owner may exempt himself from liability for his specified contribution to the maintenance fund by abandonment of his Lot or the abandonment of the use of any of the Common Area. 10.27 Assessment for Private Road and Landscaping Maintenance (a) Access to the Project is across a private road- way established pursuant to a City of Renton franchise i� (Ordinance #3554) set forth in Exhibit C. This franchise is for a period of twenty-five (25) years and requires the Owners' Pj Association to maintain and repair the private roadway and Lnlandscaping within the franchise area. eq (b) There shall be included in the Association 4 budget a special maintenance fund or funds, the purpose of which shall be to maintain the private roadway and landscaping. Each regular assessment shall include a charge of Two Dollars ( $2.00) per month per unit, with said amount earmarked for the maintenance of said roadway. The Board shall also include an additional sum in each regular assessment to cover the cost of said landscaping maintenance. The amount of said assessment shall be determined from time to time, but at least annually, by the Board. (c) In the event that said franchise agreement is not renewed at the end of its term, all monies accumulated within said special funds shall be used by the Board to hire a private contractor who will upgrade and improve the street. After such work is completed, the roadway shall be turned over to the City of Renton. ARTICLE 11 COMPLIANCE WITH DECLARATION 11. 1 Enforcement 11. 1.1 Compliance of Owner. Each Owner shall comply strictly with the provisions of this Declaration and with the bylaws and administrative rules and regulations adopted by the Association as the same may be lawfully amended from time to time, and with all decisions adopted pursuant to this Declara- tion and any bylaws and administrative rules and regulations adopted by the Association. Failure to comply shall be grounds for an action to recover sums due for damages, or injunctive 29 relief, or both, maintainable by the Board (acting through its officers on behalf of the Owners) , or by the aggrieved Owner on his own against the party (including an Owner or the Associa- tion) failing to comply. 11.1 .2 Compliance of Lessee. Each Owner who shall rent or lease his Lot shall insure that the lease or rental agreement shall be in writing and shall provide that said agreement shall be subject to the terms of this Declaration, Articles of Incorporation, if any, and Bylaws. Said agreement shall further provide that any failure of any lessee to comply with the provisions of said documents shall be a default under the lease. 11 .2 No Waiver of Strict Performance The failure of the Board in any one or more instances to insist upon the strict performance of any of the terms, cov- enants, conditions or restrictions of this Declaration, or of any bylaws, administrative rules or regulations, or to exercise any right or option 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 such term, covenant, condition or restriction, but such term, covenant, condition or restriction shall remain in full force and effect. The receipt by the Board of any assessment from an Owner, with knowledge of any such breach shall not be deemed a waiver of such breach, and no waiver by the Board of any provision hereof shall be deemed to have been made unless expressed in writing and signed by the Board. This section also extends to the Dec- larant or Declarant' s managing agent, exercising the powers of the Board during the initial period of operation of the Asso- ciation and the Project development. 11 .3 Right of Entry Violation of any of the provisions, conditions, re- strictions, covenants, reservations or easements contained herein, shall give to Declarant, its successors, or the Asso- ciation, the right to enter upon the Property upon or as to which such violation exists and to abate and remove, at the ex- pense of the Owner thereof, any erection, thing or condition that may be or exists thereon contrary to the intent of the provisions hereof. Such entry shall be made only after three ( 3) days notice to said Owner and with as little inconvenience to the Owner as possible, and any damage caused thereby shall be repaired by the Association. Declarant or its successors shall not thereby be deemed guilty of any manner of trespass by such entry, abatement or removal . 30 ARTICLE 12 MORTGAGEE PROTECTION 12.1 Priority of Mortgages Notwithstanding all other provisions hereof, the liens created under this Declaration upon any Lot for assess- ments shall be subject to tax liens on the Lot in favor of any assessing Unit and/or special district and be subject to the rights of the secured party in the case of any indebtedness se- cured by Mortgages which were made in good faith and for value upon the Lot. Where such Mortgagee of the Lot, or other pur- chaser of a Lot, obtains possession of a Lot as a result of rl Mortgage foreclosure or deed in lieu thereof, such possessor C�2 and his successors and assigns, shall not be liable for the share of the common expenses or assessments by the Association Ln X chargeable to such Lot which become due prior to such posses- sion, but will be liable for the common expenses and assess- ments accruing after such possession. Such unpaid share of common expenses or assessments shall be deemed to be common ex- penses collectible from all of the Lot Owners including such possessor, his successor and assigns. For the purpose of this section, the terms "mortgage" and "mortgagee" shall not mean a real estate contract (or the vendor, or the designee of a ven- dor, thereunder) or a mortgage or deed of trust (or mortgage or beneficiary thereunder) securing a deferred purchase price balance owed with respect to a sale by a individual Lot Owner other than Declarant. 12.2 Effect of Declaration Amendments No amendment of this Declaration shall be effective to modify, change, limit or alter the rights expressly con- ferred upon Mortgagees in this instrument with respect to any unsatisfied Mortgage duly recorded unless the amendment shall be consented to in writing by the holder of such mortgage. Any provision of this Declaration conferring rights upon Mortgagees which is inconsistent with any other provision of said Dec- laration shall control over such other inconsistent provisions. 12.3 Right of Lien Holder A breach of any of the provisions, condition, res- trictions, covenants, easements or reservations herein contained, shall not affect or impair the lien or charge of any bona fide Mortgage made in good faith and for value on any Lots; provided; however, that any subsequent Owner of the Lot shall be bound by these provisions whether such Owner' s title was acquired by foreclosure or trustee' s sale or otherwise. 31 12.4 Change in Manager In the event that professional management is employed by the Association, at least thirty (30) days' notice of any contemplated change in the professional manager shall be given to any first mortgagee, and the agreement with such profes- sional manager (and any agreement for the providing of goods and/or services between the Association and Declarant) -shall permit cancellation by the Association for ,cause upon thirty ( 30) days written notice; permit termination by either party C1 without cause and without penalty or payment of a termination fee on ninety days (90) or less written notice; and have a term not in excess of one (1) year, renewable by agreement of the ry parties for successive one-year periods. The Association shall not elect to terminate professional management and assume self- management without the prior written approval of seventy-five G� percent (75%) of the Owners and all first mortgagees (based upon one (1 ) vote for each first mortgage owned) ; provided that such prior consent shall not be required to change from one professional manager to another professional manager. 12.5 Abandonment of Planned Unit Development Status The Association shall not, without prior written ap- proval of seventy-five percent (75%) of all first mortgagees (based upon one vote for each first mortgage owned) and Owners (other than the sponsor, developer or builder) of record of the Lots, seek by act or omission to abandon or terminate the planned Unit development status of the project, or without seventy-five percent (75%) of all first mortgagees (based upon one (1 ) vote for each first mortgage owned) and Owners (other than the sponsor, developer or builder) of record, seek by act ormission to abandon encumber, sell or transfer an of the o , Y Common Areas. 12.6 Change in Declaration, Bylaws of Ratio of Assessments The Association shall not make any material amendment to the Declaration or Bylaws (including the manner or extent of ownership of the Common Areas or the ratio of assessments therefor) without the prior written approval of seventy-five percent (75%) of all first mortgagees (based upon one vote for each first mortgage owned) and Owners (other than the sponsor, developer or builder) of record of the Lots, and without unanimous approval of the mortgagee( s) of the Lots(s) for which the assessment share(s) would be changed. 12.7 Change in Manner of Architectural Review and Mainte- nance Within Project; Insurance and Use of Proceeds The Association shall not, without prior written approval of seventy-five percent (75%) of all first mortgagees 32 (based upon one vote for each first mortgage owned) or Owners (other than the sponsor, developer or builder) of record of the Lots: (a) by act or omission change, waive or abandon any scheme of regulations, or enforcement thereof, pertaining to the architectural design or the exterior appearance of Units, the exterior maintenance of Units, the maintenance of the Common Area, walkway, fences and driveways, or, the upkeep of lawns and plantings in the development; �j (b) fail to maintain fire and extended coverage or L7 insurable Common Areas on a current replacement cost basis in p an amount not less than one hundred percent (100%) of the insurable value (based on current replacement cost) ; (c) use hazard insurance proceeds for losses to any in Common Area for other than the repair, replacement or recon- struction of such common -property. 12.8 Insurance With respect to a first mortgagee of a Lot or Unit, the Board shall: (a) If requested, furnish such mortgagee with a copy of any insurance policy or evidence thereof which is intended to cover the Common Areas; (b) Require any insurance carrier to give the Board at least thirty (30) days' written notice before cancelling, reducing the coverage of limits, or otherwise substantially modifying any insurance with respect to the Common Areas (in- cluding cancellation .for a premium non-payment) . (c) Not make any settlement of any insurance claims for loss or damage to the Common Area exceeding Five Thousand Dollars ( $5,000.00) without the approval of such mortgagee; provided, that the withholding of such approval shall not be unreasonable or in conflict with the, provisions of Article 10. (d) Give such mortgagee written notice of any loss or taking affecting Common Areas, if such loss or taking ex- ceeds Ten Thousand Dollars ($10,000.00) . 12.9 Payments by First Mortgagees First mortgagees of any Lot or Unit may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against any Common Areas and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for such Common Areas and first mortgagees making such payments 33 shall be owed immediate reimbursement therefor from the Asso- ciation. 12. 10 Copies of Notices Written notice that an Owner/mortgagor of a Lot has for more than sixty (60) days failed to meet any obligation under this Declaration shall be given by the Association to the first mortgagee of such Lot. Any first mortgagee shall, upon request, be entitled to receive written notice of: all meetings of the Association and be permitted to designate a representative to attend all such meetings; any condemnation loss or casualty loss affecting a material portion of the pro- 4 ject or the Lot on which it holds a mortgage; any lapse can- e cellation or material modification of insurance policies or Ln fidelty bonds maintained by the Association. rq 12. 11 Effect of Declaration Amendments in No amendment of this Declaration shall be effective to modify, change, limit or alter the rights expressly conferred upon mortgagees in this instrument with respect to any unsatisfied mortgage duly recorded unless the amendment shall be consented to in writing by the holder of such mortgage. Any provision of this Declaration conferring rights upon mortgagees which is inconsistent with any other provision of said Declaration or the Bylaws shall control over such other inconsistent provisions. 12. 12 Ins ection of Books Owners, first mortgagees, insurers and guarantors of the first mortgage on any Lot shall be entitled by the Owner' s Association to inspect at all reasonable hours of week days (or under other reasonable circumstances) all of the books and records of the Association, including current copies of the Declaration, Bylaws and other rules governing the Project, and other books, records and financial statements of the Owners-' Association (within a reasonable time following request) and, upon written request of any holder; insurer or guarantor of a first mortgage at no cost to the part so requesting upon the written request of the holders of fifty-one percent (51%) or more of first mortgages at their expense if an audited state- ment is not otherwise available) , to receive an annual audited financial statement of the Association within ninety (90) days following the end of any fiscal year of the Association. The Owner' s Association shall also make available to prospective purchasers current copies of the Declaration, Bylaws, and other rules governing the planned unit development including the condominiums, and the most recent annual audited financial statement, if such is prepared. 34 ARTICLE 13 EASEMENTS 13.1 Association Functions There is hereby reserved to Declarant and the Assoc- iation, or their duly authorized agents and representatives, such easements as are necessary to perform the duties and obli- gations of the Association as are set forth in the Declaration, or in the bylaws, and rules and regulations adopted by the Association. 13.2 Utility Easements A 11� The Board, on behalf of the Association and all mem- Ti bers thereof, shall have authority to grant utility, road and similar easements, licenses and permits, under, through or over Le) the Common Area, which easements the Board determines are rea- sonably necessary to the ongoing development and operation of the Property. 13.3 Access to Public Streets Each Owner and his guests and invitees shall have a perpetual, non-exclusive easement across the Common Areas and across all roadways constructed therein, thereby providing ac- cess throughout the Property and to public streets. 13.4 Encroachments Each Lot and all Common Areas are hereby declared to have an easement over all adjoining Lots and Common Areas for the purpose of accommodating any encroachment due to engineer- ing errors, errors in original construction, reconstruction, repair, settlement or shifting or movement of any portion of the building, or any other similar cause, and any encroachment due to building overhang or projection. There shall be valid easements for the maintenance of said encroachments so long as they shall exist, and the rights and obligations of Owners shall not be altered in any way by said encroachment, settling or shifting; provided, however, that in no event shall a valid easement for encroachment be created in favor of an Owner or Owners if said encroachment occurred due to the willful act or acts with full knowledge of said Owner or Owners. In the event an Lot or Common Areas are partially or totally destroyed, and then repaired or rebuilt, the Owners agree that minor encroach- ments over adjoining Lots and Common Areas shall be permitted, and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist. The foregoing encroachments shall not be construed to be encumbrances affect- ing the marketability of title to any Lot. 35 i� ARTICLE 14 TERM OF DECLARATION - COMPLIANCE WITH RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION The covenants contained herein shall run with and -bind the land for a term of twenty (20) years from the date this Dec- laration is recorded, after which time the covenants shall be automatically extended for successive periods of ten (10) years, unless an instrument executed in accordance with Article 12. 5 herein shall be recorded, cancelling or terminat- ing this Declaration. O i-eARTICLE 15 AMENDMENT OF DECLARATION 15.1 Declaration Amendment Amendments to the Declaration shall be made by an instrument in writing entitled "Amendment to Declaration" which sets forth the entire amendment. Except as otherwise speci- fically provided for in this Declaration, any proposed amend- ment must be approved by a majority of the Board prior to its adoption by the Owners. Amendments may be adopted at a meeting of the Owners if seventy-five percent (75%) of the Owners vote for such amendment, or without any meeting if all Owners have been duly notified and seventy-five percent (75%) of the Owners consent in writing to such amendment. In all events, the amendment when adopted shall bear the signature of the presi- dent of the Association and shall be attested by the secretary, who shall state whether the amendment was properly adopted, and shall be acknowledged by them as officers of the Association. Amendments once properly adopted shall be effective upon recording in the appropriate governmental offices. In addition to these amendments set forth in Article 12, any amendment to a provision of the Declaration establishing, providing for, governing or regulating the following shall require the consent of seventy-five percent (75%) of the Owners and seventy-five percent (75%) of the mortgagees: voting; assessments, assess- ment liens or subordination of such liens ; reserves for main- tenance, repair and replacement of Common Areas; insurance or bonds ; use of Common Areas; responsibility for maintenance or repairs; expansion or construction of the project or the addi- tion, annexation or withdrawal of property to or from the pro- ject; boundaries of Lot; converting of Lots into Common Areas or vice versa; leasing of Lots; provisions for benefit of first mortgagees, or holders, insurers or guarantors of first mort- gages; the interests in Common Areas; or imposition of any right of first refusal or similar restrictions on the right of an Owner to sell, transfer or otherwise convey a Lot; provided, that a mortgagee who fails to respond within thirty (30) days 36 of a written request to approve an amendment shall be deemed to have approved the request. It is specifically covenanted and understood that any amendment to this Declaration properly adopted will be completely effective to amend any or all of the covenants, conditions and restrictions contained herein which may be affected and any or all clauses of this Declaration unless otherwise specifically provided in the section being amended or the amendment itself. 15.2 Tract Map Except as otherwise provided herein, the Tract Map may be amended and described as such in an amendment to the Declaration adopted as provided for herein. Copies of any such in proposed amendment to the Tract Map shall be made available for the examination of every Owner. Such amendment to the Tract Map shall also be effective, once properly adopted, upon V recordation in the appropriate county office in conjunction with the Declaration amendment. Cp 15.3 Amendments by Declarant The Declarant, upon Declarant' s sole signature, and as an attorney-in-fact for all Lot Owners with an irrevocable power coupled with an interest, may at any time, until all Lots have been sold by Declarant, record an amendment to the Declaration and/or Tract Map: showing, correcting or revising the assignment, if any, of parking spaces to unsold Lots; and, during the period of Declarant' s management authority provi-ded under Section 6.2, changing the person who is to receive ser- vice of process. Any such amendment need be acknowledged only by the Declarant and need not otherwise comply with the requirements of this Article 15 . 15.4 Amendments to Conform to Construction In addition, Declarant, upon Declarant' s sole signa- ture, and as an attorney-in-fact for all Lot Owners with an irrevocable power coupled with an interest, may at any time, until all Lots have been sold by Declarant, file an amendment to the Declaration and to the Tract Map to conform data depict- ed therein to improvements as actually constructed and to es- tablish, vacate and relocate utility easements, access road easements and parking areas. 15.5 Amendments to Conform to Lending Institution Guidelines So long as Declarant continues to own one or more Lots, the Declarant, on his signature alone, may file such amendments to the Declaration as are necessary to meet the then requirements of Federal National Mortgage Association, Veterans 37 Administration, Federal Home Loan Mortgage Corporation, or sim- ilar agencies, institutions or lenders financing the purchase of a Lot from the Declarant. ARTICLE 16 PARTY WALLS 16. 1 General Rules of Law Apply Except with respect to Lots on which there are condo- miniums, each wall which is built as a part of the original p construction of the homes upon the Properties and placed on the dividing line between the Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. 16. 2 Sharing Repair and Maintenance The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use. 16. 3 Destruction by Fire or Other Casualty If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in propor- tion to such use without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions. 16.4 Weatherproofing -. Notwithstanding any other provision of this Article, an Owner who, by his negligent or willful act, causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. 16. 5 Right to Contribution Runs with Land The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner' s successors in title. 38 ARTICLE 17 ARCHITECTURAL CONTROL, USE, ETC. 17.1 Architectural Control Committee All buildings and structures including, without limi- tation, concrete or masonry walls, rockeries, fences, swimming pools, if any, or other structures, to be constructed within the Property shall be approved by the Board of Directors of the Association, or by an architectural control committee (ACC) composed of three (3) or more representatives appointed by the Declarant or Board (subject to provisions below) . Complete 0 plans and specifications of all proposed buildings, structures, V-4 and exterior alterations, together with detailed plans showing V the proposed location of the same in the particular building site, shall be submitted to the ACC before construction or al- 4O teration is started, and such construction or alteration shall not be started until written approval thereof is given by the ACC. The ACC will review submittals as to the quality of work- manship and materials planned and for conformity and aesthetic harmony of the external design with proposed or existing structures on neighborhood residential lots or building sites, and as to location of the building with respect to topography, finish grade elevation and building setback restrictions. ACC may reject plans for any reason, in its sole discre- tion, including aesthetic reasons. The ACC will endeavor to approve or disapprove plans and specifications submitted in writing by the Owner of a residential Lot within ten (10) days after said plans and specifications have been submitted to it, with a written request therefor. All plans and specifications for approval by the ACC must be submitted in duplicate, at least ten (10) days prior to the proposed construction starting date. The maximum height of any building shall be established by the ACC as part of the plan approval and shall be given in writing together with the approval . One set of approved plans must be on the job site at all time. 39 Said plans or specifications shall be prepared by an architect or a competent house-designer, approved by . the ACC. Two complete sets of said plans and specifications shall in each case be delivered to and permanently left with the ACC. All buildings or structures shall be erected or constructed by a contractor or house builder approved by the ACC. As to all improvements, constructions and alterations within the Property the ACC shall have the right to refuse to approve any design, plan or color for such improvements, con- struction or alterations which is not suitable or desirable, in the ACC' s opinion, for any reason, aesthetic or otherwise, and in so passing upon such design, the ACC shall have the right to take into consideration the suitability of the proposed buil- V) ding or other structure, and the material of which it is to be rl rl built, and the exterior color scheme, to the site upon which it V is proposed to erect the same, the harmony thereof with the surroundings, and the effect or impairment that said structures will have on the view or outlook of surrounding building sites, and any and all factors, which, in the ACC' s opinion, shall effect the desirability or suitability of such proposed struc- ture, improvements, or alterations. The ACC shall have the right to disapprove the design or installation of a swimming pool or any other recreational structure or equipment which is not suitable or desirable, in the ACC' s opinion, for any reason, aesthetic or otherwise, and in so passing upon such design or proposed installation, .the ACC shall have the right to take into consideration the visual impact of the structure and the noise impact of the related activities upon all of. the properties located in the close proximity. Any enclosure or cover used in connection with such a recreational structure or equipment, whether temporary, collapsable, seasonal , or whatever, shall be treated as a perm- anent structure for the purposes of these covenants, and shall be subject to all the conditions, restrictions, and require- ments as set forth herein for all buildings and structures. _ The ACC shall be composed of representatives appointed by the Declarant until three months after the issuance of the final occupancy permit for the last Lot sold in the project. At that time the ACC representatives shall be appointed by the Board. 17.2 Sales Facilities of Declarant Notwithstanding any provision in Section 11. 1, Declarant, its agents, employees and contractors shall be per- mitted to maintain during the period of sale of the Lot upon such portion of the Property as Declarant may choose, such facilities as in the sole opinion of the Declarant may be reasonably required, convenient or incidental to the construc- tion, sale or rental of the Lots and interests, including but 40 not limited to, a business office, storage area, signs, model units, sales office, construction office, and parking areas for all prospective tenants or purchasers of Declarant. 17.3 Common Drive and Walks Common drives, walks, corridors and stairways shall be used exclusively for normal transit and no obstructions shall be placed thereon or therein except by express written consent of the Board. 01 17.4 Single Family Residential Use AAll Lots and improvements located thereon shall be used, improved, occupied and devoted exclusively to single TI N family residential use with the exceptions provided for in Q) Article 3. Nothing herein shall be deemed to prevent the Owner from leasing a Lot and improvement, subject to all of the pro- visions of the Declaration. No structure of a temporary character, trailer, basement, tent, shack, garage, barn or any other out building shall be used on any lot at any time as a temporary or permanent residence. No home may be constructed on any lot by anyone other than a contractor licensed as a general contractor under the laws of the state of Washington unless the owner has received prior approval by the Architectural Control Committee. All homes constructed on each lot shall be built with new material, with the exception of decor items such as used brick, weathered planking and similar items. The Architectural Committee shall make the final determination as to whether used material is a decor item or not. As construction of properly authorized dwellings, structures or improvements on any residential site shall be completed as to external appearance, including finish- ed painting, within six (6) months after date of commencement of construction. The home shall be connected to a sewage system prior to occupancy. The Architectural Control Committee shall have the sole and exclusive right to grant an exception to the specifications set forth in this paragraph. The intent of granting an excep- tion is to permit exceptions when changing circumstances may warrant such and the intent and purposes of these covenants can still be accomplished. 17.5 Alterations No alteration in the exterior appearance (including without limitation the color of any building or structure) shall be made without approval of the plan and specification and plot plan; provided, however, that if the alteration is 41 only in regard to color, a sample of the color need only be submitted for approval . 17.6 Nuisances No nuisance shall be permitted to exist or operate upon any Lot or improvement thereon so as to be detrimental to any other Lot or Property in the vicinity thereof or to its occupants. 17.7 Restriction on Further Subdivision C7 4 No action may be taken with respect to any Lot which n would disqualify any Lot as a residential site under the provi- HBions of Section 16 or in violation of any setback, Lot size or V other governmental requirement, including but not limited to division, further subdivision, replatting, or separation of a GO Lot or portion of a Lot or contiguous group of Lots into smaller Lots by any Owner; no portion less than all of any such Lot, nor any easement or other interest therein, shall be con- veyed or transferred by an Owner; any other alteration in any manner which would bring about Lots which would not qualify as residential sites. Provided that this shall not prohibit deeds of correction, deeds to resolve boundary disputes, and similar corrective instruments. 17.8 Garbage and Trash Removal No Lot shall be used as a dumping ground for rubbish, trash or garbage. Garbage and trash containers shall be buried or shall be located abutting rear or sides of house and shall be contained within an enclosure such that no garbage can or other receptacle shall be visible from any place outside the premises except on the regularly scheduled day for removal of garbage and rubbish. The design and material of said enclosure shall be in keeping with the general appearance of the house and its design must receive prior approval by the Association. 17.9 Pets No animals, which term includes livestock, domestic animals, poultry, reptiles or living creatures of any kind, shall be raised, bred, or kept on any Lot or in the common areas whether as pets or otherwise, except subject to rules and regulations adopted by the Board, or Bylaws adopted by the Association. The Board may at any time require the removal of any animal which it finds is disturbing other Owners in the Board' s determination, and may exercise this authority for specific animals even though other animals are permitted to remain. 42 17.10 Signs No advertising signs, billboards, or high and un- sightly structures shall be erected on any Lot or displayed to the public view on any Lot except after written permission of the Association is obtained. A sign may be used to advertise the Property for sale or rent, or by a broker to advertise the property during the construction and sale period, provided prior approval is obtained from the Association. The Associa- tion shall be authorized to withhold its approval or consent until it has been furnished information as to the size, style, and color of any proposed sign permitted hereunder. Q1 17.11 Rental Lots Ln With respect to the leasing, renting, or creation of R-i any kind of tenancy of a Lot and improvements thereon by its Owners, such Owner shall be prohibited from leasing or renting less than the entire Lot or improvements thereon, or (with the 0D exception of a lender in possession of a Lot and improvements thereon following a default in a first mortgage, a foreclosure proceeding or any deed of trust sale or other arrangement in lieu of a foreclosure) for a term of less than thirty (30) days; and all leasing or rental agreements shall be in writing and be subject to the Declaration and Bylaws (with a default of the tenant in complying with the Declaration and Bylaws consti- tuting a default under the lease or rental agreement) . If a Lot or Unit is rented by its Owner, the Board may collect, and the tenant or lessee shall pay over to the Board, so much of the rent for such Unit as is required to pay any amounts due the Association hereunder, plus interest and costs, if the same are in default over thirty (30) days. The renter or lessee shall not have the right to question payment over to the Board, and such payment will discharge the lessee' s or renter' s duty of payment to the Owner for rent, to the extent such rent is paid to the Association, but will not discharge the liability of the Owner or purchaser and the Lot or Unit under this Declaration for assessments and charges, or operate as an approval of the lease. The Board shall not exercise this power where a receiver has been appointed with respect to the Lot or its Owner; nor in derogation of any rights which a mort- gagee of such Lot may have with respect to such rents. Other than as stated herein there is no restrictions on the right of any Owner to lease or otherwise rent his Unit. 17. 12 Zoning Regulations Zoning regulations, building regulations, environ- mental regulations and other similar governmental regulations applicable to the Properties subject to this Declaration shall be observed . In the event of any conflict between any provision of such governmental regulations and the restrictions 43 of this Declaration, the more restrictive provisions shall apply. 17.13 Setback Lines No building shall be erected on any residential site so that any part thereof is not in compliance with any setback requirements by the applicable governmental entity. At all times, the builder will observe City of Renton building regulations. In the event that the City of Renton regulations are more restrictive than the above described regulations, the City of Renton regulations shall prevail . 17.14 Hedges and Fences No hedge over six (6) feet in height nor any approved GO fence over six (6) feet in height shall be constructed, erect- ed, placed, planted, set out, maintained or permitted; PROVIDED, HOWEVER, if a fence or hedge affects a neighbor' s view, any fence or hedge over fifty-four (54) inches in height shall be by mutual agreement only. Trees, shrubs and other plantings, not constituting a hedge or other solid screen, shall be exempt from the height restrictions imposed by this paragraph if the location thereof is approved in the manner provided in paragraph 6 above. Fence design shall be approved by the ACC. No fence or hedge shall protrude or extend beyond the front setback line without approval of the ACC. 17.15 Business Use No business of any kind shall be conducted on any Lot with the exception of (a) the business of Declarant in developing all of the Lots and (b) such home occupation for which a permit may be issued by the appropriate local government. 17.16 Temporary Residence No outbuilding, basement, tent, shack, garage, trail- er or shed or temporary building of any kind shall be used as a residence either temporarily or permanently. 17.17 Antenna and Aerial No antenna or aerial shall be affixed to any exterior wall or roof. No TV dish shall be placed in a conspicuous area. Any placement must be approved by ACC. 17. 18 Easement Protection No structure, plantings or other material of any kind shall be placed or permitted to remain within any utility or 44 drainage easement which may damage, interfere with or alter the direction of flow of drainage facilities. The ACC, its successors and assigns, shall have the exclusive right subject to any exceptions contained herein, to approve or disapprove any easement for water, electricity, gas, cable, television, sewers and/or other utilities. running across, over, under or through the aforesaid- described property, and shall solely receive any and all compensation for such easement, regardless of whether the Architectural Committee is the owner in fee of that property on which the easement is to be located; PROVIDED, HOWEVER, that any easement which runs over, across or through any residential site, excluding any street within the subdivision, is also subject to t� approval of the owners of the residential site on which the easement is to be located. 4 17.19 Storage/Clothesline No storage shall be permitted under decks or over- hangs or anywhere else on any Lot which is visible from any point outside the Lot. No laundry or clothing or similar items shall be hung on or from any portion of a Lot such that they are visible from any place outside the premises. 17.20 Landscaping Every effort shall be made to save significant trees and shrubbery upon the building of the Lots and on construction of any pedestrian trails. During and after construction there shall be no removal of trees from the common areas without the .specific approval of the Architectural Control Committee and the City of Renton' s landscape architect. In the event any vegetation is removed without the approval of the Architectural Control Committee and the City of Renton' s landscape architect by the builder or homeowner on either private or common open space, said trees or vegetation will be replaced to the satis- faction of both the Architectural Control Committee and the Renton landscape architect at the expense of the builder or owner. In the event an evergreen tree having a diameter of ten (10) inches or a deciduous tree having a diameter of eight (8) inches is removed from any Lot or common area, said tree must be replaced with a like tree having a minimum diameter of two (2) inches. All landscaping must be completed within forty-five (45) days of the final inspection of the project by the City of Renton. It shall be the responsibility of each property owner to keep his Lot in a pleasing, park-like condition, free of brush, brambles, dead trees, piles of stumps, or any condition that would be an eyesore. Further, no lot or adjoining area shall 45 be used or maintained as a dumping ground for garbage, trash or other waste material and such material shall not be kept except in sanitary containers. All incinerators or other equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition. For the purpose of this pro- vision, Section 17. 1 shall be deemed to extend to such plant- ings and the ACC may impose such conditions upon the- granting of such approval as they in their uncontrolled discretion shall deem proper. It is the Lot owner' s obligation to landscape and maintain the landscape to the asphalt road. C� 17.21 Parking and Boat Storage in No platted streets shall be used for permanent park- ing of private or commercial vehicles, and all such vehicles millegally parked shall be removed by a bonded towing firm and the owner shall be responsible for all towing charges, other costs and reasonable attorney' s fees. No boats, trailers, motorhomes, disabled vehicles or similar vehicles shall be parked or stored on any lot in a position whereby said vehicle will be visible either from the street or from the homes on the other lots. The storage of said vehicles is subject to approval by the ACC or its nominee, and such approval shall be in the same manner and the same extent as provided in Section 17. 1 above. ARTICLE 18 INSURANCE 18. 1 Insurance Coverage The Board shall obtain and maintain at all times as a common expense a policy or policies and bonds of property in- surance covering all of the general common elements, including common personal property and supplies belonging to the Association which shall include at a minimum: 18. 1 .1 Fire Insurance, with extendedcoverage in- cluding vandalism, malicious mischief, sprinkler leakage, debris removal, windstorm and water damage) endorsement, in an amount equal to the full insurable current replacement value (without deduction for depreciation and exclusive of land, foundation, excavation and other items normally excluded from coverage) of the Common Areas with the Association named as insured or such other fire and casualty insurance as the Board shall determine to give substantially equal or greater protec- tion. All insurance shall be obtained from an insurance carrier rated Triple A (and rated as in Class VI or better 46 I financial condition) by Best' s Insurance Reports or equivalent rating service, and licensed to do business in the state of Washington. 18. 1. 2 General comprehensive liability insurance insuring the Board, the Association, the Owners, Declarant and managing agent against any liability to the public or to the Owners of Residential Units, and their invitees, or tenants, incident to the ownership or use of the Common Areas (including but not limited to owned and non-owned automobile liability, water damage, host liquor liability, liability for property of others and, if applicable, elevator collision, garagekeeper' s liability) , and legal liability arising out of lawsuits related to employment contracts of the Association, the liability under which insurance shall be in an amount determined by the Board after consultation with insurance consultants, but not less than One Million Dollars ($1, 000,000.00) covering all claims for personal injury and/or property damage arising out of a �j single occurrence (such - policy limits to be reviewed at least G� annually by the Board and increased in its discretion) . Such insurance shall contain appropriate provisions or endorsements precluding the insurer from denying the claim of an Owner because of the negligent acts of the Association or another Owner. 18.1.3 Workmen' s compensation insurance to the extent required by applicable laws. 18.1.4 Fidelity bonds naming the members of _the Board, the manager and its employees and such other persons as may be designated by the Board as principals and the Associa- tion as obligee, in an amount equal to at least one hundred fifty percent (150%) of the estimated maximum funding, includ- ing reserve funds, in the custody of the Association or manage- ment agent at any given time during the term of each bond or an amount equal to one hundred fifty percent (150%) of the esti- mated annual operating expenses of the project, including reserves; provided that in no event shall the aggregate amount of such bond be less than three (3) months aggregate assess- ments for all Lots plus reserves. , Such fidelity bonds shall contain waivers of any defense based upon the exclusion of persons who serve without compensation from any definitions of "employee" or similar expression. 18. 1.5 Insurance against loss of personal property of the Association by fire, theft and other losses with deduc- tible provisions as the Board deems advisable. 18. 1.6 Such other insurance as the Board deems ad- visable; provided, that notwithstanding any other provisions herein, the Association shall continuously maintain in effect such casualty, flood and liability insurance and a fidelity bond meeting the insurance and fidelity bond requirements for 47 similar projects established by Federal National Mortgage Association, Government National Mortgage a e Association, Federal Home Loan Mortgage Corporation, Federal Housing Authority, Veteran' s Administration, or other governmental or quasi- governmental agencies involved in the secondary mortgage mar- ket, so long as any such agency is a mortgagee or Owner of a Lot within the project, except to the extent such coverage is not available or has been waived in writing by such agency. 18. 2 Owner' s Additional Insurance Each Owner shall obtain additional insurance respect- ing his Residential Unit and the contents thereof at his own Oexpense. Such insurance shall provide coverage at current full replacement cost and shall contain a separate loss payable endorsement in favor of the mortgagee or mortgagees of the Lot. Q 18.3 Insurance Proceeds Insurance proceeds for damage or destruction to any part of the Property shall be paid to the Board on behalf of the Association which shall segregate such proceeds from other funds of the Association for use and payment as provided for in Paragraph 17. All such funds shall be held by the Board in trust for the use and benefit of the owners and their mortgages as their respective interests may appear. The Association acting through its Board shall have the exclusive authority to settle and compromise any claim under insurance obtained by the Association and the insurer may accept a release and discharge of liability made by the Board on behalf of the named insureds under the policy. 18. 4 Additional Provisions The Board shall obtain insurance policies and bonds which: (a) Provide that the liability of the insurer there,- under here-under shall not be affected by, and that the insurer shall not claim any right of set-off, counterclaims, aportion- ment, proration, or contribution or assessment by reason of, any other insurance obtained by or for any Owner or any mortgagee; (b) Contain no provision relieving the insurer from liability for loss because of any act or neglect that is not within the control of the Association or because of any failure of the Association to comply with any warrant or condition regarding any portion of the premises over which the Association has no control; (c) Contain a waiver of subrogation by the insurer as to any and all claims against the Association, the 48 owner of any Unit and/or their respective agents, employees or tenants, and of any defenses based upon co- insurance or upon invalidity arising from the acts of the insured. (d) Provide that, despite any provision giving the insurer the right to restore damage in lieu - of a cash settlement such option shall not be exercisable without the prior written approval of the Association, or when in conflict with the provisions of any insurance trust agree- ment to which the Association is a party, or any require- ment of law. 119 (e) Contain no provision (other than insurance conditions) which prevent mortgagees from collecting insurance proceeds. U !19 ( f) May not be cancelled or modified substantially D�DJ without at least ten (10) days prior written notice to the Association and each holder of a first mortgage listed in the insurance policy as a scheduled holder of a first mortgage. (g) Contains, if available, an agreed amount and Inflation Guard Endorsement. 18. 5 Reconstruction. In the event of damage or destruction by fire or other casualty to any Lot or improvement thereon, the Board or if it so designates the Owner thereof shall, upon receipt of the insurance proceeds, repair or rebuild such damage or des- troyed portions of the Lot and improvements in a good workman- like manner substantially the same as the original plans and specifications of said Property. 18.6 Common Area The Board shall obtain and maintain at all times as a common expense a policy or policies and bonds for fire with extended coverage, casualty and flood insurance in an amount as near as practicable to the full insurable replacement value of the Common Areas, and liability insurance, in such amounts as determined by the Board after consultation with insurance consultants. 49 ARTICLE 19 CONDEMNATION OF COMMON AREAS 19. 1 Consequences of Condemnation If at any time or times during the continuance of the development, all or any part of the Common Areas shall be taken or condemned by any public authority or sold or otherwise disposed of in lieu of or in avoidance thereof, the provisions of this Article 19 shall apply. The Board shall provide each Owner, and each Mortgagee with a written notice of the com- mencement of any such condemnation proceeding, and of any pro- V7 posed sale or disposition in lieu thereof, in advance of such 0 proceeding or sale. L1 t-1 04 19. 2 Proceeds ' V Lo All compensation, damages, or other proceeds there- from, the sum of which is hereinafter called the "Condemnation Award, " shall be payable to the Association. 19.3 Complete Taking In the event that the entire Common Area is taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the Association ownership thereof shall terminate. The Condemnation Award shall be apportioned among the Owners pro rata; provided, that if a standard different from the value of the Property as a whole is employed to measure the Condemnation Award in the negotiation, judicial decree, or otherwise, then in determining such shares the same standard shall be employed to the extent it is relevant and applicable. On the basis of the foregoing principal, the Board shall as soon as practicable determine the share of the Condem- nation Award to which each Owner is entitled. After first pay- ing out of the respective share of each Owner, to the extent sufficient for the purpose, all mortgages and liens on the interest of such Owner, the balance remaining in each share shall then be distributed to each Owner respectively. 19.4 Partial Taking In the event that less than the entire Common Area is taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the Association ownership thereof shall not terminate. Each Owner shall be entitled to a share of the Condemnation Award to be determined in the following manner: 19.4. 1 As soon as practicable the Board shall, rea- sonably and in good faith, allocate the Condemnation Award between compensation, damages, or other proceeds. 50 19.4.2 The Board shall apportion the amounts so al- located to taking of or injury to the Common Areas which in turn shall be apportioned among Owners in proportion to their respective pro rata interests in the Common Areas. 19.4.3 The total amount allocated to severance damages shall be apportioned to those Lots which were not taken or condemned. 19. 4.4 The amount allocated to consequential damages and any other takings or injuries shall be apportioned as the Board determines to be equitable in the circumstances. 19.4.5 If an allocation of the Condemnation Award is already established in negotiation, judicial decree, or Hotherwise, then in allocating the Condemnation Award the Board vshall employ such allocation to the extent it is relevant and applicable. 19.4.6 Distribution of apportioned proceeds shall be made to the respective Owners and their respective mortgagees in the manner provided in Section 19.3. 19. 5 Reductions of Project Upon Partial Taking In the event that (a) a partial taking occurs which pursuant to Section 19.4 does not result in a termination of Association ownership of the Common Areas, and (b) at least one ( 1 ) Lot is taken or condemned and (c) the condemning authority elects not to hold, use and own said Lot as an Owner subject to and in accordance with the Declaration, then the provisions of this Section 19. 5 shall take effect immediately upon the condemning authority taking possession of the Lot or Lots so taken or condemned: 19. 5. 1 The Lots subject to this Declaration shall be reduced to those Lots not taken or condemned (or not sold or otherwise disposed of in lieu of or in avoidance thereof) . 19.5.2 The general Common Areas subject to this Declaration shall be reduced to that Common Area not so taken or condemned. 19. 5. 3 The interest of each Lot Owner in the Common Areas appurtenant to each Lot not so taken or condemned shall be recalculated on a pro rata basis. 19.5.4 Except with respect to the share of proceeds apportioned pursuant to Section 19.4, no Owner or mortgagee of a Lot so taken or condemned shall have, nor shall there be ap- purtenant to any Lot so taken or condemned, any right, title, interest, privilege, duty or obligation in, to or with respect to the Association and any Lot or Common Area which remains 51 y subject to this Declaration and which is not so taken or condemned. 19.5.5 Except as otherwise expressly provided in Section 19.5, the rights, title, interests, privileges, duties and obligations of an Owner and Mortgagee in, to or with respect to a Lot not so taken or condemned (and in, to- or with respect to the Association and the Common Areas appurtenant to said Lot) shall continue in full force and effect as provided in this Declaration. 19. 5.6 The provisions of Section 19.5 shall be binding upon and inure to the benefit of all Owners and Mortgagees of (and other persons having or claiming to have any interest in) all Lots which are, as well as all Lots which are © not, so taken or condemned. All such Owners, Mortgagees and ei other persons covenant to execute and deliver any documents, agreements or instruments (including, but not limited to, appropriate amendments to the Declaration) as are reasonably necessary to effectuate the provisions of Section 19.5. 19.6 Reconstruction and Repair Any reconstruction and repair necessitated by condem- nation shall be governed by the procedures specified in Article 19 above, provided that the Board may retain and apply such portion of each Owner' s share of the Condemnation Award as is necessary to discharge said Owner' s liability for any spe- cial assessment arising from the operation of said Article 20. ARTICLE 20 DAMAGE OR DESTRUCTION OF COMMON AREAS; RECONSTRUCTION 20.1 Initial Board Determinations In the event of damage or destruction to any part of the Common Areas, the Board shall promptly, and in all events within twenty (20) days after the date of damage or destruction, make the following determinations with respect thereto employing such advice as the Board deems advisable: 20.1 .1 The nature and extent of the damage or destruction, together with an inventory of the improvements and property directly affected thereby. 20.1 .2 A reasonably reliable estimate of the cost to repair and restore the damage and destruction, which estimate shall, if reasonably practicable, be based upon two (2) or more firm bids obtained from responsible contractors. 52 20. 1. 3 The anticipated insurance proceeds, if any, to be available from insurance covering the loss based on the amount paid or initially offered by the insurer. 20. 1 .4 The amount, if any, that the estimated cost of repair and restoration exceeds the anticipated insurance proceeds therefor and the amount of assessment to each Lot if such excess was paid as a maintenance expense and specially assessed against all the Lots pro rata. 20. 1.5 The Board' s recommendation as to whether such damage or destruction should be repaired or restored. 20.2 Notice of Damage or Destruction L7 The Board shall promptly, and in all events within LO thirty (30) days after the date of damage or destruction, C�2 provide each Owner, and each mortgagee with a written notice summarizing the initial Board determination made under Section 20. 1 . If the Board fails to do so within said thirty ( 30) days, then any Owner or mortgagee may make the determinations required under Section 20. 1 and give the notice required under this Section 20. 2. 20. 3 Definitions: Restoration; Emergency Work 20.3. 1 As used in this Article 20, the words "repair, " "reconstruct, " "rebuild" or "restore" shall mean restoring the Common Area and any facilities or improvements thereon to substantially the same condition in which they existed prior to the damage or destruction. Modifications to conform to then applicable governmental rules and regulations or available means of construction may be made. 20. 3. 2 As used in this Article 20, the term "emergency work" shall mean that work which the Board deems reasonably necessary to avoid further damage, destruction or substantial diminution in value to the Common Area or improvements and to reasonably protect the Owners from liability from the condition of the site. 20. 4 Restoration by Board 20.4. 1 Unless prior to the commencement of repair and restoration work (other than emergency work referred to in subsection 20. 3.2) the Owners shall have decided not to repair and reconstruct in accordance with the provisions of either subsection 20.5.3 or 20.6.3, the Board shall promptly repair and restore the damage and destruction, use the available insurance proceeds therefor, and pay for the actual cost of repair and restoration in excess of insurance proceeds secured as a common expense which shall be specially assessed against all Lots on a pro rata basis . 53 20.4:2 The Board shall have the authority to employ architects and attorneys, advertise for bids, let contracts to contractors and others, and to take such other action as is reasonably necessary to effectuate the repair and restoration. Contracts for such repair and restoration shall be awarded when the Board, by means of insurance proceeds and sufficient assessments, has provision for the cost thereof. The Board may further authorize the insurance carrier to proceed with repair and restoration upon satisfaction of the Board that such work will be appropriately carried out. : 20.4. 3 The Board may enter into a written agreement 4 in recordable form with any reputable financial institution or M trust or escrow company that such firm or institution shall act tom-{ as an insurance trustee to adjust and settle any claim for such Vloss in excess of Fifty Thousand Dollars ($50,000.00) or for such firm or institution to collect the insurance proceeds and pp carry out the provisions of this Article. 20.5 Limited Damage; Assessment Under $3, 500 If the amount of the estimated assessment determined under subsection 20. 1 .4 does not exceed Three Thousand Five Hundred Dollars ( $3, 500.00) , then the provisions of this Section 20.5 shall apply: 20.5.1 The Board may, but shall not be required to, call a special Owners' meeting to consider such repair -and restoration work, which notice shall be given simultaneously with the notice required to be given by the Board under Section 20. 2 above. If the Board shall fail to call such meeting, then the requisite number of Owners or any mortgagee, within fifteen (15) days of receipt of the notice given by the Board under Section 20. 2 above, or the expiration of such thirty (30) day period, whichever is less, may call such special Owners' meeting to consider such repair and restoration work. Any meeting called for under this Section 20.5.1 shall be convened not less than ten (10) nor more than twenty (20) days after the date of such notice of meeting. 20. 5. 2 Except for emergency work, no repair and restoration work shall be commenced until after the expiration of the notice period set forth in Section 19.5. 1 and until after the conclusion of said special meeting if such meeting is called within said requisite period. 20. 5. 3 A written decision of seventy-five percent ( 75%) of the Lot Owners and mortgagees (based upon one vote for each first mortgage owned) will be required to avoid the pro- visions of subsection 20.4. 1 and to determine not to repair and restore the damage and destruction in accordance with the original plans, as amended by subsequent amendments, if any; provided, that the failure of the Board, the requisite number 54 of owners or a mortgagee to call for a special meeting at the time or in the manner set forth in Section 20.5 shall be deemed a unanimous decision to undertake such work. 20.6 Major Damage; Assessment Over $3, 500 If the amount of the estimated assessment determined under subsection 19. 1.4 exceeds Three Thousand Five Hundred Dollars ( $3, 500. 00) , then the provisions of this Section 20.6 shall apply: 20.6. 1 The Board shall promptly, and in all events within thirty (30) days after the date of damage or destruction, provide written notice of a special Owners' meeting to consider repair and restoration of such damage or destruction, which notice shall be delivered with the notice required to be provided under Section 20. 2 above. If the Board 4 fails to do so within _ said thirty (30) day period, then notwithstanding the provisions of this Declaration or the Bylaws with respect to calling special meetings, any Owner or mortgagee may within fifteen (15) days of the expiration of said thirty (30) day period, or receipt of the notice required to be provided by the Board under Section 20.2 above, whichever is less, call a special meeting of the Owners to consider repair and restoration of such damage or destruction by providing written notice of such meeting to all Owners and mortgagees. Any meeting held pursuant to this Section 19.6 shall be called by written notice and shall be convened not less than ten (10) nor more than twenty (20) days from the date of such notice of meeting. 20.6.2 Except for emergency work, no repair and restoration work shall be commenced until the conclusion of the special Owners' meeting required under subsection 20.6.1 . 20.6. 3 A concurrence in writing of more than seventy-five percent (75%) of the first Mortgagees (based upon one vote for each first mortgage owned) , or Owners (other than the sponsor, developer, or builder) of the Lots will be required to avoid the provisions of Section 20.4 and to determine not to repair and restore the damage and destruction; provided, however, that the failure to obtain said seventy-five percent (75%) concurrence in writing shall be deemed a decision to rebuild and restore the damage and destruction in accordance with the original plans, as amended by subsequent amendments, if any; provided, further, that the failure of the Board, or Owners or Mortgagees to convene the special meeting required under Section 20.6.1 within ninety (90) days after the date of damage or destruction shall be deemed a unanimous decision not to undertake such repair and restoration work. 55 20.7 Decision Not to Restore; Disposition In the event of a decision under either sub- sections 20.5.3 or 20.6. 3 not to repair and restore damage and destruction, the Board may nevertheless expend such of the insurance proceeds and common funds as the Board deems reasonably necessary for emergency work (which emergency work may include but is not necessarily limited to removal of the damaged or destroyed buildings and clearing, filling , and grad- ing the real property) , and the remaining funds, if any, shall thereafter be credited pro rata towards assessments next due from the Owners or distributed pro rata to the Owners, as the Board may determine. The Property shall thereafter continue to be held by the Association. ca 20.8 Miscellaneous ei vThe provisions of this Article 20 shall constitute the procedure by which a determination is made by the Owners to repair, restore, reconstruct or rebuild. By the act of owning a Lot, each Owner and party claiming by, through or under such Owner hereby consents and agrees to the provisions hereof. In the event that any provision of this Article 20 shall be deter- mined to be invalid or unenforceable by any court of competent jurisdiction, such determination shall not effect the validity of any other provision of this Declaration. The purpose of this Article 20 shall be to provide a fair and equitable method of allocating the costs of repair and restoration and making a determination for repair and restoration if all or a portion of the Common Area or improvements are damaged or destroyed. The provisions of this Article 20 shall be liberally construed to accomplish such purpose. B unanimous vote of the Owners P P P Y which vote shall be taken within ninety (90) days after the damage or destruction the Owners may determine to do otherwise than provided in this Article 20. ARTICLE 21 MISCELLANEOUS 21. 1 Notices 21. 1. 1 Delivery of Notices and Documents. Any writ- ten notice, or other document as required by this Declaration, may be delivered personally or by mail . If by mail, such notice, unless expressly provided for herein to the contrary P Y P Y with regard to the type of notice being give, shall be deemed to have been delivered and received forty-eight (48) hours after a copy thereof has been deposited in the United States mail, postage prepaid, addressed as follows: 56 (a) If to an Owner, other than Declarant, to the address of any Lot in the Project owned by him in whole or in part, or to the address last furnished by such Owner to the Board for the purpose of giving notice and delivering docu- ments. Each Owner, other than Declarant, shall file in writing with the Board promptly upon becoming an Owner, his address for the purpose of giving notice and delivering documents and shall promptly notify the Board in writing of any subsequent change of address. (b) If to Declarant, whether in its capacity as an . i. Owner, or in any other capacity: Falcon Ridge Associates to P.O. Box 122 Renton, WA 98057-0122 V) (c) Prior to- the organizational meeting, notices to the Board shall be addressed to the address set forth in (b) above. Thereafter, notices to the Board shall be addressed to an address to be posted by the Board at all times in a con- spicuous place. In addition, from and after the organizational meeting, notice of the address of the Association shall be given by the Board to each Owner, within a reasonable time af- ter the Board has received actual notice of such Owner' s pur- chase of a Lot. 21. 2 Conveyances; Notice Required The right of an Owner to sell, transfer, or otherwise convey this Lot shall not be subject to any right of approval, disapproval, first refusal, or similar restriction by the Association or the Board, or anyone acting on their behalf. An Owner intending to sell a Lot shall deliver a written notice to the Board, at least two (2) weeks before closing, specifying: the Lot being sold; the name and address of the purchaser, of the closing agent, and of the title insurance company insuring the purchaser' s interest; and the estimated closing date. The Board shall have the right to notify the purchaser, the title insurance company, and the closing agent of the amount of un- paid assessments and charges outstanding against the Lot, whether or not such information is requested. 21.3 Remedies Cumulative The remedies provided are cumulative, and the Board may pursue them concurrently, as well as any other remedies which may be available under law although not expressed herein. 21.4 Successors and Assigns This Declaration shall be binding upon and shall inure to the benefit of the heirs, personal representatives, 57 successors and assigns of Declarant, and the heirs, personal representatives, grantees, lessees, sublessees and assignees of the Owners. 21. 5 Joint and Several Liability In the case of joint ownership of a Lot, the liability of each of the Owners thereof in connection with the liabilities and obligations of Owners, set forth in or imposed by this Declaration, shall be joint and several . 21.6 Mortgagee' s Acceptance d21 .6. 1 Priority of Mortgage. This Declaration. shall not initially be binding upon any Mortgagee of record at the time of recording of said Declaration but rather shall be sub- ject and subordinate to said mortgage. t� qj 21 . 6. 2 Acceptance Upon First Conveyance. Declarant shall not consummate the conveyance of title of any Lot until said Mortgagee shall have accepted the provisions of this Declaration and made appropriate arrangements for partial release of Lots from the lien of said Mortgage. The issuance and recording of the first such partial release by said Mortgagee shall constitute its acceptance of the provisions of this Declaration and the status of the Lots remaining subject to its Mortgage as well as its acknowlegement that such appropriate arrangements for partial release of Lots has been made; provided, that, except as to Lots so released, said mortgage shall remain in full effect as to the entire Property. 21.7 Severability The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidty or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision hereof. 21.8 Effective Date The Declaration shall take effect upon recording. 21.9 FHA/VA Approval As long as there is a Class B membership, the follow- ing actions will require the prior approval of the Federal Housing Administration or the Veterans Administration: Annexation of additional properties, dedication of Common Area, and amendment of this Declaration of Covenants, Conditions and Restrictions. 58 ARTICLE 22 PHASED DEVELOPMENT 22. 1 Development in Phases. 22. 1. 1 This Project will be established in_ one (1 ) phase but may be developed in more than one (1) phase. This Declaration provides a description of: the land within all phases which is hereby subjected to the Declaration; ; the land to be developed as Phase 1 (Exhibit A) and the Common Areas and Lots within Phase 1 and subsequent phases (as shown on the Tract Map) . The provisions shall be effective immediately to establish this Project for all Phases and, including all the Land and shall be effective as to improvements thereon immedi- ately for Phase 1 all Lots and Common Areas and improvements v included therein. The provisions regarding subsequent phases shall not be effective as to the development of subsequent G0 phases (including all Lots, Common Areas and improvements in- cluded therein) under the Declaration until Declarant records an amendment to the Declaration (and an amendatory Tract Map, if necessary) , pursuant to Section 22.4. 22. 1. 2 For each subsequent phase developed following Phase 1, the Declarant shall execute and record an amendment to this Declaration stating that said subsequent phase (including all Lots and Common Areas and improvements included therein) is brought under this Declaration. From and after the recording of said amendment, all of the buildings and other improvements constructed within Phase 1 and subsequent Phases for which such amendment has been recorded, shall constitute a single project pursuant to the provisions of this Declaration. 22. 1.3 All Common Areas and facilities for each phase will be utilized by Lot Owners of the next succeeding phase as it is established, and the additional Owners will, after the effective date of the subsequent phase, also share in the ex- penses of such common facilities. Owners in a prior phase will utilize the Common Areas and facilities for the subsequent phases and also share in the expenses thereof. 22. 1.4 Declarant shall complete subsequent phases in accordance with the plans and specifications prepared from time to time by Declarant' s architect and as approved from time to time by governmental authorities having jurisdiction thereof and by the lender or lenders financing the construction of sub- sequent phases. Improvements within subsequent phases will be reasonably consistent with improvements in terms of quality of construction. I i I i I 59 22. 2 Assessments for Subsequent Phases All assessments for the various phases shall utilize and be based on the number of Lots in the completed phases until the succeeding phase is activated and commenced. The Declarant or Board may upon the activation of any phase re- compute the budget and the assessments, and impose revised assessments based on the increased number of lots. 22. 3 Easements for Phased Development and Adjacent Property 22. 3.1 In addition to the general easements reserved in other sections of this Declaration, there is reserved a non- C) exclusive easement in favor of Declarant (and Declarant' s heirs, successors, assigns and purchasers) over and across all the land for ingress and egress and over and across easements, roadways, and utility lines specified or established in and for completed phases, and the right to connect thereto is reserved. Go Such reservations are for the purpose either of completing subsequent phases. 22. 3. 2 Declarant is obligated, pursuant to agreements made by its predecessors in interest, to provide access and utilities to that property directly east of the Falcon Ridge site, which property is more particularly described in Exhibit E attached hereto. Therefore, Declarant hereby grants to the owners of said property and their successors, a per- petual, nonexclusive easement for access across the roads of Falcon Ridge. Owners of said property shall also be entitled to tie into utility lines located in Falcon Ridge, provided that said owners fully comply with the provisions of this Arti- cle 22. For these purposes, said property shall be treated as if it was owned by Declarant and comprised as part of this Project. Nothing herein shall preclude Declarant from acquir- ing said property and adding it to this Project. 22. 3. 3 The easements reserved under this Section 22. 3 shall entitle the Declarant (and Declarant' s heirs, successors, assigns) , for development of each successive phase of the Pro- ject, to tie into water, sewer, storm sewer, electrical, gas, telephone or other utility lines of all varieties, and to con- nect with roadways or utility systems developed and emplaced in the completed phases of the Project; provided, however, that Declarant shall bear the cost of tie-ins to said utilities and roads and will not connect with said utilities in a manner that impairs or significantly reduces the quality of the utility service to the Lots described herein as Phase 1 and for the Lots in a subsequently completed phase; provided further, if said tie-ins cause an increase in the cost of delivering affected utility services to Phase 1 and for any subsequent completed phase, that cost shall be borne by the Declarant. 60 22.4 Phased Amendment. It is specifically covenanted and agreed . that Declarant, upon Declarant' s sole signature, and as attorney- in-fact for all Lot Owners with an irrevocable power coupled with an interest, may file the amendment to the Declaration (and to the Tract Map, if necessary) as provided under subsec- tion 22.1 .2, said amendment to contain and depict such informa- tion and data as is necessary to reflect the development of a subsequent phase of the Project. Such amendment will not re- quire the consent of any other Owner other than the Declarant so long as the property described in the phase is with the total Project description included herein by the nature of allocating assessments are not modified, provided, the Declarant may in its sole discretion determine the final Lo boundaries for each and every parcel of property comprising each subsequent phase completed. In all other respects, the proposed location and configuration of Lots and buildings may be changed, and information detailing such changes may be in- cluded in Declarant' s amendments. Declarant shall execute and record said amendments for each subsequent phase when: (a) the buildings, and other improvements in said phase have been sub- stantially completed to the standards required by the lender or lenders financing construction of said phase; and, if appli- cable, (b) a sufficient number of Lots within said phase have been pre-sold (that is, been made subject to a binding execu- tory contract of sale and purchase) in accordance with the requirements of the lender or lenders financing construction of said phase. 22.5 Liens Arising in Connection with Phases At the time the amendment incorporating a subsequent phase into the Project is made, no lien arising in connection with the Declarant' s ownership of, and construction of improve- ments upon, the subsequent phase land will adversely affect the rights of existing Lot Owners, or the priority of first mort- gages on Lots in the existing Project. All taxes, assessments; mechanics liens, and other charges affecting a subsequent phase land will be paid or otherwise satisfactorily provided for by the Declarant. 22.6 Binding Effect The provisions of this Article 22 shall constitute irrevocable convenants running with all of the land described herein and shall be irrevocably binding upon Declarant (and its heirs, successors and assigns) with respect to all of said land. 61 22.7 Limitation of Declarant' s Rights 22.7.1 It is understood that the total Project (if all phases are completed) shall include not more than one hundred and thirty-eight (138) actual Lots. Where the project is developed in phases, the two (2) year period referred to in Section 6 shall be deemed to be a five (5) year period commenc- ing with the first conveyance of a Lot within Phase 1, and the seventy-five percent (75%) of sales referred to in Section 6.2 shall be calculated with reference to all Lots in Phase 1 and other subsequent phases in fact completed. 22.7.2 If the United States Veteran' s Administration, Federal Housing Administration and/or Federal National Mortgage 0 Association is involved in the financing of the construction of Ln the Project or the purchase of a Lot located therein, the Declarant covenants to build each phase in accordance with plans approved by said Administration and/or Association office 4 having jurisdiction over the geographical area in which the Project is located, provided such approval is not unreasonably withheld or delayed. 22.7.3 If the United States Veteran' s Administration, Federal Housing Administration and/or Federal National Mortgage Association is involved in the financing of the construction of the Project or the purchase of a Lot located therein, the Declarant covenants not to record the Declaration Amendment referred to in Section 22.4 without the prior written approval of said Administration and/or Association office, provided such approval is not unreasonably withheld or delayed. 22.7 .4 Declarant' s right to develop phases by amend- ments under Section 22.4 shall expire seven (7) years after initial Declaration recording. DATED this day of 40nuA/ 198 . IN WITNESS WHEREOF, Declarant has executed this Declar- ation the day and year first hereinabove written. DECLARANT: FALCON RIDGE ASSOCIATES By Its 62 a. STATE OF WASHINGTON ) ss. COUNTY OF KING ) On 19 1, before me, the undersigned, a Notary Pu lic iW and for said State, personally appeared c P u , known to me to be the i nq S'A, of FAECON RIDGE ASISOCIATES, the corporation that executed the within instrument, known to me to be the person who executed the within instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed 4 the within instrument pursuant to its Bylaws or a resolution of 0 its Board of Directors. ilk - - WITNESS my hand and official seal . -- q 'kA Notary Public in and for the State of Was ington, residing, •N� �"e atJ C-', r{ 71 f/ff. it. GDH/CLP:kj 11/14/84 63 EXHIBIT A Lots 1 through 131, inclusive and Tract A, FALCON RIDGE (Cedar Ridge) according to the plat thereof recorded in Volume 129 of plats, pages 51 through 57, inclusive, records of King County, Washington, being an amendment of Lots 1 through 138, 4 inclusive, and Tract A, CEDAR RIDGE 0 RESIDENTIAL PARK, according to the plat LO thereof recorded in Volume 119 of Plats, pages 5 through 10, inclusive, records of King County, Washington. Situate in the City of Renton, County of King, State of Washington. CH:gm 1/25/85 +( N M„SZ ,Itio10S ti 0 v m \ � o � N - " O (n U _ 0 40 z u J N \ W tp 2 U. 4 ID 0 CID •� N a K! ,� � 01 N • I � ITl 11 N O _ IM M / Q A _ p Z Q tO N /Y\ co O MI •-` ainto W U cn v p cI O W O go a0 '� v o - N oa O 3„9t,,£t,oION a s or- °' ,11'O9Z i (D �� O In n co V to! co V) J ,ten M II ,6£'899 3„St,,£bOION Q rnco - LL e� 5 FLI w 3 - ih_ p(D O — al c�D (DM O O ti _ MOD C\jO g O 11N (� v- u -J u Z Z Q EXHIBIT The land referred to in this coMitaent is situated in the State of L.aszimton, CO='-y of King and is described as follows: That portion of the Northwest quarter of the Northeast quarter of © Section 20, 'Ivenship 23 North, Range 5 East W.M. , in King County, to Washington, lying Northeasterly of the City of Seattle Cedar River Pipeline Right of Way, Northerly of a 200 foot Puget Sounc Power and Light Cacpaam. • 7rar=ission Lire Fight of Way; ZX=1711 the North 250 .feet of the East 400 feet thereof; AISO Ems:,, that portion of the Northwest quarter of the Northeast quarter of Section 20, Zownship 23 North, Range 5 East h.M. , in Ring Cou^.ty, Wa:-�hincton, described as follows: . Beginning at the Northwest corner of said subdivision, said point being the true point of becinaing; thence South 89°56'37" East, along the Northerly lin is of said su!:division, a distance of 929.67 feet; thence South 01043138" West, a distance of 818.33 feet; thence South 71°05'12" West, a distance of 109.48 feet to a point on the Northeasterly margin of the City of Seattle Cedar River Pipeline ?richt of Way; tierce tort:- 44020115" West along said Northeasterly margin, a distance of 1,148.20 feet to a point on the westerly limits of said subdivision; thence North 01046102' East along said Westerly lusts, a distance of 33.14 feet to the true point of beginning; FISC that portion of the Northeast quarter of the Northeast quarter of said Section 20 lying Northerly of a 200 foot Puget Sound Power and Light C=pany Shuffelton Transmission Line Right of Way; ALSO that portion of the Northerly 35 feet of a 200 foot Puget Sound Power and Li nYShuffelton Transmission Line Right of Way,, 9 Y lying Easterly of the City of Seattle Cedar River Pipeline Right of Way in the Northeast quarter of said Section 20, as measured at a right angle to the Nortberly line thereof. Situate in the City of Renton, Cocmty of Ring, State of Washington. EYHIBI'T "3" :hat oo=ticn of the West :/2 0: the Northwest 1/4 of Section 21, To: ns.:ip 23 North, Range 5 described as follows: Bel innln at a =o_r.: on the west line of said Section 21 , S 104: 1 4 Co" W 1265 .4. feet _s zrassred along - s .id i� 1in6 f=or_ the northwest corner of said section, r_inc =ne true point of beginning; thence S A 34°5, ' 3 0" i along the northeasterly margin. o: the tract conveyed to the County o: Fina in deed date! October 31, 1960 , recorded Dece:%be_ 7, V) 1y50 , :: .... _ rsIt ... or s ___ . 5230727, 6;;2 . ap feet to the northwesterly raryin of dourrty road; thence =5°02 ' 35" E alc _ s-id —.a--gin .3C.00 feet; then-_e N 34054130P W 910 feet more or :ess to a =o_n: on the west If,_ c_ said Section 21 ; -::hence S :`41 ' 4 C" K a_oncs a i: west line to the true =_r.t o_r' beginninc . _ SUB.7Z-'_'T TO: Easements, restrictions and reser- vations of record. . '";at tion of the E 1.12 KE 1 4 ' o_r Section 20 :ow-ns _p 21 North, Range 5 E_st, y;il:a:aette }:_r• tial:, which lies F i=..i:. a strip o_- 60 _60 fee= width, the boundaries of said strip lying 15 feet distant sou4:hwesterly f-nom and 45 feet distant northeasterly from, parallel with, and concentric with a line described as follows: Beginning at a point in the east line of said Section 20, said point being S. 1 1041 '40" W. a distance of 1305.23 feet from the northeast corner of said Section 20; . thence northwesterly along a curve to the left having a radius of 197.57 feet, a distance of 89 .24 feet (the long chord of which bears N. 641058110" W. a distance of 88 .48 feet) ; thence N. 77°54 ' 30" W. a distance of 350.22 feet; thence north- westerly along a curve to the right having a radius of 197. 57 feet a distance of •148 .27 feet (tae long chord of which bears N. 56024 ' 30" W. a distance of 144 . 62 feet) to a point in an existing county road, said point being S. 27°35'00' W. a distance cf 1256 .51 feet from the northeast corner of said Section 20 , contai^:n? 0. 78 of an ac=e, more or less. a:i.+ A portion of that pa=t of the Wl/2NW1/4 of Section 21, Township 23 North, Range 5 East, Willamette Meridian, King County, Washington, lying within the Bonneville Power Administration 0) , N=ple Valley Substation site, said portion Lrj o being particularly described as follows:. Becinn4 n; at a point in th:e ncrtheasteriv bo;:ndz:v_ lime of he Maple Va_l.ev Substation site, s_id Lei point being S. 1041- 140" W. a distance of 1265 .4 feet from the no:tawes: co=ne= of said Section 21; thence S. 34054 , 30" E. along said northeasterly line a distance of 977 . E feet; thence S . 420 05130" W. along the sot heasterly bounca_v line o` said site a distance of 30. 6 feet; thence N. 34°54 ' 30" W. , parallel with and 30 feet soL_h- wester?v, when measured at right angles , fro-- said rotasaid northeasterlyb ^�^. 1-ine of said sats s a distance of 894.6 fee:.; thence northwesterly alone a curve to the left having a radios of 162 .57 feet, a distanze of 43 . 4 feet (tae long c::ord of which brass N . 43°42 ' 20" W. a dista..'1ce t 4 n the west line o: said 07 43. 2 feet.) to a -mir Section 21; thence N. -1041140" E. along said west line a distance of 5 . 5 feet to the x-nt of beginning, cortaini-rigof an acre, more C1 That . That portion of the northeast 1/4 of Section 20, - Township 23 North, Range 5 East, W.M. , which lies within a strip of land 60 feet in width lying 30. 00 feet distance southwesterly and northeast- erly from, parallel with and. concentric with a line described as follows: Cormenc ng at a point in the east line of said Section 20, said point being South 1°41 "40" West, a distance of 1305.23 feet from the northeast corner of said Section 20, thence northwesterly along a curve to the le=t having a radius of N^ 197.57 feet a distance of' 89 .24 feet (the 'long . chola of w..ica bears North 64058 '10" West a distance of 88. 48 feet) ; thence North 77054130" West a distance o: 350.22 feet; thence northwest- LO along a curve to the right having a radius of 197 .57 feet a distance of .148.27 feet (the long chord of which bears North 56°24130" West a distance of 144 . 82 feet) to a point- in an existing county road, said point being South ' 27035100" West a distance ,c= 1256.51 feet from the northeast corner of said Section 20; thence North 55005130" East a distance of 15 . 00 feet to tae PCIh'T OF 2`32NNING of saidline; thence northwesterly around a curve to the left,. having a radius of 21-2 . 57 feet, containing •a central angle of 43° 00100" a distance of 159 . 53 feet, thence northwesterly, around a curve to the right, having a radius. of 130.15 feet, containing a central angle of 58°01130" an arc distance of 131. 81 feet; thence North .19053100" West a distance of 70 feet, more or les.s, . to a point on the southerly margin of the northerly 35 feet of the Puget Sound Power 6 Light trans- mission line and the terminus of said .centerline. SUBJECT TO: Easements, -restrictions and reserva- tions of record. ra EXHIBIT "C" CITY OF RENTON, WASHINGTON ORDINANCE NO. 3554 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING UNTO BELTERRA DEVELOPMENT CORPORATION, A CORPORATION, ITS SUCCESSORS AND ASSIGNS , THE RIGHT, PRIVILEGE, AUTHORITY AND FRANCHISE TO CONSTRUCT, MAINTAIN AND USE FOR INGRESS AND EGRESS AND OTHER STREET PURPOSES A STREET, THROUGH AND BELOW CERTAIN DESIGNATED ROADWAYS AND PUBLIC �. PROPERTIES OF THE CITY OF RENTON, STATE OF WASHINGTON. ll� BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE ti CQ CITY OF RENTON AS FOLLOWS : oD Section 1: There is hereby given and granted unto Cedar Ridge Associates , a Washington limited partnership , its successors and assigns for a period of 25 years from the taking effect of this Ordinance , the right, privilege, authority and franchise to construct , repair, maintain and alter a Street together with all appurtenances thereto, for street purposes - including but not limited to the right of ingress and egress to the Cedar Ridge Residential Park Plat as more particularly described on Exhibit A, which is made a part hereof and incorporated herein as fully set forth (hereinafter "Plat") , under, over , below and through certain public rights-of-way and other public lands within the City of Renton, all as more particularly described on the attached Exhibit "B" which is made a part hereof and incorporated herein as if fully set forth (hereinafter "Street") . -1- Section 2: This Franchise ison ranted upon p the express condition that it shall not be deemed or held to be an exclusive Franchise and shall not in any manner prevent the City of Renton from granting other or further franchises in, along, -over, through, under, below or across any of said rights-of-way, streets, avenues or all other public lands and properties of LO CDevery type and description; and such franchise shall in no way ri N prevent or prohibit the City of Renton from using any of said roads streets or other public Gid • p properties or affect its juris- diction over them or any part of them, with full power to make all necessary changes, relocations, repairs, maintenance, estab- lishment, improvement, dedication of same as they may deem fit, including the dedication, establishment, maintenance and improve- ment of all new rights-of-way and thoroughfares and other public properties of every type and description. • Section 3: Grantee shall construct and maintain the Street on the public property described in Exhibit B herein and construction shall be under the supervision of and upon the inspection of the City Public Works Director and Grantee shall construct the street substantially in accordance with the plans and specifications as set forth on Exhibit C which is attached hereto and incorporated herein by this reference which has been approved by the City Public Works Director and pursuant to the Final PUD Resolution No. 2406 on the property. -2- a Section 4: This Ordinance shall be void if Grantee shall not within thirty days of the adoption of this Ordinance file its written acceptance thereof with the Clerk of the City of Renton. All costs of publication for said Franchise shall be borne, in addition to all other fees, by Grantee. Section 5: The Grantee, its successors or assigns shall commence construction work under this Franchise within one A year from and after the date of passage thereof and all such work .*_0 t_0 shall be completed with the greatest amount of dispatch. If at QD the end of one year from and after the granting of this Franchise, the Grantee, its successors or assigns, shall not have constructed and have in operation upon rights-of-way the Street and appurtenances thereto, then in that event the rights hereby conferred upon the Grantee shall automatically cease and terminate. Section 6: Grantee shall maintain the Street in a good state of repair, as approved and accepted by the Public Works Director of the City of Renton,. whose approval shall not be unreasonably withheld. Section 7: Grantee, its successors and assigns, agrees and covenants to indemnify and hold harmless the City of Renton from and against any and all liability, loss, cost, damage, whether to person or property, or expense of any type or nature which may accrue to the City by reason of the construction, main- tenance, repair and alteration of the Street by Grantee, except for the negligence of the City; provided, however, that in case any suit or action is instituted against the City by reason of -3- � I any such damage or injury, the City shall cause written notice thereof to be given unto Grantee and Grantee thereupon shall have the duty to defend any such suit or action, without cost or expense to the City. Section 8: The Citv of Renton reserves unto itself the C> right and poxTer at all times to reasonably regulate in the public interest and for the public welfare the exercise of the franchise rights granted herein. Section 9 : Grantee shall have no recourse whatsoever against the City of Renton for any loss , cost, expense or damage arising out of any provision or requirement of this Franchise or the enforcement thereof. This Franchise does not relieve the Grantee of any requirement of any City Ordinance, rule or regu- lation or specification of the City, including. but not limited to any requirement relating to street work, street excavation per_: mits and fees therefor, or the use,. removal or relocation of property and streets except that the Grantee shall have the right to have access to the Plat through the Street and shall build the street pursuant to Section 3 . No privilege nor exemption is granted or conferred unto Grantee by this Franchise except those specifically prescribed herein, and any such privilege claimed under this Franchise by the Grantee in any street shall be sub- ordinate to an prior lawful occupancy of the street or an Y P P Y Y subsequent improvement or installation therein. -4- Section 10 : On or before the 1st day of January of each year during the term of this Franchise, Grantee shall pay unto the City, in consideration of the issuance of this Franchise, a sum of $10.00. Section 11 : Grantee shall cause to be filed a record . LO upon the property described in Exhibit A, covenants , conditions vand restrictions binding the Cedar Ridge Homeowners ' Association 4 to maintain the Street as provided in Section 6 and to indemnify the City pursuant to Section 7 . The Declarations and Covenants shall be substantially similar to the following: The Homeowners ' Association shall be responsible for all costs of all maintenance of the Street and shall maintain the Street in good state of repair for the term of this Franchise in compliance with all the City ordinances , rules and regulations . The Homeowners ' Association shall keep and protect and save the City of Renton its employees , from and against any liabilities, loss , cost , damage, whether person or property or expense of any type or nature which may accrue to the City by reason of construction, maintenance, repair or alteration of the Street by the Homeowners ' Association. Section 12 : The Franchise herein granted and created and the restrictions here imposed and the agreements herein contained shall run with the property described in Exhibit A and shall inure to the benefit of and be binding upon the parties -5- hereto and their respective successors , grantees and assigns and shall inure to the benefit of each owner hereinafter. Section 13: Upon application to the City ,Council of the City of Renton by Grantee, the Council may authorize Grantee Ato install and construct in City streets additional streets , as contemplated in Section 1 hereof, in a manner satisfactory to the lj City Council; such additional installations shall be subject to all of the terms and conditions of this Franchise and to any such additional conditions as may be prescribed by the City Council as to any such additions . PASSED BY THE CITY COUNCIL this 15th day of June, 1981. • Delores A. Mead, Cit C er APPROVED BY THE MAYOR this 15th day of June-, 1981. BarbaraY. Shinpoch, Mayor Approved as to form: awrence J. arren, ..City_:Attorney Date of Publication; June 19, 1981 ACCEPTED BY GRANTEE, CEDAR RIDGE ASSOCIATES , a Washington l.ipited f partnership , this /5 dt da,y of June, 1981, C1 to ® its rt c V X f a i s - ' EXHIBIT "C" � t i rit !� it � �• �N t In �/r}its• � E ~��� � -� 4►' 1 t p as oo`a' .e R I F. T i p !/� N.rn m r 'Aj I Vf D;c�i 0y{ i p �,z Z m r . N.0 ,3� n / ;mi�:r t Sim I r�; •o J�, ju so m r 0 O n u 010 , ' A. :a... Ar